Salary delays, frustrated users and licence revocation: A picture of Eyowo’s stormy year
Eyowo, one of Nigeria’s digital banks, has had a challenging year. While it has ambitious plans for the future, it has to deal with cashflow challenges, frustrated users and a revoked Microfinance Bank licence. On Wednesday, Nigeria’s Central Bank revoked the operating licence of 47 microfinance banks. One of the licences revoked was Eyowo Microfinance Bank, which the digital bank, Eyowo, controls. According to the CBN, the revoked licences were either inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licensed for more than six (6) months. While it remains unclear the specific reason Eyowo’s licence was revoked, the company’s CEO, Omoseinde Olobayo, told TechCabal that it is still “engaging the CBN to understand and resolve the issues.” This week’s licence revocation caps a truly stormy year for the digital bank. Following CBN’s announcement, Eyowo—owned by Softcom—said that interbank transfers, which its Microfinance bank powered, would be on hold. It told customers via email, “Over the next few hours, you will experience challenges sending and receiving money with Eyowo. This may take up to 24-72 hours to completely resolve, we will keep you abreast of the progress made and the next steps.” Eyowo’s timeline will expire on Saturday, May 27. In the interim, customers remain cautiously optimistic. An Eyowo customer, Jethro Will, told TechCabal, “I basically don’t have access to my hard-earned money. My friends use Eyowo as their main banking app; now we are all praying.” *Tunde, who uses Eyowo account for business, told TechCabal, “I didn’t know they had an issue until someone tried to send me money on my business account and said it failed.” But TechCabal understands these transfer delays started a few weeks before the digital bank’s MFB licence was revoked. CBN licence clampdown: Your money is safe, Eyowo tells customers Eyowo’s product struggles Weeks before Eyowo’s licence was revoked, users of the digital bank already began experiencing delayed and failed transfers. The company did not share the reason for those failures. And on May 19, Eyowo’s CEO, Omoseinde, shared in a video posted on an update on Twitter that it would no longer allow new users to register on the app until July 1. Omoseinde acknowledged some of the issues users had experienced on the app and said that the pause on new registrations was to fix those issues. A source close to the situation told TechCabal that Eyowo had been revamping its app in the last few months. Continued… pic.twitter.com/WW4KY3K6gp — Eyowo (@eyowo) May 19, 2023 In April, Omoseinde told TechCabal exclusively that Eyowo was experimenting with some features. He said, “One important thing for us is that we’ve been asking ourselves questions about how you enable financial growth. For example, how do you deliver value to businesses? This seems to be where the value lies for us as a company.” At the end of the experiment, Eyowo’s CEO said that it aimed to connect entrepreneurs who sell products to a large market of customers. Essentially, Eyowo was looking to connect the business owners it served to its customers. It sounded like a later version of GT Bank’s Habari, an app that lets users find music, shop, and do their banking transactions. From the conversation with the company’s leadership, Eyowo was betting that the company’s future was a similar social commerce play. But first, it would have to motivate hundreds of employees to keep working on the product despite several salary delays. An unexpected sacrifice for a promising product After several unconfirmed reports, Eyowo confirmed in April that it was owing staff salaries but did not confirm how many months it was owing. It was not the first time the company would owe salaries. One report in December 2022 claimed Softcom, Eyowo’s parent company, laid off 20 people and that staff hadn’t been paid their November salaries. Yomi Adedeji, Eyowo’s Co-CEO, told TechCabal that the missed payments were “unexpected sacrifices” for “a promising product” that the company was on the precipice of launching. He said the product research and validation took longer than expected, leading to the company spending more than anticipated on the research. “Using the revenue we had accrued as a [bootstrapped] company over the past years, we were doing experiments and research for a new [e-commerce] product. In the middle of that, COVID hit. It’s been quite some sacrifice for everyone, including the workforce and those who have served us as partners or another business,” Yomi said. “About 150 people have gone through this moment of sacrifice with this mindset. It is possibly just 5% or 10% who may feel frustrated.” Yomi admits, however, that there may have been some communication gaps along the line. “When there is uncertainty, you can only inform people as you get clarity. When you are dealing with a company of about 180 people, information may take 3rd-party interpretations that may not have come from the company itself.” The company confirmed in April that it has come to the end of its experiment and is happy with the outcomes. At the moment, the company was going through what he calls “recapitalization” to make sure that it has all the financial resources that it needs to succeed long term. But Eyowo is not yet out of the woods. One source told TechCabal that employees have now been paid half of what they were owed. While it continues engaging the Central Bank in the hopes that its licence revocation will be overturned, there are many other existential questions that Eyowo has to answer if it will realise its ambitions to provide value to businesses by connecting them to a large market.
Read MoreSA SME Fund has closed R600 million of a R1 billion VC fund. Here is how it will be deployed
A conversation with Ketso Gordhan, CEO of the SA SME Fund, about the R1 billion VC Fund of Funds (VC FoF) which recently had its first close of R600 million. This week, the SA SME Fund officially announced that it had secured the first close of its R1 billion (~$51 million) Venture Capital Fund of Funds (VC FoF) at R600 million (~$30 million) against an initial target of R500 million (~$25 million). Through the raised capital, the SA SME Fund intends to deploy the capital in venture capital firms that are backing innovative startups building solutions which address South Africa’s most pressing problems. TechCabal had a sit down with Ketso Gordhan, CEO of the SA SME Fund, to learn more about the rationale behind raising the fund, the impact of such a fund in the country’s venture capital industry and innovation in general, as well as the next steps in deploying the raised capital. TechCabal: Please tell us a bit more about the SA SME Fund and the recent closing of the R600 million fund. Ketso Gordhan: The SA SME Fund was established about five years ago as an initiative of a group of CEOs from the private sector. Initially, 50 companies contributed R900 million, the Public Investment Corporation (PIC) using the Unemployment Insurance Fund (UIF), and Compensation Fund (CF) money, contributed R500 million, meaning we had a fund of R1.4 billion. With that fund, we did private equity, venture capital, and debt investments in SMEs via intermediaries. Based on that experience, we realised that the two things we wanted to continue doing were debt and venture capital. So last year, we raised a relatively small R300 million debt Fund, with the Gauteng government providing us with R100 million of first-loss capital, the Industrial Development Corporation added R100 million and we added R100 million, and we added R100 million. The fund mainly went to township businesses in the Gauteng district as debt to SMEs. Over the last two years, we have been trying to raise another fund focused exclusively on venture capital. We were finally able to achieve our first close of it a few weeks ago, at R600 million. We hope that by the end of the year, we would have closed the entire R1 billion we set out to raise, if not more. The reason we decided to raise this fund is that we realised the value and power of venture capital in driving innovation, economic growth, and finding solutions to some of our country’s pressing problems. Also, we realised that there is a shortage of capital in VC and wanted to help plug that gap. With this new fund and the last one I mentioned, we are now the largest institutional investor in the VC sector. TC: What role do you think the fund will play in making capital available especially looking at the fact that we are currently in a VC downturn? KG: All money we will be able to raise through this fund will be allocated to at least 10 or 11 VC funds. We believe that’s going to significantly, and in a positive way, impact the VC landscape in South Africa because these funds having more assets under management through our contributions means they can put this into innovative startups. As an industry, venture capital in South Africa has been doubling in size over the last three to four years and I think we are going to repeat that trend one or two more times. A lot more institutional capital is likely to come into VC and we are also very proud that we were the first to convince a pension fund to allocate capital to a VC fund. The Consolidated Retirement Fund contributed R250 million of the R600 million that we announced and we are very proud of that because it is a needed development in the growth of VC in South Africa. We are expecting at least one more fund, if not more, to partake in the next raise of fundraising. It will take another year or two or three for this trend to mature but eventually, we will see larger amounts of capital flowing from institutions into VC and we are proud to have contributed to kick starting this trend. TC: How important are public and private sector partnerships in growing the VC industry in South Africa? In most countries where venture capital has taken off, the government has played a leading role in providing either first-loss capital or cheaper capital, and also incentivising other investors into VC. In South Africa, unfortunately, we haven’t really seen the government play that role. But the SA SSME fund has effectively filled that gap. Last time around, we allocated money to nine venture capital funds, five of them were first time fund managers, so five of them had never run a venture capital fund before. This time, unfortunately, we will still do some first time fund managers, but a lot fewer, probably about two or three, because this time, we have pension fund money, and we need to be a lot more cautious with how we invest pension fund money. But still, we would have contributed to aid first time fund managers coming into the VC space over the last three to four years. So I think those are the most important types of partnerships where government, corporate and fund or fund managers like ourselves, give an opportunity to first time fund managers to come into the VC industry. TC: In terms of the deployment of capital, where will the funding be allocated? KG: We don’t do any sector-specific VC funds. Most of the funds we allocate money to are generalist funds, but I can say that we will definitely be doing biotech. This is because it’s an important area of research in South Africa. We currently have put money into one such fund, which is South Africa’s only biotech fund, and we plan to continue to invest in that space. We will
Read MoreFlutterwave’s Agboola joins Wall Street Journal CEO council
Africa’s leading payments company chief, Olugbenga Agboola, joins a long list of CEOs globally who are shaking the finance world across different verticals. Olugbenga ‘GB’ Agboola, the CEO of Flutterwave, Africa’s leading payments technology company, has joined the prestigious Wall Street Journal (WSJ) CEO Council. This recognition, which follows the recent acceptance of Flutterwave’s CFO Oneal Bhambani into the Wall Street Journal’s CFO Network, establishes GB as a global thought leader in fintech. Comprising 350 CEOs from various industries, the WSJ CEO Council commands a strong global presence, with a collective workforce exceeding 11 million employees and generating about $4.48 trillion in annual revenue. It serves as an influential platform, facilitating growth conversations and fostering the exchange of ideas among leaders of the world’s most renowned companies. With an academic footprint that cuts across institutions such as the Massachusetts Institute of Technology, the Wharton School of Management, and the University of Westminster, GB brings a wealth of knowledge and expertise to his role at Flutterwave. In 2020, he was named the African Leadership Magazine’s Young Business Leader of The Year. GB’s inclusion in Fortune Magazine’s 40 under 40 list and a subsequent acknowledgement on Time Magazine’s 2021 Next 100 list further solidify his status as an influential tech leader. Also, in October 2022, he was conferred with the National Honor, Officer of the Order of the Niger, by President Muhammadu Buhari of the Federal Republic of Nigeria. Under GB’s leadership, Flutterwave’s payment infrastructure has transformed transactional experiences across the African continent, becoming the fourth company to gain unicorn status (one billion dollar valuation) after raising a $170m Series C round in 2021. In his new role within the WSJ CEO Council, GB will have a unique platform to share his perspectives and engage in conversations about emerging economies, payments, and global fintech with some of the world’s most influential CEOs. “As Flutterwave continues to innovate and provide payments infrastructure in Africa and beyond, it is an honour to join the ranks of WSJ’s esteemed CEO Council, an important platform for thought leadership and the exchange of ideas,” said Flutterwave CEO Olugbenga ‘GB’ Agboola. “Flutterwave’s work is an example of the transformative power of financial technology, and I look forward to bringing my perspective as the company’s CEO to the Council.” Other members of the Council include Ebenezer Onyeagwu, group managing director and CEO, Zenith Bank; Allan Thygesen, CEO, Docusign; Satya Nadella, CEO of Microsoft; Börje Ekholm, president and CEO at Ericsson; Todd Boehly, chairman and CEO at Eldridge; and Arvind Krishna, CEO at IBM.
Read MoreNigeria’s YouVerify is on a global expansion drive. But first, Kenya
Identity verification processes can sometimes be lengthy, complex, and inconvenient for users. YouVerify—a Nigerian startup—which recently launched in Kenya, plans to address the issues as it works with local banks, telcos, and fintechs. Digital verification continues to grow across different markets globally. Multiple startups have since seen a niche in verification exercises, including Nigeria’s YouVerify, which has set up shop in Kenya in an event held in Nairobi yesterday. According to YouVerify, the company relies on its technologies to go beyond know-your-customer processes—unlike similar companies that scan documents for verification. Going beyond KYC means YouVerify has supplemented its service offerings with other products, such as know-your-business, know-your-transaction, know-your-employee, risk intelligence, and media screening. YouVerify says it is expanding its product’s reach, meaning it will likely launch in more countries in the nearest fiuture. According to the company’s chief executive, Dimitri Kanellopolos, the startup’s goal is to help organisations navigate the hurdles of regulatory requirements. In Kenya’s case, companies that process or control data must be registered with the data commissioner’s office. Such companies include fintechs, which must comply with Kenya’s central bank requirements. READ MORE: Kenya’s Data Protection Commissioner takes aim at loan apps Why Kenya? YouVerify is expanding to Kenya to help businesses comply with regulations. It believes providing businesses with the necessary tools and expertise can help create a more trustworthy, transparent, and sustainable economy in Kenya. Gbenga Odegbami, YouVerify CEO and co-founder, stated that the company’s decision to expand its products and solutions to Kenya was a strategic move. After analysing the compliance landscape in Kenya, YouVerify identified the market’s potential for its technology. Expanding their product offerings to Kenya aligns with Youverify’s global vision to drive financial innovation. By introducing its technology and expertise to the Kenyan market, the company aims to transform businesses’ approach towards compliance. “Expanding our product offerings to Kenya aligns perfectly with our vision to drive financial innovation on a global scale. As we bring our cutting-edge technology and expertise to the Kenyan market, we aim to revolutionise the way businesses approach compliance,” said Odegbami. Kanellopolos added that the company is “excited to extend our products and services to Kenya. For long, we have had our sight on the country’s rapidly evolving financial sector and commitment to regulatory reform. This creates the perfect ecosystem for regtech service providers like ours to thrive and empower Kenyan businesses to satisfy regulatory requirements efficiently and scale confidently.” Locally, YouVerify may focus on telcos, banks, and lenders to offer verification services. It already works with e-taxi firm Bolt and Wema Bank. Market challenges Kenya has been closing loopholes in the regulatory space with new laws, especially in data protection. How YouVerify will navigate complex and evolving regulatory frameworks remains to be seen. Compliance with regional, industry-specific, and data privacy regulations poses ongoing challenges, requiring companies to stay up to date with changes and adapt their processes accordingly. While Youverify seldom shares information about fraud activities like its rival Smile Identity, it should be noted that fraudsters are constantly adapting and finding new ways to deceive identity verification systems. Companies must stay ahead of emerging fraud techniques and continuously update their algorithms and technologies to detect and prevent these fraudulent activities.
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How to check KCSE timetable online in 2023
Like with other exams like WAEC, To adequately prepare for the KCSE 2023 exams, it is crucial to have access to its timetable. Fortunately, with the advancement in technology, you can easily check the KCSE timetable online. This guide will walk you through the simple steps to access the timetable and stay informed about the exam schedule in 2023. Step 1: Open a web browser To check the KCSE timetable online, start by launching a web browser on your computer, smartphone, or tablet. Popular web browsers include Google Chrome, Mozilla Firefox, Safari, and Microsoft Edge. Ensure that you have a stable internet connection to proceed to the next step. Step 2: Visit the official KCSE website Type the official website address of the Kenya National Examinations Council (KNEC) into the web browser’s address bar. The website is typically “https://www.knec.ac.ke”. Press “Enter” or “Go” to navigate to the site. Step 3: Locate the KCSE timetable section Once you are on the KNEC website, look for the section dedicated to KCSE examinations or timetables. Usually, this information can be found on the homepage or under the “Examinations” or “Timetables” tab. Click on the appropriate link to access the KCSE timetable. Step 4: Choose the appropriate year and examination type On the KCSE timetable page, you may be required to select the year for which you check its timetable. Additionally, choose the examination type, which is usually “KCSE.” This ensures that you access the correct timetable for your specific year and examination. Step 5: Download or view the timetable After selecting the year and examination type, the KCSE timetable for that year will be displayed. You can choose to either view the timetable directly on the website or download it to your device for offline access. To download, right-click on the timetable link and select “Save As” or “Download.” For faster access to the 2023 KCSE timetable, click here immediately. Also, you can still get the 2022 KCSE timetable here if you need it. Final thoughts on how to check the KCSE timetable online in 2023 By following the steps outlined above, you can easily check the KCSE timetable on the official KNEC website. Remember to regularly check for any updates or changes to the timetable as the examination period approaches. Proper planning and time management based on the KCSE timetable will contribute to a well-organised study routine and ultimately help you excel in your exams.
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6 best ISP bets in South Africa 2023
As South Africa continues to embrace the digital age, the demand for reliable internet connectivity keeps soaring. With the internet service provider (ISP) numbers in the market, it becomes crucial to identify the best options for consumers in South Africa. This article explores the top six ISPs in South Africa, evaluating their offerings, customer service, affordability, and coverage. Whether you are a business owner, a student, or a household, this comprehensive guide will assist you in making an informed decision about your internet service provider. 1. Telkom ISP in South Africa Telkom SA, South Africa’s largest landline provider, also offers an array of internet services. It boasts one of the widest coverage areas nationwide. Telkom provides both fixed-line ADSL and fibre-optic connectivity. Their fibre-to-the-home (FTTH) service, branded as Telkom Fibre, offers impressive speeds and reliable connections. The company also offers a range of data packages to suit different needs and budgets. Additionally, Telkom’s customer service has significantly improved in recent years, with prompt and efficient technical support. They are one of your best bets if you’re looking for a good ISP in South Africa. 2. Vodacom ISP in South Africa Vodacom, a well-established telecommunications company, is known for its mobile services but also offers fixed-line broadband solutions. Vodacom Fibre provides high-speed internet connectivity with various data plans tailored to meet customers’ requirements. They have an extensive fibre footprint in major cities and suburbs. Vodacom’s reliability and customer service have received positive feedback from users. With competitive pricing and flexible package options, Vodacom is one of the best ISP options for fast and affordable internet access in South Africa. 3. MTN Fibre ISP in South Africa MTN, another prominent player in the South African telecommunications market, delivers reliable internet services to both residential and business customers. Their fibre internet solutions, branded as MTN Fibre, offer impressive speeds and stability. MTN’s vast fibre network covers numerous locations, including urban areas and townships. The ISP offers some of the best data packages in South Africa, catering to different user needs. With its commitment to quality and consistent service, MTN is a popular choice among South African consumers. 4. Afrihost ISP in South Africa Afrihost, a leading independent ISP, has gained a reputation for its affordable and reliable internet services. Leveraging partnerships with various network providers, Afrihost delivers a range of options, including ADSL, fibre, and mobile data. Afrihost as an ISP is best known for its competitive data packages and flexible contract terms, appealing to residential and business users. 5. Cool Ideas ISP Cool Ideas is a respected player in the South African ISP market with extensive coverage in major cities and suburbs, with high-speed internet options available. Cool Ideas offers various uncapped data packages, ensuring users can enjoy uninterrupted browsing and streaming. They also offer month-to-month contracts, providing flexibility for users. With their commitment to quality and customer satisfaction, Cool Ideas has earned a loyal customer base. 6. Web Africa Internet service provider Web Africa also features as one of the best bets speaking of an ISP in South Africa. They provide ADSL, fibre, and fixed LTE connectivity options, catering to different user requirements. Web Africa is known for its affordability and customer-centric approach. Their competitively priced data packages make them an attractive choice for budget-conscious consumers. Their commitment to transparency and customer satisfaction has helped them build a strong reputation in the market. Final thoughts on best ISP bets in South Africa Choosing the right internet service provider is crucial for enjoying a seamless online experience. In South Africa, Telkom SA, Vodacom, MTN, Afrihost, Cool Ideas, and Web Africa stand out among the best players in the ISP market. Each provider offers its unique strengths in terms of coverage, reliability, affordability, and customer service. By considering factors such as location, internet requirements, and budget, consumers can make an informed decision and select the ISP that best suits their needs.
Read MoreWiSolar wants to help alleviate SA’s power troubles. Here is how they plan to do it
WiSolar is a greentech startup looking to play its part in helping to alleviate South Africa’s power crisis. South Africa is not only going through a power crisis due to the national provider’s—Eskom—troubles. The country is also trying to transition from fossil fuels to renewables, making startups offering alternative energy solutions a necessity in the country. Enter WiSolar. Launched in 2016, WiSolar is a greentech startup offering what can be described as a power-as-a-service solution. In properties where the startup has deployed solar equipment, customers are able to purchase power on demand using a mobile app. Additionally, WiSolar also allows customers to purchase solar equipment for themselves, either through cash or financing options. TechCabal had a chat with Tonye Irims, founder of WiSolar, to get a deeper understanding of the startup’s offering, the revenue model, its expansion ambitions and much more. TechCabal: Please tell us more about WiSolar and the problem you are trying to solve through your product offering Tonye Irims: We refer to ourselves as a green digital utility. We started as a regular solar electricity company selling solar equipment and eventually evolved into a greentech data utility. We deploy solar electricity in large-scale developments. Through our solution, people don’t have to get into a house and buy solar systems as separate assets. Once you get into the house, you already have solar electricity baked in, and you just pay per kilowatt hour using the app. What we found in South Africa, especially now with the energy crisis, is people don’t have money to buy solar electricity as an extra asset to add on to their homes, because the cost of such equipment goes into the hundreds of thousands of rands. So the way we figured out how to solve that problem is to actually partner with residential property developers to make sure that homes come with pre-installed solar equipment. Through our power purchase agreement (PPA) which lasts for a 20 to 25-year period, clients pay 90 cents per kilowatt hour and don’t have to carry the cost of the solar equipment in their homes. We raise capital to buy the equipment which then belongs to us whilst customers buy the power via the mobile app. TC: How much traction have you gained since launching? TI: We are working on 2,400 homes right now with the prepaid solar rollout in Cape Town. In the next three years, we intend to be listed publicly on the South African stock exchange. As far as expansion is concerned, we currently have a presence in South Africa, Nigeria, and Zimbabwe, and we are looking to further expand to Australia in the future. We are also thinking of franchising our model where we will have outlets owned by the franchisees under our brand. TC: What are the challenges that WiSolar has faced so far in its operations? TI: The main issue we are currently facing is getting the right partners as far as capital raise is concerned. It took us two years to develop our application and in that time, we had to get the right software partners, the right hardware partners, which required a substantial amount of funding. Another factor which might be of concern but which has not really bothered us as much is crime. Obviously, our equipment is highly sophisticated and valuable hardware which might be of interest to bad actors. But we have invested in a lot of security around how we ship and warehouse the equipment so we have not had much of an issue there. TC: Is the current state of power in South Africa an opportunity for WiSolar, looking at the fact that it is providing an alternative to the troubled national grid? TI: Yes, we do look at it as an opportunity. But there’s another thing that’s happening where there is a transition from fossil fuel-based power to renewables. And it just so happens that in South Africa where we have an energy deficit, you know, not only are they trying to transition from fossil to renewables, but they are also trying to fill the energy deficit. So to us, those are two opportunities where we can be able to come in and address the pain points. TC: How much would you say the product has evolved from the time it launched up to now? TI: When we started in South Africa, people weren’t really comfortable with solar electricity. They didn’t even know that it actually generated power and the only source of power they knew about was the national grid via Eskom. They didn’t know about the alternative sources of power. But since then, there has been a shift. People now appreciate that there are actually other sources of power which are cleaner and more reliable than what they have always had. Another shift has been in the mentality of homebuyers. People now believe that if a home does not have alternative sources of power, it’s not as attractive. So from those shifts in mentalities, we have seen that most homes want and have solar electricity baked into the properties. At a minimum, they have backup solar sources, the bottom line being they are no longer just reliant on the national grid. TC: Beyond just the power as a service offering, what other iterations of the product does WiSolar have? TI: As far as our products go, we have three options for customers. For single dwelling units, we have the cash option where customers can buy the equipment and own it. In 2020, we introduced a financing option where you can now own the asset, but finance it so you don’t need to put cash upfront, but pay monthly installments towards it. The third option is prepaid solar where customers buy the power on-demand and don’t own the equipment. The deal is actually between us and property developers, where the system is now baked into the property. TC: What impact do you think a product offering like WiSolar’s can play in alleviating South
Read MoreWhere is Africa in the global conversation on regulating AI?
Globally, stakeholders are talking about the need to regulate Artificial Intelligence. African governments have developed regulations to drive the adoption of AI on the continent, but there is still a burning question of Africa’s place in the ongoing debate. Like the rest of the world, Africa has caught the AI bug. For context, there are over 2,400 AI organisations operating across various industries on the continent. TechCabal has reported how AI is impacting the lives of Africans, from creating a music album in three days to revolutionising edtech startups, and even helping our English-speaking colleague navigate his way in a Francophone nation. As AI continues to gain traction globally, concerns have been raised about privacy, bias, and safety, resulting in a growing consensus that Al needs to be regulated. Sam Altman, CEO of OpenAI, creators of the smash-hit AI chatbot ChatGPT, recently appeared before a US Senate committee to talk about the risks and potential of AI language models. According to the 2023 AI Index Report released by the Stanford Institute for Human-Centered Artificial Intelligence, policymaker interest in AI is on the rise: an analysis of the legislative records of 127 countries shows that the number of bills containing “artificial intelligence” that were passed into law grew from just one in 2016 to 37 in 2022. The European Union (EU) has proposed far-reaching legislation—known as the Artificial Intelligence (AI) Act—to bolster regulations on the development and use of AI. At their recent meeting, leaders of the G7 countries stressed “the importance of international discussions on AI governance and interoperability between AI governance frameworks”. OpenAI leaders also proposed an international regulatory body to govern AI in a short note recently published on the company’s website. Where is Africa in all of this? In truth, Africa is very much a part of the AI conversation, and African governments have been quick to develop regulations to ramp up the adoption of the technology. The reasons aren’t far-fetched. AI could help combat poverty, unemployment, and a host of other social and economic challenges on the continent, according to experts. A recent report projects that AI could expand Africa’s economy by a staggering US$1.5 trillion—half of its current gross domestic product (GDP)—if the continent could only capture 10% of the fast-growing AI market. Mauritius was the first country in Africa to publish a national AI strategy. In 2021, Egypt launched its national AI strategy to deepen the use of AI technologies and transform the economy. Kenya, on the other hand, has an AI task force that is creating guidance on how AI technologies can be used to further the country’s development. Tunisia has created an AI-focused industry association. In Botswana, the government encourages organisations to set up research labs in the country and gather AI talent. In 2021, Rwanda established a technology centre of excellence focused on digitalisation and AI, and is working on an AI strategy. Nigeria currently doesn’t have a national policy on AI, but its National Digital Economy Policy and Strategy 2020-2030 [pdf] published in 2019 led to the creation of the National Centre for Artificial Intelligence and Robotics. The African Union Development Agency (AUDA-NEPAD) is also working on “The African Union Artificial Intelligence Continental Strategy For Africa.” A long way to go It is clear that there is a growing concern for the responsible development and deployment of AI in Africa. While the regulations introduced by African countries differ, they all aim to address ethical considerations such as data privacy, bias, and transparency. As the use of AI continues to expand on the continent, it is likely that more countries will follow in introducing regulations to guide its development and deployment. Rasheed Abass, a lecturer at the University of Lagos who specialises in AI, says AI adoption in Africa is still evolving, hence regulating the technology requires a more pragmatic approach. “For now, our level of adoption in Africa is low. I know there are several research centres and organisations focused on AI on the continent, but the impact of the existing regulations will not be felt until we ramp up adoption,” he told TechCabal over a call. Africa isn’t ready for mature AI legislation Regulating AI in Africa is a complex and multifaceted issue that requires careful consideration and collaboration. Kingsley Owadara, an AI researcher, noted that the pace of regulating AI on the continent is very slow. “Regulating AI could be seen from three perspectives. First from the point of a law enacted by a parliament, second in the form of strategies toward the adoption of AI, and finally policies. The question of regulation especially in the African context is that Africa isn’t mature to have full-blown regulation on AI because Africa lacks the level of technology advancement that exists in developed nations,” he said. Owadara further stated that Africa isn’t ready to have an AI act like the EU because such legislation must be thoroughly formulated to reflect the modern realities and future aspirations of the continent. “What works best for Africa is to have policies and what policy does is to structure and guide how AI should be developed. Then in years to come, an Act can come up. It is important that African governments understand the technology first,” he added. During his recent visit to Nigeria, Altman disclosed that the country is one of the biggest adopters of AI globally. This underscores Africa’s position as a hub for innovation and emerging technologies. But despite how popular ChatGPT is, some African countries—such as Zimbabwe, the Central African Republic, Ethiopia, and Sudan—don’t have access to the chatbot unless they use a virtual private network (VPN). On Wednesday, Open AI announced that the ChatGPT app for iOS is now available to users in 11 more countries—including Nigeria. Regardless, Africa isn’t an afterthought in the global conversation on AI regulation. It remains an active participant, contributing to the development of ethical guidelines and regulations. With strategic planning, responsible regulations, and investments, the continent can position itself as a potential
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👨🏿🚀TechCabal Daily – Tech lights Nigeria’s GDP
Lire en français Read this email in French. 26 MAY, 2023 IN PARTNERSHIP WITH TGIF It’s the final day of our survey. This means it’s your final chance to win $50 for speaking your mind. Go ahead, take three minutes and judge TC Daily by filling this form. In today’s edition ICT contributes $6.7 billion to Nigeria’s GDP Kenya’s first public electric bus charging station eMedia extends MultiChoice partnership Funding tracker The World Wide Web3 Event: TC Twitter Spaces Opportunities NIGERIA’S ICT SECTOR WAXES STRONG IN Q1 Nigeria’s Information and Communications Technology (ICT) sector, in Q1 2023, contributed ₦3.1 trillion ($6.7billion) to the country’s GDP, accounting for 17.47% of the country’s total GDP. The National Bureau of Statistics (NBS) disclosed this in the Q1 GDP statistics of 2023.Per the NBS, this is a substantial rise from the 16.2% ($6.2 billion) recorded in Q1 of 2022. The NBS defines the ICT sector as encompassing four activities: telecommunications and information services; publishing; motion picture; sound recording; music production; and broadcasting. Telecom leads: Compared to Q1 of the previous year, the telecommunications sub-sector demonstrated growth of 10.32%, contributing 14.13% to the GDP in real terms. Broadcasting emerged as the ICT sector’s closest sub-sector in terms of contribution, adding 1.98% to the overall sector’s performance. A remarkable growth in nominal terms: Between January and March 2023, the ICT sector made significant strides in its contribution to the total nominal GDP, reaching 13.23%. This surpassed the rates of 10.55% recorded in the same quarter of 2022 and 10.42% in the preceding quarter, indicating a positive growth trend for the sector. Moreover, the sector displayed impressive growth in nominal terms, reaching 41.84% in the quarter under review. This represents a remarkable increase of 21.30% points compared to the rate of 20.54% in the same quarter of 2022. Additionally, it outperformed the growth rate of the preceding quarter by 20.43% points, signifying a significant acceleration in the sector’s overall performance. Looks like tech is indeed the new oil. MONIEPOINT RANKED 2ND FASTEST-GROWING AFRICAN COMPANY Moniepoint is Africa’s second-fastest growing company, as shown in FTs latest report. We also processed 1 billion transactions worth $43 billion in Q1 alone. Read all about it here. This is partner content. BASIGO UNVEILS NEW ELECTRIC BUS CHARGING STATION IN KENYA BasiGo Company and Kenya Power have launched Kenya’s first public electric bus charging station. Located in Nairobi’s Buruburu area, the charging station currently has the capacity to charge six buses simultaneously. There are, however, plans to upgrade the station by the end of the year, allowing it to accommodate up to 25 vehicles at once. Electrifying mobility: With the introduction of this new station, BasiGo expands its charging infrastructure and now operates three stations. These stations have the capability to charge over 20 electric buses, replacing the consumption of 20,000 litres per year of imported diesel with 50 MWh of clean, renewable electricity generated locally in Kenya, supporting the growth of the electric vehicle (EV) industry while promoting sustainable transportation. The facility is the first one linked to the nation’s e-mobility tariff approved by the Energy & Petroleum Regulatory Authority (EPRA) in 2023. The e-mobility tariff provides low-cost power for electric vehicle charging during nighttime hours when Kenya has a surplus of renewable energy supply. Future plans: By the end of 2023, BasiGo aims to open its charging stations for public use, allowing electric cars and trucks to be charged conveniently. Additionally, BasiGo plans to expand its charging infrastructure across Nairobi and eventually throughout the entire country, establishing a network of accessible charging stations. These initiatives are part of BasiGo’s broader objective to facilitate the deployment of 1,000 electric buses to bus operators in Nairobi within the next three years. MORE FROM TECHCABAL Amidst intense controversy, Nigeria’s NITDA bill is pushing itself towards the presidency. Kenya’s high-tax regime could make a $40 smartphone an impossibility. FIVE MORE YEARS OF ENCA ON DSTV According to the financial results of eMedia, the company has secured a five-year extension with MultiChoice to carry eNCA on DStv. The deal means that eMedia—owner of tv channel eTV—will block its own platforms like Openview from broadcasting the 24-hour news channel. eMedia also disclosed that MultiChoice is now paying a lower licence fee for the channel. A bargain for DSTv: Bizarrely, despite now offering the channel exclusively to DSTv, eMedia will be making less from the new deal via a licence fee (figure not reported). This is contrary to most television licensing deals where exclusivity means more cost of licensing to the licensee. The other reason the deal is a steal for MultiChoice-owned DSTv is that eNCA is one of the most-watched news channels in South Africa with an audience of over 1.5 million. Zoom out: Still in the financial results, eMedia said it maintained its prime-time audience market share of 34.5% across eTV, Openview, and eNCA, up slightly from 34.1% in March 2022. TC INSIGHTS: FUNDING TRACKER This week, South African digital banking platform, Tymebank, raised $77.8 million in a pre-series C funding round. The round was led by Norrsken22 and Blue Earth Capital, with participation from Tencent. Here are the other deals this week: Egypt-based health-tech company Dawi Clinics closed $8 million in an undisclosed funding round; the round was led by Al Ahly Capital Holding (ACH) with participation from Egyptian-American Enterprise Fund (EAEF). Kunda Kids, a Nigerian media publishing company and creative studio, raised $700k in the pre-seed funding round. The round was led by Zrosk Investment Management with participation from Voltron Capital, Argentil Capital, HoaQ, and Kaleo Ventures. Angel investors, including Abi Ajayi, Chiamaka Ezenwa, Adetayo Bamiduro of MAX, and Benjamin Fernandes, CEO of Nala Money, also participated. South African edutech company, Play Sense, raised an undisclosed amount in pre-seed funding from Grindstone Ventures. That’s it for this week! Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. You can also visit DealFlow, our real-time funding tracker. EXPERIENCE VIVA TECHNOLOGY Book your pass to Europe’s biggest Startup and Business event here. This is partner content. THE WORLD WIDE WEB3 Bitcoin
Read MoreTurnTable is transforming Nigeria’s music industry with data and technology
Recently, it has become the norm for Nigerian music superstars to post a picture of their song or album topping the Apple Music charts. The top spot has become a bragging right and is sought by everyone because it represents an artist’s popularity and acceptance in the market. Zlatan Ibile, a Nigerian hip-hop artist, recently likened the chart to “a report card for Nigerian musicians”, but the data from just Apple Music does not always paint the complete picture (Apple Music accounts for only 15% of the global music streaming market and had only 140,000 Nigerian subscribers in Nigeria in 2020). With other sources such as Spotify, Youtube, radio airplay, Audiomack, and Boomplay not in the picture, the full acceptance of an artist’s music cannot be determined. This is the problem that TurnTable Charts, a Nigerian music chart company, is trying to solve. Why are music charts necessary? In a world with endless choices, especially in music, a chart can indicate to the average music consumer what type of song they should listen to. A casual listener will likely look for the hottest track when they want to consume music, which can help with an artist’s discovery. Matt McNeal, the vice president of A&R for Warner Records, put it this way: “For a younger artiste who’s developing, it can be career-changing to get on the chart early on.” Joey Akan, a Nigerian music journalist, shares the same opinion. He told TechCabal, “If you chart well, it means you have many more people streaming your music, which means your music is good in the country.” For Ayomide Oriowo, the co-founder and CEO of TurnTable, the company fills a void in the Nigerian music scene by “studying consumer behaviour, being able to identify changes over time, and determining what is popular at every period”. Oriowo added that TurnTable solves two significant problems: misinformation and the need for a credible music chart. “There’s a lot of misinformation within Nigerian music; there are many things that people do not have credible data to verify. Also, no standard music market worldwide doesn’t have music charts.” Akan shared that data from music charts can help drive investment into the Nigerian music industry. “Financial analysts need the data to create papers about the industry and know the level of investment that can come in,” he said. For example, Mavin Records raised an undisclosed “multimillion-dollar” investment from Kupanda Holdings in 2019. “If you talk to them [Mavin Records], they will tell you they need to measure the music and be able to know what is valuable,” Akan added. Music charts can also help reduce the profligacy of pirated music by affecting consumer behaviour. Oriowo told TechCabal that music charts “allow people that listen to music illegally to know that if they want to contribute to the success of their favourite artistes, they need to switch to a streaming platform that can account towards what TurnTable does.” How does TurnTable get its data? According to Adegoke Similoluwa, the CTO of TurnTable, the company gets its data from multiple sources through partnerships. “The radio and television data is obtained through collaboration with Radiomonitor. We also have a partnership with Audiomack and Boomplay for their data. In addition, YouTube and Spotify data is directly from the website, while Apple Music data is from label and distributor reports,” he told TechCabal. Oriowo told TechCabal that TurnTable was able to get all these partnerships because of the value proposition that the company offers. “I think it’s just a matter of seeing what we had done with what we had and realising that they should be a part of what we are building. They saw the potential. Most times, when we meet with anyone, they say they have seen our work, loved the idea, and wanted to be part of it,” he said. He added that TurnTable does not account for metrics that typically go into other music charts, like physical sales and digital downloads. “Because of the absence of many things in the Nigerian music industry, it means that, for now, we can only account for streaming and airplay,” he said. What type of impact do streaming farms have on chart data? Almost everyone who follows music in Nigeria has probably heard of streaming farms. Last year, BNXN, a Nigerian artiste, tweeted, “There are streaming farms in Nigeria now. A room where your label bosses pay money to get your songs up by automation, no real fans, no real people, just a facade. Y’all make the people who really work for this bleed, and your day is coming.” His tweet was part of a series aimed at Ruger, another Nigerian artiste. Streaming farms are a network of devices engineered to inflate streams or add a lot of fake listens to a song. Engineered listening is not new in the music industry; before streaming platforms became the norm, artists and labels gave DJs and radio stations a secret or indirect payment for promoting a particular record, called Payola. Akan told TechCabal that streaming farms harm everyone in the music industry. “When I want to draw my inferences from the markets, and I open these spaces where I’m supposed to find basic data that I’m supposed to use to educate or consult for brands about the direction the industry is headed or how the brands can engage with the industry and who they should engage with—if I have straight-up lies in front of me—that ruins the entire space. It’s happened a lot. This is such a big problem that it has skewed all our charting numbers. Everything is all fugazi [fake].” Oriowo told TechCabal that TurnTable has no power over streaming farms. “The places where people stream are the places with the issues, not the places collecting the data after the fact. So combating stream farming rests solely on the shoulders of digital streaming platforms (DSPs). The only thing we can do is work with the DSPS and ensure that the data we get
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