Interbank transactions have gotten faster in Nigeria due to the launch of the NIBSS Instant Payment (NIP) scheme in 2011. The NIBSS Instant Payment Scheme is an infrastructure that many experts have praised as being one of the best in the world.
It is rather unfortunate that this speed of execution means that fraudsters have been able to execute with more speed. Nigeria has lost $13 billion to cybercrime in the last 10 years, and in the last nine months of 2020, it has lost $12 million to electronic fraud.
Nigeria’s banking space is one of the most important sectors, as these companies are given the task of providing essential services to several people. A growing trend has been observed, interestingly, of how banks are moving from physical branches to having an online presence.
It is however not clear how much Nigerian consumer behavior has taken on this trend, investors are staking their bets that these companies will usher in the future of banking sectors.
With various hooks like micro-lending, efficient customer lending, free transfers, etc, Nigerian banks plan to capture segments of the market that have undergone relative neglect by traditional banks. Although, fraud is still the bone of contention between both traditional banks and digital banks. The newly launched Stellas digital bank aims to protect a major loophole.
An executive with extensive experience in the field of investment banking space, led by Bukola Solomon, Stellas microfinance bank started in 2017 to provide convenient access to financial services. It soon became one of the leading financial services providers in Nigeria.
“We have seen a lot of instances where people need to make transactions but they want it to be private and confidential. With our Ghost Mode feature, you can execute confidential transactions, it also serves as a security feature. Transactions can be encrypted such that, even if anybody can gain access to your phone or that of the recipient, your details are still secure”, Solomon said.
Stellas plan to protect its users’ identities when they make transactions, to guard against identity theft, and ensure that there is privacy and security.
$219 million was lost to identity theft in 2020, this usually stems from different forms like social media activities, credit cards, or emails. Solomon explained that transferring money to a stranger you bought things from could be a potential loophole for identity theft.
Bukola also said that all transactions are fully covered by the National Deposit Insurance Commission (NDIC) and will comply with anti-money laundering and anti-fraud regulations.
Solomon spoke about the Ghost Mode feature, he said the company has integrated a budgeting feature that will help users create better economic plans for themselves.
“We have 10,000 users already and we hope that it reaches 200,000 in the first month of its launch”, Solomon explained.
It is very likely that Stellas would be giving its digital banking services to its already existing customers, but would be refreshing to see how it will hit 200,000 users in one month.
Nigeria’s digital banking space, graced by the likes of Kuda, Fairmoney, Sparkle, and Carbon, is set to have a very exciting look.
Stellas Digital Bank Launches ‘Ghost Mode’ to Fix Major Fintech Fraud Loophole in Nigeria
Mr. Green Africa Secures Latest Round of Funding
Mr. Green Africa a Kenyan plastic recycling startup has secured a major round of funds by driven investors and key industry stakeholders. As a result, this will help to scale its business model across the African continent.
Mr. Green Africa is a circular recycling startup that has a technology-driven plastics collection model. This helps waste collection at the source, absorbing informal waste workers, micro-entrepreneur, and consumers into a formal value chain.
The startup works hand in hand with brand owners to realize its sustainable packaging goals. In other words, it accesses ethically source, locally produced Post Consumer Recyclate (PCR).
It is on a mission to turn waste into value hence, integrating and strengthening a localized circular economy in emerging markets.
An undisclosed amount of funds from DOB Equity, Global Innovation Fund, and Unilever was initially raised by Mr. Green Africa.
DOB Equity, a Dutch family-backed impact investor in East Africa, and Global Innovation Fund are returning investors. In addition, they now have Water Unite Impact Investment Vehicle.
This is a partnership between Water Unite and Wellers Impact, the BESTSELLER Foundation, AlphaMundi Group, Minderoo, and DOW.
This investment will give room for the startup to build its success and also scale its business model.
By improving the output quality of recycled plastics to a food-grade standard and increasing their capacity, the startup will be contributing to a larger circular plastic economy.
In conclusion, the company is planning to create a new sourcing stream by introducing consumers to deposit waste back into MGA collection systems.
It also plans to increase the capacity of its production plant to process 15,000-20,000 MT plastic waste in the East Africa region.
ProXalys a Senegalese Retail-Tech Raises$150k Pre-Seed Funding
ProXalys, a Senegalese startup that specializes in digital transformation in B2B commerce, has raised US$150,000 in pre-seed funding.
This pre-seed funding is for expansion across the country then, across the West African region.
ProXalys was founded in 2021 by Thierno Sakho with the aim to modernize and empower informal traders in Senegal. Also, digitizing the whole value chain and re-inventing supply chain processes.
The tech startup has 3 tools for managing and capturing financial flows in real-time on a daily basis. This is an order-taking app for informal distributors and an IT system administrative management.
It is also a supply chain logistics management system. Hence, it provides a procurement service for products used everyday.
It is crucial for the informal sector to undergo digitization. The goal of the tech startup is to help informal traders withstand the dual of digital and distribution revolution which is created by large multinationals.
The intention is to strengthen and modernize the distribution channels by multinationals operating on the continent.
The $150,000 pre-seed funds is from Haskè Ventures. This is a venture builder in Dakar that is focus on transforming the startup landscape.
ProXalys will use this capital to reinforce its technology and development of its physical infrastructure. This will include the consolidation of its fleet of vehicles and warehouses.
With over 100 users, the startup is also working on boosting agricultural value chain. Also, it intends to expand its reach in Dakar and major cities of Senegal with a focus to reach the whole of the West African region.
This goal will be achieved with the recent funds from the pre-seed investment.
Danbatta Says The Media will Continue Being Strategic Partners With NCC
Mass media, either in print, broadcast, online or other genres will continue to remain central and important stakeholders to the Nigerian Communications Commission (NCC) in its faithfulness to delivering its regulatory mandates as written in the Nigerian Communication Act (NCA) 2003 and other policy measures.
Prof. Umar Danbatta, NCC’s Executive Vice Chairman and Chief executive Officer (EVC/CEO), disclosed this on Tuesday as he greeted a delegation from the top echelon of the Management of National Economy, a media organization, who paid the Commission a courtesy visit at its Abuja headquarters. Danbatta said NCC remains firmly dedicated to enhancing its already established connection with the media, speaking through the Commission’s Director of Public Affairs, Dr. Ikechukwu Adinde.
The fact that the commission, through its regulatory actions in the telecom ecosystem, maintains a crucial position in the official architecture erected to boost national economic development, is undeniable, according to Umar.
According to EVC, the Commission has done effectively in the eyes of stakeholders, and it acknowledges the importance of the media in its successes. He stated that the commission’s relationship with the press has been friendly over the years and that the commission will never take the press for granted or act in any way that might jeopardize the relationship.
Going through the memory lane of the importance of media support in the achievements of NCC, the EVC declared that the positive, prominent, accurate, timely, and adequate reporting of the Commission by a broad spectrum of the media agency, eased Commission’s burden in putting its activities in the public space and enabled its efforts to have the support of other important stakeholders onboard in the telecommunication sphere.
Danbatta thanked the media for its peak response in reporting the notable contributions of telecoms to GDP, especially the significance of the sector’s achievement in taking Nigeria out of recession.
Also, EVC recalled the noteworthy media reportage of the measures put in place for the deployment of 5G services in Nigeria, particularly the successful sale of the 3.5GHz spectrum rollout of the 5G services. He implored all newsmen and other telecom professionals to increase the Commission’s voice in the publicity and sensitization of the citizens and all stakeholders on the importance of the new generation network towards the economic development of the nation.
The NCC executive said that the Commission enthusiastically yearns for a big collaboration will all stakeholders in the line of telecommunication to ensure goal-oriented reporting of the unfolding national developments in the digital economy sector, due to the benefits that citizens, businesses, and the nation at large can derive from.
Danbatta thanked the Management of National Economy for the visit, commendations, and support to the Commission for a long time and also expressed the commitment of NCC to sustaining a favorable relationship with the media.
The delegation from the National Economy was chaired by Chief Mike Okpare, who was the Vice-Chairman. Other members of the delegation are Fadilah Ismail, Head of Advertisement; Kirk Leigh, Chief Operating Officer; Bayo Amodu, Head of Stories; and Cees Harmon, General Editor.
Keystone Startup Advantage 2022 for Tech Startups and SMEs
The keystone startup advantage (KSA) program 2022 is a social enterprise initiative that aligns with the United Nations Envision #2030 sustainable development goal (UN SDG). It is a special incubator program with offerings to attend to the needs of startups/SMEs.
The UN SDG (8) states that:
“To promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all”
What to expect in the Keystone startup advantage program
- 3 months investor readiness program- this program will use a blended approach as it tends to offer a hybrid option virtually and physically. The modules will be tutor-led and self-study with an e-learning platform that is friendly. The program will be an intensive one with designs to have a group and one-on-one mentoring and coaching sessions during the period.
- A platform to bring together innovative SMEs and Tech startups with potential investors.
- An opportunity to win a 3 million naira grant to support business operations of 3 successful SMEs/Startups.
- First-hand connection with Tech thought leaders and listening to their success stories.
- Getting access to skills and knowledge that will help fast track their businesses to the next growth phase.
- Participation in a Demo day where entrepreneurs get to pitch their ideas to selected investors.
- A chance to be a part of a startup community/ecosystem and access the opportunities and network it offers.
Requirements
- The focus will be on startups/SMEs in fintech, creative, education, agro, health, and other potential growth sectors. Sectors with technology-driven and innovative ideas/solutions that will attract the interest of investors. Investors can be both locally and internationally.
- Startups and SMEs to be considered are those that have gone past the ideation stage. Also, those in the validation phase or have scaled through the validation phase.
KSA Program Application
Applications will be open by January 31, 2022, for eligible and interested participants to apply here.
In conclusion, through the keystone startup advantage program, the vision as a bank is to impact 1000 startups in 5 years by impacting 100 annually.
Amidst Fintech Boom, Analysis Shows How African Banks May Still Have An Advantage
Without a doubt, Africa is currently undergoing a ‘Financial Revolution’ caused by new startups in fintech. Traditional financial service providers, banks appear to be scrambling to keep up with the trend.
For a long time, banks had the opportunity to reform the financial sector. However, due to the competition provided by fintech companies, they have been slow till now. How can these financial institutions possibly catch up and gain an advantage? According to a recent report by CR2, a Dublin-based financial software vendor, this is an important talking point.
Africa’s fintech takeover is being fueled by advances in mobile internet usage and revenue from international venture capitalists, according to the paper titled “Africa’s Fintech Transformation: Traditional Banks Can Still Gain an Edge”.
The success of M-Pesa in Kenya, which was able to emerge as a compelling case study on the sustainability and scalability of financial technology on the continent while not being supported by any VC funds, piqued investors’ interest in African fintech.
As a result of this, foreign investors have crowded to the continent, bringing with them billions of dollars from years back which have mostly gone into fintech startups. Some of which are Paystack, Chipper Cash, and other fintech startups are now giving traditional banks a run for their money. Many thanks to partnerships with some globally-recognized financial players like PayPal and Visa, the rush continues to grow in favor of African fintech.
Although, this does not necessarily mean that African banks have been rendered completely powerless in the face of impending revolution. As the new report by CR2 already said, some of the biggest banks on the continent went into a state of panic early and ever since, have begun to improve on their ‘legacy infrastructure’ and at the same time building new ones, just to be able to meet more unbanked customers. However, there is more they can do. CR2 recommended the below as a way African banks can gain an advantage in the face of the impending digital revolution happening in the African financial economy.
1. African banks should look into considering offering a seamless digital training experience for their customers.
2. They should widen their service offerings to unbanked market segments.
3. African banks should look into providing day-to-day payment options for customers and also include innovative remittances and lifestyle banking.
4. They should pick a digital banking platform vendor that supports Open API banking.
5. African banks should operate on both smartphones and USSD to expand access to segments of Africa’s population, with or without the connectivity of Wi-Fi and other mobile phone features.
6. African banks should also connect ATM access to continue to give access to cash parallel to online payment options.
4th Edition of Africa Tech Summit Set to Hold Live in Nairobi
The 4th edition of the Africa Tech Summit will hold live in Nairobi, Kenya on the 23rd-24th of Feb 2022. An opportunity for the African tech ecosystem to finally be able to connect again in person.
The leading African tech event is again ready to network and provide unrivaled insights and business opportunities across the 3 summits.
It will be bringing together tech leaders and international players from the African continent under one roof.
About the Africa Tech Summit
This 2022 edition will be hosting 3 tracks which include
- Africa Start-up Summit
- The Money and Defi Summit and
- Africa Mobile Summit
This will drive interaction and show a future line of sight across a range of sectors.
As funding into African tech start-ups was increasing in 2021, the Africa Start-up Summit keeps showcasing the rapid movement of startup ecosystems.
It was unpacking key trends and insights for 2022 with leading investors, corporates, and startups displaying investment opportunities.
Looking at the exponential development of Fintech and the use of cryptocurrencies across Africa, the Money and Defi summit will feature African fintech leaders, platforms, and thought-leaders.
This will be done with the support of Celo and VerifyMe as they take a deep dive into opportunities in Fintech, Cryptocurrency, and Decentralized Finance (Defi) on the continent.
Lastly, the Africa mobile summit with the support of Gebeya will give a cross-sectional view of new technologies. Also, solutions and growth opportunities across the big mobile and digital landscape.
The African tech summit (ATS) is synonymous with connecting industry leaders and driving investment and business forward.
ATS is happy to be back in person and it’s more exciting as it expands the summit in Kenya with support from partners across Africa.
The event will be connecting more than 500 tech leaders over 2 days from across the African tech ecosystem. There will be 3 summits, expo, workshops, ventures showcase, deal room, and networking opportunities.
The Super early bird tickets are available and limited. Grab yours here before it’s gone.
Mecho Autotech Raises $2.15M to Expand Its Multi-Channel Service Capacity
Y Combinator-backed Mecho Autotech connects car owners with quality vehicle repair and maintenance providers. The company has raised a $2.15 million seed round.
The funds will be used to “grow its multi-channel service capacity, engineering team, and marketing budget for B2C acquisition,” according to the company.
Mecho Autotech, which was founded by Olusegun Owoade and Ayoola Akinkunmi, has built a network of approved in-house and third-party mechanics with client affordability (of enterprises and retail customers) in mind, according to Owoade.
“So we created a network of vetted technicians across 35 states in Nigeria to address the country’s poor vehicle maintenance culture,” he explained.
“We also devised an insurance strategy because we are aware that motor insurance is required.”
“So, if we have an insurance plan with an annual maintenance plan built-in, it’s essentially replacing for the after-sales package that individuals who buy new cars get.”
According to Owoade, Mecho Autotech chose to work with business clients first since it allowed the company to fine-tune its service.
He explained that these clients, who own large fleets, typically work with multiple workshops and spend more than $30 million each year on auto repairs and upkeep.
They will, however, interact with a single business, Mecho Autotech, which will handle all of their workshops.
Shuttlers, Moove, Tolaram Group, and Kobo are among the companies that have onboarded over 7,000 third-party mechanics across three workshops in Lagos that serve B2B customers.
It charges a 15% commission fee, with 10% coming from service charges and 5% from spare parts charges.
A portion of the seed money would be used to increase this capability. It will also aid in the scaling of Mecho Autotech’s mobile application, which was introduced last month for its B2C customers.
The two-year-old company says it wants to reach 25,000 users this year and will charge them a monthly, quarterly, or annual subscription fee.
To get to this level of success, the CEO stated his firm has a success-based agreement with the Google Play Store, where it will use a pay-per-download model in exchange for the platform promoting Mecho’s app.
Another idea is to deploy mobile services to meet retail clients at their location if they do not choose to visit a Mecho Autotech workshop or one of our partner garages.
A portion of the seed money would be used to increase this capability. It will also aid in the scaling of Mecho Autotech’s mobile application, which was introduced last month for its B2C customers.
The two-year-old company says it wants to reach 25,000 users this year and will charge them a monthly, quarterly, or annual subscription fee.
To get to this level of success, the CEO stated his firm has a success-based agreement with the Google Play Store, where it will use a pay-per-download model in exchange for the platform promoting Mecho’s app.
Another idea is to deploy mobile services to meet retail clients at their location if they do not choose to visit a Mecho Autotech workshop or one of our partner garages.
According to the company, the round was “oversubscribed by over 300%”.
Investors involved in the seed round include Future Africa, HoaQ Capital, Cathexis Ventures, V8 Capital, Silver Squid and Tekedia Capital.
LSETF Partners MEPB to Host Summit, Invite Tech Innovators to Proffer Solutions to Unemployment
The Lagos State State Employment Trust Fund (LSETF), in partnership with the Lagos State Ministry of Economic Planning and Budget (MEPB), will conduct the second edition of the Lagos Employment Summit with the goal of closing the state’s unemployment gap.
The summit will take place at Eko Hotel via Zoom on March 3 and 4, 2022, with the topic “sustainable employment creation strategies: joint action and prosperity for all.”
The 2022 summit will comprise 90 speakers, 15 plenary sessions, presentations, and breakout hearings, all of which will focus on progressive economic and social solutions to the state’s unemployment issues.
According to Teju Abisoye, executive secretary of the LSETF, sustainable job creation strategies are a much-needed conversation among industry players in the entire socio-economic space, and the event will feature a variety of speakers with diverse backgrounds in the entrepreneurial, advocacy, governmental, and private sectors.
“We share the belief that addressing unemployment is a shared obligation of the government, corporations, and individuals,” she said.
“As a result, we are always excited to partner and work as much as possible, and this summit further positions us in the correct direction.”
The summit will be hosted by Lagos State Governor Babajide Sanwo-Olu, with over 70 speakers from the public and private sectors speaking on topics such as the future workforce, women’s economic empowerment as a tool for economic growth, the orange economy, and critical areas that drive youth employment, among other topics.
Bola Adesola, chairman of the LSETF; Sam Egube; Aloysius Uche Ordu, director of the Africa Growth Initiative; and Nnamdi Ezeigbo, CEO of Slot Systems Nigeria, are among the confirmed speakers.
In addition to the discussions and debates, there will be an innovation challenge, dubbed the Lagos State Employment Summit Innovation Challenge, in which tech innovators will propose innovative ideas to help Lagos State create more jobs.
Pitch submissions, judge evaluations, application shortlisting, and the announcement of the finalist and winners who will receive funding will all be part of this process.
Clinics will also be held to provide young professionals with cutting-edge skills for the workplace of the twenty-first century.
Although the summit is free, those interested in attending must register online at www.lagosemploymentsummit.com.
US Consulate to Organise Drone Soccer Competition in Lagos Schools
On Saturday, the United States Consulate General in Lagos staged Africa’s first drone soccer competition in partnership with the Global Air Drone Academy and the Lagos State Ministry of Education.
In the fiercely contested game, eight girl-led teams were chosen from 71 student teams from public high schools in Lagos Education District 1’s Agege, Alimosho, and Ifako Ijaiye neighborhoods.
The tournament was won by the Pace Setters Team from Ijaiye Housing Estate Senior Grammar School.
Alisgrams Team from Alimosho Senior Grammar School and Alpha Team from Abesan Senior High School took second and third place positions respectively.
The top three teams in the Drone Soccer Competition each received a prize of a $1,500 STEM lab for their schools.
U.S. Consulate Public Affairs Officer Stephen Ibelli, speaking at the tournament’s grand finale, emphasized the relevance of STEM education to Nigeria’s future prosperity and economic competitiveness.
The event, he continued, was created to give children with high-quality technology learning opportunities and to pique their interest in math and science, as well as STEM-related vocations.
“We are ecstatic to be partnering with the Lagos State Ministry of Education and the Global Air Drone Academy to not only bring practical, hands-on STEM education to the Lagos school district but also to give representing schools the opportunity to show off their STEM skills in drone soccer, the world’s newest sport,” Ibelli said.
One of the program’s main goals, according to Eno Umoh, Co-founder of the Global Air Drone Academy in the United States, was to educate impoverished communities, particularly young girls, about the effect they may have in STEM disciplines.
“We are ecstatic to be at the forefront of Africa’s newest burgeoning e-sport.” Drones are a fun and inventive way to encourage students to pursue higher education and employment.
The drone soccer competition was a follow-up to a series of drone technology and innovation events.
In 2021, the Lagos Education District 1 hosted a STEM program for 500 pupils and a capacity-building workshop for 50 instructors on effective approaches to teaching STEM subjects.
Drone Soccer is the world’s newest e-sport, in which players use flying quadcopters to play full-contact soccer in protective plastic exoskeletons. In 2018, the World Air Sports Federation (Fédération Aéronautique Internationale) sanctioned Drone Soccer as the only educational robotics competition that is also an international sport.