Tech (695)
According to Mastercard's report "The Future of Fintech-Africa," the number of fintech startups operating in Africa rose 81% between 2019 and 2021. Some of those startups operate outside the law and are deemed predatory. Authorities are now taking measures to make them compliant.
In Nigeria, an additional 106 digital lenders got their approvals to operate from the Federal Competition and Consumer Protection Commission (FCCPC) last Wednesday, January 25. A few days later, on January 30, the Central Bank of Kenya (CBK) licensed 12 fintech startups, raising the number of licensed fintech startups in the country to 22.
"The focus of the engagements has been inter alia on business models, consumer protection, and fitness and propriety of proposed shareholders, directors, and management. This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded, " the CBK indicated in its release announcing the licensing.
In 2022, Kenya and Nigeria took regulatory measures to secure the digital lending landscape following consumers' growing complaints about the various practices, including high-interest rates and the name-and-shame behavior, in that ecosystem. Nigeria even took down more than 50 loan apps from Playstore, according to an interview with FCCPC CEO Babatunde Irukera.
Also, in November 2022, Google informed digital lenders operating in the two countries that starting from January 2023, it would host their app on Playstore only when they submit a genuine business license. "Google has been very supportive, including providing their expert knowledge and experience in offering advice on what works best in achieving laudable regulatory objectives," he said.
Since March 2022, the CBK has received 381 licensing applications. In Nigeria, of the 106 fintech startups that have received their approvals, 65 have received full approval, while the remaining 41 have received conditional approval.
Samira Njoya
The development of broadband access in Africa has contributed to the growth of new professional opportunities, including gaming, which, if properly supported, has the potential to create new entertainment professionals.
Next January 28-29, Africa's young gaming talents will meet at Sofitel Abidjan's congress center for the grand finale of Orange Esport Experience, a pan-African gaming championship organized by Orange Côte d'Ivoire. This year marks the fourth edition of the championship with gamers from fourteen countries.
The participating countries are Benin, Cameroon, Congo, Ivory Coast, Egypt, Ghana, Guinea, Madagascar, Mali, Morocco, the Democratic Republic of Congo, Senegal, Central African Republic, and Sierra Leone. During the 2-day final, the champions of those countries will compete in games such as Street Fighter V, FIFA 2023, eFootball 2023 (ex-PES) and play a demo game on League Of Legends.
According to Orange, gaming is now a professional discipline that helps create many jobs, especially in the field of cybersecurity, artificial intelligence, and open innovation. This is why it is investing in that championship to identify gaming talents.
For Brelotte Ba, deputy director Orange Africa and Middle East, "Africa offers the ideal setting for this growing discipline.
Since 2016, Orange has been investing in the development of Esports with national and international bouts to bring out young gaming talents from the Middle East and Africa. the Orange Esport Experience was launched in 2018, and since then, it is held yearly in Côte d'Ivoire.
In Europe and the United States, gaming is no longer just entertainment. Some professional gamers earn five-figure salaries monthly. In Africa on the other hand, it is a relatively new field. Nevertheless, with the development of broadband access, it is growing quickly, presenting new opportunities to tech-savvy youth.
Muriel Edjo
In Africa, the agriculture sector is essential to sustaining the livelihoods of people living in rural areas and providing them with income, but most smallholder farmers do not have access to new technologies. This slows their activities in the digital age where new technologies play key roles in the development of every economic sector.
Heifer International, an international non-governmental organization that fights poverty and hunger in the world, will collaborate with Mastercard to facilitate access to e-payment for farmers in Africa, Mastercard announced in a press release issued on Wednesday, January 25.
Under the partnership, Heifer International and Mastercard will connect millions of smallholder farmers in sub-Saharan Africa to Mastercard's Community Pass, a digital platform that will provide visibility to farmers and make it easier and faster for them to get paid for their products and create a digital presence.
“We remain committed to ensuring that smallholder farmers have the right resources and support required to thrive by leveraging innovation and key partnerships. We firmly believe that smallholder farmers play a foremost role in ensuring the continent’s agricultural food resilience and self-sufficiency," said Adesuwa Ifedi, Senior Vice President for Africa Programs, Heifer International.
Indeed, smallholder farmers play an important role in African economies. According to the African Development Bank (AfDB), agriculture contributes about 30% of the continent's GDP. However, these farmers, mostly living in remote areas often not covered by internet services, cannot easily market their products and conduct digital business transactions.
The partnership between Heifer International and Mastercard aims to advance the digitization and financial inclusion of these farmers. Mastercard's Community Pass will address infrastructure challenges that arise when digitizing rural communities, such as unreliable connectivity, low smartphone ownership, and lack of consistent identification or accreditation.
Samira Njoya
Last October, Nigeria enacted its startup act, joining the list of the few African countries with such acts. It now wants to draw on the experience of countries that have already implemented such acts to develop its ecosystem.
Since Monday, January 23, a delegation of the Office For Nigerian Digital Innovation has been carrying out a working visit in Tunis, Tunisia, at the invitation of the Japan International Cooperation Agency (JICA). The visit aims to let the representatives explore the Tunisian startup ecosystem and learn how public and private actors collaborate to develop the said ecosystem.
According to the members of the delegation, it is important to learn from the Tunisian experience that could be beneficial for Nigeria during the implementation of the Nigeria Startup Act, enacted on October 19, 2022. "We came to learn from the experiences of the actors in the Tunisian ecosystem throughout the pre-and post-implementation phases of the Startup Act," said Fuwa Naonobu, the JICA consultant accompanying the Nigerian team.
The delegation led by Oswald Guobadia Osaretin, Senior Special Assistant (Digital Transformation) to the President of the Federal Republic of Nigeria, met with officials of the Tunisian Ministry of Technology and Communications. In coordination with the JICA office in Tunisia, the delegation also met with several start-ups and accelerators such as Smart Capital, Africinvest, Flat6labs, Technopole El Ghazala, and Instadeep.
It should be noted that the working visit is part of the NINJA project (Next Innovation with Japan) launched by JICA to provide comprehensive and tailored support to entrepreneurs at different stages of development. The project, which covers 19 African countries, is launched to encourage the creation of innovative startups.
Samira Njoya
The project aims to bridge the widening digital skill gap that is likely to affect digital transformation in Mali and Africa as a whole.
Last Monday, Danew Talla Electronics, the Malian joint venture between the French company Danew and the Malian company Talla Telecom, signed a partnership agreement with the higher education institution Complexe numérique de Bamako to train more young people in digital professions and accelerate the digitization of the country.
According to Hamed Salif Camara, general manager of Complexe numérique de Bamako, the partnership will help his institution achieve one of its objectives, namely unlocking the potential of ICT in Mali. He also invited Danew to not only partner with Complexe numérique Bamako but also with local startups to help build a better and brighter country.
On the sidelines of the signing ceremony, Malian authorities inaugurated the center of excellence CEDEX built by Danew Talla Electronics. CEDEX, which started its free training on November 2022, has already hosted a cohort of 47 young people from the Dutch NGO consortium of the Local Governance Accountability Plus Program (PGLR+). Between January and March 2023, it will train over 150 young people in digital professions.
Through all these actions, the participating companies are contributing to the implementation of "Mali Digital 2020," a national strategy that aims to position Mali as a technology hub in West Africa.
Samira Njoya
The partnership will contribute to the automation and digitization of the entire payment cycle to save time and reduce the various costs and efforts needed from grocers and small retailers in the country.
Last Monday, X-ERA Egypt, a leading provider of financial technology and logistics solutions in the Middle East, and Paymob, the leading financial services provider in the MENA-P region, announced a partnership agreement that aims to digitize B2B payments for tens of thousands of grocers and small retailers in Egypt.
"This cooperation aligns with X-ERA strategy to redevelop Egypt’s informal commercial market, by providing a package of diversified fintech tools and payment solutions to small grocers, corner shops, small and medium-sized merchants in different governorates throughout Egypt," said Mahmoud ELenani, CEO of X-ERA.
In Egypt, grocery stores represent 96.6% of the total outlets and account for 74% of overall sales in the food sector, according to data shared in January 2023 by BNP Paribas. With more than 116,000 grocery stores and stalls, this segment accounted for 73% of sales in 2021, or US$23 billion, according to the latest estimates from the USDA.
With the new partnership, Paymob's payment acceptance technology will now be integrated with X-ERA's fast-moving consumer goods (FMCG) ordering application, creating an end-to-end digital commerce solution for merchants who previously only had the option to pay for their goods with cash on delivery.
According to a joint statement from the two companies, the partnership will digitize the operation of grocers and small businesses and fuel their growth in the digital economy. Using Paymob's technology, X-ERA merchants will also be able to pay their utility and telecom bills to further digitize their operations.
Samira Njoya
During the multi-month suspension, the California-based company, which entered the country in 2016, developed new offers and services.
U.S ride-hailing Uber announced, Wednesday, the resumption of its activities in Tanzania, marking an end to the dispute opposing it has with local authorities.
In the release announcing the resumption, it said it was delighted to relaunch its operations in the country after nearly 10 months of suspension: "We are excited to kick off the year on such a positive note by re-entering the Tanzanian market[...]It is our priority to provide a platform where drivers can make substantial earnings while providing convenient and reliable options for riders in Tanzania," the release read.
The U.S. company was forced to suspend its services in Tanzania in April 2022 due to changes in government regulations that capped commissions from drivers to 15 percent, down from 33 percent. After months of negotiations, last month, Tanzania's transport regulator allowed ride-sharing companies to charge up to 25 percent commission and 3.5 percent booking fee.
While relaunching operations in Tanzania, Uber has also introduced a new safety check-up technology that the company says will give passengers and drivers more confidence during their rides. "Based on research, most riders seem to be unaware of the safety features available to them. As a result, Uber is launching Safety Check-up across SSA which will encourage riders to complete their safety profile by turning on and utilizing the available features such as Trusted Contacts, PIN verification, and RideCheck," the company added.
The new safety feature also allows for direct reporting of sudden vehicle stoppages due to accidents or breakdowns of any kind, in which case a report is shared with the company, and assistance is requested.
Samira Njoya
For months now, Yassir has faced a number of accusations in Tunisia. The latest is the unfair competition accusations leveled against its cab services.
Last Monday, Algerian transportation startup Yassir received a warning from the Tunisian Ministries of Transport and Technology. In a joint statement, the two ministries accused Yassir of violating the law by calling out to individuals to earn money by transporting passengers.
"This type of irregular cab service is exercised outside the legal framework. It is a dangerous innovation because such types of transport services are subject to authorization. It is an infringement of the rules of fair competition. The competent ministries will end this phenomenon to protect the public," reads the statement.
The warning comes after several complaints by the Tunisian individual cab drivers' Union. Last Monday, Fouzi Khabouchi, the union's chairman, said he filed two complaints against Yassir. One of the complaints was filed with the Public Prosecutor's Office and another to the Financial Analysis Commission of the Central Bank of Tunisia to warn against multiple offenses including money laundering.
Following those accusations, the start-up that provides cab and food delivery services declared that only official Tunisian institutions could request explanations about its activities or mediate to resolve any dispute that may arise between the start-up and other professional or private bodies.
Let's note that in November 2022, Yassir became the most-valued North African startup after raising US$150 million, an incredible amount for its development stage.
Samira Njoya
The coronavirus pandemic and the Ebola outbreak fragilized the education system in Guinea. This highlighted the need to set up innovative tools to back the education system.
Last Friday, the United Nations Children's Fund (UNICEF) and the Guinean Ministry of Pre-University Education launched the pilot phase of the e-learning platform "Learning Passport," at Gbessia Port 1 elementary school in the commune of Matoto, Conakry. The new digital platform, created to support student learning, will provide continuous access to educational resources for children, youth, and teachers.
According to Dr. Adama Ouedraogo (photo, left), UNICEF's Acting Representative in Guinea, the new platform will help "improve teaching and learning and enhance the skills and knowledge acquired both formally and informally." "To students, it means continuous access to the curriculum and additional learning materials. To teachers, it means steady access to training opportunities and educational support," he added.
Over the four coming months, the platform will be test-run in two schools (Ratoma Centre and Gbessia port 1) in Conakry. The National Institute of Preventive Archaeological Research (INRAP), with the support of UNICEF, will assess teachers' and students' ability to access the digital content available on "Learning Passport."
The platform, delivered by UNICEF and powered by Microsoft Community Training, was developed with a unique suite of online and offline features and capabilities. It will first be deployed in places with intermittent or no Internet connectivity - often places where children find themselves unable to access quality digital educational tools and content.
Samira Njoya
African countries are among the most affected by climate change. In that context, initiatives contributing to resilience are important for the continent.
Last Tuesday, VC fund and accelerator Catalyst Fund unveiled a list of 10 African start-ups that will benefit from its new US$30 million VC fund backed by development agency FSD Africa. The ten startups represent the inaugural cohort of that fund.
The selected start-ups are from Egypt, Uganda, Morocco, Kenya, and Nigeria and were chosen for the innovative technologies they have developed to help communities better adapt to climate impacts and increase their resilience.
Each of them will receive "$100K of equity investments as well as $100K of hands-on venture-building support," and "join Catalyst Fund’s existing portfolio of 61 startups across emerging markets and receive capital, bespoke and expert-led venture-building support, and direct connections with investors, corporate innovators and talent networks that can help them scale."
Catalyst Fund's portfolio companies have raised more than US$640 million in follow-up financing to date. They currently serve more than 14 million people and MSMEs worldwide. According to Maelis Carraro, Managing Partner of Catalyst Fund, the aim is to support motivated founders who share the VC fund's "vision of a world where every individual has the tools and opportunities they need to thrive."
Samira Njoya
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In Africa, internet access is one of the major challenges that can prevent effective digital transformation. In that context, the Morrocan government wants to ensure that every region has access to that utility, even the most remote areas.
Morocco will connect most of its national territory to the internet by the end of 2023, Digital Minister Ghita Mezzour (photo) recently revealed.
Last Monday, while answering the House of Representatives' oral questions on internet connection in rural areas, the government official explained that 9,225 out of 10,740 zones have been connected to the internet during the first phase of the 2018-2023 national plan for the development of broadband and ultra-broadband connection. The remaining 1515 will be connected by the end of 2023, she added revealing that the Ministry of Digital Transformation was already preparing the second phase of the project. The second phase will connect 1700 new zones, with a particular focus on poorly-covered regions.
In recent years, Morocco has implemented numerous actions to boost internet access. According to Cable.co.uk’s “Worldwide broadband speed league 2022,” the country has the ninth fastest internet connection in Africa with mean download speeds of 13.03 megabits per second (Mbps).
During her oral session on December 26, Minister Ghita Mezzour also informed that the four technoparks operating in the country currently support 450 startups whose cumulative turnover is US$86 million. According to the official, 25% of the supported startups export their digital products.
Samira Njoya
The platform aims to take advantage of the growing e-commerce industry, and the development of new buying habits.
Public postal operator Egypt Post will launch an e-commerce platform in 2023. The platform, called ECOM Africa, aims to boost trade between Egypt and other African countries.
In an interview with the Arabian Business, Sherif Farouk, chairman of Egypt Post, said the new platform will "help and benefit from major international e-commerce and online advertising companies, such as Amazon and Alibaba."
For several years now, Egypt is trying to boost its trade with other African countries by leveraging postal services. In 2020, the Egypt Post signed an agreement with the Universal Postal Union (UPU) to implement the Ecom@Africa initiative, which aims to promote and develop e-commerce between African Posts.
The agreement aims to enable Egypt to overcome the obstacles to e-commerce and make the country an e-commerce hub on the continent, given its strategic location. It is in line with the country’s plan to increase its exports to other African countries from US$5 billion currently to US$10 billion by 2025.
Thanks to the announced platform, the country's companies will be able to sell their products easily in other countries of the continent. "The Egypt Post fleet will be instrumental in delivering these goods to clients in other African countries," added Minister Farouk.
Samira Njoya
With the acceleration of digital transformation across Africa, cybersecurity has become a major concern, with increasingly targeted attacks. The issue pushes governments to streamline their digital defense strategies.
Last December 14, the Chadian Ministry of Telecommunications and the National Agency for Computer Security and eCertification (ANSICE) launched a workshop for the development of a national cybersecurity strategy.
The cybersecurity strategy to be developed during the workshop -organized in partnership with the International Telecommunication Union (ITU)- aims to find ways to better fight cyber threats. "It is important to assess the cybersecurity challenges to define and prioritize the responses to implement in a strategy capable of enhancing the cybersecurity of every institution,” said Digital Minister Mahamat Allahou Taher.
In recent days, Chad has accelerated its efforts to strengthen its cybersecurity. On December 5, two bills were passed to strengthen the country's cybersecurity framework. The first bill ratifies Ordinance No. 007/PCMT/2022 of August 31, 2022, on cybercrime and cyber defense, while the second ratified Ordinance No. 008/PCMT/2022 of August 31, 2022, on cybersecurity.
To strengthen its legal framework, the government decided to quicken the elaboration of the cybersecurity strategy, which was not really advancing. In 2019, during a meeting with participants from 32 national and regional institutions, it was already decided that the elaboration of the national cybersecurity strategy would be accelerated. In February, the country also hosted cybersecurity experts from various countries and the sub-region to discuss issues related to assessment methodology, strategic cybersecurity policy, online commerce, banking, legal and regulatory framework, and technology standards.
Samira Njoya
The program aims to finance the development of African tech ecosystems.
Last Tuesday, Digital Africa announced its first 15 “Connectors" (leaders who will collaborate with Digital Africa for the development of local and regional tech and entrepreneurial ecosystems).
In a release accessed by We Are Tech Africa, Digital Africa explains that the 15 leaders will help find customized solutions to community challenges and generate effective opportunities. “Africa needs African-designed solutions to the continent's structural and infrastructural problems, be it in health, sports, energy, agriculture and we believe that it is in the made-in-Africa tech that can do it,” explains Aphrodice Mutangana, director of partnerships at Digital Africa.
A few months ago, Digital Africa launched a call for applications for its "Connectors Digital Africa" program. At the end of the selections, fifteen high-level African personalities were chosen, with three connectors per region: North Africa, South Africa, West Africa, East Africa, and Central Africa. They were selected based on their professional experience, and their strong sense of leadership, but especially for their commitment to having a positive impact on the African tech ecosystem.
Their missions will include acting as ambassadors representing Digital Africa in the region and providing a link between their community and Digital Africa, organizing activities and events on behalf of Digital Africa, identifying and mobilizing resources, and helping to map the ecosystem and suggest solutions.
"Connectors" is one of several initiatives launched by Digital Africa since its inception in 2018. In October, the pan-African initiative launched "Fuzé", a program that aims to provide a solution to the financing problems faced by African startups.
Samira Njoya