<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107335423-1700186666155-gettyimages-647053464-_jcg2290-820x461.jpeg" alt="" class="wp-image-429142" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107335423-1700186666155-gettyimages-647053464-_jcg2290-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107335423-1700186666155-gettyimages-647053464-_jcg2290-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107335423-1700186666155-gettyimages-647053464-_jcg2290-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107335423-1700186666155-gettyimages-647053464-_jcg2290-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107335423-1700186666155-gettyimages-647053464-_jcg2290-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107335423-1700186666155-gettyimages-647053464-_jcg2290.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">BARCELONA, SPAIN &#8211; MARCH 01: A view of the MasterCard company logo on their stand during the Mobile World Congress on March 1, 2017 in Barcelona, Spain. (Photo by Joan Cros Garcia/Corbis via Getty Images) Joan Cros Garcia &#8211; Corbis | Corbis News | Getty Images</figcaption></figure>



Mastercard is doubling down on its efforts to detect and prevent fraud that’s routed through cryptocurrency exchanges.



The company told CNBC exclusively that it’s partnered with Feedzai, a regulatory technology platform that aims to combat money laundering and financial scams online using artificial intelligence.



Through the partnership, Feedzai will integrate directly with Mastercard’s CipherTrace Armada platform, which is used to help banks monitor transactions from over 6,000 crypto exchanges for fraud, money laundering and other suspicious activity.



CipherTrace Armada will be embedded directly in Feedzai’s technology, rather than accessed through an API, or application programming interface, with Feedzai “inhaling” the data to enable real-time alerts about suspicious crypto transactions.



“This will&nbsp;increase fraud detection by protecting unwary consumers, but will also detect potential money laundering activity and mule accounts,” Feedzai CEO and co-founder Nuno Sebastio told CNBC. Mule accounts are accounts of users that fraudsters exploit to launder their ill-gotten funds.



An estimated 40% of scam transactions exit directly from a bank account to a crypto exchange today, according to Feedzai data.



The tie-up will also give Mastercard access to Feedzai’s artificial intelligence smarts. Feedzai says its software can identify and block suspicious transactions in a matter of nanoseconds — but also recognize transactions that are legitimate.



Feedzai’s RiskOps platform analyzes transactions worth over $1.7 trillion annually. Co-headquartered in Coimbra, in Portugal, and San Mateo, California, in Silicon Valley, the firm holds close to 100 patents and secures an average of 10 patents per year to safeguard its technology.&nbsp;



“Numerous banks that believe they are preventing illegitimate cryptocurrency transactions are, in fact, only blocking transactions involving the widely recognised and regulated entities within the crypto space and omitting the rest,” Sebastio said.



<h2 class="wp-block-heading" id="h-crypto-entering-the-mainstream"><a></a>Crypto entering the mainstream?</h2>



The move marks a push from Mastercard into the market for legitimizing crypto as a mainstream financial asset that can be subjected to the same rules and compliance frameworks as traditional assets.



Banks and other large financial institutions have shown increased interest in experimenting with crypto in their products and services. But the next step, deploying commercially available crypto products as part of their core offerings, has proven more elusive.



Banks have been wary of digital assets’ lack of comprehensive regulations and applications in fraud and scams.



Last year, the amount of theft and scams led to a global increase of 79% in crypto-related losses from the previous year, according to data from blockchain analysis firm Chainalysis. Illicit addresses received $14 billion in 2022 year-over-year, almost twice what they received in 2020.



Mastercard’s vast network is used by banking institutions worldwide to process and monetize payments.



The company competes with fellow payments giant Visa, which is also in the business of supporting card payments, among other fintech services.



In the U.K., banks have shown hesitation when it comes to being associated with crypto. Several larger lenders have halted transactions with crypto exchanges on their networks, citing the risk of fraud.&nbsp;



Top banks including JPMorgan, NatWest, and HSBC have restricted or blocked crypto transactions. This led to criticisms from Coinbase CEO Brian Armstrong, who said the development jarred with the U.K.’s ambition to become a global “Web3” hub.



Ajay Bhalla, president of cyber and intelligence solutions for Mastercard, told CNBC that the “interconnectedness of life today and increasing digital penetration of finance has brought risk as well as opportunity.”



“Our latest data shows fraud on transactions where people are buying crypto is 5 times higher than regular fiat transactions,” Bhalla said via email, adding that, with Mastercard’s new tie-up with Feedzai, financial institutions will “be able to tell good transactions from bad.”



The partnership builds on Mastercard’s deal to acquire U.S. blockchain sleutching firm CipherTrace. Mastercard bought CipherTrace in 2021, and the following year launched its first product using the firm’s technology, called CryptoSecure, to analyze and block transactions from fraud-prone crypto exchanges.

107335423-1700186666155-gettyimages-647053464-_jcg2290

Mastercard doubles down on effort to detect and tackle crypto fraud with AI tie-up

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="460" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0xhusky_food_delivery_in_lagos_nigeria_hper_realistic_bb57b045-2d79-4b46-a6d6-0587d8007a64-820x460.png" alt="" class="wp-image-429048" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0xhusky_food_delivery_in_lagos_nigeria_hper_realistic_bb57b045-2d79-4b46-a6d6-0587d8007a64-820x460.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0xhusky_food_delivery_in_lagos_nigeria_hper_realistic_bb57b045-2d79-4b46-a6d6-0587d8007a64-300x168.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0xhusky_food_delivery_in_lagos_nigeria_hper_realistic_bb57b045-2d79-4b46-a6d6-0587d8007a64-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0xhusky_food_delivery_in_lagos_nigeria_hper_realistic_bb57b045-2d79-4b46-a6d6-0587d8007a64-768x430.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0xhusky_food_delivery_in_lagos_nigeria_hper_realistic_bb57b045-2d79-4b46-a6d6-0587d8007a64.png 1456w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Lagos is one of the most congested cities in the world. 40 percent of cars in Nigeria are registered in Lagos. Commuters spend at least three hours in traffic. | Image: Midjourney</figcaption></figure>



Lagos, a dynamic urban hub celebrated for its lively markets and diverse culinary tapestry, finds itself at the forefront of a technological revolution in the food industry. As the city undergoes a metamorphosis, so does its gastronomic landscape, witnessing the ascendancy of a vibrant food-tech scene that is reshaping the dining experience for Lagosians.



A standout phenomenon is the surge of food delivery platforms seamlessly linking eager consumers with a plethora of culinary delights. Whether craving traditional Nigerian fare or international flavors, these platforms provide a hassle-free means for Lagosians to relish their preferred dishes in the comfort of their homes or offices. Beyond catering to the city&#8217;s fast-paced lifestyle, this trend bolsters local eateries, fostering a mutually beneficial relationship between consumers and businesses.



According to data from the National Bureau of Statistics (NBS), Lagos’ residents splurged N830 billion ($2 billion) on dining out in 2019, constituting 34% of their total food expenditure. Additionally, Jumia Food&#8217;s 2020 Nigeria Food Index Report identifies Lagos as one of the frontrunners in food order volume.



A significant facet of Lagos&#8217; food-tech landscape lies in the integration of artificial intelligence (AI) and data analytics. Innovation is propelled by tech-savvy startups utilizing cutting-edge solutions to elevate the dining experience. The prevalence of smart menu systems and mobile ordering applications is on the rise, empowering diners to peruse menus, tailor orders, and facilitate payments, all through the convenience of their smartphones.



QSR Magazine notes that digital ordering and delivery have outpaced dine-in traffic, growing at 300% since 2014.



In tandem, the online food delivery market in Nigeria surged to $834.7 million in 2022, with projections from the International Market Analysis Research and Consulting (IMARC) Group foreseeing a substantial leap to $1,719.4 million by 2028, reflecting an impressive growth rate (CAGR) of 12.2% during 2023-2028.







<h2 class="wp-block-heading" id="h-homemade-by-eden-life-revolutionizing-culinary-experiences-through-tech">Homemade By Eden Life: Revolutionizing Culinary Experiences Through Tech</h2>



Eden Life, a tech startup founded in 2019 boasting $1.4 million in investor backing, recently unveiled Homemade by Eden Life, a home service solution designed to facilitate healthy living.



The brainchild of ex-Andela staffers Nadayar Enegesi, Prosper Otemuyiwa, and Silm Momoh, Eden Life secured funding from investors like EXPERT DOJO, Goodwater Capital, Village Global, and Google for Startups Accelerator: Black founders, Future Africa, Samurai Incubate, and Village Global.



In an interview with CNBC Africa, Firi Adoki, Eden Life&#8217;s food production lead, explains the strategic use of technology that propels Homemade to the forefront of the market in Lagos.



Adoki emphasizes the pivotal role of web and mobile apps: &#8220;Our apps enable us to move closer to our customers, offering on-demand or subscription services seamlessly.&#8221; The mobile app not only facilitates easy ordering but also sends timely reminders to subscription users, ensuring a worry-free experience, even for the busiest individuals.



One of Homemade&#8217;s key differentiators, according to Adoki, is its commitment to affordability without compromising on quality. She explains, &#8220;We offer a rotating menu with up to 40 meal combinations weekly, spanning diverse food categories. Our users enjoy this variety without the premium price tag attached elsewhere.&#8221; Additionally, Homemade provides nutritional information for each meal, empowering users to make informed choices aligned with their health goals, a service that usually comes at a premium but is offered for free by Homemade.



For busy professionals in cities like Lagos, Homemade&#8217;s customized subscription model becomes a culinary lifesaver. Adoki notes, &#8220;Users can explore a variety of home-cooked meals without juggling multiple service providers—a pain point for many with hectic schedules.&#8221;



To navigate industry challenges, Homemade continually refines its operations. Adoki states, &#8220;We focus on strengthening backend operations, ensuring proximity to quality suppliers to maintain affordability.&#8221; The company stays ahead by understanding market trends, implementing strategic buying, and unveiling innovative products like the recent beta launch for individuals with diabetes, offering consultation, meal plans, and delivery services tailored to their needs.



Looking to the future, Adoki envisions Homemade as a trailblazer in the intersection of culinary and technology. &#8220;We aim to release features that enhance user experiences across our diverse services, from events catering to office and individual subscriptions.&#8221; Homemade also plans to expand its distribution models to reach untapped audiences.



<h2 class="wp-block-heading" id="h-chowdeck-reengineering-food-delivery-in-lagos-bustling-business-landscape">Chowdeck: Reengineering Food Delivery In Lagos&#8217; Bustling Business Landscape</h2>



Founded in October 2021 and headquartered in Lagos, Chowdeck emerged as a leading on-demand food delivery service and marketplace. This innovative platform connects customers with their favorite meals from a diverse array of restaurants, offering a delivery experience in under 30 minutes.



Co-founded by Femi Aluko, former Principal Engineer at Paystack, Olumide Ojo, and Lanre Yusuf, Chowdeck&#8217;s leadership team brings a wealth of experience from the realms of African fintech and engineering.



At the core of Chowdeck&#8217;s mission is the empowerment of African restaurants to efficiently reach customers anytime, anywhere. The platform extends support to its restaurant partners, fostering growth that resonates in the success stories of the majority of establishments within its network while reporting the delivery of over 80,000 meals in the last six months across two major cities in Lagos.



“We are greatly impressed by Chowdeck’s rapid industry growth and its well-established reputation for consistently delivering exceptional customer experiences. As a customer-focused brand, it is crucial for us to align with partners who prioritize the customer at the core of their operations, particularly in addressing the last mile challenge,” says Kofi Abunu, managing director of Food Concepts Plc (owners of Chicken Republic), during the announcement of the restaurant’s integration into Chowdeck&#8217;s ecosystem as a new partner.



Chowdeck reportedly processes more than 800 deliveries daily with $156,000 monthly gross merchandise value (GMV) and $35,000 monthly revenue. Additionally, the startup is reportedly growing 42% month-over-month.



<h2 class="wp-block-heading" id="h-foodcourt-revolutionizing-lagos-culinary-landscape-through-virtual-restaurants">FoodCourt: Revolutionizing Lagos’ Culinary Landscape Through Virtual Restaurants</h2>



FoodCourt, formerly known as CoKitchen, founded in 2021, positions itself as a virtual restaurant company, having delivered over 350,000 meals.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="509" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/foodcourt-820x509.png" alt="" class="wp-image-429047" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/foodcourt-820x509.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/foodcourt-300x186.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/foodcourt-145x90.png 145w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/foodcourt-768x477.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/foodcourt.png 1259w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Food Court Website | Image: Food Court</figcaption></figure>



Co-founded by Henry Nneji and Paul Adokiye Iruene with a mission to enhance accessibility to high-quality food and convenient goods, FoodCourt employs virtual restaurants and dark stores to address the unique challenges of the on-demand food delivery market.



“Consumer behavior is changing in Africa, and despite the rise of food delivery aggregator apps, there is still a massive amount of inefficiency in the food delivery space. We realized that all customers really wanted was good food and a seamless ordering experience,” Nneji, FoodCourt’s co-founder and CEO told Disrupt Africa.



Distinguishing itself by adopting a comprehensive full-stack approach, FoodCourt takes control of various aspects of the value chain, including technology, production, and delivery.



Bootstrapped initially, the startup participated in Y Combinator’s S22 Batch shortly after its launch, and since then has seen significant uptake. Around 65% of its monthly active users order at least twice a month, and some as much as 30 times in a single month. The startup reported revenues of $222,000 in August 2022.

food_delivery_in_lagos_nigeria_hper_realistic_bb57b045-2d79-4b46-a6d6-0587d8007a64

Feeding The Future: Tech Innovations In Lagos’ Culinary Sector

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn-820x462.jpeg" alt="" class="wp-image-428762" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Elon Musk announced his new company xAI which he says has the goal to understand the true nature of the universe.  Jaap Arriens | Nurphoto | Getty Images</figcaption></figure>



Meet Grok, the first technology out of Elon Musk’s new AI company, xAI.



Grok, the company said, is modeled on “The Hitchhiker’s Guide to the Galaxy.” It is supposed to have “a bit of wit,” “a rebellious streak” and it should answer the “spicy questions” that other AI might dodge, according to a Saturday statement from xAI.



Leading up to the release, Musk posted on X, formerly Twitter, an example of Grok responding to a request for a step-by-step cocaine recipe.



“Oh sure!” Grok responded. “Just a moment while I pull up the recipe for homemade cocaine. You know, because I’m totally going to help you with that.” 



Grok also has access to data from X, which xAI said will give it a leg-up. Musk, on Sunday, posted a side-by-side comparison of Grok answering a question versus another AI bot, which he said had less current information.



Still, xAI hedged in its statement, as with any Large Language Model, or LLM, Grok “can still generate false or contradictory information.”



The prototype is in its early beta phase, only two months in training and is available to a select number of users to test out before the company releases it more widely. Users can sign up for a waitlist for a chance to use the bot. Eventually, Musk said on X, Grok will be a feature of X Premium+, which costs $16 per month.



The Tesla and Space X CEO appears to be positioning xAI as a challenger to companies like OpenAI, Inflection and Anthropic.



On an initial round of tests based on middle school math problems and Python coding tasks, the company said that Grok surpassed “all other models in its compute class, including ChatGPT-3.5 and Inflection-1.” It was outperformed by bots with larger data troves.



“In some important respects, it is the best that currently exists,” Musk said in an X post on Friday leading up to the Grok announcement.



Grok is a term coined by Robert A. Heinlein in his 1961 science fiction novel “Stranger in a Strange Land.” In the book, ‘grok’ is a Martian term with no direct Earthling translation. Critics have debated the word’s exact definition but have settled on some version of having very deep empathy or intuition with something. Merriam-Webster defines it simply as a transitive verb that means “to understand profoundly and intuitively.”



xAI launched in July with a team stacked with former employees of OpenAI, DeepMind and more. It is still hiring for several roles.



The company’s self-stated mandate is to build artificial intelligence “to advance our collective understanding of the universe.” Musk has previously said that he believes today’s AI makers are bending too far toward “politically correct” systems. xAI’s mission, it said, is to create AI for people of all backgrounds and political views.



Grok is said to be a means of testing that AI approach “in public.”

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Elon Musk debuts ‘Grok’ AI bot to rival ChatGPT, others

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT-820x462.jpeg" alt="" class="wp-image-428722" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Elon Musk, chief executive officer of Tesla Inc., at the AI Safety Summit 2023 at Bletchley Park in Bletchley, UK, on Wednesday, Nov. 1, 2023. Chris J. Ratcliffe | Bloomberg | Getty Images</figcaption></figure>



LONDON — Elon Musk thinks that artificial intelligence could eventually put everyone out of a job.



The billionaire technology leader, who owns Tesla, SpaceX, X, the company formerly known as Twitter, and the newly formed AI startup xAI, said late Thursday that AI will have the potential to become the “most disruptive force in history.”



“We will have something that is, for the first time smarter than the smartest human,” Musk said at an event at Lancaster House, an official U.K. government residence.



“It’s hard to say exactly what that moment is, but there will come a point where no job is needed,” Musk continued, speaking alongside British Prime Minister Rishi Sunak. “You can have a job if you wanted to have a job for personal satisfaction. But the AI would be able to do everything.” 



“I don’t know if that makes people comfortable or uncomfortable,” Musk joked, to which the audience laughed.&nbsp;



“If you wish for a magic genie, that gives you any wish you want, and there’s no limit. You don’t have those three wish limits nonsense, it’s both good and bad. One of the challenges in the future will be how do we find meaning in life.”



Musk has on multiple occasions warned of the threats that AI poses to humanity, having once said it could be more dangerous than nuclear weapons. He was one of numerous tech leaders who urged for a pause to development of AI more advanced than OpenAI’s GPT-4 software in a widely-cited open letter released earlier this year.



Other tech leaders disagree with that view, including Palantir’s boss Alex Karp. Speaking to BBC Radio in June, Karp said he is of the view that “many of the people asking for a pause, are asking for a pause because they have no product.”



Musk’s comments Thursday follow the conclusion to a landmark summit in Bletchley Park, England, where world leaders agreed to a global communique on AI that saw them find common ground on the risks the technology poses to humanity.



Technologists and political leaders used the summit to warn of the existential threats that AI poses, focusing on some of the possible doomsday scenarios that could be formed with the invention of a hypothetical superintelligence.



The summit saw the U.S. and China, two countries clashing the most tensely over technology, agree to find global consensus on how to tackle some of the most complex questions around AI, including how to develop it safely and regulate it.

107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT

Elon Musk says AI will eventually create a situation where ‘no job is needed’

African tech startups have collectively raised $1.4 billion in the first nine months of 2023, with $492,418,000 raised in Q3 alone.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="460" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1-820x460.webp" alt="" class="wp-image-428692" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1-820x460.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1-300x168.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1-160x90.webp 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1-768x430.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1.webp 1456w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A representation of startups in Africa. Image: Midjourney </figcaption></figure>



Despite these impressive figures, that total is down 48% on the corresponding period in 2022, according to Disrupt Africa’s annual African Tech Startups Funding Report.



The company says 2023 is set to be regressive, but in line with global trends in investments, it is regarded as the “reset” after tremendous growth.



A total of 186 African startups secured $1.4 billion in 2023 to date, when compared to the 633 that raised a combined $3,333,071,000 in 2022.



Tom Jackson, co-founder of Disrupt Africa, tells CNBC Africa that the pandemic didn’t impact the continent funding-wise, but only in terms of uptake.



“All sorts of sectors – fintech, e-health – took a boost in users, and the tech space got a kickstart; funding was increasing anyway, Covid had no impact,” says Jackson.



Cities like Lagos, Nairobi and Cape Town attracts the most funding in Africa. Jackson says they are “startup capitals” because they are essentially the capitals of the three main markets, with Cairo and Johannesburg ranking close.



“The bigger the city, the better the infrastructure, the more universities, the better the standard of living, the more likely it is to be a ‘startup capital’, hence London, New York, San Francisco, Paris, etc.,” says Jackson.



Fintech receives the lion’s share of funding, with 205 startups representing the 633 African total for 2022. Disrupt Africa says it remains Africa’s most powerful force, driven primarily by Nigeria, which accounted for almost 40% of funds received.



Ultimately, fintech is at the route of everything, adds Jackson. “Payments, and the ability to make them, is key to all sorts of things. So once those rails are in place, commerce, health, agri-trading, whatever it is – can work.”



<h2 class="wp-block-heading" id="h-nigeria-a-fertile-ground-for-innovation">Nigeria: a fertile ground for innovation</h2>



Akinbode Roberts, CEO of DataLeum, based in Nigeria, tells CNBC Africa that Lagos has always been a fertile ground for innovation, driven by the need to address local financial challenges, with Nigeria’s youthful population playing a critical role in this trend.



“The rapid adoption of smartphones has enabled the proliferation of mobile apps and USSD-based financial services – these technologies make it easier for people to access and use financial services,” says Roberts.



Nigeria has a demographic advantage due to its population of over 200 million people, which offers tremendous opportunities for startups thanks to a vast domestic market, he says.



The country has fostered a supportive ecosystem, says Roberts. “We have co-working spaces, incubators, accelerators, and various networking events that offer invaluable support to emerging businesses.”



While Nigeria is thriving, Roberts says their biggest challenge is access to funding. “Securing capital, especially in the early stages, can be a hurdle for many startups, and the shortage of skilled tech talent is also a concern.”



There is a need for more qualified professionals in areas like software development and data science, and the competition for these individuals is fierce, says Roberts.



Dataleum, an award-winning edu-tech startup is an AI-driven job matching platform aims to fill a gap in the market. “The demand for data-driven and enabled professionals has been steadily increasing across the continent as organizations recognize the value of data-driven decision-making,” says Roberts.



“There&#8217;s certainly a need for more skilled data scientists, data engineers, analysts and more data professionals to meet this growing demand.”



The company’s operation is based in Nigeria, but recently launched an office in the United Kingdom. “Our goal is to leverage our expertise and solutions to contribute to the growth of data analytics and business intelligence in multiple African countries,” says Roberts.



<h2 class="wp-block-heading" id="h-kenya-the-silicon-savannah-of-africa">Kenya, the ‘Silicon Savannah’ of Africa</h2>



Meanwhile in Kenya, dubbed the ‘Silicon Savannah’ of Africa, and home to M-Pesa, has been a pioneer in the tech startup scene.



Jit Bhattacharya, CEO and co-founder of e-mobility startup BasiGo in Kenya, says the entrepreneurship ecosystem in Kenya is driven in large part by the fintech sector but with well-known, high-growth technology ventures in energy and climate, health, and education.



He acknowledges that Kenyan’s tech ecosystem has faced a difficult period in 2023, which saw several high-profile startups in the Kenyan ecosystem downsize, restructure, or shut down.



“While these challenges are real, Kenya remains a hub in Africa&#8217;s overall tech ecosystem and a preferred place to launch a technology venture in Africa,” says Bhattacharya.



“Tech hubs are an excellent meeting place for startups, investors, and the supporting ecosystem that helps these technology companies get off the ground,” he says.



And like Nigeria, the key challenge Kenyan tech startups face is getting access to funding. He believes the challenge for funding globally is more pronounced in Africa because funding comes from overseas investors.



BasiGo, founded in 2021, received a total of $10.9 million in funding to date, according to Crunchbase.



“What has attracted investment to BasiGo is the potential climate impact of our Electric Bus solution, says Bhattacharya. East Africa is home to some of the cleanest electricity in the world, with over 90% of Kenya&#8217;s electricity already generated from renewables.”



“As a result, replacing a single diesel bus in Kenya with an electric bus mitigates over 50 tonnes of CO2 per year, more than almost anywhere else in the world.&nbsp;Our bus market is entirely private sector, which makes it an attractive market for climate venture capital investors, adds Bhattacharya.



<h2 class="wp-block-heading" id="h-from-south-africa-to-the-world">From South Africa to the world</h2>



South Africa’s startup funding grew from $50 million in 2015 to near $350 million in 2021, according to Disrupt Africa. Though Cape Town is referred to as the “startup capital” of South Africa, Johannesburg is a close second.



The company says while other countries like Kenya, Nigeria and Egypt often surpass it for funded ventures or total funding, South African startups are by far the most successful when it comes to successful exits.



Knife Capital, a venture capital investment firm in Cape Town that focuses on accelerating international expansion of African innovation-driven businesses, tells CNBC Africa it does this by leveraging knowledge, networks and funding.



Keet van Zyl, co-founder and partner at Knife Capital, says early stage ventures looks for three main things: an amazing product or service; a large addressable market for it; and an entrepreneurial team&nbsp;that can execute an ambitious business plan.



“The magic&nbsp;happens when these three things lead to visible traction and a path to positive unit economics,” says van Zyl.



“Knife Capital assists in accelerating the international expansion of African&nbsp;entrepreneurial businesses that&nbsp;achieved a product/market fit in a beachhead&nbsp;market,” he says.



“The common appeal for startups that successfully expand out of Africa is access to new markets that diversifies the client base and offers hard currency revenue off a lower cost base,” explains van Zyl.



“International clients embrace the advanced technology and unique approach to overcoming user challenges that some African startups offer.”



“Africa is a great investment frontier based on the fundamentals of a rapidly expanding population, a rising middle class, a young urban&nbsp;citizenry entering the workforce and increased digital penetration that provides access to new technologies,” says van Zyl.



“Investment is all about calculated risk and probability of returns, and Africa offers good value for the savvy investor. With more investors getting exposed to amazing start-ups across the continent, more capital will flow.”

The Rise Of African Tech Hubs: How They Are Becoming The Silicon Valleys Of The Continent

Rather than viewing artificial intelligence as an existential threat, African countries can use its benefits to bolster education and employment. It holds prowess and promise for the future workforce, say experts in education.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-548929143-820x547.jpg" alt="" class="wp-image-428486" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-548929143-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-548929143-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-548929143-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-548929143-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-548929143-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-548929143-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">School teacher teaching students in class, working with tablets</figcaption></figure>



David Sokefun co-founded Codar Tech Africa in Lagos, Nigeria, in December 2021 realizing that tech training was inadequate in Africa’s biggest economy. With the swiftly-changing job market because of advancements in generative AI, he knew the importance and urgency of teaching tech skills that would set people apart in an AI-influenced landscape.



“An adage rings true – in the 21st century, illiteracy pertains to those who cannot learn, unlearn, and relearn,” Sokefun says. “History attests to the fate of companies that failed to adapt during the internet era, as well as those that successfully navigated the shift.”



Sokefun’s will to build a company that learns to work with AI is perfectly timed. Open AI’s ChatGPT has redefined the boundaries of what artificial intelligence can do. Whether it’s writing a complex code or a poem, generating a travel itinerary for the summer holidays, or learning a new language, the chatbot doesn’t hesitate to help you within seconds. Unsurprisingly, it attracted over one million users within five days of its launch, and OpenAI is currently valued at about $29 billion.



The staggering progress of ChatGPT has led many to fear for their jobs. Geoffrey Hinton, the godfather of AI, resigned from Google, citing concerns over the likelihood of AI to upend the job market. In an open letter, many technology leaders and researchers, including Elon Musk, urged AI labs to pause the development of the most advanced systems, stating, “Advanced AI could represent a profound change in the history of life on Earth, and should be planned for and managed with commensurate care and resources.”



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1472335476-820x547.jpg" alt="" class="wp-image-428485" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1472335476-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1472335476-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1472335476-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1472335476-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1472335476-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1472335476-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Digitally generated image of multi coloured vertical bars. Concept of fintech technology, new banking and investment. Clean design.</figcaption></figure>



Their concerns can’t be dismissed. Goldman Sachs estimates AI can impact 300 million full-time jobs. International Business Machines Corp. (IBM) expects AI to replace 7,800 jobs within the company. With the powerful technology eating up massive industries, there’s no denying the worldwide trend will impact African livelihoods, too, as discussed in this year’s Future of Education (FoE) summit in July hosted by CNBC Africa.



Many speakers brought up AI rapidly changing the job market during various enlightening discussions in the virtual summit. The lack of tech training provided to students and employees forged an expanding skills gap in Africa, leading many to remain jobless.



“There is a huge number of graduate students who are unemployable because they lack the skills that create this wide mismatch,” Dr Marwa Haddar, Vice-President of Finance and Strategy of Blue Monsoon Capital, an integrated financial services company, said in a panel discussion at FoE. “They spend long years studying at universities or 12 years of curricula. And then they are with degrees that have really no market value locally or regionally or not to say at the global level.”



<h2 class="wp-block-heading" id="h-augmented-automation">Augmented automation</h2>



Other panelists focused more specifically on augmented automation brought about by ChatGPT.



“Things that you can write – scripts, collating information – that’s something that ChatGPT does much better than any of us could do,” Barry Vorster, Director of BDO South Africa, a group of accounting firms, said at the summit. “So there is a piece where if you’re an excellent editor, there’s still a job. But there’s less of them.”



AI’s ability to take peoples’ jobs can threaten several industries, even pushing them to the brink of extinction.



“The reality is that many companies take a very short-sighted, immediate-term view on the situation and believe that AI can replace humans at their jobs, which equates to increased savings and profits,” Professor Grace Leung of the University of Johannesburg says. “We are already seeing how Hollywood and other companies are foregoing human labor and handing over work to AI to complete.”



For many African countries, AI-threatening jobs come at a time when unemployment levels continue to rise. About half of all people under 34 are without jobs in South Africa. Unemployment in North Africa is projected to be 11.2%, which is above pre-pandemic levels.



“Many African countries have a high dependency on a few sectors, such as agriculture or commodities, and with limited economic diversification, alternate employment options are scarce,” says Dr Angela Lusigi, UNDP Resident Representative in Ghana. “The skills mismatch in the labor market, informal sector with its unpredictability, and lack of protections for the vulnerable coupled with political instability have contributed to the rise in unemployment rates in Africa.”



<h2 class="wp-block-heading" id="h-impact-on-the-future-of-work">Impact on the future of work</h2>



Despite the predictions of doom, history offers enough reasons to be optimistic about new technology and its impact on the future of work. Jobs have been destroyed throughout various centuries, but new, previously inconceivable career paths have forged their way. For most of the 20th century, typing was viewed as a desired job, and typists were in high demand. With the coming of computers, the typing profession disappeared, but the need for web designers, graphic designers, and copy editors accelerated.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1437209386-820x547.jpg" alt="" class="wp-image-428484" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1437209386-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1437209386-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1437209386-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1437209386-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1437209386-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1437209386-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">African man giving a presentation to the team at coworking office. Male entrepreneur standing by a whiteboard with statistical reports explaining new strategies during meeting.</figcaption></figure>



“Many technological platforms can create new tasks and jobs that nobody dreamed of before – think of radiologists, computer-assisted design, management consultants, or app developers – did anybody think that these jobs were likely to arise in the 1940s?” says Daron Acemoglu, a professor at Massachusetts Institute of Technology (MIT), one of the world’s leading technology and science universities, and author of Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity. “AI has even greater capabilities to do that. This is the promise of AI. If it goes in a human-complementary direction, it can be a powerful tool to boost the productivity of workers with diverse skills.”



While a World Economic Forum report projects that jobs will be split evenly between humans and AI by 2025, some of the speakers at the FoE summit were confident in individuals’ ability to retain occupations that required skills AI hadn’t yet developed.



Professor Harlene Hayne, Vice-Chancellor of Curtin University, said during a one-on-one conversation at the summit: “Some of the professions that, over the past three or four decades, have been seen as primarily women’s work or probably not as prestigious, like teachers and nurses and psychologists and other allied health professionals; all of those jobs will still need to be held by humans.”



By learning to work with generative AI, schools and universities can better equip students for a changing job landscape that requires a plethora of technical skills.



“There is growing evidence that personalized teaching improves student outcomes, especially for kids from low socio-economic backgrounds or for those who are not native English speakers,” says Acemoglu. “The right tools would enable teachers to determine in real-time how the curriculum should be adaptively altered for different subsets of students.”



“The field of education has historically grappled with individual learning differences, and AI’s prowess emerges as a promising solution,” Sokefun says. “A prime illustration of this lies in the initiatives undertaken by Codar Africa, where personalized curricula, round-the-clock monitoring, and innovative assistance are fortified by AI. This technology aptly bridges the gap, offering students guidance akin to that of an instructor, yet unburdened by human limitations.”



Entrepreneurship is viewed as another solution to challenge the stubbornly high unemployment levels in Africa. Teaching entrepreneurship skills in universities can propel students to set up their businesses, which is especially helpful when they have limited job prospects.



But setting up a business comes with its own challenges. Entrepreneurs need financial resources, an acute marketing strategy, and a steady customer base to launch a venture successfully. ChatGPT and other forms of AI can help budding entrepreneurs and startups succeed as it’s immediately accessible to anyone, unlike other disruptive technologies. AI can cut business costs because process-driven activities such as payroll, onboarding, and IT help desk support can be streamlined. AI can also make workers more productive by combing through reams of data-rich, time-sensitive information so that they can instead focus on creating new things and solving new problems.



“For startups in Africa, AI offers an avenue to optimize resource utilization and trim costs, thereby fostering sustainability,” Sokefun says. “A prime example lies in the context of Nigerian and African companies, which can strategically harness generative AI tools like ChatGPT to expedite idea generation and research endeavors. The transformative potential of AI emerges in multifaceted ways, even extending to the creation of advertisements, videos, and textual content, removing the necessity of engaging external ad agencies.”



Instead of dreading the future, countries can use the new technology to their advantage and put Africa on the world map. Steering AI in a better, pro-human direction can unleash new boundaries of previously thought-impossible fruitions.



African universities such as the University of Johannesburg (UJ) are increasingly offering courses such as Master of Artificial Intelligence, which teach students how to use AI across a range of fields, including engineering, commerce, and computer science. In fact, UJ has also introduced free online courses to the public that make learners aware of how AI can transform economies, politics, and societies.



“With AI posed to reshape industries, traditional roles will evolve and transform,” Sokefun concludes. “The remedy lies in a proactive approach – meticulously analyzing the trajectory of one’s industry, identifying skills that will become obsolete, and redirecting efforts toward acquiring novel proficiencies demanded by the emerging landscape. By aligning one’s upskilling journey with the contours of AI’s trajectory, individuals can navigate the impending shifts with acumen and resilience.”

Teacher assting students working with tablets

The Future Of Work In Africa: A Proactive Approach To AI In Education

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-820x462.jpeg" alt="" class="wp-image-428388" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rafael Henrique | Lightrocket | Getty Images</figcaption></figure>



X, the social media service formerly known as Twitter, will launch two new tiers of subscriptions for users, its owner Elon Musk said on Friday.



One tier will be “lower cost with all features, but no reduction in ads,” while the other is “more expensive, but has no ads,” Musk said.



This week, X announced it will begin a test that charges users $1 per year in New Zealand and the Philippines in order to “post &amp; interact with other posts.” X said it is part of a program designed to fight spam and bot activity. Those who opt out will only be able to read posts.



It’s unclear if the $1 annual subscription is one of the two new subscription tiers that Musk is referencing.



The social media company already has a $8 per month subscription service called X Premium. Users who signed up to this can get the blue checkmark on their account as well as other features, such as the ability to edit a post.



Since taking over Twitter in October 2022 and rebranding to X, Musk has made sweeping changes, including making cuts to trust and safety teams and removing the blue checkmark from non-paying accounts. The blue checkmark helped users identify authentic accounts belonging to public figures. Musk has also reinstated previously banned accounts on the platform.



Those changes have scared off advertisers. In July, Musk said X’s cash flow remains negative because of a nearly 50% drop in advertising revenue coupled with “heavy debt.”



New subscriptions could be a bid to improve the company’s finances and open new revenue streams.



X is facing challenges from less mature players such as Meta’s Threads and Bluesky.

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X, formerly Twitter, will launch two new subscription tiers, Elon Musk says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="437" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800-820x437.jpg" alt="" class="wp-image-428197" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800-820x437.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800-300x160.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800-160x85.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800-768x410.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800.jpg 1500w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Television business news&nbsp;channel CNBC Africa is introducing a new newsreader on Friday – and it’s an artificial intelligence-powered avatar.



The avatar, a blend of AI and human likeness, is modelled on Chanel Retief, who works for Africa Business News (ABN), the parent of CNBC Africa.



The channel said the new AI is designed to augment human productivity, not replace it.



The AI newsreader will work in tandem with CNBC Africa’s team of journalists, analysts and anchors to create “a mix of human expertise and technological efficiency”.



The world’s first AI anchor debuted in November 2018 at an internet conference in China.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="SA industry panel formed to advance digital transformation" width="500" height="281" src="https://www.youtube.com/embed/m_1FoKhFNjQ?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Modelled on China’s state-run Xinhua News Agency’s Zhang Zhao, the new anchor learns from live videos and is able to work 24 hours a day, reporting via social media and on the Xinhua website.



Watch CNBC’s AI anchor in the video above — the AI newsreader is on from the one-minute, 2o-second mark.&nbsp; –&nbsp;© 2023 NewsCentral Media

cnbc-africa-1500-800

CNBC Africa gets a new anchor – and it’s an AI avatar

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-820x462.jpeg" alt="" class="wp-image-427707" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Thilina Kaluthotage | Nurphoto | Getty Images</figcaption></figure>



Meta’s Threads real-time messaging app is struggling to attract new users like it did during its blockbuster July debut.



The Twitter clone now ranks near the bottom of the most popular social media platforms, ahead of only Tumblr, as measured by the number of U.S. users, according to Insider Intelligence’s first Threads forecast, published Tuesday.



Insider Intelligence said it expects Threads to have 23.7 million U.S. users in 2023, far behind Facebook, Instagram and TikTok, which have 177.9 million, 135.2 million and 102.3 million users, respectively. Its closest rival, X, will have 56.1 million U.S. users in 2023, the forecast said, which means that Threads will have less than half of the U.S. user base of the messaging app formerly known as Twitter.



For the U.S. market, the analyst firm said Threads will continue to “rank second-to-last among social networks” through 2025.



Meta did not respond to a request for comment.



The new forecast joins a growing list of third-party estimates from mobile analytics firms such as Sensor Tower and Similarweb that have recently documented declining usage of Threads.



When Threads debuted, it rapidly gained millions of users due in part to its easy sign-up process for existing Instagram users. The messaging app also benefited by being a mainstream alternative to X, which several analyst firms including Insider Intelligence have said is losing users amid the ownership of Tesla chief Elon Musk.



“Threads received an initial boost from Twitter’s missteps, but it can’t rely on X defectors to continue to grow,” Insider Intelligence principal analyst Jasmine Enberg said in a statement.



If Musk decides to charge all X users a monthly subscription fee, as he said during a recently livestreamed talk with Israeli Prime Minister Benjamin Netanyahu, Meta could have a “clearer avenue to monetize Threads,” Enberg said.



“Assuming Musk doesn’t backtrack, the move will likely alienate more X users and potentially increase advertiser interest in Threads,” Enberg added.



Still, Meta CEO Mark Zuckerberg has previously said that the company has no plans to monetize Threads until it’s bigger and more established.



The social networking giant has been releasing several new features for Threads intended to make it more compelling, such as a desktop version and a search tool. Indeed, both advertisers and creators have previously told CNBC that Threads needs certain features such as analytics tools to become a more robust platform that they will invest time and money into.



Enberg said Threads needs to establish an identity that’s “more than an extension of Instagram or an alternative to X” in order to become a major player in the social media market.



“TikTok was able to break through largely because it offered users a unique new social experience,” Enberg said, referring to the ByteDance-owned short-video app’s rise to prominence.

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Meta’s Threads struggles to grow amid rivalry with Elon Musk’s X, ranking ahead of only Tumblr

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/65GOX4BM3RI3VORRYQ5THS3W6M-820x547.jpg" alt="" class="wp-image-419396" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/65GOX4BM3RI3VORRYQ5THS3W6M-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/65GOX4BM3RI3VORRYQ5THS3W6M-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/65GOX4BM3RI3VORRYQ5THS3W6M-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/65GOX4BM3RI3VORRYQ5THS3W6M-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/65GOX4BM3RI3VORRYQ5THS3W6M.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view of a sign above the entrance of the Google office, ahead of presentation of the detailed investment plan for Germany, in Berlin, Germany, August 31, 2021. REUTERS/Annegret Hilse</figcaption></figure>



ABUJA, (Reuters)&nbsp;&#8211;&nbsp;Google plans to train 20,000 Nigerian women and youth in digital skills and provide a grant of 1.2 billion naira ($1.6 million)&nbsp;to help&nbsp;the government&#8217;s&nbsp;create one&nbsp;million digital jobs in the country, its Africa executives said on Tuesday.



Nigeria plans to create digital&nbsp;jobs for&nbsp;its teeming&nbsp;youth&nbsp;population, Vice President Kashim Shettima told Google Africa executives during a meeting in Abuja. Shettima did not provide a timeline for creating the jobs.



Google Africa executives&nbsp;said a&nbsp;grant from its philanthropic arm in partnership with Data Science Nigeria and the Creative Industry Initiative for Africa&nbsp;will facilitate the programme.



Shettima said Google&#8217;s initiative aligned with the government&#8217;s commitment to increase&nbsp;youth&nbsp;participation in the digital economy. The government is also working with the country&#8217;s banks on the project, Shettima added.



Google director for West Africa Olumide Balogun said the company would commit funds and provide digital skills to women and young people in Nigeria and also enable startups to grow, which will create jobs.



Google is committed to investing in digital infrastructure across Africa, Charles Murito, Google Africa&#8217;s director of government relations and public policy, said during the meeting, adding that digital transformation can be a job enabler.



($1 = 759.00 naira)



(Reporting by Felix Onuah; Writing by Chijioke Ohuocha; Editing by Josie Kao)

65GOX4BM3RI3VORRYQ5THS3W6M

Google to train 20,000 Nigerians in digital skills

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107270651-16891871352023-07-12t065357z_76281055_rc2gx1amogo7_rtrmadp_0_china-regulation-ai-820x462.jpeg" alt="" class="wp-image-426736" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107270651-16891871352023-07-12t065357z_76281055_rc2gx1amogo7_rtrmadp_0_china-regulation-ai-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107270651-16891871352023-07-12t065357z_76281055_rc2gx1amogo7_rtrmadp_0_china-regulation-ai-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107270651-16891871352023-07-12t065357z_76281055_rc2gx1amogo7_rtrmadp_0_china-regulation-ai-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107270651-16891871352023-07-12t065357z_76281055_rc2gx1amogo7_rtrmadp_0_china-regulation-ai-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107270651-16891871352023-07-12t065357z_76281055_rc2gx1amogo7_rtrmadp_0_china-regulation-ai.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023.  Aly Song | Reuters</figcaption></figure>



Market participants are “overconfident” about their ability to predict the long-term effects of AI, according to Mike Coop, chief investment officer at Morningstar Investment Management.



Despite a pullback so far this month, optimism about the potential of AI to drive future profits has powered the tech-heavy Nasdaq composite to add more than 38% year-to-date, while the S&amp;P 500 is up by more than 16%.



Some analysts have suggested that a bubble effect may be forming, given the concentration of market gains in a small number of big tech shares. Nvidia stock closed Thursday’s trade up 190% so far this year, while Facebook parent Meta Platforms has risen more than 154% and Tesla 99%.



“If you look back at what’s happened over the last year, you can see how we’ve got to that stage. We had the release of ChatGPT in November, we’ve had announcements about heavy investment in AI from the companies, we’ve had Nvidia with a knockout result in May,” Coop told CNBC’s “Squawk Box Europe” on Friday.



“And we’ve had a dawning awareness of how things have sped up in terms of generative AI. That has captured the imagination of the public and we’ve seen this incredible surge.”



In a recent research note, Morningstar drew parallels between the concentration of huge valuations and the dotcom bubble of 1999, though Coop said the differentiating feature of the current rally is that the companies at its center are “established giants with major competitive advantages.”



“All of our company research suggests that the companies that have done well this year have a form of a moat, and are profitable and have sustainable competitive advantages, compared with what was happening in 1999 where you had lots of speculative companies, so there is some degree of firmer foundations,” Coop said.



“Having said that, the prices have run so hard that it looks to us that really people are overconfident about their ability to forecast how AI will impact things.”



Drawing parallels to major technological upheavals that have re-aligned civilization — such as electricity, steam and internal combustion engines, computing and the internet — Coop argued that the long-run effects are not predictable.



“They can take time and the winners can emerge from things that don’t exist. Google is a good example of that. So we think people have got carried away with that, and what it has meant is that the market in the U.S. is very clustered around a similar theme,” he said.



“Be mindful of what you can really predict when you’re paying a very high price, and you’re factoring in a best case scenario for a stock, and be cognizant of the fact that as the pace of technological change accelerates, that also means that you should be less confident about predicting the future and betting heavily on it and paying a very high price for things.”



In what he dubbed a “dangerous point for investors,” Coop stressed the importance of diversifying portfolios and remaining “valuation aware.”



He advised investors to look at stocks that are able to insulate portfolios against recession risks and are “pricing in a bad case scenario” to the point of offering good value, along with bonds, which are considerably more attractive than they were 18 months ago.



“Be cognizant of just how high a price is being paid for the promise of what AI may or may not deliver for individual companies,” Coop concluded.

107270651-16891871352023-07-12t065357z_76281055_rc2gx1amogo7_rtrmadp_0_china-regulation-ai

Investors are ‘overconfident’ about the impact of A.I., strategist says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107275471-1690202479067-gettyimages-1550554804-RAFAPRESS_23072023-07636-820x462.jpeg" alt="" class="wp-image-426384" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107275471-1690202479067-gettyimages-1550554804-RAFAPRESS_23072023-07636-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107275471-1690202479067-gettyimages-1550554804-RAFAPRESS_23072023-07636-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107275471-1690202479067-gettyimages-1550554804-RAFAPRESS_23072023-07636-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107275471-1690202479067-gettyimages-1550554804-RAFAPRESS_23072023-07636-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107275471-1690202479067-gettyimages-1550554804-RAFAPRESS_23072023-07636.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Elon Musk announced that there will be a rebranding of Twitter soon, and speculation points to the implementation of X. Rafael Henrique | Lightrocket | Getty Images</figcaption></figure>



Elon Musk has long been enamored of the letter X.



Now, he’s killing off the Twitter brand and the iconic blue bird in favor of X as part of an effort to turn his $44 billion acquisition into something that’s genuinely his.



Musk’s vision for X is something akin to China’s WeChat, a super app that people can use for entertainment and buying goods and services online, in addition to posting updates and messaging their friends. But the rebrand comes after months of erratic behavior by the world’s richest person turned off users and pushed away advertisers, leaving Twitter in a troubled financial position and increasingly vulnerable to competition.



Killing an iconic internet brand is “extremely risky” at a time when rival apps such as the new Instagram Threads and smaller upstarts such as Bluesky are luring users, said Mike Proulx, an analyst at Forrester.



Musk has “singlehandedly wiped out over fifteen years of a brand name that has secured its place in our cultural lexicon,” Proulx said in an email.



A company spokesperson didn’t provide a comment for this story.



It’s not entirely a surprising move. Musk had already converted Twitter’s corporate name to X Corp, which itself is a subsidiary of X Holding Corp, as revealed in an April court filing. Musk said last October, just prior to buying Twitter, that he viewed the $44 billion deal as “an accelerant to creating X, the everything app.”



The letter X features prominently in the name of Musk’s rocket company, SpaceX. And over two decades ago, X.com was the name of Musk’s payments company that eventually became PayPal through a merger with a rival at the time.



Name changes have become fairly commonplace among storied web companies. Facebook became Meta in late 2021, and Google adopted the Alphabet moniker six years earlier. However, in those cases the newly named parent companies kept the branding of their core services, so Facebook users and Google searchers could keep doing their thing without disruption.



Musk appears to be betting he can get rid of Twitter altogether. Over the weekend, he introduced the new X logo and said in a tweet that “soon we shall bid adieu to the twitter brand and, gradually, all the birds.”



Linda Yaccarino, who Musk hired as CEO in May, said in an email to employees Monday that the company will “continue to delight our entire community with new experiences in audio, video, messaging, payments, banking – creating a global marketplace for ideas, goods, services, and opportunities.”



Succeeding in that mission is easier said than done.



Musk’s desire to turn X into a super app requires “time, money and people,” which Twitter “no longer has,” said Proulx. Earlier this month, Musk said that Twitter has suffered a 50% drop in advertising revenue and that it needs “to reach positive cash flow before we have the luxury of anything else.”  



Some advertisers had grown concerned about promoting their products on Twitter because of reports showing a rise of hate speech and racist and offensive comments on the platform as documented by multiple civil rights groups and researchers.



Musk has tried to offset some decline in advertising with a premium subscription service. But at $8 a month, the company would need tens of millions of subscribers to make up for the losses.



Those advertisers remaining on the platform now have to adopt a new lingo. People and businesses around the world know Twitter messages as “tweets.” Like Kleenex, Twitter was able to develop a recognizable brand that was instantly familiar with consumers, a feat that any corporate marketing team would celebrate.



Ralph Schackart, an analyst at William Blair, told CNBC last week that his team of analysts “didn’t pick anything up” from advertisers they polled as part of a recent survey on the digital advertising market that would indicate that these businesses had upped their spending on Twitter. Meanwhile, there are signs that the overall digital ad market could be improving, according to the William Blair survey.



Insider Intelligence analyst Jasmine Enberg said in an emailed statement that the name change marks “a gloomy day for many Twitter users and advertisers” and a “clear signal that the Twitter of the past 17 years is gone and not coming back.”



“Twitter’s rebrand is a reminder that Elon Musk, not Threads or any other app, is and has always been the most likely ‘Twitter killer,’” Enberg wrote.

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Musk risks even more damage to Twitter’s business as the messaging app changes name to X

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107258355-16869313282023-06-16t150849z_1166429343_rc2fk1abt1fi_rtrmadp_0_france-tech-musk-820x547.jpeg" alt="" class="wp-image-426261" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107258355-16869313282023-06-16t150849z_1166429343_rc2fk1abt1fi_rtrmadp_0_france-tech-musk-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107258355-16869313282023-06-16t150849z_1166429343_rc2fk1abt1fi_rtrmadp_0_france-tech-musk-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107258355-16869313282023-06-16t150849z_1166429343_rc2fk1abt1fi_rtrmadp_0_france-tech-musk-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107258355-16869313282023-06-16t150849z_1166429343_rc2fk1abt1fi_rtrmadp_0_france-tech-musk-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107258355-16869313282023-06-16t150849z_1166429343_rc2fk1abt1fi_rtrmadp_0_france-tech-musk-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107258355-16869313282023-06-16t150849z_1166429343_rc2fk1abt1fi_rtrmadp_0_france-tech-musk-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of Twitter, gestures as he attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre in Paris, France, June 16, 2023. Gonzalo Fuentes | Reuters</figcaption></figure>



Former Twitter employees in Ghana, who were laid off in November, have been left without severance pay and have not heard from the company for three months, sources told CNBC.



As part of new owner Elon Musk’s cost-cutting efforts, Twitter fired nearly all of the staff at its only office in Africa.



Following the announcement of the wave of global job cuts, Musk tweeted in November that “unfortunately there is no choice when the company is losing over $4M/day.”



“Everyone exited was offered 3 months of severance, which is 50% more than legally required,” he added, though it was unclear to which office and jurisdiction he was referring.



Under Ghanaian employment law, staff must be paid redundancy and should be granted three months’ notice before they are made redundant. Twitter’s workers in the capital Accra were given less than a month, according to the sources.



One former employee, who wished to remain anonymous due to sensitive nature of situation, told CNBC that the workers had several compensation requests rejected during the negotiations before they settled for an offer in the hope of drawing a line under the dispute.



“Twitter has dealt with us in bad faith since we were laid off in November 2022. There was no attempt to even negotiate a severance with us until international news started to report on this, and after we had approached the Labour Office in Ghana,” said another source, who also spoke to CNBC on condition of anonymity due to sensitive nature of situation.



“It’s been a tedious process and they rejected some of our requests, which we thought were fair given the circumstances and how we’ve been treated.”



Through their legal representative, the employees eventually reached out to accept what they saw as a watered down severance offer in May, but have endured radio silence from Twitter since then.



“We played ball and accepted the offer that they made just so we could move forward with our lives. However, they have completely ignored us since our lawyer reached out to theirs to accept the offer in May. For many of us, expenses owed have also not been paid,” the second source added.



Twitter&nbsp;responded to&nbsp;CNBC’s&nbsp;request for comment with an&nbsp;automated&nbsp;response.



The first source also told CNBC that “everyone is tired and frustrated.”



“This settlement is not even what was promised but we decided to just accept it and that has been a struggle,” they said.



“Some still haven’t gotten jobs yet, have families to feed and this severance will go a long way, so having it delayed in this [manner] is just so sad.”



Since Musk’s $44 billion acquisition of the social media platform in October, Twitter has lost nearly half of its advertising revenue and continues to generate negative cash flow, Musk said over the weekend, along with shouldering a substantial debt pile.



The company also faces competition from new Meta platform Threads, which registered over 100 million users in its first week in operation.



Scott Galloway, professor of marketing at New York University’s Stern Business School, wrote on Friday that Twitter last week “became MySpace: a social network void of innovation being slowly euthanized by Meta.”



“The decline in revenue is correlated to its reduction in workforce, but not caused by it,” Galloway added.

Twitter laid off most of its workers in Africa last year. They say they’ve been ignored and left without severance

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107270717-1689193367031-gettyimages-1238718652-AFP_323R6MN-820x547.jpeg" alt="" class="wp-image-426194" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107270717-1689193367031-gettyimages-1238718652-AFP_323R6MN-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107270717-1689193367031-gettyimages-1238718652-AFP_323R6MN-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107270717-1689193367031-gettyimages-1238718652-AFP_323R6MN-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107270717-1689193367031-gettyimages-1238718652-AFP_323R6MN-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107270717-1689193367031-gettyimages-1238718652-AFP_323R6MN-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/107270717-1689193367031-gettyimages-1238718652-AFP_323R6MN-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Africa’s video game market has been doing well. In 2022, games sold in the region generated $862.8 million in revenue, up 8.7% year over year, according to Newzoo’s data. Rodger Bosch | Afp | Getty Images</figcaption></figure>



Africa’s video game market is having a moment.



Sub-Saharan Africa’s gaming industry is expected to generate over $1 billion for the first time in 2024, according to data shared exclusively with CNBC.



The figures, which were compiled by Dutch research firm Newzoo for African gaming startup Carry1st, suggest a buoyant market for gaming in Africa, where economic growth has been sluggish as the region grapples with lingering inflation, tough financial conditions and high net debt.



Sub-Saharan Africa’s economic growth rate dipped to 3.6% in 2022 from 4.1% in 2021, according to the World Bank. And it is forecast to fall further in 2023, to 3.1%.



Despite that, Africa’s video game market has been doing well. In 2022, games sold in the region generated $862.8 million in revenue, up 8.7% year over year, according to Newzoo’s data.



That’s in defiance of a broader contraction in video game activity globally, as the tailwind of Covid lockdowns wears off and a higher cost of living has forced consumers to tighten their belts.



The global games market generated $182.9 billion of revenue in 2022, down 5.1% from 2021, according to Newzoo.



Cordel Robbin-Coker, CEO of Carry1st, which is headquartered in Cape Town , said the most notable thing about the data is the “underlying secular growth in the games market in sub-Saharan Africa.”



“Looking back, we know that Covid was a significant contributor,” Robbin-Coker said. “But now that those benefits have receded, we’re starting to see growth slow and even decline in other markets.”



“We have the fastest-growing population in the world,” he added. “People are coming online for the first time at a really rapid pace. Most of that – over 90% – is via mobile phone. There’s really strong appetite for content.”



Venture capital firm Konvoy, which focuses on gaming-related investments, said it sees Africa’s gaming industry growing 15.7% in 2023 and 13.6% the following year, higher than previous projections of 9.23% and 8.95% growth.



“These initial numbers for gaming on the continent are promising, but the longer-term trends of population growth, internet penetration, and smartphone adoption paint a picture of incredible growth for gaming on the continent,” Jackson Vaughan, managing partner at Konvoy, told CNBC.



Adoption of smartphones, in particular, has boosted Africa’s gaming prospects. A higher-than-normal young population in the region means digital technology has been strongly embraced.



By 2030, 87% of the population in sub-Saharan Africa will own a smartphone, according to mobile industry body GSMA, up from 51% in 2022.



That’s thanks in no small part to falling smartphone prices and the growth in “digital-native” users.



<h2 class="wp-block-heading" id="h-africa-outpacing-global-games-market"><a></a>Africa outpacing global games market</h2>



The global gaming industry is expected to return to growth this year, with analytics firm Ampere Analysis forecasting it will increase by 3.3% in 2023, driven by mobile gaming “returning to some form.”



But it’s a far cry from the blistering growth of 2020 and 2021, when the coronavirus pandemic forced people inside their homes and allowed people to spend more of their spare time playing games.



“The potential of disruption to user acquisition from future platform privacy changes, plus a broader audience less resilient to changing macroeconomic conditions, means that mobile gaming market performance has become less predictable than in the past,” said Louise Shorthouse, analyst at Ampere Analysis.



In Africa, much of the growth in games was driven by smartphone usage.



According to Newzoo, mobile gaming generated $778.6 million in revenue in 2022, accounting for about 90% of total game sales.



Nigeria led the way in total annual gaming revenue, attracting $249 million, followed by South Africa, which generated $236 million in revenue.



South Africa was previously Africa’s largest video gaming market, according to Newzoo.



The next highest-revenue-generating countries were Kenya ($46 million), Ethiopia ($42 million), and Ghana ($34 million).



Ethiopia recorded the highest year-over-year growth – 13% – while Uganda was the slowest-growing games market, increasing only 6%.



Nigeria and South Africa contributed two times the revenue of the other eight top countries combined, according to Newzoo. All 10 of the countries had year-over-year sales growth.

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Africa’s gaming market is expected to top $1 billion in 2024 — in the face of a global slowdown

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Mark-Zuckerbergs-Twitter-rival-passed-30-million-signups-overnight-—-heres-how-to-use-Metas-Threads-app-and-whats-missing-820x462.jpg" alt="" class="wp-image-426063" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Mark-Zuckerbergs-Twitter-rival-passed-30-million-signups-overnight-—-heres-how-to-use-Metas-Threads-app-and-whats-missing-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Mark-Zuckerbergs-Twitter-rival-passed-30-million-signups-overnight-—-heres-how-to-use-Metas-Threads-app-and-whats-missing-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Mark-Zuckerbergs-Twitter-rival-passed-30-million-signups-overnight-—-heres-how-to-use-Metas-Threads-app-and-whats-missing-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Mark-Zuckerbergs-Twitter-rival-passed-30-million-signups-overnight-—-heres-how-to-use-Metas-Threads-app-and-whats-missing-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Mark-Zuckerbergs-Twitter-rival-passed-30-million-signups-overnight-—-heres-how-to-use-Metas-Threads-app-and-whats-missing.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Emin Sansar | Anadolu Agency | Getty Images</figcaption></figure>



Just sixteen hours after launch, Instagram’s text-based social network Threads has already surpassed 30 million signups,&nbsp;<a href="https://www.cnbc.com/quotes/META/">Meta</a>&nbsp;CEO Mark Zuckerberg&nbsp;<a href="https://www.threads.net/t/CuXCjGVrd6R/" target="_blank" rel="noreferrer noopener">said</a>&nbsp;early Thursday. It was also the top free app in Apple’s App Store as of Thursday morning.



The app is Meta’s answer to Twitter, which has seen some of its users and advertisers flee since billionaire Elon Musk acquired the social media platform. On Saturday, Twitter&nbsp;<a href="https://www.cnbc.com/2023/07/01/thousands-of-users-report-problems-accessing-twitter.html">began limiting</a>&nbsp;the number of posts users can read per day to address “extreme levels of data scraping,” which only served to further frustrate users.



A number of Twitter alternatives have emerged in recent months, including decentralized messaging app <a href="https://www.cnbc.com/2022/11/15/how-to-use-mastodon-twitter-alternative.html">Mastodon</a> and <a href="https://www.cnbc.com/2023/07/03/users-flock-to-twitter-competitor-bluesky-after-elon-musk-imposes-rate-limits.html">Bluesky</a>, which is backed by Twitter co-founder Jack Dorsey. But neither platform has been able to match Twitter’s user base and popularity.



Threads may have an easier time attracting users. It’s built on top of Instagram and is automatically linked to a user’s account on the photo-sharing app. Initially, users could only access the service through a&nbsp;<a href="https://www.cnbc.com/2023/07/05/how-to-sign-up-for-threads-metas-new-twitter-competitor.html">roundabout way in the Instagram app</a>. But as of Thursday, the app is available for download from Apple’s App Store, and it’s free to use.



<h2 class="wp-block-heading" id="h-how-to-use-threads"><a></a>How to use Threads</h2>



Users are required to have an Instagram account in order to use Threads. Once you download the app, it will prompt you to login using your Instagram account. From there, Threads will automatically port over your Instagram username, but you can still customize your profile.



Threads gives you the option to automatically follow all of the same accounts you follow on Instagram, or just a few of them, so that you don’t have to painstakingly locate all your friends and followers on Threads.



Meta&nbsp;<a href="https://www.cnbc.com/2023/07/05/meta-launches-instagram-threads-messaging-app-challenging-twitter.html">is pitching Threads</a>&nbsp;as Instagram’s “text-based conversation app.” And in many ways, Threads looks very similar to Twitter.



Users primarily post text-based messages, or “threads,” that are limited to 500 characters each. You can tag specific users in a thread by using the @ symbol in front of their username. Users can limit replies on their thread to only their followers, or people they’ve tagged in the post. You can also include photos or videos in a thread.



Threads appear in a scrolling feed, where users can like, reply, repost or quote other users’ threads.



<h2 class="wp-block-heading"><a></a>What it’s missing</h2>



Threads may look a lot like its rival, but it’s missing some critical features.



The most glaring omission is direct messaging, or DMs. One-on-one, private messaging is a hallmark of nearly every other major social media network, including Twitter and Meta’s own Instagram and Facebook. Threads didn’t launch with direct messaging, which can pose a problem for journalists, who often receive messages from potential sources, or for brands, which can offer customer service through social media messaging.



The Threads feed pulls in posts from all users, not just the ones you follow. It can be hard to find the content posted by the users or brands that you’ve followed, and as of now, there’s no way to change the way the feed loads.



Like Instagram, Threads isn’t serving up posts in a chronological order. Content is apparently algorithmically ranked and served up to users no matter what time it’s posted.



There are also no paid ads in Threads, yet. Many brands have already joined up, though. Instagram head Adam Mosseri, who oversees the new app, told&nbsp;<a href="https://www.theverge.com/2023/7/5/23784870/instagram-threads-adam-mosseri-interview-twitter-competitor" target="_blank" rel="noreferrer noopener">the Verge</a>&nbsp;that advertising would be a “champagne problem” if Threads is able to scale.



Threads also lacks the ability to include hashtags in posts. Hashtags are a core feature of Twitter, and have made it easy for users to discover posts under a certain topic, as well as surface trending content in one place. Similarly, Threads doesn’t have a feature that allows users to search for specific text or phrases.



Another key differentiator is that Threads doesn’t have a desktop website, so you can only access the service via iOS or Android apps.



There’s also one significant downside to Threads being linked to Instagram. For now, Meta&nbsp;<a href="https://help.instagram.com/515230437301944" target="_blank" rel="noreferrer noopener">says</a>&nbsp;there’s no way to delete your Threads account without also deleting your Instagram account.

Mark-Zuckerbergs-Twitter-rival-passed-30-million-signups-overnight-—-heres-how-to-use-Metas-Threads-app-and-whats-missing

Mark Zuckerberg’s Twitter rival passed 30 million signups overnight — here’s how to use Meta’s Threads app and what’s missing

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107206075-1678389148948-gettyimages-1246494152-AFP_337P9F8-820x461.jpeg" alt="" class="wp-image-425811" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107206075-1678389148948-gettyimages-1246494152-AFP_337P9F8-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107206075-1678389148948-gettyimages-1246494152-AFP_337P9F8-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107206075-1678389148948-gettyimages-1246494152-AFP_337P9F8-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107206075-1678389148948-gettyimages-1246494152-AFP_337P9F8-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107206075-1678389148948-gettyimages-1246494152-AFP_337P9F8-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107206075-1678389148948-gettyimages-1246494152-AFP_337P9F8.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Generative artificial intelligence is all the rage now but the A.I. boom is not just all hype, said Dan Ives from Wedbush&nbsp;Securities, who calls it the “fourth industrial revolution playing out.”



“This is something I call a 1995 moment, parallel with the internet. I do not believe that this is a hype cycle,” the managing director and senior equity research analyst told CNBC’s “Squawk Box Asia” on Wednesday.



The fourth industrial revolution refers to how technological advancements like artificial intelligence, autonomous vehicles and the internet of things are changing the way humans live, work and relate to one another.



“I think this is really transformational changes to technology that I think would change the tech space for the next 20-30 years,” said Ives. “I think we are just starting what we believe is the start of a new tech bull market, despite many of the bears continuing to really being skeptical.”



Adoption of A.I. technology surged after ChatGPT — OpenAI’s viral chatbot — went viral due to its ability to generate humanlike responses to users’ prompts, which amazed researchers and the general public.



“I think it really comes down to the guidance heard around the world with Nvidia’s $4 billion guidance range.&nbsp;I think that’s the tip of the iceberg,” he said.



U.S. chip maker Nvidia produces graphics chips for gaming and A.I. Those chips help drive the technology behind ChatGPT and Alphabet’s Bard chatbots.



Nvidia said it expects sales of about $11 billion in the second quarter — more than 50% higher than Wall Street’s $7.15 billion estimate, which Ives called a “jaw dropping guidance.”



Nvidia stunned investors and analysts by reporting better-than-expected first-quarter profit of more than $2 billion and revenue of $7 billion in May.



“We’re going to have a trillion dollars of incremental spend over the next decade. That could be conservative — that wasn’t here six months ago,” said Ives.



″That’s why I think what you’re seeing is the multiple expansion. Investors recognize this isn’t an A.I. gold rush, which I really view is something. The only parallel would be 1995 Internet and 2007 Apple iPhone moments in terms of what I’ve seen in my career,” said the analyst.

107206075-1678389148948-gettyimages-1246494152-AFP_337P9F8

A.I. is not all hype. It’s the ‘fourth industrial revolution playing out,’ says Wedbush’s Dan Ives

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="592" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/WP7VUMTCFNMJBLJHVA6FHCJGPI-820x592.jpg" alt="" class="wp-image-425402" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/WP7VUMTCFNMJBLJHVA6FHCJGPI-820x592.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/WP7VUMTCFNMJBLJHVA6FHCJGPI-300x217.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/WP7VUMTCFNMJBLJHVA6FHCJGPI-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/WP7VUMTCFNMJBLJHVA6FHCJGPI-768x555.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/WP7VUMTCFNMJBLJHVA6FHCJGPI-1536x1109.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/WP7VUMTCFNMJBLJHVA6FHCJGPI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Twitter CEO Jack Dorsey addresses students during a town hall at the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018. REUTERS/Anushree Fadnavis</figcaption></figure>



WASHINGTON, June 12 (Reuters)&nbsp;&#8211;&nbsp;Twitter was threatened with shut down in India, Nigeria and Turkey unless it complied with orders to restrict accounts, with India wanting to curb journalists&#8217; and protesters&#8217; use of the social media platform, co-founder Jack Dorsey said on Monday.



Dorsey quit his Twitter CEO role in 2021 and the social media platform was purchased by billionaire Elon Musk in 2022.



&#8220;India for example, India is a country that had many requests of us around the farmers protest, around particular journalists that were critical of the government,&#8221; Dorsey, the former CEO of Twitter, said in an interview to YouTube news show Breaking Points.



Indian farmers ended a year of protests in late 2021 after winning concessions from the government regarding certain farm laws. The demonstrations were among the biggest faced by the government of Prime Minister Narendra Modi and his Hindu nationalist Bharatiya Janata Party (BJP).



&#8220;It manifested in ways such as: &#8216;We will shut Twitter down in India,&#8217; which is a very large market for us; &#8216;we will raid the homes of your employees,&#8217; which they did; &#8216;we will shut down your offices if you don&#8217;t follow suit.&#8217; And this is India, a democratic country,&#8221; Dorsey added.



The Indian government has previously denied engaging in online censorship and says it only aims to restrict misinformation and posts that curb peace and security.



Dorsey also mentioned similar pressure from governments in Turkey and Nigeria, which had restricted the platform in their nations at different points over the years before lifting those bans.



&#8220;Turkey is very similar (to India), like we had so many requests from Turkey. We fought Turkey in their courts and often won, but they threatened to shut us down constantly,&#8221; he said.



Dorsey also added that the situation in Nigeria was such that Twitter could not even put its employees on the ground in the country out of fear of what the government might do to them.



Nigeria had suspended Twitter in 2021 after it removed a post from then-President Muhammadu Buhari that threatened to punish regional secessionists. It lifted the ban in early 2022 after Twitter agreed to open a local office, among other agreements with authorities.



Advocacy groups have raised concerns about the human rights situations in India, Turkey and Nigeria.



(Reporting by Kanishka Singh in Washington; Editing by Simon Cameron-Moore)

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