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How To File Your Data Protection Compliance Audit Returns in Nigeria

January 27, 2024

In accordance with the Nigeria Data Protection Act (NDP Act) 2023, the filing of Data Protection Compliance Audit Returns (CAR) is a mandatory obligation for both data controllers and data processors, as stipulated in the Nigeria Data Protection Regulation (NDPR) 2019. This comprehensive guide aims to provide a step-by-step approach for filing these returns, promoting transparency, and ensuring accountability in the processing of personal data.

1. Reliance on NDPR for Filing of CAR

Data Controllers and Data Processors are advised to rely on Articles 4.1(5) and (7) of the NDPR to submit CAR to the Nigeria Data Protection Commission (the Commission). It is crucial to note that the NDPR remains applicable, subject to any overriding provisions of the NDP Act or regulatory instruments issued pursuant to it.

2. The Role of Data Protection Compliance Organizations (DPCOs)

a) DPCOs are instrumental in facilitating the filing of CAR with the Commission, minimizing financial constraints for Data Controllers and Data Processors. b) DPCOs may, under certain circumstances, engage in CAR work as a Corporate Social Responsibility (CSR), particularly for start-ups, non-profit organizations, and low-revenue entities, emphasizing the promotion of voluntary compliance. c) CAR serves as an opportunity for practical training of designated Data Protection Officers (DPOs) and staff members, with evidence of training earning CPD credits. d) DPCOs are responsible for disseminating this Guidance Notice to their clients or prospective clients.

3. CAR Focus Areas

a) The audit report should emphasize the following: i. Awareness ii. Capacity Building iii. Privacy Policy iv. Compliance Directives to Employees, Contractors, Agents, etc. v. Availability of Data Protection Officers vi. Categories of Personal Data being processed vii. Technical Measures for ensuring Confidentiality, Integrity, and Availability of Personal Data viii. Grievances Redress Mechanism ix. List of agents or contractors engaged for data processing and their compliance with the NDP Act.

b) For the year 2022, agents or contractors should provide details of their Technical and Organizational Measures (TOM) for data protection in the Digital TOM form provided by the Commission.

4. Compliance Memorandum

a) Data controllers or processors may outline a time-bound intention to regularize data processing activities in line with the NDP Act in a Memorandum. b) The Memorandum, signed by the designated DPO, should be submitted to the Commission as part of the CAR, with a time-bound intention not later than March 31, 2024.

5. Free Induction Training for Designated DPOs

a) Designated DPOs are required to participate in an induction training organized by the Commission in January 2024. b) The training will focus on data subjects’ rights and compliance obligations of data controllers and processors under the NDP Act and its General Application and Implementation Directive (GAID).

6. Default Fee

The deadline for filing under the NDP Act and the NDPR is March. The applicable date for the 2022 CAR under this Guidance is March 15, 2023. A default fee, amounting to 50% of the filing fee, applies if a data controller fails to file on or before the deadline.

Effect of Non-Compliance

Failure to comply with this Guidance Notice may lead to enforcement orders or sanctions under the NDP Act, including penalties or remedial fees, depending on the severity of the violation.

For detailed liabilities and enforcement procedures, refer to Sections 48 and 32 of the Nigeria Data Protection Act.

Rating Compliance Metrics in the National Data Protection Programme (NaDPAP) Whitelist

S/N	METRICS	NDP ACT SECTIONS	POINT
1	Verifiable Evidence of Conformity with Data Protection Principles and Lawful Basis. (Privacy Policies and Notices, Consent forms, Visitors Book, audio visual evidence of compliant data processing, etc may be used)	24 & 25	15
2	Accountability and Prompt Responsiveness to Regulatory Processes. (Timely filing of CAR, Resolution of Complaints, Registration and Data Subjects Access Request are focal areas)	24, 6(d), 24(3) & 61(2) (g)	15
3	Sensitization of Data Subjects on Data Subjects Rights	27 & 34-38	10
4	Appointment of A Verifiably Competent DPO	32	5
5	Engagement of a DPCO	33	5
6	Filing of Compliance Audit Returns	6(d) & 61(2)(g)	10
7	Data Privacy Impact Assessment	28	10
8	Accessible and Functional Internal Remediation Mechanism	40(8)	10
9	Globally Acceptable Information Security Certifications. Privacy by design is pivotal.	24(2) & 39	10
10	Continuous Awareness / Capacity Building Programme for Staff, Contractors, Licensees, etc (This in furtherance of the overall objectives of the Act	1	10
TOTAL			100

Clarification on NaDPAP Whitelist: A Tool for Accountability

The NaDPAP Whitelist serves as a vital instrument for accountability, distinguishing itself from an immunity list or a shield against data subject complaints.

Not an Immunity List or Shield: The Whitelist should not be misconstrued as conferring immunity or acting as a shield against data subject complaints.
Functional Data Repository: It functions as a comprehensive repository of data controllers and processors, providing a clear overview of entities involved in data processing activities.
Rebuttable Presumption of Commitment: Inclusion in the Whitelist creates a rebuttable presumption. It is understood that a data controller or processor on the list is committed to implementing robust technical and organizational measures to safeguard the rights of data subjects.

All enquires about filing data audit returns in Nigeria should be forwarded to info@progressionlawfirm.com.

Data returns filing Nigeria Data returns filing Nigeria

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

CEI Africa Invests €1M in InspiraFarms Cooling to Boost Sustainable Cold Storage Solutions in Africa

January 26, 2024

The Foundation for Clean Energy and Energy Inclusion for Africa (CEI Africa) has announced a significant investment of up to EUR 1 million in InspiraFarms Cooling, reinforcing its commitment to advancing sustainable cold storage solutions across the African continent. The investment, facilitated through a convertible note, is in collaboration with existing investors KawiSafi and Factor[e].

This development follows InspiraFarms Cooling’s successful Series-B round in 2020 and a strategic investment agreement with InfraCo Africa in 2023 to pioneer its innovative ‘Cooling-as-a-Service’ model.

InspiraFarms Cooling specializes in designing, developing, and installing efficient precooling and cold chain technology tailored for fresh produce, flowers, and animal protein supply chains in Africa and other emerging markets. The aim is to address the critical challenge of limited cold storage accessibility, with only 5% of African fresh produce entering the cold chain compared to Europe’s 94%.

The company’s cooling solutions play a pivotal role in reducing energy costs, minimizing food losses, extending shelf life, and ensuring compliance with stringent global export standards. InspiraFarms Cooling offers both tailor-made and standardized solutions adaptable to various energy sources, including 100% off-grid options.

The scarcity of cold storage infrastructure in Africa contributes to the alarming loss of 30–50% of fresh produce, making food loss the second-largest emitter of greenhouse gases on the continent. InspiraFarms Cooling’s sustainable approach not only addresses these environmental concerns but also generates high-quality rural jobs through the deployment of cold storage solutions.

Julian Mitchell, CEO of InspiraFarms, expressed his delight at welcoming CEI Africa as an investor, emphasizing the shared commitment to sustainable impact within the fresh produce industry. He stated, “Access to quality cooling is fundamental for clients to reduce post-harvest losses, and sell more, at better prices, with lower costs, bringing both economic and climate benefits.”

CEI Africa’s investment is not just a financial commitment but a strategic move to support InspiraFarms Cooling’s off-grid energy cold storage projects across the continent. Moreover, it is linked to catalyzing additional capital through crowdfunding for energy-efficient cold chain infrastructure.

Steven Evers, Member of the Executive Board of CEI Africa, highlighted the broader impact of the investment. “Our investment in InspiraFarms Cooling will not only support the growth of the off-grid energy cold-storage sector in sub-Saharan Africa but will also catalyze private retail investment into the sector through crowdfunding,” he stated.

InspiraFarms Cooling has already deployed hundreds of units across 15 countries, offering agribusinesses, exporters, third-party logistics, and food distributors the necessary cooling solutions for their perishable products. The company’s ongoing mission is to make cooling solutions more accessible, efficient, and sustainable for businesses of all sizes.

CEI Africa, established by the German development finance institution KfW, manages funds on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The Foundation focuses on improving access to energy for rural and peri-urban households and enterprises in sub-Saharan Africa. This investment aligns with CEI Africa’s mission to support off-grid energy companies and mini-grid project developers.

As the partnership between CEI Africa and InspiraFarms Cooling unfolds, it promises not only to enhance cold storage capabilities but also to contribute significantly to reducing food losses and advancing sustainable practices in the agribusiness sector across Africa.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

Agri-Fintech Firm Apollo Agriculture Secures $10M to Boost Small-Scale Farming in Kenya

Swedfund, Sweden’s development financier, has committed to supporting Apollo Agriculture, an agri-fintech company based in Kenya, with a substantial loan of USD 5 million. This investment marks a significant step in promoting sustainable agriculture, enhancing food security, and fostering technological advancements in small-scale farming.

Apollo Agriculture, led by CEO Eli Pollak, specializes in delivering agricultural products such as seeds and fertilizer to small-scale farmers. The investment from Swedfund, accompanied by another USD 5 million contribution from ImpactConnect, a Team Europe partner, brings the total investment to USD 10 million. Swedfund’s CEO, Maria Håkansson, stated, “The food sector will be a growing sector for us in the future,” emphasizing the importance of this collaboration within the Global Gateway strategy.

The loan from Swedfund is provided with a 50% guarantee from the European Union under the EFSD+ framework. This marks the first instance of Swedfund utilizing an EU guarantee within the Global Gateway strategy, aligning with the Climate and Energy investment priority.

Apollo Agriculture’s primary focus is on maize cultivation, a staple food in Kenya, and the most common crop for small-scale farmers. With a network of around 7,000 sales agents and over 350,000 farmers as customers, Apollo aims to transform small-scale agriculture through a comprehensive approach encompassing distribution, advice, insurance, and financing.

Kenya faces significant challenges due to climate change, making it vulnerable to unpredictable weather patterns. To address this, Apollo Agriculture incorporates climate-smart measures such as drought-tolerant seeds, blended fertilizer, insurance, agronomic education, and certifications. These measures play a vital role in promoting resilience and sustainability among small-scale farmers, contributing to food security and climate change mitigation.

Eli Pollak, CEO of Apollo Agriculture, expressed gratitude for the partnership with Swedfund, highlighting that this loan is a crucial step towards realizing their vision of transforming small-scale agriculture. The funds will enable Apollo to expand its reach and make a more significant impact on farmers’ lives.

The collaboration between Swedfund, ImpactConnect, and Apollo Agriculture not only emphasizes responsible investments and sustainable development but also aligns with the EU’s Global Gateway strategy. This strategy aims to mobilize €300 billion in investments between 2021 and 2027 to reduce risks for private sector investments in partner countries.

Swedfund’s investment in Apollo Agriculture is poised to create more employment opportunities, improve agricultural production, and drive the adoption of new technology in small-scale farming. As both entities work together to enhance food security and access to financing for farmers in Kenya, the partnership stands as a beacon for innovative solutions in the field of agri-fintech, contributing to a more sustainable and prosperous future for the agricultural sector in the region.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

South Africa’s Progressive Business Forum Honours Ronnie Ntuli

January 25, 2024

African Export-Import Bank has announced that its board member, Mr. Ronnie Ntuli has been awarded the Progressive Business Forum’s (PBF) prestigious Lifetime Achievement Award and was presented with the accolade at the Presidential Gala Dinner and special celebrations that marked three decades of democracy in South Africa.

The award, which was presented at the PBF’s inaugural “Show Up” awards ceremony, recognizes and celebrates individuals who have distinguished themselves in business, public service and, through their commercial, entrepreneurial and civic ventures. It also recognizes those who have acted to improve the common good and promote the wellbeing of others.

Mr Ntuli’s receipt of this award constitutes a recognition of his extraordinary contribution to the expansion of Southern Africa’s rail network and his application of engineering expertise to continental transport and logistics assets. Mr Ntuli founded and established the Thelo Group, as one of the continent’s eminent financiers of railway infrastructure and rolling stock, and the region’s most significant supporters of industrial development and high-value exports.

Further to these economic contributions, Ronnie has served his country and continent through extensive advisory work for a range of African Heads of State, where he has leveraged his unrivalled financial and engineering experience – as well as his background in Law – to help decision-makers devise policies and strategies to accelerate economic development and entrepreneurship.

Afreximbank President and Chairman of the Board of Directors, Prof. Benedict Oramah, said that he is “delighted that my dear friend, and much-trusted advisor on Afreximbank’s Board, Mr. Ronnie Ntuli, has been recognized by the Progressive Business Forum for his decades of work on this continent. As both businessman and advisor, Ronnie’s contribution to our shared prosperity and development is quite simply incalculable. His counsel has been indispensable to the Bank, particularly as we navigated the challenges of implementing the African Continental Free Trade Area agreement.”

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

Burundi Laboratories Gain International Recognition

Institute of Agriculture Science of Burundi

In an historic achievement for Burundi’s Quality Infrastructure System, the Laboratory for Soil Analysis and Food Products (LASPA) of the Institute of Agriculture Science of Burundi (ISABU) and the Chemistry Laboratory of Burundi Bureau of Standards and Quality Control (BBN) have been accredited on the first key parameters to comply with international standards.

The accreditation lends credibility and generates confidence about the lab results at the global level. “We are proud of being recognized by international bodies. BBN was created in 1992 and after 32 years, it is now accredited for first parameters thanks to MARKUP Burundi Project interventions,” Quality Assurance Director of BBN said.

Since 2018, Quality Infrastructure institutions including the BBN, ISABU, the National Centre of Food Technology (CNTA) and the Plant Protection Directorate (DPV) have been receiving support from the European Union funded EU-EAC MARKUP Burundi project.

Legal framework of the Quality Infrastructure was reviewed and upgraded, and technical and material support was also provided.

Officer in-charge of LASPA appreciating the success said, “The fact of recognizing ISABU laboratory by international bodies as accredited on first parameters is a milestone in the process of being accredited on other parameters. We are grateful for the package of interventions put into place to come up to this achievement. We are encouraged to build on this cornerstone and committed to sustain it. The journey is long but we work to enable private and public sectors to meet market requirements.”

Improved quality is a promise of greater market access for Burundi’s export products. MARKUP Burundi supported the development of the National Quality Policy of the country, approval and launch by the Government including implementation of several key activities of its action plan and achieving accreditation of its conformity assessment bodies.

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

Secretary Blinken Opens Newest American Corner in Nigeria

The U.S. Secretary of State Antony J. Blinken has declared open the latest American Corner in Lekki, Lagos which is the newest addition to the United States’ global American Spaces network that comprises more than 600 cultural and information centers in more than 140 countries in every geographic region worldwide. This year, American Corners, supported by local partners and part of the American Spaces network, celebrates its 20th anniversary and continues to expand its global footprint as a vital part of the United States’ people-to-people engagement strategy to expand access to education, economic opportunity and equity, and societal inclusion.

American Corner Lekki represents the future of the American Spaces network, providing local communities easy access to programming and resources on U.S. culture, English-language learning opportunities, internet service, as well as advising services for study in the United States, skills and professional development programs and trainings.

In 2023, the American Spaces network — which includes American Centers, American Corners, and Binational Centers — reached over 41 million people worldwide through nearly 1.5 million engagement programs and opportunities.

The Department’s American Spaces network in Africa consists of 172 American Spaces in 52 countries. In 2023 alone, the American Spaces network in Africa hosted approximately 20,000 in-person and virtual programs, reaching more than 1.6 million participants across the continent. Nigeria’s network of American Spaces includes two American Centers, located in Abuja and Lagos, and 10 American Corners located in universities, libraries, and community centers across the country. Last year, Nigeria’s American Spaces and Affiliates reached nearly 100,000 participants in 21 cities through approximately 4,400 programs focused on civic engagement, media literacy, women’s participation in politics, STEM education, creative industries, entrepreneurship, and youth development.

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

Rwanda’s Sawa Energy Secures Funding to Drive Sustainable Energy Solutions Across East Africa

Sawa Energy, a leading provider of affordable energy efficiency solutions in East Africa, has successfully attracted significant investment to accelerate its mission of revolutionizing the energy sector in the region. With operations spanning Rwanda and Uganda, the company is addressing the pressing challenge of energy accessibility for small and medium businesses.

Established in 2021, Sawa Energy is committed to reshaping how businesses access power by eliminating upfront costs associated with solar and energy-efficient solutions. This strategic move aims to make sustainable energy more accessible and affordable, contributing to a greener and more sustainable future for East Africa.

Sawa Energy’s unique approach involves constructing, owning, and operating solar systems for its clients, fostering significant cost savings and mitigating electricity pricing volatility. The company’s ambitious goal is to become the largest private provider of solar power in East Africa by 2030, showcasing its dedication to promoting environmentally friendly practices.

Samuel Kaufman, Chief Executive Officer and co-founder of Sawa Energy, emphasized the company’s broader impact goals, stating, “Our passion at Sawa Energy is to create a business that delivers on three critical fronts — building partnerships with East African companies, reducing emissions, and providing robust returns to our investors. We strongly believe in creating a sustainable model that benefits all stakeholders.”

What sets Sawa Energy apart is its commitment to removing financial and operational barriers to adopting solar power. The company provides local businesses with integrated energy solutions at no upfront cost, along with no operation and maintenance fees. This approach ensures a seamless and worry-free transition to cleaner and more affordable energy for its customers.

Blessing Layee-Maima Caine, Renew Capital’s Investment Manager for Rwanda, praised Sawa Energy’s transformative approach to sustainable energy solutions, saying, “Sawa Energy’s approach to affordable and sustainable energy solutions is transformative for East African SMEs. Renew Capital, as one of the investors in the consortium, is proud to support Sawa Energy’s vision of a future where businesses can grow sustainably and cost-effectively.”

Renew Capital, an Africa-focused impact investment firm, is among the key investors in Sawa Energy. The firm supports growth-oriented founders with a unique blend of skill, grit, and passion. Investments made by Renew Capital are managed on behalf of the Renew Capital Angels, a global network of angel investors, foundations, and family offices seeking financial returns and sustainable social impact.

As Sawa Energy secures vital investments, the company is poised to play a pivotal role in reshaping the energy landscape across East Africa, fostering economic growth, and promoting sustainable business practices in the region.

Sawa Energy Rwanda Sawa Energy Rwanda

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

Tunisian VC 216 Capital Leads $500K Funding for Senegal’s ProXalys

Tunisian venture capital firm 216 Capital has taken a significant step towards fostering digital transformation in Africa with its recent announcement that it has led a $500,000 funding round for pan-African startup ProXalys Inc. The fintech company, based in the United States (New York) and Senegal, focuses on the digitalization of the informal sector and aims to facilitate the migration of informal businesses to formal channels.

ProXalys Inc has expanded its operations to Tunisia and is making waves with its latest product, “ProBoutiK,” designed to revolutionize operational methods for informal businesses. This application includes features for invoicing tracking, financing offers, and a supply marketplace, enhancing the ability of informal entrepreneurs to sell and meet working capital needs.

The $500,000 funding round comprises three funds, with 216 Capital leading with $300,000. Support is also provided by Haskè Ventures and Digital Africa (through the FUZE program). ProXalys Inc plans to leverage this funding to accelerate the Go-To-Market strategy for “ProBoutik” and strengthen its DATA & AI teams in Tunisia and Senegal, establishing a strong presence in both sub-Saharan Africa (from Dakar) and the North African region (from Tunis).

ProBoutiK’s commitment to the digitalization of the informal sector positions the startup uniquely in the landscape of online payment solutions. This promises competitiveness and responsibility on a continental scale, especially considering the challenges faced by the informal trade in Africa, which includes over 60 million micro-businesses with a funding requirement exceeding $400 billion.

These businesses, generally unregistered since inception, encounter challenges in managing accounts receivable, bookkeeping, and e-commerce. ProBoutiK addresses this gap by introducing an application that allows entrepreneurs from the informal sector to handle these aspects through a unified platform built on a multifunctional wallet.

Hassen Arfaoui, Principal Investment Manager at 216 Capital, expressed enthusiasm about the collaboration, stating, “Proxalys Inc. through its product ProBoutik represents a significant contribution to digitalization and financial inclusion in Africa’s informal retail sector. The collaboration reflects a shared belief in the necessity of financial inclusion and digital transformation to drive sustainable economic development in the region.”

Founded in 2022 by Senegalese entrepreneur Thierno Sakho, ProXalys Inc emerged from Sakho’s extensive experience in financial markets, corporate banking, and insurance. The company aims to centralize digital payments, transforming informal businesses into formal enterprises and creating an economic environment conducive to their growth.

In a similar vein, 216 Capital, founded in Tunis in 2021, is a seed and pre-seed venture capital firm specializing in technology companies. It invests with determined and creative entrepreneurs building disruptive businesses, reaffirming its commitment to building a better future for Africa. The firm aims to make a real and lasting impact, stimulate economic growth, and foster positive change in communities affected by this value creation.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

Egypt’s DXwand Secures $4M Series A Funding to Drive AI Innovation and Regional Expansion

Middle East-based artificial intelligence (AI) startup DXwand has successfully concluded a Series A funding round, securing a total of $4 million in investment. The funding was led by prominent investors Shorooq Partners and Algebra Ventures, along with continued support from existing investor Dubai Future District Fund.

Founded in 2018 by Ahmed Mahmoud and Mahmoud Gomaa, DXwand has rapidly emerged as a powerhouse in the field of AI-driven software. The platform specializes in automating text and voice conversations between customers and businesses across various channels, including call centers, Facebook Messenger, WhatsApp, SMS, and websites.

This recent investment follows a pre-Series A round in June 2022, where DXwand raised $1 million. Huashan Capital and US-based VC firm SOSV led that round, with additional support from angel investors.

The newly acquired funds will play a pivotal role in DXwand’s expansion plans within the region. Moreover, the investment will be instrumental in accelerating the startup’s research and development initiatives, particularly in the areas of generative AI, knowledge mining, and omnichannel conversational AI.

DXwand’s unique AI-driven software is designed to facilitate seamless interactions between businesses and customers. The platform, operational in both Arabic and English, utilizes advanced language processing capabilities to automate conversations and extract valuable insights. This data is then presented on dashboards, enabling businesses to make informed decisions.

Commenting on the successful funding round, Ahmad Mahmoud, CEO of DXwand, expressed enthusiasm about the opportunities it presents: “This significant investment marks a pivotal moment for DXwand, enabling us to propel our regional expansion and intensify our commitment to advancing Gen AI and RAG technologies. We are excited about the possibilities this funding opens up for DXwand and the broader landscape of conversational AI.”

Shorooq Partners’ Tamer Azer emphasized the strategic importance of DXwand’s technology, stating, “DXwand enables companies to grow not just faster but also smarter, and enables governments to become far more efficient. Through technology that mines institutional knowledge to deliver superior access to information, DXwand enables a far more efficient engagement between governments and companies and their stakeholders, be they citizens, employees, or customers.”

Karim Hussein, Managing Partner at Algebra Ventures, highlighted DXwand’s proven track record in solving real-world problems: “The DXwand team has built a unique and comprehensive suite of AI tools that solve real-world problems for their clients at scale, as evidenced by their impressive and growing roster of satisfied customers, including many of the region’s leading corporations and government clients.”

DXwand’s AI software not only benefits businesses but also extends its capabilities to technical execution teams in sectors such as aviation ground crews and oil and gas remote crews. By harnessing institutional knowledge, these teams can enhance their efficiency and accuracy in fulfilling their duties.

Sharif El-Badawi, CEO of Dubai Future District Fund, emphasized DXwand’s alignment with Dubai’s AI strategy, stating, “DXwand has consistently demonstrated its capabilities as a world-class innovator in Gen AI with impressive growth in the team’s ability to close new sophisticated client accounts. Our continued investment reflects our confidence in their vision and alignment to Dubai’s AI strategy, as reflected in their selection into the Dubai Centre for AI.”

DXwand’s latest funding round not only positions the startup as a dominant force in the Middle East’s AI landscape but also underscores the growing recognition of the crucial role AI plays in transforming industries and enhancing efficiency across various sectors.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

South African Fintech Ukheshe Acquires EFT Corporation in Strategic Fintech Move

Ukheshe Technologies CEO Clayton Hayward

In a significant development for the African fintech landscape, Ukheshe International has successfully acquired 100% ownership of EFT Corporation Limited (EFTCorp) from its parent company, Loita Transaction Services (LXS). This strategic move follows Ukheshe’s noteworthy 2022 acquisition of Masterpass in South Africa and the closure of a funding partnership with Development Partners International (DPI) in 2023.

The acquisition marks a major milestone for both Ukheshe and EFTCorp, demonstrating their shared commitment to innovation and growth in transforming financial services across the African continent. Both companies will continue to operate independently under their respective brand identities, maintaining a focus on their unique strengths and expertise.

EFTCorp, a pioneering force in digital payments with 23 years of experience, operates in 35 African markets, supporting over 100 banks and processors. The company is renowned for its core switching skills and issuer processor technology. Ukheshe, on the other hand, offers a comprehensive range of end-to-end digital services aimed at digitizing banking partners.

The deal positions Ukheshe to access new technologies and opportunities in a diverse market, expanding its reach across Africa and the Middle East. EFTCorp’s management, including its founding CEO Stephen Enderby, will continue to lead the company in the next phase of growth.

Ukheshe’s expertise in digital onboarding, KYC, digital wallets, and various payment channels will present new opportunities to digitize EFTCorp’s traditional customer base, providing them with an expanded suite of innovative digital services. This collaboration ensures EFTCorp’s customers will continue to engage with a trusted brand while gaining access to cutting-edge fintech solutions.

Clayton Hayward, Co-founder and CEO of Ukheshe, expressed his enthusiasm about the consolidation, stating, “The market is ripe for consolidation and disruption, bringing together these like-minded executive teams and our great products positions us to dominate the African continent as the preferred banking solutions partner.”

The acquisition aligns with the group’s strategic goals of scaling and innovating while extending its footprint across markets in Africa and beyond. This move is expected to deliver increased value to customers, shareholders, and partners.

EFTCorp’s CEO, Stephen Enderby, shared his perspective on the partnership, saying, “Together with Ukheshe, we combine great products and extensive executive depth to achieve our growth ambitions. As a group, we continue to look for complementary acquisitions and investment opportunities across the continent and the Middle East.”

James Griffiths, Partner at DPI, expressed his excitement about supporting Ukheshe in this acquisition, emphasizing confidence in Ukheshe’s innovative vision, strong leadership, and exciting growth potential.

Ukheshe International, a leading fintech enablement partner with a global footprint, specializes in enterprise platform delivery of embedded finance. The company strives for transformation and innovation in the payment industry, creating scalable and secure components ready for deployment in market-leading digital-first propositions.

EFT Corporation, with over 22 years of market experience, is a focused payment and eCommerce solutions provider catering to corporations requiring electronic payment solutions. With a robust presence across Africa, EFT Corp services over 140 retail and financial clients and represents seven industry-leading international partners.

Ukheshe EFT Corporation Ukheshe EFT Corporation

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.