That’s all for today’s roundup. Stay tuned for more tech news and updates from Techpoint!
Until next time,
Victoria
about Facebook’s potential return to Uganda after a 4-year ban, the brewing conflict between Genghis Capital and Safaricom over the launch of Ziidi, and the struggles faced by Mecho Autotech in Nigeria.
Facebook’s Comeback in Uganda after a 4-Year Ban
Facebook, now known as Meta, is poised to make a comeback in Uganda after a four-year ban imposed by the government. The ban was initiated in 2021 following allegations of political interference during the presidential elections. Facebook’s decision to remove fake government-linked accounts led to the ban, resulting in a digital blackout that disrupted personal and business interactions.
With around 2.5 million Ugandans using the platform, Facebook’s return in December 2024 could have significant implications. The Uganda Revenue Authority stands to benefit financially, while businesses, especially small ones, could leverage digital marketing more affordably. Additionally, Ugandans would be able to reconnect with friends and family and engage globally.
However, concerns remain about potential government restrictions or censorship and Facebook’s past privacy issues. Ugandans are advised to proceed with caution, advocate for transparency, and advocate for robust regulations to safeguard their rights.
Genghis Capital vs. Safaricom: The Fight over Ziidi
A conflict has erupted between Genghis Capital, an investment bank, and Safaricom over the launch of Ziidi, Safaricom’s new money market fund in Kenya. The dispute stems from Safaricom’s alleged delay in rolling out Mali, a money market fund developed in partnership with Genghis. Instead, Safaricom launched Ziidi with other third parties, breaching their agreement and eroding trust.
Genghis accused Safaricom of unethical practices, including violating privacy laws by migrating Mali customers to Ziidi without consent. Despite the drama, Mali has seen success, ranking as Kenya’s 17th-largest collective investment scheme by September 2024. Safaricom’s push to expand its investment offerings through M-Pesa underscores the competitiveness of Kenya’s wealth management sector.
Mecho Autotech Lays Off Employees
Nigerian company Mecho Autotech, which provides vehicle repair and maintenance services, has reportedly laid off several employees due to economic challenges. The company, founded in 2021, faced difficulties amid Nigeria’s high inflation and foreign exchange volatility, impacting its business model reliant on imported parts.
Internal issues, including delayed salaries, power cuts, and key resignations, have further strained Mecho’s operations. The failure to launch an anticipated app aimed at streamlining operations and offering inventory financing has raised doubts about the company’s execution capabilities.
Mecho’s struggles reflect broader challenges in Nigeria’s startup ecosystem, where economic instability poses risks for businesses reliant on imported goods. As the economic climate remains uncertain, startups must adapt quickly to survive in a challenging environment.
That concludes today’s tech news highlights. Stay updated with Techpoint for more industry insights and updates.
Until next time,
Victoria
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Enjoy your Christmas and happy reading!
Victoria Fakiya for Techpoint Africa.
