GTBank apologises to customers for weeks-long disruption after core banking change
Guaranty Trust Bank, Nigeria’s cost-efficiency leader in commercial banking, has apologised to customers for a seven-week service disruption due to its core banking application switch in October. Customers have been unable to access their funds and complained about erroneous debit and credit alerts. “Your patience and support during this recent transition to a new core banking system, has been nothing short of extraordinary,” the bank said in a statement on Wednesday. The bank also confirmed TechCabal’s earlier reporting that it migrated to Finacle, a core banking application built by Infosys. It is the first time the bank has publicly apologised for the extended disruption that have caused considerable frustration to its 32.8 million retail customers. The scale of GTBank’s retail customer base and deposits—₦7 trillion—meant the disruption left many Nigerians unable to access their funds or complete transactions. “I could not access my funds for seven weeks. The banking app did not work at all and I had to use the web app which was inconvenient,” Oyegbile, a GTBank customer, told TechCabal. GTBank did not immediately respond to a request for comments. GTBank picked Finacle as its new core banking application in the fourth quarter of 2023 after some of the bank’s top management and tech team visited India to broker a direct partnership with Infosys, TechCabal previously reported. While the core banking change is critical to improving the bank’s service delivery, the service disruption has broken the fundamental promise of banking—ensuring customers can access their money whenever they need it.
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🚀Entering Tech #79: How to up your income in tech
From $150/month to $2,500/month in four years. 27 || November || 2024 View in Browser Brought to you by Issue #79 How to upyour income Share this newsletter Greetings ET people It’s probably advisable not to talk to Nigerians about scams and get-rich-quick schemes given how much they’ve been through with MMM, NNU, Racsterli, and [fill in the blanks]. But we have to admit: the “PH—GH scams” were among the most ridiculous in the pyramid scheme boom. To the uninitiated, the way it works is that you send money to a money-doubler (what they do with it is likely not your business), sit pretty for a few hours, and wait, and you receive double your investment amount. Nigerians have lost ₦500 billion ($299 million) to scams in the last decade, and today, the country still ranks as one of the most affected when it comes to investment scams. With tech testimonies flying around social media about people ‘hitting it big’ in tech, we wonder if the large tech migration is due to an inherent get-rich-quick syndrome. But is tech just an “investment vehicle” where you put in the time (PH) with the hope of cashing out (GH) and living the high life? We brought six high-earners to answer what it takes to make it big in tech. Spoiler: it’s not a skill issue. Faith Omoniyi, Emmanuel Nwosu & Timi Odueso Can you get rich quick in tech? Show of hands if tech is genuinely only a way out of the trenches for you. Don’t be shy. Image source: YungNollywoodWorking in tech has given us the opportunity to throw around cool words and phrases like “impact” and “making a change”, but there are people who are truly standing on business. One of them is our first guest, Kemi*, 29, who works as a tech marketing lead. She entered tech for the money. “I came in because I wanted the money. But two truths can co-exist but you have to get that money by exchanging value.” It took Kemi six years to get to where she’s at now. Our second guest, James*, 22, is a content marketer earning $2,500 per month. He believes tech is a get-rich-quick scheme—but it’s relative. “‘Quick’ is a relative term in the get-rich-quick context because if you consider the time you’d take to go from point A to point B in tech, versus other parallel professions like education or medicine, tech is the quickest.” “If you compare how long it would take a lecturer to go from ₦100,000 ($60) to ₦1 million ($591) versus someone in tech, tech is shorter; with 2–3 years of active hard work, you could manage to get yourself in opportunities where you have a clear pathway to [quicker] upward mobility.” But when the conversation changes to how quickly you can “make it” in tech, get-rich-quick no longer becomes a fair assessment of the tech economy. It takes time—but less time than in most traditional professions. It took James five years to earn $2,500 in tech, but he admits that some people may take shorter to reach that number or higher. But here’s a chart on how he’s done over the past four years. Pre-2022: $150–$200/month ($400 on really good months) Early 2022: $500/month job Late 2022: $1,500/month (working 2 jobs) 2023: $2,000/month 2024: $2,500/month *Newsletter continues after break Are you stuck in your career? Are you planning to transition into tech, high-paying business analysis roles and land remote opportunities? The Business Analysis Summit 2024 is your chance to achieve that. Join Eno Eka, renowned business analysis coach, as she reveals how to make that transition and position yourself for global opportunities. This summit is for you if you’re just starting or looking to level up your career. Find out more here. The long haul Tony* (not Stark), who earns between ₦1 million and ₦3 million monthly, says it takes a mix of unique skills. He says his rare ability to write, design, and animate created a very niche design industry for him to own. “I started designing five years ago; professionally, I have 4 years of experience. Design was something I was just curious about, until eventually, poverty struck, and design was the only thing I had,” said Tony. How you make it in the tech industry will depend on both the factors you can control and the ones you cannot control. GIF Source: FootcolicOtis*, a product designer with four years of experience, earns between $6,000 and $9,000 per month. “The game changer for my tech career was being recognised by the owner of Figma, Dylan Field, in 2022. He spotlighted myself and 29 other designers from all over the world. Otis contributed, along with his friends, to a Figma design resource that has received recognition in the design community. While that changed his career for good, it was competence that kept him in it, he says. 2021: $10,000/year 2022: $35,000-$50,000/year 2023: $40,000-$60,000/year 2024: $25,000/year Otis’ Annual Earning Progression“I don’t earn as much as I used to, because the industries I built my skills around—fintech, web3 and real estate—have taken a hit over the years and my income with it. My income doesn’t entirely go into my pockets because I work with other designers on projects,” said Otis. Patience + Luck + Skill = Profit Johnny*, a customer success engineer, earns between $1,000 and $3,000 every month. He says he showed his work a lot online, and one day, he got a referral. And Kingsley*, a content marketing manager with six years of working experience, says you need luck and patience more than skill to make big tech money. Today, he earns $2,500 per month. “Before joining tech, I believed that success would come easily if you simply put in the work. However, experience has taught me that it’s not that simple. To succeed in this industry, you need a great deal of patience, perseverance, and even some luck,” said Kingsley. 2018: ₦20,000/month 2019: ₦160,000/month 2021: $1,500 + ₦360,000/month (managing a
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MTN Nigeria’s $120m 5G investment delivers fastest internet speeds in West and Central Africa
After investing over $120 million in the 5G network, MTN Nigeria now has the fastest download and upload speeds in the West and Central African (WCA) region, according to the latest Ookla Speedtest Intelligence data. In Q2 2024, the telco’s download speed rose to 95.62 megabits per second (Mbps) – a standard unit of measurement for internet speed. It also recorded an upload speed of 17.01 Mbps, its highest so far. This is great news for MTN Nigeria’s 2.6 million 5G subscribers who need high-speed internet. It will also position the telco as a more attractive option for potential subscribers. MTN Nigeria holds a 50% share of the country’s telecom market. MTN Nigeria leads other subsidiaries within the MTN Group, including MTN Ghana, MTN Benin, MTN Côte d’Ivoire, and MTN Cameroon in download and upload speeds. The telco also leads competitors such as Airtel with a median download speed of 30.35 Mbps and upload speed of 10.28 Mbps, the highest for 4G networks as of 2022. The telco launched its 5G network in September 2022. Initially covering seven major cities—Lagos, Abuja, Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri—the network expanded significantly within a year. By 2023, MTN Nigeria extended 5G coverage to 11% of the population, backed by an infrastructure investment of over $120 million. MTN Nigeria has deployed over 2,100 5G sites nationwide since its launch. “The impact of 5G has so far been limited to Nigeria as it is still in its early stages in most of the region. MTN is keen to expand 5G coverage to the rest of its footprint, following the examples of Nigeria and Côte d’Ivoire, while continuing to invest in its 4G network infrastructure,” Karim Yaici, lead industry Analyst at Ookla, said. MTN Nigeria did not immediately respond to requests for comments. According to Ookla Speedtest Intelligence, 5G penetration in Nigeria grew from 17.2% in Q1 2023 to 35.70% in Q2 2024, surpassing South Africa’s 31.6%. While MTN Nigeria and Airtel have commercially launched 5G services, MTN leads with the most extensive network coverage. ISP Mafab Communication, which secured a 5G license in December 2021, is yet to roll out its service. As of September 2024, Nigeria had 3.3 million 5G subscribers, representing 2.19% of the country’s 154.9 million active mobile subscribers, according to the Nigerian Communications Commission (NCC). MTN dominates the 5G market with 2.6 million subscribers, accounting for approximately 79% of 5G users in the country.
Read MoreSafaricom receives regulatory approval to launch second money market fund, Ziidi
Kenya’s Capital Markets Authority (CMA) has approved Safaricom’s second money market product, Ziidi. The product, which will be offered in partnership with Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited, directly answers Kenya’s demand for accessible digital investments. In 2019, Safaricom launched its first money market fund (MMF), Mali with Genghis Capital, a Kenyan investment bank. Mali’s asset base grew to KES 3 billion ($23 million) in November 2024. “Zidi Money Market Fund is expected to empower unit holders by offering accessible and diversified investment options as part of the broader National Government’s financial inclusion strategy,” CMA said in a statement on Wednesday. When unveiled next week, Safaricom’s Ziidi will target Kenya’s expanding retail investment market driven by smartphone adoption and digital literacy. Kenya has over 35 million active smartphones compared to 30 million feature phones. Ziidi will compete with banks, insurers, and fintechs by channeling money market deposits into low-risk investments like government bonds and T-bills. Money market funds offer a low-risk option for savers dissatisfied with low bank rates. Ziidi will use Safaricom’s network to target unbanked and underbanked users, expanding its financial services and diversifying revenue beyond telecoms. Safaricom’s mobile money product, M-PESA, is its biggest service revenue driver, earning KES 77.22 billion ($596 million) in the first six months of 2024. M-PESA has been key to driving financial inclusion in Kenya. Ziidi MMF is the latest Safaricom product embedded into M-PESA’s offerings to support the mobile money product’s growing service revenue to offset challenges in its voice, data, and SMS business. Ziidi’s interest charges and other tax obligations have not been disclosed. However, Safaricom’s Mali product allows investments from KES 100 ($0.77), with a daily cap of KES 300,000 ($2320) and top-ups ranging from KES 100 ($0.77) to KES 70,000 ($540). Withdrawals are instant to M-PESA wallets. Fees include a 2% annual fund manager fee, 0.2% trustee fee, 0.15% custodian fee, and a 15% withholding tax on interest earned.
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JAMB 2025/26 recommended texts for Literature in English
The Joint Admissions and Matriculation Board (JAMB) has outlined the official texts for candidates preparing for the Literature in English exam in 2025/26. The selection includes African and non-African works across drama, prose, and poetry, with each text carefully chosen to enrich candidates’ understanding of literary analysis, themes, and cultural contexts. Recommended anthologies for general study regarding the JAMB 2025 literature texts JAMB has highlighted several anthologies and critical texts that cover a broad range of topics in Literature in English. These resources offer essential background reading and practice exercises: Anthologies: Gbemisola, A. (2005) – Naked Soles. Ibadan: Kraft. Hayward, J. (ed.) (1968) – The Penguin Book of English Verse. London: Penguin. Johnson, R. et al. (eds.) (1996) – New Poetry from Africa. Ibadan: UP Plc. Kermode, F. et al. (1964) – Oxford Anthology of English Literature, Vol. II. London: OUP. Nwoga, D. (ed.) (1967) – West African Verse. London: Longman. Senanu, K.E. and Vincent, T. (eds.) (1993) – A Selection of African Poetry. Lagos: Longman. Soyinka, W. (ed.) (1987) – Poems of Black Africa. Ibadan: Heinemann. Critical Texts: Abrams, M.H. (1981) – A Glossary of Literary Terms (4th Edition). New York: Holt Rinehalt and Winston. Emeaba, O.E. (1982) – A Dictionary of Literature. Aba: Inteks Press. Murphy, M.J. (1972) – Understanding Unseen: An Introduction to English Poetry and the English Novel for Overseas Students. George Allen and Unwin Ltd. Drama texts regarding the JAMB 2025 literature exams African Drama: Harvest of Corruption by Frank Ogodo Ogbeche. Non-African Drama: Othello by William Shakespeare. Prose texts for the JAMB 2025 literature exams African Prose: Faceless by Amma Darko. Non-African Prose: Native Son by Richard Wright. Poetry Selections African Poetry: Vanity by Birago Diop. Ambush by Gbemisola Adeoti. Piano and Drums by Gabriel Okara. The Dining Table by Gbanabam Hallowell. The Panic of Growing Older by Lenrie Peter. The Anvil and the Hammer by Kofi Awoonor. Non-African Poetry: Crossing the Bar by Alfred Tennyson. The Pulley by George Herbert. The School Boy by William Blake. The Proud King by William Morris. Where to Download or Obtain the JAMB 2025/26 Literature Texts Candidates can access the JAMB-recommended texts for Literature in English through several reliable sources. Unlike the main JAMB Use of English text, the 2025 Literature in English texts may not be accessible on the JAMB website. Here’s where to find these essential resources: 1. Bookstores and online retailers Physical bookstores: Most major bookstores, especially those specialising in academic texts, stock the JAMB 2025/26 literature selections. Notable bookstores in Nigeria, like Laterna Ventures, Glendora, and University Press bookstores, often carry these texts. Online retailers: Websites such as Amazon, Jumia, and Konga offer both physical and e-book versions of many of the recommended titles, including anthologies and critical texts. 2. Educational libraries and University bookstores Many universities and secondary school libraries in Nigeria keep copies of JAMB-recommended texts. Students may borrow these resources for personal study or access them on campus bookstores, which often carry academic materials in line with JAMB requirements. 3. Digital libraries and educational platforms Google Books: Offers digital copies of many classic texts. While some are available for free, others may require purchase. Project Gutenberg and Open Library: These platforms provide free access to public domain works, especially older literature. Candidates may find some non-African selections here.
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👨🏿🚀TechCabal Daily – Kenya’s move to protect workers’ rights
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! We’re still reeling from Big Cabal Media’s 10th anniversary. Over the past decade, the parent company of TechCabal and Zikoko has been a pioneer in African media, producing content that has informed, entertained, and empowered millions. You can also celebrate with us by reading the rest of CEO Tomiwa Aladekomo’s letter and watching the stories behind our success here. Kenyan lawmakers want to tighten oversight of outsourcing firms Nigerian banks raise $1 billion from the capital market StartupFuel wants to help VCs fight AI misinformation Nigeria raises interest rate to 27.5% World Wide Web 3 Opportunities Regulation Kenyan lawmakers launch stringent oversight of outsourcing firms Image source: Sama Kenya’s parliament is considering a new Business Law (Amendment) Bill 2024 to address worker conditions in the growing business process outsourcing (BPO) and IT-enabled services (ITES) sector. This follows a September court ruling that allows BPO workers to sue companies locally, sparked by complaints from former Sama employees who said they were underpaid and overworked moderating harmful content for Meta. Sama formerly provided content moderation services for social media platforms and AI companies. In a report by 60 Minutes, former Sama workers claimed they were paid just $2 an hour to moderate harmful content for Meta, a far cry from the $12.5/hour that OpenAI paid the company. “If big tech companies are going to keep doing this business, they have to do it the right way. It’s not because you realise Kenya is a third-world country, so you say ‘this job I’d normally pay $30 in the US, but because it’s Kenya, I’ll pay $2,’” said one ex-worker in the video posted by 60 Minutes. The revelation also highlights the realities in the job market for third-world countries where some foreign employers opt to find cheaper labour in Africa, usually to save overhead costs. The disgruntled ex-workers have been arguing that Sama did not provide fair compensation, adequate support and protection for them, or protect them from viewing and moderating the depraved content that never made it to the internet. The new bill seeks to force BPO and ITES employers to provide all necessary tools for their workers, ensuring that they can’t dodge responsibility by claiming they aren’t the direct beneficiaries of the services provided. It will improve working conditions and align Kenya with global labour standards. Yet, as Kenya’s outsourcing industry grows, the bill could also push big players like Sama, Majorel, and Telus—that employ thousands of Kenyans—away. Time will tell if it sees the light of day. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Banking Nigerian banks have raised $1 billion from the capital market Image Source: TechCabal When the Central Bank of Nigeria (CBN) raised the capitalisation requirements for the country’s biggest banks in March 2024, it left them with few options: raise fresh capital, merge, or downgrade licences. The apex bank directed banks with international operations to raise ₦500 billion ($295 million), national banks ₦200 billion ($118 million), and regional banks ₦50 billion ($30 million). The banks instantly responded. Fidelity Bank, a tier-2 bank, led the way with wild marketing campaigns. “Own a slice” became a call to action as much as it was a promise. Soon, other banks followed. Recently, tier-1 banks Access Bank, GT Bank, and Zenith Bank concluded their capital raises through public offers and rights issues. First Bank and United Bank of Africa, the remaining tier-1 banks, are in the market raising money. As the FUGAZ banks—an acronym for the tier-1 Nigerian banks consisting of the first letters of all five banks—listed their offers on the Nigerian Exchange (NGX), sceptics, through X, ran polls to gauge the public’s interest in these offers. The numbers say yes. So far, Nigerian banks have raised over ₦1.7 trillion ($1 billion) from the capital markets, according to the Director General of Nigeria’s Securities and Exchange Commission (SEC) Emomotimi Agama. There is likely the investor instincts kicking in for many of these retail investors. It also shows that Nigerians will continue to invest in the capital market regardless of the historic scepticism and trust deficit. 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! Startups StartupFuel wants to help VCs fight AI misinformation StartupFuel CEO Ashley Martis/Image Source: TechCabal It’s hard to imagine the world now without artificial intelligence. These days, it’s normal to read a news headline announcing the launch of yet another large language model (LLM) startup created to solve one problem or the other. Throughout 2024, different articles on the internet tried to theorise how pioneer OpenAI is shipping features at breakneck speed. It was a decade of LLM development happening in months. While these startups have been responsible for “democratising” access to artificial intelligence, it has also given way to misinformation. Artificial intelligence (AI) models are trained on large datasets collected publicly from the internet, where inaccuracies and data biases are rampant. Since there is currently no way for these models to separate fact from fiction, or verify information in their training set, they end up repeating what they’ve learned. AI misinformation is generally a problem in different industries. But for VCs, the impact is profound as it can alter funding decisions. Let’s paint a scenario: a founder fundraising needs information about their market to show investors the size of the opportunity and trajectory of the industry. They turn to an AI chatbot. Due to its lack of objectivity, the
Read MoreNigeria’s Central Bank raises interest rates to 27.50%
Nigeria’s Central Bank has raised interest rates to 27.5% in its final meeting of the year after inflation quickened in October. The monetary policy committee lifted the benchmark interest rate by 25 basis points. “The considerations of the meeting were held on the backdrop of renewed inflationary pressures as the headline food and core measures rose year on year in October 2024. Members therefore agreed unanimously to remain focused on addressing price developments,” Governor Olayemi Cardoso said at a media briefing on Tuesday. The rate hike comes after Nigeria’s economy accelerated more than expected in Q3 2024. Nigeria’s GDP grew by 3.46%, driven by the services sector. The MPC has lifted the benchmark rate by 8.75% percentage points since the start of the year to crush inflation. Nigeria’s headline inflation quickened to 33.8% in October after a hike in fuel prices and floods in food-producing areas affected consumer prices. Most economists surveyed by TechCabal predicted a 25 basis point increase. The new interest rate hike could see the net interest income of Nigerian banks get a further boost. The country’s four largest banks—Guaranty Trust Holding Co., Zenith Bank Plc, United Bank for Africa Plc, and FBN Holdings Plc—all reported that net interest income had more than doubled. “[The hike] could lead to an increase in the loan default rate, thereby impacting the non-performing loans ratio,” said Samuel Onyekanmi, an analyst at Norrenberger. Analysts warn that Nigeria’s aggressive rate hikes without complementary fiscal efforts may not be enough to tame inflation. “To put inflation to bed for good, the government needs to step up and reduce the structural vulnerabilities that have brought about inflation spikes. If that doesn’t happen, CBN is simply swimming against the tide, and the inflation fight will have no end in sight,” said David Omojomolo, Africa economist at London-based Capital Economics.
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👨🏿🚀TechCabal Daily – The curious case of cyberattacks in Africa
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! The faceoff between Google, the fifth most valuable company in the world, and the US Department of Justice over the former’s alleged monopoly in the ad-tech market is coming to a close soon. In September 2023, the DOJ accused Google of monopolising the ad-tech market and stifling competition. Google denied those claims, calling them outdated. Yesterday, after a two-week trial, both sides had 90 minutes to give final addresses on their cases. Now, all that’s left is the judge’s decision. The DOJ remains hot on Google’s tails to break up its Chrome browser, which could give other players like DuckDuckGo and new entrant OpenAI—that is considering making its own browser—a window into the search market. South Africa battles cyberattacks Union Bank of Nigeria increases staff salaries by 40% Egypt to tax imported mobile phones World Wide Web 3 Opportunities Cybersecurity South Africa’s battles with cyberattacks Image source: Google We may sound like a broken record when we say cyberattacks are a growing threat across Africa, but the numbers don’t lie. South Africa alone—the most targeted African country—accounted for 22% of all attacks on the continent between Q1 2023 and Q3 2024. Egypt suffered 13% of these attacks, while Nigeria and Algeria remain key targets for hackers. On the dark web, South Africa dominated mentions, accounting for 25% of all forum posts, showing a sustained interest from cybercriminals. These details are contained in a report by cybersecurity firm Positive Technologies. Per the report, government entities and financial institutions were prime targets for cyberattacks, with 22% of these attacks being successful. In 2024 alone, South Africa’s public diagnostic provider, trade commission, and intellectual property records were all breached in separate cyberattacks. Hackers employed advanced persistent threats (APTs) which involve lurking around an organisation’s data hierarchy and remaining undetected for a long time. These complex hacks have hit South Africa hard in the last few years. In July 2024, South Africa’s public works minister Dean Macpherson revealed that the country has lost R300 billion ($16.5 million) through cyberattacks in the last decade. Another disturbing revelation from the report is how hackers are forming colonies on the dark web. This allows them to share data of African government entities among themselves for free. They also sell access to company networks for around $2,970 (R53,784). Hackers are also targeting Africa’s industrial and telecom sectors—especially telcos—trying to steal sensitive information they use to do more damage on other fronts. In 2023, Nigeria’s Globacom suffered a DDoS attack which left employees unable to access company systems for weeks. In September 2024, South Africa’s Telkom suffered a data breach. The real danger is how these bad actors share data for free as if one is rooting for the other to succeed. If companies are learning to fly without perching, these bad actors are learning to shoot without missing. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Banking Union Bank of Nigeria increases staff salaries by 40% Image Source: Oriental News When we reported in September 2024 that GTBank, Nigeria’s cost-efficient leader in commercial banking, raised staff salaries by 40%, a colleague said it could prompt other banks to consider similar raises. That prediction was right. Two months later, Union Bank of Nigeria, a tier-2 commercial bank, increased salaries by 40% for all employees from executive trainees to general managers. The bank hopes the increase will help its over 2,000 employees cope with Nigeria’s rising cost of living, thanks to a rapidly-devaluing naira and inflation. Executive trainees, who previously earned a ₦260,000 ($153) salary, will now take home ₦364,000 ($215) monthly. Senior banking officers (SBO) will now earn ₦20 million ($12,000) in annual gross salary. No better time to start a banking career, if you ask us. The revised compensation is a win-win for Union Bank. It is great news for employees whose salaries have been pressured by the macroeconomic condition. It also helps the bank to remain competitive in an industry where employees often move between banks for better pay. The salary bump will also increase what Union Bank spends on employee overhead costs. In 2023, the bank spent ₦34 billion ($20.2 million) in paying salaries alone. With the 40% increase, its new wage bill could reach ₦47.6 billion ($28.2 million) 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 Egypt to tax imported mobile phones Image Source: EgyptToday When a country wants to encourage local production and reduce dependence on imports, it raises customs and tax fees. Egypt is doing just that with a new tax structure on imported smartphones. Under the new rule, mobile phones could be subject to customs and tax fees totaling 37.5%, including a 5% development fee. Once a new phone is activated with a SIM card, users will have a three-month grace period before being required to pay these fees, or risk having their service suspended. Egypt’s motivation is two-fold. First, the government wants to deal with the indiscriminate smuggling of smartphones with about 99% of smartphones operating in Egypt being unregistered. Second, it wants to encourage local smartphone manufacturing where foreign investments are increasing, and local factories are growing in number. It has been partnering with top original equipment manufacturers (OEMs) in the last two years. In 2023, Chinese phone makers Samsung, Vivo, and Finland’s giant Nokia established three production factories in Egypt due to its strategic location and access to the Middle East and Arab
Read MoreStartupFuel launches tool to help VCs identify AI misinformation during due diligence
StartupFuel, a Canada-based AI due diligence company, has launched DiligenceGPT, a tool designed to help venture capital firms address AI misinformation and bias in due diligence for African startups. The AI-powered tool helps VC firms to sift through and analyse large datasets provided by founders and compare them against industry standards and public data. DiligenceGPT will provide investors with risk ratings, relevancy fit, and data integrity scores to guide their funding decisions. “There is no doubt that there is a rise in talent, so [DiligenceGPT] aims to empower local entrepreneurs in Africa, helping them expand their reach, attract investment, and ultimately contribute to sustainable economic development in the continent,” the company said. Self-described as the “LinkedIn and Bloomberg for VC,” StartupFuel provides due diligence insights on startups on its directory list and presents them as an “SAT” score to investors. This score is benchmarked against their business model and market, traction, barriers, competitors, and financials to help founders select their winners. “DiligenceGPT is our commitment to reducing bias, providing greater transparency, and utilising AI to enhance the current process,” said Ashley Martis, StartupFuel CEO. AI misinformation contributes to funding biases. Large language models (LLMs) make it easier to manipulate data about market sizes and serviceable markets in different industries, for instance. Inaccurate or incomplete information provided to these investors can slip through unnoticed, creating challenges for them and sometimes, skewing investment decisions. “The industry is ranked with subjective biases, and a growing need to validate large amounts of private data that can be incorrect, exaggerated, and/or molded to tell a false narrative,” the company said in a statement. Founded by Ashley Martis in 2017, StartupFuel offers an AI-driven solutions market for venture capital. In 2020, the company raised an undisclosed amount of funding in a round led by ID8 Investments, with participation from Aurum Holdings, according to Crunchbase. StartupFuel has also expanded through strategic acquisitions. In 2019, it acquired Startifi, a social network for startups, and in 2021, acquired Uncrowd.io, a platform supporting underrepresented founders. It counts Techstars and Village Capital as clients. The AI startup faces stiff competition from more established players in venture capital due diligence, such as Crunchbase and Tracxn, which offer similar deal flow analysis tools for investors. Yet, StartupFuel is betting on its technology. The AI startup has trademarked its DiligenceGPT tool and filed a patent awaiting approval, to build its moat on the technology aspect of its operations.
Read MoreKenya proposes new law to hold outsourcing firms liable for employee claims
Kenya’s parliament has proposed a Business Law (Amendment) Bill 2024 to regulate business process outsourcing (BPO) and IT-enabled service (ITES) companies amid growing scrutiny of worker conditions. This follows a September 2024 court ruling allowing BPO firms to be sued locally. It was prompted by former Sama employees who alleged they were moderating harmful content for clients like Meta under exploitative conditions and with inadequate safeguards. Three Sama employees claimed in one report that they were underpaid at $2 per hour, far below the $12 proposed by business partners. The new bill proposes that employers provide all tools necessary for employee duties, regardless of ownership, and bars them from evading accountability by claiming they are not direct service beneficiaries. While this could curb exploitation and align Kenya’s labour standards with global norms, the proposed law raises concerns, one commercial lawyer told TechCabal. The bill proposes that BPO firms should offer “necessary tools” for their employees and suggests rigid liability provisions that could deter outsourcing giants wary of increased operational risks and compliance costs, the same lawyer said. “An employer who operates as a Business Process Outsourcing company or who is a provider of Information Technology Enabled Service shall be responsible for any claim raised by an employee in relation to the contract of service and shall not, in its defence to such claim, assert that it was not, in fact, the beneficiary of the services of the employee,” part of the bill seen by TechCabal reads. Sama previously provided content moderation services to Meta before exiting the business amid legal disputes with over 180 former employees. These employees sued Sama for unfair dismissal and alleged that the company failed to protect them from the psychological toll of moderating harmful online content. Sama has since stopped moderation operations and shifted focus to AI labeling services for technology giants such as Microsoft, Google, and the e-commerce platform Walmart. Meta is also being sued for an alleged algorithm that fueled ethnic violence in Ethiopia, another lawsuit claims. Petitioners, represented by Mercy Mutemi of Nzili and Sumbi Advocates, are seeking to ban harmful content recommendations and establish a $1.6 billion victim fund. Balancing worker rights with business competitiveness is critical, another legal expert told TechCabal. Without proper implementation, the bill risks stifling Kenya’s rising prominence in the global outsourcing industry, the expert said. Both Sama and Majorel have employed over 3,000 Kenyans.
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