S̄wạs̄dī,
Victoria and Delight from Techpoint here,
Here;s what we've got for you today:
- Kenya's tax system goes real-time
- ₦4.6 trillion appetite for food delivery
- $110M pushes Moniepoint to unicorn club
Kenya's tax system goes real-time
Earlier this month, Kenya’s Revenue Authority (KRA) introduced an ambitious plan for a real-time tax system that will capture and track all transactions as they happen. The goal? To ensure better tax compliance and cut down on tax evasion.
The KRA has started reaching out to banks, financial institutions, and payment service providers like M-Pesa, asking them to integrate their systems with the authority’s new digital tax platform by December 2024.
For M-Pesa, this integration will mean acting as a Virtual Electronic Tax Register (ETR) that captures transaction details in real-time, helping the KRA monitor and manage tax records more efficiently. Letters sent to CEOs of these institutions reference Kenya’s Income Tax Act of 2023, emphasising the push for compliance.
Part of KRA’s strategy includes using AI to detect tax evasion and a WhatsApp chatbox that lets small businesses generate tax invoices. And come January 2025, mobile IMEI registrations will be required as part of these compliance measures. Non-compliant devices will face a grey-listing process to give users time to regularise them, but failure to comply could lead to blacklisting.
With this shift to real-time tax tracking, the Kenyan government aims to modernise the tax sector, make tax compliance easier, and increase transparency, all to boost national revenue.
₦4.6 trillion appetite for food delivery
Nigeria’s food delivery scene is growing fast, but startups face big challenges to make it sustainable.
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Beyond creating seamless food experiences, these companies must find ways to stay profitable in an economy marked by inflation and limited consumer purchasing power.
Food has always been at the heart of Nigerian gatherings, whether it’s a wedding, funeral, or naming ceremony — people come together, and food is essential.
This cultural significance is backed up by big spending: in 2019, Nigerians spent ₦4.6 trillion eating out, with almost 60% of the average income going towards food. That demand gives startups a clear opportunity, yet the path to profitability remains tough.
The COVID-19 pandemic highlighted just how much potential there is in the food delivery space. With movement restrictions, people leaned on food delivery more than ever, a trend that’s expected to push the industry’s revenue to $42.5 billion by 2025.
However, even globally, food delivery startups often find it challenging to turn a profit despite massive investment.
So, can food delivery startups in Nigeria overcome these hurdles and succeed long-term? Check out Chimgozirim’s deep dive to see what’s driving this sector, the obstacles startups face, and where opportunities might lie.
$110M pushes Moniepoint to unicorn club
Nigerian fintech Moniepoint just hit unicorn status with a whopping $110 million Series C round, pushing its valuation past $1 billion.
With this boost, the startup aims to deepen its presence across Africa, starting with Kenya. It plans to build an all-in-one platform packed with business services like digital payments, banking, foreign exchange, credit, and business management tools.
Development Partners International’s ADP III fund led this investment round, alongside Google’s Africa Investment Fund, Verod Capital, and Lightrock.
Moniepoint, launched in 2015 by Tosin Eniolorunda and Felix Ike, started out providing infrastructure for banks and later became one of Nigeria’s top business banking services.
In January 2023, it rebranded from TeamApt, a shift that aligned with its expansion and heavy transaction volume, processing over $10 billion for more than 400,000 businesses at the time.
In August 2023, Moniepoint also launched personal banking under Moniepoint Microfinance Bank, which sparked a 2,000% spike in personal finance customers within a year. It has since added a consumer app and debit cards, extending its focus from businesses to individuals. With this, Moniepoint now claims it handles over 800 million monthly transactions worth over $17 billion.
Founder Tosin Eniolorunda highlighted that this recent funding will power Moniepoint's mission of promoting financial inclusion across Africa. The company’s growth has been impressive, posting a compound annual growth rate (CAGR) above 150% and solid profit margins.
In case you missed them
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What I'm watching
- Scientists Have Discovered the Entity That May Create the Universe
- The Cynical Genius Illusion - Dr. Jamil Zaki
Opportunities
- Pitch Friday is next Friday. Register here.
- Looking for an internship or remote role? Here's a list of 1,500+ opportunities in different fields (tech, finance, marketing, health and more). Check it out here.
- A Nigeria-based online sales & marketing expert is needed in a Dutch company. Check it out here.
- Follow Techpoint Africa's WhatsApp channel to stay on top of the latest trends and news in the African tech space here.
Have a wonderful Wednesday!
Victoria Fakiya for Techpoint Africa.
