TechPression

Tag: Kenyan

  • Kenyan innovators to compete globally in Underdog Tech Award

    Kenyan innovators to compete globally in Underdog Tech Award

    The “Underdog Tech Award” was made by inDrive, a well-known global mobility and urban services provider, to recognise and help potential tech startups from emerging markets. This international award is meant to honor and reward the perseverance of entrepreneurs who have started successful tech startups despite facing big problems because of where they live.

    The first Underdog Tech Award will likely significantly affect Kenya, becoming increasingly known as an innovation hub in the East African region. This project shows how important Kenya is to developing new technologies and its commitment to leading regional innovation efforts.

    The Underdog Tech Award was made strategically to support technology startups that face problems like having few resources, being unable to get funding, and being left out of significant startup ecosystems in places like the United States, Israel, and Europe. The award aims to find startups that could make a positive difference in their communities and have good growth chances.

    Read also: Aurora Tech Award 2024 Opens for African Tech Women

    The Underdog Tech Award application process

    The Underdog Tech Award entry period started on September 19 and will last until December 1, 2023. Startups from Kenya and other parts of the world are urged to send their applications during this time.

    In the next step, which will start in December 2023, the award organizers will choose the top 20 candidates from the list of nominees.

    Kenyan Underdog Tech Award jury member Fatma Nasujo, Wasoko’s Global Head of Corporate Operations, is essential.

    Mark Loughran, Group President of inDrive, said the organization wants everyone worldwide to have access to growth and success tools. He pointed to inDrive’s Aurora Tech Award for women in IT as an example of their dedication to aiding others.

    InDrive’s Loughran said, “Now we have set up an award for “underdogs.” Still losers at inDrive, we’re proud. We support smart new enterprises that improve the planet. We’re glad to provide the platform and funding they need to flourish.”

    The Underdog Tech Award winner receives fame and $60,000 in prize money. All startups who apply will receive feedback from venture and investment funds to help them grow. Shortlisted candidates will receive PR assistance, input from prize judges, and training from industry experts.

    Finally, the inDrive Underdog Tech Award will support technology businesses that overcame regional obstacles. The award’s focus on global equity and innovation will influence Kenya and other emerging countries. Please apply for this opportunity to be recognised and supported as an entrepreneur.

    About inDrive

    inDrive is a global transportation and urban services platform headquartered in Mountain View, California, USA. Over 175 million people have got the inDrive app, and it was the second most downloaded mobility app in 2022. In addition to ride-hailing, inDrive offers many urban services, such as freight delivery, task help, courier delivery, and job search.

    inDrive works in more than 40 nations. It helps local communities through its peer-to-peer pricing model and community development programmes, which help with education, sports, arts and sciences, gender equality, and other essential projects.

     

  • Uber unveils “Electric Boda” in Kenya as future e-hailing

    Uber unveils “Electric Boda” in Kenya as future e-hailing

    In Kenya, Uber is now in the business of selling electric bikes. Reuters reports that the e-hailing company announced the start of Electric Boda, a fleet of electric motorcycles riders in Nairobi that will be used to take people around.

    As part of the project, about 3,000 electric bikes will be given to riders in Nairobi over the next six months.

    Imran Manji, Uber’s head of East Africa, said of the launch, “We are doing our part to help the transition to eco-friendly mobility products and to support national sustainability goals.”

    Manji said that with Electric Boda, trip prices will decrease by another 15% to 20%. Manji said, “When Electric Boda comes out, it will be one of the most affordable ways for Kenyans to get from one place to another, with prices 15-20% lower than our current product.”

    Read also: Uber introduces audio recording feature in Ghana

    Kenya’s move

    With this climate-friendly fleet, Uber is quickly positioning itself as a company for the future. This comes at a time when climate activists’ goals have made their way into national and international policies in every part of the world.

    In a statement, Uber said, “Drivers’ operating costs will go down by 30–35%, and platform users will pay 15-20% less than they do for a regular Uber motorbike trip.”

    But Uber won’t be running the day-to-day operations of the fleet. It said in its statement that the job will be done by Greenwheels Africa, an e-mobility business that specializes in making motorcycles run on electricity.

    “The company will handle all logistics related to the bikes, including maintenance and charging,” the statement said. “Reports say that Greenwheels Africa plans to add ten more charging spots in Nairobi by the end of the year.”

    Greenwheels Africa manages motorbikes, including charging and replacing dead batteries.

    Although Uber and its fleet partner want to sell the bikes to users in the future, Greenwheels Africa will lease them through “a collaborative partnership between Greenwheels Africa, Uber, and the riders.”

    Uber Middle East and Africa general manager Frans Hiemstra stated, “Now is the time to take solid steps that enhance sustainable practices, and as a business, we are committed to being part of the collective efforts to reduce the carbon footprint. “Through the launch of Electric Boda on our platform, we are proud to provide an option for emissions-free mobility in Kenya,” he said.

    Uber makes unexpected profits in Q2 2023

    Uber is switching to Electric Boda

    Uber has long been pushing for an electric future, especially in Kenya, one of the few major African nations that has not opposed motorbike extinction. Kenyan President Williams Ruto vigorously defended electric motorcycles in July, promising to boost their purchase and lower financing costs.

    Hiemstra stated in March that Uber wants 25% of its car kilometres to be electric by 2030, starting in South Africa, but he did not mention motorcycles.

    The move comes as the world moves away from gasoline, which has powered automobiles, motorcycles, and generators for a century. War, turmoil, and coups in many oil-rich regions have made the future of the once-powerful oil industry increasingly grim.

    In the past few years, global economies have also started to see electric cars as the next big thing. As a result, many leaders have set aside billions of dollars to invest in chip and battery development, design, and future manufacturing.

    Uber said that by 2040, it will be a business with no pollution. This is the company’s first electric car in Africa.

  • Kenyan court orders Meta, moderators to settle

    Kenyan court orders Meta, moderators to settle

    A Kenyan court ordered Meta, Facebook’s parent company, and content moderators to settle their lawsuit.

    Content moderators sued Meta for unjust dismissal. According to court reports, Meta and the content moderators have 21 days to settle their dispute out of court.

    One hundred eighty-four content moderators are suing the corporation and two subcontractors. They claimed Sama, a subcontractor, fired them for unionising. The plaintiffs claimed they were blocklisted from applying for similar roles at Luxembourg-based Majorel, the second subcontracting firm. After Facebook changed its contracts, this happened.

    Read also: Meta launches SeamlessM4T AI to translate, transcribe 100+ languages

    Meta and content editors must follow the court’s order

    The court’s order is meant to help the parties agree without going through an official trial. It gives both sides a chance to agree outside of the courtroom.

    The Employment and Labour Relations Court has told the people involved in the case to try to agree outside of court through mediation. The order, signed by both the lawyers for the plaintiffs and the lawyers for Meta, Sama, and Majorel, said that both sides should talk to each other to settle the dispute without an official trial.

    Willy Mutunga, Kenya’s former chief justice, and Hellen Apiyo, Kenya’s acting labour commissioner, will mediate. They will help people talk and negotiate to find a solution. The court gave both sides 21 days to agree. If they can’t agree within this time, the court will decide, which could lead to a hearing.

    Meta, Sama, and Majorel did not respond right away to requests for opinions on the matter, though.

    Meta launches open source language model Llama 2

    Kenyan law issues for Meta

    A Kenyan judge concluded in April that Meta moderators could pursue their action against Meta, even though Meta has no official presence in Kenya.

    This case could alter how the corporation interacts with global content reviewers. The company has global moderators. Graphic content shared on the platform is their responsibility. This case could affect how Meta interacts with content moderators elsewhere.

    Meta is being sued similarly across the continent. A former moderator at Sama, a freelancer, sued the corporation, claiming she worked in poor conditions. A rights group and two Ethiopian researchers are suing in another case. They claimed that Facebook’s parent company spread violent and hateful Ethiopian content.

    Meta responded to these legal actions in both circumstances. In May 2022, the vast tech business claimed it required its partners to provide the best working conditions in the sector in response to a case alleging poor working conditions. Meta responded to the Ethiopian hate speech and violence case in December. She said this content violates Facebook and Instagram guidelines. It also meant the corporation fixed it and stopped it.

    These legal actions and Meta’s answers demonstrate how difficult it is for social media platforms to monitor material and working conditions globally and how local legal systems can affect their operations and regulations.

  • Zanifu secures $11.2 million in debt and equity for lending services

    Zanifu secures $11.2 million in debt and equity for lending services

    Zanifu, a Kenyan fintech company that helps micro, small, and medium-sized businesses finance their inventory, was able to raise $11.2 million in debt and equity funds during a pre-Series A funding round.

    With this funding, Zanifu has now raised a total of $12.7 million in debt stock. The significant investment firms Beyond Capital Ventures and Variant Investments were in charge of the round. Other investors who took part were Founders Factory Africa, AAIC Investment, and Google Black Founders Fund. Launch Africa, which was already an investor, kept giving them money.

    With this new money, it will be able to improve its services and offer inventory credit services to both stores and distributors. Steve Biko, the co-founder and CEO of the company, says that this strategic move is meant to help companies that have trouble getting loans from traditional financial institutions because of things like a poor organizational structure, incomplete financial records, and a lack of tangible collateral.

    Zanifu wants to meet the need by using data gathered from businesses and their suppliers to give credit. The company further reduces risk by sending payments straight to suppliers. The amount of stock funding is based on the size of the business. Distributors can get up to $10,000, while retailers can buy goods worth between $200 and $500.

    After expanding its customer base, Zanifu now supports over 13,000 micro Businesses and 500 distributors, according to a report.

    “In our first product, we only lent retailers to help them expand, but we found out distributors have a similar problem,” said Biko.

    Read also: Vendease Obtains $30 million in equity and debt financing

    Zanifu’s growth and plans

    After receiving new funds, the company can expand in Kenya. This strategy adjustment means the company will stop growing in Ghana and Uganda, where it’s hard to secure money for operations and growth, exactly like small enterprises.

    Across Africa, small companies drive the economy. Nearly 90% of firms are them, and they create many jobs.

    Kenya has a $19 billion MSMEs financing gap. Zanifu and other Standard-Chartered Ventures-backed companies like Pezesha and Solv are helping Kenyan businesses acquire financing.

    According to co-founder and CEO Steve Biko, the company plans to grow:

    “We’re going to central Kenya. Increasing micro-SMEs and distributor partnerships is our goal. We also ensure that the money we grant these businesses grows and makes money. We see it that way now. Once we start making money, we’ll try other markets.”

    Zanifu, licenced by the Central Bank of Kenya, can grow by offering insurance. The company hopes to provide high-tech solutions to help businesses manage supplies and books.

    Africa Startups Debt Financing Hit $1.55B In 2022

    About Zanifu

    A year after starting the startup in 2017, Biko and Sebastian Mithika started the finance business. The startup has provided 85,000 working capital loans totaling $13 million to 7,000 Kenyan firms. Nairobi’s Woodvale Grove is Zanifu’s headquarters.

    Mithika claimed Zanifu is helping 5 million informal small enterprises in the country with $20 billion in MSME loans, according to the World Bank.

    The informal sector accounts for 33.8% of Kenya’s GDP and 83.4% of non-agricultural employment. The major obstacle to expansion for micro and small firms is money. Over the last few years, fintech startups like Zanifu have created MSMEs-specific lending products.

    Zanifu works with manufacturers and distributors to offer credit to small businesses, with merchants currently buying from the startup’s partners. For manufacturers, distributors, and retailers, Zanifu platforms streamline ordering, payment, tracking, and fulfillment.

    Zanifu’s borrowing software lets retailers borrow using historical sales data. After its algorithm rates retailers, they receive a credit limit six hours after signing up. Retailers have one month to repay the 3.5–5% loans.

  • Kenyan electric bus manufacturer BasiGo expands to Rwanda

    Kenyan electric bus manufacturer BasiGo expands to Rwanda

    BasiGo, a Kenyan electric bus company, is expanding its reach to Rwanda market. The firm, which recently joined forces with Associated Vehicle Assemblers Ltd (AVA), is expanding into Rwanda with the formation of a new subsidiary called BasiGo Rwanda Ltd., which will compete with its existing Kenyan bus manufacturers.

    To facilitate this growth, AC Mobility, the country’s preeminent supplier of automated fare-collecting systems for public transit, has teamed with BasiGo. BasiGo’s novel Pay-As-You-Drive finance method, which the business has previously been utilizing in Kenya, will be used to provide electric buses to Kigali transport operators by October of this year under the terms of the partnership. 

    Operators may acquire electric buses under this financing model and pay a subscription fee each day to cover the expense of leasing the battery, charging the vehicle overnight at a BasiGo depot, and servicing and maintaining the bus. By using this approach, BasiGo and AC Mobility want to provide Rwandan bus operators with 200 electric buses by the year 2024.

    Read also: Kenya to have rapid charging stations for electric buses – courtesy BasiGo

    Bringing its E-Bus solution to Rwandans  

    Jit Bhattacharya, CEO and co-founder of BasiGo, remarked that “Rwanda has paved the way by developing an enabling ecosystem for E-mobility. Together, BasiGo and AC Mobility, a pioneer in Rwanda’s transportation technology, will hasten the country’s move towards fully electric public transportation. Electric buses will liberate bus companies from ever-increasing fuel costs while simultaneously drastically lowering pollution and carbon dioxide emissions. 

    We’re thrilled to provide a comprehensive E-Bus solution to Rwanda via our Pay-As-You-Drive business model, bringing this innovative technology within reach of any bus operator in the country. 

    Kigali Bus Service, Royal Express, and Volcano Express, three of Kigali’s biggest bus companies, have all signed memoranda of intent with BasiGo and AC Mobility for the test drive. 

    Jones Kizihira, CEO of AC Mobility Rwanda said “We’re excited to work with BasiGo on the electrification of public buses in Rwanda. The nation has undergone significant change, necessitating a more reliable and cost-efficient public transit infrastructure. Rwanda’s move to sustainable transportation will be aided by the electric buses, which will reduce the financial load on public bus carriers. We look forward to leveraging BasiGo’s experience and network to build a strong electric bus business in Rwanda.”

    BasiGo, AVA partner to develop electric buses in Kenya 

    What to know about BasiGo

    BasiGo, which was established in 2021, was the trailblazer in Nairobi’s transition to electric buses.  BasiGo has made 19 Electric Bus sales to Nairobi public transport companies and secured orders for more than 100 more buses. More than 580,000 people have ridden on BasiGo electric buses, which have logged over 460,000 km on the road. Furthermore, BasiGo has installed the first DC Fast Charging stations for Electric buses in Kenya.

    The expansion of BasiGo to the East African nation comes at a time when the Rwandan government is launching a programme to quickly grow the size of Kigali’s public transport fleet while simultaneously intending to convert 20% of the public bus fleet to electric by 2030.  

    The EV startup and the automaker Associated Vehicle Assemblers Ltd (AVA) joined together earlier this year. The two groups will work together to produce buses in Mombasa, Kenya. Public Service Vehicle (PSV) operators’ input will be used to build 33-seater buses, which would replace the 25-seater buses currently in service.

    The establishment of Kenya’s first public EV charging station in May 2023 was yet another first for the EV startup. The Buru Buru neighbourhood of Nairobi is home to a charging station that is part of the new eMobility tariff network.

  • Kenyan startup Revivo funds B2B electronic spare parts marketplace

    Kenyan startup Revivo funds B2B electronic spare parts marketplace

    A Kenyan company known as Revivo has secured $635,000 in order to expand into a bigger, wider market.

    This funding was obtained through a pre-seed investment round. With these funds, the company will be able to expand and compete in a wider market.

    The fundraising round was made possible thanks to contributions from Raba Partnership, Village Global, Musha Ventures, Satgana, and strategic business angels.

    Read also: Amazon Prime Video hires Super Sport CEO Gideon Khobane 

    Why Investors put money in Revivo

    The owners put money into Revivo for a number of important reasons. Revivo solves a big problem in developing markets by creating a B2B market for extra parts for consumer electronics.

    Revivo wants to meet the needs of small businesses that do most repairs so that it’s easy for people to get great repairs at low prices from small businesses. Investors liked it because it would help areas that don’t get enough help.

    Investors were especially interested in Revivo because it had a clear price plan and guaranteed the quality of its products. On the company’s portal, repair shops can find new electrical replacement parts, learning tools, and ways to pay for them. These qualities make Revivo a good investment for repair businesses.

    Furthermore, the success of Revivo’s predecessors was very pleasing to investors. Through its partnerships with major original equipment manufacturers (OEMs) and e-waste recyclers, the company has been successful in selling more than 45,000 different electronic devices to tens of thousands of customers. Because it is long-lasting and has been successful in acquiring funding, including some from the TomKat Centre for Sustainable Energy at Stanford University, Revivo possesses considerable promise.

    Canada announces innovative immigration tech talent mechanism for Africans 

    A Brief Look at Revivo

    Sarah Johnson started Revivo in 2022 because she thought people in developing countries needed an easier way to get their gadgets fixed. The new business is an online marketplace for consumer goods, spare parts, accessories, and tools for fixing them. Its biggest markets are Kenya and other emerging countries where cheap fixes are in high demand.

    The website assists businesses in locating the products that they require. Through the process of market centralization, Revivo makes it simpler for service firms to locate components and conduct business. Customers are more satisfied with their purchases when the prices are straightforward, the products are of high quality, and the delivery time is reasonable.

    Revivo’s goals go beyond merely accumulating wealth. The organization encourages the growth of the repair economy in order to reduce the cost of electronic goods and improve their impact on the environment. The mission of Revivo is to promote sustainable development and healthy lifestyles across the continent.

  • Kenya’s Baobab Network funds Moroccan logistics startup Colis.ma

    Kenya’s Baobab Network funds Moroccan logistics startup Colis.ma

    As part of its accelerator programme, Kenya’s Baobab Network has donated $50,000 to the Moroccan logistics startup Colis.ma.

    The most recent group to go through the accelerator programme added five new start-ups from Morocco, Kenya, Guinea, Nigeria, and Togo to the Baobab Network collection.

    Each startup will also get a customized, expert-led accelerator programme in addition to the $50,000 USD cash prize. Through a demo day, the programme connects startups with top seed investors and venture capitalists.

    Christine Namara, who is in charge of ventures at The Baobab Network, said, “Once again, we have seen the power of African creation firsthand with this amazing group of start-ups.

    Their passion, creativity, and determination to solve important problems in their towns and ecosystems have been truly inspiring. We are proud that they asked us to join them on this journey, and we can’t wait to see how they change the African environment and other places as we grow.

    Colis.ma is a logistics platform that was started in 2022 by Issam Darui. It helps clients find, rate, and choose their transportation based on their personal preferences. It also helps transporters digitise their operations by letting them track their journey. It also makes it easy for customers and businesses to send and receive packages from anywhere in Europe. This helps companies reach more customers and grow their businesses.

    “The insights and advice we got from their exceptional accelerator programme not only changed our course but also gave us a clear road map to grow and hit new heights,” said Colis.ma CEO Issam Darui. Baobab Network leaders are empowered individually. Each meeting demonstrates their real care. They’re unique. We’ve enhanced Colis.ma’s growth with their help. We’re thrilled and confident!”

    Read also: Nairobi-based Accelerator, ‘The Baobab Network’ Invests $200,000 In Four African Startups

    The accelerator also gave the same amount of money to Afrigility in Kenya, Eazy Chain in Togo, Poultry in Nigeria, and Mudu Pay in Guinea.

    Afrigility is a Kenyan logistics startup that uses asset-light technology to offer B2B e-commerce services and on-demand storage solutions.

    Eazy Chain, which used to be called Togo Cargo, offers an integrated logistics system that includes air, sea, and road freight services. This makes it easy for cargo to be moved from one place to another.

    ePoultry is a Nigerian agritech company that helps chicken farmers get rid of structural inefficiencies by giving them input credits, advisory services, and a dynamic B2B marketplace.

    MuduPay is a financial technology company based in Guinea. Using their world-class technology stack, they make it possible for Africans to move money online from anywhere.

    African Fintech, Peach Payments secures $31M from Apis Partners

    Impacting Africa’s tech ecosystem

    The number of tech companies in Africa is on the rise. But while some new businesses do well, many fail in the first few years. There are many reasons why so many tech startups in Africa fail, and fixing these problems is key to creating a tech environment that is strong and can last.

    Accelerators like the Baobab Network have helped the community. They give entrepreneurs the whole package, which includes money, coaching, and advice. They also help entrepreneurs find the right donors. New tech companies can keep going with the help of these mentors, which makes it less likely that they will fail.

    “Our journey with these founders goes beyond the demo day,” said Niama El Bassunie, Managing Partner at “The Baobab Network.” Their passion and our dedication make it possible for them to grow and leave a lasting mark on Africa’s tech environment. As they figure out how to grow, we are ready to help them and look forward to the great strides they will make in their various fields.”

  • Victory Farms, a Kenyan Agritech secures $35 million Series B funding

    Victory Farms, a Kenyan Agritech secures $35 million Series B funding

    A Series B funding round brought in $35 million for the Kenyan firm Victory Farms, which is focused on aquaculture. 

    The company claims that it plans to utilise the financing to support the growth of its operations in Kenya and Rwanda, in addition to exploring the possibility of entering the markets in Ethiopia, Uganda, and Tanzania. 

    Creadev was the driving force behind the Series B funding round, which also included participation from the Acumen Resilient Agriculture Fund (ARAF), DOB Equity, Endeavour Catalyst Fund, and Hesabu Capital. Joseph Rehmann, Steve Moran, Kamran Ahmad, and Hans den Bieman were among the company’s founders and angel investors who participated in the transaction by making an investment of their own. 

    Read also: Egyptian Agritech Mahaseel Masr Secures Funding For Expansion

    About Victory Farms’ Investment 

    The Chief Executive Officer of the company, Joseph Rehmann, made the following statement regarding the investment round: “The Series B investment will enable Victory Farms to scale up our platform for sustainable, affordable protein production and expand our footprint within the region—advancing our mission to build the world’s most sustainable end-to-end protein platform that will nourish 2 billion Africans with affordable, accessible, and healthy meals.”

    In addition to this, Victory Farms asserts that it can help East Africa’s challenge with climate change. The new business venture estimates that it is currently preventing at least 160 thousand metric tonnes of carbon dioxide emissions at its current capacity by changing consumers to opt for fish instead of meat. 

    “ARAF supports smallholder farmers and aquaculture companies that prioritise Africa’s sustainable development goals. Victory Farms is another great addition to ARAF’s portfolio, where companies use innovative business models to help farmers adapt to climate change,” stated Rebecca Mincy, Investment Director at ARAF. 

    SA agri-tech startup swiftVEE launches app for farmers

    About Victory Farms

    Victory Farms is a startup that operates a farm for tilapia fish. The company was established in 2015 by Joseph Rehmann and Steve Moran. In April 2023, President Williams Ruto of Kenya referred to the company as the most rapidly expanding aquaculture business in sub-Saharan Africa. 

    They are the owner and operator of a fish farm with the goal of making affordable, easily accessible, and nutritious protein available to the people of East Africa. The company engages in genetics research, breeding and hatchery operations, production and offshore cage management, processing of fish, cold chain operations, and distribution of fish, all of which make it possible for clients to obtain access to fish of high quality.

    The current number of Victory Farms locations in East Africa is above 80, and the company has just opened a branch in Rwanda under the name Kivu Choice. Later on in this year, the company will also establish its aqua-feed mill joint venture known as Samakgro in the city of Naivasha. This will make it possible to source 35,000 metric tonnes of feed ingredients from the local area annually.

    Before this round of fundraising, Victory Farms had previously secured a total of $9 million, with $4 million coming from loan financing and $5 million from equity financing.

  • Co-Creation Hub’s $15 million programme includes Nigerian, Kenyan edtech startups

    Co-Creation Hub’s $15 million programme includes Nigerian, Kenyan edtech startups

    The Edtech Fellowship Program, an accelerator program funded by $15 million over the course of three years, will be launched by Co-Creation Hub (CcHub) and open to 72 startups in Nigeria and Kenya.

    The goal of the accelerator program is to help founders who are using technology to solve problems in the educational system and increase the impact of edtech firms across Africa.

    “Africa’s $2 billion education sector, now more than ever, demands more unorthodox solutions,” said CcHub co-founder and CEO Bosun Tijani in an interview. And CcHUB, which has run several edtech initiatives (one of which I have volunteered for) and backed successful and failed edtech startups in the past via its incubator and accelerator programs, is hopeful of discovering such solutions addressing challenges across K-12, tertiary, and skills-to-jobs markets.

    Read also: CcHub Collaborates with Google for Fintech Incubation in Rwanda

    Co-Creation Hub Edtech Fellowship Program

    “Our scope of thought is really large. We expect the core will be reduced to a small set of areas based on our observations, but we’re pushing ourselves to avoid funding the most straightforward approaches, as he put it. We are not going to invest in any old startup without first making sure they are improving education.”

    CcHUB plans to take on this duty with the help of an internal research team whose primary mission is to work with portfolio entrepreneurs and test their products from launch to scaling. Selected startups in both cities will get access to the team, which is part of a larger 30 member crew covering multiple expert groups.

    Each startup will rely heavily on the shared resources provided by groups like product development, government relations, pedagogy and learning science, portfolio management, communication, instructional design, and community building in order to successfully form their teams, test out their minimum viable product (MVP), engage with organisations, and gather user feedback.

    While participating in the Edtech Fellowship program, startups will receive a $100,000 seed grant; this additional financing and support will help them reach their full potential.

    Tijani is confident that this program will kickstart the ed-tech ecosystem and estimates that between twenty and thirty percent of the firms will survive for another three to four years. And that will tell us if technology in education in Africa is actually effective.

    The $15 million set aside for this program will be used to handle other resources in the accelerator, such as personnel costs and giving support capital to startups as they advance, in addition to providing the money for entrepreneurs.

    CCHUB Institute Design Lab in Kigali

    Innovation Hub, Safaricom and MTN

    The innovation hub is in talks with telcos like Safaricom and MTN to explore arrangements that could see them become not only investors in the fund but also distribution partners for edtech solutions in the Fellowship’s portfolio, according to Tijani. The $50 million edtech fund is expected to launch within the next 12-24 months. An anchor investor has committed an initial $5 million.

    There is another thing that sets this program apart. Our backers aren’t just handing us cash and saying, “Here, invest it.” Not only are they providing us with cash to enable us to acquire capital, but they also have significant “skin in the game,” which is unusual in the VC industry.

    “We have a biased view of potential co-investors. We also approach DFIs and telcos in addition to VCs. In general, CcHub’s efforts will reduce the risk for venture capitalists interested in funding edtech businesses, as Tijani put it”

  • Kenyans Experience Aftermath Of Central Bank’s Toughness On Fintech

    Kenyans Experience Aftermath Of Central Bank’s Toughness On Fintech

    After Kenyan authorities froze Nigerian fintech Korapay‘s account in July on the grounds of possible money laundering, Investigators discovered just a single transaction. This transaction was for money required to pay for a local licensing application.

    According to Chief Executive Officer Dickson Nsofor, it took three months to unblock the account, and Korapay is still awaiting a license to operate in the nation.

    As they attempt to enter the Kenyan market, A number of fintech companies, including Flutterwave Inc. and Chipper Cash, are encountering regulatory obstacles alongside Kopay. Remittances are a major source of income for many residents, but the levels of bureaucracy cause the fees to be among the highest in the world.

    According to Nsofor, “we want to be highly regulated, …but licensing and regulation is the key that the gatekeepers use to push new players out.”

    Remittances — international transfers back to a worker’s home country — are vital to Kenya’s economy, accounting for more than 3% of the gross domestic product last year. Yet, even as the population embraces fintech, with nearly twice as many people using mobile money than holding traditional bank accounts, technology’s promise of lowering the cost of sending funds has remained elusive.

    Bureaucratic hurdles can be difficult to navigate in Kenya. The local regulator in July ordered two of Africa’s most successful startups, Flutterwave and Chipper Cash, to stop offering remittances and payments in the country because they weren’t licensed.

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

    Kenya’s Disposition To Fintech Startups

    Kenya has been open to some new players in the fintech space in recent years. One of the fintech companies active in the industry is Zepz Group, which runs the services Wave Mobile Money Inc. and WorldRemit.

    Governor of the Central Bank of Kenya Patrick Njoroge claims that the laws are in place to stop money laundering and the financing of terrorists.

    Njoroge said in a media interview in September that “Particular remittance providers think that this is the Wild West.” He explained that “maybe in other jurisdictions they’ve done it but, in our jurisdiction, we are very particular about regulation.”

    With increased access to financial services and products, Kenya has made progress toward financial inclusion. According to a survey conducted by Kenya’s FSD, the national statistics office, and the central bank, 81% of the population utilised mobile money in 2017 as cell phones made transactions simpler.

    However, Koropay’s CEO claims that because more than 25% of Kenyans live below the $2.15 per person per day extreme poverty limit set by the World Bank, the exorbitant fees are taking money away from those who cannot afford them.

    According to a central bank poll from the previous year, sending money to Kenya often costs between 4% and 5%, which is a significant burden for those who are economically challenged.

    Kenya Asset Recovery Agency (ARA) Drops Money Laundering Charges Against Nigerian Companies

    Organisations’ Reactions

    Shem Ochuodho, the worldwide chairperson of Kenya Diaspora Alliance, a lobbying organisation representing Kenyans living abroad, stated that the cost of remittances “remains high, especially sending to Africa, as well as intra-Africa.” “I would recommend that the central bank move a little more quickly to establish a favourable atmosphere for fintechs.”

    According to Saema Somalya, General Counsel for money transfer app Remitly Global Inc., Africa is experiencing difficulty with the length of time it takes to grant fintechs authorization to operate.

    According to Somalya, “many African countries only permit banks to participate in local payment schemes” and “major source of friction” between the industry and authorities, the delays.

    Oluwabankole Falade, the chief government affairs officer at Flutterwave, claims that a lack of standardisation in licensing regulations between nations prevents the development of competition and more economical services.

    According to World Bank Senior Financial Sector Specialist Oya Pinar Ardic Alper, the authorities should strike a compromise between the need to appropriately regulate the services and the need to provide “sound, predictable, non-discriminatory and proportionate legal and regulatory frameworks” for users.

    Alper said Remittances offer a chance to include those who are financially excluded in the regulated financial system.

    According to a financial expert, “Remittances also become a difficult and discouraging financial service to utilise if not given in a safe and efficient way.”