- January 20 2025
- BM
YC-backed Waza launches Lync, an alternative to Mercury for African startups after $8m raise
Waza, a YCombinator-backed B2B payments company, has launched Lync, a banking product designed to help businesses manage multi-currency accounts and make international payments. This move comes after Mercury, a San Francisco-based fintech, restricted accounts for startups in 13 African countries in July 2024 following internal compliance changes. The shift has sparked demand for alternatives, and Waza is positioning itself as a key player in this market alongside other companies like Raenest, Leatherback, and Vesti. Lync enables businesses to receive money and make payments in over 100 countries, supporting multiple currencies, including USD, EUR, GBP, NGN, and stablecoins. Unlike competitors that rely on wallet-based systems (where transactions are processed under the company’s name rather than the customer’s), Lync offers full banking access. This makes it easier for businesses to reconcile payments, as funds are processed under their accounts. Waza co-founder and CEO Maxwell Obi, highlighted that Lync’s comprehensive banking capabilities—such as ACH, Fedwire, SWIFT, and local payment rails like the UK’s Faster Payments—allow companies with global operations to handle payments and foreign exchange liquidity from a single platform. Additionally, the company plans to offer trade financing services within the app, including pre-shipment financing and invoice financing, which are essential for businesses engaged in international trade. Lync is Waza’s second product after and comes on the back of Waza’s $8 million raise in 2024, funding it says will support market expansion and new product development. One of Lync’s major selling points is its affordable transaction fees. According to Obi, Waza’s years of experience in the fintech space have allowed the company to secure competitive FX rates for its customers. Unlike many competitors, Waza has more control over its payment infrastructure, allowing it to offer lower transaction costs and faster settlement speeds. Our value proposition has always been about affordability and the speed of settlement, Obi said in a recent interview with TechCrunch. He added, “By maintaining more control over our infrastructure, we can provide cheaper and faster solutions than the competition.” The new web app allows businesses to make payments in over 100 countries with multi-currency accounts in dollars, euros, Pounds, Naira, and stablecoins. Obi claims the accounts offer full banking features, including ACH, Fedwire, SWIFT, and local rails like the UK’s Faster Payments, enabling companies with global operations to manage payments and FX liquidity from a single platform. The startup will also offer trade financing services on the Lync app, like pre-shipment and invoice financing.
Read More
- January 20 2025
- BM
TechCabal Daily – CMC Motors steers out of East Africa
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Welcome back from the weekend; here’s some global news for you., TikTok is back online in the US after a whirlwind weekend during which the app went dark following a federal ban. Hours after the shutdown, President-elect Donald Trump—set to be inaugurated later today—announced plans for an executive order delaying the ban to give TikTok’s parent company, ByteDance, more time to find an approved buyer. By Sunday afternoon, the platform restored service, thanking users and Trump for their support. In Africa, some countries have been debating measures to regulate TikTok. Kenya, for example, recently opted to require social media companies to establish physical offices rather than imposing a partial ban. This reflects a growing demand for greater accountability from global tech platforms. A US ban, however, could shift this dynamic. Kenya’s push for local offices may gain urgency, with a potential ban emerging as a powerful enforcement tool if platforms like TikTok fail to comply. As concerns about misinformation, data privacy, and content regulation grow, the US decision could set a precedent for how nations handle global tech giants. Nigeria joins BRICS as a partner country CMC Motors shuts down operations in East Africa What’s behind Egypt’s inflation slowdown? World Wide Web 3 Events Economy Nigeria joins BRICS as a partner country Image Source: Netflix Nigeria is joining a different league. Last week, the country was admitted as a “partner country” of the BRICS bloc of developing economies. Established in 2009, BRICS—an acronym for Brazil, Russia, India, China, and South Africa—aims to serve as a counterbalance to the Group of Seven (G7) leading industrialised nations, which include the United States, Canada, United Kingdom, France, Germany, Italy, and Japan. While Nigeria’s “partner country” status doesn’t equate to full membership, it opens up avenues for deeper economic cooperation, increased trade opportunities, and access to BRICS-backed initiatives like the New Development Bank, a lending institution modelled after the World Bank, which has approved nearly $33 billion in loans since its inception in 2015. It also reinforces the bloc’s aim to include voices from the Global South in shaping a multipolar world order. Nigeria’s admission as a partner country in BRICS comes at a pivotal moment as the bloc seeks to expand its influence by including major fossil-fuel-producing nations. This move aligns with BRICS’ broader strategy to challenge the dollar’s dominance in global oil and gas trading by promoting the use of alternative currencies. Nigeria’s inclusion in the bloc may enable the West African country to tap into BRICS’ financial resources, including the $100 billion liquidity facility established in 2016 to support member nations during economic distress. With China as Nigeria’s largest creditor, holding $4.34 billion of Nigeria’s external debt as of 2023, this new partnership with BRICS could also provide alternative funding options for Nigeria. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Companies CMC Motors shuts down operations in East Africa Image source: CMC CMC Motors Group, one of East Africa’s top vehicle distributors for over 60 years, is closing its doors in Kenya, Uganda, and Tanzania. The company announced its shutdown on January 17 citing mounting operational costs, currency depreciation, and the loss of critical vehicle franchises as factors. CMC entered East Africa—starting with Kenya—in 1948, and went public in 1956, showing a strong market reception. It followed that by expanding into Uganda in 1960 and Tanzania later in 2007. The mobility company built a reputation by distributing global automotive giants like Ford, Volkswagen, Jaguar, and Land Rover, becoming a household name in East Africa. For years, it was the go-to provider of reliable vehicles and equipment across the region. But over the past decade, the company faced growing challenges. In 2014, Dubai-based Al-Futtaim Group acquired CMC in an $86 million deal, delisting it from the Nairobi Securities Exchange (NSE). Despite restructuring attempts, the company could not escape setbacks, notably the loss of car franchises. The most notable blow came in 2023, when CMC lost the Ford dealership to competitor Salvador Caetano, following the earlier exit of Jaguar, Land Rover, and Volkswagen. Shortly after, it laid off 169 employees to reduce overhead costs. The layoffs didn’t slow down the company’s problems as vehicle import costs also soared and the regional economy slowed further crippling CMC’s numbers. The company’s shutdown will result in at least 200 job losses across East Africa. After Mobius Motors, CMC becomes the second recognisable mobility brand to exit East Africa in the last six months. While Mobius remains in talks for an acquisition, the future for CMC looks set—down and out. Economy What’s behind Egypt’s inflation slowdown? The Central Bank Of Egypt Egypt’s headline inflation eased to 24.1% in December 2024, down from 25.5% in November, marking its lowest level since December 2022. This slowdown was driven largely by a sharp drop in food inflation, particularly for fresh vegetables, while core inflation (excluding food and energy) also edged down to 23.2% from 23.7%. December marked the third consecutive month of declining inflation, signalling some improvement. However, costs for services like rent, internet, and dining continued to rise. Despite inflation remaining well above target, the Central Bank of Egypt maintained interest rates during its December 26 meeting, extending a pause that began in March 2022 after cumulative hikes of 1,900 basis points. Egypt’s economy is in a tough spot. The rates have not been this high since 2017 when it experienced an economic slowdown. Non-food sectors and commodities like fuel are still driving price increases, putting pressure on Egypt’s economy. Without seasonal declines in food prices, headline inflation would likely have stayed higher, as food remains a major contributor to overall inflation. While the temporary relief from lower food prices offers some respite, challenges in housing and services could reignite inflationary pressures. The
Read More
- January 17 2025
- BM
TechCabal Daily – The long road to Nigeria’s fiber optic dream
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF It’s about that time when we ask you to go to the bottom of the newsletter and tell us how we’ve done with TC Daily this week. If you loved the editions, let us know by clicking “Loved It!” and if you think there’s something we can do better, let us know! Kenya wants social media platforms to have boots on the ground Who pays the price in the bank vs telco USSD face-off? World Bank pledges $500 million to Nigeria’s 90,000km fibre project Funding tracker World Wide Web 3 Events Regulation Kenya wants social media platforms to have boots on the ground Kenyan president HE William Ruto The hashtag #RejectFinanceBill2024 amassed over 6 million tweets during Kenya’s protests against the proposed finance bill in 2024. The bill, which sought to increase taxes across the board, sparked widespread public outrage. Kenyans relied heavily on social media to mobilize against the bill, sharing videos, photos, memes, and live streams, while also disseminating lawmakers’ and IMF officials’ contact details. This pressure, combined with mass protests across cities and towns, ultimately led to the bill being scrapped. In the wake of these events, the Kenyan government is pushing for tighter regulation of social media platforms, including a requirement for them to establish local offices. Officials argue that having a local presence would allow for better oversight, improve collaboration in tackling issues like cyberbullying, hate speech, and incitement to violence, and ensure platforms comply with tax and labour regulations. Proponents also highlight that such measures are increasingly standard in many countries, where local offices facilitate quicker responses to legal requests and help platforms tailor content moderation policies to local contexts. However, critics fear the move could give the government with greater control over social media, enabling censorship and stifling dissent. The precedent set by Nigeria offers a cautionary tale. In 2021, the Nigerian government blocked Twitter after it deleted a tweet by President Muhammadu Buhari for violating its policies. Twitter had become a key platform for political organising, especially during the #EndSARS protests. The ban was only lifted in 2022 after Twitter agreed to several conditions, including opening a local office, registering as a broadcaster, and adhering to national security guidelines. Many viewed these requirements as attempts to limit the platform’s role in facilitating political activism. Kenya now faces a similar balancing act: while addressing legitimate concerns around online harm and compliance, the government must also ensure its actions do not inadvertently suppress free expression or political dissent. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Banking Who pays the price in the bank vs telco USSD face-off? Image source: Faith Omoniyi/ TechCabal The Nigerian Communications Commission (NCC), the country’s communications regulator, has given telecom companies the go-ahead to cut off USSD services for nine banks over unpaid debts by January 27, 2025. The commercial banks are Fidelity Bank, First City Monument Bank, Jaiz Bank, Polaris Bank, Sterling Bank, United Bank for Africa, Unity Bank, Wema Bank, and Zenith Bank. Since 2019, banks have accumulated debts owed to telcos for USSD services. In November 2024, this amount reached ₦250 billion ($160 billion). Multiple lobbying by telcos has forced the NCC and other regulators to investigate the matter. With joint efforts with the Central Bank of Nigeria (CBN), the NCC has tried to rein in banks. In September 2024, it instructed banks to pay off their debts, but some refused to comply. As a result, the NCC and CBN issued a joint circular on December 20, 2024, stating that banks that refused to settle their debts by January 27, 2025, would be locked out of the USSD service, possibly shutting off millions of Nigerian retail banking customers—who use USSD for everyday banking—from critical mobile banking services. USSD is especially important for older Nigerians and people in rural areas who rely on basic phones without internet access. If banks end up clearing their debt to telcos, the NCC plans to transition to using an end-user billing process where customers pay telcos directly for USSD services, bypassing banks—which seem to want no part of it—in the future. While this will curb any debt issue, it raises questions about how this process will work and how much financial information, if any, will be shared with telcos. Internet World Bank pledges $500 million to Nigeria’s 90,000km fibre project Minister of Communications, Technology, and Innovation Bosun Tijani The World Bank has pledged $500 million to Nigeria’s ambitious 90,000km fibre optic project by Q3 2025. This contribution, while significant, covers only part of the $3.2 billion required for the project. On Tuesday, the US signed a $2 million grant. At the same time, a coalition of development finance institutions (DFIs), including the Islamic Development Bank and the African Development Bank, have also expressed financial commitment. Since taking office, Minister of Communications, Technology, and Innovation Bosun Tijani has prioritised building a national fibre backbone to extend high-speed internet access, particularly to underserved rural areas. Expanding the network to 125,000km would address longstanding infrastructure gaps and improve digital connectivity across the country. The ministry has continued attracting financial backers, showing growing confidence in the ambitious fibre project. However, these pledges remain theoretical. Without solid proof-of-work, it could stall momentum. Another key area Minister Tijani still has to address is the fragmented state policies around the implementation of the backbone project, as well as the alignment of telcos, government, and other parties involved. The funding commitments are a progressive sign, but whether Nigeria and Minster Tijani can reach their goals will depend on resolving these micro issues. Given the funding momentum, it is hard to bet against the success of the project—but not necessarily on the time it would take for Nigeria to achieve this. Initially a two-year project, it
Read More- January 16 2025
- BM
Breaking: Kenya wants social media companies to set up physical offices
Kenya will now require social media companies to set up physical offices in the country, the Ministry of Interior and National Administration said on Thursday after a meeting with stakeholders in the telecommunication and social media sectors. This move suggests tighter social media regulation in the East African country. “(We) arrived at a consensus on the need to curb misuse of technology and social media, including harassment, hate speech and incitement to violence, including enhancing physical presence of key operators,” the ministry said in a statement. The call to regulate social media comes six months after young people in Kenyan led widespread protests against President William Ruto’s administration over the now-withdrawn 2024 Finance Bill which introduced new taxes on essential commodities such as edible oil and sanitary pads. Social media platforms like TikTok and X played a crucial role in amplifying the protests, allowing Kenyans to livestream demonstrations to a wider audience beyond the physical locations. The hashtag #RejectTheFinanceBill2024, gained traction on X, with over 4 million impressions in the first few days of the protests. Tens of Kenyans lost their lives during the demonstrations, believed to be the longest-running protest in the country’s history. While subsequent protests were less intense than those in July 2024, Kenyans have turned to social media platforms, particularly X, to voice their frustrations with the government over cost of living and economic hardship. Some citizens used AI tools to create provocative images, some of which politicians called offensive. One of the most controversial trends featured images of Ruto depicted in a coffin. During Thursday’s meeting, Principal Secretary for Internal Security Raymond Omollo addressed concerns over social media misuse. Despite being one of the few African countries where citizens widely use social media without restrictions, over 80 abductions have allegedly targeted online government critics since June 2024.
Read More- January 16 2025
- BM
Emerging trends and future outlook for cross-border payments in Africa
This article was contributed by Dickson Nsofor, CEO Kora, and Solomon Amadi, SVP of Payments at Moniepoint as part of the Emerging Trends in Cross-Border Payments: A Growth Guide for Stakeholders report authored by Aroghene Ndulu and Paschal Okeke. The “Japa” trend is one of the significant drivers of cross-border payments at the moment. With more people moving abroad, especially to the Western world, there’s a growing need to send and receive money back home. Another key trend shaping the cross border payments ecosystem in Africa is the rise of mobile money platforms like M-Pesa and Momo, which are helping unbanked populations send and receive payments across borders. Nigeria’s economy is also pushing businesses to look beyond local markets. FX gains are becoming more appealing, and earning in stronger currencies is now a priority. Exporters, for example, ship goods to other African countries and beyond, while importers bring in funds. This has increased the demand for cross-border payment systems that handle these transactions. For businesses, operating across borders isn’t just about trade; it’s a way to grow. Expanding internationally gives them access to new customers and more revenue opportunities. Fintech companies are stepping up with APl-driven platforms that provide cheaper and more efficient payment solutions, disrupting the traditional banking model. And let’s face it, a business that can succeed in multiple markets is far more attractive to investors. How is blockchain impacting cross-border payment solutions on the continent? Blockchain technology is still in its early stages regarding cross-border payments in Nigeria and much of Africa. A few local companies, like Zone, are experimenting with blockchain to facilitate transactions, but the overall impact on cross-border payments is minimal. The reasons are clear: adoption and penetration are low due to regulatory uncertainties, negative perceptions, and a lack of widespread advocacy for blockchain-driven solutions. Blockchain is making cross-border payments in Africa faster, cheaper, and more secure. In the past, payments had to go through multiple banks and intermediaries, which caused delays and extra fees. But with blockchain, transactions happen directly between two parties in real-time, eliminating the need for these intermediaries. This is a big deal for African businesses and individuals who rely on fast and affordable payments. Plus, blockchain keeps every transaction on a secure, tamper-proof ledger, which makes fraud much harder. Over time, blockchain will help African countries rely less on foreign currencies and make it easier to trade using local currencies. The role of mobile money Mobile money has transformed access to financial services for people without traditional banking, allowing them to send and receive money directly through their phones. This has brought millions into the financial system. However, its impact varies across countries due to differing regulations. For example, in Kenya, M-PESA allows telcos to store customer funds, which makes them integral to the financial ecosystem. But this comes with risks; if a platform like Safaricom’s M-PESA were to face disruptions, it could cripple Kenya’s economy. On the other hand, Nigeria has taken a more cautious approach, with regulations that prevent telcos from storing funds. This helps avoid over-dependence on any single platform and safeguards competition from fintechs. Intra-African payments are another area where mobile money plays an important role. It can facilitate cross-border transfers, but issues like transaction limits, payment tracking, and data privacy must be regulated first. Telcos collect extensive user data, which could create an unfair advantage if left unchecked. Ultimately, mobile money simplifies transactions and ensures people can send and receive money effortlessly. While it’s unlikely to dominate Nigeria’s financial system the way M-PESA does in Kenya, it will remain a vital transaction option. For customers, the priority is convenience, whether through telcos, banks, or fintech. The goal is to make payments faster, safer, and more accessible. AfCFTA and cross-border payments African cross-border payments will change significantly under the African Continental Free Trade Area (AfCFTA). The agreement opens the door to a more extensive customer base and growth opportunities for businesses already in the payments space. It also encourages the use of local African currencies, which could reduce Africa’s heavy reliance on international currencies like the US dollar. However, If we can develop systems to exchange African currencies directly, without the restrictions many African countries currently face, we could see significant innovations in how payments are made across Africa. This shift could also help stabilise and increase the value of local currencies by creating more demand for them in regional trade. The ultimate goal is to make cross-border payments more manageable and reduce dependency on foreign currencies, which can weigh down trade due to currency conversion costs and rate fluctuations. If it works as intended, AfCFTA will simplify trade and boost intra-African commerce and innovation in the payments ecosystem. Future innovations Al will play a huge role in shaping the future of payments in Africa. With advanced fraud detection and smarter risk management systems, transactions are likely to become faster and more secure. Digital currencies, including cryptocurrencies and central bank digital currencies (CBDCs), also have the potential to reduce transaction costs and speed up cross-border payments by cutting out the need for foreign exchange. Contactless payments will transform how people pay in Africa in the next few years. Imagine being able to use your Nigerian card in Morocco without any hassle. That’s the kind of simplicity we need. The rise of virtual cards will help push this forward. They’re cheaper to get, you don’t have to worry about losing them, and they’ll make payments faster and more secure. Pair that with contactless technology, making it much easier for people to pay without thinking twice. You can download the full report here. _________ Dickson Nsofor is the founder and CEO of Kora, a pan-African payment infrastructure company established in 2017. He has over a decade of experience in Internet and mobile technology companies, where he honed his skills in IT, business analysis, and project management. He has contributed to organisations such as the United Nations and Humaniq, focusing on improving processes and implementing innovative solutions
Read More- January 16 2025
- BM
TechCabal Daily – The future of Kenyan banking….is expensive
In today’s edition: A new payment system could cost Kenya up to $200 million || NBS returns, bringing new inflation metrics and a complex outlook || Geely, Auto Mobility target 30,000 car sales in 2025
Read More- January 15 2025
- BM
Safaricom, Kenyan banks claim Central Bank’s new payment system could cost $200m
Safaricom and Kenyan commercial banks claim the Central Bank’s (CBK) plan to build a fast payment system (FPS) could cost at least $200 million (KES25.9 billion) and take up to four years to complete. The FPS aims to enhance interoperability across the payments landscape and reduce transaction costs, but Safaricom and the Kenyan Bankers Association (KBA) argue that it could duplicate existing infrastructure and lead to inefficiencies that could slow innovation in Kenya’s financial sector. In their joint report, Safaricom and the Kenya Bankers Association (KBA) recommended that the CBK should instead enhance existing payment systems such as Pesalink—already used for peer-to-peer payments between banks—rather than creating a costly new system from scratch. While acknowledging the potential benefits of FPS, both organisations question the $200 million price tag and lengthy timeline. A key concern raised by KBA and Safaricom is the Special Purpose Vehicle (SPV) proposed to manage and operate the FPS. The SPV would be owned by the CBK (60%), Safaricom (20%), and commercial banks (20%). It would require legislative amendments, including amendments to the Central Bank of Kenya Act, the National Payment Systems Act, the National Payment Systems Regulations of 2014, the e-money Regulations of 2013 and an initial investment of $30 million. The proposed SPV structure would make the FPS a state-owned enterprise under the CBK’s majority control. According to the report, this could introduce bureaucratic delays, slowing innovation. “The creation of an SPV may mean that streamlining regulations that would deliver immediate benefits within the current payment landscape may be delayed until the SPV and FPS are operationalised,” the proposal said. While the CBK has not disclosed whether it will pursue the SPV model or upgrade existing infrastructure like Pesalink or M-Pesa, Safaricom and the KBA suggest enhancing existing infrastructure is a cheaper, timely option. The CBK did not respond to multiple requests for comments. Not suitable for mobile money market Another significant concern is the mobile market in Kenya, one of the most advanced in the world. Platforms like M-Pesa and Airtel Money dominate the landscape, reporting billions of dollars in transaction value annually. According to Safaricom and the KBA, the proposed FPS model may not be suited to a mobile money-oriented market. “It is a high-risk approach as it is an unproven model in a market where payments are predominantly digital and mobile-based. Most FPS implementations from other markets started when cash and/or card payments were dominant,” said the Safaricom and KBA report. While the report does not address the views of other payment service providers (PSPs), Safaricom and KBA advocated upgrading existing payment systems, a model adopted by Zimbabwe. This would mean designating an existing system, such as M-Pesa or Pesalink, as the primary operator of the FPS. Instead of creating a new system, Safaricom and KBA propose broadening the ownership of the existing system to include CBK and other payment service providers, SACCOs, micro-finance banks, and other players who may wish to take a direct stake. Whatever the route CBK takes, payment experts believe that the FPS will lower transaction costs and ease funds transfer across different platforms. “It will create opportunities for smaller players but could also raise entry barriers for them. It will drive innovation in Kenya’s payments industry, with both small and large service providers pushed to offer better solutions,” said Alfred Ongere, former Payless Africa chief technology officer. The existing payment infrastructure is fragmented, with mobile money platforms operating in silos from other financial institutions. Banks, Saving and Credit Cooperative Organisations (SACCOs) and other payment providers need separate agreements to plug into mobile platforms like M-Pesa and Airtel Money. At the moment, Pesalink only caters to banks, locking out other financial institutions. The CBK is expected to issue further guidelines in the coming months. However, the debate over an optimal payment system highlights the delicate balance to maintain Kenya’s progress in mobile and digital payments. .
Read More- January 15 2025
- BM
Nigeria’s headline inflation quickens to 34.80% in December 2024, puts rate hike in focus
Nigeria’s headline inflation quickened in December 2024 to 34.80% due to increased food prices and heightened consumer spending during the holidays, according to data from the National Bureau of Statistics (NBS). The latest figures, up from 34.60% reported in November, puts another interest rate hike in focus at the next Monetary Policy Committee meeting in February. Food and transport costs were the major drivers of December 2024 inflation. Food inflation eased to 39.84% up from 39.93% recorded in November 2024. “The outlook for inflation in 2025 is tricky considering the rebasing of the inflation basket,” said Samuel Onyekanmi, an analyst at Norrenberger. Oyekanmi expects that inflation will begin moderating by the second half of the year and will slow to the region of 25% to 27% by year-end. The statistics agency rebased its calculation of the consumer price index (CPI) and gross domestic product (GDP). The NBS calculates inflation using a CPI basket that measures the average change in price of goods and services consumed by people daily. The NBS, which previously tracked 740 of those goods and services, increased the CPI basket to cover 960 items. The addition of the new items was to reflect the current consumption patterns, Ayo Andrew Anthony, Head of Price Statistics at the NBS, said Thursday at a sensitisation workshop. New inflation figures based on the new price index will be released at the end of January 2025. “The recent GDP rebasing and CPI reweighting are significant steps forward in capturing the true breadth of economic activity. These adjustments should enhance data accuracy and support more effective planning,” said Olajide Oyadeyi, an economist at Econoday Inc.
Read More- January 15 2025
- BM
Purple Elephant Ventures raises $4.5 million seed round to scale portfolio startups
Purple Elephant Ventures (PEV), which styles itself as the “world’s first tourism-focused venture studio,” has raised $4.5 million in seed funding. The Nairobi-based venture studio will use the funding to scale its portfolio of startups and launch new ventures focused on addressing the most pressing challenges in Africa’s tourism industry. The round saw participation from investors including Clear Creek Investment B.V, Klister Corp., Fede Pirzo-Biroli (founder of Playfair Capital), Anthony Rock, and Ian McCaig (former CEO of Lastminute.com). PEV is part of a growing list of venture studios offering seed capital, strategic guidance, and mentorship to help startups scale across Africa. Others include Fast Forward Venture Studio, Grone Studios, Ceed Cap, and First Founders. Launched in 2020, PEV helps founders craft hospitality Software as a Service (SaaS) solutions, sustainable procurement for tourism, and energy-efficient solutions for hospitality. The venture studio has launched five startups: Nomad Africa, a travel discovery platform and Kenya’s leading travel publisher and local agency; Kijani Supplies, a procurement tech company specializing in eco-friendly supplies for the hospitality industry; Zafari, a booking platform for African hospitality, streamlining operations for tourism operators; PowerTrip, a cleantech company delivering energy-efficient appliances to hospitality businesses; JOIN Africa, a startup that supports safari guides, created in partnership with Paul English, co-founder of Kayak. “This funding is a testament to the untapped potential in African tourism innovation,” said Ben Peterson, PEV co-founder and CEO. “With this support, we’re poised to revolutionise the industry through groundbreaking travel technology in Africa, fostering economic growth while preserving the continent’s incredible natural and cultural heritage. The future of sustainable tourism in Africa has never been brighter.”
Read More
- January 15 2025
- BM
TechCabal Daily – Show me the naira
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning To help you crush your 2025 learning goals, we’ve curated a list of must-hear tech and business podcasts in Africa. These shows deliver insightful conversations, trend analysis, and entrepreneurial wisdom—from innovative breakthroughs to practical tips for navigating the African market. The Open Africa Podcast, for example, dives into startup stories and fintech solutions while Africa Business Stories spotlights inspiring women like Bunmi Olunloyo, who empowers women through dance. Discover more in our Top 10 list. AWS launches naira payments Sterling Bank staff unhappy with 7% salary increase Nigeria to expand its fibre optic network with $2 million US grant OpenAI welcomes Adebayo Ogunlesi to its Board World Wide Web 3 Events Cloud Computing AWS now accepts naira payments GIF Source: The Nollywood Star Around this time last year, Africa’s tech ecosystem erupted in a conversation on how much tech startups spend on cloud computing. One Nigerian HR-tech startup told TechCabal that they pay up to $80,000 monthly in cloud costs—pocket-clenching costs that now make accelerators and VC firmsallocate cloud credit to new and emerging startups. Google, for instance, gives startups up to $200,000 in Google Cloud credits to startups through its Black Founders Fund, while accelerators like Techstars and Y Combinator give their portfolio companies cloud credits. For startups operating in countries like Nigeria where currency devaluation has doubled cloud costs—as cloud providers like AWS, Microsoft Azure, and Google Cloud price their offerings in dollars—these costs can be a headache. A $1,000 cloud service that would have cost ₦458,000 in early 2023 now costs ₦1.52 million, a 107% increase! As the effects of the naira valuation persisted, local cloud companies—like Okra, Nobus MainOne Cloud, Web4Africa, and Layer3—began positioning themselves as alternatives with one major selling point: allowing customers to pay in local currency. This narrative was an instant hit for startups as they were keen on reducing costs. However, global cloud players are catching on. Yesterday, AWS announced that it will now accept naira payments. In addition to the naira, AWS announced that it will be accepting payments in 7 other other local currencies. AWS’s move to offer naira pricing means that local cloud providers must up their game by providing a unique value proposition. While local cloud providers have built a competitive edge around naira pricing, AWS’s offer of local payment options diminishes that edge. Startups may now find it harder to justify switching to local providers solely because of pricing reasons, forcing local players to innovate or compete on other value propositions. By paying in naira on AWS, startups can better manage their cash flow without worrying about sudden spikes in cloud costs due to dollar fluctuations. AWS’s move to offer naira pricing may also inspire Google Cloud and Microsoft Azure to offer similar pricing in Nigeria. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Banking Sterling Bank staff unhappy with 7% salary increase Image Source: ApataTV What excites bank employees more than a raise? A bigger raise. Bankers often joke that their expenses are the only things that inflate faster than their egos—while their salaries stubbornly refuse to keep pace. The latter part of this joke rings true for employees of a Nigerian commercial bank. Months after it introduced a cost-of-living adjustment (COLA) stipend, Sterling Bank, a tier-2 Nigerian commercial bank, raised salaries by 7%. The salary adjustment, first disclosed to employees in an internal memo in early January 2025, is meant to help employees offset the rising cost of living and quickening inflation. But employees want more. Late last year, Nigerian commercial banks raised salaries in response to economic pressures on consumer spending. GTBank, one of Nigeria’s biggest banks, for example, raised salaries by 40%. Union Bank, another tier-2 bank, followed suit with a similar 40% raise. While reviewing compensation is necessary to help employees cope with the economy, it also helps these banks retain talent in an industry where competitors don’t shy away from poaching. Sterling’s salary increase, however, is less than sterling to employees who expected a 20-30% increase, similar to competitor banks. Executive trainees (ETs), previously earning ₦327,000 ($211) monthly, will now take home ₦351,000 ($226). Senior executives (junior roles above ETs) on a ₦500,000 ($322) salary will see their pay rise to ₦527,000 ($340). The salary raise will impact the bank’s bottom line. Banks are known for their cost-efficiency, especially when it comes to employee compensation. Sterling Bank spent ₦22.6 billion ($14.6 million) on personnel expenses as of September 2024, accounting for 21.67% of its total expenses, which stood at ₦104.3 billion ($67.2 million). Some back-of-the-napkin math based on a 7% increase means the bank’s wage bill would be around ₦24.22 billion ($16.2 million). Telecoms Nigeria to expand its fibre optic network with $2 million US grant L-R: Nigerian Minister of Communications, Innovation, and Digital Economy Bosun Tijani with US Deputy Secretary Kurt Campbell. Image Source: Kurt Campbell (X) Nigeria is set to expand its digital infrastructure courtesy of a $2 million grant from the US Trade and Development Agency (USTDA). This funding will expand the country’s fibre optic network by 90,000 kilometres, a move in line with Nigeria’s National Broadband Plan for 2020–2025. Expanding the fibre optic network will provide better internet access to rural areas, help reduce the gap in digital access, and create more jobs. Nigeria’s current internet penetration rate, according to various reports, sits between 40–45%. This is much lower than other countries like Egypt (72%) and South Africa (74%) which have better internet coverage and thriving ecosystems. Sectors like fintech, ride-hailing, and e-commerce in Nigeria rely heavily on the internet. The more people have access to better internet, the greater the reach startups will have. As these startups grow, ecosystems expand. Talents have also been held back by slow internet. Many skilled workers
Read More