Amazon currently has 74 job openings advertised in the country while Microsoft and Google have fewer openings, with 11 and three roles available, respectively.

Collectively, these big tech giants employ nearly two million people globally, with Microsoft contributing around 220,000 employees and Google approximately 182,500.

As of the end of 2023, Amazon boasted the largest global workforce among the three companies, with over 1.5 million employees.

Amazon has identified South Africa as a key market for expansion, with plans to launch its local marketplace later this year, following its announcement in October 2023. Sellers in South Africa can already register to sell products through the platform.

Despite anticipation surrounding the launch, experts predict a gradual rollout similar to Amazon’s strategy in other regions, suggesting that initial product variety may not match that of the US marketplace.

Damon Bush, an equity analyst at M&G Investments, said pricing on Amazon’s platform is likely to align closely with competitors like Takealot, as Mybroadband previously reported. Andy Higgins, managing director at Bob Group, echoes this sentiment, emphasizing that consumer experience will be pivotal in the competition between Amazon and local players like Takealot.

Microsoft established its first South African office in 1997, a decade before Google’s entry into the market. Both companies have pitched their tent in Bryanston, Johannesburg, with Microsoft employing around 500 staff members.

Google initially operated from shared office space at The Campus in Bryanston before moving to its dedicated premises eight years later.

In February 2022, Google announced initiatives to support startups, SMMEs, and nonprofits in South Africa, committing USD 500 K in funding and training to organizations such as Gift of the Givers and Food for Life South Africa to aid in economic recovery.

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The saga began with Nigeria’s pursuit of information from Binance, including details on its top users and transaction history. This move, aimed at curbing alleged illicit financial flows, devolved into the detention of two Binance executives, now identified by WIRED as Tigran Gambaryan, a US citizen and Nadeem Anjarwalla, a dual citizen of the UK and Kenya. Both officials had flown into Nigeria for negotiations after a government order blocked access to Binance and other crypto sites in Nigeria.

Gambaryan, a former US federal agent renowned for his role in high-profile cryptocurrency investigations, was leading Binance’s criminal investigations team. Anjarwalla, on the other hand, served as Binance’s regional manager for Africa, overseeing operations in the continent.

Their detainment, which commenced on February 26, raised eyebrows globally, as neither Gambaryan nor Anjarwalla was formally charged with any crimes. Instead, they find themselves caught in the crossfire of Nigeria’s broader crackdown on cryptocurrency exchanges.

Nigeria’s central bank expressed concerns over tax revenue losses from unregistered crypto exchanges and accused Binance of facilitating illicit financial activities, amounting to a staggering USD 26 B.

Cryptocurrency adoption is on a fast rise in Nigeria as Africa’s largest economy grapples with a weakening currency and soaring inflation. There, the volume of crypto transactions grew 9 percent year-over-year to USD 56.7 B between July 2022 and June 2023, according to a report by Chainalysis, a notable New York-based blockchain research firm, placing Nigeria among crypto markets globally.

The situation further escalated with Nigeria’s decision to ban cryptocurrency exchanges, blaming them for the devaluation of the national currency, the naira. Industry stakeholders reject this notion, contending that “crypto is a convenient scapegoat for Nigeria’s self-inflicted economic problems.”

Despite efforts from Binance to collaborate with Nigerian authorities and ensure the executives’ safe return, the standoff persists. Binance refrained from commenting on the accusations or demands made by the Nigerian government, choosing instead to focus on working towards a resolution.

The detention of Gambaryan and Anjarwalla underscores the challenges faced by cryptocurrency exchanges operating in regulatory grey areas. The situation also highlights the complexities of international relations in the digital age, where technology and finance intersect with legal and diplomatic realms.

In November of the previous year, Binance entered into a settlement agreement with American prosecutors. Under the terms of the deal, Binance consented to pay a historic USD 4.3 B settlement to resolve allegations of money laundering. Additionally, the agreement mandated Binance to undergo rigorous and continuous oversight from US regulatory authorities.

As the standoff in Nigeria continues, anxieties mount for the families of the detained executives, who plead for their safe return. Gambaryan’s wife described the ordeal as the “hardest days” of her life, while Anjarwalla’s wife emphasized his role as a devoted husband and father, urging authorities to allow him to come back home, reports WIRED.

With the situation at a standstill, the fallout between Nigeria and Binance serves as a cautionary tale, illustrating the potential consequences of regulatory clashes in the rapidly evolving landscape of cryptocurrency and digital finance.

Featured Image Credits: Coinpaprika

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The Digital Financial Services Association of Kenya (DFSAK), representing digital loan providers, acknowledges the recent issuance of 19 additional licenses but emphasizes the need for clear CBK guidance to accelerate the process.

Since March 2022, CBK has received 480 applications for digital lending licenses, with 51 approvals granted and 429 pending due to “pending documentation” issues. Kenyan buy-now-pay-later startup Lipa Later and Nigerian cars procurement platform Autochek are among notable names in the latest batch of licensees.

DFSAK, addressing challenges faced by digital credit providers (DCPs) entering regulation for the first time, requests CBK to provide guidance notes similar to those issued by the Office of the Data Protection Commissioner in December. Kevin Mutiso, DFSAK’s chairman, emphasizes the importance of proactive measures, reports Business Daily, suggesting that guidance notes would enhance the quality of submissions, streamline the review process, and improve compliance in the sector.

The recent issuance of 19 licenses follows almost a year after the previous batch of 12 and nearly two years since CBK mandated the mandatory registration of DCPs to supervise sector operations.

The latest batch of licensees also include Azura, Chapeo, Chime, Creditarea, Decimal, Dexintec, Factorhouse, Fezotech, Fortune, Lobelitec, Maralal Ledger, Marble Capital, MKM Capital, Pi Capital, Senti Capital, Ubapesa, and Zillions Credit.

The increase in applications from 401 reported last March to the current 480 indicates growing interest in the digital lending space. DFSAK members have adapted to the CBK (Digital Credit Providers) Regulations, 2022, including restrictions on listing defaulters below KES 1 K.

Digital loans have gained popularity for their easy application process, providing quick cash without collateral for borrowers facing emergencies. CBK’s regulation of this space aims to address public concerns about digital loan pricing, unethical debt practices, and the abuse of personal information.

The new regulation dictates that digital lenders must disclose all charges, fees, interest rates, and total credit costs to customers, with CBK clearance required for any rate variations.

Featured Image Credit: Moolah

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In an internal communication to employees cited by trade publication AgFunderNews, Gro Intelligence disclosed its inability to pay them, raising concerns about the company’s financial stability. Menker, although no longer the CEO, retains two board seats and will maintain “ongoing responsibilities” within the company.

The recent upheaval follows Gro Intelligence’s decision to lay off 10% of its workforce at the end of January. The company has been actively seeking additional capital through a convertible bond to address financial challenges, aiming to secure a bridge until more consistent revenues are realized.

Insiders attribute Gro’s predicament to a challenging funding environment and a perceived mismatch between its product and market demands. The company’s ambitious pursuit of bespoke consultancy-style projects, coupled with mis-hires and the absence of a CFO until recently, is seen as contributing to its financial woes.

The company, founded in 2012 by Sara Menker, initially gained recognition for its AI-powered insights catering to diverse clients, including food and ag companies, governments, insurers, investment banks, consulting firms, and universities. In 2021, Gro Intelligence was named in TIME’s 100 Most Influential Companies list, ushering in a wave of global recognition.

A notable setback came from unsuccessful attempts to position itself as a food security platform for specific countries, as well as engaging the U.S. government.

Industry observers suggest that Gro Intelligence, like many startups, may have struggled by attempting to be too diverse, needing to find a more focused niche in the market. Despite garnering significant investment, including an USD 85 M series B round in January 2021, the company’s recent challenges underscore the importance of aligning its product offerings with market demands.

Gro Intelligence, which claims to have unintentionally built the world’s largest climate data platform, gathers data from various sources, including governments, trade organizations, and financial markets. The company utilizes this data to provide actionable insights, such as accurate crop yield predictions using satellite imagery, rainfall data, and other environmental factors.

The recent leadership change and financial difficulties at Gro Intelligence raise questions about the company’s strategic direction and its ability to navigate the evolving landscape of climate tech. Industry experts emphasize the need for startups in this sector to focus on specific business pain points and bring in experienced operators to ensure sustained growth.

The post From TIME100 To Turmoil: Top Kenyan Agtech In Major Shakeup Amid Struggles appeared first on WeeTracker.

Although the bill isn’t expected to be tabled before this year’s elections, Mpho Sadiki, Group MD at Network International, emphasizes the industry’s eagerness for its enactment. He underscores COFI’s potential benefits, especially in fostering low-risk, rapid innovation in fintech.

Designed to consolidate and streamline financial legislation, COFI will affect all financial institutions, from banks and insurers to credit providers, advisors, and even non-financial entities like telcos and retailers.

Sadiki comments, “A lot of work and consultation has gone into this legislation… In essence, it gives regulators the scope to govern institutions based on their activity.” He further explains that COFI will shift from the current sectoral approach to an activity-based one, ensuring uniform regulation for similar activities across different institution types.

Despite some resistance to additional regulatory burdens, Sadiki argues that COFI will create a level playing field. He emphasizes, “COFI is a big deal because it removes the limitations of who can provide services, opening up participation and injecting much-needed competition and innovation into the industry.”

For fintechs like Network International, providing payments infrastructure services, COFI presents opportunities for collaboration with traditional providers and merchants. Sadiki believes this will benefit both the market and consumers.

Sadiki elaborates, “South Africa has a mature and excellently regulated financial services sector… COFI stands to offer our industry far more opportunities than whatever inconveniences may come with revised or new regulations.”

COFI’s inclusive approach extends to instant payment mechanisms like PayShap, aiming to boost financial inclusion beyond traditional banking. Sadiki sees this as an opportunity for diverse participation, driving competition, and building trust in the financial system.

Addressing the impact on outsourced payment services, Sadiki emphasizes that compliant fintechs, like Network International, can provide regulators with confidence. This ensures rapid deployment of new offerings without concerns about restrictions or compliance issues, signalling a move towards true open banking.

Sadiki notes that COFI is in line to offer the industry more opportunities than inconveniences, paving the way for a more innovative and competitive financial landscape.

Featured Image Credits: RegTech Africa

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The CAK’s credit market inquiry disclosed that competitors in the microloan segment have been gradually stepping back, adjusting their loan sizes upward, reacting to the market entry of Fuliza.

The CAK report noted that while M-Shwari, a savings and loans service also powered by Safaricom in partnership with local lender NCBA Group, is widely used, Fuliza stands out with the highest number of active users, showcasing its rapid growth since its launch in January 2019. During this period, other providers increased their loan sizes, indicating a form of market segmentation, reports local publication Business Daily.

Between January 2019 and March 2020, Fuliza’s entry caused a significant shake-up, with disbursements growing by 232 percent and the total disbursement value rising by 213 percent, the CAK notes. The overdraft product emerged as the largest in the digital credit market, sidelining several competitors.

During the review period, three out of five digital credit providers experienced a decline in the number and total value of disbursements, while all providers saw an increase in average loan size. Although CAK did not provide Fuliza’s comparative loan size, it remained unchanged.

The competition watchdog suggests that this shift allowed Fuliza to expand its share of the extensive lower-value loan market after competitors retreated.

In the six months ending September of the previous year, Fuliza’s disbursement value surged by 32.8 percent to KES 419.2 B (~USD 2.8 B), and the user base reached 7.5 million, according to Safaricom’s latest disclosures. The average disbursement size, however, decreased by 18.7 percent, reflecting the platform’s focus on micro-loans.

Despite the traction in micro-loans, Safaricom’s earnings from Fuliza declined by 40.3 percent to KES 2 B (~USD 13.6 M) from KES 3.4 B (~USD 23.2 M) due to tariff reductions in September 2022. The restructuring of fees included waiving the daily maintenance fee for customers repaying within three days and up to a 50 percent reduction for other customers.

Safaricom CEO Peter Ndegwa explained the changes aligned with the company’s goal of transforming lives and ensuring Fuliza’s intended purpose.

The review was partly driven by the new administration, addressing concerns about Kenyans negatively listed by Credit Reference Bureaus. It also involved a deal allowing defaulting Fuliza customers to enrol in a credit repair program.

Fuliza, a joint effort by Safaricom, NCBA, and KCB, enables M-Pesa customers to complete transactions with insufficient funds in their accounts, reinforcing the trio’s dominance in the digital credit market alongside other products like M-Shwari and KCB M-Pesa. These three platforms boast market shares of 25 percent, 34 percent, and 15 percent, respectively, per CAK data.

While the established incumbents firm up their grip on the market, challenger upstarts face a bleak outlook. A recent report by market intelligence firm Stears highlighted that fintech investors have shirked Kenya in the past five years, unconvinced by the prospects of fintech startups amid Safaricom’s near-monopoly in the market.

The report also argues that the dominance of Kenya’s top telco in mobile money, via the ubiquitous M-Pesa platform, makes it unlikely for fintechs and banks in the country to displace Safaricom’s well-defended consumer payment empire anytime soon.

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The report notes Kenya secured merely 8% of the continent’s fintech investments from 2019 to 2023. In contrast, Nigeria led with 39%, Egypt with 16%, and South Africa with 20%.

Possible factors contributing to Kenya’s lower fintech investment priority include the thriving green-tech sector, which has attracted 45% of Africa’s clean-tech investments since 2019. Stears also highlights Safaricom’s near-monopoly in the market, stating that the dominance of Kenya’s top telco in mobile money, via the ubiquitous M-Pesa platform, makes it unlikely for fintechs and banks in the country to displace Safaricom’s well-defended consumer payment empire anytime soon.

“The telco controls about 97 per cent of mobile money wallets market share, thus most fintechs would struggle to compete for the consumer market,” the report reads, thus making the consumer financial landscape less appealing to investors.

The report suggests fintechs and banks in Kenya face challenges beyond investor priority, including barriers for about 49% of local Micro, Small, and Medium-sized Enterprises (MSMEs) in accessing finance, exceeding the African average of 40%. Compliance constraints and funding issues contribute to the struggles of Kenyan startups.

“Close to 80 per cent of start-ups often die within the first year of operation, while only three to five percent make it beyond the one year period of survival,” the Communications Authority of Kenya noted last year.

Safaricom’s dominance in the consumer payment sector is expected to persist, with fintechs likely focusing on other areas, rather than competing directly. “Fintechs would then tend to focus on other critical user segments: Merchants, large enterprises and legacy financial institutions,” the report reads.

To remain relevant, the report emphasizes Safaricom’s need to collaborate with financial institutions to deliver advanced financial services like insurance, pensions, and asset management. The Communications Authority of Kenya suggests that partnerships across sectors can alleviate challenges for MSMEs, enhancing financial control and operational efficiency.

Featured Image Credits: Consultancy Africa

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“Agency Seven Seven has successfully led negotiations on behalf of former staff members of Twitter Ghana Ltd.,” stated the firm in a recent statement. The negotiations centred on securing a fair settlement and repatriation expenses for foreign staff.

The layoffs in Accra marked a significant shift from the initial positive reception in 2021 when Ghanaian President Nana Akufo-Addo welcomed Twitter’s entry. Musk’s strategic move to dismiss nearly the entire African team, just over a year after the office’s opening, was part of broader global staff cuts under his leadership.

Negotiations were marked by back-and-forth, with initial termination letters offering a month’s notice without mentioning severance packages. Subsequent communication improved terms to a month’s notice plus two months’ severance, falling short of Musk’s tweeted promise of a three-month severance offer on Nov. 4, 2022.

Agency Seven Seven’s managing partner, Carla Olympio, emphasized the resilience of her clients throughout the prolonged negotiation process. Although the case drew attention from Ghana’s employment ministry, the final terms were determined through direct negotiations between the company and the legal representation of the aggrieved employees.

“My clients are relieved to put this behind them and look to the future,” said Olympio, declining to disclose specific details of the settlement.

Musk’s massive global staff reduction, which saw over 6,000 layoffs, included the African contingent, numbering fewer than 20, who had recently moved into X’s Accra office. Agency Seven Seven confirmed the successful negotiation of redundancy settlements and repatriation expenses, without specifying the payout amount.

“They are very pleased to finally be able to get their due, put this behind them and look to the future,” said Carla Olympio. Agency Seven Seven indicated that negotiations with X commenced after the BBC covered the story.

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