Mr Tijani Goes to Abuja
In 1939, Columbia Pictures released Mr. Smith Goes to Washington, a political satire about an idealistic new senator battling government corruption. Though American politicians criticised the film’s harsh portrayal, it became a classic. By 1989, it was selected as one of the first 25 films for preservation in the U.S. National Film Registry. In 2023, President Bola Tinubu appointed Bosun Tijani as his Minister for Communications, Innovation and Digital Economy. His appointment has been widely interpreted as an olive branch to the tech community and young Nigerians, a demographic Tinubu struggled to win over during his presidential campaign. Tijani has previously been outspoken in his criticism of Tinubu and the ruling All Progressives Congress, which made his confirmation process uncertain. However, after a carefully worded apology, he secured his ministerial appointment. Tijani is the fourth minister to hold a similar portfolio since its creation in 2011. Goodluck Jonathan named Omobola Johnson as Minister of Communication Technology. While Muhammadu Buhari stuck with the conventional ministerial Communication portfolio for Adebayo Shittu, he reverted to Communications and Digital Economy for Isa Pantami. Tijani might claim to be the first ecosystem professional to assume this post. Johnson was the country head of Accenture when she was made minister, Shittu was a career politician, and Pantami was an academic, cleric and agency executive before assuming the role. Tijani is well known as the co-founder of CcHUB, an accelerator based in Yaba, the home of Nigeria’s tech ecosystem. But Mr Tijani did not come to Abuja to simply implement policies–a common challenge that has affected many technocratic minds invited to public service. In his words, he seeks to build and change the idea that people cannot be in government and deliver effectively. Aware of his responsibilities to multiple constituencies and his role as one of the few younger ministers, he’s striving to balance technical expertise with political acumen. Yet, whether or not he has balanced these different roles and expectations is an entirely different question. Welcome to Abuja Government buildings often mirror public perception: dull, static, and uniform. Newer structures look a bit modern but, over time, will inevitably follow the same pattern. The fact that Abuja is a government city, the move designed to cater to Nigeria’s expanding government, means that this is the prevailing view. However, with the influx of civil society, international organisations, and lobbying groups, there’s a burgeoning vibrancy beyond mere bureaucracy. But the expectation can still be met when one sees and enters, the structures that determine policy and direction for an estimated 200 million people. Yet, the office space where we meet Mr Tijani for an interview is different from a conventional civil service conference room or hall. The abrupt transition from the sterile corridor to a vibrant, open-plan office is striking. There is a large conference table in the middle, some sofas and chairs in the corner, and office cubicles in a fairly open space. Young staffers come to the table at different points to review different reports, charts and videos. Based on the setting alone, nothing has changed about him being in Abuja, one year after. This is not your average ministry, but Tijani is not your average minister. His office mirrors the spirit of the Yaba he’s coming from, far removed from Lagos’s corporate stiffness or Abuja’s bureaucracy. Before our meeting, we were advised to temper our expectations. Tijani had just returned from Beijing and was operating on little rest. Throughout our conversation, he’s also aware of how, to some, he has failed to live up to expectations. He approaches government the way a start-up founder does, mindful that a rejection or a failure is simply a chance to learn, re-strategise and pivot. The lingering question is if this is possible in Nigeria’s government, where technocrats have notably been frustrated. ` Before Abuja, there was Yaba Tijani co-founded Co-Creation Hub, a cornerstone of the Yaba tech ecosystem. He recalls advocating for fibre installation and making the case to then-Governor Fashola and MainOne about Yaba’s potential. He speaks about organisations being formed within CcHub – including Andela and BudgIt – without receiving any financial incentive when they eventually took off. CcHub provided office space and an environment for this to grow. As a forerunner in the tech ecosystem, this status would be enough for serious consideration for any government role focused on this sector. When Tinubu named his cabinet, many viewed it as a reward to political allies who had supported his contentious election—a lineup filled with former governors and campaign staffers. However, a handful of people with technical expertise, including Tijani, who had his experience co-founding a well-known tech accelerator, were seen as opportunities by citizens to hope for a difference. Presidents typically don’t assign portfolios before Senate confirmations, but it was widely anticipated that Tijani would oversee the digital economy, given his background. His inclusion signalled a possible alignment of government policy with the perspectives of the tech community. However, Tijani’s confirmation was not guaranteed. After all, a nominee had been swapped, and others had been dropped for security reasons. One of them was Nasir El-Rufai, a former governor and minister, who had played a major role in the campaign and spent the year outside the government. In Tijani’s case, it was not security; social media was the risk. Tweets that he had made in the past, critical of former President Muhammadu Buhari and Tinubu, were recycled online after his nomination became public. During his ministerial screening, senators referred to one stating, “Nigeria is a bloody expensive tag”. Tijani ate humble pie, apologising and spinning his tweets as being “out of anger and patriotism.” It was enough to get him a seat at the table and the chance to set about changing a sector he was only too well familiar with. “Abuja is a reflection of our society.” He has had to grapple with different battles and impressions since. Well-known tech ecosystem players have criticised him on social media, his tweets supporting controversial politicians have
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👨🏿🚀TechCabal Daily – JP Morgan is in town
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! Nigeria’s National grid may have collapsed again. Please spare a thought for remote workers in the country today. Away from our struggles in Nigeria, our reporter Ngozi Chukwu is live at GITEX. If you are attending, please say hello! We’ll bring you updates from Dubai. Inside JP Morgan’s Kenya Play Starlink and Safaricom lock horns in Kenya Lendsqr launches ₦1 billion fund for sub-lenders Dubai traffic blues and dejavu at GITEX World Wide Web 3 Jobs Economy Inside JP Morgan’s Kenya play Image Source: Empower Africa After 12 years of wait, US banking giant JP Morgan Chase has secured an operating licence from the Central Bank of Kenya (CBK) to open a representative office in Nairobi. While the representative office won’t be able to handle transactions like a regular bank, it will market JP Morgan’s banking and advisory services. Jamie Dimon, JP Morgan CEO, said in the past that the bank would concentrate on big-ticket deals from the government and large multinationals with headquarters in the country. JP Morgan has been a lead arranger alongside CitiBank for the three Eurobonds that Kenya has issued. Large international banks are also following their foreign customers who are setting shop on the continent, and whose capital needs local banks cannot meet. Local banks are restricted by the relatively small capital base, which makes it difficult to finance large infrastructural projects or multinational expansions. The entry could help East African countries secure syndicated loans to fund big projects like railways and roads. The bank could take advantage of Kenya’s membership in the East African Community (EAC) to access other markets in the region. JP Morgan’s expansion into Kenya continues its inroads on the continent. The lender already has offices in Nigeria and South Africa. The approval comes days before Dimon visits Nigeria, Kenya, South Africa, and Côte d’Ivoire. JP Morgan is also eyeing Côte d’Ivoire as its next destination. 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. Internet Starlink challenges Kenyan Internet dominance Image Source: TechCabal For many internet service providers (ISPs), gaining 1,000 active monthly customers and even a tiny fraction of market share can take a while since it is challenging to gain market share in areas where leading ISPs like Safaricom have already established dominance. Despite these difficulties, SpaceX-owned Starlink now has 0.5% of Kenya’s internet market. When it launched in June 2023, there were fewer than 500 people and businesses were using satellite internet. That number has grown, with 4,000 satellite internet customers in Kenya by March 2024. By June 2024, it had doubled that number . Behind its rapid growth is its popularity in upcountry areas where other ISPs don’t have robust coverage. ISPs like Safaricom would need to spend hundreds of millions (KES) to lay fibre infrastructure to reach every nook and corner of Kenya. And it’s not always clear that some regions or communities can provide a return on those investments. Yet, ISPs competing in Kenya may not immediately lose sleep because Starlink is expensive. A full kit costs KES 45,000 ($350), and a full-speed package at 200 Mbps costs KES 6,500 ($51) monthly. While not immediately related, Safaricom customers can get the same speeds but with no hardware costs. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Fintech Lendsqr wants to be the lender’s lender after launching a ₦1 billion fund Image Source: TechCabal Nigerian fintech startup Lendsqr whose customers are lending businesses—it mostly sells them software and holds their hands to ensure success in the tough sector that is lending—is going all in with a ₦1 billion ($612,000) fund. That fund will allow Lendsqr to give its customers, who are often in need of cheap-ish money they can lend to retail customers, overdrafts. Bank deposits are the cheapest funds for lenders, which explains why commercial banks often have the cheapest interest rates. Yet, all animals are not equal, and digital lenders don’t often have cheap deposits to rely on. They may raise money from investors or take increasingly expensive debt—hello, interest rate hikes. In theory, Lendsqr’s overdraft will allow a digital lender to take some money at 4% a month and make loans to retail customers. The PR people will say something like, “It will help its customers scale their lending business.” Lendsqr argues that its rates are some of the most competitive in the market and claim the sweetener is that its clients only have to pay interest on the money they disburse. If they don’t issue loans, they don’t have to pay any interest (yet). It ushers Lendsqr, which has typically played in the software business into the league of on-lending companies, which is a fancy way to say the ₦1 billion won’t come from Lendsqr, but from a financial institution or an asset management company it has declined to name. Introducing Pay with Pocket on Paystack Checkout Paystack merchants in Nigeria can now accept payments from PocketApp’s 2 million+ customers. Learn more → Events Dubai traffic blues and Dejavu’ at GITEX Image Source: Empower Africa I started writing this blurb in Dubai traffic at 8 PM, and it felt like a typical Monday night in Lagos. As I returned to my hotel after a thrilling first day at GITEX, one of the world’s largest tech conferences, it was comforting to know that even the ‘City of Gold’ has its own traffic woes. That’s enough musing about movement- or lack thereof. When
Read MoreKenya to track crypto transactions real-time with new tax system
The Kenya Revenue Authority (KRA) plans to switch a new real-time tax system that will integrate with cryptocurrency exchanges, allowing it to monitor crypto transactions and collect taxes. Kenya has an estimated four million crypto users–one of the highest in Africa–which the East African nation is keen to tax as it broadens its tax base. KRA said that crypto transactions in 2022 were valued at around $18.6 billion (KES2.4 trillion), which could be higher than money handled by some commercial banks. “The system shall integrate with cryptocurrency exchanges and marketplaces to track and record cryptocurrency transactions. It shall capture transaction details, including transaction date, time, type and value,” KRA said in a document outlining their tax collection strategies for the financial year 2024/25. While the crypto sector is still largely unregulated by Kenyan regulators including the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK), it has gained popularity with exchanges such as Binance and Coinbase offering services. Most crypto buyers and sellers in the country use P2P transactions, accepting payments through mobile money to avoid regulators. KRA said the agency has been unable to track and tax transactions due to an outdated system which has led to a “significant loss of revenue for the government.” It said earnings from crypto transactions can be taxed as per section 3 of Kenya’s Income Tax Act. “The goal is to have a robust and efficient system that will enable KRA to collect taxes on cryptocurrency effectively and efficiently,” KRA said. The crypto market, known for its wild price swings, has in recent years attracted young traders who hope for quick returns despite warnings from the CBK and CMA that the investments can be high risk. The high adoption rate has also been attributed to low transaction fees, faster sending and decent internet penetration in the country. Chainalysis, a US blockchain analytics firm, says most Kenyans with crypto holdings buy them to preserve savings, for commercial use, like paying for goods and services, and for individual remittances to other continents, especially to Europe and the US. “With this potential, it has become increasingly important for the KRA to develop a system to track and collect taxes on cryptocurrency transactions,” KRA said. The legal status of crypto exchanges in Kenya is still unclear. It could make it hard for KRA to integrate its systems with the exchanges integration. In 2023, an amendment to the Capital Markets Act was tabled in the National Assembly to allow a capital gain tax on exchanges and an excise duty on transactions. The bill is still in the National Assembly after it was approved by the finance committee. In 2023, an amendment to the Capital Markets Act was tabled in the National Assembly to allow a capital gain tax on exchanges and an excise duty on transactions. The bill is still in the National Assembly after it was approved by the finance committee.
Read MoreKenya’s Central Bank issues operating licence to JP Morgan
The Central Bank of Kenya has issued an operating licence to JP Morgan Chase Bank, the US banking giant with over $4.1 trillion in assets. The licence issuance comes days before the visit of company CEO Jamie Dimon. “The Central Bank of Kenya (CBK) announces the granting of authority to JP Morgan Chase Bank N.A. of the United States to establish a representative office in Kenya by the name JP Morgan Chase N.A. Representative Office Kenya. This authority is granted pursuant to Section 43 of the Banking Act and follows the fulfillment by JP Morgan of the stipulated requirements,” CBK said in a statement. Under Kenya’s banking laws, representative offices of foreign banks serve as “marketing and liaison offices for their parent banks and are not permitted to undertake banking business”. JP Morgans new office in Nairobi will be used to market its banking services, but will not be allowed to direct transactions as with other commercial banks. The bank becomes the second US bank with a representative office in Nairobi after CitiBank. It ends a decade wait for the bank which first expressed interest in opening a branch in East Africa’s biggest economy in 2012. CEO Dimon plans to visit Kenya, Nigeria, South Africa, and Côte d’Ivoire in October, Reuters reported. The lender already has offices in Nigeria and South Africa, two of the largest economies on the continent. With operations in 100 countries, it has been eyeing overseas markets for growth. The bank’s offices in Africa offer asset management and commercial and investment banking services. It could be looking to grow its market with the new Nairobi office as it explores Abidjan during Dimon’s visit. “In establishing a presence in Kenya, JP Morgan seeks to explore business opportunities in the country and the wider East African region,” CBK said. Major global banks are also seeking a share of sovereign debt and corporate transactions in Africa. In 2023, Kenya picked JP Morgan alongside CitiBank and Standard Chartered Bank as lead arrangers for the Eurobond.
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New answers from SASSA to grants questions/issues 2024 – 2025
With the ongoing need for social assistance in South Africa, the South African Social Security Agency (SASSA) has released new answers to frequently asked questions regarding the COVID-19 relief grants. The new SASSA grants 2024 aim to address the economic challenges still being felt across the country. Below are the key insights and clarifications recently provided by SASSA. Biometric identity verification process Many applicants struggle with receiving links for biometric identity verification. If you’re experiencing this, you can either call the SASSA toll-free number at 0800 60 10 11 or email them at grantenquiries@sassa.gov.za. This ensures you get the required link and proceed with your verification process for the new SASSA grants 2024. COVID-19 SRD grant approval delays Applicants frequently ask why their COVID-19 SRD grant approval is delayed despite submitting all necessary information. SASSA advises sending an email to grantenquiries@sassa.gov.za or contacting their toll-free number to receive updates on your application status. They are working to ensure the new SASSA grants 2024 reach eligible applicants on time. Who qualifies for a Grant-in-Aid? The Grant-in-Aid is available to recipients of existing SASSA grants, such as the Older Persons, Disability, or War Veterans grants, who require additional assistance due to physical or mental disability. This grant can complement the new SASSA grants 2024 for those who need more support. Updating personal information If your details have changed, SASSA stresses the importance of updating your contact information to avoid issues. Simply reach out via grantenquiries@sassa.gov.za or use the toll-free line. Ensuring your details are up to date will streamline the processing of the new SASSA grants 2024. Appeals and Rejections SASSA allows individuals to appeal rejected COVID-19 SRD grant applications if they believe the decision was incorrect. You must submit your appeal through the SRD website, selecting the “appeal” option to have your case reviewed. This process remains part of SASSA’s commitment to fairness under the new SASSA grants 2024 system. Disability grants and doctor’s reports Some applicants for disability grants question why SASSA rejects their applications despite a doctor’s declaration of disability. SASSA advises applicants to check their documentation carefully and ensure all required steps have been followed. Wait period for bank account verification The process of bank account verification typically takes 3-5 days. If your bank account verification is pending for more than 5 days, SASSA advises you to send an email to grantenquiries@sassa.gov.za or contact their toll-free number at 0800 60 10 11 for further assistance. Why social grants not paid on the 1st of each month anymoreIn response to the ongoing efforts to maintain social distancing and protect vulnerable groups, certain payments may not be processed directly through cash pay points. SASSA encourages beneficiaries to adjust their financial arrangements with creditors and budget accordingly. Final thoughts As the economic recovery continues, the new SASSA grants 2024 will provide crucial assistance. SASSA remains committed to transparency and efficiency, ensuring South Africans in need can access the support they deserve. Keep these answers in mind as you apply for or manage your SASSA benefits.
Read MoreM-KOPA appoints former Nokia CEO Rajeev Suri as new board chairman
M-KOPA Holding, a Kenyan startup that offers financing for smartphones and solar systems, has appointed former Nokia CEO Rajeev Suri as its new board chair. He resumes on December 1, 2024, and will replace Elizabeth Littlefield. “We are thrilled to welcome Rajeev to the board as we enter this next phase of growth for the business,” said Jesse Moore, M-KOPA CEO and co-founder.“His proven leadership in steering international companies through periods of rapid expansion will be invaluable.” Suri also served as CEO of Inmarsat, a UK-based satellite communication firm. He chairs the board at Digicel, a Jamaican telco, and is a director at Singtel, a Singaporean telco. He joins M-KOPA as it expands its footprint after raising $255 million in 2023. The company also faces millions of dollars in back taxes following a ruling by a Kenyan tax tribunal. In September 2024, M-KOPA claimed it reached five million users and disbursed over $1.5 billion in credit across its five markets, including Kenya, Uganda, Ghana, Nigeria, and South Africa. “M-KOPA represents one of the most exciting fintech propositions, not only in Africa but globally. Their use of leading-edge technologies and AI to solve the critical challenge of digital and financial inclusion is compelling and has the potential to change the way we think about consumers in emerging markets,” said Suri. Founded in 2010, M-KOPA offers solar power systems, smartphones, and electric bikes, which users pay for in small installments. The company has enjoyed an impressive growth in the past year, adding two million customers in the last 15 months. The fintech is working to hold its lead in PAYGO as more entrants, like D.Light, Sun King, and Aspira, move to capture the sector that targets low-income earners. The company has raised over $590 million in venture funding across seven rounds, with the latest being a $51 million debt financing in May 2024.
Read MoreStarlink becomes Kenya’s tenth-largest ISP one year after launch
One year after its launch in Kenya, Starlink has become the country’s tenth-largest internet service provider (ISP). The company has gained over 8,000 subscribers according to data from Kenya’s Communications Authority (CA). “Starlink Internet Services Kenya that was licenced earlier in the financial year to provide satellite Internet services had a market share of 0.5 percent as of 30th June 2024,” the CA said. Starlink’s growth is one of the fastest expansions for any ISP in Kenya, driven by strong public interest in its availability in underserved regions. In a competitive local landscape where new ISPs often take years to gain traction, Starlink’s rise signals a demand for internet access among customers previously overlooked by established providers. While Starlink’s subscriber numbers may seem modest compared to market leaders like Safaricom and Jamii Telecommunications, which have 545,000 and 360,000 subscribers, respectively, Starlink has the potential for customer growth. Unlike its fibre competitors, Starlink’s satellite internet doesn’t require extensive ground infrastructure. While its rivals factor in their infrastructure investments into pricing, Starlink relies on over 6,000 satellites manufactured by its parent company SpaceX. This allows Starlink to offer competitive pricing without incurring heavy infrastructure costs. Its cheapest plan starts at KES 1,300 ($10) for up to 200 Mbps. There’s also a residential package available for KES 4,000 ($31), offering speeds of up to 100 Mbps, priced lower than similar plans from other ISPs. Yet this advantage has put Starlink in a challenging position in the Kenyan market. Rivals like Safaricom have asked the regulator to impose stricter entry requirements for independent satellite operators. Safaricom also upgraded its fibre speeds to retain customers considering switching to Starlink, while other competitors offered discounts. Despite the intense rivalry, Safaricom said it is open to partnerships with companies like Starlink. Although details are scanty, such a collaboration could allow Starlink to take advantage of Safaricom’s extensive logistical network for distribution.
Read MoreGTCO’s switch to core banking software Finacle suffers delays and leaves customers frustrated
One month after TechCabal reported that Guaranty Trust Bank (GTBank), Nigeria’s cost-efficiency leader in commercial banking, is switching its core banking application, it told customers the upgrade was facing more delays. After sharing that it would close its 235 branches until 9 am on Monday, it extended that closure until midday. “Following our recent notification on the transition to a new and robust suite of Finacle banking Application System, we would like to update you that this transition has taken longer than planned,” the company said in an Instagram post on Monday. It confirmed TechCabal’s earlier reporting that GTBank had joined at least ten other Nigerian commercial banks that use Finacle. Group CEO Segun Agbaje confirmed the bank would make the technological change in July 2024, with sources claiming the bank’s management visited Infosys in India, bypassing any vendors. As the upgrades entered the final stages, customers were warned of service disruption over the weekend, causing considerable frustration to 32.8 million retail customers. The bank holds more than N3.85 trillion in retail customer deposits. Customers of top Nigerian banks have endured a torrid second half of the year, with technology changes and upgrades causing extended downtimes. Sterling Bank, for instance, switched its core banking application to SeaBaaS, leaving customers in the lurch for three weeks. Access Bank told customers last weekend that it was upgrading Flexcube, its core banking software. Tier-1 bank, Zenith also moved to a new core banking platform, Flexcube in September 2024.
Read MoreFintech startup Lendsqr is launching ₦1 billion working capital for lenders
Lendsqr, a startup that provides all the software companies need to start a lending business, will now offer its clients a line of credit to help them provide more loans to grow their businesses. Founded in 2018, Lendsqr counts Kredi, Snapcash, Blockacash among its clients and will offer these businesses overdrafts from a ₦1 billion purse. The company, which claims to have “thousands of lenders servicing millions of clients,” will charge qualified lenders 4% per month, and claims interest will be collected only on the portion of the facility that’s disbursed to end users, i.e., retail lenders. “If they get repayments from their borrowers and their account swings into positive, they don’t even pay any interest at all,” said Lendsqr CEO Adedeji Olowe, adding that Lendsqr will track how the loan is used to identify and address potential risks. For digital lenders that offer collateral-free personal loans, the cost of funds plays a significant role in loan pricing. Coupled with the risk of defaults, customers sometimes have to bear the brunt of high interest rates. So, while technology remains crucial to success for digital lenders, relatively cheap funds are the holy grail. “For a long time, we believed that providing top-tier lending technology was enough to help lenders scale,” said Adedeji Olowe, CEO of Lendsqr. “But technology alone cannot scale a loan business without adequate capital. That’s why we decided to go a step further and solve this critical need.” With this offering, Lendqr now joins a coterie of on-lending institutions—lenders who lend money to lenders—such as Lendable, the Nigerian Bank of Industry, and the African Finance Corporation. “We’re excited to be the catalyst for growth in Nigeria’s lending sector. Our onlending initiative isn’t just about providing capital. It’s about enabling a stronger and more inclusive financial ecosystem where every licensed lender, big or small, can thrive,” Joy Bello, Head of Sales at Lendsqr. Lendsqr runs a subscription model with packages ranging from ₦20,000 to ₦1 million per month. For non-Nigerian businesses, the product is priced at $1,000 per month. “By next year, we would have closed some of the ongoing capital conversations and should see other lenders provide 20x capital to more lenders,” Olowe added. “We are also looking at extending this to the other countries where we are either operational or available.”
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👨🏿🚀TechCabal Daily – Will inflation bite in Nigeria?
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! We hope you had a great weekend. We are still buzzing from the stellar reviews of our moonshot conference. Attendees raved about engaging conversations and were delighted by the beautiful brand experience. If you missed out on this year’s edition, mark your calendars for October 15 and 16, 2025. We weren’t the only ones receiving accolades over the weekend though. Elon Musk’s SpaceX made history after the Starship rocket was captured on its return to the launch pad. It was a world-first. Elon Musk’s Tesla also made the future history over the weekend with the launch of two autonomous vehicles, a robotaxi and a robovan, alongside Optimus, a humanoid robot. Nigeria’s inflation forecast for September is tricky Kenya agrees $736 million energy deal with Adani Zambian fintech Lupiya eyes Nigerian expansion Jobs Economy Nigeria’s Inflation forecast for September is tricky Image Source: TechCabal “It’s difficult to predict.” That’s what one analyst told me when I asked his thoughts on Nigeria’s September inflation number. While headline inflation has eased for two consecutive months, analysts I spoke to wouldn’t be drawn into predicting September inflation figures. A food harvest season and a six-month free import duty on food drove down food prices which contribute more than half of the key metric—the CPI index—for judging inflation rate. However, a 45% increment in fuel prices has driven transport prices up, a second determing factor of infation rate. Given Nigeria’s current harvest season, the increased demand for food transportation, primarily by road, will likely elevate fuel consumption. This, in turn, could contribute to a rise in the inflation rate, argues Basil Abia, an analyst at Veriv Africa. Regardless of what figures the National Bureau of Statistics show, the CBN is leaning towards a continued tightening of the monetary cycle arguing that core inflation continued to rise in July and August. In September, the Central Bank Monetary Policy Committee delivered a shock 50 basis point interest rate hike, increasing borrowing cost. The National Bureau of Statistics (NBS) will announce interest rates on Wednesday. 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. Energy Adani and KETRACO agree $736 million energy deal in Kenya Image Source: TechCabal Adani Energy Solutions, a subsidiary of the Indian conglomerate Adani Group, has agreed a KES 95.68 billion ($736 million) deal with Kenya to build three transmission lines and two substations. It is a build-operate-transfer (BOT) arrangement that will see Adani construct and operate the power lines for 30 years. Adani will finance the project—its first in Kenya and the first made by any Indian company in the country—through debt and equity. It will construct 388 km of high-voltage transmission lines spanning the entire country, in collaboration with the Kenya Electricity Transmission Company (KETRACO). Kenya’s power grid is aging, causing country-wide blackouts . Repairs and maintenance were previously funded from taxpayers and grants which became insufficient. Adani Energy Solutions will recoup its investment from new charges on households’ monthly electricity bills, which will likely go higher. For Adani Energy Solutions, which operates more than 21,000 km of power transmission lines worldwide—playing a key role in electricity transmission across India’s Gujarat and Maharashtra regions—it has landed one deal it has desperately pursued since December 2023. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Fintech Lupiya, micro-lending fintech eyes Nigerian expansion, plans to raise $10 million Image Source: Empower Africa Zambian microlending fintech Lupiya, which raised $8.25 million in series A funding in 2023, plans to expand into Nigeria . After entering Tanzania in March, the fintech company is betting on Nigeria’s microlending market which already has players like Fairmoney, Branch, and Umba. In the last five years, South African fintechs Jumo, Yoco, and Stitch have expanded to Nigeria, with varying levels of success. Nigeria’s huge fintech market and the presence of key players like Flutterwave and Paystack presents an opportunity. But Zambian startups haven’t often expanded into Nigeria. Instead, Nigerian fintechs have been more likely to enter Zambia. For example, Flutterwave, Paystack, and Chipper Cash, with its acquisition of Zoona in 2022, have all expanded to Zambia. For Zambia, only Union54, which provided card issuing services to fintechs like Busha, and Zazu—which now has no marked presence in the country—have entered Nigeria. Zambia and Nigeria both have young and tech-savvy populations, which makes fintech adoption higher. Like Zambia, Nigeria is also consumption-based, with huge capital demand from retailers who are typically shut out of credit provided by traditional banks. But that’s where the similarities end. Zambia has low internet penetration and faces challenges with financial literacy, both of which could be problematic for digital-first neobanks like Lupiya. Evelyn Kaingu, Lupiya’s co-founder, has acknowledged these challenges in Zambia, where over 135 microfinance institutions provide consumer credit. Nigeria, on the other hand, has a larger population and a more developed fintech ecosystem. With three times the number of fintechs compared to Zambia, the competition in Nigeria is fiercer. Yet, Kaingu is confident of Lupiya’s ability to compete. The startup is currently raising a further $10 million in a series B funding round to enable it to compete with other microlending players in Nigeria with deep pockets. Introducing Pay with Pocket on Paystack Checkout Paystack merchants in Nigeria can now accept payments from PocketApp’s 2 million+ customers. Learn more → CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $63,928 + 1.71% + 6.21% Ether $2,531.74 + 2.73% + 4.41%
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