Privet,
Victoria from Techpoint here,
Here's what I've got for you today:
- Telcos to disconnect USSD codes for 9 banks in Nigeria
- Purple Elephant Ventures gets $4.5M
- DOB Equity makes a comeback by betting on Spouts
Telcos to disconnect USSD codes for Zenith, UBA, Wema banks
The Nigerian Communications Commission (NCC) has finally given mobile network operators — MTN, Airtel, Globacom, and 9mobile — the green light to disconnect USSD codes for nine banks over unpaid debts. For years, telcos have been complaining about billions owed by banks for USSD services, even though the banks keep charging their customers for the same service.
The affected banks include FCMB, Zenith Bank, Sterling Bank, Jaiz Bank, UBA, Polaris Bank, Unity Bank, Fidelity Bank, and Wema Bank. If this disconnection goes through, millions of Nigerians won’t be able to perform USSD transactions like checking balances or transferring money using their phones.
But it’s not happening just yet. The banks have been given an 11-day ultimatum to settle their debts or face the chop. The NCC warned that after January 27, 2025, those USSD codes could be reassigned to other businesses.
Here’s the backstory: The telcos claim these banks owe them a mountain of debt, some of it dating back to 2020. In fact, as of last year, the debt was estimated at ₦120 billion.
Attempts to recover the money have been slow, despite a joint directive from the NCC and the Central Bank of Nigeria (CBN) last December, asking banks to pay up or at least agree to a repayment plan. That same circular told banks to stop dragging telcos to court over the issue.
The NCC says these nine banks failed to comply with the payment directives and are now violating the rules for renewing their USSD codes. While this might seem like a long time coming, the telcos couldn’t make a move until the NCC stepped in with regulatory backing.
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If this disconnection happens, it could shake things up, forcing banks to rethink how they handle these debts while giving telcos some relief. Customers, though, might face major inconveniences — so it’ll be interesting to see how this plays out over the next couple of weeks.
Purple Elephant Ventures gets $4.5M
Purple Elephant Ventures (PEV), a venture studio based in Nairobi, just secured $4.5 million in seed funding to shake up Africa’s tourism industry. This is one of the biggest rounds ever for tourism tech on the continent, and it’s all about making African tourism a global leader.
PEV’s big goal? Build cutting-edge travel tech that makes tourism in Africa resilient, inclusive, and environmentally sustainable. Ben Peterson, PEV’s Co-Founder and CEO, called the funding proof of African tourism’s untapped potential. With this cash boost, PEV plans to push out innovative solutions that grow the economy while protecting Africa’s amazing natural and cultural heritage.
So, what’s the plan? The $4.5 million will go into scaling up PEV’s existing startups and launching new ones to tackle tourism’s biggest challenges. PEV is all about creating a tech-driven, sustainable tourism ecosystem in Africa, and their investor lineup, including big names like Clear Creek Investment B.V and Klister Corp., shows growing confidence in African travel tech.
PEV isn’t your regular venture studio. They’ve already launched five startups, including Nomad Africa, a travel discovery platform and one of Kenya’s top travel publishers; Kijani Supplies, a company that helps hospitality businesses source eco-friendly supplies; and Zafari, a booking platform designed to streamline operations for African tourism operators.
PEV keeps control of its startups and funds them internally, ensuring everything aligns with their vision of transforming tourism. According to them, they’re not just building businesses; they’re creating tech that supports biodiversity, helps local communities, and reduces travel’s environmental impact.
With this latest funding, it seems the future of sustainable tourism in Africa looks brighter than ever.
DOB Equity makes a comeback by betting on Spouts
DOB Equity, an impact investment fund focused on East Africa, is making a comeback with a fresh strategy. After dealing with some challenges in its previous portfolio (remember Sendy and Copia?), the fund is now placing its bets on Spouts International, a Ugandan company known for its ceramic water filters under the Purifaaya brand.
Spouts, founded in 2014 by Kathy Ku and John Kye, uses locally sourced materials to produce water filters that offer a safer, greener, and more affordable alternative to boiling water. These filters tackle problems like indoor air pollution, deforestation, and high carbon emissions caused by burning firewood or charcoal.
Plus, Spouts generates verified carbon credits, giving them an extra revenue stream beyond filter sales. To date, they’ve distributed nearly 300,000 filters, benefiting about two million people and cutting over 1.5 million tons of carbon emissions.
Leading DOB’s new direction is Karen Serem Waithaka, who stepped in as CEO last year. She’s shifted the fund’s focus to areas like sustainable food systems, renewable energy, and water and sanitation services. According to her, less than 25% of East Africa’s population has reliable access to safe drinking water, making investments like Spouts crucial.
This is a more focused approach compared to DOB’s earlier, wider investment strategy, which included over 30 companies. While diversification was the goal, the challenges faced by some businesses pushed the fund to rethink its approach. Now, the game plan is to back companies tackling infrastructure and climate-related issues, with a strong emphasis on long-term impact and sustainability.
Spouts CEO Daniel Yin is thrilled about the partnership, saying it’s the boost they need to scale manufacturing, strengthen distribution, and expand their reach across East Africa. Last year, Spouts also raised $3 million from Incofin’s Water Access Acceleration Fund (W2AF), so things are looking up.
For DOB Equity, this investment is a big step in proving their revamped strategy can work. With Spouts leading the charge, all eyes will be on how this new approach plays out in East Africa’s impact investing space.
In case you missed them
- 10 things to know about Adebayo Ogunlesi, OpenAI’s newest board member
- Meta targets workforce efficiency with plans to cut 5% of employees
- Correctional service to enrol inmates for NIN as NIMC boosts database expansion
- CBN fines 9 banks ₦150m each for failing to make cash available at ATMs
What I'm watching
- Why People with the Same Income End Up Rich or Broke
- What Nobody Tells You About Your Twenties | Livi Redden | TEDxBayonne
Opportunities
- Techpoint Africa is hiring a Market Research and Innovation Analyst. Apply here.
- Join Zachariah George, Managing Partner at Launch Africa Ventures and Maina Murage, Principal at Norrsken22 today, Wednesday, January 15, 2025, as they share insights on the venture capital outlook for Africa in 2025. Register here.
- Moniepoint is hiring for several roles. Apply here.
- Celebrate the New Year with delightful stories like Smart Couples. Call 421 on your Airtel line now — you won't be charged! Alternatively, call 07080601391 at your network's regular rate. Learn more 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 sweet Thursday!
Victoria Fakiya for Techpoint Africa.