Dozy Mmobuosi’s ‘Fictional Empire’ Faces A Costly Reckoning

Few stories have captured the attention of industry watchers as dramatically as the controversy around Nigerian businessman Dozy Mmobuosi over the past year. Once regarded, however self-promoted, as a savvy player in tech and finance, Mmobuosi’s claims of a booming business empire have come crashing down amid allegations of massive fraud, resulting in a U.S. federal court order to pay over USD 250 M in fines and a ban on serving as a director of any public company.

The Final Judgment

The U.S. District Court for the Southern District of New York, under Judge Jesse M. Furman, has issued a default judgment against Mmobuosi and his companies—Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings, reports the FT. The court’s ruling came after Mmobuosi failed to respond to a civil complaint filed by the U.S. Securities and Exchange Commission (SEC) in December 2023. The complaint accused him of orchestrating a wide-ranging fraud that inflated the financial performance of his companies, duping investors worldwide.

Judge Furman noted that Mmobuosi and his companies had “failed to answer, plead, or otherwise defend” themselves in the case. As a result, the court ordered Mmobuosi and his entities to pay fines exceeding USD 250 M, marking the end of what the SEC described as an “empire of fiction.”

The Unraveling of Tingo Group

Mmobuosi’s fall from grace began with the rise of Tingo Group, a fintech company that claimed to have over 9 million customers in Nigeria, most of whom were farmers. Tingo Group reported substantial revenues, with Tingo Mobile—a subsidiary—claiming to have USD 461.7 M in cash equivalents in Nigerian bank accounts for fiscal year 2022. However, the SEC’s investigation revealed that these claims were almost entirely fabricated, with Tingo Mobile’s actual balance being less than USD 50.00.

The SEC’s complaint painted a picture of deception stretching back to 2019. Mmobuosi allegedly used falsified financial records to depict Tingo Mobile as a thriving business. In reality, the company had no meaningful operations, a negligible customer base, and virtually no cash in its accounts.

The scale of the fraud was staggering. Mmobuosi reportedly sold Tingo Mobile to two public companies at inflated prices, using fabricated financial statements to justify valuations exceeding USD 1 bB each time. These mergers, conducted entirely through stock, allowed Mmobuosi to secure substantial shares in the newly formed entities, which were then listed on U.S. capital markets.

The Hindenburg Report and Its Aftermath

The beginning of the end for Mmobuosi’s empire came in mid-2023 when U.S.-based short-seller Hindenburg Research released a damning report labelling Tingo Group an “obvious scam,” following an earlier May 2022 article by WT that revealed questionable details at the heart of Tingo. The report highlighted the fraudulent nature of the company’s financials, triggering an immediate collapse in the stock prices of Tingo Group and Agri-Fintech Holdings.

Despite the mounting evidence against him, Mmobuosi doubled down, continuing to deny the allegations and even appointing himself as co-CEO of Tingo Group in September 2023. Public filings from Tingo Group and Agri-Fintech Holdings continued to present fake operations as real, issuing false financial statements and withholding or providing deceptive information to the SEC.

But the SEC investigations alleged that Mmobuosi and his companies had forged bank statements, altered documents, and even bought domain names to impersonate fake suppliers and customers. These tactics were designed to deceive auditors and create the illusion of a thriving business, when in fact, the entire operation was a house of cards, the investigators emphasised.

The Sheffield United Debacle

Adding to the intrigue of Mmobuosi’s rise and fall was his audacious attempt to purchase Sheffield United, an English football club then competing in the Premier League. The bid, which ultimately failed, was funded through the same fraudulent means that characterised his business dealings. The SEC’s complaint noted that Mmobuosi had misused Tingo Group’s assets for personal expenses, including the failed acquisition of Sheffield United.

The SEC’s findings revealed a fraud that was not sophisticated or complex, but rather a brazen facade built on forged documents and hollow claims. The case also underscores the importance of regulatory oversight in protecting investors from such schemes.

AfricArena Nairobi Summit 2024 Gears Up to Drive Kenya’s Climate Tech Innovation

Kenya is gearing up to host a major event that could redefine Africa’s climate tech landscape—the AfricArena Nairobi Summit 2024.

Scheduled to take place from 3-4 September, just before the bi-annual Africa Fintech Summit, this summit is expected to spotlight emerging leaders in sustainable solutions, turbocharging Kenya’s startup ecosystem, particularly in the areas of capital raising and innovation.

The AfricArena Nairobi Summit is expected to tackle a diverse array of crucial topics, from sustainable agriculture and climate-resilient crops to carbon credits and renewable energy.

Nairobi, often celebrated as Africa’s Silicon Savannah, is expected to serve as the ideal backdrop for over 20 of the continent’s leading climate tech and green economy startups.

These startups will pitch their groundbreaking ventures to a room full of investors, aiming to supercharge their capital-raising efforts.

“We are thrilled to bring the AfricArena Summit back to Nairobi with the support of our partners. We firmly believe in the power of collaboration to ensure success in building and strengthening Africa’s tech, innovation, and investment ecosystem,” said Christophe Viarnaud, AfricArena CEO and founder.

Kenya has been strategically chosen as the focus of the summit, given its status as one of Africa’s “big four” tech hubs. The nation has been instrumental in fueling East Africa’s remarkable growth. In 2023, Kenya pulled in nearly $800 million in funding, capturing an impressive 94% of all startup capital in the East Africa region. This solidified Kenya’s reputation as Africa’s top destination for startup investment.

A lineup of startups like Aquarech, Gene Plus Global, RHEA Soil Health, and other promising names are expected to showcase their innovative solutions in climate tech, renewable energy, and the green economy. 

Even international participants, including six Korean startups scaling into Africa, will join the pitch, thanks to a partnership with the Korea-Africa Foundation.

Driving the narrative of the capital-raising success will be Tonee Ndungu, the visionary CEO of Kytabu, who will serve as the Master of Ceremonies. He’ll guide the audience through the stories, insights, and strategies that have positioned Kenya as a continental leader in tech investment.

The event is expected to feature over 30 of Africa’s most brilliant minds, sharing their expertise and observations. Keynote speakers include Joshua Romisher, CEO and Head of Portfolio at Holocene, and Joshua Murima, Head of Engagement and Investor Relations at Briter Bridges. 

The lineup of moderators and panellists will further enrich the discussion, offering invaluable takeaways for the tech, innovation, and investment ecosystems in Africa.

The summit is a highlight of Africa Climate Tech Week, which is supported by AWS Startup, Silicon Overdrive, and GIZ SAIS. The weeklong event runs from 1-4 September, with the AfricArena Nairobi Summit taking place at Shamba Events in the heart of Nairobi.

MarketForce Fell Short—Now Its Founders Are Chasing A New ‘Chpter’

itel Expands Into Nigeria’s Energy Market with Affordable Solar Solutions

itel has officially stepped into the Nigerian renewable energy market with the launch of its solar energy solutions in Lagos, Nigeria.

Itel, a subsidiary of Transsion Holdings—alongside Tecno, Infinix, is known majorly for its affordable mobile technology, and is now expanding into the energy sector.

With its range of products, including inverters and batteries, itel is expected to address the pressing energy challenges faced by many Nigerian households.

This move could mark a significant step in the company’s evolution, offering Nigerians cutting-edge, reliable, and cost-effective solar energy solutions tailored to meet the unique demands of the local market. 

This venture into the energy sector is anticipated to focus on affordability and reliability to offer a dependable and cost-effective alternative to traditional power sources.

Andy Yan, CEO of itel Energy, articulates this vision by stating, “itel Energy is more than just a brand; it is our commitment to powering a brighter and more sustainable future for Nigeria. Our goal is to make clean, affordable, and reliable energy accessible to everyone, allowing for a better quality of life. We are thrilled to begin this journey in Nigeria, a market we have proudly served for many years.”

Nigeria’s demand for renewable energy is rapidly increasing due to decreasing commodity prices and rising grid electricity costs. In 2022, access to electricity in Nigeria was reported at 60.5%, according to the World Bank, highlighting a significant need for alternative energy solutions.

At the core of itel Energy’s offerings is a diverse range of products expected to address the energy demands of Nigerian consumers effectively. These solutions could provide seamless power backup and uninterrupted electricity supply, crucial for homes and businesses frequently grappling with power outages. 

One of their flagship products, the Smart All-in-One ESS (Energy Storage System), is anticipated to integrate effortlessly into Nigerian households. With its 600W Hybrid Solar Inverter and 1.28kWh battery, this system could potentially deliver continuous electricity, even during grid outages.

Additionally, itel Energy introduces IP54 and IP66 Inverters, which are designed to endure Nigeria’s extreme weather conditions. The IP54 model is for indoor use, while the IP66 is suited for outdoor conditions, offering higher protection against water and dust. Both models are built to handle Nigeria’s high temperatures and rainy seasons, ensuring reliable performance even in challenging environments.

itel’s entry into the Nigerian energy sector follows the trend set by smartphone manufacturers like Huawei, with its FusionSolar products. The company recently launched its CI Solution and 150K Series Inverter to integrate resource-efficient technologies into African operations to address Nigeria’s electricity supply challenges.

As itel Energy embarks on its journey in Nigeria’s energy sector, it holds the potential to boost the country’s adoption of renewable energy. With its commitment to offering long warranties, fast service, and 24/7 support, itel Energy is expected to make a substantial impact on Nigeria’s energy landscape, bringing reliable and affordable power to millions of homes and businesses across the nation.

Ecobank Enters Strategic Partnership with Ria to Enhance Remittance Services in Uganda

Ecobank Uganda Limited is set to reshape the remittance landscape in Uganda through a promising partnership with Ria Money Transfer, a global name in cross-border remittance services.

The bank formed a strategic partnership with Ria Money Transfer, with an aim to bring significant improvements to how Ugandans receive money from abroad. 

With this new initiative, funds can be deposited directly into Ecobank accounts, potentially streamlining the process of managing transactions for many. 

Additionally, account holders and non-account holders will be able to collect cash transfers promptly at any Ecobank branch or through the bank’s extensive sub-agent network spread throughout the country offering an added layer of convenience.

This flexibility aims to accommodate the diverse needs of Ugandans, whether they prefer digital transactions or in-person service.

The development comes at a time when Uganda’s remittance market is getting a significant boost. Fintech NALA’s recent International Money Transfer Operator (IMTO) license, and Flutterwave’s Payment Systems Operator (PSO) license from the Bank of Uganda highlight the growing focus on cross-border payment services in the country. 

This trend isn’t surprising, given the increase in remittances, which reached over USD 1.4 B in 2023. These financial flows now account for nearly 3% of Uganda’s GDP, becoming a critical source of foreign exchange and financial stability.

Ms. Grace Muliisa, Managing Director of Ecobank Uganda, emphasized the partnership’s importance for Ugandans at home and in the diaspora, particularly those in the UK, the US, and the Middle East. 

She highlighted that this collaboration aligns with Ecobank’s mission to offer seamless and secure global funds transfer services.

Mr. El Hadj Malick Seck, Managing Director of Ria Money Transfer – Africa, also stressed the value of this partnership, noting the importance of East Africa, especially Uganda, in Ria’s operations, which spans over 580,000 locations in nearly 200 countries.

This partnership has the potential to provide greater convenience for Ugandans sending money to their families, helping bridge the gap between the diaspora and their loved ones back home.

As remittances continue to play a crucial role in Uganda’s economy, this partnership could be a key driver in expanding access to financial services and streamlining the remittance process for all Ugandans.