In the ever-changing economy of East Africa, Uganda and Kenya are confronting inflationary challenges with resolve.

A central solution: Uganda’s March 2024 annual inflation rate dipped marginally to 3.3%, a notch below the Bank of Uganda’s 5% target. This slight decrease in inflation was made possible because the Central Bank of Uganda kept its Central Bank Rate (CBR) steady at 9.5%. This helped to keep the core inflation rate stable at 3.4% for several months in a row.

Despite the decline in inflation for some goods, the overall inflation rate rose to 5.5% compared to last year. 

Kenya also witnessed a downtick in its year-on-year inflation to 5.7% in March 2024, attributed to the Kenyan shilling’s resilience against the US dollar, trading at KES132 ($1). However, this doesn’t translate to relief for everyday Kenyans. The cost of essential goods and services like transportation, housing, and food remains high, constituting over 57% of expenditure weights, as per the Kenya National Bureau of Statistics.

In fighting inflation, Kenyan’s Central Bank and other East African central banks are raising interest rates. In February 2024, the CBK increased the interest rate from 12.5% to 13%, their biggest jump in over a decade. This means Kenyans might pay more for loans like mortgages or car loans. The bank hopes this will slow down inflation and bring price increases closer to their target of 5%.

Give it a shot like she did . Click here to experience fast and reliable personal banking with Moniepoint.

When it comes to powers raising money, businesses have a variety of options. They often turn to debt instruments like bonds, selling shares of ownership (equity), or even short-term loans from a bank. However, when businesses need bigger sums of money, they adopt a more powerful tool: syndicated loans. 

Side bar: Think of a syndicated loan as a group project for lenders. A bunch of banks or other financial institutions team up to provide a single, large loan. This lets the borrower access a hefty sum of money while spreading the risk among the lenders.

That’s exactly what the African Finance Corporation (AFC) just did! Launched in 2007, the AFC is a pan-African development financial Institution that provides funds for Africa’s infrastructure deficit across six industries: Power, Transport and Logistics, Natural Resources, Telecommunications and Heavy industries.

A $1.16 billion loan: Lenders from across the Middle East, Europe, and Asia have all joined forces to provide the AFC with a $1.16 billion, its largest debt facility yet. First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank, Standard Chartered, Industrial and Commercial Bank of China, Société Générale, Bank Muscat, and Intesa Sanpolo Bank Luxembourg S.A all took part in the deal.

So, what will the AFC do with all this cash? The AFC is on a mission to bridge Africa’s infrastructure gap. This loan will fuel crucial projects across the continent, from building vital transportation links to developing clean energy solutions. By investing in these areas, the AFC aims to unlock Africa’s economic potential and create a brighter future for all.

Nigeria’s IT bulldog, the National Information Technology Development Agency (NITDA), has issued yet another warning. Early in March, the agency raised an alarm about a sneaky malware program called “Ov3r Stealer” that targets Facebook accounts and extracts sensitive information. 

This time, the agency is warning Nigerians about a rise in QR code scams. 

What’s happening? NITDA warns that fraudsters are now using these codes for phishing attacks, payment redirection, and even data theft. The agency is now urging Nigerians to exercise caution when scanning QR codes.

 QR code is a technology which gained popularity due to the COVID-19 pandemic. Although it was celebrated for its rapidness and convenience in accessing information and services, QR Codes have regrettably morphed into a technology exploited by fraudsters for fraudulent acts. Keepnet Labs reported that  QR code phishing emails saw a significant surge between June and August of 2023. Security systems identified 8,878 of these incidents, with June being the peak month at 5,063 reported cases. Only 36% of these incidents were accurately identified and reported by the recipients.

The Hoxhunt Challenge, a flagship project designed to quantify human cybersecurity risk across the world’s biggest industries conducted a test in 125 countries and reported that 22% of phishing attacks used QR codes in October 2023. 

Zoom out: NITDA also stressed the importance of verifying the authenticity of QR codes and their associated links before scanning. Additionally, NITDA recommends using trustworthy QR code scanning applications equipped with robust security measures and maintaining up-to-date antivirus.

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.

Microsoft is taking its AI race seriously.

Although the company cannot keep up with the pace of building AI models as quickly as OpenAI, it recently buddied up with the ChatGPT maker and poured about $13 billion worth of investments into it. 

Last month, however, Microsoft made a step in plugging that hole. The company appointed Mustafa Suleyman, co-founder of AI startups DeepMind and Inflection, as head of its consumer AI business, the unit responsible for Copilot, a chatbot similar to ChatGPT. Suleyman’s hire alongside the appointment of most of Inflection’s 70 employees will give Microsoft a new edge in building its own unique set of sophisticated generative AI models. 

No stop in sight: According to The Information, Microsoft is reportedly working with OpenAI to launch a data centre that will house an AI supercomputer “Stargate” with millions of specialised server chips to power OpenAI’s artificial intelligence. Microsoft will also fund a huge part of the project which is estimated to cost about $100 billion.

What’s in it for Microsoft? While the data centre will power ChatGPT, Microsoft will gain access to OpenAI’s proprietary technology and the sole right to resell it to its cloud clients, including Morgan Stanley. Microsoft also included OpenAI’s tech in its latest AI Copilot features for Teams, Office, and Bing.

The “Stargate” project, set to be launched by 2028, is in its preliminary stages of discussion, plans could change depending on how both companies perceive the deal. The data centre is said to be one of the biggest data centres by cost and could cost 100 times more than some of the world’s largest data centres. 

Microsoft is also said to be working on a smaller, fourth-phase supercomputer for OpenAI that will be launched around 2026.

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

Coin Name	Current Value	Day	Month
Bitcoin	$70,402	– 1.37%	+ 13.22%
Ether	$3,528	– 2.15%	+ 4.49%
dogifwhat	$4.37	+ 1.70%	+ 267.87%
Solana	$198.68	+ 1.28%	+ 54.11%

* Data as of 06:55 AM WAT, April 1, 2024.

• The second edition of TechCabal’sMoonshot Conference is set for October 9–11, 2024, at the Eko Convention Centre, Lagos, Nigeria. Moonshot will assemble Africa’s biggest thinkers, players and problem solvers on a global launchpad for change. If you want to join the stakeholders in Africa’s tech ecosystem for three days of insightful getting an early-bird ticket at 20% off. 
• Nigeria’s biggest women-only festival, Hertitude, is back for a third time. For those new to the scene, Zikoko brings all the girls to the yard every year to let their hair down, form bonds and celebrate what it means to be a hot babe. It’s happening on April 20, 2024 in Lagos and will feature everything from talent shows and karaoke sessions to spa services, live music performances and an afterparty. Click here to get tickets.
• Attention all music lovers! On Saturday, May 11, 2024, Zikoko wants you outside for a day of link-ups, games, drinks and live performances at Muri Okunola Park, Lagos. Strings Attached is an opportunity for friends to reconnect, lovers to bond and individuals to make friends and build community. To get a free ticket, download the Onebank by Sterling App and sign up using ZIKOKO as the referral code. You’ll get your ticket in your email once tickets are available. Click here to get the app.

Here’s what you should be looking at

• Who calls the shots at women-focused startup Herconomy?
• How CAF president Patrice Motsepe could impact Canal+’s bid for MultiChoice
• Nigeria tells banks to raise minimum capital to $359 million 
• OpenAI’s voice cloning AI model only needs a 15-second sample to work

Written by: Towobola Bamgbose & 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

ADVERTISE

To advertise with us send an email to

ads@bigcabal.com

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.

Give it a shot like she did . Click here to experience fast and reliable personal banking with Moniepoint.

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.

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.

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.

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. 

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

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. 

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.

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

• 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

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

ADVERTISE

To advertise with us send an email to

ads@bigcabal.com

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

You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint.

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.

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.

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.

Deploy your in-person point-of-sale solution to hundreds of sales agents, in seconds. Learn more → 

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.

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.

• 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

ADVERTISE

To advertise with us send an email to

ads@bigcabal.com

Jumia, a leading e-commerce player in Africa, has shown signs of progress in its fight against red ink. In Q3 of 2023, it lost 800,000 active customers but saw a $19 million reduction in operational losses.

Now, its Q4 2023 financial report boasts a significant reduction in operational losses to $4.5 million, due to a strategic decision to shut down Jumia Food, reduce its workforce and focus on higher-value goods. 

Following these strides, transactions on JumiaPay, its payment service, grew 41% year-over-year. Jumia CEO, Francis Dufay also claims the company finished 2023 with a significant reduction in losses before tax, down to $98.6 million from $206.2 million in 2022. Jumia also slashed its marketing budget. Their total sales and advertising spend for Q4 2023 was $6.2 million, a 62.8% decrease from Q3 2022. 

Cost-cutting wins, but at what cost?  Sadly, the progress comes with a painful impact of laying off an undisclosed number of employees 8’ January 2024, in Kenya and other markets to create leaner, agile teams. This comes one year after the e-commerce company laid off 900 employees in an effort to cut costs.

Zoom out: Despite the progress, Jumia remains unprofitable. Economic headwinds like inflation and currency devaluation resulted in a 22% drop in orders and a decline in Jumia’s user base to 2.3 million active users, losing 500,000 active customers in Q4 compared to the same period in 2022. Its revenue also took a hit. It dipped 8.3% in 2023, falling from $203.3 million in 2022 to $186.6 million.

You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint.

Nigeria’s last-mile delivery market is projected to reach a staggering $58.6 billion by 2029, fueled by an e-commerce surge which was reportedly expected to reach $9.2 billion by the end of 2023. 

This promise is marred by Nigeria’s terrible roads—the worst in Africa—traffic congestion in major cities like Lagos, and even some government policies like the recent fuel subsidy removal which has quadrupled fuel prices

This is the harsh reality of startups like Gokada, forced to adapt and fight for survival in the delivery space. The Nigerian last-mile delivery company has pivoted to an asset-light model to stay afloat and find new funding.

Why pivot? Founded in 2017, Gokada bought bikes for their drivers under a hire-purchase plan. Drivers had a repayment plan spread for up to three years, eventually becoming owners. This meant Gokada shouldered maintenance costs, which ballooned to tens of thousands of dollars a month in late 2021 and early 2022. And according to the COO Oluwaseun Omotosho, continuing on this path meant the business would have shut down.

Now, with the company going asset-light, Gokada owns only 10% of the 5,000 bikes on its platform, and drivers become partners and handle their bike maintenance. Gokada just connects them with financing companies, oversees payment collection and takes a commission.

However, the shift isn’t just about saving cash. Gokada is also looking for new investors after a tough past three years.

What happened? In 2020, a motorcycle ban in Lagos forced Gokada to ditch ride-hailing and switch to deliveries. They laid off 80% of their staff. Their then-CEO, Fahim Saleh, was also tragically murdered that same year. In 2022, the delivery company considered selling the business to a competitor, Kwik Logistics, but the deal did not go through.

2023 also brought another blow as 54 employees were laid off in February due to harsh macroeconomic conditions and had to run a leaner operation, closing one office and renegotiating terms with vendors.

More logistic startups shutdown: The harsh reality hasn’t spared other logistics startups like Hytch and GoMyWay, who have all shut down in 2023 and 2018 respsectively, due to a lack of funding.

Fincra’s payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through bank transfers, cards, virtual accounts and mobile money. Create a free account and start collecting NGN payments with Fincra. 

Nigeria’s January 2024 inflation figure of 29.90% marks a grim milestone – the highest since 1996, a period etched in memory for its crushing poverty and economic instability under the Abacha regime. 

While the country has avoided repeating such historical lows, the current situation raises serious concerns.

Domestic issues like insecurity in agricultural regions and currency depreciation are among several factors driving Nigeria’s inflationary surge. Food inflation currently reads 35.5% , while the CBN has an unmet backlog of FX demand estimated at $2.2 billion.

Despite implementing monetary tightening measures like raised interest rates and cash reserve requirements, the Central Bank of Nigeria (CBN) has struggled to effectively curb inflation.

Critics argue that the CBN has ignored its inflation target of 6-9% set in 2014 and argue that the current measures primarily impact businesses and individuals seeking loans, further hindering economic growth.

A way out? Despite repeated promises to address inflation, Nigeria’s Central Bank Governor, Olayemi Cardoso, has offered limited specifics on his plans. At the recent Nigerian Economic Summit Group (NESG) meeting, Cardoso predicted inflation would fall to 21.4%, but details remain unclear.

To curb the gruesome inflation, analysts expect the CBN is to raise interest rates by 5% at its next Monetary Policy Committee (MPC) meeting on February 26-27, 2024.

Uganda is adding an extra layer of security to its identity management system. 

As the Ugandan government ramps up plan to provide new or renew expiring national ID for its 30 million citizens, the country is adding a new twist with an iris biometrics. 

Iris biometrics? The National Identification and Registration Authority (NIRA) says it is adding the iris biometrics as an enhanced security feature for its national ID. 

The Iris biometrics captures the unique patterns in your eye’s coloured ring. Similar to fingerprints, each individual’s iris possesses a distinct and highly stable pattern, making it incredibly difficult to forge.

Uganda is not the first country to pull this move. Malawi began incorporating iris scans into its national ID system in 2016. Similar to Uganda, this move aimed to enhance security and prevent fraud. Other African countries utilizing iris recognition in their ID systems include Morocco, Benin, and Zimbabwe.

Zoom out: The new national IDs which serve as a travel document within the East African region will be valid for a 10 year period.

The NIRA will begin enrolling users into the new system as from June 1, 2024, and will wrap up the process by January 2025.

 Paystack is excited to announce that merchants in South Africa and Côte d’Ivoire can now accept online payments from millions of global customers, with Apple Pay! Learn more →

This week, Kenyan electric mobility startup Roam, formerly Opibus, raised $24 million in debt and equity funding. This comprised a $14 million Series A equity funding round led by Equator Africa, with support from At One Ventures, TES Ventures, Renew Capital, The World We Want, and One Small Planet, among other investors. An additional $10 million in debt commitment was also secured from the US government’s Development Finance Corporation (DFC).

Here are other deals for the week:

• Ilara Health, a Kenya-based healthtech startup, raised $4.2 million in debt-equity in a pre-Series A round. DOB Equity led the $2.5 million equity round, which included the Philips Foundation and existing investors such as AAIC INVESTMENT, Angaza Capital, Black Pearl Investments, and Perivoli Innovations. Alphamundi, Kiva Capital, and Boehringer Ingelheim closed the $1.7 debt investment.
• Logidoo, a Morocco-based logistics startup, raised $1.55 million in seed funding. Six venture capitalists led the round: Maroc Numeric Fund II and Kalys Ventures from Morocco; 216 Capital, Tunisia; Gullit VC, Ethiopia; Founders Factory Africa, Nigeria; and Sunny Side Venture Partners, Egypt/Japan. 
• Tunisian startup Cynoia secured $930,000 in a funding round. Investors in the round included United Gulf Financial Services, 216 Capital Ventures, and Bpifrance.

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.

Coin Name	Current Value	Day	Month
Bitcoin	$51,668	– 0.15%	+ 21.83%
Ether	$2,812	+ 1.40%	+ 12.39%
Tether USDt	$1.00	– 0.01%	+ 0.12%
BNB	$352	+ 5.34%	+ 12.26%

* Data as of 23:19 PM WAT, Febraury 15, 2024.

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

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

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

What else is happening in tech?

• Nine African startups are getting $1.8 million from from Catalyst Fund
• Why is the CBN yet to introduce a standard for Open Banking?
• Good news about China’s generator donation to 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

ADVERTISE

To advertise with us send an email to

ads@bigcabal.com