A breakthrough in adapting to the new order of life as a result of the Covid-19 social distancing mandates, Kenya’s O-CITY is driving contactless payments across bus services in Nairobi, Kenya. The pilot initiative, designed to reduce the use of cash in response to the COVID-19 pandemic, was launched in partnership with transport savings and credit specialists, NikoDigi, and Kenyan payments firm, Tracom, to accelerate the deployment of cashless fare collection. Used by 70% of the population in Kenya, Matatu buses are a dominant transport mode across the country whereby passengers traditionally pay in cash. O-CITY’s automated fare collection platform leverages the M-Pesa mobile wallet, which is used by 90% of the population in Kenya.
O-CITY contactless payment system
Passengers enter a code on their phone and a debit is made on their wallet, which can be instantly seen by drivers to grant access to ride. The platform removes unnecessary tickets and cash payments, instead offering an accessible payment solution that consumers already use, via a device already in their hand.
“Having provided savings and credit management solutions for both the Matatu and Boda Boda (motorbike taxi) sectors, Nikodigi understands the needs of vehicle owners and drivers,” says Patrick Karera, MD at Nikodigi.
“Together with our partners, we have designed a product that automates fare collection without taking control away from the drivers and conductors or radically changing how they operate. We dubbed the solution “Lipafare” meaning ‘pay fare’.”
SVP of smart city and transport solutions at BPC, Tokhir Abdukadyrov says that the “mobile money revolution has been happening in Kenya with the ubiquity and success of M-Pesa. The move away from cash to contactless public transport is an important part of this movement.”
“At O-CITY, we know that innovation does not always require new technologies, but instead new ways of performing a task. By connecting our O-CITY platform to mobile wallet M-Pesa, we’re able to build a simple contactless fare solution that is familiar to the customer and likely to encourage adoption. Moreover, it enables us to scale fast to roll out the service at a time when cashless payments have newfound importance.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Nigeria’s first privately owned special economic zone located in Lagos with an integrated deep sea port is home to several reputable global brands. Located 65kms east of Lagos, in the immediate vicinity of upcoming Lekki Deep Sea Port, the Lagos Free Zone (LFZ) aims to enhance the ease of doing business in Nigeria. Developed by the Singapore based Tolaram Group, the LFZ, reflects their more than four decades of commitment to doing business in Nigeria, says Tejaswi Avasarala, General Manager, Strategic Marketing, Lagos Free Zone, who was speaking ahead of the 6th annual West Africa Property Investment (WAPI) Virtual Summit taking place this week (25-26 November 2020).
Tejaswi Avasarala, General Manager, Strategic Marketing, Lagos Free Zone
Regarded as the only premier regional real estate investment and development conference that provides access to more than 600 local and international decision makers, this year’s WAPI Virtual edition (www.WAPISummit.com) will provide attendees with unique content, networking opportunities and a platform to showcase projects and services to an international audience. With currently more than 15 operational entities, the 830-hectare (ha) LFZ site will eventually host more than 100 businesses and provide more than 50,000 residents with a place to live, work and play, and will offer real estate investors and developers with appealing prospects.
“We are convinced that Nigeria bears immense growth opportunity and will continue to be a formidable growth engine amongst the emerging market economies. While there are some challenges that are typical of emerging markets, the government has taken steps in the right direction that have resulted in tangible improvement in the ease of doing business in the country over the past 5 years,” said Tejaswi.
In addition to the industrial manufacturing and port-based logistics cluster at LFZ, there are opportunities in the area of commercial developments such as multi-tiered housing, office spaces, business and leisure hotels as well as healthcare and educational projects which are extremely exciting and deliver on the LFZ’s objective of enhancing the ease of doing business in Nigeria. This effort, as Tejaswi added, begins by providing business and developers with access to un-encroached, secured and developed land in the immediate vicinity of the deepest sea port in Nigeria, which is expected to start commercial operations by the end of 2022.
While the new deep sea port solves a lot of historical challenges of the country’s existing shallow and congested ports, investors at Lagos Free Zone would also enjoy access to reliable plug-and-play infrastructure such as access to power, gas, trunk infrastructure, ready-built facilities such as warehouses and standard design factories. A perspective, which WAPI hosts Kfir Rusin shares. “The development of the Lagos Free Zone is an exciting development for the Nigerian economy and the industry as whole, as it will unlock new development opportunities for real estate investors and developers across the value chain. In what has been an extraordinary year, West Africa’s real estate leaders have demonstrated their resilience and their willingness to adapt and innovate to ensure returns in challenging conditions.
We believe that the future is bright and a mega project such as the LFZ, which is attracting world class tenants such as Kellogg (USA), Colgate (USA), Indofoods (Indonesia), Arla Foods (Denmark), BASF (Germany) and others is evidence that there are significant opportunities in the market, and we look forward to this week’s discussions.”
Taking place online (25 & 26 November), the WAPI Summit Virtual, www.WAPISummit.com is free to attend and will feature discussions and presentations by more than 60 international and regional speakers, who are actively pursuing opportunities across West Africa.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Africa’s first e-commerce luxury boutique the Lux Africa Boutique has been launched by the Lux Afrique Group. This development is in keeping with its pioneering spirit to open the virtual doors to Africa’s very first online luxury multi-brand e-commerce store, the Lux Afrique Boutique tomorrow 25 November 2020. This exclusive online shopping destination will offer clients from the African continent and around the world, the most luxurious brands in fashion, jewellery, watches, home, technology and food. Says Alexander Amosu, Founder of Lux Afrique “Pretty much every part of the world has a luxury e-commerce platform servicing the high net worth population across Asia, the Middle East and Europe, so why not Africa? I’m pleased to say that the Lux Afrique Boutique intends to change that!”
Alexander Amosu, Founder of Lux Afrique
Upon entering the online boutique, clients are presented with a selection of women’s fashion from the world’s most desirable luxury brands. The seasonal collections of leathergoods and ready-to-wear are all current and what one would find in the shopping capitals Paris, Milan or London. The men’s universe features an array of the finest names in luxury, with an additional selection of grooming products. Should you not be able to find your special piece, the concierge teams are on standby 24 hours a day to source and deliver any luxury product to your home. Engrained in the company ethos, Lux Afrique Boutique believes in supporting Africa and providing a platform to showcase its brands. It’s only natural then that a curated selection of African fashion and lifestyle designer brands will be available in the online boutique, with more will be added. Art lovers will be particularly pleased with the online African Art room, where the continents’ foremost artists will showcase their works. For those who adore fine jewellery and watches, the High Jewellery universe features an array of exquisite pieces from Fabergé, David Morris and Stephen Webster, together with the worlds’ foremost watch and jewellery brands. Once again, and true to company spirit, Vanleles, African fine jewellery brand features prominently in the online boutique.
Luxury lifestyle brands that are specially created for the home ensure that your abode reflects your style. Expect to find designer furniture, homeware and the latest audiovisual equipment like Bang and Olufsen, to decorate your residence. The shopping experience is complimented by the finest champagnes, wines and spirits, including Louis XIII and Dom Perignon, available in the world, while the highlight for any connoisseur would be discovering the Foodhall’s exceptional delicacies. The concierge team, as part of the highly personalised service, is on standby 24 hours a day to source and deliver any luxury product that you may possibly not find in the boutique. For VIP clients, a limited selection of merchandise can infact be delivered within 24 to 48 hours.
Lux Afrique Boutique will deliver to 54 countries in Africa within a standard delivery time of 3 to 5 working days. For VIP clients, a limited selection of merchandise can infact is delivered within 24 to 48 hours. In addition, to celebrate your birthday and as a special gift to you, the boutique offers free shipping on your birthday. The Group strongly believes in giving back and supporting entrepreneurship efforts in Africa. With this in mind, a percentage of each sale will be ploughed back into sustainable projects supporting local businesses on the continent, allowing clients to partner with the Boutique in giving-back through their purchases, a priceless feel-good factor. The Lux Afrique Boutique aims to place the spotlight on discovering and showcasing luxury African brands and artisans.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Nigeria’s laws for companies will entirely change from 2021, following the Gazette-ing of the Companies and Allied Matters Act, 2020, which was signed into law on 7th August, 2020 by President Muhammadu Buhari, more than 30 years after the old one. The announcement was made by the country’s Corporate Affairs Commission (CAC) in charge of managing the affairs of companies in Nigeria via its Twitter handle.
President Muhamdu Buhari
The Corporate Affairs Commission has officially taken delivery of a copy of the Gazetted CAMA, 2020 from the Clerk of the National Assembly on Thursday 19th November,2020 and is putting machinery in place to commence full implementation by 1st January,2021.
Here Is What Your Startup Needs To Know About The New Law
One Person Can Now Form A Company In Nigeria
Under the new law, although public companies are still required to have at least two members, a person can now form a private company. However, even though this is encouraged, the long-term prospects of the startup company should be considered, given that most startups are built for exit through IPOs or acquisitions etc., which makes a one-shareholder structure highly unsuitable for them in practice.
A Private Company May Now Transfer Its Shares
Unlike the old law where share transfer in a private company was restricted, this is not the case with with new law which gives all private companies in Nigeria the option to choose whether or not to transfer its shares in their articles of association. The implication of this is that in private companies, a structure in which most startups exist, shares can now be bought or sold at will. However, the company must obtain the consent of all its members before it sells more than 50% of the assets of the company. A shareholder in a private company is not also permitted to sell more than 50% of his shares to a non-shareholder unless he first offers to existing shareholders the shares meant for sale. He may then proceed to sell to a non-shareholder if the existing shareholders refuse. In the same way, that non-member willing to purchase the shares offered to him must also be ready to buy other shareholders’ interests in the shares offered.
Under the new law, every public or private company still needs to have a secretary. The requirement of a company secretary is only exempted for private companies which are small companies.
Annual General Meetings No Longer Compulsory For Small Companies Or Single Shareholder Companies
By virtue of the provisions of the law, small companies will no longer be mandatorily required to hold Annual General Meetings.
Under the law, a company qualifies as a small company in a year if for that year the following conditions are satisfied —
It is a private company;
The amount of its turnover for that year is not more than ₦120 million or such amount as may be fixed by the Commission;
Its net assets value is not more than ₦60 million or such amount as may be fixed by the Commission;
None of its members is an alien (a foreigner)
None of its members is a Government or a Government corporation or agency or its nominee; and
The directors hold between themselves at least 51 per cent of its equity share capital.
Small Companies Exempted from Audit Requirement
Under the new law, a company (excluding banks and insurance companies) is exempt from the requirements relating to the audit of accounts in respect of a financial year if-
(a) it has not carried on any business since its incorporation ; or
(b) its turnover in that year is not more than ₦120 million and the balance sheet total is not more than ₦60 million. In other words, the company is a smalll company.
One Person Can Now Be A Director In A Small Company
The new law also made provisions concerning directors of a company. According to it, the minimum number of directors for every company (whether public or private) shall be two directors. However, in the case of a private company which is a small company, the minimum number of a director shall be one, unless otherwise provided by the company’s articles or any applicable industry specific legislation.
Other notable provisions include that a director of a public company shall not hold position of both the CEO and the Chairman at the same time. Again, a person cannot be a director in more than 5 public companies at a time.
For the first ever, the new company law is properly defining who an independent director is. Consequently, there must be 3 independent directors in every public company, who must not be employees in the company and who have not made or received any payment in excess of N20m from the company. They must also not own more than 30% direct or indirect equity in another company transacting with (transaction sum should not be more than N20m) the company. They should also not own more than 30% direct or indirect equity in the company.
Nigeria company law Nigeria company law Nigeria company law Nigeria company law Nigeria company law
The new law is also revolutionary in that it gives wider options to places where the meetings of a company may be held. Accordingly, it states that although all statutory and general meetings of companies may be held in Nigeria, small companies or companies with a single shareholder may hold its meetings anywhere in the world. Again, a private company (and not public companies) may hold all its meetings on the internet provided that it has created room for that in its articles of association.
Electronic Communications And Ease of Doing Business
The new law now make it possible for business to be run more easily. For instance, every member can now have a right to attend any general meeting of of a private company (either physically or electronically) and to speak and vote on any resolution (physically or through electronic means) before the meeting. The certified true copies of all such electronically filed documents are now admissible in evidence.
Struggling Companies In Distress Can Now Be Rescued From Total Collapse
Under the new law, the directors of the company may voluntarily arrange with those the company is owing for a way of satisfying all outstanding debts owed by the company.
No More Common Seal For Companies
The law has also put an end to the requirement for each company to have a common seal. In its place, it states that should any document be required by any law or otherwise to be under the common seal of the company, it is enough if the documents were signed by a director and a secretary; or by at least two directors of the company; or by a director in the presence of a witness who shall attest the signature.
Better Legal Framework For A VC Fund
Under Nigeria’s newly passed Companies and Allied Matters Act (‘The CAM Act’), it has also become easier to set up a legal structure for a VC fund. By the terms of the new law, venture capital firms in Nigeria may now be set up as limited liability partnership or limited partnership.
Previously, before the law came into being, it was normal practice to register VC firms as limited liability companies; general or limited partnerships, or as limited liability partnerships under the Partnership Law of Lagos State (Nigeria’s major economic city).
Even though under the old regime, general and limited partnerships could be registered and applied throughout Nigeria whereas limited liability partnerships only applied in Lagos, the new regime spells out definite governance framework for partnerships generally, as well as enlarges the operational scope of partnerships to cover the whole of Nigeria, and not just Lagos alone.
The essential difference between a limited liability partnership and a limited partnership under the new law is that while a limited liability partnership is a corporate body which has a legal personality different from the partnership as well as a perpetual succession, a limited partnership has no separate identity from those of the partners that make it up.
Indeed, a limited partnership under the new law captures the ideal form of most VC funds, which usually have one or more partners called general partners — responsible for the management of the funds under the partnership, and who are also liable for the debts and obligations of the partnership — as well as one or more persons known as limited partners — who contribute certain sums of money or property to the partnership and who shall not be liable to the debts and obligations of the partnership.
Apart from properly providing a clear legal framework for the operation of VC funds in Nigeria, the new partnership regime, under the CAM Act, also functions to provide some clarity about their taxation. To read more on this, click here.
Bottom Line:
Remarkable, especially with the introduction of new provisions that have taken care of the difficulties necessitated by the coronavirus pandemic. However, apart from these, in practice, the law remains substantially the same with the old version. While certain provisions may look attractive given their cost-saving implications, there are several provisions which are unsuitable for companies with long-term vision.
For more on the new law and how it may affect your startup company, click here. (PDF)
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Startups in the West African Economic and Monetary Union (UEMO) space have the opportunity to share a jackpot of FCFA 193 million ($350k) put into play by the union by taking part in a competition called “UEMOA Startup 2020 Springboard”.
African Startups
Until November 30, young entrepreneurs from Togo, Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger and Senegal will compete to carve out their places as the best in the union. The Competition, which has both a community and national dimension, aims to support efforts to promote modern and innovative entrepreneurship and to accelerate the development of startups within the union.
“More specifically, the Competition aims to identify, reward and support the best startups that will stand out through the relevance of their activity and their impact on the green economy, as well as to stimulate support structures for entrepreneurship,” a statement to that effect noted.
This competition aims to promote entrepreneurship through financial support ranging from 1 to 15 million FCFA, granted to innovative start-ups having an impact on the green economy.
To participate, you must meet the following conditions: be a start-up created after June 30, 2017, carry out economic activities in one or more UEMOA member states, contribute to the green economy, and become attached to a structure support for entrepreneurship in submitting their application. In addition, the main promoter must be born before June 30, 1975, and be a citizen or resident of a WAEMU member state.
The deadline for submitting applications is November 30, 2020.
This 1st edition of the Springboard start-up competition was launched in collaboration with the Regional Consular Chamber (CCR-UEMOA) and the National Consular Chambers (CCn) of the UEMOA Member States
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
