Oi,
Victoria from Techpoint here,
Here's what I've got for you today:
- SA’s financial authority cracks down on crypto
- Why mass layoffs have reduced despite economic woes
- NALA raises $40 million Series A
SA’s financial authority cracks down on crypto
The Financial Sector Conduct Authority (FSCA) in South Africa is cracking down on unlawful crypto financial services, investigating 30 cases of entities operating without proper licence.
Since declaring crypto assets as financial products in October 2022, the FSCA started accepting licence applications from June 2023. Existing players had a grace period to apply by November 2023 under the Financial Advisory and Intermediary Services (FAIS) General Code.
So far, the FSCA has received 383 licence applications, with 63 approved and 5 declined due to applicants not meeting fit and proper requirements. Those declined can reapply once they comply fully. However, unauthorised crypto businesses will face regulatory action to protect consumers and maintain industry fairness.
Despite ongoing applications, the FSCA warns against operating without authorisation, stressing that only those who applied by November 2023 and are awaiting approval can continue legally. The authority has also clarified that crypto assets aren't legal tender in South Africa, contrary to some media reports.
Why mass layoffs have reduced despite economic woes
It's obvious that things are changing fast. Apart from AI shaking up how we work, the wave of layoffs over the past couple of years has been unsettling. Even the once-booming tech scene, which thrived from 2020 to 2021, is now grappling with funding shortages and job cuts.
But there might be a glimmer of hope. As of early July 2024, Layoffs.fyi reported that 104,410 employees were laid off by 360 tech giants worldwide—about half the number from the same period in 2023, which was a tough year with more layoffs in its first month than all of the previous year.
Let the best of tech news come to you
Give it a try, you can unsubscribe anytime. Privacy Policy.
June alone saw layoffs in various sectors like HR, Data, and Education, but significantly fewer compared to 2023. This trend extends to African tech firms too, with fewer layoffs in 2024 despite economic pressures.
Yet, the underlying issues persist: inflation, economic conditions, and reduced funding. Oddly enough, despite funding for African startups dropping by 50% in early 2024—a sign that more layoffs might be expected—the numbers have decreased.
Want to delve into possible reasons? Check out Oluwanifemi's latest.
NALA raises $40 million Series A
Tanzania's NALA, a startup originally focused on local transfers, has secured a hefty $40M in funding for its new B2B payments platform.
Led by Acrew Capital and joined by DST Global and others, this investment will fuel NALA's growth, particularly for Rafiki, its B2B payment service.
Through its platform, NALA already facilitates remittances across 11 African markets, including Kenya and Rwanda, linking users in the EU, UK, and US to 249 banks and 26 mobile money services.
The startup has expanded its services to allow bill payments into local mobile wallets like M-PESA in Kenya, responding to user demands for more financial control.
With the new funding, NALA plans to expand beyond remittances, enhancing its infrastructure and launching Rafiki to streamline global business payments to and from Africa.
The startup, profitable since its pivot to international remittances in 2021, aims to build a robust payments ecosystem, leveraging partnerships and its own payment rails.
NALA's progress includes securing a payment systems license from the Bank of Tanzania in 2023, enabling direct integration with banks and mobile money providers.
The startup is optimistic about Rafiki's growth, already serving clients like TransferGo for Africa payouts and eyeing further expansion in the payments landscape.
In case you missed it
- UNDP to raise $1 billion to plant startup hubs across Africa
- 12 Nigerian Internet service providers fail to renew licence
- What Nigerian digital lenders can learn from the informal sector
What I'm watching
- Lao Tzu - The Art of Not Trying
Opportunities
- Pitch Friday is next Friday, July 12, 2024. Register here to attend and apply here to pitch.
- EarlyNode is looking for a Technical Writer. Apply here.
- Ventures Platform has over 100 job openings across its portfolio companies. Apply here.
- Moniepoint is hiring for 70 positions in the United Kingdom and several Nigerian states, including Lagos, Abia, and Anambra. Check them out here to apply.
Have a wonderful Wednesday!
Victoria Fakiya for Techpoint Africa.
