No one likes debt shaming, but experts are skeptical about ethical debt collection
Nigeria’s digital lending space has boomed in recent years, filling a gap left by traditional banks. These lenders offer quick, collateral-free loans to individuals and businesses, a lifeline for many Nigerians in a struggling economy. However, collecting repayments is a significant problem for these lenders. Some digital lenders shame and harass defaulters, creating a tense and harmful environment for borrowers. It has created a market for ethical collection agencies like BFree—who recently raised $2.95 million in funding—and Mwanga, startups that use phone calls and text messages to remind borrowers of their outstanding balance and the consequences of non-payment. Ethical loan collectors—BFree claims to have upped loan recoveries for their clients by 70%—say they treat borrowers respectfully, even in cases of defaults. But banking experts doubt the effectiveness of ethical methods, particularly when borrowers face financial hardship. “There is a significant limit to ethical loan collection in Nigeria, especially for small loans,” said Adedeji Olowe, CEO of Lendsqr. “Lenders are walking a fine line, it’s only at a sizable level that you can manage finance risk. At the bottom, it’s a free for all.” The underlying economic realities that push borrowers to default in the first place may mean that repayments are impossible no matter the collection method. “Without addressing these issues, ethical collection may not be enough,” said Adedeji Olowe, CEO of Lendsqr. One expert who asked not to be mentioned believes unethical loan recovery methods could be avoided if digital lenders filter through the behavioral data of their borrowers to know their ability to repay. According to him, borrowers with betting or impulsive buying habits can be screened during the loan underwriting process or before they’re given loans. While these checks are in place for some digital lenders, ethical collectors might struggle to recover debts because rogue lenders are learning to game the system and exploit loopholes. For instance, if borrowers know their salaries will be directly debited within 24 hours, they might be tempted to empty their accounts upon receiving their paychecks, hindering repayment, one expert who asked not to be named told TechCabal. Another challenge posed by ethical loan collection for digital lenders is the cost of outsourcing loan recollection to collection-as-a-service startups. These collection-as-a-service startups charge between 10-35% of the loan amount recovered, which digital lenders account for in their interest rates to lenders, bumping it higher than the average interest rate and possibly deterring borrowers from lending or leading to more loan defaults. In 2022, the National Information and Technology Development Agency fined Soko Loan ₦10 million for privacy violations, sending a strong message to the industry. While regulatory bodies like NITDA have taken action against unethical loan recovery practices, experts who spoke to TechCabal believe there should be similar consequences for defaulters to make ethical loan collection work in Nigeria.
Read MoreHow Zimbabwean startups are forging ahead despite hyperinflation and sanctions
Tendai Mugovi is a serial technology entrepreneur based in Harare, Zimbabwe’s capital. He has founded and currently runs three startups: Cashlinq, a fintech offering core banking services to banks and other financial institutions, including telcos; Panamax, an ERP software provider; and Mugonat Systems, a software development firm. Cashlinq has already scaled to Zambia with plans to expand to Mozambique and Malawi. Mugovi is one of the many startup founders who have forged on with building startups, despite the unfriendly operating environment in Zimbabwe fuelled by sanctions and hyperinflation. Zimbabwe has been under economic sanctions from the US, the European Union and most Western countries since 2003. The country has also been experiencing hyperinflation since 2008, with inflation rates going as high as 80,000,000% in some periods. Mugovi tells TechCabal that access to funding is one area that has been mostly impacted by the country’s macroeconomic challenges. “Foreign investors consider us a pariah state, so getting access to patient venture capital is next to impossible.” Despite all the challenges that have been presented by hyperinflation and sanctions, startups in Zimbabwe are still alive and kicking. Some have built products serving a significant local market, while others have scaled to neighbouring countries after achieving product-market fit in the country. Stakeholders who spoke to TechCabal state that although the operating environment has been less than desirable, it has also presented opportunities for tech entrepreneurs. According to data by venture funding tracker Africa: The Big Deal, Zimbabwean startups collectively raised only $2 million in 2022. In the same period, startups in neighbouring South Africa raised almost $500 million in venture capital funding. Some startups have resorted to borrowing from microfinance institutions to address the funding challenge. However, in addition to high rejection rates because of lack of collateral, this capital is usually too expensive for startups, with interest rates averaging between 20% and 40%. Leonard Sengere, the editor of the technology publication TechZim, adds that a poor population also adds to the unattractiveness of Zimbabwe as a venture capital destination. “When a startup finds a problem, the business model falls apart when they realise customers can’t pay what’s needed to warrant the business.” To traverse through the funding problem, startups are looking to diaspora remittances to fund their ambitions. According to data from the World Bank, remittances by Zimbabwe’s diaspora community reached $1.66 billion in 2023, or 11% of the country’s GDP. Startups are resorting to their fellow countrymen abroad as foreign investors who may not understand the challenges of operating in the country, push them away. “The diaspora community knows the ability of innovators in Zimbabwe, so they are open to angel investing in startups in the country,” another founder told TechCabal. In 2021, the government also launched the National Venture Capital Fund (NVCF) and assigned ZW$300 million (~$3 million then) at its inception. Additionally, the treasury also introduced tax incentives for VC firms, announcing that they would not be liable for income tax. B2C startups are impacted the most Zimbabwe’s macroeconomic factors have mostly affected B2C startups compared to B2B startups, according to stakeholders who spoke to TechCabal. “It is extremely hard to move money out of Zimbabwe because of a combination of our policies and other countries’ policies concerning us,” said one founder of a B2C payments startup who requested anonymity. As a result, most startups find it hard to scale their products beyond Zimbabwe, making them unattractive to growth-oriented VC purses. Zimbabwe currently employs a multi-currency financial system comprising the US and the Zimbabwean dollar. However, because of waning confidence in the Zimbabwean dollar, data shows that nearly 80% of local transactions are done in US dollars. Unlike B2C startups, enterprise-oriented startups have access to a customer base which can pay in US dollars, managing to hedge against the Zimbabwean dollar’s instability. “Accepting payments in the local currency is hard because sometimes rates change by multiples of 10 per day, so we pivoted to a B2B model,” said a founder of a B2B fintech startup who also preferred to speak anonymously. Another factor working against B2C startups in the Zimbabwe ecosystem is negative consumer sentiment about digital wallets or any form of non-cash transactions as a result of hyperinflation. “People here believe more in cash because, in the past, they have seen their savings in more stable currencies converted to Zim dollars by the government,” said Njabulo Sandawana, a Zimbabwean technology entrepreneur. For startups looking to change consumer sentiments and increase adoption of their products, they would have to spend a significant amount of capital on marketing and community outreach. Signs of brighter days ahead for Zimbabwe startups Despite the multiple challenges brought about by Zimbabwe’s macroeconomic environment, they have also presented some opportunities. “Because of difficulty in accessing and paying for foreign-made enterprise software, we have seen an increase in demand for our products,” said the founder of an ERP software startup. For B2C startups, as a result of a limited addressable market in Zimbabwe, some have been forced to think outside the country’s borders. Instead of making products primarily for the Zimbabwe market, some startups use the country as a sandbox to verify their theses and product market fit. These include Cashlinq and Tano Digital who have expanded to Zambia and Botswana, respectively. Some other preferred expansion destinations include South Africa, Malawi and Mozambique. Zimbabweans are also gradually being attracted to alternative financial technologies away from the traditional banking systems as a result of being burnt in the past. Technologies like blockchain and digital wallets by fintech are gaining prominence as the citizenry looks for alternatives. “When people look back to the early days of hyperinflation when savings would evaporate, they look at offerings by fintechs and think, surely these can’t be any worse,” said Tinodashe Dubayi, head of digital transformation at fintech startup ClickNPay. Some of these offerings include Innbucks, which allows customers to receive loose change at restaurants; Ecocash, a digital wallet; and O’Mari, a superapp which includes mobile money, insurtech and investech products. With
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3 of the best free AI image generators 2024
The advancement of artificial intelligence (AI) has revolutionised the dynamics of image generation, allowing users to create stunning, high-definition images that look eerily close to real-life photographs. Whether you’re a graphic designer, a content creator, or just someone with a keen interest in AI technology, finding the best AI image generator is key to effortlessly achieving your desired results. Here are three of the best online image generators that offer powerful tools for generating HD AI real-life pictures. All the images in this article were uniquely generated from these generators listed here. 1. Pixlr Image Generator Pixlr’s Image Generator tool harnesses the power of AI to provide users with a seamless experience for creating stunning, high-definition images. With a user-friendly interface and a wide range of customisable options, Pixlr empowers users to generate lifelike images tailored to their specific needs. Regarding finding one of the best AI image generators for lifelike portraits, Pixlr is one of the top on the list. Using generative adversarial networks (GANs), this virtual engine creates portraits of people who do not actually exist. Each refresh reveals a new, unique image, making it an invaluable resource for various creative projects. You can get to their website from https://pixlr.com/image-generator/. 2. WePik AI image generator Wepik’s AI platform offers a comprehensive suite of tools for generating HD AI real-life images. From customisable templates to advanced image editing features, Wepik AI provides users with everything they need to bring their creative visions to life. WePik spotlights as one of the best AI image generators for collaborative art creation. With its vast library of pre-existing images and intuitive blending controls, users can seamlessly generate high-quality, HD AI real-life images. Whether you’re interested in portraits, landscapes, or abstract compositions, WePik empowers users to explore their creativity and produce stunning results. https://wepik.com/ai 3. Microsoft’s AI image generator Microsoft’s AI image generator is a powerful tool that leverages cutting-edge AI technology to produce high-definition real-life images. With features such as automatic image enhancement, background removal, and intelligent cropping, Microsoft’s platform streamlines the image creation process and delivers visually stunning results. Microsoft’s AI Image Generator offers a surreal twist on AI-generated art, making it one of the best AI image generators for creating mesmerising visuals. By applying neural network algorithms, users can transform ordinary images into dreamlike compositions filled with intricate details and vibrant colours. Whether you’re looking to add a touch of whimsy to your projects or explore the artistic possibilities of AI technology, Microsoft’s AI image generator delivers impressive results. Start creating with Microsoft’s AI Image Generator here: create.microsoft.com/en-us/features/ai-image-generator 5 tips to ensure desired Image results from some of the best AI image generators The following will help your result generation when using the aforementioned AI generator tools. 1. Provide detailed descriptions When using any of the best AI image generators for your projects, such as WePik, be sure to input detailed descriptions or keywords into the search options. The more specific you are about the desired characteristics of the image (e.g., gender, age, emotion, scenery), the more likely you are to receive relevant results that align with your vision. 2. Experiment with parameters Take advantage of the customisation options provided by the best AI image generators. Adjusting settings such as style, intensity, and morphing options can significantly impact the final output, allowing you to fine-tune the image to your liking. 3. Iterate and refine Don’t hesitate to iterate and refine your image generation process with the AI image generators you choose to use. Experiment with different combinations of images, settings, and techniques to explore new possibilities and uncover unique results. 4. Seek Inspiration Draw inspiration from various sources, including art, photography, and nature, when using the best AI image generators like PixLr. Studying real-life images and artistic compositions can provide valuable insights into composition, lighting, and colour schemes, enhancing the realism of your AI-generated creations. 5. Practice patience Generating high-quality HD AI real-life images may require patience and persistence. Be prepared to experiment, refine, and iterate until you achieve the desired results with the best AI image generators. Remember that AI technology continues to evolve, so exploring new features and improvements can lead to even better outcomes over time. Final thoughts on 3 of the best free AI image generators 2024 These AI generators may not exactly replace actual animators or graphics designers who design from scratch and are more human to develop your visual fantasies. But by leveraging the capabilities of some of the best AI image generators and following the tips provided here, you can do so much in less time, and with little or no cost, when it comes to visual conceptualisation. Whether you’re a professional artist or an amateur enthusiast, AI image generation offers endless opportunities for creativity and expression.
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👨🏿🚀TechCabal Daily – Flutterwave appoints new board chair
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF What was it like to build a tech startup in 2023? What will it take to succeed in 2024? The founders of Bamboo, SendStack, and ShopFawl have the answers! Join them in our International Women’s Day Vodcast, “Hustle & Heart,” live on our YouTube Channel. Watch it here! In today’s edition Quick Fire with Koffi Kelvin Here’s why your internet was down yesterday Binance promises to cooperate with Nigerian authorities South Africa to approve 60 crypto licences Flutterwave appoints more executives Funding Tracker The World Wide Web3 Job Openings Quick Fire Andela’s Koffi Kelvin breaks down Quality Assurance Koffi Kelvin is a QA Engineer at GitHub and an Andela technologist. He is passionate about learning and recently graduated from an 11-month leadership course. Koffi is an Andela community champion, supporting and mentoring other community members across the globe, as well as organizing region-wide events for Andela. Outside of tech, Koffi is interested in music, art, and African culture. Explain your job to a five-year-old Imagine you built the world’s most incredible treehouse ever! It has slides, secret tunnels, and a throne made from your softest teddy bear. But before you invite all your friends over, wouldn’t you want to ensure it’s perfect? That’s where a QA engineer comes in, like the ultimate fort inspector with a magnifying glass! We’re the ones who crawl through the tunnels, bounce on the pillows, and push all the buttons (carefully, of course!) to see if anything is wonky or doesn’t work quite right. We might find a slide that topples over too easily or a tunnel too small for even the tiniest teddy bear. We’ll then tell the treehouse builders (the programmers) about these funny mishaps so they can fix them and make the treehouse even more epic! Can you share a memorable experience where your attention to detail in QA uncovered a critical issue in a project? Off the top of my head, I discovered a critical OS issue when I was at Hewlett-Packard. I was analysing data, and it revealed a bug; I would upload a particular file to an RGB keyboard app, which then caused the entire operating system to crash. This was precarious because, of course, apps require operating systems to run. We were building the operating system alongside the required apps; one needed the other to perform efficiently. It was a close shave! Your background also showcases a transition from hands-on QA engineering to customer support. What sparked this shift in focus, and what excites you most about the support role? QA is a very customer-centric role where, in some instances, during user acceptance testing (UAT), one works with the actual application users to address any issues they might have with the product, making customer support a function within QA. Hence, the transition was as seamless as running from walking. What skills would you say have been critical to your career growth and trajectory? Curiosity and tenacity. I remain curious and interested in all functions within and around my work. I’m constantly researching, reading, and learning. This exposes me to as many recent and emerging technologies as possible, which helps keep me sharp and up-to-date. I tend to seek out content from some notable thought leaders within QA like James Bach, who is christened “The father of Agile testing” through his blog and a few others like. I gravitate towards the daunting and challenging tasks many people avoid, which has ensured I’ve learned the most within the team. I welcome a challenge, as it makes me learn the most or fail spectacularly. And when you fail, you learn; you never make the same mistake twice. You’ve been a digital business mentor for two years now. What would you say is the most rewarding thing about mentoring? At this point in my career, I would love to give back to the Andela community as much as possible because I realise how privileged I have been in my career journey. This is why I am drawn to mentoring and supporting other technologists. The Andela community is a network of global technologists, and I regularly speak to people worldwide. The most rewarding part is helping others be successful in specific fields using tools that improve the quality, efficiency, and even the quantity of their output. I guide new members through the Andela talent community landscape, offering support and advice on everything from how to navigate the job engagement process, to questions about tax and, of course, technology and skills guidance. What are some of your hobbies or passions that fuel your creativity and energy outside of work? I always make time for physical activity, regularly playing at the local rugby club and swimming. Recently, I’ve embraced farming, starting with building two beehives, planting some fruit trees (mango and apple), and growing hot chilies. I love being outdoors as much as possible. Finally, what lessons have you learned from your experiences in QA that have had the most significant impact on your professional growth and development? Developing my teamwork and collaboration skills during our day-to-day QA operations has impacted my leadership. Most recently, I took an 11-month leadership development program led by renowned scholars including Dr Phidel Baraza (Ph.D.) and Professor Emmanuel Bellon, where I was recognized as one of the course’s top performers. When I first began leadership training, I was taught to lead from the front and demonstrate/explain how my team should perform. But working in QA, I’ve learned how to lead from behind when needed, encouraging and trusting my team to have autonomy over their roles. Launch your tech career with Moniepoint Launch your tech career with paid mentorship from fintech industry leaders and potential full-time employment. Apply now! Telecoms Subsea cable cuts disrupt internet service in Africa If you experienced bad internet service yesterday, we are here to let you know that it’s not the fault of your network provider, it might just be
Read MoreMajor fibre cut takes banks in Nigeria and South Africa offline
MainOne, a major data provider for most Nigerian banks, suffered a major fibre cut in Ghana that has knocked many major Nigerian banks offline, according to internal communication sent to bank staff and seen by TechCabal. As a result, customers of major Nigerian banks cannot access their banking apps or use any USSD service. “A technical team is actively working on a solution,” someone familiar with MainOne’s business told TechCabal. A spokesperson for TechCabal declined to comment on the situation. Thursday’s internet outage extends beyond Nigeria, with South African internet users also experiencing slow speeds and unresponsive internet. According to news24, Vodacom confirmed that multiple subsea cable failures between South Africa and Europe were impacting several network providers. *This is a developing story.
Read MoreFlutterwave appoints former CBN director as board chair
Flutterwave, Africa’s most valuable startup, has appointed Dipo Fatokun, a former director at the Central Bank of Nigeria (CBN), as its new board chairman, as part of its effort to uphold higher regulatory, compliance, and governance standards. Fatokun has extensive experience as a board member and board chair, having served on more than five boards in the last decade. He is the chair of United Capital’s audit and governance board. During his time at CBN, he led initiatives such as the Cashless Nigeria Initiative, the Bank Verification Number (BVN) project, and the Treasury Single Account (TSA) for the Federal Government. He also led efforts to automate foreign currency payments for the Central Bank’s internal and external customers. The fintech has also appointed Tosin Faniro-Dada, a partner at Breega, an early-stage VC fund in Europe and Africa, as an independent non-executive director. “As a company, we’ve gone through different organisational changes in our growth journey, but one thing remains steadfast – our commitment to maintaining the highest regulatory and operational standards,” said Olugbenga Agboola, the CEO and Founder of Flutterwave. Their appointments come three months after Flutterwave appointed five new executives across its risk, compliance, and expansion departments. Two weeks ago, Flutterwave also added a new board member, Nigerian architect Olajumoke Adenowo, as part of its efforts to drive its international expansion strategy. “The company plays a vital role in the fintech ecosystem across Africa. I’m looking forward to supporting the company’s goal of being a model fintech company that advances payment innovations while upholding the highest regulatory and compliance standards,” Fatokun said in a statement.
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Breaking: SA issues first-ever crypto licences to 59 firms
South Africa’s Financial Sector Conduct Authority (FSCA) has approved operating licences for 59 cryptocurrency firms as of March 12, 2024. This was stated by a representative of the FSCA at the ongoing FSCA Industry Conference in Johannesburg. According to the regulator, 355 applications for crypto licenses were received, 59 of which were approved, while 262 are still being vetted. Some of the business models of approved firms include advisory services, exchanges, payment gateways, crypto-to-crypto and crypto-to-fiat-conversion, crypto asset arbitrage, tokenisation, provision of index-based products, and wallet services. “Any entity that did not apply for a license and continues activities will be investigated and there will be consequences for such actions,” said Felicity Mabaso, the divisional executive for licensing at the FSCA. Image source: FSCA The move represents South Africa’s continuing relaxation of the crypto regulatory environment. The earliest step in liberalising South Africa’s crypto regulatory landscape came in November 2018 when the SARB, in conjunction with the FSCA, South African Revenue Services (SARS), and the FIC established the Crypto Assets Regulatory Working Group. In July 2021, the working group published a position paper [pdf] with recommendations for a revised South African policy, legal, and regulatory position on crypto assets. In August 2022, SARB issued guidelines for how financial institutions including banks could service crypto clients. The apex bank explicitly advised the institutions against refusing to serve crypto clients. This was followed by the FSCA declaring crypto assets as financial products in October 2022, meaning they would fall within the regulatory jurisdiction of the FSCA which then opened applications for licences in June 2023. Furthermore, according to the FSCA, the licensed entities will be subject to ongoing supervision after licensing, while investigations into people conducting crypto-related financial services without authorisation will begin.
Read MoreNigeria, Binance in talks to patch up relations after arrests
Binance, the world’s largest crypto exchange, wants to patch its relationship with Nigerian authorities following recent regulatory tensions. In a statement released on Thursday, Binance emphasized its commitment to compliance and collaboration with Nigerian authorities. The exchange detailed its extensive cooperation with Nigerian law enforcement, claiming to have responded to over 626 information requests from Nigerian authorities since 2020, with an average response time of less than 38 hours. This information reportedly assisted investigations into financial crimes such as scams, fraud, and money laundering. Furthermore, Binance claimed it conducted dedicated training sessions for officials of Nigeria’s Economic and Financial Crimes Commission (EFCC) in August 2023, focusing on cryptocurrency investigations and internal operations. These initiatives, demonstrate Binance’s commitment to fostering collaboration with Nigerian authorities. The company also claims it has been cooperating with the Nigerian Financial Intelligence Unit (NFIU) and the Nigeria Police Force to discuss continuous training initiatives and operational cooperation. The statement comes against a backdrop of increased scrutiny towards cryptocurrencies by the Nigerian government. Last month, the Nigerian government detained two Binance executives—Tigran Gambrayan, an American citizen and former US federal agent, and Nadeem Anjarwalla, Binance’s Kenya-based regional manager for Africa—who had flown into the country to resolve the exchange’s banned website. The arrests stem from the Nigerian government’s crackdown on forex speculation, triggered by the naira’s volatility after the removal of artificial exchange rate controls. Despite not being a top market for the exchange, Binance acknowledged Nigeria’s burgeoning crypto adoption, ranking second globally according to Chainalysis.
Read MoreAccess Corporation names Aigboje Imoukhuede Board Chairman
Access Corporation, the parent company of Nigeria’s biggest bank by assets, has appointed Aigboje Imoukhuede, a pioneering CEO of the bank, as the Non-Executive Chairman. Imoukhuede returns to the bank he retired a decade ago; exactly one month after the death of Herbert Wigwe, his friend, business partner, and former Group Chief Executive Officer (GCEO) of the bank. He will replace Abubakar Jimoh, the erstwhile board chairman. According to a statement by the bank, Imoukhede’s appointment was a unanimous decision welcomed by the board to steer the bank in the right direction. The erstwhile chairman, Jimoh, will remain on the bank’s board, serving as an Independent Non-Executive Director. “Mr Aig-Imoukhuede’s appointment to the Board and subsequent election as Chairman is a landmark development for Access Holdings,” said Jimoh. “All our board members are excited about our future.” Reacting to the appointment, Imoukhuede said he is “thrilled to be back in active service to the Access Group ecosystem.” “I am confident that working with our directors, our exceptional team of executives and our best-in-class banking and finance professionals. We will deliver outstanding value to shareholders,” he added. Imoukhuede is no stranger to the banking world, and Access Bank Holdings, boasting 22 years of industry experience. He served as the GCEO of Access Bank for 11 years, until Wigwe succeeded him in 2013. Under Aig-Imoukuede’s leadership, Access Bank became a tier-1 bank, growing its presence in over nine countries and its customer base to over six million. The bank boasted an asset base worth $12 million under Imoukhuede’s tenure that began in 2002. As Board Chairman, he promised all customers, employees, and stakeholders a promising future under his leadership. He promised to take the group to a new chapter of sustainable success. Today, the bank’s shares grew 2.45% at the end of trading to ₦23 per share, signifying a silver lining for the shares that are beginning to peak after it closed last month at ₦19.15. Imoukhuede co-founded the Tengen Family Office Limited which oversees a significant portfolio of investments and business in banking, finance, real estate, technology and energy. He also owns Coronation Group Limited, an investment holding and trading company for a group of companies that provide a wide range of financial services.
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👨🏿🚀TechCabal Daily – Telkom loses 800,000 subscribers
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If you’re often missing TC Daily in your inbox, check your Promotions folder and move any edition of TC Daily from “Promotions” to your “Main” or “Primary” folder and TC Daily will always come to you. In today’s edition Nigeria’s space plan is on hold Airtel Money eyes IPO Telkom loses 800,000 subscribers Interswitch merges with M-Kudi The World Wide Web3 Opportunities Space Nigeria’s satellite launch plans put on hold While Nigeria’s space ambitions face a temporary setback, its achievements shouldn’t be forgotten. Launched in 2003, NigeriaSat-1, Nigeria’s first earth observation satellite supported disaster responses in Argentina, Paraguay, and West Africa before its decommissioning in 2014. Its impact also extended to vital mapping projects in the Amazon rainforest and Vietnam’s coastlines. Nigeria’s space programme has a history of reaching out a hand from beyond Earth’s atmosphere. However, ambitious plans to launch a Nigerian astronaut and a domestically-built satellite in 2025 have been put on hold. Why? The Director-General of Nigeria’s National Space Research and Development Agency (NASRDA), Dr Halilu Shaba, disclosed that the agency’s ambitious plan to launch a satellite by 2025 hit a financial roadblock. Additionally, launching an astronaut into space is currently deemed economically unfeasible. NASRDA anticipates it may take up to five years to secure a launch slot, making immediate astronaut training impractical. Despite the delay, NASRDA maintains its 25-year plan to send a Nigerian astronaut into space and launch an indigenous satellite from Nigeria. The agency projects significant growth potential for Nigeria’s space industry, aiming for a valuation of up to $1 billion. Zoom out: Meanwhile,NigeriaSat-2, another earth observation satellite launched in 2011, remains functional, providing high-resolution imaging for various purposes. NASRDA utilised it for estimating population and partnered with China to monitor earth tremors in Nigeria and across Africa. Launch your tech career with Moniepoint Launch your tech career with paid mentorship from fintech industry leaders and potential full-time employment. Apply now! Telecoms Airtel Money eyes IPO African mobile mobile money providers have experienced a surge in investment in recent times. Two years after its $100 million investment in Airtel Money, Mastercard acquired a minor stake in MTN’s mobile money arm. In 2021, Airtel hinted at a possible public offering for its fintech arm after receiving investments from TPG—$200 million—and Mastercard—$100 million—valuing the unit at $2.65 billion. Now, Airtel’s mobile money arm might be ready to go public. Yesterday, Bloomberg reported that Airtel Africa is exploring taking its mobile money unit public, with a potential valuation surpassing $4 billion. Talks of the IPO are in preliminary stages and the company may decide against going public. Airtel Money is Airtel Africa’s fastest-growing arm. While Airtel 2023 profits plunged by almost 99%—recording $2 million in profits compared with $523 million it made in 2022—due to currency devaluation, its mobile money arm recorded a 31.8% revenue growth. The telecom currently offers its mobile money services in 14 African countries. In Nigeria, it competes with MTN Momo, while it is dwarfed by competition from Kenya’s mobile money giant, MPesa. Last year, it received approval to allow customers to transact up to KES 500,000 ($3,400) up from KES 300,000 ($2085) which it was previously allowed to do. 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. Telecom Telkom loses 800,000 subscribers Telkom’s race to become Kenyans telecom choice has hit another roadblock. Over the years, the telecom has tried to keep pace with Safaricom—who holds the largest market share with 65 million subscribers—and Airtel with 18 million subscribers, for the largest slice of Kenya’s telecom market. However, financial troubles and a declining user count means that the dream is fast becoming out of reach. Between March 2022 and June 2023, Telkom lost 1.62 million subscribers due to a crackdown on irregularly registered SIM cards. New reports show that Telkom has lost about 800,000 more subscribers due to unpaid leasing fees to American Towers Corporation (ATC). ATC switched off 246 Telkom towers in February after it defaulted on leasing fees. Currently Telkom owes the ATC about KES 7.1 billion ($51.7 million). Both parties entered an agreement two years before. ATC asked Telkom for an initial payment of KES 500 million ($3.6 million) and a monthly payment of KES 150 million ($1.09 million) to reactivate the towers. Telkom said it was unable to pay the debts due to its financial struggles. Telkom’s mobile subscribers count as of December 2023 had dropped to 1.3 million down from 3 million. Before now, Telkom owned and managed its towers before it sold about 723 to the ATC in 2018. At the time, the telecom said the move would “enhance the quality and reliability of our network to benefit our customers.” It now appears the move might have served the wrong purpose. Accept fast in-person payments, at scale Spin up a sales force with dozens – even hundreds – of Virtual Terminal accounts in seconds, without the headache of managing physical hardware. Learn more → Fintech Interswitch merges with M-Kudi, eyes PSB licence in Nigeria Africa’s fintech leader, Interswitch, isn’t content with just being a payments powerhouse. After its surprise foray into Nigeria’s telecom sector via a Mobile Virtual Network Operators (MVNO) licence acquisition in May 2023, its ambitions haven’t stopped there. Its latest move involves a merger with mobile money provider M-Kudi, to acquire a Payment service Bank (PSB) licence from Nigeria’s central bank. What’s the deal? Currently, Interswitch focuses on processing payments. The merger with M-Kudi—subject to regulatory approval—will allow Interswitch to create accounts and hold customer deposits. With a PSB license, the company will also be able to receive foreign currencies for its customers and offer agency banking services. Aside getting regulatory approval for the PSB licence, a challenge Interswitch will have to face is convincing Nigerians
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