inDrive drivers in Botswana face misconduct allegations
Drivers who use inDrive are facing a flurry of accusations of misconduct in Botswana. The company says it is investigating the cases. Drivers who use inDrive’s ride-hailing platform are facing misconduct allegations by passengers in Botswana. The allegations range from belligerent and uncouth behaviour to sexual harassment. inDrive told TechCabal that it is investigating some of the incidents and has blocked some drivers who were subjects of complaints. TechCabal spoke to four passengers who had these experiences first-hand. inDrive in talks with regulators as Botswana taxi association calls for its ban 27-year-old *Katso, who asked for anonymity for privacy reasons, told TechCabal that the first of her three bad experiences with inDrive started when she requested a ride costing P30, which the driver accepted. At her destination, Katso said the driver insisted that she pay P50 for the ride. “I told him that I would not do that because he agreed to the amount on the app. If he felt that was not sufficient, he could have simply not accepted the ride.” Katso said the driver acted aggressively but eventually drove left. According to Katso, in the other two incidents, the drivers were pleading with her to pay more, instead of forcing her. “They tell you that a lot of things are expensive in the country and they have no choice but to accept rides even if they feel the prices are too low. I don’t know if they say that to mean or just so that you won’t give them a bad rating on the app,” added Katso. inDrive’s unique proposition is that it allows drivers and passengers to negotiate and agree on a fee instead of letting an algorithm decide. However, reports from passengers suggest that drivers often agree with them on a price and then ask them to pay more at their destination. According to another complaint heard by TechCabal but could not be corroborated, one incident involved a driver who physically assaulted a female passenger because she would not pay the amount agreed on the app. In yet another incident, 26-year-old Tapiwa said she requested an inDrive on a weekend night but was shocked when the car that showed up did not match the one on the app. It also had a male passenger. “The driver told me that the male passenger was for his safety as drivers sometimes get robbed by passengers. I told him that i would not get into a cab late at night with two men and he proceeded to be rude and told me to get another cab, which I did,” Tapiwa told TechCabal. More incidents On a thread on the social media platform X, one user shared a voice recording of an irate driver upset that a passenger cancelled their ride. Another user shared that she has had a driver touching himself in a sexually suggestive manner during a ride while another shared that she was picked by a driver who looked debilitated, possibly off narcotics. Other cases shared by users include unroadworthy vehicles, drunk drivers and drivers who call passengers the next day using the numbers they provided on the app. Why inDrive has become popular among riders and drivers in Gaborone According to some of the passengers, some of the incidents happen with even high-rated drivers, making it difficult for them to be able to avoid such cases. inDrive responds TechCabal put the wide range of accusations to inDrive, to which the company responded that it was aware of some of the incidents and that it was conducting investigations to ascertain their accuracy and decide on the next steps. “In response to recent concerns, inDrive wants to assure the public that we are actively addressing the reported incidents,” the company said in an emailed response to techCabal.” We are aware of several such complaints and have promptly blocked the accounts of those drivers in question until further investigation.” The company also encouraged passengers to report all cases of drivers’ so it can take the necessary steps to prevent further issues. However, for Tapiwa, the frequency of the incidents has made her stop using the service altogether unless she absolutely has to. “I don’t think I’m going to use [inDrive] anytime soon. Maybe if I had an emergency or something, but probably not. I would rather use a cab recommended by someone I know,” she added. Despite having blown up in popularity in the country over the last few months, inDrive has also faced a fair amount of issues in its operations in Botswana, where it is the only ride-hailing company available. Last month, the country’s kombi and taxi association asked the transport regulator to ban the service, citing concerns that it was operating without the requisite licensing. *Name has been changed for anonymity.
Read MoreNavigating data protection in Africa’s digital landscape
Image source: Aratek Africa’s financial landscape is evolving with the advent of data and digitisation. The proliferation of smartphones and internet connectivity has led to a digital revolution across diverse sectors. For people and businesses, the convergence of finance and technology has deepened financial inclusion on the continent. This rise in financial transaction volume underscores the need for digital identification to help businesses conduct know-your-customer (KYC) checks and safeguard against fraud. Additionally, fraudsters often attempt to use counterfeit or stolen national IDs to gain unauthorized access to regulated financial services. This prompted the widespread adoption of biometrics for robust identity verification as relying solely on document collection for a comprehensive KYC process is no longer sufficient. Consolidation of national identity databases and identification cards has taken the forefront for governments across the continent as government services become digitised. According to the Smile Identity H1 KYC report, there has been a noteworthy enhancement in the uptime of national ID databases across Africa this year, compared to the latter half of 2022. Digital identity has become essential for accessing crucial government services like social welfare programs and tax payments, and they are fundamental prerequisites for obtaining functional IDs such as passports or driver’s licenses. The significant thing about digital ID Verification in Nigeria is that you can now verify anyone’s identity across the country,” said Esigie Aguele, co-founder and CEO VerifyMe Nigeria at the 8th edition of the Inside Identity Series by QoreID, in partnership with TechCabal, on Friday, September 15. Despite this considerable improvement, it is important to acknowledge that safeguarding individual sovereignty over data and personal identities has become non-negotiable as we for digital transformation and financial inclusion. The narratives of privacy breaches and data misuse underscore the need for stringent regulations, ethical practices, and informed consent mechanisms that prioritise the rights and privacy of every individual. Countries like Kenya, Nigeria, and South Africa have enacted data protection laws influenced by the EU’s General Data Protection Regulation (GDPR) to protect user data, ensure transparency, and hold businesses accountable for data handling practices. There has also been the consolidation of existing laws by several other countries in Africa to strengthen their data protection legal and regulatory framework. However, Africa’s fragmented regulatory landscape remains a problem that requires a harmonised approach that respects the sovereignty of each nation while promoting regional collaboration. Striking this balance requires active participation and dialogue among stakeholders: governments, financial institutions, technology providers, and, most importantly, the people whose lives will be impacted by these advancements. According to Saruni Maina, associate VP of Stablecoins segment at Flutterwave, “When it comes to regulations regarding compliance and data sharing, Africa needs to operate like a country to integrate data protection requirements or laws that are region-wide.” Striking a harmonious balance involves crafting policies that acknowledge the unique identities and circumstances within Africa while fostering cross-border collaboration to enhance financial inclusivity. Another critical aspect of this dialogue involves fostering digital literacy and educating individuals about the value and potential risks associated with sharing their data. Informed citizens are empowered citizens, capable of making conscious decisions about their data and its usage. Additionally, transparency in data practices and easy-to-understand consent mechanisms are essential to build trust between all stakeholders. Transparency plays a pivotal role in building trust and encouraging active participation from the public. People need to understand the advantages of sharing their data and engaging in robust ID verification processes. Ensuring comprehension, along with easy-to-understand consent procedures, empowers individuals to make informed decisions about their data sharing and identity verification. Data protection expert Ilamosi Ekenimoh, believes: “There needs to be more transparency by companies and regulators. People need to know what you’re using their data for, to trust you with their information.”The importance of a secure and reliable digital identity system cannot be overstated in an increasingly digitised world. However, there is also an equal need to balance these innovations with safeguarding data and privacy. Esigie recommends that the government needs to have non-technological discussions to provide structure for innovators to build technology on. ******* This article is part of the Inside Identity Series brought to you by TechCabal in partnership with QoreID. QoreID is a dedicated digital identity and analytics solution for B2B.
Read MoreTalent-sourcing firm Outsized closes Series A round led by Knife Capital
Outsized has closed an undisclosed Series A round led by Cape Town-based firm Knife Capital. CEO Johann van Nierken expounded more on the business and recent fundraising. Talent-sourcing firm Outsized has announced the closing of its undisclosed Series A round led by Knife Capital. Other investors included Adrian Durham, founder of the global wealth management platform FNZ Group. The investment will be used to grow sales and engineering teams, expand in existing regions, and accelerate product development for both enterprise clients and independent talent. Founded in 2016, Outsized offers enterprises access to a curated network of 25,000 vetted, independent professionals. Its AI-powered platforms claim to solve the pain point of companies in emerging markets having no place to access professional, highly skilled independent contractors. “As a young firm, we’re already a key partner to a large number of management consulting firms and major enterprises. This funding is a game-changer, paving the way for new, innovative solutions for our clients and talent,” said Niclas Thelander, founder and CMO of Outsized. For lead investor Knife Capital, Outsized’s strong unit economics and achievement of its growth targets was the motivating factor for backing the startup. “The team has demonstrated that they can execute and do justice to the scale of the opportunity. Most of the future growth in the global freelance platform market will come from the very geographies and segments of the market where Outsized is already a leader, so the business is well poised,” said Keet van Zyl, co-founding partner at Knife Capital. To get a further understanding of Outsized’s and how the investment will contribute towards the company’s growth aspirations, TechCabal had a quick chat with CEO Johann van Niekerk following the funding announcement. Please expound on Outsized and the problem you are solving JN: Many large employers are moving towards a model where they are making use of flexible resourcing or want to make use of flexible resourcing. But for each of them to have the capability and the capacity to source independent professionals, curate them, vet them, and deploy them is an enormous task. That’s where Outsized comes in. In South Africa, for instance, when we started in 2018, most companies would have thought of employment in terms of permanent outsourcing and consulting. There were a couple of independent consultants floating around the market, but flexible outsourcing, as a business model and as a key part of acquiring talent was not there. And we saw this happening in other markets too. So we started servicing this and the more clients started using it, the more interested they were. Then of course, COVID hit and once the dust had settled, it had opened the eyes of many employers that they could employ people on a remote basis. And if you can employ people on a remote basis, you can go for the best talent, regardless of where they are. So that’s the problem that we are solving. In many instances, the most logical choice is to put somebody on contract for a while and we make that viable and easy. How big would you say this pain point is, especially in Africa? JN: It is a $5 billion global market. To put a number in Africa would be difficult but we’re very bullish that we are catching this at the early stages. But what I would say is that it’s definitely in the hundreds of millions of dollars on the continent. The exciting part for us is exposing the talent that we have in our markets like Africa to developed markets like Europe, the US, and Australia. What was the fundraising process like and where are the raised funds going to be invested? JN: The process has been an illuminating one because it took a little bit longer than we anticipated. But I think on the counter to that was that Outsized has an established proposition that works. So we were in a position where we didn’t need the money but rather, we wanted the money to grow and to make a substantial difference in a shorter space of time, rather than just to carry on growing at an organic pace. So we’re very happy with the outcome. We think we’ve got the right partners. We know that compared to other businesses that are effectively funded by the funds raised, we’re not, you know, we’re in a luxurious position. In terms of the deployment of the funds, there are three areas of focus for us; the supply, demand, and the market. So that’s really where we’re going to be spending the money very broadly in those three areas. So in terms of the demand, that is going to be in terms of enhancing our capabilities in terms of reaching clients in new sectors and geographies. In terms of the marketplace, we will be fast-tracking our technology to bring more efficiency to it. Finally, in terms of supply, we have a lot of work that we want to do in terms of making Outsized the home for independent professionals. So we need to find them, meet them, service them. We already have thousands of them on the platform, but we want to 10x and even 100x that so that every independent contractor in the markets where we operate knows that Outsized is a great platform to be on. Additionally, we would like to introduce value-adding services for our freelancers like a community platform where they can engage with each other. What’s next for Outsized? JN: Outsized has several new products in the works, including new modules for enterprise clients and services for professional freelancers. The integration of AI technology into Outsized’s product offerings and core operations is already underway, enhancing the user experience for both clients and talent. We are a business focused on growth markets and Africa is a big part of that. We are very keen to explore opportunities and have certainly done some work outside of South Africa and other places in Africa, but not where
Read MoreExclusive: Majorel will lay off 200 employees as it loses Meta’s content moderation business
Following a court order in March restraining Majorel from going on with a Meta content moderation contract, the company has begun laying off 200 employees. Majorel Kenya, a business process outsourcing (BPO) company, has begun a redundancy process and will lay off 200 of its 1,200 employees after losing a content moderation contract from social media giant Meta. The company confirmed the layoffs in an email to TechCabal today. “Unfortunately, and after careful consideration, we notified approximately 200 of our employees in Nairobi of the commencement of a potential redundancy process.” Per Majorel’s email, the layoffs result from “restrictions placed on Majorel from proceeding with a particular client contract due to a court order that has been in place since March 2023.” While Majorel did not mention the client’s name, reliable sources and previous TechCabal reports show that the client is the social media company Meta. In January 2023, Meta’s content moderation partner in Africa, Sama, announced it would close that part of its business, effectively ending its contract with Meta. The move led to the dismissal of 260 content moderators. Forty-three of those moderators went to court to challenge their dismissal by Sama and Meta. While that lawsuit was ongoing, Meta moved its moderation business to Majorel, but soon got into more trouble. In March 2023, a Kenyan court granted an emergency order preventing Sama from firing the moderators and Meta from hiring a new content moderation partner. Majorel also became caught up in a lawsuit after the former moderators said they were discriminated against when they applied for new jobs at Majorel solely because of their earlier work experience with Sama. Part of the claims in that lawsuit is that Meta insisted that Majorel should not hire any moderator let go by Sama. Meta has repeatedly argued that the Employment and Labour Relations Court does not have jurisdiction to rule on the matter. Sama and Meta have appealed the ruling, and the lawsuit is continuing. Techcrunch reported that attempts to settle the issue out of court with the sacked moderators stalled this week. Per Techcrunch, “The attorney representing the moderators told the court that the mediation was not successful as they “felt there was no genuine effort from the respondents [Meta, Sama and Majorel] to reach an out-of-court settlement.” Majorel’s exit from content moderation for Meta means that about 200 employees will lose their jobs. A source familiar with the matter told TechCabal that affected employees will leave in mid-November; Majorel confirmed this timeline in an email to TechCabal. Two sources said some of the affected workers are waiting for the end of the redundancy process before considering possible legal action against Majorel. At the heart of this potential lawsuit are some workers as part of their severance pay. Majorel reportedly had some employees on new part-time contracts to secure new client deals. Those employees who signed the part-time contract will only receive one month’s salary as an exit package instead of the usual three months. The same source said the affected employees are seeking a more substantial severance. Some employees will be relocated to Mombasa Majorel will also relocate some of its workers from the Nairobi office to Mombasa. The affected groups responsible for handling the Bolt business have been instructed to report to their new workstations before the end of the year. One current employee told TechCabal that they wouldn’t be relocating to the new office because it’s too far, and the company hasn’t provided them with sufficient resources for relocation. According to employees, Majorel is offering KES 20,000 (about $134) for the relocation exercise. Another source suggested that Majorel is implementing this change to nudge some employees to resign.
Read MoreHow to get stamped MPesa statement online 2023
You may need a bank statement for some registrations sometimes, but going to the bank to queue can be exhausting. Safaricom’s M-PESA service allows customers to access their stamped MPESA statement online. This service, aptly named “M-PESA Statement,” empowers users to effortlessly generate their transaction records at their fingertips. Here’s a guide on how to make the most of this handy feature. How does this service work? The Mpesa Statement service simplifies the process of obtaining your transaction history. Instead of making a trip to a Safaricom Shop, you can now self-generate your e-stamped statements from your mobile phone. Here’s how it works: 1. Request Statements: Customers can request statements for specific dates whenever they need them. This feature is available on demand, giving you control of your financial records. 2. E-Stamped Verification: The generated statements are e-stamped and verified as authentic documents from Safaricom. This means you can trust the accuracy of the information without the need for physical stamps or visits to the Safaricom shop. 3. Easy Sign-Up: To access e-statements, simply follow the straightforward sign-up process on your M-PESA line by dialling *334#. This makes it convenient for customers to access their statements while on the go. 4. Data Protection: M-PESA Statement ensures that your sensitive customer details, such as mobile numbers, are protected. Information on the statement is minimized in accordance with data protection laws, prioritising your privacy. 5. Free for all: The best part is that this service is free and accessible to all registered M-PESA customers. Regardless of your usage or subscription type, you can take advantage of this valuable tool. How to access your MPESA statement To access your MPESA statement, you have two options: through the M-PESA App or via the *334# menu. Via M-PESA App 1. Log in to the M-PESA App. 2. Enter your M-PESA PIN for security. 3. On the home page, select “M-PESA Statements.” 4. Choose the desired month for the statement. 5. Select “Export Statements.” 6. Click “Generate Statements,” and your statement will be downloaded to your device. Via USSD *334# Menu 1. Dial *334# on your M-PESA line. 2. Select “My Account.” 3. Choose “M-PESA Statement.” 4. Select “Request Statement.” 5. Specify the period for your statement. 6. Enter the recipient’s email address where you want the statement to be sent. 7. Confirm the recipient’s email address. 8. Enter your M-PESA PIN for verification. 9. You will receive a notification SMS with a code that you can use to access your statement. Final thoughts on getting your Mpesa statement With this user-friendly service, Safaricom has made it incredibly easy for M-PESA customers to stay on top of their financial records, all while ensuring data protection and accessibility for everyone.
Read MoreHow to buy Telkom airtime with MPesa 2023
Telkom subscribers can conveniently buy airtime using M-Pesa. And the process is very seamless and similar to buying airtime on Airtel using M-pesa. Here we guide you through the steps to buy your Telkom airtime using MPesa. 1. Go to the M-Pesa menu To begin the process, access your M-Pesa menu on your mobile phone. 2. Select ‘Pay-Bill’ Once you’ve accessed the M-Pesa menu, navigate to the “Pay Bill” option. This feature allows you to make payments to various businesses and services, including Telkom. After selecting “Pay Bill,” you’ll be prompted to enter the business number. For Telkom, the designated business number is 220220. This unique identifier ensures that your payment goes to the right recipient. 3. Enter Account No. TELKXXXXXX You’ll be required to enter your Telkom account number. This is vital to ensure that your airtime is credited to your Telkom account accurately. Your Telkom account number should be in the format TELKXXXXXX, where XXXXXX represents your Telkom mobile number. 4. Enter the amount of Telkom airtime you need to buy with MPesa Enter the airtime amount you need. Double-check the amount to ensure it matches your bill, as errors may not be reversible. 5. Enter your M-Pesa PIN then send To confirm the payment, you’ll need to enter your M-Pesa PIN, which adds an extra layer of security to your transaction. Once your PIN is entered, review all the details to make sure they are correct, and then click “Send.” And that’s it! You’ve successfully bought your Telkom airtime using M-Pesa. Precautions when you want to buy Telkom airtime with M-Pesa Verify Recipient: Double-check the recipient’s mobile number to avoid sending airtime to the wrong person. Transaction Amount: Ensure you enter the correct airtime value to prevent overcharging or underloading. Secure PIN: Safeguard your M-Pesa PIN to prevent unauthorized transactions or misuse. Confirmation Message: Always review the confirmation message before completing the transaction to ensure accuracy.
Read MoreExclusive: Flutterwave’s biggest revenue driver in 2023 is its enterprise segment
In an exclusive interview with TechCabal, Ross Haider, chief sales officer at Flutterwave, explained the company’s highest revenue-generating segment and the thinking behind the recent rollout of products. Over the last few years, Flutterwave has doubled down on consumer payment services with new products such as Send and Swap. However, in a chat with TechCabal, the company’s head chief sales officer, Ross Haider, said that enterprise services remain the most significant revenue driver for Flutterwave. “Based on our internal numbers, enterprise probably leads the way, and consumer is catching up. So it won’t be unfair to say that probably by the middle of 2024, both will be driving similar numbers,” Haider said. Flutterwave was founded in 2016 by Olugbenga ‘GB’ Agboola and Iyin Aboyeji to provide payment solutions to African merchants and everyday consumers. The business has scaled to several countries and supports other companies, including MTN and ride-hailing company Uber. But the company has attempted to go big in consumer payments. It launched Barter as a super app offering everything from airtime recharges to international remittances. But the product has struggled since it launched despite Flutterwave’s best efforts. In 2021, Flutterwave introduced Send, an international payments app that debuted with a notable partnership with Grammy-award-winning artist Wizkid. Over the last six months, and thanks to recent reforms by the Nigerian government, Flutterwave is reporting faster adoption on Send, its CEO told TechCabal. As listed on its website, Flutterwave offers a range of payment products for individuals, startups, and businesses. Under the Enterprise segment, its offerings include helping companies to accept online payments, cross-border payouts in different currencies, point-of-sale devices, virtual cards for business expenses, no-collateral loans, and recently Swap, a new product digitises the process of getting foreign exchange for Nigerians with the backing of Nigeria’s Central Bank. For the consumer segment, products include the payments app SendApp, a marketplace to shop from online businesses, buying event tickets, Swap, and Tuition, a product that allows African students to pay their international school fees in their local currencies. Flutterwave’s plan to float an initial public offering (IPO) has been in the works since last year but was delayed by the company’s regulatory troubles in Kenya. In August, Bloomberg reported that the fintech is still pressing ahead with the plan, though its CEO Agboola admitted that “the markets aren’t great right now,” a telltale sign that the listing could be slowed down. “When it is time, we will let you know for sure. Currently, we focus on customers, revenue, experience, and digital market expansion,” Agboola told TechCabal at an event in September. Haider said going public won’t affect the company’s sales and growth. “I don’t have any timeline on when or how the IPO would look, but I can tell you that from a growth perspective, we have seen tremendous growth within the organization. It [the IPO] doesn’t impact our sales operations in any way,” he told TechCabal.
Read More👨🏿🚀TechCabal Daily – Banking against Kenya’s data laws
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF The Utiva Scholarship is still up for grabs, but it expires today! Don’t miss this chance to win a full tuition scholarship to any Utiva programme of your choice. To enter, simply share your story with a photo of you from Moonshot on social media, tag Utiva, and use the hashtags #UtivaScholarship and #MoonshotbyTechcabal. So what are you waiting for? Share your story! In today’s edition Patricia denies having physical offices in Nigeria Kippa shuts down KippaPay World Bank suggest changes for Kenya’s data laws Vodacom fined R1 million Funding tracker The World Wide Web3 Job Opportunities Startups Patricia denies having physical offices in Nigeria If you’ve been online this week, then you’ve probably seen a TikTok where a concerned customer allegedly visits crypto startup Patricia’s office to find it empty. If you did, we’ve got news: Patricia says it doesn’t have physical offices in Nigeria. Yesterday, CEO Hanu Fejiro confirmed to TechCabal that the startup is fully remote. “The office in the video is an innovation hub set up (we announced in 2022), to offer free working spaces to Devs and Crypto enthusiasts, Patricia does not actively operate from that office,” he said. Fejiro also noted that the startup moved its headquarters to Lithuania in 2021 after Nigeria’s apex bank banned the country’s financial institutions from trading crypto. A new offer for customers: The CEO also confirmed that users with assets on the platform can now exchange their assets for shares. The offer was reported by TechPoint Africa earlier this week. In an email to TechCabal, the CEO revealed that the offer was initially proposed by numerous users. For users who agree, the shares will reportedly be managed by an SEC-licensed third-party trustee. The big picture: Patricia may find that its offer is a hard one to swallow for several users who have had their funds stuck on the platform since April 2023. So far, little has assuaged users doubts, especially not a unilateral conversion of user funds into the Patricia token. The startup, earlier this month, announced to frustrated users that it’s raising funds that will allow it relaunch its app and repay customers. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Fintech Kippa exits the agency banking business Kippa CEO Kennedy-Ekezie Kippa is shifting its focus to its core product. The Nigerian fintech, which provides bookkeeping and finance management tools for small businesses, is discontinuing its agency banking business, KippaPay. The startup also plans to lay off 40 employees associated with the product. In an official announcement, the company declared that KippaPay would be discontinued starting November 15. Sources also claim layoff notices have been sent out to affected staff, with their final day set for November 30. What went wrong? In September 2022,Kippa secured a super agent banking licence and then launched KippaPay. The startup’s late entry into the agency banking market was a disadvantage considering market leaders like TeamApt—now MoniePoint—and OPay both had headstarts in 2018. Also, the Nigerian economy was already struggling, making Kippa’s target customers price-sensitive. The devaluation of the naira made matters worse, increasing the cost of acquiring and maintaining POS terminals. This compounded Kippa’s difficulties as it competed with well-established players in the field. However, the company says the decision to discontinue KippaPay is part of a strategic effort to streamline its product offerings and focus on the most financially viable and successful aspects of its business. Zoom out: A source familiar with the company suggests that in the coming months, Kippa is also considering the possible discontinuation of Kippa Start, its business registration service that allows customers to register their small businesses online for ₦20,000 ($26).This would leave the company focusing on its core bookkeeping app, which has been popular among small business owners and reportedly has over 500,000 users. Paystack is live in Kenya After 10 months in private beta, Paystack announced that all business in Kenya could now accept payments with our growth tools. Learn more → Regulation World Bank suggest changes to Kenya’s data protection laws GIF source: Tenor The World Bank is flexing Kenya’s data protection laws. This week, the international financial organisation suggested changes to the Kenyan Data Protection Act of 2019, advising the Kenyan government against the localisation of data. What changes? The global lender has asked Kenya to revoke a law that forces companies to store sensitive personal data on servers located within the country. The World Bank says the law is limiting cross-border trade in digital services. It’s asking Kenya to upgrade its current Data Protection Act and adopt compatible and interoperable standards. It also adviced the scrapping of data localisation requirement for the Kenya’s Health Information System Policy. The big picture: The World Bank’s report proposes a flexible and standardised data sharing system for Eastern Africa, including countries outside the East African Community (EAC). The goal is to create a unified data market in the region by facilitating the integration of data processing and storage requirements. These suggestions from the global lender, however, are questionable in a time when other regions across the world are clamouring for localised data centres to protect the interest of their citizens. Should we be asking Kenya to review laws that many other regions, including the EU, are now enacting? Telecom Vodacom fined $52,666 for unfair contract cancellation fees GIF source: Tenor Vodacom has been caught in the act. The South African mobile network operator has been slapped with a R1 million ($52,666) administrative fine by the National Consumer Tribunal. Why? Vodacom was found guilty of violating sections of the Consumer Protection Act (CPA) by imposing hefty contract cancellation penalty fees. Between 2020 and 2022, Vodacom imposed a cancellation penalty of 75% of the remaining balance of clients’ fixed-term contracts on clients that cancelled their contracts early. This effectively denied
Read MorePatricia denies having physical offices, confirms offer to customers to convert debt tokens to company shares
Patricia has said it doesn’t have physical offices in Nigeria. The company also confirmed that it offered customers the option to convert their deposits to shares. Nigeria-focused crypto platform, Patricia has reacted to a video of its purported office making rounds on social media. The video, made by a frustrated customer, showed an empty workspace believed to be Patricia’s office, insinuating that the company had absconded with customers’ funds. In May, TechCabal reported that Patricia lost $2 million to a hack. While it has held town hall meetings and shared several plans around repaying customers, it has been met with skepticism. At its last town hall, it clarified a plan to convert user assets to Patricia tokens. With customers losing patience, the video that was posted on Instagram suggested that a customer had hoped to get answers from Patricia’s physical office. But in an email response to TechCabal, Hanu Fejiro, the company’s CEO, said it runs a fully remote structure. “The office in the video is an innovation hub set up (we announced in 2022), to offer free working spaces to Devs and Crypto enthusiasts, Patricia does not actively operate from that office,” he said. According to Fejiro, the company moved its headquarters to Villanius, Lithuania after the Central Bank of Nigeria (CBN) banned financial institutions from trading cryptocurrencies in 2021. “Our business model allows us and we have invested in infrastructure to run a fully remote model with team members spread across continents. As it stands, we do not have a registered office in Nigeria.” Fejiro also confirmed reports from earlier in the week that the company is asking users to convert their debt tokens to shares in the company. He said the move “forms an integral component of our strategy for fundraising and reorganizing our debts.” TechCabal had reported that the Lithuania-based company is raising new funds in its latest move to repay customers. Fejiro disclosed in the email that the company is “affording our users the opportunity to transform their debt tokens into convertible notes at a favorable discount in Patricia.” He claimed that numerous users have previously approached the company with the proposal and now Patricia is embracing it. “Please note that these shares will be managed by a SEC license trusted third-party, ensuring complete transparency,” he added. Patricia’s decision to convert the rest of its customers’ assets into a debt management token—the Patricia token—was met with mixed reactions from customers. The company is hoping that it can successfully use the debt management tokens to repay its customers, but its repayment plan is tied to the company’s profitability. But Patricia will have hard time convincing frustrated customers who want access to their money. Since April, customers have been unable to withdraw funds from the Patricia Plus app which triggered a bank run. Speaking at a virtual town hall meeting with customers on September 29, Patricia’s CEO disclosed that the Patricia Plus app—which will be relaunched soon—is currently under beta testing. Fejiro said in the email that customers have been notified of the plan to redeem their balances in batches as soon as the new app is launched.
Read MoreInside Savant’s 20 years of backing South African hardware and deeptech startups
Francois Malan, incubator CEO at investment firm Savant Capital, speaks on the firm’s investment strategy over the last 20 years, as well as the future of hardware and deeptech in South Africa. In this episode of Ask An Investor, TechCabal caught up with Francois Malan, the incubator CEO at South Africa-based venture capital firm, Savant. Founded in 2004, Savant focuses on making investments in hardware and deeptech startups in South Africa. Savant was founded on the need to bridge the funding gap which existed for technology businesses. It initially started offering incubation support for startups, and in 2019 added a venture investment element after it raised its first fund. With over 20 portfolio companies, Savant has invested in sectors ranging from agritech to healthtech, with a keen focus on also providing technical support via an in-house incubator in addition to the capital injection. The firm has so far raised one fund, the Savant Venture Fund I, which is almost fully deployed. A second fund worth R500 million is in the pipeline. Please share more about Savant Francois Malan: Savant was founded in 2004, by Nick Allen and Kate Turner Smith who were, at the time, coming out of the government-funded Life Sciences incubator and realising they they very limited in their abilities to really help technology businesses. So we started off as an incubator and operated as an incubator up to 2019. By that time, we were also managing a seed fund on behalf of the Technology Innovation Agency and finding funding for our companies otherwise. We then established the Savant Venture Fund I based on the pipeline that we had available, with support from the SA SME fund and also the IDC and TR along as additional LPs. So we’ve got various components to surround the venture fund, one being the incubator where we build businesses and then also an investment readiness programme, which we launched for the first time in 2022. We’ll be running a second iteration of that in the coming year. Can you please expound more on the fund and the type of investments it makes? FM: We have approximately R155 million (~$8 million) in assets under management in this component of funding available to us. We have invested in 23 businesses over the last four and a half years, varying in stages from pre-seed to seed and pre-Series A. We invest in hardware and deeptech-focused businesses solving real-world problems with strong science and engineering innovations. Our portfolio has startups in agritech, healthtech, cleantech, and much more. We are in the process of investing in a semiconductor startup based in Pretoria. We have found a range of really fantastic innovators and scientists and engineers in the local market who are doing really fantastic stuff and that’s where we like to play. You recently made an investment in a startup called BurnStar. Can you please share more details on that FM: BurnStar is an early-stage business in the hydrogen space. They make clean hydrogen which is extremely cost-competitive and carbon-friendly. It is a world-leading technology in the renewable energy space not only as an energy carrier but also to replace dirty hydrogen in other applications like steel manufacturing and industrial processing. It was founded by Johan Brandt about four years ago based on his PhD research and we bought into the novelty of the technology and the commercial application of it. What would you say is your investment strategy? FM: The Savant Fund 1 strategy is focused on finding South Africa-developed science and engineering innovations, based on strong science and engineering technologies. Although developed by SA teams, we are also looking for businesses that we can take into other markets, whether that’s across the continent or into other parts of the world. We’re looking for companies that have innovative solutions to real problems. Companies that understand who their customer is, and what problem they’re solving for that customer. Those are the really key understandings. We want to see differentiation. We try not to invest in businesses that are doing B2B solutions. We like to see strong technical teams with a component of business understanding. We have now almost fully deployed Fund 1, having committed basically the full funds we had available. And we’re now in the process of raising Savant Fund II which will be a green economy-focused fund. We are targeting R500 million (~$26 million) for it with the most focus again on South African startups. We will also be targeting other regions on a 70:30 ratio so as to play to our strengths which is our experience in the SA market. What challenges have you faced in your operations? FM: I would have expectations in terms of valuations. We’ve been very thorough and conservative in our valuation approaches. The opportunities haven’t gone away in the market but expectations of significant valuations have changed over time particularly when you move from one round to another. There have been some scenarios where people went in at valuations that were unsustainable in the long run, and perhaps have been burnt a little bit. We did see a number of deals that we really liked over the last couple of years that we didn’t invest in because their valuations, in our opinions, were out of sync with what we felt those companies should be. But I think by and large, the investments that we have made have been well-valued. And we expect that when we go into the next rounds, we do expect reasonable significant upticks in our valuations. So I think we’ve done well to weather the challenges and I think playing in a niche has kind of insulated us a little bit. Playing in the hardware and deep tech space means that we have been a bit insulated from a lot of the hype in other industries. What would you say is the future of hardware and deeptech innovation in South Africa? FM: Savant was founded on the back of a realisation and acknowledgement that there’s
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