No, Gmail is not shutting down!
While Google isn’t shutting down Gmail entirely, they are phasing out its basic HTML view. These older versions, lacking full functionality and replaced over a decade ago, are being retired to favour the more modern and feature-rich Gmail interface. If you previously used the basic HTML view, you will automatically switch to the standard view.
Inside today’s letter, we explore:
- The latest on Kenya’s national digital ID programme.
- Bureau de Change reforms in Nigeria
- Uber’s plan to invest in Moove, a Nigerian mobility fintech
We also have updates on the state of funding in Africa, other noteworthy information, and several opportunities.
The big three!
#1. Kenya Court clears way for National digital ID programme
The news: A Kenyan High Court has overturned a December order that suspended the rollout of Maisha Namba, the national digital ID program, following concerns raised by the Katiba Institute regarding the lack of a robust legal framework and insufficient public participation during the pilot phase.
Know more: Over half a million Kenyans have been left in limbo since the court order, unable to complete their ID applications and access essential government and private sector services that require a national ID card.
Despite resuming Maisha Namba printing to address the backlog caused by the suspension, the Kenyan government must still face the High Court’s Constitutional Human Rights Division regarding the complaint filed by the Katiba Institute.
The government contends that the December court order was issued without their input, hindering their ability to explain the potential consequences, which have caused significant disruption to the national ID system.
“Those claiming that there will be some secret chips to be introduced on the Maisha Card for children are dead wrong and just aim to derail our plan to digitise every process we have in the country and make life easy for Kenyans,” said Julius Bitok, head of immigration and citizen services. “I assure Kenyans that we have complied with requirements in the Data Protection Act.”
Rewind: In January 2020, a Kenyan High Court halted the implementation of Huduma Namba, a $72 million national ID system similar to Maisha Namba, citing concerns about data privacy, potential citizen exclusion, and inadequate legal backing.
“The Huduma Namba was a well-intended initiative, but the process of introducing it into the marketplace was wrong,” according to Eliud Owalo, Kenya’s ICT and digital economy minister. “Whenever you are introducing something new of that nature, you need to explain to Kenyans why it is imperative to introduce such an initiative. They need to understand what it entails, and you need to seek stakeholders’ views. And one of the important stakeholders is the Kenyan public.”
#2. Nigeria’s Central Bank proposes BDC reforms
The news: The Central Bank of Nigeria (CBN) is shaking things up in the foreign exchange market with proposed reforms for Bureau de Change (BDC) operators. These changes aim to bring stability, transparency, and efficiency to the sector.
Here’s the breakdown:
- Increased capital requirements: The CBN proposes a tiered system, significantly raising the minimum capital requirement for BDCs. Tier 1 BDCs will need ₦2 billion (~$1.3 million), while Tier 2 BDCs will require ₦500 million ($339,706), marking an increase from the current ₦25 million ($16,985) minimum.
- Ownership restrictions: To prevent excessive concentration, the new guidelines propose limiting individuals to owning shares in only one BDC.
- Enhanced governance: The reforms emphasize stronger corporate governance practices, including stricter board composition requirements, enhanced qualifications for key personnel, and robust anti-money laundering/combating the financing of terrorism (AML/CFT) measures. The CBN mandates declaration of source for forex sales exceeding $10,000 (₦16 million) to BDCs.
- Expanded service scope: BDCs will now be authorised to act as agents for International Money Transfer Operators (IMTOs), facilitating the disbursement of funds. Additionally, they can directly handle Personal Travel Allowances (PTAs) and Business Travel Allowances (BTAs).
Zoom out: Currently, the CBN is seeking feedback from stakeholders on the proposed regulations. After this consultation process, the CBN will finalise the new licensing requirements and provide a timeline for implementation.
#3. Uber in talks to invest $100 million in Moove
The news: Ride-hailing giant Uber is in talks to invest in Moove, a Nigerian mobility fintech startup, at a $750 million valuation, according to Bloomberg reports. The funding round is ongoing and the final figure could fluctuate between $75 million and $100 million.
Why it matters: A long-term partner of Moove, Uber named the mobility fintech its official vehicle-financing partner in sub-Saharan Africa in 2020. This partnership allows drivers to access cars without a down payment, paying them off through daily instalments from their Uber earnings.
Amsterdam-headquartered Moove, already Uber’s financing partner in Africa and India with operations in the UK and UAE, could see its partnership deepen if Uber’s potential $100 million investment comes to fruition, potentially enabling wider driver financing globally.
In July 2022, the mobility fintech expanded into India via a partnership with Uber, marking its first market outside of Africa. As of this month, Moove reported completing over one million trips in India with over 1500 acquired vehicles, where it operates in three major cities—Bengaluru, Mumbai, and Hyderabad. They recently secured $10 million to further expand their Indian operations.
Zoom out: Moove has secured at least $344 million since it was launched in 2020, primarily through debt financing backed by investors like British International Investment (BII) and the International Finance Corporation’s venture capital arm.
State of Funding in Africa
Partech has closed its second Africa fund, Partech Africa II, at €280 million ($300 million+), solidifying its position as the largest Africa-focused venture capital firm just one year after the initial closing.
Having invested in 17 startups across nine African countries through its debut fund, Partech doubles down with its Africa II fund, targeting Seed to Series C rounds with $1 million to $15 million tickets. The VC firm already has three portfolio companies and aims to build over 20 across the continent.
Here’s a look at African startup funding last week:
- South African cleantech startup, Hohm Energy raised an $8 million seed in a round led by E3 Capital and 4DX Ventures.
- Another cleantech startup, d.Light secured $7.4 million in securitised financing from Chapel Hill Denham’s Nigeria Infrastructure Debt Fund to scale up its Pay-Go personal finance service
- Arnergy, a Nigerian cleantech startup has raised $3 million in funding from All On, an off-grid energy impact investment company.
- Mamamoni, a Nigerian fintech social enterprise, has received $270,912 in funding from the Challenge For Youth Employment backed by the Netherlands Ministry of Foreign Affairs.
Noteworthy
Here are other important stories in the media:
- A fresh crypto crackdown is brewing in Nigeria: The love-hate relationship between Nigerian financial authorities and the country’s crypto exchange platforms is not going away anytime soon. Under a new move to control a currency crash, the government is reportedly scapegoating digital currency exchanges, with plans to shut them out, yet again.
- MultiChoice renews distribution deal with Disney+: MultiChoice, Africa’s leading entertainment firm, through its direct broadcast satellite service DStv, has announced a multi-year content distribution deal with Disney Company Africa, one that will allow it to retain its current portfolio of Disney linear channels until 2027.
- Verod buys i-Fitness stake for $12 million in PE Shuffle: West African private equity firm Verod has acquired a 65% stake in Nigeria’s leading fitness chain i-Fitness from CardinalStone in a $12 million deal.
- Laid-Off Twitter Africa team finally receives severance: More than a year after X (formerly Twitter) laid off its Ghana-based Africa team, the company has finally resolved the severance dispute with the employees after facing advocacy and legal pressure.
- Meet the Africans behind Ocular AI: Silicon Valley startup Ocular AI, founded by a Zambian and Zimbabwean software engineer duo, has been selected for the Y Combinator Winter 2024 batch.
Opportunities
Jobs
We carefully curate open opportunities in Product & Design, Data & Engineering, and Admin & Growth every week.
Product & Design
- Jobberman — User Researcher/Product Designer, Lagos
- Visa — Fintech Accelerator Architect, Lagos
- Renmoney — Product Manager, Lagos
Data & Engineering
- LemFi — Senior iOS Engineer, Remote
- Code for Africa — Senior Software Engineer, Remote
- Fairmoney — Data Engineer, Lagos
Admin & Growth
- Moove — Office Manager, London
- Oriamo — Social Media Manager, Lagos
- adeo — Marketing Personnel, Remote
Other opportunities
- For African entrepreneurs: Applications for the Tony Elumelu Entrepreneurship Foundation Program are open until March 1, 2024. Learn how to apply for your startup today.
Thanks for reading this edition.
Know someone who might find it useful? Don’t hesitate to share.
