In the wake of ongoing connectivity challenges, voices across social media platforms are advocating for the adoption of Starlink in various African nations. Koffi Bentil, Senior Vice-President of policy think tank IMANI Africa, emphasised the need for Ghana to loosen its regulatory stance barring the service, stressing Starlink’s potential to provide uninterrupted internet access in the face of cable failures.

“Internet services are being gradually restored. I hope the authorities will not wait for another crippling problem. Please be proactive about getting Starlink into Ghana so we have options and never have to be crippled when a sea cable breaks,” he wrote on Facebook.

The current outage, caused by damage to at least three subsea cables including the West Africa Cable System, MainOne, and ACE sea cables, has triggered widespread outages and connectivity issues for mobile operators and internet service providers across the continent, leading to huge economic losses.

NetBlocks, Kentik, and Cloudflare have reported significant disruptions in eight West African countries, with Ivory Coast, Liberia, and Benin being the most affected. Ghana, Nigeria, and Cameroon are among other countries impacted, with several companies also reporting service disruptions in South Africa.

Africa’s biggest telcos MTN Group and Vodacom Group Ltd. said connectivity issues on undersea cable failures are affecting their services. Stopgap measures have since been implemented but service remains choppy and could take several weeks to fully correct.

Update on Submarine Cable Outage: West Africa Remains Open for Business pic.twitter.com/qdG8FFDAZB

— MainOne (an Equinix Company) (@Mainoneservice) March 18, 2024

Last December, Ghana’s National Communication Authority labelled Starlink illegal and the Elon Musk-backed service is also barred in South Africa and some other countries over regulatory disputes.

Tech and data management professional Mac Jordan raised questions regarding regulatory approvals for Starlink in Ghana, highlighting on X the need for legal redress amid the current subsea cable cuts affecting the region. The appeal for diversifying internet connectivity options to mitigate vulnerabilities has resonated widely.

In response to the escalating demand for reliable internet services, local businesses are leveraging Starlink to address the pressing needs of remote workers and businesses. In Cameroon, co-working spaces equipped with Starlink internet are offering an alternative to those grappling with connectivity issues at work.

As major internet outages continue to plague the continent, Starlink’s rollout in the African market marks a significant shift in the region’s quest for universal internet access. With its innovative approach, Starlink has been gaining traction, offering a lifeline to users in areas plagued by infrastructure challenges and unreliable terrestrial networks.

Driven by a constellation of thousands of Low-Earth Orbit satellites positioned just 550 kilometres above the Earth’s surface, Starlink offers broadband internet access with competitive speed and reliability. This constellation architecture allows Starlink to bypass the limitations of traditional geostationary satellites, resulting in faster data transmission and lower latency.

⚠ Confirmed: Live network data show a major disruption to internet connectivity in and around West and Central #Africa; the incident affects networks supplying telecoms via subsea cables to multiple countries and operators 📉 pic.twitter.com/KOfGpjL7jz

— NetBlocks (@netblocks) March 14, 2024

In Nigeria, Rwanda, and other African countries where Starlink has been deployed, users are experiencing steady internet connectivity amid the outages. Remote communities, previously underserved by traditional providers due to cost and logistical challenges, are able to gain access to high-speed internet via the service.

Despite initial concerns about affordability, Starlink’s long-term cost-effectiveness compared to traditional fibre optic and mobile internet providers is garnering attention. While the upfront costs may be higher for some users, the reliability and performance offered by Starlink justify the investment, especially in regions where internet downtime can have significant economic repercussions.

As the demand for reliable internet connectivity continues to rise across Africa, Starlink’s expansion plans are poised to address the continent’s connectivity gaps head-on, with commitments to roll out services in additional countries such as the Democratic Republic of Congo, Kenya, and Tanzania.

The post Elon Musk’s Starlink Is Having A Moment Amid Major Internet Outages In Africa appeared first on WeeTracker.

This programme also comes at a pivotal moment, coinciding with ongoing discussions of Uber’s potential investment in Moove, indicating a significant stride in the company’s trajectory. Global ride-hailing giant Uber is reportedly in discussions to invest up to USD 100 M in Moove, a significant development considering the tech giant’s recent partnership with the African vehicle-financing startup.

Founded by British-born Nigerian entrepreneurs Ladi Delano and Jide Odunsi, Moove uses a credit-scoring system to finance drivers across 9 markets to buy new vehicles for ride-hailing, logistics and deliveries using a percentage of their weekly income. The startup, valued at USD 550 M following a debt round last year that brought its total raise to ~USD 335 M, says 30 million trips have been completed in Moove-financed vehicles since launching in 2020.

However, recent complaints from drivers raise concerns about the fairness of Moove’s financing arrangements. Some drivers have faced vehicle seizures due to struggles in meeting loan instalments, shedding light on the broader issues within the partnership.

As talk swirls regarding Uber’s potential backing of Moove, the broader context of driver welfare issues adds nuance to the unfolding narrative. Recent grievances raised by drivers underscore the complexities inherent in the partnership between technology platforms and driver communities.

However, the ‘Moove Cares’ program, a NGN 500 M (~USD 320 K) initiative designed to support both businesses and households, offers fuel subsidies and comprehensive care packages to mitigate the impact of rising fuel and food prices.

Moove has committed to distributing free-of-charge ‘Moove Cares’ packages worth over NGN 150 K (~USD 100.00) to each of its customers. This initiative signals Moove’s commitment to addressing socio-economic challenges amidst Nigeria’s economic landscape.

While Moove’s potential partnership with Uber signifies growth opportunities, it underscores the importance of addressing welfare concerns raised by drivers. The success of ‘Moove Cares’ hinges on its ability to provide tangible support to affected stakeholders and foster sustainable solutions to ongoing challenges.

Moove’s proactive approach to corporate social responsibility reflects a step in the right direction, but ongoing discussions with Uber and driver grievances highlight the need for continued scrutiny and improvement within the mobility fintech sector.

The post Spiralling Living Costs Prompt Moove Intervention Amid Driver Welfare Debate appeared first on WeeTracker.

In the spotlight is Andreata Muforo, a Partner at TLcom Capital, a driving force behind transformative tech investments on the continent.

Despite Africa having the world’s highest proportion of women entrepreneurs, the tech ecosystem faces a significant gender funding gap, with solo female founders securing only 2% of last year’s venture capital.

TLcom Capital, committed to breaking barriers, actively supports underrepresented founders.

In this conversation with WT, Andreata discusses challenges, milestones, and opportunities, exploring how TLcom Capital collaborates with mission-driven companies, led by women and local founders, to address crucial funding gaps on the continent.

This detailed interview offers a unique perspective on diversity and inclusion in the tech sector during ongoing conversations for Women’s History Month.

What are the key challenges women entrepreneurs face in accessing venture capital, how can TLcom Capital contribute to overcoming these challenges, and why is this of significant importance?

Andreata: Female founders face a number of challenges when accessing capital.

Firstly, venture capital is a broadly male-dominated industry that relies on network effect and warm introductions for deal sourcing. Secondly, there is limited capital for women at the pre-seed stage, to even get started, which results in a pipeline of fewer female founders at the later stage.

Additionally, unconscious and conscious biases persist amongst investors on what makes a “strong entrepreneur”, which impacts their decision-making.

For example, there are certain “Alpha male” traits i.e. possessing a dominant personality or overselling yourself that some investors have identified as signs of strong leadership and research shows that men sell themselves more than women in situations such as pitches and application processes. 

To speak only about capital does not give the full picture. Many female founders are locked out of critical networks where ‘the deals are getting done’. Female founders need access to networks to establish commercial partnerships, access working capital and hire great talent.

At TLcom, we’re committed to tackling these issues not only from a moral standpoint but also because there is economic value being left on the table. Half of the global population are women, and we believe that there is a pipeline of talent that is constantly being overlooked and underrepresented.

If we take this into the context of venture capital, breaking down these barriers not only establishes a richer pipeline of female founders, but having diverse VC teams enables us to make better and more diverse investments which strengthens the ecosystem for stakeholders across the industry. 

How would you weigh the participation of women in the African VC and startup scene currently and what are the possible impediments that need dismantling?

Andreata: TLcom has been in the African tech ecosystem for well over a decade, and we have seen some growth in the absolute number of female founders as well as female VCs.

However, the proportion of women in the ecosystem has remained stagnant and we still have a significant gap when you look at the capital raised by female founders.

We’ve heard many female founders on the continent mention they’re over-mentored and underfunded and as a result, it’s vital that investors not only establish initiatives to support the ecosystem but also invest.

With this in mind, we’re intentional at TLcom about committing our TIDE Africa Fund II to target female founders alongside all entrepreneurs at seed and Series A stages but also collaborating with FirstCheck Africa at the pre-seed stage to ensure the pipeline of opportunities remains robust and inclusive. 

In terms of the demographics of fund management teams in Africa, a Disrupt Africa report noted that 40% of VCs investing in African startups between 2022 and 2023 had at least one female founder, partner, GP or Managing Partner.

While this is quite diverse, especially in comparison to the rest of the world, the question to dig deeper into is – how much capital do they have available to invest as many are still fundraising?

We’re getting to a position where a good proportion of the fund allocators have an awareness of the challenges female founders face and whilst there are still hurdles to overcome, this is a step in the right direction. 

How does TLcom Capital actively foster gender equality in the tech investment landscape, and what impact have these initiatives had on women-led startups?

Andreata: At TLcom, our dedication to fostering gender equality isn’t just a corporate initiative; it’s a reflection of our DNA as a company. With 60% of our partners being female and a majority of women on our investment committee, we’ve organically cultivated a diverse network that allows us to better support female founders and engage with the broader ecosystem.

Over the years, we’ve taken concrete steps to nurture this commitment. Our annual female founder summit, now in its fifth year, has become the largest annual gathering of women in tech across the continent, establishing a vital network for female entrepreneurs to benefit from the power of community and collaboration.

Our investment portfolio tells a similar story. From Okra to Pula, we’ve backed some of Africa’s most promising female-led startups, recognizing the massive potential and talent they bring to the table. As we move forward, we’re doubling down on our existing work to date, especially in terms of tackling the funding gap, which was demonstrated by our co-investment commitment to FirstCheck Africa’s debut fund.

As a firm, we’re well aware the gender diversity problem is not an issue which will be solved overnight; however, we’re fully focused on driving real change and establishing a more inclusive ecosystem where everyone has equal opportunities to succeed. 

As a woman in a leadership role in venture capital, what unique perspectives or contributions do you believe women bring to the VC landscape, and how can the industry further encourage diversity in its ranks?

Andreata: The equal participation of women in VC and in every part of the economy results in a net benefit in society. Any society that is neglecting or not adequately leveraging the talents, gifts, and knowledge of half its population is not operating at its full potential.

In VC, more female participation ensures that the investment decisions being made are more rounded, as they bring diverse and relevant views which results in better decisions.

Fewer women in VC as decision-makers create two key problems for female founders – firstly, a lack of understanding amongst investors of female entrepreneurs building “female-perspective” businesses, and secondly, a large majority of investor deal pipelines often sourced from other male-heavy investor networks.

The way to encourage more women’s participation in VC is to be intentional. A lot of research has been conducted that shows diverse fund management teams have higher returns. VC firms need to be intentional about how they hire and the diversity of the talent pipeline, the culture they create within their firms to retain and grow diverse talent. And finally, organisations need to hold themself accountable – what gets measured is what gets done! 

How does TLcom Capital actively work to increase the representation of women in leadership roles within the startups it invests in, and what impact does this have on the overall success of these companies?

Andreata: To increase representation of women in leadership roles within startups, the first thing that TLcom does is to raise awareness of the gender gaps and the benefits that a diverse team can bring to a company.

As you can imagine and to be expected, most startup founders are focused on getting to product market fit, acquiring clients, and ensuring they have the capital to scale their business, so it’s helpful to have someone flag the need to think about how to incorporate diversity as you build your organisation.

Additionally, because TLcom is a majority-women partner team, we can bring female representation at the board level of our portfolio companies. Most companies have women either as employees, partners, suppliers, or clients, so having a C-level that lacks women representation is a significant blind spot for a company.

Diverse teams working in an environment intentionally structured for them to thrive creates significant value for a company and its culture. A company’s people are its biggest asset.

The post IWD2024: African Women In VC Are Levelling The Playing Field One Deal At A Time appeared first on WeeTracker.

The post Nigeria’s Crypto Traders Take Business Underground Amid War On Binance appeared first on WeeTracker.

Facing shrinking prospects, startups reached a critical juncture: adapt or fade away. Many pivoted toward sustainability and profitability, prompting a reevaluation of strategies. At the moment, emphasis is being placed on prioritizing customer value, revenue, and sustainability, emphasizing the need to fix unit economics for lasting competitive advantages.

In an exclusive interview, we sit down with Segun Adeyemo, the Founder and CEO of SAVA Global, a growth partner for African startups and enterprise companies that has helped drive growth for LG, Zenith Bank, Payday, Kuda Bank, Foodcourt, OPay, Honda Nigeria, Chowdeck, and many others.

We delve into the nuanced challenges facing African startups. From economic uncertainties to the role of venture capitalists, Segun provides candid insights and strategic advice on navigating the ever-evolving landscape.

This interview been edited for brevity.

The Startup Landscape in Africa: A Reality Check

Q: Segun, let’s start with a reality check. How would you describe the current state of the startup ecosystem in Africa, especially considering the economic challenges and global shifts?

Segun: It’s essential to be pragmatic. The era of hype and FOMO has faded, and startups are facing real challenges. Many are struggling, and it’s crucial to reassess expectations.

Surviving the Storm: Sales, Cost Cutting, and Customer Retention

Q: Amidst these challenges, what survival strategies do you recommend for startups? How can they balance the need for sales with the imperative to cut costs?

Segun: Sales should be the primary focus. Startups must reassess operational costs, consider collaborations, and prioritize customer retention over aggressive user acquisition. It’s about finding that balance.

Economic Instability and the Currency Conundrum

Q: Economic instability, especially in Nigeria, has been a concern. How should startups navigate the devaluation of local currency, and are there alternative solutions worth exploring?

Segun: Economic instability poses a significant challenge. Exploring alternative currencies, considering crypto, and using platforms with multi-currency solutions can be strategic moves to mitigate risks.

VC Expectations and the Need for Realignment

Q: Shifting our focus to venture capitalists, what role have they played in the ska, and do you believe their expectations need realignment, particularly in the context of African markets?

Segun: VCs should take a significant share of the blame. Unrealistic expectations have been set. It’s time for a realignment, focusing on thriving industries like fintech, agritech, and climate tech.

Traits VCs Seek and the Future Outlook

Q: Considering the VC perspective, what traits are they seeking in startups? How do you see the future outlook for startups aligning with these expectations?

Segun: VCs seek ambition, profitability, and impact. Startups must align themselves with these expectations to attract investment. Despite challenges, there’s hope if they adapt and find their niche.

A Call for Realism and Strategic Thinking

In this insightful Q&A with Segun Adeyemo, we’ve gained an understanding of African startups’ challenges and opportunities. The interview serves as a call for realism, urging founders to adapt, strategise, and align with the expectations of both the market and venture capitalists. As the landscape evolves, the key to success lies in creativity, adaptability, and a strategic approach to growth.

The post Surviving The Crunch: A Growth Expert’s Take On African Tech’s New Reality appeared first on WeeTracker.

The post Kenya Is Struggling To Find Winners After Startup Funding Boom appeared first on WeeTracker.

The Nigerian government took action Tuesday, blocking the websites of major crypto platforms including Binance, Forextime, OctaFX, Coinbase, Kraken, FXTM, and others. The world’s largest crypto exchange Binance confirmed its website is inaccessible in Nigeria though its app remains functional for some users.

The Nigerian Communications Commission relayed the directive to telecom companies, reports local news outfit Premium Times citing presidency and telecom sources. The latest restriction placed on crypto sites signals a departure from recent moves that indicated Nigerian regulators were warming up to crypto after a previous lengthy ban.

Nigeria’s crypto scene was buzzing after the Central Bank lifted a three-year ban, signalling a positive turn for the industry. Startups like Yellow Card and Quidax celebrated the newfound freedom, planning expansion and offering promotions to attract users.

The move aimed to create a regulated environment, fostering trust and growth in the crypto space with Nigeria ranking high in terms of adoption globally, largely driven by the country’s economic woes as locals seek refuge from rising inflation, currency depreciation, and dearth of gainful employment.

However, the tide turned abruptly. The government justified its latest move to block crypto platforms by citing concerns of forex market manipulation and illicit fund movements, linking these activities to the depreciation of the local currency. The naira tumbled to an all-time low of NGN 1,900 per dollar at the parallel market on Tuesday, amid speculation and uncertainty about supply constraints in the markets. Government figures are convinced the currency plunge is tied to manipulation of rates on crypto exchanges.

“Binance, facing regulatory showdown in many countries, and causing disruptions in the currency market, should not be allowed to dictate the value of the naira, not on its crypto exchange platform. Other crypto platforms such as Kucoin and Bybit should be banned from operating in our cyberspace. FX platform Aboki should be re-banned”, Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, commented recently.

“The EFCC and the CBN should move against these platforms trying to manipulate our national currency to Ground Zero. Crypto should be banned in our country or else this bleeding of our currency will continue unabated,” he added.

Prior to the restriction, Binance, one of several crypto companies caught in the crosshairs, made an effort to mitigate potential issues by imposing limits on peer-to-peer transactions, particularly the USDT/NGN pair.  The company also issued a statement pledging cooperation, vowing to remove users engaging in manipulative behaviour, and working closely with local authorities to address compliance issues.

The latest clampdown on crypto players coincides with a broader directive from the National Security Adviser and the Central Bank to combat speculative activities in the foreign exchange market. This shift raises questions about the sustainability of the prior briefly favourable regulatory environment and its implications for the future of crypto in Nigeria.

Traders, now grappling with the restrictions, are seeking alternative platforms, noting the potential impact on stablecoin prices and expressing concerns about the overall stability of Nigeria’s evolving crypto industry.

Image Source: chormail/123RF // Image Effects by Colorcinch

The post Nigeria Has (Again) Fallen Out With Crypto Over The Slump Of The Naira appeared first on WeeTracker.

Q4 2023 Highlights:

• Revenue: USD 59 M, a 2% YoY decrease, but a 28% increase in constant currency.
• GMV: USD 233 M, down 8% YoY, but up 21% in constant currency.
• Operating loss: USD 4 M, marking a 90% YoY reduction.
• Adjusted EBITDA loss: USD 1 M, down 99% YoY.
• Liquidity position: USD 121 M, decreasing by USD 27 M.

Full Year 2023 Highlights:

• Revenue: USD 186 million, an 8% YoY decrease, but a 20% increase in constant currency.
• GMV: USD 750 M, down 20% YoY, but up 1% in constant currency.
• Operating loss: USD 73 M, showing a 64% YoY reduction.
• Adjusted EBITDA loss: USD 58 M, down 68% YoY.
• Liquidity position: USD 121 M, decreasing by USD 107 M.

In a letter to shareholders, Jumia’s CEO, Francis Dufay, acknowledged the challenging economic landscape in Africa due to global upheavals, high inflation, and currency depreciation. Despite these challenges, the company implemented a transformative strategy in 2023, leading to a significant improvement in financials.

Dufay highlighted the key achievements, with Adjusted EBITDA loss decreasing to USD 58.2 M and loss before tax from continuing operations dropping to USD 98.6 M for the full year 2023. The liquidity decline slowed from USD 285.4 M in 2022 to USD 106.9 M in 2023, leaving Jumia with USD 120.6 M in liquidity at the end of 2023.

The CEO emphasized the deep transformation undergone by the company, focusing on efficiency, better unit economics, and strategic decisions regarding business activities. Notably, Jumia discontinued food delivery operations, redirecting resources to its physical goods business.

Dufay expressed confidence in Jumia’s ability to achieve growth in 2024, emphasizing the importance of efficiency and reduced marketing spend. The company successfully executed large promotional events with minimal marketing budgets in 2023, proving that growth in e-commerce does not solely depend on marketing costs.

Looking ahead, Jumia is committed to bringing the business back to growth in 2024 while further reducing losses. The CEO highlighted the company’s focus on growth priorities, strategic efficiency, and unlocking untapped potential in priority categories.

The post Jumia’s Full-Year Financials Hit By Cutbacks & Headwinds Amid Wins appeared first on WeeTracker.