After a pre-series A operation in November 2021, Appetito is acquiring Tunisian peer Lamma through a merger by absorption deal. Once completed, the process will create a new major q-commerce and e-commerce player.   

Grocery delivery startup Appetito announced Wednesday (June 1), the acquisition of its Tunisian peer Lamma. The startup did not disclose the acquisition value but several media suggest it is between US$10 and 15 million.  

The two startups decided to merge their operations under the brand Appetito, which will be operational in Morocco and Tunisia (Lamma’s markets) and expand into new West African territories.  

“We believe it’s the best time to expand in Africa to solve the huge inefficiencies in the retail supply chain […] Having Lamma on board will put us on track to become the largest q-commerce player in the continent, transforming the lives of millions of people and creating thousands of direct & indirect jobs,” said Appetito’s CEO Shehab Mokhtar.

The acquisition deal is announced seven months after Appetito raised US$2 million in pre-series A funding, last November. The funds raised were used to expand the startup’s presence in Egypt and plan for regional growth. 

Once completed (by Q3-2022), the merger by absorption plan will make Appetito the largest q-commerce and e-commerce player in Africa. From the three markets where it operates (Egypt, Morocco, and Tunisia), it will enter new continental markets, starting from West Africa. 

According to Shehab Mokhtar, the q-grocery market still has strong growth potential. To illustrate his point of view, he informed that just 2% of the operators in Egypt’s US$60 billion grocery market are online. Also, the Middle-East and West African markets are fragmented and only a few firms have already succeeded in becoming major regional e-commerce players, he added. 

Chamberline MOKO

 

 

 

 

 

 

 

 

 

 

 

we are tech Africa

Posted On vendredi, 03 juin 2022 13:49 Written by

Nowadays, digital skills are important to be employable or employ one’s self. Private and public actors understand that and they want to help the youth get those skills for an end to the ever-increasing unemployment problems.

Guinean incubator Ose Ton Emploi launched, Saturday (May 28), its digital training lab dubbed Sanku Lab. The lab, funded to the tune of €55,000 by the Orange Guinea Foundation, will train up to 2,100 people for ICT jobs, notably prototyping and creating digital solutions and tools. 

At Sanku Lab, the trainees will have access to every piece of equipment needed like laptops, a 3D printer, a vinyl laser cutter, a heat press, electrical tools, digital embroidery machines, etc… 

During the launching ceremony, Ose Ton Emploi’s founder Danda Diallo explained that Sanku Lab would henceforth be the cornerstone of his incubator’s activities. Praising the initiative, Youssouf Boundou Sylla, Secretary-general of the Guinean Ministry of Technical Education indicated that they are “socio-economic growth drivers.” 

Ose Ton Emploi, created in 2018, aims to support young innovative project owners. It has already incubated several startups and is a member of Afric’Innov, a network of  African incubators. Through its works, it helped school dropouts showcase their talents and initiate their professional integration.  This is one of the reasons it was backed by the Orange Guinea Foundation. 

Because of the importance of the digital sector nowadays, we support digital initiatives to allow the youth to master the usage of digital tools, discover what they are passionate about, get trained, contribute their creativity to create startups, mature them and enter markets for guaranteed self-sufficiency,” said Amina Abou Khalil Nyame, Orange Guinea Foundation’s representative during the launching ceremony.  

Ruben Tchounyabe

 

 

 

 

 

 

 

 

 

 

 

we are tech Africa

tech africa

Posted On vendredi, 03 juin 2022 12:22 Written by

The coronavirus pandemic accelerated digital transformation in Africa. In its wake, governments committed to strengthening telecom infrastructures and expanding network coverage to allow access to digital services for most of their populations. For those investments to be effective, the services offered by telecom operators need to be affordable to everyone, even low-income earners. This is why by overtaxing telecom services, governments are negatively affecting digital transformation. 

In 2010, the level of taxation on the Sub-Saharan African telecom sector caused heated debates between governments and operators. Governments, which were intent on securing more revenues, claimed that the tax rates were fair in the ever-growing sector. On the other hand, the GSM Association (GSMA) was warning of the long-term dangers of over-taxing the telecom sector. The taxes would affect the viability of telecom operators but also negatively affect development.  Ten years later, the issue is still much present and the level of taxes levied on telecom operators is rising.  

By 2017, Sub-Saharan African governments had already introduced new taxes because of the growth recorded by the telecom sector over the years with new services. Seven years earlier, the region was considered the third most taxed region in the world after Central/Eastern Europe and the European Union, but ahead of Latin America, according to the Global Mobile Tax Review 2010/2011 report by GSMA and ITU. It is now the first most taxed ahead of North Africa - the Middle East, and the Asia Pacific. On average, the taxes paid by the sector represent 25% of revenues. In 2016, the telecom sector contributed US$13 billion to tax revenues in Sub-Saharan Africa. In 2018, this contribution rose to US$15.6 billion but in 2020,  it declined by US$600 million year on year. 

Threat to digital inclusion 

While corporate taxes are already affecting telecom operators’ profitability, the most concerning are sectoral taxes like those levied on mobile and internet services. Indeed, those taxes can directly affect the cost of the services, making them unaffordable for some populations. As a consequence, telecom may experience a drop in revenues, profitability, and the amount of tax paid to governments.   

In 2019, the World Bank estimated that in Sub-Saharan Africa, nearly 85% of the population was living on less than US$5 a day. In the region, the mobile penetration rate was 46% in 2020. At the same time, internet penetration was 34%, including 28% for mobile internet, according to Hootsuite and We Are Social. Also, the average cost of a 1.5 Gigabit mobile data plan was US$6.1 or 6.4% of gross national income (GNI) per capita according to the ITU. This is highly unaffordable considering that, according to the Broadband Commission for Sustainable Development, a data plan is considered affordable when its cost is about 2% of GNI.   

With internet taxes, some countries like Uganda (which introduced a 12% internet tax) make the service more expensive and exclude more people from the digital economy. The tax also threatens the survival of several businesses like e-commerce operators and those in the video-on-demand segment.  

According to GSMA, of the 1.084 billion people living in sub-Saharan Africa in 2020, 303 million people (28%) were connected to the Internet via mobile, 570 million people (57%) were covered by a mobile network but not using the Internet and 210 million (15%) were not covered by a mobile network at all. A total of 495 million people were subscribed to mobile services, representing 46% of the population.  Also, the smartphone adoption rate was 48% because of the costs of smartphones (according to the Alliance for Affordable Internet-A4AI). Even the low-cost smartphones offered by some manufacturers are still inaccessible for most because of import duties.  The situation prompted Chad to issue, on January 24, 2022, a 5-year tax exemption for the importation of mobile devices (both smartphones and feature phones),  automatic data processing equipment (desktops, laptops, and tablets), and dedicated accessories.  

Threat to financial inclusion 

Over the last ten years, mobile money has become one of the strong segments in the telecom industry, with millions of users and billions of dollars in transactions processed. Four years ago, a few countries started taxing that segment. They included Uganda, which introduced a 0.5% withdrawal tax in July 2018. The same year, Tanzania set its mobile money withdrawal tax to 1% before reducing it to 0.5% in October. In 2019, Zimbabwe introduced a 2% tax on every mobile money transaction. 

The growth recorded by the segment during the coronavirus pandemic convinced more governments to tap into that windfall to fund post-pandemic recovery.  In 2021, Cameroon introduced a 0.2% tax on electronic transaction. This year, Ghana introduced a 0.5% e-levy. In those markets, the taxes (both new and old) have always given rise to protests and disputes. In the Ghanaian parliament, e-levy discussions even led to physical confrontations between the pro and anti-e-levy.  

Nevertheless, the contested taxes and levies allowed some governments to raise more revenues than expected. For instance, the Uganda Revenue Authority estimates that from July to December 2018, the mobile money tax generated US$28.3 million of revenue. Despite such stellar performance, mobile taxes have hampered financial inclusion. According to the World Bank, those taxes forced wealthy individuals to use banks instead while low-income populations who depend on family remittances experienced a reduction of their already meager resources.  

The United Nations Capital Development Fund (UNCDF) reports that mobile taxes demotivated off-grid renewable energy users (usually located in rural areas)  who used to pay their bills via mobile money. The fact threatens the profitability of the off-grid energy segment and the jobs created. Mobile money tax can also affect the e-commerce and agriculture sector given that many small farmers buy agricultural inputs, make micro-savings, etc., using Mobile Money. 

The GSMA reports that telecom operators are not against taxation. They support effective taxation that does not unnecessarily hinder growth and negatively impact marginalized groups, it explains. So, corporate taxation could be the most effective way for governments to capitalize on growth in the telecom industry since corporate taxes are levied on the service providers’ turnover. 

Muriel EDJO

Posted On jeudi, 02 juin 2022 16:47 Written by

Professional insertion has become a worrisome issue in several African countries. To address this challenge in the digital era, national and international experts are moving to elaborate the most-suited strategy. 

In the next four years, several international partners will support Tunisia in the creation of ICT jobs for its youth and women. On Monday, May 30, in Gammath, the Ministry of Vocational Training launched a project in that regard.

Dubbed IPTIC, the project is funded by the Korea International Cooperation Agency and implemented by the International Labour Organization’s country office in Algiers.  

The project will focus on two axis in Tunis, Sousse, Sfax, Manouba, Kairouan, Zaghouan, Sidi Bouzid, Jendouba, Kasserine and Gabes. They are namely improving the capacities of government agencies dedicated to the implementation of the national employment strategy and the diagnostic study of ICT employment in each region. In Tunis, Sousse, and Sfax, the project will also develop ICT value chains. 

The project is the result of an agreement signed, in December 2021, by Rania Bikhazi, Director of ILO’s country office in Algiers, and Kim Hanvit, KOICA's acting country director in Tunisia. It will capitalize on the achievements of EDJEF, a project carried out from 2018 to 2020, to promote the employability of women and the youth in Kairouan, Zaghouan, Tunis, and Manouba.  

Muriel Edjo

 

 

 

 

 

 

 

 

 

 

 

we are tech Africa 

Tech africa 


Posted On jeudi, 02 juin 2022 12:35 Written by

In Africa, ICTs have proven their worth in resolving key issues in almost every sector, including the health sector. By using their tools, Senegalese authorities want to improve healthcare. 

African genomics startup 54Gene and Senegal will soon launch a program aimed at assembling the reference genome of the Senegalese population. In that regard, the startup signed, Tuesday (May 24), a memorandum of understanding with the Senegal Academy of Science and Technology (ANSTS) and Cheikh Anta Diop University’s department of human genetics. 

The program dubbed SEN-GENOME is scheduled to start in July 2022 and initial results are expected for December 2023. Based on results from the genomic study of the country’s main ethnolinguistic groups, it will help lay the foundation of precision medicine, and identify the hereditary risk factors of some diseases like cancer, heart diseases, and hereditary diseases. It will also allow better health surveillance for the Senegalese population. 

For Prof. Aynina Cisse, ANSTS representative during the signing ceremony, SEN-GENOME is launched because researchers noticed that “the reference human genome currently used is not representative of the genetic variety of Africans as a whole and Senegal in particular.”  

In that regard, the program will establish a reference genome reflecting the genetic diversity of the Senegalese population. The reference genome assembled will be used to improve the diagnosis, prognosis, treatment, and prevention of the most common diseases. It will also allow anthropologists to better understand communities’  socio-cultural history.

Modern medicine will rely on every individual's gene pool. SEN-GENOME, which is the first reference genome project in Francophone sub-Saharan Africa, will help initiate a genomic medicine plan in Senegal,” explained Prof. Rokhaya Ndiaye Diallo, head of Cheikh Anta Diop University’s department of human genetics.

"Africa has the most genetically diverse population but, those populations are poorly represented in international genomic databases.  SEN-GENOME will help fill this gap and allow Senegal further precision medicine,” commented Dr. Abasi Ene Obong, 54Gene founder and CEO.   

Muriel Edjo

Posted On mercredi, 01 juin 2022 13:25 Written by

By digitizing the entire health system, the government wants to give digital identities to every patient to improve healthcare services. 

Rwanda is moving to digitize its entire health system by 2024. The project was announced by the Permanent Secretary of the Ministry of Health, Zachee Iyakaremye (photo), at the launch of the 2022 Health Research and Policy Symposium last Tuesday (May 26). According to the official, the aim of the project is to give a digital identity to every patient.  

“The action plan is to have all the patient information in one place and digitalized so that we do away with paperwork completely. [...] This will also be possible by combining the national identification with the medical identification so that a patient can have one identification number which they can use to get treatment in any health facility in the country,” he explained.  

In its initial stage, the project will cost about US$12 million with anticipated total costs estimated to reach US$34.3 million in the long term. The health system digitization project aligns with the country’s One Health II strategic plan (2019-2024). In Rwanda, patients visiting health centers are still required to carry physical medical logbooks although more than 400 of its 513 health facilities have computers that can help store patient data. The government initiated the digitization of the medical data at the district, regional, and referral hospitals. However, there are still thousands of paper medical logbooks awaiting digitization.

For Jean Baptiste Byiringiro, chief digital officer at the Ministry of Health, digitization of the entire health system will solve that issue and many others. He announced the upcoming arrival of equipment essential for the digitization project as well as the construction of a data cloud, the installation of required equipment, and staff preparation. 

Ruben Tchounyabe

Posted On mercredi, 01 juin 2022 02:35 Written by

The project is in line with the government’s plan to make ICT a driver of growth and socio-economic development. 

Niger wants to capitalize on digital technologies to improve its farmers’ production and growth.  In that regard, last Saturday (May 28), it launched a digital innovation project dubbed IDAN ( projet d’innovations digitales pour les agro-pasteurs-IDAN). The project is aimed at helping boost revenues by 10% by offering access to integrated digital solutions for 35,000 farmers and pastoralists (including 15% women and young people) in Dosso, Tahoua, and Tillabéri.

IDAN will help agro-pastoralists make informed decisions daily. It will help them for instance decide “whether or not to buy inputs, the price at which to sell their milk, hides, livestock, cereals, and vegetables as well as knowing when to migrate with their herds,” explained Paul Tholen, the Dutch ambassador to Niger. 

According to the diplomat, in the framework of the project, a virtual marketplace will be created where farmers and pastoralists will offer their products. At the same time, a call center will be created allowing beneficiaries to request geo-satellite data and production tips. 

 IDAN is being developed by the Netherlands Development Organization (SNV), since April 1, 2021. It is funded by the Dutch embassy in Niger to the tune of about XOF3 billion (US$4.9 million). Its launch follows the validation (in March 2022)  of three studies commissioned to gauge its socio-economic impact on target populations. 

During the launching ceremony, Niger’s Livestock Minister Tidjani Idrissa Abdoulkadri (photo), praised the initiative that backs the government’s efforts in the improvement of residents’ living conditions and the fight against food insecurity. 

Ruben Tchounyabe

Posted On mardi, 31 mai 2022 15:32 Written by

African countries are gradually adopting the 5G, presented as the primary tool empowering the next wave of digital transformation thanks to its speed. To boost its effective use, public and private actors are moving to help African innovators develop 5G-powered apps and solutions. 

Cameroonian business incubator Boris Bison Youth Empowerment Business Incubator (BB Incubator) currently plans to deploy 5G tech spaces across Africa. In that regard, it recently signed a memorandum of understanding (MoU) with Pan-African video-game publisher Ludique Works and the Finnish technology learning accelerator network Start North. According to a release dated Tuesday (May 24), the tech spaces are baptized “5G Mokki Tech Spaces.” 

Our aim is [to create] a Pan-African tech space network that connects the African continent to Europe and the rest of the world, promoting the learning and adoption of technology, remote work, and entrepreneurship. In addition to promoting education, jobs, and the economic development of the regions, the network also aims to curb climate change by utilizing the latest technology,” explained Boris Ngala (photo, right), founder and CEO of  BB Incubator.

Africa’s first 5G network was deployed in 2020. Up to now, less than ten countries have effectively launched the fifth-generation network technology on the continent.  Meanwhile, network technology is presented as the primary tool that will empower the next wave of digital transformation by supporting virtual reality, augmented reality, artificial intelligence, and autonomous things. So, private actors are moving to allow the African youth to test the network while developing tech solutions. 

The 5G Mokki Tech Space network can serve international and local companies, provide creative-economy and technology-based jobs, and promote entrepreneurship based on the learning of the latest technology and hands-on projects that serve local conditions. Furthermore, this is supported by an extensive national and international collaboration with universities and companies,” said Douglas Ogeto, Ludique Works co-founder and CEO. 

Developed by Start North, the “5G Mokki Tech Spaces” concept was created during an academic program organized in partnership with Finnish University Aalto to develop real-life 5G apps.  According to the May 24 release distributed on behalf of Start North, Aalto is currently “in talks” with the University of Addis Ababa (Ethiopiaà and the African School of Economics (which has campuses in Nigeria, Côte d’Ivoire, and Benin) to deploy the “5G Mokki Tech Spaces”. “A project is underway to set up a 5G Mokki in a rural area in Zambia [...] to provide immersive learning and research in the field of agriculture,” we learn. 

Ruben Tchounyabe

Posted On lundi, 30 mai 2022 14:01 Written by

In the aftermath of the Covid-19 crisis, the competition got tougher in the African mobile financial service market. The competition was led by both conventional and unconventional service providers, which are aggressively introducing ever-diversified offers. The market is now witnessing an all-out battle for opportunities.  

In the past ten years, the mobile money sector greatly expanded in Africa. In 2012, less than 80 mobile financial services were present on the continent. This number rose to 173 with 621 million registered accounts and US$36.7 billion worth of transactions in 2021. The volume of transactions recorded that year was up by 23% compared with 2020 figures. 

In 2021, the volume of mobile money transactions rose by 39%, year-on-year, to US$701.4 billion. The rapid expansion of the market is attracting and supporting the emergence of new players, like fintech startups. Over the past five years, the number of fintech start-ups active on the continent rose significantly, and so did the transactions they processed and the financing they raised. Some of them have been able to affirm their positioning in their home countries and even launch international expansion plans. They have now become competitors to mobile money operators but, the battle between those two economic models will surely be long since both of them have their strengths and weaknesses. 

Investment volume

Since the launch of the mobile money in Africa in 2007, telecom operators have invested millions of dollars to upgrade the mobile network necessary for the transactions. They also invested in the deployment of agent networks and the development of efficient and secure software, databases, and systems to guarantee smooth transactions. 

Fintech startups have also made substantial investments but the volume is far less than that made by mobile money operators. Like mobile money operators, fintech startups also invested in the development of IT systems and agent networks to support their businesses. However, they do not have mobile networks to maintain regularly. So, they have less investment requirements. Nonetheless, they need to invest heavily in high connectivity to be able to track financial transactions in real-time. 

The offers 

Fintech startups are succeeding because they target underserved individuals and new markets like the micro-credit segment. For Said Bourjij, an expert in finance and development (French-speaking Africa and the Mediterranean basin) and Managing Director of Epargne Sans Frontière, fintech leverages digital tools to respond to users’ needs. Their offers are dynamic but don’t cover the whole financial sector, he adds. 

Over-time Mobile money has also evolved and can offer all the services offered by fintech startups. Mobile money operators like Safaricom’s M-Pesa, Orange Money, and MTN Mobile Money are already doing so in some countries. Apart from simple transactions, they added a spectrum of services like merchant and invoice payment, international transfers, micro-savings, microloans, etc. Their platforms are also dynamic. 

Thanks to the dynamic of its offers and its platform, M-Pesa became Safaricom Kenya’s main growth driver in 2021 by generating 38.3% of the operators’ annual turnover (US$2.5 billion). 

Accessibility 

According to the GSM Association (GSMA), mobile Internet penetration was 28% in sub-Saharan Africa in 2020, and mobile penetration was 46%.  In its report "The Mobile Economy Sub-Saharan Africa 2021", the Association explains that of the 1084 million people in the region, 303 million (28%) were connected, 206 million (19%) were not covered by a mobile network and 575 million (53%) were living in areas covered by mobile broadband networks but were not yet using mobile Internet services. 

The GSMA added that smartphones accounted for less than 50% of the number of mobile connections while feature phones accounted for 45% of all the mobile connections during the period. 

At the time, urban populations were more likely to use mobile internet than those in rural areas. So, fintech startups whose services were accessible mainly via the internet could only meet the needs of urban populations. On the other hand, mobile money operators are accessible to both urban and rural populations. So, they have an edge over fintech startups here.  

Mobile money is an enabler of many other services that can help solve critical socio-economic and environmental challenges, such as providing access to essential utilities, sustaining the livelihoods of smallholder farmers, and delivering rapid financial relief to vulnerable populations,” the GSMA explains. 

Fees 

Mobile money operators and fintech startups are almost offering the same services but they are not targeting the same niches. Some startups target the rural population and use affordable pricing as their main selling point in urban areas.  

Mobile money operators criticize the pricing strategy adopted by fintech startups but, in the end, it contributes to lowering fees paid by users. In countries like Senegal and Côte d'Ivoire, the pricing strategy adopted by fintech startups led mobile money operators to reduce fees on their mobile money services. 

In 2020, the GSMA was warning about the aggressive pricing strategy widely adopted by fintech startups. It then asked mobile money operators to diversify their income streams to avoid relying solely on fees paid by users. Indeed, in June 2020, providers that took part in the Global Mobile Money Adoption Survey reported that about 87% were generated by users’ fees. 

The GSM Association pointed out that mobile money operators’ heavy reliance on transaction fees could expose them to short-term shocks. 

“In addition to insulating mobile money providers from short-term demand shock, diversifying to high-value segments may also benefit users, as services can be offered at more competitive rates,” the association argued. 

Regulatory framework

In some markets, the regulatory framework forced telecom operators to create a separate entity that will manage their mobile money activities. The new entities are subjected to strict legal frameworks set by the central banks of the regions or countries where they operate. 

Depending on the type of services offered, there are legal requirements clearly defining the scope of their operations. Fintech startups that wish to offer similar services like the one offered by mobile money operators are subjected to the same regulation. In the West African Economic and Monetary Union (WAEMU), the central bank BCEAO strictly applies the regulation. 

The requirement to create a separate entity for mobile money operations may prove an advantage for telecom operators, who could thus be freed from the requirements to maintain telecom networks and just concentrate on innovating and creating added value. 

Even though there could be competition between mobile money operators and fintech startups, the GSMA praises their combined impacts on financial inclusion in Africa. It also encourages them to be more committed to users, whose choices will ultimately determine whether they are profitable or not. 

Muriel Edjo

Posted On samedi, 28 mai 2022 04:25 Written by

In Cameroon, cybercrimes have exploded but those acts are sometimes perpetrated by local parties. Therefore, by joining the convention, authorities want to be able to track cyber criminals wherever they are.  

In Cameroon, President Paul Biya signed, Monday (May 23), a decree authorizing the country’s membership in the Budapest Convention on Cybercrime. Drafted by the Council of Europe, the convention was signed in November 2001 and became enforceable on July 1, 2004. It is devoted to the fight against cybercrimes, including child pornography, copyright infringement, and hate speech. It also consecrates international cooperation in the fight against modern internet and information technology threats.

According to Cameroon’s National Agency for Information Technology and Communication (Antic), 3,105 cybercrime complaints, more than 5,000 fake social media accounts, and seven attacks on government websites were recorded in 2021. That year, the agency estimated the financial losses caused by intrusion into public and private administrations’ computer systems at XAF12.2 billion ( about US$20 million). 

The membership authorization comes after the national assembly’s approval last April 27. For Minette Libom Li Likeng (photo), Minister of Posts and Telecommunications, Cameroon’s membership in the Budapest Convention will allow the country to better protect its cyberspace, with the alignment of the December 12, 2010 cybercrime prevention law. It will also contribute to the implementation of a more repressive legal framework and help law enforcement officers identify and punish cybercrimes. 

Currently, in Africa, countries are taking action to protect themselves against cybercrimes and protect personal data. Many international summits have been held in that regard since January 2022. The continued mobilization of both private and public actors demonstrates the importance of the issue, particularly in a context marked by accelerated digital transformation on the continent. 

Ruben Tchounyabe

Posted On vendredi, 27 mai 2022 14:14 Written by
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