Exclusive: Flutterwave loses ₦11 billion in security breach
One month after obtaining a court order to recover $24 million lost to unauthorised POS transactions, Flutterwave suffered another security breach that allowed unknown persons to divert billions of naira to several bank accounts. The perpetrators illegally transferred ₦11 billion ($7 million) to several accounts in April 2024, one financial services insider with direct knowledge of the incident said. A second insider claimed the amount involved was at least ₦20 billion ($13.5 million). “As is common in the financial services industry, there will always be attempts by bad actors tocompromise the security of systems set up to protect and monitor services,” Flutterwave said in a statement to TechCabal. “In April, we detected unauthorized activities inconsistent with usual customer behavior on one ofour platforms used by a small subset of our customer base.” Flutterwave did not specify the amount involved but insisted that “no customer funds were lost or compromised, and the confidentiality of our customers’ data remains intact.” However, one highly-placed person with knowledge of the incident said that the stolen funds were moved to several accounts in five financial institutions over four days. The incident likely went undetected because the perpetrators ensured the deposits remained below limits that would trigger fraud checks. The matter has been reported to law enforcement and investigations have begun, said the same person who asked not to be named. Exclusive: Flutterwave gets court order to recover $24 million lost to unauthorized POS transactions Two executives in the financial services industry confirmed the incident and said Flutterwave reached out to request KYC details of the accounts involved. They also claimed that the accounts related to the incident have been temporarily restricted. In similar system breaches, perpetrators conceal the movement of funds by sending money to the bank accounts of several hundred unsuspecting users. The details of those users are typically obtained online or using social engineering and fed into programs that automate bulk transfers. However, April’s breach appears distinct. An organised network may have been involved in the distribution, said a highly placed staff at a financial institution. “The perpetrators appeared to transfer the money to random accounts but thise same accounts would also transfer money to other accounts who then sent it back to the first beneficiary account, [in a sort of round trip].” This closed-loop approach differs from past attempts to hide the trail using unconnected outsider accounts. Numerous bank accounts frozen for illegal transfers from Flutterwave This is the fourth incident of unauthorised transfers at Flutterwave reported in the last fourteen months. In October 2023, about 6,000 account holders across 35 banks and financial institutions received ₦19 billion (*$24 million) illegally transferred through unauthorised transactions by POS merchants. In March 2023, about 107 bank accounts in 27 banks received ₦550 million. In a February 2023 breach, ₦2.9 billion was diverted to 107 bank accounts in 27 banks, according to court documents seen by TechCabal. Identifying the account owners involved in the latest incident may be easier than before since the Central Bank mandated all financial institutions to require all customers to provide their bank verification number (BVN) or a national identification number (NIN) for account or wallet opening by March 2024. In February, Flutterwave received a court order—a Mareva injunction— that lets it recover the funds and assets of the identified account holders, even though they have spent the funds, with the KYC details provided by these financial institutions.
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Layi Wasabi is rising above The Law to build a flourishing career in a fast-paced content industry
Layi Wasabi breaks the mould of Nigeria’s recent comedic offerings. In one instance, he’s “The Law,” a struggling lawyer with a suit that hangs off his 6’4 frame. In another, he’s Mr Richard, a fast-talking motivational speaker convincing anyone who cares to listen to invest in a life-changing pyramid scheme. His given name, Isaac Olayiwola, may not ring any bells, but these characters bring humour and joy to millions of people. The 22-year-old content creator’s growth has been stunning, with an Instagram following that has grown from 300,000 in 2023 to over two million today. On a social media platform where engagement is the foremost metric, Layi enjoyed the second-highest engagement rate on Instagram in 2023, outpacing other Nigerian skitmakers like Taooma, Broda Shaggi, and Sabinus. Despite these early successes, content creators like Layi Wasabi know they’re in a space where a notoriously fickle audience constantly changes its preferences. The punchline is that staying power requires more than humour. For a while, the formula for virality stayed the same: slapstick, action-packed humour that may get some knocks for being simplistic. But Layi hasn’t taken the well-trodden path. Instead, he leans on familiar characters and pokes fun at stereotypes. In his Cost of Loving sketch, Mr. Richard tells a client, “The circle of friends you have determines the circumference of the earth to you,” as he talks him into joining GNCC, a fictional pyramid scheme. These kinds of schemes are common in Nigeria. In 2016, three million Nigerians lost ₦18 billion to MMM, a popular Ponzi scheme with Russian roots. While Layi has perfected this method of using the familiar to create relatable content, he’s hardly a pioneer. “If you closely follow skit characters, you’ll see that several other comedians have picked up the schtick but dropped it too early or didn’t refine it,” says Olufemi Oguntamu, Layi’s manager. “As soon as we saw The Law, we knew there was a space for such a character in the skit market, and we were convinced that Layi could pull it off.” “The first series of The Law skits I dropped blew up on social media,” said Layi. “I knew that we were here.” The business of laughter: Platform and monetization strategies Part of Layi’s strategy is to focus primarily on skits while establishing himself in the comedy industry. He can make people laugh in one minute, which is less complex to achieve than the longer-form content on YouTube favoured by creators like Lasisi and Mr Macaroni. While his first viral video was on TikTok in 2020, he is now more active on Instagram and posts only occasionally on TikTok. The move to Instagram was strategic. Layi and his team believe Reels appeals to a broader audience and is the preferred app for his target market: millennials and Gen Zs. Instagram is also a popular choice for influencer marketing, the primary way creators like him make money. Unlike their counterparts in America and Canada, African creators do not have monetisation available on Meta platforms like Instagram, where the majority of Layi’s audience is. Now that Layi has established a strong presence on Instagram, he is working on expanding to other platforms like YouTube. “He wants to do a lot on YouTube to take advantage of the monetization available to creators there, but also doesn’t want to do the same kind of content as he does on Instagram,” he shared. “We’re taking our time, but Layi will be on YouTube very soon.” Layi charges ₦4 million ($4,000) to create skits for brands and ₦2 million ($2,000) for an Instagram-sponsored post. He also stars in movies and makes other TV appearances, charging ₦700K per day. While sponsored posts do not get as much engagement as original skits – as the internet audience is notoriously averse to ads, influencer marketing remains one of the most popular marketing strategies. In March 2024, Meta announced that their platforms will open up direct monetization to African creators where they’ll be able to get paid based on the number of plays their reels get. Dealing with an evolving audience Audience size affects a creator’s ability to monetise, and although valuable to the influencer, is also dynamic and can be volatile. Instagram’s algorithm prioritises engagement, leaving creators scrambling to adapt their content as audience preferences shift. “It’s much easier to navigate your audience and their preferences when you’re a macro influencer. When you have millions of followers, it’s hard to navigate their preferences,” Layi shared with TechCabal. For Layi, it’s not just about the laughs, it’s about understanding what the audience wants, even when it means creating content he doesn’t love. He typically creates content on a whim, but there are occasions when he consults with his team of seven on whether or not certain ideas work for his brand and the type of audience he has. “There’s some ideas that I may be feeling, but I share with my team and they think it’s not great [in terms of what the audience would like],” Layi said. “And there are some ideas they [my team] suggest to me that I’m not interested in but we go ahead and execute anyway.” “There are also ideas the team shared with me because they feel like there should be a Layi Layi content around this subject matter,” Keeping up with shrinking attention spans Unlike long-form skits, Layi’s content doesn’t always require scriptwriters. As soon as the content idea is established, Layi works with his team to execute it. He has a team of seven, comprising his manager, road manager, scriptwriter, personal assistant, client service manager, production manager, and editor. Execution, which takes one to three days, including production, covers where to shoot and what kind of actors to hire. Since he started creating content in 2015, a lot has changed in the content creator industry, with one of such being shrinking attention spans. According to a CNN report, the average attention span to a screen is now about 47 seconds from the
Read MoreHow KCB Group’s $8 million old banknotes sparked a diplomatic row
On April 19, the Democratic Republic of Congo’s (DRC) military intelligence arrested two Kenya Airways staff in connection with missing customs documents for unspecified valuable cargo. Their detention triggered a diplomatic standoff between Nairobi and Kinshasa, threatening to undermine the cordial relationship between the two East Africa Community (EAC) members. In late April, Kenya Airways suspended flights to DRC, while Kinshasa responded by refusing to accept the papers of the newly posted Kenyan ambassador. As the events unfolded, the contents of the cargo that began the diplomatic row remained a secret. However, on May 16, Musalia Mudavadi, Kenya’s foreign affairs minister, said the cargo was $8 million in old banknotes withdrawn from circulation by Trust Merchant Bank (TMB), a subsidiary of Kenya’s KCB Group, which was being transported to the US for replacement. Mudavadi told a parliamentary committee that the cargo had documentation and denied any suggestions that it was an attempt to launder money as claimed by DRC authorities. “Trust Merchant Bank (TMB) in DRC with the approval of the DRC Central Bank was giving away currency that had been withdrawn from circulation so that the currency can then be repatriated to the Federal Reserve Bank of the US for destruction and then they can issue new currency,” Musalia Mudavadi, Kenya’s foreign minister, told Parliament on Wednesday. “This is the tradition, they have done it before, and they do it in other countries. Even, when our currency retires it is normally taken back to the Central Bank of Kenya (CBK), the issuing authority. If it is the sterling pound they take it back to the Bank of England.” The two employees, a Kenyan and a Congolese national were released on May 6, after Mudavadi visited Kinshasa to restore normalcy– paving the way for KQ toresume flights to the country, one of the airline’s profitable routes. TMB, which KCB Group acquired in 2022, said in a statement that the old dollar notes consignments were accompanied by the right documentation and approved by the country’s regulators including the Central Bank. “Our bank has complied with all the formalities required for this operation, which is not the first of its kind and is inherent to the operation of banks, particularly for notes unfit for circulation, either because of their condition or because of their series,” TMB said. DRC’s military intelligence alleged the money was being transferred to Nairobi via Kenya Airways to fund opposition and rebel activities. On December 15, a DRC opposition outfit met in Nairobi in the run-up to the December 2023 elections to form a coalition against President Felix Tshisekedi. With the resumption of KQ flights to Kinshasa and Goma, a city in the troubled Eastern DRC, Tshisekedi is also expected to visit Kenya as part of a détente and for bilateral talks with President William Ruto. “I was in Kinshasa a few days ago as a special envoy of President William Ruto, I delivered a special message. We also went further to make sure that we normalise our relationship with DRC and so we expect a state visit from the head of state of DRC which he acceded to and will give a date,” Mudavadi told lawmakers. Since joining the EAC bloc in 2022, DRC has emerged as an important trading partner for Kenya. According to the Kenya National Bureau of Statistics (KNBS), exports to the central African nation grew the fastest compared to other African countries at 49% to $202.2 million (KES26.45 billion) in 2022.
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👨🏿🚀TechCabal Daily – Google plays catch up with AI
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Things are getting “worser” in Nigeria. The country’s headline inflation rose to 33.69% in April 2024, a small but mighty change from the 33.2% recorded in March. Food prices are also steadily rising with this writer claiming the price of his favourite Maryland cookies rose by at least 20% in one month! Outrageous! We’ve got more details on what could happen next in Nigeria here. In today’s edition KuCoin halts naira P2P Accion launches $152.5 million fund for digital transformation Google releases new AI-powered updates at I/O event The World Wide Web3 Opportunities Economy KuCoin halts naira P2P KuCoin has suspended peer-to-peer trading using the Nigerian naira (NGN) on its platform. The crypto trading platform announced the suspension of Nigerian Naira peer-to-peer (P2P) trading and Naira debit card purchases yesterday. While the company cited service improvements, the move likely reflects pressure from Nigerian regulators. This decision follows a meeting that was held three weeks ago between Nigeria’s Securities and Exchange Commission (SEC) and major crypto players, where the SEC discouraged Naira P2P trading due to concerns about the Naira’s instability. KuCoin, unlike its competitor Binance which is facing government charges, has so far avoided scrutiny. By suspending Naira P2P trading, it likely hopes to stay on the Nigerian government’s good side. In recent weeks, Nigerian authorities have been clamping down on P2P crypto trading. The Security Adviser’s office is investigating suspicious accounts, and banks and financial institutions are required to close accounts linked to crypto trading and report them. In April, the EFCC blocked thousands of accounts suspected of crypto activity and peer-to-peer trading, claiming that these activities caused distortions in the market resulting in the naira losing its value against other currencies. The SEC Director-General, Emomotimi Agama also blamed the crash of the naira on crypto traders. In a publicised meeting with crypto players, he mentioned that one of the things that needs to happen to save the crypto space in the country is the delisting of the naira on peer-to-peer platforms. Despite the crackdown, the naira hasn’t gotten any stronger. It’s unclear if authorities will actually ban P2P trading, or what that ban might look like. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Funding Accion launches $152.5 million fund for digital transformation Accion, a non-profit organisation dedicated to financial inclusion, has launched a $152.2 million digital transformation fund. What’s the money for? Accion wants to tackle financial exclusion by investing in local partners and large financial services companies that haven’t made investments in digital customer engagement. Together with these companies, Accion believes it can develop digital financial solutions that provide safe savings, access to credit, and insurance to underserved people globally. The funding in this round was led by British International Investment (BII), Dutch entrepreneurial development bank FMO, IDB Invest, International Finance Corporation (IFC), and Mastercard, among others. There are two key challenges: First, rural areas have digitally inexperienced customers who struggle to trust digital technologies, while traditional financial institutions lack the expertise or internal resources to invest in effective digital engagement strategies for these customers. One of the actions Accoin is taking to solve the problem is deploying the fund through an equity investment of between $12 million–$15 million to 10–12 traditional financial institutions. This fund, separate from Accion’s existing fintech venture lab, will leverage contributions from limited partners alongside its own equity investments. Accion has been around for over 60 years, and it has contributed to the establishment of 230 financial providers catering to low-income consumers and businesses across 75 countries. In 2019, Accoin made a move into early-stage fintech investing by launching the Accoin Venture Lab. This venture arm fueled by a $23 million inclusive fintech startup fund, has actively supported over 65 seed and Series A companies across more than 30 countries in regions spanning Latin America, Southeast Asia and Africa. Notable investments have been made in companies such as Konfio, South Africa’s Lulalend, Fairbanc and Egypt’s Khanza. 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. Innovation Google releases new AI-powered updates at I/O event Google is playing catch-up in AI. And its latest developer event tells the true story. Two days ago, Google held the 2024 edition of its international developers conference in California, where it launched a flurry of new features centred around AI. Like OpenAI which also released an improved version of its AI model—GPT-4o—days ago, Google also launched an improved AI model, Gemini 1.5 flash, which will allow Gemini to generate faster responses. As developers around the world gathered at the event, Google talked big about improvements in its Gemini AI model and how it would be integrated into its workspaces—Google Sheets, Docs, Meet, Slides, Gmail, etc.—and its web browser, Chrome, amongst other integrations. If you missed out on the event, we’ve got you covered. You can now search in Google Lens by recording a video. Previously, users could only search on Google Lens via images, Google is taking things a notch higher with the introduction of video search. To use the new feature, you can simply take a video of what you’re searching for, issue a command midway, and Google’s AI will provide relevant answers from the web. Google also wants to give you a do-everything virtual assistant. Themed, Project Astra, the virtual assistant can access your camera to see things, learn where you keep items, and complete tasks based on your instructions. If, like this writer, you have over a thousand photos sitting in
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JAMB 2024 result slip printing updates
The latest announcement from the Joint Admissions and Matriculation Board (JAMB) sheds light on the process of accessing JAMB 2024 results. This update is important for candidates who participated in this year’s Unified Tertiary Matriculation Examination (UTME). Unlike previous years, JAMB has implemented a significant change regarding result distribution for the 2024 session. According to the official communication, there will be no provision for printing JAMB result slip(s) this year. It’s crucial to note that the 2024 UTME results will not be distributed in hard copy format. Therefore, candidates are cautioned against trusting printed result slips shared on social media platforms, as they lack authenticity. Alternative methods for result access JAMB strongly advises candidates against using third-party services to check their 2024 UTME results. The sole authorised method for result retrieval is through SMS. By sending the message “UTMERESULT” to either 55019 or 66019 using the registered phone number, candidates can access their scores. It’s imperative to ensure that the SIM card has sufficient airtime, as the service incurs a fee of ₦50 only. Crucial information for result access Please take note of the following vital points in the absence of JAMB result slip printing for 2024: Lost phone number: In case of a lost or damaged JAMB registered phone number, candidates must contact their mobile network provider for retrieval. That is the only way to access your 2024 JAMB results because there’s no opportunity for result slips printing. Non-receipt of results: If candidates are not receiving their 2024 JAMB results on their registered phone numbers, deactivating the Do Not Disturb (DND) feature on the SIM card is recommended, as DND activation may hinder receipt of messages from shortcodes. Fees paid on JAMB portal: Candidates who made payments on the JAMB portal for result checking or result slip printing in 2024 may have forfeited their money due to the revised process. “Under Investigation” Status: Results marked as “under investigation” may be released after JAMB completes its inquiry. “Results Withheld” Status: Results labeled as “results withheld” may not be released due to suspected exam malpractice. Final thoughts on JAMB 2024 result slip printing While this change may deviate from previous practices, JAMB encourages all candidates to embrace the designated SMS method for result checking. Perhaps, later in the year, JAMB result slip printing for 2024 may commence for admission purposes in respective institutions. However, as of now, this option remains unavailable.
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Check JAMB admission status 2024
The Joint Admissions and Matriculation Board (JAMB) introduced new measures to accept or reject admissions in 2024 to combat fraudulent practices. It’s therefore imperative for candidates to be well-informed on how to access their 2024 JAMB admission status, and respond accordingly. JAMB board’s observations JAMB has expressed concern over institutions and cybercafes manipulating admission offers, either to favour certain candidates or extort money from others. To counter this, JAMB has revamped the admission process, emphasising transparency and fairness. Accessing your JAMB admission status 2024 Candidates can now access the JAMB admission list, and specifically,their admission status via two ways: 1. Via SMS Simply send “ACCEPT” or “REJECT” from your JAMB registered phone lines to either 55019 or 66019. This streamlined process ensures direct communication between candidates and JAMB, minimising the risk of interference from unauthorised parties. 2. Fingerprint method Alternatively, candidates can visit any accredited Computer-Based Test (CBT) centre or Joint Admissions and Matriculation Board (JAMB) office nationwide to use their fingerprints to access their admission status in 2024. This method provides an additional layer of security, safeguarding candidates’ personal information. Upon receiving your admission status, candidates are advised to carefully consider their options. If satisfied with the offer, you should promptly respond with “ACCEPT” to secure your spot. Conversely, if you wish to decline the offer, you should send “REJECT” to indicate your decision. Final thoughts on check JAMB admission status 2024 By adhering to these procedures, candidates contribute to upholding the integrity of the admission process. Rejecting fraudulent practices and embracing transparency ensure a fair and equitable system for all aspiring students. The process of checking the JAMB admission list and responding to JAMB admission offers in 2024 prioritises the interests of candidates while combatting unethical behaviour. By following the prescribed steps, candidates can navigate the admission process seamlessly.
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Check your name on JAMB matriculation list 2024
The JAMB matriculation list for 2024 serves as a record of students who have received admission offers from Nigerian tertiary institutions. It’s vital for students to ensure their names are on this list. Let’s delve into why checking your name on the JAMB Matriculation List 2024 is important. Importance of verifying your name on JAMB Matriculation List 2024 You should check if your name is on the JAMB admission list because: NYSC mobilisation: To qualify for the National Youth Service Corps (NYSC), your name must be on the JAMB matriculation list. Validity of admission: Confirming your name on the list validates your admission from an accredited institution recognized by JAMB. Protection Against Fraud: Checking your name safeguards you from falling victim to fake admissions offered by illegitimate institutions. How to check your name on the JAMB matriculation list in 2024 To verify your name on the JAMB Matric List 2024: Visit the JAMB matriculation list portal on the e-Facility website. Provide your JAMB registration number and examination year. Your name will be displayed if it’s on the list. Getting your name on the list To ensure your name appears on the matriculation list: Access and print your Admission Letter (if/when it’s available) from the e-Facility Portal. Obtain and print your JAMB result slip (if/when it’s available) via the e-Facility platform. Seek confirmation from your institution’s admissions officer regarding both documents. It’s vital to note that only candidates with admission offers from recognized institutions will be listed. Those admitted by unrecognised institutions won’t find their names on the list. Final thoughts Verifying your name on the JAMB Matriculation List is an important step in the admission process for Nigerian tertiary institutions. It confirms the legitimacy of your admission, shields you from fraudulent schemes, and is essential for NYSC mobilisation. Candidates are urged to check their names promptly to avoid last-minute complications.
Read MoreNigeria’s headline inflation accelerates to 33.69%, placing an imminent rate hike on the table
Consumer prices jumped consecutively in April, increasing the likelihood that the central bank will raise interest rates at a monetary policy meeting next week. Headline inflation in Nigeria quickened to 33.69% in April, closely matching Meristem analysts’ forecasts of 34.43%. Those estimates were based on increased demand for food products and biting fuel scarcity which is expected to raise transportation costs, significantly impacting this month’s results. Food inflation also rose sharply to 40.53%, as shoppers continued to seek cheaper alternatives to expensive staples like rice, bread and yam. Increased electricity tariffs and ongoing naira depreciation further fueled inflationary pressures. “The Central Bank needs to maintain a hawkish monetary policy stance, and on the fiscal policy side, the government needs to focus on supply chain, particularly the agricultural supply chain,” said Benjamin Boachie, Chief Economist at SecondSTAX, a Ghanaian fintech that provides access to stock markets for institutional investors, via an emailed response. He proposed deploying tools like “tax relief to targeted subsidies, to alleviate the worst effects of the current inflation for the most vulnerable.” Olayemi Cardoso, the Central Bank governor has pledged a return to orthodox monetary policies. The CBN introduced a raft of policies to ensure naira stability and guarantee investors confidence. The bank also aggressively raised interest rates in February and March 2024. However, those efforts have shown limited success, with some gains made in February 2024 with the currency being gradually eroded. Blaming the inflationary surge on President Bola Tinubu’s economic reforms, labor unions are demanding a 20-fold increase in the minimum wage, from ₦30,000 to ₦615,000 per month, to address the rising cost of living.
Read MoreGlobal crypto exchange Kucoin suspends p2p naira trading
Three weeks after Nigeria’s Securities and Exchange Commission (SEC) met blockchain industry players and asked that they stop peer-to-peer trading, the global crypto exchange Kucoin has suspended all naira-based peer-to-peer trading. “As part of ongoing efforts to enhance our services, Kucoin will temporarily suspend all p2p Naira services and Fast Buy service via Naira card,” the company said in a notification to users. While the global crypto exchange Binance faces federal government charges, Kucoin has largely remained under the radar and it will hope to maintain the status quo with its decision to halt p2p trading. For weeks, the office of Nigeria’s Security Adviser has increased scrutiny of p2p crypto trading, mandating fintechs and banks to close bank accounts linked to trading and report said accounts to the authorities. The Economic and Financial Crimes Commission (EFCC) has also blocked thousands of accounts for trading crypto. On May 7, Emomotimi Agama, the SEC DG blamed the slide of the naira on cryptocurrency traders. “What is very critical and which has brought about this meeting is the concerns regarding crypto P2P traders and their effect on the exchange rate,” he said at that event. While the naira became the best-performing currency in April, it has since reversed all those gains. On May 14, the USD exchanged for ₦1520, a stunning drop and a reminder of the volatility that led to a ban on Binance in February 2024. This week, several currency traders in major cities told TechCabal that the EFCC had resumed arrests of street traders, in enforcement of the February ban. Despite these extreme measures, there’s no respite in sight for the naira and it remains to be seen if authorities will follow through with a plan to ban p2p trading and what form that ban may take.
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👨🏿🚀TechCabal Daily – Zimbabwe might bring back mobile money agents
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We’re going to be all up in your ears about our upcoming podcast. So take a few minutes to fill out our survey and tell us what you’d like to hear from us. What kind of podcasts do you like? Let us know here. In today’s edition Zimbabwe proposes mobile money agents’ return Nigerian ride-hailing drivers score a win Bamboo debuts Nigerian stocks Inside Credit Direct’s lending ambitions The World Wide Web3 Opportunities Economy Zimbabwe proposes mobile money agents’ return to push ZiG Zimbabwe wants mobile money agents to operate again in order to boost the use of ZiG, its country’s new gold-backed currency. Why is this news? In July 2020, Zimbabwe suspended operations for mobile money agents. The government believed the agents fueled black market currency trading practices that destabilised the previous Zimbabwean dollar. Launched in April with hopes of reviving the economy, the ZiG is the country’s sixth attempt to fight hyperinflation. Initially valued at a promising 13.53 ZiG per US dollar, it slumped to a record low of 13.67 ZiG just a month later and efforts are being made to revive the currency. A new proposed solution: Zimbabwe’s Treasury proposes to re-allow mobile money agents from Econet Wireless, NetOne, and Telecel to operate in the coming weeks. By allowing mobile money agents to operate again, the government hopes to boost the ZiG, ultimately reducing reliance on the unofficial currency market. “The agents will act as a bureaux de change and help the public access small amounts of foreign currency for everyday use. This means if you have an Econet line and if you register for Ecocash, you can convert from ZiG to US dollars or from US dollars to ZiG at the official exchange rate. That is the first part to allow inter-changeability without having to go to the streets,” Kuda Mnangagwa, the deputy finance minister, told lawmakers in parliament last week. Measures that have been taken since the launch of ZiG: The National Prosecuting Authority reports over 100 street money traders arrested nationwide, primarily in Harare, for alleged involvement in selling against the official rate, acts that have contributed to the currency crisis. Last week, the Zimbabwean government announced a 200,000 ZiG ($14,782) fine for individuals and businesses caught not using the official exchange rate for the new ZiG currency in their transactions. In April, the Reserve Bank of Zimbabwe released a statement expecting that all the online payment platforms convert customer balances to the country’s new currency, the Zimbabwe Gold (ZiG) before April 12. All in all, the country is doing all it can to make sure that ZiG moves the right way. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Mobility Nigerian ride-hailing drivers score a win In January 2024, ride-hailing drivers across the country started the year on a sour note marked by the death of one of their own. Adebayo Padmore, a driver with LagRide, collapsed on the morning of January 8, 2024, as he prepared for what many drivers have described as a maddening routine. Padmore was one of the many LagRide drivers who have complained about the platform’s unrealistic financing models. In fact, Nigeria’s union for ride-hailing drivers AUATON tagged the repayment method a “killer model”. Padmore’s death sparked conversations about the need for health insurance for ride-hailing drivers across the country. Now, months later, 12 ride-hailing apps have agreed to the drivers’ terms. Per TechCabal, the companies, including Rida, Bosscab, and Nairaxi, are rolling out health insurance—a first for the industry and a major victory after years of driver advocacy. The exact plans are being finalised, but initial coverage includes drivers only (family might come later). The health insurance plan will cover routine medical checks, surgery, cancer treatments, ante-natal, and drugs. “The HMO will be operational in the next 90 days after we create awareness in our state councils. We will start collecting check-off dues on the platforms that sign onto the agreement,” said Damola Adeniran, president of the App-Based Transporters of Nigeria (AUATON). The big boys are missing: Unsurprisingly, Bolt, inDrive, Uber and LagRide are not part of the agreement. While LagRide initially had health insurance coverage for its divers, these benefits were paused indefinitely shortly before Padmore’s death. Bolt, on the other hand, only offers drivers health insurance as an incentive to drivers contingent on them meeting certain targets. Moving forward, the union has plans to solidify its membership identification process. It also says it will continue lobbying for lower commissions, pension plans, and a voice in company decisions. 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. Companies Bamboo debuts Nigerian stocks on its platform Bamboo, a Nigerian investment brokerage firm that allows users to invest in U.S. stocks, has launched Nigerian stocks on its platform. What does this mean? This means users will have access to local assets and can now invest in local businesses on Bamboo. Bamboo used to just offer stocks from the U.S. Now, you can buy and sell stocks on the Nigerian Stock Exchange (NGX) right from the Bamboo App. This includes companies like Guaranty Trust Holding Company (GTCO), MTN, and Dangote Cement. Furthermore, Bamboo plans to add new listings to the app whenever a company goes public ensuring users have access to a constantly evolving capital market. “We are thrilled to finally launch Nigerian stocks on the Bamboo platform. Among our investors, local stocks are by far the most in-demand asset class. We are incredibly proud to play
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