Share this newsletter:
Good morning ☀️
There are 3 days to go before the Early Bird tickets to Moonshot 2024 are all gobbled up!
At Moonshot 2024, you can join Africa’s biggest thinkers and players like Iyin Aboyeji, Wiza Jalakasi, June Angelides, Kola Aina on a global launchpad for change. Hurry up and grab your tickets here!
Fintech
MTN Nigeria acquires 100% shares in MoMo PSB
On Monday, MTN Nigeria bought out Acxani Capital, a minority stakeholder in its mobile money business, MoMo PSB. According to a regulatory filing, it paid $4.3 million for Acxani’s 7.17% stake. This full ownership marks a significant milestone for the telecommunications giant as it seeks to accelerate growth within its fintech arm as CEO Karl Toriola stated in July.
But while MoMo PSB has demonstrated potential, with over 5.5 million active wallets, and a 33.4% year-on-year increase in transaction volume, the fintech unit faces challenges. Agent numbers have dropped by 24,000 to 302,800, and cash held on behalf of customers has plummeted by 72%. MTN’s fintech arm also recorded an 11.7% increase in revenue, but most of that growth was due to another fintech product, Xtratime.
From this practical standpoint, the acquisition then makes sense. By acquiring minority shareholder interests, MTN Nigeria gains complete autonomy over MoMo PSB’s strategic direction, investment priorities, and operational decisions. A consolidation like this can make it easier for MTN Nigeria to make the quick decisions it needs to grow this fintech vertical.
Read Moniepoint’s 2024 Informal Economy Report
89% of businesses in the informal economy pay levies and market fees. The informal economy is typically described as untaxed, but is that true? Click here to find out more.
Cybersecurity
First Bank sacks over 100 employees after $29 million fraud
First Bank is reeling from a ₦40 billion ($29 million) heist that has led to mass firings and questions about its leadership.
The lender fired over 100 employees in July after discovering a two-year fraud scheme allegedly orchestrated by a single manager. The accused, Tijani Muiz Adeyinka, remains at large.
The bank is facing intense scrutiny over how the fraud went undetected for almost two years. Dozens of employees, including the head of transactions, were fired for alleged laxity. Internal investigations and police inquiries have been launched.
The scandal also saw to the exit of First Bank’s CEO, Dr. Adesola Adeduntan, who resigned abruptly in April, months after the fraud was discovered. His departure comes amid questions about his role in the oversight failures that allowed the heist to occur.
Collect payments anytime anywhere with Fincra
Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now.
Banking
Why Access Bank sold 8% of its Botswana arm
In its journey towards continental domination, or a “global vision” as Chairman Aigboje Aig-Imoukhuede said in July, Access Holdings Plc has completed 11 acquisitions. This year, it acquired its second Kenyan bank, National Bank, its fifth since July 2023.
In a new twist, the bank has trimmed a holding in its subsidiary. In June, it reduced its stake in its Botswana subsidiary, a high-performing branch. The bank recorded a robust 86% year-on-year increase in pre-tax profit of P52 million (3.8 million), coupled with a rise in customer deposits to P7.7 billion ($567 million).
At the time, reports weren’t really clear on why especially considering the bank’s success, but TechCabal reporter Ephraim Modise did some digging and now we have answers: Access Bank Plc reduced its stake to fulfill regulatory obligations.
Botswana requires listed companies to have a minimum of 30% of their shares available to the public for trading. Since 2018, the bank has held a 78.15% stake in the subsidiary which it acquired from BancABC which
So between June 27 and 28, Access Bank Plc sold 59 million shares in Access Bank Botswana for P116 million ($8.6 million), reducing its stake from 78.15% to 70%.
Paystack Virtual Terminal is now live in more countries
Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog →
Stat of the week
50% of all the acquisitions made in H1 2024 involved South African startups or companies.
Crypto Tracker
The World Wide Web3
Source:
|
Coin Name |
Current Value |
Day |
Month |
|---|---|---|---|
 Bitcoin |
$54,514 |
– 7.15% |
– 4.75% |
| Ether |
$2,422 |
– 9.93% |
– 18.78% |
 TARS AI |
$0.11 |
– 15.77% |
– 13.52% |
| Solana |
$130.10 |
– 5.53% |
– 8.98% |
* Data as of 01:05 AM WAT, August 6, 2024.
You should definitely read these 👇🏾
Written by: Emmanuel Nwosu & Faith Omoniyi
Edited by: Muyiwa Olowogboyega & Timi Odueso
Want more of TechCabal? Sign up for our insightful newsletters on the business and economy of tech in Africa.
- The Next Wave: futuristic analysis of the business of tech in Africa.
- Entering Tech: tech career insights and opportunities in your inbox every Wednesday at 3 PM WAT.
- TC Scoops: breaking news from TechCabal
P:S If you’re often missing TC Daily in your inbox, check your Promotions folder and move any edition of TC Daily from “Promotions” to your “Main” or “Primary” folder and TC Daily will always come to you.
