TechCabal Daily – Twitter musk Thread carefully
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Threads launched earlier today, and it’s looking good so far! ICYMI: Instagram launched a Twitter-like app that will allow users to do everything they can do on Twitter but with their Instagram usernames. A snapshot of Threads Already, the platform surpassed 2 million users within its first two hours. The platform’s interface and look are so similar to Twitter’s, Elon Musk will have to thread carefully or he’ll lose the fight for the next big social media space. In today’s edition SA’s department of justice charged for poor cybersecurity measures Safaricom to incorporate two VC subsidiaries Nuru raises $40 million SomBank partners with Mastercard The World Wide Web3 Event: TC Twitter Space Opportunities Cybersecurity Department of Justice fined $266,331 for breaking security rules Justice is in trouble. South Africa’s Information Regulator has fined the Department of Justice R5 million ($266,331) for not renewing its licences for antivirus software. Image source: YungNolly The Protection of Personal Information Act (Popia) sets basic rules for gathering and exchanging personal information. Mail & Guardian reports that when the regulator discovered that the department was breaking some of these rules, it issued an enforcement notice on May 9. It had 30 days to follow the notice, but it didn’t. As a result, the regulator has now imposed a fine on the department, using its power for the first time since it was established two years ago. Why is this a big deal? In September 2021, the department experienced a severe ransomware attack. This attack disrupted court operations and all electronic services provided by the department because employees couldn’t access information systems. Personal information in documents was compromised, and a significant amount of files were lost. Two years prior, the court faced another hacking incident in which hackers stole R10,000 ($532) from the Guardian’s Fund account at the Pietermaritzburg office. Recently, there were reports of hackers stealing R18 million ($958,071) from the fund once again. The Guardian’s Fund was established to receive and manage money on behalf of individuals who are legally incapable or unable to handle their own financial matters. Now, due to inadequate security measures, their money has been lost. Zoom out: South Africa is increasingly becoming a hotbed for financial cybercrimes. Some businesses are paying $5 million dollars or more to ransomware attackers. Per Business Daily, the establishment of the new subsidiaries is subject to shareholders’ approval at the July 28 annual general meeting. You’ll be in good company Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Click here to open a business account today. Venture Capital Safaricom to incorporate two VC subsidiaries Safaricom is venturing into venture capital. The Kenya-born telecom giant Safaricom is set to incorporate two venture capital firms into its business, Business Daily reports. The VC firms will focus on funding and incubating seed-stage and growth-stage start-ups. With this, Safaricom hopes to gain a big share of the startups in the country as it currently does in the telecom and mobile money sector. Sidebar: Seed-stage startups are those that are typically yet to begin generating revenue and are in need of capital to turn their money-making ideas into reality. Growth-stage businesses are those that are actively generating revenue even though they may still not be profitable. Funding DRC’s Nuru secures $40 million in Series B funding Nuru’s solar installations in Goma, DRC Nuru, a Democratic Republic of Congo (DRC) solar startup, has raised $40 million to build the biggest mini-grid in Sub-Saharan Africa The Series B equity fund will see to the construction of three mini-grids in Eastern DRC, including Goma and Kindu, with the largest in Bunia. The grids will use solar power and batteries with a total generation capacity of 13.7 megawatts. Investor highlights: The round was led by the International Finance Corporation (IFC), the Global Energy Alliance for People and Planet (GEAPP), the Renewable Energy Performance Platform (REPP), Proparco, E3 Capital, Voltalia, the Schmidt Family Foundation, GAIA Impact Fund, and the Joseph Family Foundation. Future plans: Nuru plans to raise $300 million to hit its target to provide 24-hour electricity to five million people in DRC by September 24, 2024. Its Series B raise of $40 million is still far from the $300 million needed to achieve this goal. However, Bloomberg reports that a $90-million Series C round is expected to get underway later this year. The company also hopes to close off an additional $28 million in project finance by the end of July Zoom out: Less than 20% of the 100 million people in DRC have access to energy, with the majority who lack access in eastern DRC. The upcoming mini-grids in eastern DRC will enable renewable energy adoption, eliminating reliance on fossil fuels for power generation. GrowthCon 1.0: Learn how to unlock 10X Growth Connect with growth leaders, operators, and enablers to explore proven tactics for driving sustained business growth in Africa at GrowthCon 1.0. Experience curated masterclasses, case studies, a growth hackathon and more. Get your tickets now at 15% off. Use the discount code “TIX15”! Fintech Mastercard partners with SomBank to launch debit card Image source: SomBank SomBank is making banking more accessible to its customers. On Tuesday, SomBank announced its partnership with Mastercard, a leading global technology company in the payments industry to bring digital payments to consumers in Somalia. The partnership: Through the introduction of the SomBank card, the Mastercard-branded debit card, Sombank now offers secure Mastercard payments, enabling customers to make safe transactions for purchases, withdrawals, and online payments. The card will be initially provided to 100,000 SomBank customers in 2023, with future program expansion in subsequent years. The Sombank card also offers a seamless payment solution for daily transactions across Somalia, offering access to an extensive network of merchants, ATMs, branches, and agents, all accepting Mastercard payments. Zoom out: Through this partnership, financial inclusion in Somalia will be advanced, allowing
Read More
Despite the benefits of a new tax plan for the informal sector, a historical lack of trust remains
As the Federal Government expands the tax net to the informal sector, market women question the feasibility of the plan- and worry about being multiple taxation Wemifin Oluwaseyi embodies the unflappable spirit of many Lagosians. In her roadside stall in Ogba market–more accurately described as a show glass shielded with a huge umbrella–she sells pastries. The kind that everyone who’s lived in Lagos can instantly recognise; deep fried donuts with no jam and meat pies that have more flour than beef. On the best days, it’s a tough business. As I stop to chat, customers order donuts and sausage rolls in the scorching heat. Wemifin shares that her average daily profit is ₦1000, and it’s common for her to make losses. Whether or not business is good, there are several taxes she has to pay. A ₦100 daily local government tax for selling in the market, ₦200 on Thursdays and Fridays to the Lagos state Agency officials, Kick Against Indiscipline (KAI). “KAI adds to our problems, and we don’t even know what the money is used for,” Wemifin told TechCabal. But pay she must. Traders like Wemifin have to pay these multiple levies or face the brute force of these tax collectors. “We have to give them the token so we can have peace. If we don’t give them, we will not have peace,” Itunu Adebayo, another trader, added. Wemifin and Adebayo are part of Nigeria’s large informal economy. Despite the informal economy’s significant contribution to GDP, workers are subjected to multiple taxation. There are often questions about whether these taxes are remitted to the appropriate channels and many taxpayers feel like the government provides no services in return for collecting these taxes. Nigeria’s Federal Inland Revenue Service (FIRS) is trying to change that. Is Nigeria’s tax policy more strain on informal workers? This week, Nigeria’s Federal Inland Revenue Service (FIRS) announced the Value Added Tax (VAT) Direct Initiative, a way for the federal government to collect Value Added Taxes from the informal sector and reduce multiple taxation. To make this work, the Federal Government will partner with the Market Traders Association of Nigeria (MATAN) to collect and remit VAT from their members— about 40 million— using a unified systems technology. Section 15 of the VAT Act has a threshold of ₦25 million for compliance with VAT obligations. This means that several petty businesses would be excluded from paying the tax. Similarly, the federal government exempted 20 essential food items, sanitary towels, medical services, aircraft spare parts, machinery, plane tickets and tuition fees from the 7.5% VAT to keep the cost of living from rising. This new VAT Direct Initiative is designed to save market traders from double taxation while integrating the informal sector into the tax system. The market women have a trust deficit While the plan to help informal sector workers avoid multiple taxes is excellent, many are interpreting it as an attempt to introduce new taxes. Traders, who spoke to TechCabal, believe the Federal Government’s harmonization of taxes won’t stop other agencies in the market from taxing them daily. With low patronage due to poor purchasing power and inflation, many are pessimistic about the federal government’s moves. Earlier in the year, Adebayo says she had to pay back taxes worth ₦8,300 to the local government so her children could gain admission to secondary school education. According to Adebayo and Wemifin, the local government and KAI —should remit the monies levied on them to government coffers. But what’s most crucial to them is for local governments and their agencies to stop multiple tax collections.
Read MoreKenya’s eCitizen platform integrated into smartphone app with over 5,000 government services
The Kenyan government has launched the Gava Mkononi app, allowing access to over 5,000 services on smartphones. But what are these services? Kenya has launched an app with over 5,000 government services. Referred to as the Gava Mkononi app, the service is an extension of the country’s eCitizen platform and part of President William Ruto’s programme to digitise government services. eCitizen is a digital platform that provides Kenyans access to government services and will be fully integrated into the Gava Mkononi app. Gava Mkononi has also been developed to integrate the Huduma Kenya Service Delivery Programme (HKSDP) functions, a network of service centres that provide access to various public services and eCitizen. According to a statement by the ICT Authority, a state department under the Ministry of ICT and Digital Economy, “Gava Mkononi is a Swahili word that means ‘government in the palm of your hands’, meaning that anyone in the world can access all Kenyan government services by using any device, may it be a mobile phone or a tablet. This is why the e-citizen mobile app was named ‘Gava Mkononi’. Making e-citizen a mobile app was a way to simplify accessibility and allow people to download and install the app or via the web.” Does the Kenyan government provide up to 5,000 services? Kenyans have been eagerly awaiting a breakdown of the over 5,000 government services now available on the app and the eCitizen website. At the start of 2023, there were fewer than 400 services on the portal, with driving licence renewal being the most sought-after service, after business registration and police clearance certificates. The ICT Authority told TechCabal that there are over 5,000 services available through various agencies, which can be accessed via the eCitizen portal or the new app, Gava Mkononi—take, for instance, the Ministry of Foreign Affairs, which offers around 560 services. With over 30 agencies, each with its services, the cumulative count reaches beyond 5,000. The Export Processing Zones Authority offers services such as registration, renewal, and accreditation of training instructions licences. The National Assembly provides services related to public participation, public petition, regular reports, filing petitions, business schedules, bills, internship applications, visit applications, e-newsletters, Hansard reports, study visits, next sitting information, order papers, votes, and proceedings, legislative proposal tracking, bill tracking, motion tracking, statutory instruments tracking, statements tracking, petitions tracking, and questions tracking. The Registrar of Political Parties handles services concerning political party membership status, registration, and resignation. Additional access channels As of March 2023, there were over 29.4 million Kenyans with smartphones, while the number of feature phones stood at 33.4 million. These figures indicate that feature phones are still widely used in Kenya, so Gava Mkononi will also be accessible via USSD using the code *2222#. In addition to the USSD code and smartphone app, Gava Mkononi can be accessed through an extensive mobile money agency network, including Safaricom’s M-Pesa, as well as bank agencies such as KCB with 28,000 shops, Equity Bank with over 40,000 shops, and Cooperative Bank with over 22,000 shops. President Ruto stated, “Gava Mkononi will be available in more than 250,000 M-Pesa shops, 28,000 KCB shops, 40,000 Equity shops, and 22,000 Cooperative Bank shops to serve those without smartphones.” Moreover, citizens can access eCitizen through the web and have the option to visit Huduma Centres, where the HKSDP services are provided physically. Plans for the platform The state plans to digitise identification cards for citizens in the future, a feature that will also be available on the app and the eCitizen portal. According to the ICT Authority, Kenyans will no longer need to carry a physical card when the project is completed. For now, there are no launch dates, but the idea of new digital IDs has been mentioned before by cabinet secretary Eliud Owalo. There are plans to stop physical visits to the Huduma Centres entirely; Kenyans will only have to physically visit the centres for services such as ID card replacements.
Read More
Jumia’s race to profitability takes it to Africa’s rural markets
Jumia urgently needs to become profitable across its 11 African markets. To drive this, the Nigerian arm of the ecommerce giant is looking to rural markets where ecommerce potential is untapped. How will this strategy play out? In a bid to become profitable, pan-African ecommerce platform Jumia has turned its focus to rural markets in Africa. This means convincing rural dwellers that they can buy anything with their mobile phones, and Jumia will bring the product to them. Since 2022, the Nigeria arm of the e-commerce giant has doubled down on rural and semi-rural markets in Africa’s most populated country. “This is in line with the master plan to be profitable,” says Massimiliano Spalazzi, CEO of Jumia Nigeria. Modaleke in Osun, Nkpor in Anambra, Owo in Ondo, Offa in Kwara, and Keffi in Nassarawa are some of the towns that are now being touched by ecommerce with Jumia as a first mover. Jumia is partnering with third parties in these towns to set up fulfilment centres to serve as pick-up stations (PUS) for the customers. In its recently released Rural Area Report, Jumia shows that it has established over 250 PUS across the country, even in the remotest parts where it is striving to plant its ecommerce roots. “To be profitable, you must boost gross merchandise value (GMV). And to do that, you must record more sales or have more customers. Our rural drive is bringing more customers on board. It’s positioning us better towards profitability,” Spalazzi shared, maintaining that the logistics costs associated with its rural markets are marginal. At an average shipping cost of $1.5 per item, Jumia claims it does not record losses in fulfilling orders for rural customers. JForce is the team behind the dream Over the years, Jumia has consistently splurged on marketing and advertising costs as it continues to position itself in the African market. But billboard ads don’t do much to convert middle-class Nigerians who provide the largest market opportunity for B2C ecommerce in the country. Jumia realises this. Now, the company has taken deliberate steps to prune its advertising spend, cutting it down by 40% in Q4 2022, and concentrating its marketing efforts on its 43,000-strong independent sales consultants, JForce. JForce represents the company’s approach to rural area marketing. Through on-the-ground campaigns, activations, and door-to-door canvassing, JForce teams across the country educate and onboard users on Jumia, including those with limited exposure to education or technology. In return, Jumia pays them commissions for every order they facilitate. These commissions range from 1.5% to 8% and are based on the locations from which the orders are completed. “[JForce have] been instrumental in expanding ecommerce to previously underserved areas [in Nigeria],” the Jumia Rural Report reads. Rural seems to be winning Jumia’s concentration on rural marketing through sales agents may mark the early stages of a gradual shift in the B2C ecommerce spectrum from an Amazon-styled structure to something more Copia-esque. Copia Global is one of the most successful B2C ecommerce companies in Africa. Based in Kenya and Uganda, the company recruits small business owners and trains them to be agents and Copia evangelists in their regions, with their local stores serving as pick-up locations for customers. This hyperlocal model reinforces trust in Copia and enables the company to deliver goods profitably despite its free delivery. Jumia has an advantage here: its delivery is not free, and the addition of a $2 fee to most items will make little difference in remote towns, where traditional commerce and logistics spike the pricing of several items. Another advantage for Jumia lies in the marginal costs of its logistics to these stores. On Nigeria’s map, the remote towns that Jumia operate in can be traced within a radius of Lagos. According to Spalazzi, most of the rural markets Jumia currently serves are situated on the road route to bigger, urban cities, such as Benin, Warri, Aba, and Abuja, where Jumia reports consistently increasing order volumes. “It makes sense to us to take advantage of our logistics routes to better serve areas where ecommerce lacks presence,” the CEO said. L-R: Adedamola Giwa, Managing Director JumiaPay Nigeria; Massimilano Spalazzi, CEO JumiaNigeria and Robert Awodu, Head of PR and Communications, Jumia Nigeria at the launch ofJumia’s ‘E-Commerce in Rural Report’ held in Lagos on Tuesday, July 4th. Playing the long game Experts agree that Jumia’s move to deepen its rural market may not immediately fruit the kind of changes that radically upturns its balance sheet towards a positive EBITDA. But it holds a promise to boost Jumia’s average orders and GMV values recorded from Nigeria. Between the last quarter of 2022 and the first quarter of 2023, orders on Jumia dipped by 3 million units, which is reflected in its reduced GMV and quarterly revenue. To prevent these business-altering kinds of dips, Jumia must increase its presence in new markets and gradually plug into more markets where middle-class Africans can purchase items. There are over 50 million Nigerians in this category, according to data from Resource Recycling. And as Jumia remains the dominant B2C ecommerce player in the Nigerian market, there’s hardly any justification for its quarterly active customers to keep oscillating around 3 million customers. Jumia is playing the long game by building a capillary network among rural and semi-rural towns in Nigeria. A good number of the so-called rural towns—including Ilaro, Offa, Nkpor and Keffi—already have tertiary institutions, electricity, and other markers of urbanisation. This means that other things being equal, they could transform into semi-urban or urban cities within the next half-decade. This could translate into an explosion of market size for the ecommerce first movers, which Jumia is striving to be in these towns. Jumia Nigeria is putting to test the words of Francis Dufay, the group’s CEO: “We [Jumia] have great business cases in smaller cities close to rural areas, where we know for a fact that we have a good market.” It will be interesting to see how this good market plays out
Read More
NSFAS status check for funding 2023
Similar to the SRD grant, the National Student Financial Aid Scheme (NSFAS) plays a vital role in providing financial assistance to eligible students in South Africa. To ensure you stay updated with your application and funding status, it is important to know how to check your NSFAS status. In this article, we will guide you through the various methods available to check your NSFAS status. 1. NSFAS for online portal status check The most convenient way to check your NSFAS status is through the official online portal. Follow these steps: a. Visit the NSFAS website (www.nsfas.org.za). b. Click on the “MyNSFAS” tab located on the homepage. c. Login using your username and password. If you don’t have an account, register by providing the necessary details. d. Once logged in, navigate to the “MyNSFAS Account” section to access your application status. e. Here, you can view the progress of your application, funding decision, and disbursement details. 2. Mobile application NSFAS has also developed a mobile application for added convenience. To check your status using the app: a. Download the NSFAS mobile application from your respective app store. b. Install and open the app on your smartphone. c. Login using your MyNSFAS credentials or register if you’re a new user. d. Once logged in, navigate to the relevant sections to check your application status, funding decision, and disbursement details. 3. Contact NSFAS If you prefer personal assistance or encounter any issues with the online methods, you can contact NSFAS directly: a. Call the NSFAS Contact Centre at 0800 067 327. b. Prepare your ID number and application reference number before calling. c. Engage with the customer service representative who will assist you in checking your NSFAS status or addressing any queries you may have. 4. Campus financial aid offices For students studying at tertiary institutions, campus financial aid offices can also provide assistance in checking your NSFAS status. Visit your institution’s financial aid office and provide them with your details. They will be able to access the necessary information and provide you with updates on your application status. Final thoughts on NSFAS status check Keeping track of your NSFAS status is crucial to stay informed about your financial aid application and funding decision. By utilising the official online portal, mobile application, contacting NSFAS directly, or reaching out to your campus financial aid office, you can ensure that you are aware of any updates or changes in your NSFAS status, helping you plan your academic journey with peace of mind.
Read More
iPhone 15 series release; 6 things to know
Rumours of the iPhone 15 series have already been circulating online as we edge closer to Apple’s highly anticipated yearly September announcements. Talks from different quarters suggest Apple may introduce new, limited-edition colours for the iPhone 15 Pro and the regular iPhone 15. Here is all we know about the rumoured release, such as the promised features and when we may expect to see them. 1. Predicted features and upgrades for the iPhone 15 The gadget is likely to have Apple’s Bionic A16 chipset, which was used in the iPhone 14 Pro last year. This is consistent with the company’s recent practice of selling flagship phones at reduced prices a year after their initial introduction. Therefore, the next generation of models should adopt a similar strategy. Since the iPhone 15 Pro and 15 Pro Max are expected to be Apple’s flagship devices for the year, they are a probable candidate to ship with the company’s new Bionic A17 processor. 2. Camera expectations Speaking of pictures and videos, the base models of the iPhone 15 series may include 48-megapixel cameras, identical to those found in the previous iPhone variants. This would be a significant upgrade from the existing 12-megapixel sensors in existing iPhones. Optical zoom with a telephoto lens and LiDAR technology, on the other hand, may be unavailable on base versions of the iPhone 15 and found only in more expensive variants. There have been rumours that the iPhone 15 Pro Max model’s camera module has been upgraded with periscope lenses that provide 5-6x optical zoom, in addition to more sensors. 3. Battery life As of yet, information regarding the battery and its charging capabilities is unavailable. Considering that even the most affordable Android phones offer rapid charging speeds of at least 30W, Apple would be wise to include such capabilities. However, iPhones only support 20W technology, whereas phones costing under $400 already offer 80W fast charging, resulting in longer durations to achieve full battery capacity. 4. The iPhone 15 series will likely not include a charger Starting with the release of the iPhone 12 series, Apple has not included a charger in the retail packaging of its iPhones. This trend is expected to continue with the release of the iPhone 15 series. 5. Colours Both 9To5Mac and a reliable tipster on Weibo have reported that the iPhone 15 Pro will come in an exclusive “crimson” colour option. There will also be a very deep crimson option. In addition, a new green colour option for the regular iPhone 15 is rumoured to be in the works, with Apple reported to be aiming for a tint “close to the green of the iPhone 12 and iPhone 11”. However, as this is not yet confirmed by Apple, therefore readers should treat the news as a rumour. 6. Timeline and final thoughts for the iPhone 15 series release Based on the timing of previous Apple product launches, we should expect the new iPhone 15 series to be unveiled in September of this year. There have been no rumours or leaks to suggest that the launch will be delayed; nevertheless, in case of unforeseen circumstances, the debut could be pushed back until October. Regardless, we anticipate an announcement of the iPhone 15 series anytime from September, which is less than two months away.
Read MoreEXCLUSIVE: Inside Union54’s mission to build ‘ChitChat,’ a WeChat for Africa
A conversation with Perseus Mlambo, co-founder and CEO of Union54, about ChitChat, the startup’s recently launched social commerce platform. Eleven months after Union 54 halted operations amid an attempted $1.2 billion chargeback fraud, the Zambian fintech startup is launching ChitChat. The new product is a social commerce platform and is the result of a collaboration between Union 54 and Mastercard. ChitChat lets users chat on an encrypted platform; they can also send money to each other, get a USD debit card and buy items from digital storefronts on the app. ChitChat sounds a lot like China’s WeChat and Union 54’s founders will certainly be hoping they can find similar success with the new app. TechCabal caught up with Perseus Mlambo, co-founder and CEO of Union54, to learn more about the origins of ChitChat, its mission to revolutionise fintech in Africa, what challeges and opportunities the platform anticipates in the market, and much more. TC: Can you give us some background on ChitChat? Perseus Mlambo: What we’re developing is a social commerce platform because we realised that there’s a lot of businesses in Africa. And all of these businesses might have some digital exposure, like they might have a Facebook or a Google page, but for the most part, they’re not actually transacting on those platforms. So what we have done with ChitChat is to develop an app that allows people to chat to each other, as well as to pay each other and get access to MasterCard debit cards. Our thesis is that if people are already speaking to each other, then it’s easy for them to discover new trades or new business opportunities in their community. So the best way to think about ChitChat is a WeChat but for Africa. In short, its a place where social commerce meets payments. We think that we can give more people an opportunity to monetize their products or their services, especially in their local communities because what we have built here, you’ll be able to discover a businesses near you. If you’re a business, you’ll be able to have an account where you can list your products or your services, your opening hours, you can chat to your customers directly, and you can get paid directly in the app. So this means that most smaller businesses who don’t currently have a website will be able to actually increase their customer base because chit chat is giving them that product discovery or that customer discovery opportunity. TC: Is the ChitChat platform currently available for download? We are starting with internal testing which is happening in a couple of weeks. So the ChitChat family, including Union54 employees and our partners, will start testing out in a few weeks and then after that, we want to increase our testing base. We’re going to be testing out in Zambia first because it’s our domestic market where we’ve got the home advantage. And then if all things go well, a month and a half after that, we want to roll out to Angola, and then Tanzania, and Uganda. We selected those countries, because they present very different opportunities. In Angola, you’ve got a different language. In Tanzania and Uganda, you’ve got some common linkages we have identified and in Zambia, obviously, we’ve got the domestic advantage. So in essence, we chose those countries because they provide as near as possible to what a full rollout would be. What we’re really planning here is something that we haven’t done before because we primarily have got B2B experience. When we start rolling out to additional markets, apart from those pilot countries, we just want to really have an opportunity to engage with consumers. We plan to roll out a very unique campaign that explains our proposition, simplifying the onboarding, as well as giving people a preview of what’s to come when the network effect of ChitChat is realised. So we are really excited about that because I haven’t seen anybody else do something similar in the past. All in all, i think the platform has really interesting challenges as well as opportunities that fintech can unlock if they do it correctly. TC: What problems or painpoints does ChitChat directly address? Right now, there’s a number of problems that we’ve identified. To begin with, for people in Zimbabwe, or for people in Zambia, or anywhere in Africa really, who mainly receives support via remittances, it is really expensive to do that. So what we have done with ChitChat is to do various integrations to allow people to use ChitChat to send money internationally to over 150 countries, whether it’s sending from ChitChat to a bank account in the Netherlands, or to a bank account in Indonesia, or to a bank account in Botswana, or to send from Chitchat to any mobile money provider anywhere in the world. What that does is to bring that remittance experience closer to the people who actually receive the funds to the people who are sending them. So no longer do you have to go to a bank and I’m glad that we’ve been able to do that because this something that I use every day so I know the experience. Secondly, for people who are living in Africa right now and other emerging markets, I think the main problem that we’re trying to solve for them is to allow them to be able to meaningfully participate in their local communities. So the example that I gave earlier with a small business selling at a shop, that shop is not connected on the internet, yet people who walk past that shop every day know that if I want to go buy batteries, for example, I’m gonna go to the shop two minutes away from me. To enhance that experience, what can happen is that those shops can open a ChitChat account, take pictures of their products, and then they can target a market, which is maybe a 10km to 15km radius around them. What
Read More
TechCabal Daily – Tunga’s Transatlantic Talent Trade
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We’re one day away from the launch of the new Twitter. ICYMI: Mark Zuckerberg and the Instagram team are launching Threads, an Instagram App, on July 6. We don’t know much about the app yet—except that it’s unsurprisingly unavailable in Africa yet—and that it’s Instagram…but with text instead, not photos. Users sign up using their Instagram account and just chat away. You know what they say: competition makes the heart beat faster, who knows if this is all the motivation Musk needs to make Twitter the super app he needs it to be. In today’s edition Tunga is exporting Africa’s tech talents to the Netherlands DStv and GOtv prices jump in Kenya South Africa’s new TV rules say less ads Crypto platforms in SA now need licences The World Wide Web3 Event: TC Twitter Space Opportunities Economy The Netherlands backs Andela-like Tunga to export tech talent The Netherlands wants to export Africans…but in a good way. Many European countries are suffering from a shortage of developer talent. Tech Impact Africa (TIA) a project backed by the Netherlands is training software developers in Nigeria and connecting them to global employers through a staff augmentation firm Tunga. Image source: Zikoko Memes Global employers? Reportedly, 38% of Africa’s 716,000 developers work for at least one company headquartered outside Africa. Tunga has been connecting tech talent in Nigeria, Uganda, and Kenya to such employers for about six years. It claims to have over 1,500 software developers in its community. A win-win situation: In addition to the availability of talent,it is also more cost-effective to hire from Africa. The conversion of hard currency to local currency makes talent more affordable. On the other hand, it offers opportunities for senior developers who are looking for globally competitive salaries. Everyone wins! Zoom out: African countries are also rising to the challenge of producing skilled tech talents. Last year, Kenya introduced a national coding curriculum for its primary and secondary school students. And, in partnership with Microsoft, the East African country launched a digital talent programme to build a workforce of tech talents. Similarly, Nigerians affected by the country’s problematic academic system are looking towards alternative learning platforms like AltSchool and Semicolon to acquire tech skills. You’ll be in good company Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Click here to open a business account today. Streaming MultiChoice raises DStv and GOtv prices in Kenya Starting August 1, 2023, TV subscription prices will skyrocket in Kenya. MultiChoice announced its third round of price hikes for its DStv and GOtv services in Kenya. Image source: Tenor The new subscription prices: DStv’s Access plan will see an increment from Ksh 1,250 ($8.8) to Ksh 1,300 ($9), while the Family plan will increase from Ksh 1,750 ($12) to Ksh 1,850 ($13). The Compact plan will be adjusted from Ksh 3,300 to Ksh 3,500, while the Compact Plus plan will increase from Ksh 5,900 ($42) to Ksh 6,200 ($44). Furthermore, the Premium plan will also be increased from Ksh 9,500 ($68) to Ksh 9,900 ($70). As for GOtv, the Max Bouquet will experience an increase from Ksh 1,350 ($9.6) to Ksh 1,450 ($10.3), and the SUPA bouquet will be adjusted from Ksh 1,750 ($12) to Ksh 1,900 ($13.5). ICYMI: in August 2022, the entertainment company added Ksh 500 ($3.55) to its DSTV Premium package. In March 2023, MultiChoice again raised prices by 10% to meet up with rising “operational costs”. The change took effect on April 1. The big picture: This time, Inflation and costs force Multichoice to raise prices, impacting Kenyans who rely on DStv and GOtv for entertainment. As Netflix and HBO commence a content deal, consumers will have an expansive selection of paid-TV providers. If these providers can deliver a competitive service at a lower price point, they have the potential to attract a considerable portion of MultiChoice’s subscriber base. This could break MultiChoice monopoly in many African countries, including Kenya. Media South Africa introduces new TV advertising rules South Africa’s TV advertising regulation is out with the old and in with the new. The Independent Communications Authority of South Africa (ICASA) has released updated regulations for advertising, infomercials, and sponsored programmes broadcast on the country’s airwaves. ICYMI: The old regulations which have been in effect since April 1, 1999, are now overridden by ICASA’s updated rules. These new rules apply to licensed broadcasters, including prominent players such as the South African Broadcasting Corporation (SABC), E-tv owner, eMedia and DStv owner, MultiChoice. Failure to adhere to the regulations may lead to fines of up to 1 million rand ($53,392). No long ads: The new regulations want to make sure South African viewers are getting their money’s worth. Image source: Zikoko Memes Section 5(1) of the gazette states that a broadcasting service licensee (BSL) must not transmit any infomercials during prime time or during the transmission of, or in breaks during the transmission of, any children’s programme. Section 5 (3) further states that no channel may transmit infomercials for more than two (2) cumulative hours during the performance period on any one day. Additionally, Section 6(7) states that product placement in programming other than news and current affairs shall be subordinate to the content of the programme material. The new regulations will go into effect within six months. GrowthCon 1.0: Learn how to unlock 10X Growth Connect with growth leaders, operators, and enablers to explore proven tactics for driving sustained business growth in Africa at GrowthCon 1.0. Experience curated masterclasses, case studies, a growth hackathon and more. Get your tickets now at 15% off. Use the discount code “TIX15”! Legislation SA to require licences for crypto exchanges Image source: Further Africa Yesterday, the country’s Financial Sector Conduct Authority (FSCA) announced that crypto exchanges in the country will need to obtain licences if they want to continue to operate. The FSCA has set
Read MoreHow African startups can become media-savvy
Noel K. Tshiani, founder of Congo Business Network, has steadily emerged as a prolific voice for startups from the Democratic Republic of Congo. His insights and perspectives have graced a variety of media platforms, including radio and television broadcasts, as well as a number of influential magazines. And through written interviews with entrepreneurs from Kinshasa for various media outlets, he has worked diligently to equip these budding businesses with essential marketing, branding, and communications skills. What was the goal? To enable these startups to navigate the media landscape and become media-savvy. The African tech ecosystem has undergone significant transformation over the past five years, with startups springing up across the continent to solve problems ranging from financial inclusion to improving agricultural yields and increasing access to healthcare. As these startups grow, adapt and scale their operations, there is an increasing need for them to become media-savvy, both locally and internationally. Becoming media-savvy is no longer a luxury, it is a necessity and a competitive advantage for entrepreneurs. Below, I will discuss the key aspects of media literacy that make it an essential skill for African startups in the digital age. Increasing visibility in a competitive market The first reason for African startups to be media-savvy is visibility. In the age of information overload, standing out in a sea of competitors is no easy task. Startups need to ensure that their story is heard and understood by potential investors, customers, partners and even regulators. By leveraging the media—whether traditional outlets, social media, or emerging platforms such as podcasts—startups can amplify their voices and gain the attention they need to succeed in Africa. Shaping the narrative and controlling the message The second reason is narrative control. Startups operate in an environment that is often misunderstood or misrepresented. As a continent, Africa still struggles with stereotypes and misconceptions. Although Africa is home to six of the ten fastest growing economies in the world, the continent still struggles with entrenched stereotypes and misconceptions. By actively seeking positive media coverage, startups can challenge these narratives and create a better image of innovation on the ground in different countries. They can communicate their vision, highlight their successes and provide clarity about their operations, thereby shaping public perception. Attracting investment and building partnerships Investors and partners are essential to the growth of technology startups such as fintechs. Being media-savvy helps startups get on the radar of potential investors. By showcasing their solutions, growth trajectory and impact, startups can attract the financial backing and strategic partnerships they need to reach the next level. Regular media coverage helps build trust in the startup and its team, making it easier to attract the attention of institutional investors in Europe and the United States. Managing crisis and protecting reputation In a hyper-connected world, a crisis can escalate quickly and cause significant reputational damage. Media-savvy startups are better equipped to handle these situations. They can communicate quickly and effectively on Twitter, LinkedIn, and Facebook to take control of the narrative and mitigate the fallout. Increasing user engagement and customer acquisition Media-savvy can help startups increase user engagement and customer acquisition. With the right messaging and a well-developed media strategy, startups can reach their target audience, create awareness for their products or services, and ultimately drive growth that leads to profitability. In conclusion, the importance of media-savviness for African startups cannot be overstated. As they continue to innovate and challenge the status quo, a solid understanding and strategic use of media will be required to achieve success. It is a skill that needs to be cultivated and prioritised, not as an afterthought, but as a fundamental part of their growth strategy once the business is up and running. From attracting investment and partners to managing crises, shaping narratives and driving user engagement, the benefits are far-reaching. Now is the time for African startups to step into the media spotlight and let the world know about the incredible innovation happening on the continent.
Read More
How Netflix and HBO’s partnership could mean trouble for Showmax
As Netflix and HBO commence a content deal that would see popular titles like Insecure and Ballers come to Netflix, Showmax, being the exclusive provider of HBO content in Africa thus far, has a reason to be worried. According to a report by Deadline, Netflix has started streaming several popular shows from HBO after it struck a deal with the network’s parent entity, Warner Bros. Discovery. With the new partnership, all five seasons of Insecure are now available on Netflix. Other shows like Six Feet Under, Ballers and Band of Brothers are also coming to Netflix. It’s the first time that Netflix will offer HBO TV shows, which are generally exclusive to Warner Bros. Discovery’s Max service or Netflix rivals. Warner Bros. Discovery CEO David Zaslav had signaled early in his tenure that he is open to forgoing exclusivity and license content to boost the bottom line. This development should worry Showmax, Multichoice’s bet in the streaming space. Showmax and HBO exclusivity deal Since 2020, Showmax and its sister product, DStv, have had the exclusive rights to broadcast and stream HBO shows in South Africa and their other markets. Through the deal, Showmax subscribers could watch HBO releases like Game of Thrones and Westworld immediately after they air on MNet, DStv’s entertainment channel. But with House of Dragons, another HBO offering, Showmax offered it to subscribers a full two months after it aired on MNet. This move infuriated subscribers and stoked speculation that the streaming platform was unwilling or unable to pay for early streaming rights to the series, according to MyBroadband. Despite being a global hit, House of Dragons performed poorly on MNet, bringing in only 7,701 viewers, or 2.75% of subscribers on DStv Premium, according to data from the Broadcasting Research Council of South Africa (BRCSA). In contrast, in the US, WarnerMedia announced the series had its largest-ever premiere for HBO and HBO Max in the US, racking up 9.986 million viewers, while in the UK and Europe, Sky also revealed the show had the best debut of any US program, pulling in 1.39 million viewers on its first day. No exclusivity, no party for Showmax In April, Multichoice announced a partnership with US media giant COMCAST, owners of NBCUniversal, and its UK counterpart SKY to create “Showmax 2.0,” a new platform powered by Peacock and 70% owned by Multichoice and 30% (stake sold for $30 million) owned by the aforementioned UK and US partners. Showmax 2.0’s ownership and content structure (Image source: Multichoice) Content-wise, Showmax 2.0’s success is mainly hinged on the exclusive streaming of content from SKY and COMCAST and third-party providers, including HBO and WarnerBros. With the latter striking deals with Netflix, some of this content may no longer be exclusive to Showmax in Africa. If SKY and COMCAST strike similar deals with Netflix, it could spell trouble for Showmax 2.0’s entire business model, a product that Multichoice is investing in for the foreseeable future. When TechCabal reached out to Showmax about the development and how it will impact the streaming platform, it stated that the agreement between Netflix and HBO would not affect its current offering. “There are no changes coming to Showmax. HBO shows will continue to be available on Showmax across Africa, including 2023 hits you can’t stream anywhere else like Succession, The Last of Us, and Barry, and express titles like The Idol, Warrior, The Righteous Gemstones, and Winning Time: The Rise of the Lakers Dynasty, which launches on 7 August,” said Yolisa Phahle, CEO at Showmax. According to its annual results for the year ended 31 March 2023, Multichoice is doubling down on its streaming bet, Showmax, with the company choosing not to issue shareholders dividends. Instead, it will continue investing in the streaming platform. “In view of the challenging South African market, the uncertain currency outlook, the funding needs of the Rest of Africa business and the investment required to drive Showmax to become the leading streaming platform on the continent, no dividend has been declared for FY23,” the company stated. On its financial results booklet, Multichoice mentions DStv, its core product, only seven times, compared to the twenty times it mentions Showmax, perhaps pointing to how much the company is betting on the success of the platform as the last straw to keep the company from going under. Meanwhile, French broadcasting giant Canal+ continues its steady purchase of Multichoice’s ordinary shares, now owning 31.7% of the company, about 3% away from the 35% stake, which would require Canal+ to make a mandatory offer for Multichoice.
Read More