Bonjour,
Victoria from Techpoint Africa here,
Here's what I've got for you today:
- Lagos State allocates ₦1 billion seed fund for startup innovation
- Nigeria’s tax collector drops tax charges against Binance bigshots
- MultiChoice in hot water
Lagos State allocates ₦1 billion seed fund for startup innovation
The Lagos State government has set aside ₦1 billion in seed funding for startups through the Lagos State Science, Research, and Innovation Council (LASRIC).
This big announcement came during the inauguration of Lagos's newly reconstituted LASRIC members. Governor Babajide Sanwo-Olue emphasised Lagos’s growing reputation as a hub for early-stage and unicorn startups.
He highlighted how Lagos’s startup ecosystem is outpacing many other African cities in success metrics, foreign direct investment, and the number of innovative solutions and patents.
He also pointed out the importance of innovation in his administration’s THEMES Agenda, leading to the creation of LASRIC to drive science and tech initiatives. The council includes experts from industry, academia, and the public sector, all focused on expanding innovation in Lagos.
In the past four years, LASRIC has created over 500 jobs by supporting startups in areas like AgriTech, the circular economy, climate change, and construction tech. It has also backed over 70 research and development initiatives, boosting innovation in Lagos by over 250%.
What’s more, Olatunbosun Alake, the Commissioner for Innovation, Science, and Technology, introduced a new assessment system called “POEM” to evaluate tech companies applying for seed funding.
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Nigeria’s tax collector drops tax charges against Binance bigshots
The Federal Inland Revenue Service (FIRS) has dropped the tax evasion charges against two folks at Binance — Tigran Gambaryan and Nadeem Anjarwalla.
Binance is now the sole defendant with Ayodele Omotilewa as its representative.
Some backstory: In March 2024, FIRS accused Binance of tax evasion, claiming the platform violated four tax laws and didn't register for tax purposes. Gambaryan and Anjarwalla were named as defendants.
However, Binance maintained that Gambaryan is not a decision-maker and should not be held as the case proceeded.
Moreover, Binance is still waiting for a court decision to fully clear Gambaryan. It praised FIRS for how it handled the case, emphasising its commitment to a transparent resolution.
Binance hopes that the Economic and Financial Crimes Commission (EFCC) will follow FIRS’s lead so Gambaryan can return home. The EFCC had charged Binance and its executives with money laundering after FIRS’s tax evasion charges.
Although the tax evasion charges against the two folks have been dropped, the conflict between Binance and the Nigerian government isn’t over. Binance has stated they’d continue working with the government to resolve the matter.
MultiChoice in hot water
Remember this? MultiChoice reports revenue losses and a subscriber decline for fiscal year March 2024
Well, MultiChoice CEO Calvo Mawela recently discussed the company’s strategy amidst financial challenges, emphasising cost savings without layoffs despite a 5% revenue decline and increased after-tax losses reaching R4.1 billion.
To stabilise finances, MultiChoice aims to save R2 billion by 2025, focusing on renegotiating big-ticket contracts like satellite leases.
Mawela highlighted efforts to expand digital offerings to bolster revenue, noting positive traction in growing sectors like insurance, which saw a 19% rise in active policies and a 35% revenue increase.
Showmax, another focal point, aims to hit $1 billion in revenue within five years. Despite these gains, MultiChoice faces setbacks such as subscriber losses in key markets due to issues like load-shedding in South Africa and economic challenges in other African countries.
Peter Takaendesa of Mergence Investment Managers said MultiChoice’s South African operations remain crucial despite losses incurred from developing Showmax. Takaendesa acknowledged Canal+’s offer of R125 per share as a key factor supporting share prices amid operational difficulties.
Moreover, Shane Watkins, a seasoned pro in asset management, warns that unless Canal+ buys MultiChoice out or they significantly improve their operations, MultiChoice might need to raise capital through a rights issue.
Canal+ has offered MultiChoice shareholders R125 per share and already owns over 40% of the company. However, the deal is not a sure thing—it still needs regulatory approval from bodies like ICASA and the Competition Commission.
If the deal falls through, Watkins predicts MultiChoice's share price will drop below R60.
Last week on Techpoint Africa
- SEC warns that individuals who patronise $DAVIDO do so at their peril
- Meta reduces office space in Lagos, introduces desk sharing for employees
- Introducing Founders Clinic: Transform your startup journey with mentorship from top Nigerian operators and founders
- Adia Sowho steps down as MTN Nigeria’s CMO
- Baobab Nigeria launches Jollof+ to help Nigerians curb inflation and save better
- Egyptian fintech Sahl secures $6 million to expand and improve its services
- Wasoko and MaxAB merger deal stalls due to ongoing restructuring, macroeconomic challenges
- Botswana unveils digital post office platform to improve its financial infrastructure
- Pitfalls to avoid when expanding a startup: Lessons from Paystack, Jetstream, and Lapaire
- Access Bank completes acquisition of ABC Tanzania after 12 months
- Kenya regulator plans to issue payment licences to fintechs
- Egypt’s healthtech i‘SUPPLY raises pre-Series A funding support expansion plans
- Canal+ has no plans to change MultiChoice’s brands post takeover
- I used LinkedIn “Open to Work” tag for 14 days; here’s what I found out
- Starlink goes live in Sierra Leone a year after receiving licence
- Bolt drivers dissatisfied with the suspension of over 6,000 drivers in South Africa
- Zimbabwe plans to come up with a crypto regulatory framework
- FIRS drops tax charges against Binance executives, lists exchange as sole defendant
- Kenyan court vacates order compelling Wasoko to retain 9 ex-employees
- MultiChoice reports revenue losses and a subscriber decline for fiscal year March 2024
- ThriveAgric partners Visa for Kenya expansion after supporting 30,000 Nigerian farmers
- Unregistered loan apps persist via APKs to dodge regulatory compliance as FCCPC delists more
- Why governments are bad with digital currencies
- Uber, Bolt can now apply for operating licences in South Africa
- Airtel extends 5G network to 39 counties in Kenya
- Telkom expects earnings to increase by 200% amidst challenging market conditions
- How Deimos bootstrapped to $20 million in yearly revenue in 6 years
- NDPC gets ₦400 million in fines from 7 companies for data breaches
- Bank of Ghana completes two phases of cross-border trading using digital credentials
- NDPC gets ₦400 million in fines from 7 companies for data breaches
What I'm watching
- Child labour behind global brands' best-selling perfumes - BBC World Service Documentaries
- Are men POLYGAMOUS by nature?
Opportunities
- Ventures Platform has over 100 job openings across its portfolio companies. Apply here.
- Earna is looking for a Product Marketing Manager. Apply 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 productive week!
Victoria Fakiya for Techpoint Africa.
