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Why African Investors Shun Investment in Technology Companies

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The proponent of African startups and Executive Producer of Demo Africa who have travelled the continent to identify innovative local companies at their earliest stages, have identified reasons African investors do not invest in technology companies.

Harry Hare, chief executive officer of African eDevelopment Resource Centre, franchise owner of Demo Africa, a technology launch pad for startups in Africa, averred that in the past few years of Demo Africa’s existence “we have noticed that Africa-based investors are yet to come to the table when it comes to investing in technology start-ups”.

According to him most local venture capitalists were used to investing in brick and mortar businesses which they “understand and find technology start-ups high risk and therefore shy away”, he added, however, that the situation is changing with the advent of angel networks forming across the continent.

Since the angel investor network emerged, Hare informed, Demo Africa has witnessed encouraging feedback with the recent activities of $ 1.7 million acquisition of Weza Tele, a Kenyan-based DEMO Africa alumnus and the investment of over a million dollars in three start-ups just months after launching at the DEMO Africa stage.

“Investors, whether in Africa or Europe, are still investors. So we really don’t choose. We try to reach out to any investor who is interested in investing in our start-ups. Investment funds are used for different purposes depending on the maturity of the start-ups and its products. Some start-ups will use these funds for expansion; others will use the funds for a go-to-market strategy”, he said.

Others, according to him, would apply the funds to refine their products and services further before releasing the products to the markets. Besides, the investment is fundamental to the startups because “it takes the entrepreneurs from where they are to where they want to be”.

In retrospect, Hare looked at 2014 Demo Africa held in Nigeria and said of the 40 start-ups launched; about 16 start-ups got investment of some kind.

Aside, many of these startups have acquired customers whom they are servicing. In 2014, Nigeria had the highest number of start-ups and the highest attendance during Demo Africa.

“If you look at the investment made, over US$4million was shared among six start-ups in 2014. This is less than a year after launch. In terms of business acquisition, take a case in point of SpacePointe that have registered thousands of merchants in Nigeria and is enabling e-commerce for SMEs. These startups have not only generated business value but have also created employment opportunities as well across Nigeria”.

Hare added that Demo Africa offered a platform for start-ups to showcase their technology solutions to investors who would invest in them. These investors included venture capitalists, angel investors and chief information officers [CIO] who may purchase the solutions.

“Different start-ups attend DEMO with different requirements that fit in the three broad categories”.

 


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E-Business

Cybersecurity Firm Warns of Phishing Threats Targeting Telegram Premium

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Kaspersky has warned that fake Telegram Premium offers have been spreading globally, targeting users with phishing scams and malware disguised as alternative app versions.

These attacks aim to steal account credentials or compromise devices. The scams capitalise on Telegram Premium’s popularity and gifting feature, making it crucial for users to remain vigilant.

Telegram Premium is a subscription that offers exclusive features, such as faster download speeds, voice-to-text conversion, premium stickers, an ad-free experience, and more. Users can gift a subscription, and scammers capitalise on this gifting feature and the Telegram Premium topic in general.

One of the tricks begins when a user receives a message that appears to come from someone in their contact list, whose account may have been hacked. The message claims: “You’ve been sent a gift — a Telegram Premium subscription”.

Below, there’s a link that looks legitimate but actually redirects the user to a phishing page, prompting them to log in to Telegram. If victims scan the code or enter their credentials, their account is immediately compromised, giving scammers access to their login details, password, and potentially their authentication code.

There are other tricks referencing the Telegram Premium theme, and not all of them necessarily start with messages on Telegram. Attackers may also use other methods to send phishing links, for example, email.

For instance, perpetrators host fake “giveaways” for Telegram Premium subscriptions. Victims are lured into participating, and in a series of steps, they are directed to a phishing site where they are prompted to enter their Telegram account credentials, ultimately resulting in their account being compromised.

Another machination involves cybercriminals sending victims an invitation to download a ZIP archive that claims to contain a version of the messenger service with a “Premium” subscription. The download link redirects users to a phishing page where they are once again asked to log in to Telegram.

Yet another fraud involves distributing malicious software disguised as an alternative version of the Telegram app with a “built-in” Premium subscription. Scammers send victims links to download APK files claiming they are modified versions of the app, but they turn out to be malware.

“Phishing schemes capitalising on the Telegram Premium topic has been observed in several languages, suggesting that the perpetrators operate globally. Even if these scams haven’t yet reached a specific region, there is a probability they could eventually make their way there.

Therefore, it’s always important to remain cautious and skeptical of offers that seem too good to be true. Additionally, make sure your Telegram security and privacy settings are up to date, and your device has a robust security solution,” advises Olga Svistunova, security expert at Kaspersky.


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FG to Add Iris Biometrics to Digital ID for more Inclusion

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National Identity Management Commission of Nigeria (NIMC) has said that it is looking at ways of streamlining and expanding the rollout of digital ID in Nigeria and one of the options on the table is adding iris biometrics to its digital ID enrollment.

FG to Add Iris Biometrics to Digital ID for more Inclusion

Iris biometrics is a biometric authentication technology that uses the unique patterns of the iris to identify a person

The hint was dropped recently by Abisoye Coker-Odusote, director general and chief executive officer, NIMC, during a Digital Public Infrastructure (DPI) Journalism Fellowship training which took place in Abuja.

Speaking through a representative, the NIMC boss said this idea is among a litany of innovations which they are planning to introduce to the digital ID system in order to make it more inclusive, The Sun reports.

At the moment, biometric enrollment for the National Identification Number (NIN) in Nigeria involves face and fingerprints.

Adding the iris modality, according to the official, will make it possible for citizens with disabilities to be equally issued the important credential which is necessary to access a wide range of services in the country.

“We are exploring the use of iris recognition technology to cater to the specific needs of individuals with disabilities,” the representative was quoted as saying. Uganda is one other African country which has announced the addition of iris biometrics to its new generation biometric national ID card.

The NIMC CEO said despite the challenges the ID authority faces, its commitment to build an inclusive ID system and expand coverage remain unwavering.

She emphasized the important of the NIN as an essential tool in getting access to several services.

In order to streamline access to services, Odusote said they have been working tirelessly with their partners to enhance interoperability among government agencies to facilitate identity verification.

This, she says, will save Nigerians the stress of having to register many times with government agencies to obtain services.

The innovations envisaged by the NIMC are part of a broader reforms plan which aims to give the ID authority a new legislative framework for more efficient identity management.

It also comes at a time when the World Bank has extended its support for the country’s digital ID program by another two years, with a target to issue 180 million digital IDs by the close of the extension.

The Nigeria ID4D has pledged in the past to create the enabling environment to the issuance of NINs to persons living with disabilities.

A recent investigative report however suggests that many aged and physically challenged citizens in Nigeria go through tough times seeking the NIN.

Some have reportedly had their SIM cards blocked while others have been locked out of their bank accounts for their inability to register for a digital ID.

 

 

 

 

 

 


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Kaspersky Reviews Main Business Headache Related to IT Security

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According to the recent Kaspersky IT Security Economics report, the majority of companies surveyed globally find the loss of productivity, securing complex tech environments, and enabling data protection to be the most concerning business issues, driven by growing IT security needs and requirements.

The Kaspersky IT Security Economics report is released every year to analyse the changes in budgets, breaches and business challenges affecting IT Security decision makers.

This report is compiled from interviews with IT and IT security professionals from organisations of different sizes and industries. The survey was carried out in 27 countries across Europe, the Asia-Pacific region, Latin America, North America, the Middle East, Turkiye and the Africa (META) region, including in Egypt, KSA, Pakistan, South Africa, Turkiye, UAE.

According to the report, downtime and lost productivity are the most concerning business problems caused by ineffective IT security, an opinion expressed by 38% of companies globally and 34% in the META region. They encounter this problem mainly because of the long-time taken to detect and remediate threats.

Data protection is another important concern that was expressed by 33% of companies globally and 34% in the META region.

Respondents were worried about this because they regularly encountered the physical loss of devices by employees and experienced leakage of data from corporate systems caused by both external and internal reasons.

Securing complex technology environments and ensuring data connectivity were also on the list of key concerns, according to 33% of respondents globally and 26% in the META region.

Among the main IT issues that cause this challenge, respondents pointed to the rising number of incidents involving non-computing connected devices and incorrect operations of cybersecurity solutions that leave systems exposed.

Additionally, difficulties in managing security across different computing platforms play a crucial role in their inability to build a reliable all-encompassing cybersecurity system.

“It is crucial for organisations to safeguard every aspect of their operations from potential breaches. Attackers no longer solely rely on zero-day exploits, as a simple click on a malicious link or a vulnerability in a contractor’s infrastructure can lead to devastating consequences.

“This underscores the idea that information security should be based on a comprehensive and systematic approach, rather than being limited to the implementation of individual point-specific measures,” comments Alexey Vovk, Information Security Director at Kaspersky.


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