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We’re still reeling from Big Cabal Media’s 10th anniversary.
Over the past decade, the parent company of TechCabal and Zikoko has been a pioneer in African media, producing content that has informed, entertained, and empowered millions.
You can also celebrate with us by reading the rest of CEO Tomiwa Aladekomo’s letter and watching the stories behind our success here.
Kenyan lawmakers want to tighten oversight of outsourcing firms
Nigerian banks raise $1 billion from the capital market
StartupFuel wants to help VCs fight AI misinformation
Nigeria raises interest rate to 27.5%
World Wide Web 3
Opportunities
Regulation
Kenyan lawmakers launch stringent oversight of outsourcing firms
Kenya’s parliament is considering a new Business Law (Amendment) Bill 2024 to address worker conditions in the growing business process outsourcing (BPO) and IT-enabled services (ITES) sector. This follows a September court ruling that allows BPO workers to sue companies locally, sparked by complaints from former Sama employees who said they were underpaid and overworked moderating harmful content for Meta.
Sama formerly provided content moderation services for social media platforms and AI companies. In a report by 60 Minutes, former Sama workers claimed they were paid just $2 an hour to moderate harmful content for Meta, a far cry from the $12.5/hour that OpenAI paid the company.
“If big tech companies are going to keep doing this business, they have to do it the right way. It’s not because you realise Kenya is a third-world country, so you say ‘this job I’d normally pay $30 in the US, but because it’s Kenya, I’ll pay $2,’” said one ex-worker in the video posted by 60 Minutes.
The revelation also highlights the realities in the job market for third-world countries where some foreign employers opt to find cheaper labour in Africa, usually to save overhead costs.
The disgruntled ex-workers have been arguing that Sama did not provide fair compensation, adequate support and protection for them, or protect them from viewing and moderating the depraved content that never made it to the internet.
The new bill seeks to force BPO and ITES employers to provide all necessary tools for their workers, ensuring that they can’t dodge responsibility by claiming they aren’t the direct beneficiaries of the services provided. It will improve working conditions and align Kenya with global labour standards.
Yet, as Kenya’s outsourcing industry grows, the bill could also push big players like Sama, Majorel, and Telus—that employ thousands of Kenyans—away. Time will tell if it sees the light of day.
After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges.
Banking
Nigerian banks have raised $1 billion from the capital market
When the Central Bank of Nigeria (CBN) raised the capitalisation requirements for the country’s biggest banks in March 2024, it left them with few options: raise fresh capital, merge, or downgrade licences.
The apex bank directed banks with international operations to raise ₦500 billion ($295 million), national banks ₦200 billion ($118 million), and regional banks ₦50 billion ($30 million).
The banks instantly responded.
Fidelity Bank, a tier-2 bank, led the way with wild marketing campaigns. “Own a slice” became a call to action as much as it was a promise.
Soon, other banks followed.
Recently, tier-1 banks Access Bank, GT Bank, and Zenith Bank concluded their capital raises through public offers and rights issues. First Bank and United Bank of Africa, the remaining tier-1 banks, are in the market raising money.
As the FUGAZ banks—an acronym for the tier-1 Nigerian banks consisting of the first letters of all five banks—listed their offers on the Nigerian Exchange (NGX), sceptics, through X, ran polls to gauge the public’s interest in these offers.
The numbers say yes. So far, Nigerian banks have raised over ₦1.7 trillion ($1 billion) from the capital markets, according to the Director General of Nigeria’s Securities and Exchange Commission (SEC) Emomotimi Agama.
There is likely the investor instincts kicking in for many of these retail investors. It also shows that Nigerians will continue to invest in the capital market regardless of the historic scepticism and trust deficit.
Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts.
Get this valuable, free resource today!
Startups
StartupFuel wants to help VCs fight AI misinformation
It’s hard to imagine the world now without artificial intelligence. These days, it’s normal to read a news headline announcing the launch of yet another large language model (LLM) startup created to solve one problem or the other.
Throughout 2024, different articles on the internet tried to theorise how pioneer OpenAI is shipping features at breakneck speed. It was a decade of LLM development happening in months.
While these startups have been responsible for “democratising” access to artificial intelligence, it has also given way to misinformation.
Artificial intelligence (AI) models are trained on large datasets collected publicly from the internet, where inaccuracies and data biases are rampant. Since there is currently no way for these models to separate fact from fiction, or verify information in their training set, they end up repeating what they’ve learned.
AI misinformation is generally a problem in different industries. But for VCs, the impact is profound as it can alter funding decisions.
Let’s paint a scenario: a founder fundraising needs information about their market to show investors the size of the opportunity and trajectory of the industry. They turn to an AI chatbot. Due to its lack of objectivity, the chatbot could provide outdated information or misrepresent trends in the industry. The misinformation can contribute to a funding bias.
One startup, StartupFuel, founded by Ashley Martis in 2017, built DiligenceGPT to help VCs tackle this misinformation. It aggregates startups’ data and presents it to VCs like a “report card.” It shows the startups’ financials, business and revenue models, traction, competitors, market barriers, and traction attained. With the help of two of its acquisitions, Uncrowd.io and Startifi, StartupFuel has access to startups’ data.
It recently trademarked its product name. And while the startup doesn’t spill secrets about how it built DiligenceGPT, there are some pointers that it considers the technology proprietary after it filed for a patent.
The AI due diligence market is one of those industries that have been impacted by the introduction of new technologies, so it’s difficult to estimate its monetary value. But StartupFuel will count its success on the fame of the VCs and accelerators it calls clients. Two of them, Techstars and Village Capital, stand out.
Paystack merchants in Kenya can now send single and bulk transfers to any Kenyan bank or MPESA account (including customer wallets, Paybills, and Tills) Learn more →
Economy
Nigeria raises interest rate to 27.5%
Nigeria’s 3.46% economic growth in Q3 2024 surprised many, but the central bank’s decision to raise interest rates on Tuesday was widely anticipated.
Since the start of the year, the Cardoso-led CBN has maintained a hawkish stance to fight inflation. It is no surprise that the monetary policy committee raised interest rates to 27.5% on Thursday. The MPC has raised interest rates six consecutive times since January 2024.
While Cardoso’s goal is to rein in inflation and attract foreign investors, the results are yet to arrive in full. Nigeria’s inflation quickened to 33.8% in October, close to its highest level since 1996.
However, the CBN remains bullish on the fight against inflation and is optimistic about greater results in the first quarter of 2025.
The governor anticipates that the inflationary pressures arising from the recent fuel price hikes and naira devaluation will soon abate. If that goes as planned, analysts are hopeful of an end to the tightening cycle.
CRYPTO TRACKER
The World Wide Web3
Source:
Coin Name
Current Value
Day
Month
$92,586.41
– 1.82%
+ 36.89%
$3,398.73
+ 0.77%
+ 37.08%
$0.05118
+ 42.15%
+ 937.80%
$228.88
– 3.69%
+ 32.02%
* Data as of 06:15 AM WAT, November 27, 2024.
Opportunities
Applications are open for the 2025 Acumen West Africa Fellows Programme, a fully funded opportunity for emerging leaders in West Africa. This six-month hybrid program supports individuals who are committed to solving poverty through entrepreneurship in sectors like education, agriculture, energy, and healthcare. Participants remain in their jobs while engaging in virtual and in-person learning experiences designed to build their leadership skills. Apply by November 25.
Applications are open for the 2025 Google for Startups Growth Academy: AI for Cybersecurity, a three-month hybrid program for Seed to Series A startups using AI to tackle cybersecurity challenges. Selected startups will receive equity-free support, mentoring from Google experts, and tools to scale internationally. The program includes in-person kickoff and graduation sessions, along with continuous mentorship and technical consulting. Apply by December 3.
Applications are open for the CcHub-Mastercard Foundation Edtech Fellowship 2025 (Cohort III). This program offers African edtech startups $100,000 in equity-free funding, expert mentorship, and access to an investor network. Eligible startups must focus on education solutions in areas like K-12, tertiary education, or vocational training, with verifiable users. Female founders are encouraged to apply. Don’t miss this chance to scale your edtech solution and transform education in Africa. Apply by January 31, 2025.
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Written by: Kenn Abuya, Emmanuel Nwosu, and Faith Omoniyi
Edited by: Timi Odueso & Ganiu Oloruntade
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