Fundus AI, XchangeBox win Gitex Africa 2024 Road Show, Abuja
On Monday, Gitex, the world’s largest tech and startup show, kicked off its 2024 Road Show in Abuja. The event featured a pitch competition focused on agritech, healthtech, and fintech, with 19 startups vying for top honours. Fundus AI, an AI-powered solution for diagnosing diabetic retinopathy co-founded by Abdulmalik Adeyemo, and XchangeBox Solutions, a fintech startup supporting rural SMEs with loans and digital records—co-founded by Abiola Jimoh, emerged as the winners in 1st and 2nd place respectively. Both winners will receive a trip to Gitex Africa 2024 in Morocco, including accommodation, an exhibition booth, and entry to the Supernova Challenge with a chance to win $100,000. The Road Show continues in Lagos and wraps up in Kaduna—Gitex Africa’s first-ever event in the city—on Thursday. Beyond the startup pitches, the event featured a breakfast meeting between industry leaders and Bilal Al-Rais, Vice President, Portfolio Growth Tech & Digital, Dubai World Trade Centre. A panel discussion which focused on fostering cross-border collaboration to drive business growth was held. Participants included Khalil Halilu, CEO of the National Agency for Science and Engineering Infrastructure (NASENI) and representatives from Nigerian agencies such as the National Information Technology Development Agency (NITDA), National Standardisation Agency of Ireland (NSAI), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Wema Bank, and the Nigerian Export Promotion Council (NEPC). Startups outside Lagos and Abuja feel neglected With the Nigerian tech ecosystem being one of the fastest growing in the world, raising $398.2 million in funding in 2023, startups in the northern region still struggle to scale due to a lack of access to funding. At the Gitex Breakfast Briefing, discussions emerged on how to give visibility and resources to startups outside major cities like Lagos and Abuja. Usman Illiyas, co-founder of Startup Bauchi, a humanitarian development program that focuses on supporting startups, particularly in Bauchi, highlighted the disconnect between organic startups and government agencies. “The state government and government agencies are the first point of communication for Gitex and the likes when sourcing new talents and innovation. However, without proper communication between the state government and Nigerian startups, many startups lose access to gain the visibility they need,” Illiyas noted. Illiyas and many other participants suggested improving communication between the government and startups to ensure these startups have access to opportunities like GITEX Africa. Other upcoming Gitex events include GITEX Africa 2024, which will take place in Morocco from May 29-31, 2024, followed by GITEX Global in Dubai from October 14-18, 2024. GITEX will make its debut in Europe in 2025, scheduled for May 21-23.
Read MoreBreaking: Crypto platforms suspend USDT, USDC purchases after CBN scrutiny
A handful of crypto companies in Nigeria will no longer allow users to buy the USDT and USDC stablecoins with Naira after renewed scrutiny from the Central Bank of Nigeria (CBN). “There was a meeting of crypto founders on Tuesday morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told TechCabal. A second crypto industry player confirmed the meeting but declined to share details. At least two crypto exchanges have told their Nigerian customers about the new development. “We are suspending the buying and selling of USDT and USDC for Naira. This means you can’t buy or sell USDT or USDC with Naira,” said a notification sent by one exchange to customers. Crypto exchanges in crosshairs as CBN talks tough Binance and other exchanges have found themselves in regulatory crosshairs as regulators believe that crypto platforms encourage speculators to manipulate exchange rates. This week, users could not access the websites of crypto exchanges like Coinbase, Quidax, and Binance. Increased volatility in Nigeria’s FX markets has triggered several policy actions, and on Tuesday afternoon, Olayemi Cardoso, the Central Bank governor, claimed “$26 billion has passed through Binance Nigeria from sources and users we cannot identify.” An autonomous group, the Digital Currency Coalition, also claimed that the speculative trading on the platform significantly contributed to the “113.1% devaluation of the naira against USDT” since February 2023. Unconfirmed reports claimed two executives at a crypto company were arrested on Tuesday in a move to force the company to share its KYC data. Zakari Mijinyawa, a special adviser to Nigeria’s National Security Adviser, Malam Nuhu Ribadu, said he was unaware of any arrests and suggested that law enforcement agencies may have done them. Crypto exchanges are treading cautiously, three people who work in the industry told TechCabal. “The office asked us not to wear Binance t-shirts and caps and to not attend Binance-related events for now,” a Binance employee who asked not to be named told TechCabal, describing uncertainty and fear similar to last year when the Securities Exchange Commission announced that Binance was operating illegally in the country. At least five leading leaders in the crypto space declined to comment on this story, citing regulatory fears. “It is exactly as it was during the EndSARS protests in 2020,” an early-stage crypto investor in the country told TechCabal, adding that he has received warnings from peers to avoid attracting attention from law enforcement. *This is a developing story
Read MoreExclusive: Bolt launches in Botswana and waives driver commission for six months
Bolt, the Estonian ride-hailing company, is launching in Gaborone, the capital city of Botswana, and will compete in a market with only one other ride-hailing player: inDrive. Bolt will not charge its typical commission from drivers, usually between 15% and 20% of the ride fee, for six months as part of its rollout. The company said 100 drivers have been onboarded so far. Bolt’s launch in Botswana continues the company’s expansion in southern Africa. It has launched in Zambia, Zimbabwe, and Namibia in the last six months. Botswana is the 14th African country that Bolt has launched since first launching in South Africa in 2016. “We are thrilled to introduce our services in Botswana,” said Laurent Koerge, head of expansion at Bolt. “Our aim is to increase earnings for our drivers while fostering high demand through competitive pricing.” Bolt enters a Botswana ride-hailing market ripe for growth but also presents a challenging operating environment for ride-hailing platforms. inDrive was the first platform to test out the Botswana market, launching in the country five years ago. It remained the only platform in the country until now. Although it has blown up in popularity, perhaps showing the amount of demand for ride-hailing in the country, inDrive has faced numerous challenges, including allegations of driver misconduct as well as pushback from public transport operators. Bolt has features such as an SOS button, which allows riders and drivers to contact the police instantly; driver unmatching, which will allow a rider or driver never to be matched up with one another; and a “share my ride” option which will allow both parties to share real-time ride information. The platform will also require drivers to have all the requisite licenses from local regulators. Through these features, the company will be hoping to address the issues of safety and misconduct that have plagued ride-hailing in Botswana. In early 2023, Bolt announced its plan to invest over €500 million in the African market. One of its initiatives was to offer job opportunities to over 300,000 driver partners. The company operates in 45 countries globally, serving over 150 million customers and working with over 3 million drivers.
Read MoreCanal+ must make mandatory offer for MultiChoice shares, SA Takeover Panel rules
South Africa’s Takeover Regulation Panel (TRP) has ruled that Canal+, the French broadcaster, must now make a mandatory offer to MultiChoice’s ordinary shareholders after its stake in the company crossed the 35% threshold. According to the Companies Act of 2008 and JSE Listings Requirements, Canal+ must immediately make a bid for the outstanding MultiChoice shares it does not own. The mandatory offer will come three weeks after Canal+’s initial $1.7 billion bid for outstanding shares. Canal+ tests the waters with a bid to buy MultiChoice “The Board has concluded that the proposed offer price of R105 in cash significantly undervalues the Group and its future prospects,” the company told shareholders in a public statement rejecting the bid on February 1. However, the Takeover Regulation Panel ruled Wednesday that Multichoice’s public disclosure of the initial $1.7 billion offer was unlawful and issued a compliance notice against the broadcaster. MultiChoice will appeal that decision. Canal+ increased its focus on Africa in the past decade and has grown from just 1 million African subscribers in 2016 to 7.6 million in 2023. In July 2019, it bought ROK Studios, a prolific Nigerian film production company, from IrokoTV to increase its slate of original content offerings.
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👨🏿🚀TechCabal Daily – Kenya’s digital ID project is a go
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If you haven’t yet, please move TC Daily to your main folder so you don’t miss any of our updates. On desktop, simply drag and drop this email from Promotions to Primary/Main, and if you’re on mobile, click on the menu button to to effect the move. Onto today’s newsletter. In today’s edition Kenya gets thumbs up for digital ID project Nigeria raises interest rates SA nabs first spam caller Bitcoin has reached $57,000. Here’s why The World Wide Web3 Opportunities Government Kenya lifts injunction to halt Maisha Namba digital ID rollout In 2018, Kenya launched Huduma Namba, a digital ID system known as the National Integrated Identity Management System (NIIMS) which cost KES 10 billion (over $72 million). However, the programme was discontinued by a Kenyan high court in January 2020 due to overall distrust from Kenyans as the state failed to fully explain the merits of the IDs, including privacy concerns. In Kenya’s second attempt, President William Ruto’s administration took another shot at digital IDs with the introduction of Maisha Namba in October 2023, to replace the failed Huduma Namba. The new system aimed to address the shortcomings of its predecessor and was supposed to launch in December 2023. However, its rollout was short-lived, facing another hurdle as the Kenyan high courts blocked it due to missing data protection assessments. Here’s what you need to know: Maisha Namba, which is also referred to as a Unique Personal Identifier, comes with advanced security features like iris and facial biometrics and fingerprint identification, similar to Huduma Namba. However, the new UPI aims to address previous concerns with Huduma Namba. The new Unique Personal Identifier (UPI) will act as a child’s school ID through primary and secondary education. By adulthood (18), it becomes their national ID, further integrating with essential services like health insurance, social security, driving license, and even death certificates. However, the rollout was blocked in December 2023. And now: Kenya’s high court has lifted the December injunction that halted the introduction of the new digital ID cards, and it is anticipated that the rollout will recommence. The lawsuit, originally initiated by a non-governmental organisation, Katiba Institute, has been transferred to the Constitutional Human Rights Division for further review. Nevertheless, civil society organisations have advised the government against viewing the removal of restrictions as approval to proceed with the production of Maisha Namba cards, despite reports of 60,000 Kenyans having already applied for them. Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Economy CBN raises interest rates The devil works hard, but Nigeria’s Central Bank is always two steps ahead. Over the past two weeks, the CBN has sent out a roaster of new updates and regulations that are proving hard to keep up with. The apex bank has implemented sweeping reforms on Bureau De Change operators, eased foreign exchange rules, and sent BDC operators into hiding. On Monday, the CBN set a $500 limit on the purchase and sales of the dollar by cash. And yesterday, in fresh moves, it resumed selling dollars to eligible Bureau De Change operators (BDCs)—N1,301 per dollar—as part of its effort to pump more dollars into the FX market after former CBN governor Godwin Emefiele banned it. Under the new guidelines, BDCs can only sell foreign currency to customers at a maximum markup of 1% on top of the price they paid the CBN. If this works, it could align the country’s official exchange rates with its black market rates. A rate hike: Yesterday, in his first interest-setting meeting since assuming office in September, Yemi Cardoso, the CBN governor, also raised the interest rate to 22.75%, four percent higher than the previous rate. This move aims to combat inflation and stabilisse the Nigerian Naira. Higher interest rates typically incentivise foreign investment and attract capital inflows, potentially leading to a stronger Naira against the dollar. Cardoso talked tough in the media briefing in Abuja, Nigeria’s capital, stating that the CBN was actively working to arrest the naira’s slump. Nigeria’s inflation figures in January hit a 30-year high, rising to 29.9% and increasing the cost of living for its people. Experts, who previously predicted less than Cardosso’s increased interest rates, believe the bank is steering in the right direction to bring the naira under control with the newly announced measure. Zoom out: The latest moves by the CBN signal aggression in curbing the naira depreciation which has lost 70% of its value since President Bola Tinubu took office. Cardoso is also optimistic that the country will attract new foreign investors. This hope is evidenced in the recent movement of Nigeria’s dollar bonds, outperforming peers this month with returns of 2.6%. Regulation SA regulators nab first spam calling company Last week, we brought you news that South Africa’s Information regulator (IR) said it will begin cracking down on entities bombarding you with unwanted marketing calls. The regulator is wasting no time in dishing out punishments to offenders. The news: Yesterday, MyBroadband reported that the regulator issued its first enforcement notice to FR Ram Consulting, a training institution. FR Ram Consulting repeatedly sent marketing emails to a user who had unsubscribed from the mailing list on several occasions. In addition to breaking the IR’s latest regulation, the consulting group ran foul of other sections of the Protection of Personal Information Act (POPIA) including: directly marketing to individuals without obtaining their consent, persistently sending unsolicited marketing emails, and failing to cease communication even after individuals opted out. Tick Tock: FR Ram is at risk of a R10 million (~520,000) fine or a 10-year imprisonment if it fails to send evidence of its compliance with the new orders to the IR within a 90-day window. The regulator is also on the hunt for more offenders. It has identified 14 new
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March 2024 SRD SASSA grant payment dates
As South Africa gears up for another round of SRD SASSA grant payments in March 2024, beneficiaries can mark their calendars for the scheduled disbursement dates across various categories. Ensuring timely access to financial assistance remains a top priority for the South African Social Security Agency (SASSA), particularly in light of ongoing economic challenges and the need to support vulnerable individuals and families. Children’s March 2024 SRD SASSA grant payment On Thursday, 07 March 2024, Children’s Grants will be disbursed, offering vital support to families caring for vulnerable children. This assistance plays a pivotal role in safeguarding the well-being and development of young ones across South Africa. Older person’s March 2024 SRD SASSA grant payment Beneficiaries receiving Older Person’s Grants can expect their payments to be disbursed from Tuesday, March 5, 2024. This includes any grants linked to these accounts, providing crucial support to elderly individuals across the country. Disability grants Similarly, Disability Grants will be paid from Wednesday, March 6, 2024, encompassing any grants associated with these accounts. This timely distribution aims to alleviate financial burdens faced by individuals living with disabilities and ensure their access to essential resources. Important notice on SRD SASSA 2024 grants Looking ahead, SASSA recently announced through their X social media platform that beneficiaries can anticipate increases in certain categories of grants starting from April 2024. These adjustments reflect the government’s commitment to enhancing support for vulnerable communities and addressing economic disparities. For any inquiries or assistance regarding grant payments, beneficiaries are encouraged to contact SASSA through their toll-free helpline at 0800 60 10 11 or visit the official SASSA website for updates and news. Final thoughts on SASSA grant payment It’s important to note that beneficiaries need not rush to withdraw cash on the first day of payment. Once the funds are deposited into their accounts, they will remain available until needed, providing a measure of financial stability and security.
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Breaking: SRD SASSA increases grant amounts for 2024
In a move aimed at bolstering support for vulnerable persons, the South African Social Security Agency (SASSA) has announced, alongside March payment dates, increases in various SASSA SRD grants effective from April 2024. The increments are set to alleviate financial burdens and enhance the quality of life for recipients across the country. Old Age, War Veterans, Disability, and Care Dependency SASSA SRD Grants 2024 Starting from April 2024, recipients of these essential grants will experience a significant increase of R90, aimed at alleviating financial burdens and enhancing their quality of life. An additional increment of R10 is scheduled for October 2024, further demonstrating the government’s commitment to supporting its elderly, disabled, and dependent citizens. Foster Care and Child Support SASSA SRD Grants 2024 Families caring for vulnerable children will also benefit from the adjustments. The Foster Care grant will see a boost of R50, while the Child Support grant will increase by R20, effective April 2024. These increments recognise the crucial role of caregivers in nurturing and protecting children, ensuring access to essential resources for their well-being and development. Government’s Commitment to Social Welfare The decision to increase these grants reflects the government’s recognition of the challenges faced by vulnerable communities, exacerbated by economic uncertainties and the ongoing impact of the global pandemic. By providing incremental adjustments, SASSA aims to mitigate the effects of inflation and rising living costs, empowering recipients to meet their basic needs and maintain a decent standard of living. Final thoughts on SRD SASSA grants increase in 2024 In addition to the increases in 2024 grants, it’s important to note that the payment methods for SRD SASSA grants remain unchanged. Beneficiaries will continue to use their existing methods of payment without interruption. However, should any beneficiaries encounter difficulties or have inquiries regarding their payments, they are encouraged to reach out to SASSA customer service lines or visit their nearest offices for assistance.
Read MoreCardoso talks tough: Central Bank will “do what it takes”
Nigeria’s Central Bank has entered an “aggressive regulatory environment,” threatening to deal with players who don’t follow the rules, per answers from Olayemi Cardoso, the bank’s governor, in today’s monetary committee meeting. Facing FX volatility, the bank has adopted a raft of measures to bring stability and in today’s meeting, Cardoso spoke about collaborating with law enforcement agencies to enforce guidelines. He didn’t specify the guidelines law enforcement would enforce. “People will have to abide by those regulations and those that do not would face consequences for not doing so,” Cardoso said in Abuja on Tuesday afternoon. “We will do what we have to do.” Already, the bank raised the benchmark lending rate by 400 basis points to 22.75%, from 18.75%, in one swell move today, vowing to make more shocking policy moves in an attempt to resolve the country’s economic woes. The CBN also promised to generate more liquidity for the forex market. “Just today, we paid out another $400 million dollars that were so identified. In terms of the reserves, it has gone up to $34 billion,” the CBN governor said in today’s meeting, hinting that some of its recent moves—has paid off. Regulations on Binance Part of those aggressive moves involves CBN’s recent decision to prevent Nigerian users from selling USDT, on Binance, the world’s largest cryptocurrency exchange. Cardoso defended this move by calling the funds transfer through Binance “illicit flows.” According to him, “$26 billion has passed through Binance Nigeria from sources and users who we cannot identify.”
Read MoreNigeria U-turns on BDC operators, sells Dollars again to tame FX volatility
Nigeria’s Central Bank will begin selling dollars to eligible Bureau De Change operators (BDCs) at N1,301 per dollar in its latest effort to improve liquidity in the FX market, three years after Godwin Emefiele first banned the sale of the greenback to those operators. The apex bank will begin those sales after proposing more stringent rules for BDC operators last week, according to a circular published on Tuesday. The CBN hopes that this move will take the pressure off the banks and help meet the demand in the retail market. “What we’re hoping to accomplish by this, frankly, is to bring some sanity to an industry that arguably no longer serves the interests of those whom it was meant to protect,” CBN governor Olayemi Cardoso said at the end of the rate-setting meeting on Tuesday. The apex bank raised the benchmark lending rate to 22.75% in the most aggressive push to contain inflation. BDCs will only be permitted to sell to end-users at a margin not exceeding 1% above the purchase rate from CBN, according to the new directive. Analysts have said the CBN aims to eliminate street trading and standardize the operations of BDC operators with technology so their volumes and activities can be monitored in real time. Under ousted CBN Governor Godwin Emefiele, the CBN banned sales of FX to BDC operators in 2021. The apex bank reversed the two-year ban in August 2023. CBN raises interest rates by 400 basis points as it moves to “aggressive regulatory environment” Last week, the bank increased the minimum capital requirements for BDC operators to N2 billion for Tier 1 license holders and N500 million for Tier 2 licence. “We hope we’ll be able to increase competition from those who are genuine,” Cardoso said. CBN’s efforts to unify the naira have failed to hit home due to the bank’s inability to meet demand. As a result, the parallel market continued to be the viable source of supply, opening up a significant arbitrage opportunity. The prevailing thinking on the government’s side is that speculators are taking advantage of the situation to inflate prices artificially. Still, many experts disagree, pointing out an absence of liquidity as the real cause of the problems. TechCabal reported on Monday that the fear of being arrested by officials of Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC) has driven currency traders away from street trading. Last week, Nigerian authorities blocked access to crypto companies’ websites and pegged rates on Binance, a global crypto exchange.
Read MoreCBN raises interest rates by 400 basis points as it moves to “aggressive regulatory environment”
Nigeria’s Central Bank has raised the benchmark lending rate by 400 basis points to 22.75%, from 18.75% in the most aggressive push to contain inflation. Olayemi Cardoso, the CBN governor, announced this today after the bank’s Monetary Policy Committee (MPC) meeting that began Monday. The rate meeting, the first under Olayemi Cardoso, had been viewed by analysts as a test of the bank’s seriousness in curbing worsening inflation. At least five policy experts surveyed by TechCabal expected a 200 basis point hike today. Cardoso would be secretly hoping that rate decisions translate to the economy. A gap already exists between the central bank’s policy rate, yields on the short-dated paper it sells at auction and what is offered on government debt. Explaining the motive for the hawkish stance, Cardoso said MPC members were concerned about the persistent rise in the level of inflation and emphasized the commitment to reverse the trend. “Previous policy rate hikes have slowed the rise in inflationary pressure but not to a desirable extent,” he said. “Members concluded that inflation could pose more regulatory challenges in the near and medium term if not effectively anchored.” According to him, non-monetary factors were driving inflation. Experts told TechCabal that Nigeria’s rising inflation can’t only be solved by raising MPR. “Our current cost of living issues are being propelled by structural drivers and not by transient supply and demand issues,” Ikemesit Effiong, a partner at SBM Intelligence said. Understanding the motive for rate cuts or increases by the MPC committee would offer more insights into Cardoso plans for the economy, another analyst Kalu Aja said. It would be important to know if it’s a “unanimous decision or not,” Aja added. President Bola Tinubu’s reforms have been met with small pockets of protests across the country, with consumers lamenting that their spending power has been eroded. Inflation is at a nearly three decade high at 29.90, six months after Cardoso’s rise to head the CBN. Tinubu had appointed Cardoso—his long-term associate to man the Central Bank last September after his predecessor, Godwin Emefiele had done a poor job of controlling inflation which had attained an 18-year high mark in a space of six years. Emefiele’s time as governor was notable for expanding loans to the federal government, CBN-funded agricultural schemes, and artificially pegged exchange rates. Cardoso, who previously dismissed the impact of monetary policy meetings, is under pressure to deliver stability. Analysts would observe how impactful his reforms in stabilizing the naira will be after the Central Bank’s recent reforms on the Bureau De Change operators.
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