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.

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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.

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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

The post Lipa Later, Autochek Get Greenlight; 400+ Digital Lenders Stuck In Kenya Crackdown 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.

This question is particularly interesting in the context of Africa, the only region in the world where there are more female than male entrepreneurs. Women make up 58% of the continent’s self-employed population, founding and running millions of small businesses which drive the informal economy, a sector that represents 40% of Africa’s GDP and is the main driver of economic growth on the continent. 

So how do we invest in African women to accelerate progress and feed this whole proverbial village?  At the ecommerce business I cofounded, which is designed to serve mass-market African consumers, we partner with 36,000 small business owners who serve as delivery points for our customers’ ecommerce orders. More than 80% of them are women, so I have a front-row seat, experiencing the entrepreneurial energy of thousands of indefatigable African businesswomen every day.  

And we’ve discovered a magic wand that fits nicely in their palms: smartphones.  

Before becoming Copia agents these women made $2-10 per day.  With a smartphone, these same women increase their incomes by more than 70% which is transformational; it can mean the difference between poverty and middle class.  A study in Peru corroborates our experience, finding that smartphones increased household consumption by 11% and reduced poverty by 8%.

It was way back in 2003 when Nobel Laureate Muhammad Yunus said that the quickest way to get out of poverty was to have a mobile telephone.  But at that time hardly any low-income women had smartphones due to the cost.  Finally today more than 20 years later, smartphones are now readily available and most importantly, affordable.  Seventy-three percent ( 2023 Kantar study of Copia customers) of middle and low-income Kenyan consumers now own smartphones, a leap from under 10% a decade ago. 

Not only does mobile-phone access reduce poverty, but smartphones drive gender empowerment; it has been shown that women with smartphones make more independent decisions.  Health outcomes also improve as women who own smartphones better understand sexual and reproductive health.  They overcome the socio-economic challenges facing women in rural areas, make strides as business owners, boost their economic independence and drive economic growth in their communities.

Given women are most often responsible for family household purchases, it makes sense that 75% of Copia’s ecommerce customers are women. With smartphones in hand, suddenly these women are transformed into informed, empowered global consumers. Copia board member and ex-CEO of Jumo Africa, Buhle Goslar, explains “Copia plays a critical role in reducing gender disparities by enhancing women’s digital access to education, health, financial services and household goods.  The potential to profoundly improve gender equality is incredibly inspiring.” 

So this International Women’s Day, let’s find ways to get more smartphones into their hands.  Enabling them to take part in emerging sectors such as e-commerce is a strategy for driving millions of dollars of newly-created wealth into the pockets of African women, the most potent driver of growth on the African continent. 

About the author: This article is authored by Tracey Turner. Tracey is Chair and co-founder of Copia Global

Feature image courtesy: Jorge Gardner on Unsplash

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Allen Qu has led the growth of companies to unicorn status, first with Beijing-based Proptech ke.com (NASDAQ:BEKE) and later with African Fintech company OPay, a financial services subsidiary of Opera Software AS (NASDAQ: OPRA).

Ridwan Olalere, CEO & Co-Founder of LemFi, said, “We are excited to have Allen lead our expansion into China. Following his previous successes, we are confident in his contribution. His addition to the LemFi team is a significant step toward fulfilling our promise of international payments for everyone.”

Allen will utilize his professional experience to secure key partnerships, expand LemFi’s customer base in the Chinese market, and continue to innovate the product to meet the needs of this new audience.

“There are over 60 million Chinese diaspora over the world, and many of them are underserved by those traditional financial companies. As a fintech company with deep understanding of immigrants, LemFi is in a unique position to combine its know-how and state of the art technology, to bring a real change into the market” Allen said.

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