The Nigerian financial sector is bound to become quite competitive and interesting with the entrant of Tingo International’s “Tingo Pay” in Nigeria. Interestingly, Tingo Pay is not a new player in the payment industry as it has been serving as the payment system for Nwassa, a platform that connects over nine million stakeholders in the agricultural value chain.
Founder and Group Chief Executive Officer of Tingo International Holdings Inc, Dozy Mmobuosi
On Tingo’s decision to make Tingo Pay available to the public, the Chief Commercial Officer of the Nigerian subsidiary of the company, Tingo Mobile Plc, Ayoola Olaide referenced the low rate of financial inclusion in the country while also pointing out the role that mobile technology is playing to close the gap.
Tingo’s decision is not surprising as the Founder and Group Chief Executive Officer of Tingo International Holdings Inc, Dozy Mmobuosi in 2020 revealed plans to make Tingo Pay available to the general public. In his comment about the launch, Mmobuosi affirms Tingo’s mission to empower societies by offering access to alternative financial services to underserved communities, with a specific focus on providing tailored digital tools. “This mission has driven us to build Tingo Pay,” he said.
Tingo Pay will be launching in Nigeria first, but Olaide revealed that there are plans to launch in other African markets as well.
“For expansion, it will be easier for Tingo Pay to expand to other markets while relying on partners,” Tingo Mobile’s Chief Commercial Officer asserted.
Commenting on the launch, Mmobuosi pointed out the importance of the partnership to achieving Tingo’s goal. He further revealed that Tingo International Holdings works with partners that share the company’s vision for a more inclusive and digitally-enabled financial services sector in Africa. “It is through this common goal, our shared values, and our commitment to financial inclusion, that we begin a long and prosperous relationship,” Mmobuosi said.
While Tingo Pay will be launching with features like bills payment and money transfer, there are plans to have other features like insurance, remittance, betting, hotel, and flight bookings, among others, in the app soon. Tingo’s agricultural platform, Nwassa will also be a feature on Tingo Pay.
“It’s going to be a one-stop-shop for financial activities,” Olaide affirms.
According to Tingo, the future for its payment platform is to provide easy access to payment for both individuals and businesses across its markets. The Tingo Pay app will come preloaded on Tingo-branded smartphones and about 4.5 million units of these devices are expected to be shipped to Nigeria soon.
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
The Egyptian government has said that it will demand the sum of $1 Billion as compensation for following the recent blocking of the Suez Canal by container ship the Ever Given. This was made known by Osama Rabie, Chairman of the Suez Canal Authority (SCA). Rabie claimed that compensation is necessary not only for the revenue lost from toll payments of ships that were unable to pass through the canal, but also for the costs of tugboats and other specialist equipment used in the operation to free the ship. Rabie asserted the critical role played by the authority in the rescue operation. “This ship is carrying cargo worth more than $3.5 billion. We saved them a huge sum of money. We saved the ship itself and we saved their cargo.”
Osama Rabie, Chairman of the Suez Canal Authority (SCA).
“It is the right of Egypt to be compensated,” he explained. “We will not forfeit our right.”
Rabie also stated that the Ever Given is currently in the Great Bitter Lake, a wide stretch of water north of where the ship was initially lodged, until the investigation is closed and an agreement on settling the costs has been reached. Rabie’s comments follow news that the owner of the Ever Given has filed a lawsuit against its Taiwanese operator, Evergreen, as reported by The Lawyer.
The Ever Given, a so-called ‘megaship’, was en route from China to the Netherlands when it became lodged sideways across the canal, blocking one of the world’s most critical trade routes.
It was freed six days later after a rescue operation involving tugboats, dredgers and a Dutch specialist team. It was initially believed to be strong winds and low visibility from a passing sandstorm that caused the crisis, but an investigation is currently underway to determine exactly how the ship became stuck.
The blocking of the Suez Canal had caused more than 300 ships to be stranded on both sides of the Suez Canal, resulting in global economic losses. According to the Suez Canal Authority, more than USD $9 billion of goods a day were being blocked from moving through the Suez Canal, with Egypt losing at least USD $14 million in revenue a day. The Suez Canal is one of the world’s most important waterways. The existence of man made canals connecting the Mediterranean Sea to the Red Sea can be traced back to 1310 BC, but construction of the modern canal was completed in 1869. Nowadays, the canal oversees around 10 percent of global maritime trade annually, and tolls paid by passing vessels are a vital income source for the Egyptian government.
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
The Flat6Labs acceleration program, “Flat6Labs Tunis Seed Program” has just announced the start of its 7th acceleration cycle and has equally launched calls for startups to apply to be selected for its 8th cohort.
Flat6Labs is one of the leading seed venture capital companies in the MENA region. It currently manages the most reputable startup programs in the region.
Flat6Labs
Each year, Flat6Labs invests in over 100 innovative and tech-driven startups, enabling thousands of passionate entrepreneurs to achieve their ambitions and ultimately become their institutional co-founders.
Flat6Labs runs a 4-month accelerator program, twice a year, to help entrepreneurs develop their business skills and provide them with a supportive environment, to build their products, test their suitability for the market, improve their business models and showcase their products to external investors.
Since 2017, FLat6Labs Tunis Seed Program has supported 51 startups from 7 regions of Tunisia, invested 12 million Tunisian dinar and created more than 350 highly qualified jobs.
The 8 new startups selected for the 7th cycle of Flat6Labs operate in different sectors of activity, namely health, e-commerce, delivery, fashion, services, ed-tech as well as health and well-being.
These are:
Ahkili startup (mobile app for making appointments connecting patients to psychologists through telemedicine);
E-stores Factory (Web platform that allows you to rent and manage e-commerce stores for companies looking to sell online);
Hanoutify (Website generator that helps stores in the Maghreb region to develop their online presence;
Ms. Marion (Ready-to-wear brand for women who work in a formal work environment);
Lamma (Web and mobile platform which is reinventing urban mobility for parcel delivery through an extensive carpooling network);
Proservy (Web platform that digitizes the administrative and logistics management of companies);
Reedz (Mobile application for podcasts in Arabic and interactive book summaries in text and audio); and
WeMove (Marketplace for day passes to gym activities).
“With the new challenges faced by entrepreneurs in the context of the new economic situation, it is our duty to support startups even better, by offering them a more suitable offer. Our program has become 100% virtual and this allows more ‘accessibility to startups from all regions of the country to be part of it,” says the general manager of Flat6Labs Tunisia, Yehia Houry.
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
Vneuron, a Tunis-based company that specializes in software development and IT services, has just completed its second fundraising since its creation in 2007. Although the exact amount involved in this round of investment was not disclosed, Fateh Bel Hadj Ali, Executive Partner of Vneuron said Vneuron would use the new funding to conquer new international markets.
The investment which came from Tunisian American Enterprise Fund (TAEF), followed a previous one in 2017 from Africinvest — which was Vneuron’s first first fundraising round.
Tunisian American Enterprise Fund (TAEF) is fully a funded $100 million fund, backed by the U.S. Agency for International Development (USAID) for a 10 year term after the fifth year. TAEF expects to actively invest through 2027, at which point it would begin a period of winding down through exits and dis-investments.
Fateh Bel Hadj Ali is the Executive Partner of Vneuron
Founded in 2007, Vneuron is a software publisher and one of the leading players in digital transformation, risk management and regulatory compliance as well as operational excellence for banks, insurance companies, credit institutions, corporations, asset management, stock market intermediaries, public administration, mass distribution and health.
Vneuron has more than 200 customers spread over three continents. Its solutions help institutions to effectively manage, in an integrated and end-to-end manner, the process of entering into relationships on digital and conventional channels, as well as compliance with regulations and the automation of business processes.
By accelerating compliance and improving operational efficiency, Vneuron’s solutions help onboard customers quickly, improve market shares and improve the overall experience of customers and partners.
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
“You may kill me with your hatefulness, but still, like air, I’ll rise”. Maya Angelou was so right. These profound words do ring true today when we look at the recent coward attacks by terrorists against defenseless Mozambicans. There’s so much at stake in Mozambique, where the separatist militia known as Haul Sunnah Wa-Jamo (ASWJ) has stepped up its campaign to seize territory in Cabo Delgado, the country’s northernmost province.
NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group
On March 24, more than 100 ASWJ fighters attacked Palma, a town in Cabo Delgado, from three sides. Mozambique’s Defense and Security Forces, known locally as SDS, moved in quickly and mounted a counter-attack the next day, but they were not able to regain control immediately.
Moreover, they did not arrive in time to prevent Palma’s residents from violence and death. As of the time I’m writing this, the number of exact casualties is still unknown, but credible sources have reported that there are dead bodies on the streets of the town — and that some of the corpses have been beheaded.
High-Stakes Conflict
Mozambique’s government has strong incentives to push back against ASWJ, which has been staging deadly attacks in Cabo Delgado since 2017.
From a diplomatic and political standpoint, it is keen to preserve the territorial integrity of the country and quash the threat to the central government’s authority. (This is a sensitive issue, since many residents of Cabo Delgado feel marginalized and ignored by the government, even if they don’t view ASWJ as a viable alternative.)
From a geopolitical standpoint, it is intent on prevailing against a group that is serving as the local arm of the Islamic State, also known as Daesh. It’s not interested in letting the country become a haven for terrorism. And yes, this is terrorism – not fighting, not unrest, but terror. Sometimes we in the energy industry have to call it for what it is, no matter how careful we may want to be.
Mozambican leaders understand very well that launching a counterinsurgency push in Cabo Delgado against these extremists will not just defeat the tiny and desperate bands of armed terrorist. Instead, if experience in the rest of the world is any guide, it could transform these zeros into heroes. It will embolden them and strengthen their resolve. And it will enable them to excel in their favorite role, that of persecuted martyr. We must win them over with carrots and sticks and transform communities. Pretty smart thinking. They want to do this right and they want results and still keep the country together. We should support them.
From an economic standpoint, it is determined to eliminate obstacles to the development of the huge natural gas fields that lie off the coast of Cabo Delgado. These gas reserves have already attracted more than US50 billion worth of investment commitments from consortia led by major international oil companies (IOCs) such as France’s Total, Italy’s Eni, and U.S.-based ExxonMobil. Total and its partners have already devoted a great deal of time, effort, and money to the establishment of an onshore base and liquefied natural gas (LNG) plant on the Afungi Peninsula.
This complex, which is just a few kilometers away from Palma, will support upstream development work at the offshore block known as Area 1. It isn’t yet complete, though. If it can’t be finished, Total will have a hard time proceeding with its US20 billion Mozambique LNG project — and Eni and ExxonMobil will have a hard time following suit with their own South Coral LNG and Rovuma LNG projects. This is a real threat, given that Total had to suspend work and evacuated energy workers from the construction site in January, following a series of attacks near Palma in December. Indeed, it’s worth noting that the attack on Palma occurred shortly after reports emerged that Total was preparing to bring workers back before the end of March.
Terrorism and Human Suffering
But the threat to Mozambique isn’t just about gas. It isn’t just about money or security or power or territorial integrity.
It’s also about people. Human beings.
The conflict in Cabo Delgado is wrecking people’s lives on a vast scale. More than 700,000 people have already fled their homes in northern Mozambique, and the count is still rising. According to the United Nations’ refugee agency, UNHCR, the number could top 1 million by the middle of the year if the international community does not take steps to end the conflict.
Thanks to the support and encouragement from President Filipe Nyusi, his government and the governor of Cabo Delgado. I went to Cabo Delgado. The President and Mozambican officials ensured my delegation had complete and unfettered access to the region. Even during the attacks, I still had a team in Cabo Delgado. I’ve seen this suffering firsthand. I paid a visit to a refugee camp in the region. I talked to people who have been hurt, who have seen their family members slaughtered by ASWJ fighters. I met children, some of them as young as 8 or 9 years old, who have been assaulted by terrorists.
And these traumatized souls are living in makeshift, flimsy facilities that are basically made of leaves!
I’m heartbroken and outraged. I’d like to say I’m hopeful that things will change soon, but the UNHCR’s forecast of an increase in the number of refugees over the next few months gives me pause. (It’s also sobering to hear that the UNHCR has only been able to raise 5% of the US254 million in funding that it sought for its work in Mozambique last November.)
Cabo Delgado Needs More Than Security
I’m not trying to give the impression that nothing is being done for Cabo Delgado and its people. That would not be fair or accurate.
With respect to security, Maputo has pledged to work with Total to establish a safe zone around the gas complex on the Afungi Peninsula. It will have to step up its efforts on this front, given that the attack on Palma occurred inside the perimeter of the designated zone, but it is seeking help. Also, earlier this month, Mozambique’s government invited U.S. military advisors and special forces into the country to deliver counter-terrorism training. It has also accepted an offer from Portugal, its former colonial ruler, to provide additional training for the Mozambican armed forces.
But this isn’t going to be enough.
Even though Mozambique’s government is committed to doing everything it can to bring real peace and stability to Cabo Delgado, it needs more support than it is currently getting. It will need ongoing support from the international community — not just in response to the most recent attacks, but for the long haul.
If it doesn’t get that, ASWJ will continue to wreak havoc and force people out of their homes, making terrorism the biggest cause of poverty in Mozambique. If there isn’t enough help — and if large-scale projects like Mozambique LNG no longer are an option to create jobs and grow the economy — the country will sink further into despair. Cabo Delgado’s people will feel even more marginalized. The country’s natural environment will continue to suffer damage, and there will be no one available to help.
Doing More — And Doing Better
So now more than ever, we have to find ways to combat terror in Cabo Delgado.
There has been talk about negotiations and giving amnesty to ASWJ members who give up the fight. And as I’ve already mentioned, there are plans to provide training and advisory services to Mozambique’s armed forces.
But we have to do more, and we have to do better — not just the international community, but all of us, as individuals and business leaders.
We can start by denouncing the evil that we’re seeing in Mozambique. We must condemn the assaults and the crimes that are being committed by the terrorists who seek to gain control of Cabo Delgado. We can’t just remain quiet, as if nothing consequential is happening there. We must give President Nyusi the necessary support and backing to fix this.
Right now, more than ever, the country needs our support and our voices, and our involvement. “Leaving behind nights of terror and fear, I rise. Into a daybreak that’s wondrously clear, I rise”. Concluded Maya Angelou. Energy workers, Palma, Cabo Delgado and Mozambique will rise out of this like the African sun rises everyday.
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
African telecoms giant MTN is exploring the deployment of other electronic payment platforms for its customers in Nigeria to recharge their phones after disagreements with commercial banks led to disruptions of USSD services. The decision comes after its customers suffered a series of disruptions and inability to recharge their phone lines and some other services offered jointly by MTN and commercial banks owing to disagreements between the two parties over commission and service charges.
MTN
It could be recalled that over 77 million MTN subscribers were disconnected from all banking channels by the commercial banks, due to disagreements over banks’ commission which was reduced by the mobile network operator from an average of 3.5% to 2.5%. The commercial banks, in an earlier written communication with MTN, were reported to have asked for a reversal to the old commission or they would block MTN airtime recharge services in all their channels.
All the commercial banks, except Zenith Bank which was connected directly to MTN, thereafter barred MTN from their banking channels, leaving many MTN subscribers stranded and frustrated as they were unable to recharge airtime through USSD and bank apps amid the Easter celebrations. To overcome the challenge, MTN is looking at alternative channels include payment solutions platforms such as Flutterwave, Jumia Pay, OPay, Kuda, Carbon and BillsnPay.MTN said its customers could recharge airtime by dialling *904# and *606#. Adding that “It will interest you to note that for the benefit of our customers who have been greatly inconvenienced by the service suspension, we now have alternative channels of accessing MTN services electronically.
The list and links to access the various alternative platforms are MTN On Demand is on *904# and also via https://mtnondemand.flutterwave.com; Barter By Flutterwave (app);Jumia Pay (app);Pay (app);MTN Xtratime airtime loans (*606#);Carbon (app);Kuda (app);BillsnPay (app and web);myMTN Web Momo agent *223#.The Apps can be downloaded from the Playstore and the Appstore.”
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
Egypt’s first female ship captain Marwa Elselehdar has reported that she is being blamed for ‘blocking the Suez Canal’. According to Ms. Marwa, online rumours were saying she was to blame. “I was shocked,” says Marwa. At the time of the Suez blockage, Ms Elselehdar was working as a first mate, in command of the Aida IV, hundreds of miles away in Alexandria.
captain Marwa Elselehdar
The vessel, owned by Egypt’s maritime safety authority, runs supply missions to a lighthouse in the Red Sea. It’s also used to train cadets from the Arab Academy for Science, Technology and Maritime Transport (AASTMT), a regional university run by the Arab League.
However, rumours about Marwa Elselehdar’s role on the Ever Given were largely spurred by screenshots of a fake news headline – supposedly published by Arab News – which said she was involved in the Suez incident. The doctored image appears to be from a genuine Arab News story, released on 22 March, which profiles Marwa’s success as Egypt’s first female ship captain. The picture has been shared dozens of times on Twitter and Facebook.
Several Twitter accounts under her name have also spread false claims that she was in involved with the Ever Given. Marwa Elselehdar, 29, said she has no idea who first spread the story or why they did it. “I felt that I might be targeted maybe because I’m a successful female in this field or because I’m Egyptian, but I’m not sure,” she said.
It’s not the first time she’s faced challenges in an industry historically dominated by men. At present, women only account for 2% of the world’s seafarers, according to the International Maritime Organisation. Marwa Elselehdar says she feels encouraged by some of the response she’s had to the false rumours adding that she’s always loved the sea, and was inspired to join the merchant navy after her brother enrolled at the AASTMT.
Though the academy only accepted men at the time, she applied anyway and was granted permission to join after a legal review by Egypt’s then-President Hosni Mubarak. During her studies, Ms Elselehdar says she faced sexism at every turn.
“Onboard, they were all older men with different mentalities, so it was difficult not to be able to find like-minded people to communicate with,” she says. “It was challenging to go through this alone and be able to overcome it without affecting my mental health.”
“People in our society still don’t accept the idea of girls working in the sea away from their families for a long time,” she adds. “But when you do what you love, it is not necessary for you to seek the approval of everyone.”
After graduating, Marwa rose to the rank of first mate, and captained the Aida IV when it became the first vessel to navigate the newly-expanded Suez Canal in 2015. At the time, she was the youngest and first female Egyptian captain to cross the waterway.
In 2017 she was also honoured by President Abdel Fattah El-Sisi during Egypt’s Women’s Day celebrations.
The stranded container ship is seen finally on the move and no longer blocking the canal
When rumours emerged about her role in the Suez blockage, she feared for the impact it would have on her work. “This fake article was in English so it spread in other countries,” says Ms Elselehdar. “I tried so hard to negate what was in the article because it was affecting my reputation and all the efforts I exerted to be where I am now.”
But she says she feels encouraged by some of the response.
“The comments on the article were very negative and harsh but there were so many other supportive comments from ordinary people and people I work with,” she says. “I decided to focus on all the support and love I’m getting, and my anger turned to gratefulness.”
“Also, it is worth mentioning that I became even more famous than before,” she adds.
Next month Marwa Elselehdar will be taking her final exam to attain a full rank of captain, and hopes she can continue to be a role model for women in the industry.
“My message to females who want to be in the maritime field is fight for what you love and not let any negativity to affect you,” says Marwa.
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
Private equity fund manager Apis Partners has sold all of the shares it indirectly held in South Africa’s Tutuka Holdings, a payments aggregator active in Africa. Its shares (62.6%) which it owned through its investment fund Apis Growth Fund II were sold for an undisclosed amount to SaltPay, a payment solutions provider focused on European SMEs.
Udayan Goyal, Partner and Co-Founder of Apis Partners
“We are delighted that SaltPay has identified Tutuka as an asset to its own business as it seeks to provide an end-to-end solution to its customers around the world. Adding this essential component to the SaltPay product offering will bring significant benefits to all of its stakeholders, ”commented Udayan Goyal, Partner and Co-Founder of Apis Partners.
Here Is What You Need To Know
Apis, which is withdrawing from Tutuka after 2 years of investment, claims to have contributed to the growth of this physical and virtual payment card issuing company, which operates in 33 emerging countries.
The fund manager says he has enabled Tutuka to develop its international presence and especially to strengthen its clientele.
It was in September 2019 that Apis Partners joined Tutuka’s funding round by buying back the shares of Paycorp.
The manager had thus offered himself a majority stake in the capital of this company which counts among its customers, the South African telecoms operator MTN.
At that time, Apis was motivated by the mobile ecosystem which, according to its estimates, should grow by more than 45% per year until 2021.
The company recently led a $110m round in South African digital bank TymeBank, alongside JG Summit, one of the largest and most diversified Filipino conglomerates.
A Look At What Apis Partners Does
The firm supports growth stage financial services and financial infrastructure businesses in Africa and Asia by providing them with growth equity capital. A majority of the firm’s portfolio companies are mainly fintech companies which are based in South Africa, Kenya, India, Malaysia, Singapore and other parts of Asia. In 2020, one of its portfolio companies, Kenya’s DPO Group, a leading, high-growth online commerce platform in Africa operating across 19 countries, was acquired by Network International, a leading enabler of digital commerce across the Middle East and Africa (MEA). The deal was a landmark for the African payments space.
“Apis focuses on driving financial services, with the help of innovation and technology, as a cornerstone of building better lives for people across the world. This was the key driver that pushed us to start Apis,” said Apis Partners founders Matteo Stefanel and Udayan Goyal.
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
Crypto and blockchain companies in South Africa are on the verge of receiving formal regulatory certainty from the country’s authorities. This follows the granting of South Africa’s first regulatory sandbox approval to the initiative by Mercury Foreign Exchange, VALR, and Ripple to test the regulatory treatment of their products— which include cross-border payments using the Ripple cryptocurrency, XRP .
“The Intergovernmental Fintech Working Group received a total of 52 applications during the application window for the Regulatory Sandbox which closed on 15 May 2020. The 52 applications received represented a broad range of financial services activities of which 34 were related to payments, 7 savings and deposits, 5 lending, 3 investments, and the remaining 3 identified as “other,” reads a statement from Intergovernmental Fintech Working Group (IFWG), an organisation that is made up of South Africa’s major financial regulators and government agencies.
Here Is What You Need To Know
The IFWG’s members include the National Treasury, the South African Reserve Bank, the South African Revenue Service, the National Credit Regulator, the Financial Sector Conduct Authority, the Financial Intelligence Centre, and the Competition Commission.
VALR is a cryptocurrency exchange focused on the South African market that offers rand trading platform for bitcoin, ether, and ripple, while Ripple is a blockchain-based payment protocol and digital asset (XRP) that is supported on cryptocurrency exchanges all over the world. VALR also has a partnership with Bittrex, which enables it to buy and sell over 50 different cryptocurrencies.
Luno and AltCoinTrader, VALR’s competitors in South Africa, also endorse the Ripple cryptocurrency.
Ripple has recently been sued by the US Securities and Exchange Commission for allegedly executing an unregistered securities offering when it launched the XRP digital asset.
What Is Regulatory Sandbox And Why Is It Important For Crypto Startups In South Africa?
The aim of South Africa’s IFWG’s regulatory sandbox, according to the group, is to provide a secure environment for testing approved products or services.
“Accepted participants test their product or service within parameters established by the IFWG and are expected to report on testing progress at regular intervals,” IFWG said.
The IFWG, on the other hand, claimed that joining the sandbox does not change a startup’s licencing status or imply explicit or implied acceptance of the product or service under consideration.
“It does, however, offer both the regulators and the innovators an opportunity to consider the regulatory fit of emerging innovation. At the conclusion of testing, the insights gained should provide clarity on how such innovation could be treated from a regulatory perspective in future, thereby promoting regulatory certainty,” it said.
Lessons gained from the test, according to the IFWG, will assist South African regulators in deciding whether and how policies and regulations can improve to encourage responsible innovation in the industry.
“In most cases testing is expected to last 6 months and the innovators have worked with the various regulators to determine appropriate testing parameters, consumer protection measures and continued compliance with all regulatory requirements during the testing period. Dates for the next intake’s application window will be communicated closer to the end of cohort,” the group said.
In simple terms, this is how a regulatory sandbox works. Image credits: LinkedIn
S/N
Innovator
Innovator’s core business
What is in the sandbox?
1
The People’s Fund
Crowd-investing platform that facilitates raising capital for Small and Medium-sized Enterprises (SMEs) with consumers willing to invest. The investments are used to fund SMEs’ purchase orders, products or assets.
The sandbox seeks to clarify the treatment and appropriate framework for the intermediation of crowd-investing platforms.
2
The Standard Bank of South Africa Limited
Standard Bank is a financial institution that offers banking and financial services to individuals, businesses, institutions and corporations in Africa and abroad.
The scope of testing is limited to the reporting of cross-border foreign exchange transactions submitted to the Financial Surveillance Department of the South African Bank utilising a blockchain platform, and verifying that the reporting is timely and in compliance with all relevant reporting rules, as prescribed in the Business and Technical Specifications. The reporting tested will happen in parallel to existing reporting process and clients would not be impacted.
3
Investec Bank Limited (Investec)
Investec provides Specialist Banking and Wealth and Investment services to individuals, businesses and intermediaries.
Investec is testing a safe custody service for crypto assets through its innovative Digital Asset Vault offering. This is a secure mechanism for Investec clients to store and transfer crypto assets, reducing reliance on cold storage i.e. complex hardware wallets and/or crypto asset exchanges. The objective of testing the Digital Asset Vault in the Sandbox is primarily to test Investec’s regulatory compliance, regulatory reporting processes, and related risk management frameworks in collaboration with the IFWG.
4
Xago Technologies (Xago)
Cross-border remittances
Testing the regulatory treatment of crypto assets (specifically Ripple (XRP)) in terms of the South African Exchange Control Regulations 1961, promulgated in terms of section 9 of the Currency and Exchanges Act, 1933 (Act No. 9 of 1933), used for effecting cross-border transactions between South Africa and the United Kingdom, and the United Kingdom and South Africa, subject to certain limits prescribed by the relevant authorities, and reporting on such transaction to the relevant authorities.
5
Mercury FX (Mercury)
International payments
Mercury is testing the regulatory treatment, and associated regulatory reporting implications and obligations, of crypto assets (specifically XRP) being used for effecting low-value cross-border remittances between South Africa and the United Kingdom and vice versa, subject to certain limits prescribed by the relevant authorities. Testing will in the main be done in terms of the South African Exchange Control Regulations 1961, promulgated in terms of section 9 of the Currency and Exchanges Act, 1933 (Act No. 9 of 1933).
6
Centbee
Innovating digital payments
Centbee is testing the regulatory treatment of crypto assets (specifically Bitcoin (BTC) and Bitcoin Satoshi Vision (BSV)) for low-value cross-border remittances between South Africa and Ghana and vice versa
A list of crypto projects granted approval for regulatory sandbox testing in South Africa
South Africa crypto approval sandbox South Africa crypto approval sandbox
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
Economic growth in Sub-Saharan Africa is estimated to have contracted by 2.0% in 2020, closer to the lower bound of the forecast in April 2020, and prospects for recovery are strengthening amid actions to contain new waves of the pandemic and speed up vaccine rollouts, according to the World Bank’s biannual economic analysis for the region.
The latest Africa’s Pulse, The Future of Work in Africa: Emerging Trends in Digital Technology Adoption, notes that a slower spread of the virus and lower COVID-19-related mortality, strong agricultural growth and a faster-than expected recovery in commodity prices has helped many African economies weather the economic storm induced by the COVID-19 pandemic. The report notes that economic recovery hinges on countries deepening reforms that create jobs, encourage investment, and enhance competitiveness. The resurgence of the pandemic in late 2020 and limited additional fiscal support will pose an uphill battle for policy makers as they continue to work toward stronger growth and improved livelihoods for their people.
Albert G. Zeufack, World Bank Chief Economist for Africa
“African countries have made tremendous investments over the last year to keep their economies afloat and protect the lives and livelihoods of their people,” said Albert G. Zeufack, World Bank Chief Economist for Africa. “Ambitious reforms that support job creation, strengthen equitable growth, protect the vulnerable and contribute to environmental sustainability will be key to bolstering those efforts going forward toward a stronger recovery across the African continent.”
Growth in the region is forecast to rise between 2.3 and 3.4% in 2021, depending on the policies adopted by countries and the international community. A second wave of COVID-19 infections is partly dragging down the 2021 growth projections, with daily infections about 40% higher than during the first wave. While some countries had a significant drop in COVID-19 infections due to containment measures adopted by the government, other countries are facing an upward trend in infections. Real GDP growth for 2022 is estimated at 3.1%. For most countries in the region, activity will remain well below the pre-COVID-19 projections at the end of 2021, increasing the risk of long-lasting damage from the pandemic on people’s living standards.
Sub-Saharan Africa’s recovery is expected to vary across countries. Non-resource-intensive countries, such as Côte d’Ivoire and Kenya, and mining-dependent economies, such as Botswana and Guinea, are expected to see robust growth in 2021, driven by a rebound in private consumption and investment as confidence strengthens and exports increase.
In the Eastern and Southern Africa subregion, the growth contraction for 2020 is estimated at -3.0%, mostly driven by South Africa and Angola, the subregion’s largest economies. Excluding Angola and South Africa, economic activity in the subregion is projected to expand by 2.6% in 2021, and 4.0% in 2022,
Growth in the Western and Central Africa subregion contracted by 1.1% in 2020, less than projected in October 2020 partly due to a less severe contraction in Nigeria, the subregion’s largest economy, in the second half of the year. Real gross domestic product in the Western and Central Africa subregion is projected to grow 2.1% in 2021 and 3.0% in 2022.
The Pulse also notes that African countries can speed up their recovery by ramping up their existing efforts to support the economy and people in the near term, especially women, youth and other vulnerable groups. Africa’s Pulse recommends those policies be complemented by reforms that fosters the country’s inclusive productivity growth and competitiveness. Reducing countries’ debt burdens will release resources for public investment, in areas such as education, health, and infrastructure. Investments in human capital will help lower the risk of long-lasting damage from the pandemic which may become apparent over the longer term, and can enhance competitiveness and productivity. The next twelve months will be a critical period for leveraging the African Continental Free Trade Area in order to deepen African countries’ integration into regional and global value chains. The report also notes that reforms that address digital infrastructure gaps and make the digital economy more inclusive–ensuring affordability but also building skills for all segments of society- are essential to improve connectivity, boost digital technology adoption, and generate more and better jobs for men and women.
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
