Barely Two Years After Tussle With Facebook South African GovChat CEO, Chief Data Officer Resign

Eldrid Jordaan, the founder of GovChat, has resigned as CEO. Goitse Konopi, the organization’s chief data officer, has also quit.

The announcement comes just three months after the citizen engagement platform extended its contract with the Department of Cooperative Governance and Traditional Affairs for another five years (COGTA).

Jordaan said in a brief statement this morning that it has been an honour to serve his country through the “extremely challenging” COVID-19 pandemic.

Read also Innovative New Projects Join Climate Finance Accelerator South Africa

“I would like to thank our phenomenal partners, including the South African government, the United Nations, UNICEF, Absa, Telkom/BCX, MTN and AWS, for an incredible journey. This collaboration of public-private partnerships showed what is possible if we all steer in the same direction, as tens of millions of South African lives were impacted by GovChat.”

Jordaan briefly mentions that he will take some time off to reflect on the journey and evaluate his future contribution.

He also suggests that he will most likely begin writing his book, titled “GovChat vs Facebook: The David & Goliath Story.” “I’ll keep you updated,” he promises.

GovChat was founded in 2016 and launched in 2018 in collaboration with COGTA. It is accessible via WhatsApp, Facebook Messenger, SMS, and USSD channels.

The official government communications platform has not had an easy ride.

Read also Fresh Out Of Legal Tussles With Facebook, South Africa’s GovChat Now Has Over 8m Users

The start-up had been mired in a legal dispute with Facebook parent firm Meta for the previous two years, with the tech giant accusing it of violating its terms of service.

When Meta-owned WhatsApp attempted to remove GovChat and #LetsTalk, a technological start-up that connects government and citizens, from the WhatsApp Business application programming interface, there was a public outcry (API).

When the Competition Commission referred Meta Platforms (previously known as Facebook) and its subsidiaries, WhatsApp and Facebook South Africa (collectively referred to as Facebook), to the Competition Tribunal for prosecution for abuse of dominance, GovChat emerged victorious.

Read also How 3D Gamified Business Processes Will Change World

The commission claimed that Facebook imposed and/or selectively enforced exclusionary terms and conditions governing access to the WhatsApp Business API, primarily data use limits.

In response, Meta committed to protect its platforms against “abuse,” pointing out that WhatsApp’s behaviour to until has been perfectly compatible with the principles of the Competition Act, and it is merely attempting to apply its terms and conditions equally.

To add fuel to the flames, the non-profit Open Secrets published a report titled “Digital profiteers: Who Profits Next from Social Grants?” in November of last year. It lists GovChat as one of the private corporations that profit from the personal data gathered through their digital platforms developed in collaboration with governments.

Jordaan, on the other hand, categorically denied these claims, stating, “GovChat takes data privacy and security very, very seriously.”

“Yes, we are a for-profit company, but not once have we said we will profit out of personal data and information from citizens. The information management system that we provide to various government departments is anonymised, aggregated and stripped of raw information. Based on contractual agreements with government, GovChat cannot sell or transfer data to a third-party.”

The now-former CEO also stated that GovChat’s data collection and use complies with all laws, including the Personal Information Protection Act and the General Data Protection Regulation.

Despite its difficulties, GovChat has been praised for providing public services to more than 9.3 million active users.

Among other things, the platform allows users to submit municipal service complaints across the country to the proper municipality and allows communities to connect with and learn about their ward councillor and traditional authority.

Read also Kenya Tea Development Agency Brews Perfect Technology Mix

At the height of the COVID-19 pandemic, it enabled millions of South Africans to apply for social relief in distress (SRD) grants from the South African Social Security Agency (SASSA).

It also stepped in to help citizens divert their inquiries about SRD grants to popular instant messaging platforms, WhatsApp and Facebook Messenger, using its fully-automated chatbot.

SASSA saved R7.5 million as a result of the automated contact centre service, as previously revealed by GovChat.

GovChat has stated that the next phase will include citizens having access to more co-created features and the ability to access more government services digitally.

Charles Rapulu Udoh

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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh

Fresh Out Of Legal Tussles With Facebook, South Africa’s GovChat Now Has Over 8m Users

South African citizen engagement platform, GovChat, has emerged from its recent legal tussles with Facebook to acquire more than 8 million users. This is an increase of nearly three million users over the previous year, and comes nearly four years after the communications platform launched in 2017.

GovChat founder Eldrid Jordaan
GovChat founder Eldrid Jordaan

GovChat claims to have processed 500 million messages and 80 million PWA page views. Furthermore, 53 percent of females and 47 percent of males use the communication platform.

Read also:South African Airways Bounces Back, Announces First Take-Off Date, Tickets Soon On Sale

According to the service, 61 percent of its customers are between the ages of 18 and 34. Users aged 35 to 54 account for 28% of the population, while those aged 55 and beyond account for 11%.

Despite a few bumps in the road, GovChat is credited with enabling the South African Social Security Agency (SASSA) in allowing residents to apply for COVID-19 Social Relief Distress (SRD) funds.

Last year, GovChat announced that their automated contact center service, which manages commonly asked questions on social media concerning the COVID-19 SRD grant, saved SASSA R7.5 million.

Read also:Amethis Raises $101m To Invest In North African Businesses

SASSA adopted GovChat as one of the internet methods for beneficiaries to submit their applications for the resumed R350 social assistance payments earlier this month.

According to GovChat, 11 million SRD grant applications have been submitted thus far. The portal processed 5.4 million SRD grant applications last year.

It notes, “What has been interesting from a GovChat viewpoint is the number of people who applied for the SRD funds and utilize an iPhone.”

Read also:Africa’s Transporters Adopt Cellulant’s Technology in Bid to Digitize the Sector

GovChat was founded by Eldrid Jordaan in collaboration with the Department of Cooperative Governance and Traditional Affairs. It was launched as a progressive web app (PWA) to increase citizen involvement with local government.

GovChat users GovChat users

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

South Africa’s Competition Tribunal Orders Facebook To Allow GovChat On WhatsApp

An interim order was released by the South African Competition Tribunal on Friday that WhatsApp and Facebook may not delete GovChat from the WhatsApp site. The court also ordered that WhatsApp and Facebook should not do anything to disrupt the relationship between GovChat and its users, which would, in essence, delete GovChat from the WhatsApp platform.

GovChat CEO Eldrid Jordaan
GovChat CEO, Eldrid Jordaan

In a statement on Friday, the tribunal claimed that these orders were given to control the arrangements between GovChat, WhatsApp and Facebook from now until it issued its decision against the social media sites in GovChat’s interim relief application.

The tribunal imposed the order because, during this transitional period, the parties were unable to agree on agreements between themselves.

“Facebook wants to kick GovChat off WhatsApp to offer similar services to the government”

Trouble started when Facebook, which owns WhatsApp, blocked GovChat from accessing the WhatsApp platform over GovChat’s alleged violation of the contractual terms of use.

GovChat, a civic engagement platform, offers various government-sanctioned communications services, including information relating to COVID-19 and connecting with government representatives.

“As the official citizen engagement platform for the South African Government, GovChat acts as a centralised hub bringing all government and civic services together with cutting-edge conversational AI, intuitive design, and ease of access,” the GovChat website states.

GovChat said, to the competition tribunal, that Facebook was up to a game by blocking it. It accused the global giant of fronting Praekelt Consulting Services, which builds competing services to GovChat. It further said the plan was to off-board GovChat from the WhatsApp Business API so that Facebook, which owns WhatsApp, would deal directly with the government to the exclusion of GovChat.

However, while Facebook argued before the tribunal that the case pertains to its rights to enforce the contractual terms that govern the use of its paid business messaging platform, the WhatsApp business application programming interface, which connects third parties to the platform, GovChat argued that it had made numerous failed attempts to reach a commercial solution for all stakeholders, with Facebook, to prevent the termination of GovChat’s access to the WhatsApp platform,

Read also: Why More South African Startups Have Raised Funds This Year

Last year, GovChat, based in Pretoria, announced it had secured an investment facility from JSE-listed firm Capital Appreciation, which would allow the startup to tap up to R20-million in funding from the listed company. GovChat was founded in 2016 and launched in 2018 by CEO Eldrid Jordaan. As at 2019, the startup had at least 500,000 South Africans users of its platform

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

While Users Fight WhatsApp Over Its Privacy Policy, GovChat Is Fighting Facebook In South Africa

The case is already before the South African Competition Tribunal, and any time soon, the tribunal will have to pass its verdict: either GovChat, a citizen engagement platform used by the South African government, is permanently removed from WhatsApp which it runs on; or Facebook, the owner of WhatsApp, rescind its policy against the South African platform.  

Founder and CEO of GovChat Eldrid Jordaan
Founder and CEO of GovChat Eldrid Jordaan

“Founder and CEO of GovChat Eldrid Jordaan has asked the Tribunal to interdict and restrain Facebook from off-boarding them from the WhatsApp platform pending the outcome of a complaint which they submitted to the Competition Commission, relating to alleged prohibited practices by Facebook, or for a period of six months, whichever occurs first,” Tribunal spokesperson Gillian de Gouveia said. 

“Facebook wants to kick GovChat off WhatsApp to offer similar services to the government”

Trouble started when Facebook, which owns WhatsApp, blocked GovChat from accessing the WhatsApp platform over GovChat’s alleged violation of the contractual terms of use. 

GovChat, a civic engagement platform, offers various government-sanctioned communications services, including information relating to COVID-19 and connecting with government representatives.

“As the official citizen engagement platform for the South African Government, GovChat acts as a centralised hub bringing all government and civic services together with cutting-edge conversational AI, intuitive design, and ease of access,” the GovChat website states.

Now GovChat said, to the competition tribunal, that Facebook was up to a game by blocking it. It accused the global giant of fronting Praekelt Consulting Services, which builds competing services to GovChat. It further said the plan was to off-board GovChat from the WhatsApp Business API so that Facebook, which owns WhatsApp, would deal directly with the government to the exclusion of GovChat. 

However, while Facebook argued before the tribunal that the case pertains to its rights to enforce the contractual terms that govern the use of its paid business messaging platform, the WhatsApp business application programming interface, which connects third parties to the platform, GovChat argued that it had made numerous failed attempts to reach a commercial solution for all stakeholders, with Facebook, to prevent the termination of GovChat’s access to the WhatsApp platform,

Read also:How Technology is Recreating the Offline Retail Experience Online

GovChat then went ahead to maintain that Praekelt did what Facebook had accused it of doing and stated that Facebook did not appear to take issue with how Praekelt used the WhatsApp Business API.

GovChat therefore insisted that Facebook was engaged in discriminatory practices by looking to kick it off of Facebook, but allowing Praekelt to continue to operate along with Aviro Health, Internet Filing, and Telkom Pay.

“We do not believe there is a distinction to be made between the services offered by GovChat, Aviro Health, and Internet Filing,” GovChat noted.

“After the Covid-19 outbreak GovChat diverted to assisting the government with Covid-19 education and awareness, symptom tracking, the provision of test results and enabling citizens to apply for urgent social relief grants/distress grants,” it further added.

Read also: Why More South African Startups Have Raised Funds This Year

According to GovChat, it operates within WhatsApp’s terms of use, has never intentionally misrepresented its position nor acted in good faith at all times. 

Jordaan argued that Facebook’s removal of GovChat from WhatsApp’s API would: “End GovChat’s ability to render services to the government and citizens at the height of the second wave of the Covid-19 pandemic in South Africa and force the applicants out of business.”

Last year, GovChat, based in Pretoria, announced it had secured an investment facility from JSE-listed firm Capital Appreciation, which would allow the startup to tap up to R20-million in funding from the listed company. GovChat was founded in 2016 and launched in 2018 by CEO Eldrid Jordaan. As at 2019, the startup had at least 500,000 South Africans users of its platform.

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