Africa's Ride-Hailing Drivers Protest Over Low Fares

August 12-16th, 2024

Ride-hailing drivers across Africa have taken to the streets to protest against the low fares imposed by platforms like Uber, Bolt, and other major service providers. These protests, which have gained significant momentum in several African cities, highlight the growing discontent among drivers over earnings that they deem insufficient to cover rising operational costs.

Drivers' Discontent: The Core Issues

The primary grievance among ride-hailing drivers is the low fares set by ride-hailing platforms, which they argue are unsustainable given the increasing cost of living and fuel prices. Drivers claim that these fares are eroding their profit margins, making it difficult for them to make a living.

• Fuel Costs: With global fuel prices on the rise, drivers are finding it increasingly difficult to manage their operational expenses.
• Platform Commissions: The commission rates charged by these platforms further reduce drivers' take-home earnings, exacerbating their financial struggles.

Ride-Hailing Platforms' Response

In response to the protests, some ride-hailing platforms have acknowledged the concerns raised by drivers and have indicated that they are exploring ways to address the issues. However, many drivers remain sceptical, citing previous instances where their demands were not adequately addressed.

The protests by Africa's ride-hailing drivers are a clear indication of the growing dissatisfaction with the current fare structures and working conditions. As the situation evolves, it remains to be seen how platforms will address these concerns and whether a sustainable solution can be reached that balances the needs of drivers, platforms, and customers alike.

read more here: Ride-Hailing Drivers Are Taking Matters Into Their Hands Fighting Unfair Fares

Africa’s B2B payment market is substantial, with an estimated value of approximately US$1.5 Tn. A recent report by fintech Duplo emphasizes the need for a concerted effort to overcome the challenges in cross-border B2B payments to unlock the full potential of African trade. Addressing these issues will be key to driving economic growth and fostering greater regional integration.

Key Industries Driving Extra- African B2B Trade

Manufacturing Industries: Manufactured goods ($19.9B) top the list of exports, challenging the perception of Africa as solely a raw material exporter.

Extractive Industries (mining, oil & gas): Fuel and mineral oils ($13.3B) and ores and metals ($4B) account for a significant portion of exports.

Agro-Allied Industries: Food products, valued at $2.1 billion, represent another significant category of exports.

Challenges in Cross-Border B2B Payments

• High Transaction Costs: One of the biggest hurdles is the high cost associated with cross-border payments, which often exceeds 10% of the transaction value.
• Administrative Burden: Complex and inconsistent regulations across different African countries pose significant challenges to seamless cross-border payments.
• Lack of financial infrastructure: A large portion of African businesses, especially SMEs, are underserved by traditional banking institutions, limiting their access to efficient cross-border payment solutions.
• Currency Volatility: Frequent fluctuations in currency values add another layer of complexity to cross-border trade.

Recommendations for Improvement

• Regulatory Harmonization: There is a need for African governments to harmonize regulations to facilitate smoother cross-border payments.
• Investment in Infrastructure: Investing in financial and technological infrastructure is crucial to support the growing demand for cross-border payment solutions.
• Collaboration between Stakeholders: Collaboration between governments, financial institutions, and fintech companies is essential to address the challenges in the cross-border payments space.

access the report here

Luno, a licensed financial services provider in South Africa and a major cryptocurrency investment app, is on high alert after a recent deepfake scam targeted one of its employees. The incident highlights the increasing threat of AI-powered impersonation fraud in the country, especially within the vibrant cryptocurrency sector. Luno is positioning itself at the forefront of the battle against such fraudulent activities.

The company recently avoided a major crisis when a staff member was targeted with a deepfake audio message on WhatsApp, which was claimed to be from a senior executive. The information was shared with WT. Although the realistic but mimicked voice and the instruction raised suspicion, the incident was ultimately flagged. This incident serves as a reminder of the sophistication of these types of attacks.

Deepfakes, highly convincing synthetic media generated by artificial intelligence, are becoming increasingly sophisticated. Criminals are exploiting them to defraud individuals and businesses, and the potential financial losses are staggering. In a recent case in Hong Kong, an?employee transferred USD 26 M?after being duped by deep fakes of colleagues over a video call, including the company’s chief financial officer.

Blockchain technology has been crucial in improving transparency in the crypto ecosystem. It also has the potential to help in the fight against deepfakes. Its decentralized nature and focus on security can be used to verify digital content. This capability has already been showcased with non-fungible tokens (NFTs), where the blockchain records the creator and owner, making it challenging to produce counterfeits.

get the full story here: SA’s Top Crypto Firm Is On High Alert After AI Deepfake Scam Targets Staff

Nigerian government officials have announced they froze millions of dollars in cryptocurrency allegedly donated to fund the recent nationwide protests against widespread hardship and poverty blamed on government policies and perceived financial excesses of the state.

According to the National Security Adviser, Nuhu Ribadu, a staggering US $50 M in cryptocurrency, of which US 38 M is contained in four cryptocurrency wallets, was blocked and channelled into the protests.

The focus on cryptocurrency, which was also?widely used for?donations during the EndSARS protests in 2020, is notable given recent conflicts. Nigeria has intensified its crackdown on cryptocurrency, including the arrest of two Binance executives and the blocking of access to major crypto exchanges earlier this year.

The government has praised the confiscation of cryptocurrency funds as a major achievement in its attempts to prevent protest financing. However, there are still doubts about the protests' overall impact. Despite the difficulties and violence, the demonstrations provided a strong platform for Nigerians to express their grievances and call for accountability from their leaders.

read the article here: Nigeria Claims To Block Millions In Crypto Donated For Recent Protests

Canal+ Expands African Media Presence with Acquisition of MC Vision

Canal+ has strengthened its media footprint in Africa by acquiring MC Vision, a prominent Mauritian pay TV provider.

MC Vision, co-founded by Canal+ and Currimjee Jeewanjee over two decades ago, is set to undergo a restructuring of its ownership. This acquisition is part of Canal+'s broader strategy to grow its influence in the African media market and expand its reach to more viewers across the continent.

Bloomberg reported that Canal+ would increase its ownership from 37% to 75%, pending regulatory approval, while Currimjee Jeewanjee will reduce its stake from 53% to 25% and divest its 10% holding.

MC Vision’s integration will enhance Canal+'s content offerings and distribution capabilities, positioning the company as a key player in the region's entertainment sector.

Mastercard Collaborates with Fintech Agency Scale

Mastercard has announced a partnership with African fintech agency Scale to expand non-banking digital payments across the continent. This collaboration is part of Mastercard's "Start Path" program, which focuses on scaling innovative payment solutions.

This support will include securing BIN sponsorships, developing sustainable unit economics, designing and launching card and payment programs, productization, evaluating program profitability models, and delivering exceptional customer experiences.

The initiative aims to improve financial inclusion and accelerate the adoption of digital financial services in Africa, where cash transactions remain prevalent.

The African Development Bank Group (ADB) has approved a US$10 M

to junior equity investment in the KawiSafi II Fund to support local businesses in creating and expanding climate projects that benefit vulnerable communities.

The Sustainable Energy Fund for Africa (SEFA), a catalytic financing facility managed by the Bank Group, will provide the financing. KawiSafi II is a US$200 M venture equity fund that aims to fill investment gaps in energy transition, productivity, mobility, and logistics in sub-Saharan Africa.

It also includes a US$10 M technical assistance facility to maximize climate impact and ensure better management of environmental, social, and governance risks.

KawiSafi II follows KawiSafi Fund I, a US$67 M off-grid energy fund established in 2016. Acumen Fund sponsored KawiSafi Fund I, which has invested in companies such as D.light, Bboxx, and BioLite, among others.

Rwanda now offers the most affordable broadband internet in the East African Community

According to a recent report by the British technology research firm, Cable, Rwanda now offers the most affordable broadband internet in the East African Community (EAC) bloc.

Data published by the company indicates that Rwandan residents are paying an average of US$43.22 per month for broadband internet this year, a decrease from US$60.96 last year. This represents a 29.1% year-on-year decline in prices.

The cost of broadband internet remains high in Burundi and the Democratic Republic of Congo (DRC), averaging US$304.57 and US$170.97, respectively. In Uganda, the average cost of broadband internet is US$52.59. In Somalia, the cost is slightly higher at US$54.58 Sudan continues to have the lowest monthly broadband internet rates globally, at US$2.40, despite the country's infrastructure limitations.

This shift in internet rates signifies a competitive environment where consumer prices are directly influenced by market forces and regional competition.

Here's what happened in the African VC scene

Tunisian Startup Wattnow Raises Funding from Lateral Frontiers VC

South African Startup Open Access Energy Secures USD 750 K

Nigerian Fintech Kredete Raises Funding From Launch Africa Venture

More funding news here: https://bit.ly/3HSInvG

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