How ride-hailing in Lagos went from disruption to disarray
Yellow cabs, once an icon of the Lagos roads, were mostly decaying pieces of infrastructure. They were old and barely roadworthy, their discoverability was wonky and fares were expensive. Finding and hailing a cab depended on luck or living close to quickly disappearing taxi parks. When Uber launched in Lagos—shortly followed by Taxify—in 2016, it was primed to disrupt a sector in disarray. Ten years after disruption (read: hefty bonuses, driver incentives, and subsidised rides) pushed yellow cabs into near extinction, the ride-hailing companies that have replaced them have become the yellow cabs of the 90s. Ride-hailing companies now typify what they displaced: wait times are long, car quality has significantly declined thanks to stiff competition, and driver shortages are driving shocking price rises. Everyone within the system speaks of extreme dissatisfaction. The gig workers who led the technological revolution have seen a stunning change in their fortunes. Once courted by companies offering hefty bonuses and incentives as two ride-hailing firms competed for dominance in major cities, they’re now struggling to earn a living as macroeconomic conditions and elastic demand means higher operating costs cannot easily be transferred to customers. They have formed unions and are asking ride-hailing firms to increase the base fares customers pay. They also want better working conditions and a seat at the decision-making table. Nothing suggests they’ll get what they’re asking since they have little leverage. Ride-hailing companies, which have insisted the drivers are independent contractors and not workers—this distinction is crucial—also have struggles. Bolt cut its Nigerian team in May, although it insisted that such cuts were routine. Ten years after disruption (read: hefty bonuses, driver incentives, and subsidised rides) pushed yellow cabs into near extinction, the ride-hailing companies that have replaced them have become the yellow cabs of the 90s Yet, the biggest sign of the difficult place the companies find themselves is how they carefully think about transferring costs to customers. Cab rides, always considered a luxury in Nigeria, are more out of the reach of most people because of an increase in fuel prices and a rapid naira devaluation that has seen the cost of imported vehicles soar. Taiwo Florence, who lives in the Isolo area of Lagos and uses ride-hailing apps for personal and business trips, said a recent trip triggered a “moment of financial reevaluation.” She paid ₦12,000 for a trip that used to cost ₦5,000. Despite these high prices, many drivers believe it’s not reflective of the real cost of the rides and that they’re the ultimate sufferers with little money left after fueling and servicing their cars. They’re finding interesting workarounds. While the number of drivers moving out of the sector is unclear, existing drivers are signed up on multiple platforms to maximise returns. With differing commission rates (Bolt takes 25%, InDrive 10% -11% and Rida takes 10% in commission), drivers accept rides from apps that offer the best prices. It’s a constant juggling act, said Michael, a driver who uses all the existing ride-hailing apps. The real bogeyman for customers, drivers, and ride-hailing companies is inflation and a shrinking middle class cutting off non-essential purchases. Cabs are non-essential to many, even when the alternative is submitting to danfos, the popular but chaotic yellow buses that ferry millions of passengers around Nigeria’s commercial capital.
Read More2,000 Heritage Bank employees out of jobs after surprise license revocation
Heritage Bank staff found out about license revocation like everyone else. While speculation of a takeover of Heritage Bank had swirled in the financial industry circles for years, its license revocation on June 3 surprised almost everyone. The announcement, which put an estimated 2,000 employees of the tier 2 bank out of jobs, sent shockwaves through the bank’s open-plan Victoria Island office, according to six employees who spoke to TechCabal. “Nobody saw this coming. We were not informed at all. But it is well. I believe it is the will of God,” a now unemployed account relationship officer told TechCabal. Since June 2023, the bank’s liquidity struggles meant it could not process customer withdrawals. It began placing restrictions on customer accounts, said one ex-employee with knowledge of the matter. While higher-level employees expected an intervention from the regulator, they did not anticipate a liquidation. “We thought the Central Bank would create a bridge bank to take over the [bank’s administration and try to restore its operations to normalcy],” a highly placed staff told TechCabal. So when NDIC officials walked into the office on the morning of June 3, many thought it was a regular audit, since the central bank had recently notified the bank of an upcoming Anti-money laundering (AML) audit, according to two ex-employees. “They instructed us to pack up all our personal belongings and only that, and evacuate the building,” another employee who worked at the Ajose branch told TechCabal. “I think they made the visit impromptu so that no one would move anything valuable from the building before they arrived.” The bank may have also kept the liquidation under wraps to prevent a bank run before the process kicked in. Employee salaries were paid into their Heritage Bank accounts, so a few people had a chance to move their funds. The NDIC began processing withdrawals under N5 million on June 6 and Heritage Bank employees are applying for the insured deposit. It involved filling out a paper form being issued at Heritage Bank branches and at the NDIC offices across the country. “But some don’t even have transport fare to go and physically fill out the form for reimbursement,” a now-unemployed junior staff told TechCabal. This abrupt job loss follows protests at the head office against the job cuts happening across its branches since March. “The bank terminated its contract with an outsourcing firm which managed about 800 contract staff some of whom had worked with the bank for over a decade,” a member of the bank’s domestic union told TechCabal. The job cuts may have been an attempt to reduce operating costs ahead of the liquidation. The cuts affected mostly drivers and tellers, some of whom were forced to forfeit their pensions. Some full-time staff were demoted or relocated to other branches, according to another Heritage Bank staff. Now with the liquidation of the bank, all 2000 employees are out of jobs. “We were negotiating better compensation for affected employees before this happened,” Jekwu, the chairman of the domestic union of Heritage Bank told TechCabal. “However, the bank is yet to address the current circumstances.” However, since the news broke, recruiters and concerned industry colleagues have been advertising vacancy notices in other banks to now unemployed Heritage Bank staff.
Read MoreEcobank shuns capital markets to raise $600m through debt instruments
Ecobank Transnational Incorporated, a pan-African financial institution with a national banking licence in Nigeria, will sidestep the Nigerian Exchange and other capital markets in its plan to raise $600 million to meet Nigeria’s recapitalisation requirements. The funding will be raised through senior-ranked debt or loan facilities that offer the lowest interest rates and are given the highest priority in terms of repayment. The bank which hit a $2 billion revenue in its 2023 revenue, will also consider debt that ranks below senior debt and come with higher interest rates. By focusing on debt instruments outside the capital market, Ecobank will be avoiding the domestic market which could be crowded due to other financial institutions trying to raise funds alongside the federal government, according to Benedict Egwuchukwu, an investment research analyst with Afrinvest West Africa Limited. The company is also looking to take advantage of “better interest rate offers from economies who have started implementing policy rate cuts, thereby reducing the borrowing rates,” Egwuchukwu said. The company could also be prioritising debt because the amount they need to meet the recapitalisation requirement— ₦200 billion—is relatively small, said Olumide Sole, banking analyst at Vetiva Capital Management Limited. The Nigeria Exchange offers equity and debt funding to listed companies. However, financial institutions like FCMB, Stanbic IBTC, and Fidelity are raising additional funds primarily through equity on the Nigerian Exchange and markets outside the country. Fidelity Bank on Wednesday, June 5, 2024, commenced its push to raise ₦127 billion from the Nigerian Exchange. Other companies are expected to join Fidelity before the end of the month. This would not be the first time Ecobank Transnational Incorporated is raising money outside the capital market. In March 2024, the company secured a $250 million loan facility from African Export-Import Bank and Africa Finance Corporation to support trade and generate corporate purposes. “Ecobank Transnational Incorporated doesn’t just operate in Nigeria, hence the dollar consolidated financial statements,” Egwuchukwu said. If Ecobank raises the proposed figure, it will receive a liquidity boost, diversify its funding sources, and improve its overall market stability.
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👨🏿🚀TechCabal Daily – South Africa’s crypto crier
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We need your help! Could you let us know what you think about TC Daily so far? Think of it as your chance to become the editor-in-chief (without the boring meetings). Start your week by doing us a favour, and tell us what you think in two minutes. In today’s edition What’s the future of ISPs in Africa? South African crypto hustler bawls eyes out in court NITDA inaugurates Nigeria’s startup labelling committee Nigeria wants to train 30 million youths The World Wide Web3 Job openings Techxperts Talk What’s the future of ISPs in Africa? Over the past two weeks, I have become a small menace to the League of Legends online gaming community—partly due to my three-year experience in playing the game—but also because I now have access to Starlink which means I lag a lot less and my plays are faster at 122MBPS. Chances are that if you find any Nigerian with internet speeds measuring in megabytes per second, they’re not using traditional internet service providers. While Starlink has just about 24,000 users in Nigeria, it’s steadily gaining credence across other African countries too. In the space of one week in May, for example, it got licensed in Zimbabwe and Botswana. Outside the ten or so countries where it’s legally available, users in other countries like Senegal are risking jail time just to use the service. Other countries like Ghana are also developing their own satellite internet services. To understand the impact of these new technologies, I spoke to Diseye Isoun, founder of internet service provider Content Oasis. Diseye Isoun for TC Daily TC: With Starlink now available in over 10 African countries, how does this impact traditional ISPs in Africa? Diseye: ISPs in Nigeria and many other African markets are struggling. According to the NCC, the ISP ecosystem is generally weak, with 98–99% of internet access coming through mobile devices and telcos (MNOs). Less than 1% of internet access is through fixed connections like fixed wireless access or fibre to the home. Starlink brings a new dynamic by being a non-MNO player and has quickly gained traction as an ISP, with 24K terminals as of Q4 2023. However, purchasing power challenges in Africa make the one-time equipment fee a significant impediment for most Africans despite Starlink’s lower price point in Africa compared to other markets. than the rest of the world ($250-$350). Two other significant hurdles beyond the one-time fee are the equipment’s shortened lifespans caused by an unreliable, surge-prone power supply and the risk of vandalism and theft of the outdoor component of the equipment. While Starlink may capture the high-end broadband market, penetrating the MNO business or underserved markets is a more difficult and nuanced challenge. TC: Where do you see satellite internet playing the biggest role in bridging the digital divide in Africa? Diseye: The role of satellite internet in bridging the digital divide in Africa depends on how players like Starlink, Amazon Kuiper, Telesat Lightspeed, and OneWeb choose to proceed and collaborate in Africa. These global satellite players make strategic commitments to different regions. These services can become more affordable if they invest and collaborate effectively in Africa. Before Starlink, most satellite companies focused on selling equipment and reselling from a distance, treating their products as arm’s-length solutions. A deeper commitment to the African market is needed to make these services more accessible and affordable. TC: The entry of a new player like Starlink might necessitate adjustments in regulations and pricing strategies. How can African countries ensure a healthy balance between fostering competition and protecting existing ISPs? Diseye: Starlink can enable existing ISPs, which make up a small part of the total market. The bigger question is how they will interact with MNOs, which dominate over 90% of the market. Collaboration between Starlink and ISPs could help both parties thrive and provide better consumer services. In fact, the most dominant LEO satellite provider in Africa (that can also grab some market share from the MNOs) will be the one who cracks the code on engaging the local ISP market and making them allies, not adversaries. TC: Do you think satellite internet will eventually replace traditional ISPs in Africa, or will they coexist and cater to different needs? Diseye: LEO Satellite Internet will not replace traditional ISPs in Africa; they can coexist and cater to different needs. Traditional ISPs can adapt and innovate by focusing on value-added services that complement Starlink’s connection. For example, ISPs could provide community Wi-Fi, point-to-multipoint connections, campus networks, first-level support, cybersecurity, and educational tools alongside a satellite internet service. In addition, offering complementary equipment like surge protectors, solar solutions, and localized support will be crucial. ISPs need to consider value addition and improving the internet experience for customers and specific locations, whether for SMEs, MSEs, or LSEs. By doing so, they can remain relevant and even thrive in the evolving landscape. Moniepoint is Africa’s fastest-growing fintech The Financial Times has ranked Moniepoint as Africa’s fastest-growing fintech based on its absolute and compound growth rate. Read more about it here. Crypto South African crypto hustler bawls eyes out in court Have you ever cried in public? (Don’t worry, we won’t judge…much). Meet South Africa’s crypto starboy, Neil de Waal, who went from flaunting his fancy crypto lifestyle on social media to, well, bawling his eyes out in court! In a dramatic turn of events, Neil de Waal, a South African cryptocurrency entrepreneur known for his flashy lifestyle and brazen claims of “mooning” his way to riches, was taken into custody and brought before the court to face charges related to his crypto trades. De Waal was accused of operating a Ponzi scheme, committing fraud, and laundering millions in cryptocurrency. De Waal is alleged to have promised unsuspecting investors astronomical returns on their investments, touting his “foolproof” trading strategies and “exclusive” access to lucrative crypto projects. However, it seems that the only thing that was “moon-ing”
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Beacons of hope: The 2024 cohort of Ashoka Young Changemakers in Nigeria
In July last year, Eunice Omojola, a 20-year-old student at the University of Lagos, founded TechInEdu, an initiative that teaches practical computer skills in schools in marginalised communities. She hopes to help as many public school students to have practical ICT knowledge which she didn’t get when she was in their shoes. About 89% of young people in sub-Saharan Africa have no access to household computers. Public primary and secondary schools like the ones Omojola attended had no or inadequate computer labs. This forces teachers to limit ICT studies to steps and diagrams scribbled on dusty chalkboards. Eunice Omojola After she got admission into the university, Omojola joined a hub in Lagos where she met tech enthusiasts and quickly gained computer literacy. “The knowledge I got there was so profound. I wanted to take it back to public schools like mine where they do not have the amenities or resources to teach it,” Omojola told TechCabal on a call. Now, she is doing exactly that through TechinEdu. Omojola is one of several young people in the Ashoka Young Changemakers (AYC) community. AYC is a global network of people younger than 21 who lead a team of their peers to solve problems around them. AYC offers them tools, training, a supportive network and resources to scale their impact. Another such changemaker is Naomi Bamgbose, an 18-year-old who founded Girls Techie during her secondary school education. Much like Omojola, Bamgbose is solving a problem of exclusion from tech, but one based on gender. For her, it all started during the pandemic, a time when the internet made the world feel small and connected. That virtual shrinking of the world into a global village made her realise how big the gender gap is. Naomi Bamgbose “I was 15 at the time, participating in hackathons which grew popular during the pandemic,” Bamgbose said. She would reach out to online communities, inviting people to join her team and build apps or solve coding problems for a few hours. ”But one time when we had to form an all-girl team of 3-5 people, I and my friend (who is now my cofounder) could not find girls to join us.” Bamgbose, who was a front-end developer at the time and co-founder, a back-end developer, had to drop out of the hackathon as they could not find female product (UI/UX) designers. This experience has stayed with her. After some research, they found out the age-old fact about why there are limited girls in STEM. “We found out that a big reason that girls viewed themselves differently than boys. They feel that tech is for boys and that they were not smart enough to be good at it.” Her response was to create an organisation, Girl Techies to help girls change that perception of themselves and surmount the challenges of getting into tech: lack of mentorship, access to supportive communities and opportunities, and access to training. So far, they have hundreds of members across Africa. Bamgbose hopes to grow it to 5,000 communities soon and she thinks she will with the support of the Ashoka Young Changemakers community. Ashoka Young Changemakers Joining Omojola and Bamgbose in the 2024 Nigerian AYC cohort are seven other determined young individuals running impactful initiatives: Favour Effiom (19), founder of We Are Reality Foundation; Precious Damian (17), founder of The Rabah Initiative; Flourish Alonge (17), founder of Global Insight, a mental health initiative; Ashraf Maisikeli (18), founder of Inspire Change Foundation; Peter Adebowale (19), founder of ESD For Communities; Dawn Cobham (17), founder of Go Learners; and Saviour Iwezue (19), founder of Team Illuminate.
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Latest DSTV Uganda packages and prices in 2024
Selecting the right DSTV package for you can be a dilemma sometimes if you can’t determine what you’ll be getting for each and at what cost. This guide breaks down the different packages DSTV Uganda offers in 2024, helping you pick the one that perfectly fits your needs and budget. 1. Premium plan (UGX 290,000 per month) The Premium plan is the top tier, with over 170 channels, including 40 in High Definition (HD). It’s designed for you if you want no exceptions from all the entertainment DSTV may have to offer. This plan means you can watch the latest movies, binge award-winning shows, and catch every game with the complete sports offering on 16 SuperSport channels. Plus, you get Showmax streaming for free! 2. Compact Plus plan (UGX 170,000 per month) Die-hard sports fans will love the Compact Plus plan. Here your sentiments are well catered for because you’ll get to watch the Champions League, UFC, and NBA, with a good share of documentaries, international shows, and movies. 3. Compact plan (UGX 110,000 per month) The Compact plan offers a wider variety of entertainment. You can catch Premier League matches, international entertainment, dedicated kids’ and educational channels, top local and international news, and a 24/7 WWE wrestling channel. 4. Family plan (UGX 69,000 per month) The Family plan has over 110 channels, offering something for everyone. Watch lifestyle shows, documentaries, European football (La Liga and Serie A), and kids’ content. Adults can enjoy dramas and novellas. 5. Access DSTV Uganda plan (UGX 45,000 per month) For those on a budget, the Access plan provides a good selection of movies, glimpses of top European football on SuperSport Football, kids’ channels, and local and international music. 6. Lumba DSTV Uganda plan (UGX 16,000 per month) The Lumba plan is a great introduction to DSTV. This budget-friendly option offers all the popular Ugandan local channels for a taste of homegrown content. Watch shows on Pearl Magic, catch exciting football on SuperSport Football, and keep kids entertained with Nickelodeon. Final thoughts on DSTV packages in Uganda 2024 DSTV packages in Uganda have something for everyone. Consider your budget, what you like to watch, and which channels are important to you, and you’ll easily select from the options.
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LAUTECH Post-UTME screening 2024/2025
Ladoke Akintola University of Technology (LAUTECH) screening 2024 will be underway soon. Here, we show you, in detail, what to expect through the process: The Lautech screening basics Lautech screening has had established minimum requirements over recent years. See the following: First, you’ll need a score of at least 180 in your most recent UTME exam. This demonstrates a baseline academic ability. You’ll also need a minimum of five credit passes in relevant subjects from your SSCE, NECO, or NABTEB results, achieved in no more than two sittings. Another point to note is that, as part of the screening process, LAUTECH will combine your UTME score with your O’Level results to determine the final cut-off mark for your chosen program. So, strong performance in both areas is crucial for securing a spot at LAUTECH. Credentials to prepare for the 2024/2025 Lautech screening For a smooth Lautech screening experience, ensure Your UTME O’Level results are uploaded on the JAMB CAPS portal. This applies exclusively to UTME candidates. Direct Entry applicants have a different route. They must obtain their application forms directly from JAMB and possess a minimum of Upper Credit alongside the five credit passes in their SSCE, NECO, or NABTEB results. Passing through the online application LAUTECH screening over the years has embraced a fully online approach. So once the process is announced: Head over to the LAUTECH admission portal to submit your application. There, you’ll need to pay a registration fee of about ₦2,3000. Be prepared to upload a recent digital passport photograph with a clean white background. Providing a valid email address and phone number is important for staying informed throughout the Lautech screening 2024 process. Final thoughts on LAUTECH post-UTME screening 2024/2025 Please note that variables such as screening costs and cut off marks may vary when the University eventually announces its screening process for the year. Nevertheless, keen attention to the steps provided here will help you in registering for the forthcoming LAUTECH post-UTME screening 2024.
Read MoreWracked by fraud, fintechs and banks must work together or fall
Despite a decline in fraud incidents in Q1 2024, financial industry players agree fraud is an existential challenge. Traditional banks and fintechs have historically fought fraud through internal controls, strengthening security infrastructure, and having adequate information on customers (KYC processes). Banks also share information among themselves, helping them identify and restrict the accounts of bad actors pending investigation. Fintechs have tried to replicate this information sharing but have failed. In March 2023, fintechs, led by Flutterwave, began talks to create a fraud database, codenamed Project Radar, to share data on individuals and groups that had attempted or made fraudulent transactions. But the fintechs, hawkish about their data and ultracompetitive, did not make much progress with those talks. Another industry collaboration to fight PoS fraud, a popular channel for bad actors is still in its early days. However, a decision mandating mobile banking agents to register with the Corporate Affairs Commission (CAC) is expected to increase transparency. If financial institutions are learning to fly without perching, bad actors are learning to shoot without missing. The consensus is that an industry-wide response is required. “It goes back to KYC and customer due diligence,” said Adedeji Olowe, founder of Lendsqr, a lending-as-a-service startup. “There is literally nothing new anyone is supposed to do.” Section 7(2)(b) of the CBN Customer Due Diligence Regulations 2023 mandates financial institutions to physically verify the residential address of customers. Until recently, only traditional banks have followed this directive. The CBN began mandating fintechs to follow the same rules in May. Nigerian fintech startups could spend over $1 million on KYC address verification Those KYC processes, which are now being tightened and applied across board, are at the heart of a dispute between banks and fintechs. In April, Wema Bank removed seven fintech partners from its payment gateway platform over fraudulent activities after reporting ₦685 million ($594,943) in fraud and forgery losses in 2023. Fidelity Bank also briefly blocked some neobanks over fraud concerns in 2023, although such heavy-handed measures are likely frowned on by the regulator. Nevertheless, banks and fintechs must sheathe their swords and collaborate to fight fraud. One such strategy in that fight is data sharing. “I think the ecosystem is ripe for a central repository where everybody can share data. Just the way the banks themselves came up with BVN before the regulator stepped in. The entire financial industry needs something similar to tackle fraud,” said Lanre Ogungbe, co-founder of Identitypass, a Nigerian identity verification company. Data sharing has been discussed since at least 2018, possibly earlier, with little to show for it. The growing complexity of fraud has made it more important than ever. Financial Institutions (FIs) are part of the Nigeria Electronic Fraud Forum (NEFF), a CBN initiative where they report fraud incidents and provide relevant information on the nature of the fraud, but data sharing isn’t part of the arrangement. The argument for a central repository is that banks and fintechs can share data on customers who trigger fraud flags and make that data accessible to all participants. One industry insider narrated how a former employee of a traditional bank sacked for fraud got hired by a fintech startup six months later. “Everyone must come together to fight fraud because it’s really becoming a pandemic,” said Segun Aina, President Fintech Association of Nigeria (FintechNGR), an industry lobby group. Yet, quite a few people are skeptical about any collaboration. “I don’t see collaboration happening because there is this aversion to sharing data. If every stakeholder is doing what they are supposed to do, fighting fraud will be much easier,” Olowe said. Aina said FintechNGR is developing a black book where fintechs can drop details of bank accounts that have been involved in fraud to blacklist transactions from such accounts. Taking fraud more seriously will also include setting fraud desks and timely disclosure of fraud incidents, Damilola Adeyi, a fraud expert told TechCabal. “A lot of financial institutions don’t see fraud as an integral part of their operations. You can’t eradicate fraud but you can mitigate it,” he said. In 2015, the CBN mandated all deposit money banks, mobile money operators, switches, and all payment service providers to establish a fraud desk to receive and respond promptly to fraud alerts. But most fintechs are non-compliant because the CBN has failed to enforce the directive, one industry insider claimed. An executive at Moniepoint confirmed the company has a fraud desk that handles transaction monitoring and behavioral analysis, fraud detection and reporting, and investigation with law enforcement agencies. Yet, financial institutions are paranoid about fraud reporting and believe disclosures could cost them customer trust. At least 63% of the financial institutions profiled in a recent fraud report by the Nigeria Inter-Bank Settlement System (NIBSS), the national payment switch, failed to report fraud cases, a violation of a CBN directive. There is equally a need to strengthen the security systems of financial institutions. In the First Bank incident, the fraud went undetected for two years, raising questions about the bank’s internal control. A lack of an effective internal control system is the major cause of bank fraud, according to research. A 2022 KPMG Nigeria study found that only 30% of local banks have fully implemented KYC and anti-fraud measures. “The CBN must take its audit more seriously and do spot checks to see that Information Security Management System (ISMS) is being adhered to in all the banks,” said one fraud expert who asked not to be named.
Read MoreCopia Global seeks fresh funding after this week’s layoffs
Copia Global, the Kenyan B2C e-commerce startup that entered administration on May 24, is still a going concern despite layoffs that affected 1,060 employees on Thursday. Administrators told employees in termination letters on Friday that they aim to continue the business and cut operational costs as the new leadership seeks to raise new capital. Copia appointed Makenzi Muthusi and Julius Ngonga of KPMG as joint administrators on May 24. “We must ensure the business is right sized and right shaped to meet the new digital business opportunity and position the business for profitable growth. To maximize the potential for Copia to succeed long term, it is necessary to make some difficult decisions regarding its current operations,” said Makenzi Muthusi, Copia’s joint administrator, in a termination letter seen by TechCabal. “Unfortunately, your employment with Copia Kenya Limited (under administration) will be terminated, effective 7th June 2024. This decision is in no way a reflection of your performance or contributions to the company but rather a consequence of the current circumstances.” Copia told the employees the company would inform them about potential employment opportunities, signaling the administrator’s commitment to turning around the ailing e-commerce giant. However, it remains to be seen how the new management will convince new investors to inject new capital after similar efforts to save the company collapsed in early May. The layoffs follow the company’s decision on June 4 to stop taking orders from Central and Eastern Kenya, an indication that the administrators are rolling back operations to arrest cashflow challenges. Copia Global was founded by Tracey Turner and Jonathan Lewis in 2013 to allow retailers in rural and peri-urban areas to restock essential goods using USSD or a mobile app. It received $123 million in venture capital funding, joining a growing list of firms that have received investors’ goodwill but have struggled to turn on profit.
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👨🏿🚀TechCabal Daily – How much will KYC cost?
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning In Nigeria, food inflation has gotten so bad, its poorest citizens are resorting to buying slices of yam while its political elite continue to fight for their slice of the national cake. About 30 state governors spent $600 million in three months on refreshments—about enough money to buy bags of rice for 11 million Nigerians who cannot afford it. Here’s a chart from The Big Daily that really puts inflation into perspective. If you’d like to get more interesting insights on the Nigerian economy, The Big Daily is where you should be looking. In today’s edition Copia Global lays off 1,060 employees Africa receives only 2% of global clean energy investment KYC requirements to cost Fintechs over $1 million Funding tracker The World Wide Web3 Opportunities Layoffs Copia Global lays off 1,060 employees There are big questions over the future of Kenyan e-commerce startup Copia Global. Citing uncertainties, it considered options like large-scale layoffs or even shutting down entirely in May. Two weeks ago, Copia entered into administration and now, will be having conversations about its future. Today June 7, at least 1,060 of its staff employment will be terminated. In a short meeting, CEO Tim Steel, alongside the newly appointed administrators, told the remaining staff they were required to return company property like laptops and tablets today. Additionally, they were asked to sign termination letters today, officially ending their employment in Copia. The company has agreed to pay a one-month severance package to its laid-off staff, including unpaid leave days as required by Kenyan labour law. But a major snag remains: no one knows when they will actually get the money. This lack of transparency is understandably causing anxiety, especially considering the recent delay in May salaries, which employees just got this week. Per a TechCabal report, two Copia employees have refused to sign their termination letters until a clear payment schedule is established. Just last Tuesday, Copia halted taking orders in six towns including Naivasha, Machakos, Meru, Embu, Kericho, and Eldoret and the staff in these areas were also reportedly sent on leave. Echoing Kenn Abuya’s article where he noted signs of strain despite Copia’s claims of “cracking the nut of last-mile delivery”, the once well-funded company now struggles to stay afloat. Moniepoint is Africa’s fastest-growing fintech The Financial Times has ranked Moniepoint as Africa’s fastest-growing fintech based on its absolute and compound growth rate. Read more about it here. Funding Africa receives only 2% of global clean energy investment despite huge energy gap Global investment in clean energy is projected to hit a whopping $2 trillion this year—double the amount being invested into fossil fuels. While this is a major win for Mother Earth, a new report by the International Energy Association (IEA) found a bit of a bummer situation for Africa. The continent will receive only 2% of this amount, a mere $40 billion. This allocation stands in stark contrast to Africa’s immense energy needs as over 600 million people lack access to electricity, and around 1 billion struggle without clean cooking fuels. While 83% of the global population lacking electricity reside in Africa, the World Bank and AfDB are aiming to cut that number in half by 2030. Their combined plan, estimated at $30 billion, will see the World Bank provide access to electricity to 250 million people, while the Africa Development Bank Group (AfDB) focuses on reaching 50 million. The total amount of money expected to be invested in African energy in 2024 is around $110 billion (USD). Seventy billion will go towards traditional fossil fuels, while the remaining $40 billion will be used for cleaner energy sources. China is expected to receive the largest investment in clean energy in 2024 with an estimated $675 billion, while Europe is set to account for $370 billion and the United States $315 billion Africa currently lags behind the global average in energy investment. While the worldwide share of GDP dedicated to energy sits at 1.8%, African nations allocate only 1.2% of their GDP to this sector. This shortfall is further compounded by a significant funding gap. The IEA new report estimates that Africa requires a yearly investment of $200 billion by 2030 to reach its energy and climate objectives. Unfortunately, the current reality falls far short, with only $25 billion secured annually. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Fintech KYC requirements to cost Fintechs over $1million On Monday, June 3, Nigeria’s central bank lifted its six-week-long ban on customer onboarding by Nigeria’s top fintechs—Paga, OPay, Kuda, Palmpay, and Moniepoint. Before the suspension of the ban, the apex bank, on May 20, 2024, shared a list of requirements for these fintechs to continue customer onboarding which include blocking peer-to-peer (P2P) crypto transfers and mandating physical address verification for customers of all tiers of accounts and POS agents who offer agency banking services. With well over 1.5 million POS agents combined, these fintechs could be spending as much as $1 million to verify their physical addresses. Muktar writes all about it here. What were the most popular payment channels on Paystack in 2023? Find the answer here paystack.com/2023 TC Insights Funding tracker This week, Moroccan agritech startup YoLa Fresh secured a $7 million pre-Series A funding round. The round was led by Al Mada Ventures, with participation from Algebra Ventures, E3 Capital, Janngo Capital, and FMO, the Dutch entrepreneurial development bank. Here’s the other deal for the week: Egypt-based prop-tech Birdnest closed an undisclosed round of pre-Series A funding from investors, including Beltone Venture Capital and CI Venture Capital. Zambian e-commerce startup Bosso raised $400,000 in a pre-seed round. Investors include Leonard by Vinci, Launch Africa
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