CBN revokes Heritage Bank’s licence minutes after NDIC visit
The Central Bank of Nigeria has revoked the banking licence of Heritage Bank, minutes after a TechCabal report that officials of the Nigeria Deposit Insurance Corporation visited the bank. “In accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Institutions Act, hereby revokes the Licence of Heritage Bank Plc,” a statement from the Central Bank read. Exclusive: NDIC takes over Heritage Bank as CBN revokes licence of struggling lender “The action has become necessary due to the bank’s breach of Section 21(1) of BOFIA 2020. The Board and management of the bank have not been able to improve the bank’s financial performance, a situation which constiutues a threat to financial stability.” Heritage Bank’s struggles have long been public and a visit from NDIC officials on Monday morning were the final signs that a takeover was on the way. *This is a developing story.
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Exclusive: NDIC takes over Heritage Bank as CBN revokes licence of struggling lender
The Nigerian Deposit Insurance Corporation (NDIC) visited several Heritage Bank branches on Monday morning as talks of a distress resolution takeover gather steam. TechCabal identified at least twelve NDIC officials at the Victoria Island, Allen Avenue, Ilupeju, and Ladiopo branches of the bank. One of the officials at a branch office had a memo that showed they were on “special assignment.” The official declined to comment on the memo or provide any details. At least two persons with direct knowledge of the situation claimed the special assignment is connected to a distress resolution and a takeover of Heritage Bank. The Banks and Other Financial Institutions Act (BOFIA) mandates the Central Bank to turn over significantly or critically under-capitalised banks to the deposit insurer for distress resolution. A Heritage Bank spokesperson did not immediately respond to a request for comments. Three NDIC officials insisted any talks of a takeover was false and that today’s visit was part of a “routine exercise” going on at all banks. A spokesperson for the Central Bank was unavailable for comments at the time of this report. Heritage Bank’s high indebtedness has been public for five years and there has been significant coverage of the erosion of its capital base. In December 2023, a Nigerian publication claimed Heritage Bank failed a stress test, prompting the Central Bank to ask the financial institution to seek strategic investors to aid its recapitalisation. According to one person familiar with the bank’s finances, it has negative shareholder equity—a metric that shows how much a company’s debts and liabilities outweigh the value of all its assets—of ₦900 billion. Despite a deadline of April 2024 to communicate its recapitalisation plans to the Central Bank, Heritage Bank failed to make any progress in talks to raise money from investors, one person privy to those conversations said. As those talks stalled, the bank laid off 1,000 employees in April 2024 and customers began experiencing difficulties accessing their deposits. TechCabal first reported those difficulties in June 2023. “The bank’s regular recourse to the CBN’s short-term borrowing window highlights persistent liquidity resolution issues,” said a 2019 report from Proshare that showed its liquidity issues. Established in 2012, Heritage Bank’s struggles began in 2018 after years of weak corporate governance led to questionable loan decisions. In 2014, it completed an ill-advised acquisition of Enterprise Bank for ₦56 billion, while betting on expanding its retail footprint. That bet backfired. In 2015, the Treasury Single Account was implemented, reducing the amount of public funds in banks, raising the cost of funds for Heritage, and reducing deposits for a bank with a small customer base. *This is a developing story *Additional reporting by Ganiu Oloruntade, Muktar Oladunmade and Faith Omoniyi
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👨🏿🚀TechCabal Daily – Gro shuts down
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy new month From scattered offices to a central hub, Innovation City is changing how South Africa’s tech ecosystem works. It currently houses 10 early-stage startups, 17 high-growth-stage startups, 18 scaleups (including a Swedish unicorn) and nine venture capital firms. Read how these startups, VCs, and corporates are thriving there. In today’s edition Gro Intelligence shuts down First Bank employee on the run after diverting $29 million South Africa’s ANC falls short of parliamentary majority BioNTech secures $145 million for African vaccine factories The World Wide Web3 Opportunities Shutdowns Gro Intelligence shuts down despite funding efforts Another startup in Kenya has closed its doors. Gro Intelligence, an agricultural data company founded in 2012 and based in New York and Nairobi, is shutting down months after replacing CEO and founder Sara Menker and raising a last-minute funding round in March. The company will shut down because it failed to secure further investment from new and existing investors. According to a source of the news agency, the company faced other problems suc as a mismatch between its products and market demands which led to financial troubles for the company. Despite promoting its AI insights and vast data resources, it struggled with consistent revenues, relying heavily on its major client, Unilever. The company also had trouble with wrong hires and didn’t have a chief financial officer (CFO) until recently. While the company raised a total of $117 million, including $85 million in a Series B round backed by Intel Capital and Africa Internet Ventures, Gro Intelligence’s financial troubles became public in February 2024 with reports of missed payroll and pension payments. In March despite raising more funding which reportedly could last till June or July, Gro Intelligence downsized its staff by 60% and now faces lawsuits from ex-employees claiming unfair dismissal. Gro Intelligence is also reportedly being investigated by the Securities Exchange Commission (SEC) over fraud allegations. The company which analysed data from government, weather, and finance agencies to provide practical guidance for agricultural businesses, will now close its offices in New York and Nairobi with just a few people to help wind down. It will join a growing list of well-funded startups to shut down in Kenya. These include iProcure, B2B e-commerce startup Zumi, and fulfilment startup Sendy which is presently in administration. 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. Cybercrime First Bank employee on the run after diverting $29 million First Bank, a leading Nigerian bank is in court to reclaim funds allegedly diverted by an employee. These funds were distributed to the employee’s wife’s account and several accounts were considered as main recipients of the diverted funds. People familiar with the situation told TechCabal that the initial amount found to be diverted was about ₦12 billion ($8.9 million), but now stands at around ₦40 billion ($29 million). The alleged employee who carried out the diversion is identified as Tijani Muiz Adeyinka. Adeyinka worked as a manager on the electronic products team at a head office in Iganmu, Lagos, according to court documents. A First Bank employee told TechCabal that Adeyinka could successfully carry this “heist” out as he was authorised to handle customer reversals; he also managed an account which he used for processing these reversals and credit merchant accounts. Muiz allegedly used his authority to credit customer reversal requests to a merchant account he controlled. As the final line of authorisation on the team, he didn’t require further approvals. The fraudulent activity went unnoticed for almost two years without detection until a customer made a complaint which escalated to the bank’s internal control unit. The control unit discovered several suspicious transactions and reported them to the police. “It was discovered that he made some fraudulent transactions to his wife’s account domiciled with Zenith Bank, which in turn transferred to other beneficiaries totalling thirty-four accounts which also gave birth to second beneficiaries domiciled with other banks totalling 1,190 accounts,” read a statement from the investigating police officer in charge of the case signed March 26, 2024. Within the period of April 4–8, three court orders from the Federal High Court in Lagos were granted to freeze hundreds of accounts suspected of possessing the stolen funds. An anonymous email sent to TechCabal alleged that some of the stolen money was used to purchase stable coin USDT from some crypto traders. These traders insisted they were unaware of the fraudulent origin of the funds and only sold the USDT. As a result of this involvement, their bank accounts have been restricted and are also caught in the middle of a legal dispute with the bank. Fraud continues to plague Nigeria’s financial sector, despite a decrease in cases in the first quarter of 2024. A 2023 BusinessDay reported that Access Bank suffered a ₦6.15 billion ($4.6 million) in fraud, while Fidelity Bank lost ₦2.5 billion across three separate incidents. 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. Elections South Africa’s ANC falls short of parliamentary majority On May 29, our brothers and sisters in South Africa headed to the polls to elect new sets of leaders across the National Assembly as well as the provincial legislature in each of the country’s nine provinces. In the elections, which saw the lowest voter turnout in South Africa’s 30-year democratic history, the ruling party, the African National Congress (ANC), secured only 40.19% of the total vote cast, falling short of the 50% vote needed to form a government. Sidebar: To form a government on its own, a party needs to receive more than 50% of the total
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Next Wave: Climate tech needs more than just money, it needs corporations in the game
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 02 June, 2024 Driven by the existential threat of climate change (depending on who you ask) and a growing green economy, political leaders and investors are increasingly in conversation to align on climate-focused innovation. Incentivising startups that advance climate tech—products and services related to clean energy and climate change—has become central to innovation policy. Dealing with climate change’s effects or projected outcomes is like a war, where clean energy solutions act as weapons in the battle. The good news is that small, innovative startups are constantly developing new solutions to address climate change. They have developed solar panels that capture the sun’s energy, wind turbines that use wind power to generate electricity, and are continually devising new ways to capture and store carbon emissions. However, for these technologies to move from research and development to widespread adoption, startups need to grow and scale, which requires private investment. Governments play a crucial role in supporting these startups. They can give them money to help them develop their ideas (through grants) or create policies that make clean energy more attractive (like feed-in tariffs, which pay people for the clean energy they generate). This helps get these new “weapons” off the ground. Next Wave continues after this ad. Are you an impact-driven business in Nigeria ready to scale? Apply now for the third cohort of the develoPPP Ventures programme! The develoPPP Ventures program offers you: 1. EUR 100,000 2. Technical support (Needs assessments of organisation & matching of consultants or experts to support identified challenges, consultants are paid by develoPPP) 3. Access to a wide pool of equity investors at the develoPPP pitch event unlocking the opportunity to showcase shortlisted startups to key investors for valuable feedback. To learn more, register for the webinar on June 2nd, 2024. Apply Here. Despite this need, research on how different investors influence climate innovation and how public policy can encourage private investment in climate-tech startups is limited. So, what’s the role of corporate investors in climate-tech start-ups? Historically, the private sector, and corporations specifically, have underinvested in clean energy and climate solutions due to several factors: the capital-intensive nature of new technologies, long development cycles, competition from existing fossil-fuel-based systems, and a preference for lower-risk sectors such as software. However, recently, there has been a notable increase in private sector interest in climate-tech startups. This renewed interest is informed by the lessons learned from previous cycles of climate-tech investments, which were impeded by a scarcity of investors and a lack of sufficient experience among them. Now, there is a robust and knowledgeable investment community, which is better equipped to support the growth and success of innovative climate technologies. Understanding the behaviour of private investors, including corporations, is crucial because they are not a homogeneous group. They have varied focuses, risk appetites, and return expectations, which can lead to different investment choices and influence the direction of technological innovation and energy transitions. Partner Content Read: Introducing Talenvo: Bridging the gap between tech experience and employability for tech professionals here. Per a report by Nature Energy, “Compared to public and other private investors, who may fund startups independently, corporate investors are more likely to invest in combination with other types of investors. However, they often do so within sectors where they have deep experience, with 42% of investments from transportation corporations going to transportation startups and 59% of agriculture corporation investments going to agriculture startups.” But why is a corporation’s investment so significant? Well, beyond just funding, corporations bring crucial resources like market access and expertise to climate-tech startups and can potentially influence which technologies win and how fast they grow. This growing role of corporations in shaping clean energy innovation deserves more attention from policymakers to ensure these investments truly accelerate climate action. The first wave of clean energy startups fizzled because investors, especially corporations, weren’t on board. To truly accelerate climate action, we must find ways to get corporations to invest in promising climate-tech startups. Here’s the challenge, though: corporations can drive down costs with their expertise, but there’s no system to reward them for this societal benefit. The solution could be in the form of public-private partnerships. They can build on existing models, such as a case where companies work with governments to buy clean tech and expand them to fund promising startups directly. At the same time, requiring corporations to disclose their climate-tech investments, similar to what’s already done for some financial institutions, could hold them accountable for putting their money where their mouth is on climate action. Partner Content: Read: Renerworld, a cleantech startup is solving electricity supply issue for tech developers in Nigeria here. The clean energy revolution needs a complete overhaul of its investment strategy. Achieving net-zero emissions requires a diverse toolbox of technologies, many still in their early stages. Unlocking private and corporate capital is important, but throwing money at the problem won’t work since different technologies require different investors. Understanding the motivations and behaviours of each investor, along with the specific challenges of each clean tech sector, goes a long way. As said, the big and often overlooked player here is corporations. As they become a significant source of funding for climate-tech startups, it becomes very critical to understand how their investments shape the future of clean energy. Are they backing technologies accelerating climate action or prioritising their bottom line? By getting smarter about who invests in what, we can ensure climate-tech innovation focuses on the technologies that will get us to net-zero, not just the ones that line corporate pockets. This is where future research and policy come in. There should be a way to
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JAMB releases new 2024 UTME results for JUNE
The Joint Admissions and Matriculation Board (JAMB) has released a new batch of results for the 2024 UTME. The new number of JAMB results released as of 2nd of JUNE 2024 is 3,921. This brings the total number of released JAMB 2024 results to 1,883,350. This is coming after the board released an additional 36,540 in May. However, it is important to note that JAMB has also withheld the results of 431 candidates for various forms of examination misconduct. Going forward, candidates who are yet to receive their results are encouraged to use the available JAMB result checking channel to see if their results are part of those released. Checking the JAMB results released With the recent release of more 2024 JAMB results in JUNE, many stranded candidates are eager to access their scores. Checking your results from the JUNE pool recently released for the 2024 JAMB is an easy process using SMS. Here’s how: Open your messaging app. Compose a new message. In the message body, type “UTMERESULT.” Send the SMS to either 55019 or 66019, which are the designated JAMB shortcodes for checking JAMB results 2024. Important note: You cannot access your JAMB results via the JAMB portal. The SMS method of result checking is the only one provided by JAMB so far for the 2024 JAMB exercise. And the service comes with a charge of ₦50. After you send the SMS, (from the number with which you registered for JAMB) JAMB will then send you a reply SMS containing your scores for each subject tested for in the JAMB examinations (if your results are part of the JUNE 2024 batch release). JAMB exam reschedule for 2024 JUNE While this article focuses on the new JAMB results release for JUNE 2024, it’s important to mention the recent announcement regarding the JAMB exam reschedule for 2024. This reschedule applies to candidates who experienced technical glitches or biometric verification failures during the initial UTME. These candidates will have the opportunity to retake the exam on Saturday, June 22nd, 2024. For comprehensive details on the supplementary exams, please read this.
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New JAMB exam reschedule date for JUNE 2024
The Joint Admissions and Matriculation Board (JAMB) on June 2, 2024, released information for candidates who encountered technical difficulties during the 2024 UTME. The JAMB exam reschedule is slated for candidates who had experiences of glitches with the computer systems at the test centre or biometric verification failure during the recent 2024 UTME exams and were duly recognised as those affected. The supplementary JAMB exam reschedule will take place on Saturday, June 22, 2024. This JAMB exam reschedule 2024 ensures affected candidates have another opportunity to take the UTME and pursue their academic goals without being ostracised by technical issues beyond their control. What to do to partake in the JAMB exam reschedule in JUNE 2024? To ensure a smooth experience on the rescheduled exam day, JAMB implores all affected candidates to reprint their examination slips as soon as possible. The reprinted slip will contain your designated exam time and venue for the JAMB exam reschedule 2024. Reprinting your exam slip is important to avoid any confusion or last-minute scrambling on exam day. Prohibited materials from the JAMB reschedule Here’s a list of items prohibited from JUNE JAMB reschedule exam halls: Electronic devices: This includes mobile phones, calculators, smartwatches, smart rings, bluetooth devices, flash drives, and any other electronic device that could be used to gain an unfair advantage. Books and other reading/writing materials: This includes textbooks, notes, scrap paper, and any other materials that could be used to cheat. Cameras, recorders, and microphones: These devices could be used to record the exam or transmit information to someone outside the exam hall. Ink/pen readers and similar devices: These devices could be used to read information that is hidden on the exam paper. Earpieces: These devices could be used to receive information from someone outside the exam hall. Large bags: Only small, clear bags are permitted in the exam hall. This is to prevent candidates from bringing in any prohibited items. Final thoughts on the JUNE JAMB exam reschedule Please note that the deadline to reprint your exam slip is unspecified, so it’s best to do it as soon as possible for peace of mind. Proactive steps and familiarising yourself with the rescheduled exam details will help you to be fully prepared for the JAMB exam reschedule 2024.
Read MoreWorld Bank board will vote on $2.26 billion loan package to Nigeria in two weeks
The board of the World Bank will vote to decide on a $2.26 billion loan package to Nigeria in two weeks, providing a significant boon to the West African nation desperately trying to improve a foreign exchange liquidity problem. If the vote goes Nigeria’s way, half of the loan amount will be disbursed immediately. “It’s basically a grant,” said Wale Edun, Nigeria’s Minister of Finance and coordinating minister for the economy in a conversation with Channels TV to discuss the state of the Nigerian economy. President Tinubu’s administration began with an immediate decision to remove fuel subsidy and relax strict FX controls. The result of those reforms have been volatility in the FX market and record food and headline inflation. Despite raising interest rates twice, inflation continues to accelerate while plans to raise government revenues make slow progress. “We just need to stay the course,” said Mr. Edun, insisting that the tough decisions the administration has made in the first year will bear results. “It does take time to have the positive results come through.: Some of the early reforms have won some praise from the World Bank, and the government is hopeful that praise will translate to getting a significant grant that will boost its FX position. “We are in a difficult place but the direction of movement is up and positive.”
Read MoreNigeria clears 98% of $850 million backlog owed to international airlines
Nigeria has settled 98% of its FX backlog owed to international airline operators, which is likely to provide some optimism as the country struggles to find price stability in its FX market. According to the International Air Transport Association (IATA), Nigeria has cleared 98% of the $850 million owed to airlines, leaving a residual $19 million pending verification by the Central Bank of Nigeria. The move comes after Nigeria struggled to allow foreign airlines to repatriate their earnings because of an acute dollar shortage. At its peak, Nigeria owed up to $850 million to international airlines in June 2023 and only settled $61 million of this amount, which the airlines considered insignificant. In January 2024, the airlines threatened a strike and some others scaled back their operations. “We commend the new Nigerian government and the Central Bank of Nigeria for their efforts to resolve this issue. Individual Nigerians and the economy will all benefit from reliable air connectivity, for which access to revenues is critical. We are on the right path and urge the government to clear the residual $19 million and continue prioritizing aviation,” the IATA wrote in a statement. Nigeria’s progress in clearing the FX backlog is a positive sign for the country’s aviation industry, which was severely impacted by the blocked funds. The news comes on the back of the CBN’s effort to clear a $7 billion FX backlog and stabilize the exchange rate. In February 2024, Olayemi Cardoso announced that the FX backlog had dropped to $2.2 billion. In January 2024, the CBN disbursed $61.64 million to foreign airlines through various deposit money banks. In the same month, the apex bank released $500 million to various sectors to address the backlog of verified foreign exchange transactions. Cardoso announced in March that all valid foreign exchange backlogs of $7 billion had been settled. The CBN also reported that external reserves had increased by $993 million to $34.11 billion, the highest level in eight months.
Read MoreKenya data analytics startup Gro Intelligence shuts down
Months after the board of the agricultural data platform Gro Intelligence replaced CEO and founder Sara Menker, the New York and Nairobi-based company will shut down, despite raising emergency funding in March 2024. Despite that March bridge round, the business was unable to raise further capital from existing and new investors, AgFunderNews reported on Friday. The company’s struggles became public in February 2024 following reports that it was struggling to meet payroll and pension payments despite raising $117 million throughout its existence–its last public fundraising was a $85 million Series B backed by Intel Capital and Africa Internet Ventures. The company laid off 60% of its staff in March 2024 and will lay off the remaining staff in New York and Nairobi but retain a skeleton team to help wind up operations. Former employees sued Gro over alleged labour violations after it laid them off without notice in March. The company is also under investigation by the Securities and Exchange Commission (SEC) reportedly over fraud, according to AgFunderNews. Gro Intelligence was founded in 2012 by energy commodity trader Sara Menker, and collected data from governments, financial markets, and weather agencies to give agricultural companies actionable insights. One of its biggest customers is FMCG company Unilever. While the current investigations and legal woes have escalated the company’s problem, its collapse was caused by a tough fundraising environment and a product-market-fit issue. “It had positioned itself as a food security platform to a small Asian country and a country in the Middle East exporting oil, without success. It had also attempted to engage the US government under a variety of guises but was only picking up bits and pieces of business here and there,” wrote AgFunderNews. Gro is the third well-funded startup to shut down in 2024 after iProcure, a B2B agricultural inputs distributor, and Copia, a B2C e-commerce platform that entered administration in May.
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Inside Innovation City’s mission to congregate Cape Town’s innovation ecosystem in one place
Taking a sharp turn westwards from Kloof Street onto Darter Road in City Bowl, Cape Town, one’s eyes are immediately met by an expansive three-storey building. From the outside, it looks like an American-style secondary school, complete with red brick and an unusual amount of windows. Stepping inside, one is met by 3,700 square metres of a diverse congregation of South Africa’s tech ecosystem stakeholders. Innovation City, founded in November 2021, currently houses 10 early-stage startups, 17 high-growth-stage startups, 18 scaleups (including a Swedish unicorn) and nine venture capital firms. Numerous corporations, including Old Mutual, Guardrisk PepCo’s fintech division and MTN’s Ayoba team, are stationed there, bringing the total number of entities in Innovation City to around 65. Innovation City was founded by Stephan Ekbergh and Kieno Kammies, a prominent South African radio personality. Kammies describes the facility as more of a “business enablement hub” than a coworking space. Image source: TechCabal Cape Town is undoubtedly South Africa and the southern Africa region’s tech hub, with founders, investors, tech talent, corporates, and enthusiasts residing there. However, the city’s extensive tech ecosystem means that stakeholders are scattered across the coastal city, limiting chances of collaborative synergies. Innovation City’s value proposition is to bring all those together in one focal point. “When planning the facility, the analogy was that of Innovation City acting as an operating system which provides interoperability between ecosystem stakeholders who would reside here,” Kammies told TechCabal. Image source: TechCabal MTN’s Ayoba superapp team was one of the first tenants of Innovation City when the facility opened. The Ayoba super app is currently available in over 22 African markets and has over 35 million users. “The ability to know what’s trending in tech, and who is building exciting products, is not easy to access from anywhere else,” says Sheila Yabo, head of ecosystem development at Ayoba. According to Yabo, in their time in the hub, the Ayoba team has been able to collaborate with various startups to run hackathons as well as events to push out Ayoba’s value proposition. For startups, Innovation City provides a breath of fresh air to the co-working space model which they say does not provide much value in terms of cultivating synergies between various ecosystem elements. One of these startups is Proply, a proptech startup founded by Wesley Roos. Properly, which has so far raised an undisclosed pre-seed round, uses predictive analysis to give real estate investors insights into how a residential property could perform from a short and long-term rental perspective, allowing them to make informed decisions on the returns their portfolio can garner. After hopping around the different co-working spaces in Cape Town, Proply moved to Innovation City in November 2023, citing the facility’s collaboration-enabling environment as a major motivating factor. “In my time here, I have met very good mentors and advisors as well as VCs who helped us map out our fundraising journey,” Roos told TechCabal. Image source: TechCabal Even the more established startups at the facility, some of which include Yellowcard, the crypto exchange which has raised $57 million so far, and Smile ID, the digital identity verification startup which raised $20 million last year, speak highly of the value proposition of the Innovation City ecosystem. Dustin Strydom, director of customer success at Smile ID, says that the company decided on a residence at Innovation City to connect with various South African tech stakeholders. So far, they have seen a return on investment. “The events here were vital in helping us connect with investors and the management team also made introductions to various stakeholders who are vital to our mandate,” said Strydom. Over the last two years, with the impacts of the funding downturn having been felt in the African ecosystem from Cairo to Cape Town, access to investors has been crucial to startups, whether for cheques or advice on how to traverse the troubled waters. At Innovation City, some of the nine VC firms that have residence include prominent pan-African firms like E4E Ventures and Launch Africa Ventures. Zachariah George, managing partner at Launch Africa, told TechCabal that in their time at Innovation City, the firm has been able to capitalise on the hub’s extensive and diverse network of residents to execute its mandate. “Through events and stakeholders present here, [Innovation City] is a focal point for ecosystem stakeholder conversations which helps our process significantly in terms of sourcing deal flow and meeting fellow investors,” George told TechCabal. Image source: TechCabal Cape Town’s diverse tech ecosystem means that although cross-collaboration is key in driving innovation, it is rare to find all stakeholders within a few metres of each other. Through trying to solve this problem, Innovation City has catalysed synergies between the different stakeholders residing in the facility. Although the lack of ecosystem stakeholder collaboration is a countrywide and even continent-wide problem, Innovation City has no plans to build more franchises. “I believe there are people both in South Africa and the continent who also have great models which have the proper local context and we aim to partner with them instead of trying to reinvent the wheel,” Kammies said. Whether it was by design or by coincidence, the fact that the Innovation City building has unusually many windows is perhaps a fitting metaphor, symbolising the many tech points of view and perspectives which call the facility home.
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