👨🏿🚀TechCabal Daily – CIPC hackers want $100k reward
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning ChatGPT’s Read Aloud feature is now available on all devices. The feature, which launched last year across mobile, will allow the chatbot read answers to you or even have conversations about random stuff. The service is also available in 37 languages. In today’s edition Africa Talking’s CEO sues company over unlawful termination CIPC hackers want a $100k reward Canal+ gets an extension Bolt launches in Cairo days after Botswana entry The World Wide Web3 Opportunities Startups Africa’s Talking co-founder sues company over unlawful termination After a 7-year tenure as CEO of Africa’s Talking, Bilha Ndirangu was allegedly forced to step down in June 2021, to pursue other interests while still serving on the board of directors. Africa’s Talking,—a platform that makes it easier for developers to build their solutions with easy-to-use application programming interfaces (APIs)—is now being led by a new CEO Samuel Gikandi who reportedly removed Ndirangu as director two years after she stepped down as CEO. What’s the story? In a recent lawsuit filed with the Nairobi High Court, Ndirangu, who owns 6.33% of the company, is accusing the company of wrongfully terminating her position as director. She alleges she was removed just seven months after raising concerns about misconduct by senior company officials. Court documents reveal that Gikandi and other shareholders, including a trust holding unvested shares for employees voted to remove Ndirangu as director in June 2023. Ndirangu claims she was denied the right to contest her removal, which is a violation of legal procedures. Additionally, the lawsuit states that her dismissal occurred despite a court order protecting her position. Three other individuals, including Eston Maina, another co-founder, are listed alongside Ndirangu in the suit. She also argues the removal process was flawed. How? Typically, removing a director requires a majority vote from shareholders. However, in this case, court documents show that AT Group ESOP Trust participated in the vote to reach the majority needed. Ndirangu contests the legitimacy of this vote, claiming the trust is inactive and shouldn’t have been allowed to participate. Ndirangu and her co-petitioners own 20.83% of Africa’s Talking, while Gikandi and his team own 25.25% of the company. This is a developing story. Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Cybersecurity CIPC hackers want $100k reward Yesterday, we brought you news of South Africa’s business registry—Companies and Intellectual Property Commission (CIPC)—getting hacked. An anonymous group has claimed responsibility for the hack and claims that they have had total control of the website since 2021. Dig in: The group told MyBroadband, a South African publication yesterday that the CIPC responsible for managing roughly 2.1 million active businesses and overseeing intellectual property rights had weak security. The group which claims it does not have any affiliations or agenda besides exposing the vulnerabilities of large companies, found many such vulnerabilities in the CIPC including accessing a CIPC user account without knowing their password. This vulnerability granted the group full control over company registration data, allowing the group to potentially add or remove directors from companies or alter other critical information at will. This is not the first hack on the CIPC—the group explored vulnerabilities in the CIPC in 2021—the hacker group is asking for a “reasonable” R1.9 million ($100,000) ransom for its latest attempt. While MyBroadband informed the CIPC about the hacker group revelations, the CIPC said it was “handling the matter with the relevant law enforcement agencies.” Streaming Canal+ takeover bid for MultiChoice extended until April 8 French media giant, Canal+ has until April 8, 2024, to formally offer to acquire the remaining shares in MultiChoice, Africa’s leading pay-TV company. Initially, South Africa’s Takeover Regulation Panel ordered Canal+, to formally offer to buy the remaining shares in MultiChoice after reaching a 35% stake in the company, which triggered a mandatory offer requirement. Zoom in: The mandatory offer came after Canal+’s earlier offer in February to buy MultiChoice’s remaining shares for R105 ($5.52) per share, was deemed too low by MultiChoice. Now, Canal+ has secured an exemption from the Panel, which translates to an additional 25 business days for Canal+ to finalise their offer before the new deadline of April 8th, 2024. MyBroadband estimates Canal+ has shelled out roughly R17.2 billion ($904.2 million) to acquire its current 35.01% stake in MultiChoice, averaging around R111 ($5.84) per share. To buy the remaining shares, the cost could balloon to R30.2 billion ($1.5 billion), for a total purchase price of R47.4 billion ($2.4 billion). MultiChoice has stated it will continue to act in the best interests of its shareholders as the company awaits further developments from Canal+. Secure payment gateway for your business Fincra’s payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through bank transfers, cards, virtual accounts and mobile money. Create a free account and start collecting NGN payments with Fincra. Mobility Bolt launches in Cairo days after Botswana entry Bolt, an Estonian ride-hailing platform, has officially launched in the Egyptian capital, Cairo—its second foray into North Africa after Tunis in 2019—and is ready to compete with other ride-hailing players like Uber and Careem in the market. This news also comes just one week after the service launched in Botswana. The ride-hailing company, whose strategy hinges on attractive pricing, plans to eliminate its standard 15% commission for drivers. This time, riders also get a 50% discount on their trips for the next six months. Bolt’s African expansion: This launch marks Bolt’s 15th African market, capping off a recent expansion in Zimbabwe andBotswana in January and February 2024, respectively, with a similar driver commission waiver for six months. Cairo’s ride-hailing landscape is a crowded arena: Uber currently reigns supreme in Cairo, but its reputation for being pricey precedes it. Careem offers similar prices but throws in occasional
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Brass claims our coverage took its statements out of context. Here’s our response
On Monday afternoon, TechCabal published a story about Brass, a Nigerian fintech that provides business banking to small businesses. Our reporting, which has now been called into question by the company’s founder, was based on an hour-long conversation with the founder and follow-up questions sent via email. Per our standards, we understood the gravity of this story and took great pains to share a balanced and nuanced story. We stand by our reporting and remain committed to building a reputable publication that captures the stories of the people and businesses shaping the tech landscape in Africa. While we don’t typically publish transcripts of our conversations with interview subjects, we will make an exception in this instance. Our email correspondence with the CEO of Brass can be found at the bottom of this article. In an hour-long conversation, Sola Akindolu expressed a desire to be helpful with TechCabal’s reporting. He, however, emphasised the need to be cautious due to the sensitive nature of the fintech industry. He mentioned that fintechs are struggling due to a combination of factors, including a delay in securing Series A funding, and explained that these issues are not unique to Brass but are symptomatic of broader challenges within the fintech sector. We paused to clarify if his fintech’s current struggles were similarly a funding issue, and he said this: “It is, for the most part, generally.” Find the full, unedited transcript of our conversation with Sola Akindolu below. The transcript starts here: Sola: So the first question I would like to ask is more like, what exactly is the goal of this reporting? Or what you guys are trying to do? Ngozi: Muyiwa, would you like to answer that? Muyiwa: Yes, absolutely. I think because now more than ever, we’re, we’re constantly asking questions about what is newsworthy or not. We’re constantly fielding questions about what is newsworthy or not. I find those questions pretty interesting. I don’t say this in a bad way. I think it reveals, like, sort of, like the hypocritical nature of people. It’s very interesting that we understand the news when it’s not about our companies because we understand the need for people to know these things—the need for customers, the need for investors, the need for just onlookers to understand or know things, right? But when really hits closer to home, we are always like, why do you need to talk about that? So the goal of this is pretty simple. I’m going to be very, very, I’ll speak very plainly here. We started receiving emails, text messages, DMs. The number of reporters in our newsroom, who had gotten these messages from your customers who had said, oh, oh, we can’t take money out. We’re having trouble taking money out of the company, and the company is not speaking to us. endlessly, right? I think we were very, very, very within our rights to have written that story, right, because it was an issue that affected customers. And this would have allowed us to also examine the promise of business banking, right? The promise of business banking, what some of the challenges are, and stuff like that, disruptors in that market are doing and how they’re doing so. So these stories like you said, it’s just it’s beyond reporting on that event, but also as a way to do a pulse check on what’s going on in the sector. So that’s, it’s that this is the news because it affected your customers, quite a lot of people on the one hand, and another reason great news is that it allows us also know what I know is happening around Sola: Don’t get me wrong, I’m sorry for interrupting. I’m not trying to say this is not news. I’m not trying to dispute the newsworthiness of it. What I’m trying to understand is exactly what the goal is more like, I’m not trying to, like there’s a way you tell news where you’re like, I’m just trying to understand the goal. I’m not saying it’s not newsworthy, or whatever the case may be people would have reached out and all of those types of things. When things are not looking good, people sort of complain in every form, make a complaint, right? They will talk to the press, they will talk to do file, you know, like people just try to air their grievances somehow. So I am just trying to ask you guys like, what exactly you guys are trying to do. Like I said, I’ll be very helpful. I think there’s just so much one can actually unwrap from all of this. I have spoken at length with Ngozi over the phone twice already. So I’m not sort of like we are going through a lot of a lot of work internally to ensure that we steer the ship and we’ve done so much work. We’ve been building this really hard for the last three years. So you can imagine this is my life’s work. So I’m very like, I’m very, I’m trying to make sure that I carry I steer the boat and I bring it back to the original position. So what I’m just trying to do is more like understand your perspective, I’m not disputing that what you need to do is not what I don’t know. And I’m not. I’m not very I’m not. I understand it. That’s my point. But I’m just trying to kind of like get what you guys are trying to drive, what kind of story are you trying to tell? Are you trying to tell the story from a brass perspective, or from an industry level or from an industry category level, do you understand? Because this problem is not, it’s not specific to us alone. And I can answer like, I don’t want to go into whatever. I don’t know what others are facing. I can only speak for myself, but I can take the idea that if it’s
Read MoreBolt launches in Cairo and undercuts Uber with 15% commission
Bolt, the global ride-hailing company, has launched in Cairo and will compete with Uber, InDriver and Careem in its second foray into North Africa after expanding to Tunis in 2019. The Estonian ride-hailing giant will hope to win with its pricing strategy. It will waive drivers its standard 15% commission for drivers (Uber and Careem charge 22-33%) and give riders 50% off their trips for the next six months. Bolt absorbs the discounts it gives customers and pays drivers the total amount earned during a trip. “Egypt is an important market for our entry beyond merely boosting driver revenues; we aim to ignite demand through competitive pricing,” said Haitham Mansour, Bolt Egypt Country Manager. “By keeping our commissions substantially lower than our counterparts, we ensure drivers earn more while presenting customers with appealing service fees.” Bolt’s entry into Egypt marks its 15th African market, following an expansion spree over the last few months. During this time, it has primarily focused on the Southern Africa market after entering Zambia, Zimbabwe, and Botswana, and waived driver commission in those markets for six months. Uber is currently the most popular ride-hailing app in Cairo but is considered pricey. Careem is similar in price but offers occasional discounts. inDriver and DiDi are newer, vying for the budget-conscious market with offers and discounts. In February 2023, Bolt committed to investing more than $500 million in Africa by the end of 2024. This investment aimed to expand Bolt’s services across the continent and create job opportunities. The company is also in the process of addressing a crisis with some of its drivers in select markets who accuse the company of using underhand tactics that reduce their income.
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How to apply for JAMB DE 2024 and solve profile code issues
Here’s a concise yet comprehensive guide for individuals seeking to apply for JAMB Direct Entry (DE) 2024, which commenced on February 28, 2024. It outlines the step-by-step process, essential considerations, and payment methods, providing aspiring candidates with a clear roadmap to navigate the application procedure effectively. How to apply for JAMB DE 2024 There are specific things for you to know when applying for JAMB DE 2024. They are as follows: 1. Understand the basics Before getting into the application process, it’s essential to grasp some key points: The JAMB Direct Entry (DE) form is distinct from the UTME form. You can only register for DE at designated JAMB offices. Applying for both JAMB DE and UTME in the same year is not permissible. 2. Gather necessary documents Ensure you have the following documents ready: A’ level qualifications or equivalent O’ level results DE registration template 3. Initiate registration To begin, create your JAMB profile by sending your NIN to 55019 or 66019 via SMS. Example: NIN 00123456789. You’ll receive a confirmation code. 4. Access the JAMB portal Use the received code to log into the JAMB portal. 5. Obtain JAMB e-PIN Visit any accredited bank, CBT Centre, or embassy (for foreign candidates) to purchase the JAMB e-PIN. Present your confirmation code and pay the required fee. 6. Receive profile code After sending the message, you’ll receive a profile code along with other relevant details via SMS. 7. Procure Form e-PIN Present your profile code at the point of purchase, and the e-PIN will be sent to you via SMS. 8. Registration at CBT Centre Take your e-PIN to any JAMB-accredited CBT centre for registration. 9. Payment methods Choose from various payment methods: Bank payment: Use the e-PIN to pay at the bank. Online payment: Utilize your ATM card or USSD code on the JAMB portal. POS payment: Pay with POS at accredited CBT or JAMB offices. 10. Final steps on how to apply for JAMB DE 2024 and solve profile code issues Once registered, await further instructions from JAMB. Ensure all documents are uploaded as per guidelines. Profile code issues for those who apply for JAMB DE 2024 If you lose your profile code or e-PIN, follow these steps for retrieval: Send [RESEND] to 55019 or 66019 for profile code retrieval. Send [UTMEPIN] or [DEPIN] for e-PIN retrieval. Final thoughts on how to apply for JAMB DE 2024 By following these steps diligently, you can successfully apply for JAMB DE 2024. Also, be careful not to fall for fraudsters currently on the prowl parading as JAMB officials online and asking you for sensitive details or exorbitant money. Kindly visit an accredited JAMB CBT centre if you have any issues.
Read MoreNigerian fintech Brass blames funding winter for customer withdrawal delays
Brass, a Nigerian fintech startup that provides business banking services to small business owners, has blamed persistent withdrawal delays on the funding environment and an increase in its number of customers. “The funding winter and the economic situation in Nigeria affect the abilities of companies of our kind to support many customers after some time,” said Sola Akindolu, the company’s CEO. [ad] While Brass raised $2m in 2021, Akindolu acknowledged the expensive nature of running a fintech startup. “You can say you want to disrupt banks; if you raise $1-2 million, you must raise $5-10 million in a few years. If it is overdue and you have not, things will get tricky,” said Akindolu. “You need access to ridiculous capital.” Brass approached Nomba as part of conversations around a fundraise, two sources said. One highly-placed person said the company also discussed raising debt financing and expects to close funding in two weeks. Exclusive: Bilha Ndirangu sues IFC-backed Africa’s Talking over removal as director [ad] “It is not in any way new for fintechs to approach and support one another behind the scenes,” Brass said in response to questions about raising money from Nomba. “We have been approached and provided support too, even to competition. And you can generally confirm that. And no, we didn’t approach Nomba for equity financing.” Founded in 2020 by Akindolu, Brass was generally loved by its customers until withdrawal delays began around October 2023, three people said. “I could not pay my staff in Nigeria last month, and I also had to pause my building project because I could not buy materials,” said Samuel, a Brass user who claimed he could not transfer funds for over a month. TechCabal saw screenshots of his failed transactions. “I have over 10 million naira there and can’t even use my money.” Mercy, another Brass user, shared similar complaints after she tried to withdraw money from her account in December. “When I contacted Brass [about the transfer issues], I always got the same response: “We’re working on it.“ She was eventually able to make withdrawals. Despite the widespread nature of these complaints—there have been social media callouts of the CEO—Akindolu insists that only 80 businesses have experienced these delays. “Once escalated, the resolution does not take over 24 hours,” Akindolu claimed. The company also says that it is working hard to resolve the issues. Resolving customer complaints In February, Brass created a second Telegram channel to resolve user complaints, and screenshots showed that while customer complaints were acknowledged, they remained unsolved for weeks. The startup also changed the phone number of its customer care hotline several times without sharing it on social media. It forced users to share their complaints on X and Instagram, with at least several people sharing their frustration at the company’s poor communication. Akindolu disputes that characterisation. “I am very accessible. Customers even call me on my phone number to relay their complaints, and I attend to them as soon as possible,” Akindolu said. Staff cuts at Brass On Monday morning, Akindolu shared in a thread on X that Brass would furlough an undisclosed number of employees to cut costs. Impacted employees will continue to access “health insurance coverage and other benefits until we are able to bring them back in the following months,” Akindolu tweeted. “[Akindolu’s] communication with us on the matter was limited to the scope of the post he made online, an employee told TechCabal. [ad] Got a Tip?We’d like to hear from you. You can contact the authors of this article at muktar@bigcabal.com & ngozi@bigcabal.com. TechCabal protects the confidentiality of its sources.
Read MoreExclusive: Bilha Ndirangu sues IFC-backed Africa’s Talking over removal as director
Bilha Ndirangu, a former director of the IFC-backed Africa’s Talking, is suing the company she cofounded for unlawful termination of her appointment seven months after she accused senior company officials of misconduct. Ndirangu told a court she was not allowed to contest her removal as required by law. She also argued that she was fired despite a court order restraining Africa’s Talking from removing her as a director. Three others, including Eston Maina, another co-founder and former CEO of Africa’s Talking, are also listed as petitioners. Africa’s Talking, Gikandi, and the shareholders’ trust are listed as defendants in a petition filed in a Nairobi High Court. Samuel Gikandi, Africa’s Talking current CEO, and other shareholders, including a trust that holds unvested shares for employees, voted to remove Ndirangu as director in June 2023, according to court documents seen by TechCabal. Ndirangu, who owns a 6.33% stake in the company, was immediately replaced. Africa’s Talking and Samuel Gikandi did not respond to TechCabal’s request for comments. After Ndirangu called for an independent investigation into misconduct claims at the company, she was removed to obstruct the investigation process, she told a court. “The unlawful removal of the 1st Applicant (Bilha Ndirangu) as a director and its intended ratification has caused undue prejudice to the Applicants (Africa’s Talking, the CEO and other shareholders), and urgent intervention by this Honourable Court is necessary to prevent irreparable harm,” one court filing said. Understanding Ndirangu’s removal To remove Ndirangu, the company’s board needed a majority vote of the shareholders. Court documents show that a trust (AT Group ESOP Trust)that holds unvested employee shares had to vote to satisfy that requirement. Ndirangu claims that the vote cast by the trust was illegal as the trust is inactive and lacks the right to vote her out. Ndirangu and her fellow petitioners own 20.83% of Africa’s Talking, while Gikandi and his team own 25.25% of the company. “If we exclude the 8th Respondent’s [AT Group ESOP Trust] invalid votes, the combined shareholding of ordinary shareholders in favor of the removal does not meet the necessary majority,” court documents said. “The applicants (led by Bilha) seek prompt resolution of this matter in the interest of justice, company stability, and shareholder protection,” reads a submission form to the courts, dated August 2023. Africa’s Talking was founded in 2010 by Bilha Ndirangu, Eston Kimani and Samuel Gikandi and became profitable between 2012 and 2013, according to one report. After bootstrapping the company for over seven years, the founders raised an $8.4 million Series A round in 2018, led by the International Finance Corporation (IFC). At the time, Ndirangu was COO and was promoted to CEO the following year. However, she left the company in 2021, in what court documents show was a forced exit. Gikandi then replaced her.
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Next Wave: How edtech can build the future of work
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 03 March, 2024 Edtech gained more popularity during the COVID pandemic, with many edtech startups—Nigeria’s uLesson and South Africa’s Foondamate, for example—thriving during the period. Between 2020 and 2021, funding for the edtech sector grew from $14.7 billion or 831 rounds in 2020 to $20.3 billion or 1,050 rounds in 2021—the highest peak in the sector. A few startups in that industry, like uLesson and Foondamate, targeted their services at pre-university pupils, often called K-12. But by the end of 2021, edtech’s initial use case for K-12 started to wobble. Investment in edtech startups in the last seven years. Chart by Stephen Agwaibor, TC Insights In 2022, edtech startups in Africa raised only $24.6 million or 0.7% of Africa’s total funding, according to data from Disrupt Africa. In the Big Deal’s report for January 2024, the only mention of edtech was an acquisition of Egyptian edtech Orcas by Baim, for an undisclosed amount. The rest of the report showed that agritech, fintech and climate tech attracted the most funding in January. In 2023, no edtech company was able to raise a venture round of $100 million or more, per Crunchbase. Year-to-date, global funding for edtech startups has fallen 89% to $2.2 billion or 232 rounds. Edtech has lofty aims, but there is a big question about whom the industry should be serving. Whom should edtech serve? Beyond the scary tale of a funding dry-up, what we are seeing here is edtech undergoing an interesting pivot many may have ignored. As the world healed from COVID, parents no longer needed or trusted digital schooling for their kids as much; they mostly found it to be an unnecessary extra expense added on to fees paid for brick-and-mortar schooling. uLesson, in recognition of the economic hardship its clients are facing, recently slashed educational software subscription fees by half indefinitely. But palliative moves like this can only do so much to boost the clientele of K-12 edtechs. Why? Physical schools are not going away anytime soon. Children have time to commit to the physical demands of learning; parents would therefore rather enrol their kids in a setting where their learning is easier to monitor and where there are minimal distractions. Besides, physical learning will always be a welcome development where screen time can cause eye fatigue and shortsightedness. Partner Content: Read: How Filmmakers Mart is changing filmmaking in Africa by solving production problems here. All that said, working professionals may be a stronger market for online education providers, as they either need to juggle necessary part-time education with full-time jobs; or get a skill-driven education in order to advance their careers. Thanks to our current learning economy, working professionals are upskilling towards in-demand roles, consistent with a reconfiguration of the labour market rooted in technological adoption. A 2021 Workplace Learning Trends Report by Udemy revealed that industries have increased demand for data analysis and data science expertise. Data like the above may be responsible for why edtech companies focused on skill-driven education for working professionals are either successful (AltSchool) or will be (Miva University). Next Wave continues after this ad. Talent PEO Africa launches in Kenya, offering comprehensive HR solutions for businesses. From EOR services to recruitment and HR consulting, we simplify operations for seamless growth. Partner with us to tap into Kenya’s talent, navigate regulations, and achieve success. Contact us at www.talentpeo.com or kenya@talentpeo.com. In recent times, Nigerian edtech startup, AltSchool, has garnered public trust with a track record of supporting about 60,000 learners across 105 countries since its inception in 2021. Its curriculum covers business, data, engineering, media, and the creative economy. Many of these courses are sought after in today’s work industries. Miva University, a Nigerian online university by the founders of uLesson, currently offers courses like cyber security, data science, software engineering, and business management—all listed as in-demand disciplines under the World Economic Forum (WEF) future of work in 2023. One of the goals of Miva University, according to its website, is to award its students degrees that get them hired. If edtech will thrive in 2024, it is worth considering that the days of schooling under-16 kids online may be well behind us. The parents who wield the power, resources and disposition to sign their children onto these platforms are more inclined to restrict their kids’ internet use. This is in contrast to working professionals whose concerns are tilted towards using education, by any means, to upgrade their skills. The future of edtech must therefore shift towards employability and the honing of skills that would matter in the future of work. Africa’s population is poised to double by 2050. With a median age population of below-20, this represents a huge talent pool that, if well harnessed by education, can fuel much-needed innovation. Joseph Olaoluwa Senior Reporter, TechCabal Thank you for reading this far. Feel free to email joseph.olaoluwa[at]bigcabal.com, with your thoughts about this edition of NextWave. Or just click reply to share your thoughts and feedback. 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 LinkedIn to stay engaged in our real-time conversations on
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👨🏿🚀TechCabal Daily – South Africa’s new limits
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Malawi’s tech scene isn’t perfect. It’s riddled with poor internet penetration at 24%, and complex regulations, but the country is still making this work. In fact, it’s one of the few African countries that’s actively working on a startup bill to help attract foreign investments. Here’s why Malawi’s government is putting its money where its mouth is to build a thriving tech hub. In today’s edition Nigeria suspends 4,000 BDCs Regulators in SA want new data rules South Africa’s business registry hacked Musk sues OpenAI The World Wide Web3 Opportunities Regulation Nigeria withdraws BDC operator licences BDC operators in Nigeria can’t catch a break just yet. Days after the Nigerian apex bank released a roaster of sweeping reforms against Bureau De Change operators in the country—which included setting a $500 transaction cap on the purchase and sales of the dollar by cash, selling FX to qualified BDC, and sending operators into hiding—the apex bank isn’t finished just yet. Last week, the CBN withdrew the licences of more than 4,000 BDCs, citing noncompliance with anti-money laundering and terrorism financing regulations, non-payment of required fees, and failure to render returns. The new reforms come days after the CBN reversed its three-year ban on supplying FX to BDCs. Under the new guidelines, BDCs can only sell foreign currency to customers at a maximum markup of 1% on top of the price they paid the CBN. If this works, it could align the country’s official exchange rates with its black market rates. While the overarching aim of the multiple reforms is keeping the dollar at bay against the naira, the CBN says it hopes to “bring some sanity to an industry that arguably no longer serves the interests of those whom it was meant to protect.” Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Regulation ICASA proposes new rules for South Africa’s cellular networks Across social media, we’ve seen reports of internet users complaining about poor data plans. If it’s not news about one network consuming more data than revealed, it’s another network redefining what a 24-hour data plan means. The South African government wants to stop that, and it proposed a rule in 2022, that says all data bundles must be valid for six months. However, concerns were raised by stakeholders regarding bundle expiry rules, out-of-bundle rates, and clarity on rollover and transfer provisions. Now, the Independent Communications Authority of South Africa (ICASA) has published a revised draft amendment to its End-user and Subscriber Service Charter (EUSSC) Regulations, following concerns raised by stakeholders. The proposed amendments: Mobile network bundles will be used based on their expiration order, with those expiring earliest being utilised first. Unused data on medium-term—7-30 days—and long-term bundles—over 30 days— will roll over. Networks must also notify users at 50%, 80%, and 100% of their bundle usage. Additionally, mandatory mobile data rollovers for up to three months post-activation will be enforced, along with the validity period of bundles being extended if a network fault prevents use. Consumers can also transfer bundles between SIM cards on the same network. style=”text-decoration: none; font-weight: 700 !important; font-style: normal !important; color:#14A673 !important;”Zoom out: The revised regulation is a positive development for South Africa’s 45.34 million active internet users, which includes approximately 26 million individuals utilising social media. It grants them greater autonomy over their data bundles. Cybersecurity South Africa’s business registry, CIPC, hacked In South Africa, there’s been a growing concern about cyberattacks on government entities. In 2020, the Ministry of Justice was hacked, and R10 million ($536,000) was stolen from the Guardian’s Fund. In August 2023, the Department of Defense was attacked in a cyber hack that leaked President Cyril Ramaphosa’s phone number. The trend isn’t dying down across the “cybercrime hub of Africa The news: In the country’s latest hack, on February 29, 2024, the Companies and Intellectual Property Commission (CIPC), responsible for managing roughly 2.1 million active businesses and overseeing intellectual property rights, experienced a data breach compromising their personal information and that of their at least 500 employees. Although the full extent of the compromised data remains undisclosed, 2.6 million people are estimated to have been affected. What’s the CIPC doing about it? To prevent further damage, specific CIPC systems were immediately shut down, but it is still unknown the motive behind the cyberattack and the responsible party. However, there are concerns regarding the exposure of sensitive information such as directors’ and owners’ details, as well as patent and trademark holders’ data. Affected clients are urged to monitor credit card transactions closely and authorise only known and valid requests. Secure payment gateway for your business Fincra’s payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through bank transfers, cards, virtual accounts and mobile money. Create a free account and start collecting NGN payments with Fincra. AI Elon Musk in legal wrangle with OpenAI OpenAI, makers of ChatGPT, in 2015 started as a non-profit research company focused on developing safe and beneficial artificial intelligence. Its founders—Elon Musk, Sam Altman and Ilya Sutskever—launched the company with one goal in mind: to develop super-intelligence for the good of all. Fast forward to 2018, and Microsoft waltzes in with a cool $1 billion, a move that would alter the direction of the company. While the cash flow was sweet, it raised eyebrows, particularly from Elon Musk who raised concerns about the company’s impending profit motives. Musk would later leave the company’s board in 2018 due to these concerns. By 2023, months after the release of ChatGPT, OpenAI switched gears from its initial non-profit mission and began pursuing profitability. This got Musk more infuriated, making him increasingly critical of the company—and the dangers of AI and artificial general intelligence. Now, the billionaire wants to settle the dispute
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Why Malawi’s nascent tech ecosystem is ripe for growth
Malawi is not exactly famous for its vibrant tech ecosystem as a result of several factors. The country has an internet penetration rate of only 24% in a population of 20 million people, a virtually non-existent venture capital ecosystem, and a limited presence of leading continental and global tech companies. However, due to efforts from the innovators, public and private sectors, as well as development institutions, this is slowly changing. In July, the country will for the first time, host the 2024 Africa Smart Cities Congress. The congress aims to promote smart city innovations from Malawi and the rest of Africa and present them to the world. The country was chosen for its efforts in building out smart cities as evidenced by the Mvera Innovation City, a smart city project in Lilongwe which is nearing completion. “The fact that we will have global innovators here shows that Malawi’s innovation is getting the recognition it deserves from the world,” said Christine Mhone, ambassador of the African Smart Cities Innovation Foundation. Even Africa’s most valuable startup, Flutterwave, is paving the way for entry into the Malawi market. The company recently received a license from the country’s central bank to facilitate remittance payments into the country. These developments beg the question, how exactly are Malawi’s ecosystem stakeholders changing the narrative about its tech innovation landscape? According to Vincent Kumwenda, former CEO of incubator mHub, these enabling policies, as well as programmes from international development partners and innovative entrepreneurs, have played a large role in growing the country’s ecosystem. Despite the progress made, issues of poor infrastructure, unclear regulatory frameworks, and lack of funding for innovators persist, Kumwenda told TechCabal. “There are efforts to address these challenges, so I would say, slowly and surely, we are on our way to becoming a tech hub of note.” mHub was one of the first digital hubs in Malawi. Image source: mHub The role of government and international organisations Malawi’s technology sector regulator, the Malawi Communications Regulatory Authority (MACRA), is trying to use its regulatory powers to strike a balance between enabling innovation and also ensuring that innovators abide by the country’s laws. Last year, Malawi was one of the first southern African nations to license Starlink to facilitate internet connectivity. On the other hand, MACRA also barred MultiChoice from increasing prices for its DStv service, leading to the pan-African broadcaster terminating service in the country. The two parties eventually reached an agreement to bring the service back. MACRA also recently signed an MOU with the organisers of the Africa Smart Cities Conference to offer support for the initiative. Besides enforcing regulatory compliance, MACRA is also actively involved in helping startups build innovative solutions. Through the Muuni Fund, an ICT research & innovation fund that aims to provide seed money to nurture and incubate local innovations across Malawi, MACRA is currently working with 70 startups across the country to help them launch technology products and services into the market. In the next financial year, the Muuni Fund aims to assist as many as 250 startups, an ambitious 257% from the current cohort. “The Muuni Fund encourages local solutions for local problems. But most importantly, it creates a sustainable framework that will allow local innovators to come to market, be competitive and survive,” added Suleman. In support of these initiatives by the public sector are international development institutions. As head of exploration of the United Nations Development Programme’s Accelerator Lab, McDonald Nyoni is responsible for identifying innovative local solutions that contribute to the achievement of the Sustainable Development Goals (SDGs). Some of the Lab’s mandates include identifying and supporting innovations that address some of Malawi’s pressing challenges, such as access to housing, financial inclusion, access to renewable energy sources and poverty eradication. In August 2023, UNDP Malawi launched Fin Mobile, a digital banking app for SMEs. Additionally, the Lab is also working with the government to build an innovation bridge portal which will connect innovators with the private sector and international organisations to explore potential synergies. “Because of the strategic partnerships with the government, I would say the future of innovation in Malawi is very bright,” Nyoni told TechCabal. “The Accelerator Lab’s external facing model allows us to address challenges which impact people, which significantly increases its impact.” It all comes down to the startups Because of challenges like lack of access to funding, technical talent, and a complex regulatory framework, the country does not have the most vibrant startup ecosystem. However, this could change soon. In addition to the Muuni Fund by MACRA, Malawi is currently in the process of drafting a startup bill which is expected to be tabled in parliament by the end of the year. The bill aims to address the challenges faced by startups in the country, including simplifying investing for foreign investors and also streamlining and simplifying regulatory requirements. One such startup is Mlimipay, founded by Stanislaus Sakwiya in 2021. The company has developed a digital wallet designed exclusively for smallholder farmers in Malawi who find difficulties accessing mainstream financial systems. Startups like MlimiPay are building innovations which promote inclusion. Image source: MlimiPay “In Malawi, access to funding as well as a complex regulatory framework are major hurdles to the success of startups,” Sakwinya told TechCabal. This point is reiterated by Samuel Chiwanda, co-founder of fintech startup ClickMobile. Founded in 2010, ClickMobile specialises in mobile messaging solutions via platforms such as SMS and USSD, which are vital for rural area dwellers where internet penetration is low. “Most people have brilliant ideas, but funding is very hard to come by. The little funding available is sometimes not best utilised by recipients,” Chiwanda said. To ensure that startups have access to technical talent and the requisite business development skills they need to build sustainable enterprises, incubators like Ntha Foundation are playing their part. Founded by Nthanda Manduwi in 2018, the foundation was one of eight hubs to receive $250,000 in funding from the Malawian government in 2021 to train 500 innovators in digital
Read MoreCBN revokes 4,173 BDC operator licenses one week after new guidelines
Nigeria’s Central Bank has revoked the license of more than 4,000 Bureau De Change operators (BDCs) weeks after sharing important rule changes for their operations. The affected operators failed to pay necessary fees, render returns or comply with anti-money laundering and terrorism financing regulations, the apex bank said in a statement on Friday. “The CBN is revising the regulatory and supervisory guidelines for Bureau de Change operations in Nigeria. Compliance with the new requirements will be mandatory for all stakeholders in the sector when the revised guidelines become effective,” the statement said. The revocation of the licences comes just four days after the Central Bank reversed its three-year stance on selling dollars to eligible BDCs. The U-turn came days after the Central Bank released new rules for BDCs that required them to be more transparent. Under the new rules, operators must have external auditors, digitally integrate with the CBN, and link all transactions to an active bank verification number (BVN). The Central Bank also increased the minimum capital requirements for BDCs to N2 billion for Tier 1 license holders and N500 million for Tier 2 licenses. This range of measures by the Central Bank seeks to give the apex bank insight into transactions from the parallel market. On Wednesday, the National Security Adviser (NSA) arrested two Binance executives after authorities demanded to see a list of Nigerians who use Binance for peer-to-peer trading of the USDT/NGN. “What we’re hoping to accomplish by this, frankly, is to bring some sanity to an industry that arguably no longer serves the interests of those whom it was meant to protect,” CBN governor Olayemi Cardoso said at the end of the rate-setting meeting on Tuesday. TechCabal reported on Monday that the fear of being arrested by officials of Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), has driven currency traders away from street trading. Nigerian regulators have declared open season on business. It’s already causing chaos
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