Fintech

Nigeria imposes a 7.5% VAT on digital goods and services advertisements. www.theexchange.africa
  • Google (80 million visits), Meta (26 million visits) and YouTube (7 million visits) ranked the first, third and thirteenth most visited sites in Nigeria in November 2021
  • On March 1, 2022, Google informed its business account users in Nigeria that it would kickstart collecting 7.5 per cent value-added tax
  • A section on the Act focuses on capturing value from non-resident technology companies and calls them to act as VAT collectors for digital goods and services traded within Nigeria

Nigeria has joined the fast-growing list of African nations that effectively capture their previously untapped digital economies within their tax base. The West African country is looking to grow revenues from a sector that has experienced exponential growth, the ad industry.

According to the 2022 report by Hootsuite, a social media management platform, ad-serving behemoths Google (80 million visits), Meta (26 million visits), and YouTube (7 million visits) ranked the first, third …

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  • Startups will receive crypto worth US$100,000 each from UNICEF’s Cryptofund
  • Cryptofund is part of UNICEF’s innovation fund, which allows the organization to hold, receive and disburse funds in cryptocurrency
  • Startups registered in 190 countries and have an operational, open-source blockchain prototype or are willing to make their startup open source are eligible to get the fund.
  • The deadline for application is March 8, 2022, and each qualified 

The UNICEF Venture Fund, in partnership with Giga (an Internet connection initiative), is calling for Blockchain-based software solutions for capacity building and community empowerment.

The collaboration is looking to make up to US$100,000 equity-free investment in cryptocurrency to provide early-stage seed funding and mentoring programs to profit-oriented technology startups that have the potential to benefit the larger population.

The applicants for the fund will receive the funding in cryptocurrency, either in bitcoin or ether, through UNICEF’s recently launched CryptoFund.

Read: Sweden boosts UNICEF

  • Traders holding the Cardano token will obtain loans of up to 70 per cent of the ADA tokens they hold.
  • The concept of decentralization and blockchain technology can replace traditional financial services such as commercial banks. Cryptocurrencies can also be used as an investment tool, and so can Cardano (ADA). 
  • The government of Ethiopia and Cardano Development had sealed an agreement to introduce 5 million secondary school students and 700,000 teachers on the Cardano blockchain app.
  • The downside of taking loans on Cardano is that the borrowers will have to self-manage the risk of the fluctuating Cardano price.

Cardano (ADA) is proof to take blockchain led by Ethereum co-founder Charles Hoskinson. Charles initial purpose in designing the token Cardano was to create competition for the Ethereum token. Cardano launched on September 29, 2017, after two years of development.

Cardano combines pioneer technologies to provide unparalleled security and sustainability to decentralized

  • The Central Bank of Kenya has published a discussion paper on a CBDC for the public to submit their views
  • CBK governor is optimistic about the country adopting a central bank digital currency
  • Written representations and submissions should be sent to the Central Bank of Kenya by May 20, 2022, at 5.00 p.m.

The Central Bank of Kenya has published a discussion paper on a central bank digital currency (CBDC) for the public to submit their views.

The discussion paper has invited comments from the public to be reviewed when assessing the potential use case of a CBDC in Kenya. The paper also scrutinizes the applicability of a CBDC in Kenya, if adopted, as part of the Central Bank’s initiative to ensure informed policy decisions regarding innovations.

The public’s written representations and submissions should be sent to the Central Bank of Kenya by May 20, 2022, at 5.00 p.m.

  • The acquisition gives the digital lender access to deposits held by Century MFB making it the majority shareholder
  • Branch has been exempted from Section 19 of the Microfinance Act (for 4 years through 2025)
  • The transaction represents the first buy-out of a mainstream lender by a digital lender in the country as the new digital lending law kicks in

Branch International Limited has become the first digital lender in Kenya to acquire a majority stake in a banking institution more than a month since the law regulating digital lenders came into force.

Central Bank of Kenya (CBK) announced on Tuesday, February 8, that Branch has acquired an 84.89 per cent stake in the microfinance lender for an undisclosed fee effective January 1, 2022.

“Branch is one of the largest mobile application-based lenders in the country and brings financial services to the emerging markets by leveraging on the powers of technology. …

  • Nestcoin plans to use the funds accrued to build, educate and invest in web 3.0 applications
  • The startup also intends to create a platform that will allow content creators to earn while educating the subscribers of Nestcoin
  • Serena Williams invested in Nestcoin to drive crypto adoption in Africa

Crypto in Africa

Nestcoin, a Nigerian startup founded in November 2021, has raised US$6.45 million in a pre-seed funding round in which 23-title tennis star Serena Williams’ Serena Ventures took part.

Nestcoin plans to use the funds accrued to build, educate and invest in web 3.0 applications. Web 3.0 is the upcoming 3G of the internet. Websites and applications will process information in an intelligent human-like way through technologies like machine learning (ML, decentralized ledger technology (DLT), Big Data etc.

The startup also intends to use the capital raised to create a platform that will allow content creators to earn while educating …

  • Data by the World Bank reveals that at least a quarter of the African population has internet access, a nearly fifty-fold increase in internet usage since 2000. 
  • The rapid spread of the internet across the African continent has been lauded as a key driver of prosperity and a sign of the continent’s technological coming of age. 

Over the past few years, the wealth management industry has seen a significant amount of diversification, from traditionally having products geared towards institutional investors and high net worth individuals to offering more accessible products to low and middle-income earners. 

While WealthTech is not a new concept in Africa, there is room for market players to leverage consumer demand for wealth management products that are more digitally accessible and easy to use. 

WealthTech or wealth management technology is the combining of technology such as AI, big data, SaaS, with financial assets, such as savings, investments,

  • The Binance crypto exchange platform has restricted the personal accounts of 281 Nigerians over security concerns
  • “All non-law enforcement-related cases will be resolved within two weeks,” Binance noted
  • Despite the Central Bank of Nigeria opposing crypto, it has fully embraced a digital currency, the eNaira
  • Does the eNaira serve the same purpose as cryptocurrencies?

Cryptocurrencies in Africa

The Binance crypto exchange platform has restricted the personal accounts of 281 Nigerians dealing in cryptocurrencies in africa over security concerns. Binance has acted to comply with anti-money laundering regulations and protect the security of the 28.6 million traders on the platform.

Thirty-eight percent of the restricted cases had come from a request by international law enforcement agencies. The exact reason for the banning of the accounts remains unclear.

Binance Holdings Limited, in a statement on their website, said protection mechanisms such as know your customer, collaboration with law enforcement, anti-money laundering measures, …

  • The Central Bank of Kenya (CBK) has warned local commercial banks against dealing with cryptocurrencies transactions or face penalties for non-compliance
  • Some banks have issued notices to customers buying cryptocurrencies, warning them of the permanent closure of their accounts
  • Despite the stance by the CBK against cryptocurrencies, Kenya leads Africa in crypto adoption and stands fifth in the world

The Central Bank of Kenya (CBK) remains adamant about lifting the ban on cryptocurrency use in Kenya.

CBK Governor Dr Patrick Njoroge said on January 27 that the bank’s position on the restrictions of cryptos like bitcoin in Kenya remains in place.

The CBK has also issued circulars to local commercial banks warning them against dealing with cryptocurrencies transactions or face penalties for non-compliance. The last circular was issued in 2018 and has remained in action up until now.

While delivering the monetary policy announcement where the monetary policy committee retained …