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
Read MoreTyme raises $250 million Series D to become Africa’s ninth unicorn
South Africa’s digital lender Tyme Group has raised $250 million in a Series D round at a $1.5 billion valuation. With the valuation, Tyme becomes Africa’s ninth unicorn, two months after Nigeria’s Moniepoint hit the billion-dollar threshold. Tyme plans for an initial public offering by the end of 2028. The funding round was led by Nu Holdings, the parent company of Nu Bank, Latin America’s most valuable fintech, which invested $150 million for a 10% stake. M&G Catalyst Fund and existing investors also participated in the round. The latest funding signals an investor return to investing in the continent after a slowdown in funding. As with other unicorns, the major participants of this funding round were global investors, further highlighting the scarcity of growth capital on the continent. Tyme’s valuation continues the dominance of fintechs amongst Africa’s unicorns. Seven out of nine African unicorns are fintechs. Nubank’s participation in the deal is part of the bank’s plan to expand outside its Latin American markets. The bank wants to replicate its successes in Latin America by tapping into the growth potential of emerging markets like Africa and South Asia. Launched in 2019, Tyme Group operates through a hybrid model of online and physical banking, offering checking and savings accounts, debit cards, buy-now-pay-later credit. With 15 million customers, the company claimed to have extended over $600 million in financing to small businesses in South Africa and the Philippines. In August 2024, its South African subsidiary TymeBank announced plans to launch in Indonesia by the end of 2024. The $250 million funding brings Tyme’s total funding to about $600 million. African Rainbow Capital Investments Ltd. will remain Tyme’s lead shareholder with a 40% stake in the business.
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👨🏿🚀TechCabal Daily – MNT-Halan’s fourth expansion
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! How much do Nigerian bankers really earn? Ever wondered how much you could make working at First Bank or Zenith? It’s one of the banking industry’s best-kept secrets. But we’ve uncovered the truth. From entry-level roles to management positions, we’ve got the numbers. Here’s a sneak peak: Union Bank pays its trainees—yes, trainees—about ₦547,000 ($354) per month, the highest we’ve found. The lowest is Zenith Bank’s at ₦245,000 ($159). Here are all the other interesting things we found. Egyptian Unicorn MNT-Halan Expands to UAE Nigeria records highest inflation figures in 2024 develoPPP Ventures funds nine startups with €100,000 World Wide Web 3 Jobs Expansions Egyptian Unicorn MNT-Halan Expands to UAE Image source: MNT Halan Egyptian unicorn, MNT-Halan, is expanding its services to the United Arab Emirates (UAE) market. Its first offering, “Halan Advance,” allows employees to access a portion of their salary in advance. Building on its success in Egypt, Turkey, and Pakistan, MNT-Halan plans to introduce credit, payments, and investment products to the Gulf region subsequently. MNT-Halan has been prepping fopr this expansion since April 2024, partnering with employers and acquiring over 40,000 customers. The company, which provides financial services, including loans, and e-commerce services, aims to serve the UAE’s 3.7 million underbanked individuals by leveraging the country’s strong economy and high smartphone adoption. Since it was founded in 2018, it has issued over $4.4 billion in loans and has 2.2 million quarterly active users. In 2022, MNT-Halan surpassed $300 million in gross revenue. After attaining unicorn status, the company has focused on expansion. In March 2024, it acquired Advans Group in Pakistan, a microfinance bank with over 62,000 clients and 19 branches. Later, in July, MNT-Halan acquired Tam Finans, a Turkish company, to enhance its micro-lending and factoring services. The expansion follows MNT-Halan’s $157.5 million funding round and its entry into the Turkish market in July. The funds aim to fuel the company’s growth beyond Egypt. 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. Economy Nigeria records highest inflation figures in 2024 GIF Source: Tenor Yesterday, Nigeria recorded its highest inflation figures in 2024. The National Bureau of Statistics announced a 34.60% inflation rate for November, up from 33.8% recorded in October 2024. November’s inflation figure was largely due to increases in transport and food prices. Although Nigeria’s harvest season helped ease food prices, flooding in key agricultural states like Borno and increased transportation costs due to a fuel hike have reversed those gains. The country’s failure to implement a 150-day waiver on food imports also quickened food inflation. Analysts predict that Nigeria’s inflation may peak in the coming months, closely followed by a start of disinflation due to the waning influence of fuel subsidy removal and naira devaluation. Despite multiple rate hikes to curb inflation, the Central Bank of Nigeria (CBN) also anticipates a decline in inflation by the second half of 2024 and a potential interest rate reduction in the second half of 2025. CBN Governor Olayemi Cardoso has previously expressed the bank’s goal of achieving a positive real interest rate to stimulate investment and strengthen the naira. Economists also expects the CBN to proceed with gradual interest rate cuts from Q2 next year, predicting a 400 basis point cut to 23.5% by the end of 2025. 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! Funding develoPPP Ventures funds nine startups with €100,000 Image source: develoPPPdeveloPPP Ventures has selected nine startups from Nigeria and South Africa to receive €100,000 each in non-dilutive funding. The funding is backed by the German Federal Ministry for Economic Cooperation and Development (BMZ). It will be implemented by one of its three public partners, GIZ. The fund targets early-stage companies with business models that improve living conditions in developing economies. In addition to funding, the startups will receive technical assistance to support their growth. The beneficiaries include five South African startups and four Nigerian startups, namely, Nigeria’s Earthbond Limited, South Africa’s Franc, and Nigeria’s Cybervergent among others. In total, the fund supports 34 companies across various sectors in Côte d’Ivoire, Ghana, Kenya, Nigeria, Rwanda, South Africa, and Tanzania. While this is the fund’s first expansion to South Africa, it is in its third phase in Nigeria. To qualify for the funding, the startup must have generated initial revenue, it must be privately owned and profit-oriented. Furthermore, the company is required to procure complementary financing, cap prior funding at €2 million, exhibit strong growth prospects, and target profitability within a three-year timeframe. develoPPP.de is one of three funding programs developed by BMZ to promote private sector engagement in developing countries and emerging economies. The next call for applications is expected in 2025. CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $106,444 + 1.61% + 17.45% Ether $4,002 + 0.96% + 28.69% XRP $2.49 + 3.75% + 138.77% Solana $214.11 – 3.14% – 10.05% * Data as of 06:20 AM WAT, December 17, 2024. Jobs PressOne Africa – Growth and Sales Operations Manager – Lagos, Nigeria Condia – Sales and Partnership Associate – Remote (Nigeria) Moniepoint – Growth Product Partner – Lagos, Nigeria 54 Collective (Radease) – Growth Manager – Hybrid (Lagos, Nigeria) Renmoney – Chief of Staff – Lagos, Nigeria Interswitch Group – Data Engineer, Mobile App Developer – Hybrid (Lagos, Nigeria) Fairmoney – Data Engineer – Remote (Lagos, Nigeria) Duplo – Senior Product Manager, SaaS, Risk & Compliance Manager – Hybrid
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How much do Nigerian bankers earn? Discover the top paying banks in 2024
The 95,000 employees working in Nigeria’s 24 commercial banks share a common experience: a culture of secrecy around how much they earn. In the banking industry, discussing salaries is not just taboo—it’s almost forbidden. “Salaries in banking are sacred,” said one GTCO employee, who asked to remain anonymous due to company policies “At onboarding, HR makes it clear: discussing salary with your colleagues is strictly prohibited,” a banker from Stanbic IBTC shared with TechCabal. This culture of silence extends across all job grades, preventing employees from openly comparing pay with their peers. For the banks, this secrecy benefits their bottom line. It prevents staff from having the necessary information to evaluate their career options, request raises, or consider moving to competitors. This lack of transparency becomes a barrier to employee mobility, even though high turnover rates in the industry have been rising since remote work gained traction in 2020. TechCabal has gathered an in-depth salary scale for Nigerian bankers based on insights from over 26 current employees across 12 commercial banks. The data spans five key grades: Executive Trainee, Assistant Banking Officer, Banking Officer, Senior Banking Officer, and Assistant Manager. These salaries do not include bonuses such as profit sharing or 13th-month salaries. *Click on the dropdown in the image to see pay at different grades. Credit: TechCabal/Margaret Awojide Commercial banks play a critical role in Nigeria’s talent pipeline, hiring and training thousands of employees annually. They also set the standard for entry-level salaries, often adjusting wages to keep pace with inflation. However, with Nigeria’s inflation rate hitting an 18-year high, many banks have been forced to raise their salaries in response. In October 2024, GTCO raised employee salaries by 40%, signaling its commitment to retaining top talent amidst rising living costs. Union Bank followed suit, significantly increasing pay across the board and positioning itself as one of the highest-paying banks in the country. Information about these salaries is often hard to come by. If you have any insights, please use this anonymous form to share what you know and help us fill in the gaps.
Read MoreTech workers paid more for food and transport in November as inflation hits 34.60%
Nigeria’s inflation rate accelerated to a more than 6-month high in November on higher food and transport prices. Data from the National Bureau of Statistics on Monday put November’s inflation rate at 34.60%, up from 33.8% reported in October. The median estimate of five economists in a TechCabal survey was 34.01%. The primary drivers of this surge include rising food prices, exchange rate fluctuations, and increases in transport, housing, and utility costs. November’s food inflation quickened to 39.93% up from 39.16% recorded in October. Although Nigeria’s harvest season helped ease food prices, flooding in key agricultural states like Borno and increased transportation costs due to a fuel hike have reversed those gains. The country’s failure to implement a 150-day waiver on food imports also quickened food inflation. Analysts predict that Nigeria’s inflation may peak in the coming months, closely followed by a start of disinflation due to the waning influence of fuel subsidy removal and naira devaluation. “Ultimately, we think the petrol price hikes are already fading, while the impact of the naira’s sharp devaluation earlier in the year is fading too, such that they will drag on prices over the coming months. Inflation as a result will peak over the next month or two, with disinflation starting thereafter,” said David Omojomolo, Africa Economist at London-based Capital Economics. Omojomolo also expects the CBN to proceed with gradual interest rate cuts from Q2 next year, predicting a 400 basis point cut to 23.5% by the end of 2025. While a recent surge in fuel prices and floods in key agricultural areas have reversed recent gains in food prices, analysts remain optimistic about the long-term outlook for Nigeria’s economy. “Despite these challenges, the current scenario presents opportunities for structural reforms. Policies fostering agricultural productivity could address food price surges, while forex stabilisation efforts could restore market confidence,” said Olajide Oyadeyi, an Economics Researcher at The Commonwealth Secretariat. Strengthening fiscal discipline and diversifying energy sources post-subsidy removal could also enhance economic resilience in the long term, he added.
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Nigeria’s Juicyway raises $3 million to help businesses solve FX shortage problem
Juicyway, a Nigerian cross-border payments startup that helps businesses get FX for international transactions, has raised $3 million in pre-seed funding. The company will use the funding to expand its marketing and business development teams, improve its technology, and scale its business in Nigeria, the US, the UK, and Canada. P1 Ventures led the round with participation from Ventures Platform, Future Africa, Magic Fund, Microtraction, and angel investors Andrew Alli, Gbenga Oyebode, and Tunde Folawiyo. Founded in 2021 by Ife Johnson and Justin Ziegler, Juicyway is a marketplace that allows businesses and individuals to convert local currency to dollars and vice versa. Juicyway serves both suppliers—businesses that are bringing foreign currency (like USD or CAD)—and buyers—businesses that need to buy the foreign currencies from them and make outbound transfers. It makes money from transaction fees and spreads from transactions on its platform. “Businesses come to us for two reasons; the first type of business wants to take local currency, convert it to US dollars, and make international payments via [our] banking partners [demand side]. The second type of businesses want to leverage the accounts we provide to bring money into the continent and convert it into local currency to make disbursements [supply side],” said Ife Johnson, Juicyway co-founder and CEO. The company’s raise comes at a time when access to FX remains a challenge for Nigerian businesses dealing with frequent heavy international transactions. Juicyway is one of the many Nigerian upstarts pitching to solve the country’s cross-border payments problem. Juicyway allows businesses to make cross-border payments using stablecoins—like Tether and USDC—positioning it as a hybrid decentralised finance (DeFi) and traditional finance (TradFi) payments startup. When a business onboards on Juicyway, they can choose to open a US Dollar (USD), Canadian Dollar (CAD), or a stablecoin wallet. Juicyway app in use/Image Source: Juicyway When Customer A comes in and deposits naira to get dollars, and Customer B brings in dollars, they get matched on the platform and exchange liquidity without knowing it. This way, Juicyway is not a counterparty for the transactions. Businesses can set the prices and order limits they want to sell their foreign currencies. Other businesses that need FX can buy the foreign currencies if they match the asking price. This market-influenced pricing system can allow businesses to get good FX deals. “[We saw a problem where] every single time businesses needed to convert local currency to foreign currency, there just wasn’t a supply for that [foreign] currency that was near-instant, cheap enough, or compliant enough to solve their needs,” Johnson told TechCabal. Juicyway has been operating in stealth mode since November 2021 when it first processed its first $9 payment. Since then, it claims to have processed $1.3 billion in total payment volume (TPV)—a metric that Juicyway considers as its North Star—for over 4,000 customers. The startup operates in four markets: Nigeria, the UK, the US, and Canada. Juicyway holds licences in all these markets: an International Money Transfer Operator (IMTO) licence in Nigeria, a Money Services Business (MSB) licence in Canada, and an Authorised Payment Institution (API) licence in the UK. It operates through partner banks in the US, where it has also received a phase 1 payments approval in Washington DC. The company recently expanded its services to individuals, with Johnson saying they needed “critical mass” to test and expand their platform. Individuals needing to make international payments or receive forex supply can also onboard on Juicyway. The startup plans to grow its customer base in the coming months by increasing its marketing efforts. “This is a platform that can handle one or two million people across the UK, Canada, and Nigeria—all existing in one platform—and make money move between one another either directly or indirectly,” said Johnson. Johnson explained that the company operates in a niche market that benefits both remittance companies and market makers. For example, remittance companies like RemitChoice use the platform to sell liquidity and make disbursements, while businesses like IHS Towers use it for outbound payments. “We couldn’t be more excited to partner with Ife, Justin and Idris as they tackle one of the most critical challenges in finance. At P1 Ventures, we seek audacious and exceptional founders like them—visionaries who aim to redefine industries and empower emerging markets,” said Hisham Halbouny, co-founder and managing partner at P1 Ventures. The company will be looking to raise again in the next 18–24 months.
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👨🏿🚀TechCabal Daily – MTN eyes banking licence in SA
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! Bitcoin has entered the six-figure territory! Over the weekend, Bitcoin soared past the $100,000 mark and reached $106,000! This historic surge is due to growing institutional investments, easing inflation in the US, and renewed optimism over regulatory clarity. Adding to the excitement, US President-elect Donald Trump unveiled plans for a U.S. Bitcoin Strategic Reserve, signalling a potential shift in crypto policy. Is this the start of a new bull run, or just a temporary surge? Buckle up, crypto enthusiasts! MTN’s MoMo eyes banking licence in South Africa Tizeti set to become the first Nigerian startup to list on NGX Nigeria to fine banks for selling new notes World Wide Web 3 Jobs Fintech MTN’s MoMo eyes banking licence in South Africa Image source: Zikoko Memes MTN’s mobile money service, MoMo, is eyeing greater autonomy in South Africa. The company is aiming to secure a banking licence from the South African Reserve Bank (SARB) to operate independently. Currently, MoMo relies on African Bank as its sponsor. SARB is developing a regulatory framework to enable fintechs and non-banking entities to directly access the national payment system. This move is designed to promote financial inclusion for the millions of South Africans who remain unbanked. A banking licence would empower MoMo to offer more comprehensive and affordable financial services. While the service already supports basic transactions like payments and transfers, a full banking licence would allow it to expand its offerings. Already, MoMo South Africa has garnered significant traction, with 11 million registered users and 3 million active ones. The service has also been at the forefront of financial innovation, becoming the first non-banking entity to offer PayShap, a real-time payment service. Additionally, its partnership with MasterCard has enabled the launch of MoMo virtual cards across 13 African countries. 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. Startups Tizeti set to become the first Nigerian startup to list on NGX Image Source: Tizeti Since the revision of listing rules to include startups, the Nigerian Exchange (NGX) has struggled to attract startups to its platform. Earlier this year, the CEO of NGX, Jude Chiemeka, mentioned that a few startups were considering listing on the exchange. The startup-starved NGX is poised for a breakthrough as Tizeti, a Y Combinator-backed internet service provider, is planning to go public. This comes two years after Tizeti initially announced its intention to become a publicly traded company. Listing on the NGX will help Tizeti access more investors, raise funds in naira, and reduce the pressure to deliver high returns due to naira devaluation. The company—which reportedly has generated over $7.8 million in revenue—will be the first Nigerian startup to list on the NGX. “We have started that journey but are focused now on the launch of our fibre broadband service. We will share more information on the IPO shortly,” Temitope Osunrinde, Vice President for Marketing at Tizeti Networks told TechCabal without sharing the timeline for the IPO. Many Nigerian startups are reluctant to list on the NGX, citing inefficiencies in the marketplace for raising capital despite its great run in 2023. Some African startups opt to list on foreign exchanges such as the New York Stock Exchange or NASDAQ despite the higher cost of listing. This preference is attributed to access to a broader investor base, global visibility and better automation that makes it easier to manage listings and transactions. However, these ventures have yielded limited success stories. 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! Economy Nigeria to fine banks for selling new notes Image source: YungNollywoodWhat’s a Nigerian party without newly minted notes? Well, Nigerians may need to find new ways to get the party going without newly minted notes as the CBN is imposing fines on banks caught selling newly minted banknotes. A new circular from the central bank says it will impose a ₦150 million ($97,000) fine to deposit money banks caught selling newly minted bank notes. Since Nigeria’s cash shortage began in 2022, after an ill-timed currency redesign, Nigerian partygoers began sourcing freshly minted notes from POS agents and cash hawkers who buy them from banks and resell at a markup. However, the CBN believes these POS agents and cash hawkers are exacerbating the country’s cash crisis. One publication recently reported that POS agents were selling newly minted notes in busy Lagos markets, exacerbating the dire situation. The ₦150 million fine ($97,000) is the CBN’s second attempt to fix the country’s cash crisis which has seen users heavily reliant on POS agents for cash. The CBN released a toll-free line for users to report bank branches with empty ATMs. Although some banks have started adhering to the Central Bank of Nigeria’s (CBN) guidelines, it’s unclear whether imposing fines on banks will tackle the root cause that motivates cash-intensive businesses to sell their banknotes to POS agents. 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 → CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $104,778 + 2.33% + 14.43% Ether $3,962 + 1.59% + 26.56% Dogecoin $0.40 + 1.31% + 7.40% Solana $221.49 + 0.33% + 0.31% * Data as of 06:30 AM WAT, December 16, 2024. Jobs PressOne Africa – Growth and Sales Operations Manager – Lagos, Nigeria Condia – Sales and
Read MoreEthical and responsible AI deployment: A focus on Africa
This article was contributed to TechCabal by Uchenna Okpagu. As AI adoption accelerates globally, Africa finds itself at a crossroads, with both immense potential and significant risks. Whether fine-tuning an existing large language model or training a frontier AI model tailored to the continent, addressing the ethical and societal challenges associated with AI deployment is critical. Africa’s diverse cultures and languages make it imperative to build AI models that reflect our unique identity while mitigating risks like data privacy breaches, bias, and misinformation. Understanding the risks AI models present risks that must be addressed to ensure ethical and responsible AI deployment. Data privacy concerns arise when sensitive personal information is inadvertently exposed during the feature engineering process, necessitating robust privacy measures. Using unlicensed data, such as the personal information of patients (e.g., medical records) or students (e.g., academic records), to train or fine-tune a Large Language Model (LLM) is highly unethical. This practice breaches privacy, as the AI model could potentially use such data to make predictions for other users, inadvertently exposing sensitive personal details. If such data must be used, explicit consent should be obtained from the individuals involved, and the data should be thoroughly anonymized to ensure privacy is protected. Output bias, often stemming from imbalanced training datasets, can lead to the unfair treatment of specific groups. Excluding data from certain ethnic groups or tribes during the collection and preparation of training datasets can lead to significant consequences. AI models trained on such incomplete data will likely produce biased or unfair results for those excluded groups, reinforcing inequity and reducing the effectiveness and inclusivity of apps leveraging that model to provide solutions. Misinformation, caused by model hallucinations or errors in training data, undermines trust by producing inaccurate outputs. The quality of an AI model heavily depends on the reliability of its training data. If misinformation is present in the training data, the model can propagate it, potentially causing serious socio-economic or health consequences. The significance of this issue cannot be overstated, as inaccurate outputs from AI systems can have far-reaching negative impacts. Furthermore, unintended consequences may arise when certain groups are disadvantaged, even after a proper and balanced data extraction process. This underscores the importance of robust and ongoing post-training activities, such as aligning AI models through Reinforcement Learning from Human Feedback (RLHF) and continuous monitoring, to ensure fairness and mitigate biases. Pillars of Ethical and Responsible AI Safety Models must produce safe and non-toxic outputs. Recent incidents, such as harmful responses from advanced AI models, highlight the critical need for stricter alignment protocols. Involving subject matter experts during the RLHF stage is essential to ensure AI outputs are safe, responsible, and non-toxic to society. For instance, a tragic case involved a 14-year-old teenager who took his own life after an AI chatbot suggested that suicide was a way to “be with” the bot. This devastating outcome could have been prevented if the platform had implemented robust guardrails to detect emotional distress and intervene by discouraging or blocking such conversations. Robustness AI systems must withstand adversarial attacks, such as jailbreaking or prompt injection, to maintain integrity. Many users with malicious intentions actively seek to bypass the built-in guardrails of AI systems. Just as antivirus software is essential to protect computer users from cyberattacks, AI models must be equipped with robust, air-tight guardrails to resist adversarial exploits. Additionally, constant monitoring is crucial to detect and respond to such attacks proactively, ensuring faster resolution and maintaining the integrity of the system. Reliability Models should consistently deliver predictions within the scope of their training, ensuring relevance and accuracy, particularly in critical fields like healthcare. Subject matter experts play a crucial role in AI model alignment, helping to ensure more reliable and contextually appropriate outputs. A recent example of this approach can be seen in OpenAI’s development of Sora, their text-to-video generation model, where they incorporated feedback from artists and video content specialists during the alignment process. While this particular case had its complexities, the underlying principle remains sound: involving domain experts during post-training alignment helps ground AI systems in real-world expertise and professional standards. Explainability Transparency in AI systems’ decision-making processes is crucial for building stakeholders’ trust. While open-source models like Meta’s Llama provide public access to model weights, this alone doesn’t guarantee algorithmic clarity or decision-making transparency. Modern large language models remain largely “black boxes” even when open-sourced, with their internal reasoning processes still difficult to audit and understand. True transparency requires additional mechanisms beyond open-source weights, including interpretability research and robust evaluation frameworks. Fairness Unbiased model predictions require representative and carefully validated datasets. For African AI development, this means engaging ethnic and tribal leaders during data collection and preparation. Their involvement helps capture diverse cultural values and perspectives, reducing systemic bias in training data before model development begins. The African Perspective To unlock the full potential of AI in Africa, models must be deeply rooted in our cultural and linguistic diversity. Building datasets that accurately reflect our unique context is essential, as is rigorous post-training alignment and reinforcement learning with human feedback (RLHF). These steps will ensure AI models deliver real value and gain the trust of African users. The establishment of an African AI Safety Board is overdue. The African Union (AU) should prioritize this initiative as part of its 2025 agenda to oversee the ethical development and deployment of AI systems across the continent. _______________ Uchenna Okpagu is an expert in AI and machine learning. He is a Certified AI Scientist (CAISTM) accredited by the United States Artificial Intelligence Institute. As the Chief AI Officer at Remita Payment Services Limited, Uchenna spearheads AI innovation and enterprise-wide adoption, driving the integration of AI solutions that address real-world challenges.
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