TechPression

Tag: Kenyan

  • Kenyan, Nigerian, and Tanzanian startups advance to Latitude59 finals, vie for €1M prize

    Kenyan, Nigerian, and Tanzanian startups advance to Latitude59 finals, vie for €1M prize

    The Latitude59 competition, a renowned event that showcases innovation and entrepreneurship around Africa, announced on November 15 that 10 promising startups have been chosen to compete in the final lap.

    A press conference announced the selection of these startups as part of a competitive process to showcase new ideas and promote entrepreneurship across the continent. During the event, startups can network with investors and partners.

    The winner will get to pitch at the main event in Tallinn, Estonia, where they will compete for a €1 million (about US$1.1 million) prize pool (approximately ₦900 million in Nigeria, KSh 162 million in Kenya, and TSh 2.75 billion in Tanzania).

    Early-stage firms need this competition to reach global investors and industry leaders. The Latitude59 event promotes networking and Africa’s startup environment.

    Read also: OPay awards ₦12 million scholarship to ABU students 

    Overview of Latitude59 finalists

    In May 2024, Latitude59, Estonia’s leading startup and innovation event, held its 12th edition, attracting over 3,500 attendees, including approximately 600 investors and over 900 startup representatives.

    Latitude59 was aggressively seeking early-stage entrepreneurs across Africa to pitch at its next competition, a publication reported last month. Latitude59 pitch competition prizes have been €1 million for two years.

    A total of 382 applications were received from 37 African countries, and the top 10 startups have been selected as finalists. These startups will pitch their innovative solutions at an event in Kenya on November 28, where the African winner will be determined.

    Selected Startups

    Eight of the selected ventures are from Kenya, showcasing a diverse range of innovative solutions:

    Paycloud: a neobank designed to help African MSMEs with payments, credit access, and aggregation.

    Roadrims: Offers reliable, efficient, and cost-effective logistics solutions.

    Twiva: A social commerce platform.

    VunaPay: Facilitates instant payments to farmers.

    Eco Nasi: Transforms pineapple pulp waste into high-quality vegan leather.

    Grekkon: Scales up moisture sensors for smallholder farmers.

    Read also: Bluesky’s rise: Can it overtake X as the top social media platform?

    Zerobionic: Develops a humanlike robotic arm to assist students with hearing impairments.

    NoMa: A tech platform that digitises school transportation.

    Zerobionic: Develops a humanlike robotic arm to assist students with hearing impairments.

    Also, two other startups from Nigeria and Tanzania have been selected:

    Afya Mama (Tanzania): Provides answers about maternal care and reproductive health via SMS and web app.

    AcemyX (Nigeria): An LMS that helps students prepare for exams with personalised learning tools and study materials. 

    Startups will compete in Kenya to advance to Latitude59 in Estonia. Emerging innovators can win a lot and gain international recognition.

  • IFC, Eni announces $210million to boost Kenyan Biofuel production

    IFC, Eni announces $210million to boost Kenyan Biofuel production

    The Italian Climate Fund (IFC) and Eni S.P.A. today announced a $210 million investment to expand advanced biofuel production and processing at the Kenyan subsidiary of Eni S.P.A. This will support the livelihoods of up to 200,000 small-scale oilseed farmers in Kenya, as well as the decarbonisation of industry worldwide.

    The investment consists of $135 million from IFC and $75 million from the Italian Climate Fund to implement the Italian Government’s Mattei Plan in Kenya.

    It will help Eni increase the production and processing capacity of advanced biofuel feedstock grown in Kenya by constructing new processing plants. Production of oilseeds, the primary feedstock, is expected to increase from 44,000 tons to 500,000 tons annually.

    Read also: Kenyan mobility startup, BuuPass plans significant expansion

    Oilseeds are produced on degraded land unsuitable for food production and farmed in rotation with food crops to help improve soil fertility. The initiative will also work with farmers, offering them inputs, mechanisation, logistics, certification, and training to assist them in producing oilseeds.

    The agreement was announced at the 2024 Africa CEO Forum in Kigali, Rwanda.

    Eni Strengthens Kenya Biofuels Value Chain

    Eni’s CEO, Claudio Descalzi, stated that by collaborating with the Italian Climate Fund and the IFC, the company strengthens the integration of Kenya in the value chain for biofuels and improves its agreed stock projects in Kenya, reaching up to 200,000 small-scale Kenyan farmers over the next five years. This collaboration is consistent with Eni’s strategy of using public-private partnerships to improve communities, produce long-term value, and forge honourable, enduring relationships with African nations.

    The Italian Climate Fund and the IFC are partners in Eni’s cooperation to further improve its agreed stock projects in Kenya. Over the next five years, this partnership will reach up to 200,000 small-scale Kenyan farmers, further strengthening Kenya’s integration into the biofuels value chain. Claudio Descalzi, CEO of Eni, said as much. “This collaboration matches Eni’s approach of utilising public-private partnerships to uplift communities, produce enduring value, and establish honourable, long-lasting relationships with African nations.”

    The Italian Minister of the Environment and Energy Security, Gilberto Pichetto Fratin, stated, “We welcome this first operation of the Italian Climate Fund established at the Ministry of the Environment and Energy Security and managed by Cassa Depositi e Prestiti.” “This first operation, in line with the inspiring principles of the Mattei Plan, captures two major priorities: addressing the growth of Kenya’s agricultural sector with an intervention of undeniable socio-environmental impact, improving resistance to climate change, and investing in the strategic biofuels supply chain, which is decisive for the future of transportation.”

    Improving the Production of Sustainable Biofuels”

    Over the past five years, the demand for biofuels has grown globally by around 6% per year as the transportation sector searches for ways to reduce its carbon footprint. The usage of biofuels in transport is predicted to more than quadruple to 9% by 2030 in a scenario with net zero emissions by 2050. Even while sustainable biofuels now cost more than traditional fuels, costs should decrease as more capacity is added and technology progresses. This new investment will aid these initiatives.

    Read also: Kenya’s booming EV sector faces threat from new taxes

    IFC will also provide advisory services that will support the development of the advanced biofuel value chain in Kenya, including promoting good agricultural practices and the professionalisation of farmer aggregators. ENI’s biofuel feedstock will receive International Sustainability and Carbon Certification (ISCC). ISCC is a globally recognised biofuel scheme with rigorous environmental, social, and economic sustainability standards audited across the supply chain. The project’s success can open up opportunities for replication elsewhere in Africa.

    The fund manager, Cassa Depositi e Prestiti, is responsible for providing the loan for the Italian Climate Fund. By Italy’s international climate commitments, the climate fund established by the Italian government (Fondo Italiano per il Clima) is intended to support public and private initiatives in emerging and developing nations that help them meet their environmental and climatic goals.

  • Kenyan content creators to start earning from Facebook

    Kenyan content creators to start earning from Facebook

    Kenyan creator earnings scheme is positive news for Kenya’s thriving content industry. Nick Clegg, who is in charge of global affairs at the company, and William Ruto, the CEO, agreed to start this project in June. It lets people make money from their exciting and unique social media material.

    According to reports, the initiative is the outcome of a year-long government campaign to enable content creators to get paid for their online work, similar to what is done on other platforms like YouTube and X. The statement was released following the President and Meta representatives’ meeting at State House Nairobi.

    “Kenyan content creators who meet the eligibility criteria will now earn from their Facebook and Instagram spaces as we start monetization by June this year,” Nick Clegg, President of Meta’s Global Affairs division, was quoted in a statement.

    Read also: Kenyans Now Pay VAT For Facebook Ads

    A New Era of Opportunity for Kenyan Creators

    President Ruto praised the action, pointing out that it will provide Kenya’s youth with more sources of income, and he urged Meta to enable the monetisation of M-Pesa.

    “Now content creators can begin earning from their imagination and creativity. I have kept my word to negotiate and get them fresh opportunities. We are banking on the digital space to create jobs for the millions of jobless youths in our country,” President Ruto said.

    The move comes as the Communications Authority of Kenya reports that Facebook has surpassed WhatsApp as Kenya’s most popular social media app, indicating huge earnings possibilities for creators.

    A similar announcement was made in December 2023. President Willia Ruto said the decision followed a trial plan with competent national creators. He said Meta would let more creators monetize their work so they can make a life.

    How will Kenyan Facebook and Instagram content providers be paid?

    In February 2022, Meta announced that content creators in 20 sub-Saharan Africa can make and earn from Facebook Reels. The participating nations were South Africa, Seychelles, Senegal, Rwanda, Nigeria, Kenya, Guinea, Ghana, Cape Verde, Cameroon, and Burkina Faso.

    Read also: Facebook now supports multiple profiles

    To qualify for the program, a creator must have at least 5,000 followers on their private Facebook profile or 10,000 followers on a Facebook page and at least five live videos on a profile or three on a page.

    For video content posted on a Facebook profile, organic followers must have viewed the content for at least 60,000 minutes in the last 60 days; for a page, this requirement is 600,000 minutes viewed in the same time frame.

    Per industry insiders, Facebook compensates content creators Sh1,074 ($8) to Sh2,685 ($20) per 1,000 views, and the average CPM (Cost Per Mile) in most African countries ranges in the lows of Sh1,074 to Sh1,342 ($10) because the marketing industry is underdeveloped when compared with countries like USA, Australia, Canada, and the UK.

    Facebook has overtaken WhatsApp as Kenya’s most popular social media app, according to new data from the Communications Authority of Kenya, indicating colossal earning potential for creators once the monetisation feature goes live.

  • Kenyan authorities initiate crackdown on unlicensed lenders

    Kenyan authorities initiate crackdown on unlicensed lenders

    In recent years, Kenya has witnessed a surge in digital credit services, offering convenient and accessible financial solutions to millions. However, alongside the proliferation of licensed lenders, unscrupulous entities have exploited gaps in regulation, leading to predatory practices and consumer exploitation. 

    In response, Kenyan authorities have initiated a crackdown on unlicensed companies, aiming to safeguard consumers and foster a healthier financial ecosystem. This article explores the impact of this crackdown, analysing its implications for the digital credit sector.

    The Rise of Digital Credit in Kenya

    Kenya’s digital credit sector experienced exponential growth fueled by widespread mobile phone penetration and innovative financial technologies. Platforms like M-Pesa revolutionized financial inclusion, enabling users to access loans instantly via mobile devices. This accessibility proved transformative, empowering individuals previously excluded from traditional banking systems to meet their financial needs promptly.

    Read also: Kenyan court freezes Flutterwave withdrawals

    Despite the benefits, the unchecked expansion of the digital credit sector led to the emergence of unlicensed lenders. These entities operated outside regulatory frameworks, engaging in predatory lending practices characterized by exorbitant interest rates, hidden fees, and aggressive debt collection tactics. Vulnerable borrowers, often lacking financial literacy, fell victim to spiralling debt cycles, exacerbating poverty and financial instability.

    Government Intervention: Crackdown on Unlicensed Companies

    Recognizing the detrimental impact of unlicensed lenders, Kenyan authorities embarked on a comprehensive crackdown to weed out illicit operators from the digital credit landscape. Regulatory bodies such as the Central Bank of Kenya (CBK) and the Communications Authority of Kenya (CAK) intensified enforcement efforts, targeting unregistered platforms and imposing hefty fines on offenders. This coordinated approach aimed to restore trust in digital credit services and protect consumers from exploitation.

    The crackdown on unlicensed companies yielded significant results, reshaping the digital credit landscape in Kenya. By dismantling illicit operations and imposing stricter regulatory oversight, authorities successfully reduced the number of unlicensed lenders operating in the country. As a result, consumers gained greater confidence in the legitimacy and safety of digital credit services, leading to increased uptake and usage among previously wary individuals.

    Enhancing Consumer Protection and Financial Inclusion

    Beyond curbing predatory practices, the crackdown on unlicensed companies bolstered consumer protection measures and promoted financial inclusion. Licensed lenders, now operating in a more regulated environment, were incentivized to adopt responsible lending practices, including transparent fee structures, fair interest rates, and borrower education initiatives. This shift contributed to improving financial literacy and empowering consumers to make informed financial decisions.

    Kenyan court orders Meta, moderators to settle

    While the crackdown on unlicensed companies marks a significant milestone in the regulation of Kenya’s digital credit sector, challenges persist. Adapting to evolving technologies and emerging threats remains an ongoing endeavor for regulatory authorities. Moreover, ensuring effective enforcement and compliance across the industry requires sustained efforts and collaboration between government agencies, financial institutions, and technology providers.

    In conclusion, the crackdown on unlicensed companies has played a pivotal role in shaping Kenya’s digital credit landscape, fostering a more transparent, responsible, and inclusive financial ecosystem. By prioritizing consumer protection and regulatory oversight, authorities have mitigated the risks associated with predatory lending while promoting the benefits of digital financial services. Moving forward, continued vigilance and proactive measures will be essential to sustain these achievements and unlock the full potential of digital credit in Kenya’s quest for economic empowerment and prosperity.

  • Apple employs over 23,000 Kenyan remote workers 

    Apple employs over 23,000 Kenyan remote workers 

    The President of Kenya recently said that Apple CEO Tim Cook told him in Silicon Valley that the company employs about 23,000 Kenyans, all of whom work from Nairobi, according to Kenya press reports.

    A closer look at this claim’s viability in light of Apple’s local and international operations has been prompted by the various conversations and reactions it has sparked on social media.

    Read also:  Apple explores Artificial Intelligence, Introduces Ajax and “Apple GPT”

    Direct/Indirect Employment

    The president’s description of their occupation suggests they work for Apple. Given Apple’s Kenyan presence, this raises immediate problems. 

    The tech giant does not operate directly in the country. Apple does not directly provide Redington with its products. Given the minimal presence of official Apple dealers and the domination of refurbished product resellers in Kenya, 23,000 direct employees seem odd.

    The allegation is further complicated by Apple’s Kenyan market share of less than 5% between January 2023 and January 2024. The workforce appears disproportionate to the company’s regional market presence. 

    Apple has 80,000 direct employees in the US, with a 61% market share among 330 million people. Given the volume of direct and indirect employment Apple creates in its primary market, this dramatic gap casts doubt on the assertion.

    Apple Pay, now available in Morocco

    Apple Developers vs Employees?

    These 23,000 people may be developers rather than direct employees, adding a fresh dimension to the analysis. 

    According to this study, Kenya has 60,000 professional developers, making 38% of them dedicated to Apple’s ecosystem unlikely. 

    It is inappropriate for the worldwide developer community and misaligned with Kenya’s business dynamics and technology landscape.

    According to the study, the president’s assertion is unlikely to involve Apple’s Kenyan workers. This allegation is unlikely because Apple has a small operating footprint and cannot hire so many workers in a small market. 

    One of the largest computer companies in the country, Safaricom, has only 5,000 full-time employees in FY19—more than twice Apple’s total.

    The president stated the number doesn’t fit Kenya’s tech industry demographics or mean “employment”. Developers at Apple are not workers.

    According to the President of Kenya, Apple employs 23,000 Kenyans. However, this appears to be a misconception of the company’s presence in the country. 

    Tim Cook and Apple must clarify. Apple has shaped the worldwide digital landscape, yet its direct employment or developer involvement with Kenyans is uncertain.

  • Mercy Corps funds Kenyan e-commerce Tappi with $1.5m

    Mercy Corps funds Kenyan e-commerce Tappi with $1.5m

    Kenyan digital commerce solution Tappi raises $1.5 million in an oversubscribed pre-seed round led by Mercy Corps Ventures and Chui Ventures. Digital Currency Group, SOSV, Resilience17, growX Ventures, Orbit Startups, Reflect Ventures, Google, Salesforce, and Zendesk angel investors and advisors participated in the round.

    The investment supports Tappi’s mission to empower African SMBs in digital commerce.

    Tappi uses AI and partners with mobile network operators and financial institutions to quickly create online storefronts for over 100 million African SMEs.

    Read also: Kenya-based Kotani Pay secures $2 million for internet-free remittances

    Tappi’s fast growth and innovative solutions

    Since its founding in 2022 by CEO Kenfield Griffith and Louis Majanja, Tappi has helped small businesses digitize by creating online profiles or websites. The app lets business owners create SEO-optimized websites in two minutes after providing the necessary information. Google prioritizes business visibility with 5,000 indexed business pages, allowing customer reviews.

    Griffith told the Press: “Our goal is to help businesses achieve visibility.” 

    The MTN-partnered digital commerce solution lets small businesses buy ads with airtime, overcoming credit card payment issues. Tappi simplifies business ad payment with a personalized data bundle of ad credits, data, and voice. With limited resources, businesses struggle to write compelling ad copies. The platform’s AI feature helps.

    Despite not being profitable, the e-commerce company will be. This is made possible by $2–$100 customer subscriptions. Adding $2–$19 subscribers and growing 19% month-over-month in business ads and data bundle subscriptions, the digital commerce company is growing.

    Kenfield Griffith thanks investors and shares Tappi’s mission to empower SMEs across Africa by creating a trusted online identity for customer acquisition, especially in overlooked service industries like food services, fashion, agriculture, health, and beauty.

    Energy startup, Kofa secures funding for sustainable energy in Africa

    Tappi affects African small businesses

    Tappi helped Nairobi’s Little Red boutique become a global fashion player. The boutique quickly went online using Tappi’s easy-to-use interface and powerful tools, reaching customers beyond its physical location. Sales increased, and international recognition increased.

    Urban and rural entrepreneurs benefit from digital commerce. A craftsman in a remote Nigerian village sold his handmade goods through Tappi’s extensive network. The platform’s collaboration with mobile network operators made transactions easy, allowing the craftsman to sell his work to a broader audience and boost his income and the local economy.

    Tappi helped Cape Town’s fast-growing food delivery service, Yebo Fresh grow even faster. Tappi enterprise tools simplified order processing, improved customer interactions, and found the best delivery routes. It improved business operations and garnered positive user feedback, which created loyal customers and word-of-mouth advertising. The startup’s success shows Tappi’s solutions can be used widely and in many situations.

  • Telegram is not operating in Kenya without a VPN

    Telegram is not operating in Kenya without a VPN

    Kenyan Telegram users have experienced occasional service outages for several days. At some times of the day, sending and receiving platform messages has been hindered. This issue has continued for a while, and the only workaround seems to be using a VPN configured to a different location, suggesting a regional issue.

    This problem with service interruptions happens simultaneously as a new hot topic. An announcement said that the current Kenya Certificate of Secondary Education (KCSE) exams were being leaked through Telegram channels before these frequent outages.

    This link raises an important question: is Telegram access being intentionally limited at certain times of the day to stop more leaks? In that case, these actions are done secretly, without any official announcement or legal reason. This leaves users confused and angry.

    Read also: Telegram users in Kenya face technical issues

    Kenyan Telegram users need a cause

    The other option is for Telegram to give its Kenyan users a straightforward reason if the interruptions are not the result of deliberate action. It’s worrying that these outages aren’t being made clear, especially since the site is essential for communication.

    On a larger scale, if it turns out that Telegram access is being blocked on purpose, it sets a worrying example. In Kenya, it would mean a move toward a more limited internet, where the government or other groups might feel free to block access to certain apps or websites whenever they want. The problem is made worse when there are no public announcements, court orders, or other forms of documentation. This goes against the principles of openness and accountability in government.

    Telegram introduces stories, for Premium subscribers

    This situation, therefore, raises two fundamental issues. At first, there needs to be instant clarity and openness from the appropriate authorities or Telegram about what these service interruptions are all about. 

    Additionally, it shows the more considerable effects of internet freedom in Kenya, stressing how important it is to closely watch and speak out for digital rights and freedom protection.

  • Kenya President opens House Kigali tech hub

    Kenya President opens House Kigali tech hub

    Kenya’s president, Paul Kagame, has officially opened Norrsken House Kigali on November 8, 2023. 

    The new Norrsken hub is housed on the historic École Belge site in central Kigali and marks the first adaptive reuse project in the area. Sweden’s Norrsken Foundation bet $20 million on the 12,000-square-meter site so that Kigali can become a hub for tech companies in Africa.

    Nigeria is a great place to try ideas and show that they work, said Niklas Adalberth, the founder and chairman of the Norrsken Foundation and 42-year-old Niklas Adalberth in his keynote address. Norrsken will open more hubs like the one in Kigali if the one in Kigali does well. 

    The foundation says that success means having billion-dollar impact businesses and a thriving group of businesses that can work together to make businesses that are good for the world and make money.

    This is excellent news for Rwanda, which needs private investment because its GDP is only $13 billion, and its state debt is rising. He told people at Norrsken Africa Week, “The country may be small, but the value we create may be very high.”

    A 24-year-old Adalberth co-founded Klarna, Europe’s most valuable private company. Leaving in 2016, Adalberth founded the Norrsken Foundation to encourage impact enterprises. He eventually sold Klarna for 1%. The Norrsken Foundation received half of this

    income. In 2016, Norrsken’s home became Sweden’s impact entrepreneurship hotspot. Using investors, companies, and talent, the foundation seeks to repeat Kigali’s success.

    The group bought a large hall from an old tram station in central Stockholm for its first two campuses. It was built on the 1965 Belgian school École Belge de Kigali grounds. 

    The foundation’s third property, a 10,000-square-metre Barcelona building, opened two weeks ago. Pascal Murasira, East Africa director, told Norrsken Africa Week that 1200 members have attended the Kigali campus since January 2022. First impact entrepreneurship and investment gathering outside Stockholm for Norrsken.

    Read also: Zambia tech minister announces readiness to be Africa’s next major tech hub

    Investment in Kigali

    Norrsken22, an independently managed African growth-stage VC, received $205 million to invest in African internet firms two weeks ago. Fund managers at Norrsken Africa Week included Norrsken22 partners last week. The Norrsken Foundation called a meeting of capital allocators and tech startups. Founders of Norrsken22 include the Foundation.

    Norrsken in Kigali hosted the first Africa tournament on November 8 and 9. Over 1,500 European, Southeast Asian, Middle Eastern, and African businesses, investors, government officials, and academics attended the 2-day networking event. 

    The $205 million Africa-focused growth stage fund Norrsken22 and early-stage investment firm Africa Seed Fund also participated. They were African businesses from Stockholm’s Norrsken Accelerator, a global impact accelerator.

    Uk-Nigeria Tech hub, Google partner to uplift African women tech founders 

    High private capital demand in Kigali

    Since 2009, Rwanda has aggressively positioned itself as a diverse East African investment hub. New investments are in tech. In 2021, the African Development Bank (AfDB)-backed the $30 million Rwanda Innovation Fund invested in and promoted East African digital startups. 

    According to Statista, Rwandan tech firms raised $1.9 million in 2022, while African startups raised the most ever. They were falling from $6.8 million in 2021—better in 2023. Eden Care, an insuretech, was the first Rwandan company accepted into YCombinator, while Kasha raised $21 million in Series B funding.

    The country needs funding. The new financial hub wants more. The investment funds in the country are part of a fintech scheme along with Flutterwave, Onafriq (formerly MFS Africa), Chippercash, NALA, and Paystack. 

    Before NAW, investors ate the first meal. The Reporters asked a young investor at the conference what her company was doing to look into its choices. Some of the first investors said that their venture capital company was looking for office space in Rwanda for a fund. The Kapatapault, Angaza Capital, and Renew Capital that Norrsken works with. An MoU signed at the Inclusive Fintech Forum set up ABAN’s catalytic Africa fund.

    Indecision plagues entrepreneurs. Media interviewed the e-logistics firm founder, who was impressed with Kigali but considering choices. She prefers a position near business operations that lets her access funds. “It’s a chicken and egg problem,” added the founder.

    The Norrsken proposal seeks to reconcile capital and founders.

  • Nairobi acquits Flutterwave of money laundering charges

    Nairobi acquits Flutterwave of money laundering charges

    A Kenyan High Court granted the Asset Recovery Agency’s (ARA) plea to abandon its last Flutterwave action. This implies the corporation is out of Kenyan legal jeopardy. The court denied the agency’s July 2023 plea to discontinue its second lawsuit against the Nigerian fintech, resulting in this verdict.

    There were claims of money laundering and fraud, which led to the court battle. Over $3 million was blocked for Flutterwave, Hupesi Solutions, and Adguru Technology Limited in August 2022. The ARA withdrew the prosecution after additional investigations found no wrongdoing by Flutterwave.

    Read also: Kenya clears Kora of Money Laundering And Card Fraud Allegations

    The judge warned the agency to commence the case before completing its investigations. Declared, “It was inappropriate, negligent, reckless, and absurd for an investigative agency to commence such serious proceedings without having completed investigations.”

    This court found the withdrawal lawful after reviewing all the facts. He said the action was withdrawn.

    The judge ordered the agency’s head and investigator to pay any civil liability “solely and personally” due to the poorly handled and pursued case.

    He stated this was due to the irresponsible, reckless, inconsiderate, and impulsive way this case was researched, and these proceedings were started and driven.

    Flutterwave, identified by the Central Bank of Kenya for operating without a remittance license, is relieved by the final case’s withdrawal. The corporation is expanding in Kenya and plans to center its East African operations in Nairobi.

    Flutterwave Denies Money Laundering Allegations

    Flutterwave rises after court ruling

    In order to expand in East Africa, Flutterwave announced its desire to open an office in Nairobi, Kenya, earlier this year. In the past, ARA lawsuits made it take longer for the Kenyan government to give the payments giant its working license.

    ARA held and released cash, including $52 million and $52.5 million when the first case fell, because it was having trouble in Kenya. The newly dropped case was the end of Flutterwave’s legal problems in the country.

    The ARA gave $3 million to Flutterwave and other groups that were charged because there were no signs of wrongdoing. Once the court rules, the company can spend and grow in the area.

  • MarketForce shuts down operations in three countries

    MarketForce shuts down operations in three countries

    MarketForce, a Kenyan B2B e-commerce company, has shut down operations in three of its five African markets and is just starting to build a social commerce business.

    MarketForce’s “super-app” called “RejaReja,” which lets small stores (mom-and-pop shops) order fast-moving consumer goods (FMCGs) directly from manufacturers and distributors and get loans, will only be available in Uganda after the company stopped offering it in Kenya, Nigeria, Rwanda, and Tanzania, according to reports.

    Nairobi will still be the company’s home base and the launchpad for Chpter, a social commerce spinoff that MarketForce has been working on to help merchants “turn conversations on their social media channels into more sales,” Tesh Mbaabu, who will be co-founder and CEO of both MarketForce and Chpter, told reporters when he confirmed the changes.

    Read also: Twiga fires 283 employees due to tough business environment

    Late last year, some venture capitalists broke their promises to give MarketForce Series A funding, which forced the company to cut back on operations and lay off workers in multiple rounds. This cash shortage happened during a global downturn in venture capital, which has made it hard to raise money.

    Companies like MarketForce have had to give up on growth at all costs because of a lack of cash and the current market. Instead, they seek ways to make money, push for bridge rounds, or raise money at lower prices. MarketForce just got $1 million through crowdfunding.

    In an earlier chat with Repo, Mbaabu said his company is restructuring to develop a viable business by delivering in high-demand locations and closing unprofitable routes. As liabilities mounted and their asset-heavy approach was capital intensive, the company had no choice but to close in the three markets.

    Uganda has been our finest market since we started moving toward profitability. Mbaabu stated he would keep it alive since we have exclusive distribution relationships with four big manufacturers and superior margins, allowing us to run a gross profitable company there.

    According to an investor update and reports, Uganda country manager Dennis Nyunyuzi has been appointed managing director and will oversee RejaReja’s operations.

    What’s next for MarketForce

    MarketForce released RejaReja, a SaaS retail marketplace for formal markets, in 2020. Informal traders and mom-and-pop shops can order goods directly from manufacturers and distributors for next-day delivery. It also provides financing based on transaction history. The company addressed stockouts, earnings instability, and lack of capital to develop this retail sector.

    MarketForce planned to tap the informal retail sector, which accounts for about 80% of household trade in sub-Saharan Africa, but Mbaabu says margins are low in expensive markets like Kenya and Nigeria, where competition is intense.

    “We are finding more profitable and high-margin segments, so we decided to enter social commerce,” said Mbaabu.

    E-commerce startup Sabi tops $300M valuation in new funding

    The Bottom Line

    MarketForce’s strategy shift emphasizes realistic market responses and sustainable development and profitability. Exiting markets to focus on high-margin areas and social commerce shows their versatility and commitment to succeed in changing business environments. This change coincides with industry trends where corporations are reconsidering growth-at-all-costs tactics for sustainability.