Kenyan EV startup Roam secures $24m to scale production
Roam, a Kenya-based electric vehicle company has raised $24 million in equity and debt to expand local manufacturing capabilities in Kenya, scale up production at its new 10,000 sqm Roam Park facility, invest in research and tooling for cost efficiencies, and streamline local and global supply chain networks. The $14 million Series A funding round was led by Equator Africa and participation from At One Ventures, TES Ventures, Renew Capital, The World We Want, and One Small Planet, among other prominent private and institutional investors. The $10 million debt facility was provided by the International Development Finance Corporation (DFC). The funding is significant and comes at a time when attention is shifting to electric vehicles as countries around the world make efforts to make the environment safer. EV sales are projected to reach 16.7 million in 2024, representing a 20% increase from the previous year, according to estimates from the BloombergNEF. Roam which designs, develops, and deploys electric motorcycles and buses said it has managed to capture or mitigate over 120,000 tonnes of carbon emissions. This is primarily the inspiration for investors like DFC in Roam. James Polan, Vice President of the Office of Development Credit at DFC said the debt facility to Roam aligns with its goals for a cleaner future. But transitioning to electric vehicles isn’t cheap with the price of batteries and building infrastructure for rollout making the cost for individual owners very expensive. The Kenyan government, however, is undeterred, as they have set a 5% target for new vehicles to be electric by the end of 2025. Roam and its rival BasiGo are at the forefront of ensuring the target is achieved by providing cheaper options for consumers in the country. Roam offers riders in the East African country payment flexibility and the option of battery ownership. This lets users charge their batteries at a standard household outlet and significantly reduces the cost of operations while increasing the ability to travel longer distances. “As Africa embraces the move toward electric vehicle technology, we are proud of our impact on the environment and livelihoods across Kenya and the wider continent. This funding is a critical step for Roam to achieve our strategic objectives in scaling up and increasing utility to our customers,” said Rajal Upadhyaya, chief financial officer of Roam. In line with the expansion, Roam will increase the utility of its motorcycles to riders through the deployment of Roam Hub stations. These are multiple open-architecture electric motorcycle charging stations that offer a wide array of after-sales services including the option to rent batteries for a flexible period. “At Equator, we are committed to building a future with efficient, accessible, and sustainable mobility. Roam’s innovative electric mobility platform is at the forefront of this transformation, and we are proud to provide catalytic funding that will enable Roam to build a cleaner, more equitable future for African cities,” said Nijhad Jamal, partner at Equator.
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Teesas wants to reduce the failure rate in Nigeria’s university entrance exams
Only 14 of every hundred students who took Nigeria’s university entrance exam in 2023 passed, highlighting a crisis in the country’s education system. The numbers for the last five years are dire, with college examination bodies like the Joint Admissions and Matriculation Board (JAMB) and the West African Examination Commission (WAEC) recording increased failure rates. Teesas, an edtech startup launched in 2021, believes it can lower these failure rates. The company analyses past questions from college entrance examinations—a massive dataset spanning the last 40 years of JAMB exams—which students can practise as part of their studying. Studying past questions isn’t novel; students have bought physical copies of these questions and practised them. But Teesas differentiates itself by also offering video tutorials from tutors. The startup offers a subscription model where students can access the video tutorials and the question bank for a ₦10,000 one-time plan while offering a question bank-only feature for just ₦2,000. The company also offers offline learning to address the internet challenges through its yearly premium plan of ₦10,000. This allows students to access the app and save and download video tutorials without an internet connection. Teesas’ solution is coming when WAEC is considering computer-based assessments for its exams. WAEC will begin conducting computer-based examination (CBE) for candidates writing its examination this February. According to Teesas CEO Izedonmwen, the edtech is building a new product to help students prepare for this shift. “We are bringing our JAMB/WAEC exam preparation product called Matric,” he said. Learners will access over 5,000 tutor-led videos that provide answers and tips to the most frequently asked SSCE and UTME questions from the last 40 years. “They also get the opportunity to take computer-based (CBT) mock exams, with detailed explanatory answers.” Teesas’ early adoption of CBT preparation allows students to familiarise themselves with the new format even as the system transitions. Since its launch, Teesas has raised $2 million in funding, and claims to have over 50,000 active users, with nearly 95% reporting a significant improvement in their understanding of key concepts. “We are an impact-focused business and as such, we track both profitability and impact metrics (learning journeys completed, exam pass rate, engagement levels, etc,” Izedonmwen told TechCabal. “We also aim to be a sustainable business, hence the focus on profitable growth.” How uLesson became an online university from an “extra lesson” company
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How to link NIN with Airtel, Glo, and 9mobile lines in 2024
In continuous compliance with regulatory directives, Nigerian networks are enforcing the need for customers to link their National Identification Numbers (NIN) to their phone lines. MTN subscribers have been receiving messages from MTN with warnings of line blockage if they fail to link NIN to their MTN line in 2024. This guide presents step-by-step instructions and methods through which subscribers can easily integrate their NIN with their Airtel, Glo, or 9mobile lines, facilitating regulatory compliance and ensuring uninterrupted telecommunication services. Let’s get into it. Link NIN with Airtel line in 2024 You can link your NIN to your Airtel line through three major ways. They include USSD, website, and Airtel Mobile App. 1. USSD Code Method Ready your NIN number Dial *346*3*NIN*121097# to generate your Virtual NIN (VNIN). Dial *996# and follow the prompts to confirm linkage using the VNIN. This USSD code method simplifies the process of linking NIN 2024 with your Airtel line. 2. Airtel Website Method Visit the Airtel NIN linking portal. Enter your Airtel phone number and email address. Click “Send OTP” and input the OTP received on your phone. Enter your 11-digit NIN number and click “Submit” to receive a confirmation message. Through the Airtel website method, you can effortlessly link NIN 2024 with your Airtel line. 3. MyAirtel App method Download and open the MyAirtel app. Log in with your Airtel credentials. Tap on the “Submit ID” option. Enter your 11-digit NIN number and follow the prompts to receive a confirmation message. Utilize the MyAirtel app method to conveniently link NIN 2024 with your Airtel line. Link NIN with Glo line in 2024 Here are the ways to link your Glo line to your NIN in 2024: 1. Glo NIN code method Dial *109# and follow the prompts to link your NIN to your Glo line. The Glo NIN code method offers a quick way to link NIN 2024 with your Glo line. 2. Glo NIN portal method Visit the Gloworld NIN Portal. Enter your details accurately, including first and last name (optional), phone number, NIN, and email address. Complete the process by entering the displayed two digits and clicking “Submit.” The Glo NIN portal method ensures a straightforward process to link NIN with your Glo line in 2024. 3. SMS method Text “NIN” to “109” to link your NIN to your Glo line. Then just follow the prompts you receive. 4. NIMC Mobile App method Download the MWS: NIMC MobileID app from the Google Play Store or Apple Store. Enter your NIN and phone number to get started. Create a 6-digit PIN and follow the prompts to link your phone number, receiving a confirmation message upon successful linkage. The NIMC mobile app method provides a convenient way to link NIN 2024 with your Glo line. Link NIN with 9mobile line in 2024 You can connect your NIN to your 9mobile line with the following methods: 1. NIMC Mobile App method Download the ‘MWS: NIMC Mobile ID’ from the Google Play Store or App Store. Launch the app, and enter your NIN and phone number. Verify with OTP and create a 6-digit PIN. Choose “LINK MY NUMBERS” on the dashboard to add and verify your 9mobile or Etisalat line, automatically linking your NIN to your SIM card. That’s about using the NIMC mobile app method to connect NIN with your 9mobile line in 2024. 2. USSD Code method Dial *996#. Reply with “1” to confirm if your NIN has been linked successfully. If not, enter “2” to link your 11-digit NIN or select option “3” to get information about NIN Registration centres across Nigeria. The USSD code method simplifies the process of linkingNIN 2024 with your 9mobile line. 3. 9mobile NIN Portal Method Go to the 9mobile NIN Portal. Tap on “Verify and Link your NIN Now” and follow the on-screen instructions to complete the process. The 9mobile NIN portal method offers a convenient way to NIN 2024 with your 9mobile line. Final thoughts on how to link NIN with line By following these step-by-step methods tailored to each network, linking your NIN to your Airtel, Glo, or 9mobile line becomes a seamless and hassle-free experience, ensuring compliance with regulatory requirements.
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Exploring AI-driven solutions for African agriculture
Africa is heavily reliant on agriculture. Over the past decade, agriculture has constituted 42-48% of total employment on the continent. Subsistence farming is a mainstay of many African countries, especially south of the Sahara, which boasts a quarter of the world’s arable land and has an estimated 33 million smallholder farms, with agriculture contributing to 17% of gross domestic product (GDP). Yet, the region produces only 10% of global output and imports most of the food it consumes. Around 82% of basic food imports still come from outside the continent. By 2021, food insecurity in Africa had risen alarmingly, affecting 794 million people—nearly 60% of its population. Different factors contribute to this conundrum. Climate change has played a debilitating role, with attendant risks such as the loss of terrestrial, marine, and coastal ecosystems, thereby contributing to food insecurity. The lack of large-scale industrialisation in the African agricultural sector is well-known, leading to far lower land productivity than the rest of the world. Another challenge is a wide investment gap. While several interventions have come from the African Development Bank (AfDB), the World Bank, and other multilateral institutions, government allocation to agriculture remains wanting. In 2021, the average government expenditure on agriculture in Africa was a meagre 4.1%. Private capital allocation—which is more efficient—also remains low. In the last decade, African agritech startups, per data from Agfunder, raised over $1.8 billion in funding. [Stephen Agwaibor/ TC Insights] However, the figure pales considerably when placed in perspective with worldwide funding figures. For comparison, African agritech startups in 2022 raised just a little over 2% of the $29.6 billion in total global funding within that sector.Despite these challenges, there are opportunities for agritech to solve some of these agelong problems with the aid of artificial intelligence (AI) and allied technologies. In an earlier report this year, we noted that Africa’s AI market is projected to reach $6.9bn in 2024, with widespread application across various sectors. We will explore use cases showing how AI can be beneficial. The case for precision agriculture A 2020 study on Nigeria’s agricultural sector noted that: Ninety percent of agricultural production in Nigeria is the output of inefficient methods and deficient input use by small-scale farmers. Nigeria uses 18kg/hectare of inorganic fertiliser, compared to a global average of 100kg/hectare. Only 5% of Nigerian farmers use and access seeds of improved varieties compared to 25% in East Africa and 60% in Asia. Ten tractors exist for every 100 hectares, compared to Indonesia, which has 241 tractors per 100 hectares. Another analysis by McKinsey determined that African agriculture had unrealized potential and could produce “two to three times more cereals and grains, which would add 20% more cereals and grains to global output.” [Stephen Agwaibor/ TC Insights] In light of these reasons, precision agriculture, which employs climate-smart solutions using advanced technology and sensor tools to aid crop management decisions and improve crop yield, has become vital. Other uses of AI in agriculture include pest and disease detection, harvesting and sorting, livestock management, and supply chain optimization. India’s Agricultural Success Story Powered by AI In 2020, the Indian centre of the World Economic Forum, in partnership with India’s Ministry of Agriculture and the state of Telangana, launched the AI4AI initiative (AI for Agriculture Innovation). Over eight months of workshops with smallholder farmers were organized, educating them on implementing new technologies, including AI, drones, and blockchain. The framework proposed incorporating smart farming and data-driven agriculture to achieve the end goals. [Source: WEF] The pilot program was tested among 7,000 chilli farmers for 18 months over three crop cycles. Here are the key findings: An important component of this initiative was a WhatsApp chatbot developed in collaboration with an open-source developer. Designed in the local language of the farmers, the chatbot provided farmers with timely prompts in line with the maturity stages of their crops. An agritech startup built soil testing centres powered by machine learning technology that provided AI-based quality testing and a digital platform for buyer-seller connections. Farmers reported a significant increase in net income: $800 per acre in a single crop cycle (6 months), double the average income. They also significantly reduced wastage, which was as high as 40% before the start of the initiative. Digital advisory services contributed to a 21% increase in chilli yield production per acre. Pesticide use decreased by 9%, and fertilizers dropped by 5%. Quality improvements led to an 8% increase in unit prices. The initiative’s success led the state government to increase the number of crops to five and scale it to ten districts covering 500,000 farmers. India’s success story, while commendable, is not isolated. In Senegal, there has been research into how combining algorithms with Internet of Things (IoT) detectors can develop sustainable automated irrigation systems. A World Bank study showed promising results from Ethiopia, Tanzania, and Uganda by highlighting how machine learning can help achieve transformational agriculture by optimizing clusters. Local startups are also buying into these solutions. Nigerian-based agritech Kitovu employs an AI and data-driven agronomic advisory that uses remote sensing to provide insights for reducing input costs, increasing yield, and offering precise inputs and personalised soil and crop health analysis. East Africa-based Grekkon also specializes in AI-powered irrigation and greenhouses that serve tens of thousands of farmers. Despite the stated benefits of AI, it still carries limitations. According to Adewale Adegoke, CEO of AgroXchange, an agricultural digital platform, the biggest challenge towards implementing precision agriculture remains data accessibility, especially for farmers who may find it tough to stay at pace with constantly emerging data. There are also cultural impediments, like convincing farmers steeped in one way of farming to adopt new technologies. Much of the work requires mass education and a strong will to power through on the part of entrepreneurs who are invested in adopting AI at scale. It is, however, no longer a matter of blind faith—we now have ample evidence to show that AI can supercharge Africa towards the next phase of the agricultural revolution.
Read MoreEx-Flutterwave VP launches Mira, a new way to eat and pay at restaurants
Ordering and paying for meals can often feel like an annoying long wait, and Mira, a fintech startup founded by Ted Oladele, a former VP of design and innovation at Flutterwave, wants to change that. Mira’s QR code payment system instantly lets you pay for your food, potentially reducing wait time and bringing predictability and order to the dining experience. Mira’s solution allows customers to scan a QR code, view their personalized bill, and pay instantly through bank transfer, Apple Pay, or card. Mira’s journey began with a lofty goal: eliminating the wait for ordering restaurant meals. Launched in 2022, Mira’s founder, Ted Oladele, was tired of the typical routine—sifting through paper menus, waiting for waiters, and facing limited payment options. He envisioned Mira as a comprehensive point-of-sale solution that improves the dining experience for both restaurants and customers. Mira hopes to create a world where users can browse digital menus, place orders and even split the bill – all from their phones. Mira claims to have onboarded over 100 restaurants in Lagos on its platform and charges an annual subscription fee of ₦15,000. The startup charges 2% per processed order. Mira raised $200,000 in funding in a family and friends round and has already processed $60,000. The startup also offers online vendors a link for customers to order directly from Instagram or WhatsApp, eliminating the fees charged by third-party food delivery platforms. In a crowded market dominated by established players like Paystack and Flutterwave, Mira’s fight for a slice of the pie requires differentiation and a clear value proposition. While they have transparent and competitive pricing with a 2% processing fee and an affordable subscription, scaling this model efficiently becomes a delicate dance as they strive to maintain affordability while ensuring profitability. Additionally, convincing restaurants to switch from entrenched systems demands robust marketing and outreach strategies. Oladele says the company is bullish on ramping up its scale and is looking to onboard all major restaurants across Lagos. According to Oladele, Mira’s solution allows businesses to increase profit margins and offers a payment tracking feature that helps businesses reconcile their accounts. How YC-backed Chowdeck hit ₦1 billion in monthly order value
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👨🏿🚀TechCabal Daily – Expensya’s expensive employee earnings
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy Valentine’s Day Today’s a good day to remind you that Wordle, the word-game that was sold for $1 million, was created by James Wardle who wanted to find a way to keep the love of his life engaged. The game has now been played over a billion times. Locket, an app that helps users share their photos to their friends’/lovers’ home screens, was built by Matt Moss as a present for his girlfriend. Even Zoom was the product of a founder who wanted to connect with his girlfriend long distance. Don’t settle for any less, people! Get your own million-dollar gift today. In today’s edition Did Flutterwave invest $3 million in PiggyVest? Nigeria’s corporate watchdog will tax content creators Expensya’s expensive employee earnings UN asks Sudan to halt one-week internet shutdown Injaro secures $17.5 million in funding The World Wide Web3 Opportunities Funding Did Flutterwave invest $3 million in PiggyVest? Since its inception in 2016, PiggyVest has reshaped the savings landscape in Nigeria, offering a platform for users to stash their funds and build financial discipline, with over $1.37 billion paid out to its customers. Now, in a move set to amplify its impact, PiggyVest’s parent company, PiggyTech, secured an undisclosed investment from Flutterwave, Africa’s most valuable payment technology firm in mid-2023. The deal, structured as a SAFE (Simple Agreement for Future Equity), involves a cash injection by Flutterwave into PiggyVest, with the promise of equity in a future funding round. What do we know? Sources familiar with the matter estimate Flutterwave’s investment at $3 million. Before now, Piggytech had only disclosed $1.1 million in venture funding raised in 2018. But the company shared that it has received $5 million in venture funding since 2016. What does this deal mean for PiggyVest? Find out here. 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 Nigeria’s corporate watchdog says content creators will pay tax Nigerian content creators have been caught in the middle. Yesterday, we reported that the Federal Inland Revenue Service (FIRS) made a swift reversal of initial plans to tax content creators, clarifying that personal income tax falls under state government purview. Amidst this taxation shift, the Corporate Affairs Commission (CAC)—an agency responsible for registering businesses operating in Nigeria—has reportedly issued a directive for social media content creators, particularly those with sizable followings on platforms such as Instagram and TikTok, to register their businesses in accordance with the Company and Allied Matters Act 2020. Why? The Registrar General of CAC, Hussaini Magaji stated that “ignorance of the law isn’t an excuse” and social media content creators, who are deriving substantial income from their online activities, are obligated by law to register their businesses with the Commission. Expanding the tax net: Magaji announced the directive during a recent meeting with representatives from Opay, a leading fintech company in Nigeria, that will see 300,000 business names from the fintech registered with the Commission. Last week, the Commission also began the registration of two million small businesses in partnership with Moniepoint, another fintech company in Nigeria. Magaji also disclosed the commission’s ambitious target to register 20 million businesses by 2024, aiming to create 50 million jobs for Nigerian youths. Zoom out: To enforce compliance, Magaji also announced that the commission would soon commence compliance checks to ensure that these businesses fulfill their tax obligations to the government. 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. Startups Expensya’s 2023 acquisition rewards employees with $10 million African tech startups are learning to think global and reap big rewards. Remember Tunisia’s InstaDeep, the AI powerhouse acquired by BioNTech for $682 million in January 2023? And Paystack, the Nigerian fintech giant snapped up by Stripe for $200 million in October 2020? Another great example is Expensiya. In June 2023, Expensya—a Tunisian expense management startup—joined the ranks of African tech success stories and was acquired by Medius, a private equity firm for over $100 million. While Expensya’s acquisition is a testament to the potential of African tech, it also shows how Africans can benefit from these global transactions. Selma Ribica, an angel investor in Expensya, shared her experience of reaping eightfold returns on her investment. Per TechCrunch, employees also received cash payouts, with 180 shareholders collectively earning $10 million from the deal. A journey to global success: Founded in 2014 by Karim Jouini (CEO) and Jihed Othmani (CTO), the Tunis-born but Paris-headquartered Expensya provides expense management tools for businesses—startups and big corporations—in Europe. It helps companies manage the reimbursable expenses incurred by their employees on one single platform. The spend management startup initially aimed for global markets. They knew their home market needed to be bigger and needed more maturity for their product. So, they built a solution for European businesses, starting in France and quickly adapting to other countries. Zoom out: Before its acquisition, Expensya reportedly grew its customer base to 6,000 businesses and 700,000 active individual users spread across 100 countries, securing $25.6 million in total funding. Internet UN asks Sudan to halt Internet shutdown United Nations Relief Coordinator Martin Griffiths, has asked Sudan to end its latest 1-week-old internet shutdown even as paramilitary forces turn to Starlink for reprieve. Zoom in: Last week Wednesday, Al Jazeera reported that all three —MTN, Zain Sudan, and the state-owned Sudatel Telecom Group—of Sudan’s main internet operators were offline. The latest halt in internet service which began Feb 2, 2024, is just another episode of internet shutdown in the war-torn country. In June 2019, Sudan experienced a 36-day internet blackout after President Omar al-Bashir was overthrown by the Sudanese army. Similarly, in 2020,
Read MoreExclusive: Flutterwave invested in PiggyVest’s parent company in 2023
Flutterwave, Africa’s most valuable startup, invested in Piggytech, the parent company of PiggyVest, the Nigerian fintech that made saving fashionable in mid-2023, TechCabal has learned. The deal is structured as a SAFE (Simple Agreement for Future Equity), which means Flutterwave made the cash investment into PiggyVest with the promise of receiving equity in a funding round in the future. “Terms of the deal are not being disclosed at the moment,” Piggyvest told TechCabal in an official statement confirming the deal. Two sources with knowledge of the matter put the investment amount at $3 million. Until this investment, Piggyvest had only disclosed $1.1 million in venture funding. The fintech giant said it had received $5 million in venture funding since 2016, a detail that has not been previously reported. The recent investment by Flutterwave comes amid PiggyVest’s broader push to raise external funding, which has been in the works for more than two years, according to people familiar with the situation. Disagreement over valuation terms and the global economic downturn have affected fundraising, those people said. Flutterwave’s investment allows the payments company to have a deeper relationship with PiggyVest while the latter forges ahead with its investment round. Flutterwave did not immediately respond to a request for comments. PiggyVest’s last major venture funding round was in 2018, when it raised $1.1 million from a roll call of angel investors. In 2021, Nigerian investment firm VFD Group said it had acquired a 12% stake in the company and became a major partner in the rollout of Pocket and Patronize. VFD Group’s acquisition of 12% in PiggyVest was a mix of cash investment and a merger of a competing VFD Group product, people with knowledge of the matter told TechCabal. PiggyVest has maintained decent growth while claiming to be profitable. The holding company posted annual revenue of around $25 million in 2021, while its 2022 revenue grew slightly to roughly $27 million, said people familiar with the company’s finances. Those figures have not been previously reported. Founded in 2016, PiggyVest is as old as Flutterwave and was created by four co-founders as a savings platform for young Nigerians looking for a better way to stash their money and learn financial discipline. The app allows people to keep funds in their savings accounts on the app and accrue interest on their deposits. Customers can only access their funds four times a year or incur a fee penalty for early withdrawal. Since its creation, the platform said it has paid out over ₦1.1 trillion ($1.37 billion*) to customers by the end of 2022 through fixed withdrawal timelines. The platform disbursed ₦400 billion ($497.3 million) last year alone and claims it now has over 4.5 million registered users on its wealth management service. However, PiggyVest’s business model has evolved over the last few years. The platform originally started out as a deposit holding service that invests consumer funds in government assets, such as bonds and treasury bills. Until the end of 2022, PiggyVest’s website claimed the company had a partnership with AIICO Capital, a licensed Nigerian fund manager, where customer deposits were “warehoused” and managed. The partnership helped PiggyVest navigate Nigeria’s regulatory environment, although it’s unclear how this partnership is structured. In recent years, PiggyVest has been reconstituted as a holding company called PiggyTech Global Holdings Limited, incorporated in the UK and Nigeria, according to information on the company’s website and B2B Hints, a business registration directory. The company operates multiple services, including PiggyVest, the wealth management app; Pocket, a consumer payments app; and Patronize, a point-of-sales product that allows retail stores to accept payments offline. Since mid-2023, PiggyVest’s website shows the holding company now has a fund manager license from the Securities and Exchange Commission (SEC) through an affiliate company, PV Capital, allowing it to manage customer assets as a fund manager. *Exchange rate used is $1 = N804.4
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👨🏿🚀TechCabal Daily – Nigeria’s content creator tax
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We’re excited to invite you to our inaugural edition of Moonshot Conversations 2024 in Nairobi, Kenya this Friday, February 16. Join us for an evening of discussion around all things AI, with cool demos from innovators doing interesting stuff with AI. It promises to be an evening filled with networking opportunities and fun at our post-event mixer. If you are an AI expert, enthusiast, regulator, or innovator within Kenya’s tech ecosystem, this is an experience not to be missed. Hurry now and register by clicking on the link below, we can’t wait to welcome you. Register now. In today’s edition Nigerian court frees Flutterwave’s $1.9 million Botswana clamps down on Starlink resellers Nigeria backtracks on content creator tax SA announces digital nomad visa Visa partners with Egyptian bank group The World Wide Web3 Opportunities Fintech Court orders banks to unfreeze accounts tied to Flutterwave’s $1.9 million hack Over the last two years, Flutterwave made headlines for being smack dab in the face of regulators. In Kenya, the courts froze $55 million of Flutterwave’s funds over fraud and money laundering claims in 2022. The case was withdrawn and Flutterwave recovered $52.5 million in March 2023, with $3 million left. The same regulators set the fintech free last week when a Kenyan high court unfroze the $3 million belonging to the fintech giant and two of its associates, ending the legal wrangle. Now, the fintech is focused on recovering lost funds in Nigeria. The fintech startup has received a second court order from a Lagos court, ordering 27 banks to unfreeze accounts tied to its 2023 hack of ₦2.9 billion ($1.9 million). This follows a court order last week to recover $24 million lost through unauthorised transactions by point of sale (PoS) merchants on October 10, 2023. What 2023 hack? In March 2023, Flutterwave denied a Techpoint report that hackers stole ₦2.9 billion($1.9 million) of customer funds from its account in February 2023. In its response to the story, Flutterwave said it noticed unusual activities in its systems and told users to activate safety protocols. While Flutterwave insisted that customers did not lose any funds, it scrambled to freeze accounts and initiate legal action in February 2023. As the Fintech company continued to pursue legal action, in April 2023, Flutterwave reportedly denied a second and third breach on March 1 and 14 respectively, which was estimated to be about ₦550 million ($365,448). Many of the account holders affected were cryptocurrency merchants who claimed that the money was moved from Flutterwave’s accounts, and used to buy USDT on crypto platform Binance. What now? One year after the ₦2.9 billion ($1.9 million) hack, and many other hacks, Flutterwave seems to still be recouping some lost funds. However, two banks— Access Bank and Providus Bank—allegedly remain defiant, refusing to comply with the court order to unfreeze accounts. 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. Internet Botswana joins Starlink to clamp down on resellers Yesterday, we reported that Starlink took action against some of its resellers in South Africa, citing violations of its terms of use and copyright infringements. At least 400 customers using reseller services, like StarSat, have reported blocked connections, and both Starlink and some southern African regulators have asked resellers to cease all unauthorised resales immediately. Botswana’s telecom regulator BOCRA, has joined the fray and has warned against importing, using, and reselling Starlink devices. BOCRA stated that the satellite internet service is not licensed in Botswana, and anyone engaging in these activities without authorisation from Starlink would be committing an offence against the company. Travellers attempting to enter Botswana with Starlink devices will also be denied entry. The service isn’t licensed in Botswana yet as the country rejected Starlink’s application to launch due to “missing requirements” that haven’t been addressed, delaying the planned Q4 2024 launch. A roaming loophole: While using Starlink devices in unlicensed countries is illegal, there’s a legal caveat. The “roaming” option allows users with legally purchased devices from licensed countries to utilise the service elsewhere on the continent. However, this doesn’t extend to importing or reselling. With pending applications and regulatory disputes in South Africa, Zimbabwe, Senegal and Botswana, and plans to expand to 19 more countries in Africa, it remains to be seen how the SpaceX-owned service intends to navigate regulatory hurdles and enforcement actions from regulators. 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. Policy Nigeria backtracks on content creator tax In Kenya, content creators are facing the heat with the country’s latest Finance Act. Skitmakers, digital creators, and TikTokers will have to pay a 1.5% tax on their earnings across social media. The Act was furiously contested before it came into force, but the Kenyan government didn’t budge. Nigeria’s, however, is. Last week, content creators in Nigeria briefly faced tax fears after the Federal Inland Revenue Service (FIRS) targeted them as a “major block of tax evaders,” and announced plans to tax them. However, there’s been a swift turnaround. The FIRS has now issued a new statement clarifying that it does not intend to tax individual content creators as they do not fall under its jurisdiction. According to an FIRS source, personal income tax, which governs individual creators, falls under state government jurisdiction. The FIRS itself focuses on Company Income Tax, targeting businesses exceeding ₦25 million ($16,638) in profits. A new framework in the works: Meanwhile, the FIRS is pushing forward with a new structure focused on modernising tax administration. According to Zacch Adedeji, the Executive Chairman of the FIRS, the revamped system will utilise technology and simplify the
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Bolaji Agbede to head Access Bank after Wigwe’s demise as share prices tumble by 6.26%
Access Corporation has appointed its most senior director to head the bank after Wigwe’s demise. Access Corporation, the parent company of Access Bank, Nigeria’s biggest bank by assets, has appointed the most senior executive director, Bolaji Agbede, to head the company two days after the death of Herbert Wigwe, the company’s founding Group CEO. Agbede will hold the position of Acting Group Chief Executive Officer (GCEO), according to a statement signed by the bank, joining the league of women banking CEOs in Nigeria. Wigwe had died along with his wife, son, and three other passengers, including Abimbola Ogunbanjo, the former chairman of the Nigerian Exchange Group (NGX), aboard a helicopter identified as a Eurocopter EC130 by the US Federal Aviation Administration on Sunday bound for Las Vegas. Share prices of Access Holdings tumbled by 6.26% on Monday in the Nigerian stock market. Lots of trading activities were observed around Access stocks as 24.90 million units of ACCESSCORP were sold yesterday—making it the highest traded stock this week. “The appointment of Agbede is in alignment with our robust succession planning practices,” said Abubakar Jimoh, chairman of Access Holdings in a statement published on the NGX. “We are strongly convinced that Agbede, being the company’s most senior executive, would provide the much-needed leadership to steer the company towards the attainment of its strategic vision,” he added. Agbede’s appointment as acting GCEO is subject to regulatory approvals by the Central Bank of Nigeria and comes as a fulfilment of the Access board’s promise to appoint a successor to build on the bank’s legacy of growth and operational excellence. Agbede holds a bachelor’s degree in Mathematics and Statistics from the University of Lagos (1990) and subsequently obtained a Master of Business Administration degree from Cranfield University in 2002. She is also a member of the Chartered Institute of Management UK and the Chartered Institute of Personnel Management of Nigeria. Before this appointment, Agbede spent two years serving as the bank’s most senior founding Executive Director in Business Support. She has spent 21 years at Access Bank, having first joined as the Assistant General Manager, responsible for managing the bank’s portfolio of chemical trading companies. Agbede is a versatile professional with over 27 years of experience in Human Resources management, customer relationship management, and banking operations. She has a proven record of successful people integration during mergers and acquisitions, culture transformation and execution of corporate strategies. She had formerly served as the bank’s head of Group Human Resources for 12 years between 2010 and 2022.
Read MoreEthiopia’s inflation jumps to 28.7% as central bank acknowledges alleviation difficulties
Inflation in Ethiopia has hit 28.7% with the National Bank of Ethiopia (NBE) acknowledging that it has been one of the country’s most challenging macroeconomic issues for many years. Based on its monetary policy statement, the country, home to nearly 120 million people, has struggled to tackle rising inflation, with an average inflation of 16% per year recorded over the last ten years. “Inflation outturns over the past two years have risen even beyond this average historical rate and persisted for much longer than initially expected,” read a statement from the NBE. According to data from the NBE, Ethiopia recorded consecutive months of inflation below 30%. In December 2023, the annual inflation rate increased to 28.7% from 28.3% in November 2023. Food prices, which comprise over half (53.5%) of the consumer price index (CPI) grew to 30.6% compared to the same period in 2022, and slightly higher than the 30% recorded in November 2023. The jump was linked to the nation’s internal conflict, the Tigray war. An overlap in malnutrition, disease, and food insecurity has worsened the situation. About 4 million people have also been affected by the ongoing drought. “Some supply-side and cost-push factors found to be statistically significant in contributing to inflation have included the internal conflict that disrupted local food transport/distribution networks and the large jump in key global commodity prices,” said the NBE. Other items besides food increased to 26.1% in December 2023 from 26.0% in the prior month, influenced by a weaker currency, the Ethiopian birr. Nonetheless, the NBE wants to reduce inflation to under 20% by June 2024 and under 10% by June 2025. They plan to do this by managing how much money is lent and cutting back on giving money directly to the government. Performance of the Ethiopian birr In December 2023, the birr lost value by 4.8%, ending the year at 56.1 birr for $1 from 53.6 birr recorded in December 2022, per a statement shared by Safaricom Ethiopia. The government made some changes in September 2022 to bring more foreign currency into the country. For instance, the NBE halted foreign currency use for purchasing in the country. Ethiopians can only keep foreign currencies for 30 days, instead of 90 when they return to the country from foreign trips. At the same time, the NBE made it easier for people to bring foreign currency into the country. Ethiopians can bring up to $4,000 without declaring the cash at customs. However, the amount of money non-citizens can bring in without alerting customs officials has more than tripled from $3,000 to $10,000.
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