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Introduction
Our 57th weekly roundup is lengthy, but well worth your time.
It covers key themes such as a fintech startup acquiring a bank, the launch of an upgraded educational platform, highlights from a university's innovation week, an EdTech accelerator program selecting startups, and a fintech startup meeting revenue and product goals.
Continue reading.
1. Tanzanian Fintech Startup Buys a Bank
On June 4, Selcom PayTech Ltd ("Selcom") announced that it had acquired a 90% stake in Access Microfinance Bank Tanzania (AMBT). This transaction has resulted in a restructuring of the bank's shareholding. And a rebranding to form Selcom Microfinance Bank (SMFB).
Selcom PayTech and SMFB will operate as two separate but related entities. It is not a merger.
Sameer Hirji founded Selcom in 2005 after working as a marketing manager at Celtel (now Airtel) for three years. His company initially focused on distributing airtime vouchers for Celtel.
Today, it has a network of over 50,000 agents and merchant touch-points in 10 African countries. It connects over 40 banks to mobile banking and over 100,000 merchants to its SelcomPay platform.
Access Microfinance had TZS 72.4 billion in assets as of March 31 2023, according to its latest Publication of Unaudited Financial Statements. The bank’s capital is now estimated at TZS 8.9 billion. Selcom, on the other hand, had net assets of TZS 3.1 billion by December 2020.
Pre-acquisition, AMBT’s top shareholders were the Germany-based AccessHolding (66.11%), the International Finance Corporation (13.06%), US-based asset manager MicroVest (9.04%), German bank KfW (6.73%), and the African Development Bank (5.06%). Post-acquisition, the new shareholding is Selcom Paytech Limited (90%), African Development Bank (5.06%), and minority shareholders (4.94%).
Selcom's executive director, Mr. Hirji, told
that the rebranded bank is still in the process of "figuring out its market positioning." But he assured us the recent press conference was a "mandatory name and ownership announcement."Access previously focused on microfinance for lower/middle-income individuals and small/medium-sized enterprises (SMEs). It offered micro-loans, deposits, transfers, cheque books, and small business lending, including via Vodacom's M-Pesa.
Historically, the bank received substantial investments from poverty alleviation and economic development organizations. The funds include BIO’s €1,264,000 equity (2007-2014), €1,500,000 debt (2009-2015), and €100,000 subsidy (2007-2017). BIO is an abbreviation for the Belgian Investment Company for developing countries.
Sameer promised me that "Selcom PayTech will support the bank to its fullest" once their new plans are set.
2. SmartDarasa Launches Redesigned Educational Platform
On June 7, Dar-based ed-tech startup SmartDarasa unveiled its upgraded interactive learning platform.
SmartDarasa 2.0 provides an intuitive user experience (UX) and a vast content library catering to diverse learning styles. It also includes personalized learning paths, simplified payment options, and offline capabilities. Notably, the updated platform integrates an AI-powered assistant, SmartBot, to guide students through at-home experiments.
The launch event brought together 30 high-profile guests from government, education bodies like COSTECH, TIE (the Tanzania Institute of Education), and private sector leaders.
It highlighted SmartDarasa's achievements with their previous 1.0 version since 2019 launch:
Over 20,000 learners reached across 5 countries.
Over 2,000 app downloads showing user engagement.
Over TZS 23.7 million in revenue generated.
Selection for the Mastercard EdTech Fellowship (details in the next headline).
SmartDarasa 2.0 is completely redesigned with major upgrades:
1000% more education content for varied learning styles.
Integration of practical content, class notes, and personalized learning.
Simplified payment options for parents/schools.
Free 6-month offline beta software for schools from June 7.
Affordable online platform/app launch in July.
SmartBot AI assistant for at-home experiments.
Planned integration with TIE curriculum (pending approval).
The event featured a panel discussion on edtech by govt, education leaders like David Nyangaka (Ministry of ICT), moderated by Henry Kulaya (TIE Board).
SmartDarasa also announced a new early childhood product co-developed with Ona Stories using cartoons aligned to 4Cs of education.
The startup addresses lack of STEM education access in Africa where 70% schools lack labs and 50% students fail STEM annually. Its impact at Dovya Secondary, which has 1,700 students, demonstrated that virtual laboratory environments enable practical learning.
Founded in 2019 by CEO Elias Elisante and based at University of Dar es Salaam (UDSM), the 12-member SmartDarasa team has COSTECH's support.
3. UDSM’s ‘Week’ Goes Well
The University of Dar es Salaam (UDSM) held its 9th annual Research and Innovation Week from June 5-7.
Over 50 public and private sector exhibitors showcased their latest research outputs, products and services. So, it created opportunities for networking, partnership building and technology transfer between academia and industry. Over 200 individuals attended.
As usual, the week-long celebrations began at the college level from April 17-19, before culminating in the main university-level events.
In the 2016/17 academic year (AY), UDSM had 29,125 enrolled students. By AY 2021/22, enrollment had increased to 45,462, representing a 56% increase in the student population. The university comprises seven campus colleges, four schools, and five institutes, which together offer 88 undergraduate and 21 postgraduate degree programs.
Undergraduate research project winners included Nishati Mix, which transforms plastic waste into electricity and clean cooking energy, receiving a TZS 5 million prize. Hyalosustainers secured 3rd place with its affordable, high-quality hyaluronic acid for pharmaceutical, medical, and cosmetic applications.
These innovative projects, along with past winners like LUKU-CHAP (2023's winner providing real-time energy monitoring), demonstrate the entrepreneurial mindset and problem-solving capabilities of UDSM's students.
It is encouraging to see that student-led projects have direct commercial applications and startup potential. At least in my case.
Day 2 on June 6 had two major symposiums. The first was on "Artificial Intelligence (AI) in Building the Digital Economy in Tanzania." It was moderated by Dr. Mathew Mndeme from UDSM's College of Information and Communication Technologies (CoICT).
Panelists included:
Dr. Salome Maro (CoICT lecturer and Acting Director of ICT)
Dr. Prosper Mafole (Chief Technical Officer at Airtel Tanzania)
Dr. Antony Kigombola (CoICT lecturer)
Kalebu Gwalugano (CEO of AI startup Neurotech)
They discussed AI's transformative potential, homegrown AI solutions, and preparing Tanzania's workforce for an AI-driven future.
The second symposium was a "Strategic Partnership Dialogue" on university-industry collaborations, moderated by Dr. Kelvin Munisi from the College of Social Sciences (CoSS).
Panelists represented legal (Adv. Grace Joachim), consulting (Joshua Naiman of Empower), academia (Dr. Augustina Alexander from UDSM) and industry (Jason Yi, Huawei Board Director).
They examined how partnerships between universities like UDSM and companies can turn research ideas into impactful innovations and solutions.
The closing ceremony on June 7 featured an overview of exhibitions by Prof. William Anangisye, UDSM Vice Chancellor. Awards were then presented for outstanding innovations, research, industry linkages and publications.
Prof. Carolyne Nombo, Permanent Secretary of the Ministry of Education, gave the closing speech as the Guest of Honor. In contrast, Hon. Jumaa Aweso, Minister for Water, graced the first day of the Week.
Key outcomes included:
Plans for joint research and pilot projects with the water/irrigation sector on SDG 6 (clean water and sanitation)
15 memoranda of understanding (MoUs) signed between UDSM and companies across sectors like manufacturing, agriculture and mining to collaborate on R&D (research and development) and talent development.
USD 550,000 in funding commitments from corporate partners to support commercialization of UDSM's most promising innovations.
4. Tanzania's First EdTech Accelerator Program Selects 10 Startups
On June 7, Sahara Consult revealed the first group of 10 Tanzanian companies chosen for the Mastercard Foundation EdTech Fellowship.
Last year, MasterCard implemented the program in Kenya, Nigeria, and South Africa for exactly seven months. However, in 2024, it announced five-year partnerships with hubs in six additional countries: Benin, Egypt, Ethiopia, Ghana, Senegal, and Tanzania.
In 2020, the Fellowship supported 12 startups with USD 40,000 each and 12 months of support. This year, the program has expanded. MasterCard has tasked eight completing partners with recruiting and supporting 94 ed-techs. Those startups will receive grants totaling up to USD 6.58 million in 2024 alone. Why? There is a continental need to increase access to quality education through technology.
The African education market is projected to expand from USD 224 billion in 2024 to USD 740 billion by 2030. During the next six years, expenditure on educational technology in Africa is estimated to increase from 1% to 6-10% of total education spending. That rise could result in a USD 57 billion ed-tech market, or enough room for more than 28 new unicorns.
Now back to Tanzania. The following 10 companies will receive mentorship, business guidance, and financial assistance from Sahara Consult over the next eight months:
Fiqra Technologies - Develops a learning management system with a focus on vocational training.
Infotaaluma - A cloud-based system that improves education by digitally managing attendance, exam results, and fee payments. It connects schools, teachers, and parents.
Mtabe - Utilizes artificial intelligence and SMS technology to deliver learning content to students who lack access to textbooks and the internet.
MITz Group - Provides affordable STEM learning kits aligned to the Tanzanian syllabus.
Rada 360 - Employs space science tools, such as a mobile planetarium and telescope, to inspire students' passion for science and innovation.
ShuleSoft - Develops a six-module system (administration, academic, operation, accounts, communication, digital learning) that improves academic and financial performance while reducing paperwork, time, and resources.
Shuleyetu - An integrated school management and e-learning platform.
Smartcore - Assists schools in managing operations and finances, including fee collection, academics, fleet, inventory, expenses, SMS notifications, and standard accounting.
SmartDarasa - Combines 2D, 3D, and AR/VR technologies to deliver practical STEM education.
Taifa Technovation Hub - Addresses the educational gap in rural areas by providing STEM teaching and learning kits.
In addition to training, the Tanzania's ten fellows will receive equity-free funding of up to TZS 184.4 million per startup. Sahara Consult will support them for one year after the 8-month acceleration program ends.
The Mastercard Foundation EdTech Fellowship aims to support high-growth, high-impact companies that use innovation to improve educational access across Africa.
5. NALA Meets Key Revenue and Product Goals
Tanzanian pre-Series A startup NALA set a new monthly revenue record in May 2024.
The achievement comes just three months after CEO Benjamin “Benji” Fernandez told TechCrunch that his fintech's revenue grew tenfold between March 2023 and March 2024.
It also comes after NALA has rolled out two major new offerings.
A. Payment Reminders
First, just last week, it added payment reminders to its consumer app. This feature allows users to schedule notifications for upcoming payments to family, friends or businesses.
Why? Over 80% of NALA's customers send money regularly to the same recipients each month. So reminding them to do so is important.
And, because Payment Reminders were developed in response to customer feedback, NALA is committed to user-centric design.
The initial version allows users to set payment notification reminders, while a future version will enable automatic direct debits, pending compliance with varying banking rules across countries.
B. Rafiki
NALA also recently launched a business-to-business (B2B) payments platform called Rafiki API. It is a designed to ensure reliability, direct treasury management, better error handling, reduced costs for users, and streamlined bulk money transfers.
NALA developed Rafiki after feedback from companies making large payouts to Africa, such as remittance firms, payroll providers and global payout businesses. With Rafiki, 99.3% of transactions are delivered within one hour, most arriving in seconds. That is a key advantage since speed matters to users of digital financial services.
To manage both its consumer app and the new Rafiki infrastructure business, NALA has split into separate teams. Both have independent AWS (Amazon Web Services) environments, engineering staff, operations and organizational structures. This allows each arm to make fast decisions and execute efficiently, though CEO Benji admits it is a complex undertaking.
Looking Ahead
Rafiki opens up opportunities for NALA to provide payment processing for businesses, aligning with its mission of building "Payments for the Next Billion" people. By addressing reliability issues at scale, Rafiki aims to initiate a new era of financial inclusion and efficiency for global businesses operating in Africa.
In 2023 alone, NALA invested USD 6 million into the African tech ecosystem. Its team has grown from 70 to over 100 employees across 21 nationalities based in 17 countries, thus truly representing NALA's pan-African vision.
Open Tech Positions in Tanzania This Week
Below you go.
1. DIS Specialist
UNICEF Tanzania is seeking a Health (Digital Information System) Specialist for a temporary position in Dar es Salaam to support the Government of Tanzania in the field of digital health: https://www.unjobnet.org/jobs/detail/70529979. Closes today.
2. Java Dev
FastHub Solutions, a leading telecommunications service provider in Tanzania, is seeking a Junior Java Developer to join their team in Dar es Salaam: https://www.linkedin.com/jobs/view/3942246025. Job listed 3 days ago.
3. Pythonist
G2i is hiring Software Engineers (3+ years experience) for remote contract work to create training data for AI models. Tasks include evaluating AI-generated code, writing functional code and robust test cases, and creating instructions to help others. Pay varies by location ($22.05-$50/hour) and work hours are flexible (15+ hours/week). This is a long-term contract with expected work for the next 2 years.
4. Data Admin
Absa Group is hiring an entry-level Database Administrator (DBA) in Tanzania, to manage and maintain their data assets while ensuring security, accessibility, and optimal performance. Listed 5 days ago. Apply: https://shorturl.at/R0kU9.
5. (Tech) Sales Manager
Dawa Mkononi, a Dar-based B2B pharmaceutical e-commerce startup, is seeking a passionate and experienced individual to lead its sales team and drive growth. Apply by 15th June 2024 by sending your CV to info@dawamkononi.com.
Outro
That's a wrap for June 2-8!
Remember to share Atoms & Bits with your network to help us popularize Tanzania's innovation ecosystem.
We'll be back next week with more content.