GiG wants to turn one-time eventgoers into lasting communities
Selling event tickets online in Kenya isn’t always smooth. Many organisers still prefer direct sales, fraud is common, and most ticketing platforms don’t offer much beyond processing payments. GiG, an event ticketing platform launched in 2018, was created to address these challenges. “We started GiG after realizing a lot of the ticketing solutions simply ended at providing tickets and left event organisers with a hard time handling the rest of the attendee management process,” David Reed, co-founder and CEO of GiG, told TechCabal. “We built GiG to solve this by helping event organizers build communities instead of starting the journey at the ticket purchase.” With tools for messaging, polls, and audience analytics, the platform allows organisers to build communities around their events. Instead of treating ticket sales as a one-time transaction, organisers engage attendees before, during, and after an event. “Our focus is mostly on event organisers who wish to build a community of their attendees,” Reed added. Competing with rivals Kenya already has ticketing platforms like TicketSasa and Eventbrite in the market. So what makes GiG different? “Unlike other ticketing platforms, we focus on using the data collected and volunteered by the attendees to build interest-based profiles for them and link them with similar events and other like-minded individuals, making events a more social experience,” Reed explained. GiG tracks attendee data to build interest-based profiles, using algorithms to predict future events attendees might be interested in. This allows organisers to send targeted event invitations based on individual preferences and past behaviour. In addition to concerts, organisers can also list free events, conferences, and corporate gatherings. Event organisers at a past event powered by GiG. Other ticketing platforms, such as Eventbrite, offer ticketing for both entertainment and corporate events, but their focus rarely goes beyond registration and basic promotion. GiG claims it is structured differently since it combines ticket sales with advanced audience engagement tools, fraud prevention measures, and post-event analytics. Attendees can interact through chat forums, photo sharing, and live streams. Each event also comes with its mobile app, allowing organisers to gather feedback, view attendee data, and stay connected after the event ends. The goal is to make the event more than just a one-off experience. “They do have options for further communication with guests such as surveys and texts post-event,” Dayvee Murebu, who used GiG twice to organise a game night with Kenyan tech publication Techweez, told TechCabal. How GiG makes money Reed admitted to TechCabal that revenue is inconsistent throughout the year. Some months are packed with events, while others are slow. GiG’s packages range from a free basic tier with ticketing—the platform charges 6% on ticket sales—SMS, and check-ins, to paid plans starting at KES 8,700 ($67). Higher tiers add email and social media tools, analytics, custom event apps, badge printing, and on-site support. An enterprise plan (from KES 27,000 or $208) offers full white labelling and extended technical help. Unlike other ticketing platforms that rely solely on transaction fees, GiG lets organisers use its tools between events for communication and audience management, though this is not available on the free basic tier. 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According to Reed, a background algorithm checks for unusual purchase
Read MoreKenyan and Nigerian SMEs, startups hit as US pulls $51 million in funding
The US Africa Development Foundation (USADF), which has supported over 1,000 businesses across 22 African countries, has slashed $51 million in funding for African SMEs and startups, threatening cooperatives, smallholder farmers, and early-stage ideas across sub-Saharan Africa, including Kenya and Nigeria. The cuts, announced by the Department of Government Efficiency (DOGE)—an agency created by President Donald Trump and led by Elon Musk—will leave dozens of initiatives without funding, including $48,406 for a WhatsApp marketing chatbot for small businesses in Kenya and a $84,059 for a wellness incubator in Nigeria. Some of the hardest-hit projects include nearly $230,000 for a shea butter project in Burkina Faso, about $240,000 to promote pineapple juice in Benin, and $246,000 for mango drying facilities in Côte d’Ivoire. Since its launch, Nigeria and Kenya have been the programme’s biggest beneficiaries, receiving $20.4 million and $16.9 million, respectively, to support rural and women-led SMEs. Around 211 SMEs and startups in Nigeria and 186 in Kenya have received grants through the initiative. While most of the projects are small, the grants from the US government provide critical risk capital that commercial banks and venture capital are often unwilling to give. The abrupt funding cut could affect value chains, especially for small agricultural production businesses like Benin and Burkina Faso initiatives. DOGE’s mandate is to “optimize the federal government” by eliminating inefficient or unnecessary expenditures. On Tuesday, the agency said it has already saved American taxpayers over $140 billion, including cancelling USAID programmes. The implications of USADF cuts, particularly for Kenyan SMEs and startups, are stark. The agency gives a direct-to-business funding model that bypasses governments, instead awarding grants and technical support directly to founders and businesses. Most of the funding goes to women-led ideas in rural or early-stage markets, providing them with a vital source of non-dilutive financing. The USADF withdrawal comes two months after USAID cut over $100 million in startup funding through its Development Innovation Ventures (DIV). USAID’s startup funding programme supported over 30 Kenyan startups, providing grants ranging from $500,000 to $6 million to help scale operations and prove the viability of their ideas. As the Trump administration recalibrates US international commitments, further funding withdrawal from local initiatives appears likely. The cuts may also reignite the debate on building self-reliance to protect African startups from the shocks caused by political shifts in Washington.
Read MoreMTN Group’s streaming gamble could come at a high cost
MTN Group, Africa’s largest telecom operator, is making a bold bet: that it can turn around its declining financial fortunes by entering the crowded, capital-intensive world of video streaming. On April 7, the telco partnered with Synamedia, a global video software provider, to roll out a new streaming service tailored to mobile and broadband users across Africa. It’s a move that aims to drive digital inclusion and enhance content accessibility. But it also represents a high-stakes gamble that could deepen MTN’s financial woes instead of alleviating them. Over the past two years, MTN has reported a combined post-tax loss of $398 million (₦537.4 billion), prompting a search for alternative revenue sources beyond its core telecom services. Yet streaming is a notoriously expensive business, especially in Africa. It requires substantial investment in infrastructure, content licensing, content delivery networks, and aggressive customer acquisition strategies to gain traction in an already saturated market. The industry’s track record on the continent isn’t encouraging either. In South Africa, the Film and Publications Board disclosed that at least six local streaming platforms have shut down due to high operating costs and limited market reach. Elsewhere across the continent, major telecom players have exited the space: Airtel TV, TelkomOne, Vodacom’s Video Play, and Cell C’s Black have all shuttered within the past year. Even international platforms are struggling—in August 2024, BritBox announced it would discontinue operations in South Africa, citing underperformance. Netflix and Amazon Prime Video have rolled back Nigerian original content investment. Competing with global streaming giants MTN’s new streaming service will face stiff competition from established platforms like Netflix, Amazon Prime Video, and Showmax, which have already carved out significant market shares across the continent. These platforms are backed by massive content libraries, global distribution networks, and deep pockets—advantages MTN currently lacks. Netflix, for example, spent over $16.2 billion on content globally in 2024 and continues to invest in local African content. It launched its first African original series in 2019 and has since added dozens of titles in languages such as Yoruba, Zulu, and Swahili. Amazon, which spent $18.2 billion in 2024, has also made inroads into African content, with several original productions focused on Nigerian and South African stories. Showmax, backed by MultiChoice, recently underwent a major revamp with support from Comcast and NBCUniversal, positioning itself as a hybrid platform with local relevance and international content partnerships. Against this backdrop, MTN’s foray into streaming will require more than just a flashy launch. It will need to invest consistently in compelling content, user experience, and reliable delivery—without the benefit of economies of scale that its global rivals enjoy. Get the best African tech newsletters in your inbox Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Bouvet Island Brazil British Antarctic Territory British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Canton and Enderbury Islands Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos [Keeling] Islands Colombia Comoros Congo – Brazzaville Congo – Kinshasa Cook Islands Costa Rica Croatia Cuba Cyprus Czech Republic Côte d’Ivoire Denmark Djibouti Dominica Dominican Republic Dronning Maud Land East Germany Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories French Southern and Antarctic Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Honduras Hong Kong SAR China Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Johnston Island Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau SAR China Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Metropolitan France Mexico Micronesia Midway Islands Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar [Burma] Namibia Nauru Nepal Netherlands Netherlands Antilles Neutral Zone New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island North Korea North Vietnam Northern Mariana Islands Norway Oman Pacific Islands Trust Territory Pakistan Palau Palestinian Territories Panama Panama Canal Zone Papua New Guinea Paraguay People’s Democratic Republic of Yemen Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Réunion Saint Barthélemy Saint Helena Saint Kitts and Nevis Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Korea Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syria São Tomé and Príncipe Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu U.S. Minor Outlying Islands U.S. Miscellaneous Pacific Islands U.S. Virgin Islands Uganda Ukraine Union of Soviet Socialist Republics United Arab Emirates United Kingdom United States Unknown or Invalid Region Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Wake Island Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Åland Islands ?> Gender Male Female Others TC Daily Events <!– Next Wave –> <!– Entering Tech –> Subscribe The cost of content and connectivity Building a streaming platform from scratch is expensive. Even with Synamedia’s cloud-based technology, which offers scalability and personalized content delivery, MTN will still face steep costs. These include licensing local and international content, marketing the platform, and subsidizing data costs in regions where internet affordability remains a barrier. In markets like Nigeria, South Africa, and Ghana, where mobile data is still relatively expensive for the average user, streaming services often struggle to achieve mass adoption unless heavily subsidized. MTN may have to bundle its streaming offerings with data incentives, further eating into its margins. Moreover, content that resonates with local audiences is essential for success. MTN has promised to localize content per market, tailoring programming to
Read MoreSix Nigerian banks spent ₦269 billion on technology upgrades in 2024
Six major Nigerian banks spent ₦268.7 billion ($171.5 million) on IT infrastructure and tech-related services in 2024, owing largely to core banking system upgrades, underscoring how growing competition is forcing traditional lenders to increase tech spending. The banks—Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, Zenith Bank Plc, Wema Bank Plc, Stanbic IBTC Holdings, and FCMB Group Plc—saw their combined IT spend surge by 74.5% from ₦153.8 billion ($98.2 million) in 2023, according to their latest financial statements. GTCO reported the highest IT spend with ₦88 billion ($56.8 million), followed by Zenith with ₦67.3 billion ($43 million). UBA, Stanbic, FCMB, and Wema recorded ₦48 billion ($30.5 million), ₦33.5 billion ($21.3 million), ₦26.8 billion ($17.3 million), and ₦5.55 billion ($3.6 million), respectively. Banks’ increased technology spending comes amid growing competition from fintech companies like Opay, PalmPay, and Moniepoint, which have become go-to platforms for many Nigerians after a botched currency redesign in early 2023 led to widespread cash shortages and exposed the limitations of traditional banking infrastructure. In 2024, major banks, including GTBank, Zenith, First Bank, Sterling Bank, and Access Bank, overhauled their core banking systems. Get the best African tech newsletters in your inbox Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Bouvet Island Brazil British Antarctic Territory British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Canton and Enderbury Islands Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos [Keeling] Islands Colombia Comoros Congo – Brazzaville Congo – Kinshasa Cook Islands Costa Rica Croatia Cuba Cyprus Czech Republic Côte d’Ivoire Denmark Djibouti Dominica Dominican Republic Dronning Maud Land East Germany Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories French Southern and Antarctic Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Honduras Hong Kong SAR China Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Johnston Island Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau SAR China Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Metropolitan France Mexico Micronesia Midway Islands Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar [Burma] Namibia Nauru Nepal Netherlands Netherlands Antilles Neutral Zone New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island North Korea North Vietnam Northern Mariana Islands Norway Oman Pacific Islands Trust Territory Pakistan Palau Palestinian Territories Panama Panama Canal Zone Papua New Guinea Paraguay People’s Democratic Republic of Yemen Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Réunion Saint Barthélemy Saint Helena Saint Kitts and Nevis Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Korea Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syria São Tomé and Príncipe Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu U.S. Minor Outlying Islands U.S. Miscellaneous Pacific Islands U.S. Virgin Islands Uganda Ukraine Union of Soviet Socialist Republics United Arab Emirates United Kingdom United States Unknown or Invalid Region Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Wake Island Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Åland Islands ?> Gender Male Female Others TC Daily Events <!– Next Wave –> <!– Entering Tech –> Subscribe In October 2024, GTBank switched its core banking software from Basis to Finacle, a product of Infosys. Zenith Bank also migrated to Flexcube, developed by Finastra, replacing its legacy Phoenix system. However, the upgrades weren’t without hiccups. These technological changes led to prolonged service disruptions that impacted millions of customers. “The enhancement of core banking applications has stabilized the services of some banks,” said Ayodeji Ebo, managing director of Optimus by Afrinvest. “The increased IT expenditure has mitigated the failure rate and downtime during financial transactions.” He added that the cost of the banking software—priced in dollars—nearly doubled due to the naira devaluation. A core banking software expert who asked not to be named to speak freely told TechCabal that tier-1 banks spend at least $10 million annually on core banking software licenses and support. Still, banks see long-term benefits. Gbolahan Ologunro, portfolio manager at FBNQuest Asset Management, said the digital push is key to expanding retail customer acquisition and financial inclusion. “Improving customer experience through digital platforms would increase the appetite of those who are yet to be banked and get themselves finally included in the financial net,” he said. Nigeria’s financial inclusion rate rose to 64% in 2023, up from 56% in 2020, according to data from EFInA. The Central Bank of Nigeria expects that figure to hit 80% by 2026. The surge in IT spending is also fueling growth for IT vendors. Computer Warehouse Group (CWG) Plc, which provides managed services, IT infrastructure support, and integration to telcos and banks, saw profits soar by 428.4% to ₦3.04 billion in 2024, hitting the billion-naira mark for the first time. CWG supplies Finacle, Infosys’ core banking application, to banks. As banks continue to ramp up tech spending to stay competitive, the challenge is no longer just about upgrading legacy systems: it’s about staying relevant in a market where speed, convenience, and customer experience determine the winners.
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TechCabal Daily – No dirty business
In partnership with Lire en Français اقرأ هذا باللغة العربية Howdy? If you step into a Nigerian international airport, you’re likely to be greeted by different “free” Wi-Fi options to choose from. However, none of these Wi-Fi options really work. I’m sure you’re wondering, it’s 2025—how come these Wi-Fi networks don’t work? Hold your thoughts for a second; Frank Eleanya, our resident telecommunications reporter, has answers for you here. Insider secret: number three may shock you. We hope you’re not reading this from the airport and that your internet holds steady while you read this edition. Let’s dive right in! Kenya’s Central Bank wants banks to be honest about their climate deals 16 years later, Paga’s new act is a financial ecosystem Can Nigerian commercial banks really implement the ‘no transfer charge’ policy? Kenya is set to reshape its crypto market with a new law World Wide Web 3 Events Banking Kenya’s Central Bank wants banks to be honest about their climate deals The Central Bank of Kenya (CBK) building in Nairobi, Kenya. IMAGE | COURTESY The Central Bank of Kenya (CBK) just gave banks a ticking clock: 18 months to start publicly revealing how green—or not—their money moves really are. Think of it as a financial detox. Under new rules tied to Kenya’s Green Finance Taxonomy (KGFT), banks will need to show the environmental impact of every business and project they fund, from solar startups to fossil fuel giants. Banks make money by investing in markets, lending, and financing projects, but not all investments are equal. The move to require transparency on environmental impacts forces banks to prioritise sustainable ventures, ensuring they direct capital toward projects that contribute positively to the environment rather than supporting harmful industries. It’s a direct hit on greenwashing—the common corporate habit of slapping an eco-friendly label on dirty business. Now, banks must walk the sustainability talk or face scrutiny. From 2026, they’ll have to disclose climate risks like carbon-heavy investments and prove they’re shifting toward clean, low-carbon projects. You should care if you’re an investor, climate advocate, entrepreneur, or even just a curious citizen. The CBK deadline will force transparency in a sector that’s long hidden behind environmental, social, and governance (ESG) buzzwords. It could starve polluting industries of cash and flood climate-resilient ventures with much-needed capital. It also opens the door to a growing green bonds market, bringing in international investors hungry for real impact. Banks now have 18 months to get their act together—train risk teams, overhaul credit models, and align with global climate standards. After that, it’s game on. Kenya just raised the stakes in Africa’s climate finance game, and the world is watching. Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. Fintech 16 years later, Paga’s new act is a financial ecosystem Image Source: Wunmi Eunice/TechCabal What do you do after sixteen years of running your fintech startup in Nigeria? If you are Tayo Oviosu, Paga’s CEO, you start to build an ecosystem. Paga was initially an agency banking platform but today it’s an ecosystem of three businesses: Paga Engine, a fintech infrastructure; Paga, a Cash App-like consumer-focused fintech; and Doroki, a retail management platform. Building an ecosystem is the most sensible path for a fintech to exert control over the transactions it processes. As long as money stays within this ecosystem, the fintech can improve the customer’s experience with minimal external influence. But an ecosystem is only strategic if the fintech has achieved scale, as there’s little value in building an ecosystem that processes only a couple of thousand transactions. Without meaningful volume, the benefits of control, efficiency, and improved user experience don’t fully materialise. Paga is averaging over ₦1 trillion ($653 million) in monthly transaction volume from this ecosystem, and the business is growing at a venture scale. Last year, Paga’s ecosystem processed 124 million transactions worth ₦8.7 trillion ($5.6 billion), over 30% of its all-time transaction volume and 40% of its total processing value. African payment processors typically derive the larger share of transactions from their B2B product, and Paga is no exception. Most of the fintech’s growth is driven by Paga Engine’s customers, like Meta, Cleva, Omnibiz and Lemfi, which use the infrastructure to collect payments and offer wallets. Its consumer business is also not doing too badly. Oviosu told TechCabal’s Muktar Oladunmade that Paga, its consumer business, grew by almost 200% last year. The profitable company is raising money to charge this growth. It also plans to expand its consumer business into another market in Q2 2025. Introducing Zap by Paystack! Zap is Paystack’s first consumer-facing app designed for simple, fast and secure payments via bank transfer. Download Zap on Android and iOS → Banking Can Nigerian commercial banks really implement the ‘no transfer charge’ policy? Image Source: Wunmi Eunice/TechCabal What started as an April Fool’s Day marketing campaign—or so we thought—from Sterling Bank, a tier-2 Nigerian commercial bank, turned out to be serious business. On April 1, the bank posted on the social media platform X, “We’re doing our part by cancelling transfer fees. Let the other banks copy.” Since that post, Sterling Bank has been running a well-oiled marketing campaign, winning the hearts of many Nigerians who once enjoyed no-transfer-charge offers from rebel digital banks like Kuda—the self-proclaimed ‘bank of the free’ that was no longer free. Who Kuda thought? But the reality is, banks make billions of naira in revenue from interbank transfers, so cancelling transfer fees—no matter how small—means giving up a tidy non-interest income stream. Even digital banks that once offered free transfers have since walked it back. Interbank transactions go through a switching platform like the Nigerian Inter-Bank Settlement System (NIBSS), which charges a processing fee of ₦3.75 ($0.0024). When fintechs or banks waive that charge, it means they’re absorbing some of the cost. But big
Read MoreAfter 16 years, Paga is building a financial ecosystem of three businesses
As we head to his office on a hot Friday morning in Lagos, Tayo Oviosu, the CEO of Paga, likens himself to a duck—calm on the surface but paddling furiously underneath. A couple of days from when we meet, his fintech startup will turn 16. Paga is his life’s work and also the first word his son ever said. What started as an agency banking platform in 2009 has evolved into an ecosystem of three businesses: Paga Engine, a digital infrastructure platform for financial institutions; Paga, a consumer-focused fintech similar to Cash App; and Doroki, a retail management platform designed to serve small and medium-sized businesses. “We’ve evolved significantly since the pandemic,” Oviosu told TechCabal. “ People still think of Paga primarily as an agent network, but we’ve grown into a world-class, highly scalable, multi-currency, digital payments and financial services engine.” In 2024, Paga’s ecosystem processed 124 million transactions worth ₦8.7 trillion ($5.6 billion), over 30% of its all-time transaction volume and 40% of its total processing value. This year, the company is averaging over ₦1 trillion ($653 million) in monthly transaction volume. Most of these transactions are driven by Paga Engine, the infrastructure that allows businesses to leverage Paga’s wallets, instant payments, and collection services. Meta, Cleva, Lemfi, and Omnibiz are some of the over 200 businesses currently relying on Paga Engine. “Because we can hold funds, when money is sent to one of those wallets from any bank, the recipient gets it in under three seconds. No T+1, no T+2 settlement delays,” Oviosu said. Why build an ecosystem? Oviosu saw the need to build Paga’s ecosystem after hearing other founders describe challenges Paga had already solved internally. “Three years ago, we decided that to make it simple for a billion people to access and use money, we would have to open up all our infrastructure to other third parties and enable them to build on that infrastructure,” he said. While building a financial ecosystem is challenging and capital-intensive, requiring significant investment in licensing, staffing, and technology, it offers fintechs the best path to controlling transactions by reducing external interference and increasing their margins. When a customer shops with a business using Doroki and pays from their Paga account, the money remains within Paga’s ecosystem, resulting in lower transaction costs and a smoother, faster payment experience for the customer. “The first big lesson is that everything takes longer than you expect, especially when creating something entirely new,” Oviosu said, reflecting on his lessons from building Paga’s ecosystem. “Convincing people to pay from their phones took years. There’s always a behaviour change required, which takes time. Resilience and belief in your mission are vital because the stress of operating here is significant.” That resilience has paid off for Paga’s consumer business, which targets the “mid to upper-end market” and is growing almost 200% in active users and revenue yearly. Rather than competing for Nigeria’s mass market—largely dominated by OPay, PalmPay, and Moniepoint—Paga is positioning itself alongside neobanks like Sparkle, focusing on more affluent users. An ecosystem also provides a buffer when regulators take unexpected actions. In April 2024, Nigerian regulators banned five fintechs, including Paga, from onboarding new customers for six weeks. By establishing Doroki as a standalone business, Paga reduces its reliance on any single revenue stream, helping to safeguard the company against future regulatory disruptions. Nowadays, Paga has revamped its know-your-customer (KYC) process, relying heavily on Nigeria’s national identity number (NIN) and bank verification number (BVN) and a face match using liveliness checks from Smile ID, which Ovious said cut fraud dramatically. The fintech also verifies BVN and blacklists bad actors using an industry-wide fraud list. What does the future hold for Paga? Building on its recent growth, Paga plans to expand its consumer business into another African market in Q2 2025. The holding company is also raising capital after achieving net income profitability in 2024. “We are raising capital to drive growth because we’re not yet in a place where our profitability can drive all the growth we want,” said Oviosu, a former vice president at Travant Capital Partners, a private equity fund. “We’re cautious about growth at all costs; we prefer disciplined growth.” Last year, Oviosu told TechCabal that he would prefer an acquisition over an IPO. It’s an opinion he still holds today, but he sees Paga completing a large private equity deal before a full exit. “I still lean toward a strategic acquisition because it often aligns better with long-term strategy and reduces short-term public scrutiny. But right now, our priority is scaling,” he said.
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How to convince local HNWIs to invest in African startups, according to Marge Ntambi
African investors often champion the need for more local capital on the continent. Their argument is straightforward: local investors have on-the-ground knowledge and are better positioned to navigate local challenges than foreign investors operating from afar. It’s this belief that inspired Benue Capital, an early-stage, sector-agnostic VC firm investing in East African startups, to organise a summit educating Ugandan high-net-worth individuals on the value of Africa’s tech ecosystem. Benue Capital is also the first VC firm with Ugandan partners and LPs. “We believe that true ecosystem ownership starts with local investment. While international capital can accelerate growth, it often lacks a deep understanding of local dynamics and on-the-ground realities,” Marge Ntambi, venture partner at Benue Capital, told TechCabal. “Local high-net-worth individuals, on the other hand, bring not only capital but also strong local networks, business experience, and a real stake in the success of the ecosystem. When they invest, they’re investing in their communities, their economy, and their legacy,” she added. But convincing wealthy Africans to shift from familiar investments like real estate and brick-and-mortar businesses to tech startups isn’t easy. Startup investing comes with higher risk and longer return timelines, even though it offers the potential for outsized gains. “We push back on these myths by spotlighting companies like Asaak, which started in Uganda by financing boda boda riders and has since expanded into Latin America, acquiring a Mexican mobility startup in the process. That’s a Ugandan-born tech company solving real problems and scaling across continents. The issue isn’t whether tech works here; it’s that most local investors haven’t been in the room to witness it,” Ntambi told TechCabal. I spoke to Marge Ntambi to understand Benue Capital’s process of convincing local HNIs to invest in African startups and the decision to go after them. This interview has been edited for length and clarity. How did you initially identify the untapped potential of HNWIs within Africa, and what made you decide to pursue this path? It started with one simple observation. Every missed opportunity was someone else’s win. We saw local founders turning to international investors to fill their rounds because, outside of grants, there were few avenues to access equity financing within the local market. Meanwhile, wealthy Ugandans, many of whom regularly invest in land and property, remained on the sidelines of the tech economy. The disconnect was too glaring to ignore. There was clear capital on the table, but it wasn’t flowing into the businesses shaping the future. That’s when we realised the real challenge was awareness and trust and that mobilising local capital would require building both. What are the biggest hurdles you encounter when convincing HNWIs to invest in the tech startup space? Three key challenges stand out: lack of understanding, the fear of losing money, and discomfort with the structure of startup investing. Most HNWIs are used to tangible assets like land, buildings, or traditional businesses that they can control, value easily, and exit when needed. In contrast, tech startup investments are mostly equity-based and illiquid and come with long time horizons. That mental shift from fixed assets to future upside requires a different kind of risk appetite. Our job is to bridge that gap and show that, when done right, this kind of smart risk-taking can yield outsized returns. What misconceptions about tech investing do you most commonly have to dispel? That it’s only for Silicon Valley, that you need deep technical expertise to get involved, and that African startups don’t scale. The issue isn’t whether tech works here; it’s that most local investors haven’t been in the room to witness it. How do you educate traditional investors about the potential returns and broader impact of venture capital investments in technology? We meet them where they are by comparing venture capital to what they already know. For example, we break down how investing $100K in a promising startup is not unlike buying a plot of land. It appreciates over time, but the upside can be significantly higher if the business scales. We walk them through return data from Africa-focused deals, showing how a few successful bets in a diversified portfolio can more than make up for the losses. We also explain timelines and why venture capital requires patience but can deliver outsized returns. Ultimately, what gets them over the line is the stories and founders they could’ve backed that make it real. When we show them how companies like Asaak or SafeBoda started here and scaled regionally or even globally, it hits different. It’s no longer theory. It’s a missed opportunity they could’ve owned. Do you use case studies, success stories, or data-driven pitches to illustrate the opportunity in African tech? Data opens the door. Stories close the deal. One of the most powerful examples we showcased at our recent HNWI Summit in Kampala was SioValley Technologies, a Ugandan startup founded by a graduate of Uganda Christian University. The founder created an organic, plant-based spray that extends the shelf life of fresh produce without refrigeration, solving a very real problem for farmers, exporters, and consumers in a country where post-harvest loss is staggering. After receiving early support from Acumen, the founder was able to build a facility in Ntinda to serve exporters. Later, he brought on a co-founder, restructured operations to reduce costs, and expanded access to smallholder farmers, exporters, and retailers. The team has gone on to raise more financing, mostly from non-Ugandan investors. When we shared this story at the summit, it made local HNWIs stop and reflect: “This was a Ugandan founder, solving a Ugandan problem, and we weren’t at the table.” Are there investment vehicles or syndicate models that make it easier for HNWIs to dip their toes into tech investing? Yes, and making the entry point simple and low-risk is key. We often recommend starting with syndicates, where HNWIs can co-invest alongside more experienced angel investors. We also encourage co-investment models with VCs like us, where HNWIs benefit from our due diligence, deal sourcing, and post-investment support. This
Read MoreKenya proposes first crypto bill to regulate ICOs, stablecoins, exchanges
Kenya has proposed its first regulatory framework to regulate cryptocurrencies and other digital asset services, marking a major policy shift in one of Africa’s most active crypto markets. The Virtual Asset Service Providers Bill 2025 proposes licencing rules for stablecoins, initial coin offerings (ICOs), digital wallets, crypto exchanges, and investment advisors dealing in virtual assets. If passed, the bill would create a dual regulatory framework, assigning oversight roles to the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). Under the proposal, CBK will regulate wallet providers, stablecoin issuers, and crypto payment processors, while CMA will licence exchanges, tokenisation platforms, investment advisors, brokers, and virtual asset managers. The bill also defines and brings Initial Coin Offerings (ICOs) under regulation. Any company issuing or selling digital tokens to raise money will be required to get approval from the CMA, disclose project details, and follow rules that resemble those of Initial Public Offerings (IPOs) in the stock market. If approved, the bill aims to protect investors, especially after a string of failed and fraudulent coin offerings. It also introduces rules for tokenisation—converting real-world assets like land or artwork into digital tokens on a blockchain. Tokenisation platforms must register with the CMA and disclose how assets are valued, stored, and transferred. This could open up access to fractional investments but raises new concerns about verification and fraud. Stablecoin issuers will also face new licensing and reserve requirements, including regular audits and governance standards—an effort to minimise systemic risks as dollar-pegged tokens gain popularity in cross-border remittances and payments. Non-compliance could lead to fines ranging from KES 3 million ($23,000) to KES 20 million ($155,000), jail terms, and permanent blacklisting from the sector. The bill marks a dramatic reversal from the CBK’s 2015 stance, when it warned the public to steer clear of cryptocurrencies, citing regulatory risks. Today, Kenya has one of Africa’s highest crypto adoption rates, driven by mobile penetration and a growing appetite for digital assets. A 2023 report by Financial Sector Deeping (FSD) Africa found that nearly half (47%) of Kenyan consumers own cryptocurrency, while stablecoin volumes across Africa topped $30 million over the 12 months ending July 2023. If implemented, the legislation could boost investor confidence and attract blockchain-based innovation, but its success will depend on effective enforcement and regulators’ ability to keep pace with the rapidly evolving crypto market.
Read MoreWhy free WiFi at Nigerian airports doesn’t work
By all modern standards, free public WiFi should be an essential amenity at any international and domestic airport. In today’s hyperconnected world, travelers expect seamless internet access to keep in touch with loved ones, handle business emails, and navigate foreign cities. Yet, in Nigeria, this expectation remains unmet. Of the country’s 32 domestic and international airports, only two—Murtala Muhammed International Airport in Lagos and Nnamdi Azikiwe International Airport in Abuja—offer any form of free WiFi. Even at those hubs, the connections are unreliable at best and non-functional at worst. Walk into either the Lagos or Abuja airport, open your device, and you might spot network names like “FREE AIRPORT WIFI FAAN/NCC” or “Glo Free WiFi.” But that’s usually where the experience ends. The network might appear strong, but click to connect and you’re met with a portal that never loads or, worse, an error message. So why, in 2025, can’t Nigerian airports get this seemingly simple service right? Broken connections: The backroom story The failure of airport WiFi in Nigeria is not due to a lack of intention— you can get quality WiFi in lounges managed by private companies within the airport— but rather a complex mix of technical, bureaucratic, and economic challenges. Firstly, infrastructure is a major issue. Many airport routers are outdated or too few to handle the volume of travellers who pass through the airports on any given day. Without proper network planning or ongoing maintenance, connections become bottlenecked or break down entirely. Even where signals are strong, backend systems often fail—authentication portals don’t load, or the routers themselves aren’t connected to the internet. Some networks broadcast service set identifiers (SSIDs) simply for optics, but they have no real bandwidth behind them. The backbone of Nigeria’s internet—terrestrial fibre and microwave links—can be unreliable, especially in non-urban areas. Even in urban areas like Lagos and Abuja, home to Nigeria’s major international airports, inequitable distribution of telecom equipment means that the internet is always fluctuating and unreliable. Combine that with frequent power cuts and rampant fibre cable vandalism, and it’s no surprise that routers often go offline or never reboot properly. Add to that a chronic lack of accountability. Unlike private ventures with customer-facing service models, public WiFi systems at airports often have no assigned contractor responsible for uptime or quality. When something breaks, it may take weeks—or never—to fix. Investors’ reluctance Free WiFi doesn’t come cheap. Laying fibre, installing access points, securing bandwidth, and maintaining uptime costs real money. But for internet service providers (ISPs), the return on that investment is murky. Free WiFi isn’t a direct revenue driver unless it’s bundled with advertising, user analytics, or other monetized services. “The airport might start initially paying, but their expectation is the service provider will find a way to make money from the service. So, the airport might pay for installation and maybe a few months of bandwidth. This leaves service providers trying to find a way to commercialize,” Ladi Okuneye, CEO of UniCloud, a local cloud infrastructure provider, told TechCabal. The most widely considered commercial model for public Wi-Fi is advertising. However, major ad platforms like Google typically won’t enter revenue-sharing agreements with service providers unless the network attracts significant traffic—often tens of thousands of users. In 2024, Nigerian airports recorded a total passenger traffic of approximately 15.68 million, comprising around 11 million domestic travelers and 4 million international travelers. Building a consistent internet user base out of travellers can take months or even years, during which the service provider must cover the full cost of bandwidth and network maintenance without generating revenue. To manage these ongoing expenses, providers may cut corners on operational costs, which often leads to a decline in service quality. Poor quality WiFi can damage a brand’s image if passengers associate it with failure. Additionally, Nigeria’s regulatory landscape is notoriously complex. ISPs may need approval from the Federal Airports Authority of Nigeria (FAAN), Nigerian Civil Aviation Authority (NCAA), Nigerian Communications Commission (NCC), and even the Nigerian Airspace Management Agency (NAMA)—each with its own processes and delays. This red tape deters all but the most persistent operators. Then, there’s the challenge of data monetisation. Globally, free WiFi models often rely on user analytics and targeted advertising. But in Nigeria, data privacy regulations are still evolving, and the lack of clear enforcement makes ISPs hesitant to invest heavily in user-tracking systems that might later be deemed non-compliant. “There is also the issue of maintenance after the initial infrastructure is provided. Someone needs to be responsible and bear the cost,” Rotimi Akapo, Partner and Head of Telecommunications, Media, and Technology (TMT) practice group at Advocaat Law Practice, told TechCabal. Who’s actually in charge? Confusion persists over which government agency is truly responsible for providing internet services at Nigerian airports. While the Federal Airports Authority of Nigeria (FAAN) owns and operates the majority of airports in the country, its core mandate is focused on airport operations rather than digital infrastructure. According to a FAAN official who requested anonymity, the Nigerian Airspace Management Agency (NAMA) is technically responsible for managing internet infrastructure at airports. In reality, both agencies often rely on third-party Internet Service Providers (ISPs) to install and maintain WiFi networks. As part of the 2025 national budget, the Nigerian government has proposed allocating ₦1.5 billion to improve internet connectivity at five international airports across the country. In December 2024, NAMA’s Managing Director, Umar Ahmed Farouk, announced the restoration of WiFi service at Lagos’s Murtala Muhammed International Airport. He urged travelers to connect to the SSID “Free Airport WiFi NAMA, NCC” for complimentary internet access. However, passenger experiences have been disappointing. Many users report that the network rarely connects, and when it does, the internet is often unusable. NAMA officials did not respond to multiple requests for comment. “NAMA is responsible for managing airspace communications—not passenger-facing WiFi,” said Sindy Foster, Principal Managing Partner, Avaero Capital Partners, an aviation consultancy. “The NCC (Nigerian Communications Commission), which regulates telecommunications, may be involved in public WiFi initiatives, but it’s typically
Read MoreNew Fund Sabou Capital to invest up to $500k in 25 African SMEs
Surrayah Ahmed, co-founder of Aduna Capital, one of Nigeria’s most active angel networks, has launched a new SME fund, Sabou Capital, to bridge investment gaps in Anglophone and Francophone Africa. The SME fund will invest between $350,000 and $500,000 in 25 late pre-seed to Series A SMEs in agriculture and agroprocessing, renewable energy and climate, supply chain, logistics, and mobility sectors. The name Sabou is derived from “Sabo,” a Hausa word meaning rebirth or renaissance, blended with a French tonation. The fund is taking a different approach from traditional venture capital firms, targeting SMEs that are primed for scale but lack structured financial support. Unlike funds focused on high-growth tech startups, Sabou, which styles itself as a micro-private equity firm, is investing in businesses that use technology to improve operations rather than being purely tech-driven. Ahmed said differences in vision at Aduna Capital—which remains active as an angel investment group in Northern Nigeria—led to the creation of Sabou Capital, with a broader focus on SMEs in secondary cities across Nigeria, Senegal, and Côte d’Ivoire. “Our team was well aligned on the ‘what’ and the ‘why,’ which many co-founders consider the most crucial, while little focus was given to the ‘how,’” said Ahmed. “This was a learning point for me as I discovered that even the scale of impact one wants to make differs from person to person.” The fund expects a modest 2-3x return on investment—closer to the 3- 5x range typical of private equity—compared to the high-risk 10x expectations of venture capital. By targeting companies that fall outside the traditional VC model, Sabou Capital will compete with private equity firms such as Aruwa Capital, Afrinvest, and Catalyst Fund. “We are more of a hybrid—looking at SMEs with growth potential, not necessarily VC-scale, but with unmet demand that can leverage funding and technical assistance to grow. Think of us more like a micro-PE,” he said. Sabou’s differentiated approach furthers an argument that most African startups don’t fit the mold of the typical venture capital model. “Because most companies on the continent are actually SMEs and do not fit into the definition of VC-backed companies,” Ahmed said. “There are a few that are VC backable, but then that will mean most investors backing the same companies without a differentiated portfolio.” The fund is also adopting a gender-lens investment approach, prioritizing funding for women entrepreneurs. “For every dollar invested in a woman, the return is 2x,” Ahmed noted. “Yet women face disproportionate barriers to funding. They often lack the networks and resources to go out and raise capital.” Ahmed, who previously struggled to access funding as an SME founder in Northern Nigeria, understands these barriers firsthand. “It wasn’t possible for me at the time to travel to Lagos for fundraising. I ended up raising from a family office in Northern Nigeria, which ultimately led to selling my company before we were ready,” he said. To support its portfolio companies, Sabou Capital will offer technical assistance to ensure businesses have strong corporate governance, financial management, and operational systems in place before deploying funding. “We provide support to make sure these businesses are investment-ready,” Ahmed said. A critical part of Sabou’s strategy is the addition of Christian Amouo, a private equity professional with deep expertise in Francophone markets, as a general partner. Amouo previously launched his fund in Cameroon, investing in four companies, three of which remain operational. While Nigeria remains a key market, the firm is diversifying risk by investing in Senegal and Côte d’Ivoire—economies with projected annual growth rates above 6% and currencies pegged to the Euro. “As Nigeria grapples with high inflation, currency devaluation, and slower growth, we decided to leverage the expertise of the founding team to diversify our risk,” Ahmed said. Sabou Capital has yet to begin formal fundraising but plans to launch a roadshow in July. With 20 startups already in its pipeline, the firm aims to shortlist two to three for its first round of investments. “The goal is to scale this model across West and Central Africa,” Ahmed said, stressing the fund’s long-term vision to turn SMEs into large enterprises and exit to larger private equity firms or strategic buyers.
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