TechCabal Daily – Flip the crypto coin
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Calling all AI enthusiasts! Join the TechCabal X Zindi audio classification challenge. Join us in building an audio classification model for the Ewe language and stand a chance to win $500. You’ll be competing for a top prize, and contributing to the preservation of an important African language. Sign-up now. Nigerian banks are still wary of crypto Binance calls for Gambaryan’s release Fuel price hike in Nigeria affects gig drivers The World Wide Web3 Opportunities Crypto Is Crypto welcome in Nigeria? Image source: Pymnts Persona non grata is a Latin phrase that translates to “unwelcome person” and is used to describe someone who is officially declared undesirable or unwelcome by a government. This dictum may explain the Nigerian government’s stance on crypto. Crypto regulation in Nigeria has been a rollercoaster. After lifting a two-year crypto ban in December, the government had a change of heart. In the following months, it showed signs that it still frowned against digital assets. The government blocked the websites of crypto exchanges and warned against P2P trades. Executives of Binance who had come into the country to resolve the blocked access were arrested, with one executive still in detention. Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC) also froze 1,000 bank accounts linked to crypto trade. If you’ve followed till now, you’ll get a sense that crypto may not be fully welcomed in the country. And while the SEC may have issued its first crypto licences to Quidax and Busha, banks and fintechs across the country are playing it safe. While the Nigerian SEC has released new guardrails for crypto transactions in the country, banks claim that they are unclear and difficult to follow. While the newly licensed entities are optimistic about a good rapport with banks and fintech, the banks have made their point clear that they’ll only engage when they receive instructions from the CBN. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy. Crypto Binance calls for Gambaryan’s release Tigran Gambaryan Since Nigeria started scapegoating crypto company Binance in February over claims that it allowed currency traders to manipulate FX rates, not much has changed. On September 3, the naira continued a week-long slide, settling at ₦1,590/$1. While the Central Bank’s search for stable pricing remains elusive, the case against Tigran Gambaryan, the Binance compliance executive arrested in February 2024 has continued. On Monday, a video of Gambaryan being denied the use of a wheelchair by prison officials went viral. His family has repeatedly asked for his release on health grounds. On Tuesday, Binance also asked the Nigerian government to release Gambaryan. Its CEO Richard Teng posted on X that Gambaryan’s treatment is “inhumane”, and that he must be allowed to go home to his family. US lawmakers have since petitioned President Joe Biden to secure his release. However, Nigeria is not budging in its stance that Gambaryan and his employer are allegedly complicit in laundering money. To this day, Nigeria has yet to show how it will hold any water to this claim, as it never tracked or regulated crypto transactions. Moreover, in 2021 when Nigerian banks were freezing crypto-related accounts, Binance’s peer-to-peer (P2P) platform allowed crypto trading to continue under the radar, drawing Nigeria’s ire. Again, this is not Binance’s first money laundering case; the US Department of Justice sued the company for $4.3 billion on similar charges in 2023. Nigeria is likely sensing an opportunity here. If this messy affair plays out longer, all indications point toward Binance eventually settling. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Economy Fuel price hike in Nigeria affects gig drivers Image source: Nairametrics Shortly after the Nigeria National Petroleum Company Limited (NNPC) opened up about its “financial strain” and debts owed to petrol suppliers, Nigerians braced themselves for the inevitable. Since the subsidy removal in 2023 by President Bola Tinubu, citizens still managed to buy fuel cheaply at NNPC stations. Compared to private filling stations that sold higher to gain profits, the government-owned NNPC sold fuel at ₦610 ($0.38) per litre—shielding Nigerians from the landing cost of ₦1,200 ($0.75) per litre in imports. However, on September 3, after succumbing to its financial reality, NNPC increased the price of fuel by more than 40%. Some of its stations sold fuel yesterday at ₦897 ($0.56) per litre. Worse, other parts of the country sold higher at ₦910 ($0.57). While the long queues Nigerians have been witnessing these past three weeks will likely continue, fuel-dependent businesses like gig drivers will be feeling the heat. When we spoke to a Bolt driver in Owerri, he expressed frustration yesterday. “When I got to NNPC to buy fuel this morning, they were adjusting the pump price to ₦885 ($0.56) per litre. It was shocking. There was a queue so I was unable to buy fuel after waiting for 5 hours. I left and went to another [private] filling station, and bought fuel at ₦995 ($0.63) per litre.” With increased fuel prices, gig drivers will spend more money fuelling their cars. Yet, low fares and high commissions could eat into their daily earnings. They’ve been lobbying ride-hailing apps like Uber and Bolt via protests to increase base fares and reduce commission from the average 25% to 5%. But these apps have been understandably hesitant. Commissions make up about 50% of Uber’s earnings. An 80% reduction could see these companies lose one-tenth of their revenue. While Uber says it has been “constantly monitoring” the local dynamics to understand the impact on the marketplace,
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Check 2024 TASUED PostUTME results and admission aggregate
Tai Solarin University of Education (TASUED) has just released the results for the 2024 PostUTME screening exercise. If you have participated in this year’s screening, it is essential to promptly check your scores to gauge your admission prospects. Steps to check your TASUED 2024 Post-UTME result To check your TASUED 2024 PostUTME results, follow the steps below: Visit the official website: Go to the TASUED official website at www.tasued.edu.ng. Login to your profile: Click on the ‘Post-UTME Result’ link. Enter your 2024 JAMB registration number and password in the provided fields. Click on ‘Login’ to access your profile. Access your results: Once logged in, navigate to the ‘Results’ tab. Your Post-UTME score should be displayed on this page. Review your scores carefully and print a copy for your records. Important points to note on 2024 TASUED PostUTME results Score interpretation: A higher Post-UTME score increases your chances of being admitted into your preferred course. Ensure you understand the cut-off marks for your chosen programme. Result inquiries: If you have issues accessing your results or notice discrepancies, contact the TASUED admission office immediately for assistance. Next steps: Depending on your score, start preparing for the next phase of the admission process or consider other options if necessary. Final thoughts on TASUED 2024 admission process Checking your Tai Solarin Post-UTME scores is a crucial step in your academic journey. Follow the above steps carefully to ensure you have all the necessary information to move forward. Be mindful of the critical deadlines related to the TASUED 2024 admission process. Following the release of the Post-UTME results, ensure that you adhere to the submission dates for any required documents and the confirmation of your intent to enrol. Keep track of the deadline for submitting any additional paperwork or completing further steps in the admission process. Staying organised and meeting these deadlines will be crucial in securing your place at Tai Solarin University of Education. C
Read MoreBinance urges Nigeria to end “unjust detention” of company executive after viral video
Binance has again asked Nigerian authorities to release Tigran Gambaryan, a company executive detained since February 2024. On Monday, a video of the US citizen being denied use of a wheelchair by prison officials went viral. The visibly distressed executive was shown expressing frustration over his treatment. “We are extremely distressed by the video of Tigran in court yesterday. This video is just a snapshot of Tigran’s current reality. His health is rapidly declining and we are deeply concerned about the long-term consequences of this unjust detention,” a Binance spokesperson said in a statement on Tuesday. “Nigeria does not need to keep Tigran in order for us to settle any alleged past issues. We continue to implore the Government of Nigeria to let Tigran return home and let us continue in our engagements.” Gambrayan, a US citizen who is remanded in Kuje prison, faces money laundering charges filed by the Economic and Financial Crimes Commission (EFCC) alongside Binance, which the company denies. His lawyers filed a new bail application citing his deteriorating health condition. But the EFCC counsel opposed the application based his medical records. The court will rule on the bail application on September 4. The detention of Gambaryan and his escaped colleague Najeem Arjawalla was part of the Nigerian government’s crackdown on cryptocurrency despite the Central Bank lifting a three-year ban on crypto-related banking transactions. Gambaryan’s continued detention has raised serious questions about Nigeria’s hard stance on crypto. Months after authorities Binance was blamed for currency volatility, the naira has fallen sharply but the Binance executive remains in detention. In June, two US lawmakers called for his immediate release after visiting him in Kuje prison, heightening political pressure surrounding his trial in Nigeria. Sixteen American lawmakers also accused Nigerian authorities of holding the American citizen hostage. On June 6, Axios reported that a group of former prosecutors and federal agents wrote to US Secretary of State Anthony Blinken, urging him to “step up” efforts to secure Gambaryan’s release.
Read MoreAs Nigeria raises fuel prices by 40%, spare a thought for struggling gig drivers
After two months of persistent fuel scarcity and a recent acknowledgement by the national petroleum corporation that its finances are under strain, Nigeria has adjusted fuel prices by 40%. Across several fuel stations in Lagos, the pump price was around ₦897 per litre, up from ₦610 on Monday. It is the second major fuel increase for a country that tried to end costly fuel subsidies in May 2023 when prices tripled from around ₦200 per litre. A second fuel hike in over a year will raise operating costs for last-mile delivery companies and food delivery businesses. Gig drivers, who have endured a tough year, will be among the worst hit. Unlike last-mile and food delivery companies that pass on costs to customers, gig drivers do not set their prices. And cabs, still largely considered a luxury for most Nigerians, may experience softer demand if price increases are passed on to customers. Ride-hailing companies like Bolt, Uber, and InDrive, which use algorithms to set prices, are wary of steep price increases in a country where incomes are already under pressure. Uber did not immediately respond to a request for comments. “I now use public transportation and Uber when I am going on long distances and public transportation when I am going on short distances,” a product designer in Lagos told TechCabal. As customers adjust, gig drivers who face increasing maintenance costs because of record inflation—headline inflation quickened to 34.19% in June 2024—are also becoming pragmatic. “It got to a stage when any ride that comes in for ₦1,500 or ₦2,000, I don’t attend to them because I know what I go through to get fuel,” a gig driver who asked not to be named told TechCabal. Beyond pragmatism, gig drivers, who often have to meet daily targets to earn bonuses from ride-hailing companies, have asked for fare increases. Warning strikes, dialogues with ride-hailing companies and conversations with the government have been part of their strategies to force fare increases. They also want these companies to reduce their commission on driver earnings from around 25% to 10%. It is unclear if that margin works for the companies. A similar situation happened in Kenya, where drivers began to impose their ride prices. “They have to adjust their prices because they cannot expect drivers to make money for them and expect them to make low prices. If they don’t increase fares, the drivers will frustrate the platform”, a gig driver told TechCabal. The drivers and their partner companies are locked in this delicate balance, with each weakened by Nigeria’s poor macroeconomic condition. While a price increase looks inevitable, it is unlikely to improve the drivers’ fortunes. If anything, the most likely outcome is more friction between gig drivers and ride-hailing companies for the next few months. *Additional reporting by Muktar Oladunmade Uber Kenya increases fares by 10% but drivers are unimpressed
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Banks and fintechs remain wary of Crypto despite new licences
On Friday, Nigeria’s Securities and Exchange Commission (SEC) issued the country’s first crypto licences to Busha and Quidax, two home-grown crypto exchanges. It is the latest turn in Nigeria’s love-hate relationship with cryptocurrency after the SEC and the CBN considered regulating peer-to-peer transactions in early 2024. While the Central Bank lifted a directive restricting banks from “dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges” in December 2023, it began asking banks to block the accounts of p2p traders by May 2024. On August 23, 2024, a high court in Uyo, Nigeria, denied an application to unfreeze Patrick Okon’s Kuda bank account. The restrictions on his account were directly linked to crypto payments. In April, the Economic and Financial Crimes Commission (EFCC) asked a court to block over 1,000 bank accounts over crypto links. In March 2024, Nigeria’s financial regulators blocked prominent fintechs from onboarding new customers for five weeks as a currency crisis worsened. It moved against Binance on claims that the platform allowed for manipulation of the naira and detained two of the company’s executives. While the case against the detained Binance executive Tigran Gambaryan drags on, the CBN compelled fintechs to block any account believed to be trading crypto. The SEC, which issued last week’s crypto licences, also held several meetings in May suggesting that exchanges should block p2p transactions out of patriotism. These policy flip-flops make it likely that banks and fintechs will continue to distance themselves from crypto-related activities. “Crypto is still persona non grata. The CBN has not openly accepted it yet,” one bank executive who asked not to be named told TechCabal. Banks are ignoring the provisional licences the Securities Exchange Commission (SEC) issued to Quidax and Busha, said highly placed executives at prominent fintech startups. Omotimi Agama, the SEC’s director-general, insisted to TechCabal that “the CBN has lifted any ban.” While Agama’s position is accurate, banks and financial institutions prefer to play it safe with the Central Bank, always choosing caution. “The devil is in the details,” a top executive at one of the fintechs told TechCabal. “The [guideline] is confusing, and the processes are challenging.” Chike Okonkwo, the founder of Gamic, a blockchain startup, that claims to have been speaking to the SEC since 2019, understands the banks’ position. “If that circular [greenlighting] the banking of crypto firms is binding, why can’t retail traders freely add crypto to the description of their banking transactions?” Busha, one of the new licensees, is more optimistic and anticipates a better relationship between banks and crypto companies. “The issuance of the crypto licences is a critical step in maturing the industry. It means that users can engage with operators with increased confidence, which should generally deepen the market,” a spokesperson for Busha said. The company also claims that it is ready for whatever “tight but effective regulations” are deemed necessary by the CBN. Until then, banks and fintechs will continue sitting on their hands in understandable fear of the CBN’s hammer. “Nigerian banking laws are not customer-friendly,” a highly placed fintech executive told TechCabal, adding that “Financial institutions [retain] the right to freeze any account they have reasonable suspicions about any infraction or illicit activity.” Are crypto trades illegal? Two new licences and the CBN’s December 2023 directive say they’re not. However, one operations manager at a commercial bank states, ” We can only acknowledge the license after receiving instructions from the CBN, our regulator.”
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TechCabal Daily – Zimbabwe backs its currency with $190 million
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Difficulties within Africa’s economic landscape have raised questions about the feasibility of building successful startups on the continent. Iyin Aboyeji, a Nigerian entrepreneur who co-founded two companies valued at over $1 billion before the age of 30, is now a prominent startup investor. Iyin is one of the featured speakers at Moonshot 2024, joining other innovators and industry leaders working on groundbreaking solutions to Africa’s most pressing challenges. You can listen and learn from Iyin’s journey at Moonshot 2024. Get your tickets here. Inside Mira’s new all-in-one hardware Zimbabwe backs its currency with $190 million Nigeria to fine telcos for poor services Indonesia seeks $3.5 billion trade agreement with Africa The World Wide Web3 Opportunities Startups Inside Mira’s new all-in-one hardware The Mira Register In Zero to One, Peter Thiel argues that founders should test their hypotheses in the real world. Mira, a Nigerian fintech which launched in 2024, aims to change how restaurants handle food orders. With Mira, users would scan a QR code, check out a list of meals, and pay through any medium of choice. Restaurants can also receive these orders on any device. When the product went out into the world, Mira learned that restaurants wanted a familiar system. This informed the launch of Mira Register, an all-in-one device that allows restaurants to track customer orders and manage other internal business processes. Mira claims its unique approach to building products sets it apart from competitors. The startup uses a hybrid approach that allows restaurants to operate the product with minimal internet connection. The startup is benefiting from founder Ted Oladele’s experience building great startups at Flutterwave. As founder, Ted Oladele sees Mira Register as the startup’s opportunity to enter the hospitality industry. The CEO is also optimistic about capturing a 10% market share in Nigeria’s saturated POS sector using Mira Register. Already, it has processed over $500,000 in transactions since launch and serves several well-known SMEs like Asheluxe, Grey Matter, and The Vault. Read all about Mira’s pivot here. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy. Economy Zimbabwe backs its currency with $190 million The Zimbabwe Gold (ZiG) Like most African countries struggling with rising import costs, declining export prices, and high inflation, Zimbabwe has taken steps to shore up foreign currency to help increase demand for its domestic currency, the ZiG. So far, the country has spent $190 million doing this. The Reserve Bank of Zimbabwe said it was using 50% of the foreign exchange proceeds which it collects from exporters to back its new gold-backed currency. In July, Zimbabwe pumped $50 million into the market to support the ZiG. “If we have forex demand that can’t be met by voluntary liquidations, the central bank must step in. It has the reserves,” Persistence Gwanyanya, a member of the Reserve Bank’s monetary policy committee said in an interview. In July, Bloomberg reported that Zimbabwe has about $370 million in reserves. The apex bank has said interventions in the interbank market will be “a permanent feature”. Zimbabwe is not the only African country that is aggressively buying foreign currency to support its domestic currencies. South Sudan, Mauritius, Nigeria and Zambia have together spent at least $1 billion since July to defend their currencies. Rising import costs, declining export prices, and high inflation have triggered this more-than-usual intervention by these central banks. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Telcos Nigeria to fine telcos for poor services Image source: YungNollywood The Nigerian Communications Commission (NCC), the country’s telecoms watchdog has made it compulsory for telcos to pay a default fine of ₦5 million ($3,100) if they fail to meet the benchmarked Quality of Service (QoS) scores. An additional ₦500,000 ($315) will also be charged for periods of continuous downtime. To calculate QoS, telcos are judged on three metrics. The first two are closely related: they need to ensure that at least 98% of all calls connect successfully, which means keeping failed connections to under 2%. The third metric focuses on their ability to handle customer needs, requiring telcos to meet both voice and data demands by customers. However, this default fine is coming when telcos are having a hard time in Nigeria. Telcos are having to deal with high operating costs due to the ailing naira, high price of diesel, government-imposed taxes, and vandalised infrastructure which cost them ₦14.6 billion ($9.2 million) to fix in 2023. Coincidentally, these vandalisms are the major causes of the downtimes telcos face. These new fines may seem like even more trouble for telcos but there’s good news on the horizon. The Nigerian government is planning to issue a 10-year jail term for vandals who are nabbed in fibre optic vandalism cases. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog → Economy Indonesia seeks $3.5 billion trade agreement with Africa Image source: IAF During the Indonesia-Africa Forum currently taking place in Bali, senior diplomats from the Asian country proposed that Indonesia seek a $3.5 billion trade agreement with African countries. Indonesia is a well-known nickel exporter. With at least 50% of its nickel being exported, it is one of the world’s largest nickel exporters. However, that also constitutes a pain it has been trying to deal with. Nickel is key for making batteries for electric vehicles (EVs). And Indonesia, knowing fully well that
Read MoreLagos embraces blockchain to tackle land fraud
This article was contributed to TechCabal by Seth Onyango via Bird Story agency Lagos is gearing up to revamp its land registry using blockchain, a technology renowned for its ironclad security and transparency, a trend seen across Africa. The digital ledger, which underpins cryptocurrencies like Bitcoin, could soon become the backbone of land ownership in Africa’s largest city, ensuring every transaction is tamper-proof and fully traceable. A consortium of local technology firms, partnering with the Lagos State government, is driving the ambitious upgrade, which will roll out in phases over the next 18 months. Central to the upgrade is the tokenisation of real estate properties, which will convert physical assets into digital representations on the blockchain. Innovation Village reported that these “digital twins” will store key information such as ownership details, title deeds, and complete transaction history. The adoption of blockchain technology is expected to address deep-rooted issues in Lagos’s current land registry system, which has long been plagued by corruption, inefficiency, and opacity. With blockchain, the government seeks to provide a secure, transparent platform where land transactions are permanently recorded and cannot be altered. Lagos’s adoption of blockchain could significantly streamline land transactions, reducing the time and costs associated with verifying titles and completing deals. This efficiency is expected to boost the property market, attracting both local and international investors who have been wary of fraud. A secure, transparent system of land ownership could unlock substantial economic potential, particularly in unregistered or disputed properties. This move by Lagos is part of a broader trend across Africa, where countries grappling with similar challenges in land administration are moving to electronic title deed systems. For instance, in Kenya, the Lands Ministry began digitising records in 2018, initially sparking enthusiasm. However, progress has been slower than expected, with only about a third of Nairobi’s property records digitized so far. Despite this, momentum is building, with more counties, including Isiolo, adopting the system. Ghana has also been working on digitising land records to improve transparency. The West African country’s pilot blockchain land registry, initiated in 2017, remains in the experimental phase but reflects a broader trend across the continent toward leveraging technology for better land management. Rwanda stands out, having titled all land parcels between 2011 and 2013, with 86% of titles including women. By 2023, the small East African state completed the digitization of its national cadastre and registry, making it the only African country to achieve this milestone. South Africa has explored blockchain for land registration but faces complex challenges due to historical land ownership issues.
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No such thing as a “merger of equals” because clashing cultures don’t allow it
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 01 September, 2024 However, despite how hard companies try to make mergers equal, one company typically has the upper hand – Chris Roush. In a perfect world, mergers of equals are created for mutual trust and fairness to project a unified corporate image. Yet, the world is anything but perfect. Mergers of equals are elusive and often impeded by disparities in corporate culture. Culture is a startup’s approach to decision-making, leadership, adaptability, and willingness to take risks. This can include beliefs about individual success versus teamwork. For instance, some startups prioritise individual high performers, while others favour collaboration and teamwork. Recent (for startups) and past (for corporations) examples, like the merger of HP and Compaq, show how cultural differences can undermine the equitable distribution of benefits, including employment practices and strategic direction. There are three ways of looking at this disparity, anchored on culture. First, a dominant startup’s staff may be less likely to perceive cultural clashes or be more receptive to aspects that align with their cultural values, possibly contributing to abandoning the “merger of equals” concept. Post-merger cultural practices can reveal different interpretations of equality between the merging startups. Additionally, differing cultural conventions can emerge from various aspects of the merging startups. In pursuit of a merger of equals, these differences may be overlooked or dismissed, thus stopping the aim of equality from being achieved. Next Wave continues after this ad. We’re excited to announce our partnership with Wimbart on the second edition of their pioneering pan-African research publication, “Startup Performance Reporting in Africa”. This report is set to launch in the first week of October and aims to shed light on the intricacies of investor relations within the African tech ecosystem. The survey is now open, and we’re calling on all African founders and investors to participate. Over the past decade, Wimbart has worked closely with a wide range of stakeholders in Africa’s tech sector. Their first report identified significant challenges, notably the disconnect between investors and founders, which poses a major threat to African tech ventures This year’s edition aims to explore these issues even further, incorporating new insights from startup founders to better understand and address communication gaps that impact the African tech ecosystem. By participating in this survey, you’ll contribute valuable insights that will shape the future of investor relations and support the growth of African startups The survey is now open and will close on Friday, 6th September 2024 at 23:59 pm UK time. It takes just 6 minutes to complete and is fully confidential. Make your voice heard. Click here to participate. It’s all about culture In addition to negotiating prices and other financial terms, organizations discussing mergers need to negotiate culture. Leaders should start by conducting a cultural assessment to understand how people, practices, and management reflect tightness or looseness in both companies – Harvard Business Review. Mergers of equals are hinged on the perception of fairness; if employees feel that resources are distributed equitably and decision-making processes are just, they’re more likely to commit to the new organisation. In some cases, this can be interpreted as “fairness in resource allocation” and in others as “fairness of processes and procedures.” Despite equality often seen as a cornerstone of fair mergers, it’s not sustainable in the long term. Cultural differences between merging startups can create challenges in maintaining equality and ensuring a successful integration. These differences influence how work is done, priorities are set, and promises are fulfilled. Partner Content: Read: Fintech company, Netapps launches reliable and secure suite of products here. To understand the operationalisation of equality in mergers, it is critical that we consider cultural dynamics. Although mergers and acquisitions are frequently mentioned in the news, few discuss how equality is implemented over time. Ignoring the cultural factors that shape equality’s value and practice is an oversight that is seldom discussed. For these reasons, when two startups merge, they often face challenges because their cultures—values, beliefs, and practices—differ. This “culture clash” can harm the merger’s success. In mergers where both startups are supposed to be equal, conflict sometimes arises if one startup’s management makes most of the decisions. This creates feelings of inequality, leading to a lack of commitment and cooperation from the other side. It’s especially important for top managers to address these culture clashes, as their commitment to the merger directly affects the motivation of their employees. If the cultures of the merging startups remain too different, each might try to hold onto its ways, leading to a clear division between them. In mergers where one culture is more potent, the weaker one might feel threatened and resist change. Over time, shared experiences can help blend the cultures or widen the gap, especially if the differences are noticeable. To keep things equal, top managers must be sensitive to both cultures and work actively to bring them together. And culture clashes aren’t just about different values or norms—they’re really about identity. When creating a new, merged culture, employees from the less dominant startup might feel like they’re being forced to give up their old identity, leading to resistance and other negative feelings. However, if people believe in equality and see it in the newly formed entity, they may be more willing to integrate. Equality can guide decisions during the merger to help everyone understand what is acceptable and how to proceed. Next Wave ends after this ad. Born into a modest family in Ibadan with his father owning a small block industry and his mother working as a petty trader, Adewale Yusuf faced challenges as a young child. After graduating from Loyola College in 2004, Adewale
Read MoreAfrica’s informal sector: Overlooked yet essential for global supply chains
This article was contributed to TechCabal by Ademola Adesina. Since the COVID-19 pandemic, the world’s supply chains have faced uncertainties and even shortages of resources such as critical minerals and agricultural commodities. Multiple factors contribute to these circumstances, which are exacerbated by persistent global conflicts, low inventories, demand fluctuations, and rising costs. Reuters recently pointed out that global shortages in particular cause an average loss of $82 million annually to international companies. The African informal sector is perhaps the most vital player in global market supply. Approximately 70% of African economies are informal, encompassing everything from artisanal miners to gig workers and small-scale farmers. These entrepreneurs are often underbanked, unregulated, and lacking access to capital, but their involvement in global markets is key to unlocking current and future supply chain bottlenecks for a wide range of goods. A recent article in The Economist underscored the world’s reliance on small, artisanal miners for critical mineral supply chains. Critics often view the informal economy as a symptom of regulatory and economic failure, associating it with lower wages and lack of social security. However, this perspective overlooks the essential role the informal sector plays in alleviating unemployment, enhancing livelihoods, having local insights unavailable to larger, formalised firms and providing goods and services where formal businesses may not reach. Instead of sidelining these economic activities, we should focus on empowering and formalising them in a way that preserves their resilience and enables their contributions. Sabi is proud to bridge gaps and facilitate meaningful connections that create value across the e-commerce ecosystem. Our work has included enabling a distributor to sell FMCG goods to last-mile retailers, connecting a lithium refinery in Indiana with African minerals suppliers, and lining a Nigerian cocoa aggregator with European chocolate producers. Important work remains, however, in empowering and supporting the informal sector and involving them more deeply in e-commerce activities on the continent. As leaders, entrepreneurs, and global partners look to the future of supplying the world’s demand for African goods and commodities, here are concrete ways to achieve your goals by supporting the informal sector: Responsible engagement: Responsible engagement with the informal sector means creating pathways for formalisation that respect the uniqueness of these businesses while offering them the benefits of formal economic activity such as greater access to finance, protection under the law, and the ability to scale. Technology platforms like Sabi, which I co-founded, are already on this path. We enable informal and semi-formal businesses to access larger markets, improve their operations, and connect with necessary services and resources. Such enablement not only boosts their productivity but also integrates them into the global economy, making supply chains more robust and diverse. Empowerment: Empowering the informal economy can significantly address global supply chain vulnerabilities exposed by recent crises like the COVID-19 pandemic. By formalising small and informal businesses, we can diversify sources of production and distribution, reducing the strain on overburdened supply systems and creating more resilient economic structures. This diversification is essential not just for Africa but for the global economy, mitigating risks of shortages and fostering more stable supply flows. Aligning incentives: Sabi helps informal merchants and artisanal suppliers grow their businesses, but we also help them understand the needs of the global markets. For many large companies, traceability equals transparency and is a requirement to engage suppliers. For others, sustainable practices – such as ethical sourcing, community development, and training for small farmers – are key. Sabi’s partnership work in the Oyo State of Nigeria points to path-breaking work that provides small farmers with the tools and support they need to operate sustainably and profitably. Broadening access to finance: For small and medium-sized entrepreneurs in the informal sector, access to credit and financial services is often the biggest barrier to scaling operations. Extending access to credit through technology and fintech platforms can be a good place to start. Sabi Market offers an API through its fintech platform, Katsu, that can be tailored to individual companies and their needs. Africa’s informal economy is a testament to the continent’s entrepreneurial spirit and capacity for innovation. By embracing and responsibly empowering these informal sectors, we not only drive economic growth in Africa but also contribute to solving some of the world’s most pressing economic challenges. Let us recognise and harness this potential, not as a challenge to be managed, but as an opportunity to be celebrated and elevated. This is not just the path to economic recovery—it is the road to a thriving, inclusive economic future for Africa and beyond. _________ Ademola Adesina is the Co-Founder of Sabi, a company dedicated to transforming the African marketplace through innovation and technology. Sabi blends global reach with local insights to connect African markets with each other the rest of the world.
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Mira’s recipe for differentiation in Nigeria’s POS market is an all-in-one hardware
When Mira, a Nigerian fintech that helps restaurants receive payments, launched its QR code payment system in January 2024, it wanted to change how people make restaurant orders. By allowing anyone to scan a QR code, check out a list of meals, and pay through bank transfer, Apple Pay, or a card, it eliminated the need for repeated interactions with the restaurant’s wait staff. Mira soon learned restaurants wanted something slightly different but familiar: a point-of-sale management system tied to hardware. It led to the launch of the Mira register. Priced at ₦360,000 ($226), Mira register has two displays, a receipt printer, a barcode scanner, Bluetooth and Wi-Fi. It tracks customer orders and internal business processes. The device comes with a Budpay or VFD embedded account to receive payments. Food delivery apps like Chowdeck and Glovo are also integrated with the hardware device for order fulfillment. Mira charges a monthly subscription fee ranging from $5 per restaurant location for its basic plan to $500 for larger restaurants in its enterprise plan. It charges $30 for its pro plan and a 1% transaction fee on payments made on Mira Register. “We started with the simplest form (order management system) to get us into the hospitality space,” said Ted Oladele, Mira’s CEO. Mira initially offered restaurants a plan to pay for the device in 12-month installments, but most restaurants preferred to pay full price upfront. These businesses already pay upfront for Orda, Louyverse, Workman, and Omega POS, Mira’s competitors. While those competitor devices need internet access to run smoothly, Mira claims it uses a hybrid approach that allows restaurants to operate the product with minimal internet connection. “There is a reputation deficit for local players. We are trying to enter the market with a different a reputable product,” said Oladele. Feranmi Ajetomobi, co-founder at Ni Fries, claims Mira’s most valuable feature is its dashboard’s detailed inventory tracking data. “The Mira dashboard allows us to track inventory levels and calculate the amount of food we can produce efficiently,” said Feranmi Adejutmobi, CEO of NiFries. Adejutmobi claims the dashboard allows businesses to collect data points that can inform their pricing strategies and overall profitability. Despite its claim to a better product, Mira faces an uphill climb in overcoming the switching costs for businesses who may already use its competitors’ devices. The startup serves a mix of SMEs—restaurants and retail stores—and counts Olaiya Foods, Grey Matter, The Vault, NiFries, OTP Kitchen, and Ashluxe as customers. Mira currently serves about 200 businesses across Nigeria. Mira has processed over $60,000 in transactions since launch, earning most of its revenue from businesses on its enterprise plan. “We are more expensive than the average local competitor. We don’t fight on pricing,” The startup raised $200,000 in a family and friends round and is in the middle of a seed round. While some customers who spoke to TechCabal experienced occasional glitches on the device, they are typical for startups in the early stages of development. Oladele claims the startup constantly seeks customers’ feedback and occasionally gets requests to build custom features. ‘ While Oladele agrees that building custom solutions for users on request might be a slow approach for a venture-backed startup, he thinks it is a necessary step to building a superior product. As Mira expands its service offering and looks for product differentiation, Oladele’s goal is to attract a 10% market share which will make the business profitable. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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