E-commerce has long promised convenience, accessibility, and the transformation of shopping habits across the globe. Yet, for many rural and underserved regions, the barriers to fully embracing online shopping have remained high. These challenges—particularly in Africa—include poor infrastructure, high transportation costs, and limited delivery networks.

However, e-commerce companies are now tapping into a solution that could change the game: pickup stations.

Jumia, often dubbed the “Amazon of Africa,” is tweaking its strategy in a significant way. After years of focusing on major cities, the e-commerce giant is going brick-and-mortar and targeting rural markets with pickup points, a move designed to reduce delivery costs and bring underserved populations into its fold. As Jumia faces rising competition (from rival e-tailers and social commerce) and economic pressures, this approach reflects its push to find new growth avenues and get closer to long-elusive profitability.

Pickup stations have become a crucial enabler for expanding e-commerce into rural and semi-urban areas, providing a practical solution to the last-mile delivery problem. Companies like Jumia are embracing this shift, embracing pickup stations to expand their reach while reducing delivery costs and enhancing accessibility.

Overcoming Infrastructure Gaps with Pickup Stations

In Africa’s rural markets, smaller e-commerce players like Copia Global found significant success using pickup points and agent-led models, though Copia ground to a halt earlier this year amid financial struggles. Other players, such as Kapu and Tusho, with USD 11 M raised between them in 2022, rely on similar models that involve local agents to serve hard-to-reach areas. Jumia is betting that its existing infrastructure and agent network will give it an edge in expanding these rural efforts across its remaining nine markets.

For e-commerce companies, reaching customers in rural areas has always posed a logistical challenge. The lack of well-maintained roads and delivery networks makes traditional door-to-door delivery inefficient and expensive. But pickup stations offer a smart workaround. These hubs allow customers to collect their orders from central locations, cutting down on the costly last-mile delivery process.

Jumia is doubling down on this strategy. Through its City Expansion initiative, the company has deployed pickup stations in remote areas, allowing it to reach more customers without the need for extensive delivery routes. This strategy has proven effective, especially in countries like Uganda, where Jumia says it has established 99 pickup stations across 25 cities. In rural regions like Gulu, Arua, and Jinja, the impact is already visible, with 24% of deliveries now happening in remote areas, and 15% in secondary cities.

Making E-commerce More Affordable

Traditionally, the high cost of delivery has been a major deterrent for rural shoppers, often making it prohibitively expensive for them to order products online. By consolidating deliveries to central points, pickup stations significantly cut transportation costs.

This model benefits both the company and the customer. Francis Dufay, CEO of Jumia, emphasised that pickup stations allow the company to pass on savings to consumers. “We can offer competitive delivery options without the need for complex last-mile logistics,” Dufay explained. Customers in rural and semi-urban areas can now access a wider range of goods at lower prices, making e-commerce not only accessible but also cost-effective.

In addition to affordability, pickup stations also open the door for promotions and discounts that would otherwise be unfeasible in regions with high delivery costs. For many rural consumers, this shift makes online shopping a viable alternative to traditional retail for the first time.

Boosting Local Economies and Building Trust

The benefits of pickup station model extend beyond cost savings and infrastructure improvements. By partnering with local businesses to serve as pickup locations, the service is helping to boost local economies. For example, Idrees Luqman Akorede, CEO of Elhay Services in Ogun State, Nigeria, transformed his shop into a Jumia pickup station. As a result, he saw a significant increase in foot traffic, boosting his business revenue.

Similarly, Adeniji Ademola Ayobami, CEO of Cart-zone Deliveries in Oyo State, earns a commission on every package picked up from his store. In addition to the financial benefits, Ayobami noted that these partnerships are changing the perception of online shopping in rural areas. Pickup stations offer a tangible, accessible link between the digital economy and customers who may have been wary of e-commerce due to concerns about delivery reliability.

In places like Modakeke, where internet connectivity has been a barrier to e-commerce adoption, pickup stations provide a secure and convenient solution. Customers can now engage with online shopping platforms without the fear of delayed or lost deliveries, thanks to the centralised nature of these hubs.

A Broader Push into Rural Markets

Jumia’s pivot towards rural and peri-urban markets is part of a larger strategy aimed at maximizing marginal gains in the quest for profitability. The company has struggled to achieve profitability since its 2019 IPO, facing stiff competition and rising operational costs. To address these challenges, Jumia has doubled down on reducing costs and expanding into less saturated markets.

Beyond Uganda, Jumia’s expansion into smaller towns and rural areas has extended to other African countries like Ivory Coast and Senegal, where the company is targeting high-growth regions through partnerships with international retailers like Leroy Merlin. During the pilot phase of this partnership, 40% of the Leroy Merlin products sold on Jumia’s platform in Francophone countries were purchased by buyers outside the capital cities, demonstrating strong demand in rural areas.

This strategy, however, isn’t without complications. Cases like Copia Global, which had gained traction focusing on unlocking e-commerce for rural consumers using a similar agent-led model before stuttering, are a cautionary tale. Still, Jumia’s broader footprint and pickup station network could provide it with an advantage in scaling this approach across multiple markets.

Trimming the Fat: Exiting Low-Growth Markets

As Jumia pushes further into rural markets, it is also streamlining its operations in less profitable regions. The company recently announced plans to exit South Africa and Tunisia by the end of 2024, following earlier pull-outs from Cameroon and Tanzania. These decisions are part of Jumia’s broader effort to cut costs and focus on markets with higher growth potential, such as Nigeria, Egypt, and Kenya.

South Africa, in particular, became an increasingly difficult market after Amazon launched its local operations in May 2024, adding pressure to local e-commerce players like Zando, Jumia’s fashion platform. Tunisia, on the other hand, struggled with low growth and challenging macroeconomic conditions, contributing just 2.7% of Jumia’s total orders in 2024. “The trajectory of these countries did not align with the strategy of the group,” Dufay remarked, signalling Jumia’s intent to focus its resources where the potential for profitability is higher.

Jumia’s shift towards pickup stations and rural markets represents a bold pivot in its quest for profitability. As it continues to refine this model and expand its footprint, Jumia hopes to turn these marginal gains into a sustainable path to profitability—one pickup station at a time.

The Milken Institute, a US-based nonprofit, nonpartisan think tank focusing on economic and policy solutions and the Motsepe Foundation, a South African-owned foundation that focuses on initiatives and projects to alleviate poverty and improve sustainable living have selected 10 semifinalists advancing to the semifinal round of their Innovation Prize Program, the Milken-Motsepe FinTech Prize.

These teams, featuring nine 9 African startups out of the ten, have been awarded USD 100 K each to develop solutions that aim to enhance financial inclusion in emerging and frontier markets.

The FinTech Prize, a global initiative, seeks to address the financial challenges faced by underserved populations by promoting innovative ideas that offer increased access to financial tools.

These solutions are expected to create a sustainable impact by improving access to credit, enhancing payment systems, and offering other financial services essential for economic growth in these markets.

“By supporting these pioneering teams, we aim to foster financial inclusion and empower entrepreneurs who drive economic growth and opportunities in their communities,” Emily Musil, senior director of Milken Institute noted. He emphasized that the prizes help identify, support, and celebrate talent to ignite the entrepreneurial spirit and empower visionaries to turn their ideas for a better future into reality.

The 10 startups operating across nearly 30 countries across 2 continents include:

▪️ AZA Finance (Kenya): A B2B FinTech platform offering affordable, efficient financial services like payments and currency exchange.

▪️ Chapa (Ethiopia): A payment gateway simplifying payment processing integration for businesses through a developer-friendly API.

▪️ Chumz (Kenya): A gamified savings product that encourages individuals to save through behavioral psychology techniques.

▪️ Farmpawa (Uganda): A crowd-farming platform connecting investors with farming assets, driving sustainable agricultural growth.

▪️ Flow Global (UK): A liquidity engine for retail merchants, providing working capital solutions to boost growth in the digital economy.

▪️ Paycloud by Lipa Later (Kenya): A digital banking platform tackling late payments with seamless payment processing and financial tools.

▪️Nyla Bank (Ghana): Africa’s first digital Islamic bank, offering Shariah-compliant financial services for ethical banking.

▪️ Oze (Ghana): A lending platform that helps small businesses access credit through digitized financial data for banks.

▪️ Trade Lenda (Nigeria): A platform providing fast loans and micro-savings tailored to small and medium-sized enterprises (SMEs).

▪️Verto (UK): A cross-border payments platform for businesses, handling 49 currencies and eliminating intermediary fees.

These teams will spend the next few months refining and scaling their solutions, which will be assessed for their ability to foster financial inclusion on a global scale.

The semifinalists will go on to present their solutions at the Milken Institute’s Middle East and Africa Summit in Abu Dhabi in December 2024. The pitches will be evaluated based on their potential to provide impactful, scalable, and sustainable financial inclusion solutions.

The top three teams will advance to the final round, where they will compete for a USD 1 M grand prize, which will be awarded at the Milken Institute’s Global Conference in Los Angeles in May 2025. The total prize pool amounts to USD 2 M including a USD 1 M Grand Prize.

The ultimate goal of the prize is to identify breakthrough innovations that will make financial tools and services more accessible to underserved populations.

For the first time since stepping down as CEO of 54gene, Dr. Abasi Ene-Obong has opened up about the circumstances surrounding his departure and the company’s eventual collapse.

In a Medium post published on Thursday, Ene-Obong detailed his ordeal, drawing parallels between his experience and a broader pattern of sabotage against transformational African ventures. While 54gene’s fall was widely attributed to financial mismanagement and operational struggles, Ene-Obong has now hinted at more insidious forces at play, including sabotage and false misconduct allegations.

“When someone rises to do something that hasn’t been done before, that empowers the African people, various interests sabotage or try to sabotage them,” Ene-Obong wrote in the post. He reflected on how powerful African initiatives are often targeted by internal and external actors, referencing not only his own experience but also recent examples like Aliko Dangote’s refinery and historical cases like Michael Aondoakaa’s legal battle against a pharmaceutical company in the late 1990s.

54gene, founded by Ene-Obong in 2019, was a groundbreaking project aimed at addressing the severe underrepresentation of African genetic material in global pharmaceutical research. The Y Combinator-backed company quickly gained attention for its audacious mission and secured USD 45 M in funding from investors like Adjuvant Capital and Cathay AfricInvest Innovation Fund.

Its core asset, a biobank containing over 130,000 unique African patient samples, was set to revolutionise precision medicine and drug development in the region. However, by 2022, cracks began to appear in the company’s financial and operational structure.

***

The company’s financial struggles were complicated by its ambitious business model. Genomics is a capital-intensive field, with significant costs related to sequencing equipment and cloud storage of genetic data. According to sources familiar with the industry, these costs can pile up quickly, and without a consistent revenue stream—especially as demand for COVID testing declined—54gene found itself in a precarious financial position.

Ene-Obong’s exit in October 2022, following the layoff of 95 employees and significant revenue losses from the decline in COVID-19 testing, raised questions. At the time, media outlets such as TechCrunch reported that his resignation was linked to “allegations of financial misappropriation.”

In his blog post, however, Ene-Obong fiercely rejected this narrative, revealing that the rumours were not only untrue but part of a broader strategy to undermine him. “When I decided to resign to have a chance at starting again… I read that I resigned ‘amidst allegations of financial misappropriation,’” he wrote. “This couldn’t be further from the truth, but again, it is the game people play.”

TechCrunch later retracted the statement and apologized for the error, but by then, the damage had already been done. The allegations, whether baseless or not, had spread quickly across the media, damaging both Ene-Obong’s reputation and the public’s perception of 54gene.

“Till today, I have not been accused by my former organisation of financial misappropriation. I received a full separation (a clean break, as it’s called) when I asked to be fully separated from the company and the board,” he revealed.

“I doubt this would have been possible or that I could have started a competing company without legal reprisal if everything written was true. Was there an attempt to find damaging information on me like they did Michael? Yes. A forensic accounting audit was conducted. But nothing unethical was found,” Ene-Obong emphasised.

***

In his post, he disclosed how his financial integrity was central to his role at the company, citing instances where he took personal pay cuts to support his team.

“I ensured I was never the highest-paid person in the company,” he wrote, revealing that at one point, eight employees were earning more than him. He also wrote that he sacrificed his salary for months to cover bonuses for staff which the board had moved to withdraw, a decision he says was never made public until now.

“When I started my first startup[54gene], on its own a transformational idea, an investor I would later have the privilege of calling “friend” said something that has proven to have foresight,” Ene-Obong wrote. “He said, “Abasi, you are not building a typical startup,” “What you’re building is powerful,” and “It’s not if they come for you; it’s when they come for you, they will do so in one of two ways.” He said one way was financial; the other way, I will let you figure it out, but most of your guesses will probably be right … So, from the beginning of that company, I walked a very fine line, never doing anything unethical financially or otherwise.”

But according to Ene-Obong, the real blow to 54gene came not from financial mismanagement, but from internal conflict and manipulation. He alluded to a board decision that led to his resignation, describing it as akin to having a “figurative gun being pointed at [his] family (the company).”

Faced with mounting pressure, Ene-Obong revealed he felt forced to sign documents he didn’t agree with to protect the company he had built. He described leaving the company under a cloud of controversy, with various actors pushing misleading narratives about the company’s failures.

Although he refrained from providing further details, his comments suggest that the downfall of 54gene was not solely due to poor business decisions but may have been influenced by interpersonal conflicts at the highest levels of leadership.

“When companies fail, no matter how altruistic their purpose, disagreements arise,” said Ron Chiarello, who briefly took over as CEO after Ene-Obong’s exit.

***

The decline of 54gene followed a well-known trajectory. In addition to layoffs and revenue declines, the company’s valuation was slashed by more than USD 100 M in 2022.

The closure of 54gene officially began in 2023, as the company struggled to stay afloat amidst financial distress and leadership instability. Chiarello, who left the company by September 2023, confirmed to TechCabal that 54gene was unable to continue operating financially. What followed were reports of unpaid creditors and a lawsuit filed by Teresia Bost, the company’s former general counsel and interim CEO, accusing 54gene of fostering a hostile work environment and discrimination.

Bost’s legal claims went beyond personal grievances. Her lawsuit alleged questionable financial decisions by former executives, which, she claimed, left the company near insolvency. According to Law360, Bost’s salary had been slashed from USD 330 K to USD 175 K, in breach of her contract, and she claimed she had been warned that the company could be insolvent by September 2022.

By the time the company entered liquidation in July 2023, it was clear that the vision of transforming African healthcare through genomics was slipping away. Yet, Ene-Obong’s Medium post paints a picture of a leader who, despite facing false accusations, remained committed to ethical leadership. “For me, it was never about the money,” he wrote.

***

Looking back on the challenges he faced with 54gene, Ene-Obong acknowledged that “transformational projects get sabotaged,” and that false financial accusations are a common tactic used to derail African innovators. He hinted that 54gene’s downfall was accelerated by forces beyond financial pressures—forces that he suggests may have been deliberate attempts to undermine the project.

Ene-Obong’s reflections on 54gene come as he embarks on a new venture: Syndicate Bio, which he launched late last year. The company aims to drive precision medicine across diverse regions, starting with Africa. He is joined by Jumi Popoola as Chief Scientific Officer and Estelle Dogbo as Chief Operating Officer, both seasoned professionals in genomics and precision medicine.

Syndicate Bio aims to leverage collaborations with governments, pharmaceutical companies, and academia to create impactful local precision medicine initiatives. “We have started Syndicate Bio to empower inclusive advancements in global genomics science,” he announced in September 2023. For now, the details of how Syndicate Bio will differentiate itself from its predecessor remain sparse, but Ene-Obong has hinted at some forthcoming developments in the months ahead.

It’s clear that Ene-Obong is eager to move beyond the shadow of 54gene’s collapse, but the legal and financial issues surrounding the company continue to linger. As creditors seek restitution and former employees grapple with the company’s turbulent final months, the future of 54gene’s once-promising biobank—and Ene-Obong’s legacy in African genomics—remains uncertain. Nonetheless, his new venture signals that his ambition to transform genomics research in Africa is far from over.

In a challenging economic landscape marked by inflation, high interest rates, and rising unemployment, South African consumers are turning to flexible payment solutions to manage their spending. Float, a South African card-linked instalment platform, recently released data revealing notable shifts in shopping trends, especially among credit card users opting for instalment-based payments.

While traditional Buy Now, Pay Later (BNPL) platforms typically cater to smaller purchases, Float’s system is designed for big-ticket items, allowing credit card holders to split their purchases into interest-free monthly instalments. This model has gained traction as consumers look for ways to manage their cash flow without taking on additional debt.

The average order value on Float’s platform—close to ZAR 10 K (~USD 560.00)—dwarfs the typical BNPL transaction size of around ZAR1 K – ZAR 1.4 K (USD 56 – USD 78) in South Africa, the company claims. This indicates that consumers are primarily using the service for larger purchases, such as electronics, appliances, and fitness equipment.

The data also reflects broader shopping behaviours: Tuesdays see the highest transaction volume, while Mondays lead in terms of total spending. Additionally, most transactions occur during work hours, with 2 PM being the peak shopping time.

While the fitness category had the single highest transaction (ZAR 178 K [~USD 10 K] on gym equipment), electronics and appliances dominate overall, making up the largest portion of retail spending. Float’s data further highlights how the instalment option encourages consumers to spend more per transaction, with orders processed via the platform averaging 134 percent larger than regular credit card purchases.

The platform’s flexibility, which allows consumers to use their existing credit card limits rather than applying for new lines of credit, has resonated with South Africans dealing with stretched budgets. Paul Masson, CFO and COO of Float, notes that the service “offers a smarter way to manage finances without the pitfalls of traditional loans or interest-bearing credit options.” This is particularly appealing at a time when households are grappling with the rising cost of living.

Interestingly, Float has seen increased spending in categories that are more productive or investment-oriented, such as business tools and equipment. According to Masson, “many Float users are entrepreneurs or artisans, using the service to invest in assets that directly impact their ability to generate income.”

As the year heads toward the festive season, with Black Friday and Christmas shopping on the horizon, instalment options are likely to become even more popular. Consumers are increasingly looking for ways to finance bigger purchases without straining their monthly budgets or incurring high interest charges.

The platform’s emergence and its influence on shopping behaviour suggest a shift in how South African consumers are managing financial pressure. It points to an emerging trend where more shoppers are seeking flexible, non-punitive ways to use their credit responsibly while coping with economic uncertainties.

Featured Image Credits: Mark O’Flynn/Unsplash

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.