Safaricom takes on Starlink with aggressive 5G push in rural Kenya
The telco has slashed router prices and targets fibre-dark zones to reclaim upcountry ground. Safaricom has quietly escalated its efforts to counter Starlink by expanding 5G rollout into rural Kenya, the market the satellite internet service provider (ISP) was built to serve. Over the past six months, it has deployed tens of new sites in regions previously off its broadband map. Safaricom’s sales teams are targeting upcountry users with affordable, plug-and-play 5G routers bundled with flexible data plans and branded giveaways like free t-shirts. At least five customers in Western Kenya told TechCabal that Safaricom salespeople have been in the region since January, pitching the 5G router to them. “They signed me up in two minutes,” said Paminus Osike, a new user in Kenya’s Nyanza province. “Starlink’s initial cost is too high, and I like that this connection isn’t fixed, but I can move around with it.” The sales team that signed him up also sells power banks for KES 5,000 ($39) to help customers stay connected on the move. Another customer, who runs a small cybercafe business, told TechCabal that he compared Safaricom’s 5G router with a rival device and chose to keep Safaricom’s for its speed and larger data allocation. Safaricom is trying to reclaim ground where traditional ISPs underdelivered and where Starlink found early momentum. It is a shift from Safaricom’s past urban focus and shows a new push into low-average revenue per user (ARPU) regions. Starlink launched in Kenya in 2023 to connect areas where fibre and mobile broadband had failed. By late 2024, it was already the country’s seventh-largest ISP, with over 19,000 active subscriptions, mainly in remote counties like parts of the Rift Valley, where broadband coverage remains patchy. In 2024, Safaricom had proposed regulatory changes targeting satellite providers, arguing that licensing entities without a physical presence left the government with little control. The Communications Authority has not taken up the proposal, so Safaricom is now betting on price and broader access instead. Starlink’s demand has surged in urban centres instead, despite its pricing model which does not favour cheaper, pay-as-you-go purchases. In Nairobi, it paused new sign-ups due to limited capacity. The network delivers the same bandwidth regardless of population, so busy areas quickly hit performance limits. In response, Safaricom has doubled fibre speeds and introduced gigabit plans to meet the growing urban demand. It’s positioning itself as a cheaper and more adaptable option in cities where Starlink’s model falls short and in rural areas where Starlink is attempting to thrive. Price cuts to coincide with rural expansion In rural Kenya, people do not have disposable cash for internet services. Many are price-sensitive and can’t afford routers, which are seen as a luxury. Safaricom’s strategy of offering low-cost routers and flexible payment options aims to make 5G more accessible to these communities. Safaricom’s new 5G offer challenges Starlink on hardware and flexibility. Routers now sell for KES 3,000 ($23), down from KES 25,000 ($192), a huge price drop that coincided with its rural expansion. 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Some are sold door-to-door, with M-PESA payment options, mirroring sales tactics used by solar home system companies. Monthly plans start at KES 4,000 ($31) for 50 Mbps and go up to KES 10,000 ($77) for 250 Mbps. Starlink’s basic mini kit costs KES 27,000 ($208),
Read MoreYoung Nigerians are spending 2-3x more on data; they’re not happy about it
When Juliet, a mass communication student at Covenant University, first subscribed to MTN’s ₦3,500 ($2.19) monthly plan, she got 15GB — enough to last her about a week. Now, for ₦5,000 ($3.13), she gets 14GB, which barely lasts one week. “Roughly, I spend up to ₦20,000 ($12.5) monthly on data,” she says. “The data [tariff] increase is crazy, to be honest.” Juliet’s story is far from unique. Across Nigeria, youths are reeling from the recent surge in mobile data and airtime tariffs. The hike, which coincides with broader inflation and economic instability, has forced Nigerian youths to make sharp sacrifices, including choosing between data and food. “We just work to be able to buy data,” Juliet says. “Before, it was food. Now, it’s data.” For many, like Moyo, a research assistant, the frustration is undeniably evident. She used to spend ₦5,000 – ₦7,000 ($3.13-$4.38) monthly on data. Now, she pays double: ₦10,000–₦15,000 ($6.26-$9.39). “It feels like I was sent to this earth for data purchase. It’s exhausting,” she says. Drastic lifestyle change The frustration Nigerians feel stems from the fact that they have to cut costs on many things they love to have enough money to spend on data. Abuja-based product manager, Joshua, had to cut down how much he spends on “Black Tax” — the financial support many young Nigerians give to their family members — due to the tariff hike. When asked how he feels about the hike, he says, “like a Nigerian: defeated and disappointed.”Before the hike, Joshua used to spend ₦37,000 ($23.15) on data. Now, he spends ₦39,000 ($24.40). He used to purchase data on three SIMs from different network providers, but now, he purchases data from just two network providers. “I haven’t been consistent with [purchasing data for] my brother’s router like I used to before the tariff hike,” he says. For young professionals like Emediong, a robotics process automation engineer and a part-time photographer, the new prices are particularly painful. Considering the large file transfers, design uploads, and streamed tutorials, his monthly data needs are high. To cut airtime costs, he now uses WhatsApp for most of his calls. Unfortunately, airtime is not the only thing Emediong has had to cut costs. “I used to have some snacks to nibble on sometimes while working. It helped to keep me going till I could get food. I had to cut all that because of the increased data expenditure.” Moyo admits that she has had to reduce how she streams and downloads “unnecessary stuff.” She adds that it is hard because she mostly uses Instagram and TikTok, which are not “data-friendly.”Charity, a Covenant University student, says she has stopped buying takeout to free up funds for data: “I do more home cooking now.” Even tech bros are no exception to the lifestyle change. Tobi, a software engineer, says that his data bill has quadrupled from ₦5,000 ($3.13) to ₦20,000 ($12.5). “I am not coping, to be honest,” he says. He reveals that his “fun budget” has taken a hit. Wi-Fi to the rescue of young Nigerians? Young Nigerians have been forced to find alternatives to cope. Frank, an Abuja-based associate lawyer, cut his food expenditure to spend more on data. “I’m not coping at all,” he says. “Monthly, I use other people’s Wi-Fi a lot.” He now spends ₦11,000 ($6.88) monthly on data, up from ₦6,000 ($3.75). “I feel bad about it,” he says. Frank is not the only one who relies on other people’s Wi-Fi to survive. Ayo, an architecture student at Covenant University, says she always uses her school’s Wi-Fi at strategic points when the need arises. At other times, she uses a Glo network family data plan. “It is done collectively as a family expenditure, like electricity bills,” she says. Ayo’s workaround to data expenses makes her one of the few young Nigerians who have not been affected by the tariff hike: “I am not exactly satisfied about the hike in [terms of] general purchasing prices, but sincerely, data [purchase] hasn’t been my primary concern as regards expenses.” “Why didn’t God just create me to be an American?” A few outliers like Ayo are insulated from the blows of the tariff hike. And then there’s Miracle, a banker, who can not relate to Ayo’s reality. Miracle sums up her frustration with the kind of blunt exhaustion many feel but few articulate so starkly: “This regime is the worst of the worst. Why didn’t God just create me to be an American or something?” Miracle is among millions of young Nigerians who need exactly that — a miracle — just to afford the luxury of being online. *Exchange rate used: ₦1,600 = $1
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👨🏿🚀TechCabal Daily – EVs, but make them power banks
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! It’s Friday. Just to repeat: it’s Friday. We made it. Get caught up on the tech news, log off, and enjoy your weekend. Some Hertitude news before you get into the newsletter: Hertitude is a safe space for women to relax, connect, and dance the night away after the hustle of Q1 2025. Get tickets for yourself and your loved ones at 20% off with the code TECHSIS25. South African EV startup Zimi raises $320,000 Starlink is now in Lesotho—but at what cost? Egypt cuts rates for the first time since 2020 Funding Tracker World Wide Web 3 Opportunities Startups South African EV startup Zimi raises $320,000 Image Source: Zimi Imagine a South Africa where parked electric vehicles (EVs) double as power stations— feeding energy back into homes, businesses, and even the national grid. That future sure looks brighter. Zimi, an EV charging startup, has secured $320,000 (R6 million) in grant funding from the Energy and Environment Partnership (EEP Africa Trust Fund) to make that future a reality. The startup will investigate and develop real-world pilot applications to test its vehicle-to-grid (V2G) technology, a technology that allows electric vehicles to charge from the power grid and send electricity back when needed. This groundbreaking innovation comes at a crucial moment for South Africa. With escalating electricity prices and grid instability impacting daily life, V2G technology offers a compelling solution: turning fleets of electric vehicles into backup energy sources. Selected as one of just 32 projects funded out of 530 applications, Zimi aims to build a solution that works for customers without compromising grid stability. Zimi’s long-term business model is to partner with major logistics providers to support their transition to electric vehicles, helping them reduce both operational costs and carbon emissions. The V2G model will play a key role in enabling this shift. With global automakers introducing bi-directional charging capabilities, like the recently launched Volvo EX90, Zimi’s vision is gaining momentum. If Zimi’s innovation is successful, this effort could prove that the future of energy is about smart, sustainable circulation. 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 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. Internet Starlink is now in Lesotho—but at what cost? Image Source: Google In more Southern African news, Mosothos are reacting differently to the country’s recent licence for Elon Musk’s Starlink. Caught between a rock and a hard place, Lesotho granted Starlink a 10-year licence to operate in the country, letting go of its 30% local ownership criteria. This move was heavily influenced by US tariff pressure and a desire to improve the country’s ties with the US. ICYMI: The US had earlier placed a 50% tariff on the country’s exports before it was paused for 90 days. That move threatened to cut over 12,000 factory jobs. Although Starlink’s presence will improve internet penetration in the southern African country, civil watchdog groups are unsatisfied with the terms of the deal. Section Two, for instance, isn’t buying the pro-growth narrative. The group called the move “a betrayal,” citing the lack of transparency in the deal. The group worries that the country’s digital future is now entirely in foreign
Read MoreSouth Africa’s Zimi secures $320,000 to test turning EVs into power stations in South Africa
Zimi, a South African electric vehicle (EV) charging solutions startup, has secured $320,000 (R6 million) in grant funding from the Energy and Environment Partnership (EEP Africa Trust Fund) to test its vehicle-to-grid (V2G) technology in South Africa. Vehicle-to-grid (V2G) is a technology that lets electric cars send power back to homes, businesses, or the electricity grid when needed. EEP Africa, a leading clean energy financier in Southern and East Africa, selected Zimi as one of just 32 projects funded out of over 530 applications in its latest portfolio round. In a country like South Africa, where frequent load shedding and grid instability disrupt daily life and economic activity, V2G technology can turn parked electric vehicles into backup power sources to support homes, businesses, and the national grid. “The grant aims to investigate and understand the limitations and challenges of Vehicle-to-Grid (V2G) technology, develop real-world pilot applications to test V2G in practice, and ultimately create a commercial model that operates within existing grid constraints,” Michael Maas, Zimi CEO, told TechCabal. Zimi’s business model is to partner with major logistics companies to support their transition to EVs – a move aimed at cutting operational costs and carbon emissions. By integrating vehicle-to-grid (V2G) technology into this strategy, Zimi plans to offer fleet operators charging solutions and turn idle EVs into energy that can feed power back into their facilities or the grid. As EVs and chargers become affordable, Zimi sees this as starting a bigger shift. While it may take time for everyday consumers to come on board fully, the company is betting on early adopters like logistics fleets to lead the way. “Perhaps the most important factor is a proven track record – something we have established through our work with major logistics providers such as Bakers Logistics,” Maas said. The funding announcement follows Volvo EX90’s launch in South Africa – one of the country’s first electric vehicles equipped with bi-directional charging, a feature that enables vehicle-to-grid functionality.
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👨🏿🚀TechCabal Daily – Laid off for doing too well
In partnership with Lire en Français اقرأ هذا باللغة العربية Wazzup! Here’s one lesson: if remontadas were real, we now know they don’t bleed white. Don’t stack up the odds against you. Let’s dive in. Kenya’s Tala lays off 28 employees Uber drivers must carry no more than two passengers Suspension of SASSA cards puts 28 million people at risk Nigeria is banking on AI, cybersecurity World Wide Web 3 Events Startups Kenya’s Tala lays off 28 employees Mumbi Annstella, Tala’s General Manager/Image Source: Tala Imagine losing your job because your company’s customers were on their best behaviour? Well, we mean, isn’t that what you’re hoping for if you work for a company that is frequently in the loan recovery business? It’s a weird position to be in—rooting for success, only to be let go because things went too well. That was the fate of 28 Tala employees who were let go this month. In digital lending, keeping a low loan default rate is how you stay capital-efficient. Repayments replenish the pool to lend again, and that’s the engine for revenue. At least Tala, the Kenyan micro-lending startup, says it will fulfill all its contract obligations to these ex-staff members post-employment. They will get their final pay and one-month severance payment, plus paid unused leave days. Still, there’s one suspicious thing: Tala didn’t disclose its current loan default rate, even as it touted repayment efficiency, making us curious about its methods in a digital lending space where high loan defaults are a feature. In Kenya, defaults on digital loans hit 40% in December 2024 and banks don’t have it easy either. What is Tala doing right? Kenya’s credit scoring system is not very advanced, so Tala sticks with verifying your SMS, bank transactions, and social patterns, before making lending decisions. It asks for these details before it processes loan requests, making it easier for its system to reject even a new user beforehand. This helps Tala avoid risk compared to most legacy and digital lenders that typically onboard new users with loan offers. However, in cases of prolonged defaults, Tala uses debt collection agents, showing it is not afraid to use force; you can argue ethics later. In Kenya, a bigger micro-lender, M-Shwari, charges 9% interest rate. Competing microfinance institutions (MFIs) charge over 20%, leaving Tala with a small window of opportunity with its initial low-cost loans which start at 4%. Its loyalty programmes also help to keep users coming back. In a space with expensive switching costs for customers, it is important to give price-sensitive Kenyans more reasons to stay out with one lender. Yet, the big question: can Tala sustain the momentum? 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. 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 Ride-hailing Uber says gig drivers must carry no more than two passengers in South Africa Image Source: Wunmi Eunice for TechCabal Say what you want about the ride-hailing business, but the companies know the demons they deal with—and they’re at least making attempts to fight them. Uber South Africa announced on Tuesday that it has introduced passenger limits across its services, including its newly launched Moto service. The updated policy, aimed at
Read MoreMalobi Ogbechie could not ship his fonio affordably, so he launched a logistics startup
On a sunny day in mid-2020, Malobi Ogbechie stepped off a ferry into Lagos’ Apapa port. He paced the busy port for hours, asking dockworkers how to ship his small batches of fonio, a nutrient-rich West African grain, by sea to save on expensive air freight that was eating into his margins. Unable to afford shipping a full container, he asked around for shippers who allowed cargo sharing with other exporters—groupage, as it’s called. He found none. Five years later, Ogbechie is no longer a struggling exporter but a founder trying to solve this problem with Kadan Kadan, his logistics startup which lets small businesses export their goods in shared containers at a fraction of the cost of air freight. Kadan Kadan now serves tens of businesses, including ReelFruit, a leading food technology startup known for its dry fruit snacks. Early life and education in England In 2002, at the age of ten, Ogbechie landed in Somerset, England, a world away from the bustle of Port Harcourt in the Nigerian south, where he’d spent his early years. His parents, seeing education as a gateway to economic opportunity, enrolled him and his brothers in boarding school. “It was alright,” he recalled at Pitstop, the Lagos restaurant where we met. As one of the few Black students in their school, Malobi and his siblings navigated a subtle undercurrent of racism. “There were little racist jokes here and there,” he said, reflecting on a UK that, in the early 2000s, felt less inclusive than today. “A group of Black guys couldn’t walk into a building together without issues.” At first, Malobi admitted, this atmosphere created a “victim mindset,” the weight of which could’ve defined him had he not learned to shake it off. At the University of Bath, years later, he enrolled in European Studies with French and German, a program that promised language fluency and a deep dive into European politics and economics. “I speak both languages,” he said. The French came in handy in his later African travels. It was at Bath that Malobi began to see Africa as a continent sidelined in global markets. After Bath, he pursued a master’s in international relations at Regents University London. Malobi recalled an almost insufferable curiosity about the continent during mostly Europe-focused classes. “I could feel my questions made some students and lecturers uncomfortable.” After graduating, Ogbechie had a 3-month stint at a tech firm providing business training solutions but was fired due to a mismatch in corporate culture. “I had to learn how to fit in over time,” he recalls. He then secured a position at Panalpina, a global logistics company, as a business development manager for about 17 months, gaining initial knowledge of air and sea freight. Following this, he continued his career in business development roles at market research companies. Discovering fonio and returning to Nigeria While working in market research, Ogbechie discovered fonio, a small, millet-like grain native to West Africa, primarily grown in Senegal, Mali, Guinea, and Nigeria. He sold it to retailers in London; its nutritional value and African roots made it a unique product at the time. It was just a side venture until he decided to learn more, he said. His curiosity took him on a two-week journey across West Africa, through Senegal, Gambia, Guinea, and Sierra Leone, where fonio fields stretched under open skies. His French came in handy in the Francophone countries. The journey felt somewhat like a transformative privilege so that after returning to London, he quit his job and moved back to Nigeria to export the grain full-time. Kadan Kadan: the “little by little” solution Ogbechie’s return coincided with COVID-19 pandemic lockdowns that swept across the globe in early 2020. Even as global logistics bottlenecks intensified, he continued to source the grain from Nigeria and ship it to his handful of customers via air freight. “I was either breaking even or making minimal profit, just to keep customers abroad happy,” he explained. Frustrated by the expensive freight prices, Ogbechie looked for groupage services—sea freight logistics enabling small-scale exporters to share container space to cut costs—but found no solutions at the port. “I was asking people on the road if they knew anyone offering this service. No one did,” he said. In hindsight, the service did exist but was largely offline and hard to find organically. “There was a clear gap. Others like me would need this but wouldn’t know where to find it.” He continued to think about the problem, but only took concrete steps to create a shared container service in 2022 during a short agribusiness course at the Lagos Business School. Tasked with pitching a business idea, Ogbechie presented three concepts: processing kenaf (a versatile West African crop), a food export venture, and the shared container service, which won unanimous support. “Everyone backed the container idea,” he said. After months of research and networking, he launched Kadan Kadan in 2023. “Kadan Kadan” is a Hausa phrase that means “little by little.” Current operations and future plans Its model was straightforward: groupage, or shared containers, letting multiple businesses pool goods into one sea shipment. “We’re moving cassava flour, dresses, and more overseas,” Malobi said on Arise TV this month, “at a quarter of air freight’s cost.” Air freight to Houston costs $3,500 per ton of garri, while Kadan Kadan’s shared containers shipped the same for $520, covering port fees. The setup was digital, a web app that let clients track shipments, get quotes, and book space, reducing paperwork that bogged down operations in traditional startups. “The shipping industry isn’t very tech-enabled,” he noted, and his app aimed to change that by offering transparency where manual forms caused delays. It didn’t own ships or warehouses, keeping costs low by partnering with carriers—an asset-light approach enabling scalability through more clients and containers, leading to cheaper per-ton rates. The first container filled by 80% even without any paid ads, Ogbechie recounted. His rates undercut air shipping by two to three times. Though slower than
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Nigeria is banking on AI, cybersecurity to lead Africa’s digital future
Nigeria’s tech ambitions were on full display this week at GITEX Africa in Morocco, where the National Information Technology Development Agency (NITDA) pitched to the international audience a future shaped by artificial intelligence in Nigeria and cybersecurity, two pillars it hopes will define the country’s next phase of digital transformation. Kashifu Inuwa, NITDA’s Director General, made a case for integrating AI as a strategic layer in leadership and policy execution for governments and businesses across Africa. “AI is shifting the skills we value today, as well as the processes we use to do our daily work,” he said during a panel session at the main stage on Tuesday, April 15. “To drive strategic leadership, you need to be an AI-driven leader and find a way to use AI as a tool to create co-intelligence whereby you bring people and computers to work together to deliver your strategic vision as a leader,” he noted. It’s a bold proposition for a country that still struggles with the fundamentals, including broadband coverage and limited digital infrastructure. But NITDA is betting on a top-down push to position Nigeria and, by extension, Africa as a global force in AI governance and innovation. On Tuesday, April 15, Nigeria’s Minister of Communications, Innovation and Digital Economy, Bosun Tijani launched the country’s National Artificial Intelligence (AI) Strategy in Lagos. Nigeria’s AI push is backed by government ambition and funding from international partners. In October 2024, the ministry announced a ₦2.8 billion Google grant to promote AI talent development in Nigeria. Though critics have said Nigeria must address fundamental problems such as reliable electricity, food security, and poverty before pushing broader tech ambitions. But the country’s leadership sees AI as a historic opportunity to claim a stake in the global tech future. “We missed the first, second, and third industrial revolutions, but this fourth one, we must lead it and not just follow,” Inuwa added on the panel. Not just AI, but cybersecurity too In addition to its AI pitch, NITDA signed a Memorandum of Understanding with SecDojo, SAS, a France-headquartered cybersecurity training and upskilling company, for targeted capacity-building initiatives. This forms part of the regulator’s effort to enhance Nigeria’s cyber resilience. Nigeria is ranked as the 13th most vulnerable country to cyberattacks, according to Check Point Software Technologies’ December 2024 Global Threat Index. The deal will support the creation of a cybersecurity academy in Nigeria, with training programs, simulation environments, and curriculum development aimed at filling the global cyber talent gap. Image Source: NITDA. “Globally, we have the gap, and in Nigeria, we have a young population that if we harness well, we can train them and connect them with the global value chain to provide cybersecurity services and also to fill some roles and gaps in the global cybersecurity market,” Inuwa said at the MoU signing ceremony on Monday, April 14. Digital talent as export is a familiar theme from the Nigerian government, evident by the three million technical talents (3MTT) programme. While the need for talent is real, so is the question of sustainability. Inuwa himself noted that much of Nigeria’s current digital skills training is delivered through short-term acceleration programs. He’s now pushing for integration into the formal education system. “To prepare for the future, we must embed these skills into our national education framework,” he said, pointing to Cisco’s model of academic integration in Nigerian universities as a possible blueprint. In Marrakesh, Nigeria made its case. Whether it sticks will depend on what happens back home.
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UBA, Access, 8 others earn a record ₦674 billion from e-payments
Ten of Nigeria’s biggest banks recorded a 58% surge in e-payments income as digital transactions hit a record high in 2024, according to their latest financial statements. The increase, driven by higher transfer volumes, increased reliance on mobile apps, and card usage across retail channels, is reshaping the traditional profit model of banking in Nigeria. The banks—Access Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, Zenith Bank Plc, First HoldCo Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, FCMB Group Plc, Sterling Financial Holdings Company Plc, and Fidelity Bank Plc—saw their combined e-payments revenue rise to ₦674 billion ($419.7 million) from ₦428.6 billion ($266.6million) in 2023. UBA reported the highest value of ₦236.3 billion ($147.1 million), followed by Access with ₦178.6 billion ($110.9 million). Zenith, First HoldCo, GTCO, Wema, FCMB, Sterling, Stanbic and Fidelity recorded ₦80.5 billion ($ 50.4million), ₦76.8 billion ($47.9 million), ₦56.6 billion ($35.5million), ₦14.1 billion ($8.73 million), ₦13.7billion ($8.54million), ₦8.16 billion ($5.09 million), ₦4.36 billion ($2.71 million) and ₦4.19 billion ($2.61 million) respectively. Last year, electronic payment transactions processed through the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment (NIP) platform reached ₦1.07 quadrillion— the highest ever recorded from N600 trillion in 2023. This means that these banks earned ₦674 billion in processing ₦1.07 quadrillion in transaction volume. Depending on the channel and bank, charges used to range between ₦10 and ₦50 on transactions between ₦5,000-₦10,000. But on December 1, 2024, the federal government instructed banks and fintech companies to immediately implement a ₦50 deduction on electronic transfers above ₦10,000. Analysts say banks are increasingly turning to digital channels as a reliable source of non-interest income, and the strategic shift is driven by high inflation and interest rates, which have compressed traditional banking margins and increased loan risks. “Revenue from e-banking is now proving to be a vital source of income for Nigerian banks, as more people increasingly rely on digital channels,” Israel Odubola, a Lagos-based analyst, said. “What was once a supplementary stream has become a strategic imperative.” According to Gbolahan Ologunro, portfolio manager at FBNQuest Asset Management, the increase in e-banking revenue is one of the major justifications for the banks to spend more on IT-related infrastructure. “Providing exceptional customer experiences through banking channels will increase customer transactions on those channels,” he added. TechCabal reported earlier this month that six major Nigerian banks spent ₦268.7 billion ($171.5 million) on IT infrastructure and tech-related services in 2024, a 74.5% surge from ₦153.8 billion ($98.2 million) in 2023. Electronic transactions in Nigeria have witnessed significant growth in recent years, driven by factors such as the cashless policy of the central bank, increased internet and mobile phone penetration, and the development of innovative payment platforms like OPay and PalmPay. According to data from NIBSS, the total volume of NIBSS Instant Payment platform (NIP) transactions also rose to 11.3 billion from 9.7 billion. A further breakdown of the NIBSS data also shows that apart from NIP transactions, Point of Sale (PoS) volume increased to 1.45 billion from 1.39 billion, while its value rose to ₦79.5 trillion from ₦46.9 trillion. Tajudeen Ibrahim, director of research and strategy at Chapel Hill Denham, said the naira depreciation largely contributed to the increase in transaction value. “NIBSS is not only for local currency transactions alone. It is an interbank settlement. So, any foreign currency bank settlement would have influenced that number,” he added. The naira has lost more than 70 percent of its value against the dollar following two sharp devaluations since July 2023. At the official market, the naira depreciated from ₦463.4/$ on June 9, 2023, to ₦1,601.4/$ as of April 15, 2025. The surge in electronic transactions also contributed to Nigeria recording the steepest decline in cash transactions, surpassing six cash-reliant economies in the last decade, according to a report by global payment processing company Worldpay. From 2014 to 2024, cash transactions in Nigeria fell by 59%. With ₦674 billion earned from ₦1.07 quadrillion in transactions, Nigerian banks aren’t just adapting to the digital wave—they’re cashing in on it. As cash fades and mobile taps replace physical queues, e-banking has become the new financial frontier.
Read MoreTala lays off 28 staff as loan defaults and customer queries fall
Digital lender Tala has laid off 28 employees from its customer operations team, citing a reduced workload due to fewer loan defaults and a drop in customer support queries. In an internal memo seen by TechCabal, the company said the layoffs were necessitated by a shift in how customers repay their loans. An internal memo from February 2025 initially outlined plans to cut 55 roles across Tala’s recovery and customer service teams, citing operational shifts and efficiency measures. That figure was later revised to 28 in April as the company reassessed its restructuring plan. “With Tala customers successfully choosing and managing their loan repayment timelines according to their income cycles, 28 positions in the customer operations team were declared redundant,” Tala said in the memo. Tala said the layoff would affect 3% of its workforce, suggesting the company employs nearly 1,000 people. The lender said it would honour all dues for affected staff, including their final salary, one month’s pay in lieu of notice, a severance package of at least 15 days per year worked, and unused leave. Employees will also receive a one-time ex gratia payment and certificates of service. The layoffs hint at shifts in borrower behaviour. In Kenya, most digital loans cover day-to-day expenses rather than business or investment needs. With the economy under pressure, many consumers may borrow less or avoid new debt altogether. At the same time, the digital lending space has grown increasingly crowded. For standalone lenders like Tala, the challenge is attracting users and competing with M-Pesa-linked services like M-Shwari, Fuliza, and KCB-Mpesa, which offer seamless integration and brand trust. As of 2023, M-Shwari (34%), Fuliza (25%), and KCB M-PESA (15%) led the Kenyan digital lending space. Tala held a 13% market share, just ahead of Branch at 9%. Tala did not immediately respond to a request for comment.
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👨🏿🚀TechCabal Daily – Access denied
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! Good morning from Marrakesh, where our senior editor, Ganiu Oloruntade, is attending Africa’s biggest tech and startup show, GITEX Africa. If you’re in Morocco, please say hi to Ganiu. CBN halts Access Bank’s NBK acquisition GITEX Africa: Morocco is betting big on tech Moniepoint enters Nigeria’s remittance market with the launch of Monieworld CBEX: another ponzi scheme bites the dust World Wide Web 3 Opportunities Banking CBN halts Access Bank’s NBK acquisition Image Source: Access Bank On Tuesday, Nigeria’s largest lender by asset, Access Bank, received approval from both the Central Bank of Kenya (CBK) and the country’s Treasury to acquire the struggling National Bank of Kenya (NBK). What seemed like a hard-won victory has hit a wall, with Nigeria’s Central Bank blocking the deal over regulatory breaches and failure to receive proper notice. The CBN flagged missing disclosures and a non-compliant structure and has asked both parties to resubmit the deal. But there’s another layer: Nigeria’s Central Bank reportedly wants Access Bank to exit the Democratic Republic of Congo and shut down its London office as part of broader efforts to streamline Nigerian banks’ foreign operations. That pressure is believed to be contributing to delays in approving the East Africa deal. The freeze complicates Access Bank’s aggressive regional expansion. NBK, with over 85 branches, would significantly boost Access’s presence in Kenya—one of Africa’s most competitive banking markets. Without it, the deal could lose strategic value. 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. Events GITEX Africa dispatch: Morocco is betting big on tech Our senior editor Ganiu Oloruntade at GITEX Africa 2025, Marrakech, Morocco/Image Source: TechCabal Marrakech smells like jasmine, spice, and ambition. That’s the best way I can describe the energy at GITEX Africa 2025, which kicked off on Monday with over 1,450 exhibitors, 350 global investors, and 650 speakers from 130 countries. Now in its third edition, GITEX Africa—now solidified as the continent’s biggest tech and startup show—has positioned Morocco as a continental tech hub, thanks to serious government backing and a growing appetite for innovation. Thousands of people swarm around the sprawling Place Bab Jdid, Bd Al Yarmouk, a venue so massive you could easily miss your way (full disclosure: I got lost thrice). Booths buzzed with product demos and investor pitches, while the stages hosted deep conversations on everything from renewable energy, the future of finance to telecom infrastructure. Notably, Flutterwave CEO Gbenga Agboola spoke to TechCrunch’s Tage Kene-Okafor about the company’s growth from local disruptor to a global fintech powerhouse. GITEX is no longer just an occasion to showcase the latest innovations, but has become a strategic place to strengthen digital inclusion between African countries, to build bridges of cooperation with our international partners, and to accelerate the pace of sustainable digital transformation,” said Mohammed Drissi Melyani, Director General of the Digital Development Agency. At the opening ceremony, Amal El Fallah Seghrouchni, Morocco’s Minister of Digital Transition and Administration Reform, reminded us that the digital economy now contributes 15% of global GDP. This year’s GITEX isn’t just bigger, but broader. New country pavilions popped up from Gabon, Uzbekistan, Belgium, and Niger. Beyond the typical focus on AI and cybersecurity, the agenda now covers sports tech, energy transition, and edtech. Walking through the exhibitor booths, I stopped by Visa’s setup, right opposite the Future of Finance stage, and yes, I couldn’t resist taking a picture with the AFCON trophy on display. I hope the Super Eagles bring it home this time. Moments like that remind you that this isn’t just about tech, it’s about culture, pride, and continental ambition. If you ask me, I’d say GITEX Africa is Morocco’s diplomatic and economic bet on technology and innovation. The North African nation is making a bold bid to become the continent’s innovation capital, and it’s doing so with scale and purpose. Till my next dispatch, Adios! Here’s what happened at Paystack in 2024! See what Paystack built last year! From major product upgrades to new ways we supported African businesses. Check out our Year in Review → Fintech Moniepoint enters Nigeria’s remittance market with the launch of Monieworld Image Source: Wunmi Eunice/TechCabal Moniepoint, Nigeria’s latest unicorn, is going after the country’s remittance market with the launch of Monieworld, its latest app. The app is focused only on the UK-Nigeria corridor and UK residents can send money directly from a Monieworld account or link their Apple Pay to transfer money to any Nigerian bank account. In a live demo, it took just 17 seconds to send money to a Moniepoint account. The recipient got ₦2,172 for £1—that’s ₦53 more than what you’d get on platforms like Grey, and ₦30 more than Lemfi. While Monieworld will compete against focused and well-funded startups like Lemfi and Raenest and global players like Wise, Moniepoint is not too worried, as the startup plans on creating its customers for Monieworld. Tosin Eniolorunda, Moniepoint’s CEO, told TechCabal that his company is hoping that it can bring its superior distribution to the remittance market and onboard the Nigerians that prefer sending money via informal channels. Nigeria received £2.7 billion in remittances from the UK in 2021 through formal channels, and according to the World Bank, remittances are split between informal and formal channels, with most migrants preferring to send money through agents as they attempt to dodge high transaction costs. Monieworld is possible because Moniepoint’s British subsidiary—Moniepoint GB—partnered with PayrNet, a licensed electronic money institution (EMI) in the UK, to process remittances. Moniepoint also acquired an international money transfer operator (IMTO) license in Nigeria through a subsidiary called Global Wire. TechCabal had an exclusive conversation with Eniolorunda to understand why the fintech is expanding into remittances, its ideal customer, its customer acquisition strategy and everything you need to know
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