👨🏿🚀TechCabal Daily – New funds, new visions
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday If you’re looking for affordable—or sort of affordable—satellite internet, Elon Musk’s got your back with discounts for Starlink. Last month, the price of Starlink routers from the official site jumped from ₦378,000 to ₦800,000. While Starlink did not give any reason for the increase, we can do what many companies have done and blame “macroeconomic conditions” and inflation. At the time of the increase, the naira was trading at ₦1,710/$1. Now, with the naira at ₦1,188/$1, Starlink has slashed the price to ₦400,000 in Nigeria, and ZAR 12,000 to ZAR 6,800 for southern African countries. In today’s edition Verod-Kepple closes $60 million fund TikTok removes 1.7 million videos from Nigerian users WeBuyCars sets its sights on an IPO SunCulture raises $27 million The World Wide Web3 Opportunities Funding Verod-Kepple closes first fund at $60 million Verod-Kepple Africa Ventures (VKAV), a pan-African Venture Capital firm, just closed its first fund at $60 million. Led by investors like Nigeria’s SCM Capital, Taiyo Holdings, and C2C Global Education Japan, the fund will see investments in up to 21 high-growth startups across Africa. Per the firm, ticket sizes will range between $1 million and $3 million in startups across various sectors like fintech, mobility, e-commerce, and healthcare across Africa. So far, Verod-Kepple has already invested $17.5 million in 12 companies from countries like Nigeria, Egypt, and Kenya. Why is this good news? Considering the current investment downturn, Verod-Kepple Africa Ventures is stepping in to bridge the gap for startups needing capital to scale their businesses. Their focus on Series A and B rounds fills a void where local funding options are limited. In an interview with Tech Crunch, VKAV partner Ory Okolloh said, “Over the last few years, we have seen a growth in pre-seed and seed funds, and we felt there are not enough funds at the growth stage of investing to get these companies to the next level in terms of scale, exits or even being around as sustainable profitable businesses,” “Our focus is Series A and B but we have the ability to go earlier to pre-Series A if we think it is a good opportunity. We think there’s still a need for more growth-stage capital with locally based investors,” she said. The firm’s portfolio presently includes high-hitters like Moove which recently raised $100 million in a Series B round, Moroccan B2B Chari, and fintech Ceviant. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Social Media TikTok removes 1.7 million videos from Nigerian users TikTok has revealed it took down 1.7 million videos posted by Nigerian users in the last quarter of 2023. Why? According to the platform, these users weren’t following the rules. In its Community Guidelines Enforcement Report, Nigeria was placed among the top 50 countries with videos violating TikTok’s guidelines which include policies on safety, privacy and authenticity. The report by the company also states that the top 50 markets which violated its policies accounted for about 90% of all content removals. In total, TikTok removed 176.5 million videos globally. From October through the end of the year, the platform also took a firm stance against fake or spam accounts by removing 169 million fake accounts. The company also said it removed 1.03 billion likes from videos, along with 720 million fake followers and 4.9 billion fake follow requests, all of which were identified as originating from automated or inauthentic means, as per TikTok. About 1.2 million bot comments on content tagged with hashtags related to the Israel-Hamas war were also removed. It’s not the first time Nigeria’s been on TikTok’s feed: In Q3 2023, TikTok did something similar and removed 1.4 million videos from Nigerian users. During the evaluation period, 136.5 million videos were taken down from the internet worldwide. They were removed based on the violation of TikTok’s policies. Despite this purge, TikTok’s popularity shows no sign of declining. The platform continues to be a favourite among social media users, particularly young people worldwide. As per a recent data.ai report, TikTok amassed $3.8 billion in consumer spending through the Apple App Store and Google Play Store in 2023, contributing to its total revenue reaching $10 billion. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Startups WeBuyCars sets sight on IPO Eight out of ten cars sold on the continent are used vehicles. Africa’s used car market is estimated to be worth $61.24 billion by 2029. Egypt and Morocco have been identified to be the biggest contributors to these numbers. However, countries like South Africa, Nigeria, and Kenya are among the continent’s top importers of used cars. South Africa experienced a surge in the number of used vehicles sold in the past year, listing up to 100,000 new cars for sale, per data from AutoTrader. The country’s used-car market leader is on track for new heights. The road to IPO: Launched in 2001, South African used-car platform, WeBuyCars, started as a family business. The vehicle trader now buys and sells about 13,500 vehicles monthly and has grown to be South Africa’s leading pre-owned vehicle trader, taking an estimated 10%-12% of the market share. The company is taking even bigger strides as it goes public. On Tuesday, WeBuyCars raised R902.7 million ($49 million) ahead of its listing on Johannesburg Stock Exchange today. WeBuyCars listing comes on the back of a new listing wave on the South African bourse after the Johannesburg Stock Exchange deprioritized listing new companies. WeBuyCars stock will trade for R18.75 ($1) per share. The company issued 417,181,120 shares while its parent company, Transaction Capital, an
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South African used-car platform WeBuyCars sets sight on $420m valuation with JSE Listing
WeBuyCars will target a R7.8 billion (~$420 million) raise when its shares begin trading on the Johannesburg Stock Exchange (JSE) on Friday. The company has issued 417,181,120 shares at a consideration of R18.75 per share. WeBuyCars allows customers to buy and sell used cars, acting as a middleman in the transactions. In 2023, the company sold a total of 142,337 vehicles and bought a total of 141,851. According to its parent company Transaction Capital, also JSE-listed, the unbundling and listing allows WeBuyCars shareholders to have direct access to a market-leading asset. The listing of WeBuyCars presents a signal of the renaissance of South Africa’s IPO activity which saw only 13 listings in the last 3 years. When the JSE trade opening bell rings on Friday, whether the market will agree with or brush off WeBuyCars’ R18.75 per share ask remains to be seen. Source: Transaction Capital According to Jimmy Moyaha, founder of investment firm Lebowa Capital, WeBuyCars’ R18.75 per share price is reasonable considering the company’s strong business case. “R18,75 may be a little undervalued based on the book-build value they had identified. However, playing it safe only means more upside if you’ve got it right,” Moyaha told TechCabal. Furthermore, Moyaha stated that the share price has the potential to reach highs of as much as R25 per share in the future. WeBuyCars, on the other hand, stated that it is investing in its proprietary AI, data, and analytics to boost its e-commerce sales. Currently, e-commerce sales represent 22% of total sales, down from the 27% recorded in 2022, showing that a lot of work is yet to be done to attract e-commerce customers to the platform. However, other analysts are a bit sceptical about the company’s fortunes on the public markets, pointing to the company’s financial performance as a put-off factor. Transaction Capital’s latest financial results show that although the volume of cars bought and sold by WeBuyCars increased by 9% and 13% respectively, its earnings were down by as much as 14% from the previous year. The company’s cost-to-income ratio also increased from 57% in 2022 to 66% in 2023.
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👨🏿🚀TechCabal Daily – Kenya to develop national AI strategy
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Eid Mubarak Here’s your weekly reminder to move TC Daily to your Main or Primary email folder so you don’t miss any critical updates. Email service providers have made a lot of changes in the past two months, and these changes may affect where our emails land in your inbox. If you’re seeing this in your Primary inbox, you’re fine, but if we’re in Promotions, please drag and drop us to where we rightfully belong . Thank you. In today’s edition Nigerians can now rate their civil servants Kenya announces plans for national AI strategy Africa Data Centres to build 12MW solar farm Nigeria’s mobile subscriptions rise to 217.9 million after January dip The World Wide Web3 Opportunities Economy Nigeria develops scorecard for public officeholders Nigeria is introducing a scorecard system to gauge the performance of its public officeholders. The news: In a recently released Central Delivery Coordination Unit (CDCU), the government hopes to offer its citizens a medium to measure and review the performance of public officeholders. The Bola Tinubu-led administration says it has a goal of “ensuring citizen-centric governance for accountability and transparency.” Central Delivery Coordination Unit? The CDCU is the second iteration of two performance tracking platforms the government had earlier created in August 2022. Both platforms—Presidential Delivery Tracker (PDT) and the website of the Central Delivery Coordination Unit (CDCU)—were designed to help citizens track the government’s deliverables and performance on policies, projects, and programmes. In its latest iteration of the CDCU, the government has launched an app alongside building a Delivery Reporting Framework and Template that mirrors international standards. Will this project hold water? Nigeria’s latest swing at open governance is not a first on the continent. Morocco’s revised constitution of 2011 outlined government goals in making information available to its citizens. Similarly, Kenya’s constitution—section 35—guarantees its citizens’ rights to government information. While the Nigerian government has implemented the tracker, questions in the hearts of the citizens will be whether the data captured is accurate and not manipulated. As the tracker brings to the fore the performance of public officials, citizens will also be eager to know if there will be consequences for public officials who consistently underperform according to the scorecard or whether the data be readily available and easily understandable for the public. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. AI Kenya announces plans for national AI strategy A week after Nigeria announced plans to develop its National AI strategy, Kenya is following suit. Let’s—pardon our AI—delve into it: In a recent kick-off meeting held on April 8, 2024, the Kenyan government, in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) known as “German Development Cooperation” in English, launched a project to formulate a National Artificial Intelligence (AI) Strategy. With support from the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union, the initiative, named “FAIR” which means “Forward Artificial Intelligence for All,” aims to leverage AI’s potential for driving Kenya’s digital transformation and achieving the Sustainable Development Goals. The effect of the launch of Kenya’s AI strategy: AI can positively impact various sectors in Kenya, such as health, education, finance, and security and forming a strategy which will include policy and regulation-making will reduce its excesses. Bodo Immink, the Country Director of GIZ said the project represents a significant step forward for Kenya in harnessing the power of AI for sustainable development and social inclusion. Prior to the launch, on March 26, 2024, the Kenya National Commission for UNESCO (KNATCOM), in partnership with UNESCO, hosted a Stakeholders’ Consultation Forum in Nairobi to address Kenya’s Readiness Assessment (RAM) on AI. The forum marked a significant step in Kenya’s dedication, alongside UNESCO’s 193 Member States, to champion ethical principles in AI development. The 2021 adoption of the Recommendation on the Ethics of AI has shown Kenya’s commitment to prioritising human rights and promoting inclusivity in the advancement and deployment of AI technologies. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Energy Africa Data Centres to build 12MW solar farm to combat South Africa’s loadshedding Over the past ten years, SA has suffered load shedding which has seen citizens enjoy barely 10 hours of electricity per day. One of the culprits: data centres, which typically guzzle 12-20MW of power, creates a problem in the country as South Africa is known for its frequent power cuts. To address this, Teraco, an African major data centre provider, announced plans in February 2024, to build a 120-megawatt solar farm in the Free State province to supply clean energy to its facilities across South Africa. Africa Data Centres (ADC), another major player, has followed suit. It has partnered with its sister company, Distributed Power Africa (DPA) Southern Africa, to build a 12MW solar farm also located in the Free State province to power its data centres. The partnership, which is part of a 20-year power purchase agreement signed in March 2023, will ensure a steady supply of clean energy for ADC’s data centres, and is said to reduce reliance on South Africa’s national grid and transition to cleaner energy sources. The rollout will occur in two phases. The initial phase prioritises supplying ADC’s Cape Town data centre, as a result of Cape Town having the necessary regulatory framework and infrastructure for power wheeling in place, ahead of Johannesburg and Tshwane (Pretoria). “Construction starts in the next three months, and we are looking to have 12MW available for the grid in the next 12 months,” said Finhai Munzara, chief financial officer at ADC. Meanwhile, South Africa recently
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2024 JAMB exam slip is ready for print or reprint
The JAMB examination slip for candidates who completed the recent JAMB registration and are looking to sit for the 2024 edition of the UTME exams is now available for printing and re-printing. This is predicated on the long provided date – April 10th, 2024, by JAMB for the release of the slips to JAMB candidates. Having your exam slip is essential, as it contains vital information like your exam date, time, and venue. Here’s a comprehensive guide to help you easily print or reprint your JAMB exam slip 2024: Method 1: Using the JAMB exam slip printing portal Here’s how to go about using the JAMB exam slip printing portal: 1. Visit the Portal Open your web browser and navigate to the JAMB Exam Slip Printing Portal. 2. Enter Your Details On the portal, you’ll be presented with fields to enter your JAMB Registration Number, email address, or phone number used during registration. 3. Print or Save Once you’ve correctly entered your details, click the “Print Examination Slip” button. Your exam slip will be displayed on the screen. Carefully review the information for accuracy. You can then choose to print the slip using your connected printer or save it as a PDF document for future reference. 2. Printing through the JAMB profile portal You can print your JAMB exam slip through the JAMB eFacility. Simply head over to the JAMB eFacility portal using your web browser and: 1. Login Enter the registered email address and password associated with your JAMB profile. Click “Login” to proceed. 2. Locate the print option After successful login, navigate through the portal’s options until you find something like “Print Main 2024 UTME Exam Slip.” Click on this option. 3. Print or Save Similar to the first method, your exam slip will be displayed on the screen. Double-check the details before choosing to print the slip or save it as a PDF. Important Other notes on 2024 JAMB exam slip printing Multiple Prints: There’s no limit to how many times you can reprint your JAMB exam slip 2024. The process is free, so feel free to print an extra copy for safekeeping. Available Methods: Both methods mentioned above are legitimate ways to access and print your JAMB exam slip. Choose the method that best suits your needs and convenience. Final thoughts on printing your 2024 JAMB exam slip If you diligently follow, you should be able to easily print your JAMB exam slip 2024 and ensure you have all the necessary information for your exam day. Remember, a printed copy of your JAMB exam slip 2024 is mandatory, so don’t wait until the last minute to access it.
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Who calls the shots at Susa Ventures-backed Okra?
Okra, an open finance startup, is one of the few Nigerian API services that provides real-time access to financial data. The startup has raised a total of $16.5 million in venture capital in total from investors like Susa Ventures, Base10, TLcom Capital, and more. Co-founded by Fara Ashiru Jituboh and David Peterside in 2019, Okra initially began as an API provider that allows the real-time exchange of financial information between customers, fintech applications, and banks. However, as is the current trend among open banking startups, Okra has also begun providing payment APIs to businesses in diverse sectors such as finance, e-commerce, and insurance, among others. Okra is also a payment checkout option on GooglePay. The company has focused on the Nigerian market for four years, but it is currently working to expand to South Africa and Kenya. Okra is governed by a board of directors and executively led by Jituboh, who was previously a software developer before the startup was founded, and wears two hats—chief executive officer and chief technical officer. She explained to TechCabal that she currently holds both roles because as an infrastructure provider, “Okra’s business vision and the technology are closely intertwined, and often blurred into each other.” However, she looks forward to having someone else join the team and take on the CEO reins in the near future. Jituboh’s co-founder, Peterside left his office as chief operating officer in 2022. Now every executive team lead directly reports to Jituboh. The leads include Bodunrin Akinola (head of people), Gbenga Oyedele (senior financial analyst), Abiodun Oni (business development lead), Dayo Fasan (customer success lead), and Habib Akinpelu (senior legal counsel). This TechCabal org chart details the leadership at the startup.
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👨🏿🚀TechCabal Daily – A bigger Canal+
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Come and get an exclusive scoop into the State of Tech in Africa in Q1 2024. This Friday, April 12, by 11 AM (WAT), TechCabal will launch its SOTIA report which spotlights important trends in Q1 2024 while also delving deeper into the nitty gritty of various happenings in Africa’s Tech Space. As a stakeholder in Africa’s Tech Ecosystem, these insights will help you position strategically and uniquely to harness the innovative progress within this sector. Register here now to make sure! In today’s edition Binance executive remanded to prison Online payments in Zimbabwe to resume on April 12 Canal+ acquires more MultiChoice shares FBN to raise $231 million to meet capital requirements The World Wide Web3 Opportunities Crypto Binance executive remanded to prison If you wager on the Nigeria-Binance saga becoming a Netflix series, this writer thinks you have a fair shot at winning. The plot thickens as Binance’s detained executive has been sent to the Kuje prison, one of Nigeria’s infamous prisons. ICYMI: Last week, Binance wrote to Nigeria to release its detained executive, Tigran Gambaryan, who had been in detention since February. Gambrayan was charged by Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission on four counts of money laundering charges and was also served tax evasion charges alongside Binance by Nigeria’s tax collector, Federal Inland Revenue Service. The news: Gambaryan who first appeared in court last week, yesterday, pleaded not guilty to the money laundering allegations. Gambaryan also asked not to be linked with charges of his colleague Anjarwalla who escaped the country. The judge, Justice Emeka Nwite, was not convinced, however, rejecting his request not to be tried with Anjarwalla. What’s next? Gambaryan will stay in Kuje jail until the judge decides on April 18 if he can get bail. The trial against him won’t start until May 2. Binance, since last week, has been clamouring for the release of its executive. “We are deeply disappointed that Tigran Gambaryan, who has no decision-making power in the company, continues to be detained,” a Binance spokesperson said in a Bloomberg article. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Economy Zimbabwe prepares for smooth online transactions as ZiG currency launches The Reserve Bank of Zimbabwe, the country’s financial regulator, has explained that it expects online platforms to start processing transactions smoothly on Friday, April 12, 2024, as the country adjusts to the new currency, Zimbabwe Gold (ZiG). What happened? On April 5, 2024, the apex bank released a monetary policy statement to announce its gold-backed currency, the country’s latest attempt to staunch the inflation of its currency. Following this change, online payment platforms in the country were unable to process transactions with the Zimbabwean dollars, which was replaced by the ZiG. The effect of this switch: This switch caused some citizens to be temporarily unable to pay for things online. Banks and payment providers stated that they could not support payments because they had to recalibrate their systems to the new currency Some citizens expressed facing difficulties in making online payments for goods and services. Banks and payment providers explained that they couldn’t facilitate payments because they needed to adjust their systems to accommodate the new currency. The adoption of online transactions has been sluggish among Zimbabweans due to the county’s preference for cash-based transactions in more stable currencies such as the South African rand, Botswana pula, and US dollar. This preference stems from a distrust of having funds in bank accounts, fearing sudden government-mandated conversions to unstable currencies, as witnessed in the past. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Streaming Canal+ acquires more MultiChoice shares, new board to determine buyout Since 2020, French media giant Canal+ has been on a mission to acquire African pay-TV leader, MultiChoice. Its initial stake of 20.1% steadily grew to 35% in February 2024, which triggered a mandatory offer under South African law, forcing Canal+ to formally offer to buy MultiChoice’s remaining shares for R125 per share ($6.71). This valued MultiChoice at R55 billion ($2.9 billion). Although an agreement hasn’t been reached, Patrice Motsepe, South Africa’s wealthiest Black man, got involved in the deal in March. This move is seen as a potential way to overcome South African regulations that limit foreign ownership of broadcasters to 20%, to ensure MultiChoice remains a South African entity. Now, the long-running saga of MultiChoice’s ownership has finally leaped forward. What’s new? MultiChoice has established an independent board— Standard Bank— to evaluate Canal+’s offer. This board will ultimately recommend whether shareholders should accept or reject the bid. While the offer is being considered, Canal+ hasn’t stopped acquiring shares. As of April 5, 2024, Canal+ held over 36.6% of MultiChoice, up from the 35% held in February 2024. If shareholders accept the offer and Canal+ acquires at least 90% of MultiChoice shares, they can delist MultiChoice from the Johannesburg Stock Exchange (JSE). MultiChoice and Canal+ intend to post a combined circular to MultiChoice shareholders by May 7, 2024. Accept fast in-person payments, at scale Spin up a sales force with dozens – even hundreds – of Virtual Terminal accounts in seconds, without the headache of managing physical hardware. Learn more → Banking First Bank of Nigeria to raise $231 million to meet new capital requirements In Uganda, stricter capital requirements implemented in July 2023, forced some banks to downgrade operations. Guaranty Trust Bank Uganda, a subsidiary of a prominent Nigerian bank, was one such institution after it applied to become a credit institution due to challenges meeting the new capital buffer of $38.6 million in
Read MoreBank of Uganda increases interest rates to curb inflation as shilling falls
The Bank of Uganda (BoU) has increased its interest rates for the second straight month from 10% to 10.25%—the highest point in nearly seven years—as the East African country seeks to curb inflation and arrest the depreciation of the shilling. The country’s inflation dropped to 3.3% in March from 3.4% in February, driven by a reduction in food inflation which dropped to -0.4% from 0.5%. Still, the policymakers maintained that elevated inflation risks persist due to global factors and exchange rate woes. Michael Atingi-Ego, BoU deputy governor, said in a virtual briefing on Monday that the country’s core inflation is projected to rise between 5.5% to 6% in the next 12 months, and will return to the 5% target in the second half of 2025. “The evolution of inflation remains challenging, influenced by factors such as the shilling exchange rate, supply-side shocks, global inflation, and domestic food supply. Forecasts have been adjusted downwards to the previous round, largely due to [the] relative stability of the shilling exchange rate,” Atingi-Ego said. The BoU’s raise is expected to continue shoring up the Ugandan shilling, which has been in a free fall since February. Atingi-Ego said that the shilling’s drop was caused by foreign investors withdrawing funds from Uganda to look for higher yields in other markets. The local currency, one of the best performing in Africa at the start of the year, has dropped by 4% despite the central bank’s interventions. “The recent CBR increase has had a spillover effect of stabilising the shilling exchange rate. However, the shilling remains vulnerable due to outflows of short-term foreign investor funds from the domestic market in search of attractive yield in other markets and strong domestic demand by corporates,” Atingi-Ego said. The BoU’s growth forecast for the country’s economy for the current fiscal year that ends in June remained at 6% despite the challenging macroeconomic environment.
Read MoreBinance executive pleads not guilty to money laundering charges, to be remanded in prison
Tigran Gambaryan, the Binance executive detained since February, pleaded not guilty to money laundering allegations brought against him by Nigerian authorities, as the crypto exchange battles a regulatory clampdown in the West African nation. Nigeria’s anti-corruption watchdog, the Economic and Financial Crimes Commission (EFCC) accused Binance and Gambrayan of money laundering and foreign exchange manipulation. The crypto exchange also faces four-count tax evasion charges filed by the Federal Internal Revenue Service (FIRS). Last week, the court adjourned both cases, citing the failure of the two agencies to inform the company before arraignment. Gambaryan, who appeared before Justice Emeka Nwite of the Abuja Division of the Federal High Court on Monday, pleaded not guilty to all four counts of money laundering, the News Agency of Nigeria reported. Nwite dismissed Gambaryan’s appeal to be served without the charges of his escaped colleague, Nadeem Anjarwalla, Binance’s regional manager for Africa, who fled the country on March 22. Gambaryan will be remanded in Kuje Correctional Centre, pending the determination of his bail application on April 18. The judge adjourned the case to May 2 for commencement of trial. Gambaryan and Anjarwalla were arrested and detained in February after flying into the country to resolve the company’s restricted website access—which the government blocked on suspicion of manipulating FX prices in unofficial markets. Binance’s regulatory woes in Nigeria are in connection with a push by the government to halt speculation on forex trading, following volatility in the price of the naira. In a statement last week, Binance asked Nigerian authorities to release its detained official, saying he “has no decision-making power in the company and should not be held responsible while discussions are ongoing between Binance and the Nigerian government.” Both executives filed a human rights violation case in the Federal High Court, demanding their release, the return of their passports, and a public apology.
Read MoreFirst Bank Holdings to raise ₦300bn capital amid CBN’s banking reforms
First Bank Holdings will raise additional capital of ₦300 billion ($231 million) at a shareholders meeting this month, as banks scramble to meet the Central Bank of Nigeria’s plans for a recapitalisation drive. According to a statement by First Bank Holdings on Monday, the capital raise can be issued via a public offering, private placement or rights issue in the Nigerian or international capital markets or a combination of the listed methods. The move to shore up additional capital can be attributed to a directive by the banking regulator to all banks— commercial, merchant and non-interest banks—to increase their minimum capital requirements within 24 months, to enhance the stability of the financial system. Access Holdings to raise $1.8bn ahead of Nigerian banks’ recapitalisation Commercial banks with international spread will increase their capital by as much ₦500 billion to be licensed to operate in the country. While national and regional banks will pay ₦200 billion and ₦50 billion respectively. Many banks have recently had to consider raising additional capital to meet the CBN requirements, especially with a deadline at the end of April 2024 looming on their backs. Access Holdings, the parent company of Nigeria’s biggest bank by assets, previously planned to raise as much as ₦365 billion ($257 million) by selling shares to existing investors. Investors believe their capital raise is in response to this directed by the apex bank.
Read MoreOnline payments will resume in Zimbabwe after April 12 as banks adjust to new currency
The Reserve Bank of Zimbabwe will resume online payments after April 12 as banks and other payment system providers make “satisfactory progress” in converting customer balances to the country’s new currency, the Zimbabwe Gold (ZiG). “[After April 12], the Reserve Bank expects that all the online payment platforms will be operating smoothly for all transactions,” the bank said in a statement. Following the introduction of the ZiG on April 5, online payment platforms in the country could not transact with the Zimbabwean dollar, the predecessor to the ZiG. This led to consumers being unable to pay for goods and services online. Banks and payment providers stated that they could not support payments because they had to recalibrate their systems to the new currency. How Zimbabwean startups are forging ahead despite hyperinflation and sanctions Some Zimbabweans expressed concern about the lack of organisation regarding the new currency. “Bank balances have been converted to ZiG but its circulation starts on 30 April and I can’t use it for online payments, so how will I make any payments between now and April 12?” said a consumer who preferred anonymity. Online transactions have been slow to garner widespread usage as Zimbabweans have developed a culture of cash-based transactions in more stable currencies including the South African rand, Botswana pula, and US dollar. This stems from a fear of having money kept in bank accounts abruptly converted by the government to unstable currencies, as has happened in the past. However, a sprouting of online payment solutions over the last few years has seen adoption gradually increase in Zimbabwe. Technologies which has gained prominence include Innbucks, which allows customers to receive loose change at restaurants; Ecocash, a digital wallet; and O’Mari, a superapp which includes mobile money, insurtech, and investech products.
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