Tap, pay, go: CashAfrica wants to make payments easy, but first it must change customer behaviour
While digital payments have blown up in Nigeria in the last decade, contactless payments are still unpopular. CashAfrica, a Nigerian fintech startup that builds payment infrastructure for banks and fintechs, believes there’s a business opportunity in contactless payments. Launched in 2023, CashAfrica builds an API that allows banks and fintechs to offer customers a tap-to-pay option within their banking apps. While working to integrate with banks, the fintech offers a mobile app—Cash Mobile—that allows users to make transactions using the tap-to-pay feature. All you have to do is to open the CashMobile app, enter your password, and tap your phone on the payment terminal. The entire transaction process takes less than two seconds. Although contactless payments don’t require authorization before a transaction, Cash Mobile often requires users to enter a password for use. Asamu likened CashAfrica’s tap-to-pay infrastructure to the NIBSS real-time payment system introduced 14 years ago. “Every bank has one send button today because NIBSS works and there is no point replicating it. Our focus is on executing correctly and making sure our product works.” Since it launched, the fintech claims it has processed ₦1 billion from its B2C customers on the app and crossed 1,000 users. It charges 0.3%-1.5% per transaction based on size and volume. CashAfrica must contend with YC-backed Touch and Pay technologies, and potentially other Nigerian banks exploring their own contactless payment solutions. When asked about the possibility of incumbent fintechs implementing their tap-to-pay solutions, Asamu said CashAfrica’s proprietary payment infrastructure is an advantage. With fewer dependencies, Cash Africa claims to offer better margins to its partner banks and fintechs. The company claims it is in the final stages of integrating its solution on the Sterling Bank app. It is also in talks with Wema Bank, Fidelity, and Opay. “Infrastructure-level software like ours is a winner-take-all, if you build it and it works well, the banks will have no reason to integrate two people doing the same thing.” The startup faces an uphill climb in changing customer behavior to adopting contactless payment as a preferred payment medium. Although some of CashAfrica’s target audience already use NFC-enabled cards for commuting, Asamu admits that there is a need to orient people towards using contactless payment. “We do a lot of organic reach and word of mouth.” Adoption will also rely on the available of NFC-enabled smartphones in the market. 83% of Nigerians use Android phones, but not all of these devices have NFCs, reducing the use case for contactless payment options. “We believe more NFC-enabled phones will be imported. You don’t want to ride on a wave of innovation when it is sinking. We believe tap to pay is new in Nigeria and we want to be among the first to the market,“ Asamu said. CashAfrica’s success hinges on its ability to establish a wide distribution network and leverage network effects. The company needs to partner with banks and agent banking platforms like Opay and Moniepoint to integrate its contactless payment solution into their platforms. While CashAfrica is actively engaging with banks and fintechs, its first-mover advantage lies in onboarding users before other players in the market. Moonshot by TechCabal is gathering Africa’s most audacious builders and thinkers in Lagos, Nigeria. You can get tickets here.
Read MoreM-KOPA must pay taxes to Kenya after losing appeal
M-KOPA Holding, an asset financing startup, must now pay taxes in Kenya after losing an appeal at a tax tribunal. The startup appealed against a $6.8 million tax demand for 2017 to 2019, arguing that it’s incorporated in the UK. M-KOPA’s argument, based on the Kenya-United Kingdom Double Taxation Treaty (DTT), was that it is managed and controlled from the UK and therefore exempt from Kenyan taxes. However, the tribunal dismissed this claim. The tribunal ruled that the startup must pay part of the $6.8 million in back taxes, though it did not determine the exact amount the company owes the Kenya Revenue Authority (KRA). Despite M-KOPA’s claims of having a registered office in the UK and most of its directors residing outside Kenya, the tribunal concluded that the company’s tax residency is in Kenya. This means it is subject to Kenyan income and capital gains taxation. “The appellant’s failure to provide evidence to support its argument that the board had actually made core decisions affecting the operation of the company in the meetings held outside Kenya meant that it had failed to discharge the burden of proving that it was not a resident in Kenya as enunciated in Section 30 of the TAT Act,” the tribunal said. The tribunal’s ruling is a major win for the KRA and could have implications for other Kenyan startups with registered tax residency outside Kenya. The tribunal found that the company’s key management decisions are made in Kenya because its CEO, CFO, and CCO are Kenyan residents. Kenya is M-KOPA’s largest market, followed by Nigeria, Ghana and South Africa. The startup’s products include solar power systems, smartphones and electric bikes, which users pay for in small installments. In 2023, M-KOPA secured $250 million of debt and equity funding for its pan-African expansion.
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👨🏿🚀TechCabal Daily – Is Starlink Finally Coming to South Africa?
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Start your new week on a light note. For the next few days, we’re offering TC Daily readers 20% off tickets to Moonshot 2024. All you have to do is enter the coupon code “MSTCD” for local tickets, and “MSTCD1” for international tickets. Musk holds talk with President Ramaphosa Sterling Bank’s big bet on a custom banking system Nigerian banks lose $25.7 million to fraud in Q2 2024 Experts expect a tempered inflation rate in Nigeria The World Wide Web3 Events Internet Elon Musk holds talks with South Africa’s Ramaphosa over Starlink GIF source: Tenor Starlink could be only weeks away from getting regulatory approval in South Africa. Founder Elon Musk is now in talks with President Cyril Ramaphosa to bring the satellite internet service provider (ISP) to the country. Since Starlink began its march into African markets in 2022, most southern African countries have been tough nuts for it to crack. In Botswana for example, where it recently got licenced, it had its licence application blocked for more than six months. In Zimbabwe, Starlink can only operate through agents, dealers, and ISPs that the government must clear. South Africa’s own laws require that foreign companies cede 30% of their ownership to historically disadvantaged groups (like marginalised people of colour and women.) But that has always been a fool’s errand because as a privately-held company, there is likely reluctance from Starlink or SpaceX, its parent company, to meet this requirement. Now, post-meeting, Ramaphosa is singing a new tune, calling for Musk to invest in the country: “I have had discussions with him and have said, Elon, you have become so successful and you’re investing in a variety of countries. I want you to come home and invest here.” With South Africa’s broadband issues driving up the demand for Starlink in the country, there is an opportunity here for Musk’s high-speed internet. Its entry into South Africa could shake up the ISP market dominated by companies like Telkom, MTN, and Vodacom. It’s the win South Africans are looking for, but regulators are not budging yet. Who knows? Ramaphosa’s new endorsement could be key for Musk. 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. Banking Sterling Bank’s big bet on custom banking system Image source: Sterling Bank Sterling Bank, a Nigerian bank, is doing something unique: it’s building its own core banking system. This is like a bank deciding to build its own car factory instead of buying cars from a dealership. It’s a massive, expensive, and risky undertaking, but it could also be a huge advantage for the bank. In banking, most institutions buy their core banking systems off the shelf. It’s easier, and faster, but it also comes with some significant downsides. For starters, when you buy a pre-built core banking system, you’re at the mercy of the vendor. And if you need to make changes to the system, you’re going to have to pay for it. On the other hand, building your own core banking system, like Sterling’s, gives you complete control. You can customise it to do exactly what you want, without having to worry about the limitations of a pre-built system. And if you need to make changes, you can do it yourself, without having to pay a vendor. But building your own core banking system is a lot of work. It’s expensive, time-consuming, and risky. And if you screw up, it could be a disaster. Studies have shown that the total cost of ownership (TCO) for a custom-built system can be higher than that of a purchased solution. The TCO of a custom-built core banking system can be 20-30% higher than that of a purchased solution. While the custom banking system has been explored in other parts of the world, Sterling Bank is among the first African banks to implement the solution. So, is this move worth it for Sterling? Only time will tell whether Sterling Bank’s gamble will pay off. But one thing is for sure: they’re making a big bet on the future of Nigerian banking. Fincra secures International Money Transfer Operator (IMTO) licence in Nigeria Since its inception, Fincra has provided businesses with local payment options. However, with the IMTO licence, Fincra can now manage funds transfers from abroad to Nigerian recipients more efficiently. Read more here. Inflation Experts expect a tempered inflation rate in Nigeria Image Source: TechCabal In July, Nigeria’s inflation slowed for the first time in two years—33.4%—in almost two years. Nigeria Bureau of Statistics will release inflation figures for August today. Analysts are divided on their predictions. While some expect a slow in inflation, others expect higher interest rates, while others expect the inflation rate to be steady. Analysts from Stears and Norrenberger predict that the country’s inflation could slow for the second consecutive month, with predictions of 32.05% and 32.4% respectively. This thinking is rooted in the positive impact of the harvest season. Food prices which make up a bulk of the consumer price index eased in July. Some analysts expect this trend to continue in the new month. Given the recent surge in fuel costs, analysts are anticipating either a flat interest rate or a rate increase. Egypt, last month, recorded an increase in its inflation rate after it raised prices of fuel products by 15%. While analysts might be divided in their opinion about Nigeria’s August inflation rate, they all agree on one thing. The recent increase in fuel prices will significantly drive up the inflation rate in the coming months. Psst Here’s Paystack Developer Contributor of the month Microsoft Engineer Ekene Ashinze built the Angular Paystack Library, a module that helps developers accept payments in their Angular apps with Paystack. Discover his journey in creating the library and how it’s opened doors for him both
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Nigerian Blockchain Association SiBAN rocked by power tussle, expels president and executives
The leadership of Stakeholders in the Blockchain Technology Association of Nigeria (SiBAN) is locked in a tussle with current president Obinna Iwunno. SiBAN, an advocacy association recently appointed to implement Nigeria’s first blockchain policy, expelled Iwunno after a dispute over company registration. They also expelled Emeka Ezike, Rabiu Jibia, Dania Narudeen, and Mela Claude Ake, all association executives. On Wednesday, SiBAN’s board of trustees claimed Iwunno and the expelled executives named themselves “The Registered Trustees of SiBAN” in a recent company filing. The board of trustees described the registration as fraudulent because Iwunno and the executives he listed as trustees were suspended in May following allegations of financial mismanagement. In a petition seen by TechCabal, Ophie Rume, SiBAN’s former executive secretary, alleged Iwunno tried to withdraw SiBAN from the Blockchain Industry Coordinating Committee of Nigeria (BiCCON). “BiCCON was a younger organisation but they had strong connections in the crypto community in the North which SiBAN lacked, it made no sense to withdraw,” Ani told TechCabal. However, according to the petition by Rume, the then executive secretary, Iwunno applied for the exit of SiBAN without going through due internal process. “And rightfully, BiCCON rejected the application as it didn’t carry the requisite signatures from other executives,” Ani said. The former executive secretary also accused him of moving company funds into his accounts to make payments for expenses—a job reserved for the treasury and finance department. Rume claimed it allowed him to mismanage the money. Iwuno insists the allegations are unfounded. “[The CAC registration] was an act of treason,” said Toritseju Kaka, a founding member who returned to SiBAN after a two-year break, to head the caretaker committee that led the association during the investigation of the claims against Iwuno. “We had been asking him to register the association for a long time but he only found time to do it in the middle of an investigation against him,” Ani said. He claims it is a ploy to overturn the pending judgment from the investigation. Iwuno who has continued making public appearances as SiBAN president including a conference co-organised with Nigerian publication, Business Day, maintains that the board of trustees and caretaker committees are non-members trying to usurp his power. “I am taking appropriate legal actions against them,” he said. “The whole thing is a display of crypto godfatherism by illegal members of SiBAN,” Iwuno, who was elected as president in 2022, said on a call with TechCabal. “They want to remove me and install a puppet president.” He claims that the board of trustees was self-appointed and that their efforts to impeach him traced back to 2023. “They said they were the fathers of the industry and started asking me to report to them, something that no other president before me had done,” said Iwunno, who had previously been appointed Secretary to the previous president after he lost the presidential election. Ani who claims that the board has been recognised since 2019 refutes Iwunno’s suggestions that they are not legitimate members of the organisation. He said SiBAN was ideated in 2018 by Tony Emeka, the current chairman of the board of trustees, at a time when the crypto community was under a lot of pressure from the federal government. “We came up with the name, grew the community virtually and organised the first physical meeting [in July 2019.]” He also said that their donations alongside others funded the association in the early days and even now. “[Iwunno] didn’t join until 2020,” Ani said. “And right after he joined he began contesting for positions.” Even though Iwunno does not appear in the photograph taken of the first physical meeting of the association, then known as the Nigerian Blockchain Association, his LinkedIn profile says he joined SiBAN in November 2018. Iwunno claims he was with the association right from the start. “SiBAN was not created by one or two persons,” Iwunno insisted on a call with TechCabal. “There are no founders of SiBAN. It was created by people in several crypto WhatsApp groups.” At the moment, the board of trustees have revoked his administrative access to the association’s website, and virtual group on WhatsApp, and are currently trying to recover the database of email information of the SiBAN members which includes enthusiasts, professionals and blockchain companies. In an email to SiBAN members, Iwuno said that actions by the board of trustees and caretaker committee “have cast a shadow on the association.” If this tug-of-war is not settled amicably soon, it may mark the premature end of an advocacy group that has lent the loudest voice in the blockchain’s fight for legitimacy in Nigeria. Moonshot by TechCabal is gathering Africa’s most audacious builders and thinkers in Lagos, Nigeria. You can get tickets here.
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Rwanda names Mastercard Foundation director as education minister
President Paul Kagame has appointed Joseph Nsengimana minister of education, replacing Gaspard Twagirayezu who was reassigned to head the Rwanda Space Agency. Nsengimana was one of three new cabinet members named on Wednesday. Nelly Mukazayire was also appointed Permanent Secretary in the Ministry of Sports. Prior to joining government, Nsengimana was the Director at the Mastercard Foundation Centre for Innovative Teaching and Learning, based in Kigali. The Centre works with policymakers, developers, researchers and other EdTech stakeholders to support the integration of technology in education in Africa. He was the Executive Director of Global Diversity and Inclusion, Policy, Strategy and External Partnerships at Intel Corporation. He crafted and led the implementation of Intel’s Africa public policy and corporate affairs strategy. He also led the team responsible for government affairs, education, ICT and broadband policies in Sub-Saharan Africa. As education minister, Nsengimana is expected to drive Rwanda’s education agenda which the United Nation described as “the cornerstone of the nation’s development aspirations.” Nsengimana will leverage his experience in working closely with education ministers and other stakeholders in using technology to transform their education systems. Rwanda has a literacy rate of 71.4% and the highest net enrollment rate in Sub-Saharan Africa. Yet, its education sector faces challenges including low government spending, capacity gaps, infrastructure limitation and insufficient learning materials. Addressing these challenges would be a key priority for President Kagame who was sworn in for a fourth term in August 2024. Moonshot by TechCabal is gathering Africa’s most audacious builders and thinkers in Lagos, Nigeria. You can get tickets here.
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Where to buy the iPhone 16 in Nigeria, Kenya, UG, SA, & prices
The iPhone 16 series has been released, and it’s expected to generate significant demand across Africa. For consumers in Nigeria, Kenya, Uganda, South Africa, and Ghana, the iPhone 16 series will be available through various retail and telecom channels from 20th of September, 2024. Below is a guide to where you can buy the iPhone 16 series in these countries, along with the likely prices for each model in both local currency and USD. 1. Nigeria: Apple’s Official Store (Online) Jumia Nigeria (E-commerce platform) Konga (E-commerce platform) Slot Nigeria (Physical stores) Pointek (Physical stores) Likely prices (NGN): iPhone 16: ₦1,567,500 ($950) iPhone 16 Plus: ₦1,773,750 (~$1,075) iPhone 16 Pro: ₦2,186,250 (~$1,325) iPhone 16 Pro Max: ₦2,508,000 (~$1,520) 2. Kenya: Apple’s Official Store (Online) (Pre-order Available here) Jumia Kenya (E-commerce platform) Safaricom (Telecom provider offering contract deals) Phonelink Kenya (Physical electronics store) Likely prices (KES): iPhone 16: KSh 135,000 (~$950) iPhone 16 Plus: KSh 153,000 (~$1,075) iPhone 16 Pro: KSh 188,000 (~$1,325) iPhone 16 Pro Max: KSh 214,000 (~$1,520) 3. Uganda: Apple’s Official Store (Online) (Pre-order Available here) Jumia Uganda (E-commerce platform) MTN Uganda (Telecom provider offering contract deals) Banana Phone World (Physical electronics store) Likely prices (UGX): iPhone 16: UGX 3,560,000 (~$950) iPhone 16 Plus: UGX 4,000,000 (~$1,075) iPhone 16 Pro: UGX 4,950,000 (~$1,325) iPhone 16 Pro Max: UGX 5,680,000 (~$1,520) 4. South Africa: Apple’s Official Store (Online) (Pre-order Available here) iStore South Africa (Physical and online Apple reseller) (Pre-order Available here) Takealot (E-commerce platform) Vodacom (Telecom provider offering contract deals) Likely prices (ZAR): iPhone 16: R18,000 (~$950) iPhone 16 Plus: R20,500 (~$1,075) iPhone 16 Pro: R25,200 (~$1,325) iPhone 16 Pro Max: R29,000 (~$1,520) 5. Where to get iPhone 16 in Ghana Apple’s Official Store (Online) (Pre-order Available here) Jumia Ghana (E-commerce platform) Franko Trading (Physical electronics store) MTN Ghana (Telecom provider offering contract deals) Likely prices (GHS): iPhone 16: GHS 11,000 (~$950) iPhone 16 Plus: GHS 12,500 (~$1,075) iPhone 16 Pro: GHS 15,000 (~$1,325) iPhone 16 Pro Max: GHS 17,000 (~$1,520) Factors that may affect iPhone 16 prices in Africa Exchange rates fluctuations Import taxes and duties Shipping and logistics costs Retailer pricing strategies Supply and demand dynamics Local competition among brands Government regulations and policies Economic conditions in each country Note: The exchange rates used in this article are approximate and based on current average market rates. They are subject to change and may vary depending on your research, the time of purchase, the location, and the payment method. It is advisable to confirm the exact rates at the time of purchase from local vendors or financial institutions especially if you will be converting from your local currency to pay in dollars. Final thoughts on where to buy the iPhone 16 in Nigeria, Kenya, UG, SA, & prices The iPhone 16 series will be available for purchase both online and in physical stores in these countries. Major e-commerce platforms like Jumia, and telecom providers such as MTN, will offer various models, including the possibility of contract deals. For those buying through physical stores, it’s best to check with authorized Apple resellers for warranties and genuine products. With prices ranging from $950 to $1,520, depending on the model and country, consumers have plenty of options to suit their budgets and preferences.
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Apply now for the new 2024 SASSA child support grant
South Africa’s Social Security Agency (SASSA) has introduced a vital initiative. The new SASSA Child Support Grant (CSG) is now accessible to infants below the age of one. This grant ensures that financial support starts from birth, promoting child wellbeing. Eligibility criteria for the new 2024 SASSA child support grant To qualify for the CSG, your child must meet these conditions: Be below the age of one. The parent or guardian must be a South African citizen. Household income must fall below the threshold set by SASSA. How to apply Applying for the CSG is straightforward and requires visiting your local SASSA office. Ensure you bring: The child’s birth certificate. Proof of income for both parents. Valid identification documents of the applicant. Benefits of the new SASSA child support grant The SASSA CSG offers significant benefits to eligible families: Provides essential financial aid from the child’s early days. Helps reduce the burden of childcare costs. Contributes to the overall wellbeing and development of infants. Application steps Follow these steps to apply for the CSG: Visit the nearest SASSA office. Submit the required documents, including your ID and the child’s birth certificate. Complete the application form provided by the SASSA office. Wait for the outcome, which is typically processed within a few weeks. Other types of grants offered by SASSA In addition to the Child Support Grant (CSG), SASSA provides various other grants to assist individuals and families in need. These include: Old age grant: For citizens aged 60 and above, offering financial support for the elderly. Disability Grant: Provides aid to individuals with permanent or temporary disabilities. Care dependency grant: For caregivers of children with severe disabilities. Foster child grant: A grant for caregivers of foster children. Grant-in-Aid: Given to those who need full-time care and are already receiving a pension. Each grant serves to support different groups, ensuring comprehensive coverage across South Africa’s most vulnerable populations. Toll-Free Enquiries For further assistance or enquiries, contact SASSA’s toll-free number:0800 60 10 11. This helpline provides guidance on all grant-related matters. Final thoughts on the 2024 new SASSA child support grant With SASSA’s CSG for children under one, early financial support is within reach. By applying early, parents can ensure that their child receives the necessary assistance from birth. Visit the nearest SASSA office today to apply and secure your child’s future.
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Before you buy the iPhone 16 Pro in Nigeria, Ghana, Kenya & co
The iPhone 16 Pro is here with the typical Apple fanfare and glamour. But is an iPhone 16 Pro buy truly an upgrade from the likes of the iPhone 15 Pro? For many Apple lovers in Africa—whether in Nigeria, Kenya, or other countries—the upgrade might not be worth the hype, and definitely not the price. While Apple keeps raising the bar with the flamboyance and parade that herald iPhone launches, it does so little in actual device upgrades. In this article, we highlight the iPhone 15 Pro and 16 Pro for critical upgrade evaluation. Verdict: For those who already have the iPhone 15 Pro, a leap to buy the iPhone 16 Pro may not be a priority, especially in African markets where robust trade-in programs are lacking. Here’s a breakdown of the differences—and why you might want to hold onto your iPhone 15 Pro. Or why you may want to buy the iPhone 15 Pro instead of coughing up extra bucks just to get the iPhone 16 Pro. Performance and chipset The iPhone 16 Pro comes equipped with the A18 Pro chip, a step up from the A17 Pro found in the iPhone 15 Pro. However, the jump in performance is barely noticeable for most users. Day-to-day tasks such as browsing, multitasking, or even gaming show little difference in speed. iPhone 15 Pro: A17 Pro chip, 8GB RAM iPhone 16 Pro: A18 Pro chip, 8GB RAM If you’re upgrading for a performance boost, the iPhone 16 Pro offers little advantage. The A17 Pro already delivers a stellar experience, and for casual users, it’s more than sufficient. Camera: Same script, different actor Apple consistently hypes camera upgrades with each new iPhone, but this year’s improvement is minimal at best. The iPhone 16 Pro introduces the 48MP Fusion wide camera, which is only a slight upgrade from the iPhone 15 Pro’s 48MP wide camera. Both have an f/1.78 aperture, meaning their low-light performance is virtually identical. iPhone 15 Pro: 48MP Wide, f/1.78; 12MP Ultra Wide, f/2.2 iPhone 16 Pro: 48MP Fusion Wide, f/1.78; 12MP Ultra Wide, f/2.2 If photography is your main focus, don’t expect the iPhone 16 Pro to deliver groundbreaking results. The improvements are subtle, and the 48MP macro mode on the 16 Pro is a minor enhancement most users won’t notice. Structural and display aesthetics The iPhone 16 Pro has a 6.3-inch display, compared to the 6.1-inch screen of the iPhone 15 Pro. The increase in size is hardly noticeable in everyday use, and the OLED displays on both models offer equally vibrant colors and sharpness. While the resolution on the 16 Pro is slightly higher, the visual difference between the two devices is negligible. Maybe it’d have felt more exciting if it came as a foldable version. iPhone 15 Pro: 6.1″ display, 2556 x 1179 resolution iPhone 16 Pro: 6.3″ display, 2622 x 1206 resolution African consumers may not find the extra screen space worth the premium price. The current high cost of these devices makes it especially hard to justify. Battery and charging: Barely better Battery life is another area where the iPhone 16 Pro offers minimal improvements. The 16 Pro boasts up to 27 hours of video playback, compared to 23 hours on the 15 Pro. There’s also an upgrade to 25W MagSafe charging from the 15W on the 15 Pro, but this only shaves off a few minutes of charge time. iPhone 15 Pro: Up to 23 hours video, 15W MagSafe charging iPhone 16 Pro: Up to 27 hours video, 25W MagSafe charging For African buyers, this upgrade won’t save you from carrying your power bank around. In other words, the marginal improvement in battery life is unlikely to justify the expense. Video and audio recording The iPhone 16 Pro features Spatial Audio and Dolby Atmos support, which were also present on the iPhone 15 Pro. The quality of the stereo speakers remains the same across both models, with immersive sound, but nothing significant that sets the 16 Pro apart. Whether you’re watching movies or streaming music, the difference between the two devices will be hard to detect. Audio: iPhone 15 Pro: Stereo speakers, Dolby Atmos, Spatial Audio iPhone 16 Pro: Stereo speakers, Dolby Atmos, Spatial Audio In terms of video recording, the iPhone 16 Pro does have slight improvements. Apple has introduced Cinematic Mode in 4K at 60fps, whereas the iPhone 15 Pro is limited to 4K at 30fps. However, unless you’re a filmmaker or videographer, this won’t make much of a difference in daily use. Video: iPhone 15 Pro: Cinematic Mode in 4K at 30fps, 4K video recording at 60fps iPhone 16 Pro: Cinematic Mode in 4K at 60fps, 4K video recording at 60fps For most African users, this upgrade is unlikely to impact your experience significantly. Both devices offer excellent video and audio quality, but the iPhone 16 Pro doesn’t bring enough to the table to warrant an immediate upgrade, especially if you’re satisfied with the iPhone 15 Pro’s already impressive capabilities. Storage: Same ol’ story Despite the ever-growing need for more storage due to larger apps, higher-resolution videos, and an increase in 4K content, Apple didn’t budge on storage options. Both the iPhone 15 Pro and 16 Pro offer the same storage capacities, ranging from 128GB to 1TB. iPhone 15 Pro: 128GB/256GB/512GB/1TB iPhone 16 Pro: 128GB/256GB/512GB/1TB For those hoping that Apple would increase the base storage to 256GB, especially considering the growing digital demands, you’ll be disappointed. This lack of change underscores the point that the iPhone 16 Pro isn’t a revolutionary upgrade. Connectivity and future-proofing: Wi-Fi 7 advantage The iPhone 16 Pro supports Wi-Fi 7, compared to the 15 Pro’s Wi-Fi 6E. While this offers faster speeds and better reliability, most African users may not have access to Wi-Fi 7 infrastructure anytime soon. If you’re in an area where 4G or even 5G is the norm, this upgrade won’t matter today. iPhone 15 Pro: Wi-Fi 6E, 5G iPhone 16 Pro: Wi-Fi 7, 5G Unless you’re planning to hold onto
Read MoreThe ‘Big Four’ fallacy: Rethinking African markets
This article was contributed to TechCabal by Dotun Olowoporoku. Here’s a thought experiment: What if your fundamental assumptions about investing in African startups were wrong? What if the Big Four markets—Nigeria, Egypt, Kenya, and South Africa—aren’t actually where the greatest opportunities lie? Most VCs investing in Africa are making a classic mistake: pattern matching. They see success stories of startups like Paystack, Flutterwave, and Moniepoint in Nigeria, and think, “Aha! Nigeria is where it’s at.” But this is lazy thinking. Similar logic underlies the signal-seeking investment theses for headline markets such as Kenya, Egypt, and South Africa. It’s the equivalent of deciding in 1995 that the only place to invest in tech was Silicon Valley. The truth is, Africa isn’t one market. It’s not even four markets. It’s a complex tapestry of interconnected economies, each with its own unique challenges and opportunities. While the Big Four are undoubtedly important and proven markets, by focusing solely on them, we’re potentially missing out on the next big things. The pattern matching trap Pattern matching is a useful heuristic and cognitive shortcut that investors often use to make quick decisions. It involves recognising familiar patterns and applying previous experiences to new situations. In the context of African investments, this can lead to both positive and negative outcomes. On the positive side, pattern matching can help investors quickly identify promising startups that share characteristics with previous successes. It can streamline due diligence processes and help allocate resources efficiently. For example, recognising similarities between the opportunities presented by a new fintech idea and Paystack might lead to a good investment decision. However, the same thought pattern can potentially lead to a concentration of capital in a handful of markets, founder types, and verticals while leaving vast swathes of the continent untapped. This narrow focus creates a self-fulfilling prophecy: more investment in certain markets leads to more success stories, which in turn attracts even more investment, creating a feedback loop that further marginalises other regions. This isn’t just bad for the overlooked markets—it’s potentially detrimental for investors too. We’re competing for the same deals in the same overcrowded markets, driving up valuations and potentially missing out on hidden gems elsewhere. The intense competition in these markets can lead to inflated customer acquisition costs, team compensation, and reduced returns on investment. Moreover, pattern matching can lead to missed opportunities. By focusing solely on what has worked before, we might overlook innovative solutions that don’t fit the established patterns. This is particularly risky in a diverse continent like Africa, where unique local challenges often require novel approaches. But here’s the thing: the best opportunities often lie where others aren’t looking. And in Africa, that means looking beyond the Big Four. It requires a willingness to challenge assumptions, dig deeper into unfamiliar markets, and recognise that the next big success might come from an unexpected place or in an unexpected form. To truly capitalise on Africa’s potential, investors need to balance pattern recognition with openness to new ideas and markets. This might involve developing new frameworks for evaluating opportunities, building networks in underserved regions, or collaborating with local partners who have a deep understanding of these markets. Lakes and Oceans: A new mental model for African markets Instead of thinking in terms of countries, we need to start thinking in terms of what I call “Lakes” and “Oceans.” This isn’t just a cute metaphor—it’s a fundamental shift in how we should approach African markets. Ocean markets are the behemoths. Nigeria, Egypt, Kenya, South Africa—these are your Atlantics and Pacifics. They’re vast, with huge populations and GDPs to match. On paper, they look irresistible. But here’s the catch: they’re also shark-infested waters. Everyone’s fighting for a piece of the action, from local players to multinational corporations. The competition is fierce, and the regulatory environment can be as unpredictable as a rogue wave. Lake markets, on the other hand, are your Victorias and Tanganyikas. Countries like Senegal, Côte d’Ivoire, Morocco, or Cameroon. They’re smaller, sure, but don’t let that fool you. These markets are deep, and they’re connected. A startup that can navigate one of these lakes well can often easily slip into neighbouring waters. The real magic of Lake markets is in their interconnectedness. Many share common currencies (like the West African CFA franc), have similar regulatory environments, or are part of regional economic communities. This means that once you’ve cracked one market, expanding to others can be relatively smooth sailing. Here’s where it gets really interesting: Lake markets often have room for only one or two dominant players. If you can back the right horse early, you might just end up owning the whole lake. And if that player can then navigate from lake to lake? You’re looking at potentially geo-diverse dominance. Take the example of Wave. They didn’t just dip their toes in Senegal’s waters. They dove headfirst, became the big fish in that pond, and then swam over to Côte d’Ivoire. Before anyone knew it, they were valued at $1.7 billion. That’s not just impressive; it’s a blueprint for how to approach these markets. The Ocean strategy is about fighting for market share in crowded waters. The Lake strategy is about becoming the big fish in a small pond, and then expanding your territory pond by pond. It’s not about making a splash; it’s about creating ripples that turn into waves (pun unintended!). Charting a new course This shift has profoundly influenced our approach at Ventures Platform. We’ve begun to view African markets through a new lens, looking beyond the obvious choices. Our strategy now involves exploring calculated risks in less familiar territories, seeking out hidden opportunities that others might overlook. For founders, this paradigm shift opens up a world of opportunities. By focusing on dominating a Lake market and then strategically expanding across interconnected regions, you have the potential to build something truly transformative. The next African unicorn might not emerge from Lagos or Nairobi, but from Dakar or Abidjan. The future of African tech
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👨🏿🚀TechCabal Daily – The long haul
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF It’s been a long week, but we’d like to end it on a light note. We spent half of yesterday grovelling to our Events team and we’re back with a special offer for you. For the next couple of days, we’re offering TC Daily readers 25% off tickets to Moonshot 2024. All you have to do is enter the coupon code “MSTCD” for local tickets, and “MSTCD1” for international tickets. The long road to a Kenyan fintech expansion GT Bank close to finalising Finacle move Nigeria to generate $100 billion annually from creative economy Nigeria to generate $100 billion annually from creative economy The World Wide Web3 Jobs Expansions The long road to a Kenyan fintech expansion Image source: Tenor Acquiring a fintech operating licence in Kenya is a long and complicated process. It can take up to two years to get an operating licence, mainly because the Central Bank of Kenya (CBK) has strict rules. Fintechs must prove they meet capital requirements, consumer protection, and anti-money laundering requirements. As Kenya’s fintech space grows, the CBK has become even more cautious, adding more time to the approval process. Only a few fintechs like Flutterwave have managed to extend their services to Kenya. They do this by partnering with local banks or mobile operators like Safaricom’s M-PESA or Airtel Money to enter the market. Others, like Nigerian fintech Rise, choose the M&A option. The reality is that fintech is still fairly new in Africa, and regulators are cautious due to past money laundering issues. This often complicates the process. However, licence passporting could ease this by allowing fintechs to operate across multiple countries with a single licence. Here’s Kenn Abuya reporting for TechCabal; “Imagine you have a driver’s licence issued in Kenya. With ‘licence passporting’, you could drive your car in other countries in Eastern or Southern Africa without applying for a separate driving licence from each country. No African country has adopted licence passporting.” Passporting could be a good plan. For this to work, central banks need to come together, at least regionally, to agree on rigorous standards to vet fintechs. Even a continent-wide passporting through the African Union is also a possibility; but first, the issue of money-laundering rife in fintech still poses a problem. The order of achieving this looks somewhat like this: fintechs coming together to stop money laundering and fraud, then this makes a stronger case for the passporting idea that has been floated in the space. In the meantime, fintechs looking to enter Kenya need to be prepared for a long, careful process to get fully licenced and operational. 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. Banking GT Bank close to finalising Finacle CBA migration Image source: GT Bank On September 9, Sterling Bank, a Nigerian tier-2 commercial bank formally announced its core banking application (CBA) migration to SeaBaaS, a locally-developed platform—a couple of days after we first reported. Yesterday, we again reported that another bank, GTBank, a tier-1 bank, is finalising a migration from Basis/Banks to Finacle, a CBA platform provided by India’s Infosys. While Sterling Bank went local, GT Bank is moving from the UK to India. Both moves are also not defined by the same reason; Sterling Bank likely chose a local custom-built platform to reduce costs and cut dollar spend. GTBank, on the other hand, opted for Finacle because of its retail banking and non-banking demands. While Finacle, according to a price comparison by Capterra—an independent software rating platform—is cheaper than Basis at base level, the former is tailored for large commercial banks that require extensive functionality, scalability, and customisations, which often drives up the cost. Usually, Nigerian banks validate their core banking options by running small trials (Proof of Concept) to test the software, checking the vendor’s reputation, and getting feedback from other banks that use the system. Local service providers have an opportunity here. They provide cheaper solutions and have timezone availability for post-migration support that may not be available in foreign companies. While it is necessary to improve the reliability of their systems, another area they could look at is offering cloud-based CBA solutions that reduce the cost of hardware infrastructure and offer scalability. However, it’s not a zero-sum case. While big Indian software providers are winning the pockets of big retail banks in Nigeria, local providers like Qore are finding business with smaller cooperatives, microfinance and digital banks, like HopePSB and Ekondo Microfinance Bank. Fincra secures International Money Transfer Operator (IMTO) licence in Nigeria Since its inception, Fincra has provided businesses with local payment options. However, with the IMTO licence, Fincra can now manage funds transfers from abroad to Nigerian recipients more efficiently. Read more here. Economy Nigeria to generate $100 billion annually from creative economy GIF Source: Zikoko Memes $100 billion. That’s the amount Nigeria intends to generate from its creative economy yearly. If you’ve followed the Nigerian movie industry closely—where films regularly hit ₦1 billion ($604,000) in box office revenue—and the Afrobeats to the world movement, you’d agree that these numbers are achievable. However, the current contribution of Nigeria’s creative economy is a far cry from those figures. At $5 billion, the sector contributes just 1.2% to the country’s GDP. Despite the abundant talent and cultural richness, challenges such as inadequate infrastructure, funding constraints, and certain policy gaps have hindered increased contribution by the creative economy to the GDP. Hannatu Musa Musawa, Nigeria’s Minister of Art, Culture and the Creative Economy is rolling up her sleeves to address those gaps. Yesterday, the Minster released an 8-point plan aimed at transforming the country’s creative economy and creating 2 million jobs. The Ministry will focus on areas like film production, music, fashion, and digital content creation. Key elements of the plan include improving access to funding
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