Starlink launches in Botswana three months after securing licence
Three months after securing an operating licence, Starlink, the Elon Musk-owned satellite internet service, is now available in Botswana. The hardware will cost P4,820 ($363), shipping for P314 ($24) and P688 ($52) for the monthly subscription. Starlink’s launch in Botswana comes after one year of engagements with the Botswana Communications Regulatory Authority (BOCRA). The company submitted its licence application in early 2023 but got the licence in May 2024. Starlink’s application was rejected in February 2024 citing missing information, people familiar with the matter said. The regulator denied the claims. In February 2024, BOCRA banned the use, sale and importation of Starlink kits in the country. In May, President Masisi met with a delegation of Starlink’s executives in Dallas, Texas and said he advised BOCRA to license the service. In Botswana, Starlink enters an internet service provider market dominated by mobile network operators including BTC, Mascom Orange and other broadband internet providers including Nashua and OPQ. Botswana is the sixth country in southern Africa to have Starlink after Zambia, eSwatini, Malawi, Mozambique and Madagascar. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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👨🏿🚀TechCabal Daily – Kenya considers Safaricom’s ISP suggestions
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning We’re about 6 weeks away from Moonshot 2024, and people can’t wait—especially last year’s attendees. This year’s Moonshot promises more content tracks, sessions, mixers, and the most audacious thinkers, doers, and investors in African tech, working on everything from fintech to commerce, renewable energy, climate change, tech policy, AI, telco, cloud and more. Save a seat at Moonshot 2024. Get tickets here. Wasoko and MaxAB complete merger CA welcomes Safaricom’s ISP suggestions Bolt reintroduces car loans in Kenya Volkwyn steps down from MultiChoice board amidst probing The World Wide Web3 Events M&As Wasoko and MaxAB finally complete merger (L-R) Belal El-Megharbel and Daniel Yu of MaxAB and Wasoko respectively. As far as mergers and acquisitions go in Africa’s tech ecosystem, the Wasoko-MaxAB merger is one of the most significant. Both B2B e-commerce companies, with base operations in Kenya and Egypt respectively, have joined forces to create a dominant player in the African B2B e-commerce market. Talks of an all-stock merger have been ongoing since December 2023. Initially expected to be completed in March 2024, the deal was marred by multiple layoffs, court lawsuits, and delays due to reasons Daniel Yu, Wasoko CEO, claimed were “sensitive.” Mergers, depending on the nature, typically take six months to complete. However, complications could arise that might take the negotiations well over a year. But both companies will now look to put all that squabbling behind them. Yu and MaxAB CEO, Belal El-Megharbel, will serve as co-CEOs in the newly merged company. New details reveal that the deal is a 50-50 merger. The merger will combine the strengths of both companies, combining Wasoko’s network of merchants in East Africa with MaxAB’s expertise in B2B beverage supply in North Africa. With this partnership, the combined entity—yet to be renamed—will operate across East, Central, and Northern African regions. This will allow the combined entity to offer a wider range of products and services to a larger customer base. Wasoko-MaxAB will focus on raising additional funding—a claim Yu has not denied—cutting costs on non-profitable markets, and growing its buy-now-pay-later (BNPL) product. B2B e-commerce in Africa has become a difficult beast with funded companies like Copia Global shutting down this year. However, with the combined advantage, Yu and El-Megharbel will be hopeful for a turnaround of their companies’ struggles and growth in their standing in the tough B2B e-commerce climate. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy. Internet Kenya’s regulator welcomes Safaricom’s ISP suggestions Image source: Zikoko Memes Last Thursday, Safaricom, Kenya’s largest internet service provider, argued against granting licences to independent licences to satellite internet providers like Starlink. Safaricom argued that granting independent licences to satellite service providers could lead to harmful interference with existing mobile networks, and compromise national security. Yesterday, Kenya’s Communications Authority said those concerns are valid and that it will examine them within its frameworks. At the heart of the issue is Starlink’s growing appeal among users in Kenya. Fast internet speeds, cheap data bundles and a workaround to afford the Starlink kit are among the perks offered to Kenyans. Starlink’s cheaper service is a new threat to Safaricom whose data revenue helped it achieve profitability in 2023. Other telecoms have also started ramping up marketing campaigns to retain customers. Any decision made by the CA upon reviewing Safaricom’s demand will be consequential to the users, Starlink, Safaricom and other telecoms in the country. Unlike other internet service providers, Starink, through a satellite connection, is able to provide internet service even in the most remote parts of Kenya. A move to block independent satellite providers could jeopardise Kenya’s hard-won improvements in internet accessibility. Users will also have fewer (expensive) alternatives to choose from if the CA moves to block independent satellite providers. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Mobility Bolt reintroduces car loans amid drivers’ demand for increased base fare Image source: YungNollywood When a President visits, the whole city grinds to a halt. Certain roads are blocked and traffic diversions are made. While diversions are important to keep traffic at bay, they are also an important tactic for businesses. Yesterday, Bolt reintroduced car loans in Kenya, steering the conversation away from drivers’ calls for lower commissions and higher base fares. Drivers had previously gone on a five-day strike, requesting an increase in base fare. Those drivers went as far as imposing their own prices on riders and harassing them when they didn’t oblige. However, Bolt’s novel idea to quell the outrage was a reintroduction of its car loan. The car loan was first introduced in 2019, however, a lack of traction (fueled by the COVID-19 lockdown) led to an end of the venture. While Bolt has not shared much information about the latest interaction of the car loans, it last offered drivers vehicles at 1.2 million KES ($9,302). Drivers were expected to pay back within 36 months at an interest rate of 22.5%. While the car loans offer a convenient way for drivers to own vehicles, drivers say they don’t want the deal as asset financing faces more scrutiny on the continent. Kenyan drivers claim their earnings were insufficient to cover repayment and vehicle maintenance costs. Companies Jim Volkwyn steps down from MultiChoice board Image source: MultiChoice The responsibility of board members is toward a company’s best interests. But what happens when these members consult for the same company on pure financial interests? If the company makes a bad business decision as a result of an ill-advised consultation, who takes the fall? These are
Read MoreBolt’s new car loan offering leaves driver partners unimpressed
On August 22, ride-hailing giant Bolt reintroduced car loans in Kenya in response to growing driver discontent over low earnings. However, Bolt’s driver partners insist on their earlier demand for a reduction in commission and an increase in base fares. Bolt increased the base fare on August 26 by 10% to KES 220 ($1.71) from KES 200 ($1.55). However, drivers claim the increase was insignificant and want a fare structure based on distance and time instead of discounted fares. “You just can’t offer a loan product while skipping our key grievance, which is unfair pricing,” said Dennis Nyariki, the deputy chairman of the Organisation of Online Drivers Kenya (OOD). Bolt first offered car loans in 2019 and offered Renault KWID cars to drivers, but were paused during the COVID-19 pandemic. Drivers could buy cars valued at KES 1.2 million ($9,296) with monthly installments of KES 43,000 ($333). Under the new offering, fintech Hakki Africa will source the vehicles and handle loan disbursement. The interest rate will depend on the vehicle type and loan repayment duration. Bolt declined to share specifics on the type of vehicles and the cost. The Organisation of Online Drivers Kenya (OOD) criticised the loan facility, citing monthly charges under the previous car offering. The union claimed that vehicles were repossessed from drivers due to missed payments, suggesting aggressive loan collection tactics under the offering. Bolt did not immediately respond to a request for comments. At least five drivers who spoke to TechCabal said they were not interested in the car loans. They argued that their earnings were insufficient to cover vehicle maintenance costs. “The loan facility can’t really help. The money we make is not even enough to service a car,” Stephen Njoroge, a Bolt driver partner, told TechCabal. Two other drivers said they were unaware of the facility, although Bolt Kenya may attempt to incentivise them with the product in future campaigns. “The loan is only good for people who want to enter the business. We already have the cars,” Timothy Wachira, another Bolt driver partner, said. Ride-hailing companies have come under increasing pressure after drivers began pushing for fare hikes to increase their earnings. While Bolt hopes the car loans will offer some relief to aggrieved drivers, the company may have to consider making bigger concessions by lowering commission.
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Safaricom can push for restrictions on satellite ISPs, says communications regulator
The Communications Authority of Kenya (CA) has said Safaricom was right to raise concerns about the licensing of independent satellite providers including Starlink. “Licensees or service providers are at liberty to raise any issue in the market with the ICT regulator,” CA told TechCabal. On July 15, Safaricom asked the regulator to block satellite ISPs with operations in other countries, a move that could lock out Starlink which is the biggest satellite internet provider in Kenya. The Elon Musk-owned company relies on resellers to distribute its kits and install the service. CA will now investigate and address Safaricom’s concerns, even as telco experts warn that the telco’s move could reverse gains Kenya has made in increasing internet access and reducing data costs. Safaricom also alleged security risks to the country if the companies are allowed to operate without a physical presence or partnerships with local firms. It said licensing such companies “would mean negligible control for the government to ensure accountability for any non-compliance issues.” “The authority independently examines such issues within its mandate and regulatory framework and responds appropriately. It is a normal practice as the Authority seeks to facilitate the development of the dynamic and rapidly evolving ICT sector,” CA said. Safaricom did not immediately respond to a request for comments. Safaricom dominates Kenya’s data market with a 36.7% market share, followed by Jamii Telecommunications and Wananchi Group at 23.2% and 22.7% respectively. It has laid 14,000km of fiber optic cables, connecting over 400,000 subscribers. Starlink’s expansion, which offers faster speeds and relatively lower prices, could slow Safaricom’s data business growth. In 2023, the company’s mobile money service M-Pesa and data services pushed it to the first profit in three years. Safaricom’s data revenue rose 18% to $1.4 billion, as call revenues shrank 0.6% to $608.4 million–continuing a trend observed in recent years. Starlink’s new satellite updates could further upset local telcos’ call and messaging services if allowed to continue operating in Kenya. The satellite ISP announced on Monday that its upgrades will now bring call services, allowing users to bypass local providers. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
Read MoreWasoko, MaxAB finalise “category king” merger
After a four-month delay, Wasoko, a Kenyan B2B e-commerce platform, has completed an all-stock merger with Egypt’s MaxAB. The merged entity will have a new name, which the company declined to share, citing a rebranding process which will soon begin. Daniel Yu and Belal El-Megharbel, the co-founders and CEOs of Wasoko and MaxAB, will jointly lead the merged entity as co-CEOs. They will also serve alongside existing investors, including Silver Lake and Tiger Global, on the company’s board of directors. Wasoko and MaxAB contributed nearly equal stakes to the combined entity, Yu told TechCabal on a call, dismissing earlier claims that MaxAB has a controlling interest. “MaxAB and Wasoko have a pretty close to 50-50 shareholding,” Yu said. The merger, seen as an attempt to create a category king in the contested B2B e-commerce sector, signals investor willingness to see consolidation. Wasoko (last valued at $625 million) and MaxAB had raised over $230 million from investors like Tiger Global, Impact Engine, and the University of Chicago. TechCabal reported in December 2023 that the deal is structured as an equity consideration, which means existing shareholders will receive shares in the new company. First announced in December 2023, the deal was expected to be finalised in April 2024. Wasoko declined to provide specifics about the delay due to the merger’s “sensitive” nature. The new entity will capitalise on MaxAB’s position as a leading B2B beverage supplier to a network of small retailers throughout North Africa. While Cairo will serve as the headquarters, there are no plans for job cuts since Wasoko made 100 duplicated roles redundant in December 2023. The new entity will initially operate in five countries—Kenya, Tanzania, Rwanda, Egypt, and Morocco. Wasoko was in Zambia, Uganda, and Zanzibar but closed shop in those markets in March 2024. The new entity will have 450,000 merchants serving 65 million consumers. The integration of Wasoko and MaxAB’s tech and operations was completed in 60 days, the company claimed. Former Wasoko employees told TechCabal in January 2024 that MaxAB’s systems were preferred, as MaxAB had also brought its staff from Egypt for the integration exercise.
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Full details for new US Visa service system for Nigeria 2024
As of 26th of August 2024, the U.S. Embassy in Abuja and the U.S. Consulate General in Lagos have officially transitioned to a new visa payment and scheduling system. This shift introduces a new service provider, designed to enhance the efficiency of the visa application process. The US visa new website for Nigeria 2024 is now live, providing applicants with a streamlined platform to manage their visa appointments and payments. Key changes effective from 26th of August 2024 Starting 26 August 2024, all visa-related services will be managed through the new website. Here’s what you need to know: New website live: The new US visa appointment booking and payment system is accessible at https://www.usvisaappt.com/visa/country?country=NG, replacing the previous ustraveldocs.com platform. Document submissions deadline: All submissions under the old system are either in migration or cessation, depending on their relevance. Applicants must follow the new procedures outlined on the live website. How to manage your interview appointments With the US visa new website for Nigeria 2024 now operational, here’s how you should manage your interview appointments: Future appointments before 26 August 2024: If you have an appointment that was scheduled before the new system went live, do not panic. Your interview will still take place on the original date you selected. Within the next two business days (from 26th of August), you will receive an automatic email at the address you registered on the previous website, providing instructions on setting up your account on the new platform. No need to reach out; simply wait for the email with further details. Please constantly check your spam as well to make sure you do not miss the mail as it may arrive there. Visa fee payments for US visa in Nigeria 2024 going forward With the transition now complete, please note the following: No more cash payment: You will now use only the new website to pay for your visa, just like every other online transaction. As such, the GT Bank cash payment intermediary ceases. GT Bank online payment hegemony: The GT bank internet banking option of payment through the bank’s website or app may also not be available anymore. If it is, it will no longer have the monopoly of online US visa fee payments regardless. What’s new after 26 August 2024 With the US visa new website for Nigeria 2024 now live, applicants can expect the following improvements: Updated documents Drop-Off/Pickup locations: New locations will be provided for document submissions/retrieval, ensuring greater convenience. Enhanced customer service: A revamped support system is now available via the new website, offering more responsive assistance. Streamlined appointments process: The new platform offers an improved process for scheduling and managing visa interviews, making the overall experience more efficient. Aligning to the new 2024 US visa system in Nigeria As the transition ensues, follow these steps: Visit the new website: Go to https://www.usvisaappt.com/visa/country?country=NG and familiarise yourself with the updated interface and procedures. Update your records: After you have opened yiur new account on the new portal, print all necessary documents, including your appointment confirmation, from the new platform. Stay informed: Regularly check the new website for updates, especially concerning document drop-off locations and other important announcements. The launch of the US visa new website for Nigeria 2024 ensures that applicants have access to a more user-friendly and effective system, simplifying the visa application process.
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👨🏿🚀TechCabal Daily – Kenya gets downgraded again
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Here’s what one faithful subscriber had to say about the new TC Daily. “Damn! Sorry to swear but the design is too good. Kudos to the graphics designer. The overall design interface has changed to reinforce the colours of TC Daily. Anyway, brilliant work!” Do you agree? Share your thoughts in two quick minutes. Zimbabwe inflation accelerates first time since currency change Starlink cuts off South Africans Kenya gets downgraded again Dutch regulator fines Uber $324 million The World Wide Web3 Events Economy Zimbabwe inflation accelerates first time since currency change Image source: RBZ Zimbabwe’s recent switch to the gold-backed ZiG currency in April marked its sixth currency change since 2008. This drastic measure was necessitated by rampant hyperinflation, which reached a staggering 57.4% in April before the transition. While the ZiG initially seemed to quell inflation, a severe drought has exacerbated food shortages, driving up prices and reigniting inflationary pressures. As a result, Zimbabwe recorded its first increase in inflation since the ZiG’s introduction in August, primarily due to soaring food costs. Analysts predict that inflation will continue to rise until the country’s next harvest in March 2025, forcing the government and private millers to import grain to address food shortages. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy. Internet Starlink cuts off South Africans Image source: Google They say the third time’s the charm, but South African “illegal” Starlink users will be reeling from this news. After three warnings, these users have now been cut off from the Elon Musk-owned satellite internet service provider (ISP). To get licensed, the country’s telecoms regulator, the Independent Communications Authority of South Africa (ICASA), mandates that 30% of all foreign companies, like Starlink, must be owned by historically disadvantaged groups. However, the satellite ISP couldn’t meet this requirement. So, South Africans got creative. They started using roaming services. They bought Starlink kits, registered in other African countries where Starlink legally operated, from third-party resellers. ICASA has since chased down these resellers to little success. Fearing regulation trouble, Starlink threatened to cut off more than 12,700 users that violated the usage terms. After warnings in February and April 2024, these users only got a slap on the wrist. This time, they’ve been cut off from the satellite service. Getting operational clearance in African countries still eludes Starlink. Regulators want to control the content shared over Starlink. Since Starlink’s satellites don’t have a physical presence in the countries, it’s not possible to hold Starlink responsible for content transmitted over the signals. This is what Kenya’s biggest telco, Safaricom, is pitching after it recently requested that regulators ban Starlink in Kenya. Critics have argued that it is anti-competitive. But for these blocked users in South Africa, only two options exist: they either move to the countries they’ve been tapping roaming access from or pray ICASA moves faster with its plan to fix the Starlink mess in Kenya; though it is demanding that foreign ISPs must provide access to updated data on its network. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Economy Kenya’s credit rating gets downgraded again Image source: Google Kenya’s debt woes are being thrown into full-view again after another credit rating downgrade. After Fitch and Moody’s downgrade in July and August 2024 respectively, S & P Global Ratings has downgraded Kenya’s credit rating from “B to B-”, meaning that Kenya has now been deemed credit-risky by all three of the biggest credit rating agencies. If it wasn’t convincing before now, perhaps this rating seals Kenya’s fate. These sovereign credit ratings play an important role in determining a nation’s ability to meet its debt obligations. Due to being credit-risky, raising money from debt instruments will become problematic for Kenya because the borrowing cost becomes expensive. The ratings tell investors that Kenya is not a debt-sustainable country. So, they will be wary now of providing Kenya with loans. To hedge against that risk, they will provide loans to Kenya at high interest rates. After Kenya’s president, William Ruto withdrew the Finance Bill in June, he mentioned that the country will look at alternatives to raise money. Borrowing more money at high interest rates to meet its debt obligations remains one bleak option for Kenya. The other, one that is not well received by Kenyans, is to implement taxes. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog → Mobility Dutch regulator fines Uber Image source: Uber How big of a deal is data protection? Planet-sized big. In 2021, over 170 French Uber drivers made data privacy complaints to a French human rights group Ligue des droits de l’Homme. The French activist group transferred those complaints to the Dutch Data Protection Authority. Yesterday, the regulator fined Uber about $324 million after it found it guilty of transferring sensitive driver information to its server in the US without adhering to global data protection standards (GDPR). The regulator claimed that Uber collected driver information including taxi licenses, location data, and in some cases criminal and medical data and sent them to its servers in the US without using data transfer tools aimed at protecting privacy. One of the lead drivers behind the complaint argues that the Dutch ruling could set a precedent for legal action against other tech companies. This $324 million fine is Uber’s largest fine yet and
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Investment bankers, lawyers could make $82million from bank recapitalisation as competition pressures fees
Intense competition amongst investment bankers, lawyers and accountants is driving fees down fees for the bank recapitalisation efforts, and banks are the biggest beneficiaries. It was always going to happen. When Nigeria’s Central Bank announced in March 2024 that it was raising the capital requirement for commercial banks by as much as tenfold, no one was surprised. The absence of surprise did not make the task less daunting—Nigeria’s commercial banks have two years to raise ₦4 trillion ($2.9 billion). For many of the banks, it’s not their first rodeo. In 2004, the minimum capital requirement was increased to ₦25 billion, leading to several mergers and acquisitions. However, the central bank’s decision to exclude retained earnings—including FX gains—makes the capital raising in 2024 efforts more daunting. That clause has forced banks to rely on selling shares to retail and private investors. While it makes for a challenging timeline for banks, it’s a significant revenue opportunity for investment bankers, accountants, and lawyers. Investment bankers, accountants, and lawyers could earn as much as ₦113.2 billion ($82.07 million) in fees, according to capped fees stipulated in the Investment and Securities Act. Nigeria’s Securities and Exchange Commission (SEC) has a 2.83% cap on the fees these professionals can charge on equity raises. “Most of the time, we don’t charge the maximum because of competition. There is always someone willing to take a lower fee. Also, if the transaction is quite significant in value or in size, it can still amount to a large amount,” an investment banker who asked not to be named so he could speak freely told TechCabal. Some issuing houses— which help banks select the most suitable approach for their capital raise and oversee the process—charge under 1% for capital raises, three people with knowledge of the matter said, citing competition. Fidelity Bank, for instance, listed nine issuing houses in its rights circular. Lawyers also face the same problem. Competition has led to “awful” fees, a lawyer at a Lagos-based law firm helping more than five banks raise capital told TechCabal. According to the SEC’s rules, legal fees are capped at ₦10 million for lawyers advising on the rights issue. However, most law firms often make less than the capped fees. “There’s a lot of negotiation involved and if you refuse the bank’s fees, they just take their business elsewhere,” the lawyer added. Lawyers conduct due diligence on the issuer to identify potential risks, and draft and review key documents such as the prospectus, placement agreements, and subscription agreements. They ensure compliance with relevant laws and that all material information about the issuer and the offer is accurately disclosed, protecting against legal claims and helping investors make informed decisions. Other professionals like auditors and accountants also make money from a rights offer but their fees are capped at ₦4 million and ₦7.5 million, respectively, according to the SEC’s rules. The SEC and the Nigerian Exchange Limited (NGX) also make money from each public raise through fees. The SEC’s fees are capped at ₦500,000 for the first ₦1 billion and 0.15% on the balance above ₦1 billion. The stock exchange can make a maximum of ₦ 400 million. The bank recapitalisation will strengthen the banking sector and help push Nigeria closer towards the government’s goal of becoming a $1 trillion economy by 2030. While it might benefit Nigeria in the long run, for now, the bank’s supporting cast is benefiting from the new capital raise. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
Read MoreNigerian fintech lost ₦146 Million initially recovered from fraudsters
Fraud recovery is an important part of the financial services sector, but sometimes, the funds recovered by fintechs and banks can also be lost to fraudsters. “Eneke the bird says that since men have learned to shoot without missing, he has learned to fly without perching,” Nigerian literary giant Chinua Achebe writes in “Things Fall Apart.” He might have as well been talking about how financial institutions must adapt as bad actors continue to follow the money. In the first quarter of 2024, financial institutions reported 11,472 fraud cases in Nigeria. When fraud occurs, banks and fintechs help their customers recover funds by working with the police and the courts. Court orders help banks and fintechs to compel the receiving banks to freeze accounts or reverse questionable transactions. Commercial banks receive those refunds through bank drafts, while fintechs use partner banks. The funds are held in fraud recovery accounts before they are returned to customers. However, these recovery accounts can also be hacked. In May 2023, one African fintech lost ₦146,188,208 ($317,200) it helped customers recover from fraudsters. The fintech, which held the recovered funds with a tier-2 Nigerian commercial bank, said the account was “fraudulently hacked into,” according to court documents. The stolen funds were sent to accounts in 26 banks and fintechs, a standard method used by fraudsters to widen the trail and complicate recovery efforts. “The petitioner as (a) fraud recovery agent is helpless as these monies are some of the monies recovered on behalf of clients, which they supposed to be remitted by the petitioner to the owners,” said an excerpt of a court document seen by TechCabal. While the fintech has begun the recovery process, customers are growing impatient. “The [fintech’s] clients are disturbing the petitioner to collect their money recovered by the petitioner on their behalf and the petitioner cannot explain to their clients what exactly happened to their money.” The fintech has asked the court to compel the 26 banks and fintechs to share their customers’ KYC records and block their accounts from making transactions, highlighting the importance of KYC records. The fintech has also asked the court to issue arrest warrants for three suspected perpetrators. Exclusive: Payments giant Interswitch loses ₦30 billion to chargeback fraud, launches recovery process
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Next Wave: How investor activity changed after 2022
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First Published 25 August, 2024 The year 2021 marked a watershed moment for Africa’s tech ecosystem. A confluence of factors, including abundant foreign capital and a low-interest rate environment, fuelled a surge in startup funding. Global giants like Tiger Global and SoftBank, once synonymous with Silicon Valley, poured billions into African ventures, propelling several companies to unicorn status. However, this era of unbridled optimism was short-lived. A combination of macroeconomic factors, including rising interest rates, geopolitical tensions, and a global funding crunch, led to a significant pullback from these major investors. The continent’s overreliance on foreign capital became evident as the funding landscape shifted dramatically. Tiger Global and SoftBank, while influential, had distinct investment strategies. Tiger Global prioritised short-term returns, pleasing large institutional investors. SoftBank, on the other hand, favoured a cluster of number ones” approach, connecting diverse companies within its portfolio. Despite their differing approaches, both firms shared a common trait: a willingness to invest in emotionally appealing startups. This, coupled with their own financial setbacks, led to a slowdown in their investment activities in 2016 and 2019 For instance, Tiger’s woeful Q1 2016 performance slowed its hands. Softbank also stalled its investment in 2019 after it made a risky bet, backing WeWork. In 2021, Tiger Global and Softbank picked up the pace of their investment, leveraging on the low-interest rate environment and increasing their investments by over 300% year-on-year. Next Wave continues after this ad. We’re excited to announce our partnership with Wimbart on the second edition of their pioneering pan-African research publication, “Startup Performance Reporting in Africa”. This report is set to launch in the first week of October and aims to shed light on the intricacies of investor relations within the African tech ecosystem. The survey is now open, and we’re calling on all African founders and investors to participate. Over the past decade, Wimbart has worked closely with a wide range of stakeholders in Africa’s tech sector. Their first report identified significant challenges, notably the disconnect between investors and founders, which poses a major threat to African tech ventures This year’s edition aims to explore these issues even further, incorporating new insights from startup founders to better understand and address communication gaps that impact the African tech ecosystem. By participating in this survey, you’ll contribute valuable insights that will shape the future of investor relations and support the growth of African startups The survey is now open and will close on Friday, 6th September 2024 at 23:59 pm UK time. It takes just 6 minutes to complete and is fully confidential. Make your voice heard. Click here to participate. The low-interest rate environment of 2021 provided a catalyst for renewed investment, fuelling a wave of funding for African startups. Notable deals included Tiger Global’s $170 million investment in Flutterwave and SoftBank’s $400 million investment in OPay. These deals played a crucial role in establishing Africa’s presence in the global tech landscape—minting new unicorns. However, the euphoria was short-lived. As global economic conditions deteriorated, these investors faced mounting losses, forcing them to reassess their strategies. The withdrawal of these major players had a significant impact on Africa’s tech ecosystem, as the continent’s overreliance on foreign capital became apparent. While the departure of global investors has presented challenges, Africa’s tech ecosystem is far from stagnant. Local investors and accelerators have stepped up, fostering a more sustainable and resilient environment. Some of them include early-stage VC firm, Launch Africa Ventures, a Pan-African VC fund solving the significant funding gap in seed and pre-Series A investment. The fund has the widest geographical spread, involved in 12% of all equity deals between $100,000 and $10million that happened on the continent since 2021. They sign more than one deal a week on average. Other prominent African firms like Flat6Labs, LoftyInc, and Future Africa are also active in this space. Other investors like Verod-Kepple Africa Ventures, Founders Factory, Norrsken, Plug and Play, Ventures Platform, Musha Ventures, 4DX Ventures and 500 Global participated in at least one $100,000+ deal a month in Africa in 2021–2022. Most of these investors have been active in more than one region in Africa, contributing immensely to the new growth of the ecosystem. Next Wave continues after this ad. Difficulties within Africa’s economic landscape have raised questions about the feasibility of building successful startups on the continent. Iyin Aboyeji, a Nigerian entrepreneur who co-founded two companies valued at over $1 billion before the age of 30, is now a prominent startup investor. He is one of the featured speakers at Moonshot 2024, joining other innovators and industry leaders working on groundbreaking solutions to Africa’s most pressing challenges. Save your seat at Moonshot! Get tickets here The focus has shifted from rapid growth to profitability and long-term value creation. The new Africa-focused investors are the product of a 2021 bet on the continent. This development points to the fact that the success of Africa’s tech ecosystem is a catalyst for future development and win-win for everyone. As Africa continues to develop its talent pool, improve its infrastructure, and address regulatory challenges, it is well-positioned to become a major player in the global tech landscape. The future of the continent’s tech ecosystem will depend on its ability to attract and retain top talent, develop a robust exit market, and foster a supportive regulatory environment. Joseph Olaoluwa Senior Reporter, TechCabal Thank you for reading this far. Feel free to email joseph.olaoluwa[at]bigcabal.com, with your thoughts about this edition of NextWave. Or just click reply to share your thoughts and feedback. We’d love to hear from you Psst! Down here! Thanks for reading today’s Next Wave. Please share. Or subscribe if someone
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