- August 1 2024
As Chowdeck dominates food delivery, its ad business is growing
The appeal of advertising on Chowdeck, Nigeria’s most popular food delivery app, continues growing as its business grows. Chowdeck now claims to have 600,000 users, according to marketing documents seen by TechCabal. It also claims to be the country’s most downloaded food delivery app. Chowdeck currently delivers around 20,000 orders daily and is looking to more than double that number before the year ends, said one person with knowledge of the business. “[Chowdeck] will expand to other states in the South-South, safe regions in the North and the South-East,” that person said. If Chowdeck hits its ambitious daily order target, it will make its ad business, even more popular. Chowdeck declined to comment for this story. Guaranty Trust, one of Nigeria’s top banks, advertised its share offering on Chowdeck’s app this week on a banner that has previously displayed ads for three other prominent brands. The food delivery company charges ₦250,000 per week for those ads, said one person familiar with the pricing. “[The company] can put a lot of ads up there,” said one person familiar with Chowdeck’s advertising. If four ads are on the banner, the company can earn ₦3 million weekly without incurring additional operational expenses. The company is also working on personalising ads; “the adverts someone in Lagos will see are not the same someone in [Abuja] will see.” Those slide–show banners aren’t Chowdeck’s only ad offering. It also offers push notifications ads that cost ₦250,000 per notification and ads on its famous brown delivery bags that cost ₦3 million for 10,000 bags, according to a rate card seen by TechCabal. It is unclear what the sales team, led by co-founder Kennedy Offor, has set as the revenue target for those ads. Finding advertisers is now part of the KPIs of the sales team, but they have not “aggressively started selling ads.” If Chowdeck expands its ad business, it will be a boon to a startup that is also profitable after delivery, per a 2023 report.
Read More- August 1 2024
Nigerian banks ask employees to work remotely, “maintain situational awareness” as protests begin
After weeks of government rhetoric advising against a cost-of-living protest, Nigerian banks are choosing caution, telling employees to work from home on Thursday, the first day of the protest. At least five commercial banks told employees at their head office and branches considered to be in volatile areas to stay home, according to several emails seen by TechCabal. At least two top banks did not ask employees to work remotely, telling them to “dress down” and “avoid protest routes.” Three employees at those banks said several teams still chose to work from home, with team leads citing safety concerns. “All colleagues in non-essential roles are encouraged to prioritise working remotely from the nearest branch or hub,” said an excerpt from an email communication from a top Nigerian bank. “Colleagues in essential roles working on-site are required to maintain situational awareness and regularly engage supervisors or line managers to provide or receive important updates as applicable.” Nigeria’s commercial banks are some of the country’s most prominent businesses, valued at trillions of naira. In the 2020 protest to end police brutality, the banks were widely criticised for allegedly freezing bank accounts related to protest organisers. When the protests were infiltrated by thugs, some Nigerian banks were affected by the violence. It has influenced how the banks react to unpredictable situations. Mystery buyer LH Telecoms takes over Nigeria’s troubled 9mobile The Lagos state government is also choosing caution, telling people not to protest and surrounding many parts of the city with noticeable police presence. Two people reported significant military presence on the third mainland bridge and several other areas in the business district of Victoria Island. At least four state governments have obtained court orders limiting protesters to certain parts of the city. The legality of those court orders has been questioned. As Nigeria faces its worst economic crisis in a decade, Nigerians are feeling the pinch, with headline and food inflation at record levels. Economic reforms, including a much-needed removal of fuel subsidies and a relaxed FX policy regime, have not delivered the quick wins the government hoped for.
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- August 1 2024
Where to follow the 2024 EndBadGovernance Nigeria protests live
The 2024 EndBadGovernance protests in Nigeria have drawn significant attention both locally and globally. As citizens demand accountability and reforms, staying informed in real-time is vital. Here are platforms and channels that are highly likely to give live video and textual coverage of the protests as it ensues nationwide from August 1st. 1. YouTube for the 2024 EndBadGovernance Nigeria protests Channels to follow: Arise News, Channels Television, TechCabal and Sahara Reporters. Details: These channels are known to provide comprehensive live coverage, including on-the-ground reports, interviews with key figures, and analysis of the ongoing protests. Subscribing to these channels will ensure you receive timely notifications as the 2024 EndBadGovernance Nigeria protests begin. 2. Facebook for the 2024 EndBadGovernance Nigeria Protests Pages to follow: Arise TV, Channels, TechCabal, Zikoko, Premium Times, Pulse Nigeria, FIJ Nigeria, and The Guardian Nigeria, Details: Facebook allows live streams of events, enabling followers to comment and share real-time updates. These media outlets are known for their detailed and timely reporting. So you will find them most likely providing live coverage of the 2024 EndBadGovernanceinNigeria protests. 3. Twitter for the 2024 EndBadGovernance Nigeria Protests Accounts to follow: @AriseTV, @PIDOMNIGERIA @Firstladyship, @fijnigeria, @FS_Yusuf_ @Ruffydfire, @SaharaReporters, @TechCabal, @EiENigeria, @chiditweets042, and @WestAfricaweek. You can also follow hashtags like #EndBadGovernaceProtest #EndBadGovernaceProtestinNigeria #EndBadGovernaceProtests #August1st2024 #August1Protests to find relevant updates from covering accounts. Details: Many organisations and activists use Twitter to broadcast events. With analysis of the build up towards 2024 EndBadGovernanceinNigeria nationwide protests beginning on August 1st, these curated accounts will keep you abreast with live streams, immediate reactions from different protest locations, and other protest perspectives that may interest you. 4. Instagram for the 2024 EndBadGovernanceinNigeria protests Accounts to follow: @arisetv @channelstv @instablog9ja, @Mufasatundeednut @officialhiptv, and @lindaikejiblogofficial Details: Instagram influencers and media outlets often use Instagram to cover events, using the live and posting features. These accounts provide a mix of live updates, behind-the-scenes footage, and interactive sessions with followers. 5. TikTok for the 2024 EndBadGovernanceinNigeria Protests TikTok creators often provide live coverage with a mix of personal commentary and interactions with their audience. Simply use the hashtag as mentioned in number 3 for you to see accounts providing updates on the protests. Final thoughts on following the 2024 EndBadGovernance Nigeria Protests live Staying updated with the 2024 EndBadGovernanceinNigeria protests is essential for understanding the socio-political climate and supporting informed and decent activism. By following these platforms and channels, you can access real-time video and textual coverage and participate in the conversation, no matter where you are in the world.
Read More- August 1 2024
Crypto exchanges spared from taxes as Kenya court nullifies 2023 Finance Bill
Crypto exchanges operating in Kenya will no longer pay Digital Asset Tax (DAT) introduced in the Finance Act 2023. The 3% tax on revenue from trading cryptocurrency and other digital assets was implemented in September 2023. But the Kenyan court of appeal declared the tax unconstitutional on Wednesday. DAT was imposed on crypto exchanges such as Kotani Pay and AZA Finance (formerly BitPesa). The law also directed that crypto taxes be remitted within five working days, along with a tax return detailing deductions and other required information. None of the local cryptocurrency exchange platforms had remitted the taxes to the Kenya Revenue Authority (KRA) before Wednesday’s ruling that declared the bill illegal, a crypto executive told TechCabal on condition of anonymity. However, the companies had received notices to pay the tax weeks before the ruling. DAT aimed to tax Kenya’s digital asset market, which ranks second behind Nigeria in crypto-related activities. Over 350,000 Kenyans also registered for the cryptocurrency project Worldcoin before the company’s operations were suspended in August 2023. Given crypto’s volatile nature, a tax based on transaction gains or income, accounting for potential costs and losses, could have been more suitable, said an executive at the Blockchain Association of Kenya (BAK). In September 2023, BAK went to court to block the new crypto taxes. However, the case is now invalid, according to Kakai. Other crypto experts argued that the Kenyan government could have aligned the DAT rate with the existing 1.5% Digital Service Tax (DST), which was introduced in the 2020 Finance Act. DST is a 1.5% tax on income from online marketplace services in Kenya. The short tax remittance deadline was also seen as a burden to taxpayers with increased compliance costs. Three court of appeal judges ruled that sections introduced to amend the Income Tax Act, Value Added Tax Act, Excise Duty Act, Retirement Benefits Act, and Export Processing Zones Act in the 2023 Finance Bill were unconstitutional because they lacked fresh public participation.
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- August 1 2024
TechCabal Daily – Helios raises $200 million for Africa-focused climate fund
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy new month Today, Nigerians are kickstarting a ten-day protest against hunger and food inflation. A loaf of sliced bread that used to cost ₦700 a year ago now costs ₦1,900. As living costs soar, Nigerians are seeking creative alternatives to staple—like this video on watermelon pepper stew. The Tinubu-led government has insisted that the protests are premature and has tried to ensure the protests don’t happen. If you’re going out there today, stay safe! In today’s edition MTN Nigeria suffers $312.4 million loss Inside LH Telecoms’ takeover of 9mobile Helios raises $200 million for Africa-focused climate fund Ogun state plans for battery swap stations The World Wide Web3 Events Telco MTN Nigeria suffers $312.4 million loss MTN Nigeria may be asking investors and stakeholders to take their patience further after it posted another Q2 2024 loss. The company has now lost ₦519 billion ($312.4 million) in H1 2024—six times more than the ₦85 billion ($51.1 million) it lost in H1 2023. MTN’s financial woes are largely due to Nigeria’s unstable currency, which has driven operating costs up. The telco has significant dollar-denominated costs, including its tower contract with IHS Towers. While revenue grew to ₦1.53 trillion ($921 million), costs also increased. The cost of sales jumped 33% to ₦252 billion ($151.7 million), with operating expenses hitting ₦738 billion ($444.3 million). To reduce its losses, MTN is reducing its dollar-based costs by partnering with tower company, ATC Nigeria, to supply 2,500 towers in 2025 following its scuffle with IHS towers—a deal believed to be valued in naira. Additionally, MTN is joining other telcos seeking regulatory approval for price increases in tariff plans in hopes of buffering the revenue base. Despite its operating financial woes, MTN’s customer base continues to grow. The company now has 79.4 million mobile subscribers and 5.5 million mobile money users. Data revenue (₦727 billion) has overtaken voice revenue (₦632 billion), as customers embrace cheaper internet calls over voice plans. One hour on a WhatsApp call, for example, takes just 300MB, which costs about ₦200, but one hour on a voice call costs twice as much—and the allure is particularly in making international calls at cheap data rates. Read Moniepoint’s 2024 Informal Economy Report 89% of businesses in the informal economy pay levies and market fees. The informal economy is typically described as untaxed, but is that true? Click here to find out more. Telco Inside LH Telecoms’ takeover of 9mobile Remember the iconic “0809ja for life” advert featuring singer Banky W that rocked Nigeria’s advertising scene in 2008? With that ad, Etisalat entered the Nigerian telecoms market with flashy adverts, strong service quality, and the “0809uchoose” campaign that allowed Nigerians to choose their preferred mobile number. A reversal of fortunes was to come after its parent company, Etisalat UAE, could not pay off a $1.2 billion loan it owed to banks in 2017. Etisalat UAE pulled out of the Nigerian market. In 2018, the company was acquired by Teleology Nigeria Limited, and Etisalat became 9mobile. The move didn’t stop the telco from losing 8 million subscribers in the years that followed. Now, powers have changed hands again at 9mobile. The company was just acquired by mystery firm LH Telecommunications Limited. Talks for this deal began last year and were finalised on July 26, 2024, after the Nigerian Communications Commission’s (NCC) approval. While the takeover was marked with internal conflicts, newly-appointed board chairman and founder of Tak Group of Companies, Thomas Etuh quickly proved that he meant business as 9mobile grew by 400,000 subscribers in the second half of last year. The struggling telco also appointed CEO Obafemi Banigbe who now has the tough job of restoring the company to its glory days. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Funding Helios raises $200 million for Africa-focused climate fund Despite the funding downturn, climate-led startups have received substantial investments. In 2023, these startups raised one-third of the total investment. This year, climate tech startups are currently leading African startup funding, with $325 million of the $1 billion raised so far. Despite climate tech leading startup funding, Africa still lags behind other continents in terms of global energy investment. The continent only receives 3% of global energy investment. Helios Investment Partners LLP, the biggest Africa-focused private investment plan taking a step to bulk that trend. The firm has partnered with Gaia Fund Managers to raise an initial $200 million to create the biggest Africa-focused climate fund. The fund has a target of $600 million. The fund will invest in renewable energy and drought-resistant agriculture on the continent. The fund will focus on investments in clean energy, sustainable agriculture, eco-friendly transportation, resource recovery, and innovative technologies that accelerate the transition to a low-carbon economy. Ghana’s SolarTaxi, Zimbabwe’s NeedEnergy and Kenya’s Octavia Carbon are a few startups on the continent that fit Helios’ bill. With over 600 million Africans still without electricity and billions more relying on harmful cooking methods, the need for sustainable energy solutions is more urgent than ever. This fund aims to invest in businesses that can help the continent transition to a clean energy future. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog → Mobility Ogun state plans for battery swap stations “Electric vehicle or Combustion engine?” I’d wager that will be the next top debate long after the Messi vs Ronaldo tyres out. While you can still hear the rumble of traditional engines across the street, a quiet electric revolution is brewing. And
Read More- July 31 2024
Jumia hires ex-PalmPay manager, Anthony Mbagwu, to head its Nigerian fintech subsidiary
E-commerce giant Jumia appointed Anthony Mbagwu as the managing director of its Nigerian fintech arm, JumiaPay. Mbagwu joins JumiaPay from rival fintech PalmPay where he was a senior business development and partnership manager for ten months. Mbagwu has over 15 years of experience in the financial services sector. He was previously head of business support at Unified Payments, a prominent payment infrastructure provider, and head of service operations at Access Bank. According to Jumia’s 2023 filing, PalmPay is one of JumiaPay’s biggest competitors. Jumia did not immediately respond to requests for comments JumiaPay is integrated as a payment method at the checkout of online platforms like Jumia—it processed about 39.5% of Jumia orders in 2023. It also has a standalone app that lets users make bank transfers, bill payments, loans, and merchant payments. One person familiar with the company said JumiaPay’s biggest customer is its parent company. JumiaPay processed $192 million in payments for 8.4 million orders in 2023, a figure that pales compared to the $5 billion monthly transactions that Palmpay reported in 2023. Mbagwu will report to Sunil Natraj, the CEO of Jumia Nigeria. Mbagwu’s appointment comes as Jumia intensifies its focus on profitability. The company has laid off staff and shut down its food delivery arm to save costs and increase revenue which stood at $186.4 million at the end of 2023, per its SEC filings. Some of those moves have resonated with investors with its share price rallying to $12.16 at the time of writing this article, nearly four times what it began the year.
Read More- July 31 2024
Mystery buyer LH Telecoms takes over Nigeria’s troubled 9mobile
Seven years after its majority owner, Etisalat UAE, divested from Nigeria, leaving its former subsidiary with $1.2 billion in debt, 9Mobile has a new owner, a new board, and a chance of a turnaround. On July 26, a statement from 9Mobile said the Nigerian Communications Commission (NCC) had approved the acquisition of a telecom operator by LH Telecommunications Limited, a little-known Nigerian company registered in April 2023 and led by Thomas Etuh, the founder of the Tak Group of Companies. While the NCC hasn’t publicly commented on the deal, an NCC official who asked not to be named said the commission was aware of the acquisition, which has been in the works since 2023. One person knowledgeable about the talks said the acquisition took a year because of corporate infighting after LH took control of 9Mobile in June 2023. The deal represents the latest attempt to restart growth at 9Mobile, the sickman of the telecom industry. Founded in 2009, 9Mobile started operations as a subsidiary of Emirati-state-owned telecom Etisalat. The company quickly racked up new subscribers as tens of millions of Nigerians bought their first mobile phones and SIM cards during the early 2010s. Government support to drive broadband adoption and a booming economy buoyed by a commodities boom put 9Mobile as a promising contender in Nigeria’s fast-growing mobile market. But over the last decade, Nigeria has witnessed a reversal in economic fortunes, accelerating inflation and currency devaluation. 9Mobile was impacted due to its significant dollar debt exposure. In 2017, Etisalat divested from the business while a team from the Central Bank of Nigeria and NCC stepped in to find a new owner. A sale was concluded in 2018, and 9Mobile hired a new CEO, Adrian Woods. Yet, 9Mobile’s struggles continued. While rival telcos have gained tens of millions of new subscribers, 9Mobile has lost 11.6 million over the decade. The business is struggling to grow, and its reputation among consumers for good quality of service is in tatters as network outages, even in urban locations, have become frequent. LH’s acquisition offers a new lifeline to the struggling business. It hands control of 9Mobile, Nigeria’s fourth largest telecom company, to LH, which one publication first linked to LH Telecoms UK, a small UK business that reported 11,000 pounds cash on its balance sheet as of January 2023. LH Telecoms UK did not respond to emails requesting comments. 9mobile’s new owners, LH Telecoms, did not immediately respond to a request for comments. Following the deal, LH has assembled a competent board of executives, including two highly influential TY Danjuma family members. Between June and November 2023, when Thomas Etuh assumed the position of chairman, the company saw a consistent growth of over 400,000 in subscriber base due to funding released during the period, said one person familiar with the business. Yet, the acquisition is not without controversy. The takeover by LH Telecommunication was opposed by the former chairman Nasri Ade Bayero claiming the process of naming the new board breached corporate governance ethics, according to one publication and another person with knowledge of the matter. “The infighting cost 9Mobile a lot. It led to Thomas Etuh freezing funding within the company, which affected their subscriber numbers between December 2023 and January 2024,” the same person claimed. The person said the funding freeze was to force the regulator to approve a sale. The ascension of Etuh as 9Mobile’s new Chairman will draw questions due to his professional track record and reputation as one of the country’s top debtors. He has an outstanding debt balance of ₦11.58 billion owed by his company Tak Continental Limited, according to Asset Management Corporation of Nigeria (AMCON), the federal agency created after the 2008 financial crisis to handle debt restructuring of shaky businesses. Etuh previously served as the chairman of the board of directors of Unity Bank Plc, Veritas Kapital Assurance Plc, and Lighthouse Capital Limited. He is also the Notore Chemicals Industries Plc board chairman and Jennifer Etuh Foundation (JEF). Notore Chemicals, a company listed on the Nigeria Exchange (NGX), recorded a 33% revenue loss year-on-year from ₦32.31 billion in 2022 to ₦21.55 billion in 2023 due to the naira devaluation. Veritas Kapital Assurance, also listed on the NGX, recorded a revenue increase of 41% from ₦5 million in 2022 to ₦7.1 million in 2023.
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- July 31 2024
Stranded Dollars: Exploring dollar underutilisation amid Africa’s shortage
This article was contributed to TechCabal by Vladimir Fomene. As African nations grapple with a persistent shortage of U.S. dollars, a paradoxical situation has emerged: significant amounts of dollars remain untapped and underutilised. One reason for underutilisation stems from regulatory restrictions preventing financial institutions from leveraging dollar stablecoins—cryptocurrency tokens pegged to the U.S. dollar. While these digital assets could ease liquidity pressures and facilitate smoother cross-border transactions, current policies leave them stranded on the sidelines. This article aims to shed light on the extent of dollar underutilisation in major African economies such as Kenya and Nigeria, examining the regulatory barriers causing this phenomenon and quantifying the surprising volume of untapped dollar liquidity present in these markets despite the ongoing shortage. The U.S. dollar reigns supreme in global commerce, serving as the primary medium of exchange for international trade. While currencies like the Euro and Yen play significant roles, they pale compared to the dollar’s dominance. This preeminence has elevated the U.S. dollar to the world’s de facto trade currency status. Consequently, nations worldwide, including those in Africa, must maintain substantial dollar reserves. These reserves serve multiple critical functions: facilitating the purchase of goods and services on the international market, enabling cross-border money transfers, and meeting foreign debt obligations. This dollar-centric system underscores the currency’s pivotal role in shaping global economic interactions and highlights the challenges faced by countries with limited access to U.S. currency. The scarcity of U.S. dollars in many African countries stems from a fundamental imbalance: dollar outflows exceed inflows. This is driven primarily by a trade deficit, where the value of imported goods and services surpasses that of exports. However, the picture is more complex. Remittances from Africans living abroad ($100 billion in 2022) and foreign direct investments ($45 billion in 2022) provide a crucial source of dollar income, while debt repayments ($112.3 billion in 2022) and repatriation of profits by foreign investors drain dollar reserves. Africa’s growing population will further strain this situation, as increasing imports puts pressure on a system already tilted towards dollar outflows. The challenge lies in narrowing this gap and building a more sustainable dollar inflow. This problem also reduces the actual value of local currencies as people are ready to pay a premium to get dollars because of the shortage. This affects people saving their money in these local currencies and businesses carrying out international trade who now have to pay more in local currency to get the dollar. Benjamin Fernandes has a fantastic article about the dollar shortage crisis, titled “Is Africa’s dollar shortage ending anytime soon?”. Here are some examples from some African countries demonstrating how the dollar shortage problem affected these economies. Fly Emirates suspended flights to/from Nigeria because of failures from the Central Bank of Nigeria to repatriate profit in dollars made by Emirates in the country. Nigeria wants to take a $2.25 billion IMF loan and issue diaspora bonds to attract foreign reserves. In 2023, Kenyan fuel and oil importers couldn’t import these commodities because of a dollar shortage in the Kenyan market. This resulted in a scarcity of fuel, which increased fuel prices. Energy is the foundation of every economy. If the price of energy goes up, other commodities will follow. The Bank of Tanzania (BoT) has pledged to redress the dollar shortage in 2024, saying it has implemented measures to control the situation. The measures include cautioning exporters to ensure export proceeds are remitted within 90 days after trading to guarantee a sufficient stock of dollars in circulation. Like many African countries, Ethiopia relies heavily on imports to sustain its medical supply chain. After years of grappling with a chronic foreign currency deficit, the government secured a $3.4 billion loan from the IMF after floating its currency as part of the reforms to ease foreign currency shortages. Dollar underutilisation Beyond traditional dollar notes and digital dollars, African economies are witnessing the emergence of another form of dollar-denominated assets: stablecoins, more aptly termed “crypto dollars” in this context. Nic Carter and Matt Walsh of Castle Island Ventures define crypto dollars as cryptographic tokens circulating on public blockchains designed to mirror the value of sovereign currencies. These digital assets come in various forms, each employing unique mechanisms to maintain their peg to the U.S. dollar. Our focus is on fully-backed crypto dollars, directly convertible to dollar notes or digital dollars. The issuers of these tokens maintain their dollar peg through a robust reserve system. For every crypto dollar token in circulation, the issuer holds an equivalent amount of U.S. dollars or highly liquid dollar-denominated assets, such as U.S. Treasury bills. These reserves are typically held in regulated financial institutions, ensuring a 1:1 backing ratio. This structure bridges the traditional financial system and the burgeoning world of cryptocurrencies, offering new avenues for dollar liquidity in African markets. Crypto dollars represent a revolutionary currency that operates on novel infrastructure: open blockchain networks. Unlike traditional payment systems, these networks function ceaselessly, without scheduled downtime or maintenance windows, ensuring 24/7 availability year-round. This constant operability and their open-source nature provide a fertile ground for innovation, allowing developers to build and deploy financial products and services easily. Akin to physical cash, crypto dollars are bearer assets, with ownership determined solely by possessing digital tokens. However, they surpass cash in one crucial aspect: transparency. The blockchain’s inherent structure enables full auditability, allowing regulators and users to verify in real-time that issuers maintain adequate reserves to back their circulating tokens. This combination of continuous availability, programmability, bearer status, and transparency positions crypto dollars as a transformative tool which African innovators can use to address some of the payment and dollar shortage issues we face. Crypto dollar liquidity in African markets According to a report on Cryptocurrency adoption in sub-Saharan Africa published by Chain Analysis in 2023, stablecoins are estimated to account for approximately 50% of the activity on centralised cryptocurrency platforms like exchanges. This 50% is estimated to be equivalent to 30 billion U.S. dollars. It is important to highlight that these
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- July 31 2024
As digital banking grows, Kenyan banks continue to ditch costly ATMs
Kenyan banks spend over $900 monthly to run a single ATM, and the bill grows for leading commercial banks with hundreds of ATMs spread across the country. For years, automated teller machines (ATMs) were the go-to option for customers trying to avoid long queues in the banking halls. But not anymore, thanks to the growth in digital banking options like mobile apps and agent banking. It has allowed traditional banks to reduce their investment in ATMs for the fifth consecutive year. Banks closed 77 ATMs between January and December 2023, bringing the total count to 2,282, according to data from the Central Bank of Kenya (CBK). This is the lowest number of ATMs recorded in the country in half a decade, a notable drop from the peak of 2,573 ATMs recorded in 2019. The shift is due to the growing popularity of digital banking channels. Starting with Equity Bank, Kenya’s largest bank by market capitalisation, all local banks have adopted digital channels. Digital banking has grown in Kenya between 2020 and 2024. The value of digital payments in the country rose from $2.63 billion in 2019 to $7.15 billion in 2023 and is projected to reach $8.58 billion in 2024. Digital banking could also reach a net interest income of $255 million by the end of 2024. Mobile banking was the most used channel, jumping from 52% in 2020 to nearly 68% by March 2024. Internet banking also grew, but at a slower pace, reaching around 23% in March 2024, reflecting increased internet access and device ownership. ATMs are expensive Kenyan banks incur a monthly cost of at least KES 117,000 ($906) per ATM, and lenders like Kenya Commercial Bank, which has 380 ATMs nationwide, could spend over KES 44.4 million ($344,000) on maintenance. “It is costly to run an ATM terminal, so banks tend to save this cost by closing ATMs with less activity,” a bank executive told TechCabal. “These costs are in the form of topping up ATM channels with cash daily and manning the facility. This is not the case for digital transactions.” In 2023, agency banking grew in Kenya, with 16 commercial banks and five microfinance banks (MFBs) enlisting 87,531 and 677 bank agents, respectively. More than 90% of the bank agents were working for Equity Bank (40,211), KCB (24,055), and Cooperative Bank (15,519), indicating the popularity of the service, especially in rural parts of the country. The demand for cashless transactions is also evident in mobile money, whose transactions in Kenya grew to KES 788 billion ($6.1 billion) in December 2023. With 38.7 million users, mobile money penetration hit 75%. The value of money moved through these platforms jumped from KES 7.8 trillion ($60 billion) in the year to June 2023. The COVID-19 pandemic accelerated mobile payment adoption, and many users continued using the channel after the CBK re-introduced transaction costs in early 2023.
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- July 31 2024
TASUED Post UTME 2024: All application details
The Tai Solarin University of Education (TASUED) announces the commencement of its Post UTME screening exercise for the 2024/2025 academic session. Below are the essential details and guidelines for prospective candidates. Eligibility criteria for TASUED Post UTME 2024 UTME candidates: Candidates who selected Tai Solarin University of Education as their first-choice institution. Must have scored a minimum of 140 in the 2024 UTME. Only candidates listed on the University profile on the JAMB CAPS will be considered. Direct Entry candidates: Must possess A level/OND/HND/NCE/JUPEB/IJMB qualifications. Should have chosen TASUED as their first-choice institution. Must have obtained the 2024 Direct Entry JAMB form. Admission requirements Candidates must meet specific ‘O’ level requirements for their chosen programmes. Refer to the University Degree Brochure for detailed programme requirements before completing the online application form. Registration dates The sale of the online UTME/DE form starts on Monday, 29th July 2024. The registration closes on Friday, 23rd August 2024. Important notice Providing incorrect or false information will result in disqualification. Screening exercise schedule for TASUED Post UTME 2024 Dates: The TASUED P.UTME 2024 screening exercise will be conducted from Tuesday, 27th to Friday, 29th August 2024. Location: Main Campus of Tai Solarin University of Education. Mandatory requirements: – Participation in the TASUED P.UTME 2024 screening exercise is compulsory for admission consideration. Required documents for screening Tai Solarin University of Education Post UTME Candidates must bring the following to the screening exercise: Colour print-out of the online Screening Form. Original JAMB Examination Notification of Result Slip or Direct Entry Registration Slip. Screening slip and receipt . Final information on the Tai Solarin University of Education Post UTME 2024 Candidates should regularly check the University portal for updates and further details regarding the TASUED Post UTME 2024 screening. TASUED Post UTME screening results will usually be available on the Admission portal 24 hours after the screening exercise.
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