Namaste,
Victoria from Techpoint here,
Here's what I've got for you today:
- Uganda to set new Internet cable route via Tanzania
- Open banking: Power to the customer
- From bankruptcy to comeback: iProcure's tale
Uganda to set new Internet cable route via Tanzania
Uganda is working on setting up a new Internet cable route through Tanzania as part of the Northern Corridor Integration Projects (NCIP).
Ambassador Patrick Kabonero, Uganda's NCIP coordinator, announced this during a summit in Kampala, highlighting that the new route would reduce reliance on Kenya, through which all of Uganda’s current internet traffic passes.
This move comes after a recent regional Internet outage caused by disruptions in the SEACOM and EASSy subsea cables. Kabonero stressed the importance of the new route for ensuring more reliable Internet service in the region. The project is expected to be led by the private sector and is part of broader efforts under NCIP.
There are also ongoing talks about creating a One Area Network (OAN) across East Africa, a plan that would lower data costs, increase internet traffic, and make cross-border transactions easier. Telecom companies in the region are already backing this initiative, which aims to further integrate East African countries.
What’s more, the NCIP itself is a regional initiative focused on improving infrastructure and services across East Africa. It covers several projects, including railways, oil pipelines, and boosting electricity interconnectivity. Uganda is leading some of these efforts, like developing the Standard Gauge Railway and improving ICT infrastructure.
Despite progress, funding remains a challenge for NCIP projects, with Kabonero calling for more involvement from finance ministries. The 15th NCIP Summit will be held in Kigali, Rwanda, where updates on the projects will be discussed.
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Open banking: Power to the customer
Imagine a world where your financial data isn’t locked away in one bank, but instead, you can access better services from any provider that fits your needs.
That’s the promise of open banking — a major shift that's forcing the traditional banking sector to break out of its silos and embrace innovation.
For years, banks have operated in isolation, but open banking is changing all that. Now, third parties can access essential financial data, pushing banks to step up their game.
According to Uzoma Dozie, CEO of Nigerian fintech company Sparkle, big banks will have to revolutionise their services if they want to keep customers — especially the younger, tech-savvy generation. “If they don’t, people will move on to better options,” he says.
The real winners here are customers. Open banking gives them the freedom to choose from several service providers that meet their needs, which will also drive down the cost of financial services as competition heats up. Instead of being stuck with one bank, people can pick and choose what works best for them.
It’s not just about better banking for individuals, though. Open banking opens up new opportunities for businesses too.
With access to data from other digital services and even government agencies, financial institutions can improve their offerings, speed up customer onboarding, and make smarter lending decisions. Find all the deets in Chimgozirim’s latest story here.
From bankruptcy to comeback: iProcure's tale
Kenyan agritech startup iProcure is making a comeback after re-acquiring its core technology, a key move to restart operations after financial troubles.
The company had been in administration since April 2024, after failing to pay creditors, and later filed for bankruptcy.
Despite raising $17.2 million previously, efforts to get more funding failed, leading CEO Stefano Carcoforo to seek bankruptcy protection. KPMG was brought in to oversee the restructuring, with liquidation as a last resort.
Founded in 2012, iProcure connects agricultural manufacturers to local retailers and had expanded across East Africa. In 2022, the company raised $10.2 million to fuel its growth, with revenues reportedly hitting $14 million.
However, financial issues piled up when investor demands led to hiring expensive management, which significantly increased operating costs. To make matters worse, iProcure heavily depended on the fertiliser market, which took a hit due to government subsidies.
Things escalated as foreign debt became harder to manage due to the weakening Kenyan shilling, pushing the company further into a financial crisis. By September 2023, iProcure couldn't even cover payroll, and in April 2024, KPMG was appointed to manage the administration process.
Despite the collapse, the co-founders weren’t ready to give up. They managed to re-acquire their core technology, which is still used by over 6,000 agro-dealers in Kenya. Interestingly, many customers who had previously hesitated to pay began subscribing once they learned of iProcure's financial situation.
Now, the team is focusing on what they do best, hoping to learn from their mistakes around over-expansion and reliance on specific markets. The future is still unclear, but reacquiring the technology has given them a chance to rebuild.
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What I'm watching
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Opportunities
- An organisation is hiring a virtual assistant. Apply here.
- Interswitch is looking for a Data Scientist and Business Developer Manager in Lagos. Apply here.
- Flutterwave is hiring for several roles in Nigeria, Malawi, Egypt, and South Africa. Apply here.
- Paystack is hiring for several roles in Nigeria and Ghana. Apply here.
- Moniepoint is recruiting for several roles in Lagos and remotely. Apply here.
- Briter Bridges is hiring for several roles in Nigeria, Kenya, and London. Apply here.
- Kuda is looking for a Product Manager. Apply here.
- Quidax is hiring a Head of Growth and Partnerships. Apply here.
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- Meta is hiring software engineers here.
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Have a wonderful Wednesday!
Victoria Fakiya for Techpoint Africa
