Jumia’s market cap rises past $1 billion as Wall Street renews confidence in the e-commerce company
Jumia’s share price has surged 55% over the last five days suggesting growing investor confidence in the e-commerce company in recent months. Jumia’s share price closed trading at $12.08 on Friday, compared to $8.46 on July 8, lifting its market value to $1.32 billion. The rally represents a significant change in fortune for the Pan-African retailer which has endured a mixed fortunes as a publicly traded company ever since it listed on the New York Stock Exchange in April 2019. Although its share price soared to a record $62.4 in February 2021 during the wild days of the meme stock rally, Jumia has lost over 70% of its market value since then as its board and management team race to make a turnaround. After a string of poor performances and an inability to cut costs, the board fired Jumia’s long-time co-CEOs, Jeremy Hodara and Sacha Poignonnec, in late 2022. Francis Dufay, a former management consultant who served as CEO of Jumia Ivory Coast, was promoted to run the company. Under Dufay’s leadership, Jumia has made drastic restructuring to its business over the last 18 months. The company has laid off 43% of its employees, scaled back its presence in underperforming markets, and shuttered its food delivery business. The new boss has also shrunk Jumia’s management team based in the United Arab Emirates and forced several of them to return to work from its offices on the continent. These changes are starting to make an impact. At the end of Q1 2024, the company, which has never turned a profit, reduced its operating losses by 71%. Also, its revenue grew by 18.5% despite rapid currency devaluation and macroeconomic problems in its key markets, especially Nigeria, which represents more than a third of its annual sales. Meanwhile, its salary and administrative expenses have dropped by 37% compared to the first three months of last year. Wall Street analysts have taken notice, with a few of them recommending Jumia shares to their investors. Jumia’s share price is up 252.3% since the start of the year as the business repositions itself for growth, particularly in North Africa. Jumia is also making less direct sales from its own inventory, with third-party merchants responsible for over 52% of sales on the platform in the first quarter. This shift to third-party sellers, which started a few years ago, is helping to reduce costs while increasing alternative platform revenue. Jumia earned $17.3 million in commissions for merchants for the three months of 2024, a 78% jump from the $9.7 million it earned for the same period last year. But as Jumia rejigs its operation, it will have to contend with new competition from social selling platforms, including Instagram and TikTok which are also doubling down on e-commerce tools. One of the world’s biggest retailers, Amazon is also expanding its footprints in Jumia’s key markets, like Egypt. At the same time, Prosus-backed Takealot is looking to consolidate its hold on South Africa, a major economy where Jumia is still trying to catch up with the incumbents. In an interview with TechCabal last year, Jumia’s Dufay said he wants to stabilize the business before chasing new growth across key markets.
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TechCabal Daily – Ruto the Executor
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF Have you got that big brain energy? Put it to the test by signing up for The Big Daily, our newsletter that recaps the most important business, culture, and entertainment news from Nigeria. Every edition lands in your inbox by 7 AM WAT, and each takes just two minutes to read. Convinced? Check it out here. In today’s edition President Ruto overhauls his cabinet Nigeria wants 4,173 BDC operators to rename their businesses South Africa has new rules for telecoms Funding Tracker The World Wide Web3 Job openings Economy Ruto fires cabinet members Kenyan President, William Ruto, may have just earned back some good graces with the people of Kenya after dissolving his entire cabinet on Thursday. Only the deputy president and the prime cabinet secretary remain standing in what appears to be a dramatic response to mounting public pressure. Bureaucrats will now run the government until a new administration is appointed, according to Ruto. This sweeping change comes after Ruto’s promise last Friday, following the #EngageKenyans X space, to “listen to Kenyans” more. This is his first move to assuage the vocal Kenyan populace about their desire for governmental overhaul. No tax, now credit-risky: However, while Ruto may be scoring points with Kenyans, the international financial community is singing a different music. After Ruto’s administration back-pedalled on its plan to increase taxes and duties on consumer goods like bread, diapers, and sanitary pads, credit-rating agency, Moody’s has now rated Kenya a “credit-risky” country for investors, junking their rating from B1 to Caa1. With mounting expenses and debt, a forecast from a government analyst shows that Kenya needs about $26 billion over the next decade to pay off its existing foreign debt. Yet, the country has had to slash its 2024/2025 budget by $1.3 billion—almost half of the $2.7 billion it would have raised from taxes if it hadn’t back-pedalled—and plans to borrow more. While Kenyans are still calling for the resignation of some politicians in government offices, the hard-won victory, at least, is that Kenyans have stood together and overturned a decision that would have meant taxing households that can only afford to spend KES4,131 ($32) monthly. Echoing all over the streets of X is “rais William Ruto akisikiliza”—Swahili for “President William Ruto listens” (blame Google Translate if our Swahili is rusty.) Kenya still has a long way to go; but today, the government listens. Read Moniepoint’s 2024 Informal Economy Report 90% of businesses in Nigeria’s informal economy earn less than N500,000 in monthly profit. Click here to explore the financial profile of Nigeria’s informal economy from Moniepoint’s latest report. Economy Nigeria wants 4,173 BDCs to change their names Nigeria’s business regulator has dropped a bombshell: owners of the 4,173 BDC licences revoked in March 2024, have to rename their business or face dissolution. What happened? The Corporate Affairs Commission (CAC) has issued a 3-month ultimatum to these BDCs to restructure their operations and change their names and objects. In CBN’s revocation circular, it stated that the affected BDCs have failed to either pay the licence renewal fees stipulated in its new guidelines for BDC operators, or haven’t complied with the directives issued in the Anti-Money Laundering, Countering the Financing of Terrorism (CFT) and Counter-Proliferation Financing (CPF) regulations. Zoom in: The CBN issued a directive that all BDCs will now operate as either Tier 1 or Tier 2 BDCs, with Tier 1 BDCs required to pay ₦1,000,000 ($636) and ₦5,000,000 ($3,180) as non-refundable application and licence fees respectively. Tier 2 BDCs would pay ₦250,000 ($159) and ₦2,000,000 ($1,272) for the same purpose. But there is a stark difference between the two: Tier 2 BDCs can’t operate beyond one state in Nigeria, while Tier 1 BDCs are free to franchise their business. Additionally, BDCs are required to maintain a minimum capital base of ₦2 billion ($1,272,280 for Tier 1) and ₦500,000,000 ($318,070 for Tier 2), as opposed to the ₦35 million ($22,265) capital non-tiered BDCs operated with in the past. Naira’s free fall: Since 2022, Nigeria’s currency has fallen by more than 350% against the US Dollar. The country’s apex bank is keen on floating policies and directives that help keep the parallel markets in check, including requiring BDCs to request data on private individuals who sell the equivalent of $10,000 and above to these BDCs. These directives have even led to two raids on BDC operators and arrests of over 100 of them, as the government believes they’re inflating prices and making the naira worse. BDCs remain agitated saying that the CBN capital requirements are huge as they are merely buyers and sellers—not deposit-takers. Issue USD and Euro accounts with Fincra Create and manage USD & Euro accounts from anywhere. Fincra allows you to issue accounts to your users, partners & customers to collect payments without the stress of setting up and operating a local account. Get started today. Regulations South Africa has new rules for telecoms South Africa’s telecom regulator, Icasa, is flexing its muscle against mobile network giants in South Africa. New amendments in the Electronic Communications Act aim to tackle potential market dominance in the mobile retail space. What’s changing? Previously, market leaders MTN and Vodacom, who control the market with 31% and 41% respectively, had to disclose everything—retail prices, data revenue, tariffs—on their websites, and share confidential info with Icasa. Now, they only need to publish non-confidential reports publicly, while still sharing confidential details with Icasa quarterly. This move protects commercially sensitive information. For big players like MTN and Vodacom, while this move means less demanding public disclosures, it also means more scrutiny from Icasa on price differences. For smaller operators, it makes it more difficult to compete and negotiate fair deals if they don’t know what their competitors are offering. Not everyone’s happy. Cell C, a smaller player with 12% of the market share, wanted Icasa to maintain oversight over wholesale pricing for smaller operators (MVNOs) and access points (APNs).
Read MoreWhy Africa’s EdTech sector must focus on job creation
EdTech startups, fueled by venture funding, have emerged as powerful tools, offering innovative alternatives to traditional learning. These companies have harnessed digital platforms to make learning more accessible, offering hope for a brighter future in the African job market. At the Mastercard Foundation EdTech Conference in Abuja, a critical question dominated discussions: how can EdTech prepare students for jobs that may not even exist yet? This concern highlights the true measure of these initiatives’ success. According to the World Bank, Africa produces 10 million graduates annually from 668 universities, yet the continent’s economy can only employ three million graduates annually. Bridging this gap requires building stronger relationships between academia and industry, said Dr. Nkemdilim Iheanachor, an Academic Director at the Lagos Business School, during a panel session on Monday. “On our part, we tried to close the gap between classroom learning and industry requirements.” The true test of EdTech’s success lies in job creation, not access to education. Africa is projected to supply the world’s largest share of future workers by 2100. Upskilling future workers with in-demand and futuristic digital skills will close the digital divide and help Africans compete globally. “The unanswered question is EdTech for what?” asked Tochukwu Ezeukwu, Regional Director, African Venture Philanthropy Alliance (AVPA) on the sidelines of the event. “All of these conversations only end one way—how can Africans get or create jobs.” The future of work has long shifted to more in-demand jobs powered by technology, thanks to a coronavirus pandemic in 2020. This contributed to the 2021 EdTech funding surge of $81 million. A 2021 Workplace Learning Trends Report by Udemy revealed that industries have increased demand for data analysis and data science expertise. While remote learning and skills development in data analysis, AI, and automation showcase EdTech’s potential, further progress is essential. “We need tech skills to transform our continent,” said Hendrina Doroba, a division Manager for Education and Skills Development at the AfDB. “We must begin to assess our preparedness for the future.”
Read MoreThe true cost of convenience: Why you pay more when you order food online
A food delivery app’s pitch to a restaurant sounds like this: we’ll help you find new customers, expand your addressable market without the extra cost of building physical branches, and even throw in some free advertising. In return, we’ll take a percentage of the cost of each order as a commission. While the model is straightforward, the razor-thin margins of restaurant businesses mean the commissions eat into profits. It’s a delicate dance but restaurant owners are now familiar with the steps: pay the commission—which typically ranges from 10-30% per order—and reduce already meager profits or pass on all or part of the commission to customers who order online. “If I charge ₦6,000 for a plate of Abacha, I only get about ₦4,200,” said Kennedy Elobuike, a restaurant owner whose business is listed on Glovo and Chowdeck. Glovo and Chowdeck did not respond to a request for comments. “Giving away nearly one-third of the value of your food can have serious cost implications, and the potential impact has only increased with food inflation.” While Elobuike claims he doesn’t mark up his prices on the platforms, he doesn’t frown at the practice. These markups are a key part of the delivery process, even for big restaurant chains that negotiate lower commission fees—some restaurant chains pay as little as 10%—because of their size and scale. A pot of 8-piece chicken which costs ₦12,800 at a Chicken Republic outlet in Lagos is sold for ₦13,300 on one food app while a ‘maxi’ pot of chicken that’s available for ₦20,900 in-store is listed on another delivery app for ₦22,100. Since restaurant customers don’t want to pay prices that reflect how expensive deliveries are, these markups are a workaround for everyone in the value chain. It’s similar to retailers adding part of the delivery fee to the cost of the item so that customers aren’t discouraged by high service fees. However, this strategy has its critics. “I watched my orders from Jumia Food [dwindle] from over 100 to nothing in 2021 when Glovo came in offering free delivery and later ₦250 [half of what Jumia charged at the time],” said Olamide Olaleye, the founder of ChopNowNow, a restaurant that offered free delivery for five years before it paused operations. “Most of the users this strategy attracts are price sensitive and disloyal, Adjusting the subsidised prices to reflect the true cost of delivery will send many of them shopping where delivery is cheaper. Some restaurant owners stay off delivery apps despite the promise of more customers. “The cost of goat meat has gone so high that sometimes I sell on a ₦20,000 loss,” said one restaurant owner in Lagos who once considered onboarding on one of the delivery apps. “I still have to pay staff and pay rent from my sales. The commission is too expensive for me.” Yet it’s not all gloom. Startups like Mano that charge a flat fee of ₦1,400 have shown that there are customers who are open to paying true prices. “The convenience of delivery is worth it as long as the price difference between delivery and walking in is not excessive,” Pascal* who earns around ₦1 million ($600) monthly told TechCabal. “I think that the days of marking up to offset delivery costs are behind us,” said a ghost kitchen operator who no longer marks up prices. “People who use these platforms are the exact kind of customers we are looking for, and we know we can win them over [to our food delivery platforms] with quality food.” Ultimately, commission fees and restaurants’ margins are a universal concern. While some restaurants treat the commission as marketing costs, others prefer to pass it on to customers. Bolder delivery players will simply charge customers more and keep the clients happy. While it’s a balancing act for everyone in the value chain, the customer wants their food now or ten minutes ago when they placed the order on the app.
Read MoreBreaking: Ruto dissolves his cabinet with immediate effect
President William Ruto has dissolved his cabinet with immediate effect in what will be interpreted as a move to appease protesters who spent two weeks asking for an end to his administration. His plans to raise revenues through tax raises have suffered setbacks even as the Kenyan Revenue Authority missed its tax targets for 2023. “I have decided to dismiss with immediate effect all the cabinet secretaries and the Attorney General of the cabinet of Kenya, except the prime cabinet secretary and cabinet secretary for diaspora affairs. The office of the vice president is not affected in any way,” Ruto said in a televised address on Thursday. On Tuesday, the president reached out to opposition leader Raila Odinga to help quell the tensions that have gripped the country for a month. The current crisis started after the ruling Kenya Kwanza coalition failed to heed calls to reject the controversial 2024 Finance Bill, which was finally withdrawn on June 25 after demonstrators overran parliament. But what started as protests against new taxes on bread, cars, diapers, and sanitary towels, among other items, has now morphed into calls for Ruto to resign, with Kenyans accusing his government of corruption, extra-judicial killings, abductions, and incompetence. Following the withdrawal of the tax bill, Ruto has slashed the 2024/2025 budget by $1.3 billion. This represents almost half of the $2.7 billion extra revenue the Ruto administration had hoped to raise from the new taxes in the scrapped bill. *This is a developing story
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Exclusive: How a six-week freeze on customer onboarding slowed card demand for OPay and Moniepoint
In April, Nigeria’s central bank barred fintechs from onboarding new customers for six weeks. In that period, two of Nigeria’s biggest fintechs—Opay and Moniepoint—slowed card distribution because the demand for cards declined, according to ten point-of-sale agents who spoke to TechCabal. “A lot of people [opening] new accounts also want a card that just makes them feel that (they are) completely financially included,” said an OPay executive who asked not to be named. Since getting a card is a natural extension of the account opening process, a customer onboarding freeze led to a decline in card demand. Opay and Moniepoint responded by reducing the number of cards dispensed to agents—the agency banking sector’s backbone. OPay, which began offering cards in 2021, has distributed about 13 million cards, while Moniepoint has distributed around 4 million cards, one person with knowledge of Verve’s business, a card issuer for both fintechs, told TechCabal in June. Despite this initial explosion, card growth is slowing. It has allowed some fintechs to deprioritise cards, historically an excellent but loss-making customer acquisition strategy. “Moniepoint reduced the pack of cards to only five (from 30),” a card distributor told TechCabal. These distributors move cards across multiple local governments and fulfill requests from an online platform, although most of the demand is generated offline. Nigerian cloud provider hit with ransomware attack as government agency works to “swiftly resolve incident” While other fintechs customers apply for cards through apps, many OPay and Moniepoint customers use banking agents instead, making those agents mini bank branches. Although cards help customers pay online, adoption is slowing. Fintech customers feel comfortable moving around without their cards as transfer speeds improve and businesses increasingly accept bank transfers. “We expected it. We were very aggressive when we launched cards in 2021. Naturally, the pace at which it was growing two years ago is not the same now. It’s the law of diminishing returns,” said an OPay executive about the drop in card demand. A combination of the growing adoption of online transfers and cards reaching maturity as customer growth maintains a steady pace has played a significant part in the drop in card demand.
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TechCabal Daily – South Africa’s cybersecurity woes
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday The One Ring is no longer just fiction, it’s now closer reality. Yesterday, Samsung launched it’s newest wearable technology, the Samsung Ring. The Galaxy Ring tracks your health—sleep, heart rate, activity—and boasts a sleek design with a cool charging case. Plus, it integrates with Samsung phones for features like camera control and lost ring tracking, at least if you have a Galaxy phone. You can’t receive notifications on the ring, but at least it’ll let you know when you’re doing big back activities. At $400, it’s a pricey ring, but the lack of a subscription fee sweetens the deal. The bigger question is why we need to turn every accessory into wearable tech. First watches, and now rings. What’s next? And why? In today’s edition Local cloud service provider hit with ransomware attack Access Bank to raise $233 million $16.5 million has been stolen from South African taxpayers After Zambia, Huawei wants to launch a smart village in Uganda The World Wide Web3 Job openings Cybersecurity Local cloud service provider hit with ransomware attack Two weeks ago, Nigeria’s ID authority, the National Identity Management Commission confirmed five websites that were illegally selling the private information of Nigerians for as low as ₦190 ($0.12). In fact, one human rights group, as part of its investigation, reportedly purchased the NIN slip of digital economy minister Bosun Tijani for ₦100 ($0.064). At the time, an ethical hacker who spoke to TechCabal said, “It is either the NIMC is doing a poor job at data protection by using a cloud storage to store data or an insider is allowing individuals retrieve data.” While an investigation by Nigeria’s data protection agency fingered abuse of access as the cause of the NIMC breach, it still doesn’t mean cloud services in the country are safe, especially not with the latest news. The scoop: Nigeria’s cloud computing industry is under attack. Hackers wielding Phobos, a ransomware, have infiltrated at least one local provider, according to a government source with direct knowledge.The Nigerian Computer Emergency Response Team (ngCERT) is on high alert after detecting a surge in Phobos attacks targeting cloud service providers. The ransomware encrypts a victim’s data, essentially holding it hostage until a ransom is paid. Why it matters: This is a big blow to Nigeria’s burgeoning cloud sector. Local providers have been aggressively courting startups and government agencies as cheaper alternatives to tech giants like AWS and Azure—services each agency pays up to $500,000 for. Some providers have even lobbied for government contracts to store sensitive data. A wave of ransomware attacks could shatter trust and stall this critical industry. How they’re getting in: Hackers are using two main tactics: phishing emails and scans for vulnerable Remote Desktop Protocol (RDP) ports. ngCERT warns these attacks can lead to a domino effect – compromised systems, stolen data, hefty ransom demands, and potential financial losses. The outlook: ngCERT is actively working with affected organisations to mitigate the damage, but the full scope of the outbreak remains unclear. Read Moniepoint’s 2024 Informal Economy Report 90% of businesses in Nigeria’s informal economy earn less than N500,000 in monthly profit. Click here to explore the financial profile of Nigeria’s informal economy from Moniepoint’s latest report. Banking Access Bank to raise $233 million “When you are the largest bank in Nigeria and one of the largest banks in Africa, where do you go from here?” This is a question Aigboje Aig-Imoukhuede, Access Holdings Plc Chairman, asked in his presentation on Tuesday. And Aig-Imoukhuede isn’t wrong. The bank, with over 60 million customers across three continents, is giving other commercial banks a run for their money—and even swallowing some up in the process. The bank has acquired at least 5 banks since 2022 alone, including BancABC Botswana, and has majority shares the Standard Chartered subsidiaries in Angola, Cameroon, Gambia and Sierra Leone. More recently Access Bank acquired the National Bank of Kenya in a deal thought to be worth $100 million. Now, Access Bank wants respect! The bank is planning to raise ₦351 billion ($233 million) from existing shareholders to finance its goal of becoming “the world’s most respected African bank.” The company will offer existing shareholders 17.7 billion new shares at ₦19.75 each. Going global, but not forgetting home: Access isn’t abandoning its Nigerian roots. A chunk of the funds (₦223 billion) will be used to expand its loan portfolio across various business sectors within Nigeria. Access also plans to invest ₦68.62 billion ($37.6 million) in infrastructure, and ₦51.46 billion ($32.9 million) in distribution channels, including new branches in Lagos, Port Harcourt, and Abuja. Chasing the money trail: “We are chasing the money,” said Access Bank MD/CEO Roosevelt Ogbonna, emphasising their strategic approach to market selection. Their global expansion includes new markets like the US and a trade booking office in Malta. Ogbonna also took a jab at competitors, highlighting Access’ remarkable growth since 2002. “There is no Nigerian bank that was our size in 2002 that is still alive today,” he said. Can they pull it off? Only time will tell if Access can achieve its lofty goal of becoming a global African banking leader. But with this fresh capital and their proven track record, they’re definitely a force to be reckoned with. Issue USD and Euro accounts with Fincra Create and manage USD & Euro accounts from anywhere. Fincra allows you to issue accounts to your users, partners & customers to collect payments without the stress of setting up and operating a local account. Get started today. Cybercrime $16.5 million has been stolen from South African taxpayers In more news about cybersecurity, South Africa is facing more than its own fair share of attacks. Over the past decade, cybercriminals have siphoned a staggering R300 million ($16.5 million) from South Africa’s taxpayer coffers, according to newly appointed Democratic Alliance (DA) public works minister, Dean Macpherson. This revelation sheds light on a persistent and alarming vulnerability in
Read MoreTanzania’s Amsons offers $182.89m to acquire Kenya’s Bamburi Cement from Swiss firm
Tanzania’s Amsons Group, a family-owned conglomerate with interests across various sectors, has made a $182.89 million (KES23.59 billion) offer to buy a 100% stake in Kenya’s Bamburi Cement from Holcim, a Swiss multinational. The acquisition could see the local cement manufacturer delist from the Nairobi Securities Exchange (NSE). On Wednesday, the Tanzanian firm launched a take-over bid through its Kenyan subsidiary Amsons Industries (K) Ltd, offering shareholders $0.51 (KES65) per share. Amsons’ bid will offer the cement manufacturer’s shareholders a 44.44% premium on the share closing price on Wednesday. “The proposed investment will not only cement a Tanzanian company’s place as one of East Africa’s largest takeover deals but also promises substantial growth potential for Kenya through foreign direct investment,” Amsons said in a statement. Bamburi is the largest cement maker in Kenya, controlling about 30% market share. Edha Nahdi, Amsons managing director, said the acquisition is part of the company’s plans to expand into East Africa’s largest economy. “We have great plans to deepen our investment in Kenya and Bamburi. It is part of our market expansion plan and will mark the formal entry into the Kenyan market. We plan to invest in other industries in the coming months,” said Edha Nahdi, Amsons managing director. Founded in 2006, Tanzania’s Amsons has interests in cement, real estate, oil and gas, and wheat flour across Malawi, Zambia, Mozambique, Burundi, and the Democratic Republic of Congo. The company has an annual turnover of over $1 billion. In November 2023, Holcim sold its 65% stake in Mbeya Cement Company, a Tanzania subsidiary, to Amsons. The latest bid could signal the Swiss firm’s divesture from the East African market which it holds two investment arms, Kencem Holding Limited and Fincem Holding Limited. The acquisition bid comes four months after Bamburi Cement exited the Ugandan market by selling its stake in Hima Cement to Uganda’s Sarrai Group and Rwimi Holdings.
Read MoreDigital economy bill will unlock EdTech investment, Nigeria’s tech minister says
A proposed bill on National Digital Economy and e-Governance will drive EdTech investment in Nigeria, according to the country’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani. The proposed legislation passed its first reading in the National Assembly on Monday. The bill aims to improve digital literacy and skill development, a key enabler of EdTech adoption. It was sponsored by Adedeji Olajide, Chairman of the House Committee on Digital and Information Technology. The bill’s key provisions include maintaining a National Digital Skills Register, providing an enabling environment for exchanges of digital services, and digital and capacity-building initiatives for young Nigerians. “This bill is far superior to a mere policy,” Tijani said during the Mastercard Foundation EdTech Conference held in Abuja on Tuesday. “Its passage by the National Assembly will empower EdTech startups to design solutions with scalability in mind. I’ll be addressing a conference soon about the digital economy bill for Nigeria.” Half of Nigeria’s population lacks digital skills. The country has set an ambitious goal of attaining 95% digital literacy by 2030, with the support of the country’s tech regulator, the National Information Technology Development Agency (NITDA). If enacted, the Digital Economy Bill will join the list of landmark policies targeted at supporting Nigeria’s tech ecosystem. In October 2022, then-President Muhammadu Buhari signed the Nigeria Startup Act into law. In May 2023, Nigeria approved a National Blockchain Policy. The tech minister strongly believes in creating local laws to improve technological innovation in Nigeria. “Let’s move away from the approach that a startup is building solutions in a few schools, hoping it will scale. It does not scale because we are not engaging at the level that should make it scale.” He tasked ecosystem players to stop building in silos and put hands together to push more laws that can grow the sector.
Read MoreNigerian cloud provider hit with ransomware attack as government agency works to “swiftly resolve incident”
At least one local cloud service provider has been hit by a Phobos ransomware attack as ngCERT works to resolve the incident. Nigeria’s Computer Emergency Response Team (ngCERT) is “working with vulnerable and affected organizations to swiftly resolve incidents and prevent further escalation” after it detected an increase in ransomware attacks on local cloud service providers. According to ngCERT’s statement on Monday, there was a rise in the use of Phobos, a ransomware-as-a-service that hackers use to gain access to a company’s infrastructure and encrypt their information. Once that information is encrypted, the hackers then begin extorting the company. At least one Nigerian cloud provider has been hit with the Phobos ransomware, said one person at a government agency with direct knowledge of the matter, declining to name the company. Hackers took over the company’s infrastructure and encrypted their files, the same person said, declining to provide a timeline for the ransomware attack because he was not authorised to comment. Phobos attackers gain entry into vulnerable networks through phishing emails or using IP scanning tools to identify susceptible Remote Desktop Protocol (RDP) ports. When successful, such attacks lead to system compromise, ransom payment, data loss, financial losses, and fraudulent activity, ngCERT said. For Nigerian cloud providers, the increase in ransomware attacks is bad business. These companies have positioned themselves as cheaper and more reliable alternatives to AWS and Microsoft Azure as more startups consider reducing cloud costs. Some Nigerian cloud providers have also lobbied the government to become their preferred choice for hosting sensitive government data. *This is a developing story TLcom-backed Okra expands into cloud services
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