Africa Law & Tech Review Vol. 18

Welcome to the Africa Law & Tech Review, a publication, by Lawyers Hub, that delves into the intersections of law, technology, business, digital rights, and features policy advancements across Africa and beyond. The Lawyers Hub is an organization based in Kenya working at the confluence of Law, Policy, and Technology. Learn more about who we are and what we do.

Lawyers Hub and Bloggers Association of Kenya Submit Recommendations on Finance Bill 2024

On May 30, 2024, the Lawyers Hub, jointly with the Bloggers Association of Kenya (BAKE) , presented their submissions to the Departmental Committee on Finance and National Planning regarding the Finance Bill, 2024 (National Assembly Bills No. 30 of 2024). Prior to the submissions, the Lawyers Hub hosted a tech and tax policy discussion that attracted over 210 participants and featured a range of experts who shared their views and proposals. Drawing from the insights and recommendations from this policy discussion, the Lawyers Hub submitted their enhanced recommendations for the Finance Bill. Read the submissions HERE.?

News

UNESCO Survey Reveals AI Usage in Judicial Work

A recent UNESCO Global Judges’ initiative survey on use of AI systems by judicial operators, conducted between September and December 2023, garnered 563 responses from judges, prosecutors, lawyers, civil servants, and researchers across 96 countries.

The findings reveal that 93% of respondents are familiar with AI, with 31% considering themselves experts or very familiar, 41% having moderate knowledge, 20% knowing slightly, and 7% knowing nothing about AI. Notably, 44% have used AI tools for work-related tasks, with 41% specifically using AI chatbots like ChatGPT.

The frequency of AI usage varied, with 20% using AI systems a few times, 13% weekly or monthly, and 11% daily. However, 53% of respondents reported not using AI tools at all or only for non-work-related activities. Similarly, 59% had not used AI chatbots for work.

Access to AI tools primarily came from free versions (71%), while 16% had organisational access, and 12% paid for subscriptions. Judicial operators mainly used AI chatbots for searching (43%), drafting documents (28%), and brainstorming (14%). Most (55%) reviewed and edited the chatbot's output before use, while only 6% used it directly without verification.

Risks and Concerns Highlighted in Judicial AI Use

The UNESCO survey also highlighted significant risks associated with using AI chatbots in judicial contexts. A substantial 69% of respondents acknowledged potential risks, including concerns about the quality and reliability of AI output (27%), privacy and data security issues (18%), and copyright infringements (17%). Additionally, 14% raised issues about the lack of transparency in AI systems.?

Other concerns included labour-related issues, bias reinforcement, and environmental impacts. Notably, only 9% of respondents stated their organisations had issued guidelines or provided training on AI usage, underscoring the need for clear principles and rules to ensure responsible AI deployment in the judicial sector.

Nigeria's FCCPC Approves 18 New Loan Companies, Expands Consumer Credit Access

Nigeria’s Federal Competition and Consumer Protection Commission approved 18 new loan companies, bringing the total number of approved loan companies in the country to 284. Of these, 232 have received full FCCPC approval, 41 have conditional approval, and 11 are licensed by the Central Bank of Nigeria. This expansion aims to reduce Nigerians’ reliance on unregistered loan apps, which are notorious for unfair practices that can harm borrowers' reputations.

Despite the benefits, few have raised concerns about the FCCPC approving too many digital lenders, fearing that the commission might struggle to monitor all these lenders and ensure compliance with regulations. However, the FCCPC’s move is seen as a crucial step toward providing more regulated lending options, thereby protecting consumers from the risks associated with unregistered and unscrupulous loan companies.

To further support regulated lending, the Nigerian government has allocated ?100 billion ($71 million) in the 2024 budget for the Nigerian Consumer Credit Corporation (CREDICORP) scheme. This initiative aims to offer Nigerians access to collateral-free soft loans, with the initial phase launched in April 2024 targeting civil servants. This significant financial backing demonstrates the government’s commitment to enhancing consumer credit access and ensuring financial inclusion for more Nigerians.

The FCCPC has also been proactive in addressing unhealthy lending practices. Last August, it delisted 18 digital loan banks for violations of the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022. The commission also requested Google to remove these lenders from the Playstore, emphasising the importance of proper licensing and adherence to guidelines. These efforts highlight the FCCPC’s dedication to maintaining a fair and transparent lending environment in Nigeria.

Thales to Upgrade Mauritius' National ID System

A consortium led by Thales, a French IT company, has secured a 10-year deal to upgrade Mauritius' national ID system with advanced digital identity technology. Thales will implement a modular identity management system featuring digital ID cards with high-resolution photos, barcodes, electronic chips, and a digital ID wallet for secure document storage and sharing. This digital ID wallet, a first in Africa, will be interoperable based on ISO standards and initially store digital versions of ID cards, with plans to add marriage and birth certificates.

The new ID system aims to simplify interactions with public entities and service providers, such as banks and retailers, making identity verification easier and supporting digital signatures. Thales assures that strong data privacy and consent mechanisms are in place, giving individuals control over their information. Additionally, self-service kiosks will be set up for users to update their digital ID information and manage PIN codes.

Mauritius' Prime Minister, Pravind Jugnauth, announced that the country is committed to independent security audits to meet Data Protection Act standards. This project, in partnership with local IT firm Harel Mallac Technologies, positions Mauritius as a leader in advanced identity solutions, blending traditional ID cards with digital identity to enhance security and convenience for its citizens.

Kenya to Regulate Big Tech with Stricter Competition Laws

The Competition Authority of Kenya (CAK) is proposing changes to the Competition Act to target anti-competitive practices by large tech companies. The proposed amendment to the Competition Act includes a new definition of “digital activities.” According to the amendment, “digital activities” refers to providing services or digital content over the internet for the benefit of both business and individual consumers, regardless of whether these services or content are paid for or free, and whether they involve multiple parties or not. This aims to safeguard Kenyan businesses from unfair tactics including mergers and acquisitions aimed at eliminating competition, restricting access to other companies’ services on their platforms, and forcing you to buy a specific product if you want to use another product they offer.

These proposed amendments will protect consumers’ rights in the digital and tech space. Similar to regulations in the US and Europe, it will empower CAK to police, investigate, and initiate antitrust probes against potential anti-competitive behaviour by tech giants like Google, Amazon, and Apple. The proposed law targets eight sectors: online intermediation services, online marketplaces and app stores, online search engines, online social networking services, video-sharing platforms, independent interpersonal communication services, operating systems, cloud computing services, and online advertising services.

To enforce the amendment, the CAK will carry out compliance checks on foreign tech firms to determine if their activities have resulted in unfair competition for rivals. The amendment will also allow the agency to take into account problems and concerns that have been identified in other countries or markets when making its own regulatory decisions. The agency has set a deadline of June 11, 2024, for stakeholders to submit their feedback on the draft legislation.

Zambia Finalizes AI Strategy?

The Zambian government has completed drafting its Artificial Intelligence strategy, aimed at leveraging AI for economic growth. Set to launch within the next two months, the policy focuses on utilising AI to enhance the country's copper production, a vital sector contributing to Zambia's economy. With Zambia ranking as the world’s eighth-largest producer of copper in 2022, the adoption of AI in mining exploration methods is expected to streamline operations and identify lucrative mining areas efficiently, aligning with the country's goal of achieving 3 million tonnes of copper production annually.

In preparation for AI integration, Zambia plans to host an AI conference to facilitate discussions on the potential economic benefits and job creation opportunities. Felix Mutati, Zambia’s Science and Technology Minister, emphasised the importance of AI in diversifying the economy and expressed confidence that AI adoption would not lead to job losses but rather create alternative employment opportunities. Meanwhile, the government is actively investing in AI training programs for its workforce and seeks collaboration with industry stakeholders to effectively implement the AI strategy and maximise its benefits for Zambia's economy.

Flutterwave Expands in Southern Africa with New Licences

Flutterwave has secured an approval-in-principle for a payment aggregator licence from the Central Bank of Mozambique. This approval allows the company to begin preparations to expand its services in Mozambique, pending the fulfilment of specific conditions for full licensing. Flutterwave’s recent acquisition of a Money Transfer License in Malawi, a neighbouring country to Mozambique, strengthens its presence in the Southern African region. These moves align with Flutterwave’s expansion plans and allow the company to tap into Mozambique’s growing e-payment market, which is expected to grow at 15.28% annually and exceed $9 billion in transactions by 2028.

With Flutterwave already operating in Nigeria, Kenya, Uganda, South Africa, and seven other African countries, the company is well-positioned to take advantage of new opportunities in Mozambique. The company also recently obtained Money Transmission Licences in 13 US states, further broadening its reach. This expansion supports Flutterwave’s vision of using its infrastructure, diverse licences, and network of global partnerships to simplify cross-border business operations.

However, Flutterwave’s growth comes amidst recent security challenges. In April 2024, the company suffered a security breach that allowed unauthorised actors to divert billions of naira to several bank accounts. Estimates of the stolen amount range from ?11 billion ($7 million) to ?20 billion ($13.5 million), though the exact figure remains under investigation. In October 2023, about ?19 billion ($24 million) was illegally transferred through unauthorised transactions by POS merchants, affecting over 6,000 accounts. These incidents raise concerns about Flutterwave’s internal security protocols as it scales its operations across Africa.

Despite these challenges, Flutterwave maintains that “no customer funds were lost or compromised.” The company leveraged a court order in February to recover funds associated with a previous breach using KYC details provided by financial institutions. The implementation of BVN could identify future perpetrators swiftly. Flutterwave’s resilience and innovation were recognized when it was named “Fintech of the Year” at the African Banker Awards, marking its third international award this year. CNBC and Fast Company also recognized the company for its innovative contributions to the financial technology sector in Africa.

Lagos State Developing Lagos Innovation Bill for Tech Startups

Lagos State in Nigeria is drafting its version of the Nigeria Startup Act, titled the Lagos Innovation Bill, to tailor the Act's provisions to the realities of building tech startups in the southwestern state. The bill signifies the state government's ambition to expand its digital economy beyond startups.?

The bill's framework includes the registration of research and innovation institutions, establishment of a research and innovation fund, tax and fiscal incentives, support for accelerators and incubators, capacity building, and talent development. Once enacted into law, Lagos aims to use the bill to establish a comprehensive pipeline involving all innovation stakeholders.

“The Bill won’t only develop startups but also encourage large companies to drive innovation,” said Tubosun Alake, the state’s commissioner for science, innovation and technology at a stakeholders’ engagement.?

Africa Faces Growing Threat of Disinformation, Report Finds

A recent report by the Africa Center for Strategic Studies, titled "Mapping a Surge of Disinformation in Africa," highlights the increasing challenge of disinformation campaigns across the continent. The analysis reveals that nearly 60% of these campaigns are foreign state-sponsored, indicating a concerted effort to influence narratives and destabilise African countries. This trend underscores the need for African governments and stakeholders to address the spread of misinformation, which can have detrimental effects on democracy, security, and social cohesion.

The report emphasises the vulnerability of Africa's online population, which exceeds 600 million, to misinformation. Countries with high social media usage, such as Nigeria and Kenya, are particularly at risk. In Nigeria, for example, disinformation campaigns have been used to manipulate public opinion and sow division, particularly during election periods. Similarly, Kenya has experienced challenges with misinformation, impacting its democratic processes. The report warns that without effective measures to combat disinformation, the rights and freedoms of African citizens are at risk.

West Africa emerges as a hotspot for disinformation, with countries like Mali, Burkina Faso, and Niger being major targets. In these countries, disinformation campaigns have been linked to political instability and conflict. In East Africa, Sudan and Kenya face significant challenges, with disinformation exacerbating existing conflicts and undermining trust in institutions. The report calls for collaborative efforts among governments, civil society, and tech companies to address this growing threat and safeguard the integrity of information online.

Oracle to Establish Two Cloud Regions in Morocco

Oracle has announced plans to establish two Oracle Cloud Regions in Morocco to provide enterprise cloud services to local and regional organisations throughout Africa. This move allows Oracle customers and partners to migrate critical workloads from their data centres to Oracle Cloud Infrastructure (OCI), facilitating compliance with local regulations. Moreover, the initiative will provide customers and partners access to a wide array of cloud services for application modernization and innovation in AI, data, and analytics.

Botswana Grants Operating License to SpaceX's Starlink

Botswana has awarded an operating licence to Starlink, the satellite internet service owned by SpaceX, following a government delegation's meeting with the SpaceX team in the US. This licensing comes three months after the Botswana Communications and Regulatory Authority (BOCRA) initially rejected Starlink’s application, citing missing information. Subsequently, the importation, sale, and use of Starlink were banned. With this move, Botswana aims to bridge the connectivity gap in its 2.6 million population. Despite an internet penetration rate of 87%, the country currently faces some of the highest data prices in Africa.?

Senegal Launches Online Platform for Judicial Reforms

Senegal has launched a new online platform, Jubbanti, as part of its national dialogue on judicial reforms. The platform, unveiled on Thursday, May 23, 2024, allows citizens to share their views on the country's justice system. The initiative aligns with Senegal's broader efforts to reform its justice "tribunal," with a meeting scheduled from May 28 to June 4. This national dialogue process will involve jurists, university teachers, and other citizens. Senegal's President, Bassirou Diomaye Faye, has emphasised that the digital platform, available in both French and Wolof, reflects his commitment to establishing a transparent and efficient justice system.?

Safaricom Ethiopia Receives Locally Manufactured Telecom Towers

Safaricom Ethiopia has received the first batch of 13 locally manufactured telecom towers from Woda plc. This marks a significant milestone as Woda becomes the first local company to manufacture network towers in the country, aiming to enhance and expand Safaricom's network infrastructure. Safaricom Ethiopia has announced that Woda will supply a total of 68 high-quality towers for 50 million birr (approximately $870,000). The goal is to expand network infrastructure and deliver high-quality, reliable telecommunication services across Ethiopia

Kenya’s Last Mile Connectivity Project.

The Kenyan President presided over the contract signing ceremony for Phase IV of the Last Mile Connectivity Project. This phase secures €180 million (KSh. 27 billion) to connect 280,000 households in 32 counties. The President highlighted that the government's efforts have increased national electricity access from 27% in 2013 to over 75% today, connecting 9.6 million Kenyan households to reliable and affordable power. Additionally, the government has committed KSh. 2.5 billion to this phase of the project. The President emphasised that the country is on course to achieve 100% connectivity by 2030. Read the President’s Speech HERE

Ethiopia launches Crime Recommendation Mobile Application.?

The Ethiopian Artificial Intelligence Institute launched the Ethiopian Federal Police App (EFPA) to allow citizens easily report crimes they witness by using their smartphone. It also provides users with valuable information related to traffic conditions and other public safety concerns

Huawei Cloud launched in Egypt.

Huawei launched a Cloud Region in Egypt, making it the first company to establish a public Cloud in the region. The Cairo Region will deliver Huawei Cloud's intelligent and innovative capabilities and serve as a Hub for countries in Northern Africa.The announcement, made at the Huawei Cloud Summit 2024 in Cairo on Tuesday, adds to Huawei Cloud's global presence of 93 availability zones in 33 regions.

Huawei Cloud also announced its new Arabic Large Language Model (LLM), an important step in supporting companies in the region with the digital transformation of vertical industries. The automatic speech recognition (ASR) service supports functions covering over 20 Arabic-speaking countries, with an accuracy rate reaching 96%.

Dr. Amr Talaat, Egypt's Minister of Communications and Information Technology, said:?

"Cloud computing technologies have become a key pillar of the digital infrastructure in all developed countries, given the increasing importance of data and its steady expansion. Egypt first launched a cloud computing policy through the Supreme Council of Digital Society, acknowledging the importance of cloud computing technology and its economic and technological advantages. This enables government entities to avoid wasting computing resources and allows their computing products flexibility in using more resources without long-term planning."

Microsoft Invests in South Africa for AI Advancement.?

Microsoft South Africa has entered into a $70.5 million artificial intelligence investment agreement with the country's Department of Trade, Industry, and Competition. The investment aims to support the development of black-owned small, micro, and medium enterprises (SMMEs) in both tech and non-tech sectors over the next decade. This initiative will digitally transform up to 42 SMMEs and startups, provide advanced AI and other capabilities to 200 SMMEs and over 2000 individuals, and support 20 advanced research and development projects in cybersecurity and AI. The company will invest over R1.3 billion to foster inclusive growth, entrepreneurship, and innovation, positioning SMMEs as engines of economic growth and local industry expansion.

This strategic partnership aligns with 18 Technical and Vocational Education and Training colleges to create better learning experiences, prepare students with future-ready skills, and enhance employability. According to Mr. Ebrahim Patel, Minister of Trade, Industry, and Competition, the fund will help black South Africans in non-tech sectors leverage technology to improve competitiveness and expand operations. Additionally, it will bridge the gap for young people to access training, certification, and job placement opportunities, crucial in an increasingly digitised world.

Microsoft's investment is designed to address South Africa's most pressing challenges, including youth unemployment, inequality, and sustainability. Lillian Barnard, President for Microsoft Africa, emphasised the company's commitment to empowering individuals and small businesses to be part of Africa's digital economy. Kalane Rampai, Managing Director at Microsoft South Africa, highlighted the importance of creating opportunities for SMMEs to grow and thrive, leveraging the innovative spirit of South Africans. The Public Sector Workplace Placement program will further enhance digital skills, enabling rapid prototyping and automation capabilities within key government departments, fostering a digitally inclusive and technologically proficient South Africa.

Meta Appoints All-Male Advisory Group for AI Strategy, Draws Criticism

Meta appointed a four-person advisory group composed entirely of White men to provide guidance on its artificial intelligence strategy. The tech giant stated that the group, consisting of tech entrepreneurs and investors, will offer periodic consultation on strategic opportunities related to Meta's technology and product roadmap. This move aligns with Meta's plans to invest tens of billions of dollars this year in AI infrastructure, research, and product development.

Despite the group's extensive combined experience, Meta is facing criticism for its lack of diversity, as the advisory group does not include women, people of colour, or individuals outside the wealthy, White, male, Silicon Valley stereotype. Additionally, all members of the group are in their 30s or 40s. This decision has sparked debate about the inclusivity and representation of diverse voices in guiding one of the world's most powerful tech companies in shaping revolutionary new technologies.

Hacker Group Claims Theft of 560 Million Ticketmaster Customer Details

A hacker group known as ShinyHunters has declared that they have successfully stolen personal information from 560 million Ticketmaster customers. The compromised data reportedly includes names, addresses, phone numbers, and partial credit card details of Ticketmaster users globally. The group is demanding a ransom payment of $500,000 to prevent the data from being sold to other parties. The Australian government has stated its collaboration with Ticketmaster to resolve the issue.

The Lawyers Hub is an organization based in Kenya working at the confluence of Law, Policy, and Technology. We run capacity-building initiatives on data protection, AI policy and regulation, justice innovation, and the impacts of tech regulation on the African continent, all under the Africa Digital Policy Institute umbrella. We also offer technical legal support to innovators and startups through the Africa Startup Law Accelerator. Additionally, we convene weekly policy discussions and bring together digital policy and technology actors annually at the Africa Law Tech Festival in July. Every December we convene judicial actors during the Africa Legal Innovation Week. The Lawyers Hub is also the publisher of the Africa Journal on Law & Tech. Our thematic focus areas include AI and Data Governance, Digital Platforms and Infrastructure Regulation, Intellectual Property, Internet Governance, Justice-Tech, and Digital Democracy.Learn more about who we are and what we do.

www.lawyershub.org

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