- May 5 2023
Hackers have their eyes set on exploiting vulnerabilities in SA government services
According to research by global cybersecurity firm Trellix, hackers are shifting their attention from the private sector and setting their sights on exploiting vulnerabilities on the South African government’s systems. In their intelligence briefing on the state of cybersecurity in South Africa, Trellix states that the global threat actors exploit covert infiltration, user-carried USB devices and vulnerabilities in intermediary financial systems, in order to breach security. Data from the briefing shows that government systems attract more than a third of all online attacks, with the education sector a distant second. Financial services, utilities, wholesale, media, consumer products, and the general services sector all come after. “What we do know is that although it may be growing at a very slow pace, the South African economy is quickly adopting more advanced technology across commerce, service delivery and communication. This transition leaves gaps of exposure for various groups to test weaknesses left open, as old systems make way for more modern ones,” said Carlo Bolzonello, country manager for Trellix South Africa. According to Mordor Intelligence, the South Africa cybersecurity market is expected to grow at a cumulative annual growth rate (CAGR) of 11.01% over the forecast period (2022-2027). The robust digitalisation in verticals like banking and financial services, government sector, and oil and gas industries has consequently triggered the risk of cyber-attacks. As a result of these risks, the adoption of various cybersecurity services that are needed to safeguard smart grid devices, digitalised businesses, and IoT-based smart cities are on an upward trajectory in the country.
Read More- May 5 2023
The Economist’s The World Ahead 2023 unveiled with an eye on West Africa
On April 27th, The Economist unveiled its annual publication, The World Ahead 2023, at the Ecobank Pan African Centre (EPAC) in Lagos, Nigeria. The publication is now distributed in 90 countries and translated into 20 languages. This year’s edition is unique as it includes a section on West Africa, with Ghana and Nigeria receiving coverage. The event was attended by industry leaders and representatives, including the Deputy Governor, Dr. Kadri Obafemi Hamzat, who stood in for the Lagos State Governor. The Economist’s deputy editor, Tom Standage, attended the event virtually. Speaking about what the year holds for the continent, he said that although 2022 was a challenging year for the continent, 2023 could present opportunities. He also noted that Rwanda, Ivory Coast, and Senegal are among the fastest-growing economies. He added that many European countries may turn to Africa as an alternative to Russian oil and gas suppliers, given the Russia-Ukraine war and the fact that the continent holds 13% of oil and gas. The publication aims to highlight both the potential and areas for improvement in Africa. Tayo Oviosu, founder of fintech startup Paga said in the publication that he believes there is significant untapped potential for mobile-based fintech services to create jobs, enhance financial inclusion, and boost economic growth in Africa. Echoing Oviosu’s thoughts, Standage noted that existing fintech firms have established payment networks, digital wallets, and money transfer systems, providing a foundation for new offerings such as lending, insurance, and small business services. Giving the Governor’s address, Dr. Hamzat stated that one could not overemphasise the importance of The Economist’s publication. He humorously recalled purchasing a lot during his postgraduate studies abroad and acknowledged its insightful analysis of events. “This publication attempts to address through its insightful analysis of events mainly to allow us to navigate these murky waters, and turn challenges into opportunities,” he said. He noted that the publication can assist policymakers and business owners in developing more practical plans and strategies in 2023 and beyond. During a panel discussion, Deepankar Rustagi, CEO of Omnibiz; Peter Anagbe – Head of Alternative fuel Projects at Dangote; George Thorpe, managing director of Magprotein Limited; and Edward Nana Yaw Koranteng, CEO of Minerals Income Investment Fund (MIIF) Ghana, explored ways to utilize sustainable development communities and trade to unlock growth potential in Nigeria and the wider region. The event concluded with a speech from Oyin Damola Lami Adeyemi, Executive Chairman of Still Earth Holdings, a gold sponsor of the event. She highlighted Still Earth’s work in the oil and gas industry, funding entrepreneurs, and contributing to education and community development, including supporting foundations for cultural exchange and creative research. Other sponsors of the event by The Economist included Dangote, Omnibiz, Ghana’s Minerals Income Investment Fund, Ecobank, MTN, LG, Sky Sat, TechCabal, and more. The Economist has made the publication, The World Ahead, available for download here.
Read More- May 5 2023
Access Bank gets greenlight to acquire majority stake in Finibanco Angola
Access Bank has announced that it has received regulatory approval from the Central Bank of Angola to proceed with the purchase of a majority stake in Finibanco Angola. Access had already received approval from the Central Bank of Nigeria to move ahead with the acquisition and will now wait for greenlight on the transaction from Angolan authorities, which it expects to get in the “coming days.” Additionally, Access also signed agreements with minority shareholders in Finibanco Angola to buy their stake after which the bank intends to hold an 80% stake in the business. “We are pleased to be well-positioned to join the select league of banks providing high-value financial services to high-growth businesses and the rising consumer sector in Angola. The bank brings a lot of value-add and expertise that will act a [sic] catalyst to foster greater innovation and promote the deepening of the financial sector in Angola, while complementing our strategic growth objectives in the broader SADC region,” said Herbert Wigwe, group CEO of Access Holdings. In 2021, Access Bank also acquired a majority stake in BancABC of Botswana, offsetting the most active day in the history of the country’s bourse, the Botswana Stock Exchange. Access Bank’s entry into the Angolan banking market could be well timed as, according to statistics, net profits of the country’s banking sector increased by 295% in 2021 to 592.402 billion kwanzas (€1.3 billion).
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- May 5 2023
TechCabal Daily – Fingo’s fintech fix
Lire en français Read this email in French. 5 MAY, 2023 IN PARTNERSHIP WITH TGIF Slack is not living up to its name. Yesterday, it announced Slack GPT, AI integrations that will help users automate several things. For example, it could attend meetings for you and summarise them in notes. #DefundMeetings. In today’s edition Nigeria approves blockchain technology Fingo launches app for youth Treepz pivots to car-sharing Funding tracker The World Wide Web3 Event: The State of Tech in Africa Opportunities NIGERIA APPROVES BLOCKCHAIN POLICY Isa Pantami, minister of communication and digital economy, and Kashifu Inuwa, director general of NITDA Web3 isn’t dying…at least not in Nigeria. This week, the Nigerian Ministry for Communication and Digital Economy announced the approval and launch of a national blockchain policy. The policy was launched as part of its 10-year digital economy plan slated for 2020–2030. The ministry reportedly consulted 56 blockchain institutions and figures to create a plan that will see Nigeria use blockchain technology across its economic, agriculture, health, and security sectors. What it means for Nigeria: Nigeria already employs blockchain in its financial sector, notably for its central bank digital currency (CBDC), the e-naira. Earlier this week, its Securities and Exchange Commission (SEC) also announced that it was considering legalising tokenised coins backed by equity, debt or property. While its relationship with crypto is still dicey, with crypto trading banned since 2021, it is still finding interesting use cases for blockchain. Last year, its ICT bulldog, NITDA, partnered with a blockchain company to launch a blockchain scholarship programme aimed at training 30,000 Nigerians. The country is also in talks with global cryptocurrency firm Binance to set up a digital economy via the Nigerian Export Processing Zone Authority (NEZPA). WORK WITH MONIEPOINT At Moniepoint, we’re creating the best workplace for global talent using the 4M framework- Meaning, Membership, Mastery and Money. This isn’t an ad designed to convince you to join us, but it has all the reasons why you should. Watch it here. This is partner content. FINGO APP LAUNCHES IN KENYA TO FOSTER FINANCIAL INCLUSION Ecobank Kenya has unveiled the Fingo app which seeks to increase the financial inclusion of youth in Kenya and across Africa. The app, developed through a collaboration between the lender and Kenyan fintech Fingo Africa, seeks to tap the unbanked youth across 33 countries in Africa where Ecobank operates. More deets Through the app, youth will be able to open a bank account via their mobile phone in less than four minutes, send money to other Fingo and M-Pesa users for free, and pay bills via Paybills and Till numbers at subsidised rates. The app will also have a savings feature wherein a user can set savings goals and set recurring transfers to the goals to create a frictionless savings habit. In future iterations, users will be able to generate a virtual card to use for online transactions. Zoom out: The launch was graced by President Ruto whose administration introduced the “Hustlers Fund” which offers instant loans to Kenyan citizens upon request, aiming to provide cheaper access to credit, and to combat embedded credit. TREEPZ PIVOTS TO CAR-SHARING More mobility startups are taking new turns on the drive to success. This time, it’s pan-African startup Treepz. Yesterday, it announced that it’s becoming a car-sharing marketplace that allows car owners to put their vehicles up for rent. According to the startup, this pivot is a more affordable and sustainable option for mobility in Africa. Old roads make bad trips: Launched in 2019, Treepz is active across three countries—Nigeria, Ghana and Uganda—where its business models included an Uber-like service for minivans, an intercity travel solution, and a corporate mobility solution for businesses. Per the company, it is discontinuing previous offers and focusing on becoming “Africa’s premier car-sharing marketplace”. The company has reportedly spent the past five months building out its new offerings and now claims to have a variety of vehicles including sedans, SUVs, vans, and buses. The business model involves renters or “guests” choosing their desired cars based on location and duration while the vetted car owners or “hosts” set their preferred prices and availability. TC INSIGHTS: FUNDING TRACKER This week, Nomba, a pan-African payment service provider, secured $30 million in Pre-Series B funding. The oversubscribed equity funding round was led by San Francisco-based Base10 Partners, with participation from Helios Digital Ventures, Shopify, Partech, and Khosla Ventures. Here are the other deals this week: Fedi, a Nigerian bitcoin-focused company, raised $17 million in a series A funding round led by Ego Death Capital. Other participating investors include Block, Kingsway, Trammell Venture Partners, and Timechain. Tunisian e-commerce company Drest.tn received $336,000 in an undisclosed funding round from 216 Capital Ventures. Nigerian Insight7, an AI company, secured undisclosed funding from Forum Ventures. That’s it for this week! Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. You can also visit DealFlow, our real-time funding tracker. THE WORLD WIDE WEB3 Bitcoin $29,206 + 0.32% Ether $1,898 + 0.01% BNB $325 – 0.32% Cardano $0.39 – 0.86% Name of the coin Price of the coin 24-hour percentage change Source: CoinMarketCap * Data as of 07:30 AM WAT, May 5, 2023. TC LIVE: THE STATE OF TECH IN AFRICA Join us this morning at 11 AM (WAT) on a special edition of TechCabal Live. We’ll be launching “The State of Tech In Africa report (Q1)”. This report is our flagship report that analyses quarterly data on acquisitions, expansions, product launches, and funding in Africa’s tech ecosystem. This edition looks at Q1 2023, in retrospect and contains interesting patterns and trends to look out for this year. At the event, we would discuss actionable insights and findings from the report with you and share our perspectives on the outlook of Africa’s tech landscape. Click here to save a spot. IN OTHER NEWS FROM TECHCABAL Nomba: From an AI Chatbot to a $150 million valued company. TopUp Mama is now Caantin. OPPORTUNITIES The SaaS Accelerator Program: Africa 2023 has opened applications for its accelerator programme to enable
Read More- May 4 2023
Nomba: from an AI chatbot to a $150 million valued company
It’s not every day you hear that what started as an AI chatbot in 2017 has grown to a VC-backed company with a $150 million valuation. But that is the story of Nomba, a Nigerian fintech that started as Kudi.AI, a chatbot that helped people process online payments. This week, Nomba announced that it raised a $30 million pre-Series B round. Nomba raises $30 million pre-Series B From a chatbot to a company Adeyinka Adewale, the co-founder and CEO of Nomba, told TechCabal that Nomba started as an AI chatbot because a large part of the market wasn’t tech-savvy. “Not everyone was tech savvy enough to download and onboard apps to make payments online,” Adewale stated. So he teamed up with his co-founder Pelumi Aboluwarin, to deploy a simple solution to help the layman navigate the world of digital payments. “We launched in the first week of 2017, and at the time, because a lot of big tech companies were launching natural language processing engines, it was a good time to build an assistant to walk the everyday person through online payments,” he said. According to Adewale, by July 2017, the company had decided to build a platform where merchants could use human interaction to process transactions, instead of artificial intelligence. He explained that after graduating from the Y-Combinator Winter 2017 batch in March, the next hurdle was to scale and solve their two main problems. “Our first problem was that our customers needed a form of human assistance to help them perform transactions in case anything went wrong. Another problem we had at the time was that card payment was not the cheapest way to perform transactions online,” he shared. In solving these problems, Nomba launched an agency banking solution in 2018. Cash flow is the lifeblood of any business Nomba currently has three offerings for small, medium, and large businesses. Adewale told TechCabal that Nomba decided to segment its customers based on their cash flow because, “if you don’t segment your products across those verticals, you will end up building something that will work for someone but might not necessarily work well for the other person.” He added that Nomba is using its customer data to build tailored solutions that will help businesses grow. He said, “because we are in that phase of helping businesses accept revenue (transactions from customer’s payments), we can then help businesses make sense of that data so they can build a better business.” In a statement shared with TechCabal, Nomba stated that it will use its latest funding to build custom solutions for different businesses. “Restaurants will be able to access menus, manage inventory, receive payments, and perform other business functions all from the same hardware,” an excerpt from the statement reads. When asked how Nomba differentiates itself from other companies in the same line of business like Orda and Vendease, Adewale told TechCabal that “it’s all about partnerships”. “It’s about what products we can partner on because you can’t do everything. There are already partnerships in the pipeline,” he added. Exclusive: Nigerian VC firms are considering collaborating to check unethical founders Raising in a global downturn The global tech industry is currently going through a funding downturn as global interest rates continue to rise. African startups are finding it difficult to raise money and funding in the region declined by 57% in the first quarter of 2023. Adewale acknowledged the current funding downturn but shared that Nomba was able to navigate the current downturn by maintaining relationships with its investors before the fundraising process. “The way it worked for us was that we built relationships with investors, told them what we were building, and checked in constantly with them. I have been speaking to some of the investors in the round for a long time, not necessarily fundraising, just catching up and telling them where the business is at, even when we don’t need money,” he said. According to Adewale, maintaining these relationships helped shorten the whole fundraising process, which took less than six months. “Immediately we found our lead investor, it was a fast process because our existing investors were excited to follow on their investments.” He also told TechCabal that Nomba selected its new investors based on their experiences: “Base10 has invested in a couple of platforms like Nubank in Brazil. They also have a business banking product that we have so much respect for. We also have Shopify, which has essentially built merchant solutions for the life of the business, so there’s a lot of expertise and learning for us there. Helios has invested in telecoms and banking in Nigeria, so they are seasoned investors that understand the space.” What does business banking mean for Nomba? According to Adewale, “there’s nothing called business banking as a vanilla product.” (A vanilla product is the most basic and simple version of a product). He explained that business banking for Nomba means creating solutions for businesses depending on the demand from these businesses. “What we do is pick the segments that we care about and see what the core payment and banking functions are that these businesses care about, and then we build out those features. It doesn’t mean that our products would be a fit for everybody, just for the verticals that we came out with,” Adewale told TechCabal. According to Adewale, Nomba’s business model is based on the fees it charges for each transaction. “Our revenue model is tied to fees on transactions. We are not a lender, so our revenue model is based on transactions processed on our platform,” he said. A valuation of $150 million According to YCombinator data, Nomba is currently valued at $150 million. While YCombinator does not include how they arrived at this figure, this valuation makes Nomba one of the most valuable tech startups in Nigeria. Adewale refused to focus on the valuation, saying that the figure was not a public figure and not important to Nomba. However, he did attribute Nomba’s valuation
Read More- May 4 2023
Internet Society Foundation is supporting digital transformation in Senegal with $250,000 grants
The Internet Society Foundation (ISOC) has announced a skill development grant to support digital transformation in Senegal. The grant is tagged the “Strengthening Communities, Improving Lives and Livelihoods (SCILLS)” program. It aims to expand economic growth and increase educational opportunities by supporting individuals and communities to use the Internet more knowledgeably and skillfully. SCILLS will allow eligible organisations in Senegal to receive up to $250,000 in grants for projects lasting up to two years. Organisations applying for grants must submit applications through Fluxx, the online grant management system. If a project and organisation meet the eligibility requirements, they will be invited to submit a full application. Application for the program opened on May 1, 2023, and closes by end of May. Accepted organisations will be notified in August 2023. ISOC is capitalising on Senegal’s booming Internet Usage Senegal has witnessed a boom in the number of people using the Internet. Per the International Telecommunication Union’s Data Hub, the country witnessed an 11% increase in internet usage over a 1-year period- 2021- 2022. The Internet Society Foundation is seeking projects in Senegal that aim to capitalise on this expanding access by securing educational opportunities and/or supporting economic inclusion for underserved and unserved communities. This includes leveraging the Internet to increase access to high-quality primary and secondary education and improve learning outcomes; improving virtual teaching and distance learning methodologies and skills; building financial opportunities; increasing economic independence; and creating sustainable income sources.
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- May 4 2023
Topup Mama restyles itself as Caantin
Kenyan-based restaurant procurement management startup, TopUp Mama has a new identity. The company announced their rebrand today in a press statement shared with TechCabal. Until its rebrand, TopUp Mama, which operates in Nigeria and Kenya, allowed restaurants and food vendors to restock through a digital platform. The startup sourced supplies from distributors and farmers and delivers inventory to vendors and other end-of-chain users. It will now continue its operations under a new name. “This new brand identity and enhanced platform embody our dedication to boosting the restaurant industry’s contribution to Africa’s GDP and providing better financing access for restaurants and suppliers,” the company statement reads in part. Part of the rebrand includes the launch of an enhanced procurement platform to help restaurants manage vendors. Up to 4,300 restaurants, from local family-owned establishments to well-known chains like Mr Biggs in Nigeria and Sheraton Hotel in Kenya, use Caantin to manage procurement, the company said. Caantin also offers inventory financing for its customers. “Over the past decade, we’ve seen tremendous advancements in front-of-office restaurant operations, with platforms like Square and Toast improving payments, and Uber Eats and DoorDash enabling online stores and digital transactions. However, outdated methods for vendor payments and supply orders persist,” said Njavwa Mutambo, Founder and CEO of Caantin. Njavwa Mutambo, who co-founded TopUp Mama with Emilie Blauwhoff (COO) and Andrew Kibe (CTO) in February 2021, says he hopes Caantin will transform back-office operations for the food business and help reduce the cost of sales. Image source: Caantin Caantin says it grew revenue by 270% last year and financed millions of dollars in inventory, underscoring demand for liquidity solutions for restaurants and suppliers. The revenue growth and need to build a better solution that combined all its offerings at scale, led the team to rebuild TopUp Mama as Caantin. In March 2022, TopUp Mama closed $1.7 million in seed funding bringing the total amount it had raised to $2.16 million. TopUp Mama plans to reach 50,000 businesses in Kenya and Nigeria, TechCrunch reported in May last year. Caantin is playing in a market that is increasingly becoming attractive for investors due to the huge procurement gaps that exist on the continent. Last year, amid a venture downturn, a Nigerian procurement platform, Vendease, raised $30 million in equity and debt funding to expand its operations in Africa, a testament to the increasing investors’ appetite for tech-powered farm-to-table solutions.
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- May 4 2023
How to buy Airtel airtime from MPesa 2023
Airtel is one of the leading mobile service providers in Kenya, offering affordable voice, SMS and data services to millions of subscribers. If you are an Airtel user, it is important to know how to buy airtime using MPesa, a mobile money service that allows you to easily top up your airtime balance from your MPesa account. In this article, we will detail the step-by-step process of how to buy Airtel airtime from MPesa. Step 1: Go to SIM toolkit on your mobile phone The first step on how to buy Airtel airtime from MPesa is to go to the MPesa menu in the SIM toolkit. This will prompt a menu with several options to appear on your screen. Step 2: Select “Lipa na MPesa” From the options on the menu, select “Lipa na MPesa”. It’s usually the 5th option. You will be presented with another menu with options to buy the airtime from MPesa. Step 3: Select “Pay Bill” The next menu you’ll find should have about two options. One should be “Buy Goods and Services” and the second is “Pay Bill”. Select the latter and you’ll see some options that include “Enter business number”. This is your prompt to enter the Airtel pay bill number. Step 4: Enter the Airtel pay bill number Please note that the Airtel pay bill number is not your mobile phone number. The Airtel pay bill number is – 220220. So type in the number and wait for the next prompt on how to buy Airtel airtime from MPesa. Step 5: Enter your Airtel phone number In the space that’ll pop next after the above step, enter your phone number which you’d like to buy Airtel airtime from MPesa. You may come across something like “AIRTXXXXXXXXX”. Don’t fret. Just enter your Airtel number into the XXXX spaces, starting with the Kenyan call code prefix. Afterwards, please check that the details you have entered are correct. Then send. Step 6: Type in the airtime amount you want to buy from MPesa on your Airtel line to complete the transaction. Punch in the amount of airtime you want to buy. Then send. Afterwards, you’ll be prompted to put in your MPesa PIN to authorise the transaction. Once confirmed, you’ll receive a confirmation message from MPesa and Airtel indicating that the airtime has been successfully credited to the recipient’s account. Final thoughts on how to buy airtel airtime from MPesa Buying Airtel airtime on MPesa is a quick and easy process that can be completed in just a few steps. By following the steps outlined above, you can ensure that you always have sufficient airtime to make calls, send texts and access the internet on your Airtel line. Remember to keep your MPesa account topped up to avoid any inconvenience in case of an emergency. Also, note that PesaPal which is the medium on which this airtime purchase is carried out charges a small fee for buying airtime via MPesa. That’s it about buying Airtel airtime from MPesa.
Read More- May 4 2023
Treepz pivots to car-sharing model
Pan-African mobility startup Treepz has pivoted into becoming a car-sharing marketplace that allows car owners to put their vehicles up for rent. According to the startup, this pivot is a more affordable and sustainable option for mobility in Africa. With this move, Treepz is looking to reinvent its mobility business in a rather unexplored niche. The premise is simple: there are 44 cars to 1,000 Africans, demonstrating a high demand for affordable transportation. Treepz aims to fill this gap by allowing people to rent a car only when they need it and for rental periods ranging from hourly to monthly use. On the app, cars can be rented for about ₦30,000 to ₦93,000 daily, but the company believes that as more car owners are onboarded into the system, the consequent price competition will further drive down prices for users. In a statement shared with TechCabal, Treepz’s CEO, Onyeka Akumah, shared how Treepz’s new focus is meeting the pain points of car owners and renters on the continent. “The new Treepz is an exciting innovation for transportation in Africa. We are making better use of more than 26 million vehicles available on the continent to provide commuters with enjoyable and fun transportation service as they travel for work or simply enjoy a smooth ride across the safaris in the continent,” he said. “Today we are regarded as the largest car-sharing marketplace in Africa and we have seized that opportunity with the technology we’ve built for hosts (vehicle owners or rental companies) to manage their inventory, reach new customers and track their growth. While guests who book from these hosts have the luxury to select their dream car for work, pleasure or exploration with a vetted driver,” Akumah added. Per the press release, Treepz has spent the last five months building its marketplace product and is now rolling it out to users in Nigeria, Ghana, Uganda and Kenya. This marketplace, which Treepz claims to be Africa’s largest for car-sharing, holds a variety of vehicles including sedans, SUVs, vans, and buses. The business model involves renters or “guests” choosing their desired cars based on location and duration while the vetted car owners or “hosts” set their preferred prices and availability. Africa’s car-sharing market is nascent, with few active players and hardly any market leader. Treepz believes that its solution, coupled with its experiences in the African markets it has operated in, can position the startup as a top market leader in Africa’s fledging car-sharing market. Speaking to the competition posed by the prevalent ride-sharing model and operators, Treepz’s cofounder, Johnny Enagwolor, shared in an interview with TechCabal, some competitive advantages of the startup’s play. “From a user standpoint, the pricing is better with our car-sharing model. Ride-hailing companies would charge a lot for a full day’s ride, compared to the daily offers on our platform. Also, we have a collection of cars—including trucks and luxury cars—that are not typically used for ride-hailing, thereby expanding the choice for our users. Finally, we are operating at a wider scope, with a system that can operate in more cities than the ones ride-hailing companies are choosing to focus on.” Enagwolor also shared that Treepz’s car-sharing play is not particularly new to the company, as they had tried out the model for some customers in the past, albeit in a non-digitised play. “Eventually, we took a hard look at the business to find out what model was giving us the best margins and could scale better. Then we decided to take a full pivot toward car-sharing,” he revealed. Treepz raised $2.8 million in 2021 and scaled its suite of mobility solutions by acquiring mobility startups in Ghana and Uganda. In Nigeria, it provided three main services, including an Uber-like service for minivans, an intercity travel solution, and a corporate mobility solution for businesses. Now, the startup is discontinuing its previous models to focus on this new mobility vertical, bolstered by a vision of becoming Africa’s premier car-sharing marketplace. Treepz was founded in 2019 by Onyeka Akumah and is backed by notable investors such as Google, SOSV, Goodwater Capital, Techstars, and GIIG Africa Fund.
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- May 4 2023
TechCabal Daily – A bRAND new look
Lire en français Read this email in French. 4 MAY, 2023 IN PARTNERSHIP WITH Happy pre-Friday If you’re in Ghana for the foreseeable future, here’s a reminder that you have until May 31, 2023, to register your SIM card. By then, the National Communications Authority will deactivate every card that isn’t connected to its owner’s National Identity Card. So far, about 25 million out of 36 million SIM cards have been registered. In today’s edition South Africa’s currency redesign Zenith suffers fire outbreak Nigeria’s data and voice fees go up in flames Kenya launches unified QR system The World Wide Web3 Report: The State of Tech in Africa Opportunities SOUTH AFRICA REDESIGNS THE RAND If the idea of a currency redesign makes your skin crawl, you must have lived through—and survived—Nigeria’s unnecessary currency redesign, which almost crippled the economy. South Africa is touting a similar path. For the first time since 2012, the South African Reserve Bank—the country’s apex bank—has unveiled new designs for rand notes and coins. At the launch event held yesterday at the Nelson Mandela Foundation in Johannesburg, the Reserve Bank governor, Lesetja Kganyago, announced that the new currencies will have enhanced security features to prevent counterfeiting. What’s changing? The new notes feature colour-changing ink. Large watermarks that feature Africa’s five biggest animals, one per denomination, have also been embossed on the notes: rhino on the R10 note, elephant on the R20, lion on the R50, buffalo on the R100, and leopard on the R200 bill. The notes also have inclusive features for visually impaired users, including numerals and unique shapes printed in positive and negative ink on the currencies. You can check out the new coins and notes here. Lessons learnt: Nigeria has a lot of lessons to learn from South Africa; even the redesign is more inclusive and well-thought-out than Nigeria’s vanity project. Unlike Nigeria which tried to limit the use of old notes, South Africa will keep the new and old notes in circulation together. The new notes, which will enter circulation today, May 4, will also be rolled out in Lesotho, Namibia and Eswatini, where the rand is legal tender. It will be the first time the country is releasing new coins since 1989. WORK WITH MONIEPOINT At Moniepoint, we’re creating the best workplace for global talent using the 4M framework- Meaning, Membership, Mastery and Money. This isn’t an ad designed to convince you to join us, but it has all the reasons why you should. Watch it here. This is partner content. A FIRE AT ONE OF NIGERIA’S BIGGEST BANK, ZENITH Yesterday, Zenith Bank, one of Nigeria’s big commercial banks, suffered a fire incident at one of its primary data centres. Multiple sources told TechCabal that a backup power system caught fire, leading to a power cut to the data centre and subsequently downtime across its services. Zero accountability: While the bank unsuccessfully tried to switch to its disaster recovery infrastructure, millions of customers had to deal with the failure of its services. But even hours later, at the time of this report, the bank didn’t use any of its social media channels to acknowledge to its customers that it is experiencing a downtime. A member of the communications team who spoke to TechCabal on the phone said that she could neither confirm nor deny the incident. One source told TechCabal that the delay in switching to its disaster recovery is connected to the fact that the services running active standby now have to be switched manually. This begs the question we have asked before: why don’t banks move their infrastructure to the cloud? CALLS AND MOBILE DATA TO GET MORE EXPENSIVE IN NIGERIA Long-distance relationships are about to get expensive for Nigerians as the cost of phone calls and data will be going up soon. The federal government of Nigeria has reintroduced a 5% excise duty on telecom services, as part of the fiscal measures to be implemented this year. Surprise, surprise: The announcement came as a surprise to many, as in September last year, the federal government suspended the proposed excise duty on telecommunication services and eventually exempted the sector from the duty in March. Tax upon tax: In March when Nigeria’s minister of communication Isa Pantami announced that the president had exempted the telecoms sector from the 5% excise duty, he stated that the telecoms industry was under threat from excessive and multiple taxes. According to him, ICT firms pay about 41 duties. Who’s gonna pay? Last year, when the excise duty was first announced, stakeholders in the telecoms sector told everyone who cared to listen that the burden would be on the consumers. The news has been met with dissatisfaction by Nigerians who are dealing with increasing inflation. KENYA UNIFIES PAYMENTS CHANNEL The Kenyan government wants its banks and payment operators to work together. Yesterday, it announced the launch of the Kenya Quick Response Code Standard 2023, or the “KE-QR Code Standard 2023”. Pay with QR codes: The KE-QR is simple. It will offer all payment service providers regulated by the Central Bank of Kenya (CBK) the ability to process payments using QR codes. According to the CBK governor, Patrick Njoroge, merchants will now be able to receive payments from multiple channels, be they banks (Equity, KCB, Cooperative Bank, Absa, and more), mobile money wallets, and other payment processors such as VISA and Mastercard. For consumers, this means that, instead of using debit cards, USSD codes or transfers to pay for stuff, they can simply scan a single QR code and pay. Will QR Codes work though? The CBK states that the KE-QR will allow consumers access to fast and easy payments without the hassle and friction of previous payment processes. QR codes—those black and white square boxes—are just links on a picture. That means after scanning, customers still have to click links and enter some details. From the basic definition of QR codes, it doesn’t seem like there will be much difference. At this stage, the
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