Twitter and Lazerpay, Nigeria crypto startup does not exist anymore
Greetings!
In the past week, two significant events happened in the African tech space. Firstly, Twitter ceased to exist. Welcome to X.ai - the everything company.
Secondly, Lazerpay, a Nigerian crypto and web3 startup, announced its shutdown due to financial difficulties. The startup had been operating for a little over a year, providing financial solutions for the emerging crypto market in Nigeria.
These events highlight the critical issues that Africa faces in terms of the business environment, access to finance, and the emerging crypto and web3 markets. The Africa Tech Memo points out that the business environment in Africa is challenging, with regulatory hurdles, lack of infrastructure, and high costs of doing business. These factors make it difficult for startups to survive, especially those in emerging markets such as crypto and web3.
Furthermore, the shutdown of Lazerpay underscores the need for more financial inclusion and access to finance for African startups. Without access to finance, startups are unable to scale, and the crypto and web3 markets in Africa might not scale as envisaged.
To drive up financial and insurance inclusion in Africa, governments and financial institutions need to create an enabling environment for startups. This could include improving access to finance, simplifying regulations, and investing in infrastructure. By doing so, Africa could become a hub for emerging tech markets such as crypto and web3.
That’s the Briefing. - Samson
Quick Stats.
In 2021, the vast majority of remittances sent to Sub-Saharan Africa went to Nigeria, with a total value of 19.2 billion U.S. dollars. Ghana followed, with remittances amounting to roughly 4.5 billion U.S. dollars.
Tanzania’s diaspora remittances hit 2.6tri/-
Ambassador Mbarouk Nassor Mbarouk - Tanzania’s Deputy Minister for Foreign Affairs and East African Cooperation, said Tanzania diaspora’s remittances have increased to 2.6tri/-. The amount was remitted in the last calendar year. Meanwhile, the Tanzanians living abroad have injected a total of worth 4.4bn/- in the real estate sector and invested 2.5bn/- through the acquisition of shares from different companies.
“They have been contributing a lot by bringing foreign currency (remitters), expertise and technology that can promote the production of various products and services in the country,” the Minister says. Daily News
MTN Collaborates With Apple Music And Offers Nigerian Users 6 Months Free Trial
Telecommunication giant MTN has partnered with Apple Music to allow users in Nigeria access its services without having to worry about how to make payments with their naira cards.
In an official announcement, it was confirmed that MTN and Apple Music are offering Nigerian users a six-month trial period before they can easily make payment with airtime recharged to their phone numbers. This is an offer that would commence for all customers today, Friday, April 14, 2023. NotJustOk
IMF sounds alarm on declining aid, rising debt
The International Monetary Fund warned that a "big funding squeeze" was slowing growth in sub-Saharan Africa. It said debt relief was essential for low-income African countries. The warning comes as central bank chiefs and financial regulators descend on Washington this week for the International Monetary Fund-World Bank's Spring Meetings.
Kristalina Georgieva, the managing director of the IMF, earlier this month said the world economy was expected to grow less than 3% this year, calling it the "lowest medium-term growth forecast since 1990." DW
Startup Act will reduce ‘Yahoo Yahoo’ menace in Osun — Adeleke
Osun State Governor, Ademola Adeleke has disclosed that domesticating Startup Act in the state will reduce the incident of internet fraud, popularly called Yahoo Yahoo among the youth. Speaking at a sensitisation programme ahead of domesticating the act among tech business owners in the state of Osogbo, the Governor disclosed that his intention is to deploy the Act to maximize youth potential in the state. Vanguard
Is Francophone Africa taking the stage?
“Tech startups in the region were mostly surviving,” Moulaye Taboure, co-founder and chief executive of ANKA, an e-commerce company told Tomiwa, on the Next Wave show. “Because they could not count on going to France to get funding, they were focused on being profitable,” Taboure added.
Funding to French-speaking Africa has increased steadily since then, with corporate and regular VC investors paying more attention to these companies. As more companies have been funded, more have been born, putting more spotlight hours on French-speaking Africa. Tech Cabal
African climate startups set to gain ground as VC funding shifts their way
The continent’s climate tech startups secured over $860 million in equity funding, largely driven by clean energy technologies, representing 3.5x growth amid macroeconomic headwinds last year, data shows, making climate Africa’s most funded sector after fintech.
Pan-African venture firm Novastar was last week reported to be raising over $200 million for its third fund, Africa People + Planet Fund, which will invest in startups developing agriculture and climate solutions on the continent. Around the same time, climate tech venture capital firm Equator announced the initial close of its fund to back seed and Series A startups in the energy, agriculture and mobility sectors. Catalyst Fund’s new climate-focused $30 million kitty has also hit the ground running and is now investing in its first cohort of startups. TechCrunch
Twitter Isn’t a Company Anymore
In a court filing on Tuesday, April 4, Twitter Inc. quietly revealed a major development: It no longer exists. In its most recent filing, the company provided notice that “Twitter, Inc. has been merged into X Corp. and no longer exists.” As the “successor in interest” to Twitter Inc.—that is, the survivor of the merger—X Corp. is now the defendant in Loomer’s suit. Its parent corporation is identified as X Holdings Corp.
In April 2022, Musk registered X Holdings I, II, and III in Delaware, three separate companies designed to facilitate his purchase of Twitter. According to that deal, Twitter would merge with X Holdings II, but keep its name and general corporate structure while continuing to operate under Delaware law. X Holdings I, controlled by Musk, would then serve as the merged entity’s parent company, while X Holdings III would take on the $13 billion loan that a group of big banks provided Musk to help cover the $44 billion purchase. (According to Twitter’s demands in its litigation against Musk, X Holdings I would be intended “solely for the purpose of engaging in, and arranging financing for, the transactions.”). Slate
Visa Everywhere Initiative: Applications Open for Moroccan Fintech Startups
The competition aims to empower global fintech startups focused on fraud management, cybersecurity, and credit risk, among other areas. Rabat - Visa, a leading digital payments company, has announced opening applications for the 2023 Visa Everywhere Initiative (VEI), a competition open for startups from across the world to present their innovative solutions for future payment and commerce challenges.
VEI winners will receive monetary rewards and gain access to Visa's extensive network of partners in the banking, merchant, venture capital (VC), and government sectors, indicated Visa in a press release. Winners will also benefit from recognition from one of the “world's most trusted and valuable brands,” it added. Morocco World News
Understanding the Critical Issues of Healthcare, Financial Inclusion, and Insurance in Africa
Africa is a continent of incredible diversity and potential, but it also faces numerous challenges. Among the most pressing are inadequate healthcare, low levels of financial inclusion, and a lack of insurance coverage. These challenges have significant consequences for individuals, communities, and the continent, but there is also reason for hope. Africa Tech Memo
Nigerian crypto startup, Lazerpay shuts down
Lazerpay, a web3 and crypto payment company, is shutting down. The shutdown comes months after the startup’s founder, Njoku Emmanuel, shared that the company was having trouble raising money. According to a statement shared by the founder Njoku Emmanuel on Twitter, the company has been struggling to stay afloat after failing to secure funding, and although they tried to “keep the lights on for as long as they could, they’re now at a point where they need to shut down.” Tech Cabal
What we are reading
IMF discusses regulation of digital currencies
Google CEO Sundar Pichai Urges Society to Adapt to The Rapid Development of AI Technologies
SA’s Competition Commission greenlights Microsoft’s $69 billion acquisition of Activision
Adobe brings Firefly to its video tools
Man ends his life after an AI chatbot 'encouraged' him to sacrifice himself to stop climate change
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About The Briefing.
The Briefing is a quick bite briefing of African tech and business activities trending. The writers’ opinion on one huge trending topic that matters, followed by “In Other News” and “What We Are Reading”
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