With 2.6 million orders in 30 days, Jumia’s Black Friday remains a hit with customers
Say what you will about Africa’s macroeconomic conditions and customer spending power, but everyone loves a good Black Friday deal, and e-commerce giant Jumia understands this. During its 2024 month-long Black Friday campaign, which saw 20%-70% discounts on phones, fashion, and lifestyle items, the company generated 2.6 million orders. It’s an 18% improvement on its 2023 Black Friday campaign. That growth happened even though Jumia now operates in nine markets, two fewer than in 2023. 1.8 million Jumia customers participated in this year’s Black Friday—9% more than in 2023. Jumia says it distributed “over one million catalogues and thousands of community radio campaigns to reach new and existing customers.” While the company did not disclose the value of those orders, it’s a positive boost after a third quarter in which order value—$162.9 million— remained largely flat. “We have the right strategy and the right team in place to drive e-commerce adoption and serve the growing African consumer base while moving towards profitable growth,” Jumia CEO Francis Dufay told investors in an SEC filing. The company’s share price spiked briefly to around $12 in July but has since settled at around $3.98 per share. Yet, it’s hard to ignore the elephant in the room: currency devaluation. Egypt and Nigeria, two of Jumia’s key markets have experienced devaluation and volatility in the past year, forcing a need for aggressive growth if it’s the company is to grow in USD terms. “GMV, on a constant currency basis, increased 33% year-over-year,” Jumia’s filing noted. But it reported currency it only increased by 2%.
Read MoreAI could create millions of jobs in Africa but the right policies are crucial
Artificial intelligence (AI) could create 4.5 million new jobs in South Africa and even millions more in Africa. But first, the continent must create AI laws and policies that allow the technology to thrive in an environment that is catalytic to its advancement, according to a new report by research and advisory firm Caribou Digital and the Mastercard Foundation. Africa currently lacks the fundamental structure to lead local AI development. The continent needs an economic game-changer—and AI’s ability to create new industries positions it as that. Yet, the lack of a deep understanding of AI and its impact on the economy, which holds the key to youth employment on the continent, is becoming a fringe problem. Africa risks missing out on AI-driven growth due to a lack of understanding of the technology’s potential and economic implications. AI could be a key driver of youth employment, yet many governments have not developed policies that foster innovation while addressing AI’s risks. Existing policies are either too restrictive or too lax, preventing progress in AI development. Governments must collaborate with sector-specific researchers and practitioners to develop practical, forward-thinking AI frameworks. The gap between government policy and AI development is a recurring issue. As co-founder of the data science training platform Zindi, Megan Yates explains, “What often happens is governments not calling in practitioners and people that actually do stuff. When governments don’t organise and work with practitioners, there’s a risk that the emerging policies are just unworkable and would stifle innovation.” While a few African countries have made strides in AI policy—Mauritius became the first to publish a national AI policy in 2018, followed by Algeria, Benin, Ghana, and Senegal—most nations still lack a formal framework for AI development. Despite this, several countries are taking steps toward creating AI laws, and others have established expert bodies to guide policy development. However, without a continent-wide strategy, innovation clusters—vital to the region’s economic growth and youth employment—continue to operate without cohesive government support or coordination. However, most African nations remain without a framework, leaving innovation clusters—key drivers of economic growth and youth employment—to operate without strategic guidance or government coordination. In the report titled, “The Role of AI Innovation Clusters in Fostering Youth Employment in Africa,” Caribou’s study highlights these AI innovation clusters as governments and policy-makers, academia, investors, Big Tech companies, human capital, and grassroots communities. Academia is crucial for AI development in Africa. Yet, limited institutions are offering AI curricula across Africa and even a shortage of staff, trainers, and researchers to move the technology forward. “We’re looking at developing programs that are practical, moving away from just theory capacity building. I advocate for this because we need more practical skills within these students than just theory,” said Dr. Deji Ajani, Chief Digital Officer at Leads Innovation Limited. A major challenge to AI development in Africa is insufficient infrastructure. AI models require substantial computing power, yet most African countries depend on international cloud services. Although local data centers are growing, energy shortages, high operational costs, and inadequate internet connectivity continue to limit their capacity. As Ojoma Ochai, Managing Director of Co-creation Hub in Nigeria, points out, “There are no GPUs—not that many GPUs. So, the compute capability to build large-scale AI startups is not ubiquitous on the continent.” This gap in infrastructure means that only a small percentage of Africa’s AI talent has access to the resources needed to build and scale advanced models. While investors, Big Tech, and donor-led organisations have led infrastructure and talent development across different African regions, the continent will keep battling the same problems without the collaboration of all six players. With a market size of $3.7 billion and a 28.34% compound annual growth rate (CAGR), AI shows a firm promise that is there for the taking. Governments must be catalysts for AI innovation, collaborating with researchers to formulate stronger policies. Local investment into AI already shows promise. Having funneled $1.2 billion into deep tech in 2023, investors need to create more funding opportunities for innovators. To fully harness the economic potential of AI, Africa needs coordinated efforts from governments, academia, the private sector, and international organizations. As the report emphasises, without collaboration between these stakeholders, the continent will continue to face the same barriers to AI innovation. The time for action is now—only by building the right infrastructure, policies, and educational frameworks will Africa be able to unlock the transformative power of AI for its economy and youth.
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👨🏿🚀TechCabal Daily – Netflix stays put
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! After weeks of anticipation, Spotify released its yearly Wrapped yesterday. Surprisingly, we found it a little underwhelming. This year’s Wrapped edition lacked the swagger of the previous year. We weren’t alone, though. Users on X expressed frustration over the lack of detailed information, such as music genres, top podcasts, and other cool features that were included in last year’s edition. We’d like to know what you think of your Spotify Wrapped. Netflix is not leaving Nigeria Savannah Clinker withdraws Bamburi bid Kenya’s Ruto blasts critics over Adani deals US commits $600 million for African railway project World Wide Web 3 Events Streaming Netflix is not exiting Nigeria Image Source: Google On Wednesday, news about a possible exit of Netflix from the Nigerian market spread on the social platform, X, after a renowned Nigerian film maker Kunle Afolayan said the global streaming giant was decommissioning some movie projects. Afolayan, however, did not explicitly state that Netflix was exiting the Nigerian market, although his remarks will rightly drive speculation that the streaming platform is retreating from the country. In a statement sent to TechCabal, a Netflix spokesperson reaffirmed the company’s commitment to Nigeria. “We are not exiting Nigeria. We will continue to invest in Nigerian stories to delight our audience,” the company stated. The spokesperson did not immediately address Afolayan’s claims about canceled projects. It’s no surprise that the rumour spread quickly. In January 2024, Amazon Prime, another major streaming service, discontinued its support for African content one year after a huge marketing campaign and publishing a slate of original Nigerian shows. Still, Wednesday’s conversation and social media reactions highlight growing uncertainty around Netflix’s long-term strategy in Nigeria, where rising inflation and currency devaluation have pressured consumer spending power. Netflix has struggled to capture a large share of Nigeria’s competitive streaming market, which is dominated by the more affordable Showmax, a streaming service operated by MultiChoice. Netflix, currently priced at ₦7,000 ($4) per month, remains a luxury for many Nigerians, especially as inflation and naira devaluation erode purchasing power. 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. Companies Savannah Clinker pulls out of Bamburi race Image source: Savannah Clinker CEO Benson Ndeta. PHOTO | UZALENDO All is not fair in business. Lawsuits and arrests are messy in the corporate world. Worse if it involves a chief executive. The recent arrest—and later release—of Savannah Clinker’s CEO Benson Ndeta, has complicated the company’s plan to acquire majority shares in Kenya’s Bamburi Cement, a struggling Kenyan cement maker, in one of the most tightly-contested acquisition deals in the country. Ndeta was arrested and tried on the allegations that he fraudulently obtained a $35 million loan from Absa Bank eight years ago. Savannah Clinker, which made an improved bid to buy Bamburi in August 2024, has now pulled out of the two-legged race with Tanzania’s Amsons Group. Kenya’s Capital Markets Authority (CMA) announced on Wednesday that the former is withdrawing its $197.2 million bid to buy 100% shares in Bamburi. The company didn’t want to risk any public scrutiny. It also asked for time to carry out internal due diligence on the allegations. On October 18, Savannah Clinker reassured shareholders that it wasn’t making a shell offer. It listed Faida Investment Bank’s backing and other “sufficient resources” would cover the maximum amount payable under its offer. At KES76.55 ($0.54) per share, Savannah Clinker offered more money than Amsons Group, which could have been a key consideration as shareholders cast their votes. Bamburi planned to reveal how they voted by December 20, 2024, with the new owners being announced in 2025. But with Savannah Clinker off the bid table, Tanzania’s Amsons Group has a clear pathway to owning 100% shares in Bamburi, marking the family-owned conglomerate’s entry into Kenya. Amsons could delist Bamburi from Nairobi’s capital market to operate privately and revive the business. Swiss company Holcim Group, a majority shareholder in Bamburi Cement, still receives its payout. But minority shareholders, who saw Savannah’s offer as the more financially viable option, will be reeling from this loss. 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 Kenya’s Ruto blasts critics over Adani deals Image Source: TechCabalKenya’s President William Ruto has blasted Kenyans who opposed the widely-publicised Jomo Kenyatta International Airport (JKIA) and energy deals with India’s Adani Group. The JKIA deal was supposed to allow Adani to renovate the airport and operate it for 30 years. The energy deal, with Kenya Electricity Transmission Company (KETRACO), would have also allowed the Indian conglomerate to build and operate Kenya’s power lines for 30 years. Both deals were worth a combined $2.6 billion. Kenyans strongly opposed the deals. They dragged the government to court and aviation workers grounded flights at the JKIA airport over fears of losing their jobs. President Ruto was forced to cancel the deals after the group chairman Gautam Adani’s indictment with the US Department of Justice (DOJ) on November 20, 2024, over allegations that he and seven other business executives bribed Indian government officials to secure $250 million solar contracts. In a video posted on YouTube by local media KTN, Ruto was critical about how the people reacted to news of the proposed Adani deals. “What gain do you get when you stop the building of an airport in your country? You have no idea how to build any airport or how it’s going to be,” said the president. President Ruto said
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Netflix denies market exit, as it “continues to invest in Nigerian content”
Despite reports from three publications suggesting Netflix is exiting the Nigerian market, the global streaming giant has firmly denied these claims, insisting it will continue to invest in Nigerian content. The speculation was fueled by comments from Nigerian filmmaker Kunle Afolayan, who spoke at the 2024 Zuma International Film Festival. Afolayan claimed Netflix canceled several films it had previously commissioned from unnamed filmmakers. “Three years ago, when we signed the three-film deal with Netflix, it was really exciting,” Afolayan said. The filmmaker went on to share that despite the stellar performance of those movies globally, Netflix seemed unimpressed by their returns in Nigeria. “Thank God we had shot seasons two and three [of Anikulapo] because all the other people that were commissioned with us at the same time were canceled.” However, Afolayan did not explicitly state that Netflix was exiting the Nigerian market, although his remarks will rightly drive speculation that the streaming platform is retreating from the country. This speculation is not entirely unfounded—Amazon Prime, another major streaming service, exited Nigeria in January 2024 one year after a huge marketing campaign and a slate of original Nigerian productions.. In a statement to TechCabal on Wednesday, a Netflix spokesperson reaffirmed the company’s commitment to Nigeria, saying, “We are not exiting Nigeria. We will continue to invest in Nigerian stories to delight our audience.” The spokesperson did not immediately address Afolayan’s claims about canceled projects. Still, Wednesday’s conversation and social media reactions highlight growing uncertainty around Netflix’s long-term strategy in Nigeria, where rising inflation and currency devaluation have pressured consumer spending power. Netflix has struggled to capture a large share of Nigeria’s competitive streaming market, which is dominated by the more affordable Showmax, a service operated by Multichoice. Netflix—currently priced at ₦7,000 ($4) per month—remains a luxury for many Nigerians, especially as inflation and naira devaluation erode purchasing power. With local players continuing to outperform in pricing, Netflix’s ability to maintain its position in the region could become increasingly challenging. Netflix’s relationship with Nigeria dates back to 2016 when it began licensing high-profile local films. Since 2016, it has poured over $23 million into Nigeria’s film industry, backing over 250 locally licensed titles, co-productions, and original commissions. Lionheart, The Wedding Party 2, and King of Boys are some of its most recognisable titles. In 2020, the streaming service signed multi-title deals with prominent Nigerian producers like Mo Abudu’s EbonyLife Productions. In 2021, it expanded its partnership with Kunle Afolayan, signing a deal for three films, including an adaptation of Sefi Atta’s Swallow. *Additional reporting by Faith Omoniyi.
Read MoreSavannah Clinker withdraws $197.2 million Bamburi bid after CEO arrest
Savannah Clinker has withdrawn its $197.2 million bid to acquire Bamburi Cement, clearing the path for Tanzania’s Amsons Group, which submitted a lower offer of $182 million. The withdrawal comes days after Savannah Clinker CEO Benson Ndeta was arrested and later released amid fraud allegations. On Wednesday, Savannah and the Capital Markets Authority (CMA) said the offer was withdrawn after the financier pulled out following Ndeta’s arrest. Ndeta was arrested over allegations that he fraudulently obtained a $35 million loan from Absa Bank Kenya eight years ago. “The withdrawal of the competing offer has been occasioned by the recent well-publicised arrest and indictment of the chairman and main shareholder of Savanna, which has led to the financier of the competing offer seeking additional due diligence, coupled with the decline by the CMA of a request made on December 2, 2024, to extend the offer period by 60 days to enable the competing offer to respond to any inquiries,” Savannah said. Regulatory disclosures revealed that Savannah Clinker was backed by Global Infrastructure Finance and Development Authority Inc (GIFDA), a non-profit infrastructure projects financier. On July 27, Holcim, a Swiss construction materials manufacturer and the largest shareholder in Bamburi approved the $182.8 million buyout offer from Amsons Group, but the offer from Savannah Clinker complicated the process. Savannah Clinker made its counteroffer one week after Holcim accepted the offer from Amsons. Savannah Clinker offered $0.54 per share, a 53.34% premium on share price, compared to Amsons’ $182.8 million bid. CMA said the only valid acquisition for Bamburi is from Amsons and shareholders who had accepted Savannah Clinker’s bid have until December 5, 2025, to “reconsider their decision.” “Shareholders who do not change their decision will be deemed to have declined the offer by Amsons,” CMA said. If regulators approve Amsons acquisition offer, the local cement manufacturer which controls about 30% of the market could delist from the Nairobi Securities Exchange (NSE).
Read MoreKenya’s parliament proposes 8-year timeline for banks to meet new capital requirements
A new proposal by Kenya’s parliament finance committee could extend the deadline for commercial banks to meet new capital requirements to eight years. In June 2024, Kenya’s Central Bank proposed a tenfold hike in minimum capital for banks with a three-year deadline. The committee said raising the minimum capital requirement from KES1 billion ($7.7 million) to KES10 billion ($77.8 million) within three years, as proposed in the Business (Amendment) Bill, 2024 would place smaller lenders under pressure. “While it is evident that an upward adjustment is necessary to align with the current economic and financial environment, the proposed timeline of three years in the bill for banks to meet the revised minimum core capital requirements is considered too short,” the committee said. “Extending this compliance period to eight years would provide a more practical and manageable timeframe for banks to raise the required capital, allowing them to strategise and implement measures that ensure sustainable compliance without destabilising their operations or the wider financial sector.” In June, the Central Bank of Kenya (CBK) said the new capital requirements will boost resilience to potential financial risks, such as increased cyber fraud threats and economic shocks. However, it could prove challenging for over half of the 39 licensed commercial banks. For these small and mid-size banks, mergers or raising capital from the stock markets are options they will consider. The CBK requires a minimum core capital-to-risk-weighted assets ratio of 10.5%, a total capital-to-risk-weighted assets ratio of 14.5%, and a core capital-to-deposits ratio of 8%. In June 2024, the regulator claimed that 12 commercial banks breached various capital requirements. The banks included state-owned Consolidated Bank, UBA Kenya, Housing Finance, Spire Bank, and Development Bank of Kenya. The KES 1 billion current requirement has been in force since 2012. This follows the capital adequacy requirement in South Africa ($90 million), Nigeria ($337.1 million), and Egypt ($104.7 million), the three biggest banking industries in Africa.The proposal in Parliament is the second attempt in a decade to review the capital threshold for lenders. A 2015 proposal to raise the requirement to $38.9 million (KES5 billion) was rejected by lawmakers.
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👨🏿🚀TechCabal Daily – Finance workers are feeling the squeeze
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy mid-week! Kenyans may be seeing the number of commercial banks in the country reduce after a new amendment bill aims to raise core capital requirements for banks to KES10 billion ($77 million) by 2027 from KES1 billion ($7.7 million). As many as 24 Kenyan banks could be forced to close if the proposed capital requirements are implemented. Those banks will have eight years to raise their minimum statutory capital to at least KES10 billion. In other news, Amazon is working on a new and improved version of Alexa AI that can customise responses to real-time user queries about the news. The new version of Alexa is powered by generative AI and will answer complex user queries, such as the status of polls during an election. Nigerian finance employees are unhappy with their salaries AltSchool Africa expands to Europe Access Bank’s remittance play AfDB approves $170 million loan for Egypt’s wind project World Wide Web 3 Opportunities Features 56% of finance employees in Nigeria are unhappy with their salaries Image Source: Zikoko Memes At the office, everybody pays homage to the finance department on salary days. Who would have thought that the same numbers game would leave finance employees feeling shortchanged? A new report from Duplo showed that 56% of these professionals in Nigeria are unhappy with their salaries. Only a small number, about 3%, are happy with their pay. About 38% of finance employees working across different industries reported that their salaries have not increased in this past year, adding more salt to their injury as rising inflation continues to erode their spending power. According to the report, these professionals value job perks that provide them with economic stability and other opportunities for skill and career development. Compensation and clear career growth structures are two valid reasons anybody wants to work. Compensation satisfaction is closely tied to employee retention. Those dissatisfied with their pay are more likely to look for new jobs. Mid-level professionals earning between ₦500,000 ($302) and ₦1,000,000 ($603) said they are likely to leave their jobs, either for better pay abroad or at more competitive local companies. Like the tech industry, the finance industry is a competitive field for talent with professionals trying to climb up the income ladder faster. Financial institutions like banks often review staff salaries to stay competitive and keep other banks from poaching their employees. In 2024, two Nigerian commercial banks, Union Bank of Nigeria and GTBank increased employee salaries to help them adjust to the country’s cost of living crisis. From the report, organisations that provide clear pay structures will have a better shot at retaining talent in the finance sector. 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 AltSchool Africa expands to Europe Image source: Google The answer to unlocking profitability and new revenue streams may sometimes be in new markets. This is why Nigerian edtech AltSchool Africa is expanding into Europe. AltSchool Africa launched in 2021 as a virtual platform for people to earn diplomas in engineering, data, and business analytics. Years later, the startup is adding a new layer to its offerings after receiving applications from companies across the world to help curate courses and build infrastructure for workforce development. The startup claims it has started conversations to offer such services to organizations in Malta where it will launch its first operations in Europe. AltSchool’s expansion into Europe comes with a new twist. The startup, whose primary business model in Africa has been focused on online learning, will set up campuses in Malta as it introduces a hybrid approach where learners can have in-person learning sessions with tutors. Racheal Onoja, the startup’s lead for market expansion, believes in taking the best of both sides by combining the traditional approach to learning and new-age ideas for a better learning experience. While AltSchool’s move to Europe is a no-brainer—Europe is its third-largest market, with learners from over 12 European countries—it will compete with well-established platforms like Bloomtech. CEO Adewale Yusuf believes the startup’s focus on community and personalised learning will set it apart. Dive into the Startup’s expansion plan here. 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! Banking Access Bank is building a payment rail to tap into Africa’s remittance market Image Source: ImgflipAccess Bank, the Nigerian tier-1 commercial bank, is building Access Africa, a payment product that will allow Access Bank account holders to send money across the continent. The bank has been building this payment rail since May 2024 when it announced a partnership with Mastercard. The product will address a gap in cross-border finance that allows intra-trade in Africa. What works for Access Bank with a remittance product is its scale. The lender has never been shy about its global ambitions and expanding into wide markets. That ambition has led it to 22 African countries where it now operates, with 19 as key regions for trade and commerce. The product will compete with the Pan-African Payment and Settlement System (PAPSS) designed to facilitate trade across Africa. It will also challenge alternative solutions like stablecoin remittance providers, often seen as a cheaper option for cross-border payments. Access Bank is betting on its 60 million customer base. It could introduce the remittance payment rail into its mobile banking app with over 5 million downloads. The bank also plans to partner with fintechs to drive adoption. Access Bank will not be the first Nigerian commercial bank
Read MoreAccess Bank is building a payment rail to connect Africa’s remittance market
Access Bank, a tier-1 Nigerian commercial bank present in 22 countries, is building a payment rail, Access Africa, to allow people and businesses to send money across the continent through Access bank accounts. “It’s our proprietary rail that connects Africa,” Rob Giles, Access Bank’s senior retail banking advisor, said at a media parley on November 22. Access Bank will use its presence in 16 key African markets including Kenya, South Africa, and Nigeria, to connect its African customers—the largest on the continent—to major international trade hubs through its physical offices in Asia and Europe and facilitate global trade. The bank is also partnering with “as many fintechs as possible” that would use the payment rail to send money across borders. “We partnered with other remittance companies to [enable transfers] into a mobile wallet in Kenya, for example, or to facilitate transfers to and from China,” Giles said. Access Africa will allow the bank to compete in the sub-Saharan African remittance market valued at $54 billion in 2023. Ecobank, a pan-African bank present in 33 African countries, also allows its customers to send money to each other across these countries through Rapidtransfer, its payment rail. Access Bank will face stiff competition from stablecoins, which offer instant transfer, remittance infrastructure startups like Zone and Keyrails, and the Pan-African Payment and Settlement System (PAPSS), an infrastructure developed by the African Export-Import Bank which enables instant cross-border payments in local currencies across Africa. The bank hopes its presence in 19 African countries and partnerships with fintechs will help it fend off competitors. “We’re [using] the Access Africa corridor to link countries [the bank is present in],” Giles said.
Read More56% of finance employees in Nigeria are dissatisfied with their salaries, says Duplo report
56% of finance employees in Nigeria are unhappy with their salaries due to reduced spending power, according to the 2024 Salary Report by Duplo, a Nigerian B2B payment automation startup. Only 3% say they’re satisfied, down from the 14.8% who said they were happy with their compensation in 2023. The survey gathered responses from 593 finance professionals across finance, technology, manufacturing, oil and gas, consumer goods, real estate, education, and agriculture. Respondents came from large and small organisations with job titles ranging from interns to accountants, chief financial officers, and financial controllers. 90.8% of these professionals said Nigeria’s high inflation and foreign exchange (FX) volatility affected their earnings. Nigerian workers are grappling with a high cost of living as naira devaluation and rising inflation have put their earnings under pressure, forcing employers to review salaries. While commercial banks have raised staff salaries in response to the macroeconomic condition, 37.7% of the finance employees surveyed reported no salary increase in the past year. Attractive compensation packages are crucial to help companies stay competitive in the finance industry. Job dissatisfaction is most pronounced among professionals earning less than ₦250,000 monthly. One-third of them say they don’t feel comfortable negotiating higher salaries. Meanwhile, only 7.2% of finance professionals earn over ₦1 million monthly, and professionals within this income band are the most confident negotiating salaries, reflecting a significant income gap in the sector. This frustration is fuelling talent migration. The report shows that 22.8% of respondents have relocated in the last five years, pursuing better pay and stability abroad. Economic instability, cited by 41.4%, remains the top retention challenge, followed by migration trends (34.5%) and shifting employee expectations (31.7%). Despite the industry’s talent turnover rate, the report shows that finance professionals increasingly value more than just salaries—they want career growth, work-life balance, and transparent pay structures. Organisations offering inflation-adjusted pay, professional development, and benefits that match these needs can retain top talent. “Organisations can explore innovative benefits such as flexible work arrangements, performance-based incentives, and adequate technology solutions to retain and get the best from top talent without overburdening their budgets,” said Yele Oyekola, Duplo CEO. The report also shows a trend in upskilling among financial professionals. Over 79% of finance professionals have pursued training in the last five years, focusing on skills like digital transformation, fintech, cybersecurity, compliance, and data analytics. However, even with better skills, compensation dissatisfaction persists when salaries don’t reflect economic realities. Retaining skilled professionals is crucial for organisational growth and the sector’s long-term stability. To thrive, businesses have the option of rethinking their compensation strategies and offering growth opportunities that meet employee expectations. “CFOs and finance leaders need to prioritise transparent and inflation-adjusted compensation packages to mitigate the current economic pressures and give themselves the best chance of retaining talent,” said Oyekola.
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Next Wave: Mergers and acquisitions require more than financial synergy
Next Wave: Thinking about Jumia and the future of ecommerce Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner First published 01 Dec 2024 Mergers and acquisitions are notoriously complex, high-risk ventures that often take months or years to finalise. Beyond the obvious financial intricacies, what many don’t realise is how important non-financial factors—particularly cultural alignment—are to their success. Deals aren’t just about combining balance sheets since they involve uniting people, processes, and philosophies. A mismatch in company cultures, values, or work ethics can derail even the most promising merge which can lead to employee dissatisfaction, high turnover, and operational inefficiencies. Due diligence goes far beyond financial audits. It includes a deep dive into organisational behaviours, decision-making styles, and leadership dynamics to evaluate whether the companies can function cohesively post-merger. For example, a fast-moving tech firm may struggle to integrate with a more traditional, hierarchical corporation, even if the numbers look promising. These differences can manifest in subtle ways, such as clashing communication styles or divergent attitudes towards innovation and risk. Next Wave continues after this ad. Join us at the Bluechip AI & Data Summit 2024 on December 2nd in Lagos! Explore the future of Africa through AI and data-driven solutions. Connect with industry leaders, attend expert panels, and discover innovations reshaping finance, healthcare, and beyond. Don’t miss this opportunity. JOIN US Moreover, mergers and acquisitions transactions are often accompanied by intense scrutiny from regulators, stakeholders, and the public. Missteps in integrating workforce policies, handling redundancies, or addressing supply chain overlaps can invite legal challenges or reputational damage. The most successful mergers don’t just achieve financial synergy—they also harmonise human and cultural elements. The structure of these deals can vary widely, with cash, stock, or a combination used as payment. Their success hinges on meticulous strategic planning and practical integration. As Chris Roush notes in his 2004 book Show Me The Money, “…many of them make acquisitions under the belief that a larger company can spread its expenses around more efficiently.” Yet, this assumption often oversimplifies the complexities of mergers and acquisitions. Financial synergy is only one piece of the puzzle; the transaction must also account for operational, cultural, and strategic compatibility to truly succeed. This is also a key departure from the 1980s when mergers and acquisitions were frequently criticised as destroyers of wealth, driven by aggressive takeovers and asset stripping. Modern M&A strategies demand a more nuanced approach that reconise that value creation often hinges on factors like retaining talent, taking advantage of technology, and integrating supply chains. Today’s deals are about building sustainable growth, not just cutting costs or increasing market share on paper. Partner Content: Read: Smile ID Releases Nigeria’s First Ever eKYC Report, Hits 200M Identity Verification Checks here. Also, today’s deals operate on a much larger scale and with higher stakes. While often justified as a means to expand market reach, the underlying motivations and outcomes can sometimes be, for lack of a better word, “undermined’. Strategic imperatives typically drive merger and acquisition activity, as companies or startups seek to dominate their market, leverage new technologies, or expand into new geographic territories. Achieving these goals is not easy. For instance, Rise, a Nigerian investment startup, recently acquired Hisa to strengthen its reach in the East African market. Rather than expanding its services locally—which also entails a number of legal hurdles, Rise chose to acquire a business in Kenya to align with its Africa-wide ambitions. 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. Yet, economic downturns can sometimes push merger and acquisition deals as struggling companies become attractive targets. For instance, Afreximbank has offred $40 million to Fidelity Bank for Union Bank UK’s acquisition and recapitalisation. Other merger and acquisition factors are sometimes unseen but make sense in the long run and should be considered more keenly for future transactions. First, the transactions should focus more on how marketing can minimise the negative consequences of merger and acquisition activity, such as customer switching or loss of consumer loyalty. Next Wave continues after this ad. Energy Trading in Africa has surged in recent times. Themes like Rising global prices, Deregulation, and Clean energy – are creating one of Africa’s largest opportunities in trade finance. As a tech leader, we are shaping this transformation. Our latest report explores opportunities and innovative models for financiers and energy dealers. Find more here! It is also important to look into both the pre- and post-merger stages; the scarcity of assessments connecting these stages is concerning, especially since linking them could positively impact merger and acquisition performance, generally and within specific industry contexts. Examining the relationships between critical success factors in the pre and post-merger stages can help companies better understand the overall merger and acquisition performance. Lastly, there are marketing-related reasons why firms engage in mergers and acquisitions; however, these reasons and the effects the deals have on both the companies involved and their consumer and supplier portfolios are hardly explored. Kenn Abuya 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
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