Moroccan mobility startup Enakl raises $1.4 million in Catalyst Fund-led pre-seed round
Enakl, a Moroccan and French mobility startup that offers bus-sharing services, has raised $1.4 million in a pre-seed funding round. The company will use the funding to improve its technology and expand into other cities in the North African country and across Africa. The round was led by Catalyst Fund, with participation from Renew Capital, Digital Africa, Station F, and 15 other angel investors. “This funding allows us to deepen our impact in Casablanca, expand our reach, and accelerate the development of our technology,“ said Samir Bennani, Enakl’s co-founder and CEO. Founded in 2023 by Samir Bennani and Charles Pommarede, the e-mobility startup offers a pre-planned commuting service that allows users to book shared rides on mini-buses that follow fixed routes. Enakl’s bus-sharing service targets Morocco’s urban cities where commuters face overcrowded buses and inconsistent schedules. The bus-sharing business model will limit the number of daily commuters dependent on the public bus rapid transit (BRT) system, leading to fewer vehicles on the road. The company seeks to address the need for sustainable and efficient public transportation in Morocco’s growing urban cities. Casablanca, one of the busiest cities, has a BRT system with average wait times of fifteen minutes during peak hours which is a problem for commuters who want to move around quickly. Enakl’s pre-planning feature allows timely pickup for these commuters. “We invested in Enakl because they’re transforming urban transit in Africa with a scalable, green solution. By reducing emissions and congestion through tech-driven, shared transport, Enakl addresses urbanisation’s challenges,” said Maxime Bayen, Operating Partner at Catalyst Fund. With Morocco’s relatively small ride-sharing market, valued at $4.15 million in 2024, Enakl has a chance to grow and capture market share. After operating for 14 months, the mobility startup claims it manages over 15,000 ride bookings monthly and grows this number by one-fifth monthly. Aside from the public transport sector, Enakl faces competition from ride-hailing companies like Careem and Heetch operating in Morocco. While the ride-hailing services focus on offering private trips, Enakl helps users save cost on transport fares while providing the comfort of a private trip. “We recognise the problem Enakl is trying to solve in many of the cities we work in across Africa, and feel strongly that the collective transportation solutions developed by Enakl are key to solving these challenges,” said Adam Abate, Renew Capital CEO.
Read MoreAltSchool expands to Europe as it nears profitability
AltSchool Africa, the Nigerian edtech startup that trains Africans with in-demand tech skills, is expanding to Europe as it seeks to diversify its revenue streams and accelerate growth. The edtech startup will launch its first operations in Malta—after being part of a growth accelerator sponsored by the Malta government—and is hiring across its business and development, marketing, and content production teams. AltSchool’s expansion into Europe comes after it launched in Kenya in January 2024. While the startup was launched in 2021 as a virtual platform for people to earn diplomas in engineering, data, and business analytics, it has seen interest in its services grow beyond Nigeria. It now has a presence in the US and Rwanda, where it opened an office at the Norrsken Hub in 2023. Europe is the startup’s third-largest market, with learners from over 12 European countries, according to AltSchool CEO Adewale Yusuf. The company whose extensive curriculum covers business, data, engineering, media, and the creative economy will offer the same curriculum in Europe alongside AI and data analytics modules. AltSchool will take its first cohort of learners in Malta by 2025. Yusuf claims the startup is approaching profitability, and the fresh expansion will aid its revenue growth. AltSchool, whose business model in Africa has been primarily focused on online learning, will set up campuses in Malta as it introduces a hybrid approach where learners can have in-person learning sessions with tutors. “Because we’re an alternative school, there are some elements of the actual traditional school that work, and we want to take the best of both sides,” said Rachael Onoja, the startup’s head of innovation and market expansion. AltSchool will be exploring a B2B model alongside its B2C model in Europe by partnering with organizations to curate tailored training courses for their employees and assisting them with content development and learning infrastructure. The startup is close to closing one of those deals, according to Onaja. “We noticed that in Africa and even some parts of other parts of the world, some companies have been reaching out to us, asking for support for workforce development. So we want to see how we can scale that to offer enterprise licensing to businesses looking to upskill employees,” Onaja told TechCabal. AltSchool will compete with startups like Bloomtech in Europe. Yusuf claims the startup will differentiate itself through community and personalized learning. The edtech will use the same subscription model for Europe but will charge different price points. AltSchool has so far supported about 100,000 learners across eight African countries and twelve European countries. “Right now, we are partnering with local universities on ground, and also partnering with organizations, companies, and even the government to implement some attributes of our implementation plan, because it takes a village.”
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👨🏿🚀TechCabal Daily – The tale of the “sickman” of telco
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! ChatGPT may soon introduce ads to challenge Google’s ad-tech business. The AI startup continues to experiment with different revenue models to become a for-profit company. It has the user base, we know, but there are concerns about ads affecting the user experience. On a scale of 1–10, how much would this, if at all, impact your AI search experience? The rise and fall of 9mobile Inside South Africa’s red ocean e-commerce sector Safaricom Ethiopia laments unfair competition Glencore signs $110 million solar deal World Wide Web 3 Opportunities Telco The rise and fall of 9mobile Image Source: Faith Omoniyi/TechCabal When Etisalat entered Nigeria’s telecom scene in 2008, it aimed straight for the hearts (and pockets) of the youth with its catchy “0809ja for Life” campaign, fronted by music star Banky W. The strategy worked; Etisalat becameNigeria’s fourth-largest operator by 2016, boasting 22.5 million subscribers and a 14% market share. But then, the telecom’s fairy tale hit a plot twist—thanks to financial woes, naira devaluation, and infrastructure deficit. By 2016, Etisalat’s balance sheet had more holes than a bad network signal. After a dramatic exit of Etisalat in 2017, the company rebranded as 9mobile, hoping for a reboot. Instead, it faced mounting debt, leadership drama, and subscribers dropping faster than calls on a bad day. Fast forward to 2024, 9mobile’s market share has shrunk to a mere 2.1%. Now under new ownership by LightHouse Telecoms, there’s talk of a comeback featuring roaming services and leadership shakeups. But to truly reconnect with Nigerians, 9mobile needs more than plans—it needs the creative spark that once got everyone “talking.” Find out more in our article. 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. E-commerce Inside South Africa’s red ocean e-commerce sector Image source: Google E-commerce in South Africa is slowly becoming a red ocean market. In October, B2B e-commerce giant Jumia announced it would leave South Africa by the end of 2024, citing macro-economic conditions and intense competition. Takealot Group, another homegrown e-commerce mammoth, has complained about the competition. Its parent company, Naspers, admitted the company is under pressure from new entrants like Amazon and China’s Temu, whose aggressively low pricing has made them popular in the market. Takealot is battling a slow macroeconomic environment and shifting customer behaviour while trying to defend its market share. E-commerce is a volume game. If the gross merchandise value (GMV) and average order sizes are not increasing, then the e-commerce business is likely not growing too. In 2024, the South African Rand showed moderate stability in terms of currency volatility. However, e-commerce giants like Takealot are struggling with the effects of a sluggish economy, which has led to a decline in consumer disposable income. With consumers having less money to spend and e-commerce companies offering similar value propositions, businesses that stand out with unique offerings are more likely to attract customers. When Amazon entered South Africa in May 2024, frequent shoppers on Reddit said they flocked to the Jeff Bezos-owned company because they could buy books that were hard to find in local bookstores. Amazon also offered next-day delivery service, which was far better than Takealot’s average 3-day delivery wait. Chinese-owned Temu, after entering the market in January 2024, splurged on marketing and ran blitz adverts on Meta platforms. The company still has 420 active Meta ads running in this month alone. In Nigeria where Temu entered recently, it is running 1,500 of those ads. Temu spends a lot on acquiring customers; in 2023, it spent $2 billion on Meta ads, which is only justifiable if it has retention strategies in place to attract customers to buy repeatedly. Temu seems like it has found a home in Africa and it is likely because displacing Alibaba, which has China’s e-commerce market on lockdown, is a much harder task to undertake. It remains to be seen how its growing influence shakes up existing e-commerce players in Africa. 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! Telco Safaricom Ethiopia raise concerns over unfair competition Image Source: AndertoonsSafaricom Ethiopia, a subsidiary of the Kenyan telco giant, has raised concerns about competitors and market leader Ethio Telecom about its unfair pricing. Safaricom Ethiopia’s executives have lamented that Ethio Telecom users are charged higher tariffs and extra costs when making phone calls to subscribers of the Safaricom network. Safaricom Ethiopia hopes to sway public opinion as it tries to grow market share in Ethiopia’s telecoms market which it entered in 2022. it feels like déjà vu for Safaricom—but this time, Safaricom is on the receiving end. CEO Wim Vanhelleputte told Ethiopian lawmakers that Ethio Telecom’s preferential pricing and lack of interoperability are stifling competition, making it harder for Safaricom to grow its 5% market share. He argued that higher call pricing to Safaricom subscribers is a monopoly tactic that contradicts Ethiopia’s push for a liberalised economy. But here’s the irony: in Kenya, Safaricom has long been accused of similar monopolistic tendencies, especially with its fintech product, M-Pesa, which controls over 90% of Kenya’s mobile money market. Kenyan lawmakers have since been calling for M-Pesa’s separation from Safaricom to encourage fair competition. In the Kenyan telecoms market, Airtel Kenya have also lodged complaints against Safaricom for practices eerily similar to those it now opposes in Ethiopia. The stakes are high for Safaricom in Ethiopia, where forex losses and regulatory hurdles are already dragging on its profits. Its calls for fair
Read MoreNew owners, new hope? Inside 9mobile’s struggle to stay relevant
When Etisalat – now 9mobile – entered the Nigerian telecom market in 2008, the country’s 64 million total subscriber base was dominated by three operators: MTN Nigeria, Zain Nigeria (now Airtel), and Globacom. Despite the fierce competition, the UAE-based company identified a gap in the market—unserved young subscribers. To capture this audience, Etisalat partnered with Banky W, a rising Nigerian music star whose popularity had skyrocketed after his hit song Ebute Metta gained traction the previous year. The collaboration birthed the iconic “0809ja for Life” campaign, which resonated deeply with the youth and significantly boosted Etisalat’s market presence during its peak years. This innovative approach ushered in a new era of targeted marketing and consumer engagement in Nigeria’s telecom industry. In no time, Etisalat became the fourth-largest operator in the market. The brand also gained visibility through strategic marketing, sponsoring two seasons of the popular Nigerian Idol reality show and launching the “Etisalat Prize for Innovation and Literature.” These initiatives connected, and by August 2016, the network had 22.5 million subscribers and a 14% market share. Nearly all telecom operators have adopted aggressive marketing and rapid infrastructure deployment as their entry strategy. While these strategies help unlock market visibility and subscriber recruitment, funding and marketing must align with corporate governance and regulatory compliance to make the business sustainable. In the case of Etisalat, the struggling corporate structure unravelled the company. The collapse of a once-innovative telco In 2016, Etisalat’s fortunes collapsed when it defaulted on a $1.2 billion loan to refinance a $650 million facility and modernise its network. The default was largely due to the devaluation of the naira, which significantly increased the cost of servicing its foreign-denominated debt. Unlike its competitors, Etisalat’s revenue streams were constrained by its limited spectrum holdings, including the 1800 MHz and 900 MHz bands for 2G and 4G LTE, and the 2100 MHz band for 3G services. Additionally, its fibre infrastructure was inadequate, with only 4,620 kilometres of fibre compared to MTN’s expansive 39,972 kilometres, leaving Etisalat unable to compete effectively across Nigeria. The company also lost a key revenue source after selling 2,136 base towers to IHS Towers in 2014 to streamline operations and cut costs, reducing its ability to generate income from infrastructure leasing. 9mobile declined to comment on any part of this story. One person familiar with the matter who asked not to be named told TechCabal that a plan to raise additional funding in 2018 failed after a boardroom dispute. The Hakeem Bello-Osagie-led EMTS disagreed on the structure of the new board. The regulatory environment did not also help, as the operators were on edge over the threat of heavy fines. In October 2015, the Nigerian Communications Commission (NCC) fined MTN Nigeria ₦1.04 trillion ($5.2 billion) for failing to deactivate 5.1 million unregistered SIM cards on its network. It may have explained why Etisalat Group did not wait for the regulator to intervene in the loan negotiation or resolve the boardroom squabbles. The hasty transition to 9mobile Etisalat Group in UAE was so scarred by its entire experience with banks, board of directors and regulators in Nigeria that it gave an ultimatum to the Nigerian entity to cease using its name in one month. The first name put forward was 9jamobile, which was rejected, and they settled for 9mobile, according to three people familiar with direct knowledge of the matter. In July 2017, Etisalat Group, along with the United Arab Emirates Sovereign Wealth Fund owned by the Mubadala Development Company, abandoned its 85% stake and exited its Nigerian operations, giving room for Emerging Markets Telecommunications Services, which previously owned 15% of the company to take over. Rebranding to 9mobile in July 2017 was supposed to be a fresh start for the telco, but the new company faced two major challenges from the beginning. One was retaining Etisalat’s business arrangement with Huawei. The UAE-based company had a managed service agreement with the Chinese technology company. In telecommunications, managed service is when a third-party provider runs the operation, management, and maintenance of specific telecom services or infrastructure. It allows the customer, often a telecom operator, to focus on its core business operations. Etisalat regularly met its financial obligations with Huawei until it left the country, according to one person with knowledge of the matter. Huawei continued to provide managed services to 9mobile from 2018 to 2021 when it ended the contract due to mounting debt, the same person said. 9mobile also had an internal management crisis. The company’s board and executive managers were dissolved when Etisalat left and no new appointments were made. “The interim executive that 9mobile put to run and manage the relationship with Huawei couldn’t manage it,” one former employee said. A new brand with old problems In 2018, the NCC stepped in to stabilise the company for acquisition. Two bidders Globacom and Teleology Holdings were shortlisted. According to two people familiar with the matter, Globacom lost out to Teleology Holdings because the NCC reasoned it would create an undue advantage for the Nigerian-owned telco in the industry. Teleology Holdings won the bid in February 2018 but the marriage was short-lived. 9mobile had accumulated so much debt that the new owners needed to raise funding to keep the business afloat. 9mobile also owed several vendors, including Huawei. Teleology Holdings could not raise the $500 million needed to keep the company running. 9mobile’s service quality suffered because the company could not afford crucial infrastructure investments such as deploying fibre optic cables across the country and building additional base tower stations. NCC data shows 9mobile lost approximately 8.6 million subscribers between August 2016 and 2023. From January to October 2024, it lost an additional 10.4 million subscribers following an NCC industry audit that removed subscribers without proper NIN-SIM registration from the system. The telco currently has a 2.1% share of the market. Leadership turnover and operational disjoint 9mobile attempted to address the subscriber decline with leadership changes hoping the new CEOs would bring fresh ideas to move the company
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👨🏿🚀TechCabal Daily – Holcim’s billion dollar windfall
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy new month! The spotlight is back on compliance for fintechs and other financial service providers. Coincidentally, it is a running theme in today’s newsletter. SmileID, a fraud detection startup, revealed in its new eKYC report that it recorded 200 million digital identity verifications in Nigeria between October 2022 and October 2024. Fintechs, adapting to stricter KYC rules, are using biometrics and National Identification Number (NIN) verification, a combination that SmileID says is four times more effective, to detect and fight fraud. Read SmileID’s eKYC report. Nigeria’s Central Bank fines 29 banks $9 million CBN to penalise banks for cash shortages Holcim to sell its Lafarge business for $1 billion Nigerian BDCs to buy forex from authorised sellers World Wide Web 3 Job openings Banking Nigeria’s Central Bank fines 29 banks $9 million Image Source: Zikoko Memes It seems compliance professionals will remain in high demand in Nigeria’s financial services industry. At the annual bankers’ dinner on Friday, Nigeria’s Central Bank governor Olayemi Cardoso disclosed that 29 Nigerian banks were fined a combined ₦15 billion ($9 million) for violating anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. While this sends shock ripples across the entire financial ecosystem, it makes sense for the apex bank which has prioritised strong compliance under Cardoso. This move will likely push more fintechs—and even crypto fintech companies now close to being regulated—to ramp up compliance hiring. One of the reasons is the illicit money flows in Nigeria that led to tighter Know Your Customer (KYC) processes for fintechs, closer monitoring of remittance startups on enhanced due diligence (EDD) checks, and Binance’s regulatory troubles. Compliance professionals are having their moment. Four top Nigerian fintechs—OPay, Palmpay, Kuda, and Moniepoint—have hired a total of 24 compliance officers in 2024. Crypto companies are currently part of a framework that the country’s Securities and Exchange Commission (SEC) is using to regulate crypto. Customer due diligence is key to this process; the regulator is working with crypto startups to track how they collect and store user data and monitor crypto transactions. Some crypto startups, like Yellow Card, have made key compliance hires this past year. Compliance professionals are not the flashy hires like software engineers and product leaders that conventionally show signs of growth in fintechs. But they’re growing in relevance to the financial services sector in its fight against fraud. The penalty fines on the 29 banks will keep everyone on their toes as they try to tighten security. One message is clear: non-compliance is expensive. 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. Banking CBN to penalise banks for cash shortages Image source: Betty Laura Zapata/Bloomberg Long before Nigeria had a cash crunch—due to the ill-timed currency redesign—POS operators were often the last resort for getting cash. These days POS terminals seem to be the only option as there is a cash shortage at ATMs and banking halls. What was once a solution for many Nigerians is growing to become a nightmare as many Nigerians now rely solely on POS operators—and sometimes cope with their exorbitant charges—to get cash. On Friday, the CBN said it would begin penalising banks that fail to provide cash to customers at their automated teller machines (ATMs). The announcement will come as a relief for many Nigerians who struggle to access cash. The CBN has also set up a new monitoring system to ensure banks comply with the directive. Any bank that fails to measure up to the CBN’s new standards will be penalised—although the CBN did not disclose the kind of penalty. While the CBN is moving to address cash shortages in banks, its cashless policy also played a part in the cash shortages. The CBN in its bid to encourage cashless policy reduced money supply to banks, limiting weekly over-the-counter withdrawals at ₦500,000 ($298,000). The bank now plans to inject an additional ₦1.4 trillion ($833.5 million) into the economy to alleviate cash shortages at ATMs and bank branches. 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! Companies Holcim agrees to sell its Lafarge business in Nigeria for $1 billion Image Source: GoogleFew companies have nailed how to use mergers and acquisitions (M&As)—and divestments—as a strategy to grow and expand their businesses. When you think of M&A machines, if one tier-1 Nigerian bank doesn’t come to mind, remember the Holcim Group. When CEO Miljan Gutovic told the World Economic Forum in January 2024, “If [the company] can, [it] will do 30 deals if it makes sense,” few people took him up on his offer. Yet, the Swiss-based building conglomerate is about to pocket $1 billion from a divestment deal in Nigeria. Holcim, a majority shareholder in Lafarge Africa, agreed to sell its 83.8% shares at equity value to Chinese company, Huaxin Cement. The deal is expected to be completed in 2025, subject to regulatory approval. Lafarge is Nigeria’s third-largest cement maker producing up to 10.5 million tonnes of cement yearly at full capacity. Holcim finalised the Lafarge acquisition in 2015 after describing it as a “merger of equals.” The merger was both companies’ plan to put Lafarge back on the map. Since 2018, the cement maker has been locked in a perennial battle against second-placed BUA Cement and won on a few occasions. With a $1 billion exit, this is good business for Holcim which moves on to the next thing. Holcim has traditionally adopted a move-fast approach to its acquisitions
Read MoreCBN to penalise Nigerian banks for cash shortage from December 1
Nigeria’s Central Bank will penalise commercial banks that fail to provide cash to customers at their automated teller machines (ATMs) and branches, as the country faces a prolonged cash crunch. “We are conducting spot checks across deposit money banks, DMBs, and will impose penalties on institutions effective December 1, 2024,” CBN governor Olayemi Cardoso said at the annual bankers’ dinner in Lagos on Friday. Cardoso urged customers to report difficulties withdrawing cash from bank branches, and ATMs directly to the CBN through designated channels, adding the guidelines would be distributed widely to raise public awareness. “We also urge full regulatory compliance by all stakeholders, including mobile money operators and agents to promote digital transaction channels and improve service delivery,” Cardoso said. “Financial institutions found engaging in malpractices or deliberate sabotage will face stringent penalties.” Nigerians have faced a cash squeeze since 2023 after a controversial currency change. While the failed naira redesign project led to a boon in digital payments with winners like Opay and Palmpay, it created a cash shortage at ATMs and banking halls. A central bank policy capping weekly over-the-counter withdrawals at ₦500,000 also contributed to the cash shortage. However, the cash scarcity at commercial banks drove businesses to POS agents, who source cash from supermarkets, market people, and fuel stations. The growing reliance on POS agents has increased calls to regulate the agency banking business. In May 2024, the government ordered the country’s 1.9 million POS operators to register with the Corporate Affairs Commission (CAC). While the CBN has tried to wean Nigerians off their cash dependence to achieve a “cashless economy,” the governor said the regulator will provide adequate cash supply. “The CBN will continue to maintain a robust cash buffer to meet the country’s needs, particularly during high-demand periods such as the festive season and year-end,” Cardoso said. “Our focus is ensuring a seamless cash flow for Nigerians while fostering trust and stability in the financial system.”
Read MoreUNDP partners with Ethiopia’s industry ministry to launch pan-African tech hub
The United Nations Development Programme (UNDP) and Ethiopia’s Ministry of Industry have jointly launched the timbuktoo ManuTech Hub in Addis Ababa to support African startups with funding, mentorship, and technical resources. Ethiopia’s Ministry of Industry will provide the space for the hub, which will be completed in early 2025, and welcome its first cohort of startups from around Africa. Call for applications was announced at a public consultation of Ethiopia’s startup proclamation and participants will be selected bi-annually from across Africa. The hub aims to serve as a central point for driving change in the manufacturing sector through the integration of technology and partnerships. Selected startups will participate in a three-month hybrid accelerator program that includes training, mentorship, access to technology, and guidance to refine their solutions to meet the region’s manufacturing demands. The hub will also provide seed grants to the selected startups. The hub resonates with Ethiopia’s “Vision 2025” of becoming a manufacturing centre in Africa. In 2019, Prime Minister Abiy Ahmed unveiled plans to transform Ethiopia’s manufacturing sector, projecting an unprecedented GDP growth rate of 11% per year over the next decade. Ethiopia has established 18 industrial parks, investing $1 billion and offering incentives such as low wages and standardized energy costs to attract industries. Despite these efforts, the industrial parks have underperformed, preventing the country from achieving its manufacturing goals per a 2023 report by UNDP. Among other challenges to improve its manufacturing sector, achieving its ambitious goal hinges on training a sufficient number of skilled engineers and addressing technical and managerial expertise gaps to enable the country to compete with global manufacturing giants such as India and Bangladesh.
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👨🏿🚀TechCabal Daily – Hackers steal $17 million from Uganda’s central bank
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! Today’s edition is a bit longer than usual. We won’t elongate it further with a long lede. The only thing we’ll ask for here is that you share TC Daily online, and respond to this and future editions with your thoughts. Let’s dive in. Namibia orders Starlink to cease operations Ugandan Central Bank suffers $17 million hack Stanbic Bank Kenya loses $678,500 tax appeal Paystack introduces pay-by-account feature Funding Tracker World Wide Web 3 Job openings Internet Namibia orders Starlink to cease operations GIF Source: SNL When Elon Musk-owned Starlink announced its intention to expand into Namibia in 2023, it was great news for citizens. Economists and experts wrote lengthy papers addressing how the satellite ISP brought much-needed fresh air into the telco market with the promise of high-speed internet. In June 2024, the company applied for an operating licence in the Southern African country. Unfortunately, a significant setback occurred yesterday, as Starlink received an order to suspend its operations in the country. “The public is hereby advised not to purchase Starlink terminal equipment or subscribe to its services, as such activities are illegal,” Namibia’s communications regulator said in a statement. Starlink has been operating “illegally” in the country in the last 13 months. Users bought Starlink kits from resellers like Paratus Group and subscribed to roaming services from neighbouring countries like Zimbabwe. With the new restriction, Starlink, whose licence application has been under review, will stop selling or distributing its hardware kits in Namibia. Namibia, a nation of 2.6 million people, still struggles with broadband penetration. About 1.33 million Namibians have internet access, but only 30% of the population can access the 3G network. Namibia’s average download speeds stand at 58.31 megabytes per second (Mbps) while upload speeds are 10.07 Mbps. Starlink offers up to 150 Mbps. While Namibia’s mobile internet market has many players, it is a duopoly controlled by MTC and the state-owned Telecom Namibia, which have not met the internet demands of the country’s youthful population. Starlink sees an opportunity to upend the duopoly. But first, it has to tackle this setback and move quickly in its negotiation with the regulator. Elon Musk met with Namibia’s president Nangolo Mbumba in September. The country is also undergoing its most contested presidential election yet which could see its first female president assume leadership by March 2025. 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. Cybersecurity Ugandan Central Bank suffers $17 million hack Image Source: Bank of Uganda Africa’s tech ecosystem has been rocked by a series of cyberattacks this year, from the Ethiopian bank hack to Nigerian fintech and bank frauds. Even central banks have not been immune. In the latest attack, hackers, yesterday, stole UGX62 billion ($16.8 million) from the Bank of Uganda (BoU). A group of Asia-based hackers code-named “Waste” accessed the central bank’s IT systems and illicitly transferred the funds in early November, according to local media reports. The hacker group sent parts of the money back to Japan and the UK. Several employees of the bank claim that the hack was an inside job. The situation bears a striking resemblance to a recent ₦40 billion ($23.7 million) fraud committed by an employee at a major Nigerian bank. That employee diverted funds for two years unnoticed. This resulted in the firing of more than 120 employees, with the bank accusing them of laxity in carrying out their duties. Uganda’s central bank may likely follow the same route, firing those responsible within the company and sacking them. The bank is questioning several of its employees and the Ministry of Finance. While the Central Bank claims it is recovering the lost funds, the episode continues an uptick in cyber attacks in Uganda since COVID-19. In 2022, Uganda lost approximately UGX 15 billion ($4 million) due to cyber-related incidents, with financial institutions being primary targets. A hack on Uganda’s central bank reflects poorly on the state of cybersecurity in the East African country. The incident also continues a broader cycle of cybersecurity threats across the continent. As one founder noted, “Bad actors are often highly intelligent individuals. Banks must stay ahead by continually updating their technology and security measures.” 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 Stanbic Bank Kenya loses $678,500 withholding tax appeal Image: Banking Insights Stanbic Bank Kenya, the country’s seventh-largest commercial bank by asset base, has been locked in tax fights with the Kenya Revenue Authority (KRA). On November 3, the bank won a KES 450.27 million ($3.5 million) tax claim against the taxman over excise duty charges, but it could not replicate that victory in another withholding tax claim. Stanbic Kenya lost a tax appeal for KES88.4 million ($678,500) levied against it by the KRA. After the taxman conducted a tax audit on Stanbic Kenya from November 2021 to December 2022, it found that the bank owed arrears taxes for payments made to international card companies—Visa, MasterCard, and UnionPay—and failed to collect and remit withholding taxes to the government. Stanbic used these card payment providers to facilitate cashless transactions for merchants, offering services such as payment clearing, settlement, and access to the card networks’ systems. The KRA argued these payments were subject to withholding tax because they qualified as royalties for using the card networks’ trademarks and logos, as well as their management services to access their payment systems. Since the income was obtained from transactions initiated from Kenya,
Read MorePaystack deepens its pay by account feature with OPay integration
Paystack, the Stripe-owned Nigerian fintech, has integrated a payment option enabling merchants to accept payments directly from millions of OPay accounts. The integration continues Paystack’s strategy of building payment methods on bank transfers, which accounted for over half of all transactions it processed in 2023. This approach cuts out debit cards, which have long been a payment intermediary between merchants and consumers, as card payments carry additional costs that often inflate the final transaction amount. The “Pay by OPay” feature is one of the ways merchants can accept payments directly from bank accounts, as the fintech is integrated with 24 Nigerian commercial banks and fintechs like PalmPay and Kuda, enabling merchants to receive payments via bank transfers. However, the integration with OPay enables customers to make payments online directly through the OPay app or web interface. “It’s important for businesses to offer payment methods that their customers know and trust,” said Shola Akinlade, Paystack CEO. Exclusive: Paystack deepens its payment play with direct debit OPay gained prominence as a trusted payment option during a cash crunch in 2023 as Nigerians turned to fintechs after traditional banks struggled with the surge in online transactions. Paystack claimed the integration with OPay will allow customers to experience a 99.9999% transaction success rate. The fintech also partnered with the Nigeria Inter-Bank Settlement Scheme (NIBSS) to launch direct debits, allowing customers of most Nigerian banks to pay merchants through their accounts. In 2017, Paystack introduced “pay with bank transfer,” which allowed customers to complete transactions without using a debit card. This payment method has since ballooned, rising from under 13% of the company’s total transaction activity in 2021 to over 50% by the end of 2023. “OPay will continue to build on its strength, which is modern technology, to provide our customers with cutting-edge financial service offerings,” said Dauda Gotring, OPay’s MD. Exclusive: Paystack expands further into offline payments as Nigeria’s POS volume surges
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👨🏿🚀 TechCabal Daily – The Fast and the 5G-ious
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! Since we started writing the Entering Tech newsletter in 2022, one question has been recurrent in our Ask a Techie inbox: “How can I make money fast in tech?” And in every edition, we euphemise the answer with statements like “greatness takes time” or “build skills first”, but the question still pops up. Well, if you won’t believe us storytellers, hear it from the horse’s mouth. In yesterday’s edition of Entering Tech, 6 professionals earning well over $1,000/month—with one who’s earned $100,000/year—talked about how long it took them to earn “big” in tech. Here are their answers to “Can I get rich quick in tech?” Safaricom secures regulatory nod for Ziidi GT Bank apologises for weeks of service disruptions MTN Nigeria: The Fast and the 5G-ious Analysts hopeful of an end to interest rate hike World Wide Web 3 Opportunities Companies Safaricom secures regulatory nod for second money market fund Safaricom House. Image, CIO When a product does well, you do it twice. That’s the case of Safaricom, Kenya’s biggest telco, which is launching a second money market fund product. The company has received approval from the Capital Markets Authority (CMA) for the product called Ziidi. Five years ago, Safaricom launched its first money market fund, Mali. Mali currently manages an asset base of $23 million. The new product is a collaboration between Safaricom, Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited. It is expected to go live next week, according to people familiar with the matter. Safaricom’s strategy to expand into the money market fund sector is straightforward, since M-PESA already generates a significant portion of its service revenue—KES 77.22 billion ($596 million) in the first half of 2024, according to its latest financial report. Expanding M-PESA’s service offerings is a logical move to boost earnings, with declining profitsfrom voice and SMS services. Ziidi will likely integrate with M-PESA and allow customers to invest and withdraw earnings directly through their M-PESA wallets. We will get more details when Safaricom officially launches the product. 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. Banking GT Bank apologises for weeks of service disruptions Image Source: Yoruba TV If you are a GT Bank customer, you’ve likely dreaded opening your bank app in the past seven weeks. The Nigerian tier-1 bank, with over 32.8 million retail customers, has faced significant backlash as its migration to a new core banking software, Finacle, triggered service disruptions that are yet to be fully resolved. Across social media, complaints have poured in: incorrect account balances, unauthorized debit and credit alerts, and outright inaccessibility of services. For many, even routine transactions became a gamble, forcing customers to think twice before sharing their GT Bank account numbers. On October 14, the bank closed its 235 branches nationwide, citing delays in the migration process that took “longer than planned.” While technology overhauls are inherently complex, GT Bank’s execution has raised questions about its preparedness for such a significant shift. The migration to Finacle was necessary for GT Bank which needed a technology that allowed it to stay nimble and provide customisable core banking technology services that catered to all its banking needs. The migration was finalised in October 2024. Yet, the hiccups continued into November. After weeks of silence, GT Bank has now apologised to its customers for the network problems over recent weeks. It’s the bank’s first public statement since the service disruption started weeks ago. Unfortunately, the apology contained no information about improvements. For GT Bank, the road to recovery will require more than restoring technical stability. Transparent communication, improved customer service, and visible efforts to prevent future occurrences will be key. For now, customers can only hope the bank’s next announcement is not another apology, but a definitive end to the disruptions. 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! Telco MTN Nigeria: The Fast and the 5G-ious Image Source: GIPHY MTN Nigeria isn’t just leading the 5G race in West and Central Africa, it’s zooming past competitors like a Formula 1 car while others are still figuring out how to start their engines. According to Ookla’s Q2 2024 Speedtest Intelligence, MTN Nigeria hit download speeds of 95.62 Mbps and upload speeds of 17.01 Mbps. That’s not just fast; that’s hold-onto-your-hats fast. How did they do it? Well, MTN Nigeria splurged a cool $120 million on 5G infrastructure. The telco launched its 5G network in 2022, starting with seven cities, and now has over 2,100 sites covering 11% of Nigeria’s population. With 2.6 million subscribers hogging all the bandwidth, MTN owns 79% of the country’s 5G users. Airtel is trying its best with a respectable 4G median speed of 30.35 Mbps, but let’s face it: they’re bringing a knife to a 5G gunfight. MTN isn’t only ahead of its rivals, but also putting Nigeria ahead of South Africa in 5G penetration—because why stop at regional dominance when you can go continental? While 5G adoption in the region is still in its infancy, MTN Nigeria is the tech-savvy overachiever of the class, paving the way for a future where the only thing slower than their internet will be your grandma’s text replies. 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 → Economy Analysts hopeful of an end
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