TradeDepot moves into food manufacturing with new brand, Mangrove
TradeDepot, a B2B e-commerce platform that connects FMCG manufacturers with retailers, is taking a significant step upstream by launching its food brand, Mangrove. The new venture will produce and distribute affordable food items like sardines, rice, flour, peas, and canned fish. The goal is to offer consumers more cost-effective options amid rising inflation and the naira devaluation. Although Mangrove has not yet officially launched, it is already attracting distributors through its website. The product line, which includes essential food items, aims to bypass the “brand tax”—the premium consumers often pay for well-known labels. By sourcing high-quality products at lower costs, TradeDepot intends to pass those savings on to consumers, making essential food items more affordable. “We used to simply distribute for brands,” says CEO Onyekachi Izukanne. “Now, we’re integrating backwards into the supply chain by producing our products and bringing them directly to the market.” For example, Mangrove’s sardine will be priced at ₦1,050, significantly cheaper than the popular Titus sardine, which retails for ₦1,450. For low-to-middle-income consumers, the cumulative savings can make a significant impact, allowing them to buy more items or save for future purchases. This shift to manufacturing comes at a critical time for Nigerian consumers, who are grappling with inflation, which has reached 34.8%, and the depreciation of the naira. With shrinking purchasing power, Mangrove could prove advantageous for TradeDepot, positioning the company as a key player in Nigeria’s food sector. A successful retail brand, combined with its extensive retailer network, could make TradeDepot an attractive acquisition target for FMCG companies, according to a former executive at an FMCG company who asked to not be named to speak freely. The company mirrors major distributors like Amazon and Costco, which have leveraged their brands to drive revenue and enhance brand value. “TradeDepot knows what sells and they have the network to scale distribution,” the executive added. However, the shift from distribution to manufacturing brings new pressures. Importing goods means that any production delays or missed schedules can result in additional costs, putting pressure on TradeDepot’s margins. “When they were only concerned with last-mile distribution, they could source products locally,” the executive explained. “But now that they are manufacturing and importing, every extra day outside schedule incurs additional costs.” TradeDepot’s move into food production enables the company to turn competitors—middlemen and other last-mile distributors—into customers. “Our biggest competitor is the wholesaler in the market,” Izukanne says. “They can cut corners in ways we can’t and have a different cost structure.” The company’s deep knowledge of the FMCG sector and its extensive distribution network also give it a competitive edge. By using data to advise manufacturers on distribution strategies, TradeDepot aims to offer a more cost-efficient way for brands to enter the African market, avoiding the complexities of navigating information asymmetry, logistics inefficiencies, and retail channels. The company has already secured exclusive distribution rights for products from established brands like Unilever and Prime Hydration, a beverage brand co-owned by internet celebrities Logan Paul and KSI. With these exclusive deals, TradeDepot is positioning itself as a one-stop solution for FMCG brands seeking to scale their African presence. TradeDepot has also reworked its logistics model to accommodate its new manufacturing operations. Previously responsible for managing every part of its distribution network, the company now relies more on third-party providers for logistics. This shift allows TradeDepot to scale more efficiently while focusing on its core business of connecting manufacturers to retailers. TradeDepot’s decision to move upstream contrasts with other startups in the B2B e-commerce space, such as OmniRetail, which has expanded its business into fintech. OmniRetail recently acquired Traction Apps, a fintech startup, to boost its gross margins and expand its payment services. In contrast, TradeDepot is focusing on manufacturing and exclusive distribution, a strategy that it believes offers more direct value to its customers and partners.
Read MoreCOMESA investigates Airtel, MTN over hidden mobile money fees
The COMESA Competition Commission is investigating Airtel Mobile Commerce BV and MTN Group for allegedly misleading customers about transaction fees and failing to disclose foreign currency exchange rates for cross-border transfers in multiple markets. Airtel is under scrutiny for violating consumer protection laws in Kenya, Uganda, and Malawi, while MTN Group faces similar allegations in Uganda. Payment platforms operating with the COMESA region–a bloc of 21 African countries–must disclose the full cost of transactions, including forex charges before they confirm any payment. The requirement aims to protect consumers by promoting transparency in money transfer fees. “In the case of Airtel Mobile Money Kenya, the charges displayed to the sender before confirming the transaction are, in some instances, different from the actual charges indicated in the final confirmation message and details of the intermediary parties, as well as the exchange rate used are not disclosed to consumers,” COMESA Competition Commission said in a notice. In Malawi, the commission has accused Airtel Mobile Commerce Malawi Limited of failing to disclose transaction details, including sender information, fees charged, and intermediary parties. These alleged omissions violate the bloc’s anti-trust regulations, which mandate transparency from companies operating within the 21-member trade area. Airtel’s mobile money services in Malawi and Uganda also did not give senders the exchange used in cross-border transfers and the amount in recipients’ currency, COMESA said their findings show. “The alleged conducts are considered misleading and unconscionable as it denies consumers the right to material information required to make informed decisions,” the commission said. In some instances, the exchange rate displayed to users in Uganda differed from the rate applied to transactions. The operator did not also reveal the extent of consumer information shared with intermediaries involved in the transfer process. For its part, MTN Mobile Money Uganda Limited allegedly displayed different amounts to senders what recipients received in international money transfers. While the investigations will establish whether the telcos breached regional anti-trust laws, they do not, at this point, imply unfair business practices on the part of MTN Group and Airtel.
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Startups don’t die—they adapt with purpose
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 02 Feb, 2025 The world of startups has always been high-stakes. Economic turbulence like currency devaluation in Nigeria and Kenya’s tax hikes to meet its debt obligations, add an extra layer of pressure for African startups. Amid these challenges, resilience has become their defining trait. While large corporations with deep pockets and established infrastructure can weather storms, startups rely on another important feature: adaptability. Yet, the prevailing narrative that startups must constantly adapt is only part of the story. Adaptability is critical, yet it risks becoming a crutch if it isn’t grounded in a clear vision and solid market understanding. Take Paystack, for instance, which centres its growth on enabling SMEs, strategically solving a key pain point on the continent, integrating with global platforms and focusing on scalable digital onboarding. Paystack’s success wasn’t just about reacting to market changes; it was about a calculated response to market needs, based on a deep understanding of its core mission. Next Wave continues after this ad. Join millions of Nigerians earning 20% interest on their savings with zero risk. Trusted by 35 million users and 1.2 million businesses, PalmPay empowers your money to do more. Start saving today! Resilience, in this case, isn’t about surviving through luck—it’s about robust execution. But resilience also goes beyond sheer adaptability. Too often, startups are told that in order to succeed, they must pivot and embrace change at every turn. But what if constant adaptation is a double-edged sword? Excessive adaptability can also dilute vision. While flexibility and agility are valuable traits, startups need more than just a willingness to change direction at a moment’s notice. History shows there’s merit in stubbornness—a commitment to a core idea, even in the face of market resistance. In fact, sticking to a rigid vision can differentiate a startup and attract investors looking for a company with a clear, unwavering purpose. The question, then, isn’t simply “adapt or die,” but “adapt with purpose or die.” Startups that flit between trends or constantly change direction without clear strategy risk losing their identity, wasting time, and, ultimately, failing. Partner Content: Read: [Raenest Returns as Headline Partner for Africa Tech Summit Nairobi 2025, Championing Global Growth for African Tech] here. Failure isn’t just a closed website; it’s the shattered dreams of founders, the lost livelihoods of employees, and the unfulfilled potential of an idea. The stakes are higher for African startups that operate with limited resources and in challenging environments. Failure here means significant debt, a damaged reputation, and repercussions for future investment in the local ecosystem. Of course, some startups pivot into new ventures or merge with other entities, but this is often the exception. For most, failure is final—a painful chapter that ends a journey. The pressure to constantly adapt can lead to a loss of focus and undermine the initial vision, eventually killing the startup’s original idea. Is constant adaptation the best strategy? Or would a more measured approach, balancing agility with a strong core vision, be more sustainable? Perhaps fewer startups would “die” if they adapted with purpose, based on a long-term vision, rather than simply reacting to every passing trend. If resilient startups understand one thing, it’s that they can’t succeed in isolation. Success isn’t just about internal strategies; it’s also about tapping into external support. Startups thrive when they connect with entrepreneurial networks—both physical and digital—that provide resources, knowledge, and opportunities otherwise out of reach. Next Wave continues after this ad. Don’t miss your chance to be part of this revolutionary across two international capitals at the heart of the UAE’s rise to global AI dominance—Abu Dhabi and Dubai from 4—6th February 2025. Secure your spot today! In the past, building these networks meant attending industry conferences or joining local business associations. Today, the game has changed. Startups can now leverage online platforms like LinkedIn, Slack communities, and crowdfunding sites to build global connections. These networks offer mentorship, partnerships, and investor access—critical lifelines that allow startups to navigate uncertainty with greater ease. Innovation isn’t just about creating groundbreaking products; it’s about responding to change faster than the competition. Resilient startups don’t just innovate—they integrate innovation into their DNA. Consider M-KOPA, the Kenyan credit startup. Founder Jesse Moore identified a critical gap: millions of people lacked electricity but had mobile phones. By offering pay-as-you-go solar systems that could be paid for in small installments via mobile money (M-PESA), M-KOPA provided an innovative solution to an urgent problem. Moore didn’t chase flashy features; he focused on affordability and accessibility. The result? Over 3 million customers and a revenue model that scaled sustainably. Innovation, though, doesn’t always have to be about creating the next big thing. In fact, the most successful startups often find new ways to solve old problems. The challenge is to innovate adaptively, responding to market shifts before the competition can. For example, during the pandemic, many food delivery startups pivoted to offer grocery delivery services, a trend that continues to grow today. Partner Content: Read: [Flutterwave, Yellow Card, OmniRetail named finalists for inaugural Africa Tech Summit Awards] here. The world is only becoming less predictable, but uncertainty doesn’t have to spell doom for startups. Those that adapt, innovate with purpose, and build strong networks will not only survive economic uncertainty—they’ll emerge stronger. The real question isn’t whether startups should adapt to survive; it’s how they can adapt with purpose, staying true to their mission, and navigating change in a way that’s sustainable. Startups rely on wit, but another argument comes into play: whether these firms need to adapt or wither away. Focusing on the same argument may create a false dichotomy. Startups need deep
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TechCabal Daily – Telecom Turbulence
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy new month We’re now on TikTok! We’re going to be focusing on video a lot this year. You can expect bite-sized insights, founder stories, memes, and exclusive behind-the-scenes content that make tech more exciting. Follow us on TikTok @techcabal_ and join the conversation shaping Africa’s tech future! 9mobile’s market share shrinks even further Nigeria’s telecoms industry lost 24.6 million subscribers in 2024 Kenya’s December inflation gives hope of a rate cut World Wide Web 3 Events Telecoms 9mobile’s market share shrinks even further GIF Source: 9mobile Nigeria’s telecom market is proving too fierce for 9mobile. Data from the Nigerian Communications Commission (NCC) shows the country’s smallest telecom by subscriber base, 9mobile, has seen its market share shrink to just 1.9% (3.2 million subscribers)—its lowest ever. While the telecom’s market share dipped, its subscriber base stayed flat, showing that other telecoms grew their active user base. Yet, this decline didn’t happen overnight. The telecom has been losing market share over the years. In 2015, 9mobile held 15.7% of the market with 23.4 million users. By 2022, that number had dropped to 12.8 million. In September 2024, an NCC regulatory audit further slashed its market share to 2%. Now, at 1.9%, it’s losing ground fast. 9mobile is losing subscribers to its competitors. Over the past year, over 7,000 9mobile subscribers have ported to other network providers due to 9mobile’s poor internet service; the issues have persisted for two years due to its inferior broadband infrastructure reach compared to other telecoms. As of September 2024, 9mobile’s download speed as an internet service provider (ISP) stands at 17.82 megabytes per second (Mb/s), which is nowhere near the level of other telecoms and ISPs in Ookla’s recent H2 2024 report. Beyond its history of loan defaults, debts, and ownership changes, 9mobile is struggling to attract high-value users. Once a bold disruptor targeting young Nigerians, it has failed to keep up with rising tech demands and remote work trends in the country, which have seen tech workers demanding faster internet. Deolu Ogunbanjo, president of the National Association of Telecommunications Subscribers (NATCOMS), believes 9mobile can only recover if it secures fresh capital. Its new owner, Light House Telecom, which acquired a 95% stake for $750 million in July 2024, is yet to invest in infrastructure or marketing to make the telecom competitive again—or show any intention of raising money. Is history repeating itself? In 2018, Teleology acquired 9mobile but lacked the funds and strategy to revive it, leading to a failed attempt to raise capital. Will Light House Telecom follow the same path, or can it turn things around before it’s too late? Dive deeper into our definitive reporting of 9mobile growth and decline to understand where it stands in the competitive Nigerian telecom market. Afincran Connect: A Fintech Mixer by Fincra Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections. Nairobi | 18:00 – 21:00 EAT Limited spots—RSVP now. Telecoms Nigeria’s telecoms industry lost 24.6 million subscribers in 2024 Image Source: Business Alive The challenges facing 9mobile are not isolated—they reflect a broader transformation sweeping Nigeria’s telecom sector. While 9mobile grapples with a steep decline in market share, industry-wide regulatory measures are prompting a significant recalibration in subscriber numbers. In 2024 alone, Nigeria lost 24.6 million internet users as the Nigerian Communications Commission (NCC) enforced stricter SIM verification and redefined what qualifies as an active subscriber. These sweeping changes are not only exposing weaknesses in struggling networks like 9mobile but also streamlining the sector toward a more sustainable, revenue-focused future. At the heart of these reforms was a drive to eliminate inflated subscriber figures. Telecom operators were required to deactivate SIM cards linked to unverified National Identity Numbers (NINs), while the NCC tightened its criteria by counting only those users actively engaging in revenue-generating activities—whether it be purchasing data, airtime, or making calls. Such measures were designed to reveal a truer picture of user engagement in an industry that remains one of Nigeria’s largest contributors to GDP. The impact of these regulatory actions was immediately evident. Between December 2023 and December 2024, the number of internet users dropped sharply from 163.8 million to 139.2 million. Similarly, active phone connections fell by 26.6%, from 224.7 million to 164.9 million. Despite this contraction in subscriber numbers, there was a notable surge in mobile data consumption, which climbed from 713,200 terabytes to 973,445 terabytes. Meanwhile, advancements in network infrastructure are shifting consumer preferences—4G adoption now surpasses 2G, with 4G accounting for 42.7% of usage. In this recalibrated market, the story of 9mobile—a network already beleaguered by declining market share and service quality—takes on even greater significance. With its subscriber base stagnating and its market share shrinking to just 1.9%, 9mobile’s struggles are emblematic of the sector-wide purge of underperforming operators. Conversely, major players like MTN (51.4%), Airtel (34.3%), and Glo (12.2%) continue to build their active user bases, underscoring a competitive shift toward quality service and revenue-generating engagements. As the telecom industry refines its focus on genuine customer engagement, the evolving landscape is expected to drive higher average revenue per user (ARPU) and pave the way for more robust, sustainable growth. The consolidation of subscriber data reflects a broader commitment to quality over quantity—a commitment that could spell long-term benefits for both consumers and operators willing to invest in superior network performance. Economy Kenya’s December inflation gives hope of a rate cut GIF source: Tenor Kenya’s inflation rate remained comfortably below the central bank’s 5% target for the eighth consecutive month in December, setting the stage for another potential interest rate cut next week. In December 2024, inflation ticked up slightly to 3.3% from 3%, driven largely by rising food and transport costs. Food prices, which account for about a third of the inflation basket, surged 6.1% compared to 4.8% previously. However, relief might be on the horizon: the government is gearing up to
Read More9mobile’s telecom market share declined to 1.9% in December 2024
9mobile, Nigeria’s fourth-largest telecom operator, has seen its market share plummet to a historic low of 1.99% as its number of subscribers (3.2 million) remained stagnant for two consecutive months, according to data from the Nigerian Communication Commission (NCC). This is a dramatic decline from the 23.4 million subscribers it boasted in 2015 when the company—then Etisalat Nigeria—had around 15.7% of the market share. While 9mobile’s subscriber base has remained flat, other telecom operators have grown. Market leader MTN Nigeria increased its share to 51% with 84.6 million subscribers, up from 81.2 million in November. Airtel also grew, reaching 56.6 million subscribers in December, up from 55.4 million in November. Globacom, which faced a sharp drop in subscribers earlier in 2024 due to a regulatory audit, grew its subscriber base from 19.6 million to 20.1 million by the end of the year. 9mobile was the only major telco that did not improve its subscriber count in 2024, raising concerns about its declining performance. Light House Telecom acquired a 95% stake in 9mobile in July 2024 for an estimated $750 million. Since it took over, the company has appointed a new chief executive and chief operating officer. In December 2024, it also moved different department heads intending to strengthen the company, according to two former employees. The new owners are yet to inject capital into the business, which is seen as critical to moving the company forward. “The funding is still not clear. The new buyer has not done anything, no new deployment, they haven’t done any maintenance. They may start putting in money now that the tariffs have increased,” said a telecom executive who chose to remain anonymous to speak freely about the company. The lack of capital investment is especially concerning given the operational challenges 9mobile is facing. Industry insiders stress that for 9mobile to regain market share, it must modernize its network infrastructure, improve customer acquisition efforts, and potentially reduce prices to remain competitive. Without the necessary funding, these objectives will be hard to achieve. 9mobile’s stagnant subscriber base reflects the broader challenges facing the company, including network maintenance and customer retention. However, without capital for new initiatives, it risks falling further behind its competitors, who continue to invest in expanding their services.
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