Privet,
Victoria from Techpoint here,
Here”s what I’ve got for you today:
- MultiChoice Nigeria puts DStv and GOtv fee hikes on hold
- How to shut down a startup properly
- Glovo to shut down in Ghana
- Wasoko denies shutting down in Rwanda
- CBN stops account openings for some fintechs
MultiChoice Nigeria puts DStv and GOtv fee hikes on hold
Remember when Bolu told you on Friday that MultiChoice Nigeria was raising its subscription fees by at least 25% for the second time in six months? The first was by 19%.
So, what’s new? The Competition and Consumer Protection Tribunal stepped in yesterday and told MultiChoice that it can’t hike its prices or change its fees, starting tomorrow, May 1.
Why? A lawyer, Festus Onifade, filed a case against MultiChoice and the Federal Competition and Consumer Protection Commission. He basically said, “Hold up, you can’t just go raising prices like that!” And the tribunal agreed, at least for now.
The tribunal’s boss, Saratu Shafii, said MultiChoice has to put its plans on hold until it can sort everything out in court. Everyone involved has to show up on May 7 for the next round of legal battles.
Onifade’s not taking any chances. He’s asking for two things: first, to stop MultiChoice from raising its prices until the court decides what to do, and second, to curb it from doing anything that could harm consumers’ rights while the case is ongoing.
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So, it’s all up in the air for now, and we’ll have to wait and see what happens next. But for MultiChoice, it looks like they’ll have to hit pause on those price hikes for now.
How to shut down a startup properly
If anything, you and I can agree that no matter why a startup fails, shutting it down is never fun. It’s tough on the founders, the investors, and the employees. But it must be done correctly to avoid headaches later on.
Chimgozirim’s article dives into how to properly shut down a business in Nigeria. See, every place has its own rules for this stuff, so it’s crucial to know what’s what in your neck of the woods.
Why does it matter to shut down properly? Well, for starters, it’s not just about tying up loose ends. How you close up shop can seriously impact your reputation, especially if you’re looking to start another venture or get more funding down the line.
Properly closing up also makes sure everyone knows what’s what and why you had to pull the plug. Plus, if you’re hoping to hit up your old investors for cash again someday, doing things by the book will definitely up your chances.
And let’s not forget about the legal and financial stuff. If you don’t square away your debts and obligations before calling it quits, you could end up in hot water. Doing things right also helps make sure everyone gets their fair share of whatever’s left over.
So, while shutting down is unpleasant, doing so properly can make all the difference. Do you want to learn more about how to do it? For the inside scoop, read Chimgozirim’s most recent story.
Glovo to shut down in Ghana
Glovo, a food delivery platform, is calling it quits on May 10, 2024, in Ghana after putting $3.7 million into expanding there for two years. The company is saying “so long” to Ghana because, well, it’s just not making enough money there.
In an email to its restaurant pals, Glovo said it’s pulling out because it’s not turning a profit in the Ghanaian market. Instead, it’s going to focus on other African countries like Morocco, Uganda, Kenya, Côte d’Ivoire, and Nigeria.
It admitted that while Ghana has potential, it would take a lot more cash and time to make it work. So, it’s shifting its attention to places where it’s already doing better business.
Come May 10, customers won’t be able to order from Glovo anymore, and restaurants will get paid for any outstanding bills as per their agreements.
It’s a bit of a u-turn from what Glovo’s co-founder Sacha Michaud said back in 2021, when he was all gung-ho about Ghana’s market. But hey, things change.
Apparently, the food delivery scene in Ghana is having a tough time dealing with stuff like high taxes, low wages, and crazy inflation. Despite this, the online food delivery market is expected to boom, hitting $224.60 million in revenue in 2024 alone.
Jumia pulled the plug on its Ghanaian services last year, and Bolt Food has waved goodbye to Nigeria and South Africa, but it’s still hanging in there in Ghana.
Zoom out: Last week, the Competition Authority of Kenya informed platforms like Glovo and Uber Eats to open up shops in the country to deal with customer complaints.
Wasoko denies shutting down in Rwanda
There’s been some buzz about Wasoko, the eCommerce platform backed by Tiger Global and 4DX Venture. Rumours were swirling that they’d pulled out of Rwanda, especially after shutting down in Zanzibar and pausing operations in Uganda and Zambia.
But, surprise surprise, Wasoko says that’s not the case. The company is expanding its team in Rwanda, Tanzania, and Kenya. Per the platform, it’s on the hunt for new folks to join them, particularly in Rwanda where they’re looking for partnership and procurement associates.
Moreover, it opened a new warehouse in Rwanda last November. Plus, it’s been signing up new suppliers like Oxi and Movit to keep things running smoothly.
It’s also teaming up with Egyptian startup MaxAB to bring some Egyptian goods to Rwanda, a part of its bigger plan to spread its wings across Africa.
Speaking of Africa, Wasoko has decided to say goodbye to Senegal and Côte d’Ivoire, but it claims it’s still going strong in Kenya, Tanzania, Rwanda, and the Democratic Republic of the Congo.
Now, about that merger with MaxAB. It’s not quite a done deal yet, but they’re already starting to combine their operations in Nairobi. They’re aiming to get everything sorted within the next year.
However, Wasoko’s journey has not been without bumps. Some former employees are requesting more severance pay and stock options, causing the company some legal headaches. It settled for a month’s salary, but the ex-employees are pushing for more at the next hearing on May 9, 2024.
CBN stops account openings for some fintechs
The Central Bank of Nigeria (CBN) has directed Moniepoint, OPay, Kuda Bank, and Palmpay to hit the pause button on opening new accounts.
If you try to sign up for an account with these fintechs right now, you’ll probably get a message saying that sign-ups are on hold for the time being. But don’t worry, existing transactions should still go through without any issues.
This move comes after the government froze over a thousand bank accounts linked to dodgy forex dealings, aiming to put a stop to illegal activities like money laundering and terrorism financing.
But this isn’t the first time Nigeria’s had to deal with financial fraud. Fidelity Bank had already put restrictions on transactions with fintechs last year due to concerns about rising fraud cases.
And to tighten security, OPay and PalmPay started requiring National Identity Numbers (NIN) and Bank Verification Numbers (BVN) for new accounts late last year. There were reports of accounts being opened using other people’s identities.
On top of all this, the Central Bank’s been on a mission to clean up the financial system. They’ve been freezing accounts that aren’t linked to a BVN or NIN to keep things in check.
Sidebar Alert: The CBN granted Unified Payments Services Limited, a fintech service provider, the country’s second Payment Terminal Service Aggregator (PTSA) licence.
In case you missed it
What I’m watching
Opportunities
- If you’re a Product Designer and are looking for a remote role, check out this link for several roles.
- Several companies are looking for software engineers. Check out this link to work remotely with them.
- Check out this link for several remote Product Manager roles.
- If you have an early-stage startup, apply for Pitch2Win to pitch your ideas to a panel of esteemed judges and investors. The selected startups will vie for a grand prize of $10,000 equity-free funding and an all-expense-paid trip to IVS2024 Kyoto, Japan. Apply by May 5, 2024, here.
- Apply for Visa Everywhere Initiative (VEI) by May 6, 2024, here.
- Seedstars has announced INFUSE 2024, a global invitation for innovative applications aimed at fortifying health systems against climate threats and improving immunisation delivery. Apply here.
- Explore this website to find multiple job opportunities in Data that align with your preferences.
- If you are a software engineer, creative designer, product manager, design researcher, or a techie looking for an internship role, please, check out this website.
Have a terrific Tuesday!
Victoria Fakiya for Techpoint Africa.
