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Good morning ☀️
Have you see the new iPhones? They come in delicious candy tones.
There is also a new Apple Watch, the Series 9, and it is faster and carbon-neutral! Also after 11 years, Apple has ditched the Lightning plug for a USB-C cable just as the EU has been asking it to do to reduce e-waste🌍.
In today’s edition
- Sendy’s firesale ignited by $1million monthly burn rate
- Nigeria restricts banks from utilising FX gains
- Kenya to implement digital ID program
- President Ruto plans to reduce corporate tax
- The World Wide Web3
- Event: Inside Identity
- Opportunities
Fintech
Sendy’s firesale ignited by $1million monthly burn rate
Sendy delivered, but at what cost?
The Kenyan logistics startup which shut down operations last month, and is now seeking a buyer, was reportedly burning through a whopping $1 million every month.
A little back story: According to sources familiar with the comapny, the business took a nosedive when costs rose due to factors like iterative fuel price hikes from 2022 and the August 2022 Kenyan elections that had many people apprehensive. The sources explained that as a result, many manufacturers scaled down production, which meant fewer deliveries for Sendy. But they still had to cough up money for expensive fuel. As Sendy continued making deliveries at a loss, it was banking on a market correction and order volumes to return to normal. However, the fundraising environment worsened, forcing the company to lay off staff to extend its runway.
There’s more. Sources also say that Sendy has undisclosed financial obligations that’s made it tricky for them to find a buyer. These obligations, which may have to be absorbed by the buyer, are a crucial reason why a sale has been complicated.
Sendy has two main products; Sendy Transport and Sendy Fulfillment, but it seems what potential buyers are really after is Sendy’s nifty technology. According to a source, they’ve got top-notch software for booking and tracking transport vehicles.
Zoom out: Wasoko and Sabi are among the companies rumoured to be interested in buying Sendy, but they have declined to comment regarding sendy at this time. In August, Sendy’s CEO, Mesh Alloys, initially said a deal would be closed in two weeks, but it’s all gone quiet on that front.
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Banking
Nigeria restricts banks from utilising FX gains
Nigeria’s apex bank has restricted Deposit Money Banks (DMBs) from using gains gotten from foreign exchange (FX) revaluation for dividends and operational expenditures.
Why? This move was implemented so as to “cushion any future movements in FX rates”, the CBN said in its directive dated September 11, 2023.
What is forex revaluation? Forex revaluation gains occur when the value of a bank’s assets and liabilities, denominated in foreign currency, increases due to fluctuations in the exchange rate between the foreign currency and the local currency.
The naira fell short of the dollar by almost 40% in June causing Nigerian banks to amass significant foreign-exchange gains.
Zoom out: While many Nigerian banks have benefited from the forex revaluation gains, some of their customers bore the brunt. Several experts believe that Nigerian banks have nothing to lose by following the new CBN’s directive. They believe that not only will the banks keep their profits, they will also be better prepared for future economic shocks.
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Policy
Kenya to implement digital ID program
The Kenyan government has allocated a budget of KES 1billion ($6.9 million) to introduce digital identification cards to its citizens. Per TechMoran, the Kenyan government will issue a Unique Personal Identifier (UPI) or Maisha Number to every Kenyan from birth. This number will serve as a primary identification credential for Kenyans.
Kenyans will be given a two to three-year window to seamlessly transition to the new UPI system. Registration for the UPI is set to commence on September 29, 2023. The Kenyan government will also begin phasing out the existing second-generation ID card.
Zoom out: Across Africa, identity systems are largely paper-based. The World Bank estimates that at least 500 million people in Sub-Saharan Africa lack proof of legal identification. Kenya joins a growing list of African countries—Lesotho, Mozambique, Tanzania, Uganda, Zambia and Zimbabwe—adopting digital identity cards.
Policy
President Ruto plans to reduce corporate tax
Kenya plans to cut corporate income tax (CIT) on earnings for resident firms to 25 percent from the current 30 percent. The country is trying to align with average international rates to attract foreign investors and increase tax obligation compliance with the businesses that are already in the country. a more competitive 25 percent.
Side bar: Kenya’s tax rate is higher than the global average of 23 percent. Per Business Daily, 759,164 firms registered for corporation tax for the year ended June 2022, but only 84,428 paid the dues remitted quarterly.
When will this happen? The reduction will come into effect from July 2024 and end in June 2027. However, this means that companies that already pay preferential tax rates as low as half the standard rate on profit will have to step up to the new 25%.
Crypto Tracker
The World Wide Web3
Source:
|
Coin Name |
Current Value |
Day |
Month |
|---|---|---|---|
 Bitcoin |
$25,933 |
+ 2.99% |
– 11.94% |
| Ether |
$1,597 |
+ 2.74% |
– 13.72% |
 BNB |
$211 |
+ 2.69% |
– 12.18% |
| Cardano |
$0.24 |
+ 2.20% |
– 14.59% |
* Data as of 3:35 AM WAT, September 13, 2023.
The Moonshot Conference
In an increasingly interconnected world, the significance of identity cannot be overstated; it is a fundamental aspect for both developed and developing economies.
To understand the intersection between digital identity and economic development, join us on Friday, September 15th, at 11 AM (WAT) for the 8th edition of Inside Identity.
Opportuinities
- Jamit is excited to announce the Hear My Voice podcast storytelling contest, in partnership with Focusrite. Contestants are to record and submit an original podcast entry centered around one or more themes: Black love, joy, bloodlines, sisterhood, friendship and community. The first-place winner will be awarded $500 and theVocaster Two Studio podcast equipment sponsored by Focusrite. Apply by October 1st
- An opportunity is on the horizon for Zambian entrepreneurs and startup visionaries as X3M Ideas Zambia announces the X-Pitchathon to empower startups across various industries. A competition for MSMEs to win over $50,000 in prizes inclusive of brand and marketing support. Apply by September 28
What else we are reading
