👨🏿🚀TechCabal Daily – MNT-Halan’s fourth expansion
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! How much do Nigerian bankers really earn? Ever wondered how much you could make working at First Bank or Zenith? It’s one of the banking industry’s best-kept secrets. But we’ve uncovered the truth. From entry-level roles to management positions, we’ve got the numbers. Here’s a sneak peak: Union Bank pays its trainees—yes, trainees—about ₦547,000 ($354) per month, the highest we’ve found. The lowest is Zenith Bank’s at ₦245,000 ($159). Here are all the other interesting things we found. Egyptian Unicorn MNT-Halan Expands to UAE Nigeria records highest inflation figures in 2024 develoPPP Ventures funds nine startups with €100,000 World Wide Web 3 Jobs Expansions Egyptian Unicorn MNT-Halan Expands to UAE Image source: MNT Halan Egyptian unicorn, MNT-Halan, is expanding its services to the United Arab Emirates (UAE) market. Its first offering, “Halan Advance,” allows employees to access a portion of their salary in advance. Building on its success in Egypt, Turkey, and Pakistan, MNT-Halan plans to introduce credit, payments, and investment products to the Gulf region subsequently. MNT-Halan has been prepping fopr this expansion since April 2024, partnering with employers and acquiring over 40,000 customers. The company, which provides financial services, including loans, and e-commerce services, aims to serve the UAE’s 3.7 million underbanked individuals by leveraging the country’s strong economy and high smartphone adoption. Since it was founded in 2018, it has issued over $4.4 billion in loans and has 2.2 million quarterly active users. In 2022, MNT-Halan surpassed $300 million in gross revenue. After attaining unicorn status, the company has focused on expansion. In March 2024, it acquired Advans Group in Pakistan, a microfinance bank with over 62,000 clients and 19 branches. Later, in July, MNT-Halan acquired Tam Finans, a Turkish company, to enhance its micro-lending and factoring services. The expansion follows MNT-Halan’s $157.5 million funding round and its entry into the Turkish market in July. The funds aim to fuel the company’s growth beyond Egypt. Read About Moniepoint’s Impact on Pharmacies Do you remember what you bought the last time you visited a pharmacy? Data from Moniepoint’s pharmacy case study reveals it was likely a painkiller. Click here to discover how Moniepoint is enabling access to healthcare through payments and funding for community pharmacies. Economy Nigeria records highest inflation figures in 2024 GIF Source: Tenor Yesterday, Nigeria recorded its highest inflation figures in 2024. The National Bureau of Statistics announced a 34.60% inflation rate for November, up from 33.8% recorded in October 2024. November’s inflation figure was largely due to increases in transport and food prices. Although Nigeria’s harvest season helped ease food prices, flooding in key agricultural states like Borno and increased transportation costs due to a fuel hike have reversed those gains. The country’s failure to implement a 150-day waiver on food imports also quickened food inflation. Analysts predict that Nigeria’s inflation may peak in the coming months, closely followed by a start of disinflation due to the waning influence of fuel subsidy removal and naira devaluation. Despite multiple rate hikes to curb inflation, the Central Bank of Nigeria (CBN) also anticipates a decline in inflation by the second half of 2024 and a potential interest rate reduction in the second half of 2025. CBN Governor Olayemi Cardoso has previously expressed the bank’s goal of achieving a positive real interest rate to stimulate investment and strengthen the naira. Economists also expects the CBN to proceed with gradual interest rate cuts from Q2 next year, predicting a 400 basis point cut to 23.5% by the end of 2025. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Funding develoPPP Ventures funds nine startups with €100,000 Image source: develoPPPdeveloPPP Ventures has selected nine startups from Nigeria and South Africa to receive €100,000 each in non-dilutive funding. The funding is backed by the German Federal Ministry for Economic Cooperation and Development (BMZ). It will be implemented by one of its three public partners, GIZ. The fund targets early-stage companies with business models that improve living conditions in developing economies. In addition to funding, the startups will receive technical assistance to support their growth. The beneficiaries include five South African startups and four Nigerian startups, namely, Nigeria’s Earthbond Limited, South Africa’s Franc, and Nigeria’s Cybervergent among others. In total, the fund supports 34 companies across various sectors in Côte d’Ivoire, Ghana, Kenya, Nigeria, Rwanda, South Africa, and Tanzania. While this is the fund’s first expansion to South Africa, it is in its third phase in Nigeria. To qualify for the funding, the startup must have generated initial revenue, it must be privately owned and profit-oriented. Furthermore, the company is required to procure complementary financing, cap prior funding at €2 million, exhibit strong growth prospects, and target profitability within a three-year timeframe. develoPPP.de is one of three funding programs developed by BMZ to promote private sector engagement in developing countries and emerging economies. The next call for applications is expected in 2025. CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $106,444 + 1.61% + 17.45% Ether $4,002 + 0.96% + 28.69% XRP $2.49 + 3.75% + 138.77% Solana $214.11 – 3.14% – 10.05% * Data as of 06:20 AM WAT, December 17, 2024. Jobs PressOne Africa – Growth and Sales Operations Manager – Lagos, Nigeria Condia – Sales and Partnership Associate – Remote (Nigeria) Moniepoint – Growth Product Partner – Lagos, Nigeria 54 Collective (Radease) – Growth Manager – Hybrid (Lagos, Nigeria) Renmoney – Chief of Staff – Lagos, Nigeria Interswitch Group – Data Engineer, Mobile App Developer – Hybrid (Lagos, Nigeria) Fairmoney – Data Engineer – Remote (Lagos, Nigeria) Duplo – Senior Product Manager, SaaS, Risk & Compliance Manager – Hybrid
Read More
How much do Nigerian bankers earn? Discover the top paying banks in 2024
The 95,000 employees working in Nigeria’s 24 commercial banks share a common experience: a culture of secrecy around how much they earn. In the banking industry, discussing salaries is not just taboo—it’s almost forbidden. “Salaries in banking are sacred,” said one GTCO employee, who asked to remain anonymous due to company policies “At onboarding, HR makes it clear: discussing salary with your colleagues is strictly prohibited,” a banker from Stanbic IBTC shared with TechCabal. This culture of silence extends across all job grades, preventing employees from openly comparing pay with their peers. For the banks, this secrecy benefits their bottom line. It prevents staff from having the necessary information to evaluate their career options, request raises, or consider moving to competitors. This lack of transparency becomes a barrier to employee mobility, even though high turnover rates in the industry have been rising since remote work gained traction in 2020. TechCabal has gathered an in-depth salary scale for Nigerian bankers based on insights from over 26 current employees across 12 commercial banks. The data spans five key grades: Executive Trainee, Assistant Banking Officer, Banking Officer, Senior Banking Officer, and Assistant Manager. These salaries do not include bonuses such as profit sharing or 13th-month salaries. *Click on the dropdown in the image to see pay at different grades. Credit: TechCabal/Margaret Awojide Commercial banks play a critical role in Nigeria’s talent pipeline, hiring and training thousands of employees annually. They also set the standard for entry-level salaries, often adjusting wages to keep pace with inflation. However, with Nigeria’s inflation rate hitting an 18-year high, many banks have been forced to raise their salaries in response. In October 2024, GTCO raised employee salaries by 40%, signaling its commitment to retaining top talent amidst rising living costs. Union Bank followed suit, significantly increasing pay across the board and positioning itself as one of the highest-paying banks in the country. Information about these salaries is often hard to come by. If you have any insights, please use this anonymous form to share what you know and help us fill in the gaps.
Read MoreTech workers paid more for food and transport in November as inflation hits 34.60%
Nigeria’s inflation rate accelerated to a more than 6-month high in November on higher food and transport prices. Data from the National Bureau of Statistics on Monday put November’s inflation rate at 34.60%, up from 33.8% reported in October. The median estimate of five economists in a TechCabal survey was 34.01%. The primary drivers of this surge include rising food prices, exchange rate fluctuations, and increases in transport, housing, and utility costs. November’s food inflation quickened to 39.93% up from 39.16% recorded in October. Although Nigeria’s harvest season helped ease food prices, flooding in key agricultural states like Borno and increased transportation costs due to a fuel hike have reversed those gains. The country’s failure to implement a 150-day waiver on food imports also quickened food inflation. Analysts predict that Nigeria’s inflation may peak in the coming months, closely followed by a start of disinflation due to the waning influence of fuel subsidy removal and naira devaluation. “Ultimately, we think the petrol price hikes are already fading, while the impact of the naira’s sharp devaluation earlier in the year is fading too, such that they will drag on prices over the coming months. Inflation as a result will peak over the next month or two, with disinflation starting thereafter,” said David Omojomolo, Africa Economist at London-based Capital Economics. Omojomolo also expects the CBN to proceed with gradual interest rate cuts from Q2 next year, predicting a 400 basis point cut to 23.5% by the end of 2025. While a recent surge in fuel prices and floods in key agricultural areas have reversed recent gains in food prices, analysts remain optimistic about the long-term outlook for Nigeria’s economy. “Despite these challenges, the current scenario presents opportunities for structural reforms. Policies fostering agricultural productivity could address food price surges, while forex stabilisation efforts could restore market confidence,” said Olajide Oyadeyi, an Economics Researcher at The Commonwealth Secretariat. Strengthening fiscal discipline and diversifying energy sources post-subsidy removal could also enhance economic resilience in the long term, he added.
Read More
Nigeria’s Juicyway raises $3 million to help businesses solve FX shortage problem
Juicyway, a Nigerian cross-border payments startup that helps businesses get FX for international transactions, has raised $3 million in pre-seed funding. The company will use the funding to expand its marketing and business development teams, improve its technology, and scale its business in Nigeria, the US, the UK, and Canada. P1 Ventures led the round with participation from Ventures Platform, Future Africa, Magic Fund, Microtraction, and angel investors Andrew Alli, Gbenga Oyebode, and Tunde Folawiyo. Founded in 2021 by Ife Johnson and Justin Ziegler, Juicyway is a marketplace that allows businesses and individuals to convert local currency to dollars and vice versa. Juicyway serves both suppliers—businesses that are bringing foreign currency (like USD or CAD)—and buyers—businesses that need to buy the foreign currencies from them and make outbound transfers. It makes money from transaction fees and spreads from transactions on its platform. “Businesses come to us for two reasons; the first type of business wants to take local currency, convert it to US dollars, and make international payments via [our] banking partners [demand side]. The second type of businesses want to leverage the accounts we provide to bring money into the continent and convert it into local currency to make disbursements [supply side],” said Ife Johnson, Juicyway co-founder and CEO. The company’s raise comes at a time when access to FX remains a challenge for Nigerian businesses dealing with frequent heavy international transactions. Juicyway is one of the many Nigerian upstarts pitching to solve the country’s cross-border payments problem. Juicyway allows businesses to make cross-border payments using stablecoins—like Tether and USDC—positioning it as a hybrid decentralised finance (DeFi) and traditional finance (TradFi) payments startup. When a business onboards on Juicyway, they can choose to open a US Dollar (USD), Canadian Dollar (CAD), or a stablecoin wallet. Juicyway app in use/Image Source: Juicyway When Customer A comes in and deposits naira to get dollars, and Customer B brings in dollars, they get matched on the platform and exchange liquidity without knowing it. This way, Juicyway is not a counterparty for the transactions. Businesses can set the prices and order limits they want to sell their foreign currencies. Other businesses that need FX can buy the foreign currencies if they match the asking price. This market-influenced pricing system can allow businesses to get good FX deals. “[We saw a problem where] every single time businesses needed to convert local currency to foreign currency, there just wasn’t a supply for that [foreign] currency that was near-instant, cheap enough, or compliant enough to solve their needs,” Johnson told TechCabal. Juicyway has been operating in stealth mode since November 2021 when it first processed its first $9 payment. Since then, it claims to have processed $1.3 billion in total payment volume (TPV)—a metric that Juicyway considers as its North Star—for over 4,000 customers. The startup operates in four markets: Nigeria, the UK, the US, and Canada. Juicyway holds licences in all these markets: an International Money Transfer Operator (IMTO) licence in Nigeria, a Money Services Business (MSB) licence in Canada, and an Authorised Payment Institution (API) licence in the UK. It operates through partner banks in the US, where it has also received a phase 1 payments approval in Washington DC. The company recently expanded its services to individuals, with Johnson saying they needed “critical mass” to test and expand their platform. Individuals needing to make international payments or receive forex supply can also onboard on Juicyway. The startup plans to grow its customer base in the coming months by increasing its marketing efforts. “This is a platform that can handle one or two million people across the UK, Canada, and Nigeria—all existing in one platform—and make money move between one another either directly or indirectly,” said Johnson. Johnson explained that the company operates in a niche market that benefits both remittance companies and market makers. For example, remittance companies like RemitChoice use the platform to sell liquidity and make disbursements, while businesses like IHS Towers use it for outbound payments. “We couldn’t be more excited to partner with Ife, Justin and Idris as they tackle one of the most critical challenges in finance. At P1 Ventures, we seek audacious and exceptional founders like them—visionaries who aim to redefine industries and empower emerging markets,” said Hisham Halbouny, co-founder and managing partner at P1 Ventures. The company will be looking to raise again in the next 18–24 months.
Read More
👨🏿🚀TechCabal Daily – MTN eyes banking licence in SA
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! Bitcoin has entered the six-figure territory! Over the weekend, Bitcoin soared past the $100,000 mark and reached $106,000! This historic surge is due to growing institutional investments, easing inflation in the US, and renewed optimism over regulatory clarity. Adding to the excitement, US President-elect Donald Trump unveiled plans for a U.S. Bitcoin Strategic Reserve, signalling a potential shift in crypto policy. Is this the start of a new bull run, or just a temporary surge? Buckle up, crypto enthusiasts! MTN’s MoMo eyes banking licence in South Africa Tizeti set to become the first Nigerian startup to list on NGX Nigeria to fine banks for selling new notes World Wide Web 3 Jobs Fintech MTN’s MoMo eyes banking licence in South Africa Image source: Zikoko Memes MTN’s mobile money service, MoMo, is eyeing greater autonomy in South Africa. The company is aiming to secure a banking licence from the South African Reserve Bank (SARB) to operate independently. Currently, MoMo relies on African Bank as its sponsor. SARB is developing a regulatory framework to enable fintechs and non-banking entities to directly access the national payment system. This move is designed to promote financial inclusion for the millions of South Africans who remain unbanked. A banking licence would empower MoMo to offer more comprehensive and affordable financial services. While the service already supports basic transactions like payments and transfers, a full banking licence would allow it to expand its offerings. Already, MoMo South Africa has garnered significant traction, with 11 million registered users and 3 million active ones. The service has also been at the forefront of financial innovation, becoming the first non-banking entity to offer PayShap, a real-time payment service. Additionally, its partnership with MasterCard has enabled the launch of MoMo virtual cards across 13 African countries. Read About Moniepoint’s Impact on Pharmacies Do you remember what you bought the last time you visited a pharmacy? Data from Moniepoint’s pharmacy case study reveals it was likely a painkiller. Click here to discover how Moniepoint is enabling access to healthcare through payments and funding for community pharmacies. Startups Tizeti set to become the first Nigerian startup to list on NGX Image Source: Tizeti Since the revision of listing rules to include startups, the Nigerian Exchange (NGX) has struggled to attract startups to its platform. Earlier this year, the CEO of NGX, Jude Chiemeka, mentioned that a few startups were considering listing on the exchange. The startup-starved NGX is poised for a breakthrough as Tizeti, a Y Combinator-backed internet service provider, is planning to go public. This comes two years after Tizeti initially announced its intention to become a publicly traded company. Listing on the NGX will help Tizeti access more investors, raise funds in naira, and reduce the pressure to deliver high returns due to naira devaluation. The company—which reportedly has generated over $7.8 million in revenue—will be the first Nigerian startup to list on the NGX. “We have started that journey but are focused now on the launch of our fibre broadband service. We will share more information on the IPO shortly,” Temitope Osunrinde, Vice President for Marketing at Tizeti Networks told TechCabal without sharing the timeline for the IPO. Many Nigerian startups are reluctant to list on the NGX, citing inefficiencies in the marketplace for raising capital despite its great run in 2023. Some African startups opt to list on foreign exchanges such as the New York Stock Exchange or NASDAQ despite the higher cost of listing. This preference is attributed to access to a broader investor base, global visibility and better automation that makes it easier to manage listings and transactions. However, these ventures have yielded limited success stories. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Economy Nigeria to fine banks for selling new notes Image source: YungNollywoodWhat’s a Nigerian party without newly minted notes? Well, Nigerians may need to find new ways to get the party going without newly minted notes as the CBN is imposing fines on banks caught selling newly minted banknotes. A new circular from the central bank says it will impose a ₦150 million ($97,000) fine to deposit money banks caught selling newly minted bank notes. Since Nigeria’s cash shortage began in 2022, after an ill-timed currency redesign, Nigerian partygoers began sourcing freshly minted notes from POS agents and cash hawkers who buy them from banks and resell at a markup. However, the CBN believes these POS agents and cash hawkers are exacerbating the country’s cash crisis. One publication recently reported that POS agents were selling newly minted notes in busy Lagos markets, exacerbating the dire situation. The ₦150 million fine ($97,000) is the CBN’s second attempt to fix the country’s cash crisis which has seen users heavily reliant on POS agents for cash. The CBN released a toll-free line for users to report bank branches with empty ATMs. Although some banks have started adhering to the Central Bank of Nigeria’s (CBN) guidelines, it’s unclear whether imposing fines on banks will tackle the root cause that motivates cash-intensive businesses to sell their banknotes to POS agents. Introducing Paystack transfers in Kenya Paystack merchants in Kenya can now send single and bulk transfers to any Kenyan bank or MPESA account (including customer wallets, Paybills, and Tills) Learn more → CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $104,778 + 2.33% + 14.43% Ether $3,962 + 1.59% + 26.56% Dogecoin $0.40 + 1.31% + 7.40% Solana $221.49 + 0.33% + 0.31% * Data as of 06:30 AM WAT, December 16, 2024. Jobs PressOne Africa – Growth and Sales Operations Manager – Lagos, Nigeria Condia – Sales and
Read MoreEthical and responsible AI deployment: A focus on Africa
This article was contributed to TechCabal by Uchenna Okpagu. As AI adoption accelerates globally, Africa finds itself at a crossroads, with both immense potential and significant risks. Whether fine-tuning an existing large language model or training a frontier AI model tailored to the continent, addressing the ethical and societal challenges associated with AI deployment is critical. Africa’s diverse cultures and languages make it imperative to build AI models that reflect our unique identity while mitigating risks like data privacy breaches, bias, and misinformation. Understanding the risks AI models present risks that must be addressed to ensure ethical and responsible AI deployment. Data privacy concerns arise when sensitive personal information is inadvertently exposed during the feature engineering process, necessitating robust privacy measures. Using unlicensed data, such as the personal information of patients (e.g., medical records) or students (e.g., academic records), to train or fine-tune a Large Language Model (LLM) is highly unethical. This practice breaches privacy, as the AI model could potentially use such data to make predictions for other users, inadvertently exposing sensitive personal details. If such data must be used, explicit consent should be obtained from the individuals involved, and the data should be thoroughly anonymized to ensure privacy is protected. Output bias, often stemming from imbalanced training datasets, can lead to the unfair treatment of specific groups. Excluding data from certain ethnic groups or tribes during the collection and preparation of training datasets can lead to significant consequences. AI models trained on such incomplete data will likely produce biased or unfair results for those excluded groups, reinforcing inequity and reducing the effectiveness and inclusivity of apps leveraging that model to provide solutions. Misinformation, caused by model hallucinations or errors in training data, undermines trust by producing inaccurate outputs. The quality of an AI model heavily depends on the reliability of its training data. If misinformation is present in the training data, the model can propagate it, potentially causing serious socio-economic or health consequences. The significance of this issue cannot be overstated, as inaccurate outputs from AI systems can have far-reaching negative impacts. Furthermore, unintended consequences may arise when certain groups are disadvantaged, even after a proper and balanced data extraction process. This underscores the importance of robust and ongoing post-training activities, such as aligning AI models through Reinforcement Learning from Human Feedback (RLHF) and continuous monitoring, to ensure fairness and mitigate biases. Pillars of Ethical and Responsible AI Safety Models must produce safe and non-toxic outputs. Recent incidents, such as harmful responses from advanced AI models, highlight the critical need for stricter alignment protocols. Involving subject matter experts during the RLHF stage is essential to ensure AI outputs are safe, responsible, and non-toxic to society. For instance, a tragic case involved a 14-year-old teenager who took his own life after an AI chatbot suggested that suicide was a way to “be with” the bot. This devastating outcome could have been prevented if the platform had implemented robust guardrails to detect emotional distress and intervene by discouraging or blocking such conversations. Robustness AI systems must withstand adversarial attacks, such as jailbreaking or prompt injection, to maintain integrity. Many users with malicious intentions actively seek to bypass the built-in guardrails of AI systems. Just as antivirus software is essential to protect computer users from cyberattacks, AI models must be equipped with robust, air-tight guardrails to resist adversarial exploits. Additionally, constant monitoring is crucial to detect and respond to such attacks proactively, ensuring faster resolution and maintaining the integrity of the system. Reliability Models should consistently deliver predictions within the scope of their training, ensuring relevance and accuracy, particularly in critical fields like healthcare. Subject matter experts play a crucial role in AI model alignment, helping to ensure more reliable and contextually appropriate outputs. A recent example of this approach can be seen in OpenAI’s development of Sora, their text-to-video generation model, where they incorporated feedback from artists and video content specialists during the alignment process. While this particular case had its complexities, the underlying principle remains sound: involving domain experts during post-training alignment helps ground AI systems in real-world expertise and professional standards. Explainability Transparency in AI systems’ decision-making processes is crucial for building stakeholders’ trust. While open-source models like Meta’s Llama provide public access to model weights, this alone doesn’t guarantee algorithmic clarity or decision-making transparency. Modern large language models remain largely “black boxes” even when open-sourced, with their internal reasoning processes still difficult to audit and understand. True transparency requires additional mechanisms beyond open-source weights, including interpretability research and robust evaluation frameworks. Fairness Unbiased model predictions require representative and carefully validated datasets. For African AI development, this means engaging ethnic and tribal leaders during data collection and preparation. Their involvement helps capture diverse cultural values and perspectives, reducing systemic bias in training data before model development begins. The African Perspective To unlock the full potential of AI in Africa, models must be deeply rooted in our cultural and linguistic diversity. Building datasets that accurately reflect our unique context is essential, as is rigorous post-training alignment and reinforcement learning with human feedback (RLHF). These steps will ensure AI models deliver real value and gain the trust of African users. The establishment of an African AI Safety Board is overdue. The African Union (AU) should prioritize this initiative as part of its 2025 agenda to oversee the ethical development and deployment of AI systems across the continent. _______________ Uchenna Okpagu is an expert in AI and machine learning. He is a Certified AI Scientist (CAISTM) accredited by the United States Artificial Intelligence Institute. As the Chief AI Officer at Remita Payment Services Limited, Uchenna spearheads AI innovation and enterprise-wide adoption, driving the integration of AI solutions that address real-world challenges.
Read MoreCBN imposes ₦150 million fine on banks found selling mint banknotes to currency hawkers
Nigeria’s Central Bank (CBN) has imposed a ₦150 million fine on deposit money banks and financial institutions caught selling newly minted banknotes to currency hawkers. The details of the fine, contained in a Friday circular seen by TechCabal, come as Nigeria grapples with a prolonged cash shortage that has left customers struggling to access cash at ATMs and over-the-counter. “The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify naira banknotes, thus impeding efficient an effective cash distribution to banks’ customers and general public,” said the circular dated December 13. The cash crisis began in late 2022 with the CBN’s controversial currency redesign policy, aimed at curbing counterfeit currency and “reducing cash outside of banks.” The unintended effect was a cash shortage that led to widespread frustration among citizens who could not access cash in banks and ATMs. The shortage continued long after the currency redesign was shelved and has led to a surge in demand for cash via alternative channels, including POS agents who have sourced banknotes from informal traders, including supermarkets and fuel stations. Beyond POS agents, currency hawkers—who buy fresh notes from banks and resell them at a markup at parties and functions-are also believed to have worsened the problem. One publication recently reported that POS agents were selling newly minted notes in busy Lagos markets, exacerbating the dire situation. In response to the new fine, several banks have already taken steps to comply with the CBN’s directives. According to sources close to the matter, at least two major commercial banks in Lagos stopped disbursing mint banknotes over the counter since Wednesday. “Any erring deposit money banks or financial institution that is culpable of facilitating, aiding or abetting, by direct actions or inactions, illicit flow of mint banknotes to currency traders and unscrupulous economic agents that commodify naira banknotes shall be penalised at first instance N150 million per erring branch and at later instances apply the full weight of relevant provisions of BOFIA 2020,” the CBN statement read. It is unclear if fines on mint notes will solve what is likely a systemic problem that has incentivised cash-heavy businesses to sell their bank notes to POS agents, circumventing the banks and ultimately reducing the amount of cash at the banks.
Read MoreYC-backed internet provider Tizeti will become the first Nigerian startup to list on IPO-starved NGX
Tizeti, a Y Combinator-backed internet service provider operating in Nigeria, Togo, and Ivory Coast, will list on the Nigerian Exchange (NGX) two years after first sharing its ambitions to become a public company. An Initial Public Offering (IPO) will allow Tizeti to raise money from a wider pool of investors at a time when VC activity remains tepid and provide exit opportunities for early investors. Raising capital in naira will help the eleven-year-old company avoid the pressure of delivering VC-type returns, a herculean task due to naira devaluation and a slowing economy. “We have started that journey but are focused now on the launch of our fiber broadband service. We will share more information on the IPO shortly,” said Temitope Osunderin, Vice President for Marketing at Tizeti Networks, while declining to share a timeline for the IPO. The Initial Public Offering (IPO) will be a massive positive for NGX, which has tried unsuccessfully to convince Nigerian startups to list on its exchange. African startups often opt to list on foreign exchanges like the NYSE. However, several startups have experienced the unforgiving nature of those markets. After e-commerce giant Jumia launched its Initial Public Offering (IPO) in 2019, its shares traded at around $14.50 before quickly returning to earth. Today, its shares trade at $4.64, with a market capitalisation of $469 million, less than half its almost $2 bn in the heady days. NASDAQ-listed Swvl Holding also saw its share price fall from around $247 per share in 2021 to $6.34 in 2024. With few success stories of foreign listings for African startups, industry players like Iyin Aboyeji believe startups should consider listing on the NGX after hitting $1 million or more in annual recurring revenue (ARR). “They need to think carefully about why they need to raise a Series A and from whom. Raising a Series A from a fund that can’t fund you to a global IPO scale is a fool’s errand,” Aboyeji wrote in a LinkedIn response to Tizeti’s announcement. Founded in 2013 by Kendall Ananyi and Ifeanyi Okonkwo to make the internet more affordable and accessible in West Africa, Tizeti self-reported $1.2 million in 2018 revenue from 3,000 subscribers. The company is backed by Y Combinator, 4DX and Ventures Platform and has raised $7.4 million in two funding rounds since its launch. In 2014, Tizeti differentiated itself by offering unlimited, uncapped internet at affordable prices. Its cost-effectiveness is hinged on using undersea cables from providers like MainPne and solar-powered towers. The company believes its solution is superior to satellite-based internet providers like Starlink, which are expensive and prone to congestion. Tizeti’s products include subscription-based unlimited internet access for homes and businesses in Nigeria and Ghana, co-branded Wi-Fi hotspots with Facebook in high-traffic areas, Voice over IP (VoIP) service, and more recently, FREEFIBER.AFRICA, a new subscription service offering a US IP address, phone number, debit card, and mailing address for $10/month. Tizeti’s network currently delivers over 180 terabytes (TB) of data daily, surpassing a total of 35,219 TB by December 2023.
Read MoreExclusive: First Bank loses ₦7 billion to fraud incident
First Bank, Nigeria’s oldest bank, was hit by a massive fraud incident that led to the theft of ₦7 billion from customer accounts by unknown persons, according to one person with direct knowledge of the matter. Three other persons who asked not to be named discussing sensitive company matters confirmed the incident. The scope and complexity of the incident highlight the increasingly sophisticated nature of fraud in Nigeria’s financial services sector. Nigerian banks lost ₦43 billion to fraud in Q2 2024, yet those numbers are likely underreported. Only 60 of 163 financial institutions in Nigeria reported fraud cases, according to a Nigeria Inter-Bank Settlement System (NIBSS) report; many choose not to report incidents over fear of reputational harm. The fraud incident at First Bank, which reportedly began several months ago, involved the unauthorised diversion of funds from several customer accounts. While the exact mechanism of the fraud remains unknown, three people with knowledge of the incident said the stolen funds were then moved to multiple bank accounts, including those of two fintech companies, a tactic fraudsters use to obscure the trail of illicit funds and make it difficult for law enforcement to trace and recover the money. Exclusive: First Bank sacks over 100 employees after ₦40bn fraud, freezes their personal accounts Despite the large amount involved, the fraud reportedly went undetected for months, suggesting significant internal control gaps. In May 2024, TechCabal reported that a First Bank employee had fraudulently diverted ₦40 billion over a two-year span before eventually being discovered. Two people with direct knowledge of the matter said the bank’s comprehensive audit showed that the total amount the employee diverted was around ₦60 billion. That incident led to the dismissal of 100 employees and was thought to be connected to the abrupt exit of the bank’s CEO. First Bank did not respond to a request for comments on this story. According to two people with knowledge of the matter, First Bank has begun the recovery process and reported the case to law enforcement. Banks and fintech typically work with the police and courts to recover stolen funds. It remains unclear if First Bank has taken legal action over the matter.
Read More
👨🏿🚀TechCabal Daily – Access on a rampage
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! Let’s dive right in. Access Bank to acquire South African bank Palmpay partners with Jumia on payment option South Africa has approved 248 crypto licences Satgana’s thesis on investing in Africa’s green future Funding Tracker World Wide Web 3 Jobs Banking Access Bank to acquire South African bank Image source: YungNollywood Access Bank is on a rampage! The bank is in the news for the second time this week after it offered to acquire South African Bidvest Bank. The R2.8 billion ($159 million) bid comes after Access Bank received approvals from the European Central Bank and the Malta Financial Services Authority to start a bank in Malta on Dec 10. The recent acquisitions are part of Access Bank’s strategy to dominate the continent by 2027. In January 2023, the bank announced it would expand into 26 new countries over the next five years. The bank, which operates in about 23 countries, has snapped up acquisitions in Kenya, Angola, Sierra Leone, and Namibia, with a recent acquisition of a Mauritius bank. Access Bank, Nigeria’s largest bank by assets, is also making these acquisitions to diversify its risk in its biggest market, Nigeria, where it expects its income to dwindle. The bank expects revenue from the Nigerian market to decline to 52% by 2027 and the share of profit before tax to drop to 33% from 63%. After Access Bank’s expansion to Malta which it claims will allow it to “gain a foothold in a market that bridges European and North African economies”, we predicted an expansion to a North African country. It remains to be seen where next the M&A machine will set up shop. Read About Moniepoint’s Impact on Pharmacies Do you remember what you bought the last time you visited a pharmacy? Data from Moniepoint’s pharmacy case study reveals it was likely a painkiller. Click here to discover how Moniepoint is enabling access to healthcare through payments and funding for community pharmacies. Fintech Palmpay partners with Jumia on payment option Managing Director, PalmPay, Chika Nwosu with Sunil Natraj, CEO, Jumia Nigeria. Image Source: Palmpay. Palmpay, the ubiquitous Nigeria fintech app, has directly partnered with Jumia, the e-commerce platform, to allow its 35 million customers to pay on Jumia directly from their accounts. This partnership highlights the growing trend of Nigerian fintechs building pay-by-bank transfer options and Jumia’s drive to improve its online payment options after Jumia Pay, its payment arm, processed $192 million last year. For Palmpay, it also represents an opportunity to earn a share of the payments processed on Jumia, which recorded 2.6 million orders during its month-long Black Friday campaign The pay-by-bank transfer makes sense for fintechs as it eliminates the middlemen involved in card transactions and increases the razor-thin margins in online payments. According to the Central Bank of Nigeria, internet transfers accounted for 51.91% of all e-payment transactions in the first half of 2024. Palmpay and other fintechs gained customer trust in Nigeria after banks failed to meet the demand for cash during 2023’s cash crunch, and the fintechs gave customers an avenue to access cash. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Investment Satgana’s thesis on investing in Africa’s green future Satgana CEO, Romain Diaz. Image source: Satgana/Faith OmoniyiAfrica contributes about 3% of the global greenhouse gas emissions, yet, it is most vulnerable to the effects of climate change. With droughts and rising sea levels threatening water scarcity and energy supply, it is clear that impactful climate solutions are needed. While the likes of Greta Thunberg challenge world leaders to take action to mitigate the effects of climate change through policies, some VCs like Novastar Ventures and Satgana are taking the cue to fund climate-focused innovations in Africa to give an alternative to traditional products. Satgana, a climate-focused VC firm, believes that everyone will willingly use green alternatives if climate tech products can be offered at green discounts. The firm also believes in leveraging the entrepreneurial population in Africa. To this length, it aims to fund at least 30 climate tech startups across Africa and Europe after finalising its first fund at $8.6 million in March. Here’s the catch though. If the adoption of climate tech products is to be accelerated, these solutions must extend beyond the traditionally focused areas of climate tech, such as energy, mobility, and waste management, to address the complexities of the climate crisis. Satgana invests between €100k ($105,000) and €300k ($315,000) in early-stage, category-defining climate tech startups and prioritises underserved areas of climate tech. Uncover the untapped opportunities in Africa’s climate tech scene in an exclusive interview with Romain Diaz, CEO of Satgana. Crypto South Africa has approved 248 crypto licences Image source: Further AfricaFourteen. That’s how many African countries are on the FATF Greylist—a list that contains countries lacking solid structures for fighting money laundering. When it comes to it, bad actors can illicitly move money around these weak systems, for whatever malicious reason, and likely won’t get caught. This effectively means that a quarter of all African countries are considered risky to the international finance community. Since these African countries hit this realisation, they’ve doggedly forced financial service providers to enforce strict compliance checks on users. Yet, for so long, crypto has eluded them. South Africa is changing that. The Financial Sector Conduct Authority (FSCA) has approved 248 crypto asset service provider (CASP) licences, showing a shift towards stricter regulation of the crypto space. This push is part of South Africa’s efforts to get off the FATF Greylist. To comply, crypto providers must meet “fit and proper” requirements under the Financial Advisory and Intermediary Services Act. For users, this means stricter identity checks
Read More