In today’s midweek update, we look at:
- Zimbabwe to embrace crypto regulations
- Ride-hailing drivers in Nigeria and Kenya take action against low fares
- Telecom workers in Nigeria embark on indefinite strike
Zimbabwe to embrace crypto regulations
The Zimbabwean government is working on its first-ever crypto regulations, which is a big deal considering they slapped a ban on banks dealing with crypto in 2018. This move comes after many consultations with crypto stakeholders and aims to bring some order and legitimacy to the wild world of digital currencies.
One of the key things the government is looking at is licensing crypto exchanges. This would provide oversight and accountability for crypto businesses operating in the country. Additionally, recognising cryptocurrency as a financial asset would enable crypto-related businesses to access traditional banking services, which have been restricted since the 2018 ban.
Why is this happening? The move towards regulation is driven by the recognition of the growing popularity and use of cryptocurrencies in Zimbabwe. Many citizens have turned to crypto exchanges like Binance, Coinbase, and home-based Golix as alternatives to the volatile local currency. The government wants to ensure these crypto transactions are happening in a safe and regulated environment.
But it’s not just about regulating the industry. The government also wants to protect people from getting scammed. There have been a lot of crypto scams in Zimbabwe, and the government hopes that regulations can help stop them.
Context: Zimbabwe has made multiple efforts to stabilise its local currency over the years. In April 2024, the country introduced the Zimbabwe Gold (ZiG) to replace the Zimbabwean dollar in response to its ongoing currency crisis.
With regulations in place, crypto businesses will have a more stable environment to operate in, and citizens can have more confidence in the legitimacy of their transactions.
Ride-hailing drivers in Nigeria and Kenya take action against low fares
Despite Bolt increasing ride fares by 15% and Uber by 13% in Nigeria due to the recent fuel hike, ride-hailing drivers are taking matters into their own hands by charging customers more than the suggested prices on the platforms. They also opt for longer trips and tell customers upfront that they would have to pay more.
The drivers argue that the increase in fares does not match the extra amount they have to pay for fuel. As a result, more passengers are becoming less likely to use ride-hailing services because of the cost.
Bolt and Uber also face a similar situation in Kenya, where drivers have again commenced another strike action. This comes after an initial strike, which led to both ride-hailing companies increasing their base fares by 10%.
The drivers remain firm on their demand for a minimum base fare of KES 300 ($2.33) and have now resorted to turning off their apps, causing passengers to face longer wait times and higher trip costs. Those who have defied the strike have experienced harassment and intimidation, while others are staying home to avoid any potential risks.
The common challenges faced by drivers in both countries include rising operating costs and inadequate compensation. These factors have made it difficult for drivers to earn a sustainable living.
Telecom workers in Nigeria embark on indefinite strike
Calls and data services may be disrupted in the coming days after the Private Telecommunications Senior Staff Association of Nigeria (PTECSSAN) embarked on an indefinite strike on Monday. The strike is in response to unfair dismissals, poor working conditions, and inadequate benefits.
Key personnel, including field maintenance engineers, transmission engineers, customer service engineers, and fibre engineers, are participating in the industrial action. If left unaddressed, the strike could cause significant disruptions to telecom services across the country.
The union’s demands include a suitable pension scheme, health insurance coverage, recognition of union rights, and fair compensation that reflects the current economic realities. They also seek to address issues such as long working hours, inadequate occupational health and safety measures, and unfair dismissals.
Context: This is the second time PTECSSAN has gone on strike this year. In April 2024, the union announced an indefinite strike due to alleged mistreatment of its members by subcontractors working for Huawei Technologies Nigeria Limited. While the strike was temporarily suspended following negotiations, the union claims that the agreed-upon terms were not fully implemented.
Zoom out: A new regulation in Zimbabwe could see telecom companies fined up to $5,000 for poor service. Network outages longer than three hours will result in a $5,000 penalty, with an additional $5,000 for every extra hour of downtime.
By the Numbers
30%
South Africa’s overall download speeds have improved by up to 30%, according to a report by Open Signal. This increase has been attributed to the increased adoption and availability of 5G network in the country.
