Africa Roundup: Zimbabwe’s net blackout, Partech’s $143M fund, Andela’s $100M raise, Flutterwave’s pivot

Jake Bright Contributor Jake Bright is a writer and author in New York City. He is co-author of The Next Africa. More posts by this contributor Partech is doubling the size of its African venture fund to $143 million Zimbabwe’s government faces off against its tech community over internet restrictions A high court in Zimbabwe […]

A high court in Zimbabwe ended the government’s restrictions on internet and social media last month.

After days of intermittent blackouts at the order of the country’s Minister of State for National Security, ISPs restored connectivity per a January 21 judicial order.

Similar to net shutdowns around the continent, politics and protests were the catalyst. Shortly after the government announced a dramatic increase in fuel prices on January 12, Zimbabwe’s Congress of Trade Unions called for a national strike.

Web and app blackouts in the southern African country followed demonstrations that broke out in several cities. A government crackdown ensued, with deaths reported.

On January 15, Zimbabwe’s largest mobile carrier, Econet Wireless, confirmed that it had complied with a directive from the Minister of State for National Security to shutdown internet.

Net access was restored, taken down again, then restored, but social media sites remained blocked through January 21.

Throughout the restrictions, many of Zimbabwe’s citizens and techies resorted to VPNs and workarounds to access net and social media, as reported in this TechCrunch feature.

Global internet rights group Access Now sprung to action, attaching its #KeepItOn hashtag to calls for the country’s government to reopen cyberspace soon after digital interference began.

The cyber-affair adds Zimbabwe to a growing list of African countries — including Cameroon, Congo and Ethiopia — whose governments have restricted internet expression in recent years.

It also provides another case study for techies and ISPs regaining their cyber rights. Internet and social media are back up in Zimbabwe — at least for now.

Further attempts to restrict net and app access in Zimbabwe will likely revive what’s become a somewhat ironic cycle for cyber shutdowns. When governments cut off internet and social media access, citizens still find ways to use internet and social media to stop them.

Partech doubled its Africa VC fund to $143 million and opened a Nairobi office to complement its Dakar practice.

The Partech Africa Fund plans to make 20 to 25 investments across roughly 10 countries over the next several years, according to general partner Tidjane Deme. The fund has added Ceasar Nyagha as investment officer for the Kenya office to expand its East Africa reach.

Partech Africa will primarily target Series A and B investments and some pre-series rounds at higher dollar amounts. “We will consider seed-funding — what we call seed-plus — tickets in the $500,000 range,” Deme told TechCrunch for this story on the new fund. Partech is open to all sectors “with a strong appetite for people who are tapping into Africa’s informal economies,” he said.

Partech Africa joined several Africa-focused funds over the last few years to mark a surge in VC for the continent’s startups. Partech announced its first raise of $70 million in early 2018 next to TLcom Capital’s $40 million, and TPG Growth’s $2 billion.

Africa-focused VC firms, including those locally run and managed, have grown to 51 globally, according to recent Crunchbase research.

Andela, the company that connects Africa’s top software developers with technology companies from the U.S. and around the world, raised $100 million in a new round of funding.

The new financing from Generation Investment Management (an investment fund co-founded by former VP Al Gore) puts the valuation of the company at somewhere between $600 million and $700 million—based on data available from PitchBook on the company’s valuation.

The company now has more than 200 customers paying for access to the roughly 1,100 developers Andela has trained and manages.

With the new cash in hand, Andela says it will double in size, hiring another thousand developers, and invest in new product development and its own engineering and data resources. More on Andela’s recent raise and focus here at TechCrunch.

Fintech startup Flutterwave announced a new consumer payment product for Africa called GetBarter, in partnership with Visa.

The app-based offering is aimed at facilitating personal and small merchant payments within and across African countries. Existing Visa  cardholders can send and receive funds at home or internationally on GetBarter.

The product also lets non-cardholders (those with accounts or mobile wallets on other platforms) create a virtual Visa card to link to the app.  A Visa spokesperson confirmed the product partnership.

GetBarter allows Flutterwave  — which has scaled as a payment gateway for big companies through its Rave product — to pivot to African consumers and traders.

The app also creates a network for clients on multiple financial platforms to make transfers across payment products and national borders, and to shop online.

“The target market is pretty much everyone who has a payment need in Africa. That includes the entire customer base of M-Pesa,  the entire bank customer base in Nigeria, mobile money and bank customers in Ghana — pretty much the entire continent,” Flutterwave CEO Olugbenga Agboola told TechCrunch in this exclusive.

Flutterwave and Visa will focus on building a GetBarter user base across mobile money and bank clients in Kenya, Ghana, and South Africa, with plans to grow across the continent and reach those off the financial grid.

Founded in 2016, Flutterwave has positioned itself as a global B2B payments solutions platform for companies in Africa to pay other companies on the continent and abroad. It allows clients to tap its APIs and work with Flutterwave developers to customize payments applications. Existing customers include Uber,  Facebook,  Booking.com and African e-commerce unicorn Jumia.com.

Flutterwave added operations in Uganda in June and raised a $10 million Series A round in October The company also plugged into ledger activity in 2018, becoming a payment processing partner to the Ripple and Stellar blockchain networks.

Headquartered in San Francisco, with its largest operations center in Nigeria, the startup plans to add operations centers in South Africa and Cameroon, which will also become new markets for GetBarter.

And sadly, Africa’s tech community mourned losses in January. A terrorist attack on Nairobi’s 14 Riverside complex claimed the lives of six employees of fintech startup Cellulant and I-Dev CEO Jason Spindler. Both organizations had been engaged with TechCrunch’s Africa work over the last 24 months. Condolences to  family, friends, and colleagues of those lost.

More Africa Related Stories @TechCrunch

African Tech Around The Net    

Zimbabwe’s government faces off against its tech community over internet restrictions

Jake Bright Contributor Jake Bright is a writer and author in New York City. He is co-author of The Next Africa. More posts by this contributor Harley Davidson reveals more about its push into electric vehicles Venture capital, global expansion, blockchain and drones characterize African tech in 2018 After days of intermittent blackouts at the […]

After days of intermittent blackouts at the order of the Zimbabwe’s Minister of State for National Security, ISPs have restored connectivity through a judicial order issued Monday.  

The cyber-affair adds Zimbabwe to a growing list of African countries—including Cameroon, Congo, and Ethiopia—whose governments have restricted internet expression in recent years.

The debacle demonstrates how easily internet access—a baseline for all tech ecosystems—can be taken away at the hands of the state.  

It also provides another case study for techies and ISPs regaining their cyber rights. Internet and social media are back up in Zimbabwe — at least for now.   

Protests lead to blackout

Similar to net shutdowns around the continent, politics and protests were the catalyst. Shortly after the government announced a dramatic increase in fuel prices on January 12, Zimbabwe’s Congress of Trade Unions called for a national strike.

Web and app blackouts in the Southern African country followed demonstrations that broke out in several cities. A government crackdown ensued with deaths reported.

“That began Monday [January 14]. A few demonstrations around the country become violent…Then on Tuesday morning there was a block on social media: Facebook, Twitter, and WhatsApp,” TechZim CEO Tinashe Nyahasha told TechCrunch on a call from Harare.

On January 15, Zimbabwe’s largest mobile carrier Econet Wireless confirmed via SMS and a message from founder Strive Masiyiwa that it had complied with a directive from the Minister of State for National Security to shutdown internet.

Net access was restored, taken down again, then restored, but social media sites remained blocked through January 21.

Data provided to TechCrunch from Oracle’s Internet Intelligence research unit confirm the net blackouts on January 16 and 18.

VPNs, government response

Throughout the restrictions, many of Zimbabwe’s citizens and techies resorted to VPNs and workarounds to access net and social media, according to Nyahasha.

Throughout the interruption TechZim ran updated stories on ways to bypass the cyber restrictions.

The Zimbabwean government’s response to the net shutdown started with denial—one minister referred to it as a congestion problem on local TV—to presidential spokesperson George Charamba invoking its necessity for national security reasons.

Then President Dambudzo Mnangawa took to Twitter to announce he would skip Davos meetings and return home to address the country’s unrest—a move panned online given his government’s restrictions on citizens using social media.    

The Embassy of Zimbabwe in Washington, DC and Ministry for ICT did not respond to TechCrunch inquiries on the country’s internet and app restrictions.

Court ruling, takeaways

On Monday this week, Zimbabwe’s high court ordered an end to any net restrictions, ruling only the country’s president, not the National Security Minister, could legally block the internet. Econet’s Zimbabwe Chief of Staff Lovemore Nyatsine and sources on the ground confirmed to TechCrunch that net and app access were back up Tuesday.  

Zimbabwe’s internet debacle created yet another obstacle for the country’s tech scene. The 2018 departure of 37–year President Robert Mugabe—a  hero to some and progress impeding dictator to others—sparked hope for the lifting of long-time economic sanctions on Zimbabwe and optimism for its startup scene.

Some of that has been dashed by subsequent political instability and worsening economic conditions since Mugabe’s departure, but not all of it, according to TechZim CEO Tinashe Nyahasha.   

“There was momentum and talk of people coming home and investing seed money. That’s slowed down…but that momentum is still there. It’s just not as fast as it could have been if the government had lived up to the expectations,” he said.  

Of the current macro-environment for Zimbabwe’s tech sector, “The truth is, it’s bad but it has been much worse,” Tinashe said

With calls for continued protests, Monday’s court ruling is likely not the last word on the internet face-off between the government and Zimbabwe’s ISPs and tech community.

Per the ruling, a decision to restrict net or apps will have to come directly from Zimbabwe’s president, who will weigh the pros and cons.

On a case by case basis, African governments may see the economic and reputational costs of internet shutdowns are exceeding whatever benefits they seek to achieve.

Cameroon’s 2017 shutdown, covered here by TechCrunch, cost businesses millions and spurred international condemnation when local activists created a  #BringBackOurInternet campaign that ultimately succeeded.

In the case of Zimbabwe, global internet rights group Access Now sprung to action, attaching its #KeepItOn hashtag to calls for the country’s government to reopen cyberspace soon after digital interference began.

Further attempts to restrict net and app access in Zimbabwe will likely revive what’s become a somewhat ironic cycle for cyber shutdowns. When governments cut off internet and social media access, citizens still find ways to use internet and social media to stop them.

Flutterwave and Visa launch African consumer payment service GetBarter

Jake Bright Contributor Jake Bright is a writer and author in New York City. He is co-author of The Next Africa. More posts by this contributor Harley Davidson reveals more about its push into electric vehicles Venture capital, global expansion, blockchain and drones characterize African tech in 2018 Fintech startup Flutterwave has partnered with Visa to launch […]

Fintech startup Flutterwave has partnered with Visa to launch a consumer payment product for Africa called GetBarter.

The app based offering is aimed at facilitating personal and small merchant payments within countries and across Africa’s national borders. Existing Visa card holders can send and receive funds at home or internationally on GetBarter.

The product also lets non card-holders (those with accounts or mobile wallets on other platforms) create a virtual Visa card to link to the app.  A Visa spokesperson confirmed the product partnership.

GetBarter allows Flutterwave—which has scaled as a payment gateway for big companies through its Rave product—to pivot to African consumers and traders.

Rave is B2B, this is more B2B2C since we’re reaching the consumers of our customers,” Flutterwave CEO Olugbenga Agboola—aka GB—told TechCrunch.

The app also creates a network for clients on multiple financial platforms, such as Kenyan mobile money service M-Pesa, to make transfers across payment products, national borders, and to shop online.

“The target market is pretty much everyone who has a payment need in Africa. That includes the entire customer base of M-Pesa, the entire bank customer base in Nigeria, mobile money and bank customers in Ghana—pretty much the entire continent,” Agboola said.

Flutterwave and Visa will focus on building a GetBarter user base across mobile money and bank clients in Kenya, Ghana, and South Africa, with plans to grow across the continent and reach those off the financial grid.

“In phase one we’ll pursue those who are banked. In phase-two we’ll continue toward those who are unbanked who will be able to use agents to work with GetBarter,” Agboola said.

Flutterwave and Visa will generate revenue through fees from financial institutions on cards created and on fees per transaction. A GetBarter charge for a payment in Nigeria is roughly 40 Naira, or 11 cents, according to Agboola.

With this week’s launch users can download the app for Apple and Android devices and for use on WhatsApp and USSD.

Founded in 2016, Flutterwave has positioned itself as a global B2B payments solutions platform for companies in Africa to pay other companies on the continent and abroad. It allows clients to tap its APIs and work with Flutterwave developers to customize payments applications. Existing customers include Uber, Facebook, Booking.com, and African e-commerce unicorn Jumia.com.

Flutterwave has processed 100 million transactions worth $2.6 billion since inception, according to company data.

The company has raised $20 million from investors including Greycroft, Green Visor Capital, Mastercard, and Visa.

In 2018, Flutterwave was one of several African fintech companies to announce significant VC investment and cross-border expansion—see Paga, Yoco, Cellulant, Mines.ie, and  Jumo.

Flutterwave added operations in Uganda in June and raised a $10 million Series A round in October that saw former Visa CEO Joe Saunders join its board of directors.

The company also plugged into ledger activity in 2018, becoming a payment processing partner to the Ripple and Stellar blockchain networks.

Flutterwave hasn’t yet released revenue or profitability info, according to CEO Olugbenga Agboola.

Headquartered in San Francisco, with its largest operations center in Nigeria, the startup plans to add operations centers to South Africa and Cameroon, which will also become new markets for GetBarter.