$17M Stolen from Uganda’s Central Bank in Recent Cyber Attack

Hackers breached the Bank of Uganda's systems and siphoned 62 billion Ugandan shillings ($17 million).

Dec 02, 2024

Welcome to the first Monday in December!

This week, let’s talk about your company’s brand identity. If you’ve ever thought this was something to deal with “later,” here’s the truth: branding is a strategic investment in your company’s future, and you shouldn’t be pushing it for later.

A strong brand identity doesn’t just get attention; it fosters loyalty, builds credibility, and sets you apart in crowded markets. Here’s a simple guide to help you craft a compelling brand identity.

Here’s what’s in the lineup today:

$17M Stolen from Uganda’s Central Bank in recent cyber attack
A Case Study of Zazuu: Why Did It Fail?
Temu’s Big Play in Nigeria

$17M Stolen from Uganda’s Central Bank in Recent Cyber Attack

Hackers breached the Bank of Uganda's systems and siphoned 62 billion Ugandan shillings ($17 million). The attack was carried out in November by a group known as “Waste” reportedly operating out of Southeast Asia. Local media reported that the hackers funneled stolen funds to accounts in Japan and the UK.

The central bank claims to be recovering the money with about 37 billion shillings of the amount taken, recovered. While this may seem like a massive shakedown, this isn’t an isolated incident. Uganda has seen a significant rise in cybercrime, especially since the pandemic. Financial institutions remain prime targets, losing 15 billion Ugandan Shillings ($4 million) to cyber-related incidents in 2022 alone.

According to Daily Monitor newspaper, this may have been an inside job, as several central bank and finance ministry employees are under investigation.

The surge in cyber attacks, particularly targeting financial institutions highlights an urgent need for stronger cyber security measures across the continent, especially as financial systems become more interconnected.

A Case Study of Zazuu: Why Did It Fail?

Zazuu was a fintech startup based in London, founded in 2018 by Kay Akinwunmi, Korede Fanilola, Tosin Ekolie, and Tola Alade. As a cross-border remittance platform, Zazuu was built to cater to Africans based in the diaspora who wanted to send money back to their home countries, mostly based in Sub-Saharan Africa.

This was a timely intervention as this region has the highest remittance rates. Sending money overseas, especially to African countries, has always been associated with hurdles. Existing bank systems require a lot of paperwork and the involvement of several financial partners. These partners added fees to each transaction, making it an expensive process.

Zazuu was able to raise a seed fund of $2 million but announced their shutdown. Why Did Zazuu Fail? Read the full case study here.

Temu’s Big Play in Nigeria

If you’ve been online lately, you’ve likely seen ads for Temu, the Chinese eCommerce platform that seems to be everywhere. Promising low prices and massive discounts, it’s hard to ignore.

But why is this platform suddenly trending in Nigeria and why so aggressively?

Temu, owned by PDD Holdings (the parent company of Pinduoduo), launched in 2022 and has expanded to over 80 markets, including Nigeria. With over 200 million people, half of whom are young, tech-savvy, and budget-conscious online shoppers, Nigeria presents a significant growth opportunity for eCommerce platforms. The industry is thriving, valued at $8.53 billion in 2024 and projected to reach $14.92 billion by 2029.

What makes Temu stand out for Nigerian consumers is its pricing strategy. By leveraging a direct-from-supplier model, Temu offers unbelievably low prices. In a country struggling with high inflation and tight household budgets, affordability is a key selling point that resonates deeply with its consumers and might be a solid go-to-market strategy.

However, Temu may face significant challenges in its new market. Logistics issues in Africa, especially Nigeria, can lead to delays and increased costs. Unreliable logistics infrastructure and rising cybercrime pose further risks, potentially affecting consumer trust.

The platform also enters a competitive market dominated by players like Jumia and Konga, which have established footholds in categories such as FMCGs, fashion, and electronics. It will be interesting to see how Temu contends with them.

For now, Temu has captured everyone’s attention. Whether it thrives or not in Nigeria remains unknown.

Did you know?
According to Small Business Trends,
Only 2 in 5 startups are profitable, and other startups will either break even (1 in 3) or continue to lose money (1 in 3).