Africa Law & Tech Review Vol. 23

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.

Africa Law Tech Festival 2024 Registration Now Open

Registration is now open for the highly anticipated Africa Law Tech Festival, scheduled to return this August with the theme 'Artificial Intelligence & the Year of Education.' Renowned for shaping alternative tech policy frameworks and fostering rapid tech solutions, this influential event will address pressing issues such as Artificial Intelligence, Digital Identity, Blockchain, CBDCs, and Digital Trade.

The Africa Law Tech Festival is the largest Law and Tech conference in Africa, convening over 2,000 delegates from more than 40 countries. This annual conference appeals to a diverse array of players in the legal and tech spaces through a multifaceted approach, bringing together like-minded individuals to lead idea-focused conversations and promote innovation around technology and the law. Since 2020, the festival has hosted relevant digital policy themes, reflecting the rapid growth of the tech policy landscape on the African continent.

The Africa Law Tech Festival 2024 will be held from August 26th to 27th, 2024 with options for both virtual and in-person attendance, though space is limited. Don’t miss out—secure your spot at this premier event today! Register HERE

Africa Law Tech Festival 2023 Set New Records

The Africa Law Tech Festival 2023 concluded with impressive numbers, marking a milestone for legal and tech collaboration on the continent. The event hosted 2,303 in-person delegates and engaged 891 virtual participants, representing 43 countries. With 87 speakers leading 37 sessions, 2023's festival surpassed expectations, solidifying its position as a premier platform for discussing cutting-edge developments at the intersection of law and technology in Africa.?

Nigeria Tightens Crypto Regulations with New Measures

Nigeria's Securities and Exchange Commission has introduced a series of stringent regulations aimed at controlling digital assets and ensuring investor protection. Under the new measures, all Virtual Asset Service Providers, including cryptocurrency companies, are required to establish offices in Nigeria as part of the eligibility requirements under the Accelerated Regulatory Incubation Programme (ARIP). This initiative is designed to accelerate the registration and onboarding process for VASPs in preparation for the new Digital Assets Rules , emphasising compliance and investor protection.

As part of the ARIP, the SEC has mandated that all potential and existing VASPs, including crypto brokers and dealers, must complete the application process via the SEC ePortal within 30 days of the issuance of the circular dated June 21, 2024. The programme also requires VASPs to have their Chief Executive Officer or managing partner residing in Nigeria and actively involved in the investments and securities business. VASPs must also submit weekly and monthly trading statistics and quarterly financial reports to ensure ongoing compliance.

The SEC's framework applies to all VASPs and token issuers conducting business in Nigeria or providing services to Nigerians. Companies must be incorporated in Nigeria and provide an affidavit confirming that neither the owner nor the firm has been convicted of fraud. A fixed processing fee of ?2 million is required, and non-compliance can result in significant fines. The first violation will incur a penalty of at least ?5 million, with an additional ?200,000 for each subsequent day of non-compliance. Unauthorised VASPs face fines of ?20 million and potential suspension from the capital market.

These measures are part of the SEC's broader efforts to enhance the monitoring of crypto companies and their users. The ARIP aims to fast-track the onboarding of entities seeking to be registered with the Commission, providing provisional approval until the new Digital Assets Rules become operational. The SEC's collaboration with VASPs is intended to ensure transparency and adherence to regulatory standards in Nigeria's burgeoning crypto market.

EAC Bloc Adopts Comprehensive Roadmap for Responsible AI Implementation

The Eastern Africa sub-regional forum on Artificial Intelligence concluded last week in Nairobi with the adoption of a comprehensive Roadmap for Responsible AI Implementation. The forum took place from June 23-25, 2024. It focused on strategies to bolster human and institutional capacities in AI across Eastern Africa. Leveraging diverse country experiences. This landmark event marks a significant step towards the responsible and effective deployment of AI technologies within the region.

The three-day event brought together ministers and key stakeholders from across the region to address the challenges and opportunities presented by AI technologies. A significant highlight was the launch of Kenya’s AI Readiness Assessment report , expected to serve as a blueprint for the country’s AI development and implementation strategies. Kenya was commended for being the first of 22 countries to accept the Readiness Assessment Report, setting a precedent for other nations in the region.

The forum concluded with the adoption of the Nairobi Statement on Artificial Intelligence in Eastern Africa. H.E. Mr. Peter K. Ngure, Ambassador Extraordinary and Plenipotentiary of Kenya to UNESCO, presented key recommendations from the statement, which include developing knowledge in line with African ethical values, facilitating policy dialogues to mitigate the digital divide, strengthening the capacity of government and civil society to understand and use AI technologies, and expanding investment towards infrastructure development to address cross-cutting issues for AI.

Participants expressed optimism about the future of AI in Eastern Africa. They noted that the event has laid a strong foundation for regional cooperation and set the stage for implementing concrete actions to realise the potential of AI in addressing developmental challenges across the region.

NITDA to Establish Emerging Technology Research Centres Across Nigeria

The National Information Technology Development Agency (NITDA) has unveiled plans to establish research centres for emerging technologies across Nigeria's six geopolitical zones. Announced at the IoT West Africa Conference and Exhibition in Lagos, this initiative aims to position Nigeria as a leader in AI and other advanced technologies within Africa.

NITDA's Director-General, Kashifu Inuwa , highlighted the agency's commitment to fostering a robust technology research ecosystem. The upcoming centres will focus on critical areas such as artificial intelligence, Internet of Things, blockchain, unmanned aerial vehicles, additive manufacturing, and robotics. These centres aim to drive innovation and support Nigerian startups in developing and launching new products through dedicated innovation sandboxes.

In addition to funding research and innovation, NITDA is contributing to talent development through the Nigerian government’s 3 Million Technical Talent (3MTT) program , which seeks to empower three million Nigerians with technical skills by 2027. This initiative aims to build a skilled workforce capable of driving technological advancements and contributing to Nigeria’s economic growth.

Nigeria's efforts to lead in AI development have been underscored by the launch of its first multilingual large language model, highlighting the country's dedication to advancing AI technology and establishing itself as a key player in the global tech landscape.

Internet Shutdown in Mauritania Amid Protests Over Election Results

Several areas in Mauritania, including the capital Nouakchott, experienced internet restrictions on Tuesday amidst protests contesting the outcome of the presidential elections. Mobile phone internet services were reportedly disrupted in various cities while landline services remained operational, according to eyewitness accounts.?

The Mauritanian authorities and telecommunications companies have yet to issue statements regarding the internet shutdown. The protests, led by supporters of candidate Biram Ould Dah Abeid, who came second in the elections, have denounced the results as an "electoral coup."

Tunisia Seeks Bids for 5G Mobile Network Deployment

The Ministry of Communication Technologies of Tunisia has announced a tender for the installation and operation of a 5G mobile network as part of its national digital transformation plan. This initiative aims to enhance high-speed internet access nationwide and expand broadband coverage.

Interested operators are invited to participate in this significant upgrade to Tunisia’s telecommunications infrastructure. The country currently hosts three major mobile network operators—Tunisia Telecom, Ooredoo Tunisia, and Orange Tunisia—along with two internet service providers: Global Net and Topnet. Tunisia boasts a mobile penetration rate of 136.5% and a mobile broadband penetration rate of 97.2%.

Operators wishing to bid must register by submitting a fee of 5000 Tunisian dinars (5000 DT) or 1500 Euros and a commitment guarantee to a specified account. The Tender Dossier will be available for collection starting July 3, 2024, at the Ministry of Communication Technologies in Tunisia. The submission deadline for bids is September 2, 2024, with a public bid opening session scheduled for the same day. This initiative marks an important step towards advancing Tunisia’s digital infrastructure and fostering technological innovation across the nation.

Ghana’s NHIS to Deploy AI for Improved Claims Audit

Ghana's National Health Insurance Scheme is set to implement an advanced AI system to enhance the audit of claims. This initiative aims to streamline the claims process, increase accuracy, and reduce fraudulent activities across its extensive network of healthcare providers. With support from 5,232 facilities and 4 million health service providers, the deployment of AI represents a significant advancement for the NHIS.

Nigerian Ministry of Petroleum Resources Integrates AI to Enhance Efficiency in Oil and Gas Sector

The Nigerian Ministry of Petroleum Resources has recently disclosed its adoption of artificial intelligence? in exploration and production operations aimed at bolstering efficiency and curbing costs within the nation's vital oil and gas industry. This strategic move follows a presidential directive earlier this year, emphasising the need to optimise the energy sector and natural resources to foster sustainable development.

African Tech Startup Funding Plummets by 56% in H1 2024

Investment in African tech startups has sharply declined in the first half of 2024, with just $530 million raised compared to $1.2 billion in the same period last year. This represents a significant 56% drop in funding, reflecting ongoing challenges in the global economic climate.

According to data from Africa: The Big Deal, the first half of 2024 saw a notable shift in funding composition, with two-thirds coming from equity and a third from debt financing. This marks a departure from the typical investment patterns seen since 2019, where debt financing averaged around 17% of total funding.

Kenya emerged as a key recipient, securing one-third of the total funding allocated to the Big Four countries. Despite the decline in overall funding, these figures highlight a growing reliance on debt financing within Africa's startup ecosystem amidst economic uncertainties.

Nigerian Financial Institutions Suffer ?17.6 Billion Loss to Fraud in 2023

Financial institutions in Nigeria lost $11.2 million to fraud in 2023, as revealed by the Nigeria Inter-Bank Settlement System's 2023 Annual Fraud Landscape report. The report highlights a consistent annual increase in fraud losses over the past five years, escalating from $1.8 million in 2019 to $9 million in 2022, marking a 496% increase by 2023. Further analysis showed that $52.6 million was lost in just six fraud cases.?

Deposit money banks accounted for 92% of the 95,620 reported cases, with the remaining 8% from other financial institutions. Only 37% of financial institutions complied with fraud incident reporting, violating the CBN circular on establishing industry fraud desks.

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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