South-African startup Scale raises $700,000 to help fintechs issue customisable cards
Scale, a South African startup that provides brand and project management services for fintechs that want to enter new markets or build new product verticals, has raised $700,000 in pre-seed funding. 54 Collective, a sector-agnostic venture capital firm, and fintech-focused First Circle Capital, led the pre-seed round. Sunny Side Venture Partners and some angel investors also participated. The one-year-old startup founded by Barbara Woollams and Miranda Perumal, a former director at Visa, also provides partnerships with payment infrastructure providers to fintechs. The company will use this funding to expand operations to Kenya, Zambia, and Cote d’Ivoire. Particularly, it hopes to deepen the reach of Scale Execute, its customisable card-issuing product developed in partnership with Visa and Mastercard. This comes during a period when African fintechs are second-guessing card services as the cost of processing payments through multi-layered partnerships eat into margins for them. Chargeback fraud is another headache in the card payments industry. In 2022, African fintechs like Eversend and Busha briefly scaled back their card operations and had to change providers after Union54, a Zambian fintech that provided a virtual card-issuing API, discontinued its card services as attempted chargeback fraud cases on its platform rose by 600%. However, expanding into a market like Cote d’Ivoire makes sense for Scale, as the country ranked first in West Africa in card issuance. Ivorian banks issued about 2.4 million cards to customers in 2022. “With the backing of our esteemed investors and partners, we are well-positioned to expedite our ecosystem engagement, build trust with African businesses and continue to strongly focus on solving major pain points when enabling card rails by delivering unrivalled, world-class service,” CEO Perumal said in a statement. Though cash remains a dominant payment method in some African markets, Scale is betting its card issuance service on the continent’s growing fintech market, projected to reach $230 billion by 2025. By 2029, card issuance platforms are also expected to issue about 35% of all cards used in payments. Scale will compete with players like Onafriq in the B2B card issuance sector. “The Scale team, led by a rockstar female founder [with] deep sector expertise and proven bias toward action truly excites us, and we look forward to seeing Scale become a critical enabler for fintechs,” said Hetal Patel, chief investment officer at 54 Collective. African tech leaders and global players will be at Moonshot by TechCabal. You can get tickets here.
Read MoreBreaking: Tanzania suspends Kenya’s NMG websites for 30 days
Tanzania Communications Regulatory Authority (TCRA) has suspended Mwananchi Communication’s websites, a subsidiary of Kenya’s Nation Media Group (NMG), the largest independent media house in East Africa, citing the publication of “prohibited content.” Mwananchi Communications operates several news outlets, including The Citizen, an English news outlet; Mwananchi, a Swahili site; and Mwanaspoti, a sports news publication. TCRA previously suspended its license for six months in 2020 after The Citizen posted a leaked video of former President John Magufuli in a crowded fish market during the COVID-19 pandemic. “We regret to inform our esteemed audiences that we shall be ceasing publication across all our online media platforms with immediate effect due to the Tanzania Communications Regulatory Authority (TCRA) suspending all our online media services licenses for 30 days,” Mwananchi Communications said. Since September, authorities have arrested three opposition leaders and banned local news outlets from covering anti-government activities as part of a government crackdown on dissent. Chadema, an opposition party, warned that the crackdown on independent institutions signals a potential return to the repressive rule seen under Magufuli. There have been fears that opposition parties and rights groups in Tanzania could mobilise anti-government protests similar to the one in Kenya against the 2024 Finance Bill. Tanzania’s president, Samia Suluhu, has warned that her government would not tolerate actions that would disrupt the country’s law and order. Nonetheless, the media house said its print publications and broadcast will continue serving their audiences. It was not immediately clear whether the suspension affects NMG’s Kenyan publications that cover regional news like The East African and Nation Africa. “MCL remains committed to delivering exceptional journalism that empowers the nation. We will continue to serve you through our daily print editions, and other non-online products and offerings as we engage the regulators on the way forward,” the company said.
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👨🏿🚀TechCabal Daily – Play stupid games, win stupid prizes
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! ChatGPT maker OpenAI has raised $6.6 billion, valuing the company at $157 billion in the largest VC round ever. It will use the funds to advance its AI research. With only 6 days left and a few tickets remaining, the Moonshot flash sale is closing soon. Grab tickets at 30% off and secure your seat at Africa’s biggest gathering of digital innovators and tech experts. And here’s the best part—attending with friends and colleagues makes the experience even more powerful. You get to share insights, build ideas together, and expand your network as a team! It’s an experience that’s even better enjoyed when shared. Get tickets here. Nigerian gig drivers are gaming the system for more money Lesaka completes Adumo acquisition for $96 million Fibre cuts disrupt service for 9Mobile subscribers The World Wide Web3 Opportunities Ride-hailing For gig drivers, bonuses are a lifeline Image Source: Imgflip/TechCabal In the cutthroat world of ride-hailing, where gig drivers are constantly hustling to make ends meet, bonuses have become a crucial additional source of income. But these bonuses aren’t without strings attached. Drivers must complete 30–50 weekly trips to earn between ₦30,000 ($20) to ₦63,000 ($40) in bonuses. They must also have a minimum quality score of 70 to qualify for the bonuses even when they meet the weekly trip targets. These bonuses have become a lifeline for many drivers in the face of rising fuel costs and inflationary pressures. Desperate situations require desperate moves. These drivers now adopt creative measures to meet the targets including accepting fake short trips. Yet, as drivers are learning to fly without perching, ride-hailing companies are learning to shoot without missing. They look out for fradulent trips to stay one step ahead. While ride-hailing companies constantly update their algorithms to detect and prevent such fraudulent activities, in the end, it’s a stark reminder that the gig economy is a tough, unforgiving place. Survival may sometimes mean bending the rules. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. M&A Lesaka completes Adumo acquisition for $96 million Image Source: Imgflip/TechCabal In 2023, Africa recorded over 387 mergers and acquisitions (M&A) deals worth $11.2 billion, with East Africa leading the way for the most deals. Yet, it was a slow year for M&A with a 38% value decline compared to 2022. However, 2024 is already bucking that trend. The value of African M&A deals was $26.9 billion in H1 2024, doubling what was recorded in the whole previous year. Some notable deals have come from South Africa. The latest is Lesaka Technologies, the NASDAQ-listed South Africa-based fintech company acquiring another fintech, Adumo in a cash and stock deal that stands at $96 million. Lesaka paid $10 million in cash, and bought the remaining in stocks, providing stakeholders with an exit. First announced in May, the deal was supposed to finalise for $85 million. However, a 27% increase in Lesaka’s share price since that agreed-upon $85 million took the deal to $96 million. This was because part of the value of the deal was paid in stock. But Lesaka won’t mind this. Adumo is a strategic acquisition that will help Lesaka reach 1.7 million active consumers and 120,000 merchants in Africa. While both companies didn’t disclose leadership changes, the new entity will hire 3,300 employees across South Africa, Namibia, Botswana, Zambia, and Kenya. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Telco 9Mobile’s network problems were due to fibre cuts Image Source: Zikoko Memes Why would you leave a SIM card in your mobile phone that provided poor network service for nine months, instead of simply switching to another network? For 9Mobile subscribers, it is a sentimental attachment to a network they once cared about. It is like continuing to love your football club when they don’t win trophies. Subscribers of 9Mobile, dubbed the sickman of the telecom industry, have seen many months of below-par services. While they held on faithfully, they were not told the telco suffered fibre cuts—until now. The telco recently changed ownership, from Emerging Markets Telecommunications Services Limited (EMTS) to Light House Telecoms. Apart from the ownership switch, little has changed in terms of capital investment. The number of fibre optic cables it has since its previous owner and UAE-based Etisalat left the company in 2018 is still the same as of 2022—4,650 km. Thomas Etuh, founder of LightHouse Capital, parent company of LightHouse Telecoms, is raising money to fund the telcos’s infrastructure needs. Pending when he gets the money, 9Mobile subscribers would need more patience. Introducing Pay with Pocket on Paystack Checkout Paystack merchants in Nigeria can now accept payments from PocketApp’s 2 million+ customers. Learn more → CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $61,188 – 0.56% + 3.29% Ether $2,393 – 3.73% – 5.21% Hamster Kombat $0.004754 + 0.56% – 51.28% Solana $142 – 3.28% + 5.05% * Data as of 06:20 AM WAT, October 3, 2024. Opportunities Here’s an exciting opportunity for crypto innovators! Quidax in partnership with TC Battlefield has launched an exclusive award category to celebrate the most promising and innovative crypto startup in Africa. If you’re solving big problems with cryptocurrency, you stand a chance to win the $15,000 grand prize and other exciting rewards. Applications close next week so apply quickly! Introducing Krent, a property tech platform providing Nigerian renters and buyers with a transparent, stress-free, and cost-efficient solution. krent.space addresses
Read MoreGig drivers game the system as bonuses become an essential source of income
In December 2023, ride-hailing platforms introduced bonuses for driver-partners after the removal of fuel subsidies. Those bonuses are supposed to incentivise drivers disillusioned with gig driving on the back of complaints that the model no longer works for them. To earn between ₦30,000 to ₦63,000 in bonuses, drivers must complete 30-50 weekly trips. One gig driver estimates that drivers earn about ₦30,000 daily, but a surge in fuel prices and quickening inflation mean net earnings are considerably lower. The weekly bonuses that boost their income have become so vital that some drivers are cutting corners to meet the targets required to earn them. “Sometimes after taking a few trips, a driver could ask a fellow driver who is nearby or a friend to book short trips which typically cost ₦800-₦1,500 to get them to the daily target,” one gig worker who has now taken a break from driving told TechCabal. All the drivers lose is a fraction of the fee which the platform takes as commission—a reasonable opportunity cost compared to missing out on the bonus. Time pressures in Lagos, notorious for its traffic jams, have made drivers creative. ”Drivers can get about 15 trip requests in a day. Some quickly hit the targets and use the rest of the day to run offline trips where they can avoid paying commissions. Some use the time to attend to their personal needs, fix their car, [or work their other jobs if they only drive part-time.]” Four suspects in Equity Group card fraud scheme wired $2.4 million to Abu Dhabi The bonuses aren’t tied to quantity alone. Ride-hailing companies say drivers must have a minimum quality score of 70 to qualify for the bonuses even when they meet the weekly trip targets. Rejecting trips can lower drivers’ quality scores. One workaround is accepting fake short trips. “The [dummy] trip can be as long as 3km, but the driver can stop driving after 1km and end the trip,” another gig driver said. Because the dummy trip is paid for, the app assumes it is legitimate and updates the driver’s progress on the daily target. Ride-hailing companies know gig drivers’ antics because of their extensive experience with incentive systems. Companies are always on the lookout for fraudulent trips and devise ways to stay one step ahead. “Just last month, after paying me my money including my fuel bonus, Uber blocked my account asking me to pay about ₦80,000 to restore it,” a gig driver who had used one or more of these tricks to reach his target told TechCabal. “They must have realised I tricked them after paying me.” Platforms continually raise the bar for drivers to qualify for bonuses. For the October challenge on Bolt, which began on Tuesday, drivers must complete 12 trips to qualify. “It used to be eight, then it was nine, and now it has gone up again,” the one Bolt driver said. These underhanded tactics to earn extra money highlight how gig driving has become extremely challenging. For years, drivers have been asked for higher base fares and lower commissions. Offline trips sidelining the ride-hailing platforms have become more common. Drivers ask riders to pay more than the app charges or cancel trips. While drivers continue the push for higher base fares, they’ll take the next best thing: back-breaking bonuses.
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🚀Entering Tech #75: The Reel Deal on Video Assessments
Will you take a video assessment for your dream job? 2 || October || 2024 View in Browser Brought to you by Issue #75 The Reel Dealon Video Assessments Share this newsletter Greetings ET people We’re back to sending new Entering Tech editions to your inbox every Wednesday. Let’s christen this new bad good behaviour! Do you remember when Marta Puerto, the product manager from Spain, made this video after she got laid off? That video broke the internet! People thought Marta’s approach to job hunting was a cool way to stand out and get employed. Well, did it work? Oh yes, it did! Marta got flooded with loads of offers. In March, HR professional Emmanuel Faith also did his own version. Shortly after, he announced a new role. While Marta and Emmanuel are examples of going above and beyond to get a job, employers are now increasingly requesting video assessments as a requirement for getting a job. The conversation steered a debate on Twitter weeks ago. Classist, elitist, exclusionary, biased, superficial, and unnecessary some people call it. We took a poll on Twitter, and spoke to 3 HR professionals and folks who had completed video assessment to share their views. Faith Omoniyi Video assessments are not for all roles When we spoke to JMB popularly known as “Oga HR”, he was surprised that this was an argument in the first place. According to him, video assessments are required only for customer-facing roles (or should be)—like sales reps, customer reps, front desk officers, etc. Video assessments for these roles are non-negotiable and allow recruiters to assess a candidate’s ability to articulate their thoughts clearly, concisely, and professionally which is crucial for customer interactions. For these types of roles, video assessments can present candidates with hypothetical customer scenarios, allowing recruiters to gauge their ability to handle difficult situations, respond appropriately to customer concerns, and maintain a positive demeanour. According to JMB, video assessment helps recruiters also screen out applications, just like the Applicant Tracking System (ATS) does for CV documents. He uses video assessments to trim down the number of applicants he works with. Due to the video requirement, some applicants get discouraged from continuing the application process, cutting down the number that eventually sends these videos. The truth is, if it is a job you really want, you might just need to find a workaround. Positive Reinforcement for You courtesy YungNollywood DEI-focused companies also require video CVs to reduce bias, promote diversity, enhance cultural understanding, improve candidate experience, and align with company values, according to Felix Bissong, a Senior People Associate at CCHub. By focusing on a candidate’s communication skills, personality, and cultural fit, video CVs level the playing field and help identify candidates from underrepresented groups. So if you’re applying to a DEI-focused company and you come across a video-CV requirement do not be surprised. Now that we are clear on the roles that require video assessments, does it mean there are no downsides to video assessments? Of course, there are. *Newsletter continues after break Get 30% off Moonshot tickets! We are officially 14 days to the most crucial event in Africa’s digital landscape. Moonshot by TechCabal invites you to join this extraordinary gathering, uniting the brightest minds in Africa’s tech ecosystem for two unforgettable days of valuable insights, strategic networking, and remarkable experiences as we delve into the theme, “Building for the World.”Join industry leaders and like-minded individuals at Moonshot 2024 as we look into the future of African tech.Get tickets 30% off here. Why are video assessments unliked? We were curious to learn what you guys had to say, so we took to X (formerly Twitter) to ask a small group of people for feedback. While 63% of our 130 respondents say they have applied for a role that required video assessments, most people said they don’t like video assessments. Image source: Faith Omoniyi/TechCabal “It’s actually very annoying. After asking for a cover letter, you have to deal with the anxiety of applying for a new role. Seeing a request for a video application just makes it worse and I don’t think they actually go through all the videos,” said Adeyinka, a customer success manager. For most people, anxiety in front of the camera is the major reason for this disdain. Emmanuel Faith, a well-known People and Talent Leader believes this reason justifies why employers ask for video assessments. “The reason video assessments are done is to confirm that you’re a confident person. If you’re not comfortable talking in front of the camera, how will you be comfortable talking to people,” said Emmanuel Faith. Lack of video editing skills and good devices were other reasons why people didn’t prefer video assessments. However, most said they’d be willing to do video assessments if it were required for their dream jobs. Image source: Faith Omoniyi/TechCabal Our poll respondents did not believe video assessment provided a fair evaluation of job candidates. We found that thread worrying and asked HR specialist Emmanuel Faith for answers. “Video assessment can help you sell yourself better if you leverage it. But this is not a close-ended conversation; there is no right or wrong.” *Newsletter continues after ad break Get 30% off Moonshot tickets! We are officially 14 days to the most crucial event in Africa’s digital landscape. Moonshot by TechCabal invites you to join this extraordinary gathering, uniting the brightest minds in Africa’s tech ecosystem for two unforgettable days of valuable insights, strategic networking, and remarkable experiences as we delve into the theme, “Building for the World.”Join industry leaders and like-minded individuals at Moonshot 2024 as we look into the future of African tech.Get tickets 30% off here. A thing for bias Although people have argued on X That people with low-end devices may not have a good shot at getting gigs, JMB argues that sometimes, it’s not about the quality of the video, it’s about the eloquence of the speaker. Image source: Faith Omoniyi/TechCabal For Emmanuel Faith, this argument is different. “If
Read MoreBreaking: Lesaka completes acquisition of Adumo for $96 million
Nasdaq-listed fintech Lesaka Technologies has completed the acquisition of fintech company Adumo for $96 million. In the cash and stock deal, Lesaka paid $13 million in cash. The final acquisition amount is $10 million more than the figure previously reported in May thanks to a 27% increase in Lesaka’s share price. “We are thrilled to be joining the Lesaka group, creating a Southern African fintech of significant scale, with leading positions in several verticals and sectors,” said Adumo CEO Paul Kent. Lesaka shareholders and South Africa’s Competition Commission approved the deal in September 2024. Adumo’s acquisition will help Lesaka reach 1.7 million active consumers and 120,000 merchants. The company will also hire 3,300 employees in South Africa, Namibia, Botswana, Zambia, and Kenya. It will increase Lesaka’s market share in the southern African region. Competitors like YOCO are only based in South Africa. Founded in 2019, Cape Town-based Adumo provides card-acquiring POS devices, integrated payments and reconciliations services to merchants and consumers. The company claims to process over R24 billion ($1.3 billion) annually and has 23,000 merchants and 240,000 consumers using its services respectively. Lesaka, with a market capitalisation of $310 million, also owns payment provider EasyPay, and Kazang, a card-acquiring POS device company. In February 2024, the company acquired point-of-sale provider Touchsides for an undisclosed amount. Lesaka is looking to make more acquisitions and already has “several potential targets” to drive its growth. In its latest financial results released in August, Lesaka recorded an 11% jump in revenue to R10.6 billion and a net loss of R326 million for the financial ended June 2024.
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Nigerian agritech startup Winich Farms raises $3 million pre-series A funding
Winich Farms, a Nigerian agritech company that supplies farm grain produce to retailers, has raised $3 million in pre-series A funding to expand its order fulfillment centres and improve its technology. This is the company’s second funding in two years. The round was led by Acumen Resilient Agriculture Fund (ARAF), which contributed $2.5 million, with Climate Resilient Africa Fund, Marula Square, Plug and Play Tech Centre, and Tekedia Capital participating in the round. Sahel Capital provided $590,000 in debt. Founded in 2020 by brothers Riches and Winner Attai and Chichebem Jibunoh, Winich Farms helps farmers in rural areas sell their produce to off-takers—retailers and informal processors. The company operates collection points run by agents who process orders from off-takers. If a retailer orders 50 kilogrammes (kg) of rice on their mobile app, the order gets passed on to agents for bidding. These agents rally the local farmers within a vicinity to bring the produce to the collection points and send them to truck drivers for delivery within 24 to 72 hours. A Winich Farms collection point run by a community agent. The company claims it negotiates with farmers at fair prices and sells their produce to offtakers at slightly marked-up margins. It currently charges the off-taker ₦720 ($0.43) per kg of paddy rice, excluding the delivery fee. Winich Farms splits revenue in three: one portion goes to farmers, another to agents, and the company keeps the third. It claims it processes monthly orders up to ₦3.7 billion ($2.2 million) and has grown its gross merchandise value (GMV) by 300% since 2022 to $30 million. “Our growth has come from growing the number of agents on our platform. In 2022, we had about 1,000 agents. But at the start of [2024], we reached over 4,000 agents, quadrupling our growth. With more agents, we meet demand faster,” said co-founder and CEO Riches Attai. But the current model is limiting because the company’s farmer partners are based in the northern regions, making deliveries to farther states like Lagos slower. The agritech claims it serves over 150,000 users, including farmers, agents, and truck drivers. “If a retailer in Lagos orders produce like rice, instead of sourcing from farmers in Kebbi or Kaduna which increases the delivery time due to the distance, the order is instead processed from Ondo state that is closer.” Winich Farms’ workaround is to set up fulfillment centres. The company will use the debt funding to lease buildings that will serve as regional distribution hubs across the six geo-political areas of Nigeria. With the fulfillment centres, the company will reduce delivery time to off-takers. The agritech also provides access to credit by connecting farmers who complete a minimum of three supply cycles to financial institution partners to provide financing. The company issues Verve cards to rural, underbanked farmers in partnership with Sterling Bank, allowing payments directly into their accounts. It plans to issue 195,000 cards in the coming months. Winich Farms will use the equity funding to improve its technology and scale its card operations to compete in Africa’s growing agritech market with other players like ThriveAgric, AgroMall, and Zowasel. “Investing in Winich Farms aligns with our goal at ARAF of growing local businesses that support smallholder farmers towards increased productivity, sustainable agricultural development, better livelihoods, and increased food security,” said Tamer El-Raghy, managing director of ARAF. African tech leaders and global players will be at Moonshot by TechCabal. You can get tickets here.
Read More9Mobile blames network problems on fibre cuts as it bleeds customers
After nine months without mobile internet, Adams Ojo, who is sentimental about his 9Mobile number, figured it was worth a last shot before switching network providers. He learned he was not alone when he visited a 9Mobile office at Ikota Shopping Complex, VGC area of Lagos. Hundreds of other 9Mobile customers who had similar issues wanted answers. “Fibre cuts are responsible for network blackouts at Addo Road and Badore, and down to Sangotedo areas,” said one employee at the 9Mobile office. “There is network service from Ikota down to Ikate, Lekki.” One customer who lives in Lekki Phase One claimed 9Mobile’s network is often erratic. The service problems extend to other cities. Bolu Faramade, who lives in Ogun state, has since switched network providers. “Customer care agents were always not responding. They’ll keep you on the line till you get tired and move on. Or they keep opening tickets every time you call,” she told TechCabal. 9mobile did not respond to a request for comments. Mercy Etim, who lives in Ogbor Hill, Aba, Abia State, and used 9Mobile as her primary network for years, has also moved on. While LightHouse Telecommunications acquired 9mobile in July 2024, the company’s deep-seated issues and reputation as the sickman of the telecoms industry remain. With a decline in infrastructure investment, the quality of 9Mobile’s network has suffered forcing customers to migrate to competitors. From March 2024 to March 2022, over 1.1 million subscribers ditched 9mobile. MTN Nigeria gained 6.6 million in the same period. Nigeria’s fourth largest mobile network operator did not add a foot of fibre optic cable to its 4,650km of fibre from 2018 to 2022. Market leader MTN Nigeria has 35,000km of fibre cables deployed. “Telecoms is a capital-intensive business. Even networks with significant investments still struggle with quality of service issues as a result of congestion in certain areas,” said one senior telecom executive who asked not to be named.
Read MoreFour suspects in Equity Group card fraud scheme wired $2.4 million to Abu Dhabi
A Directorate of Criminal Investigations (DCI) letter seen by TechCabal showed that four suspects involved in a $2.4 million Equity Group card fraud transferred the funds to an account in Abu Dhabi within hours. DCI alleged that three suspects—whose names TechCabal will withhold for legal reasons—altered an integration in Equity’s CyberSource system, a payment gateway, allowing them to process multiple fraudulent card transactions. The funds were then transferred to a fourth suspect, who wired them to Abu Dhabi, United Arab Emirates. Investigators are working with a theory that the merchants colluded with bank insiders, reflecting mounting concerns over internal involvement in fraud within Kenya’s banking sector–a problem that costs the industry millions of dollars annually. “One suspect, in a scheme to widen the scope of laundering of the funds, further transferred the stolen funds from Mobile VOIP Networks Limited account to Geonosis Capital Limited account held at I&M Bank by [name withheld] who in turn transferred the funds to [name withheld] domiciled in Abu Dhabi,” DCI said in a letter to the Office of the Director of Public Prosecutions (ODPP). “As a result of the fraud, Equity Bank lost a sum of KES322,154,851 ($2.4 million) through online fraud committed by the four suspects.” Equity Group declined to comment. One person with direct knowledge of the matter told TechCabal that the four suspects, who are now facing money laundering and cyber fraud charges, are part of merchant networks that exploit loopholes in banks’ card management systems to steal billions. Equity Group has been the hardest hit in recent years, that person said. While the amount of money Kenyan banks have lost in fraud this year is unspecified, the investigator said fraud cases have risen by more than 50%. Most banking fraud cases go unreported, as lenders resolve them quietly, albeit with the knowledge of the Central Bank of Kenya (CBK), and other financial sector regulators. In 2023, Kenya’s Financial Reporting Centre (FRC), an agency that tracks the flow of money in financial institutions flagged more than $600 million linked to card fraud, corruption and terrorism. The lenders also lose about $130 million through identity theft and loan stacking.
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👨🏿🚀TechCabal Daily – Free money
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! Tech events on your calendar are closer than they appear. Moonshot, the most important tech gathering in Africa, is now only a week away. We are still offering 30% off all tickets with a few spots remaining. Join the conversation on Africa’s digital landscape and treat yourself to two amazing days of gaining valuable insights from industry experts, networking with potential partners and investors, and being a part of the groundbreaking innovations shaping the African digital economy. Don’t miss out—this exclusive offer ends in 2 days! Get tickets here. Four Kenyans want a share of Netflix’s ‘Free Money’ earnings Communication solves deep tech’s trust issues Exxon’s sale to Seplat could help Nigeria meet its OPEC quota The World Wide Web3 Opportunities Streaming Four Kenyans want a share of Netflix’s ‘Free Money’ earnings Netflix’s Free Money documentary When people in vulnerable communities are the subject of documentary filmmaking, are they being exploited? There are no easy answers. Seeking consent on what to portray and the experiences that subjects feel comfortable sharing is a big ethical quandary. Four Kenyans told a court their images and videos were used without consent in a 2023 ‘Free Money’ documentary on Netflix and want to be compensated for the documentary’s earnings. Their photos and videos were taken while receiving $22 cash donations from GiveDirectly, a US-based non-profit, as part of a 12-year financial support programme that began in 2018. The petitioners, John Omondi, Jael Songa, Immaculate Adhiambo and Milka Okech, claim they were not given the details of the production and content of the two-hour documentary filmed over five years. They’re suing GiveDirectly, Insignia Films Inc. and Goodhue Pictures Inc. which produced the documentary. The petitioners claim GiveDirectly only informed them the documentary was due to premiere in Canada and other cinemas weeks before the launch. The lawsuit could set a precedent for how filmmakers in Kenya seek consent and portray individuals. Read the full story here. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Emerging Tech Communication solves deep tech’s trust issues Image Source: Science, Technology and Innovation Secretariat of the Republic of Uganda On the second day of Uganda’s deep tech conference, I had time for one-on-one conversations with some interesting people from MIT and AfricInvest. But first, a quick rundown of what we got up to on day two. The format of the conference—a few panels and group conversations to point out the challenges and solutions for Uganda—remained the same, but the focus shifted to stakeholders like academia and investors. Deep tech relies a lot on research making researchers at top universities key stakeholders. Why aren’t some of Uganda’s brightest and best turning their research ideas into commercial opportunities? To hear Khaled Ben Jilani, a Senior Partner at AfricInvest, tell it, researchers must overcome considerable bottlenecks to turn these ideas into commercial opportunities. First, there’s the question of who owns the intellectual property (IP) of the ideas they come up with. Then, there’s the more practical concern that many academics aren’t entrepreneurs and may not be natural risk takers. For Jilani, the government has to lower some of these barriers, considering that even with the right funding and support, innovations in deep tech can be a long game. These conversations are critical because all parties—government, investors, founders, and academics—are present. They can come away from all this having agreed on a central source of truth. For Kristy Morse, an MIT representative, this engagement can solve the trust problem for all stakeholders. “One relevant solution is partnerships and collaboration.” Founders, who are often distrustful of regulators and regulators who sometimes view innovation with skepticism can use this to find common ground. Next up: presenting a clear plan to the government on Wednesday. See you then! Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Economy Exxon’s sale to Seplat could help Nigeria meet its OPEC quota Image Source: Zikoko Memes Seplat, the Nigerian energy supplier, will complete its purchase of Exxon’s oil and gas assets in Nigeria in “a matter of days.” The approval, which comes two years after its initial announcement, will alleviate Nigeria’s fuel scarcity and bolster its economy by increasing the availability of crude oil for domestic refineries and the demand for imported fuel. Nigeria, Africa’s largest oil producer, has consistently fallen short of its OPEC production targets due to years of underinvestment in the oil industry—a critical driver of economic growth and government revenue. The country produced 1.48 million barrels of crude per day, slightly below its OPEC quota of 1.5 million barrels. That deficit could be filled by Seplat, as the oil company has previously stated that the deal would almost quadruple its oil output to more than 130,000 barrels per day. The sale could also help mitigate Nigeria’s age-long fuel scarcity issues as Dangote’s refinery becomes a possible source of fuel for the country. Exxon’s sale could lead to a more stable and abundant supply of petroleum products domestically, reducing dependence on imports and easing fuel shortages. This, in turn, could stabilise fuel prices and mitigate the cost-of-living crisis affecting many Nigerians. The Tinubu administration, which is hungry for quick wins, will count the sale as a win especially since the President’s economic reforms have contributed to a cost-of-living crisis. While the President can claim that since taking office in May 2023, those economic reforms have attracted more than $30 billion in foreign direct investment, the average Nigerian
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