Privet,
Victoria from Techpoint here.
Here's what I've got for you today:
- How loan apps dodge compliance in Nigeria
- ThriveAgric partners Visa to enter Kenya
- Uber, Bolt can now apply for operational licences in SA
How loan apps dodge compliance in Nigeria
While authorities are tightening regulations in the loan app space, unregistered loan apps are looking for ways to operate via Andriod Package Kits (APKs).
As you know, APK files allow apps to be downloaded directly, bypassing traditional app store rules.
Even after the Federal Competition and Consumer Protection Commission (FCCPC) delisted 47 of these loan apps from the Google Play Store in May 2024, Gbemi Adelekan from the Money Lenders Association pointed out that delisted apps continue operating using APKs to dodge regulatory checks.
According to Adelekan, users of these apps often face harassment and defamation due to aggressive loan pushing and unethical debt recovery tactics.
In March 2024, the FCCPC identified 88 loan apps for customer harassment and defamation, expanding scrutiny in the industry. They found that many apps use Payment Solution Service Providers (PSSPs) to process illegal transactions, complicating enforcement efforts.
The FCCPC removed 37 loan apps in September 2023, bringing the total to 47 by May 2024. Despite these actions, the number of registered loan apps in Nigeria has grown to 284, up from 266 in March 2024.
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ThriveAgric partners Visa to enter Kenya
ThriveAgric, a Nigerian agritech startup, is teaming up with Visa to expand into Kenya and support up to 10,000 farmers.
The agritech plans to set up local hubs in Busia, Homabay, Migori, Nandi, and Narok counties, with Busia and Homabay serving as training and distribution centres for farmers to gather, learn, and get input.
These hubs will help agents collect crops after harvest, ensuring farmers get paid based on market standards. Farmers will also get access to banking services and Visa cards, boosting financial inclusion.
ThriveAgric co-founder Ayo Arikawe sees this as a milestone in their Kenya expansion, starting with hubs in Busia and Homabay counties last year.
The agritech startup's efforts have significantly boosted farmers' yields and incomes, enhancing livelihoods and food security, while also promoting climate-friendly farming practices.
In 2022, ThriveAgric secured $56.4 million to expand across Ghana, Zambia, and Kenya. In May 2024, it partnered with Acorn Rabobank to provide carbon credits to 30,000 farmers across nine Nigerian states.
Uber, Bolt can now apply for operational licences in SA
South Africa's President, Cyril Ramaphosa, has approved changes to the National Land Transport Act, making it easier for ride-hailing services like Bolt and Uber to operate.
They can now apply for licences without charter permits or metered taxi licences.
The amended Act was initially proposed in 2020 by former Transport Minister Fikile Mbalula and has now been signed into law by President Ramaphosa, along with two other bills.
Transport Minister Sindisiwe Chikunga welcomed the updates, saying they simplify regulations and address current transport challenges, aiming for a more modern and inclusive transport system. The changes give the Minister more authority to set safety rules and enforce regulations.
Former Minister Mbalula highlighted that the amendments introduce new licence categories and require tech providers to prevent illegal operators on their platforms, facing fines up to R100,000 for non-compliance. These measures will improve safety and reduce conflicts between ride-hailing and metered taxi drivers.
While this is a victory for ride-hailing companies in South Africa, they face challenges in Kenya due to proposed taxes that could impact their operations negatively.
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- NDPC gets ₦400 million in fines from 7 companies for data breaches
What I'm watching
- Does Society Need God?
- The Technical CEO: He learnt to code in 3 months and got his startup into Techstars
Opportunities
- Pitch Friday is today, Friday, June 14, 2024. Register to attend here or pitch here.
- Are you a startup founder with at least an MVP? Apply for Founders Clinic, an eight-week mentorship programme connecting early-stage startup founders with experienced professionals. Register here by June 26, 2024.
- Moniepoint is hiring for 63 positions in the United Kingdom and several Nigerian states, including Lagos, Abia, and Anambra. Check them out here to apply.
- Explore this website to find multiple job opportunities in Data that align with your preferences.
- If you are a software engineer, creative designer, product manager, design researcher, or a techie looking for an internship role, please, check out this website.
Have a fun weekend!
Victoria Fakiya for Techpoint Africa.
