New SASSA SRD April payment dates and procedures 2024
Like the SRD, the South African Social Security Agency (SASSA) has unveiled the payment schedule for various grants in April 2024. Beneficiaries can expect their funds to be deposited according to the following breakdown: Senior Beneficiaries Older Persons SASSA SRD Grants payment will be starting Wednesday, April 3, 2024. This includes any linked grants associated with these accounts. Disability Grant Recipients dates for April Look forward to receiving the SASSA Disability Grants payment on Thursday, April 4, 2024. This disbursement also covers any linked grants in your account. SASSA Children’s Grant Payment Schedule for April Children’s Grants will be accessible on Friday, April 5, 2024. Remember, there’s no need to rush to the bank on the first day of payment. Once the funds are deposited, they’ll remain readily available in your account for your withdrawal convenience. Plan Wisely, Manage Responsibly The South African Social Security Agency SASSA encourages beneficiaries to exercise responsible financial management. Remember, these grants are intended to support essential needs. Why Your SASSA SRD Payment Might Be Delayed Verification Delays: Even if approved, Sassa may still be verifying your application. This can take time. Bank Issues: Incorrect bank details or an exceeding bank balance can hold up your payment. Technical Problems: High application volumes or technical glitches can cause processing delays. Missing Information: Incomplete applications with missing details may need correction before payment. Stay Updated on SASSA SRD Payment April The South African Social Security Agency (SASSA) recommends that beneficiaries seeking updates on the SASSA SRD payment should regularly check the official SASSA website (www.sassa.gov.za) or follow their social media channels (@OfficialSASSA) for the latest announcements. For any inquiries or assistance related to your grants, including the SASSA SRD payment in April, you can contact SASSA’s toll-free number: 0800 60 10 11. By staying informed and managing your grants responsibly, you can maximize the benefits these programs offer.
Read MoreAccess Holdings to raise $1.8bn ahead of Nigerian banks’ recapitalisation
Access Holdings the parent company of Nigeria’s largest bank by asset base, Access Bank, plans to raise $1.5 billion (₦2.09 trillion) through a bond or share sale and a further $287 million (₦399.9 billion) from its shareholders via a rights issue to fund its ambitious growth plans as well as meet up with a new capital requirement by the Central Bank of Nigeria. In a circular sent to banks seen by TechCabal, the apex bank increased the minimum capital requirement to $364.56 million or naira equivalent of ₦500 billion by March 31, 2026, to address rising macroeconomic challenges in Africa’s largest economy. “The prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks have underscored the need for banks to raise and maintain adequate capital to enhance their resilience, solvency, and capacity to continue to support the growth of the Nigerian economy,” CBN said in a circular on Thursday. Access Bank, Nigeria’s third most capitalised bank with $190.6 million (₦251.8 billion), would need to raise an additional $187.8 million (₦248.1 billion) to meet the new recapitalisation requirements of the central bank. On Thursday, the Holdco, Africa’s largest consumer bank, said that it will ask its shareholders to authorise the plans at an annual general meeting set for April 19. Access’ wants to raise part of the funds by increasing its issued shares from ₦17.7 billion to ₦26.6 billion. The company has asked for regulatory authorisation to raise capital of up to ₦365 billion by way of a rights issue on such terms and conditions and on such dates as may be determined by the directors. Access’ decision to recapitalise comes amid a rapid expansion in Africa, including a recent acquisition of Kenya’s National Bank of Kenya (NBK) from KCB Group in a deal estimated at $100 million. Paul Russo, KCB Group CEO, revealed that keeping NBK would have required the bank to inject up to $60.7 million, despite sinking $106.3 million since buying it in 2019. The war chest will allow Access to expand its footprint in East Africa’s largest economy with the NBK acquisition. Already, the bank has operations in 15 African countries with a keen interest in revving up its presence and becoming the largest bank on the continent by 2027.
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Who calls the shots at women-focused startup Herconomy?
Since its founding in 2021, Herconomy claims to have amassed over 10,000 active users. The startup is not just a female-led fintech but also a community initiative. Ife Durosinmi-Etti, an author and a 2016 recipient of the Tony Elumelu Foundation Entrepreneur Award leads as the founder and CEO. In 2010, a report by the National Financial Inclusion Strategy (NFIS) revealed that out of 39.2 million financially excluded individuals in Nigeria, 54.4% were women. This alarming statistic prompted the rise of fintechs aiming to bridge this gap, among which Herconomy emerged as a “female-focused” fintech startup. Herconomy’s roots trace back to the “AGS Tribe”, a community launched following the acceptance of Accessing Grants for Startups, a book authored by Durosinmi-Etti. The book contained information on how to access grants, fellowships and scholarships. According to Durosinmi-Etti, more people asked about new opportunities which led to the need to form a community for easier means of communication and sharing opportunities. The community’s growth led to the development of an app for hosting savings challenges, marking the company’s pivot to financial services when integrating a savings API proved challenging. “I am a solo founder but I’ll say our community started Herconomy,” Durosinmi-Etti said. With an overall size of 23 staff members, the company operates a hierarchical structure, with Genevive Obi as the Chief Operating Officer (COO) and Dolapo Sanusi Ola as the Chief Financial Officer (CFO). Both report directly to Durosinmi-Etti, founder and CEO. Obi, who has experience in marketing communications and relationship management, shapes the company’s strategy. She manages performance and oversees annual operations planning. Dolapo Sanusi Ola, also a co-founder of Nest Agribusiness and Technologies, oversees Herconomy’s financial operations. The structure includes middle management, with Gbemisola Araba serving as the People Operations Manager. Araba served as a Human Resources officer at Herconomy between 2020 and 2021. Anu Oyeleye, who has previous experience as a product management consultant at Begine Fusion and as a product marketing analyst at Access Bank, is the Product Manager at Herconomy. Both report to Obi (COO) and Ola (CTO). “We also have supervisors reporting to their managers, and at the operational level, staff who report directly to the supervisors,” Ife explained. Driven by the belief that the community’s input is instrumental in shaping its path, Herconomy lives by the mantra “the community calls the shots,” as affirmed by Ife. This TechCabal org chart details the leadership structure of Herconomy. If you would like to showcase the leadership structure of your startup in this way, contact the author of this article: towobola@bigcabal.com.
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👨🏿🚀TechCabal Daily – Meta caught spying on Snapchat, Youtube and Amazon
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy Friday Remember Sam Bankman-Fried, the founder of the now-defunct crypto exchange—FTX Trading Ltd—who was convicted in November 2023, of orchestrating a massive fraud that led to the collapse of his FTX exchange, and the loss of about $10 million in customer money? Well, a Manhattan federal court has sentenced Bankman-Fried to 25 years in prison, and he has been ordered to give up $11 billion in assets as part of his punishment. In today’s edition Nigeria plans to limit data collection by digital lenders Detained Binance executives sue Nigerian agencies Meta caught spying on Snapchat, YouTube and Amazon Funding tracker The World Wide Web3 Events Fintech NDPC investigates over 400 data breach cases involving loan apps Nigeria’s Data Protection Commission (NDPC) had a busy 2023. Asides earning over ₦400 million ($287,044) in revenue for the year, it also investigated three big companies—Opay, Meta and DHL—amongst others, for data infractions. Now, the Nigerian digital lending sector is under the NDPC’s scrutiny. The watchdog is investigating 400+ cases where lenders accessed borrowers’ private information without consent—a violation of the Nigeria Data Protection Act (NDPA) of 2023. What has the NDPC found? Its investigation reveals that loan apps are “overly intrusive,” collecting unnecessary data despite Google’s policy changes which restricted loan apps on its Play Store from accessing users’ photos and contacts in April 2023. The NDPC now seeks to restrict or ban phone numbers used by lenders for such breaches. To address this issue, the NDPC has adopted a multi-faceted strategy: teaming up with regulators and platforms to deny access to lenders misusing data. The NDPC is also drafting the Nigeria Data Protection Act-General Application and Implementation Directive (NDPA-GAID) to address data ethics and hold third-party platforms accountable for breaches. Additionally, the NDPC will work with the Federal Competition and Consumer Protection Commission (FCCPC) to ensure lenders obtain data protection clearance before operating. Zoom out: The Nigeria data protection framework empowers NDPC and the National Information Technology Development Agency (NITDA) to fine entities violating the Act, with penalties directly linked to the severity of data protection breaches. Fines range from ₦2million ($1,435) to ₦10 million ($7,176), or 2% of the company’s annual gross revenue of the preceding year. In August 2021, NITDA fined Soko Loan ₦10 million ($7,176) for illegal data tampering with users’ private data. Experience fast and reliable personal banking with Moniepoint Give it a shot like she did . Click here to experience fast and reliable personal banking with Moniepoint. Crypto Detained Binance executive sues NSA, EFCC After Nigeria restricted users’ access to the website of Binance, the global crypto exchange, two of its top executives—Tigran Gambaryan and Nadeem Anjawarlla, regional manager for Binance in Africa—flew into the country to resolve the dispute. On arrival into the country, the office of Nigeria’s National Security Adviser (NSA) seized the travel documents of both officials, detaining both executives without any criminal charge. Both executives remained in detention for more than two weeks before Anjarwalla, fled the country using a smuggled passport. Gambaryan, the remaining Binance employee left in detention is now looking for respite. Tigran Gambaryan has filed a lawsuit against the NSA and the Economic and Financial Crimes Commission (EFCC) for violating his fundamental human right to liberty by detaining him and seizing his travel documents. Per Gambaryan’s lawsuit, the seizure of his travel documents and detention violated Section 35 (1) and (4) of Nigeria’s Constitution, which safeguards the freedom of movement for all persons. The suit aims to halt the detention of Gambaryan for investigations related to Binance. The former crypto-focused US Federal Agent is seeking release from detention and return of his travel documents. Gambaryan also wants a public apology from the NSA.Gambaryan’s case has been adjourned to April 8, 2024. In other news, Nadeem Anjawarlla also filed similar charges against the NSA and the EFCC. However, lawyers representing Anjawarlla have bailed out of the case, leaving him without legal representation. Anjawarlla’s case has been adjourned till he gets legal backing. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Regulation Meta caught spying on Snapchat, YouTube and Amazon Curiosity isn’t just for cats anymore. In a bid to outlive its competitors, Meta has discovered a newfound interest in what other social media platforms are up to. The news: New court documents show that Meta, owners of Facebook, Instagram, and WhatsApp, has been spying on Snapchat’s web traffic. How? The court document revealed that in 2016, Meta—then Facebook—launched a secret project, stylised “Ghostbusters”, to acquire, decrypt, transfer, and use private, encrypted in-app analytics from Snapchat, YouTube, and Amazon. Mark Zuckerberg was at the helm of the plan. Court documents show that Zuckerberg, Meta’s leader, via an email correspondence with three other top executives, launched a query into Snapchat’s numbers and users’ activities due to how fast the company was growing and the difficulty in getting its metrics. At the time, Snapchat had grown from 100,000 daily active users about a year after its launch in 2011 to 158 million by 2016, with Facebook at 1.86 billion users. Javier Olivan, now Facebook’s COO, was sold on the plan as well. Together with Guy Rosen, CEO of Onavo, a web analytics company owned by Meta, they cracked the code and figured out a way to extract users’ data from Snapchat. Meta intercepted users’ data from their phones before it reached Snapchat’s servers, a technique known as SSL bumping. Meta continued spying on Snapchat users’ data from June 2016 until early 2019. Spying on Snapchat wasn’t enough. Meta also engaged the tech in spying on competitors, YouTube and Amazon between 2017 and 2018, extracting useful decision-making information in the process. Meta now faces a lawsuit for “anti-competitive conduct and exploiting user data through deceptive practices.” Accept
Read MoreCentral Bank of Nigeria withdraws Cellulant’s mobile money licence as company focuses on payment solutions
The Central Bank of Nigeria (CBN) has revoked the mobile money licence of Cellulant Nigeria, a subsidiary of one of Africa’s oldest fintech companies Cellulant Corporation, according to a letter addressed to the company and seen by TechCabal. The revocation took effect on December 6, 2023. Cellulant is therefore leaving the consumer-facing mobile money market to focus on providing payment services to businesses. The company told TechCabal via email that it decided to exit the mobile money space and focus on providing solutions “as far back as 2021”. This informed its procurement of a Payment Solution Service Provider (PSSP) licence from the CBN, which has been issued and is now operational. “The regulator did not revoke the licence as a result of infractions or any breach. The CBN succeeded in gazetting this request in December 2023, occasioned by the time it took them to conclude the process of revoking the mobile money license as requested by Cellulant,” Cellulant said in the email. The CBN in the aforementioned letter addressed to Cellulant said it was revoking Cellulant’s mobile money licence, “following [Cellulant’s] decision to discontinue operating the licence”. The company, which raised $54.5 million in three funding rounds between 2014 and 2018 from investors like The Rise Fund, has hit a rough patch lately. After an out-of-court settlement of a long-drawn leadership tussle with its former co-founder, Bolaji Akinboro, Cellulant has struggled to stabilise its operations and raise new funding. In 2023, Cellulant saw the need to restructure its business, including reducing the headcount by 20% in August. In December, the company’s CEO Akshay Grover, stepped down citing personal reasons. That exit also led to another round of layoffs in the company and the announcement of an acting CEO.
Read MoreHow CAF president Patrice Motsepe could impact Canal+’s bid for MultiChoice
Patrice Motsepe, the president of the Confederation of African Football (CAF) and one of Africa’s richest persons, is reportedly in talks to join Canal+’s bid for MultiChoice. Motsepe’s involvement could impact the deal in numerous ways as Canal+ looks set to traverse the numerous business and regulatory hurdles standing in its way. According to companies’ regulations in South Africa, a foreign entity cannot have more than 20% of voting rights in a South African broadcasting company. Mpumelelo Ndiweni, CEO of Colmin Group, an African markets advisory and investment company, told TechCabal that the CAF president’s involvement could help Canal+, a French company, to bypass this requirement. “The coming on board of [Motsepe] would ensure Multichoice remains in South Africa and meets the threshold of local ownership required by authorities,” he said. Sherilyn Kamga, a senior strategic finance analyst, also states that a partnership with local players like Motsepe via a holding company structure would address this regulatory requirement. Motsepe would likely hold a majority stake in the holding company. “This way, it could exert indirect influence over the company’s management without exceeding the 20% voting rights limit,” she said. Where there’s interest, there’s conflict CAF, Africa’s football governing body, usually invites bidders for broadcasting rights to some of the continent’s premier football competitions including the African Cup of Nations (AFCON) and other inter-club competitions. Supersport, wholly owned by MultiChoice, bids for these rights. For Motsepe who owns Africa Rainbow Capital (ARC), having an ownership stake in MultiChoice could mean that he would have an impact, directly or indirectly, on which broadcaster gets the lucrative rights. According to Jimmy Moyaha, founder of investment firm Lebowa Capital, although the conflict of interest is a potential issue, it would largely depend on the ownership structure that Motsepe and Canal+ would agree on. “Motsepe isn’t directly involved in the management of ARC, his investment vehicle, and I doubt he would be involved in the management of Multichoice,“ he told TechCabal. Moyaha also noted that ARC’s position as an investment firm could easily be limited to a shareholder with minority voting rights which would address this conflict of interest. Additionally, Motsepe’s tenure at the helm of African football’s governing body ends next year. He could easily decide to step down from the position should he desire to have a more active role in the entity which would come about as a result of the partnership with Canal+. For Motsepe’s ARC, an investment company whose portfolio companies include mobile network operator Rain and neobank TymeBank, having MultiChoice on its portfolio could help with diversification. The company, which is listed on the Joburg Stock Exchange, has stated that it invests in companies with an established market position, a demonstrable track record, and strong cash flow generation, among other qualities. MultiChoice—with its 22 million subscribers in Africa, its 30-year presence on the continent, and R3 billion (~$156 million) cash flow, per its latest financial results—ticks most of these boxes. “For ARC, [the investment into] MultiChoice would diversify the business into media, further strengthening its operating model and investment strategy as an [investment vehicle],” Moyaha added.
Read MoreSurging inflation is forcing auto finance startups to rethink their financing strategies to maintain demand
Startups that provide financing support to Nigerians planning to own a vehicle are readjusting their strategies to keep demand stable as inflation continues to rise, pushing vehicle prices higher. Auto finance companies enable consumers to buy cars from dealers and be able to pay over a period of time. However, experts say shifts in vehicle pricing due to the FX crisis and market dynamics have significant implications for vehicle financing. Three companies that TechCabal spoke to said they are prioritising financing vehicles in areas of preference. This means measuring the demand for a particular vehicle, deciding whether the vehicle serves a commercial purpose, and assessing how affordable it is for consumers. “Ultimately, these changes reflect a dynamic adaptation within the vehicle financing sector to accommodate shifting market conditions and consumer preferences,” said Ojurongbe Damilola, head of technical services, Cars45. Max Drive, for example, which historically financed motorcycles, bicycles, three-wheelers, and mini-buses (four-wheelers), said it has recently done more three-wheelers and motorcycles in the 11 Nigerian states where it operates. It has financed 33 vehicles so far. Max Drive plans to finance 70 vehicles in 2024. For Carima, a B2B marketplace that allows dealers to make requests from other dealers for cars they don’t have in their lots, financing dealers is the better route to profitability. The company said it has financed dealers’ requests worth N400 million since January this year and has received back 100% of the loans. The platform has 3,000 registered dealers and overall access to 30,000 dealers. “We are financing dealers because they see cars as an asset while the normal individual sees cars as a liability. The dealer is buying a car because he wants to resell and make a profit,” Adebayo Tomiwa, CEO of Carima, told TechCabal. With 100% repayment done so far, Carima is now looking to expand the service. While prices of cars are on the rise, experts say the factors driving consumers towards vehicle financing include the ability to access a wide range of vehicles that financiers can now provide. Ojurongbe Damilola of Cars45, told TechCabal that this variety now allows individuals to select vehicles that meet both their preferences and financial realities. Another factor attracting consumers is expanded financing options due to more financing companies entering the market. This means that customers can now make their choices from a broader range of car loan providers. This also has led to more people embracing the concept of financing vehicles as they are more willing to consider vehicle loans as a viable option for buying cars due to the financial burden it takes off them. “This increased competition among financiers has made financing more accessible to a larger segment of the population,” Damilola said. However, there are concerns as to how the Central Bank of Nigeria’s Monetary Policy Committee (MPC) will affect loan interest rates, including car loans, if they continue to increase the benchmark interest rate. On March 26, 2024, the MPC hiked the benchmark interest rate by 200 basis points to 24.75%, from 22.75% recorded a month ago. Most of the financing companies often collaborate with financial institutions to access the funds they disburse as loans; an increase in base interest rate can also necessitate an adjustment in the rates offered by these companies.
Read MoreSA telcos are selling off their towers. Here is why
Telkom last week announced an agreement with a consortium of buyers to sell off its towers subsidiary, Swiftnet, for $356 million. Telkom said that the sale aligns with the company’s strategy to sell off non-core assets to focus on unlocking the intrinsic value of its more core operations. The company becomes the latest telco in South Africa to sell off its tower assets, following Cell C, Vodacom and MTN. Back in 2011, Cell C sold off its 3,200 towers to American Tower Corporation for $430 million. In June 2022, MTN sold its 5,701 towers to Nigeria’s IHS Towers for R6.4 billion (~$337 million), with the company stating that it will use the proceeds of the sale to fund the purchase of spectrum to high-demand spectrum frequencies and provide it with additional balance sheet flexibility. The following month, in July 2022, Vodacom announced that it would unbundle its over 9,000 tower assets into a separate subsidiary in which it would hold a 100% shareholding. The telco said the move was to enhance asset returns and lower communication costs. Last year, Cell C announced that it would switch off tower access and have its subscribers roam on towers owned or leased by MTN. As these SA telcos continue to sell off their tower assets, with reasons ranging from raising funds for other investments to supposedly lowering communication costs and shifting business strategies, experts who spoke to TechCabal say there may be other reasons at play. According to Jimmy Moyaha, founder of investment firm Lebowa Capital, telcos may be pursuing strategic goals which do not necessitate having the towers on their balance sheets. “We’re seeing telcos rather deploy their capex into more strategic things like buying spectrum and improving network capabilities,” he said. Cell C and MTN took this route as they immediately leased back the towers from their respective buyers. Additionally, according to Moyaha, loadshedding might also be a factor in pushing telcos to move the towers off of their balance sheets. With the loadshedding situation having gotten worse over the last few years, telcos have constantly reiterated in their financial results the investment that they have had to make in backup power during blackouts. MTN has stated in the past that loadshedding led to an increase in thefts at its towers; Vodacom has said it had to invest R1 billion (~$200 million) on backup power for its towers; and Telkom has said it had to spend over R500 million (~$100 million) on diesel for the backup generators needed to run its towers. “When loadshedding is severe, backup power doesn’t have enough time to recharge and replenish itself,” added Moyaha. “This then necessitates the need for additional power solutions to be deployed and that becomes a very capex-intensive undertaking.” Yet another (possible) reason… According to Tshepo Magagane, an investment analyst, shareholder pressure might also be a significant factor behind the selloffs. Over the last two years, when most of the sell-offs have taken place, Vodacom, MTN and Telkom have all seen their share prices tumble by 38%, 53% and 39% respectively. “Share price underperformance [has led] to pressure from shareholders which results in the companies convincing themselves that the tower assets are ‘non-core’.” He adds that the fact that private equity firms, which emphasise cashflow generation, are buying up the assets indicates their cashflow importance. “Infrastructure assets [like towers] allow revenue prediction, stable margins, efficient working capital deployment, manageable and incremental maintenance capex to investors,” said Magagane. Following its acquisition of Cell C’s towers, American Tower Corporation reported significant returns from the purchase. At the time, the company stated that it was generating a return on invested capital of approximately 20%. Each tower had approximately two tenants at a lease rate of $2,500 per tenant. According to Magagane, the prominence of such deals is likely to attract even more private equity investors to seek similar opportunities on the continent. “A consummation of deals this large should act as a catalyst for other investors to wake up to the fact that there are opportunities in South Africa and Africa,” he concluded.
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👨🏿🚀TechCabal Daily – Uganda downgrades GT Bank
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday LinkedIn is trying out TikTok-style videos. It’s not set in stone yet, but the company has confirmed that users will be seeing short-form video feeds in the near future. The app joins a string of other apps like X (Twitter), Reels, and Snapchat that are proving that what’s good for the goose, might also be good for Uganda. In today’s edition Bank of Ethiopia recovers 80% of money lost from glitch Uganda downgrades GTB Motsepe enters MultiChoice-Canal+ deal ByteDance pulls the plug on WeChat Telecom Egypt partners with Tejas Network The World Wide Web3 Opportunities Fintech Ethiopia’s biggest bank recovers 80% of $14 million lost in system glitch Ethiopia’s biggest bank, the Commercial Bank of Ethiopia (CBE), has made significant strides in recent years. With over 46 million account holders and 82 years of experience, the CBE oversees the country’s financial sector. However, even giants stumble. A glitch in the CBE system allowed for free cash withdrawals at ATMs and electronic transfers, losing up to $14 million in the process. For thousands of Ethiopians, especially university students, March 16 was unlike any other day. A technical problem during routine “maintenance and inspection activities” led to the glitch. News spread quickly; over 15,000 people took advantage of the glitch, with withdrawals ranging from 9 cents to over $5,000. Currently, the CBE has recovered 80%— about $11 million of the money lost in its glitch. While nearly 15,000 Ethiopians have willingly returned the extra funds they withdrew, the bank has reportedly released the names and account details of the remaining 567 individuals in an attempt to shame them into giving it back. According to Abe Sano, the president of the CBE, the outstanding amount is insignificant to the bank, but not collecting it sends the wrong message. Zoom out: 490,000 transactions were reportedly conducted before the CBE detected the glitch. News of the glitch initially spread particularly amongst university students, prompting universities nationwide to urge their students to return any extra funds they received. Experience fast and reliable personal banking with Moniepoint Give it a shot like she did . Click here to experience fast and reliable personal banking with Moniepoint. Banking BoU downgrades Guarantee Trust Bank Uganda to Tier II Institution In a bid to strengthen Uganda’s banking system and make it more resilient to external shocks, the Ugandan government implemented stricter capital requirements for financial institutions in July 2023. The Ugandan government, through its finance ministry, implemented new regulations that require commercial banks to hold a minimum of $38.6 million in capital reserves. This is a 506% increase from the previous requirement of $6.4 million. Banks have until June 30, 2024, to comply with the new rules. As a result, some banks have downgraded operations. Guaranty Trust Bank Uganda Ltd, a subsidiary of Nigeria’s Guaranty Trust Bank, applied to be downgraded from a commercial bank to a credit institution following anticipated failure to meet the new capital buffer requirements. Uganda’s apex bank granted the request and demoted Guaranty Trust Bank (GTBank) from a Tier I commercial bank to a Tier II credit institution which has a minimum capital requirement of $275,802. This change also affects Kenya’s ABC Capital Bank and Opportunity Bank. As a result of the downgrade, these banks are restricted to accepting customer deposits and maintaining savings accounts. However, they are no longer permitted to open current accounts for customers or engage in foreign currency trading. Streaming South Africa’s richest Black man, Patrice Motsepe, enters talks for Canal+ bid on MultiChoice Since 2020, French broadcasting company, Canal+ has increased its stake in MultiChoice, Africa’s pay-TV giant from 20.1% to 35.01% and made an offer in February 2023, to buy Multichoice’s remaining shares for R105 per share. The offer was deemed too low by Multichoice and was rejected. Earlier this month, Canal+ increased its offer to R125 per share—a 20% increase from the initial offer of R105—a week after a regulatory panel mandated the French broadcaster to make an offer to MultiChoice’s ordinary shareholders and extended the offer deadline to April 8, 2024. Although both companies agreed to cooperate following the offer increase, the bid for MultiChoice just got a whole lot more interesting. Why? Patrice Motsepe, president of the Confederation of African Football and South Africa’s wealthiest Black man, reportedly worth $2.4 billion, is entering talks to join Canal+’s bid. According to Bloomberg, the discussions are still at an early stage and there is no guarantee that an agreement will be reached. Motsepe, who founded Ubuntu-Botho Investments and African Rainbow Capital (ARC), also holds investments in mobile network operator, Rain and neobank, TymeBank. Why is this important? Canal+ might only be able to hold a maximum of 20% of voting rights, a major hurdle due to South African regulations that limit foreign ownership of broadcasters to 20%. Motsepe’s involvement in the deal could ensure MultiChoice remains a South African entity, meeting the local ownership threshold required by authorities. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Social Media ByteDance pulls the plug on LetsChat In 2021, ByteDance, makers of TikTok brought the fight to WhatsApp and Telegram on the continent through its messaging platform: Let’sChat. Launched in March 2021, LetsChat allowed users similar capabilities to other messaging platforms: text, voice call, and video call. While experts gave the budding messaging platform little or no chance of displacing established rivals like WhatsApp on the continent, Let’sChat forged on, amassing over 7 million users in the process with a bulk of them from Nigeria and others from Mali, Angola, and Côte d’Ivoire. To set itself apart from the market, Let’sChat heavily advertised itself as a data-saving platform, offering free video and voice calls to its users. The feature was a great incentive for
Read MoreLoan defaults eat into Kenya’s banking giant Equity Group’s profits
Equity Group, a Kenyan bank with assets worth about $10 billion across East Africa, has reported a 6.5% decline in net profits from $341.9 million to $320.4 million for the year ended December 31, 2023, due to rising loan defaults. Equity’s stock of bad loans jumped to $874.8 million last year from $481.9 million in 2022, revealing struggling local economies and hurting the bank’s growth while forcing the lender to increase provision for non-performing loans (NPL) to $269 million from $117.5 in the period. The Central Bank requires Kenyan banks to set aside funds to cover loans where borrowers fail to pay principal or interest for 90 days. “The NPL trend is consistent with management’s view as at the investors 3rd quarter briefing that NPLs had peaked. Prudent risk management culture led the board to approve a proactive derisking of future performance by providing for the lifetime expected loss on outstanding NPLs,” James Mwangi, Equity Group CEO, said on Wednesday during the release of the results in Nairobi. Mwangi added that the manufacturing, real estate, and logistics sectors accounted for the bank’s largest share of NPLs, pointing to a tough business environment for most local firms. Bad loans comprised 32% of the lender’s loan book. Since the COVID-19 pandemic, NPLs have been rising amid a tough business operating environment escalated by the devaluation of local currencies, rising interest rates, and record-high inflation. Rising taxes in Kenya have also eaten into the disposable income for most households and businesses, leading to loan defaults. Despite the profit drop, the Nairobi Securities Exchange-listed firm has retained a dividend payout of KES4 ($0.03) per share to shareholders, amounting to 36% of the profit after tax. The bank said interest income rose to $795.4 million up from $656.5 million while non-funded income grew 30% to $579.4 million. Kenya’s top lender by earnings also saw customer deposits grow by 29% to $9.9 billion. Equity, which also operates in neighbouring Tanzania, Uganda, South Sudan, Rwanda, and DRC, is still ahead of its main rival KCB Group in profitability. KCB reported an 8.3% drop in net profits to $285.9 million due to a jump in operating expenses.
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