Jumia, Africa’s top e-tailer, is set to exit South Africa and Tunisia by the end of 2024, marking a significant shift in its business strategy. The decision, announced in today’s press release, is part of a broader cost-cutting and refocusing effort aimed at streamlining operations and driving profitability.

This move, its latest pull-outs since a flurry of exits from Cameroon and Tanzania in 2019, highlights Jumia’s recalibration amid intensifying competition and challenging market conditions in these regions.

The closures signal Jumia’s intention to focus on its nine other African markets, including Egypt, Kenya, Nigeria, and Morocco, where the company sees greater growth potential.

Jumia’s CEO, Francis Dufay, acknowledged the difficult but necessary decision, stating, “The trajectory of the countries did not align with the strategy of the group,” citing macroeconomic complexities, competitive pressures, and low medium-term growth potential in both South Africa and Tunisia. 

South Africa: A Crowded Market Faces New Giants

Jumia’s withdrawal from South Africa comes just months after the local e-commerce landscape was shaken by the official launch of Amazon.co.za. The arrival of the global retail giant in May 2024 brought heightened competition to an already competitive market.

Amazon’s entry, with its vast international reach and extensive product categories, adds significant pressure to local players like Takealot, which had recently sold its fashion arm, Superbalist, amid growing competition from global fast-fashion platforms Shein and Temu. 

Dufay hinted at this intense competition, noting that in South Africa, “growth potential was definitely more difficult,” particularly in an environment where local and international retailers are fiercely vying for market share.

Jumia’s local fashion platform, Zando, founded in 2012, had become a well-known name in South African e-commerce. However, with Amazon’s entry offering a seamless shopping experience and competitive pricing, Zando’s ability to compete was severely challenged. 

Amazon’s Managing Director for Sub-Saharan Africa, Robert Koen, emphasised Amazon’s focus on convenience and variety, with local and international products, extensive delivery options, and customer support infrastructure. “We provide customers with great value, broad selection—including international and local products—and a convenient delivery experience,” Koen said during the launch. This aggressive expansion strategy likely left less room for local players like Jumia’s Zando to grow and compete effectively.

Tunisia: Limited Growth and Challenging Conditions

Tunisia, another market where Jumia has been operating under its own brand for a decade, faced similar issues of low growth potential. Together, South Africa and Tunisia accounted for just 2.7% of Jumia’s total orders and 3% of its gross merchandise value (GMV) in the first half of 2024, making their contribution relatively insignificant to Jumia’s broader business.

Tunisia’s small market size and macroeconomic challenges made it difficult for Jumia to scale profitably in the region. Dufay acknowledged that Jumia’s efforts in these two countries had failed to meet growth expectations.

“Both businesses account for a negligible portion of our overall operations,” he said, adding that competitive and macroeconomic conditions limited the growth potential in both markets.

By shedding these lower-performing operations, Jumia hopes to consolidate resources and improve efficiency across its remaining markets.

A Focus on Core Markets

Jumia’s exit from South Africa and Tunisia is part of a broader strategy to trim non-essential services and optimise resources for stronger markets. In recent times, the company has aggressively cut costs by reducing headcount, exiting everyday grocery items and food delivery, and narrowing its delivery services to focus purely on e-commerce. The company hopes these changes will bring it closer to profitability, a goal that has remained elusive since its 2019 IPO.

For Dufay, the decision is about refocusing Jumia’s energy on the markets where the company sees the greatest potential. “We believe it’s the right decision,” Dufay said. “It enables us to refocus our resources on the other nine markets, where we see more promising trends in terms of scale and profitability.” He added that success in any of these markets would likely compensate for the volumes lost by exiting South Africa and Tunisia.

Jumia’s remaining markets, which include the populous and growing economies of Egypt, Kenya, and Nigeria, offer promising opportunities. These countries have seen rapid e-commerce growth, driven by increasing internet penetration, a young population, and improving logistics infrastructure.

In 2022, for instance, South Africa’s e-commerce market grew by 30% to ZAR 55 B (USD 3 B), according to World Wide Worx. Markets like Nigeria and Egypt, with larger populations and rising consumer demand, offer similar prospects for Jumia as it shifts its focus.

The closures will result in about 110 job losses, though some employees may be relocated to other parts of the business. Both Zando and Jumia Tunisia will hold clearance sales before shutting down by the end of the year as Dufay says there are no plans to sell either operation

Jumia’s efforts to streamline operations come at a time when the African e-commerce market is evolving rapidly, with both local and international players jostling for position.

By cutting losses in less profitable regions and focusing on its strengths, Jumia hopes to continue growing across Africa, where e-commerce is still in its early stages but shows substantial potential.

The global e-commerce landscape is undergoing a seismic shift, and the epicentre isn’t Silicon Valley or Shenzhen—it’s Africa. A burgeoning young, digitally connected population, coupled with rapidly expanding economies, has ignited an e-commerce boom that’s capturing the attention of industry titans like Amazon and Alibaba.

A new report by Kyshi, a global payments provider with a focus on Africa, paints a vivid picture of this burgeoning market. It underscores the continent’s immense potential and the factors driving its rapid growth.

Key African markets like Nigeria and South Africa are on track for multi-billion-dollar e-commerce valuations in the near future, with long-term projections exceeding USD 1 T.

High mobile phone penetration and the widespread use of mobile money platforms like M-Pesa have created a fertile ground for mobile commerce innovation.

Additionally, Africa boasts the world’s youngest population, with a significant portion under 25. This demographic is increasingly online and eager to engage with global brands. Many areas, particularly in Central and West Africa, are ripe for e-commerce disruption, offering first-mover advantages for agile companies.

The Global Scramble

While homegrown players like Jumia have blazed a trail, recent challenges have created an opening for global giants. Amazon’s recent launch in South Africa and Alibaba’s strategic partnerships with local firms signal a new phase of international competition.

However, Africa’s e-commerce landscape presents unique challenges. Limited infrastructure and insufficient warehousing options necessitate innovative solutions, with local players leading the charge.

Low credit card penetration and diverse payment systems require adaptable solutions, Kyshi notes in its report, adding that its Merchant of Record (MoR) service and other fintech innovations are addressing this complexity.

The State of E-commerce in Africa 2024 Report also submits that building consumer trust and navigating diverse regulatory environments are paramount. Partnerships with local businesses can help mitigate these challenges. As global giants enter the fray, the research asserts, local players and innovators are key to navigating the unique challenges and opportunities.

The Stakes are High

Kyshi’s report provides valuable insights and findings into the current state of the African e-commerce market, players, key trends, challenges, and growth prospects. It offers analysis and actionable insights to help businesses navigate the African e-commerce market.

The report emphasises a timely reminder that the African e-commerce gold rush is in full swing. Companies that hesitate risk losing market share, revenue, and brand equity as competitors establish a foothold.

The African continent offers a diverse range of opportunities for businesses, from fashion and electronics to groceries and healthcare. Thus, the report highlights the urgency for global e-commerce players to act decisively. By leveraging local partnerships, innovative technologies, and a deep understanding of African consumers, these companies can unlock the continent’s vast potential and secure their place in the future of e-commerce.

In 2023, Saudi Arabia saw a record-breaking 13.5 million pilgrims visiting Mecca and Medina. This is a fantastic testament to the ongoing success of the Kingdom’s Vision 2030 initiative, a part of which is aimed at expanding the capacity and enhancing the experience of religious visitors. However, despite these figures there remain a number of challenges for many pilgrims. Acutely felt by those from developing countries, we see this most directly in the area of finance and financial inclusion.

Exemplified in regions such as West Africa and South Asia, a lack of access to stable and consistent financial services cause significant hurdles for pilgrims visiting Saudi Arabia. Whilst rarely experienced by travellers from more developed countries, financial difficulties overshadow Hajj and Umrah for many Muslims from economically emerging regions. 

In 2024, almost 1mil Nigerian pilgrims attended Hajj and Umrah. Yet, these pilgrims often need help navigating currency exchange. Limited access to foreign currency means many must carry large sums of physical cash, exchanging it for Saudi Riyals upon arrival. This time-consuming process introduces security risks, detracting from the intended religious experience.

Upon arrival in Saudi Arabia, these financial challenges don’t end. While digital banking platforms like Revolut, Wise, or Monzo are available to travellers from developed countries, they remain inaccessible to many pilgrims from developing nations. This exclusion adds layers of complexity, creating an unequal experience for those from developing nations like Nigeria, Pakistan, and Bangladesh.

Building UmrahCash to Bridge the Financial Divide

To address these challenges, we developed UmrahCash, a fintech solution designed specifically to eliminate financial barriers for pilgrims from developing nations. Based in Jeddah and Kano, North Nigeria: UmrahCash aims to simplify the financial journey by leveraging technology that ensures safe, secure, and seamless financial transactions. With UmrahCash, we are not just providing a service, but we are enhancing the entire pilgrimage experience, making it more accessible and enjoyable for all.

With UmrahCash, pilgrims can convert their home currency directly to Saudi Riyals through our digital platform, removing the need to carry large amounts of cash. We’ve built a network of vetted agents, starting in Northern Nigeria, who offer personalised support in local languages, ensuring that users—whether banked or unbanked—can access our services. The platform’s technology backbone ensures secure, transparent, and efficient financial transactions, allowing pilgrims to focus on their journey without worrying about managing cash.

By streamlining currency exchange, we’ve made the process easier and more secure. Our user-friendly app is designed to be accessible to all levels of financial and technological literacy, ensuring anyone can easily navigate it. We’ve combined cutting-edge backend technology with a simple front-end user interface, making UmrahCash a powerful yet easy-to-use tool for managing travel finances. This design ensures that our users feel confident and reassured, knowing that they have a reliable and accessible tool at their fingertips.

A Path Forward for All Pilgrims

The need for such inclusive financial solutions is pressing. In 2023, the majority of the 26.9 million Umrah pilgrims came from developing countries, underscoring the importance of financial technology in ensuring equal access to the pilgrimage experience. This realisation is a significant step towards a more inclusive and informed approach to pilgrimage. Saudi Arabia’s Vision 2030 has invested heavily in infrastructure at the holy sites, but for pilgrims to fully benefit from these improvements, we must also address the financial barriers they face.

At UmrahCash, we aim to empower all pilgrims, regardless of their financial background or country of origin, with the tools they need to enjoy a stress-free journey. By combining innovative technology with user-friendly design, we’re helping to level the playing field for millions of pilgrims worldwide.

Note: The article is written by William Phelps, CEO and Co-founder of UmrahCash. Established in 2024, UmrahCash allows pilgrims to make payments in their home countries and receive Saudi Riyals upon arrival in the Kingdom, thus simplifying access to the local currency.

As you may well know by now, yours truly was in attendance on Day 1 of the exciting Moonshot by TechCabal, where Lagos’ Eko Convention Centre was buzzing with tech entrepreneurs, investors, and all-around disruptors.

The event brought together a vibrant mix of founders, funders, regulators, and tech ecosystem stakeholders, all converging to share insights and celebrate innovation in Africa’s tech industry.

But let’s talk about the real highlight—the ‘Don’t Be a F@!head’ masterclass*. Yes, you read that right. Featuring two of Africa’s most prominent early-stage tech investors—Kola Aina of Ventures Platform and Olumide Soyombo of Bluechip Technologies and Voltron Capital—this session was essentially Startup School, but with whiskey.

And honestly, it was as entertaining as it was insightful. I grabbed a seat and headsets (thankfully) and settled in for what felt like an unfiltered, truth serum-infused therapy session for first-time founders.

With glasses and mics switching hands, Aina and Soyombo offered first-time founders a candid, no-nonsense guide to navigating the startup world. Their conversation, filled with humour, hard truths, and practical wisdom, drew a large and engaged audience on the Startup Stage at Moonshot.

Here’s a breakdown of the key takeaways from this memorable session.

Lesson 1: Be Teachable

Soyombo kicked things off with some simple, but often ignored advice: “Be teachable.” Basically, if you think you already know everything, good luck. As he put it, startups are a constant learning experience, and the founders who succeed are the ones who don’t let their egos get in the way. From his tone, it was clear—ego-driven founders don’t last long in his book. Cue the nodding from the crowd (and me sipping my water, pretending it was whiskey).

Lesson 2: Don’t Lie

Now, we’ve all heard “Honesty is the best policy,” but Aina put it bluntly: “Don’t lie.” If you screw up, own it. Transparency is key—especially with investors. He gave off the vibe of someone who’s been lied to by a few too many founders in his time. “If you’re condescending or deceitful, investors will figure it out eventually,” Aina warned. It’s not rocket science, but founders need to realise that a startup-investor relationship is built on trust, not bravado.

Lesson 3: Not Giving Updates is a Major No-No

Soyombo chimed in with one of the biggest pet peeves for any investor: radio silence. “Not giving updates is bad,” he said, staring into the crowd like he could sense a few guilty founders sitting right there.

It’s not just about keeping investors in the loop—it’s about keeping yourself accountable. Aina added, “The best founders use the reporting cycle as a moment of truth for themselves.” So, basically, if you’re avoiding those update emails because you have no progress to show, that’s exactly when you should be writing them.

Lesson 4: Beware of the Cap Table Destroyer

Aina dropped some serious gems on how to structure your cap table, and if you weren’t paying attention, you probably missed one of the most important tips of the day: “Don’t dilute your company too fast.”

Founders often get excited about that first cheque and give away too much equity. According to him, keep it under 15%. If you give away the farm too early, you might end up with little control and even less ownership. In his words: “An investor isn’t doing you a favour.” This was Aina politely reminding us that founders have value too, so don’t roll out the red carpet for just anyone.

Lesson 5: Respect the Capital

Soyombo got a little spicy here, sharing a personal story about a founder he’d backed. Shortly after getting funded, this founder showed up at Soyombo’s house, casually asking him how much it cost. (Spoiler alert: this was a red flag.)

And then, there’s that other founder jetting off to Ghana, staying at the Kempinski for months on end, and burning through capital like it was Monopoly money. “Respect capital,” Soyombo stressed. If you start acting recklessly with investor money, you’re not just burning your startup—you’re burning bridges.

Lesson 6: Investors are People Too (Surprise!)

Aina dropped another golden nugget: “Founders need to have more empathy for those on the other side.” I mean, I get it—everyone’s stressed, but investors are putting their money (and reputation) on the line. If you ghost them for months without updates, it’s not just rude—it’s career suicide.

And it’s even worse for the African ecosystem when global investors lose confidence as it’s harder for local VCs to pitch vital sources for their funds. All because some founders can’t manage basic communication. So, if you think ignoring your investors makes them go away, think again.

Lesson 7: No, You Can’t Just Slide Into a VC’s DMs

If you’ve ever thought about cold-messaging a VC on LinkedIn and waiting for the funding to roll in, I’m sorry to tell you, that’s not how it works. “Find common ground and warm intros to catch a VC’s attention,” Soyombo advised. Cold emails might work once in a blue moon, but chances are, they’ll just get lost in the shuffle.

Moral of the story: relationships matter, so start building them before you ask for that cheque.

Lesson 8: Finding a Cofounder Is Basically Marriage

Soyombo dropped another piece of advice for non-technical founders, encouraging them to look for cofounders in solid employees at Tier-1 startups. But his analogy was gold: “Finding a cofounder is like getting married.” Compatibility matters. You can’t just pair up with someone because they can code. Building a great team requires more than just technical skills—it’s about shared values, vision, and the ability to stick it out when things get tough. Just like marriage.

Lesson 9: How to Gracefully Shut Down

This one was heavy, but necessary. The reality is that startups fail. But how you handle that failure is crucial. Soyombo told the story of Cova, a startup that raised USD 800 K but saw the writing on the wall as it neared failure. Instead of burning through the remaining cash and quietly shutting down, the founder chose to return some of the money to investors, offering 25 cents on the dollar.

“Shutdowns don’t just happen all of a sudden; you can sense it coming,” Aina said in support, emphasising the importance of orderly wind-downs. As painful as it might be, handling a shutdown the right way can give founders another shot at success.

And there you have it. If I had to sum up this masterclass in a sentence, it would be this: Don’t be an ego-driven, irresponsible, ghosting founder who can’t handle failure. That, my friends, is how you lose investor trust faster than you can say “fundraising round.”

As media entrepreneur Fatu Ogwuche, who co-hosted the Startup Stage where the masterclass took place, later posted, “This is the most grown masterclass I’ve ever seen 😂.” And, indeed, the masterclass left many first-time founders in the audience with valuable lessons and a lot to think about as they continue their journeys in Africa’s rapidly growing tech ecosystem.

Moonshot Day 1 was packed with insights, but this masterclass was the no-BS guide every first-time founder needed. Hopefully, everyone took notes—because these two VCs didn’t come to play.

The days of quietly holding onto your crypto assets without reporting them to the tax authorities are nearing an end as the South African Revenue Service (SARS) announced that crypto assets will be included in its compliance programs.

This move comes as no surprise, given the surge in digital currency use, with over 5.8 million South Africans—roughly 10% of the population—now holding some form of cryptocurrency. Southern Africa, in fact, boasts one of the highest uptakes of Bitcoin in the world.

SARS has raised concerns that many taxpayers are failing to declare their crypto assets in their tax returns, despite being legally required to report all forms of income and assets. In response, the tax authority has partnered with the Financial Sector Conduct Authority (FSCA) and is working with local crypto exchanges to collect information on crypto assets.

This collaboration is part of a broader initiative to ensure tax compliance by monitoring registered Crypto Asset Service Providers (CASPs).

To further tackle non-compliance, SARS has begun issuing query letters to taxpayers with crypto assets. These letters aim to gain insight into taxpayers’ investment in crypto assets and the trades undertaken to enable SARS to assess taxpayers’ compliance in this regard. This effort is supported by advanced technologies such as artificial intelligence and machine learning, which SARS say it is using to enhance its audit capabilities.

For those looking to stash their crypto assets in offshore accounts, SARS is also participating in international agreements to exchange taxpayer information with other countries, particularly in relation to offshore crypto accounts. A multilateral agreement set to be signed by Finance Ministers in November 2024, is expected to facilitate the cross-border exchange of such data.

Meanwhile, SARS says it is “working assiduously to make it easy and simple for taxpayers and traders to seamlessly comply with their obligations.” These efforts are intended to support its strategic Intent of fostering a culture of voluntary compliance.

For those concerned about their compliance, SARS has reiterated the availability of its Voluntary Disclosure Programme (VDP), which offers taxpayers an opportunity to regularize their crypto asset declarations. However, this option is only available if taxpayers come forward before they are flagged for audit.

This development comes after FCSA’s recent crackdown on illegal crypto operations in July. The FSCA, having declared crypto assets as financial products in October 2022 due to increasing risks and fraudulent activities, is now actively investigating up to 30 entities operating without proper licenses.

According to reports by the regulatory body, it had received 383 applications for licenses as of July 2024, approving 63 but rejecting several others for failing to meet the necessary regulatory standards. This brought the total number of licensed crypto exchanges in South Africa to 138.

SARS’ actions signal a broader effort to bring more transparency and order to the chaotic world of cryptocurrency. While many South Africans and businesses have embraced digital currencies as a payment method, investment tool, or hedge against inflation, the increased scrutiny from tax authorities signals that the era of under-the-radar crypto activity is drawing to a close.

Pan-African fintech giant Flutterwave has expressed satisfaction with the recent decision by the Kenyan Court of Appeal, which upheld a lower court ruling in a long-standing legal dispute with former employee, Clara Wanjiku Odero, now Founder/CEO of Credrails, an open finance platform backed by prominent global investor SoftBank.

The court dismissed Odero’s appeal, awarding her KES 250 K (approximately USD 2.5 K) in total damages, a sum far smaller than what she had reportedly sought for emotional distress and reputational damage.

Odero’s claims stemmed from Flutterwave’s failure to remove her contact information from its M-Pesa Paybill account after her departure from the company in 2018, leading to customer inquiries directed at her long after she left her role as Head of Implementation for Rest of Africa.

Odero argued that this oversight caused her public embarrassment, emotional distress, and reputational harm after she was erroneously roped into a scandal involving a shady customer. However, the appellate court agreed with the lower court’s decision, noting that Odero had not provided sufficient evidence to support her claims of reputational damage.

Justice Alexander Muasya, in delivering the ruling, emphasized the court’s position, stating: “The award in damages was capped at KES 250 K by the Magistrate. I do not find reason to disturb his finding considering that there was no proof of loss of reputation. The sum was reasonable.”

In response to the ruling, Flutterwave told WT in a statement that it welcomed the court’s decision and reiterated its confidence in the legal process. “We welcome the Court’s decision to dismiss the claimant’s appeal and to award Flutterwave the costs of the appeal. This outcome reinforces our confidence in the justice system and the integrity of the legal process,” the company said. Wanjiku declined to comment.

Flutterwave also reiterated its commitment to fostering a positive workplace culture, stating: “As we move forward, our focus remains on growing the company while ensuring that every employee feels safe, valued, and respected. We’re committed to fostering a culture of safety, inclusivity, and collaboration, and we encourage open conversations at all levels of our organization.”

The legal battle between Odero and Flutterwave first gained public attention after Odero shared her experiences in a 2022 Medium post, accusing Flutterwave’s CEO, Olugbenga Agboola, of bullying and harassment. She alleged that her treatment at the company left her feeling belittled and tarnished, claims that Flutterwave has consistently denied.

The company stated: “As an organisation that continuously strives to create an environment where employees feel secure and safe, we take the recent allegations of bullying from a former employee very seriously. We categorically state that there is no place for bullying or harassment of any kind in our workplace.”

Despite Odero’s efforts to claim higher compensation, the court found no direct evidence linking Flutterwave’s negligence to any reputational harm. The court awarded her KES 100 K for emotional distress and KES 150 K as aggravated damages—well below the amount initially sought. Moreover, the appellate court dismissed Odero’s appeal and ordered that Flutterwave be awarded the costs associated with the appeal.

This ruling marks the conclusion of a legal saga that began after Odero’s departure from Flutterwave and highlights the importance of clear separation protocols for departing employees. The court’s decision has also reinforced Flutterwave’s position that its handling of the situation, though regrettable, did not merit the level of compensation Odero had demanded.

Flutterwave, now valued at over USD 3 B, acknowledged its delay in removing Odero’s contact information but had earlier expressed regret and offered to resolve the issue amicably. Nevertheless, the company stood firm in denying the broader allegations of harassment.

This case exposes the complexities that can arise when employee exit procedures are not handled with precision. It also emphasises the need for clear communication channels and robust HR practices to avoid potential legal disputes. Flutterwave’s focus, as stated in its response, remains on growth and creating a positive workplace environment.

For Flutterwave, the ruling represents closure in a dispute that has spanned several years, allowing the company to continue expanding its operations and cementing its status as one of Africa’s leading fintech firms.

As investment opportunities in Africa’s startup landscape become increasingly competitive, the need for founders and investors to find common ground and get on the same page as they navigate shifting dynamics has become imperative. The role of investor reporting has thus come to the fore.

However, while reporting frequency has improved, many startup founders still feel that investors don’t fully understand their business or market. This disconnect creates ongoing challenges for investor confidence and highlights a gap between what founders report and what investors find valuable.

A recent report from Wimbart, a PR agency specialising in African and emerging markets with a notable tech clientele, highlights the critical role of investor reporting. The findings reveal that effective communication between startups and investors is not just beneficial but essential for navigating the current subdued funding environment, where investments have declined.

A Shift in Reporting Demands

The report, titled “Startup Performance Reporting in Africa: Aligning Startup and Investor Expectations,” indicates that 72.2% of investors have intensified their reporting requirements over the past 18 months.

This change reflects growing concerns regarding financial stability (33.3%), transparency (25%), and the need for enhanced performance monitoring (16.7%). With nearly two-thirds (64.7%) of investors initially receiving monthly updates from portfolio companies in 2023, this figure dropped dramatically to 27.8% by 2024. Investors are now favouring quarterly reports, which have risen from 29.4% to 50%, suggesting a shift towards a more manageable reporting structure.

This new trend underscores the increasing reliance on regular reports to assess the “quality of founder,” a key determinant in follow-on funding decisions. An overwhelming 88.8% of investors agree that the quality of these reports significantly impacts their assessment of a founder’s ability to execute business objectives. One investor noted, “For performance tracking and risk assessment, looking at previous reports helps assess a founder’s track record.”

The Disconnect Between Founders and Investors

Despite the apparent need for robust reporting, a notable disconnect persists between startups and investors. 40% of startup founders feel that investors do not fully understand their business or market, which creates challenges in communication and investor confidence. This sentiment is echoed by the report’s findings that 60% of investors view the founders themselves as the biggest barrier to meaningful reporting. Common complaints include a lack of focus in reports (27.8%) and perceived inaction from founders (16.7%).

The report highlights that 70.6% of investors are primarily focusing on pre-seed and seed-stage companies. This concentration aligns with the early-stage nature of Africa’s startup ecosystem, where venture capital firms aim to support nascent businesses. However, while 93.9% of founders recognise the importance of regular updates for maintaining good relationships, only 42.4% believe that investors genuinely grasp their business intricacies. This gap emphasises the need for both parties to bridge their understanding to foster a more productive relationship.

The Importance of Quality Metrics

Founders are increasingly aware of the necessity of detailed reporting. Over 57.6% cite the effort required to produce such reports as the biggest barrier. Yet, the effort often pays off: 60.6% of founders report receiving direct intervention or support from investors as a result of their updates.

However, tensions arise over what constitutes essential reporting details. While 70% of founders utilise standardised templates, many feel that critical performance metrics—such as customer acquisition costs (CAC), customer retention rates, and lifetime value (LTV)—are frequently overlooked by investors.

The Wimbart report suggests key recommendations to enhance investor-startup relationships. Investors are urged to clearly communicate their reporting requirements and expectations, possibly providing templates to facilitate adherence. Startups should avoid vanity metrics and focus on meaningful indicators that demonstrate their understanding of the business.

In a challenging fundraising environment, Jessica Hope, Founder and CEO of Wimbart, emphasises that “in today’s tough fundraising environment, startup founders cannot afford to overlook clear and consistent reporting – it’s not just beneficial but essential.” The shift in investor priorities towards sustainability and long-term performance further emphasises the need for effective communication.

The evolving dynamics of investor reporting in Africa highlight the critical importance of clear communication in fostering robust relationships between startups and investors. As the funding landscape continues to tighten, addressing the disconnect between what founders share and what investors value will be vital for securing future investments. By embracing effective reporting practices, both parties can navigate the complexities of Africa’s startup ecosystem more successfully.

The highly anticipated AfriLabs Annual Gathering 2024 will take place on November 6th and 7th in Cape Town, South Africa. This ninth iteration of the Gathering, themed “Uniting Innovation,” promises a transformative agenda with innovators and thought leaders from across Africa and beyond.

Known for its tradition of showcasing a new host country each year, the event offers a rare opportunity for local and international stakeholders to engage with the host nation’s innovation ecosystem. This year, Cape Town’s vibrant entrepreneurial scene will be in the spotlight.

The 2024 Gathering will tackle key issues such as artificial intelligence, blockchain, sustainable development, and digital inclusion. The program aims to foster collaboration, spark thought-provoking discussions, and drive impactful solutions for Africa’s growth and prosperity. Innovators from sectors like fintech, healthtech, and the green and blue economy will share insights, offering a comprehensive view of Africa’s rapidly evolving innovation landscape.

RLabs will host this year’s event at the Cape Town International Convention Centre. As a leader in South Africa’s innovation space, RLabs is the ideal host for an event that brings together ecosystem builders, investors, and partners across Africa and its diaspora.

During a recent info session, Moetaz Helmy, AfriLabs Board Chair, highlighted the Gathering’s importance: “This gathering is more than just a meeting of minds—it’s about creating a legacy of innovation across Africa. Each year, we see how bringing the event to a new country stimulates new partnerships, ideas, and opportunities.”

Who can participate?

Whether you’re a startup founder, investor, policymaker, or innovation enthusiast, the AfriLabs Annual Gathering 2024 is a unique opportunity to engage, learn, and help shape Africa’s digital future.

You can book your slot here to be part of Uniting Innovation in Africa and drive positive change across the continent.

If you’re interested in contributing or having your brand represented at the event, get in touch to explore partnership opportunities.

As remote work continues to reshape the global workforce, African nations are positioning themselves as attractive destinations for digital nomads. Kenya’s recent introduction of its Class N Digital Nomad Visa is the latest in a wave of similar initiatives across the continent, designed to draw in skilled remote workers who contribute economically without taking local jobs. Kenya’s move reflects broader trends in countries like Mauritius, Namibia, Seychelles, Cape Verde, and South Africa, all of which have launched similar programs.

Kenya’s Play for Global Talent

On October 1, 2024, Kenya officially amended its immigration regulations to introduce the Class N Digital Nomad Visa, offering a legal framework for remote workers to live in the country while maintaining foreign employment.

President William Ruto introduced the Visa with much fanfare at the 2024 Magical Kenya Travel Expo, highlighting Kenya’s goal to boost tourism and attract global talent. The visa enables foreign nationals working for companies outside Kenya or freelancing for international clients to reside in the country for extended periods.

To qualify for the visa, applicants must demonstrate a valid passport, proof of remote work, an assured annual income of at least USD 55 K from non-Kenyan sources, accommodation arrangements, and a clean criminal record. Notably, digital nomads are prohibited from taking local jobs, ensuring the protection of Kenya’s labour market.

While the visa supports long-term residency, it also offers a pathway to permanent residency and, eventually, citizenship. Kenya hopes this will draw more remote professionals, particularly those working in tech and innovation, to bolster the country’s growing tech ecosystem.

“By attracting skilled foreign workers, Kenya aims to boost its tourism industry, stimulate economic growth, and foster innovation,” the government noted, positioning the visa as a key part of its strategy to reinvigorate its economy post-pandemic.

The Growing Trend Across Africa

Kenya’s visa isn’t an isolated move. Several other African countries have already jumped on the digital nomad bandwagon. Mauritius introduced its Premium Travel Visa in 2020, allowing digital nomads and tourists to stay for up to 12 months, with a monthly income requirement of USD 1.5 K.

Namibia, in 2022, launched a similar visa, with a monthly income threshold of USD 2 K, aimed primarily at boosting its tourism sector. Seychelles and Cape Verde have also created digital nomad programs, each with its own set of financial and accommodation requirements. South Africa is also getting ready to roll out its version, with an annual income requirement of ZAR 1 M (~USD 53 K), making it comparable to Kenya’s income threshold.

The shared intent among these countries is clear: to invite remote workers who bring foreign income into their economies without competing with local labour. Digital nomads typically spend on housing, food, and leisure, benefiting local businesses.

These visa programs also have the added benefit of positioning the host nations as forward-thinking, modern destinations for remote workers, many of whom are highly skilled professionals in tech, design, and entrepreneurship.

Can Africa Deliver on its Promises?

While these initiatives are promising, there is scepticism about the actual implementation, particularly in Kenya. The country has a history of ambitious projects that fail to materialise. For instance, Kenya’s Startup Act was once hailed as a game-changer for its tech ecosystem but has yet to be fully realized. Similarly, the much-touted Konza Techno City, billed as East Africa’s tech hub, has faced delays and bureaucratic hurdles.

While the Class N Visa has officially been gazetted, Kenya’s track record raises concerns about how quickly it will be implemented and whether the infrastructure will follow.

Nonetheless, the appetite for innovation remains strong. Remote workers are likely to find Africa’s combination of affordable living, rich culture, and growing tech ecosystems appealing. And as Europe scales back its digital nomad incentives, African nations could capture a new wave of remote professionals seeking fresh opportunities.

The Future of Work in Africa

Africa’s digital nomad visa trend is part of a larger global shift in how and where work is conducted. As more professionals untether from traditional office environments, they seek locations that offer both professional opportunities and a high quality of life. African nations, with their varied landscapes and burgeoning tech scenes, could become major beneficiaries.

Kenya’s introduction of the Class N Visa is a sign of the times. As more countries follow suit, Africa could become a new hub for remote workers, bringing fresh talent and investment into the continent. However, the success of these programs rests on how well governments execute their plans, manage expectations, and ensure that the promised opportunities become realities.

For now, Kenya—and Africa as a whole—seems ready to embrace the future of work. Whether that future becomes a reality will depend on how well these nations balance ambition with execution.

Egypt’s leading fintech company, Fawry, has marked a significant milestone by surpassing EGP 1 B (~USD 20 M) in total Buy Now, Pay Later (BNPL) disbursements just over a year after launching the service.

The BNPL sector, which allows consumers to spread payments over time without upfront costs, has been booming worldwide. Fawry, long established as a payments platform with services like bill payments, mobile top-ups, and e-commerce, saw an opportunity to expand into consumer finance, introducing BNPL as part of its growing portfolio in mid-2023. The quick uptake of the service points to strong demand in Egypt for flexible financial solutions, especially amid economic challenges.

CEO Eng. Ashraf Sabry emphasised the significance of this achievement, stating, “This milestone is a testament to the company’s ability to leverage its existing consumer base while introducing innovative services that cater to underserved segments of the population.” Fawry’s entry into BNPL, he noted, aligns with the company’s mission to drive financial inclusion in Egypt. By integrating BNPL into its broader suite of services, Fawry positions itself as a comprehensive financial platform.

The numbers are impressive. In just one year, Fawry’s BNPL business has generated USD 20 M in revenue. The company leveraged its digital infrastructure, particularly its myFawry app, which has over 10 million downloads, and the myFawry prepaid card, to fuel this growth. These tools allowed Fawry to seamlessly onboard customers and expand its reach, positioning itself ahead of many local competitors in the BNPL space.

However, the success comes in the context of Africa’s broader challenges in adopting BNPL services. According to Tobi Odukoya, CEO of Nigerian BNPL startup CDCare, “The high cost of credit in Africa poses a unique challenge for BNPL providers.” In Nigeria, the average interest rate is 16.5%, while retail profit margins sit between 5-10%, making it difficult for BNPL models to sustain profitability.

This reality holds for Egypt as well, where inflation and devaluation have strained consumer purchasing power. Nonetheless, Fawry has managed to navigate this tough economic landscape by focusing on essential goods and services, which are in high demand, particularly among low- and middle-income households.

Fawry’s foray into BNPL also signals a broader shift in the region’s fintech industry. Africa’s BNPL market is seeing increasing competition, with companies like South Africa’s PayFlex and Nigeria’s CredPal entering the fray. However, Fawry’s entrenched market position in Egypt gives it an edge. The company already processes more than 6 million transactions daily, serving over 52.5 million users each month. By embedding BNPL within its existing ecosystem, Fawry reduces the risk of customer churn and strengthens loyalty.

Fawry’s approach also taps into the cultural sensitivities around debt in Africa. In many parts of the continent, particularly in Muslim-majority regions, there is an aversion to traditional forms of credit. Islam prohibits interest-based lending, which limits the appeal of conventional credit products. Fawry’s BNPL service provides a viable alternative for these consumers, allowing them to make purchases on credit without the need for bank loans or credit cards.

Despite the promising start, the path ahead is not without challenges. BNPL companies face the risk of high default rates, and in Egypt, where financial literacy and debt management can be issues, Fawry will need to carefully manage this aspect of its business. Furthermore, as more players enter the BNPL space, maintaining its competitive edge will require continuous innovation. Fawry’s early success, however, positions it as a leader in Africa’s burgeoning BNPL market.

As Africa’s fintech sector continues to evolve, Fawry’s BNPL venture provides a glimpse of how established companies can expand into new territories while maintaining their core strengths. Whether Fawry’s success can be replicated in other African markets remains to be seen, but the company’s quick rise in Egypt’s BNPL scene sets a high bar for its competitors.