The Africa SMME Tech Report
Issue No. 75. Africa SME tech news and insights for 29th April 2024.
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The Africa-Middle East News Digest
SMME Tech News for 29th April 2024
Kenya, U.S. Take Different Tacks on TikTok
Efforts in Africa and the U.S to restrict or even ban the wildly popular short video app TikTok have achieved a degree of resolution.
In Kenya, a petition calling for TikTok’s ban did not succeed. Last week we learned that the Kenyan government had recommended regulating, not banning, the popular app.
Kenya’s information and communication ministry is advising a parliamentary panel that has been considering the ban petition to regulate rather than eradicate the app.
"Rather than imposing a ban on TikTok, the ministry proposes adoption of a co-regulation model," the ministry said in an advisory to the panel, which was shared with Reuters last week.
So while the ban effort failed to rid Kenya of TikTok, it was not entirely fruitless, at least from the petitioner’s perspective. The Kenyan government is proposing a “co-regulation” model that would require TikTok to moderate content to ensure that it complies with Kenyan laws. According to Reuters, TikTok would also be required to file quarterly reports to the government detailing which posts it had removed from the platform.
In the U.S., President Biden has signed into law a bill that "bans" TikTok in the U.S. The bill was lumped in with some of Biden’s top foreign policy objectives, including military aid to Ukraine.
In truth, the U.S. action isn’t really a ban. And few think TikTok will actually go away in the U.S., where the app is very popular, including among small businesses.
According to the ‘ban”, TikTok owner ByteDance has nearly a year to sell the U.S. platform. And Biden can grant a 90-day extension (presumably if a sale is in the works).
So this is really more of a divestiture requirement than an outright ban. A ban does kick in if the company is not divested within the allowed time frame. However, there is plenty of time to work out a resolution that doesn’t involve actually banning TikTok in the U.S.
TikTok is taking the effort seriously and has vowed legal action in the U.S. on freedom of speech grounds.
Different Drivers
Notably, the “banning” efforts in the U.S and Kenya were driven by very different motivations.
In Kenya, the petition effort was driven by concerns over the propriety of content being created in Kenya, in particular by younger TikTokers. However, Kenya’s interior ministry has also accused TikTok of being a conduit for propaganda and fraud, as well as inappropriate content, according to Reuters.
In the U.S., the effort was directly related to geopolitical tensions between the U.S. and China. Those advocating banning TikTok in the U.S. fear the app would be used (or already is being used) to promote anti-American views and spread misinformation. TikTok, led by its 41-year-old Singaporean U.S. CEO Show Zi Chew, has vigorously denied these claims.
Helping Small Businesses?
TikTok has also cited its significant economic impact on U.S. small enterprises in its efforts to head off a ban. It recently commissioned a study that claims TikTok drives $24.2 billion in economic activity for U.S. SMEs.
So in the U.S., at least, nothing will change immediately. But it seems clear that TikTok will have new U.S. ownership.
Other Actions Against TikTok
While outright bans against TikTok are uncommon, several countries do prohibit TikTok, including Iran, India, Afghanistan, and Uzbekistan. In Africa, TikTok is banned in Somalia. Senegal had banned TikTok and now regulates the app.
Restricting or regulating the app appears to be the more common approach than outright bans. The European Union has pursued limits on TikTok based not on security grounds but on concerns that it may be addictive.
Found on LinkedIn
This image comes to us courtesy of Selma Ribica, Managing Partner at Full Circle Capital, showing the names and faces of Africa’s female VC partners. Selma is among those listed in the graphic.
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From the 2024 BigFive Summit
Last month’s BigFive Summit in Cape Town featured multiple high-impact presentations, panels, and fireside chats. We will share a video from the Summit in each newsletter. This week we feature the GeoPoll presentation of the MSME Pulse African small business survey findings, which has been a popular feature of the past few BigFive Summits.
BigFive Summit 2024 Sponsor Profile
The recent BigFive Summit (19-20 March in Cape Town) would not have been successful without the support of its sponsors. We are devoting each edition of this newsletter to showcasing one of these sponsors to thank them for supporting BigFive and encourage you to support them.
Telkom is a leading South African telecommunications company. It offers a range of services for South African small businesses, ranging from Yep! (the new Yellow Pages) to lending (TelkomLend), payments (TelkomPay), and a wide range of digital business solutions, including digital marketing, data security, CRM, accounting, and more.
Telkom was a Platinum 2024 BigFive Summit sponsor and we are grateful for their ongoing support of the Summit and BigFive Digital.
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