👨🏿🚀TechCabal Daily – Ghana’s is on a roll
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday More exciting news about TC Daily: We’re having a special edition written by an ecosystem stakeholder. We won’t reveal who it is just yet, but this skweird founder is dedicating a couple hundred words, on August 29, to a pretty exciting concept. Don’t miss out on TC Daily till then. In today’s edition Telcos mull over reducing Nigerian investments Ghana records reduced inflation 5 months in a roll Inside Nigeria’s cost of Living crisis TAJBank gets court order for fintechs to reverse $87,817 The World Wide Web3 Opportunities Telcos Telcos say the cost of doing business in Nigeria is high Doing business in Nigeria is becoming more difficult; even the big guys are complaining. During a panel discussion at the Telecom Townhall Forum hosted by Financial Derivatives Company (FDC) on Tuesday, CEOs of MTN Nigeria, Airtel Nigeria and IHS Towers complained that the cost of offering telecom services in Nigeria is becoming too expensive to handle. Multiple taxations, worsening power supply, and currency volatility are eroding business margins and skyrocketing the cost of providing services. Providing telecom services costs a lot of money: the fibre cables that run throughout the roads and cities in Nigeria, the network towers you see in your neighbourhood, and the cost of maintaining these infrastructures are sky-high. Telcos have spent at least $3 billion dollars in yearly investment since 2001, and more than $4 billion to keep Nigerians connected to the internet, according to Bolaji Balogun, Chapel Hill Denham CEO. The CEOs are now pushing for tariff increases on data and voice subscriptions. All this coming at a time when Nigerians are facing high inflation. A potential tariff hike will be a difficult pill for Nigerians to swallow. However, there’s a clear indication of the challenging business environment in Nigeria, where even industry giants are struggling to stay afloat. 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. Economy Ghana records reduced inflation 5 months in a row When inflation is on the rise, central banks typically increase interest rates to make borrowing more expensive, which reduces spending and ultimately slows down price increases. In July 2023, the Bank of Ghana (BoG) Monetary Policy Committee (MPC) raised its interest rates to 30% to help drop its inflation from 43%. The BoG kept the rates constant for about five months, helping to drive down inflation to about 23.2% in Dec 2023. Yesterday, headline inflation for July eased to about 20.90%, the lowest since March 2022 (19.40%). This reduction was attributed to a decline in the prices of food. July’s deflation result is a continuation of a slowdown in the country’s inflation rate. While July’s figure is still very far from the BoG target of 8%, analysts at Stears predict that Ghana’s inflation will reach 15% in the coming months. The current rates might also prompt the MPC—which is keen to keep rates higher for longer to hedge against inflation—to review interest rates in its next meeting. The MPC will meet in September to decide the rates. 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 Inside Nigeria’s cost of living crisis Nigeria is grappling with a severe cost-of-living crisis that is rapidly eroding the purchasing power of its citizens. In Lagos, the nation’s economic capital, the situation is particularly dire. Many workers earn less than ₦100,000 ($63.52) monthly, according to a report by PaidHR. That figure is barely sufficient to cover basic needs like food, transportation and housing. This crisis extends beyond Lagos. A NielsenIQ survey revealed that 81% of Nigerians feel worse off compared to the previous year. According to the report, more and more Nigerians struggle to afford Fast-Moving Consumer Goods (FMCG). The country’s FMCG market had a 17.4% decline in the volume of transactions, painting a picture of how grim the situation is. Although there has been a reduction in the number of goods bought, customers have had to pay a premium to get them. The NielsenIQ report suggests that the FMCG market value grew by 24.8% as a result of price increments. While rising prices and falling incomes are creating immense hardship for millions of Nigerians, the government has implemented policies to stem the situation, many of which citizens believe are not enough. Cybersecurity TAJBank gets court order for fintechs to reverse $87,817 System glitches have become the proverbial bull in a China shop for banks and fintechs. When they happen, the carnage can be spectacular—and costly. TAJBank, a Nigerian regional bank focused on SME financing, lost more than just money to a system glitch that occurred during an unspecified period this year. The bank has since taken the matter to court, fighting to keep its reputation. In a motion filed on July 23, 2024, the bank said that six of its customers lost ₦139.63 million ($87,817) due to a system glitch. The glitch allowed unauthorised transactions and withdrawals from these customers’ bank accounts. Desperate to recover the funds, TAJBank traced the money spread across Fairmoney, OPay, and PalmPay accounts. As a result, the Federal High Court in Abuja has stepped in, issuing an interim freezing order against accounts in these fintech companies. The presiding judge, Justice Peter Lifu granted TAJBank’s request on July 26, 2024, ordering the fintechs to disclose account balances within seven days, adjourning for another hearing on August 12, 2024. But on Monday’s hearing, FairMoney, OPay, and PalmPay were conspicuously absent. No legal representation, no explanation. The court subsequently adjourned the hearing to September 30, 2024. And in the meantime,
Read MoreFitch cuts Union Bank’s credit rating over capital breaches
Fitch Rating has downgraded Union Bank of Nigeria’s credit rating citing a breach in capital adequacy ratio (CAR) requirement. Regulators use CAR to ensure banks have sufficient capital to absorb potential losses without losing depositor funds or becoming insolvent. It is calculated by dividing capital by risk-weighted assets. According to the Central Bank, national banks like Union Bank are required to maintain a minimum CAR of 10%. According to Fitch estimates, Union Bank reported 16% CAR in Q3 2023, above its threshold. Fitch lowered Union Bank’s long-term issuer default ratings (IDR) from ‘B-‘ to to ‘CCC’. It also downgraded the bank’s national long-term rating. However, it removed Union Bank from negative watch. The credit rating agency warned that an extension of the breach in CAR requirements could lead to a further downgrade in the bank’s viability ratings, which measure an entity’s relative ability to meet financial commitments. The new credit ratings will pressure Union Bank’s new leadership to strengthen the focus on buffering its capital base to tolerate naira depreciation and credit losses. The bank’s recovery will depend on internal capital generation and execution of an agreed-upon recapitalisation plan pending its merger with Titan Trust Bank. In January 2024, the CBN dissolved Union Bank’s leadership and appointed a new CEO due to regulatory infringements, corporate governance breaches, and involvement in activities that threatened its financial stability. Union Bank did not respond to a request for comments. Nigeria’s second-oldest lender faces significant risks due to its lending practices. Single-borrower and industry concentrations accounted for 63% of its gross loans in 2023, Fitch said. The foreign loans–half of the gross loans–have also inflated due to naira devaluation. The bank’s gross loans grew 38.1% to ₦1.4 trillion compared to ₦.1.0 trillion in 2022, according to its latest unaudited financial report. In the nine months of 2023, Union Bank’s gross earnings grew 120% to ₦ 309.1 billion due to lending and currency devaluation gains. Its profit before tax saw a significant 461% jump to ₦102.3 billion compared to the previous year. Union Bank came under pressure in December 2023 after a probe into the activities of the CBN under former Governor Godwin Emefiele alleged that the bank’s 2022 acquisition by Titan Trust Bank was funded by “ill-gotten wealth.” The report claimed Emefiele acquired Union Bank of Nigeria for Titan Trust Bank Limited through proxies. Titan Bank denied the allegations. The report alleged that the ex-central banker used two Dubai-based companies, Luxis International DMCC and Magna International DMCC, to set up Titan Bank. In 2021, Titan Bank sought the CBN’s no objection to its proposed consolidation with Union Bank. It first acquired 91.5% of Union Bank’s shares and completed the takeover by 2022.
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List of all LASU 2024 courses & admissions requirement
Lagos State University (LASU) has announced its 2024 post UTME screening details, and it has also made its updated course requirements for the 2024 academic session available. These requirements are key for students aiming to secure a place in LASU admissions 2024. Understanding the specific O’Level subjects and JAMB combinations needed for each course is essential for a successful application. Prospective students must ensure they meet these criteria to enhance their chances in LASU admissions 2024. Accounting O-Level subject requirements: English Language, Mathematics, Economics, and any Social Science subject. JAMB subject requirements: English Language, Mathematics, Economics, and any Social Science subject. Accounting Education O-Level subject requirements: English Language, Mathematics, Economics, and any Social Science subject. JAMB subject requirements: English Language, Mathematics, Economics, and any Social Science subject. Aerospace Engineering O-Level subject requirements: English Language, Mathematics, Physics, Chemistry, Further Mathematics, and any Science subject. JAMB subject requirements: English Language, Mathematics, Physics, Chemistry. Agricultural Economics and Farm Management O-Level subject requirements: English Language, Chemistry, Biology or Agricultural Science, and any of Mathematics, Physics, Geography, Economics, Science. JAMB subject requirements: English Language, Chemistry, Biology or Agricultural Science, and any of Mathematics, Physics. Agricultural Extension and Rural Development O-Level subject requirements: English Language, Chemistry, Biology or Agricultural Science, and any of Mathematics, Physics, Geography, Economics, Science. JAMB subject requirements: English Language, Chemistry, Biology or Agricultural Science, and any of Mathematics, Physics. Animal Science O-Level subject requirements: English Language, Chemistry, Biology or Agricultural Science, and any of Mathematics, Physics, Geography, Economics, Science. JAMB subject requirements: English Language, Chemistry, Biology or Agricultural Science, and any of Mathematics, Physics. Arabic O-Level subject requirements: English Language, and any Arts, Social Science, Science, or Trade subject. JAMB subject requirements: English Language, Arabic, and any Arts or Social Science subject. Arabic Education O-Level subject requirements: English Language, Arabic, and any Arts or Social Science subject. JAMB subject requirements: English Language, Arabic, and any Arts or Social Science subject. Architecture O-Level subject requirements: English Language, Mathematics, and any of Physics, Chemistry, Technical Drawing, Geography, Fine Arts, Biology. JAMB subject requirements: English Language, Mathematics, Physics, and any of Chemistry, Geography, Arts, Economics. Banking and Finance O-Level subject requirements: English Language, Mathematics, Economics, and any subject from Commerce, Office Practice, Accounting. JAMB subject requirements: English Language, Mathematics, Economics, and any subject from Government, Geography. Biochemistry O-Level subject requirements: English Language, Mathematics, Physics, Chemistry, Biology. JAMB subject requirements: English Language, Biology, Chemistry, and any subject from Physics, Mathematics. Biology Education O-Level subject requirements: English Language, Mathematics, Biology, Chemistry, and any subject from Arts, Social Science, Science or Trade. JAMB subject requirements: English Language, Biology, and any subject from Chemistry, Mathematics, Physics. Botany O-Level subject requirements: English Language, Mathematics, Chemistry, Biology, and any subject from Physics, Science. JAMB subject requirements: English Language, Biology, Chemistry, and any subject from Science. Building O-Level subject requirements: English Language, Mathematics, Physics or Chemistry, and any subject from Technical Drawing, Economics, Geography, Wood Work. JAMB subject requirements: English Language, Mathematics, Physics, and any subject from Economics, Geography, Chemistry. Business Administration O-Level subject requirements: English Language, Mathematics, and any subject from Geography, Accounting, Commerce, Government, Economics. JAMB subject requirements: English Language, Mathematics, Economics, and any subject from Commerce, Geography, Government. Business Education O-Level subject requirements: English Language, Mathematics, Economics, and any subject from Commerce, Accounting, Business Method, Arts or Social Science, Book Keeping. JAMB subject requirements: English Language, Mathematics, Economics, and any subject from Literature, Geography, Arts. Chemical Engineering O-Level subject requirements: English Language, Mathematics, Physics, Chemistry, and any subject from Science. JAMB subject requirements: English Language, Mathematics, Physics, Chemistry. Chemistry O-Level subject requirements: English Language, Mathematics, Physics, Chemistry, Biology. JAMB subject requirements: English Language, Chemistry, and any subject from Physics, Biology, Mathematics. Chemistry Education O-Level subject requirements: English Language, Mathematics, Chemistry, Biology, and any subject from Physics, Agricultural Science. JAMB subject requirements: English Language, Chemistry, and any subject from Physics, Biology, Mathematics. Christian Religious Studies O-Level subject requirements: English Language, Christian Religious Studies, and any subject from Arts or Social Science. JAMB subject requirements: English Language, Christian Religious Studies, and any subject from Arts. Christian Religious Studies Education O-Level subject requirements: English Language, Christian Religious Studies, and any subject from Arts or Social Science. JAMB subject requirements: English Language, Christian Religious Studies, and any subject from Arts. Civil Engineering O-Level subject requirements: English Language, Mathematics, Physics, Chemistry, and any subject from Technical Drawing, Further Mathematics, Science. JAMB subject requirements: English Language, Mathematics, Physics, Chemistry. Common/Civil Law O-Level subject requirements: English Language, Mathematics, Literature in English, and any subject from Arts, Social Science, Science or Trade. JAMB subject requirements: English Language, and any subject from Arts or Social Science. Computer Engineering O-Level subject requirements: English Language, Mathematics, Physics, Chemistry, and any subject from Technical Drawing, Further Mathematics, Biology. JAMB subject requirements: English Language, Mathematics, Physics, Chemistry. Computer Science O-Level subject requirements: English Language, Mathematics, Physics, Chemistry, and any subject from Further Mathematics, Biology, Geography. JAMB subject requirements: English Language, Mathematics, Physics, and any subject from Chemistry, Biology, Geography. Dentistry O-Level subject requirements: English Language, Mathematics, Physics, Chemistry, Biology. JAMB subject requirements: English Language, Biology, Chemistry, and any subject from Physics, Mathematics. Economics O-Level subject requirements: English Language, Mathematics, Economics, and any subject from Government, Geography, Commerce, Accounting. JAMB subject requirements: English Language, Economics, Mathematics, and any subject from Government, Geography, Accounting. Economics Education O-Level subject requirements: English Language, Mathematics, Economics, and any subject from Commerce, Government, Accounting. JAMB subject requirements: English Language, Economics, Mathematics, and any subject from Government, Geography, Commerce. Electrical/Electronics Engineering O-Level subject requirements: English Language, Mathematics, Physics, Chemistry, and any subject from Technical Drawing, Further Mathematics. JAMB subject requirements: English Language, Mathematics, Physics, Chemistry. English Language O-Level subject requirements: English Language, Literature in English, and any subject from Arts, Social Science, Science or Trade. JAMB subject requirements: English Language, Literature in English, and any subject from Government, Arts. English Education O-Level subject requirements: English Language, Literature in English, and any subject from Arts, Social Science, Science or Trade. JAMB subject requirements: English Language, Literature in English, and
Read MoreMost Lagosians earn less than ₦100,000 monthly, PaidHR survey shows
Lagos, Nigeria’s economic powerhouse, is a city of contrasts. While the big buildings in its business districts signify wealth and ambition, its residents’ salaries tell a different story. If you earn more than ₦200,000 monthly, you’re an outlier in Nigeria’s commercial capital. Most people who work in Lagos (78%) earn less than ₦100,000. These data points are from the State of the Employed report by PaidHR, a Nigerian startup that helps businesses manage their HR functions. The company spoke to over 1,600 employees—half of whom are 19 to 35—and employers in Lagos. “[The report] helps us understand the plight of people who earn salaries, spotlighting how they earn it, where they earn it, and what their earnings enable them to do,” said Seye Bandele, PaidHR CEO. As Nigeria’s cost-of-living crisis deepens, half of working Lagosians spend more than they earn monthly. They resort to second income streams to supplement those earnings. These workers (51.2%) have no income left after covering necessities like food, transport, rent, and utility payments. Food is the most significant of those bills, with workers spending ₦54,000 on food monthly—that number used to be ₦38,000 in 2023. Transport costs also jumped from ₦16,000 monthly in 2023 to ₦22,000 in 2024. Only a few people (30%) have budgets for recreation, and saving is a similar luxury. For those who do manage to save, the primary motivation is rent. Overall, men tend to save more than women, particularly married men. However, single women save more than single men. While credit solutions are crucial for navigating economic hardships, the report reveals a significant gap in access. 70% of Lagos workers lack employer-backed loans or credit facilities. This presents an opportunity for digital lenders to develop credit solutions tailored to these specific needs. The nation’s economic woes have also affected the productivity of these workers. 55% of workers surveyed said the country’s economy has affected their productivity at work. While financial strain is a key factor, a surprising 58% of respondents blamed their mental health and lack of employer support for poor performance at work.
Read MoreAccess Holdings extends $233 million rights issue to August 23
Access Holdings Plc, the parent company of Nigeria’s biggest banks by assets, has extended the deadline for its ₦351 billion ($233 million) capital raise, citing the recent nationwide protests. The lender extended the deadline for its public offer from August 14 to August 23 after securing approval from the Securities & Exchange Commission (SEC), according to a regulatory filing on Tuesday. The extension will “provide shareholders with ample opportunity to subscribe to their rights.” Access Holdings is offering 17.7 billion new ordinary shares at ₦19.75 each. The bank will use the funding to pursue its global ambitions. “During the extended period of the Issue, dealings by the Company’s insiders on the Company’s shares will continue to be strictly limited to participation in the Rights Issue as earlier approved by the Exchange in respect of the Non-Dealing Period on the Company’s Audited Interim Financial Statements for the Period Ended June 30, 2024, until 24 hours after the publication of the Interim Financial Statements,” it added. The extension comes 24 hours after Zenith Bank, Nigeria’s largest bank by market capitalization, flagged off a combined offer to raise ₦290 billion ($182 million) in line with new capital requirements of Nigeria’s Central Bank. Fidelity Bank, a tier-2 commercial bank, and GTCO, a Nigerian financial services group valued at ₦1.39 trillion, closed their public offers on August 12. On July 9, Access Holdings told shareholders and regulators that it seeks to “become the world’s first truly African global brand in the financial sector.” In two decades, Access Holdings grew aggressively from a mid-sized lender to the biggest banks on the continent through strategic acquisitions. The lender now operates in 18 countries. It will invest 65% of the raised capital to grow its loan book, spend 20% to upgrade its infrastructure and the remaining 20% will be used to set up new branches across the country.
Read MoreMTN, Airtel, IHS warn of reduced spending in Nigeria, push for tariff hikes
Airtel, MTN Nigeria, and IHS Towers, some of Nigeria’s biggest telecom companies, are considering reducing their investments in the country. The companies said multiple taxations, worsening power supply, and two years of losses linked to FX volatility are forcing a rethink. “We are beginning to have that conversation with shareholders on whether to continue the pace of investment in Nigeria because, admittedly, the capital being invested in Nigeria is being compared to capital being invested in other markets,” Airtel Nigeria CEO Carl Cruz said during a panel session at the Telecom Townhall Forum hosted by Financial Derivatives Company (FDC) on Tuesday. Karl Toriola, MTN Nigeria’s CEO, pointed out that the government’s reluctance to approve a tariff hike puts telcos in a tough spot as inflation quickens. “The government needs to look again; if your cost input is higher than what you are selling, it is a problem. So we must detach ourselves from the political obligations of price treatment,” Toriola said. “The market dynamics and macros have not been the same over the past five years, so there’s only so much that we can extract value from these players,” said Kazeem Oladepo, vice president at IHS Towers. Data shared by Bolaji Balogun, CEO of Chapel Hill Denham, showed that the total investment in the telecom industry since 2001, when the first telecom licence was issued, amounts to over $70 billion. While that’s significant, at least $4.33 billion is needed to connect most Nigerians to the internet. Maintenance costs are also significant. It cost over ₦14 billion to fix the 59,000 fibre cuts that happened between 2022 and 2023, said Gimba Mohammed, director of government and external relations at IHS Towers. Telcos overthink these investments as they post losses in a difficult economic environment. Shareholders, whose equity contribution is at risk, also share their worries as losses have piled up in the last three quarters. However, underinvestment is a real danger. Data from the Financial Derivative Company showed that a 1% drop in telecom investment leads to a 1% drop in the industry’s GDP contribution. That’s not a drop Nigeria can afford at this time. Yet, regulators remain reluctant to approve tariff increases that may prove unpopular and drive Nigerians, who are struggling with a dire cost-of-living crisis, to the edge. It leaves regulators between Scylla and Charybdis.
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👨🏿🚀TechCabal Daily – Pernod Ricard tops up its Jumia shares
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We’re excited to invite you to the Ecobank Fintech Challenge Semi-Finals happening today, August 14, 2024, at 2:30 pm WAT at the Ecobank Pan African Centre in Lagos, Nigeria! The Ecobank Fintech Challenge is an exciting competition that seeks to identify and support the most innovative fintech solutions from across the globe. Out of over 1,550 global applications, 40 fintechs have made it to the semi-finals. Join us today for the unveiling of the 40 semi-finalists and the announcement of the top finalists for the 2024 competition. You can join in the programme physically or register to stream it online here. In today’s edition Egypt launches a carbon market Pernod Ricard tops up its Jumia shares Kenyan ride-hailing drivers set new fares Why PrivPay shutdown The World Wide Web3 Events Climate Egypt launches Carbon market Africa is emerging as a key player in the global carbon market, with countries increasingly recognising the lucrative potential of selling carbon credits. Uganda, for instance, has already issued over 33 million carbon credits under the Clean Development Mechanism. Other nations like Kenya, Zimbabwe, and South Africa are also actively developing their carbon markets. Now, Egypt has entered the fray. The country officially launched its carbon market yesterday, opening doors for companies and countries to offset their emissions by purchasing carbon credits. This move is expected to generate substantial revenue for Egypt, contributing to its goal of reducing carbon emissions by 17 million tonnes annually. With a global carbon market valued at $909 billion, Egypt’s entry is a strategic move. It joins a growing number of African nations capitalizing on this opportunity to fund climate action projects while contributing to global emissions reduction efforts. 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. Companies Pernod Ricard tops up its Jumia shares Jumia has had its fair share of challenges over the years, but it still has admirers who are putting their money where their mouth is. And despite missing revenue expectations for Q2 2024, Jumia’s admirers are in it for the long haul. Pernod Ricard, the maker of wines and spirits like Jameson, recently increased its stake in Jumia from 6.4% to 7.5%, buying 1.27 million secondary shares in the e-commerce company worth an estimated $6 million. Pernod bought the shares on August 6, 2024, when Jumia stocks ($JMIA) traded at $4.68. On the surface, it does seem like the wine-maker bought the dip after $JMIA price crashed from $11.11 on August 1. But after Jumia announced its sale of secondary shares last week, Pernod moved quickly to shore up its ownership stake in the face of another potential dilution. The wine-maker has been a Jumia shareholder since December 2018, initially owning 8.4%. However, Jumia’s previous secondary share sales in 2020 and 2021 diluted existing shareholders like Pernod to 6.4% which it held since. Topping up its shares amidst another secondary share sale looks like a defensive move to preserve its stake in the company. After all, what’s the point of going long on a company if, when they actually find success, you only have a negligible stake? It’s equally an opportunistic move for both companies, as Jumia is hedging its bets to regain form in Q3 2024. For Pernod Ricard, it could explore exclusive joint marketing campaigns and product placements on Jumia. 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 Uber and Bolt drivers raise prices in Kenya Africa’s gig economy is under strain as ride-hailing drivers rebel against what they deem as exploitative conditions. Soaring fuel prices and the rising cost of living have pushed drivers to the brink, igniting disputes over fare prices and working conditions. In Kenya, drivers have taken matters into their own hands, defying platform regulations by imposing their own fares. The drivers started making a case for an increment in fare prices with a five-day protest in July. The drivers also asked for the removal of a VAT tax and the lowering of Uber’s commission fee last year. These drivers contend that the current fare prices do not make business sense. They recommend a minimum fare increase from $1.40 (KES180) to $2.33 (KES300). The Automobile Association of Kenya also recommended a $0.26 (KES33) charge per kilometre. This unprecedented move brings a new challenge to ride-hailing apps, which now have to deal with customers’ reports of harassment and assault when they refuse to pay the unofficial rates. The move also raises questions about the sustainability of the gig model itself. The ride-hailing companies started negotiations with drivers yesterday, with a decision expected between Thursday and Friday. Startups Safaricom blocking API access led to PrivPay shutdown Businesses thrive in the API economy. Yet, for both providers and dependents, risks and rewards go hand in hand. Providers could be risking exposure to security and regulatory non-compliance from third-party businesses they open access. For dependents, while the rewards are high to build a business on borrowed technology, the risks are equally zero-sum. They could wake up to being cut off from access to technology that spins money for them—like PrivPay. The situation between PrivPay, a Kenyan fintech startup and M-PESA, perfectly demonstrates this nuance. PrivPay built its business on M-PESA’s application programming interfaces (APIs) to allow users to hide their personal information when they send money. It was selling the privacy dream to Kenyans who perform 99% of their mobile money transactions on M-PESA. But the problem with this business model is that it goes against regulations in the financial services industry that make
Read MorePrivPay shutdown after Safaricom cut API access over compliance violations
PrivPay, a Kenyan fintech that allowed customers to make M-PESA transactions without revealing their personal details, shut down in May 2023 after Safaricom cut its access to M-PESA APIs. Safaricom’s action was connected to a worry that the fintech’s offering violated several compliance issues, two people with direct knowledge of the matter said. Names and phone numbers shared with merchants in transactions are often used for marketing, and PrivPay, which launched in 2022, sold the notion of privacy to users. Its solution was powered by Daraja—M-PESA’s free payment APIs. The startup claimed it held talks with Safaricom about its business model and got the company’s buy-in before launch. It also said the telco backtracked after PrivPay began attracting media attention. “Your business model is not permitted by Safaricom,” Safaricom wrote to PrivPay in May 2023 in a letter seen by TechCabal. M-PESA prohibits third-party transactions. Safaricom did not respond to a request for comments. In May 2023, Safaricom suspended the fintech’s pay bill account—a cash collection number built on M-PESA that allowed the startup to process transactions. The telco said PrivPay—which claimed to have 30,000 users—contravened Kenya’s Anti-Money Laundering Safaricom and asked that it obtain a payment service provider (PSP) licence from the Central Bank of Kenya (CBK). Obtaining the payment licence takes up to six months. “PrivPay keeps a record of every transaction and ensures that the manner in which the records are collected and stored for at least seven years can pick out any suspicious patterns,” PrivPay said in a response to Safaricom seen by TechCabal. For Safaricom, in the absence of a licence, only a letter of no objection from the Central Bank of Kenya would suffice. “We did not explore a PSP licence at the time due to the resources required. Also, it was going to take time,” a former PrivPay executive told TechCabal. While PrivPay hopes to stage a comeback, it must remember that good intentions alone will not help it meet regulatory requirements.
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New LASU Post UTME and admission 2024 official guidelines
Lagos State University (LASU) has officially released the UTME/Direct Entry admission screening exercise form for the 2024/2025 academic session. Aspiring candidates must follow specific guidelines and meet eligibility criteria to secure their admission into one of Nigeria’s leading institutions. This article provides a detailed overview of the LASU Post UTME and admission 2024 process, ensuring you have all the information needed to succeed. Eligibility criteria To be eligible for the LASU Post UTME and admission 2024, candidates must meet the following criteria: Minimum cut-off mark: Candidates must have scored a minimum of 195 in the 2024 UTME. This is the set cut-off mark by LASU for the 2024/2025 academic session. Choice of institution: Only candidates who selected Lagos State University as their first choice in the UTME registration are eligible to participate in the screening exercise. This criterion applies to both UTME and Direct Entry candidates. O’ Level requirements: Applicants must possess at least five (5) credit passes in relevant subjects, including English Language and Mathematics, obtained in not more than two (2) sittings. These credits must be from recognised examination bodies such as WAEC, NECO, or NABTEB. Application process for LASU admission 2024 The application process for the LASU Post UTME and admission 2024 is straightforward but must be followed carefully to avoid any errors that could jeopardise your admission chances. Below are the steps to apply: Commencement date: The application process officially begins on the 12th of August 2024. Candidates are advised to start their applications early to avoid last-minute rushes. Visit LASU’s official portal: Candidates should visit the official LASU admission portal to access the Post UTME/Direct Entry application form. Ensure you are on the official site to avoid falling victim to fraudulent platforms. Create a profile: New users will need to create a profile by providing their JAMB registration number and other required details. Returning users can simply log in with their existing credentials. Fill out the application form: Carefully fill out the online application form with accurate information. Ensure all details match those on your UTME result and O’ level certificates. Payment of screening fee: A non-refundable screening fee is required to complete the application process. The payment can be made online through the LASU portal using a debit card or other available payment options. Upload required documents: Candidates must upload scanned copies of their O’ level results, passport photographs, and other relevant documents as specified on the application portal. Submit the application: After completing all the steps, review your application to ensure all information is correct, then submit it. A confirmation slip will be generated, which you should print and keep for future reference. Application deadline: The deadline for the LASU Post UTME and admission 2024 application is the 6th of September 2024. Application submissions after this date may not pass for consideration. Screening and admission The screening process for LASU Post UTME and admission 2024 will be based on the aggregate score of the candidate’s UTME results and O’ level grades. Candidates should regularly check the LASU portal for updates regarding their screening schedule and further instructions. Final thoughts on LASU post UTME admission screening exercise 2024 The LASU Post UTME 2024 process is a critical step for prospective students seeking admission into Lagos State University. Ensure you apply within the stipulated period, prepare thoroughly for the screening, and stay informed of any updates from LASU.
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Jameson producer Pernod Ricard buys 1.27 million Jumia’s secondary shares upping stake to 7.5%
Pernod Ricard, the world’s second-largest wine and spirits seller and producer of popular drinks like Jameson, has bought 1.27 million shares in Jumia’s newly announced secondary sale. According to a recent regulatory filing, the global liquor seller’s stake in Jumia increased to 7.5% from 6.4%. It is unclear at what price the global spirits seller bought the new shares, but Jumia stocks (JMIA) traded at $4.68 on August 6, the day Pernod Ricard made the purchase, according to an SEC filing by Jumia. At that price, Pernod Ricard would have paid $6 million. Pernod Ricard is a long-time Jumia investor and once held an 8.2% stake. The retailer issued more shares between 2020 and 2021, diluting Ricard’s position to 6.4%. Jumia did not immediately respond to requests for comments. Pernod Ricard confirmed the investment but did not provide additional details. The share purchase shows the liquor maker’s faith in the African e-commerce giant whose share price dipped after it missed revenue estimates in Q2 2024. There were also concerns about share dilution from secondary sales. In July 2024, Jumia’s share price rose 252%, reaching a market capitalisation of $1.3 billion. Investors cited increased cash efficiency and a rejig of the business as the basis of their optimism. In February 2023, the retailer laid off 900 employees and cut executive compensation. In December 2023, it shut down Jumia Food, a food delivery business that was burning cash. The company’s 2024 Q2 report shows its efforts are paying off, as losses narrowed to $19 million, half of its Q2 2023 loss. Its 2024 financials also show that its number of orders has increased to 4.8 million despite cutting advertisement costs. Jumia credits SEO optimisation and customer relationship management for the 6% increase in users of the platform which currently has 2 million active users quarterly—a bankable metric for Pernod Ricard which distributes its drinks on Jumia directly and through third-party sellers who use the platform across Africa.
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