Ekaaro,
Victoria from Techpoint,
Here's what I've got for you today:
- INTERPOL nabs 300 tied to Black Axe, Nigerian group
- Startup's unsustainable salary trap
- Flutterwave enters Uganda
- Safaricom debunks cancelling payment for Starlink
INTERPOL nabs 300 tied to Black Axe, Nigerian group
Remember this? INTERPOL cracks down on West African cyber fraud
The International Criminal Police Organisation (INTERPOL) has made another big move against the notorious Black Axe criminal network, arresting 300 people in a global crackdown.
Black Axe, a group with Nigerian roots, has spread its influence worldwide, making it a major target for law enforcement. The arrests were part of INTERPOL’s Operation Jackal III, which ran from April to July 2024 across 21 countries.
Interpol's Tomonobu Kaya highlighted how these criminal syndicates are quick to adopt new technologies, making it easier for them to move money illegally across the globe.
Black Axe’s tech-savvy nature has helped them maintain their operations on the international stage, posing a real challenge for authorities.
Operation Jackal III has been hailed as a significant success, revealing Black Axe's deep involvement in cybercrime and money laundering through cryptocurrencies.
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In November 2023, Irish police made a big move against the Black Axe criminal group, seizing over €1 million in crypto-assets and freezing over 700 bank accounts. This led to several arrests and helped create an intelligence database shared with Interpol’s 196 member countries.
But experts like Dr. Oluwole Ojewale told Nairametrics that prevention should be the priority. He believes that poor governance and political issues in Nigeria are fuelling the growth of such criminal groups, so tackling these root causes is crucial.
Why some startups pay unsustainable salaries
Did you know that some startup founders often misunderstand what "competitive salary" really means?
Oluwanifemi recently came across a Reddit thread where people were venting about the chaotic payroll situation in their companies.
The stories all had a similar ending: they found themselves working at a startup that couldn’t generate revenue, ran out of funds, and struggled to secure more funding. Yet, they all agreed on one thing — they were being paid way more than their peers at other companies, at least until the salary delays became a regular issue.
Paying a workforce salaries that are way out of sync with the company’s actual cash flow is like sitting on a ticking time bomb.
As Princess Edopkayi, Co-founder and COO of Spurt!, put it, it’s a disaster waiting to happen. Problems arise when startups skip the crucial step of researching current market rates for various roles and finding accurate benchmarks.
This lack of transparency and fairness can lead to serious issues, including unwanted scrutiny from investors, internal conflicts, disengaged employees, and, ultimately, the failure of the company.
So, what should employers focus on before setting up a pay structure? It’s all about having a standard pay system that’s regularly reviewed to ensure it’s fair and aligned with the company’s financial reality. This approach could save many startups from unnecessary headaches and set them up for long-term success.
But what do you think are the most critical factors in creating a sustainable pay structure? Read Oluwanifemi’s latest to find out here.
Flutterwave enters Uganda
Flutterwave has got a Payment Systems Operator (PSO) licence from the Bank of Uganda!
This means businesses in Uganda can now use Flutterwave’s payment solutions to handle single and bulk payouts to suppliers, employees, and partners. Plus, people in the diaspora can send money back home to their families.
Flutterwave’s new licence also shows they’re on board with Uganda’s laws and regulations. Its services in Uganda include sending and receiving payments, invoicing, API solutions, and payment links.
The company has already helped over 1.5 million businesses handle more than 630 million payments, totalling over $32 billion. Flutterwave’s CEO, Olugbenga ‘GB’ Agboola, sees this as a big step towards a financially connected Africa.
Flutterwave’s Chief Regulatory Officer, Oluwabankole Falade, promises they’ll stick to all regulations and work closely with the Bank of Uganda to keep things secure and beneficial for everyone in Uganda.
This new licence comes right after Flutterwave got payment licences in Mozambique and Ghana. They’re also now letting online merchants in Nigeria accept American Express and plan to roll this out in Tanzania, Rwanda, Ghana, and Uganda soon.
Safaricom debunks cancelling payment for Starlink
Safaricom, Kenya’s telecom company, has cleared up some confusion about paying for Starlink services with its mobile money product, M-PESA.
Some chatter on X (formerly Twitter) claimed Safaricom had blocked Starlink payments, but the company says that’s not true.
They’ve confirmed that you can still pay for Starlink via M-PESA and suggested reaching out to them if you face any issues.
Before this mix-up, Safaricom had proposed that the Communications Authority (CA) should require satellite internet providers to partner with local companies.
They argued that this would make it easier for the government to regulate and hold these providers accountable. The CA acknowledged Safaricom’s concerns but assured that they review such issues independently to keep the ICT sector evolving smoothly.
On the flip side, Starlink, which launched in Kenya in July 2023, has rolled out a rental kit option for its hardware, making it more affordable for customers who don’t want to buy the equipment outright.
Safaricom, meanwhile, has slashed its Internet prices to attract back customers who moved to Starlink. They also reported strong earnings of $1.07 billion for the fiscal year ending March 2024 and are pushing ahead with 5G expansion.
In other news, while Starlink has faced regulatory hurdles in some African countries, it recently launched in Botswana after a year of navigating local regulations.
In case you missed it
- Starlink finally launches in Botswana after year-long regulatory struggles
- How to create an effective fundraising strategy for your startup
What I'm watching
- Why Good People Become Monsters
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Have a terrific Thursday!
Victoria Fakiya for Techpoint Africa.
