Safaricom accused of “business fraud” in dispute over $23.9m money market fund
Genghis Capital, a Kenyan investment bank, has accused Safaricom of “business fraud” over the launch of a competing money market fund, Ziidi, which the telco rolled out in November 2024. The dispute centres on Safaricom’s alleged decision to stall the rollout of Mali, a fund launched in partnership with Genghis in 2020, and instead register the rival Ziidi product, approved by Kenya’s Capital Markets Authority (CMA) on November 27. In a letter seen by TechCabal, Genghis Capital accused Safaricom of breaching an agreement, claiming the telco’s actions amounted to “business fraud.” The letter, dated December 3, 2024, asserts that Safaricom delayed the launch of Mali while working with other third parties to register Ziidi, violating the spirit of the 2019 partnership. Safaricom defended its actions in a December 6 response, citing technical issues with the Mali platform. “As you are aware, a larger fund with these challenges would not only expose Safaricom to reputational risks, but it could also potentially result in adverse regulatory and legal action for Safaricom and Genghis,” said an excerpt from Safaricom’s letter. In addition to the allegations of business fraud, Genghis also accused Safaricom of breaching privacy laws. The bank claims the telco has been migrating customers from Mali to Ziindi through the M-Pesa app without their consent, a breach of data protection regulations. In September 2024, the CMA ranked Mali as the seventeenth-largest collective investment scheme in Kenya, with assets totalling $23.9 million (KES3.1 billion). The fund generated $89,748 (KES11.6 million) in revenue for Safaricom in the first half of 2024. The dispute highlights the growing competition in Kenya’s wealth management and digital finance sectors as the telco seeks to expand its investment offerings through M-Pesa.
Read MoreTechstars-backed PBR Life Sciences raises $1 million pre-seed funding
PBR Life Sciences, a Techstars-backed healthcare data analytics company, has raised $1 million in pre-seed funding. The company will use part of the funds to invest in AI infrastructure and expand into Ghana and Kenya. The funding was raised from Launch Africa, Microtraction, Kaleo Ventures, Octerra Capital, Marula Square, XA Africa, ARM Labs, and Techstars. Founded in 2015 by Ayodeji Alaran, PBR pivoted into big data and analytics in 2021, providing multinational pharmacy groups like Sanofi with data and insights to make informed decisions—like product pricing, forecasting, and new product development—in the African markets they operate. These pharmaceutical companies often struggle with excessive production volumes due to a lack of understanding of actual market demand. PBR gathers anonymised data—drug quantity, prices, and how frequently they are purchased—from various pharmacies to enable pharmaceutical companies to better match production with actual market demand. PBR provides pharmaceutical companies, consulting firms, NGOs, and multilateral agencies with access to this data through pre-built AI-powered analytics dashboards. These dashboards allow users to see market shares, product consumption patterns, and other insights across Nigeria and Ghana. PBS also offers a generative AI feature where users can ask questions and automatically generate analytics. As traditional drug discovery methods shift towards AI, there is a risk of excluding patients from Africa due to a lack of local data from the continent. PBS is solving this problem by gathering and providing unique data points about people on the continent. The company plans to use AI for drug discovery by working closely with patients in clinical trials. PBS will also explore the use of blockchain for anonymization and randomization of healthcare data in the future and expand into 10 more African countries. “Being backed by some of the most reputable venture capital investors and angels in Africa not only inspires us as a team to do more but further validates the vital need to close the gap of inadequate real-world, healthcare big data that will power AI and innovation for the sector whilst unlocking global life sciences growth that will be powered by the region,” said Alaran. PBR, which was one of the twelve (12) startups in the second cohort of the ARM Labs Lagos Techstars Accelerator programme, serves companies like Sanofi, Emzor, Roche, International Finance Corporation, and Mercs. The company claims to have grown its revenue by 200% since 2023 but declined to share specific figures. PBS competes with companies like IQVIA and Sanisphere which offer similar services. PBR makes money through subscriptions, sale of independent reports, and consultation fees.
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👨🏿🚀TechCabal Daily – When will the exits cross the road?
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! We have come to the end of TC Daily for 2024! Thank you so much to all our readers who have stuck with us through all the ban puns and insightful articles. We’ll be taking the next two weeks to strategise. TC Daily will be back in your inboxes on January 6, but TechCabal will be publishing some insightful pieces to keep you going. To close out the year, we’ve got you a gift. Ecosystem thought-leaders Osarumen Osamuyi, publisher of The Subtext, and Derin Adebayo, publisher of Unevenly Distributed, have co-authored today’s edition. Let’s get started! When will the exits cross the road? Eskom records $3 billion in losses in 2024 Proparco invests $5 million in African climate tech Funding tracker World Wide Web 3 Jobs Next Wave When will the exits cross the road? by Osarumen Osamuyi and Derin Adebayo Four days ago, Tyme Bank announced its $250 million Series D round which valued the company at $1.5 billion. This comes just under two months after Moniepoint’s Series C, which also took the company to unicorn status. In November 2019, Interswitch became Africa’s first unicorn. This was six months after Jumia listed on the New York Stock Exchange. Since 2019, eight other African startups have hit a billion dollar valuation (add one or two more companies depending on how you feel about the provenance of companies like Go1 and Zipline). The exits have also accelerated, with companies such as Paystack, Sendwave, DPO, & Instadeep all getting acquired since 2019. Image Source: The Subtext However, while the continent has seen many billion dollar valuations and has seen some companies exit, it has not seen a single company hit a billion dollar valuation and then exit. African unicorns account for a combined $14.7 billion in valuation. In comparison, since 2010, all major exits (>$100 million) for African startups sum up to just $4 billion. We first addressed the lack of African exits in an essay titled The Chicken or The Exit? (2021). In the 11 years before that article (2010-2020), the ecosystem raised $7B in venture capital. At the time we argued that it was too early for a conversation about exits. In the three years since (2021-2023), the ecosystem raised more than $12 billion. A significant portion of that capital went to a handful of growth stage companies. Image Source: The Subtext Given the level of capital that has come into the continent, and the number of growth-stage companies that have emerged, it is difficult to argue that the ecosystem is still too early to face real questions about the lack of exits. With this in mind, we’ve revisited the question in a new essay titled “When Will The Exits Cross The Road?” The piece explores the journey of the African ecosystem since 2010. We place Africa within the context of other emerging markets while chronicling the continent’s first real venture cycle. We also explore the core tension that this cohort of African growth-stage companies must navigate if they are to achieve significant exits. Finally, the piece tries to explore how the past few years have set up the foundation for the next stage of the ecosystem’s growth. You can read it on The Subtext, and Unevenly Distributed. Osarumen Osamuyi is the founder of The Subtext, an Africa-focused tech analysis firm. Previously, he has studied/supported the ecosystem via roles at Meta, DFS Lab, and Ventures Platform. Derin Adebayo is a Manager at Endeavor. Through his newsletter, Unevenly Distributed, he explores the diffusion of technology, entrepreneurship, and venture capital in emerging markets. Read About Moniepoint’s Impact on Pharmacies Do you remember what you bought the last time you visited a pharmacy? Data from Moniepoint’s pharmacy case study reveals it was likely a painkiller. Click here to discover how Moniepoint is enabling access to healthcare through payments and funding for community pharmacies. Companies Eskom records $3 billion in losses in 2024 Image source: Eskom Eskom is having a rough time. The South African power company which was last profitable in 2017 recorded a R55 billion ($3 billion) loss in its 2024 fiscal year. The loss was 2x its 2023 loss of R26.1 billion ($1.4 billion). The steep loss was expected following widespread power outages stemming from failures at inadequately maintained generating facilities. The power facility recorded 329 days of scheduled power outages or load-shedding during the fiscal year. Those power outages caused the company to lose R22 billion ($1.14 billion) in revenue. The company has now improved power supply, with no scheduled load shedding scheduled since Q2. The company has also lowered its diesel spend by R11.9 billion ($643 billion) according to a presentation on the company’s website. A significant portion of Eskom’s 2024 losses also stemmed from a R36.6 billion ($1.9 billion) impact after the unbundling of its transmission business. Eskom chief executive officer Dan Marokane believes that the power company can return to profitability in the 2025 financial year due to a reduction in diesel usage and a drop in power cuts. The company projected an after-tax profit of more than R10 billion ($548 million) for its 2025 fiscal year. Lower debt and debt service costs will also contribute to the improved profit outlook, in addition to a 12.7% tariff hike. The company’s liquidity has significantly improved, primarily due to a government bailout of R76 billion, which covered much of its debt servicing obligations. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Investment Proparco invests $5 million in Equator Africa Fund Image source: Zikoko MemesThis year venture capital firms have been expending a lot of effort into saving the planet by investing in climate solutions. A recent report
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New SASSA jobs in South Africa for 2025
The South African Social Security Agency (SASSA) has announced an exciting external vacancy in its Western Cape region. This is an opportunity for qualified individuals searching for jobs in South Africa ahead of 2025, and with a desire to join the SA public service. Job details Position: Practitioner: Disability Management Unit Location: Regional Office, Cape Town Salary: R376,413 – R443,403 per annum (exclusive of benefits) Reference Number: SAS/PRAC/DMU/DEC2024 Closing Date: 20 December 2024 Minimum requirements To be considered for this role, applicants must meet the following: A three-year tertiary qualification (NQF Level 6) recognised by SAQA in a relevant field. 2–3 years’ experience in the field. Computer literacy. Added advantage: A valid driver’s licence. Customer service experience. Key responsibilities The successful candidate will handle a range of responsibilities in the Disability Management Unit, including: Coordinating medical appeals and assessments in the region. Managing communication between stakeholders and local offices. Monitoring compliance with Social Grants Disability Management standards. Assisting with statistical reporting and the management of disability-related projects. Ensuring adherence to relevant legislation, including the Public Finance Management Act (PFMA). Application process for this SASSA job in South Africa for 2025 Here’s how to apply for this particular one of the SASSA jobs in South Africa for 2025: Email applications only:Submit your CV and completed Z83 form via email to lnksapplications@sassa.gov.za. Include the Reference Number and Position Title in the subject line. Document submission: Applications must include a single attachment combining the CV, qualifications, ID, and driver’s licence (if applicable). No separate or hand-delivered applications will be accepted. Compliance:Failure to adhere to the guidelines will result in disqualification. Key notes Only shortlisted candidates will be contacted within three months of the closing date. SASSA is committed to Employment Equity and encourages persons with disabilities to apply. Why apply for SASSA jobs in South Africa for 2025? This role offers a platform to contribute meaningfully to social development while working in a dynamic organisation. For queries, contact John Links at 021 – 469 0268.
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January SASSA payment 2025: Dates and key details
The South African Social Security Agency (SASSA) has officially announced the dates for the January SASSA payment 2025. Beneficiaries of various grants are advised to take note of the payment schedule and plan accordingly. Below is a breakdown of the key dates and important information regarding the disbursement process. Payment dates for January 2025 Older Person’s Grants – Friday, 3 January 2025 The first disbursement for the January SASSA payment 2025 begins with the Older Person’s grants. This category includes all senior citizens receiving pensions as well as any supplementary grants linked to these accounts. The allocation is specifically scheduled to prioritise the elderly, ensuring they receive financial support early in the month. Recipients are encouraged to avoid overcrowding at pay points as funds will remain in their accounts until withdrawn. Disability Grants – Monday, 6 January 2025 Disability grants are scheduled for payment starting Monday, 6 January 2025. These grants are critical for individuals living with disabilities who rely on this financial assistance for healthcare, living expenses, and other needs. Beneficiaries linked to disability grants, such as caregivers, will also receive their payments from this date. SASSA urges recipients to use ATMs or retail stores to access their funds conveniently. Children’s Grants – Tuesday, 7 January 2025 The final category in the January SASSA payment 2025 schedule covers children’s grants. Payments will begin on Tuesday, 7 January 2025, ensuring that parents and guardians receive financial support for the care and well-being of children. This grant plays a vital role in assisting families with education, nutrition, and other essentials. As always, beneficiaries are reminded to plan withdrawals wisely and avoid unnecessary rushes. General Reminder SASSA reiterates that there is no urgency to withdraw funds on the first day of payment. Once deposited, the money remains safe and accessible in the account until it is needed. This policy reduces overcrowding at pay points and ensures a smoother process for all recipients. By adhering to this structured schedule, the January SASSA payment 2025 aims to deliver timely and efficient support to all beneficiaries, reinforcing its commitment to social welfare in South Africa. Accessibility and Support For further assistance or queries regarding the January SASSA payment 2025, beneficiaries can contact SASSA’s toll-free line at 0800 60 10 11. Additionally, up-to-date information can be accessed through the SASSA website (www.sassa.gov.za) or their official social media channels or verified media outlets like TechCabal.
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Entering Tech Wrapped
Here are the ET editions you couldn’t get enough of. 19 || December || 2024 View in Browser Brought to you by Issue #81 Entering TechWrapped! Share this newsletter Happy Holidays ET people Welcome to the last edition of #EnteringTech for 2024! It’s been a year of telling important stories about tech talents and sharing tips to help you grow in your careers. Thank you for sticking with us all through the year. This year, we went all in, providing you with the best stories of tech talents doing important work and pulling their weight across the continents. We committed to improving our newsletter product and telling stories that matter. We have told success stories of people who have had not-so-normal transitions into tech careers like Eunice who went from Nursing into software development, or Olakune transitioned from DJ-ing into tech. All these brilliant people have inspired others to see a path in tech. This year we published 28 new episodes of Entering Tech and you rewarded us with reads on each of those stories. 21 out of our 28 stories had over ten thousand views. As we round up for the year and look forward to telling even better stories in 2025, here are some of the stories you couldn’t get enough of. Faith Omoniyi, Emmanuel Nwosu & Timi Odueso Entering Tech Wrapped 1. Rerun: From interns to influencers (37,135 views) Who doesn’t love a success story? From sorting out the boss’s personal errands to commanding followers. This edition chronicles the unlikely rise of interns who somehow turned their 9-to-5 grind into success stories. Whether you’re a student aiming to gain practical skills or a career changer exploring new avenues, this edition offers insights, guidance, and a deeper understanding of the transformative power of internships. Read it here. 2. How to become a data engineer (19,333 views) We know data engineers are neck-deep in technical skills and don’t get a lot of spotlight, but what we didn’t know was that many of you were very much interested in data engineering. This edition was the third and last edition of our series on entering tech as a data professional, and we spoke to data engineers about the skills needed—it’s not just the technical skills we promise. Check it out here. 3. Data science isn’t for everyone (18,830 views) We warned you! But you, our curious readers, couldn’t resist finding out for yourselves. Maybe you discovered a hidden passion for data wrangling, or maybe you just enjoy a good challenge. In this edition, we explored why Harvard Business Review calls Data science ”the sexiest job of the 21st Century”. Read it here if you haven’t. 4. How to become a data professional (16,719 views) We know you guys love the data profession, but this much? This episode was the first of our series on how to break into tech (and AI) as a data talent. Mariam Adeoti and Adekoya Teleola shared tips on becoming a data analyst. Don’t miss out, read it here. 5. Who’s to blame for “oga-driven” development? (16,688 views) Ah, the age-old debate! This controversial piece clearly sparked discussions on Twitter (and maybe a few office arguments). You, our readers, love a good controversy, and this one certainly delivered. We’re just glad we weren’t the ones caught in the crossfire. Whether you agree or not that “Oga-driven development” is a product manager’s fault, we are not here to judge you. In this edition, we spoke to four product managers—Temi Giwa, a product lead at Paystack, Karen Ginigeme, an experienced product manager in the UK, Elizabeth Ajao, an award-winning product manager and Chioma Nwandiko, a PM at Big Cabal Media—to share their thoughts. Check it out! 6. How Maryann Onuoha is driving growth with tech events (14,989 views) We are glad Maryann’s story of driving growth through tech events resonated with you. Now we know that you’re not just in tech for the money, but also for community and impact. Read Maryann’s story 7. From nursing to software development (14,989 views) This is one of our favorite stories for entering tech this year and we are glad it resonated with you. Eunice’s story is one of career reinvention and a reminder that it’s never too late to pursue a career in tech, no matter your background. Learn from Eunice. 8. How Donald Yotay went from music to design (14,230 views) Turns out all those years Donald spent meticulously arranging his record collection weren’t just about aesthetics. He secretly channelled his inner artist into a thriving design career. Who knew a passion for music could lead to a career in design? Here’s Donald’s story. 9. Career lessons from Tyrion Lannister (11,124 views) Who would have thought it possible to learn career lessons from Tyrion Lannister, the master of political intrigue and questionable life choices? We did and you loved it. In it, we shared how Tyrion’s soft skills made him stand out in the GOT series and how you can apply it to your Career. If you missed out on this episode, you should go back to read it—you‘ll complete it faster than a GOT episode, we promise. Check it out. 10. Seven techies talk about leaving home (10,877 views) Leaving your comfort zone and venturing into the world to find your feet is no easy feat. (pun intended). It’s hard, we know, the seven techies we spoke to for this edition have first-hand knowledge as well. In this edition, they shared tips on how they navigated leaving their comfort zone—plus overbearing parents—and how they are currently finding life. Follow their journey here. We hope you enjoyed our recap. As always, we are looking forward to telling important stories to help you level up your tech career. Leave us a Christmas gift by telling us how we can improve the newsletter or what stories you are looking forward to reading. And if you think your story can inspire our audience, kindly share it with us by responding to this
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👨🏿🚀TechCabal Daily – M-PESA is not backing down
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday! There’s one goal you can still [help us] hit before the year runs out. Move TC Daily to your Primary mailbox so you don’t miss any important updates! Let’s dive right in. Cash is King but M-PESA is not backing down MTN Group announces major leadership changes Nigerian POS operators raise withdrawal fees Dutch data watchdog fines Netflix $4.98 million World Wide Web 3 Jobs Mobile Money Cash is King but M-PESA is not backing down Image Source: M-Pesa With the advent of cards, mobile bank services and contactless payments, many economies all over the world have moved to a cashless policy. However, in Kenya like many other countries, cash is king. This is because excise duty on money transfers was increased to boost Kenyan’s revenue. Additionally, mobile transactions are seeing increased scrutiny from authorities like the Kenyan Revenue Authority (KRA). Traders have now resumed operating with cash fearing compulsion to pay higher charges. Given that money transfers are the preferred payment method in Kenya, the high charges are causing a behavioural shift back to a cash-flow economy. This shift could be bad for businesses like Safaricom’s M-PESA and Airtel money. Notably, the combined transaction value of Safaricom and Airtel Money from January to October 2024 closely matched the total value of POS and ATM withdrawal transactions, which amounted to $355.8 million during the same period. M-PESA has been quite successful as it led its parent company to its first growth in three years. While it faces fierce competition from Airtel Money, M-PESA now has to also deal with behavioural shifts from users. Read TechCabal’s article to see how M-PESA is faring during these times. Read About Moniepoint’s Impact on Pharmacies Do you remember what you bought the last time you visited a pharmacy? Data from Moniepoint’s pharmacy case study reveals it was likely a painkiller. Click here to discover how Moniepoint is enabling access to healthcare through payments and funding for community pharmacies. Telco MTN Group announces major leadership changes L -R: Frederic Schepens, Mazen Mroue It’s planning season and as you plan for the new year, MTN is too! The telco took a beating in the first half of the year, reporting a loss after tax of ₦519 billion ($333 million) for the first half of 2024 due to FX volatility. The telco hopes to come back in the new year with new leadership changes. Yesterday, it announced the departure of Frédéric Schepens, CEO of Bayobab, its infrastructure business, along with other departures. Following over seven years of service at MTN, Schepens will be succeeded by Mazen Mroue, the company’s Chief Technology and Information Officer (CTIO). In this expanded role, Mroue will concurrently lead MTN Group’s infrastructure business alongside his CTIO responsibilities. Mroue will lead Bayobab’s fibre and mobility divisions while spearheading the company’s data centre strategy. MTN also announced major leadership changes across its subsidiaries in Cameroon and Côte d’Ivoire. Wanda Matandela, who currently serves as Chief Commercial Operations Officer at MTN South Africa, will become the new CEO of MTN Cameroon on March 1, 2025. Mitwa Ng’ambi, the CEO of MTN Cameroon, will move to MTN Côte d’Ivoire on March 1, 2025. Ng’ambi, formerly the CEO of MTN Rwanda, will drive the next phase of growth in the country. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Regulation POS agents will raise withdrawal fees in response to CBN’s new rules Image source: TechCabalWhat happens when a business’ profits are under pressure by a government policy? The customers ultimately pay the price. This best describes the reaction of POS operators to a new policy by the Central Bank of Nigeria (CBN). In recent months, these operators have become a crucial source of cash as Nigeria grapples with a prolonged cash scarcity that has left people struggling to get cash at banks and ATMs. While POS agents are experiencing increased patronage, they are also facing scrutiny from regulators over concerns that their operations may be contributing to Nigeria’s continued reliance on cash. On Tuesday, the CBN set a daily limit of ₦1.2 million ($771) per POS agent and capped withdrawals at ₦100,000 ($64) per customer. While the directive is aimed at regulating the agent banking business and curbing fraud, it comes with a darker side for POS operators who fear the new limits will significantly impact their earnings. Limited cash disbursement means lower patronage for these businesses. To stay afloat, POS operators will pass on the cost to the customers by increasing their withdrawal fees. One POS agent in Lagos told TechCabal that he would charge ₦6,000 ($4) or more for a withdrawal of ₦100,000, up from the previous ₦4,000 ($3) fee. Beyond raising fees, other operators believe they can adapt and innovate around the new rules. One such way is by securing more terminals to spread the demand. Ultimately this points to one thing: while POS operators remain a critical part of Nigeria’s financial inclusion drive, they won’t be spared from the regulator’s increased scrutiny. Introducing Paystack transfers in Kenya Paystack merchants in Kenya can now send single and bulk transfers to any Kenyan bank or MPESA account (including customer wallets, Paybills, and Tills) Learn more → Big Tech Dutch data watchdog fines Netflix $4.98 million Image source: Towards Data ScienceWhile rumours of Netflix leaving Nigeria just subsided, the video streaming platform is now faced with a fine from the Dutch Government. The Dutch Data Protection Authority (DPA) fined Netflix €4.75 million ($4.98 million) on December 18 for not adequately informing customers about its use of their data between 2018 and 2020. “Customers did not receive sufficient information when they asked Netflix which data
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The most popular payment methods in Kenya 2024: Cash is king but M-Pesa remains huge
In 2024, rising transaction charges and increased scrutiny by government authorities, including the Kenya Revenue Authority (KRA), prompted more merchants to shift to cash. According to Financial Sector Deepening Kenya, cash accounts for 80% of daily transactions in Kenya. Small shop operators told TechCabal that they were now accepting cash over fears that KRA could use mobile money transactions to compel them to pay more taxes. Is M-Pesa’s grip on mobile payments loosening? Could M-Pesa dominance in Kenya’s payments ecosystem face disruption? The answer depends on whom you ask. However, data from the Communications Authority of Kenya (CA) and the Central Bank of Kenya (CBK) show that the telco’s iron grip on payments remains unshaken for now. While rivals such as Airtel Money, commercial banks, and payments startups, are intensifying their efforts to disrupt M-Pesa’s reign, Safaricom’s position remains formidable. Those competitors are heavily investing in infrastructure, marketing, and innovative products to capture a larger share of the mobile payments market. One of the most significant challengers to M-Pesa’s market dominance is Pesalink, a platform that allows real-time transfers to 39 commercial banks. Pesalink offers an attractive alternative for consumers seeking to conduct small cash transactions without relying on M-Pesa. Additionally, with lower transaction fees and enhanced mobile money interoperability in 2024, Airtel Money has also been gaining ground. Airtel Money’s market share grew from 2.8% to 6.6% in the 12 months to June 2024. It’s a notable shift in the mobile payments landscape, signaling a softening of M-Pesa’s once-absolute dominance, which still commands 93.4% of the market. Mobile money In total, Safaricom and Airtel processed over 25 billion transactions with an estimated value surpassing $309.4 billion (KES40 trillion) between January and October 2024. M-Pesa and Airtel Money remain the payment platforms of choice, especially for Kenya’s unbanked population. These platforms have become indispensable, especially for cash transfers in rural areas. Neighbourhood shops and small businesses are increasingly using both platforms for accepting payments, handling supplier transactions and paying utility bills for services like water and electricity. Daily transaction limits of up to $3868 (KES500,000), make M-Pesa and Airtel Money ideal for small-to-medium sized transactions. Cheques and RTGS While mobile money is dominant, traditional methods like cheques and the Real-Time Gross Payment System (RTGS) still play a crucial role in large transactions. From January to October 2024, cheques valued at $15.4 billion (KES2 trillion) were cleared, while RTGS transactions accounted for $21.6 billion (KES2.8 trillion). However, the use of cheques is on the decline. In June 2024, the value of cheques dropped 15.1%, almost matching the Covid-19 period when businesses remained closed following anti-government protests. Card transactions: Slowing growth in a mobile-centric economy The growth of card payments in Kenya has been sluggish. In the 10 months leading to October 2024, total card transactions—including POS payments and ATM withdrawals—amounted to $355.8 million (KES 46 billion). While this figure is substantial, it lags behind mobile money, reflecting Kenya’s strong preference for mobile wallets. Debit cards remain the most popular cards in the country while credit card penetration stands at 5.6%.
Read MorePOS agents will raise fees in response to CBN’s rules on withdrawal limits
Following Tuesday’s Central Bank directive limiting cash disbursement, Point of Sale (POS) banking agents across Lagos are exploring ways to cope with the changes—mainly, by raising withdrawal fees. On Tuesday, the CBN set a daily limit of ₦1.2 million per POS agent and capped withdrawals at ₦100,000 per customer. This is the latest attempt to rein in POS agents, who have become a crucial source of cash since a CBN-engineered cash scarcity in 2023. The new rules threaten to upend the agent banking business model. “The decision took us by surprise,” says Semiu Ajayi, a POS agent in Gbagada, Lagos. “I’ll just increase my withdrawal charges. It used to be ₦4,000 for a ₦100,000 withdrawal but now I’ll charge ₦6,000 or more.” Ajayi’s response suggests POS operators will pass on the cost of reduced business to customers. POS agents across Nigeria face similar challenges. Crucial players in Nigeria’s financial inclusion drive, POS agents have seen increased patronage as Nigerians struggled to access cash from traditional banking channels such as ATMs and over-the-counter services. The surge in demand for cash via these agents is linked to a failed currency redesign in 2023 which triggered a prolonged shortage of physical cash. POS agents, who often source cash from informal channels like supermarkets and fuel stations, have become essential intermediaries in the cash distribution process. However, critics accuse the agents of charging high fees while others claim agents foster a reliance on cash, undermining the CBN’s goal of a cashless economy. The CBN’s new directives—which will put 2 million agents under pressure—appear geared at limiting the influence of these agents. While the CBN’s supporters will argue that the new policy will curb fraud and promote a cashless economy, many agents believe it will slow down customer patronage. .“How will we survive with this new CBN policy?,” asks Shade Raheem, a POS agent in Ikeja. “They just want to push customers to the banks.” Many POS operators believe they can adapt and innovate around the new rules. “We plan to acquire more terminals to manage the increased demand, says Tade Oluwanisola, a POS agent in Ikorodu. “Not every customer will withdraw up to their limits daily, so we will spread the demand across multiple terminals.” The CBN claims the new withdrawal limits will address challenges, including fraud prevention, uniform operational standards, and regulation of the agency banking sector.” The growing reliance on POS agents has sparked calls for stricter oversight, prompting a mandate for POS operators to register with the Corporate Affairs Commission (CAC) by September 2024. “The CBN will conduct oversight of the aforementioned actions, including impromptu backend checks, to ensure compliance,” the regulator stated in its December 17 circular. “Any breach of these directives will attract appropriate penalties, including monetary fines and administrative sanctions.”
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👨🏿🚀TechCabal Daily – Congo sues Apple
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! As we wind down the year, let’s take a moment to celebrate a decade of our parent company Big Cabal Media! For 10 years, we’ve been telling stories that matter, pushing boundaries with innovative content, and making a real impact on the tech, culture, and business landscapes. This journey has been shaped by incredible people, unforgettable moments, and a unique magic that truly makes BCM the culture. Catch a glimpse of these moments here. DRC files criminal complaints against Apple Host Africa to acquire GO54 Zoho to invest $30 million in Zambia Tyme Bank becomes Africa’s latest unicorn World Wide Web 3 Jobs Big Tech DRC files criminal complaints against Apple Source: DNL Legal and Style While many marvel at the latest iPhone, the reality for some children in the Democratic Republic of Congo (DRC) is starkly different. They toil in dangerous mines, extracting the minerals—tin, tantalum, and tungsten—that power those devices. The DRC’s rich deposits of these crucial metals, used in computers and mobile phones, have unfortunately made the region vulnerable to unregulated small-scale mining, often with devastating consequences for local communities. Over the past two years, individuals have lobbied for peace by calling for the “cancellation” of companies involved in unethical mining in the DRC. Earlier this year, human rights firm International Advocates sued tech giants Apple, Google, and Dell for allegedly profiting from child labour in their supply chains. Now, the Congolese government is demanding justice, filing criminal complaints against Apple for its alleged role in this exploitation. The government has filed criminal complaints against Apple and its subsidiaries in France and Belgium, accusing the tech giant of using conflict minerals in its supply chain. In the legal action filed on Monday, the DRC accused Apple’s French and Belgian subsidiaries of covering up war crimes, money laundering, handling stolen goods, and misleading consumers about the ethical sourcing of its products These mines are operated by armed groups who keep the mines running through child labour. Buying from them means fueling the cycle of 40,000 children working in mines and pushing more children into similar conditions. It will also mean funding conflicts against the Congo government and revenue loss for the country. In March 2024, the UN reported that the number of internally displaced people in DRC had reached 7.2 million with more than 80% of displacements caused by armed attacks and clashes, all related to illegal mining. While Apple maintains it is committed to ethical sourcing, pointing to its annual conflict minerals report and supplier audits, the filed complaints negate the iPhone maker’s stance. Congo’s legal team alleges that Apple benefits from minerals extracted through illegal mining operations in the country and then launder them through complex global supply chains, making the tech giant complicit in human rights abuses. How does this implicate Apple? Companies like Apple are required under international laws to conduct due diligence. To be clear of these charges, Apple will need to prove the origins of its minerals. Additionally, it must prove it doesn’t purchase minerals that have been illegally extracted in Congo and subsequently laundered through legal supply chains. Read About Moniepoint’s Impact on Pharmacies Do you remember what you bought the last time you visited a pharmacy? Data from Moniepoint’s pharmacy case study reveals it was likely a painkiller. Click here to discover how Moniepoint is enabling access to healthcare through payments and funding for community pharmacies. M&As South African Host Africa to acquire GO54 GIF Source: Tenor In March 2024, WhoGoHost, a Nigerian web hosting company that provides domain solutions, rebranded as GO54 in an attempt to expand across the continent. Before the rebrand, GO54, in September 2024, acquired SendChamp to deepen its business offering to customers. Yesterday, in a surprising turn of events, Nairametrics reported that South Africa-based digital infrastructure company, Host Africa, is set to acquire GO54, placing a dent on the company’s plan for continental expansion. Acquiring GO54 which has built relevance in Nigeria as the go-to domain registrar will enable Host Africa to gain entry into the Nigerian market. This isn’t Host Africa’s first rodeo into the Nigerian market. The South African country acquired two Nigerian hosting companies Naijawebhost and DomainKing, one of the largest Nigerian shared web hosting companies in 2021 and 2024 respectively. Host Africa has also been on a journey towards continental denomination. The company has snapped up acquisitions across East Africa including Kenyan hosting company Sasahost. While GO54’s acquisition is still subject to regulatory approval, the company’s consistent revenue growth, diversified customer base, and expanding product portfolio make it a good buy for Host Africa, which is seeking more expansion across the continent. When the acquisition is completed, GO54 offers the South African company predictable cash flows and sustainable growth potential. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Investments Zoho to invest $30 million in Zambia Image source: IT News AfricaA TechCabal article in 2023 predicted that Zambia might be the next tech hub given its high internet penetration and the entry of various tech startups into the country. Zambia has been making strides to live up to these expectations with growing investments in technology infrastructure. One such development is Indian tech giant Zoho Corp. which has partnered with Zambian firm, Loita Business, to invest $30 million in Zambia. Zoho, a cloud software provider with 29 years of experience, has been operating in Zambia for over four years. Now, with this significant investment, the company aims to solidify its presence in the Zambian market and ultimately establish itself as a dominant player across the African continent. The investment programme is set to be launched during the inaugural Zambia
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