TC Weekender: Nigeria limits cash withdrawals – TechCabal

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This week, the Nigerian government takes another stab at pushing the cashless economy agenda by imposing limits of individual and corporate cash withdrawals. Will it work, or is this another ill-advised move? Let’s wait to find out. In other news, the Central Bank of Kenya reinstates charges on mobile money transactions, Chipper lays off staff, the Nigerian government is also looking to tax cryptocurrencies, and Aruwa Capital closes a record-setting $20 million fund. These and more are in this edition of the Weekender.
Pamela Tetteh Editor, TechCabal.
The Central Bank of Nigeria (CBN) has announced limits to all cash withdrawals by individuals and corporate organisations at ₦100,000 ($225) and ₦500,000 ($1,124), respectively, every week. Processing costs of 5% and 10%, respectively, will be applied to any cash withdrawals above the specified limits.
The Central Bank of Kenya (CBK) eliminated the fees during the COVID-19 pandemic to encourage the usage of mobile money. The fees are back now, but they are much lower than they were before the pandemic.
The Nigerian government announced that if its proposed Finance Bill 2022 is approved, it will start taxing digital assets in 2023. Despite its rocky relationship with cryptocurrencies, the Finance Ministry did not exempt cryptocurrencies from being taxable digital assets.
At least 3.5 million Kenyans have applied for loans from the $410 million Hustler Fund but the project has raised data privacy concerns. For example, when registering for a loan, the applicant has to provide their M-Pesa PIN, but isn’t given the option to withhold consent for the use of this PIN.
Cross-border payments company, Chipper Cash has laid off over 50 employees across multiple departments. This news comes a few weeks after it announced its acquisition of Zambian fintech company, Zoona.
If you missed the broadcast on CNBC Africa, you can catch it here.
Weeks after abruptly letting go a handful of employees, mobility startup Moove has secured $30 million in debt funding from an Islamic bond. This is the fifth raise Moove has had this year.
Kenyan social commerce startup Kapu, led by the former CEO of Jumia Kenya, Sam Chappette, announced an $8 million seed funding round. Kapu, which means “large basket,” wants to help Kenyans get more food for less.
Sky.Garden announced that they would no longer have to shut down because they had found a buyer. This week, the Kenyan ecommerce startup announced that it was acquired by the Buy Now, Pay Later (BNPL) company, Lipa Later.
Orange has launched a digital centre for the development of digital skills and innovation in Guinea. This is its 13th digital centre in Africa and the Middle East, and it includes a coding school, a digital manufacturing workshop called a FabLab, and an Orange Fab start-up accelerator.
Aruwa Capital, a female-founded early-stage growth equity fund, announced the successful close of its first institutional fund, exceeding its $20 million target. This makes Adesuwa Okunbo Rhodes, the 32-year-old founder, the youngest solo general partner to raise a $20 million fund in Nigeria successfully.
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Written by: Ngozi Chukwu
Edited by: Pamela Tetteh
18, Nnobi Street, Surulere, Lagos, Nigeria
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