How a power outage at MainOne data centre took Nigerian banks offline
MainOne, the Equinix-owned broadband and storage company, suffered a one-hour power outage at its MDXi II data centre in Lekki on October 9, 2024, that took several Nigerian banks offline. The outage affected millions of customers who could not access banking services. One person familiar with the matter said at least three tier-1 banks were affected. A faulty circuit breaker caused the power outage, one person with direct knowledge of the matter said. With a power capacity of 600 kilowatts (kW) and a power density of 3.5 kW per rack, MDXi Lagos uses multiple power sources, including utility and diesel generators. This incident reflects MainOne’s influence in Nigeria’s broadband and data storage market. With a roll call of the biggest commercial banks and internet providers as clients, MainOne “is internet in Nigeria,” someone familiar with MainOne’s business told TechCabal. In March 2024, MainOne suffered a major fibre cut in Ghana that knocked many major Nigerian banks offline. At least three chief technology officers (CTOs) of the affected banks visited the data centre on October 9 to inquire about the situation, one person with direct knowledge of the matter said. MainOne did not immediately respond to a request for comments. One person familiar with the matter said MainOne has set up redundancy to avoid future reoccurrences. A data centre redundancy is the “use of duplicate components to keep operations uninterrupted if some components fail and maintain uptime during maintenance.” For commercial banks who rely on MainOne as an internet provider, an outage of that nature affects their operations, especially online banking activities. At a time when most commercial banks are undergoing major technology changes that have affected millions of customers, a blackout at their internet service provider is a risk not worth having. Nigerian commercial banks operate in a low-trust environment and customers question their reliability whenever there is a service disruption.
Read MoreTraction Apps all-stock acquisition adds to string of investor-led deals creating quick wins
The acquisition of Traction Apps, a Nigerian fintech startup, by OmniRetail, the B2B e-commerce company that topped FT’s list of Africa’s fastest-growing startups, adds to a growing trend of VCs leading consolidations of startups to create bigger entities more likely to create outsized returns. This has played out in the acquisition of business banking startup Brass by a group of investors led by payment giant Paystack and the acquisition of digital trading fintech Chaka, which the acquirer, Risevest, another digital trading startup, disclosed was suggested by a mutual investor. Ventures Platform, an investor in OmniRetail and Traction Apps, confirmed that these deals were prompted by investors. The VC firm also played an active role in the Paystack-Brass deal and facilitated the acquisition of Traction Apps. “But the key decision on when and how to drive the process is mostly founder-led,” said Dotun Olowoporoku, managing partner of Ventures Platform. “Founders often use their judgment or tap into investor networks to help the process.” The Traction Apps acquisition, an all-stock deal, according to a spokesperson for OmniRetail, gives Traction App’s investors; Multiple Partners, P1 Ventures, Ventures Platform, Voltron Capital and others, stakes in OmniRetail, a B2B commerce startup reportedly valued at $65 million in its last funding round. OmniRetail declined to specify the value of the deal. It is also unclear what stakes Traction Apps’s investors will get in the acquisition. Nonetheless, as is common in some acquisition deals, the whole value is not fixed and some of it will be determined in the coming years based on how much value the integration of both companies produces. The opportunity to gain a significant slice of OmniRetail has stirred excitement in Traction Apps investors who believe this acquisition spells out exponential growth for OmniRetail, according to a source familiar with the matter. Optimistic Traction App investors are willing to make further investments in the newly formed entity, according to the same source. Ventures Platform declined to confirm this but agreed that “OmniRetail is a compelling company with significant potential for investors interested in this sector.” The thinking of these investors is that the integration of Traction Apps’s financial services and its network of merchants can explode the growth of OmniPay, a proprietary financial service that Omnibiz says has boosted its efficiency and profitability in the fast and moving goods services sector where margins range between 3% and 6%. “Just buying from distributors and selling to retailers did not have enough margin and benefits, but engaging with distributors on the platform and embedding working capital tools like OmniPay increased the value chain margin for us to hit profitability,” said OmniRetail CEO, Deepankar Rustagi, in an interview with TechCrunch. OmniRetail claims that by January 2024, it had attained 9% gross margins and 5% net contribution margins meaning that for every transaction worth $1 (~₦1,500), OmniRetail makes $0.05 (~₦75). The startup also claims to have broken even in earnings before interest and taxes (EBITA), contrary to many competitors operating at negative margins or attaining only breakeven net contribution margins. This acquisition gives OmniPay payment licenses of Traction Apps that would have taken a significantly long time to acquire from the regulator. Aside from collections, and supplier payment, Omnipay provides transaction data for generating credit scores for retailers who are otherwise unable to access financing from traditional lenders. Traction Apps which provides financing services to merchants can boost that segment. “OmniPay will be able to integrate directly into the payment switch and give us the ability to deeper understand the wallets of our merchants and eventually provide them a host of value-added services in Fintech will be a key benefit for us,” an OmniRetail spokesperson told TechCabal. The fintech’s value-added services—bill payments, insurance and loans will be instrumental for Omniretail as well, according to the spokesperson. Following the acquisition, the combined entity will service 180,000 customers in the wholesale and retail sectors, with annual transaction volumes projected at $1 billion and loan facilitation of $122 million annually. Mayowa Alli and Dolapo Adejuyigbe, founders of Traction Apps will remain in the company to lead the growth. The acquisition of Traction Apps is an interesting turn of events overall. The startup was initially working with OmniRetail as one of several financial services providers that enable payments and collections. “It’s on trend. Most of the B2B eCommerce players have been building fintech roadmaps and this acquisition will be catalytic for OmniRetail,” Mikael Hajjar, a managing partner at P1 Ventures, one of the investors in Traction Apps, told TechCabal. Hajjar also cited another company, Chari, a Moroocan B2B e-commerce startup that is making similar strategic acquisitions to scale. Chari has acquired two fintech startups to date: France-based Axa Credit, the credit brand of Axa Assurance Maroc and Moroccan fintech app Karny. This acquisition may attract fintech investors to OmniRetail which has been trying to raise money in a Series A round. In March 2024, CEO Deepankar said Goodwell VC and several development finance institutions (DFIs) have already committed $10 million. However, at GITEX Dubai, one of the world’s largest tech conferences, Dika Oha, OmniRetail’s chief innovation officer, shared that the startup has seen many interested investors decide against investing due to concerns about the effect rising inflation is having on the FMCG sector. This fintech play may change things for the company. This trend of companies centring fintech in their growth aligns with a 2019 prediction made by Angela Strange, a general partner at the prominent venture capital firm Andrew Horowitz, who forecasted that every company would eventually become a fintech company.
Read MoreKenya’s central bank fines UBA for breaching capital rules
The Central Bank of Kenya (CBK) has fined UBA Kenya for breaching capital requirements. The lender failed to meet the 8% minimum core capital-to-deposit ratio following continued losses, the bank said. UBA Kenya is among 12 commercial banks fined by the CBK for various regulatory breaches, as its core capital-to-deposit ratio fell sharply from 29.46% in 2022 to 7.92% in 2023 despite narrowing its losses. The bank reported a pre-tax loss of $2.6 million (KES344 million), down from $3.3 million (KES437 million). Commercial banks that also breached the rule alongside UBA include Housing Finance, a mortgage finance bank, and Development Bank of Kenya, a state-owned lender. CBK requires lenders to maintain a 10.5% floor for the core capital to risk-weighted assets ratio, 14.5% total capital to risk-weighted assets, and 8% for the core capital to deposits ratio. “Twelve commercial banks were in violation of the Banking Act and CBK Prudential Guidelines as at December 31, 2023, compared to thirteen commercial banks as at December 31, 2022,” the CBK said in its banking sector report. “Most of the violations were with respect to breach of single obligor limit due to depreciation of the Kenya Shillings against the US Dollar and decline in core capital in some banks that have continued to report losses,” the CBK said. Cash-strapped Spire Bank, which was acquired by Equity Group in 2023, and Consolidated Bank did not meet the core capital requirement of $7.7 million (KES1 billion) and also fell short of the 10.5% of the core capital to total risk-weighted assets rule. The breaches come even as the CBK plans to increase the minimum capital requirement for commercial banks tenfold to $77.8 million (KES10 billion). The move, which could prove challenging to small banks, will boost resilience to potential financial risks like increased cyber fraud threats and economic shocks, the CBK said in June.
Read MoreSterling Bank pitches SEABaaS, its custom core banking software to MTN MoMo, other banks
Sterling Bank, a Nigerian bank with a market capitalization of ₦115.16 billion, is pitching its new custom-built core banking application software, SEABaaS, to financial institutions and fintech companies. Two people familiar with the matter said the bank has pitched SeaBaaS to MoMo, MTN’s Mobile Money business. This is consistent with the bank’s plan to save costs by building its own core banking application software and then licensing it to other banks and financial institutions. People familiar with the matter said Sterling is also pitching to fintechs because SEABaaS was built to give Sterling Bank the nimbleness of a fintech. Sterling has been more adventurous than other banks in its category, creating asset financing products, focusing on sleek user experience on its banking app, and launching Alternative Bank, a non-interest bank. With several products and even more in development, Sterling hopes to convince fintechs who want to move fast and break things that SEABaaS is perfect for them. Sterling Bank and MTN MoMo did not immediately respond to a request for comments. Beyond the fintechs, it also hopes to attract business from other banks. With tier-1 banks billed to spend ₦80 billion on licencing fees for core banking software in 2024 alone, SEABaaS may be a cheaper offering. Yet, people familiar with the matter say the banks will not be an easy sell. “Most banks will likely wait it out until they see how SEABaaS handles end-of-year operations,” one person familiar with banking technology told TechCabal. For banks, the end of the year is a crucial period where accounts have to be balanced and transactions reconciled in preparation for the new year. SEABaaS was jointly built by Bazara Tech Inc, Peerless Technologies, and a third company that has not yet been disclosed. It is unclear how much Sterling spent to develop the software, but the bank was keen to localise cost, people familiar with the matter said. Banking software like Finacle and Temenos are priced in dollars. It will likely make some inroads with tier-2 banks keen to localise costs.
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👨🏿🚀TechCabal Daily – A Sterling sales pitch
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! The Future is Female Mentorship Programme, a media and PR training programme, announced its 20 female finalists for the 2024 edition. Healthcare, AI, agritech, and climate tech startups stood out in the latest announcement. In other news, Apple is about to announce its smallest computer ever. The Apple Mac Mini, introduced in 2005 as the most affordable Mac in Apple’s lineup, is about to get even smaller. The size of the PC, which has not changed much since inception, will now become as small as the size of a DVD case. The shrink in size of the Mac Mini is thanks to Apple’s new M4 chip. The company also plans to release new versions of its devices with the M4 chips in the coming months, including iMac desktop and MacBook Pro. Sterling Bank pitches its core banking software to other banks, fintech NCC cautions Starlink for price hike Stanbic Kenya finalises core banking software upgrade World Wide Web 3 Jobs Banking Sterling bank pitches its core banking software to other financial institutions Image Source: Andertoons Let me tell you the most shocking thing I heard last week: core banking software—the pesky stuff banks buy so we can send money to each other—costs about ₦25 billion per year ($15.3 million). Yet, it’s a drop in the ocean for Nigeria’s biggest banks. These banks will only spend 1% of their half-year revenue on core banking costs. Yet, not everyone is a tier-1 bank. When you’re not valued at trillions of naira, you may not always want to splash the cash on core banking software. Sterling Bank, for example, chose to build its own banking software. But building a banking software from scratch is also expensive. That’s where other plans come in, like selling the software to other banks and grabbing a share of those billions they spend. Look out for my article later today on who Sterling is already speaking to. 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. Telco NCC cautions Starlink for price hike Image Source: Google On October 1, 2024, Starlink surprised its Nigerian customers by doubling subscription prices. The satellite internet service provider increased its residential plan from ₦38,000 ($24) to ₦75,000 ($48). While Starlink chalked up price increases to macroeconomic conditions, the Nigerian Communications Commission (NCC) said the company didn’t get regulatory approval for the price increase. One person with knowledge of the matter claimed Starlink wrote the NCC for approval to increase prices but did not wait for a response before implementing new prices., The NCC ordered Starlink to halt its price increase because it contravened “Sections 108 and 111 of the Nigerian Communications Act (NCA), 2003, and Starlink’s Licence Conditions regarding tariffs.” While Starlink reversed the price increase, the NCC isn’t done yet. The NCC will demand a formal response on why Starlink did not wait before increasing prices, familiar with the matter said. 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. Banking Stanbic Kenya cops latest Temenos technology in core banking upgrade Image Source: Google Stanbic Bank Kenya, a Kenyan subsidiary of the Stanbic IBTC Holdings, recently announced that it upgraded its core banking software from Temenos T24 R17 to the newer cloud-based T24 R23. The vertical core banking switch, which started early in 2024, was finally completed on October 21. The bank suffered downtimes during the upgrade, which is now par for the course for many banks that are switching core banking platforms. Banks improve their technology to make its lending and banking services better. This tech upgrade made sense for Stanbic Bank Kenya as it plans to deal with emerging cyber threats which have been haunting Kenyan banks. Ecobank Kenya and Equity Group were previously targets in card fraud schemes where fraudsters stole millions of dollars. Stanbic Bank Kenya is one of the moderately large banks in the country with 266,000 customers and controlling 5.8% market share in the lending business. The new T24 R23 platform provides core banking capabilities across account management, loans, payments, and transfers. It also offers quick customisation features specific to the bank’s needs by only writing a few lines of Java codes. Stanbic Bank Kenya started using the Temenos technology in 2010. R23 is Stanbic’s bet to provide faster banking services to its customers. Yet, it is unclear if the tech upgrade applied to other banks in Stanbic IBTC Group’s portfolio—which operates banks in 20 countries. For instance, the Stanbic Nigeria bank experienced a 24-hour downtime on October 10 where customers were not able to use their bank apps. The Nigerian lender has not confirmed if this was also due to a core banking switch. 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 $67,576.39 + 0.71% + 2.44% Ether $2,475.45 – 0.14% – 8.00% AI Companions $0.09699 + 2.38% – 1.66% Solana $173.33 + 0.38% + 9.65% * Data as of 06:00 AM WAT, October 28, 2024. Jobs Platos Health – Product Marketing Manager – Lagos, Nigeria CredPal – Mid-level Backend Developer – Lagos, Nigeria Flutterwave – Backend Engineer, Frontend Engineer, Compliance Officer – Hybrid (Lagos, Nigeria) Jobberman Nigeria – Digital Marketer – Lagos, Nigeria KPMG Nigeria – Strategy Consultant – Abuja, Nigeria Renmoney – Growth Manager, Head of Legal & Compliance, Head of Contact Centre –
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Next Wave: Open banking may harm borrower welfare by favouring fintech lenders
Cet article est aussi disponible en français <!– In partnership with –> First published 27 October, 2024 If one discussion was very prominent to attendees at TechCabal’s Moonshot and stuck with me, it was that the world is moving toward an open-data economy driven by advances in digital technology. Instead of isolating customer data within single organisations, it is now becoming more accessible to third parties—but only with customer consent. This shift shows recognition of customer ownership over their data and the ability to choose how and with whom it is shared. A vital example of this trend is open banking—a hot topic discussed during the conference. Led by governments in countries like the United Kingdom and introduced in Africa by Nigerian fintech and banking executives, open banking represents a major step toward data openness. While regulators, in this case, the Central Bank of Nigeria (CBN), have yet to give it a nod, many experts believe it will be one of the most transformative developments in the banking industry over the coming decade. Although open banking aligns with Nigeria’s broader focus on consumer privacy, as seen in regulations like the Nigerian Data Protection Act 2023, its purpose goes beyond data protection. Open banking empowers customers to voluntarily share their financial data with other entities, facilitated by technology such as application programming interfaces (APIs). Next Wave continues after this ad. Join us at the Bluechip AI & Data Summit 2024 on December 2nd in Lagos! Explore the future of Africa through AI and data-driven solutions. Connect with industry leaders, attend expert panels, and discover innovations reshaping finance, healthcare, and beyond. Don’t miss this opportunity. JOIN US In April 2019, Deloitte Insight surveyed the concept of open banking. I found its description quite compelling, considering every expert defines open banking differently: say a customer is interested in a financial product from a provider outside their bank—like a digital lending app built by a fintech company. To work effectively, this product needs access to customer bank data: their income, spending, accounts, and transactions. With open banking, you can instruct this customer bank to share this data with the other provider. The same customer can stop sharing at any time—no strings attached. This approach empowers customers to control who accesses their financial information, potentially reshaping competition and consumer choice in the credit market by enabling fintech and other institutions to offer tailored financial products. Can open banking prevent borrowers from being negatively impacted by data sharing? Under open banking, borrowers—not lenders—control who accesses their financial data, shifting the power balance in lending decisions. This model has significant implications, especially for competition and borrower welfare. Let’s consider a traditional bank and a fintech lender competing for the same borrowers. Traditional banks, with their vast data from customer accounts and transactions, have an advantage in assessing creditworthiness. Fintechs, on the other hand, rely on limited data—often sourced from social media and online profiles—but have superior data analysis algorithms. However, these algorithms cannot surpass traditional banks’ screening ability without sufficient data. In a world without open banking, the bank would generally screen borrowers more accurately. Open banking can level the playing field by enabling borrowers to share their bank data with fintechs, potentially making fintech a formidable “rival” to the traditional bank. This data-sharing can boost fintechs’ screening capabilities, possibly even allowing them to surpass banks in identifying high-quality borrowers, especially when combined with the fintech’s own data sources. Next Wave continues after this ad. Calling all innovators! The Payaza Hackathon 3.0 is here, with the theme “AI-Powered Financial Inclusion for MSMEs.” Assemble your team of no less than 3 or more than 5 to develop fintech solutions that empower small businesses. Prizes: $5,000 and 10 weeks in the Payaza Incubator Program for the winner, $3,000 for 1st runner-up, $1,500 for 2nd runner-up. Apply now. This development in fintech screening can have two outcomes. First, better screening allows fintechs to distinguish high-quality borrowers from low-quality ones better. This benefits high-quality borrowers, who are more accurately assessed, but can hurt low-quality borrowers, who are less likely to receive favourable loan terms. Secondly, improved fintech screening can shift the dynamics of competition. If fintech narrows the screening gap with banks, competition increases, which can borrowers with better rates. However, if fintech gains too much of an advantage, this can undercut competition, ultimately driving up lender profits and leaving borrowers worse off. Open banking’s well-sold benefits—greater competition and borrower choice—may backfire if a fintech’s advantage grows too strong. After all, borrowers should theoretically avoid actions against their own interest. A troubling scenario may also emerge: if some borrowers face barriers to opting in (due to unfamiliarity with the technology, privacy concerns, or high perceived costs), an important equilibrium can arise. In this case, a disproportionate number of high-quality borrowers sign up to share data, unintentionally increasing lender asymmetry. This would leave both high- and low-quality borrowers worse off than before, as those who sign up suffer from reduced competition and those who don’t face the stigma of presumed low credit quality. It is a dilemma that surely needs to be explained better. Next Wave ends after this ad. PalmPay is a leading fintech platform focused on driving economic empowerment across Africa. Trusted by over 35 million Nigerians and 1.1 million businesses. Start enjoying a 99.9% transaction success rate with Palmpay. Sign up here. Kenn Abuya, Senior Reporter, TechCabal. We’d love to hear from you Psst! Down here! Thanks for reading today’s Next Wave. Please share. Or subscribe if someone shared it to you here for free to get fresh perspectives on the progress of digital innovation in Africa every Sunday. As always feel free to email a reply or response to this essay. I enjoy reading those emails a lot. TC Daily newsletter is out daily (Mon – Fri) brief of all the technology and business stories you need to know. Get it in your inbox each weekday at 7 AM (WAT). Follow TechCabal on Twitter, Instagram, Facebook, and
Read MoreFixing cross-border payment challenges: Progress is happening, but we need to move faster
This article was contributed to TechCabal by Dr. Austin Okpagu. We’ve all heard the projections: by 2050, Africa will account for a quarter of the world’s population, with Nigeria leading as the most populous country on the continent. But population growth alone isn’t enough to drive economic transformation. A Nigeria that everyone—businesses, consumers, and citizens—can be proud of requires more than just numbers; it needs a robust payment infrastructure, consistent policies, and effective governance that supports businesses. Most crucially, we must resolve the barriers to cross-border payments that hinder trade across the continent to create a thriving environment for both local businesses and global investors. The inability for companies to seamlessly trade and move money across Africa hampers their growth; pushing the continent to trade more with the rest of the world. This in turn causes global companies to exit Nigeria which not only harms businesses but weakens the economy as a whole. As international firms leave and local companies struggle to scale, Nigeria becomes increasingly reliant on imports, further straining its economy. The trade numbers highlight a concerning trend: Nigeria is increasingly dependent on imports from countries like China, while trade with other African nations, such as Kenya, continues to decline. This highlights a broader issue—that Africa increasingly trades more with the rest of the world than within the continent itself. Strengthening the country’s position in the global market will require deliberate actions, starting with addressing the root causes of the longstanding cross-border payment challenges. This is a challenge Verto is tackling head-on, processing payments in more than 170 countries, with offices in Nigeria, Kenya, South Africa, and the UK. One key obstacle is the inconsistency in policies across different political regimes. The policies set by one administration often differ from those of the next, with little to no continuity. This creates significant loopholes and ultimately erodes confidence among businesses and investors alike. Another significant challenge is the lack of currency interoperability within the region. Like other African business owners, Nigerian entrepreneurs often need first to convert Naira into US Dollars to trade with other African countries, adding an extra layer of complexity and cost. These barriers place a considerable burden on businesses and hinder both regional and global trade. Many founders and CEOs we’ve engaged express frustration over how these challenges limit their ability to scale effectively across Africa. Tax policies also contribute to the problem, particularly the collection of multiple taxes. Nigerian businesses face over 30 different taxes, creating a substantial burden. The current government deserves credit for pushing tax reforms to harmonise these into a single system. A recent bill before the National Assembly proposes renaming the Federal Inland Revenue Service (FIRS) to the National Revenue Service or Commission, addressing the issue of multiple agencies—FIRS, Customs, and others—collecting taxes. This fragmented system has been a major headache for businesses. The government has recognized this and established an ad-hoc committee to streamline processes to create a single tax agency. However, the issue extends beyond Nigeria and affects intra-Africa transactions. When a company moves money to another African country, such as Kenya, additional taxes are imposed on the incoming funds. Ideally, a single tax system across the region would eliminate further taxation after paying taxes in one country, such as Nigeria. Governments could establish tax-sharing agreements to alleviate this burden on businesses. Currently, companies headquartered in Nigeria but operating in Kenya, for example, face taxation in both countries, increasing the cost of transactions, products, and services. This tax burden plus other macro-economic factors have contributed to companies shutting down operations across the continent, as seen with MTN’s recent exit from two African countries. These issues have persisted for too long. Progress has been made, with fintechs like Verto actively addressing cross-border payment challenges and streamlining transactions for both intra-African payments and international transactions. But we must accelerate these efforts to attract more investment and fully capitalise on Africa’s youth and population boom. Apart from tax harmonisation, which is an obvious solution to one of the challenges, a key step for private organisations is to have a unified voice in holding the government accountable. Currently, there is a lack of cohesion within Nigeria’s tech community, with different groups operating in silos and no strong alliance. The government recently proposed a cybersecurity levy that could have been devastating for businesses had it gone through. While the tech and business communities pushed back, it wasn’t done as a unified front—it was led by individual influencers, different pressure groups, and others, aided by the fact that the Minister of Communications, Innovation, and Digital Economy comes from the tech ecosystem. Although the pushback succeeded, it highlighted the need for a stronger collective voice and the ongoing need to hold the government accountable for its actions and policies. It’s encouraging to see that the sector is working to form a ‘Tech Ecosystem Alliance,’ which aims to unite startups across industries—fintech, agritech, and others—under one umbrella. I hope this effort is realised. Such an alliance could engage the government, influence policy, and ensure that proposed changes are properly evaluated for their impact on the tech ecosystem. In addition to fostering better collaboration, the government is encouraged to engage stakeholders before issuing circulars or implementing policies. Recent instances, like the unanticipated hike in petroleum prices, have caused significant disruption to businesses. A more consultative approach with the private sector would ensure policies are thoroughly reviewed, preventing unintended consequences and supporting sustainable growth across industries. There has been ongoing discussion about adopting a single currency within the region, similar to the Euro in Europe. The idea is simple—trade should occur seamlessly across African nations. While not an exact parallel, the Pan-African Payments and Settlement System (PAPPS) is making progress toward enabling African countries to trade directly using their local currencies, reducing reliance on Dollar conversions. Although this is a promising concept, its implementation must be accelerated. Verto already contributes by enabling businesses to trade and make payments seamlessly through a single, transparent platform. Their partnerships with
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Starlink reverses price increase in Nigeria three weeks after NCC directive
Starlink, the SpaceX-owned satellite internet company, has reversed its decision to double its base subscription prices in Nigeria three weeks after Nigeria’s communication regulator blocked the increase. The company increased the standard residential plan with a 1 TB fair usage policy to ₦75,000 ($48) from ₦38,000 ($24). Roaming Starlink customers faced the most significant price hikes; local roaming, which allows customers to use Starlink kits beyond their homes or workplaces within Nigeria, was increased to ₦167,000 per month, up from ₦49,000. International roaming was raised to ₦717,000 per month. The new rates were meant to take effect from October 31st. While Elon Musk posted on X that Starlink’s subscription prices are adjusted for inflation, Nigerian regulators have pricing guidelines for Internet Service Providers (ISP) and have also blocked requests from other internet service providers to increase data prices. In a statement shared with TechCabal, the regulator said that Starlink did not “receive the approval of the Nigerian Communications Commission (NCC).” The commission added that Starlink’s action contravened “Sections 108 and 111 of the Nigerian Communications Act (NCA), 2003, and Starlink’s Licence Conditions regarding tariffs.” It asked Starlink to reverse the price increase or risk sanctions. Starlink Availability Map Breaking: Starlink doubles subscription price in Nigeria to ₦75,000
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The Future is Female Mentorship Programme announces 20 finalists for its fifth edition
The Future is Female Mentorship Programme, a public relations (PR) and communications training programme offered exclusively to female founders, has announced 20 finalists for its fifth cohort. These finalists were selected from hundreds of applications across Africa which closed on July 31. Finalists include early-stage startups in healthtech, AI, cleantech, agritech, and logistics, with use cases in their target markets. The Future is Female Mentorship Programme was founded in 2020 by Claudine Moore, Africa’s managing director at the PR firm Allison, and founder of C.Moore Media. The annual programme is organised in partnership with several media and communications companies and investors in female-led businesses to provide media training to female founders. Salesforce Ventures Impact Fund, the impact investment arm of Salesforce, TechCabal, Africa Communications Week, and startup database company F6S partnered for this year’s edition. “In five years, we have supported hundreds of African female tech founders and are delighted to have support from long-term partners. We remain committed to scaling the initiative with supporting African female founders as our priority objective,” said Moore. As part of the training, Claudine Moore will lead the first masterclass, joined by Africa Communications Week co-founders, Annie Mutumba and Eniola Harrison. TechCabal will lead masterclasses on how to work with the media. Salesforce Ventures Impact Fund will teach about venture capital funding. The selected finalists for the 2024 program come from different African countries. These founders are: Morocco Adjayi Cyrus, founder of My Steps, an incentive-based health-tech app that rewards users for maintaining daily health routines through eco-friendly mobility. Nassima Ben, founder of Feizhoucom, a startup building technology products, software solutions, and mobile apps for startups in Morocco. Rwanda Aline Nicole Uwamariya, founder of Geuza, a startup using electronic plastic waste and 3D technology to create prosthetics and crutches for disabled people in Rwanda. Kenya Becky Kirima, founder of INVA Solution, a startup providing comprehensive virtual assistance tailored specifically for individuals with attention deficit disorder (ADD). Maureen Macharia, Founder of Cluzar, an AI-powered customer feedback and market research startup enabling organizations to connect and gather insights from current and potential consumers. Nigeria Kieva Chris-Amusan, founder of Fertitude, a digital platform that provides women with on-demand & stigma-free access to reproductive health information, products, and services. Folashade Adegbite, founder of Harmonics, a startup building technology products, software solutions, and mobile applications for startups. Omolola Solagbade, founder of Zendit, a logistics tech platform that connects businesses to multiple and affordable courier options Kikelomo Owoyale, founder of SheFoundry, a gender-lens technological company contributing to bridging financial and fundraising gaps for women founders and entrepreneurs Tolu Ajibola, founder of HerSynergyTribe, a network focused on empowering mid-level women in tech in the EMEA region by providing resources, mentorship, and networking opportunities aimed at career advancement and personal growth. Roddiyyat Nasirudeen, founder of OpenHealth, a HealthTech platform addressing the critical issue of accessibility and quality by leveraging AI technology. Omowumi Omidiji, founder of SouqOS, a B2B cross-border supply chain management platform that streamlines diaspora-Africa trade by providing services for sourcing, logistics, warehousing, escrow, and embedded finance. South Africa Vwanganji Amatende-Bowa, founder of Tsehla Holdings, a startup that focuses on climate-smart agriculture through hydroponic farming Zimbabwe Priscilla Chigariro, founder of The Driven Group, a premium lifestyle startup curating events, restaurants, hotels, and experiences for users in Zimbabwe Ghana Ruth Nduta, founder of Africa HackNest, an edtech startup leveraging AI to provide capacity development training for organizations in Ghana. Ama Dadson, founder of Akoobooks, a platform and experience provider focused on transforming African books into engaging audiobooks that reach new audiences on mobile phones. Roxanne Oduro, founder of Merdeo, a cloud-based agritech startup leveraging data analytics to streamline operations for restaurateurs while providing farmers with access to markets Ethiopia Begashaw Meberate, founder of Bfarm-Tech, a digital startup providing rental threshing services for smallholder farmers in Ethiopia. Beamlak Alemayehu, founder of Medanit, a startup providing medication delivery, doctors’ appointments system, telemedicine, mental health consultation and Ethiopia’s first all-in-one medical directory system. Tunisia Nada Ghammem, founder of Bionic Soul, a startup manufacturing advanced bionic prosthetics that enhance the mobility and quality of life for amputees in Tunisia.
Read MoreStanbic Bank Kenya finalises core banking software upgrade as system glitches ease
Stanbic Holdings Plc, Kenya’s sixth-largest bank with a market capitalisation of KES 49.14 billion ($381 million), has finalised an upgrade of its core banking application, Temenos 24 (T24 R23). Last week, the bank informed its over 266,000 customers of service disruption across its banking channels between October 19 and 21 due to the upgrade. On October 23, five customers told TechCabal they couldn’t access their accounts or make transfers after the said deadline. Temenos 24 is used by over 950 banks worldwide, including Kenya Commercial Bank (KCB), mainly for retail, business, corporate, and wealth management. The application, owned by Swiss company Temenos, was upgraded in partnership with US-based Orion Innovation, a digital transformation specialist, Stanbic said. “We have upgraded from T24 R17 to T24 R23. R23 is the latest release, and we are among the first banks to upgrade globally,” Stanbic told TechCabal in a statement. While the current upgrade has been the most impactful with robust security features, Stanbic began upgrading its core banking platform in early 2024, two banking executives told TechCabal. Temenos was upgraded to version R17 in May 2024, adding cloud-based digital banking features. “We continue to monitor the system for any incidences and to ensure that it’s performing at an optimal level,” the bank said. The disruptions show the complexity of upgrading core banking systems, which has forced Kenyan banks to invest in new talent to address technical issues. In 2023, NCBA, a tier-1 bank with a market cap of KES 72.9 billion ($565 million), increased its IT staff costs by 30% as competition for talent among banks, telcos, and big tech corporations heats up. Equity Bank also reported that its staff costs had gone up by 32% after sinking in more resources in the tech departments. “Kenyan banks are aggressively hiring techies and data scientists,” one mid-level bank executive who asked not to be named told TechCabal. Developing an in-house core banking platform allows banks to have greater control over customisation and data security, a manager at a rival bank told TechCabal. However, it can also be costly and cumbersome, the same manager said, so banks, like Stanbic, choose to outsource core applications for access to expertise and cost efficiency. “Integrations are complex due to the outdated technologies of many banks. There are also cases of managing multiple stakeholders in a bank whose differing priorities can delay upgrades,” a bank manager told TechCabal.
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