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TC Weekender: Nigeria limits cash withdrawals

By Ngozi Chukwu Dec 10, 2022

Image source: Techcabal

Editor’s Note

Week 49, 2022
Read time: 5 minutes

This week, the Nigerian government takes another stab at pushing the cashless economy agenda by imposing limits of individual and corporate cash withdrawals. Will it work, or is this another ill-advised move? Let’s wait to find out. In other news, the Central Bank of Kenya reinstates charges on mobile money transactions, Chipper lays off staff, the Nigerian government is also looking to tax cryptocurrencies, and Aruwa Capital closes a record-setting $20 million fund. These and more are in this edition of the Weekender.

Happy reading!

Pamela Tetteh Editor, TechCabal.

Editor’s Picks

	Nigeria limits cash withdrawals to 100k The Central Bank of Nigeria (CBN) has announced limits to all cash withdrawals by individuals and corporate organisations at ₦100,000 ($225) and ₦500,000 ($1,124), respectively, every week. Processing costs of 5% and 10%, respectively, will be applied to any cash withdrawals above the specified limits. Learn more.
	Kenya reinstates charges on mobile money transactions The Central Bank of Kenya (CBK) eliminated the fees during the COVID-19 pandemic to encourage the usage of mobile money. The fees are back now, but they are much lower than they were before the pandemic. Learn more.
	Nigeria proposes taxing cryptocurrencies The Nigerian government announced that if its proposed Finance Bill 2022 is approved, it will start taxing digital assets in 2023. Despite its rocky relationship with cryptocurrencies, the Finance Ministry did not exempt cryptocurrencies from being taxable digital assets. Learn more.
	Hustler Fund raises data privacy concerns At least 3.5 million Kenyans have applied for loans from the $410 million Hustler Fund but the project has raised data privacy concerns. For example, when registering for a loan, the applicant has to provide their M-Pesa PIN, but isn’t given the option to withhold consent for the use of this PIN. Learn more.

	Chipper Cash lays off staff Cross-border payments company, Chipper Cash has laid off over 50 employees across multiple departments. This news comes a few weeks after it announced its acquisition of Zambian fintech company, Zoona. Learn more.

The Next Wave Show

In the 4th episode of TechCabal’s The Next Wave show, the guests talk about why Africa is becoming a leading destination for international recruiters, what this means for the local talent pipeline, the gaps that exist, and the untapped opportunities.

If you missed the broadcast on CNBC Africa, you can catch it here.

	Moove secures $30 million debt financing Weeks after abruptly letting go a handful of employees, mobility startup Moove has secured $30 million in debt funding from an Islamic bond. This is the fifth raise Moove has had this year. Learn more.
	Ex-Jumia CEO raises $8 million for new startup Kenyan social commerce startup Kapu, led by the former CEO of Jumia Kenya, Sam Chappette, announced an $8 million seed funding round. Kapu, which means “large basket,” wants to help Kenyans get more food for less. Learn more.
	Lipa Later acquires Sky.Garden Sky.Garden announced that they would no longer have to shut down because they had found a buyer. This week, the Kenyan ecommerce startup announced that it was acquired by the Buy Now, Pay Later (BNPL) company, Lipa Later. Read more.
	Orange launches digital centre in Guinea Orange has launched a digital centre for the development of digital skills and innovation in Guinea. This is its 13th digital centre in Africa and the Middle East, and it includes a coding school, a digital manufacturing workshop called a FabLab, and an Orange Fab start-up accelerator. Read more.
	Aruwa Capital closes $20 million fund Aruwa Capital, a female-founded early-stage growth equity fund, announced the successful close of its first institutional fund, exceeding its $20 million target. This makes Adesuwa Okunbo Rhodes, the 32-year-old founder, the youngest solo general partner to raise a $20 million fund in Nigeria successfully. Learn more.

Who brought the money this week?

Kenya’s social commerce company Kapu raised $8 million in seed funding. The round was led by Giant Ventures and Firstminute Capital.

Egyptian fintech company OneOrder received $3 million in seed funding. The round was led by Nclude; other participating investors included MENA early-stage VC A15 and Delivery Hero Ventures.

Synatic, a South-African data automation startup received $2.5 million in a seed funding round led by Allan Gray E-Squared Ventures and UW Ventures.

Egyptian ecommerce company SideUp raised $1.2 million in seed funding from Launch Africa Ventures, 500 Global, Riyadh Angels, Alex Angels, Al Tuwaijri Fund and Saudi angel investor Faisal AlAbdulsalam.

Nigeria’s prop-tech company VENCO raised 670k in pre-seed funding. The round was led by Zrosk Investment Management.

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What else to read this weekend?

Next Wave: Africa sobering.
Why Future Africa and TLG Capital just created a $25 million venture debt fund.
Newly-listed Nigerian company Purple wants to create a ₦100 billion digital real estate marketplace.
Here’s why SafeBoda is leaving Nigeria.
The realities of African female gig and platform workers.
Stack Overflow bans ChatGPT-generated code.
Interview with Confidence Staveley: Founder of Cybersafe Foundation.
Acumen: Over two decades of changing the way Africa and the world tackle povert