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Are There Really Cashless Economies?

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cashless economies Yvonne-Faith Elaigwu

By Yvonne-Faith Elaigwu

‘Cashless’ has probably become one of the most popular words in Nigeria in the last few months. While it can be defined in different ways, it has one universal meaning and is characterised by the exchange of funds for goods and services by methods other than the use of cash.

This little or no dependence on cash is not forced by an inability to queue for hours at an ATM or an unwillingness to pay an exorbitant fee to a PoS or mobile money agent. No, this little dependence on cash is because of the ability to meet financial obligations without necessarily needing to handle cash.

You are probably thinking about the western world and the level of development that makes this their reality, but some very solid examples of cashless economies also exist in Africa.

One of the easiest ways to identify a Nigerian in Kenya, for example (excluding the Naija-ness), is by how they transact. As a Nigerian visitor, you are very likely to pay in cash when you buy food, shop at a neighbourhood market, buy things from the roadside or visit a tourist centre. This alone – paying in cash everywhere – is more likely to scream “foreigner” than if you had worn a green-white-green Ankara at that time.

When the M-Pesa platform marked its 15th-anniversary last year, it had grown to more than 51 million customers, 465,000 businesses, 600,000 agents, and 42,000 developers across Kenya, Tanzania, Mozambique, the Democratic Republic of Congo, Lesotho, Ghana, and Egypt, as reported by Business Insider.

Ghana, our neighbour, digitised their economy with Mobile Money. The Bank of Ghana, in its payment systems annual report for 2021, reported that its volume of Mobile Money transactions increased to 4.25 billion in 2021, representing a 47.1 per cent growth compared to 2020. Similarly, the total value of transactions increased to GH¢ 978.32 billion in 2021 from GH¢ 571.80 billion in 2020.

In dollar terms, the value of transactions in 2021 was $75 billion (based on current exchange rates). For perspective, Ghana’s GDP was $77.59 billion that same year. This essentially shows us mobile money transactions could cover the entire economic activities in Ghana (when currency devaluation over the past year is factored in).

The Carnegie endowment for international peace, also referencing a BOG report, said in recent years, Ghana has been identified as one of the biggest mobile money markets and the fastest-growing one in Africa, with 40.9 million accounts as of February 2021. Again, for context, the population of Ghana is 32.8 million.

A Business Day report in 2019 noted that in Ghana, the utilisation of Mobile Money has become so ubiquitous that it no longer has a wow effect and is just a part of everyday life. The average Ghanaian can go about their day and be productive without ever needing to transact with cash, just like their peers in Kenya and other countries where cash is increasingly less important.

Somalia’s journey to a cashless economy is perhaps the most inspiring. It is recorded that between 1990 and 2013, Somalia received no foreign direct investment, and the monetary system broke down with the collapse of the Somali Central Bank.

The Somali government installed its first ATM in 2014, but the progress of its wider digital economy has been astonishing. The Somali Central Bank introduced a central payments system in August 2021, which connects the nation’s 13 lenders, and formalises digital payments, making payments easier for people across the country.

According to a report by the World Bank published in 2018, almost three-quarters of the Somali population aged 16 and older use Mobile Money. Somalia’s Gross Domestic Product grew by an estimated 2.9 per cent in 2019 and by 3.2 per cent and 3.5 per cent in 2020 and 2021, respectively. Eight years after the installation of its first ATM, Somalia is now recognized globally as a cashless economy.

Today, in its urban centres, Mobile Money penetration is over 80 per cent. Even in rural areas, it has become the currency of choice, with a penetration rate of 55 per cent.

Need we add examples of the western world? Maybe just a few.

In 2022, Merchant Machine ranked Norway on the list of 10 countries closest to a completely cashless society, with cash accounting for only 2 per cent of all payments in Norway, 100 per cent of its population owning a bank account, and 71 per cent also owning a credit card.

It was followed by Finland with the same small percentage of cash-based payments (2 per cent) and none of its citizens going without a bank account; then New Zealand also had two per cent cash-based payments but a very slightly higher unbanked population of one per cent.

The UK ranks lower at number eight due to a slightly smaller percentage of credit card users (65 per cent) and a higher percentage of the unbanked population (3 per cent). However, it seems less cash-based payments overall, with just 1 per cent of all payments being made with notes and coins.

Now imagine a scenario where you navigate the city of Lagos without worrying about “change” or whether the cash in your hand is not counterfeit or too worn out. Imagine not worrying about making any payments, not because you are a Dangote or because Otedola is your daddy, but because you have various payment options in your pocket or at your disposal; cards, phone, apps, USSD codes etc.

More importantly, imagine that your transactions are happening within the banking ecosystem; your bank, therefore, has visibility into your spending patterns and is able to profile you to access credit adequately. Despite the promising future a cashless economy offers, the experiment in India has offered the rest of the world some lessons on how not to go about it.

The Economic Times of India, for instance, noted that after invalidating 86 per cent of the currency in circulation (the 500 and 100 notes), the government started scrambling to promote digital payments, yet, only about half of Indian adults had bank accounts, and only about a quarter had internet access. Mobile payments were rare, and even if everyone had wanted to go digital, they couldn’t have.

The lesson? Before going cashless, alternatives should not only be in place but reliable too. India’s move towards going cashless has not been a complete failure, but it came at a huge human and economic loss.

An article on The Balance Money describes a cashless society where all transactions are electronic, using debit or credit cards or payment services like PayPal, Zelle, Venmo, and Apple Pay. In Nigeria, we have companies like OnePipe, offering technologies that digitise and simplify payment processing to downplay the dependence on cash.

Although not a lot of societies are truly cashless, many economists believe that consumer preferences, competitive pressures on businesses, profit-seeking by banks, and government policies designed to facilitate cashless transactions will soon lead to more cashless societies, which eventually lead to economic growth.

Yvonne-Faith Elaigwu is the Head of Operations and Governance at OnePipe

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Investing in Women: A Catalyst for Change in Africa

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Investing in Women

Empowering women is about more than justice, gender equality and human rights. It is the most effective way to improve standards of living for entire communities – especially in emerging economies.

As the world marks International Women’s Day (IWD) this month, it is an ideal time to reflect on the value of empowering women for all of society – not to mention the next generation of women.

A report by the International Labour Organisation determined that, “at a basic level, women’s employment, paid and unpaid, may be the single most important factor for keeping many households out of poverty.”

This is because – as other studies have found – women are more likely than men to invest a large proportion of their income to educate their children. Therefore, as women enter the workforce in greater numbers and earn higher salaries, more is spent on children’s education, including girls’ education. This can then lead to an ongoing cycle of better education for future generations of women.

Pan-African entertainment group MultiChoice Africa is well positioned to support this process of empowering women through training in the media and entertainment sector.

The organisation has long shown a deep commitment to promoting diversity, and its preferential procurement policies are intentionally aimed at empowering women. MultiChoice Africa invests in building a gender-balanced workforce through strategic recruitment and people development – and this has borne fruit.

Today, the group provides entertainment and consumer services to 20.9m subscribers across sub-Saharan Africa. It produced 6 502 hours of local content last year, with more than 30 local content channels across 10 markets. The group has customers across 49 markets in sub-Saharan Africa and adjacent islands through DStv and GOtv, and its linear OTT service DStv Stream.

This continent-wide penetration has been achieved with a workforce made up of 48% women employees – up from 47% in 2023 – and 43% female representation in senior management positions.

MultiChoice spent ZAR90 million on the training and development of women staff in 2024 through initiatives like its Advancing Women Mentorship Programme. This initiative offers select groups of women the chance to attend masterclasses with executives, as well as networking sessions, mentorships and expert classes to enhance their technological and management skills.

In addition, since 2012, the MultiChoice Innovation Fund has disbursed ZAR407 million in loans, grants, and business-development expenses, specifically targeting black women and youth-owned businesses in fintech, edutech, healthtech, HR tech and media. To date, 77 black-owned small businesses with at least 50% female, black ownership have benefited, creating more than 1 400 jobs.

The empowerment of women is a direct, purposeful MultiChoice business strategy, brought to life through significant empowerment programmes and budget allocations.

Progress through storytelling 

However, as Africa’s most-loved storyteller, MultiChoice Africa sees its fundamental role as being to entertain, inform and empower the African communities that inspire and build the company in return.

In fulfilling this purpose, it works to also empower women through the hyperlocal content it produces for markets across the continent.

In line with the goals of International Women’s Day, MultiChoice aims to achieve full gender equality in its industry, and on the African continent. Indeed, the group is well on the way to achieving that in its workforce and in its content strategy.

The MultiChoice approach is to ensure women have a voice in the media and entertainment industry. It is working to help them acquire the skills to express themselves creatively, and to inspire audiences of millions of African girls and young women.

A powerful platform for achieving this is through the MultiChoice Talent Factory (MTF) academies in three African capitals – Lusaka, Nairobi and Lagos. These institutions provide fully paid annual courses in the fundamentals of TV and filmmaking – everything from screenwriting to directing to sound engineering, editing and producing.

Half of the students intake are females, and their time at MTF sees them equipped to produce films of their own. Many young women filmmakers have produced highly impactful work that has premiered on MultiChoice platforms and won accolades at awards shows across the continent.

Their work is itself an expression of the IWD theme to “Accelerate Action” towards gender equality.

MultiChoice Africa platforms have achieved encouraging gender-transformation successes. The right inputs are being implemented, and they are generating the right outputs.

While more remains to be done right across society before full gender parity has been achieved, the media has shown itself to be a critical platform for shaping perceptions and encouraging change.

At MultiChoice Africa, women have found their voice. They are shaping Africa’s future. And they are doing that through the power of African storytelling.

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The Challenge Facing 95% of IT Leaders as Regards AI Agents; How to Overcome it

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Linda Saunders Salesforce AI Agents

By Linda Saunders

Generative AI has transformed how people interact with technology through prompts, and the next frontier promises an even greater impact. As organisations refine their AI strategies, we are witnessing the next chapter of work and the emergence of digital labour with agentic AI.

Since the launch of Chat GPT  many business leaders focused on what they thought was the right topic – the Large Language Models ( LLMs). But these models are quickly becoming a commodity, as each one races to build the best for a specific use case.

To truly unlock value from AI, you need to focus on everything around the model such as the orchestration, the low code / no code approach to building and refining, the metadata framework and a data engine that compliments the data strategy. It’s this platform advantage that is seeing agents across the globe stand up and deliver value with real data, leveraging real integration in a few short weeks.

To unlock the action and value of generative AI requires  a deeply integrated and connected platform with a one code base, but this takes significant time and money to build unless you have already been empowering your human employees on the Salesforce platform. Our platform leverages everything you have built to empower your digital workforce. Its a win-win where even for those who are not quite ready for a digital workforce – will be unlocking their ability to pivot to an agentic workforce with every flow, cloud, integration and build – Ultimately  future proofing their business.

Agentic technology is a multi-trillion-dollar industry opportunity. The agentic enterprise  will operate with unprecedented independence capable of responding to queries and handling complex tasks autonomously. This autonomy will optimise workflows, drive innovation, and break down barriers related to the need for continuous human intervention.

By 2028, Gartner predicts that 33% of enterprise software applications will include agentic AI, up from less than 1% in 2024, allowing 15% of day-to-day work decisions to be made autonomously.

Yet, AI agents are only as good as the data they have. They need connected data—both structured and unstructured—to understand user queries and make informed decisions. That’s where integration and APIs come in, building a solid foundation for these agents.

While 93% of IT leaders are either implementing or planning to implement AI agents within the next two years, they face significant integration challenges that hold back the full potential of these agents.

According to the latest MuleSoft Connectivity Benchmark Report, which surveyed more than 1,000 IT leaders globally, 95% struggle with data integration across systems. On average, only 29% of applications are connected, which really affects the accuracy and usefulness of AI agents.

The report found that, on average, enterprise organisations are using 897 applications, and those with AI agents are using even more—1,103 applications. 90% of IT leaders say data silos are creating business challenges.

The more applications and AI models there are, the harder it gets to integrate everything. Data silos make it even tougher, limiting agents’ access to the data they need and leading to less accurate and useful outputs.

Disconnected data also places major strain on IT resources. IT leaders are looking for ways to boost efficiency and productivity, but they expect their teams’ workload to increase in the next year. Balancing current capabilities with integrating AI agents across hundreds of unique applications while maintaining those systems, is a real challenge.

To unlock the full potential of AI agents, businesses need to align their integration and AI strategies. APIs and integration solutions can simplify and unify data infrastructure, allowing AI agents to access critical data and interact with existing systems and automations. This can significantly improve IT infrastructure, enable data sharing across teams, and integrate disparate systems.

Organisations that have successfully integrated their data and systems using APIs are reaping the rewards: increased productivity (49%), faster response to business needs (49%), and higher revenue generation (45%). On average, half of an organisation’s internal software assets and components are available for reuse, which means companies can leverage their existing investments, instead of starting from scratch.

The reliance on IT teams highlights the need for a clear automation strategy, along with robust governance and monitoring to ensure everything runs smoothly and securely.

A well-rounded automation strategy is crucial for integrating AI effectively, but many teams are still working on theirs. One key part of this strategy is making AI accessible to non-technical users, which is essential for broader adoption and creating a solid foundation for employees to build on, and this is where agents are changing the game.

Every company, team, and employee will soon have an agent. But how useful is a team of agents if they can’t interact with other systems or agents to coordinate and take action across the entire business? AI must have a smooth handoff to a human, and if that transition isn’t well-coordinated and seamless, any benefits are quickly undone

As AI, integration, automation, and API use continue to drive transformation and performance, organisations that invest in these technologies to harness unlimited digital labour are best placed to stay agile, efficient, and ultimately succeed.

Linda Saunders is the country leader and senior director solutions engineering Africa at Salesforce

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Beyond the Grip of Godfathers in Nigeria’s Politics

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By Kayode Awojobi

Democracy, by its very definition, is a government of the people, by the people, and for the people. It is a system built on the principles of popular participation, accountability, and governance that reflects the collective will of the electorate.

However, in Nigeria, democracy often takes on a different meaning—one in which a few powerful individuals wield enormous influence over the political process. This phenomenon, commonly referred to as godfatherism, has become an entrenched feature of the country’s political landscape.

The role of political godfathers in Nigeria is complex and often divisive. While some view them as experienced mentors who provide guidance and structure within the political system, others see them as power brokers who prioritize personal gain over the collective good.

Godfathers serve as kingmakers, using their resources and influence to propel candidates into office. Yet, once these candidates assume power, they are often expected to remain loyal to their benefactors, a reality that frequently leads to governance dictated by the interests of a select few rather than the needs of the people.

The influence of godfatherism is not an abstract concept but a lived reality that has shaped political developments in several states across Nigeria.

In Osun State, for instance, the fallout between former Governor Gboyega Oyetola and his predecessor, Rauf Aregbesola, underscored the fragile nature of godfather-protégé relationships.

Initially handpicked as a successor, Oyetola later distanced himself from Aregbesola’s influence, leading to a fierce political battle that ultimately contributed to his loss at the polls.

Similarly, in Oyo State, Governor Seyi Makinde has had to navigate tensions within the Peoples Democratic Party (PDP), where certain political figures who played a role in his rise to power later accused him of abandoning party structures.

Perhaps one of the most well-documented cases of political godfatherism in recent years was the dramatic conflict in Edo State between Governor Godwin Obaseki and his former benefactor, Adams Oshiomhole.

Oshiomhole, who had championed Obaseki’s election in 2016, later fell out with him over governance and party control. This dispute culminated in Obaseki’s disqualification from seeking re-election under the All Progressives Congress (APC), forcing him to defect to the Peoples Democratic Party (PDP), where he secured a second term in office. The episode highlighted the extent to which political godfathers expect loyalty from those they help install, often leading to bitter confrontations when protégés seek independence.

In Rivers State, a similar dynamic is playing out between Governor Siminalayi Fubara and his predecessor, Nyesom Wike.

Wike, whose influence was instrumental in Fubara’s emergence as governor, has been accused of attempting to control the new administration from behind the scenes. The power struggle has resulted in political unrest, including an attempt to impeach Fubara and the defection of several lawmakers loyal to Wike.

The situation escalated to the point where President Bola Tinubu declared a state of emergency in Rivers State, suspending Governor Fubara, his deputy Ngozi Odu, and all elected members of the state House of Assembly for six months. Retired Vice Admiral Ibok-Ette Ibas was appointed as the state’s administrator to oversee governance.

This further reinforces the argument that political godfathers, rather than serving as stabilizing forces in governance, often become sources of crisis when their influence is challenged.

To be sure, political mentorship is not inherently a negative concept. In well-functioning democracies, experienced politicians often guide emerging leaders, offering advice and leveraging their networks to ensure effective governance.

However, the Nigerian brand of godfatherism is rarely about mentorship in the true sense of the word. Instead, it is largely about control, an arrangement where those who ascend to political office must remain subservient to their benefactors. This practice undermines democracy by limiting political choices, suppressing independent leadership, and reducing accountability to the electorate.

The continued dominance of godfathers in Nigerian politics raises a critical question: should a few individuals determine the fate of millions, or should the democratic process be allowed to run its course?

Proponents of godfatherism argue that it provides stability, ensures continuity, and helps navigate the complex terrain of Nigerian politics. They contend that without the financial and structural backing of political godfathers, many candidates, especially those without deep pockets, would struggle to compete in elections. In this sense, godfatherism is viewed as a necessary evil in a system where political survival often depends on strong backing.

On the other hand, critics argue that the culture of godfatherism erodes the foundations of democracy, replacing meritocracy with patronage. When candidates owe their political success to an individual rather than the electorate, they are more likely to prioritize the interests of their benefactor over those of the people.

This reality has played out time and again, with governors and other public officials making appointments and policy decisions that serve their godfathers rather than their constituents. The result is governance that is often disconnected from the real needs of the populace.

If Nigeria’s democracy is to mature, there must be a shift from the current model of political patronage to one that prioritizes competence, transparency, and true service to the people. The electorate must become more discerning, resisting the imposition of candidates whose loyalty lies elsewhere. Political parties, too, must work toward greater internal democracy, ensuring that primaries and candidate selections are based on merit rather than the dictates of a few powerful individuals.

The experiences of other nations provide valuable lessons. In South Africa, Nelson Mandela, despite his towering influence, stepped aside to allow new leaders to emerge, ensuring that democracy remained intact beyond his tenure. In the United States, political mentorship exists, but power is not concentrated in the hands of a select few who dictate governance from behind the scenes. These examples suggest that it is possible to balance political influence with democratic principles.

Nigerian political godfathers must rethink their roles. Rather than seeing themselves as puppet masters, they should position themselves as genuine mentors, guiding younger politicians without stifling their independence. They should invest in institutions rather than individuals, ensuring that governance structures remain strong regardless of who is in power.

Ultimately, the power to end the stranglehold of godfatherism lies with the people. The electorate must recognize that their votes are their most potent tool for shaping the future of governance. If voters reject candidates imposed by godfathers and insist on accountability, the culture of political subservience will gradually diminish. Democracy thrives when the will of the people is supreme, not when a handful of individuals determine the political direction of an entire nation.

As Nigeria looks toward future elections, the conversation around godfatherism must shift. It is time to move beyond the era of political overlords dictating governance from the shadows.

The country must embrace a system where leadership is earned, not handed down; where politicians serve the people, not a select few; and where democracy is truly of the people, by the people, and for the people.

Kayode Awojobi is a multiple award-winning broadcast journalist, social and political commentator. He writes from Ago-Iwoye, Ogun State

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