Hi
If the world feels a little lighter today, it might be because Microsoft released an Edge update yesterday on Windows 10 that finally kills off Internet Explorer for good – ending just under 3 decades of PC-user-browser hate in one fell swoop, we hope.
In this Open Letter:
It’s not what you think – and is prophetic for the future of corporate innovation
When ChatGPT3 (an OpenAI product that’s backed by Microsoft to the tune of $10b+) became publicly accessible, some were quick to label it “the Google Killer!”. But for that to be true, they’d have to connect ChatGPT to the internet. And, as it turns out, that’s where it's a bit harder for an AI to impress.
We saw it when Google launched it’s AI assistant, Bard, which immediately incorrectly stated that the James Webb Space Telescope took the first pictures of an exoplanet. (Rubbish, that honour goes to astrophysicist Grant Tremblay back in 2004.)
But what happened next was very telling for AI and corporate innovation in general…
Google shareholders panicked, which sent Alphabet (Google’s parent company) stock plummeting, resulting in an 8% drop and wiping $100 billion of its market cap. Ouch.
But was it a fair assessment? Perhaps not.
With machine learning models, garbage in-garbage out is particularly applicable. (And we all know how much garbage there is on the internet.) And, while Google is training AI to distinguish between fact and fiction in an online environment with ever-changing versions of “ the truth”, in building ChatGPT3, OpenAI pulled data from the same garbage bin, but protected us from it with an army of underpaid African workers and others to train the language model.
Effectively creating a little box that can be controlled (and is very much controlled by zeitgeist).
Microsoft’s true advantage
ChatGPT also makes mistakes – and they’re well documented – but none of them has tanked Microsoft’s share price. In fact, we overlook ChatGPT’s mistakes. Why?
Because OpenAI is a startup and Google is not.
Startups are allowed to fail. Most people expect them to. So any kind of success they obtain is newsworthy. Listed companies have to manage the sentiment of loads of stakeholders and loss aversion could send many not-so-savvy shareholders running for the hills at the first sign of bad news.
What does this mean for corporate innovation?
In case it's not clear, the lesson in this is that corporates could and maybe should be investing in savvy startups to drive their innovation. Because it protects your share price.
Ok, so how does a corporate go about this?
While every circumstance is unique, it’s clear that corporate investing in startups and corporate venture building is a viable option for corporates to stay relevant in the innovation game. But startups are risky, so how do you know who to back?
Get yourself a tech partner that knows the corporate space…
Agencies like Specno offer venture building as a service to corporates. Within venture building, the corporate has all the potential upside that Microsoft had backing OpenAI, but very limited downside in terms of reputational damage (like what happened to Google).
That said, there is a third way…
The Apple way
Apple takes a completely different approach to innovation. One could say a customer-centric approach, where the latest tech is not driving the rollout of features, but rather how something fits into the lives of an Apple customer. Examples include:
And they’re doing the same with conversational chatbots
Well, Apple has been implementing AI for some time, with FaceID being a prime example. Siri also makes use of AI to understand the context and execute tasks. But in direct response to ChatGPT making waves, Tim Cook just stated that Apple has a major focus on AI and that it will impact every single part of Apple’s product offering.
He wasn’t joking. Apple is currently actively hiring more than 300 people in AI – which says a lot in an era of mass tech layoffs.
For now the verdict is still out on whether conversational AI can even provide accurate information when connected to the internet. And whilst Microsoft and Google are publicly flexing their tech muscle, it’ll be interesting to see what Apple is cooking up with AI (probably in the next few years).
World's most expensive ad: 30 seconds during the Superbowl costs $7m, and many believe it's worth it.
137 unicorns in one: SpaceX is raising at a staggering $137 billion valuation with investors including VC a16z.
All phoned up? African smartphone sales were down 18% from last year and 80% of smartphone sales were for devices costing less than $200.
Farm to DeFi: Binance to educate 2’800 rural South African women on web3.
Good tunes: Apparently, it's not your favourite 2000s pop song that makes you want to boogie, it all has to do with inaudible bass lines.
Is it a bird? Is it a toaster? No, it's Amazon’s new robotaxi hitting the road for the first time.
WATCH THIS SPACE
Tech opportunities in SA’s pre-loved space
Clothes are expensive. With the average person buying 60% more clothes than 15 years ago, combined with retailers marking up prices by 300-400%, the cost of looking fashionable is skyrocketing.
But there is a solution: thrift it!
Thrifting itself isn't a new concept, with Hospice and Salvation Army stores selling second-hand clothes at selected outlets for years to raise money for charity. But thrifting in-person at a physical shop has always been a little less than ideal…
But with the growth of the internet, there are now specialized platforms that make buying and selling pre-loved clothes easier than ever.
Thrift online in SA
So, is thrifting just a way to offload our bad impulsive buys? Or can we actually make some money while doing good for the planet and our wallets? We haven’t tried, but the sheer volume of items being sold on these platforms is showings signs of a bustling industry.
As a startup, securing the right funding and support can mean the difference between success and becoming a statistic. And, with funding a little in short supply in Africa, we connected with entrepreneurship engineers GrindstoneXL Programme Director, Will Green.
Bringing years of VC, entrepreneur support and global startup ecosystem knowledge to the table, Will joins us for the next Open Conversation happening on LinkedIn Live on 1 March 2023 – register here for free.
Renier and Bobby Sequeira of Mastercast have been testing out a new podcast format featuring local tech business insights – so there'll be more in-depth looks at some of the things you read in The Open Letter. And it's looking pretty cool.
Here's a sneak peek featuring more on ChatGPT VS Google AI, what exactly constitutes a Super App, SA diaspora (from last week) and SA's proposed new electricity minister…
Watch it here on YouTube.
Despite our best efforts to hit your main inbox, Google’s fancy email filter categorises us as promotional. (Due to our curation and world-class memes!)
So do us all a favour and add rk@theopenletter.io to your Contacts and drag your latest Open Letter from Promotions to your Primary Inbox, like so…
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This open letter is brought to you by Renier Kriel, Jason Mill and Elvorne Palmer. And we discuss these topics every Thursday on our Linkedin page.
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Plus: We made a blockchain CEO sweat, BNPL wisdom in SA, new perspectives on tech layoffs and 17 more trends in tech & startups
The last two weeks, we said we’d give sweet R1’000 Takealot vouchers to email repliers. And we have two winners – congratulations, Justin Coomber and Kieran Raffle!
And, to show you we don’t play when it comes to prizes, we decided to give R500 bonus vouchers to Lesley Arenz and Louis van Wyk for being good sports (read: entering multiple times).
Your vouchers are already in your inbox, guys. Enjoy!
In this Open Letter:
A few months ago we shared how Twitter’s lay-offs were probably just correcting a bit of overhiring. Now it seems that most big tech companies have followed suit.
Recent news of Alphabet (Google) and Microsoft laying off large amounts of employees was almost to be expected, as layoffs at tech companies being tracked have reached close to 80 000 in 2023 alone (and we’re barely 1 month in ).
But why does this happen?
Big tech made a bet.
By now everyone knows that Covid lockdowns change a lot of behaviour. Work from home, e-commerce boom and even Grandma having to learn how to Zoom.
For those in tech, it felt like the “finally everyone is on board” moment. And the numbers were showing. Now when a listed company sees a rise in revenue and free cash flow, it’s likely that shareholders would expect leadership to pounce on the opportunity. And capturing opportunity, means hires!
But fast forward to 2023 and the situation has changed. Did the bets come off? Hard to say when the layoffs are in the thousands. But considering the steep rise in staff counts over the last 2 years, the nett gain of employee count is still significant. Likely signs that some of the covid-era adoption became permanent.
Whilst it’s easier to hire and fire in the USA, labour laws in South Africa favour the worker so one would think that SA companies are more conservative. Yet with not-so-recent layoffs at Yoco and recent news of layoffs at Luno, SA tech workers seem to not be immune to this problem.
Which begs the question…
How much hiring has taken place at local tech companies?
We dug around on LinkedIn to monitor the rise of employee count (as per employees listing themselves as employed by said company, so yeah, not 100% accurate).
Interesting to note that not only have most local startups grown substantially in staff numbers but there also doesn’t seem to be a slowdown in hires, with most startups peaking in staff count as we speak. Testimony to all the action happening in the fintech space in Africa as of late or bets that are still to play out?
Will these bets pay off? We certainly hope so. Only time will tell, but for now, we are keeping an eye on this.
Remember Ellies who installed your TV? (Way, way back when…) Well, now they’re going into alternative energy by buying Bundu for R203m.
Powerless: Stage 6 loadshedding costs Shoprite group over R3 million per day in diesel alone.
Let Siri wish ‘em: New app lets your iPhone automatically send happy birthday messages. Now just hook up ChatGPT for custom text and a life problem’s solved forever.
Warehouse robot: Boston Dynamics & DHL unpack a super-efficient new robot that can unload 350 boxes per hour.
Step aside Mike Ross: Just a week after passing a business exam, ChatGPT now also passed law school exams. (Complete with ultra-realistic “stupid” mistakes and all.)
The Instagram founders are back and building a TikTok for text.
Ghostly swirl over Hawaii: Is it a bird? Is it a plane? No, it’s probably just rocket fuel.
If there’s one idea worse than buying doughnuts, it’s buying doughnuts with money you don’t have.
That’s what the world has come to with “Buy Now Pay Later” (BNPL). It used to be reserved exclusively for big banks, financial institutions, retailers and back alley loan sharks who like introducing kneecaps to cricket bats.
Whilst the BNPL concept isn’t novel or new, the lockdown e-commerce boom saw these repayment solutions being made more accessible.
In the US, the BNPL market could hit $76.20 billion in US payments volume. And some local players have caught on, with estimates suggesting it’ll reach R2bil per year soon.
Takealot offers not 1, but 2 BNPL solutions. Payflex for 4-month repayments, and Mobicred for 12.
And it’s not just them. Between Mobicred & Payflex they serve nearly 2’500 retailers, with countless other BNPL providers leveraging the explosion of online shopping during the pandemic.
And it goes beyond e-commerce
Advanced airtime has also been around for some time. Out of airtime? Dial a USSD code and get an advance of airtime. The premise is that if you’ve had the number for a while, and recharge often, you’ll probably repay the airtime to keep your number.
And after collecting vast amounts of user behavioural data, they’ve started extending it to other “vouchers” – technically not credit, but a voucher in advance that you’ll need to repay later. Like a doughnut voucher when you recharge.
The broader impact
South Africans are already drowning in debt, with the average household debt-to-income ratio at 66.1% and credit rejection rates rising every year.
Introducing new credit types to already indebted consumers could push everything over the edge. Something that could see more loan defaults at institutions traditionally offering credit to lower-income markets (like Capitec and African Bank).
The verdict isn’t out yet on whether BNPL is good or bad for SA consumers. What is certain, though, is that machines used to better understand user behaviour enables creative risk modelling that will make more unique BNPL offerings possible.
So, we could see more of this pop up everywhere.
Exciting developments for fintech and e-commerce. Let’s just hope the NCA adapts fast enough to protect the consumers from binging on those debt-inducing doughnuts…
Doing great infographics is an art. And, while we’ve come a long way with just Canva and Figma, alas we needed help! And who better than a company that does on-the-ground market research in Africa?
This team not only gets data, they really get how to present it. The infographic in today’s Open Letter is brought to you by Yazi.
This week we cover local VS global tech layoffs. Now let’s get a look at the tech layoffs in Africa thus far.
10 highlights from our Open Conversation with Momint CEO Ahren Posthumous
1. Ahren reminisces about Project Kooda (relaunching as Now Now, soon) a savvier and cheaper South African alternative to Calendly and OnceHub.
2. First NFT Ahren bought was an Ethereum domain name – now invests in NFT art.
3. Watch Ahren sweat as Renier drops off at 8 minutes due to loadshedding – totally not a publicity stunt for Momint’s solar initiative…
4. Momint’s blockchain-based solar initiative SunCash, which allows you to buy shares in solar installations for schools, hospitals etc. and earn dividends is really taking off – “Like being strapped to a rocket”.
5. Ahren explains how even when the crypto bubble bursts (as it so often seems to do), the real long-term value we get out of the blockchain exercise is Smart Contracts – a smart digital holding space for all info around an asset.
6. Banks are using tokenisation already – we don’t know, but they use crypto-related tech for inter-bank settlements.
7. The next level in gaming is beyond just buying loot that are NFTs, but actually allowing the community to create and trade content as NFTs, like Roblox.
8. The only thing holding SA back from complete and wide-scale adoption of tokenisation, for example, for the title deed of a house, is regulators – they can’t tell who’s trustworthy or not, and are sadly just slowing the process down.
9. Although still small in total volume of transactions, Africa is one of the leading crypto adopters in the world – probably for the very reason that blockchain allows you to fund, trade and raise funds without all the cost and red tape (and slow regulators).
10. In case you didn’t know, Momint’s entire business journey is documented as a web series, and you can buy tokens for a share of their ad revenue on it – watch here.
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The post 20 Trends 🔥 Shaping SA Business this Week appeared first on The Open Letter.
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Plus: Bulls’ bitcoin bonuses, R16 billion biohacking opportunities & how to lose your CEO (like Elon)
Secured your YouTube handle yet, Elvorne? Here’s how to pick your own before someone steals it. Plus how your new handle will affect your channel URL.
In this Open Letter:
Inside a Crypto-Regulated SA
So we can’t say we’re too surprised at crypto getting regulated. A South African is, after all, accused of perpetrating the biggest global crypto scam of 2020!
Just imagine: In a country where it’s next to impossible to raise startup funding, Johann Steynberg and co, collected R8bn from investors in just 2 years.
Much like Mr CrossFit, the cyclist and the vegan, Bitcoin Guy has pretty good PR. So South Africans invested their hard-earned cash in Johann’s Bitcoin wallet without checking what he actually does with user funds.
Turns out he’s a pretty bad trader – only ever depositing 1900 BTC and losing 566. (Kinda like the QuadrigaCX story on Netflix). So the Financial Sector Conduct Authority (FSCA) published a notice that it had updated the FAIS Act to include digital assets.
It defines a “crypto asset” as a “digital representation of value”, declaring it as a financial product – but that excludes miners, node operators and NFTs (for now).
Not entirely. Other mounting risks also contributed:
For now, anybody offering services to buy and sell these crypto “financial instruments” (such as VALR, Luno, Binance or Ovex) needs to be registered as a financial service provider and comply with all the necessary regulations.
Once that’s in place, you’ll be pressed to “provide the FSCA with any information” they may request. Good for managing bad guys, but not great for decentralisation and privacy. Something Edward Snowden is working on countering with ZCash.
And the South African early birds have been digging for some worms in the expectation of inevitable regulation:
Currently, SA ranks 30th on the global crypto index, with about 10-30% of people owning crypto. Ultimately, however, the regulation of crypto is likely to get even more people and institutions excited and rallying behind the technology.
And with numbers rising, regulations in place and mainstream adoption, there are bound to be more opportunities.
Why buy crypto when you can take 30% of NFT transactions like Apple?
Bulls hoping for a bull run with BTC bonuses.
We all knew it, yet we lived in denial. Coco Pops wins the sugar Olympics.
Elon Musk has no idea who the Twitter CEO is.
Sailing when the sun’s out is taking on a new meaning with SA-built solar-powered catamaran.
Need to swap those gains for food? You can now Pick n Pay with crypto.
Cyber-humans. The rise of the Icemen. And how to grab your share of R16 Billion by 2027. It’s no secret that, like many African countries, South Africa can’t provide proper healthcare for 84% of its population (50 million people without proper care).
That’s because just 16%–21% of our population consume about 50% of the country’s total healthcare expenditure (circa R157 billion, from Stats SA gov expenditure reports). No surprise then SA loves healthcare alternatives…
Even before Covid, digital healthcare was booming in SA. (During the pandemic, telehealth providers like Momentum’s Hello Doctor would see up to 115% usage increases in a single month.) A trend that 56% of doctors are really happy about, but 94% are worried about lack of rural internet access, language barriers and lawsuits – insurers aren’t quite sure how to cover them for malpractice via the phone yet.
But that’s just the tip of the iceberg. Statistica pegs the SA digital health market at R1bn this year (2022), to grow to R16 Billion by 2027.
With “e-health” services just delivering one 3rd of the potential revenue, the big bucks are in “Digital Fitness & Well-Being”. Which inevitably brings us to…
Biohacking is taking a “systems approach to biology”, and it ranges from the pretty obvious lifestyle improvements like better sleep, optimal diet and nutrition. To tailored exercise for your body type, right the way through to implanting microchips into your hand to easily make payments or serve as your train ticket. Or even Neuralink’s implantable brain-machine interfaces.
It would seem like everyone is biohacking. From Twitter Founder Jack Dorsey, to Elon Musk (Neuralink co-founder), to the Ice-Man Wim Hof. Even the lady sucking down a menthol cigarette, shivering in a towel, post-Full Moon Dip proclaiming the health benefits of cold water immersion, is biohacking.
And we picked up on a rise in interest when Google noted a 900% rise in interest in “curative health” in South Africa. Part of a larger Europe/Africa trend in “healing”. And you can see it clearly in the rise of interest in “intermittent fasting” (another form of biohacking) in SA over the last few years…
Since it’s quite new, it’s still broad. These are the current main categories of Biohacking:
NutrigenomicsThe study of food and how it affects the way we act, feel and think. (Probably the easiest and most viable entry-point – the SA health food market is valued at R61 Billion).
DIY biologyThis is where educated/qualified (and sometimes Facebook-educated) Biohackers run experiments on their bodies outside of a controlled lab environment.
GrinderThe most extreme version of biohacking, Grinders will go to any length to optimise their bodies – from chemical injections, implants and chips. Think former NASA biochemist Josiah Zayner: watch his “grotesque” gut-bacteria hacking experiment (if you have the stomach for it).
ThriveLabs says it’s SA’s first biohacking facility, with all kinds of treatments like Infrared Sauna, Cold Hydrotherapy/Ice Bath, Red Light Therapy, HBOT (Oxygen therapy), Lymphatic Presso Therapy and Ozone Rectal Insufflation (which is exactly what it sounds like and totally worth looking up).
Made to Thrive connects people with consultants, including SA’s first self-proclaimed professional biohacker, Steve Stavs, for biohack coaching.
NuHuman takes hair tissue samples to analyse your mineral and microbiome balance before recommending custom diet & fitness plans.
Lifeq is building the tech that gives us feedback on vitals that can help us be more effective in our biohacking efforts.
It’s exciting to see some established players in the biohacking space. And we believe there’ll soon be more opportunities for different sectors and more industries to bring their specific domain knowledge to the biohacking party.
Know any? Thinking of starting something? Come on, share with us: rk@theopenletter.io.
The Low-code/No-code movement’s growing – helping not-so-technical founders launch startups within days. And Webflow is at the top of our list of must-learn low-code/no-code solutions.
Buy a template from their store and get going within minutes. It’s got the power of HTML and CSS (and even some JS) without having to actually write a single line of code. (We’re not affiliated, we just use it, so we know it works.)
We fed this letter’s subject line into the Stable Diffusion AI image generator, and apparently, this is how robots summarise everything you’ve just read…
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In a The Open Letter exclusive, we bring you the best news since the Nokia 3310 came out, Mxit is back. That's right, everyone's favourite social media app is back!
APRIL FOOLS! This article was run in partnership with Eskom se Push, who for a day, rebranded their app to a retro, Mxit styled theme. We did so in honour of Mxit, a true South African legend that inspired so many of us to pursue careers in tech or even build tech startups ourselves.
If you want to stay ahead with South African tech startups, join 22'000+ South Africans who read The Open Letter.
Original article as published 1 April 2025
In a bold move set to shake up the tech landscape, Mxit — once the world’s largest mobile social network — is officially back.
After years of silence, the iconic South African platform is making its return, with a design true to its roots and a renewed mission: connecting people, communities and (perhaps) helping you figure out when the power’s coming back on.
Launched in the pre-smartphone era, Mxit became a cultural touchstone for millions of South Africans, offering a way to chat, flirt and form real connections in the early 2000s. Now, it’s returning to its original vision — with a few… practical enhancements.
Mxit never really left..It's been in our hearts and we just waited for the right time to come back. And that time is now. Because honestly — have you seen what social media has become?
says Herman, co-founder and now Head of UX at the newly rebooted Mxit.
The resurrection was spearheaded by a small but passionate team, including Intern Jeff, who originally pitched the idea after sharing a deeply moving story about meeting “the love of his life” in a 2008 Mxit chatroom called “Bokkies4Lyf_WC”. Though she ghosted him after a week, the dream lived on.
Mxit was never just an app. It was a movement. It was gritty. It was orange. And it worked on a Motorola Razr.
says Dan, another co-founder and now Chief Strategy Officer of Vibe Restoration.
While the core Mxit experience remains unchanged — yes, your status can still be “available but not really” — the platform is subtly modernised. Early testers report a suspiciously helpful feature that “somehow knows your neighbourhood’s vibe and Eskom status”, though official sources refused to comment.
One of the biggest features of the reboot? Love. Not the algorithmic swipe-right kind, but real, blurry-profile-picture, pixel-heart love. The team believes South Africans are ready to connect again. Properly. Through their phones. Like it’s 2007.
The design? Still unmistakably retro. Nostalgia-forward. And designed to boost the scientifically proven likelihood of a spontaneous digital hookup.
When asked why now, the team responded:
“Because someone had to fix social media. And bring back chatrooms. And make statuses matter again.”
Mxit is back. Tell your friends. Tell your ex. Set your status. Vibe accordingly.
Get Mxit here now