The integration of artificial intelligence (AI) into financial services is not a new phenomenon. For years, traditional AI has been used by banks and fintechs globally to enhance fraud detection, improve customer experience, and personalise services.

Now, with the rise of generative AI (GenAI), the landscape is shifting further. African financial institutions are beginning to explore how this technology can revolutionise their operations, yet many remain cautious of its potential risks.

In a recent interview with WT, Andrew Mori, co-founder and CEO of Deimos, a fast-growing African cloud engineering and DevOps consultancy, provided insights into how African banks and fintechs can both harness and safeguard against the risks of GenAI. His company, Deimos, has built its reputation by helping organisations, largely in financial services, apply technology optimally, and he sees the rise of GenAI as a critical moment for the financial sector.

However, GenAI adoption in Africa and elsewhere faces challenges such as data poisoning, reverse engineering, and deep fakes. Data poisoning can corrupt AI systems, leading to biased outcomes and increased fraud risks. In Africa, nearly one-third of online verification documents are fake or stolen.

Also, AI-generated synthetic media, are becoming more sophisticated and are being used by criminals to defraud businesses. In a recent Hong Kong case, an employee was tricked into transferring USD 26 M after deepfakes of colleagues, including the CFO, were used in a video call. Recently, a notable crypto firm, Luno, was put on high alert after a deepfake scam targeted an employee, highlighting the rising threat of AI-powered fraud and the need to tread with caution.

The Appeal of GenAI in Financial Services

GenAI transforms fintech by using data to personalise customer experiences and automate tasks. The Nigeria Fintech Marketing Outlook 2024 reveals 29% of fintechs used GenAI for content creation and 14% for workflow automation in 2023. In addition, a recent Gartner report forecasts that over 80% of banks will adopt GenAI by 2026, a significant rise from 5% today, while McKinsey notes its potential to revolutionise banking’s risk and compliance functions.

One of the most exciting applications of GenAI is its ability to significantly improve customer experience. Mori explains that Deimos has already begun implementing GenAI internally to streamline workflows and provide better support for developers. For banks, a similar approach could dramatically improve client services.

“Instead of Googling how to perform an EFT for Kuda Bank or any of the wonderful banks in Nigeria, you can query an AI assistant directly, and they can explain it immediately without asking support,” Mori noted. This kind of instant, AI-driven assistance could transform how customers interact with their financial institutions, making services more accessible and reducing the burden on human customer support teams.

Furthermore, AI assistants could perform actions directly on behalf of users, simplifying complex processes. “For a certain request, it can retrieve information, present creative solutions, and you should be able to ask this assistant to execute something for you,” Mori told WT. Such capabilities would be a game-changer for fintechs looking to provide seamless, intuitive user experiences.

Traditional AI and GenAI: Complementary Forces

Although GenAI holds great promise, it is important to remember that traditional AI is already deeply entrenched in financial systems. Technologies like fraud detection algorithms, credit risk scoring, and personalised recommendations have become standard tools for many African banks and fintechs.

Mori points out that “traditional AI is still very good at things like recommending stuff, personalisation, guessing things… there’s some very strong AI that’s now considered traditional, and that’s very good at fraud detection, for example.” Rather than replacing these systems, GenAI is poised to complement them, Mori figures, by offering more dynamic, creative capabilities, while traditional AI continues to handle structured, data-driven tasks with precision.

This hybrid model—where traditional AI takes care of routine tasks and GenAI enhances user interaction—could provide fintechs with a more robust AI ecosystem, allowing them to address both operational efficiency and customer satisfaction.

Barriers to Adoption

Despite its potential, the adoption of GenAI in African financial services is still in its infancy. According to Mori, one of the main barriers is the complexity of securely implementing GenAI at scale. “The benefit we will bring is deploying GenAI securely at scale,” he says. Security, scalability, and cost control are critical concerns for banks and fintechs considering the adoption of this technology.

There is also an underlying challenge in terms of human capital. Mori worries that the rapid rise of AI, particularly GenAI, could displace junior talent. “I feel like the junior engineer is drying up as a role because I would rather pay 50 cents a day to use an AI assistant… that gives me the same code, even better code than a junior,” he says. The fear that GenAI could reduce entry-level job opportunities in tech is real, particularly in Africa, where youth unemployment is a pressing issue.

Mitigating the Risks

To successfully integrate GenAI while managing its risks, financial institutions must take a thoughtful, incremental approach, Mori advises. One way is to focus initially on low-risk, high-reward use cases such as customer service automation and internal workflow optimisation, areas where Deimos has already seen early success.

Mori also stresses the importance of using AI securely, particularly in sectors as sensitive as financial services. “How to do this securely at scale… that’s probably where the most benefit from our company will come from,” he notes.

Ensuring that AI systems comply with regulatory frameworks, especially around data privacy and financial security, will be essential. The Deimos boss also recommends banks and fintechs invest in ongoing AI audits and monitoring to identify and rectify vulnerabilities before they lead to significant issues.

In addition, Mori emphasises that African fintechs and banks must upskill their workforce to coexist with AI systems. As automation becomes more pervasive, companies must provide training and development opportunities that equip employees with new skills in AI management, data analysis, and strategic decision-making, he explains. By doing so, they can avoid the displacement of workers while benefiting from the enhanced productivity that AI promises.

The Role of African Fintech in Leading the Charge

Africa’s fintech industry has a history of embracing innovation to solve the continent’s unique challenges, from mobile money to crypto exchanges. Chipper Cash, one of Africa’s leading fintech platforms, has deepened the use of technology to enhance cross-border payments and identity verification through its Chipper ID product. With nearly 5 million users, Chipper Cash demonstrates how fintechs can thrive by leveraging cutting-edge technology.

NALA, another thriving African fintech, has developed its own B2B payment platform, Rafiki, to ensure payment reliability, a critical issue in a region where payment infrastructure is often unreliable. These examples show that African fintechs are no strangers to technological innovation, and their success with traditional AI bodes well for their ability to integrate GenAI in meaningful, secure, and scalable ways.

The adoption of GenAI in African banks and fintechs offers immense possibilities, from improving customer experiences to streamlining backend operations. However, it is essential to move cautiously, focusing on secure, scalable deployments and the upskilling of the workforce. With the right strategies in place, GenAI could become an invaluable tool in the continued growth and transformation of Africa’s financial services sector.

As Mori succinctly puts it, “It’s very easy to implement technology in the wrong way… but we really want to help companies use technology in the right way.” African banks and fintechs have the opportunity to lead the way in harnessing the power of GenAI, especially if they do so thoughtfully and responsibly.

A recent survey across Africa by security awareness platform KnowBe4 reveals that 84% of respondents rely on social media as their primary news source, with 80% favouring Facebook; This heavy dependence on social platforms for information is concerning, particularly as disinformation continues to rise.

With 19 African countries set to hold elections in 2024 and numerous political campaigns underway, worries about misinformation (unintentionally shared false information) and disinformation (deliberately spread fake news) are mounting. The Africa Centre for Strategic Studies reports that disinformation campaigns in Africa have quadrupled since 2022, often backed by foreign states like Russia and China, leading to social instability.

In response to these issues, KnowBe4 conducted a survey in June 2024 on political disinformation and misinformation across five African countries: Botswana, Kenya, Mauritius, Nigeria, and South Africa.

The survey, which included 500 respondents, found that the vast majority of users (84%) prefer social media for news consumption over traditional channels like radio, TV, and news websites. Anna Collard, SVP Content Strategy and Evangelist at KnowBe4 Africa, notes, “80% of respondents are consuming news on Facebook and over 50% use TikTok. This is alarming as neither of these channels is very reliable in terms of news.”

The ability to discern fake news may be exaggerated

Another concerning finding is that 82% of respondents feel confident in their ability to distinguish between true and false information online, despite a generally low level of formal education on the topic. Collard comments, “While most respondents reported being able to tell the difference between real and fake news, I doubt this is the case. Other research has shown that most people overestimate their ability to detect deepfakes, and ironically, more people trust AI-generated images than actual photographs.”

The survey also revealed that disinformation is becoming a significant concern for many. 80% of respondents expressed high levels of worry about the negative impact of fake news and its potential to cause social division. “In Kenya, many respondents said they had seen firsthand how disinformation can lead to tribal conflict,” Collard notes.

She further explains that social media influencers using inorganic hashtags fuelled similar political discord during Nigeria’s election last year. “Social media’s rapid spread of false information and the increasing accessibility of AI tools allow for the quick and cheap creation of sophisticated disinformation campaigns.”

Collard adds, “As we saw when entities disputed the outcome of South Africa’s 2024 election, there are individuals motivated to disrupt democracies and act maliciously to create chaos because it serves their own agenda.” Another historic example is the #whiteminoritycapital disinformation campaign run by the British PR company Bell Pottinger in 2017 to obfuscate state capture by former SA president Jacob Zuma.

Need for more training and tighter controls

The survey underscores the need for increased education and awareness surrounding misinformation and disinformation. A significant 58% of respondents report having received no training on the topic, while a concerning 32% admit to simply ignoring fake news, highlighting the need for a more proactive and engaged response.

“We need a multi-faceted strategy to combat disinformation,” says Collard. This approach should encompass enhanced awareness and critical thinking among users; coordinated government action to prevent the spread of fake news (including stronger legislation), and increased vigilance from social media platforms in detecting and removing disinformation campaigns.

“Fake news is an ongoing challenge that requires continuous attention,” Collard concludes. “To fight it effectively, we need a combination of new technology, better ways to prevent it, and most importantly, teaching people to consume media while thinking critically, particularly if it is emotionally laden or potentially polarising content. As the digital landscape develops, so too must our strategies for maintaining the integrity of information.”

Featured Image Credits: News Central

Transsion, the Chinese smartphone manufacturer that dominates Africa’s mobile market, finds itself in turbulent waters. Known as the “King of Africa” for its near 50% market share on the continent, Transsion is now grappling with a combination of legal battles, increased competition from fellow Chinese brands, and the recent detention of its chief financial officer, Xiao Yonghui.

The Shenzhen-based company announced that Xiao was detained by authorities in Dandong, northeastern China, as part of an ongoing investigation. Transsion has not provided details on the charges but has assured investors that the probe will not significantly impact daily operations.

“The company is not aware of the progress or conclusion of the investigation,” it stated in a filing with the Shanghai Stock Exchange last week, adding that its comprehensive governance structure should help it weather this storm.

However, the market reacted to the uncertainty, with Transsion’s shares falling nearly 5%, per the Financial Times, following the news of Xiao’s detention. The arrest comes at a challenging time for the company, as it fends off intensifying competition and patent lawsuits.

Challenges in Africa

Transsion, which built its empire selling affordable Tecno, Infinix, and Itel phones, has seen its grip on the African market start to loosen. The company’s market share in Africa dropped to 42% in the second quarter of 2024, down from 46% in the same period of 2023, according to data from Counterpoint Research.

This slip comes as rival Chinese brands Xiaomi, Oppo, Vivo, and Honor ramp up their efforts to capture market share in the region. These brands, long struggling to break into the premium smartphone segment globally, are now aggressively pursuing the midrange sector in Africa, historically Transsion’s stronghold.

Transsion’s strategy in Africa has relied on low-cost phones tailored to the local market. Priced between USD 110.00 and USD 120.00, its phones offer long battery life, greaseproof screens, and cameras designed for darker skin tones. These features helped the company grow in markets like Nigeria, Kenya, and Ethiopia. However, with Chinese competitors now offering similarly priced models, Transsion’s dominance is being challenged.

Legal Headwinds

Adding to its woes, Transsion is also facing potential financial strain from patent infringement lawsuits filed by major technology firms.

Notable tech firms, such as Qualcomm, have sued Transsion over unlicensed patent use. Philips is pursuing an intellectual property case in India, while Nokia is negotiating licensing agreements with the company.

While details on the suits remain limited, the legal pressure could result in expensive settlements or licensing fees, further eroding profitability. This comes at a critical juncture as the company expands beyond Africa.

Global Expansion as a Lifeline

Despite setbacks in Africa, Transsion’s global ambitions are gaining traction. The company has made significant inroads in emerging markets across Latin America, South Asia, and Eastern Europe. In the first half of 2024, Transsion’s shipments in Latin America skyrocketed by 276%, raising its market share from 2.2% to 7%. In Eastern Europe, Transsion’s market share hit nearly 17%, with Russia accounting for 81% of its sales in the region.

Transsion sold 94.9 million smartphones globally in 2023, making it the world’s fifth-largest smartphone vendor with an 8.3% market share. It is projected to ship over 100 million units by the end of 2024, thanks to its expansion in regions where low-cost devices remain in high demand.

The company’s ability to penetrate these fast-growing markets has allowed it to offset some of the pressure from its shrinking share in Africa. Still, as it faces legal challenges and new competitors, the question remains whether its global push will be enough to sustain its momentum.

Featured Image Credits: Chen Jian

TymeBank, a well-known South African digital banking platform, continues to turn heads with its rapid growth and international expansion, bolstered by significant backing from African Rainbow Capital (ARC).

In a strategic move, ARC, famously helmed by billionaire Patrice Motsepe, recently injected an additional ZAR 169 M (~USD 9.5 M) into TymeBank, reaffirming its confidence in the digital bank’s long-term prospects.

This investment comes at a crucial time for TymeBank, which achieved profitability in December 2023 after a period of sustained growth. Now, ARC’s support not only strengthens the bank’s financial foundation but also signals investor confidence in its ambitious plans to penetrate global markets.

Strong Local Footing

In South Africa, TymeBank has rapidly established itself as a key player in the digital banking space, boasting a customer base that has swelled to over 9.5 million. The bank has leveraged its extensive retail partnerships with Pick n Pay, Boxer, and The Foschini Group (TFG) to create the largest cash-in and cash-out network in the country.

Financial metrics also reflect this success. TymeBank’s deposits surged 59% to ZAR 6.5 B (~USD 368.5 M), per the latest results of ARC, a majority shareholder, while merchant credit advances rose to ZAR 1.8 B (~USD 102 M). These figures have been bolstered by its lean, tech-driven operational model.

According to ARC’s year-end report, TymeBank’s “net operating income tripled year-on-year, while costs increased by only 10%,” highlighting the scalability of its technology infrastructure.

Global Ambitions: The Philippines and Beyond

While TymeBank has firmly rooted itself in South Africa, its ambitions extend far beyond. Through its parent company, Singapore-based Tyme Global, the bank is making strides in Asia. Tyme Global launched GOtyme in the Philippines in November 2022, and the new venture has rapidly gained traction, amassing 3.6 million customers in just 18 months.

The GOtyme model is similar to TymeBank’s, emphasising digital onboarding, low fees, and convenient cash-in and cash-out options. This success underscores Tyme Global’s ability to replicate TymeBank’s core model in new markets, proving its scalability and adaptability to different economic conditions.

Further affirming its foothold in the Philippines, GOtyme recently acquired Savii, a payroll lender, to deepen its offering and leverage the growing deposit base in the country. This move aligns with TymeBank’s strategy of expanding its services beyond traditional banking, offering products that cater to both retail consumers and businesses.

Vietnam and Indonesia in the Pipeline

Tyme Global isn’t stopping with the Philippines. It is now piloting a merchant cash advance product in Vietnam, the third market in its expansion plan. Additionally, plans are underway for a market entry into Indonesia by the end of 2024. These developments signal a calculated push into Southeast Asia, where digital banking services are gaining momentum.

Growth in these international markets appears to be more robust than what has been observed in South Africa. ARC noted that “the model’s growth trajectory is strong, with rates exceeding those of South Africa, and deposits growing faster than anticipated.” With these emerging markets becoming hotbeds for digital financial services, Tyme Global’s expansion could serve as a major revenue driver for the broader Tyme group.

Investors See Long-Term Potential

ARC’s decision to invest additional capital into TymeBank is a clear vote of confidence in its growth trajectory. This follows its earlier investment in Retail Capital, a South African company integrated into both TymeBank and GOtyme after a ZAR 1.5 B (~USD 85 M) acquisition in December 2022. Retail Capital has bolstered TymeBank’s merchant credit offering, contributing to its growing loan book.

ARC’s optimism appears to be well-founded. In its financial report, the firm projected fair value gains of ZAR 1,181 million from TymeBank’s performance, reflecting not just its past success but also its anticipated future earnings.

TymeBank’s strategic focus on operational efficiency—demonstrated by the tripling of net operating income despite a modest rise in costs—has laid the groundwork for sustained profitability. And with Tyme Global expected to break even by Q4 2025, the international ventures offer significant upside for investors.

A Balanced Approach to Growth

TymeBank’s story is one of balancing aggressive expansion with operational discipline. By keeping a tight lid on costs and leveraging scalable technology, the bank has built a sustainable model that it seeks to replicate in diverse markets.

While the growth figures are promising, challenges remain, particularly as Tyme Global enters new territories like Vietnam and Indonesia. Competition in Southeast Asia’s digital banking sector is fierce, and regulatory hurdles can be significant. Yet, if its success in the Philippines is any indicator, Tyme Global is well-positioned to navigate these challenges.

For investors, TymeBank represents a unique proposition. It has successfully disrupted the traditional banking model in South Africa and is now taking that formula global. As ARC’s continued investments suggest, the bank’s ability to scale and innovate has the potential to deliver long-term value both in Africa and beyond.

Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, has sparked heated debate in the Nigerian tech ecosystem with his recent push to integrate artificial intelligence (AI) into the country’s development strategy.

Tijani, a key figure in Nigeria’s burgeoning tech scene, recently unveiled a NGN 100 M AI fund (~USD 61 K), backed by Google, as part of his broader agenda to harness AI for solving Nigeria’s local challenges. However, many in the tech community feel that the initiative falls short of what is necessary to drive meaningful AI innovation in the country and ignores more pressing matters.

A Mixed Reaction

The announcement of the AI fund at a recent conference co-organised by the U.S. State Department was meant to be a significant step forward. Ten startups would receive NGN 10 M each (around USD 6 K) in equity-free funding. But the reaction from Nigeria’s tech community has been swift and critical.

Alex Onyia, CEO of edtech startup Educare, expressed scepticism, commenting on X that “NGN 100 M cannot even buy an Nvidia chip used for AI development. This is mere USD 61 K in today’s naira, which is not up to the annual salary of a proper AI engineer.” His comments echo a broader sentiment that the funding amount is woefully inadequate for the high costs associated with AI research and development.

Others in the tech space have highlighted the disconnect between attempting to lump AI on top of glaring infrastructural deficits, as well as the disparity between this initiative and the more substantial support Google offers elsewhere. 

An Ambitious AI Vision with Significant Challenges

Tijani, known for his role in shaping Nigeria’s tech ecosystem via the prominent CcHub incubator, has ambitious plans for the country’s digital economy. His strategy includes publishing a national AI strategy and a program to train three million tech workers, all in a bid to position Nigeria as a key player in the global tech landscape. But while the minister’s vision is forward-looking, the realities of AI development pose significant hurdles.

The high cost of AI infrastructure is a recurring theme in the criticisms of the fund. Training AI models requires advanced hardware, including graphics processing units (GPUs) from companies like Nvidia, which can cost over USD 30 K per unit.

Furthermore, developing AI systems requires vast amounts of data and computational power. For instance, OpenAI’s CEO Sam Altman revealed that training GPT-4 cost over USD 100 M—dwarfing the relatively modest resources allocated by the Nigerian government.

A report from Stanford University’s Artificial Intelligence Index 2024 also underscores the financial barriers to AI innovation. The report notes that the cost of training AI models is rising, often running into millions of dollars. This reality limits the participation of smaller players and non-industry actors, particularly in countries with limited resources, like Nigeria.

The Broader AI Context in Africa

Despite the challenges, interest in AI is growing across Africa. For one, the Nigerian government is supporting a Lagos-based startup working on a large language model to boost local language representation in global AI systems.

Chinasa T. Okolo, a Brookings Institution fellow involved in both Nigeria’s AI strategy and the African Union’s, has observed a “very high level” increase in AI interest across the continent. According to Okolo, who spoke to Semafor Africa, “There’s a very big interest from outside funders, so more African governments are starting the process of developing national strategies which will hopefully evolve to regulation in a couple of years.”

Yet, Africa’s AI preparedness remains low. Nigeria’s score on the International Monetary Fund’s AI Preparedness Index stands at 34%, slightly above the sub-Saharan African average but far behind countries like South Africa, which scores 50%. The U.S., Canada, China, and most of Europe, in comparison, score above 65%. Also, Africa’s AI startups appear to be missing out on the AI gold rush with less than 1% of funding raised globally.

Nevertheless, optimism about AI’s potential in Nigeria comes from past successes in the country’s digital transformation where technological leaps have enabled the country to leapfrog shortcomings and achieve wins notably in financial services most recently.

A Disconnect Between Ambition and Reality?

For all the enthusiasm, the fundamental question remains: can a NGN 100 M AI fund make a dent in Nigeria’s AI landscape? While the initiative aims to seed AI-driven innovation, critics argue that Nigeria’s more pressing concerns—such as poverty, illiteracy, and chronic electricity shortages—may need to be addressed before AI can take root.

On top of that, some industry players believe that Nigeria is starting too late to catch up with the global AI race. Gideon Ajose, a Nigerian techie, remarked, “Honestly, I applaud your efforts but this will not even move a needle in the AI needs of Nigeria. And it’s hurtful because if you weren’t in government and you were practising privately, you’d never announce this.”

A Contentious Path Forward

Tijani’s AI push reflects the broader tension between ambition and reality in Nigeria’s digital economy. While the minister has laid out an impressive vision to integrate AI into the country’s future, the criticism surrounding the fund suggests that much more is needed—both in terms of financial commitment and infrastructure development—to achieve meaningful progress.

The stakes are high, but Nigeria’s tech community seems divided on whether this initiative will be the breakthrough the country needs or just another well-intentioned but underfunded effort. For now, the spotlight is on Bosun Tijani to deliver on his AI agenda amid growing scepticism.

Featured Image Credits: US Mission Nigeria

Gozem, the Togolese startup known for its super app approach to transportation and logistics services in Francophone West Africa, is taking on the mobile money sector. This expansion positions the company at the heart of the booming fintech market across the region, even as Africa’s broader super app landscape delivers mixed results.

With the impending launch of Gozem Money in Q4 2024, the company aims to integrate financial services into its growing portfolio of offerings. Initially focused on ride-hailing, food delivery, and courier services, Gozem is now set to provide digital financial transactions, including money transfers, bill payments, and online purchases, through its app.

This strategic move follows Gozem’s acquisition of Beninese fintech Moneex in November 2023, which accelerated its financial services ambitions.

The acquisition of Moneex, a fintech specialising in multi-currency accounts, represents a crucial step for Gozem. By incorporating Moneex’s technology and expertise, Gozem not only ensures a smoother entry into mobile money but also secures a foothold in the competitive fintech market in Togo and Benin. Last year, Gozem’s CEO Raphael Dana explained the rationale behind the acquisition, stating, “We wanted a country that was not too big, where we could learn without intense competition like in Nigeria.”

This move reflects Gozem’s ambition to mirror the success of Chinese super apps like WeChat and AliPay. With 160,000 unique customers across four countries—Togo, Benin, Cameroon, and Gabon—Gozem is betting on financial services to diversify and strengthen its platform. As part of its strategy, Gozem Money will launch in Togo first, where mobile financial services are still developing but show significant growth potential.

Gozem’s Financial Expansion Amid Growing Competition

Gozem’s entry into mobile money comes at a time when the sector is seeing rapid growth in Africa. Mobile money services across the continent are projected to grow by 16-20% annually through 2030, driven by increasing financial inclusion.

However, the company is entering a competitive space, with Togo’s market already dominated by TMoney and Flooz which control virtually the entire market. Yet, despite these players, the potential for Gozem remains substantial. Togo’s mobile money penetration rate stands at 42.4%, significantly lower than regional leaders like Kenya and Benin, indicating room for further growth.

Partnerships with financial institutions will be key to Gozem’s success. Through its collaboration with NSIA Banque, Gozem Money will allow users to conduct transactions via the mobile app. The company also hopes to leverage its transportation network to promote widespread adoption of its financial services, an approach that could set it apart in a crowded marketplace.

By layering mobile financial services on top of its ride-hailing and delivery offerings, Gozem is drawing users deeper into its ecosystem. Dana previously noted the company’s plan to offer credit services that would enable customers to buy cars and further engage with the platform. This strategy, if executed well, could help Gozem replicate its early transportation success in the mobile money space.

Super App Aspirations in Africa

While Gozem pushes forward with its super app ambitions, Africa’s broader super app landscape tells a cautionary tale. The continent has witnessed varying results in the past few years. Notably, OPay, backed by Chinese investors, initially aimed to become Nigeria’s go-to super app. However, regulatory crackdowns on commercial motorcycles in Lagos forced OPay to pivot away from its super app model. Today, OPay focuses primarily on money transfers, having scaled back its broader service ambitions.

Gozem appears undeterred by these challenges. It continues to offer motorcycle-based transportation services, particularly in cities like Lomé and Cotonou, where motorcycles remain a key mode of travel. Unlike in Lagos, where regulators cited safety concerns in banning motorcycle taxis, Gozem has avoided similar restrictions, with Dana noting, “Directives on wearing helmets are enforced and diligently followed in the countries Gozem operates in.”

The company’s decision to stay the course on its super app vision in Francophone West Africa reflects its confidence in the region’s unique market dynamics. Currency stability within the CFA currency region also provides a more predictable environment compared to markets like Nigeria.

Gozem’s acquisition of Moneex and its planned rollout of financial services align with a broader strategy to expand beyond transportation and grow its footprint in underserved markets. “We started in Togo and wanted to be in the Francophone region because currency stability was an attraction,” Dana told Semafor Africa last year. With Togo serving as the launchpad, Gozem aims to eventually expand its mobile money service to Benin, Gabon, and Cameroon, where it already operates its transportation platform.

Gozem’s Long-Term Vision

For Gozem, mobile money represents more than just an added feature—it’s a critical component of its broader goal to become the go-to platform for a range of services in West Africa. As 57% of the continent’s population remains unbanked, the potential for digital financial inclusion is immense. By bringing financial services to its existing user base and beyond, Gozem hopes to position itself as a key player in the region’s fintech ecosystem.

Togo’s growing mobile money market, which reached a transaction value of FCFA 917 B FCFA (USD 1.54 B) in Q1 2024, presents a lucrative opportunity for Gozem. Its long-term vision is to become an integrated platform that meets the digital needs of millions of underserved people across Francophone West Africa.

While challenges remain—competition, regulatory hurdles, and user adoption—Gozem’s bold step into mobile money could help solidify its place in the region’s evolving digital economy. As the fintech landscape heats up, all eyes will be on Gozem’s next moves, which may well shape the future of super apps in Africa.

Chinese tech giant, Huawei has made a bold move on the Nigerian banking sector, securing a multi-million dollar cloud deal with United Bank for Africa (UBA), worth approximately USD 3 M.

This agreement, which provides UBA with 200 petabytes of storage and cloud solutions, marks a significant shift as Huawei positions itself as a strong competitor to IBM, a longtime leader in banking technology in Nigeria.

For years, Nigerian banks have heavily relied on IBM for their storage needs, with many Chief Information Officers (CIOs) maintaining close ties to the company to safeguard their positions.

However, growing economic pressures, rising costs, and changes in IBM’s pricing model have made these traditional solutions less attractive, opening the door for competitors like Huawei.

In this new deal, UBA—a bank with over 30 million customers across Africa—chose Huawei for its more cost-effective and scalable storage solutions. The decision comes as UBA’s existing storage infrastructure reached its capacity, creating an urgent need for expansion.

Traditionally, the bank relied on IBM and VMware for storage and virtualization technologies, but VMware’s shift to a subscription model, which nearly tripled its licensing costs after its acquisition by Broadcom, prompted UBA and other Nigerian banks to reconsider their technology vendors.

Huawei has taken advantage of this market shift, offering highly competitive pricing, along with innovative solutions that appeal to banks looking to reduce operational costs.

The Chinese tech giant also throws in a package that includes a unique one-year free proof of concept, making it even more attractive for banks in need of cost-effective storage solutions without high upfront investments.

This move signals Huawei’s intent to challenge IBM’s dominance and establish itself as a major player in the Nigerian banking technology landscape.

But, while Huawei’s aggressive pricing and robust solutions have attracted several Nigerian banks, including Zenith Bank, Fidelity, Opay and First Bank, many banks are hesitant to fully transition to Huawei’s solutions due to data security concerns and the political implications of using Chinese technology for sensitive financial operations.

Some have opted to take a hybrid approach, keeping IBM’s technology for critical workloads while exploring Huawei’s more affordable options for other tasks.

As Nigerian banks continue to modernize their operations, the balance between cost, security, and technological advancement will be required. Huawei’s ability to offer cutting-edge technology at competitive prices, coupled with its willingness to offer risk-free trials is proving to be a viable choice, positioning it well to take on the established players like IBM in the market.

Meanwhile, the company is reportedly in talks with at least one other major Nigerian bank to provide its cloud and storage services.

In a surprising twist during the sentencing hearing for Tyrese Haspil, the man convicted of brutally murdering tech entrepreneur Fahim Saleh, the convicted killer defied his own defense strategy. More than two hours into the Manhattan Supreme Court proceeding, Haspil stunned the courtroom by disagreeing with his lawyer’s plea for a reduced sentence, stating, “Unlike my counsel, I don’t think anything less than life without parole would be appropriate.”

Haspil, now 25, had been found guilty of first-degree murder and other charges, including grand larceny and concealment of a human corpse, for the July 2020 killing of Saleh. Haspil had worked as Saleh’s personal assistant before their relationship descended into betrayal, theft, and ultimately murder. He was sentenced Tuesday to 40 years to life in prison.

The Betrayal and the Crime

Saleh, a visionary tech founder, established Gokada, a prominent Nigerian motorcycle ride-hailing company, and was well-known for his innovative contributions to the tech scene. Beyond Gokada, Saleh launched Adventure Capital, a venture fund that supported tech entrepreneurs in developing countries.

The relationship between Saleh and Haspil began in 2018 when the supposed young coding prodigy was hired to manage the entrepreneur’s finances. However, by early 2020, Saleh discovered Haspil had embezzled USD 400 K from him. Instead of turning him over to authorities, Saleh offered Haspil an opportunity to repay the stolen funds, hoping to give him a second chance.

At a June hearing, Haspil admitted he padded his resume to work for Saleh after being fired from a Long Island restaurant for embezzling USD 20 K. He said he needed the money to support his high-maintenance French girlfriend and her lavish lifestyle.

Saleh’s generosity was ultimately met with further betrayal. Unbeknownst to him, Haspil continued to siphon money using a fake PayPal account and devised a plan to kill Saleh before the full extent of his embezzlement could be uncovered.

On July 13, 2020, Haspil, wearing a suit and mask, followed Saleh into his Manhattan apartment, incapacitated him with a Taser, and then fatally stabbed him in the neck and torso. The next day, Haspil returned to dismember Saleh’s body with an electric saw, only to be interrupted when the saw’s battery died and he had to step out to purchase a charger. During his absence, Saleh’s cousin entered the apartment and discovered the gruesome crime scene.

Trial and Conviction

The trial that concluded in June 2024 revealed more details of Haspil’s deception and the cold, calculated nature of his crime. Prosecutors painted a picture of a young man motivated by greed and fear, meticulously researching ways to cover up the murder.

Emails and testimony demonstrated the depth of Haspil’s betrayal. After admitting to the theft, Haspil agreed to repay Saleh, who trusted that his former assistant would make amends. Instead, Haspil plotted the murder while continuing to embezzle. He created a fake PayPal account under the name “Nethertek Switzerland,” further draining funds from Saleh’s accounts.

The defense, led by attorney Sam Roberts, tried to highlight mitigating factors, citing Haspil’s troubled upbringing and trauma from being raised by his grandmother and enduring abuse in foster care. Roberts argued that Haspil, just 19 at the time of the embezzlement, was still maturing. “We fully believe that Tyrese Haspil is not solely and only the worst thing that he’s done in his life,” Roberts stated during the trial.

However, the jury found Haspil guilty of first-degree murder, rejecting the defense’s arguments for leniency. Haspil was also convicted of grand larceny and burglary for his financial crimes.

Sentencing and the Unusual Turn of Events

During the sentencing hearing, Roberts once again sought a lighter punishment, requesting that the court avoid a de facto life sentence. However, in a shocking moment, Haspil contradicted his attorney’s efforts, signalling his acceptance of the gravity of his crime.

Manhattan Supreme Court Justice April Newbauer, in her sentencing, emphasised that greed had driven the young man to commit the murder. “One person had it, another took it and wanted to keep taking it without consequences, at all costs. This is the very essence of greed,” she said.

In her victim impact statement, Saleh’s sister, Rifayat, expressed the devastation that Haspil’s betrayal had caused. “You’re a con man, and you’re a murderer. I have no sympathy for you,” she told the court. Saleh’s father, Ahmed, described the murder as “sickening,” adding, “He should spend the rest of his years in prison where he belongs.”

District Attorney Alvin Bragg also weighed in, noting Saleh’s generosity and the senselessness of the crime. “Even after the defendant stole from him to fund a lavish lifestyle, Mr. Saleh still gave him a second chance,” Bragg said. “This was a kind, generous and empathetic person who positively impacted the world.”

The Legacy of Fahim Saleh

The murder of Fahim Saleh not only robbed the tech world of an innovator but also left a lasting wound in the hearts of those who knew him.

Saleh’s entrepreneurial spirit and philanthropic efforts made a significant impact in Nigeria and beyond. Gokada, once a thriving bike-hailing service in Lagos, represented Saleh’s commitment to solving practical problems through technology. His work through Adventure Capital aimed to empower other tech founders in developing countries, and his legacy as a mentor and visionary lives on.

But the shocking nature of his death continues to overshadow his achievements. Haspil’s conviction and sentencing mark the end of a tragic saga of betrayal and greed, a tale that serves as a painful reminder of the dangers of misplaced trust.

Haspil will serve 40 years to life in prison for the brutal murder of Saleh. The sentencing brings a degree of closure to Saleh’s family and the tech community, but the loss of such a promising and compassionate entrepreneur leaves a void that cannot be filled.

Takealot, Naspers’ e-commerce giant in South Africa, has sold its online fashion retailer Superbalist to a consortium of South African retail and private equity investors led by Blank Canvas Capital.

The sale marks an exit from fashion for the retail giant as it focuses on its core operations—Takealot.com, its e-commerce platform, and Mr D, its popular food delivery service.

Reports first surfaced in March that Takealot was considering offloading Superbalist in response to mounting competitive pressures in the South African e-commerce landscape.

The entry of global players like Amazon and the aggressive expansion of low-cost Chinese retailers such as Shein, Wish, and newcomer Temu have significantly crowded the market posing a more immediate threat to its business model.

These budget-friendly competitors have not only intensified the competition but have also exploited tax loopholes to import clothing at reduced duties, undercutting local retailers like Superbalist.

Takealot confirmed the sale on Monday, stating that this strategic move will allow the company to concentrate on expanding its main businesses. “We extend our best wishes to the Superbalist team as they embark on this new chapter in their journey,” the company said while reassuring customers that Superbalist’s services “will continue without interruption during the transition.”

To ensure a smooth handover, Takealot says it will maintain its support through a multi-year service agreement, providing warehousing and logistics services to Superbalist.

The decision to sell Superbalist also comes against the backdrop of financial challenges driven by the highly competitive landscape.

Despite a booming online retail market in South Africa, which reached a turnover of ZAR 71 B (USD 3.97 B) in 2023, Takealot has struggled with losses. The online retailer had reported a trading loss of ZAR 252 M (USD 14 M) for the fiscal year ending on March 31, 2024, primarily driven by Superbalist.

While Takealot.com and Mr D reported profits, Superbalist’s performance has lagged, failing to meet post-COVID growth expectations.

Superbalist’s journey began in 2010 as Citymob, a platform that quickly gained popularity for its exclusive offerings and curated products. In 2013, it pivoted to focus on fashion e-commerce, rebranding as Superbalist and eventually becoming South Africa’s largest online fashion retailer. Takealot acquired Superbalist in 2014 as part of a ZAR 1.8 B (USD 100 M) investment from Naspers, aiming to capture the millennial market, which was considered the most powerful demographic in online retail.

However, the South African retail landscape has evolved, and Superbalist has faced significant challenges in adapting to the changing environment. Last year, the company underwent a Section-189 process to restructure its operations, aiming to better align with the current economic conditions. Recent developments underscore the ineffectiveness of this strategy.

For Superbalist, the acquisition by Blank Canvas Capital and its partners offers a chance for renewed focus and growth. With fresh backing, the retailer could be better positioned to navigate the challenges of an increasingly competitive e-commerce landscape in South Africa. Meanwhile, Takealot’s decision to concentrate on its core businesses reflects a strategic pivot, as it prepares to face the evolving dynamics of the market.

Superbalist’s journey under new ownership will be one to watch as it seeks to carve out its place in South Africa’s rapidly changing e-commerce market.

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

The Final Judgment

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

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

The Unraveling of Tingo Group

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

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

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

The Hindenburg Report and Its Aftermath

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

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

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

The Sheffield United Debacle

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

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