Netflix is reducing its traffic on ISPs by 25% in India

Netflix said on Tuesday that it is lowering its traffic on network providers by 25% in India for a period of 30 days, following a similar move in Europe in a bid to reduce the congestion on internet pipelines.

The American giant said that despite lowering the strain it puts on internet service providers, it will “maintain the quality” of its service. Amazon Prime Video said it has also started to lower the data consumption that streaming takes up on its platform, while local services Disney’s Hotstar, Times Internet’s MX Player and Zee5 say they are working to enforce similar measures.

Vijay Venkataramanan, Director of Post-Production at Netflix India, offers clarity on how reducing the traffic would impact the quality of video streams.

“Given the crisis, we’ve developed a way to reduce Netflix’s traffic on telecommunications networks by 25% while also maintaining the quality of our service. So consumers should continue to get the quality that comes with their plan – whether it’s Ultra-High, High or Standard Definition. We believe that this will provide significant relief to congested networks and will be deploying it in India for the next 30 days,” Ken Florance, VP Content Delivery of Netflix, said in a statement to TechCrunch.

TechCrunch understands that Netflix, which maintains several different streams for a single title, is removing the highest bandwidth streams as part of this move. This won’t affect most Netflix subscribers in India.

The mobile-only plan that Netflix introduced in India last year is its most popular tier in the country, a person familiar with the matter said. Both mobile-only plan and the basic plan, the immediate advanced tier above it, offer limit streaming in standard definition.

Netflix’s announcement follows a local telecom group’s (Cellular Operators Association of India) appeal to on-demand video streaming services to put less burden on internet pipelines that are facing surge in usage as more people stay and work from home in the wake of coronavirus outbreak.

A report by Bank of America, obtained by TechCrunch, said this week that internet service providers in India were witnessing a 10% surge in the volume of daily traffic and data consumption. The firm analyzed traffic at internet exchanges and spoke with internet service providers to reach that conclusion, it said in the report.

Google and Facebook turn their backs on undersea cable to China

Google and Facebook seem to have resigned themselves to losing part of the longest and highest profile internet cable they have invested in to date. In a filing with the Federal Communications Commission last week, the two companies requested permission to activate the Pacific Light Cable Network (PLCN) between the US and the Philippines and Taiwan, leaving its controversial Hong Kong and Chinese sections dormant.

Globally, around 380 submarine cables carry over 99.5 percent of all transoceanic data traffic. Every time you visit a foreign website or send an email abroad, you are using a fiber-optic cable on the seabed. Satellites, even large planned networks like SpaceX’s Starlink system, cannot move data as quickly and cheaply as underwater cables.

When it was announced in 2017, the 13,000-kilometer PLCN was touted as the first subsea cable directly connecting Hong Kong and the United States, allowing Google and Facebook to connect speedily and securely with data centers in Asia and unlock new markets. The 120 terabit-per-second cable was due to begin commercial operation in the summer of 2018. 

“PLCN will help connect US businesses and internet users with a strong and growing internet community in Asia,” they wrote. “PLCN will interconnect … with many of the existing and planned regional and international cables, thus providing additional transmission options in the event of disruptions to other systems, whether natural or manmade.”

Instead, it has been PLCN itself that has been disrupted, by an ongoing regulatory battle in the US that has become politicized by trade and technology spats with China.

Team Telecom, a shadowy US national security unit comprised of representatives from the departments of Defense, Homeland Security, and Justice (including the FBI), is tasked with protecting America’s telecommunications systems, including international fiber optic cables. Its regulatory processes can be tortuously slow. Team Telecom took nearly seven years to decide whether to allow China Mobile, a state-owned company, access to the US telecoms market, before coming down against it in 2018 on the grounds of “substantial and serious national security and law enforcement risks.”

Although subsidiaries of Google and Facebook have been the public face of PLCN in filings to the FCC, four of the six fiber-optic pairs in the cable actually belong to a company called Pacific Light Data Communication (PLDC). When the project was first planned, PLDC was controlled by Wei Junkang, a Hong Kong businessman who had made his fortune in steel and real estate.

“It is just one of those moments where it is more difficult to land a cable, no matter who the Chinese partner is, because of the political situation.” – NYU professor Nicole Starosielski

In December 2017, Wei sold most of his stake in PLDC to Dr Peng Telecom & Media Group, a private broadband provider based in Beijing. That sent alarm bells ringing in Washington, according to a report in the Wall Street Journal last year. While Dr Peng is not itself state-owned or controlled, it works closely with Huawei, a telecoms company the Trump administration has accused of espionage and trade secret theft. Dr Peng has also worked on Chinese government projects, including a surveillance network for the Beijing police.  

PLCN has been legal limbo ever since, with Google complaining bitterly to the FCC about the expense of the ongoing uncertainty. In 2018, it wrote, “[any further holdup] would impose significant economic costs. Depending on the length of the delay, the financial viability of the project could be at risk.”

Google and Facebook finally secured special permission to lay the cable in US waters last year, and to construct, connect and temporarily test a cable landing station in Los Angeles. But while the network itself is now essentially complete, Team Telecom has yet to make a decision on whether data can start to flow through it. 

In the past, Team Telecom has permitted submarine cables, even from China, to land in the US, as long as the companies operating them signed what are called network security agreements. These agreements typically require network operations to be based in the US, using an approved list of equipment and staffed by security-screened personnel. Operators are obliged to block security threats from foreign powers, while complying with lawful surveillance requests from the US government.

In 2017, for example, Team Telecom gave the green light to the New Cross Pacific (NCP) cable directly connecting China and the US, despite it being part-owned by China Mobile, the state-owned company it later denied US access to on national security grounds.

“Normally there wouldn’t be so much fuss over a cable to China,” says Nicole Starosielski, a professor at New York University and author of The Undersea Network. “We’ve had cables to China for a long time and all of these networks interconnect, so even if they don’t land directly in China, they’re only a hop away. It is just one of those moments where it is more difficult to land a cable, no matter who the Chinese partner is, because of the political situation.”

In September, Senator Rick Scott (R-FL), who sits on Senate committees for technology, communications and homeland security, sent a letter to FCC Chairman Ajit Pai urging him to block PLCN. “[PLCN] threatens the freedom of Hong Kong and our national security,” wrote Scott. “This project is backed by a Chinese partner, Dr Peng Telecom & Media Group Co., and would ultimately provide a direct link from China into Hong Kong … China has repeatedly shown it cannot be trusted … We cannot allow China expanded access to critical American information, even if funded by US companies.”

Google and Facebook saw the writing on the wall. On January 29 last week, representatives from the two companies – but not PLDC – met with FCC officials to propose a new approach. A filing, made the same day, requests permission to operate just the two PLCN fiber pairs owned by the American companies: Google’s link to Taiwan, and Facebook’s to the Philippines. 

“[Google] and [Facebook] are not aware of any national security issues associated with operation of US-Taiwan and US-Philippine segments,” reads the application. “For clarity, the [request] would not authorize any commercial traffic on the PLCN system to or from Hong Kong, nor any operation of the PLCN system by PLDC.”

The filling goes on to describe how each fiber pair has its own terminating equipment, with Google’s and Facebook’s connections arriving at Los Angeles in cages that are inaccessible to the other companies. “PLDC is contractually prohibited from using its participation interest in the system to interfere with the ownership or rights of use of the other parties,” it notes.

Neither company would comment directly on the new filing. A Google spokesperson told TechCrunch, “We have been working through established channels in order to obtain cable landing licenses for various undersea cables, and we will continue to abide by the decisions made by designated agencies in the locations where we operate.” 

A Facebook spokesperson said, “We are continuing to navigate through all the appropriate channels on licensing and permitting for a jointly-owned subsea cable between the US and Asia to provide fast and secure internet access to more people on both continents.”

“I think stripping out the controversial [Hong Kong] link will work,” says Starosielski. “But whenever one of these projects either gets thwarted, it sends a very strong message. If even Google and Facebook can’t get a cable through, there aren’t going to be a ton of other companies advancing new cable systems between the US and China now.”

Ironically, that means that US data to and from China will continue to flow over the NCP cable controlled by China Mobile – the only company that Team Telecom and the FCC have ever turned down on national security grounds.

Cloudflare is giving away its security tools to US political campaigns

Network security giant Cloudflare said it will provide its free security tools and services to U.S. political campaigns, as part of its efforts to secure upcoming elections against cyberattacks and election interference.

The company said its new Cloudflare for Campaigns offering will include distributed denial-of-service attack mitigation, load balancing for campaign websites, a website firewall, and anti-bot protections.

It’s an expansion of the company’s security offering for journalists, civil rights activists and humanitarian groups under its Project Galileo, which aims to protect against disruptive cyberattacks. The project later expanded to smaller state and local government sites in 2018, with an aim of protecting servers containing voter registration data and other election infrastructure from attacks.

Now the company is offering its security services to 11 of the 17 presidential campaigns, it said, but wants to ensure that its offering is “available to the largest campaigns are also available to smaller campaigns as well.”

Cloudflare’s co-founder and chief executive Matthew Prince said there was a “clear need” to help campaigns secure not only their public facing websites but also their internal data security.

The company said it’s working with the non-partisan, non-profit organization Defending Digital Campaigns to provide its services to campaigns. Last year the Federal Elections Commission changed the rules to allow political campaigns to receive discounted cybersecurity assistance, which was previously a campaign finance violation.

Into Africa: tech leaders weigh in on Jack Dorsey’s planned move to the continent

It’s not every day that the CEO of a large Silicon Valley tech company decides to relocate to a different part of the world in order to learn more about it — particularly a frequently maligned and often overlooked by big-business part.

But Jack Dorsey, the American tech entrepreneur who co-founded and leads not one, but two publicly listed companies (Twitter and Square) is not your typical CEO. Dressed down, bearded, often wearing a wooly hat and speaking in a slow, quiet voice, you might even call Dorsey the anti-CEO. He eschews many of the stereotypical trappings of the executive life and mannerisms in favor of taking silent retreats and traveling to countries like Burma.

In November 2019, Dorsey’s itchy feet took him to Africa, where he visited Nigeria, Ghana, South Africa and Ethiopia on a listening tour. He had meetings at incubators in Lagos and Addis Ababa; and talked to a number of African tech-leaders, including Tayo Oviosu, the CEO of Nigerian payments startup Paga; and Yeli Bademosi, the director of Binance Labs.

And before he departed back for the US, he did something more: he announced that he would return in 2020 to live somewhere on the continent for up to six months.

“Africa will define the future (especially the bitcoin one!). Not sure where yet, but I’ll be living here for 3-6 months mid 2020,” he Tweeted from Ethiopia.

Why Africa?

And where? And when? If you have ever spoken to Dorsey — or more likely read an interview with him — you’ll note that the he can be somewhat oblique. It’s rare that he gives straight answers to straight questions, even if he always responds with something.

So when spokespeople from both Twitter and Square declined to comment on what his plans will be and if they will relate to those two companies, it might be just as likely that they don’t want to disclose anything as they don’t actually know.

But one thing is clear: Africa’s 54 countries and 1.2 billion people is one of the last blue oceans for global tech growth (one that not only Dorsey has identified).

To that end, TechCrunch talked to several people from Africa’s tech world to get their thoughts on what he could do, and what bears remembering as the world follows Dorsey’s spotlight.

The state of the market

When you look at year-over-year expansion in VC investment in the region, startup formation and incubators, the African continent is one of the fastest-growing technology markets in the world — even if today, by monetary value, it’s tiny by Shenzhen or Silicon Valley standards.

Three of the top destination countries for startup investment — Kenya, Nigeria and South Africa — collectively surpassed $1 billion in investment for the first time in 2018, with fintech businesses currently receiving the bulk of the capital and dealflow, according to Partech and WeeTracker stats.

By most accounts, Dorsey’s first foot forward last November was to make himself a student of the continent’s innovation scene — but specifically as it relates to fintech (and by association, his affiliation with Square and latterly Bitcoin).

“It was more them listening than anything else. Not just Jack, but the other senior members of his team,” CcHub’s CEO Bosun Tijani said of Dorsey’s meetings at the incubator.

After acquiring Kenya’s iHub, CcHub is the largest incubator in Africa. Other members of Dorsey’s team who joined him there included Twitter CTO Parag Agrawal and Product Lead Kayvon Beykpour.

“[Dorsey] said the main reason [he was in Ethiopia and Africa] was to listen and to learn what’s going on in the region,” said Ice Addis’ Markos Lemma .

Jack Dorsey CcHub Bosun Tijani Damilola Teidi

Dorsey with CcHub’s Bosun Tijani and Damilola Teidi

Over recent years, Nigeria has become Africa’s leader in startup formation, VC, and the entry of big tech players, such as Facebook — which opened an incubator in Lagos in 2018.

Since 2014, the country of 200 million has held the dual distinction as Africa’s most populous nation and largest economy. This makes it a compelling market for fintech and social media apps.

Twitter in Africa, according to sources, was less of a topic during Jack Dorsey’s meetings with founders and techies. This makes some sense. The service has lower penetration in the region estimated at 7.46%, higher than Instagram but lower than Pinterest — and that essentially means that the business opportunities there are fewer, since the majority of Twitter’s revenues comes from advertising.

“The only concrete thing in all this communication…is he seems to be interested in Bitcoin,” said Tijani.

Markos Lemma had the same takeaway after talking with Dorsey. “I think he’s specifically interested in Bitcoin,” he said.

Crypto

Dorsey’s crypto focus in Africa isn’t such a surprise, given his bullish stance on Bitcoin and blockchain-based technology.

In October, he invested $10 million in CoinList, a startup that facilities and manages token sales. And rather than create its own cryptocurrency, like Facebook’s Libra experiment, Square is using Bitcoin as the basis for its digital-currency strategy. The company added Bitcoin trades to CashApp, its P2P payment and investment product, in 2018 and its Square Crypto effort announced this year aims to “support and promote Bitcoin” through open source development.

A recent interview with Australia’s Financial Review could offer further insight into Dorsey’s crypto Africa vision.

“I think the internet will have a native currency and anything we can do to make that happen we’ll do,” he said in reference to Square’s moves.

“In the long term it will help us be more and more like an internet company where we can launch a product…and the whole world can use it, instead of having to go from market to market, to bank to bank to bank and from regulatory body to regulatory body.”

Square Bitcoin

What Dorsey is describing, in part, is the primary use case for cryptocurrency in Africa — where there remain all kinds of inefficiencies around moving money. The continent’s people pay the highest remittance costs in the world largely due to fragmented (and often inadequate) financial infrastructure and expensive cross-border transaction costs.

By several estimates, Africa is also home to the largest share of the world’s banked and underbanked consumer and SME populations.

Roughly 66% of Sub-Saharan Africa’s 1 billion people don’t have a bank account, according to World Bank data.

There are hundreds of payments startups across the region looking to move that needle by getting these people on the financial map — and more opportunistically, getting them to use their products.

To be fair, the adoption of digital finance products, such as M-Pesa in Kenya, have succeeded in reaching tens of millions.

A characteristic of successful African fintech products, however, is that their use has been geographically segregated, with few apps able to scale widely across borders. Some of that relates to vastly different regulatory structures and the difficulty in shaping product-market-fit from country to country.

Cryptocurrency’s potential to bypass inefficient or deficient finance structures has been getting attention in Africa.

The last two years saw several ICOs on the continent. One of the largest coin offerings ($7 million) was in 2018 by SureRemit — a startup that launched a crypto-token aimed at Africa’s incoming and intra-country remittance markets.

SureRemit’s CEO, Adeoye Ojo, sees the relevance and timing of Jack Dorsey’s interest in cryptocurrencies on the continent.

“Right now a lot of people and governments in Africa are aware of blockchain and cryptocurrencies, compared to two years ago, and asking questions about how this can be leveraged; what kind of products can we build around this,” Ojo told TechCrunch.

Bitcoin, according to Ojo, is finding utility on the continent. “It has helped people with value transfer significantly. A lot of businesses trying to make payments outside Nigeria…frustrated with access to forex or access to USD, are leveraging Bitcoin to make payments directly to vendors or suppliers in Asia and Europe,” he said.

On business motivations for Dorsey’s move to Africa, “I think he is definitely looking at the opportunity to get more people to adopt payments on Bitcoin, buying Bitcoin with Square here,” Ojo said — based on the collective information he’s followed re Dorsey’s crypto motives and what emerged from Jack’s recent trip. 

Square has yet to launch any services in Africa, but if there is a business purpose to Dorsey’s residency, one could be considering how and if the company has scope for building out services in the region, specifically one based around cryptocurrency.

SureRemit CEO Adeoye Ojo believes Dorsey could also look to establish a unique African Bitcoin exchange.

But Ojo underscored the specific hurdles to cryptocurrency adoption on the continent. The first is regulation. Regulatory reviews on digital-currency use are ongoing in major economies Nigeria and Kenya. South Africa’s Central Bank is considering rules that would limit use of cryptocurrencies for foreign transfers.

“Even if the application for crypto works here, if the regulations that come forward don’t support it, it won’t happen,” said Ojo.

As with other parts of the world, Africa also faces a trust issue on digital currency adoption, he added, due to Bitcoin’s implication in several scams — most notably to defraud millions of Nigerians in the Mavrodi Mundial Moneybox (MMM) ponzi scheme.

“For many Nigerians, their first introduction to Bitcoin was this MMM scam…People have been adopting  mobile money in Africa, but it’s gonna take a bit of market education for them to understand using Bitcoin isn’t just some scam,” he said.

Advice for Dorsey

On where Dorsey should spend time on his return, Cellulant CEO Ken Njoroge, thinks Kenya is a must, given its lead as one of the top countries in the world for mobile-money adoption.

“Coming to live in the ecosystem is a good thing…it’s the best way to really understand…and get the nuances of business in Africa,” he said.

Cellulant CEO Ken Njoroge

Njoroge, whose Nairobi-based fintech company processes payments in 35 African countries, also suggested Dorsey understand any tech play in Africa requires a long-game commitment, given the infrastructure challenges in the ecosystem compared to others.

On that topic, Ice Addis co-founder Markos Lemma suggested Dorsey provide founders advice on operating around and influencing tech-regulation. “He’s had a lot experience navigating the U.S. and other markets with Twitter and Square. I don’t know any entrepreneur in Ethiopia or other African markets who has that experience navigating and negotiating regulations,” he said.

For all the likelihood Dorsey’s pending move could be motivated by Square and Bitcoin, three of the founders interviewed by TechCrunch — Bosun Tijani, Ken Njoroge, and Markos Lemma — underscored the rise of Twitter in Africa’s civic and political spheres.

Square doesn’t operate in Africa but Twitter is the fourth most used social media app on the continent and sells ads in Africa through partner, Ad Dynamo, a Twitter spokesperson confirmed.

Social Media Stats 2019 Africa“Twitter is quite powerful in Nigeria,” CcHub’s CEO said of the social media platform in the country, which has been plagued by theft of state resources in the hundreds of billions.

“It’s not just a social media platform for Nigeria. It’s changing the dynamics between people with power and those that they’re meant to serve,” Tijani explained.

Twitter (along with Facebook) has also been implicated in Africa’s first (notable) social media political interference campaigns.

“There’s a lot of hate speech and misinformation that’s been showing up on social media,” said Ice Addis’ Markos Lemma. “With [Ethiopia’s] 2020 elections on the horizon, I think it would be important for him to address how Twitter can mitigate that risk.”

Dorsey has faced flak from some analysts and Twitter board members for his planned move outside the U.S., given risks associated with Twitter and the upcoming American election.

So Dorsey’s 2020 Africa move could certainly uncover opportunities for cryptocurrency and Square on the continent.

It could also become a reminder that wherever he travels so too do the complications of his social media company back home.

Into Africa: tech leaders weigh in on Jack Dorsey’s planned move to the continent

It’s not every day that the CEO of a large Silicon Valley tech company decides to relocate to a different part of the world in order to learn more about it — particularly a frequently maligned and often overlooked by big-business part.

But Jack Dorsey, the American tech entrepreneur who co-founded and leads not one, but two publicly listed companies (Twitter and Square) is not your typical CEO. Dressed down, bearded, often wearing a wooly hat and speaking in a slow, quiet voice, you might even call Dorsey the anti-CEO. He eschews many of the stereotypical trappings of the executive life and mannerisms in favor of taking silent retreats and traveling to countries like Burma.

In November 2019, Dorsey’s itchy feet took him to Africa, where he visited Nigeria, Ghana, South Africa and Ethiopia on a listening tour. He had meetings at incubators in Lagos and Addis Ababa; and talked to a number of African tech-leaders, including Tayo Oviosu, the CEO of Nigerian payments startup Paga; and Yeli Bademosi, the director of Binance Labs.

And before he departed back for the US, he did something more: he announced that he would return in 2020 to live somewhere on the continent for up to six months.

“Africa will define the future (especially the bitcoin one!). Not sure where yet, but I’ll be living here for 3-6 months mid 2020,” he Tweeted from Ethiopia.

Why Africa?

And where? And when? If you have ever spoken to Dorsey — or more likely read an interview with him — you’ll note that the he can be somewhat oblique. It’s rare that he gives straight answers to straight questions, even if he always responds with something.

So when spokespeople from both Twitter and Square declined to comment on what his plans will be and if they will relate to those two companies, it might be just as likely that they don’t want to disclose anything as they don’t actually know.

But one thing is clear: Africa’s 54 countries and 1.2 billion people is one of the last blue oceans for global tech growth (one that not only Dorsey has identified).

To that end, TechCrunch talked to several people from Africa’s tech world to get their thoughts on what he could do, and what bears remembering as the world follows Dorsey’s spotlight.

The state of the market

When you look at year-over-year expansion in VC investment in the region, startup formation and incubators, the African continent is one of the fastest-growing technology markets in the world — even if today, by monetary value, it’s tiny by Shenzhen or Silicon Valley standards.

Three of the top destination countries for startup investment — Kenya, Nigeria and South Africa — collectively surpassed $1 billion in investment for the first time in 2018, with fintech businesses currently receiving the bulk of the capital and dealflow, according to Partech and WeeTracker stats.

By most accounts, Dorsey’s first foot forward last November was to make himself a student of the continent’s innovation scene — but specifically as it relates to fintech (and by association, his affiliation with Square and latterly Bitcoin).

“It was more them listening than anything else. Not just Jack, but the other senior members of his team,” CcHub’s CEO Bosun Tijani said of Dorsey’s meetings at the incubator.

After acquiring Kenya’s iHub, CcHub is the largest incubator in Africa. Other members of Dorsey’s team who joined him there included Twitter CTO Parag Agrawal and Product Lead Kayvon Beykpour.

“[Dorsey] said the main reason [he was in Ethiopia and Africa] was to listen and to learn what’s going on in the region,” said Ice Addis’ Markos Lemma .

Jack Dorsey CcHub Bosun Tijani Damilola Teidi

Dorsey with CcHub’s Bosun Tijani and Damilola Teidi

Over recent years, Nigeria has become Africa’s leader in startup formation, VC, and the entry of big tech players, such as Facebook — which opened an incubator in Lagos in 2018.

Since 2014, the country of 200 million has held the dual distinction as Africa’s most populous nation and largest economy. This makes it a compelling market for fintech and social media apps.

Twitter in Africa, according to sources, was less of a topic during Jack Dorsey’s meetings with founders and techies. This makes some sense. The service has lower penetration in the region estimated at 7.46%, higher than Instagram but lower than Pinterest — and that essentially means that the business opportunities there are fewer, since the majority of Twitter’s revenues comes from advertising.

“The only concrete thing in all this communication…is he seems to be interested in Bitcoin,” said Tijani.

Markos Lemma had the same takeaway after talking with Dorsey. “I think he’s specifically interested in Bitcoin,” he said.

Crypto

Dorsey’s crypto focus in Africa isn’t such a surprise, given his bullish stance on Bitcoin and blockchain-based technology.

In October, he invested $10 million in CoinList, a startup that facilities and manages token sales. And rather than create its own cryptocurrency, like Facebook’s Libra experiment, Square is using Bitcoin as the basis for its digital-currency strategy. The company added Bitcoin trades to CashApp, its P2P payment and investment product, in 2018 and its Square Crypto effort announced this year aims to “support and promote Bitcoin” through open source development.

A recent interview with Australia’s Financial Review could offer further insight into Dorsey’s crypto Africa vision.

“I think the internet will have a native currency and anything we can do to make that happen we’ll do,” he said in reference to Square’s moves.

“In the long term it will help us be more and more like an internet company where we can launch a product…and the whole world can use it, instead of having to go from market to market, to bank to bank to bank and from regulatory body to regulatory body.”

Square Bitcoin

What Dorsey is describing, in part, is the primary use case for cryptocurrency in Africa — where there remain all kinds of inefficiencies around moving money. The continent’s people pay the highest remittance costs in the world largely due to fragmented (and often inadequate) financial infrastructure and expensive cross-border transaction costs.

By several estimates, Africa is also home to the largest share of the world’s banked and underbanked consumer and SME populations.

Roughly 66% of Sub-Saharan Africa’s 1 billion people don’t have a bank account, according to World Bank data.

There are hundreds of payments startups across the region looking to move that needle by getting these people on the financial map — and more opportunistically, getting them to use their products.

To be fair, the adoption of digital finance products, such as M-Pesa in Kenya, have succeeded in reaching tens of millions.

A characteristic of successful African fintech products, however, is that their use has been geographically segregated, with few apps able to scale widely across borders. Some of that relates to vastly different regulatory structures and the difficulty in shaping product-market-fit from country to country.

Cryptocurrency’s potential to bypass inefficient or deficient finance structures has been getting attention in Africa.

The last two years saw several ICOs on the continent. One of the largest coin offerings ($7 million) was in 2018 by SureRemit — a startup that launched a crypto-token aimed at Africa’s incoming and intra-country remittance markets.

SureRemit’s CEO, Adeoye Ojo, sees the relevance and timing of Jack Dorsey’s interest in cryptocurrencies on the continent.

“Right now a lot of people and governments in Africa are aware of blockchain and cryptocurrencies, compared to two years ago, and asking questions about how this can be leveraged; what kind of products can we build around this,” Ojo told TechCrunch.

Bitcoin, according to Ojo, is finding utility on the continent. “It has helped people with value transfer significantly. A lot of businesses trying to make payments outside Nigeria…frustrated with access to forex or access to USD, are leveraging Bitcoin to make payments directly to vendors or suppliers in Asia and Europe,” he said.

On business motivations for Dorsey’s move to Africa, “I think he is definitely looking at the opportunity to get more people to adopt payments on Bitcoin, buying Bitcoin with Square here,” Ojo said — based on the collective information he’s followed re Dorsey’s crypto motives and what emerged from Jack’s recent trip. 

Square has yet to launch any services in Africa, but if there is a business purpose to Dorsey’s residency, one could be considering how and if the company has scope for building out services in the region, specifically one based around cryptocurrency.

SureRemit CEO Adeoye Ojo believes Dorsey could also look to establish a unique African Bitcoin exchange.

But Ojo underscored the specific hurdles to cryptocurrency adoption on the continent. The first is regulation. Regulatory reviews on digital-currency use are ongoing in major economies Nigeria and Kenya. South Africa’s Central Bank is considering rules that would limit use of cryptocurrencies for foreign transfers.

“Even if the application for crypto works here, if the regulations that come forward don’t support it, it won’t happen,” said Ojo.

As with other parts of the world, Africa also faces a trust issue on digital currency adoption, he added, due to Bitcoin’s implication in several scams — most notably to defraud millions of Nigerians in the Mavrodi Mundial Moneybox (MMM) ponzi scheme.

“For many Nigerians, their first introduction to Bitcoin was this MMM scam…People have been adopting  mobile money in Africa, but it’s gonna take a bit of market education for them to understand using Bitcoin isn’t just some scam,” he said.

Advice for Dorsey

On where Dorsey should spend time on his return, Cellulant CEO Ken Njoroge, thinks Kenya is a must, given its lead as one of the top countries in the world for mobile-money adoption.

“Coming to live in the ecosystem is a good thing…it’s the best way to really understand…and get the nuances of business in Africa,” he said.

Cellulant CEO Ken Njoroge

Njoroge, whose Nairobi-based fintech company processes payments in 35 African countries, also suggested Dorsey understand any tech play in Africa requires a long-game commitment, given the infrastructure challenges in the ecosystem compared to others.

On that topic, Ice Addis co-founder Markos Lemma suggested Dorsey provide founders advice on operating around and influencing tech-regulation. “He’s had a lot experience navigating the U.S. and other markets with Twitter and Square. I don’t know any entrepreneur in Ethiopia or other African markets who has that experience navigating and negotiating regulations,” he said.

For all the likelihood Dorsey’s pending move could be motivated by Square and Bitcoin, three of the founders interviewed by TechCrunch — Bosun Tijani, Ken Njoroge, and Markos Lemma — underscored the rise of Twitter in Africa’s civic and political spheres.

Square doesn’t operate in Africa but Twitter is the fourth most used social media app on the continent and sells ads in Africa through partner, Ad Dynamo, a Twitter spokesperson confirmed.

Social Media Stats 2019 Africa“Twitter is quite powerful in Nigeria,” CcHub’s CEO said of the social media platform in the country, which has been plagued by theft of state resources in the hundreds of billions.

“It’s not just a social media platform for Nigeria. It’s changing the dynamics between people with power and those that they’re meant to serve,” Tijani explained.

Twitter (along with Facebook) has also been implicated in Africa’s first (notable) social media political interference campaigns.

“There’s a lot of hate speech and misinformation that’s been showing up on social media,” said Ice Addis’ Markos Lemma. “With [Ethiopia’s] 2020 elections on the horizon, I think it would be important for him to address how Twitter can mitigate that risk.”

Dorsey has faced flak from some analysts and Twitter board members for his planned move outside the U.S., given risks associated with Twitter and the upcoming American election.

So Dorsey’s 2020 Africa move could certainly uncover opportunities for cryptocurrency and Square on the continent.

It could also become a reminder that wherever he travels so too do the complications of his social media company back home.

Jumia, DHL, and Alibaba will face off in African ecommerce 2.0

The business of selling consumer goods and services online is a relatively young endeavor across Africa, but ecommerce is set to boom.

Over the last eight years, the sector has seen its first phase of big VC fundings, startup duels and attrition.

To date, scaling e-commerce in Africa has straddled the line of challenge and opportunity, perhaps more than any other market in the world. Across major African economies, many of the requisites for online retail — internet access, digital payment adoption, and 3PL delivery options — have been severely lacking.

Still, startups jumped into this market for the chance to digitize a share of Africa’s fast growing consumer spending, expected to top $2 billion by 2025.

African e-commerce 2.0 will include some old and new players, play out across more countries, place more priority on internet services, and see the entry of China.

But before highlighting several things to look out for in the future of digital-retail on the continent, a look back is beneficial.

Jumia vs. Konga

The early years for development of African online shopping largely played out in Nigeria (and to some extent South Africa). Anyone who visited Nigeria from 2012 to 2016 likely saw evidence of one of the continent’s early e-commerce showdowns. Nigeria had its own Coke vs. Pepsi-like duel — a race between ventures Konga and Jumia to out-advertise and out-discount each other in a quest to scale online shopping in Africa’s largest economy and most populous nation.

Traveling in Lagos traffic, large billboards for each startup faced off across the skyline, as their delivery motorcycles buzzed between stopped cars.

Covering each company early on, it appeared a battle of VC attrition. The challenge: who could continue to raise enough capital to absorb the losses of simultaneously capturing and creating an e-commerce market in notoriously difficult conditions.

In addition to the aforementioned challenges, Nigeria also had (and continues to have) shoddy electricity.

Both Konga — founded by Nigerian Sim Shagaya — and Jumia — originally founded by two Nigerians and two Frenchman — were forced to burn capital building fulfillment operations most e-commerce startups source to third parties.

That included their own delivery and payment services (KongaPay and JumiaPay). In addition to sales of goods from mobile-phones to diapers, both startups also began experimenting with verticals for internet based services, such as food-delivery and classifieds.

While Jumia and Konga were competing in Nigeria, there was another VC driven race for e-commerce playing out in South Africa — the continent’s second largest and most advanced economy.

E-tailers Takealot and Kalahari had been jockeying for market share since 2011 after raising capital in the hundreds of millions of dollars from investors Naspers and U.S. fund Tiger Global Management.

So how did things turn out in West and Southern Africa? In 2014, the lead investor of a flailing Kalahari — Naspers — facilitated a merger with Takealot (that was more of an acquisition). They nixed the Kalahari brand in 2016 and bought out Takelot’s largest investor, Tiger Global, in 2018. Takealot is now South Africa’s leading e-commerce site by market share, but only operates in one country.

In Nigeria, by 2016 Jumia had outpaced its rival Konga in Alexa ratings (6 vs 14), while out-raising Konga (with backing of Goldman Sachs) to become Africa’s first VC backed, startup unicorn. By early 2018, Konga was purchased in a distressed acquisition and faded away as a competitor to Jumia.

Jumia went on to expand online goods and services verticals into 14 Africa countries (though it recently exited a few) and in April 2019 raised over $200 million in an NYSE IPO — the first on a major exchange for a VC-backed startup operating in Africa.

Jumia’s had bumpy road since going public — losing significant share-value after a short-sell attack earlier in 2019 — but the continent’s leading e-commerce company still has heap of capital and generates $100 million in revenues (even with losses).

2019 Africa Roundup: Jumia IPOs, China goes digital, Nigeria becomes fintech capital

2019 brought more global attention to Africa’s tech scene than perhaps any previous year.

A high profile IPO, visits by both Jacks (Ma and Dorsey), and big Chinese startup investment energized that.

The last 12 months served as a grande finale to 10 years that saw triple digit increases in startup formation and VC on the continent.

Here’s an overview of the 2019 market events that captured attention and capped off a decade of rapid growth in African tech.

IPOs

The story of the year is the April IPO on the NYSE of Pan-African e-commerce company Jumia. This was the first listing of a VC backed tech company operating in Africa on a major global exchange —  which brought its own unpredictability.

Founded in 2012, Jumia pioneered much of its infrastructure to sell goods to consumers online in Africa.

With Nigeria as its base market, the Rocket Internet backed company created accompanying delivery and payments services and went on to expand online verticals into 14 Africa countries (though it recently exited a few). Jumia now sells everything from mobile-phones to diapers and offers online services such as food-delivery and classifieds.

Seven years after its operational launch, Jumia’s stock debut kicked off with fanfare in 2019, only to be followed by volatility.

The online retailer gained investor confidence out of the gate, more than doubling its $14.95 opening share price post IPO.

That lasted until May, when Jumia’s stock came under attack from short-seller Andrew Left,  whose firm Citron Research issued a report accusing the company of fraud. The American activist investor’s case was bolstered, in part, by a debate that played out across Africa’s tech ecosystem on Jumia’s legitimacy as an African startup, given its (primarily) European senior management.

The entire affair was further complicated during Jumia’s second quarter earnings call when the company disclosed a fraud perpetrated by some of its employees and sales agents. Jumia’s CEO Sacha Poignonnec emphasized the matter was closed, financially marginal and not the same as Andrew Left’s short-sell claims.

Whatever the balance, Jumia’s 2019 ups and downs cast a cloud over its stock with investors. Since the company’s third-quarter earnings-call, Jumia’s NYSE share-price has lingered at around $6 — less than half of its original $14.95 opening, and roughly 80% lower than its high.

Even with Jumia’s post-IPO rocky road, the continent’s leading e-commerce company still has heap of capital and is on pace to generate over $100 million in revenues in 2019 (albeit with big losses).

The company plans reduce costs by generating more revenue from higher-margin internet services, such as payments and classifieds.

There’s a fairly simple equation for Jumia to rebuild shareholder confidence in 2020: avoid scandals, increase revenues over losses. And now that the company’s publicly traded — with financial reporting requirements — there’ll be four earnings calls a year to evaluate Jumia’s progress. 

Jumia may not be the continent’s standout IPO for much longer. Events in 2019 point to Interswitch becoming the second African digital company to list on a global exchange in 2020.  The Nigerian fintech firm confirmed to TechCrunch in November it had reached a billion-dollar unicorn valuation, after a (reported) $200 million investment by Visa. 

Founded in 2002 by Mitchell Elegbe, Interswitch created much of the initial infrastructure to digitize Nigeria’s (then) predominantly cash-based economy. Interswitch has been teasing a public listing since 2016, but delayed it for various reasons. With the company’s billion-dollar valuation in 2019, that pause is likely to end.

“An [Interswitch] IPO is still very much in the cards; likely sometime in the first half of 2020,” a source with knowledge of the situation told TechCrunch. 

China-Africa goes digital

2019 was the year when Chinese actors pivoted to African tech. China is known for its strategic relationship with Africa based (largely) on trade and infrastructure. Over the last 10 years, the country has been less engaged in the continent’s digital-scene.

china africa techThat was until a torrent of investment and partnerships this past year.

July saw Chinese-owned Opera raise $50 million in venture spending to support its growing West African digital commercial network, which includes browser, payments and ride-hail services.

In August, San Francisco and Lagos-based fintech startup Flutterwave partnered with Chinese e-commerce company Alibaba’s Alipay to offer digital payments between Africa and China.

In September, China’s Transsion  — the largest smartphone seller in Africa — listed in an IPO on Shanghai’s new STAR Market. The company raised ≈ $394 million, some of which it is directing toward venture funding and operational expansion in Africa.

The last quarter of 2019 brought a November surprise from China in African tech. Over 15 Chinese investors placed over $240 million in three rounds. Transsion backed consumer payments startup PalmPay raised a $40 million seed, stating its goal to become “Africa’s largest financial services platform.”

Chinese investors also backed Opera-owned OPay’s $120 million raise and East-African trucking logistics company Lori Systems’ (reported) $30 million Series B.

In the new year, TechCrunch will continue to cover the business arc of this surge in Chinese tech investment in Africa. There’ll surely be a number of fresh macro news-points to develop, given the debate (and critique) of China’s role in Africa.

Nigeria and fintech

On debate, the case could be made that 2019 was the year when Nigeria become Africa’s unofficial capital for fintech investment and digital finance startups.

Kenya has held this title hereto, with the local success and global acclaim of its M-Pesa mobile-money product. But more founders and VCs are opting for Nigeria as the epicenter for digital finance growth on the continent.Nigeria naira

A rough tally of 2019 TechCrunch coverage — including previously mentioned rounds — pegs fintech related investment in the West African country at around $400 million over the last 12 months. That’s equivalent to roughly one-third of all startup VC raised for the entire continent in 2018, according to Partech stats.

From OPay to PalmPay to Visa — startups, big finance companies and investors are making Nigeria home-base for their digital finance operations and outward expansion in Africa.

The founder of early-stage payment startup ChipperCash, Ham Serunjogi, explained the imperative to operate in the West African country. “Nigeria is the largest economy and most populous country in Africa. Its fintech industry is one of the most advanced in Africa, up there with Kenya  and South Africa,” he told TechCrunch in May.

When all the 2019 VC numbers are counted, it will be worth matching up Nigeria to Kenya to see how the countries compared for fintech specific investment over the last year.

Acquisitions

Tech acquisitions continue to be somewhat rare in Africa, but there were several to note in 2019. Two of the continent’s powerhouse tech incubators joined forces in September, when Nigerian innovation center and seed-fund CcHub acquired Nairobi based iHub, for an undisclosed amount.

CChub ihub Acquisition

The acquisition brought together Africa’s most powerful tech hubs by membership networks, volume of programs, startups incubated and global visibility. It also elevated CcHub’s Bosun Tijani standing across Africa’s tech ecosystem, as the CEO of the new joint-entity, which also has a VC arm.

CcHub CEO Bosun Tijani1

CcHub/iHub CEO Bosun Tijani

In other acquisition activity, French television company Canal+ acquired the ROK film studio from Nigerian VOD company IROKOtv, for an undisclosed amount. The deal put ROK founder and producer Mary Njoku in charge of a new organization with larger scope and resources.

Many outside Africa aren’t aware that Nigeria’s Nollywood is the Hollywood of the continent and one of the largest film industries (by production volume) in the world. Canal+ told TechCrunch it looks to bring Mary and the Nollywood production ethos to produce content in French speaking African countries.

Other notable 2019 African tech takeovers included Kenyan internet company BRCK’s acquisition of internet provider Surf, Nigerian digital-lending startup OneFi’s Amplify buy and Merck KGaa’s purchase of Kenya-based online healthtech company ConnectMed.

Moto ride-hail mania

In 2019, Africa’s motorcycle ride-hail market — worth an estimated $4 billion — saw a flurry of investment and expansion by startups looking to scale on-demand taxi services. Uber and Bolt got into the motorcycle taxi business in Africa in 2018.

Ampersand Africa e motorcycle

Ampersand in Rwanda

A number of local and foreign startups have continued to grow in key countries, such as Nigeria, Uganda and Kenya.

A battle for funding and market-share emerged in Nigeria in 2019, between key moto ride-hail startups Max.ng, Gokada, and Opera owned ORide.

The on-demand motorcycle market in Africa has attracted foreign investment and moved toward EV development. In May, MAX.ng raised a $7 million Series A round with participation from Yamaha and is using a portion to pilot renewable energy powered e-motorcycles in Africa.

In August, the government of Rwanda announced a national policy to phase out gas-motorcycle taxis altogether in favor of e-motos, in partnership with early-stage EV startup Ampersand.

New funds

The year 2019 saw several new funding initiatives for Africa’s startups. Senegalese VC investor Marieme Diop helped spearhead Dakar Network Angels, a seed-fund for startups in French-speaking Africa — or 24 of the continent’s 54 countries.

Africinvest teamed up with Cathay Innovation to announce the Cathay Africinvest Innovation Fund, a $100+ million capital pool aimed at Series A to C-stage startup investments in fintech, logistics, AI, agtech and edutech.

Accion Venture Lab launched a $24 million fintech fund open to African startups.

And Naspers offered more details on who can pitch to its 1.4 billion rand (≈$100 million) Naspers Foundry fund and made its first investment in online cleaning services company SweepSouth.

Closed up shop

Like any tech ecosystem, not every startup in Africa killed it or even continued to tread water in 2019. Two e-commerce companies — DealDey in Nigeria and Afrimarket in Ivory Coast — closed up digital shop.

Southern Africa’s Econet Media shut down its Kwese TV digital entertainment business in August.

And South Africa based, Pan-African focused cryptocurrency payment startup Wala ceased operations in June. Founder Tricia Martinez named the continent’s poor infrastructure as one of the culprits to shutting down. A possible signal to the startup’s demise could have been its 2017 ICO, where Wala netted only 4% of its $30 million token-offering.

Africa’s startups go global

2019 saw more startups expand products and business models developed in Africa to new markets abroad. In March, Flexclub — a South African venture that matches investors and drivers to cars for ride-hailing services — announced its expansion to Mexico in a partnership with Uber.

In May, ExtraCrunch profiled three African founded fintech startups — Flutterwave, Migo and ChipperCash — developing their business models strategically in Africa toward plans to offer their products in other regions.

By December, Migo (formerly branded Mines) had announced its expansion to Brazil on a $20 million Series B raise.

2020 and beyond

As we look to what could come in the new year and decade for African tech, it’s telling to look back. Ten years ago, there were a lot of “if” questions on whether the continent’s ecosystem could produce certain events: billion dollar startup valuations, IPOs on major exchanges, global expansion, investment from the world’s top VCs.

All those questionable events of the past have become reality in African tech, even if some of them are still in low abundance.

There’s no crystal ball for any innovation ecosystem — not the least Africa’s — but there are several things I’ll be on the lookout for in 2020 and beyond.

Two In the near term, start with what Twitter/Square CEO Jack Dorsey may do around Bitcoin and cryptocurrency on his return to Africa (lookout for an upcoming TechCrunch feature on this).

I’ll also follow the next-phase of e-commerce in Africa, which could pit Jumia more competitively against DHL’s Africa eShop, Opera and China’s Alibaba (which hasn’t yet entered Africa in full).

On a longer-term basis, a development to follow is how the continent’s first wave of millionaire and billionaire tech-founders could disrupt dynamics around politics, power, and philanthropy in Africa —  hopefully for the better.

More notable 2019 Africa-related coverage @TechCrunch

Why CEOs should spend up to half their time recruiting

Hiring the right people may be the most important thing you do when you start a new company. But how much time should founders spend on hiring when there are so many other competing demands?

Last week, we discussed team-building and several other issues during a panel on the Extra Crunch stage at Disrupt Berlin with Cloudflare CEO Matthew Prince and Red Points CEO Laura Urquizu.

“I was looking through early emails the other day,” said Prince . “I had forgotten how hard it was to hire people in the very beginning. I think that [Cloudflare co-founder] Michelle [Zatlyn] and I spent probably at least 70% of our time in the first two years just begging people to work for us.”

While it’s a hard job to get right, Prince said he didn’t believe that this was a job he should have outsourced to recruiters. “Fundamentally, as the founder and leader of an organization, your job is to attract and retain the best best possible people,” Prince argued. “And so even to this day, at least a third of my time is spent on recruiting.”

Red Points co-founder Urquizu agreed, noting that she also spends at least a third of her time on recruiting. But she also argued that as you grow as a company, your needs may change and you may need to let some people go.

“I usually say that what brought us here is not going to bring us to the next stage — and that includes people,” she said. “It’s not pleasant and it is very hard when you have to say ‘bye’ to people that have been with you in the journey for two years, or for one year, or three years, but then you need to find the next people that are gonna come along with you in the next stage.”

NordVPN confirms it was hacked

NordVPN, a virtual private network provider that promises to “protect your privacy online,” has confirmed it was hacked.

The admission comes following rumors that the company had been breached. It first emerged that NordVPN had an expired internal private keys exposed, potentially allowing anyone to spin out their own servers imitating NordVPN.

VPN providers are increasingly popular as they ostensibly provide privacy from your internet provider and visiting sites about your internet browsing traffic. That’s why journalists and activists often use these services, particularly when they’re working in hostile states. These providers channel all of your internet traffic through one encrypted pipe, making it more difficult for anyone on the internet to see which sites you are visiting or which apps you are using. But often that means displacing your browsing history from your internet provider to your VPN provider. That’s left many providers open to scrutiny, as often it’s not clear if each provider is logging every site a user visits.

For its part, NordVPN has claimed a “zero logs” policy. “We don’t track, collect, or share your private data,” the company says.

But the breach is likely to cause alarm that hackers may have been in a position to access some user data.

NordVPN told TechCrunch that one of its datacenters was accessed in March 2018. “One of the datacenters in Finland we are renting our servers from was accessed with no authorization,” said NordVPN spokesperson Laura Tyrell.

The attacker gained access to the server — which had been active for about a month — by exploiting an insecure remote management system left by the datacenter provider, which NordVPN said they were unaware that such a system existed.

NordVPN did not name the datacenter provider.

“The server itself did not contain any user activity logs; none of our applications send user-created credentials for authentication, so usernames and passwords couldn’t have been intercepted either,” said the spokesperson. “On the same note, the only possible way to abuse the website traffic was by performing a personalized and complicated man-in-the-middle attack to intercept a single connection that tried to access NordVPN.”

According to the spokesperson, the expired private key could not have been used to decrypt the VPN traffic on any other server.

NordVPN said it found out about the breach a “few months ago,” but the spokesperson said the breach was not disclosed until today because the company wanted to be “100% sure that each component within our infrastructure is secure.”

A senior security researcher we spoke to who reviewed the statement and other published evidence, but asked not to be named as they work for a company that requires authorization to speak to the press, called these findings “troubling.”

“While this is unconfirmed and we await further forensic evidence, this is an indication of a full remote compromise of this provider’s systems,” the security researcher said. “That should be deeply concerning to anyone who uses or promotes these particular services.”

NordVPN said “no other server on our network has been affected.”

But the security researcher warned that NordVPN was ignoring the larger issue of the attacker’s possible access across the network. “Your car was just stolen and taken on a joy ride and you’re quibbling about which buttons were pushed on the radio?” the researcher said.

The company confirmed it had installed intrusion detection systems, a popular technology that companies use to detect early breaches, but “no-one could know about an undisclosed remote management system left by the [datacenter] provider,” said the spokesperson.

It’s also believed several other VPN providers may have been breached around the same time. Similar records posted online — and seen by TechCrunch — suggest that TorGuard and VikingVPN may have also been compromised, but spokespeople did not return a request for comment.


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Nigeria’s #StopRobbingUs campaign could spur tech advocacy group, CEOs say

Nigeria’s #StopRobbingUs campaign to curb police harassment of techies could grow into a formal lobbying group for the country’s tech sector, according to founders Bosun Tijani and Jason Njoku.

Tijani, the CEO of Lagos based innovation center CcHub and now Kenya’s iHub, helped spearhead the movement last month in response to detainment and extortion of tech workers by local authorities.

He joined Njoku — CEO of Nollywood VOD venture IROKO — and 29 other Nigerians to release a statement condemning police abuse of the country’s tech workers.

The language called for “an end to the common practice where Nigerian police stop young people with laptops and unlawfully arrest, attack or, in extreme circumstances, kidnap them, forcing them to withdraw funds from their bank accounts in order to regain their freedom.”

The campaign coined the #StopRobbingUs hashtag as a digital rallying point.

The statement went on to say the #StopRobbingUs movement would “consider a Class Action Lawsuit on police brutality.”

Energy for the campaign reached critical mass after Toni Astro, a Lagos-based software engineer, was reportedly beaten, arrested, detained and then extorted out of money by Nigeria’s Special Anti-Robbery Squad [SARS] the last week of September. He tweeted about the ordeal.

Stoprobbingus Nigeria

On the impetus for forming #StopRobbingUs, “We just got tired of [the harassment]. I personally got tired of it, which is why I spoke out and with other people decided to take action,” Tijani told TechCrunch on a call.

He described the shakedown of techies as the best and worst of Nigeria colliding, when it comes to shifting perceptions and stereotypes of the country.

“They’re taking one of the most positive things that’s happening on the continent, but also Nigeria in the last 10 years, and turning it into self-destruction,” Tijani said of the law enforcement maltreatment of tech sector workers.

“It’s a gross abuse of police stop and search…The people that are supposed to protect use are ultimately harassing us and robbing us,” iRoko CEO Jason Njoku said of the profiling and extortion of young Nigerians with laptops and smartphones.

He characterized the theft of laptops as taking away the means for techies to earn a living.

“A lot of people can work around not having a laptop, but if you’re a developer, how do you code without a laptop,” he said.

Njoku, Tijani and members of #StopRobbingUs have been talking to senior members of Nigerian President Muhammadu Buhari’s Enabling Business Environment task force and the Governor of Lagos State — the geographic district in Nigeria where much of the country’s tech activity takes place.

“We’re looking to set up some kind of fund, which does advocacy and…also lines up lawsuits…to force the issue in a more formal way,” said Njoku.

“It’s also an education thing. We’re reaching out to the powers that be, to engage and educate them to find some kind of solution to this.”

Both Njoku and Tijani see the #StopRobbingUs movement as a forerunner to an innovation industry advocacy group in Nigeria to speak to the broader needs of the country’s tech community.

The West African country is home to the continent’s largest economy and largest population of 200 million.

In addition to still being known for large-scale and petty corruption, Nigeria has made strides in improving infrastructure and governance and has one of Africa’s strongest tech scenes.

The country is now a focal point for VC, startup formation, and the entry of big global tech companies in Africa.

“I still see a bright future for fintech and internet companies in Nigeria. I think it makes sense for use to be much more vocal on the things that may or may not make sense to us. Technology, media, and entertainment right now is the hope for a lot of young people in this country,” Njoku said.

He added his company, IROKO, and startups he’s invested in account for roughly 1000 jobs.

“We’ll get to the point where tech will become one of the biggest drivers of employment in this country,” Njoku said.  “It makes sense for us to demand the respect and recognition from government to…do the right thing to give us that fertile ground to keep building these companies.”

CcHub’s Bosun Tijani is in accord with Njoku on the necessity of an tech industry advocacy group in Nigeria.

“We do need a voice at the table, a voice that can contribute to getting what we need from government…and the #StopRobbingUs campaign may be the trigger,” he said.