Moonshot by TechCabal returns in October!

Moonshot is the conference that brings together Africa’s tech ecosystem in person to network, collaborate, share insights, and celebrate innovation on the continent. 

At TechCabal, we believe that there is value in bringing together the brightest problem solvers, businesspeople, and innovators on the continent to meet and create together and change our world. And so, with Moonshot, we are building a global launchpad for that change to happen. 

Last October, we hosted over 2,000 of you in Lagos, Nigeria; you were with us for two days of light-bulb conversations on the wins and potential in African innovation. We had five content tracks: the future of commerce, big tech and enterprise, emerging tech, the startup festival, and the creator economy. We brought on stage an eclectic lineup of guests for these conversations, including Nigeria’s minister of communications, innovation and digital economy, Bosun Tijani; ex-director, Google West Africa, Juliet Ehimuan; Microsoft Engineering’s Nnamdi Orieke; and several guests from the world of tech, business, and the creator economy.

If you didn’t attend last year’s Moonshot, go to our YouTube channel to catch everything you missed. We’ll look forward to seeing you and your friends at this year’s edition in October.

In his welcome address at last year’s conference, Tomiwa Aladekomo, CEO of Big Cabal Media (parent company of TechCabal), stated that Moonshot is about building radical or innovative solutions to big problems—“an opportunity to talk to people who are passionate about solving problems”.

That mandate hasn’t changed. If anything, it has gotten more robust as we prepare to once again host you for three days. It will be three days of smart conversations with business leaders and innovators, from October 9–11, 2024, at the Eko Convention Centre, Lagos, Nigeria. 

Tickets are on sale starting today! You can get 20% off on early bird tickets by clicking here. See you at Moonshot!

Coming into 2023, we had ambitious goals about the breadth of our coverage across news, products and events. Twelve months later, we’re sitting with the results of our lofty dreams, and we couldn’t be more grateful for how far we’ve come.

One of our goals was to pay closer attention to the geography of our readership and ask critical questions to guide our coverage. It’s been particularly gratifying to see our readership in South Africa, Kenya, Ghana, and the US grow collectively by 307.94%, from 249,808% in 2022. Our story on Chowdeck hitting ₦1 billion in order value was picked up by Y Combinator.

Our tech-career newsletter, Entering Tech, started this year with 23K readers and it’s closing with over 60K readers. Our analytical forecast newsletter Next Wave has grown to over 50K readers, up from where we were at 31K in January.

We maintained a two million-strong readership for two quarters running. In our top-10 most-read stories for the quarter were the Dash, Zazuu, and Pivo shutdowns; and Fidelity Bank blocking transfers to some neobanks. 

It’s interesting to note how these stories are all about happenings in the payments space. In 2024, we will be doubling down on our reporting in the financial services sector: we will be asking the revealing questions about business models in the sector, regulations, retail and SME lending, remittances, and wallets.

Edutech

This quarter, we were interested in the intersection between tech and education. We told the story of the evolution of edtech startup uLesson from an extra-lesson service for pre-university students to an online tertiary institution, Miva University.

We also brought you the inspiring story of visually impaired software developer Victor Ekwueme, whose work is fostering tech inclusion for disabled persons.

The people behind your favourite startups

Startups are run by human beings who put their heart, love and ambition into building strong businesses. This quarter, we asked: who are the minds calling the shots at some of our most prominent startups? Here they are for Piggytech, and for Eden Life. Get to know them!

Events

In October, TechCabal hosted over 2,000 persons for two days at our flagship tech conference in Lagos—Moonshot. Were you one of them? You can read everything we wrote about it here and watch videos from the event on our YouTube channel. 

And wait: next year, Moonshot will be back and bigger. It will be for three days, from October 9–11! Click here to join the waitlist for Moonshot 2024.

We didn’t just host an event, we were guests at some: Next Fintech Forum in Abidjan, Africa Tech Festival in Cape Town, Africa Fintech Summit in Zambia, Norrsken Africa Week in Rwanda, and Africa Startup Conference in Algeria. 

From the Africa Startup Conference, read our special TC Daily dispatch from Algeria, and also Ganiu Oloruntade’s report on Algeria needing to open up to drive innovation on the continent.

Ephraim Modise was our man at the Africa Tech Festival and he wrote about how Africa can replicate Estonia’s startup success. We’ve actually  discussed this topic at length on Next Wave, with a focus on Kenya. Read that here.

We also attended an investor summit in Uganda and wrote about the country’s push to become central to innovation in East Africa.

Thank you, over and over!

We can’t have told these stories without your readership, feedback, and engagement. As we go into 2024, we will continue to deliver excellent reporting on tech and business on the continent, and we hope you’ll join us for the ride!

Is something interesting happening in your area that might interest us? Email us at team@techcabal.com.

Happy new year in advance!

Muyiwa Olowogboyega Kelechi Njoku

We’d love to welcome you at Moonshot in October 2024. Click here to join the waitlist!

Now, as we round up, these are their lessons from 2023 and their predictions of what the ecosystem will be in 2024.

仙人掌年 or Year Of The Cactus

If it doesn’t work, don’t force it. It’s important to know when to quit or shut down a business instead of trying fruitlessly to make it work. 

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More than ever, this year emphasised how critical it is to be ahead of policies. KYC is very policy-driven, and trailing behind policies can be gravely consequential. One needs to derisk against policy changes. One also needs to derisk against economic shocks; while we predicted the economic downturn, we underestimated its magnitude. 

2024 Outlook: Things won’t get better until Q3 2024 regarding fundraising. We may not see as much funding as we used to for a long time. However, I think that the economy will pick up quickly next year. We will also see a lot more silent mergers. 

There will also be a new generation of founders who are more experienced in managing their businesses, who focus on unit economics, and who will provide technology that solves real-life problems.

2023 taught me to thrive in chaos. There are a lot of variables that can throw your plan off at any time, so we had to learn how to adapt while maintaining excellence and peace of mind.

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2024 Outlook: Whatever we faced as a collective ecosystem in 2023 will only worsen in the next year.  I am not trying to be a prophet of doom, but I think that sometimes we need to acknowledge how the patterns in economic situations work. 

I still think there will be a lot of growth just the way some plants grow in hard environments. My advice to everyone is to be a cactus this coming year.

Running a sustainable and profitable venture will never be unfashionable. The past few years have made me question whether the tech ecosystem understands business. We were building businesses with no business model and plans to raise [funds] continuously.

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This year showed that the fundamentals of business can never change.

2024 Outlook: A tougher year ahead for the economy and African startups. But there are a lot of problems to solve, so we will see a new crop of startups. However, resilience will be key.

The adage, “Expect nothing and prepare for everything,” is very real for startups in the region. We have seen some awesome African startups fold this year for various reasons, making survival a critical priority for us. These times call for us to put our heads down, build and deliver. The beauty contests are over!

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2024 Outlook:  The appetite for local solutions and collaborations with corporations and multinationals is increasing, a great indicator that the industry is poised for evolution. We are excited about the future.

2023 was not an easy year for the company, but we remained intact and delivered some great campaigns, brought on new clients and welcomed back old clients. This is because we stayed true to our mission and quality levels. That’s a big learning for the year: continue to focus on the work, and the company will survive in the most testing times.

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2024 Outlook: 2023 was turbulent; I think the first part of 2024 will be too. In some ways, this is a course correction, and in other ways, we’ll all be adjusting to a new normal of slimmed-down budgets, but not a reduction in quality of work.

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Jude Dike, CEO at Get Equity

Never leave anything to chance, and things can always get worse.  A good example is the current exchange rate. Many people speculated N1000 as the point of doom, and not enough people considered it could get worse.

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2024 Outlook: I think the venture downturn is slowly reversing, I think there will be a lot of local involvement more than before. This is because valuations are no longer  “unreasonable,” and more VCs are getting more money. However, I think most of these investments will be in naira.

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Uzoma Dozie, CEO at Sparkle

The real eye-opener in 2023 was how crucial it is for everyone in our financial services space to pull together against cybercrime. We’ve got to team up, share what we know, and keep these fraudsters at bay. That’s how we secure our systems and give…

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our customers a safe space to do their business.

We also need to tighten up our security and stick to the rules we set. Different players in the industry, chasing different goals – be it boosting valuations, increasing transactions, or growing customer bases – have kind of let critical standards slip. So, as we step into 2024, it’s high time we all get on the same page with standards to foster trust and a healthier business environment.

2024 Outlook: 2024’s looking like it’s going to be quite the bumpy ride. We’ll likely see more businesses struggling due to the economic challenges we’re facing. But, those with solid structures and foundations should be able to weather the storm.

Investors are going to get pickier. They’ll look beyond just the size of a business. They’ll be checking out the quality, the systems in place, governance, and resilience against tough times. 

I’m also betting big on AI, particularly generative AI, as a game-changer. Any business that’s not investing in AI is going to miss out. It’s all about being truly digital, not just in the front-end stuff but deep in the backend too. This helps not just in sniffing out fraud, but also in ramping up efficiency and enhancing the customer experience

Big plans and moonshots

2023 highlighted that nothing is more powerful than a group united by a common purpose, leveraging tech to accomplish their goals. If the inputs are there and pressure is applied over time, impact is inevitable. The principle played out at Jetstream when we closed our fundraising round in a tough funding environment at the start of the year.

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2024 Outlook: Our outlook for 2024 is to add long-term capital to the foundation of trust-based cross-border e-commerce we built in 2023 and blow open access to tech-enabled, fully financed cross-border trade across the continent, focusing on verticals that will make or break Africa’s development.

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Seun Alley, CEO at Fez Delivery

One key lesson from 2023 is the importance of adaptability. Navigating uncertainties reinforced the need for agile strategies and resilient business models. At Fez Delivery, we’ve had to set (up) electric vehicles to move cleaner and to save cost, with energy prices soaring.

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2024 Outlook: I anticipate a continued emphasis on digital transformation, with AI-driven innovations playing a pivotal role in reshaping industries and enhancing customer experiences. At Fez, we’re already implementing AI-driven solutions in our everyday operations.

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Perseus Mlambo, Founder & CEO at Union 54 and ChitChat

The biggest takeaway is to be aware of one’s strengths and weaknesses. As the world changes and redraws its hard lines, perseverance will be rewarded, as will building the hard stuff that moves the needle forward, where the promotion of Africa and African interests is concerned.

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2024 Outlook: It’s impossible to build tech away from the government, and so we will see closer collaboration between tech and government. We should start to see an established crop of founders placing bets on policy. We will also start to see governments worry about digital sovereignty and try to be fully involved and, in a way, guarantee against censorship.

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Iyinoluwa Aboyeji, Founding Partner at Future Africa

My biggest lesson this year is that God can be trusted. I made some big moves on pure faith and God came through for me. Beyond that, however, I’m learning that small is beautiful: small teams, fewer companies, and smaller friend groups. I learned I can accomplish way more by keeping the crowd away and keeping things high quality.

I took our fund management company private. For the first time since I started my career in tech, I don’t…

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have any outside investors. I also kept headcount at ~10.

2024 Outlook: I’m looking forward to a few profitable tech companies exiting on the NGX, more tech companies learning to work with the government, some startups selling to large Nigerian corporates,  and at least a few Nigerian startups getting investment or acquisition from large global tech corporates. 

I’m also looking forward to the implementation of the Nigerian Startup Act and the launch of Itana.

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Hannah Subayi Kamuanga, Partner at Launch Africa Ventures

The big lesson for me in 2023 is that inclusivity and diversity of teams, business models, geographies, and collaboration (among tech stakeholders) are key to delivering value and generating returns..

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2024 Outlook: The 2023 funding slowdown forced startups to focus on capital efficiency, actionable paths to profitability and improved unit economics, which will benefit the African tech ecosystem in the long term. In addition, a stronger focus on corporate engagement and governance will be key to ensuring that financial mismanagement is avoided. 

I expect progress in the development and use of alternative deal structuring and sources of capital for start-ups — not only in equity sales and SAFE but the use of convertibles, more CPs, valuations based on unit economics and realised tractions, and also the increased use of blended finance, revenue-sharing models and venture debt.

Be fast. Be flexible

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There is nothing new under the sun. ⁠Being cost-efficient is critical, not just during hard times but especially during good times. You never know when the market will change. Never get complacent. You get sucker punched by…

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the market when you get complacent. Anticipate competition, it makes you sharper and more focused.

2024 Outlook: It will not be an easy year. Businesses, investors, and consumers in Nigeria will adapt to (the) new realities of the Nigerian economy. Inflationary pressures will continue to dominate consumer behaviour. ⁠With the above said, there is a sliver of hope that these reforms in Nigeria (will) produce a more functional economy, leading to greater foreign investment and growth opportunities. 

There’s a small chance the venture market rebounds. But if interest rates drop in the US, pressure may increase to deploy capital. Right now, it’s the investor’s market. I suspect that may persist in 2024.

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Ope Onaboye, CEO at Renda

The biggest lesson I was reminded of in 2023 is the need to be flexible. We had spent about two months putting together our financial model for the year when January 2023 came, and the cash scarcity threw everything off balance. While we were recovering from that, fuel prices increased, the Naira was devalued and all those projections…

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went down the drain.  Innovate fast and try things quickly when you are an early-stage startup. If it doesn’t work, move on very quickly.

2024 Outlook: 2024 will be a very frugal year and entrepreneurs will have to start thinking and building smart because investors are not parting with their money as easily as before. As entrepreneurs, we need to start thinking about profitability and how to build with efficiency. Efficiency is the keyword.

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Seye Bandele, CEO at Pade HCM

The funding crunch got worse and we had to focus on ensuring that we continue to deliver superior value to customers. Being funded means you can operate in a way that prioritises other things over revenue generation and collection, but when you aren’t sure that VC dollars…

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will come, you focus on your growth squarely and ensure you’re doing enough to keep your business alive.

2024 Outlook: Due to the reasons above, in 2024 we’ll see the rise of actual business-minded startups that have fine-tuned things like their unit economics, are focused on providing value for their markets and are doing a decent job at it. As a result, there will be a better inflow of funding into these companies. Also, I expect to see more collaboration among investors, as foreign investors have now learnt to trust local investors more and will work with them to make the right investment decisions in the new year.

Back to the basics

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Tonye Irims, CEO at Wisolar

Obsess over a market: We stayed focused on our industry niche which led us to build deeper relationships with the customers and understand their larger problems. Focus on customer problems: So many founders waste valuable time chasing investors, competitors, and things that don’t matter. Focus on customer problems and solve them.

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Build a great culture: Our engineers worked Saturdays if necessary, with no benefits, only government holidays, and a simple office. But even then, we were rated 4.5 on Glassdoor because we had an amazing culture.

2024 Outlook: Further and larger start-up investments in Africa. More diasporans returning to take advantage of the opportunities available in Africa, especially in the areas of agriculture and medicine.

Be frugal, be true, be transparent, share challenges, accept them, and move forward. The 2020/2021 times are over, there’s no more FOMO in terms of funding startups.

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2024 Outlook: 2024 means back to rationality. Better funding, better founders, better startups, and better businesses.

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Anthony Itaigbe, Izesan!

Listen to your instincts. Follow your intuition. ⁠If there’s no manual, that means you’re onto something new. ⁠Never stop hiring—the best and brightest are always out there waiting for an opportunity. Don’t be afraid to experiment. Don’t repeat mistakes.

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Listen to your customer. Listen to your team. Be like water—adapt so that you can overcome. ⁠Find healthy outlets to vent when things take a turn for the worse.

2024 Outlook: In 2024, the startup ecosystem will delve deeper into market correction with a renewed focus on profitability over growth.

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Oluwaseun Adegoke at TechPR Nigeria

The biggest lesson from 2023 is that integrity is crucial. I think that was a major theme for the ecosystem and a lesson every founder needs to take note of.

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2024 Outlook: Regarding 2024 though, the macroeconomics aren’t looking good; in terms of US interest rates and our local naira devaluation and spiking inflation. So that just means foreign VC money still walking away from Nigeria like Craig David and more startups shutting down.

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Ndabenhle Ntshangase, Founder & CEO at AirStudent

The importance of making decisions quickly in a startup cannot be understated, however, we tend to think that everyone has to agree. One of the business lessons from this year is that sometimes you have to commit to the work even when you disagree with the method.

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One of our partners said, “I’ve made many mistakes, but never the mistake of being deceitful in business. I guess I’ve always understood that people do business with people so I had to make sure people can trust me”. This has truly seeped into our culture at the company.

2024 Outlook: In 2024 we will see more and more corporates opting to use technology to book their travel instead of travel agents. We will also have more first-time overseas travellers.

We recently officially launched our corporate offering, which will give corporate clients access to some of the best travel-tech tools for their needs. We also plan to increase our staff to service our growing business.

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Be present

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Eric Asuma, CEO Kenyan Wallstreet

A critical revelation in 2023 has been the recognition that sole reliance on advertising is insufficient for meaningful expansion. To truly thrive, media companies must embrace innovative business models, a lesson exemplified by the struggles faced by traditional media entities in Kenya that failed to adapt and innovate.

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Moreover, I have seen first-hand the importance of cultivating exceptional talent who possess a deep understanding of the local landscape to scale a new media enterprise in Africa.

2024 Outlook: I foresee a shift where innovative use of AI will become instrumental in enhancing newsrooms, particularly in discerning and interpreting trends, especially within the financial media space. We will be unveiling an exciting initiative in Q1 2024 along these lines.

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Sylvia Brune, CEO at pawaPass

Meaningful offline conversations reveal common ground, fostering understanding and empathy that diminish fear and the perceived need for a “protector” role in various situations.

As someone involved in building online products in the user verification and anti-fraud space, this perspective has shaped how I approach our products and their users.

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Individuals who may appear fraudulent are often just seeking ways to make their lives work through workarounds and hacks. Differentiating between them and actual fraudsters poses a challenge, but one worth tackling.

2024 Outlook: We will crave even more real-life connections. Successful companies will be those creating conditions for these connections to flourish. In the identity space, this will mean enabling genuine human access to platforms and tools that enhance real-life thriving. Achieving this involves effectively combating the rise of identity fraud and addressing the risks associated with AI being used for nefarious purposes.

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Cynthia. E. Chisom, Vice President at Spark Africa

Raising a lot of money doesn’t guarantee that your startup will be successful. Also, the government plays a very important role in ensuring that startup founders are successful, especially in a country such as Nigeria. Governance is key.

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2024 Outlook: Two predictions are that Abuja will be the next interesting place for startups in the ecosystem. I can foresee that we’ll start to see more startups outside Lagos in places like Akwa Ibom, Enugu, and Edo State building momentum.

Welcome to our first quarterly editorial letter.

It has been a hectic quarter for startups. The common themes have been mergers and acquisitions, crypto-based initiatives, the macroeconomic environment funding and the state of web3. How did we leave out artificial intelligence? Most conversations these days have a question or comment on how different the apps we use could look in a few years. 

Beyond these themes, it’s clear that Africa’s tech ecosystem is maturing. In Q3 2023, understanding this maturity guided a lot of our storytelling. When acquisitions and mergers happen, the audience wants to see figures. How much is the transaction value, and what’s the real story behind the acquisition? Those are the questions we ask when we report these stories. In September, Whogohost completed the acquisition of Sendchamp, while Risevest acquired Chaka. We know one deal was in the mid-six figures, although no one knows how much Risevest paid for Chaka. 

Thanks for reading and contributing to TechCabal’s growth in Q3

We may not always get all the answers immediately, but TechCabal is committed to finding them. Our audience is resonating with that commitment. In Q3, you and over 2 million people across Africa and the world read and visited our website, while our newsletter hit 143,487 subscribers. Our Sunday newsletter, Next Wave, has over 45,900 subscribers now while Entering Tech now has 55,856 readers. 

A lot of big stories drove our numbers in Q3, including Sendchamp’s acquisition by WhoGoHost; Float’s ₦5 billion loss; Payday’s plans to sell its business; Jumia’s drive to reassess its business priorities following the loss of a third of its users in one year; and Moniepoint’s entry into retail banking.

Our most-read story for the quarter—25,142 eyes—touched on the grim side of AI. In case you didn’t know, AI is currently being used to “undress” people’s photos in a disturbing trend. Read our story on that here. 

But it’s not all doom and gloom with AI; we covered other perspectives like how AI will create new jobs, attend to us when we go to the hospital, service our food orders, and help companies with their public relations operations. There is a lot to hope for with increased interest in AI.

We also kept tabs on the streaming world this Q3. Have you read our coverage of Canal+’s challenges in its European operations? How about DStv exiting Malawi following a high court ruling stopping it from further increasing the prices of its services?

All of our reporting has been possible because of the founders and operators  who have been gracious with their time and shared their stories with us. TechCabal and the tech ecosystem are on a shared mission to tell the impact stories of tech businesses on the continent. And we do not take the time and effort of everyone who has walked with us on this journey for granted.

TechCabal won some awards!

Last week, TechCabal and TC Insights won trophies in three categories at the StartupSouth Awards. We won for Best New Media Platform (Technology), Best Startup Intelligence Platform (TC Insights) and Best Startup Ecosystem Newsletter (TC Daily). We are really pleased about this and proud of the hard work everyone the TC team have put in to get us here. We thank StartupSouth for the great honour. 

Moonshot, the biggest tech festival is here.

It’s events season in the ecosystem, with many tech conferences happening around this time, including TechCabal’s very own Moonshot Conference! Moonshot is the conference that brings together Africa’s tech ecosystem in person to network, collaborate, share insights and celebrate innovation on the continent. This October, join us in Lagos and meet the founders, business leaders, startups, enterprise companies and more building innovative solutions for huge problems across Africa. Nigeria’s minister of communications, innovation and digital economy, Bosun Tijani, will be in attendance, alongside other eminent speakers: the DG of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi; former Google director for West Africa, Juliet Ehimuan; Flutterwave CEO Olugbenga Agboola; managing director at Xavier Africa, Tavonga Muchuchuti; Lexi Novitske, General Partner, Norrseken22; Voltron Cpital’s Olumide Soyombo, Korty, and many more. Click this link for the  full lineup of speakers. 

And if you’ve not got your tickets, do so now, as October 12 and 13 are almost here! 

Empowering tech innovators and aspiring entrepreneurs

Before we sign off, have you been following our short-video series, My Startup in 60 Seconds and Entering Tech? We created My Startup in 60 Seconds to spotlight founders building the future of Africa tech. Season 1 and 2, which aired in Q1 and Q2 respectively, featured over 24 startup founders from across the continent including Nigeria, Ghana, Morocco, South Africa and more. These innovators  are dedicated to conquering critical challenges in health tech, logistics, payments, agriculture, and beyond. Their dedication and innovative spirits are the driving forces behind a more promising future for Africa and the world. Entering Tech, on the other hand, a spinoff of the popular Entering Tech newsletter series, provides practical guidance and assistance for aspiring tech entrepreneurs. 

Subscribe to our YouTube channel so as not to miss these series!

Reach out to us

Is something interesting happening in your area that might interest us? Email us at team@techcabal.com.

Until next time,

Muyiwa Olowogboyega

Kelechi Njoku

According to the African Development Bank (AfDB), cross-border banking has emerged as a critical feature within Africa’s financial landscape. It not only facilitates transactions across regions for individuals but also plays a pivotal role in expanding markets and nurturing innovation for businesses.

In Africa, Small and Medium Enterprises (SMEs) sell to and depend on imports from suppliers in other countries to meet their local production, sales or reexport goals. Sub-Saharan Africa also, saw diaspora remittances grow by an estimated 5.2% ( $53 billion) in 2022, compared with $24.3 billion in 2018. This significant trade flow between African countries and between Africa’s top trading partners globally present promising opportunities for business payment facilitation. 

However, for African businesses, navigating the cross-border payment landscape has proven to be a costly and complex endeavor. For instance, in 2017, Nigeria’s central bank opened a special facility to provide up to $20,000 per quarter for small and medium businesses who struggled to access the forex they needed to finance imports. Similarly, last year, small-scale importers in Kenya were hit hard by a scarcity of forex that forced banks to impose $1500 to $2000 daily limits. 

Currency exchange expenses, inadequate payment infrastructure, compliance costs, and limited access to financial services are major barriers to seamless payment operations for African businesses. Also, high transaction costs continue to impede progress, rendering cross-border payments expensive and inefficient.

The volatility of exchange rates makes it difficult for businesses to plan ahead and hedge against inflation and this causes losses for many businesses who are reliant on cross broder transactions. More than anything else, it is now important for businesses to pay attention to getting revenue from outside their local environment as a way to gain foreign currency to facilitate foreign transactions for their businesses

“Navigating cross-border payments requires a nuanced understanding of the African user base,” said Lucia Okafor, senior manager of payments & financial services strategy at Deloitte during a recent edition of TechCabal Live that gathered industry leaders to discuss the intricacies of cross-border payments in Africa and shed light on the challenges, opportunities, and future trend. The event was delivered in partnership with AZA Finance.  

She also advised the need for companies to reevaluate the sourcing strategy and pay attention to getting local sources for their supplies.

Elizabeth Rossiello, CEO and founder of B2B fintech company, AZA Finance also emphasized the need for cross-border payment platforms that intimately understand the nuances of the African market. Her insight underscored the complexities and costliness arising from the involvement of multiple intermediaries, bank charges, and the intricacies of currency conversions, which collectively create hurdles for African businesses engaged in cross-border transactions.

International trade expert Dare Fadeji believes that policies targeted at addressing the regulatory fragmentation on the continent are critical in reducing fluctuating exchange rates and streamlining international trade. This will facilitate innovations that seek to eliminate intermediaries and expedite transaction speeds for a smoother cross-border payment landscape.

The private sector plays an indispensable role in shaping effective cross-border payment solutions according to Nana Yaw Owusu Banahene, regional head of Africa partnerships at AZA Finance. He advocated for governments to empower the private sector to spearhead these initiatives, thereby driving progress in the cross-border payment landscape. Drawing from her expertise, Okafor believes that ultimately, collaboration is important in driving financial inclusion in Africa and widening access to cross-border payment services. 

While high transaction costs and regulatory complexities remain hurdles, the future of cross-border payments is one of tremendous growth and opportunity. As the continent’s payments ecosystem evolves, cross-border payments continue to hold the key to economic growth and innovation across Africa. 

This edition of TechCabal Live, ‘How can businesses reduce the cost of making payments across African borders’ was brought to you by TechCabal in partnership with AZA Finance.

Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!

In Q1 2023, Artificial Intelligence took centre stage globally and particularly in Africa, as the sector yielded Africa’s biggest acquisition of all time in a mega deal worth $682 million. However, the second quarter of 2023 took a different turn, according to research findings by TechCabal Insights. Venture funding grew a little higher than the previous quarter with energy startups dislodging fintechs. Several African governments also began to pay attention to regulatory activities that dominate the tech space, with Nigeria and Kenya at the forefront.

In Q2 2023, venture funding increased from US$ 857 million in Q1 to US$916.4 million in Q2, nearly crossing US$1 billion and totalling a  6.9% increase from the last quarter. This was driven by two mega deals: M-Kopa securing $255 million in a debt-and-equity financing round and SunKing’s $130 million securitisation deal in May 2023. 

Although there was a decline in the number of funding deals compared to the last and corresponding quarter, we have seen a trend of quality investments and deals as well as growth from startups in East Africa as Kenya jumped to the top in terms of funding position to secure an impressive $462.4 million, with Nigeria following distantly at $149.3 million. 

“The downsizing of deals is important to building a more mature and structured ecosystem for Africa. Startups have become more margin-conscious and pay attention to the fact that investors now prioritise scalability, unit economics, and capacity,” said Leslie Ossete, co-founder and COO at Mstudio at the launch of The State of Tech Report Q2 2023 on Friday, August 4, 2023.

One of the most noteworthy trends in Q2 2023 was the shift in the venture funding landscape, as fintech startups no longer receive the largest chunk of investment. Instead, energy-focused startups took the lead, securing an impressive $486.9 million to represent 53% of the total funding in the quarter. This implies that while innovation around payment or digital financial services remains attractive on the continent, Africa’s energy needs are beginning to gain investor attention, considering the gap in energy consumption across the continent.

While there has been a general increase in the environmental and climate consciousness globally, we have also seen an increase in regulatory policies which has served as a major driver for investment and innovations in the cleantech and energy sector. For example, Nigeria signed an electricity bill in 2023 that provides a framework for the generation, transmission, and distribution of electricity. The bill also provides incentives for private investors to create a viable market that would drive investment, improve electricity access, and foster economic growth. Like Victoria Oloni, an associate at Templars said: “If a sector is going to experience a boom, it starts with regulatory policies that make it attractive for investment to come into the space.” 

The surge in digital financial services adoption across Africa has brought about an increase in cyber fraud risks. For instance, MTN’s mobile money service sued 18 Nigerian banks after a $53.7 million loss to mobile money fraud. Union54, a Zambian fintech, paused operations due to an attempted $1.2 billion chargeback. We also witnessed other cyber fraud activities with financial institutions like Flutterwave, Heritage Bank, Globus Bank, and even one of  Africa’s biggest streaming platforms- Showmax.

These incidents highlight the pressing need for enhanced cybersecurity to protect user information and financial assets amidst Africa’s expanding digital finance landscape. Emeka Ajene, founder at Afridigest advised: “It is important for startups to start thinking around optimising their products against cyber fraud early rather than later.”

Although the year began with a lot of scepticism about funding in Africa’s startup ecosystem, the performance so far has sharply contrasted it. With each passing quarter, the African tech ecosystem evolves and adapts, continually pushing boundaries and redefining what is possible despite various challenges. By ensuring more stakeholder engagement and collaboration on the implementation of policies, we will begin to see unparalleled growth across Africa’s diverse tech ecosystem.

To get valuable insights into the state of tech in Africa in Q2 2023, download the report here.

Across three publications, Big Cabal Media grew audiences, delivered excellent editorial content and covered the Nigerian elections in real-time. It also delivered Hertitude, an event that drew over 2,200 women to one of the most exciting festivals in the country. In the first half of 2023, Big Cabal saw record numbers across legacy publications and increased resonance and prominence with audiences for its relatively newer publications. 

Per internal communication, Big Cabal grew revenue by 180% year-on-year by the end of H1, significant growth that still did not match its budgetary expectations. Despite its progress, the company still had to deal with global and national economic realities: a funding downturn across the continent and a Nigerian economic slowdown caused by a botched currency redesign and elections. June’s currency devaluation also changed revenue projections for many Nigerian venture-backed startups. 

In a note to outgoing employees, Tomiwa Aladekomo, Big Cabal’s CEO, said, “I’d like to thank you all for your stellar work at Big Cabal. Our work has real impact and value, and I’m proud of the incredible people who make it happen. Today’s decision isn’t pleasant, but those leaving us can take pride in their work and their impact. For those of us who remain, know that we are as committed as ever to building one of the most important media businesses on the continent. That mission continues, and you can be proud to contribute to it.”

According to Big Cabal, everyone affected by today’s cuts will receive their salaries for August and September. An excerpt of internal communication to staff said, “This is a challenging decision in a year that has tested us immeasurably, and we empathize with the talented employees affected by this decision. For those leaving, we appreciate the hours and backbreaking work you’ve put in to move our mission forward.”

One of the most significant effects of the workforce cuts is the downscaling of Citizen, the company’s relatively new publication on governance and politics. “In a different business environment, we intended for Citizen to have 12-18 months to figure out sustained revenue streams,” Big Cabal shared in company-wide communications. As part of efforts to soften the impact of the cuts, some team members will be moved to units with a strategic business focus for H2. Big Cabal will also recommend the outgoing employees to other businesses, writing letters of recommendation and assisting during the transition period. 

Big Cabal will renew its focus on becoming a more efficient and self-sustaining business by 2024. It will double down on TechCabal and TechCabal insights while building a stronger commercial base for Zikoko.

Patent and proprietary medicine vendors (PPMVs) are known as individuals without formal pharmacy training who sell orthodox pharmaceutical products on a retail basis for profit. They are often the primary healthcare providers for a significant portion of the Nigerian population, especially in rural areas where access to formal healthcare facilities is limited. These vendors offer various services, including treatment for malaria and diarrhea and family planning services.

There are a number of challenges facing PPMVs. However, given the informal nature of their business, limited access to credit remains one of the most pressing issues. Financial institutions often hesitate to extend credit to PPMVs due to perceived risks, lack of collateral, and limited credit histories, hindering their ability to expand their businesses and invest in essential resources.

Charity Ukwo Abah, deputy director of the enterprise development and promotion department at Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), emphasized the significance of access to sustainable financing schemes for PPMVs to expand their businesses and offer a wider range of quality medications. 

“Empowering PPMVs with access to credit financing is essential for their growth and ability to provide improved healthcare services to the communities they serve. This will lead to better healthcare outcomes for Nigerians, especially those in underserved areas,“ Mrs Abah said during a TechCabal Live event held in partnership with Solina Group that discussed the role of technology in enhancing access to credit for PPMVs. The event had in attendance key stakeholders in the health sector interested in strengthening health inclusion in Nigeria.

“PPMVs play a critical role in delivering healthcare services, but their effectiveness is hampered by challenges such as counterfeit medications and lack of clear regulatory frameworks, Emeka Okafor, project director at IntregratE, said. “By working together with regulatory bodies and pharmaceutical companies, we can strengthen PPMVs’ capabilities and enhance access to quality healthcare for all citizens,” he added. He also highlighted the need for improved regulation and collaborations with pharmaceutical companies to build a more robust and inclusive healthcare system.

According to industry leaders, it is crucial for financial institutions to integrate technology in providing credit to PPMVs.  Technology can be used to build a digital credit scoring system specifically for PPMVs. This will provide access to relevant data such as sales performance, customer feedback, and inventory which will help financial institutions better assess the creditworthiness of these vendors.

This data-driven approach will enable lenders to make informed decisions, reducing perceived risks and facilitating access to much-needed financing. This, in turn, will empower PPMVs to expand their businesses and improve healthcare services nationwide.

Few political figures in Nigeria have demonstrated the same aptitude for identifying and nurturing capable technocrats as President Asiwaju Bola Ahmed Tinubu. His time as the Governor of Lagos State attests to his strategic leadership, defined by a cabinet filled with proficient technocrats that brought about transformative changes. However, in his current presidential tenure, the choices he has made for his cabinet thus far have caused considerable concern among political analysts and citizens alike. This worry is not unfounded given the severe economic downturn Nigeria is grappling with.

A Critical Evaluation of the Current Cabinet Selection

At a juncture when Nigeria’s economic stability hangs in the balance, the necessity for a cabinet that breeds confidence and showcases a willingness to tackle prevailing economic challenges is imperative. Regrettably, the president’s selections so far for key cabinet positions have not fulfilled these expectations. 

The crux of the concern rests in the perceived deficiency of the kind of innovative, seasoned, and battle-tested technocrats capable of addressing the multifaceted economic issues Nigeria is currently facing. From soaring inflation rates and high unemployment to unsettling insecurity issues, the country requires leaders who can engineer strategic policies and foster an environment conducive for economic recovery and growth. The current cabinet, as it stands, lacks the necessary depth and breadth in expertise and experience to mount a robust response to these challenges.

President Tinubu’s Cabinet Appointments: An Opportunity for Course Correction

Despite the disappointment stemming from the initial cabinet picks, there lies a silver lining. As President Tinubu rounds up his cabinet selection, the upcoming appointments offer a window of opportunity to amend the course. These final selections could provide a chance to introduce more competent technocrats into the cabinet and compensate for the initial misses.

A buoyant and sustainable economy requires stewardship from leaders armed with proven track records in their respective fields. To steer Nigeria towards a prosperous future, technocrats with innovative ideas are needed. They can devise strategies to stimulate economic growth, foster job creation, and magnetize foreign investments – essential elements in navigating the current economic turbulence.

The Way Forward: What Should We Expect?

As President Tinubu gears up to announce his final cabinet picks, there is a palpable hope that he takes into account the concerns raised and the precarious economic state of the nation. The weight of these decisions is enormous, for they will determine the course Nigeria takes in the coming years.

It is hoped that the President will heed the call to involve experienced technocrats who can inspire confidence, both domestically and internationally. Their innovative perspectives and knowledge could play an instrumental role in crafting strategic policies to tackle Nigeria’s economic challenges head-on.

Conclusion: A Make-or-Break Moment

Throughout his political journey, President Asiwaju Bola Ahmed Tinubu has shown an impressive ability to pick and empower capable technocrats. However, his recent cabinet picks have raised questions about his long-standing reputation in this regard. Now, with Nigeria’s economic future at stake and only a few cabinet slots remaining, the President faces a make-or-break moment. 

The anticipation is high, and the nation watches with bated breath, hoping that the forthcoming selections will rectify the earlier missteps and create a cabinet capable of guiding Nigeria towards a stable and prosperous economic future. This is not just about maintaining a legacy, but more importantly, about securing the welfare and future of millions of Nigerians.

Through their lawyers, the Nigerian health tech startup, Medsaf, on Friday, July 7, 2023, sent TechCabal a “cease and desist” letter, requesting that our story on Medsaf, published earlier that same day, be taken down. Our story contains allegations that Medsaf employees were owed salaries for months and another allegation of financial misappropriation. We stand by our reporting and have found no instances of material errors, misrepresentations, falsehoods, or malice in our article. We have responded in detail below, clarifying some of the claims made by Medsaf lawyers via email and some claims made by the company’s CEO on LinkedIn. 

TechCabal’s story on Medsaf alleges that several of the company’s employees were owed salaries from December 2022 until they were laid off in March 2023. We established and corroborated the allegations by speaking to several former employees at Medsaf. TechCabal was also privy to internal correspondence where company officials clearly stated that outstanding salaries for the same period would eventually be paid. Several former employees said that they had still not been paid at the time of our report. TechCabal has seen emails between other employees and the company’s management where employees asked about their outstanding salaries. We’ve also seen correspondence that asked questions about Medsaf’s finances, leading us to publish the allegation by a senior executive of financial misappropriation. 

TechCabal contacted Medsaf via email to establish a right of response. A right of response is a time-honoured ethical guardrail that mandates that all sides are heard and their views considered before an article is published. While we initially asked that a response be shared in three hours, we quickly remedied that, affirming to Medsaf that we would not publish the story until they shared their perspective and giving them more time to respond. Medsaf emailed TechCabal, sending four emails addressing some of the issues and providing rebuttals. Those responses are contained in our story. 

Following our email exchange, TechCabal requested a phone call with the company to allow a fuller response to allegations that had not been addressed in the email exchange. On that call, Medsaf’s CEO did not address the substance of the allegations and was instead verbally abusive towards TechCabal’s reporter, swearing repeatedly, threatening legal action and explaining that she only does ‘this work’ for people like the reporter.

As a result, we sent another email to Medsaf, outlining the allegations, asking for a proper response or rebuttal and affirming that we were willing to wait for a proper response before publishing. Medsaf declined and said any further responses would come from their lawyers. 24 hours after the beginning of our official engagement with Medsaf, our article was published. With all weighty stories, we will always give our subjects time to respond and insist on sharing their perspective. However, when subjects choose not to respond, we will publish the facts as we know them.

It is important to note that Medsaf’s response is far too frequently the approach taken by business leaders when faced with possibly negative stories. Rather than engaging the substance of the allegations, they make the media the story. Medsaf had the opportunity to engage in good faith to respond to weighty allegations but chose invective, threats, spurious legal action and finally, an appeal to public sentiment that suggests that they are the victim here, not their unpaid employees or investors that might want clarity on claims of financial impropriety. 

We are frequently asked why we publish these stories of struggling companies, layoffs, scandals and financial improprieties, especially in a young ecosystem still primarily funded by foreign capital. Are we not shooting ourselves in the foot? In response, we note that TechCabal has been one of the leading publications telling the African tech story in all its glory for over a decade. Our coverage has showcased the best of African tech to the world, made heroes of founders and builders on the continent, become a critical reference point for investors globally and ensured that there is not any doubt that there is a serious and worthwhile startup and tech industry in Africa that is worth investing in. We’re optimistic about the impact of technology and technology companies in Africa and are cheerleaders for the growth of what we believe is a critical economic engine for the continent.

That being said, we recognize the importance of accountability in building a strong ecosystem. That accountability extends to employees, investors, customers and the broad public. Investors want to know when their funds are misappropriated or a business model has gone awry; customers want to know when a company is cutting corners on safety or the security of their information, employees want to be protected from mistreatment, new founders want to know what errors those who came before them made and the general public wants to understand the impact of these businesses and technologies that change their lives so rapidly. Without the accountability the press provides, the worst impulses within the ecosystem will grow unchecked; bad news will stay hidden for longer, and all stakeholders will find the industry harder to trust. We don’t tell these stories because they are salacious. We tell them because they are important. 

We stand by our story, our methods and restate our commitment to fairness, balance and honesty in our journalism. We also restate that we will continue to honour the ethical demand of providing all subjects of our stories a right to respond and will always engage our subjects, however long it takes until all parties are satisfied that their views and perspectives have been heard.