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Múyìwá Mátùlúkò here
Today we are discussing
- Activation of the Facebook marketplace in Nigeria
- Agrocenta’s $ 790,000 Pre-Series A Round
- Chronic digital debtors in Kenya
Facebook Marketplace finally in Nigeria
Image by Julian Hacker from Pixabay
Facebook has announced the launch of the Facebook Marketplace in Nigeria. Facebook Marketplace is a tool that Facebook users can use to buy and sell anything in their immediate community.
Nigeria will be the 4th African country after South Africa, Ethiopia and Kenya to receive the marketplace since it was launched in 2016.
It didn’t get off to a good start;; In 2016, some early adopters used the Facebook Marketplace to sell guns, sex and illegal drugs. Since then, Facebook has added community standards and guidelines that include age and vintage filters, among others.
But the Facebook marketplace is not a silver bullet for Nigeria’s e-commerce challenge. You can think of this as Jiji or OLX – essentially a classifieds market – with a dash of community elements.
Buyers and sellers are still 100% responsible for verification, security, protection and privacy. Facebook doesn’t even care about payments. So much for the community effect.
Pro tip: 5 red flags that are going to scam you in any online marketplace on OLX. I wrote this almost 7 years ago (at my final father joke) and it’s still valid, even for the Facebook marketplace.
Agrocenta raises $ 790,000 pre-series A.
The Ghanaian agritech startup Agrocenta has raised $ 790,000 in pre-Series A funds with the participation of the Shell Foundation, the FCDO, AV Ventures and the Rabo Foundation.
Founded in 2015Agrocenta operates a mobile trading platform that offers smallholders in Ghana market information, storage and delivery solutions.
According to co-founders Francis Obirikorang and Michael Ocansey, their flagship app, CropChain, which enables trade between smallholders and consumers, has grown rapidly from 3,000 to 48,000 registered farmers. The startup also offers credit and insurance options for smallholders via its LendIt app.
I’m more interested in LendIt Because while agriculture accounts for around 18% of sub-Saharan Africa’s GDP, lending to interest groups accounts for only 1% (World Bank, 2018).
In the past 6 years, many startups have sprung up across Africa to fill this gap. Names like Apollo Agriculture in Kenya and Farmcrowdy in Nigeria come to mind.
You see They see, One of the biggest hurdles in lending to smallholders is the lack of accurate credit profiles. This is further hampered by the remoteness of these farmers, which makes collecting relevant data capital intensive.
So for the immediate futureAgrocenta will focus the new capital injection on doubling its flagship offering.
“Demand for agricultural commodities from buyers in the brewery, manufacturing and consumer sectors is growing exponentially as the COVID-19 restrictions imposed by the Ghanaian government have been eased. Hence, this capital injection will help ensure safe shopping at fair and transparent prices from smallholders – a much-needed lifeline for many who are at the proverbial end of the pyramid, “the founders said in an official statement.
Kenya: Online loan defaults peak at 14 million
Photo credit: Sum_of_Marc Flickr via Compfight cc
WeeTracker reports that the number of non-performing digital loans in Kenya increased 45% to 14,035,718 between August 2020 and January 2021.
Quick context. At the height of the pandemic in April last year, the Central Bank of Kenya (CBK) enacted a 6-month ban on Credit Reference Bureau (CRB) listings, which essentially prevents many digital lenders from blacklisting defaulting borrowers.
The move was primarily aimed at cushioning the economic impact of the government-imposed lockdown. But it was also necessary to tone down public complaints about credit information misuse and other predatory practices similar to Nigeria.
But it seems to have backfired. The ban encouraged more Kenyans to take out multiple loans at an unprecedented price from multiple platforms without fear of being blacklisted. And now more than 14 million Kenyans are in debt and blacklisted, even after an additional 90-day grace period following the ban being lifted.
Bad loans – ie 90 day loan defaults – and related fraud are a continent-wide problem in digital lending. In the last year alone, two different Nigerian startups – Voyance and The Blacklist – launched to address the problem.
For the sake of fairnessMany digital lenders use extremely predatory methods to stay viable. You should read “X-Ray of the Emerging Culture of Predicting Digital Loaning in Nigeria”.
Read / see my weekend
- Why Nigerian Legaltech Insurtech Startups Are Not Automating Estate Planning Yet Read.
- Silicon Valley: The Biggest Ponzi Program in History (Mini Documentation). Clock.
- The fatal mistake of the DTC playbook and the search for internet diamonds. Read.
- Keep in mind: Register for the Digital Currency Summit using this link.
Have a great day!
Celebrate the new year to the Techpoint Africa.
Nigerian startups raised $ 120.6 million in 2020, with fintechs getting a large portion of the share. Please download the report for more information.
On March 25, 2021The best minds in the field of decentralized finance / crypto will be represented at the Digital Currency Summit with the “Techpoint Africa” day.Building the money of the futureClick here for more details, registration and sponsorship. Place: Fourpoint from Sheraton, VI Lagos.
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