Space

While Nigeria’s space ambitions face a temporary setback, its achievements shouldn’t be forgotten. Launched in 2003, NigeriaSat-1, Nigeria’s first earth observation satellite supported disaster responses in Argentina, Paraguay, and West Africa before its decommissioning in 2014.

Its impact also extended to vital mapping projects in the Amazon rainforest and Vietnam’s coastlines.

Nigeria’s space programme has a history of reaching out a hand from beyond Earth’s atmosphere. However, ambitious plans to launch a Nigerian astronaut and a domestically-built satellite in 2025 have been put on hold.

Why? The Director-General of Nigeria’s National Space Research and Development Agency (NASRDA), Dr Halilu Shaba, disclosed that the agency’s ambitious plan to launch a satellite by 2025 hit a financial roadblock. 

Additionally, launching an astronaut into space is currently deemed economically unfeasible. NASRDA anticipates it may take up to five years to secure a launch slot, making immediate astronaut training impractical. Despite the delay, NASRDA maintains its 25-year plan to send a Nigerian astronaut into space and launch an indigenous satellite from Nigeria. The agency projects significant growth potential for Nigeria’s space industry, aiming for a valuation of up to $1 billion.

Zoom out: Meanwhile,NigeriaSat-2, another earth observation satellite launched in 2011, remains functional, providing high-resolution imaging for various purposes. NASRDA utilised it for estimating population and partnered with China to monitor earth tremors in Nigeria and across Africa.

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Telecoms

African mobile mobile money providers have experienced a surge in investment in recent times. Two years after its $100 million investment in Airtel Money, Mastercard acquired a minor stake in MTN’s mobile money arm.

In 2021, Airtel hinted at a possible public offering for its fintech arm after receiving investments from TPG—$200 million—and Mastercard—$100 million—valuing the unit at $2.65 billion.

Now, Airtel’s mobile money arm might be ready to go public. Yesterday, Bloomberg reported that Airtel Africa is exploring taking its mobile money unit public, with a potential valuation surpassing $4 billion. 

Talks of the IPO are in preliminary stages and the company may decide against going public.

Airtel Money is Airtel Africa’s fastest-growing arm. While Airtel 2023 profits plunged by almost 99%—recording $2 million in profits compared with $523 million it made in 2022—due to currency devaluation, its mobile money arm recorded a 31.8% revenue growth. 

The telecom currently offers its mobile money services in 14 African countries. In Nigeria, it competes with MTN Momo, while it is dwarfed by competition from Kenya’s mobile money giant, MPesa. Last year, it received approval to allow customers to transact up to KES 500,000 ($3,400) up from KES 300,000 ($2085) which it was previously allowed to do. 

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Telecom

Telkom’s race to become Kenyans telecom choice has hit another roadblock. 

Over the years, the telecom has tried to keep pace with Safaricom—who holds the largest market share with 65 million subscribers—and Airtel with 18 million subscribers, for the largest slice of Kenya’s telecom market. However, financial troubles and a declining user count means that the dream is fast becoming out of reach. 

Between March 2022 and June 2023, Telkom lost 1.62 million subscribers due to a crackdown on irregularly registered SIM cards.

New reports show that Telkom has lost about 800,000 more subscribers due to unpaid leasing fees to American Towers Corporation (ATC). 

ATC switched off 246 Telkom towers in February after it defaulted on leasing fees. Currently Telkom owes the ATC about KES 7.1 billion ($51.7 million). Both parties entered an agreement two years before. 

ATC asked Telkom for an initial payment of KES 500 million ($3.6 million) and a monthly payment of KES 150 million ($1.09 million) to reactivate the towers. Telkom said it was unable to pay the debts due to its financial struggles. 

Telkom’s mobile subscribers count as of December 2023 had dropped to 1.3 million down from 3 million.

Before now, Telkom owned and managed its towers before it sold about 723 to the ATC in 2018. At the time, the telecom said the move would “enhance the quality and reliability of our network to benefit our customers.” It now appears the move might have served the wrong purpose. 

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Fintech

Africa’s fintech leader, Interswitch, isn’t content with just being a payments powerhouse. After its surprise foray into Nigeria’s telecom sector via a Mobile Virtual Network Operators (MVNO) licence acquisition in May 2023, its ambitions haven’t stopped there.

Its latest move involves a merger with mobile money provider M-Kudi, to acquire a Payment service Bank (PSB) licence from Nigeria’s central bank.

What’s the deal? Currently, Interswitch focuses on processing payments. The merger with M-Kudi—subject to regulatory approval—will allow Interswitch to create accounts and hold customer deposits. With a PSB license, the company will also be able to receive foreign currencies for its customers and offer agency banking services.

Aside getting regulatory approval for the PSB licence, a challenge Interswitch will have to face is convincing Nigerians who are known for being cautious about adopting new financial products.

Heating up competition: Interswitch isn’t alone. Considering its recent foray into the telecoms sector, entering the PSB market means facing established players like MTN MoMo, whose PSB wallet base reportedly has 5.3 million monthly active users. However, Interswitch’s established presence in Nigeria, where it derives 94% of its revenue could be an advantage.

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Register now.

Crypto Tracker

Source:

Coin Name	Current Value	Day	Month
Bitcoin	$73,220	+ 3.01%	+ 46.42%
Ether	$3,996	+ 1.16%	+ 51.12%
Tether USDt	$1.00	+ 0.03%	– 0.01%
BNB	$607.76	+ 12.81%	+ 87.58%

* Data as of 11:23 PM WAT, March 13, 2024.

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Opportunities

• In partnership with Spurt!, Oui Capital is hosting the 2nd edition of the African Amazon Masterclass for female founders taking bold steps to build & execute on the African continent.  Apply by March 18
• In collaboration with AfriGloCal VC, a venture capital firm building the African future by investing in entrepreneurs with global perspectives and innovative solutions, Lagos Innovates unveils its latest initiative, the Female Founders & Funders Program, an incubation and acceleration program designed for women. Female Startup Founders, apply here. Female Funders/Angel Investors, apply here. 
• As the world marks the 2024 International Women’s Day, Moniepoint Inc has announced the launch of this year’s edition of the Women-In-Tech initiative. Ten women will take on roles in various teams that include Cloud Engineering, Backend Engineering, Technical Product Management, Data Engineering, Systems Administration, Technical Support and User Experience. These women will be provided with a salary, work tools, merch, the opportunity to work on live projects during the internship and an offer of full-time employment depending on assessment post-internship. Apply by March 17.

What else is happening in tech?

• Meet the 15 startups founded by former Monzo employees
• UK invites African tech startups to apply for its Pathfinder Awards
• Makate wants Vodacom PCM appeal thrown out
• 60 crypto platforms set to be licensed in South Africa

Written by: Mariam Muhammad & Faith Omoniyi

Edited by: Timi Odueso

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• The Next Wave: futuristic analysis of the business of tech in Africa.
• Entering Tech: tech career insights and opportunities in your inbox every Wednesday at 3 PM WAT.
• In a Giffy: business decisions powered by data-driven insights and analysis you can trust.
• TC Scoops: breaking news from TechCabal

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Fintech

Depending on who you ask, Softcom was the dream place to work. The software agency had great perks for employees—including work retreats to Dubai and SA—and lucrative contracts from clients like Coca-Cola, MTN, and the Nigerian government.

In 2021, the company stopped building software for its client and took an ambitious turn to produce a fintech giant in Eyowo. Everyone loved Eyowo. Early users also gushed about the product. Ex-employees believed they could change the world.

However, five years down the road, salary delays, service outages, and ultimately, a revoked licence, meant that this bet failed. How did such a promising product with its sights on becoming a fintech giant run into problems?

Dig Deeper here

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Telecom

In June 2022, MTN Nigeria, the Nigerian arm of one of Africa’s largest telecom companies, disclosed a ₦22.3 billion ($14 million) mobile money fraud that involved 18 Nigerian banks on its mobile money platform— MTN MoMo. The fraud happened due to a glitch on the platform, one week after its launch in May 2022.

Despite MTN’s ₦16 billion ($10 million) investment in MoMo, its 2022 financial report revealed that MoMo incurred a loss of ₦10.5 billion ($6.5 million) due to the glitch.

The news: MTN has successfully recovered ₦12.5 billion ( $7.85 million) of the funds lost during the glitch in its mobile money service. However, the remaining balance of ₦9.5 billion ($5.97 million) will be absorbed by MTN Nigeria under a shared services cost agreement between the telecom company and its MoMo service.

How has this loss affected MoMo’s service?  As at June 2023—one year after its launch— the service was reportedly still seeking adoption by Nigerians. MTN Nigeria’s CEO, Toriola, noted slower-than-anticipated business development. Regulatory approval delays and challenges with NIN requirements hindered MoMo’s growth. However, Toriola expressed satisfaction with MoMo PSB wallet base, which has increased from 3.3 million monthly active users to 5.3 million, supported by 326,000 MoMo agents and 324,000 merchants.

Meanwhile, MTN Nigeria has also swallowed its first loss in three years. The telecom reported a loss after tax of ₦137.0 billion ($86 million) in 2023 compared to profits of ₦348.7 billion ($218.9 million) in 2022, after a naira devaluation and rising cost of doing business ate into its margins.

Investments

In July 2023, Ubuntu Towers Uganda rebranded into TowerCo of Africa Uganda after TowerCo of Africa (TOA)—a tower infrastructure company—acquired a 90% stake in Ubuntu Towers.

Already managing a network of towers spanning 360 locations, with most utilising hybrid energy solutions, TowerCo is keen on adding more sites in a few years.

Fueled by a $40 million investment, TowerCo Uganda wants to expand its reach by constructing 506 new towers in underserved areas in Uganda. The project aims to expand mobile network coverage in Uganda from 65% to 95%, reaching remote areas currently lacking access, and will enable rural communities to access 4G and 5G data services.

The investment: The European Investment Bank, in partnership with ACP Trust Fund, will provide $16 million, and $12 million each will come from the Development Bank of Austria (OeEB) and the Belgian Investment Company for Developing Countries (BIO) over the next 10 years.

Multiple mobile operators will share the towers and a significant portion will be solar-powered for sustainable development. The tower construction is expected to create 2,000 jobs and be completed within the next two years. TOA also operates in Madagascar, the Democratic Republic of Congo (DRC) and Tanzania.

Zoom out: In other African countries like Zambia, following their announcement of digital centres for free internet access, the Zambian government plans to construct 60 new 4G mobile towers specifically targeting remote areas.

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Crypto

Last year, Nigeria’s Security Exchange Commission (SEC) began processing the application of digital exchanges on its capital market, a move to attract the country’s young digitally-savvy population.

The commission’s head of securities and licence investment at the time said it was going to register tokenized assets backed by equity, debt, and real estate. 

Now, as the NGX inches closer to including digital assets in the capital markets, it has released new guardrails to mitigate risks associated with the asset class. 

The news: Yesterday, the commission released new regulations aimed at licensing and registering new digital and virtual asset service provider (VASPs) entrants to the capital market. The regulations, aimed at reducing the participation of bad actors from trading in the capital market, packs a punch with three separate guidelines, including Countering the Financing of Terrorism (CFT), Anti-Money Laundering (AML), and Countering Proliferation Financing (CPF) onboarding manual. 

The new regulation is another litmus test for Nigeria’s crypto landscape which has seen Binance discontinue providing naira services in the country after the government blamed it for currency speculation and remanded two of its executives. 

While exchanges in the country are gearing up to include digital assets in their list of trading options, it remains to be seen if Nigeria will not go back on its word given its relationship with crypto.

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TC Insights

This week, MDaaS Global, a Nigerian healthtech startup, raised $3 million in pre-Series A funding. Aruwa Capital Management and Newton Partners co-led the round, while Ventures Platform participated. 

Here’s the other deal for the week:

• Moroccan finTech start-up Tookeez announced a fundraising round of $1.5m from the Azur Innovation Fund. 

Before you go, our much anticipated State Of Tech In Africa Report for Q4 2023 is now out. Click this link to download it.

Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. You can also visit DealFlow, our real-time funding tracker.

Crypto Tracker

Source:

Coin Name	Current Value	Day	Month
Bitcoin	$67,331	+ 1.51%	+ 52.41%
Ether	$3,877	+ 0.93%	+ 59.78%
Tether USDt	$1.00	– 0.00%	+ 0.07%
BNB	$470.52	+ 10.03%	+ 55.24%

* Data as of 11:07 PM WAT, March 7, 2024.

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Job openings

• Paystack – Design Manager – Nigeria (Remote)
• Bamboo – Communications Associate – Lagos, Nigeria (Hybrid)
• Paystack – Senior Backend Engineer – Cape Town, South Africa
• LemFi – Country Marketing Manager – Kampala(remote)
• Visa – Biz Dev Analyst –  Lagos – Nigeria
• Renmoney – Product Manager – Lagos, Nigeria

There are more jobs on TechCabal’s job board. If you have job opportunities to share, please submit them at bit.ly/tcxjobs. 

What else is happening in tech?

• Record funding in women-led healthtech startups sets agenda for founders
• CBN signs MoU with blockchain firm to boost eNaira adoption
• Senegal’s presidential election is set for March 24
• How much fuel tax government loses with every electric tax in South Africa

Written by: Mariam Muhammad & Faith Omoniyi

Edited by: Timi Odueso

Want more of TechCabal? Sign up for our insightful newsletters on the business and economy of tech in Africa.

• The Next Wave: futuristic analysis of the business of tech in Africa.
• Entering Tech: tech career insights and opportunities in your inbox every Wednesday at 3 PM WAT.
• In a Giffy: business decisions powered by data-driven insights and analysis you can trust.
• TC Scoops: breaking news from TechCabal

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Telecoms

In December 2020, Nigeria’s former minister of communications and digital economy Isa Pantami announced an integration policy to link SIM cards to the country’s National Identity Network NIN database.

The goal was simple: to ensure the NIN was a robust identification system for its citizens. Think of it as the equivalent of a social security number in the US. The government also hoped that the move would make it easy to track offenders of phone-related crime cases like kidnapping and banditry. 

The move was however widely criticised by the citizens due to the inconvenience of linking their SIMs with the NIN and the almost impossible deadline of December 15, 2020, at which time telecoms would have to block all SIMs that were not registered with valid NINs.

The government has however postponed this deadline multiple times. And now, it appears the government is ready to take action. 

Time’s up: Yesterday, the Nigerian Communication Commission directed all telecoms to block subscribers not yet linked to NIN. MTN, AIrtel and Glo are set to block about 12 million subscribers who are yet to comply with the Nigerian government directive.

The NCC said it “was committed to protecting consumers’ rights while ensuring their satisfaction.”

The NCC has made this promise before. In May 2023, the regulator directed all licensed mobile network operators (MNO) to use unified shortcodes—*310#—so users with multiple SIMs don’t need to have a headache memorising multiple short codes. 

It remains to be seen if the NCC—out of its sheer love for users—will approve yet another deadline for the NIN SIM linkage.

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Lay offs

Nigeria’s headline inflation rose to a near three-decade high of 29.92% in January. The inflation coupled with Nigeria’s depreciating currency has fastened its fangs on the purchasing muscles of its people of which 133 million are multidimensionally poor. 

Businesses and tech startups also bear the brunt, recording increases in operating costs and reduced profits. 

For property tech startup Spleet which allows monthly rental on its leased properties instead of a yearly rental charge, the inflation and devaluation are driving rental prices up by 2x. 

To cope with these new price changes, the proptech startup, on Thursday, said it was reducing operating costs and laying off some members of its workforce. 

Dig deeper here.

Innovation

By the close of 2022, the tech ecosystem in Lagos, Nigeria, had reached a valuation of $8.4 billion. Yaba, a suburb within Lagos, emerged as a prime location for numerous companies, including the pioneering startup incubator, CcHUB.

Founded in 2010 by Bosun Tijani—now the minister of communications, innovation and digital economy—and his colleagues, CcHUB played a pivotal role in Yaba’s development. It gained momentum and collaborated with the government to install fibre optic cables in Yaba, which has now played a crucial role in creating what is arguably Africa’s most organic tech cluster, with CcHUB becoming Lagos’ leading tech innovation centre.

Abuja gears up for tech city: In more technological advancements, Nigeria’s federal government has signed a Memorandum of Understanding with Domineum/Edenbase UK to develop a state-of-the-art tech hub—Abuja Tech City— in the capital city of Nigeria. 

The project seeks to replicate the success of London Tech City, valued at over £61 billion ($77 billion) in its fifth year of operation. Notably, the same consortium responsible for developing London Tech City will be behind the construction of Abuja Tech City.

The Abuja Tech City project, originally conceived as Abuja Tech Village during the tenure of former President Olusegun Obasanjo, has received renewed attention under the current administration. A standout feature of the Abuja Tech City is its designation as a Free Trade Zone, offering a conducive environment for tech-driven startups, industries, and innovation initiatives, with a vision for a smart and green city.

Clearing the Path for Progress: To pave the way for development, the government has directed illegal occupants to vacate the Pyakassa area of Abuja, where the Tech City will be built. The indigenous community had already received compensation in 2015, making the current step essential for taking full possession of the land and starting construction.

Zoom out: Other regions are catching up. Kaduna, in the north, which boasts of CoLab, the city’s first tech hub, has also partnered with the state government to establish Kaduna Technology City.

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Fintech

Millions of Africans will enjoy greater access to digital payments thanks to a multi-market partnership between MTN Group, Africa’s largest mobile network operator, and Mastercard, a global payment processing company.

The deal will introduce a prepaid virtual card specifically designed for MTN’s MoMo customers, enabling them to access over 100 million acceptance points globally. This initiative will impact MoMo’s active monthly wallets, totalling 60 million across its expansive presence in 13 African markets, including Nigeria, South Africa and Rwanda.

There’s more: For Mastercard, the partnership also extends its benefits to entrepreneurs by providing access to Mastercard’s “SME-in-a-Box” solution—a package that equips businesses with the tools they need to accept digital payments, manage their online presence, and drive innovation. 

The partnership follows Mastercard and MTN’s recent agreement to invest $200 million to acquire a minority stake in the digital financial services division of MTN Group.

Driving financial inclusion: With MTN’s extensive subscriber base of 290 million, the multi-market partnership holds significant potential for widespread adoption. Moreover, MoMo merchants will seamlessly integrate card payments into their operations, enhancing the platform’s capabilities for cross-border money remittances.

This partnership also aligns with Mastercard’s commitment to bringing one billion people and 50 million SMEs into the global digital economy by 2025.

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TC Insights

This week, MoneyHash, an Egyptian fintech startup, raised $4.5 million in seed funding. COTU Ventures and Sukna Venture led the round, and other investment outfits such as RZM Investment, Dubai Future District Fund, VentureFriends, and individuals like Tom Preston-Werner (founder of GitHub), among other strategic investors, participated.

Here are other deals for the week:

• South African AI-driven startup Cue secured $2 million in a seed funding round from angel investors .
• Kenyan e-commerce startup Tappi secured a $1.5 million pre-seed funding round from Acasia Ventures, along with Mercy Corps Ventures and Chui Ventures, and international VC firms and angel investors, as well as advisors from Google and Salesforce.
• Bfree, a Nigerian startup enabling lenders to recover debt ethically, secured $3M in a round led by Capria Ventures. Angaza Capital, GreenHouse Capital, Launch Africa, Modus Africa, Axian CVC, and several angel investors.

Before you go, our much anticipated State Of Tech In Africa Report for Q4 2023 is now out. Click this link to download it.

Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. You can also visit DealFlow, our real-time funding tracker.

Crypto Tracker

Source:

Coin Name	Current Value	Day	Month
Bitcoin	$61,333	– 1.97%	+ 41.71%
Ether	$3,349	– 0.92%	+ 44.67%
Tether USDt	$1.00	– 0.07%	+ 0.03%
BNB	$400.30	– 3.85%	+ 28.85%

* Data as of 12:53 AM WAT, March 1, 2024.

Experience the best rates and enjoy swift 6-24hrs delivery times. Elevate your business with OneLiquidity–get started today.

Events

The Africa eGovernance Conference is set to hold from the 12th to the 14th of March 2024. The conference and exhibition will feature

plenary and deep-dive, networking and dealmaking sessions featuring relevant technology solutions tailored for the urgent transformation

 of Africa. Join strategists and policymakers like Bak Barnaba Chol, Minister for Finance South Sudan; Cina Lawson, Minister for Digital Economy and Transformations, Togo; and Paula Ngabire, Minister of ICT and Innovation, Rwanda to create the pathways into the future of digital governance. Register here. 

What else is happening in tech?

• Africa’s mobility startups: Electric and global ambitions fuel funding surge
• Why Nigeria’s petrodollar economy is short of dollars
• Why South Korean women are not having babies

Written by: Mariam Muhammad & Faith Omoniyi

Edited by: Timi Odueso

Want more of TechCabal? Sign up for our insightful newsletters on the business and economy of tech in Africa.

• The Next Wave: futuristic analysis of the business of tech in Africa.
• Entering Tech: tech career insights and opportunities in your inbox every Wednesday at 3 PM WAT.
• In a Giffy: business decisions powered by data-driven insights and analysis you can trust.
• TC Scoops: breaking news from TechCabal

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Investments

It feels like it was just last week we wrote to you about Nigerian fintech Moove raising $10 million to expand further into India. 

Now, the company is mooving fast with an investment that could be worth 10x its last raise—and ⅓ of its total raise so far! 

The news: Ride-hailing giant Uber is exploring a potential investment of up to $100 million in the Nigerian fintech which specialises in vehicle financing for drivers in the gig economy. This moove, if finalised, would significantly boost Moove’s valuation to $750 million, further solidifying its position as a major player in Africa’s burgeoning tech scene.

The potential investment, according to Bloomberg, is still currently under discussion, but it underscores Uber’s growing interest in deepening its presence in Africa’s booming ride-hailing market. In 2022, the platform recorded its 1 billionth-ride milestone on the continent.

While the company has invested in over 40 companies globally, its potential investment in Moove could mark its first in Africa.

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Economy

Cash is no longer king in the Nigerian forex market. 

In its latest attempt to save the naira from further depreciation against the greenback, Nigeria’s apex bank has set a $500 limit on the purchase and sales of the dollar by cash.

What this means is that if you want to buy or sell foreign currency exceeding $500 through a Bureau De Change (BDC) operator in Nigeria, you’ll need to use digital payment methods like bank transfers or online platforms. The new rule bars BDCs across the country from dealing with cash transactions above $500 for the purchase or sales of foreign currency.

The move is the latest in the cards of methods used by the apex bank in curtailing the naira’s depreciation. While the CBN has implemented various regulations for BDCs in the past, this particular approach is a novel and untested method. 

This month, the CBN also introduced new tiers of licences for BDC operators in the country, increasing their share capital to ₦2 billion ($1.3 billion) and ₦500 million ($340 million) for Tier 1 and Tier 2 licenses respectively, way up from ₦35 million(~$24 million) previously charged for a general license. In addition to barring BDCs from engaging in street trading, the CBN also compelled a mandatory source of funds disclosure for individuals selling $10,000 or more to BDCs.

Compared to international practices, some might argue that the CBN’s limitation on cash transactions for foreign currency exchange is uncommon. While many many countries regulate BDCs and money laundering activities, switching to digital transactions at a $500 cap limit is brow-raising.

The blame game: The Nigerian government continues in its search for ways to bring the naira back on track. If Twitter chatter is to be believed, one of the ways it plans to do this is by cutting off BDCs whom the government has often blamed for its ailing currency and black market disparity.

Regulation

In May of last year, Nigeria’s Central Bank (CBN) revoked the licences of 132 microfinance banks. The reasons the apex bank cited included inactivity, insolvency, failing to render returns, and a host of other stuff. 

For the thousands of Nigerian customers across these apps, this meant they lost access to every single dime locked tightly in the MFBs. 

Our reporting has now uncovered a new fact: the Nigerian Deposit Insurance Corporation (NDIC), the Nigerian agency that protects deposit banks, stepped in to offer some relief to the customers of the affected microfinance banks.

Here’s what you need to know: As per notices released in May and August 2023, depositors with proof of claims can receive up to ₦200,000 ($242 at the time) per account. Customers with larger deposits, however, will have to wait for the NDIC to liquidate the banks’ assets and distribute the remaining funds as “liquidation dividends.”

While banks like Eyowo Microfinance Bank have been applying to get their licences back, Eyowo restored interbank transfers througha partnership with Providus Bank in June 2023. This offered a glimmer of hope for its customers to gain access to their funds, but not for long, as the app became inaccessible weeks later. 

It’s going to take a while: As compensation efforts continue, the fate of many banks hangs in the balance. While the NDIC is exploring alternatives like shareholder investment, success isn’t guaranteed. Liquidation looms for most affected banks, and while Nigerian corporate laws require that liquidation be completed in 12 months, the same Act also allows the process to exceed the given time as long as the public is notified.

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Economy

Despite Kenya’s pursuit for a higher rating after a review that deemed them “partially compliant” with the global standards on anti-money laundering and terrorism financing, the East African country has found itself on the Financial Action Task Force’s (FATF) grey list again.

This comes four months after Kenya became Eastern and Southern Africa’s anti-money laundering leader. The East African country landed on the FATF’s grey list for weak anti-money laundering controls, joining 23 other nations under heightened scrutiny. 

The task force has asked Kenya to supervise crypto assets, improve the quality of financial intelligence and increase the prosecution of money laundering cases.

What’s an FATF grey list? It’s a list of countries with deficiencies in money laundering and terrorist financing. This means Kenya might be subjected to stricter financial scrutiny from the global economy, forcing critical changes to its financial system to reduce the risk of being a haven for dirty money.

With Kenya’s robust $20 billion crypto market, in early February 2024, the Blockchain Association of Kenya (BAK) introduced its first-ever Virtual Assets Service Provider (VASP) draft Bill, which proposes a comprehensive framework encompassing licensing, consumer protection, anti-money laundering, and a regulatory sandbox. However, its efforts didn’t reduce its prospects of joining the FATF’s grey list.

This isn’t Kenya’s first FATF rodeo. In 2010, the East African country was put on the grey list but was taken off the list in 2014 after the FATF review found that Kenya had made progress by introducing laws to identify and freeze terrorist financing. Now, the East African country joins South Africa, Cameroon, Namibia, and Nigeria on the grey list.

Delight your customers by allowing frontline staff and sales agents confirm bank transfers instantly, via WhatsApp alerts. Learn more → 

Telecom

South African telecom Cell C says it is ready to pay its debts.

What debts? The mobile operator bought 10MHz of data bandwidth for R288 million (~$15 million) but has had trouble paying for it due to its current financial difficulties.

In January, Cell C considered downsizing its workforce to improve operational flexibility and reduce costs. This followed adjustments to senior management positions earlier in the year to align with a new organizational structure. Cell C’s customer base also witnessed a sharp decline, shrinking from approximately 2,600 in June 2022 to just 900 by September 2023. This represents a staggering 36% decrease in just 15 months.

In a bid to address its financial challenges, last year Cell C streamlined its operations by letting go of its costly radio access network—an expensive part of a telecoms network that connects end users— outsourcing it to Vodacom and MTN. 

Blue Label Telecoms, Cell C’s largest shareholder also made capital injection into the company, to keep the company afloat. Now, the shareholder wants more and is eying a potential acquisition. Blue Label intends to increase its shares by 4.04% in the telecom which would bring its total stake in the company to 53.54%.

Crypto Tracker

Source:

Coin Name	Current Value	Day	Month
Bitcoin	$51,493	– 0.12%	+ 23.04%
Ether	$3,101	+ 2.84%	+ 36.36%
COTI	$70.22	+ 3.28%	+ 117.71%
Worldcoin	$9.01	+ 0.37%	+ 273.07%

* Data as of 05:40 AM WAT, Febraury 26, 2024.

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Job openingss

• Big Cabal Media – Social Media Intern, Senior Events Associate – Lagos, Nigeria
• Adeo – Marketing Personnel – Ghana (Remote)
• Flutterwave – Frontend Engineer – Nigeria
• Credpal – Mobile App Developer – Lagos, Nigeria
• Vodacom – Executive Head: Cybersecurity – South Africa (On-site)
• MRI Software – Data Analyst – South Africa (Hybrid)
• Fairmoney – Lead Product Designer – Lagos, Nigeria

There are more jobs on TechCabal’s job board. If you have job opportunities to share, please submit them at bit.ly/tcxjobs. 

What else is happening in tech?

• Kippa users demand access to data as the fintech quietly pivots
• Build real businesses, VCs tell founders at Techstars Demo Day
• South African shops accuse Shein and Temu of dodging tax
• Kenya leads global interest in Worldcoin despite ban

Written by: Mariam Muhammad & Faith Omoniyi

Edited by: Timi Odueso

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