Nigerian fintech Billboxx raises $1.6 million in pre-seed from Norrsken, 54 Collective
Billboxx, a Nigerian fintech offering invoicing and cash flow solutions to Small and Medium businesses (SMEs) has raised a $1.6 million pre-seed funding round. The company plans to use the capital to scale its operations, hire new talent and expand product features. The $1.6 million, a mix of debt and equity, was raised from Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures. Founded in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, Billboxx aims to solve cash flow issues faced by SMEs that often struggle with long or delayed payment cycles from their larger enterprise partners. Billboxx invoice financing means SMEs can receive those advance payments before the clients pay, a crucial cashflow solution for any business. However, customers must first receive approval from their enterprise customers before payment is approved. BillBoxx charges up to 5% for invoice financing and 1.5% transaction fees for payments done on its platform. The company, which claims to which process ₦1 billion monthly also says it has no defaults. “We realised that every business we have interacted with had a lot of billing inefficiencies and cash flow problems. Some of them still do invoices manually or with Excel sheets,” said Obaoye. The startup, which primarily serves small to mid-sized businesses (SMEs), also offers other business banking services to help SMEs manage their finances more effectively. Billboxx claims its unique distribution model allows it to acquire SMEs through partnerships with larger enterprises on its roster. Billboxx serves businesses like Monument distillers, British America tobacco. Obaoye emphasises that the business differentiates itself by providing a solution tailored to small and medium-sized businesses, unlike competitors who focus more on mid-market to enterprise businesses. “We plan to become an operating system for SMEs in Africa,” Obaoye said. Billboxx plans to expand across Africa and will launch a new feature that will allow SMEs access new market opportunities within corporate ecosystems. Obaoye didn’t share further information about the feature.
Read MoreCBN fines Moniepoint and OPay ₦1 Billion each as Nigeria tightens fintech regulation
In a continuation of the Central Bank of Nigeria’s (CBN) increased scrutiny of fintech startups, two of the country’s most prominent unicorns, Moniepoint and OPay, were fined ₦1 billion each in the second quarter of 2024, sources with direct knowledge of the matter told TechCabal. While several other fintech companies were also penalized, the two firms were the largest hit. The penalties followed a routine CBN audit of the fintech sector, which revealed compliance issues. According to two sources familiar with the process, these regulatory checks are a standard procedure for banks and financial institutions under CBN oversight. At least four other fintech companies were similarly penalized, though the details of these fines remain unknown. OPay and Moniepoint issue 17 million Verve cards as Nigerian fintechs switch from Visa and Mastercard The CBN has increasingly relied on fines to enforce regulatory compliance. In 2023, Nigerian banks paid a combined ₦678 million in penalties. In October 2024, the central bank and the Securities and Exchange Commission (SEC) imposed a ₦1.5 billion fine on ten commercial banks, including Zenith and GTBank, for various infractions in the first half of the year. Until recently, Nigeria’s rapidly growing fintech sector largely operated with CBN interference. However, the rapid expansion of fintechs like OPay and Moniepoint, which now serve millions of users, has brought them under greater scrutiny. OPay, for instance, claims a customer base of around 40 million, while Moniepoint, which processed 5.2 billion transactions in 2023, does not disclose specific customer numbers but is similarly large. As these fintech giants have grown in influence, so too have concerns over their regulatory frameworks. A significant issue is that many fintechs, including OPay and Moniepoint, still operate under microfinance bank licenses. Originally intended to support micro, small, and medium enterprises, these licenses have allowed the companies to expand rapidly and service millions of customers. However, with that expansion has come heightened concern that the current licensing framework is inadequate to safeguard customers effectively, according to one source. Beyond licensing concerns, the CBN has also expressed concerns about the fintechs’ compliance with Know Your Customer (KYC) processes. In April 2024, the central bank imposed a two-month ban on customer onboarding for several fintech companies, including Kuda Bank and Palmpay, citing non-compliance with KYC standards. The ban forced fintechs to overhaul their onboarding procedures and commit to improving their compliance measures. Moniepoint declined to comment on any part of this story. “We categorically refute the claims that OPay Digital Services was fined by the Central Bank of Nigeria to the tune of ₦1 billion for regulatory infractions,” OPay said in a statement to TechCabal. “These claims are entirely false.” The Central Bank of Nigeria did not immediately respond to a request for comments.
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Next Wave: How East Africa’s regulatory environment is suffocating startups
Next Wave: How East Africa’s regulatory environment is suffocating startups Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner First published 08 Dec 2024 From Nairobi’s Silicon Savannah to Kampala’s burgeoning tech startup scene, the East African region has become a hub of innovation, attracting VC investors and creating solutions that address local challenges. For instance, Kenyan startups, in 2024, secured over $1 billion in venture funding, outpacing other countries on the continent. These investments, however, are being hindered by a stifling regulatory environment. Local founders have often found themselves crushed under the weight of unpredictable regulatory agencies and excessive bureaucratic red tape. In 2023, a barrage of regulatory challenges including high taxes and licensing issues led to the collapse of Kenyan logistics startup Sendy. Over in Tanzania, e-commerce giant Jumia was forced to shut down in 2022 after it struggled to comply with tax regulations. For every successful startup story, other ventures have collapsed—not due to a lack of talent or ideas, but because of barriers imposed by existing laws. And things don’t look like they’re speeding up anytime soon. Next Wave continues after this ad. PalmPay is a leading fintech platform focused on driving economic empowerment across Africa. Trusted by over 35 million Nigerians and 1.1 million businesses. Start enjoying a 99.9% transaction success rate with Palmpay. Sign up here. In June 2024, the Central Bank of Kenya promised to change local laws to allow the licensing of fintechs, but little has been done, condemning startups to uncertainty with no sight to an end. The existence of multiple regulatory bodies, each with its own licensing requirements is a pervasive challenge. Take Kenya as an example: founders may need to get clearance from the Communications Authority of Kenya (CA), the Central Bank of Kenya (CBK), the Capital Markets Authority (CMA), and the Kenya Revenue Authority (KRA), among others—all of which can take years. The overlapping—and often conflicting—requirements create confusion and additional costs for startups. Even with a war chest and the right talent, navigating the legal environment in East Africa is no walk in the park. The time it takes to obtain a license for a startup is prohibitively long. In some countries like Kenya and Tanzania, acquiring all necessary permits can take more than a year. Chipper Cash, Flutterwave and other fintechs have been trying to get licenses from CBK for close to five years. In Uganda, acquiring a financial service provider license can take up to six months, during which time startups cannot operate legally. The delays in licensing lead to lost revenue and missed opportunities. Next Wave continues after this ad. FANDF Consultancy hosts a FREE webinar to help immigrants and Africans, “Land Six-Figure Tech Careers in 2025.” Led by Dr Fin. Dittimi (Experienced trainer, PhD in AI/ML), the 60-min event will equip you with secure lucrative tech roles to earn more! No coding skills required! SECURE YOUR SPOT Local startups lack the financial muscle to meet the high compliance costs in East Africa. For example, the new data protection laws in Kenya require companies to hire a data protection officer, a requirement that most startups cannot afford. The strict compliance audits and the high legal fees add to the companies’ financial burden. The pervasive culture of corruption among government officials worsens these challenges faced by entrepreneurs, forcing VCs to seek other markets. East African governments are notorious for abrupt policy changes, proving difficult for most tech startups. Unpredictability in tax laws and licensing in Kenya, Uganda and Tanzania has created an unstable business environment, discouraging both local and foreign investors. Investors are often wary of regulatory uncertainty. Sudden policy shifts and inconsistent enforcement of laws erode investor confidence, diverting funding to other countries perceived as more business-friendly. East African governments must adopt policies that support the thriving startup ecosystem. East African countries should prioritise harmonizing regulations across member states to foster innovation. Despite the slow progress in the region, Rwanda has consistently ranked high on the World Bank’s ease of doing business index, helped by streamlined regulations and ease in starting and operating a business. It has also offered tax incentives and reduced corporate taxes to attract investors. Adonijah Ndege Senior Reporter, TechCabal. We’d love to hear from you Psst! Down here! Thanks for reading today’s Next Wave. Please share. Or subscribe if someone shared it to you here for free to get fresh perspectives on the progress of digital innovation in Africa every Sunday. As always feel free to email a reply or response to this essay. I enjoy reading those emails a lot. TC Daily newsletter is out daily (Mon – Fri): Brief of all the technology and business stories you need to know. Get it in your inbox each weekday at 7 AM (WAT). Follow TechCabal on Twitter, Instagram, Facebook, and LinkedIn to stay engaged in our real-time conversations on tech and innovation in Africa. If you liked this edition of Next Wave, please share with your friends. And feel free to reply with thoughts and feedback. We welcome those. 18, Nnobi Street, Surulere, Lagos, Nigeria View in Map You received this email because you signed up on our website or made purchase from us.If you know longer wish to recieve these emails, please unsubscribe
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👨🏿🚀TechCabal Daily – Kenyan banks to lower lending rates
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! OpenAI has had a busy year shipping generative AI products faster than we can keep count. It has finally released Sora, its AI video generation tool which launched internally in February, to the public. Sora is OpenAI’s promise to generate hyper-realistic short videos with simple prompts. The tool is now available to ChatGPT Pro subscribers—which costs $200. But European countries will have to wait a little longer to get access to Sora. Kenyan banks to lower lending rates NITDA warns against phishing malware Pan African Towers appoints Oladipo Badru as acting CEO World Wide Web 3 Opportunities Banking Kenyan banks agree to lower commercial lending rates Image source: TechCabal On December 5, the Central Bank of Kenya (CBK) lowered its benchmark interest rate by 75 basis points from 12% to 11.25%—a decision that the CBK governor Kamau Thugge attributed to the inflation rate slowdown in Kenya. This was the third successive time that the apex bank had lowered rates after cuts in August and October. Despite these cuts, commercial banks have been slow to lower their lending rate, which is still high at an average 17.15%. This has frustrated the Central Bank’s efforts to stimulate borrowing activities in the country to encourage economic growth. “All we are asking is for banks to be fair and to act in the same way that they were quick to raise lending rates when the policy rate was increasing and the treasury rates were increasing,” Thugge said. Over the last few months, the prices of goods and services have dropped in Kenya—which has prompted a stable inflation rate. When prices drop, people and businesses can spend less on goods and have more confidence to borrow money for other needs like investment. While the high rates of these commercial banks have discouraged consumer borrowing, commercial banks also have a cogent reason for their hike. Non-performing loans (NPLs), which is a metric that measures how much of the loans lenders are able to recover, hit a multi-decade high of 15.5% in April 2024. As of October 2024, the rate has accelerated to 16.5%. To compare the rallying rates, the CBK reported in Q4 2023 that the industry’s gross NPL ratio was 14.8%. NPL ratio quickens when borrowers struggle to repay their loans—which brings the situation full circle to the state of the economy. As a result of all these compounding issues, private sector lending in Kenya has since slowed. The good news is that banks, through the Kenya Bankers Association (KBA) which has 43 member banks, have now responded to CBK’s directive to lower lending rates. Kenyan banks will start easing their lending rates in December 2024 to mirror the Central Bank’s rates. However, they will only do so “progressively” to cushion themselves from the financial shock that will likely arise from dropping rates and dealing with the loan losses. 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. Cybersecurity NITDA warns against phishing malware Image Source: News Central TV Cyber fraud and identity theft are usually rampant in December. This is when retail customers, who are the targets of identity theft, are most vulnerable. During the December holidays, people shop more, spend more, and are often in a hurry. This makes it easier for scammers to trick them. Many people buy things online, where fake websites and deals are common. People are also distracted and may not notice something wrong with phishing links. All of this gives fraudsters a better chance to steal money or personal information which they can use to commit fraudulent acts with the identities they obtain. It is common to see a lot of warnings urging people to be careful during this period. Blowing the first whistle, the National Information Technology Development Agency (NITDA) has warned retail banking customers to be careful of a malware called Grandoreiro, which targets unsuspecting victims through phishing links. Grandoreiro is a Brazilian banking trojan which allows threat actors to steal your personal information by bypassing the security measures of your banking apps, once they gain access to your phone. It has been active since 2016 and has now spread globally, with Africa recently joining the list. Fraudsters who use Grandoreiro typically send an email to banking customers that resembles the ones they typically receive from their banks. The email contains a PDF file, which when opened, redirects you to the malicious webpage. Once the victim downloads the malware, the trojan instantly locks itself into the user’s banking apps and payload, and steals their personal information. Babatunde Olofin, the Managing Director of Moniepoint, a Nigerian fintech, has also warned users against sharing their bank accounts publicly, citing that their information can be stolen. As cyber activities peak this period, it is important for users to protect their identities and banking information to avoid falling victims to cyber fraud. 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! Telco Pan African Towers picks Oladipo Badru for acting CEO Oladipo Badru, Pan African Towers Acting CEO/Image Source: TechCabalPan African Towers (PAT) has switched things up at the top, appointing Oladipo Badru as its new acting CEO after Azeez Amida, former CEO, decided to pursue “other opportunities.” Badru, who traded his chief financial officer (CFO) position for the CEO hot seat in November 2024, now has the task of ensuring PAT remains upright—like its 764 telecom towers. The company is looking to expand its assets as well.
Read MorePan African Towers appoints Oladipo Badru as acting CEO
Pan African Towers, a Nigerian telecommunications infrastructure provider serving 9mobile and Spectranet, has appointed Oladipo Badru as the acting chief executive officer. He resumed in November 2024. Badru, who was previously the company’s Chief Financial Officer, succeeds Azeez Amida, who resigned after two and a half years as managing director and CEO to pursue other opportunities, the company said in a statement. Adefolarin Ogunsanya, chairman of Pan African Towers, acknowledged Amida’s contributions to the company’s growth, stating, ‘We wish him well in his future endeavors. Badru will work closely with the executive management team to ensure continuity, and we are confident in his leadership and commitment to our mission.’ With a new leadership in place, Pan African Towers aims to strengthen its position in the competitive telecom tower infrastructure market, which is currently dominated by IHS Towers, American Tower Corporation (ATC), and Helios Towers. PAT currently owns 764 active towers across Nigeria, serving more than 1,200 tenants, including mobile network operators (MNOs) and internet service providers (ISPs) like 9mobile, ntel, Bitflux, Spectranet, and Smile Communications. On November 27, PAT secured undisclosed funding from Development Partners International (DPI) and Verod Capital to accelerate its growth. The fund will help the company address Nigeria’s infrastructure gap, with plans to triple its tower footprint in the coming years. The company will also explore acquisitions and partnerships.
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Hacks to shopping on Temu in 2024 and beyond
The festive season is upon us, and so is the annual pilgrimage to the digital shopping bazaar. If you’re among the countless bargain-hunters excited about shopping phones and the likes on Temu in 2024 especially with their ADs sticking out in your face everywhere you turnt, buckle up. Temu is a treasure chest of delights, but for some, it’s also a Pandora’s box of tiny surprises. Yes, those adorable “life-sized” teddy bears and “premium” furniture sets sometimes arrive looking more like dollhouse accessories than real-world purchases. Here’s how to shop smart and avoid starring in your own “What I Ordered vs What I Got” drama. 1. Read the fine print Product descriptions are not suggestions. They’re the actual ‘facts’. If that “luxurious outdoor ticking chair set” sounds too good to be true for N6000, it probably is. Check the dimensions because that 3cm you see is not a typo; it’s your bench…for ants. Shopping on Temu in this 2024 isn’t about just looking at the pretty pictures; it’s about detective-level scrutiny. 2. Read the product reviews like you have an exam on them Temu shoppers love to share their discoveries (and disasters). Reviews often include pictures, and these snapshots can be lifesavers. If you see multiple buyers posing next to a “giant Christmas tree” that looks more like a broccoli stem, heed the warning. Reviews are the reality checks you need before clicking “Buy Now.” 3. Check the product categories When shopping on Temu in 2024, remember that the platform caters to ‘everybody’. Whether you’re a collector of miniature figurines or an actual human with full-sized needs, there’s something for you. Just ensure you’re in the right category. A £3 sofa cushion might actually be for chipmunks. 4. Manage your expectations and your budget Temu is ‘cheap’. But cheap doesn’t always mean cheerful. If you’re paying N500 for a “vintage lamp,” expect charm, not illumination. Temper your expectations – buying low-cost items is a game of chance, not a promise of perfection. Final thoughts on hacks to shopping on Temu in 2024 and beyond Even if your “massive festive wreath” arrives looking more like a keychain, don’t despair. Use it to adorn your pet’s tiny head, if you own one, or gift it to someone with a good sense of humour. Festive shopping is about joy, not perfection. Shopping on Temu in 2024 can be a wild ride, but it doesn’t have to end in tears or laughter at your expense. Read, review, and revel in the ridiculous bargains—just ensure you know what you’re actually buying. And remember, tiny surprises can sometimes bring the biggest smiles!
Read MoreKenyan banks to lower interest rates following pressure from the Central Bank
Kenyan commercial banks will lower lending rates beginning December 2024, following increased pressure from the Central Bank of Kenya (CBK). Last week, the CBK’s Monetary Policy Committee reduced the benchmark rate by 75 basis points to 11.75%, the lowest level since the Covid-19 pandemic.” Despite three successive rate cuts, the gap between the Central Bank Rate (CBR) and lending rates has widened to a 31-month high, raising concerns about the slow transmission of monetary policy changes to customers. In October, the spread between CBR and commercial lending rates rose to 5.15%, as average interest rates rose to 17.15% from 16.91% in September. On December 6, CBK Governor Kamau Thugge told banks to align lending rates with recent reductions in CBR or risk harming the economy. “All we are asking is for banks to be fair and to act in the same way that they were quick to raise lending rates when the policy rate was increasing and the treasury rates were increasing,” Kamau said. “I think it’s in banks’ interest to lower their lending rates. If they continue on this path it will be a no-win for anyone and the economy will not be able to perform.” The Kenya Bankers Association (KBA) said its 43-member banks will begin reviewing loan interest rates to “unlock access to affordable credit.” The decision comes after the lenders ignored the regulator’s previous warnings that retaining high interest rates was hurting private sector growth. “The recent successive cuts in the Central Bank Rate (CBR) have implications on both deposit and lending rates in the market. Banks are taking steps to lower interest rates and make borrowing more affordable,” KBA said on Sunday evening. “Individual banks are issuing the requisite notices to customers indicating reductions in loan rates from December 2024 and these reductions will continue progressively in line with the evolution of monetary policy.” While KBA welcomes the rate cuts, it is also calling for larger reductions from the CBK to effectively stimulate lending and economic growth
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👨🏿🚀TechCabal Daily – Less money, more problems
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! If you’re looking for an event to close out your year, our friends at Founder Institute Lagos are hosting Unwind 2.0 on the 13th of December. The theme of the event is “How We Built It” and will feature firsthand insights from founders who’ve turned challenges into opportunities. There’s also the opportunity to network with investors and other ecosystem players. So if you’re a founder, an investor, or a startup ecosystem enthusiast in Lagos, register for Unwind 2.0. Only 29% of South African organisations will increase cybersecurity budget in 2025 Telecoms’ investment in Nigeria dropped by 87% Nigeria to offer $1.2 million in MSME loans US upholds TikTok ban World Wide Web 3 Job Openings Cybersecurity Only 29% of South African organisations will increase cybersecurity budget in 2025 Image Source: Google What is the answer to a wave of cyberattacks that affected South Africa’s biggest institutions in 2024? Apparently, not a bigger cybersecurity budget. In the last three years, South African organisations—including big corporations and government parastatals—have lost up to $20 million to damning cyberattacks and data breaches. This year, the country was ranked as one of the most-affected countries in Africa, dealing with more than 1,876 recorded cases in Q3 2024 alone. Government arms like the Companies and Intellectual Property Commission (CIPC) and the National Health Laboratory Services suffered breaches. Despite these headline-grabbing cyberattacks, only 29% of South African organisations plan to increase their cybersecurity budget by 2025, according to consulting firm PwC. The disconnect is striking. Cybercriminals are sharpening their hunting instincts and shooting faster than these organisations can fly. Some of them are forming hacktivist and syndicate groups to attack and share companies’ data among themselves or sell the information for cheap. Large South African organisations that are getting minimal budget lifts could mean one of two things: they have either implemented top cybersecurity policies and only consolidation remains, which likely explains the minimal spend. Or, they are de-prioritising a channel that was a leaky pipe for them in 2024. If the latter is the case, then the rhetoric here is whether South Africa’s biggest organisations are irrationally optimistic about the threats. 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. Telecoms Investments in Nigeria telecoms market drop by 87% in Q3 2024 Image Source: Zikoko MemesLike Nigeria’s tech ecosystem, the telecommunications sector has seen a decline in foreign investments. Data from Nigeria’s Bureau of Statistics (NBS) shows there was an 87% decline in foreign investments in Q3 2024. The sector received about $14.4 million, a steep decline from the $113.42 million recorded in the previous quarter. According to the data from the NBS, the telecom sector’s capital inflow plummeted 77% year-on-year in Q3 2024, shrinking from $64.05 million in 2023 to just $14.73 million. The decline in investment is not particularly surprising given the macroeconomic challenges in Nigeria. Telcos across the country have borne the brunt of Nigeria’s currency devaluation. MTN Nigeria, the country’s largest telco and historically a guaranteed profit maker, reported a loss after tax of ₦519 billion ($834 million) for the first half of 2024, mostly due to FX devaluation. Airtel too, the country’s second-largest telco, in February, reported a 99% decline in profits, mainly due to currency devaluation in Nigeria and its other markets. These losses coupled with other factors like shrinking demands from customers—due to low consuming power—erratic power supply and multiple taxations have forced companies to rethink their investment strategy in the country. Airtel, MTN Nigeria, and IHS Towers are considering reducing their investments in Nigeria. 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 Nigeria to offer $1.2 million in loans to MSMEs Image Source: Tenor The Nigerian government plans to introduce a ₦198 billion ($1.2 million) syndicated loan fund to boost Micro, Small, and Medium Enterprises (MSMEs) in the country. The goal is to improve access to affordable credit for MSMEs that are often overlooked for venture funding. Starting in Q1 2025, the initiative will offer loans—up to ₦400,000 ($289)—with a 9% interest rate, a five-year tenure, and a one-year moratorium, enabling businesses to grow and innovate sustainably. This is a relief for MSMEs which, unlike tech startups, have limited access to funding and capital to expand their businesses. MSMEs have loans and grants. Tech startups have venture capital. The rationale is not hard to see. VCs want outsized returns and there is often pressure to pick wide-margin winners. High-growth tech startups, unlike MSMEs, characterise these ventures that can hit a wider market—as a result of their underlying tech-enabled services—and scale quickly. VCs have also voiced their preference for tech companies due to their globalisation, which again, exposes them to a wide market that increases their chances of attracting high-value customers that move the business. On the other hand, MSMEs are the mundane, usually “non-tech” ventures that lack that same global application. They are not usually VC darlings because they cannot sell to the entire country at the same time. MSMEs may not be the hyper-scale, exponential growth startups that VCs love, but they contribute significantly to Nigeria’s economy. Their positioning and closeness to low-end users makes it easy for them to sell much-needed, everyday consumer goods. But MSMEs have typically lacked access to credit and loan facilities. Instead, tech startups and microfinance banks have since stepped up to close this funding gap for MSMEs. With the government’s backing, this loan fund for MSMEs could
Read MorePeople Daily shuts down print newspaper, pivots to digital-only model
Mediamax-owned People Daily, a 32-year-old Kenyan newspaper, will halt its print operations to pivot to a digital-only model. The newspaper published its final print edition on November 29. The decision reflects the shifting dynamics of the Kenyan media landscape as traditional print media struggles due to dwindling advertising revenue and changing consumer habits. People Daily, which adopted a free, ad-supported model ten years ago, claimed the change is due to environmental sustainability and a bid to attract younger, digital-savvy audiences. However, the move is a cost-cutting measure driven by declining ad revenue in a market long reliant on corporate and government advertising for survival. “People Daily going green means using digital printing to publish an e-paper and reducing 100% the environmental impact of newspaper production and associated supply chain processes while still upholding the proper ethics of journalism,” Mediamax Network Ltd CEO Ken Ngaruiya said on Friday. The newspaper said it would amplify diverse voices and align with the growing shift to online news consumption. However, success is uncertain as established players like Nation Media, East Africa’s largest media company, struggle with the complexities of sustaining online media operations. “In a bold move, People Daily has now embraced this transformation fully, becoming the country’s first major newspaper to transition entirely to digital publication,” Ngaruiya added. “Publications like Nigeria’s Premium Times and Sahara Reporters have built reputations for digital journalism, often prioritising online distribution to reach wider audiences.” The Kenyan news market has been challenging, with experts arguing that traditional media companies were slow to adapt when online platforms emerged over 15 years ago. The sluggishness allowed digital outlets to secure advertisers and establish long-term business relationships with them, one advertising executive told TechCabal. Kenyans increasingly favour digital-only news platforms over traditional media, according to a report by Odipo Dev. Nairobi Gossip Club (NGC) topped digital rankings, surpassing Citizen TV and Nation Media-owned NTV Kenya. During the June 2024 protests, NGC was Kenya’s leading news source on Meta platforms and overshadowed traditional media. Advertisers are reallocating budgets to online channels, where targeted campaigns and measurable results offer more value. Younger audiences prefer the immediacy and convenience of digital news, leaving print media struggling to maintain relevance in a digital era.
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👨🏿🚀TechCabal Daily – Waymo’s Moove in the US
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! This year, Jumia’s Black Friday sales campaign brought in 2.6 million customer orders in 30 days across its nine markets—18% higher than in 2023. Interestingly, this is 44% of the total orders the e-commerce company recorded in Q3 2024. The increase shows people are shopping online in Africa, despite macroeconomic challenges. But it also means that customer behaviour is likely shifting toward incentivised offers. In buying and selling, people like good deals, but is it sustainable for these companies? How can they make tradeoffs for incentivised buying while striving for maximum profits? Waymo partners Moove Nissan Egypt to invest $45 million on cars Africa needs to collaborate to build AI policies Funding Tracker World Wide Web 3 Job Openings Mobility Moove partners with Waymo for autonomous fleet operation Image source: Moove In September, we wrote that Moove, the Uber-backed Nigerian startup that finances vehicles for ride-hailing companies, was expanding to the US. We predicted that the startup’s expansion to the US will likely follow its expansion to the UAE where it operates electric and hybrid vehicles. It appears Moove is mooving higher than we predicted. Yesterday, the mobility startup announced a partnership with Waymo, an American startup that makes autonomous technology for cars, to manage fleet operations for its robotaxi service in Phoenix and soon, Miami. This partnership strengthens Moove’s role in fleet management and could lead to working with self-driving cars later on. However, the focus remains on fleet maintenance for Waymo’s robotaxi service, not on leasing autonomous vehicles to drivers. Robotaxi services use self-driving cars to transport passengers without the need for a human driver. This is the first time Moove is working with autonomous vehicles. Waymo, which recently launched its robotaxi service on the Uber app in Phoenix, will rely on Moove to keep its self-driving cars running smoothly and to help set up charging stations and depots in both cities. Waymo intends to transition fleet operations to Moove in Phoenix by early 2025. Moove will also help with the development of charging stations and depots for the company’s fleet in Miami. Moove’s partnership with Waymo is the latest in the startup’s journey after it raised $100 million in March, a round led by Uber with participation from Mubadala ventures. Waymo’s partnership with Moove reflects its strategy to delegate operational management while concentrating on advancing its self-driving technology. 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. Mobility Nissan Egypt to invest $45 million into assembling cars Image Source: Nissan News Nissan Egypt, the subsidiary of the Japanese car manufacturer, wants to drive more investment into local manufacturing. It has announced that it will invest $45 million to produce its third locally assembled car. The plan, made possible through an agreement with the government, targets an annual production of 17,000 units—10,000 for the local market and 7,000 for export. Nissan Egypt’s mission to expand its operations in Africa also aligns with the recent trend of giant Asian car-makers growing their interest in the continent. In October, Japanese automobile upstart and a Nissan competitor, Stellantis announced that it will build production facilities in Egypt in deals worth €116 million ($123 million). Chinese auto-maker BYD also announced plans to expand in Egypt and increase local production of its cars. What is driving this interest from giant car-makers is Egypt’s Automotive Industry Development Program (AIDP), which incentivises automakers to boost local production. The program offers tax breaks, subsidies, and other benefits that make it cost-effective for companies to manufacture in Egypt while serving both local and regional markets. Egypt has a shrinking market for car sales, yet consumers are showing a strong preference for fuel-efficient cars, which is where the opportunity lies for these auto-manufacturers. Nissan’s Sunny model car has been one of its hits in Egypt; in 2023, it sold 10,590 units, the most in the country, dethroning the Chevrolet T-Series in unit sales which has held the number spot for the past eight years. Nissan will build more Sunny model cars. It will also build a new car model to put into the market, with more than half of the parts sourced from local suppliers in Egypt. Beyond this model, Nissan plans to invest an additional $2 million to raise production capacity for all its locally assembled cars, increasing its total output from 25,000 units to over 30,000 by 2025. This expansion comes as Nissan Egypt looks to grow its export revenue, which already hit $150 million, by 50% in 2024. 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! Features AI will create jobs in Africa, but is Africa ready to collaborate? Image Source: Caribou DigitalNew technologies create jobs by redefining old roles or introducing new ones to meet the demands they generate. When artificial intelligence (AI) became mainstream, it birthed roles like prompt engineering, adapted others like data science, and sparked entirely new industries. These roles are key to developing AI solutions for various adjacent sectors. In sectors like fintech, healthcare, and logistics, AI drives efficiency, innovation, and job creation. Yet, in Africa, AI’s potential is hindered by a lack of collaboration across six key components, as highlighted by Caribou Digital. These include policies that are catalytic to AI innovation, grassroots communities that build talent, academia to teach AI, investors to seed ideas, Big Tech for infrastructure, and skilled human capital. While five African countries have national AI policies, most operate in silos, leaving the
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