Newsletter

BD Insider: Lagos to Cape Town

In this letter, we explore; Nigeria and South Africa clash on Bolt and Uber, Starlink set to launch in Ghana, Binance expands its services in Africa with mobile money.

In this letter, we explore:

Nigeria and South Africa clash on Bolt and Uber
Starlink set to launch in Ghana
Binance expands its services in Africa with mobile money

We also curated updates on startup funding in Africa, weekend reads, and several opportunities.

The big three!

Nigeria and South Africa clash on Bolt and Uber

Imagine being in Cape Town, South Africa, and ordering a fake ride to a specific location in Lagos, Nigeria, making the driver believe you’re somewhere around Lagos or vice versa. Well, that’s what happened yesterday in the online rivalry between Nigerians and South Africans. Bolt and Uber users in both countries made fake ride requests and mocked drivers who accepted the requests before cancelling the ride.

The trend started yesterday morning with South Africans ordering fake rides, and then Nigerians decided to follow suit. As expected, drivers on both platforms bear the brunt of these actions, wasting fuel and time trying to fulfil a fake order.

What caused this digital feud: This online battle can be traced back to the recent Miss South Africa pageant, where beauty model Chidimma Adetshina faced xenophobic attacks and was forced to withdraw from the competition due to disputes over her nationality.

Bolt has taken steps to address the issue by blocking accounts involved in fake ride requests and restricting intercountry ride requests.

As the situation evolves, riders and drivers hope this event prompts these platforms to review their policies on fraudulent bookings and cross-border ride requests.

Starlink set to launch in Ghana

Source: Telecom Review Africa

Three months after receiving approval from the National Communications Authority (NCA) for its broadband service, SpaceX's Starlink is set to officially launch operations in Ghana by the end of this month.

Previously, the sale of Starlink equipment was considered illegal, prompting the NCA to issue a warning to those involved last December. With the new licence, Starlink will operate under the name SpaceX Starlink GH LTD, providing high-speed internet services through its constellation of low-Earth orbit satellites.

Would Starlink’s presence change anything? The biggest hurdle to Starlink’s widespread adoption in Ghana would be its steep entry price. Equipment costs range from $600 to $2,500, with monthly fees between $120 and $500. In contrast, local competitors offer much lower prices: 10GB of data on MTN costs GHC 40 ($2) and on Telecel, GHC 50 ($3).

Context: Ghana would become the 12th African country where Starlink officially operates, following the likes of Kenya, Rwanda and Nigeria.

Binance expands its services in Africa with mobile money

Mobile money is gaining popularity in Africa, and Binance is taking advantage of this to expand its services on the continent. The cryptocurrency exchange platform has announced a new feature that will allow its users in Ghana, Tanzania, Uganda, and Zambia to trade crypto assets using mobile money.

This follows Binance’s earlier move in July, when it introduced the process of trading crypto using the currencies of Ghana, Uganda, Tanzania, and Zambia on its app and website.

The introduction of the One Click Buy and Sell feature will make cryptocurrency more accessible to unbanked and underbanked populations in these countries. By partnering with Transfi, a Web3 payment company, Binance users can now buy and sell crypto assets directly from mobile money accounts.

The platform has also implemented strict Know Your Customer (KYC) protocols and robust security measures to protect users' assets and data.

Context: Considering the widespread adoption of mobile money in these countries, Binance’s move is strategic. In Ghana, nearly 60% of people aged 15 and above have a mobile money account, while in Tanzania, almost 45% of the same demographic use mobile money. In Zambia, 56% of all retail payments were made via mobile money last year.

💰 State of Funding in Africa

Here’s a roundup of African startups that secured funding last week:

Nairobi-based HR and payroll platform Workpay has secured $5 million in Series A funding, with support from Visa. This round, led by Norrsken22, also includes contributions from Y Combinator, Saviu Ventures, Axian, Plug n Play, Verod-Kepple Africa Ventures, and Acadian Ventures.
Wattnnow, a Tunisian energy management startup, secured undisclosed funding from Lateral Frontiers VC.
Waza, a payment and liquidity platform for emerging market businesses, has secured $8 million in equity and debt funding. The funding includes a $3m seed equity round from Y Combinator, Byld Ventures, Norrsken Africa, Heirloom VC, Plug and Play Tech Center, Olive Tree Capital, and others. Additionally, a $5m debt funding was secured from Timon Capital.