Fintech

Ethiopia’s biggest bank, the Commercial Bank of Ethiopia (CBE), has made significant strides in recent years. With over 46 million account holders and 82 years of experience, the CBE oversees the country’s financial sector. However, even giants stumble. 

A glitch in the CBE system allowed for free cash withdrawals at ATMs and electronic transfers, losing up to $14 million in the process.

For thousands of Ethiopians, especially university students, March 16 was unlike any other day. A technical problem during routine “maintenance and inspection activities” led to the glitch. News spread quickly; over 15,000 people took advantage of the glitch, with withdrawals ranging from 9 cents to over $5,000.

Currently, the CBE has recovered 80%— about $11 million of the money lost in its glitch. While nearly 15,000 Ethiopians have willingly returned the extra funds they withdrew, the bank has reportedly released the names and account details of the remaining 567 individuals in an attempt to shame them into giving it back. 

According to Abe Sano, the president of the CBE, the outstanding amount is insignificant to the bank, but not collecting it sends the wrong message.

Zoom out: 490,000 transactions were reportedly conducted before the CBE detected the glitch. News of the glitch initially spread particularly amongst university students, prompting universities nationwide to urge their students to return any extra funds they received.

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Banking

In a bid to strengthen Uganda’s banking system and make it more resilient to external shocks, the Ugandan government implemented stricter capital requirements for financial institutions in July 2023.

The Ugandan government, through its finance ministry, implemented new regulations that require commercial banks to hold a minimum of $38.6 million in capital reserves. This is a 506% increase from the previous requirement of $6.4 million. Banks have until June 30, 2024, to comply with the new rules.

As a result, some banks have downgraded operations. Guaranty Trust Bank Uganda Ltd, a subsidiary of Nigeria’s Guaranty Trust Bank, applied to be downgraded from a commercial bank to a credit institution following anticipated failure to meet the new capital buffer requirements.

Uganda’s apex bank granted the request and demoted Guaranty Trust Bank (GTBank) from a Tier I commercial bank to a Tier II credit institution which has a minimum capital requirement of $275,802. This change also affects Kenya’s ABC Capital Bank and Opportunity Bank. 

As a result of the downgrade, these banks are restricted to accepting customer deposits and maintaining savings accounts. However, they are no longer permitted to open current accounts for customers or engage in foreign currency trading.

Streaming

Since 2020, French broadcasting company, Canal+ has increased its stake in MultiChoice, Africa’s pay-TV giant from 20.1% to 35.01% and made an offer in February 2023, to buy Multichoice’s remaining shares for R105 per share. The offer was deemed too low by Multichoice and was rejected.

Earlier this month, Canal+ increased its offer to R125 per share—a 20% increase from the initial offer of R105—a week after a regulatory panel mandated the French broadcaster to make an offer to MultiChoice’s ordinary shareholders and extended the offer deadline to April 8, 2024.

Although both companies agreed to cooperate following the offer increase, the bid for MultiChoice just got a whole lot more interesting.

Why? Patrice Motsepe, president of the Confederation of African Football and South Africa’s wealthiest Black man, reportedly worth $2.4 billion, is entering talks to join Canal+’s bid. According to Bloomberg, the discussions are still at an early stage and there is no guarantee that an agreement will be reached.

Motsepe, who founded Ubuntu-Botho Investments and African Rainbow Capital (ARC), also holds investments in mobile network operator, Rain and neobank, TymeBank.

Why is this important? Canal+ might only be able to hold a maximum of 20% of voting rights, a major hurdle due to South African regulations that limit foreign ownership of broadcasters to 20%. Motsepe’s involvement in the deal could ensure MultiChoice remains a South African entity, meeting the local ownership threshold required by authorities.

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Social Media

In 2021, ByteDance, makers of TikTok brought the fight to WhatsApp and Telegram on the continent through its messaging platform: Let’sChat. Launched in March 2021, LetsChat allowed users similar capabilities to other messaging platforms: text, voice call, and video call. 

While experts gave the budding messaging platform little or no chance of displacing established rivals like WhatsApp on the continent, Let’sChat forged on, amassing over 7 million users in the process with a bulk of them from Nigeria and others from Mali, Angola, and Côte d’Ivoire.

To set itself apart from the market, Let’sChat heavily advertised itself as a data-saving platform, offering free video and voice calls to its users. The feature was a great incentive for Nigerians where internet subscription prices are among the most expensive in the world. Let’s Chat also engaged major Nigerian influencers to board people onto the platform. 

Unfortunately, it wasn’t enough. While the app had gathered about 440,000 monthly average users (500 times fewer than WhatsApp’s), downloads fell after it struggled to keep users glued after its dramatised launch.

ByteDance seems to have given up the chase on WhatsApp and is now pulling the plug on LetsChat to “focus on other priorities”. 

The news: Per reporting from Rest of World, ByteDance has shut down LetsChat. According to a note on LetsChat website, the platform was shutdown on March 23. Per the website statement, LetsChat’s mobile app was removed from various app stores on February 26. 

The website has announced that “all reward tasks will stop.” However, “completed tasks will be distributed in the form of credit” to users’ wallets, urging them to keep an eye on their balance. 

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Telecom

Telecom Egypt isn’t holding back!

Recently, the mobile operator has been making huge power plays. In January, the telecom was Egypt’s first mobile operator to obtain a 5G licence, acquiring a 15-year, $150 million licence.

In February 2024, it partnered with 4iG, a Hungarian IT solutions provider, to build an express subsea cable that’ll connect Albania to Egypt. Upon completion, the subsea cable is expected to connect Africa and Asia to Europe through Egypt, the Mediterranean, and Albania.

The news: The telecom is buddying up with Tejas Networks, an Indian broadband, and data networking products company, to create job opportunities for Egyptians through telecom and research skill development. Tejas Network will also set up technical support services in Egypt as part of the collaboration arrangement to help clients in Egypt and throughout the larger Africa and Middle East area. 

Tejas Network’s experience in implementing projects like the Nigerian Rural Broadband project and India’s National Knowledge Network project—estimated to have impacted India’s ~550 million young population—positions it as a top trainer for Egyypt’s learners. 

Crypto Tracker

Source:

Coin Name	Current Value	Day	Month
Bitcoin	$69,320	– 1.15%	+ 21.77%
Ether	$3,512	– 2.26%	+ 10.74%
Tether USDt	$0.09997	– 0.03%	– 0.09%
BNB	$574.23	– 0.79%	+ 43.59%

* Data as of 10:42 PM WAT, March 27, 2024.

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Opportunities

• Ride-hailing platform, Bolt has launched an Accelerator Programme for its drivers and riders in Kenya. The program will see the company invest €20,000 (about Ksh2.92 million) in seed funds to support business plans developed by Bolt drivers and couriers or their family members that link to sustainable transport. Apply by April 4.
• The Corporate Social Responsibility arm of MTN Nigeria, MTN Foundation has opened applications for phase two of its “Yellopreneur” Initiative, through which it intends to offer 150 female entrepreneurs with ₦3 million ($1,900) each as loans to boost their businesses. Apply by March 30.
• Applications are open for the Access Bank Youthrive Program for Nigerian MSMEs. The program is a collaboration between the bank and the Vice President’s office, dedicated to empowering individuals and MSMEs. With a focus on capacity development, financial empowerment, and business exchange, the program aims to impact 4 million youths over the next four years. Apply here.
• The 2024 African Business Heroes Competition is open for application. It aims to identify, support, and inspire the next generation of African entrepreneurs who are making an impact in their local communities, working to solve the most pressing problems, and building a more sustainable and inclusive economy for the future. Finalists get grant funds of up to $300,000, global recognition and exposure and targeted and practical training programs. Apply by May 19.

Here’s what you should be looking at

• Benjamin Oyemonlan is creating a protean payment platform at Platnova
• Access Holdings’ Hydrogen posts first profit in two years
• Kenya Airways cuts down losses, records first operating profit in years
• Starlink terminals are falling into the wrong hands
• African B2B e-commerce giant Wasoko marked down to $260M after VC halves stake

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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Crypto

Weeks after facing regulatory scrutiny in Nigeria marked by website bans, executive detentions, accusations of illegal activity, and an attempt to mend fences with Nigerian authorities, Binance has found itself in more trouble.

The crypto exchange and its two detained executives—Tigran Gambaryan and Nadeem Anjarwalla—are facing tax evasion charges in Nigeria. These charges allege failure to register with tax authorities, non-payment of taxes, and potentially aiding users in tax evasion.

In a dramatic twist, one of the company’s detained executives, Anjarwalla, managed to abscond from Nigerian custody. 

The office of Nigeria’s National Security Adviser (NSA) confirmed that Anjarwalla, Binance’s Africa regional manager, reportedly escaped during a religious observance and allegedly boarded a Middle Eastern airliner using a smuggled passport. Following Anjarwalla’s escape from custody, Nigerian authorities have arrested the personnel responsible for his custody. Security agencies are also working with Interpol to place Anjarwalla on a watchlist and apprehend him.

To address a potential website block by the Nigerian government, Anjarwalla and Gambaryan travelled to Nigeria in February 2024. Upon arrival, they were detained as part of a crackdown on foreign exchange speculation. A condition for their release was for Binance to provide the info of Nigeria’s top 100 crypto users. 

Binance, which noted that it would comply with authorities, also claimed that it has responded to over 626 information requests—since 2020—that have assisted the government’s investigations into financial crimes such as scams, fraud, and money laundering. 

An unending scrutiny: Last week, TechCabal reported that Nigeria’s Central Bank conducted a 3-day analysis on peer-to-peer trading on Binance, between February 19 to February 21, confirming suspicions that some traders manipulated prices to benefit from the resulting arbitrage opportunity. A large number of Nigerian retail traders were placing significant buy orders for USDT, but ultimately not completing the purchases.

Authorities believe these fake buy orders artificially inflated the demand for USDT. This, in turn, is suspected to have contributed to the rapid devaluation of the Nigerian Naira against the US Dollar.

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Fintech

MTN is seeking a new round of investments in its fintech arm. 

CEO Ralph Mupita told investors on a call that MTN was seeking a second round of minority investment in the fintech. The telecom is looking to raise about R35 to R39 billion (approximately $1.8 billion) to boost the business whose transaction volumes grew by a ~32% last year

MTN’s mobile money arm has 72.5 million active users of its mobile money services, driven mostly by the continent’s young savvy tech population. 

Two African exits: The company’s 2023 financials also showed a complete exit from Guinea-Bissau and Guinea-Conakry. 

In Q3 2023, Mupita had told investors that the telecom might exit the two countries, and Liberia, as the markets represent some of its smallest across West and Central Africa with all three contributing just 1.2% to MTN’s revenue in 2022. Across both Guineas, the telecom controls a secondary chunk of the market share, about 30%, beaten out by Orange Mobile which controls over 60% of the market share in both countries. 

A higher calling: This move will allow MTN to focus on Ghana, Cameroon, and Cote d’Ivoire, stronger markets in the West and Central Africa region which collectively contribute 18.6% to the group’s revenue, over other West and Central African (WECA) countries that contribute 7.3% to the firm.

Fintech

Two weeks after Aigboje Imoukhuede returned as CEO of Access Holding, the company revealed its intentions to procure Kenya’s National Bank. 

In its relentless pursuit of regional expansion, Access Holdings has announced a new partnership with Safaricom, Coronation Group, and M-Pesa Africa, to dominate the remittance market in East and West Africa.

Forging regional dominance: To ease money transfers across Africa, the first phase of the partnership will target remittance powerhouses: Nigeria, Kenya, Ghana, and Tanzania. It combines Access Holdings’ massive reach of over 60 million customers, Coronation Group’s tech muscle, and M-Pesa’s dominance in Kenya’s mobile money—96.5% share—to create a smoother remittance experience.

Regulatory approval from Kenyan authorities is pending before the collaboration can take full effect.

Zoom out: The remittance market in Africa is experiencing significant growth, with Nigeria and Kenya ranking as the first and third-largest recipients of diaspora remittances in sub-Saharan Africa, according to the World Bank. In 2023 alone, Nigeria received 38% of the total $58 billion remittance inflow to the region.

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Economy

Nigeria is among the global hotspots for money laundering and terrorism financing. Last year, the Financial Action Task Force (FATF), the global watchdog for money laundering and terrorist financing groups, placed Nigeria on its grey list. 

A grey list? Countries in the FATF’s grey list are countries that have weak controls on financial crime, where it is easy to launder money and finance terrorism. The FATF closely monitors these countries and works with them to improve the weaknesses of their laws. Last year, the FATF added Nigeria, Turkey, the United Arab Emirates, South Sudan, and Haiti to its grey list.

While the grey list is a marker of loopholes in financial crime laws, over 73% of countries marked in the list have been removed upon improvement of their laws. Africa’s largest economy also seeks to redeem itself from the list.

The news:  Nigeria’s financial intelligence unit (NFIU) and its Economic and Financial Crimes Commission (EFCC) unit are buddying up to provide new strategies that will help get the country out of the FATF’s grey list. 

The FATF gave Nigeria a 19-item list of weaknesses to resolve in its financial crime regulation before May 2025, or face the risk of being blacklisted to a “black list”.

The country in recent times has been tightening its Anti-Money laundering policies. Earlier this month, Nigeria’s apex bank released new anti-laundering and terrorism financing regulations, revoking licenses of more than 4,000 Bureau De Change operators. The CBN also implemented a fraud flagging scheme for point-of-sale (POS) terminals across the country.

Spin up a sales force with dozens – even hundreds – of Virtual Terminal accounts in seconds, without the headache of managing physical hardware. Learn more → 

Crypto Tracker

Source:

Coin Name	Current Value	Day	Month
Bitcoin	$70,608	+ 4.82%	+ 37.01%
Ether	$3,632	+ 4.78%	+ 17.01%
Book of Meme	$0.014	+ 4.26%	+ 1439.46%
Solana	$192.41	+ 4.23%	+ 86.82%

* Data as of 11:35 PM WAT, March 24, 2024.

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

Opportunities

• Ride-hailing platform, Bolt has launched an Accelerator Programme for its drivers and riders in Kenya. The program will see the company invest €20,000 (about Ksh2.92 million) in seed funds to support business plans developed by Bolt drivers and couriers or their family members that link to sustainable transport. Apply by April 4.
• The Corporate Social Responsibility arm of MTN Nigeria, MTN Foundation has opened applications for phase two of its “Yellopreneur” Initiative, through which it intends to offer 150 female entrepreneurs with ₦3 million ($1,900) each as loans to boost their businesses. Apply by March 30.
• Applications are open for the Access Bank Youthrive Program for Nigerian MSMEs. The program is a collaboration between the bank and the Vice President’s office, dedicated to empowering individuals and MSMEs. With a focus on capacity development, financial empowerment, and business exchange, the program aims to impact 4 million youths over the next four years. Apply here.
• The 2024 African Business Heroes Competition is open for application. It aims to identify, support, and inspire the next generation of African entrepreneurs who are making an impact in their local communities, working to solve the most pressing problems, and building a more sustainable and inclusive economy for the future. Finalists get grant funds of up to $300,000, global recognition and exposure and targeted and practical training programs. Apply by May 19.

Here’s what you should be looking at

• Next Wave: Showmax is promising, but it needs to fix a few technical basics
• SWIFT to launch platform to connect central bank digital currencies
• Florida has approved a bill banning access to social media for kids

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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Funding

Moove is on a fundraising spree.

Last month, whispers of a potential $100 million equity investment in Moove from Uber made it into the media. The report by Bloomberg comes after the vehicle financing company raised about $10 million to expand into new Indian markets.

Yesterday, the speculation came to a head as Uber confirmed its investment in Moove.

The news: Moove has raised $100 million in a Series B round led by Uber, according to reporting from TechCrunch. The new funding round brings Moove’s total fund raised to date to about $460 million—$250 million in equity and $210 million in debt.

Mubadala Investment Company, a sovereign wealth fund that also invested in Moove’s Series A round, also participated in the Series B round. Other investors in the round include The Latest Ventures, AfricInvest, Palm Drive Capital, Triatlum Advisors, and Future Africa. Moove, which operates in six countries, will use the new funding to expand to 16 more markets by the end of 2025.

Why the Uber Moove? Uber’s investment in Moove might be a plot to secure a reliable stream of drivers for its ride-hailing platform. Ladi Delano, Moove’s CEO, thinks of the investment as a validation of the car financing startup’s business model. 

Moove, which operates in six countries, says it will use the new funding to expand to 16 more markets by the end of 2025.

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Fintech

Brass, a Nigerian business banking startup, had its customers face delayed withdrawals starting in October 2023, which caused frustration and prompted questions about its financial health.

In early March, Brass attributed the withdrawal delays to an increase in its number of customers and the challenging funding environment for fintech startups—having only raised $2 million in 2021. 

In mid-2023, the company lost a key source of funding when a major liquidity partner pulled out. This could be another factor contributing to the delays.

The startup explored various solutions. On March 4th, for example, Akindolu announced the layoff of an undisclosed number of employees, aiming to weather the storm until they can be reintegrated. According to sources, Brass also allegedly approached Flutterwave for a potential acquisition, but the deal did not succeed. The startup also sought capital injections from larger startups like Moniepoint but was unsuccessful.

Helping hands save Brass: After navigating a rocky few months, Brass has received a lifeline in the form of a new funding round. Four sources familiar with the situation revealed that the funding, comprising both debt and equity, was concluded last week, but the precise amount remains undisclosed. Notably, several Nigerian fintech leaders collaborated to support Brass over the last few weeks.

With the new funding secured, Brass claims to have resolved the withdrawal issues, and customer reports confirm successful transactions. Whether this financial injection marks a complete turnaround or just a reprieve remains to be seen.

Telecom

Despite recent successes like achieving significant revenue and operating income—35% and 32%, respectively, as per its latest financial report— Vodacom, a South African telecoms giant, is also grappling with several challenges.

One notable challenge is its high-profile legal battle with a former employee regarding compensation for the popular “Please Call Me” service, which could potentially cost the company 10% of its market capitalisation—R20 billion (~$1 billion). Now, the company plans to trim its South African workforce.

Layoffs: Vodacom has announced plans to cut 80 jobs across various departments to ensure “sustainable operations and maintain financial resilience.” In essence, to cut costs. The telecom company justifies the job cuts as a necessary step in its transition from a traditional telecom company to a leading technology player. A company spokesperson emphasised their commitment to “ensuring business operations are fit for purpose.”

Vodacom, which employs roughly 5,400 people, has seen its stock price dip 2% following the news.

Zoom out: Now branding itself as an African-focused connectivity, digital and financial services firm, Vodacom Group Limited has a presence in seven African countries including Tanzania, the Democratic Republic of the Congo, Mozambique, Lesotho, Kenya, Ethiopia and Egypt.

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Social media

A year ago, TikTok moved beyond its signature short video format to allow longer videos. The play was to allow creators on the platform to make more money. TikTok ran the invite-only programme in beta, requiring creators to videos exceeding one minute to qualify for monetization.

TikTok has now officially launched the feature and renamed it the Creators Reward Programme. 

How do I qualify? To qualify for the Creator Rewards Programme, creators must be at least 18 years old, have at least 10,000 followers with a minimum of 100,000 views in the last 30 days, and have a personal account in good standing where the programme is available.

TikTok says it will reward creators based on four core metrics: originality, play duration, search value, and audience engagement. Since its debut last year, TikTok claims some creators have maxed out their earnings, pulling in $14,000 per effect and $50,000 monthly. TikTok also claims creators’ earnings have increased by 250% in the past six with a double increase in the number of creators earning $50,000 a month. 

Are African creators earning? While TikTok rewards is present in about 53 countries globally, only two African countries, South Africa and Morrocco, benefit from the programme, raising questions about potential benefits for other African creators. Social media platforms have in recent times paid meagre amounts for African creators. 

For instance, YouTube creators in Nigeria do not average as much earnings as their European counterparts. YouTube often cites concerns about low subscription rates across the continent, where users are largely fragmented and unable to afford paid subscriptions.

Spin up a sales force with dozens – even hundreds – of Virtual Terminal accounts in seconds, without the headache of managing physical hardware. Learn more → 

Crypto Tracker

Source:

Coin Name	Current Value	Day	Month
Bitcoin	$62,843	– 3.69%	+ 22.31%
Ether	$3,252	– 4.52%	+ 11.48%
Book of Meme	$0.012	+ 35.30%	+ 1291.84%
Solana	$176.26	– 3.67%	+ 57.91%

* Data as of 4:35 AM WAT, March 20, 2024.

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

Opportunities

• 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. 
• The Corporate Social Responsibility arm of MTN Nigeria, MTN Foundation has opened applications for phase two of its “Yellopreneur” initiative, through which it intends to offer 150 female entrepreneurs with ₦3 million ($1,900) each as loans to boost their businesses. Apply by March 30. 
• Applications are open for the Access Bank Youthrive Program for Nigerian MSMEs. The program is a collaboration between the bank and the Vice President’s office, dedicated to empowering individuals and MSMEs. With a focus on capacity development, financial empowerment, and business exchange, the program aims to impact 4 million youths over the next four years. Apply here.

Here’s what you should be looking at

• Binance crackdown based on analysis of P2P trading in February
• OurPass will acquire MFB licence to offer more banking services to customers
• The Next Wave: The future of fintech regulations
• SEC proposes ₦1 billion capital requirement for virtual asset companies

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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Quick Fire

Koffi Kelvin is a QA Engineer at GitHub and an Andela technologist. He is passionate about learning and recently graduated from an 11-month leadership course. Koffi is an Andela community champion, supporting and mentoring other community members across the globe, as well as organizing region-wide events for Andela. Outside of tech, Koffi is interested in music, art, and African culture.

• Explain your job to a five-year-old

Imagine you built the world’s most incredible treehouse ever! It has slides, secret tunnels, and a throne made from your softest teddy bear. But before you invite all your friends over, wouldn’t you want to ensure it’s perfect?

That’s where a QA engineer comes in, like the ultimate fort inspector with a magnifying glass! We’re the ones who crawl through the tunnels, bounce on the pillows, and push all the buttons (carefully, of course!) to see if anything is wonky or doesn’t work quite right.

We might find a slide that topples over too easily or a tunnel too small for even the tiniest teddy bear. We’ll then tell the treehouse builders (the programmers) about these funny mishaps so they can fix them and make the treehouse even more epic!

• Can you share a memorable experience where your attention to detail in QA uncovered a critical issue in a project?

Off the top of my head, I discovered a critical OS issue when I was at Hewlett-Packard. I was analysing data, and it revealed a bug; I would upload a particular file to an RGB keyboard app, which then caused the entire operating system to crash. This was precarious because, of course, apps require operating systems to run. We were building the operating system alongside the required apps; one needed the other to perform efficiently. It was a close shave!

• Your background also showcases a transition from hands-on QA engineering to customer support. What sparked this shift in focus, and what excites you most about the support role?

QA is a very customer-centric role where, in some instances, during user acceptance testing (UAT), one works with the actual application users to address any issues they might have with the product, making customer support a function within QA. Hence, the transition was as seamless as running from walking.

• What skills would you say have been critical to your career growth and trajectory?

Curiosity and tenacity. I remain curious and interested in all functions within and around my work. I’m constantly researching, reading, and learning. This exposes me to as many recent and emerging technologies as possible, which helps keep me sharp and up-to-date. I tend to seek out content from some notable thought leaders within QA like James Bach, who is christened “The father of Agile testing” through his blog and a few others like.

I gravitate towards the daunting and challenging tasks many people avoid, which has ensured I’ve learned the most within the team. I welcome a challenge, as it makes me learn the most or fail spectacularly. And when you fail, you learn; you never make the same mistake twice. 

• You’ve been a digital business mentor for two years now. What would you say is the most rewarding thing about mentoring?

At this point in my career, I would love to give back to the Andela community as much as possible because I realise how privileged I have been in my career journey. This is why I am drawn to mentoring and supporting other technologists. The Andela community is a network of global technologists, and I regularly speak to people worldwide. The most rewarding part is helping others be successful in specific fields using tools that improve the quality, efficiency, and even the quantity of their output.

I guide new members through the Andela talent community landscape, offering support and advice on everything from how to navigate the job engagement process, to questions about tax and, of course, technology and skills guidance.

• What are some of your hobbies or passions that fuel your creativity and energy outside of work?

I always make time for physical activity, regularly playing at the local rugby club and swimming. Recently, I’ve embraced farming, starting with building two beehives, planting some fruit trees (mango and apple), and growing hot chilies. I love being outdoors as much as possible.

• Finally, what lessons have you learned from your experiences in QA that have had the most significant impact on your professional growth and development?

Developing my teamwork and collaboration skills during our day-to-day QA operations has impacted my leadership. Most recently, I took an 11-month leadership development program led by renowned scholars including Dr Phidel Baraza (Ph.D.) and Professor Emmanuel Bellon, where I was recognized as one of the course’s top performers. When I first began leadership training, I was taught to lead from the front and demonstrate/explain how my team should perform. But working in QA, I’ve learned how to lead from behind when needed, encouraging and trusting my team to have autonomy over their roles. 

Launch your tech career with paid mentorship from fintech industry leaders and potential full-time employment. Apply now!

Telecoms

If you experienced bad internet service yesterday, we are here to let you know that it’s not the fault of your network provider, it might just be a case of the Red Sea parting—again. 

The news: Yesterday’s internet disruptions were due to damaged subsea cables of MainOne—a major internet provider for most Nigerian banks and internet providers— in Ghana and Seacom, South Africa’s internet connectivity provider. 

The cuts affected several mobile operators and internet service providers across eight African countries. Per NetBlocks, an internet watchdog, Ivory Coast, Liberia, and Benin were the most affected, while Ghana, Nigeria, and Cameroon were mildly impacted. 

The disruption also affected several Nigerian banks with users losing access to their banking apps and being unable to use any USSD service. Similarly, In South Africa, network providers, MTN Group and Vodacom Group Ltd had connectivity issues as a result of the disruption. Also, Microsoft cloud services and its Microsoft 365 applications were hampered by the internet cuts.

Not a first: The latest internet disruptions come less than month after after three telecommunications cables were severed in the Red Sea. This follows similar damage last year to the West African Cable System and the South Atlantic 3 cable, near the Congo River mouth, caused by an undersea landslide.

Zoom out: While the cause of the cable faults is yet to be determined, network providers are currently working to speed up the repair process for the damaged cables. MTN is also looking to “reroute traffic through alternative network paths.”

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Crypto

After a tumultuous period marked by website bans, executive detentions, and accusations of illegal activity, Binance, the world’s largest cryptocurrency exchange, is attempting to mend fences with Nigerian authorities.

The exchange released a statement emphasising its commitment to compliance with Nigerian authorities.

Binance pointed out that since 2020, it has responded to over 626 information requests from Nigerian authorities, often within a quick turnaround time of less than 38 hours. This information, according to Binance, has been instrumental in helping Nigerian officials investigate financial crimes like scams, fraud, and money laundering.

Binance also claims to have conducted specialised training sessions in August 2023 for Nigeria’s Economic and Financial Crimes Commission (EFCC), and has also reportedly been in talks with the Nigerian Financial Intelligence Unit (NFIU) and the Nigeria Police Force to discuss ongoing training and ways to cooperate more effectively.

Zoom out: A condition for the Binance executives who are currently detained, to be released is that Binance releases the info of the top 100 crypto users in Nigeria. If Binance itself has admitted to cooperating with the Nigerian authorities before, does this mean they’ll also share the data that the Nigerian government is requesting for?

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Crypto

In recent times, Africa has witnessed a surge in crypto adoption, prompting regulatory bodies to enact new guardrails for the space. Weeks after Nigeria lifted its 3-year ban on crypto transactions in the country, it introduced strict rules to allow virtual asset providers to obtain licenses in the country. 

South Africa is set to join the regulatory bandwagon as it will license 60 cryptocurrency platforms by the end of the month. 

The news: South Africa’s Financial Sector Conduct Authority (FSCA) yesterday released new frameworks for licensing Crypto advisory services, exchanges, payment gateways, and crypto wallet services. 

Per TechCabal, the regulator has given exchanges until November 30 to brief in their license application. The FSCA received 355 applications of which 60 were approved. The regulator has also promised dire consequences to crypto entities that continue to operate without applying for a license. 

Crypto stakeholders across South Africa and Nigeria agree that the current framework for obtaining licences is steep in both countries—Nigeria requires crypto exchanges to have at least ₦500 million ($553,000) in capital—however, critics say the regulations are a good place to start. 

Zoom out: The FSCA said that licensed entities will be under continuous scrutiny after licensing. The regulator says it will continue to police people operating crypto-related financial services without authorization.

Fintech

African fintech giant Flutterwave has once again added a new name to its organisational chart.

After Oneal Bhambani, Flutterwave’s former CFO abruptly left the company in November 2023, Flutterwave hired five new high-profile executives across its risk, compliance, and expansion departments in December 2023. Two weeks ago, the fintech also added a new board member, Olajumoke Adenowo, as part of its efforts to drive its international expansion strategy. The fintech giant didn’t stop there.

In its latest appointment, Flutterwave has named Dipo Fatokun, a former Central Bank of Nigeria (CBN) director, as its new board chairman, and Tosin Faniro-Dada, a partner at Breega, an early-stage VC fund in Europe and Africa, as an independent non-executive director.

According to CEO Olugbenga Agboola, the recent leadership changes is a commitment to maintaining the highest regulatory and operational standards 

Building a strong foundation: Fatokun brings a wealth of experience, having served on multiple boards over the past decade and leading critical initiatives at the CBN, including the Cashless Nigeria Project and the Bank Verification Number (BVN) system.

Since its 2016 founding, Flutterwave has grown rapidly, establishing a presence in roughly 30 African countries. This ambition extends beyond the continent, with the recent expansion into India.

TC Insights

This week, Planet42, a South Africa-based car subscription company, raised $16m in local-currency debt and equity funding from Standard Bank. 

Here are other deals for the week:

• South Africa-based earth observation startup Simera Sense raised $14.8 million in investment from NewSpace Capital and Knife Capital. 
• Egypt-based adtech dKilo secured $3.2m in seed funding, a mix of equity and financing, from Upturn Ventures. 
• Morocco-based fintech startup ORA Technologies raised $1.5 million in seed funding from local entrepreneurs. 
• Youverify, a Nigerian-based platform that provides banks and startups with identity verification and anti-money laundering (AML) solutions, raised $2.5 million in pre-Series A investment from Elm Investment. 
• Egypt-based healthtech startup 30Med raised an undisclosed amount in pre-seed funding from anonymous angel investors. 

Before you go, our much anticipated State Of Tech In Africa Report for Q4 2023 is now out. Click thislink 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	$71,335	– 2.54%	+ 44.00%
Ether	$3,875	– 3.00%	+ 47.25%
Tether USDt	$0.9992	– 0.14%	– 0.15%
BNB	$605.40	+ 1.01%	+ 86.68%

* Data as of 11:39 PM WAT, March 14, 2024.

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Job Openings

• LemFi- Senior IOS Engineer – Nigeria (Remote)
• 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?

• Thabo Bester’s showdown with Showmax heads to court
• Caxton says Google has morphed into a rival
• Is this the end for South African Airways?

Written by: Mariam Muhammad & Faith Omoniyi

Edited by: Timi Odueso

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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.

Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now.

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.

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

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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