Next Wave: ESPOPs and the future of employee ownership
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 08 June, 2025 Image | Alter Finance Earlier this week, I reported that Moniepoint employees sold part of their shares for $870,000. After a similar Arnergy story, the online reaction was swift. Readers loved it, urging more founders to do the same. These moments are inspiring, but still rare in African tech. More often than not, employee shares aren’t worth the paper they’re printed on. However, this is less an indictment of startups and more a reflection of how young Africa’s tech ecosystem still is. With time and more success stories, employee rewards like this will likely become more common. To prepare our readers for that (hopefully immediate) future, today’s edition of Next Wave will explore everything you need to know about employee stock option plans (ESOPs)—and how they can work for your company. What are ESOPs, and how do they work? When a young founder starts assembling her dream team, she often faces a tough choice: go it alone or persuade talented people to join her for a modest salary and a stake in the company. With limited capital and high market salaries, equity becomes a powerful tool to attract top talent. ESOPs let employees own a part of the company they work for. Instead of just earning a salary, staff receive shares or the option to buy shares in the future. In the tech world, where startups often can not pay high salaries at the beginning, ESOPs are a popular way to attract great talent and build a strong sense of teamwork and ownership. Next Wave continues after this ad. Moonshot is back, and this year, it’s about moving from resilience to results. With the theme Building Momentum, the 2025 edition explores how Africa’s digital economy can shift gears into scale, structure, and long-term growth. Expect more honest reflections, sharper insights, closed-door roundtables, and conversations that don’t end when the panels do. Watch the 2024 highlights. Early bird discount now available Reserve your spot here! Founders set aside a percentage of the company’s equity, often around 10–15% in early stages, as an option pool from which grants are made to employees. Each grant either awards employees shares directly or allows them to buy shares at a fixed price, typically set at the fair market value on the grant date. In the U.S., startups use a 409A valuation to determine this value, ensuring compliance with tax rules. The bet is that the company’s share price will rise over time, allowing employees to buy low and sell high when an exit, like an acquisition or secondaries, occurs. Because private company shares are illiquid, startup ESOPs include vesting schedules to reward long-term commitment. The most common structure is four years with a one-year cliff: employees earn 25% of their options after the first year, with the rest vesting gradually, typically monthly, over the next three. Those who leave before the cliff forfeit all options; those who stay keep what’s vested. Many companies include a post-termination exercise window—often 90 days—during which departing employees must exercise vested options or lose them. Startups may also offer additional grants to high performers (Arnergy, for instance, used this approach) or long-serving staff who’ve fully vested their initial options, keeping top talent engaged and incentivised. In privately held startups, employees usually can’t cash out their stock until a liquidity event because there’s no public market for the shares. Until then, stock options remain a deferred reward. This makes ESOPs especially tricky in emerging markets where exits are rare. Employees must often bet on the company’s future success while earning below-market salaries. Still, startups use ESOPs to attract talent they couldn’t otherwise afford, trading ownership for loyalty and long-term commitment. Some success stories Silicon Valley provided most examples of ESOP-driven wealth creation in the past, but today, the practice is spreading globally. Emerging market startups are increasingly adopting ESOPs to attract talent and share the upside of growth. In India, a startup boom over the past decade has brought a broader embrace of ESOPs, with some of the largest unicorns delivering landmark liquidity events for employees. One of the most impressive liquidity events was when Flipkart, an e-commerce startup acquired by Walmart, set the standard for employee stock option payouts in emerging markets. When the American giant acquired a majority stake in Flipkart in 2018 at a $20 billion valuation, Flipkart initiated an $800 million ESOP buyback for current and former employees. Over 6.2 million employee-held shares were repurchased at ~$126 per share. The deal minted hundreds of dollar millionaires and rewarded thousands of others with significant windfalls. Next Wave continues after this ad. Nigeria’s digital payment space is evolving fast. Are you keeping up? Our latest report highlights key shifts, challenges, and opportunities across the country’s payments ecosystem. Donwload the report now. Not long after, in 2021, Grab rose from a ride-hailing startup to Southeast Asia’s super app and went public on NASDAQ through an SPAC merger. That listing allowed hundreds of employees to convert their equity to liquid stock, and many early staff members became paper millionaires overnight. The IPO windfall created a new challenge: retaining employees who now had significant wealth. Grab responded with staggered lock-up periods and urged long-term holding, though some post-listing attrition was inevitable. In 2020, Nigerian fintech startup Paystack was acquired by Stripe for a reported $200 million – one of Africa’s largest tech acquisitions to date. Paystack had an ESOP pool, and although details are private, it’s well-known that early employees benefited from the buyout. How to set up an ESOP Establishing an ESOP is both a strategic and legal undertaking, and it’s one of the most powerful
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“I saw the crypto ban on social media, like everybody else”: Day 1–1000 of Busha
In Day 1–1000, we follow founders through the raw, unfiltered journey of company-building: the early scrambles, the quiet breakthroughs, the painful pivots, and the milestones that shape what a business becomes. This goes live on Saturdays by 2 PM WAT. In late 2017, as Bitcoin surged to $20,000 and global crypto fever peaked, Moyo Sodipo faced a frustration that would become the seed for Busha, a platform where Nigerians can buy and sell cryptocurrencies in Naira. “There was no easy way to buy or sell cryptocurrency here. I had to get someone in the US to help me buy Bitcoin, then send it over. You always had to depend on someone,” he recalls. By 2018, Sodipo and his co-founders—a tight-knit five-member group with roots in Jumia’s early days—began building. Their mission was simple: make crypto transactions accessible, instant, and trustworthy for everyday Nigerians. After a private beta, Busha launched to the public in 2019, entirely bootstrapped. Day 1-100: Building in the dark and the first validation Back then, Nigeria’s crypto regulatory climate was a blank slate. There were no clear frameworks, but also no explicit ban. Yet, Busha’s approach was anything but reactive. “As far back as 2018, we reached out to the SEC (Securities Exchange Commission) and said, ‘Hey, this is what we’re trying to build. We know there’s no active regulatory framework, but we want you to be able to regulate us,’” Sodipo says. This proactive compliance-first stance was strategic. “We’ve always done KYC, always done transaction monitoring. We built in such a way that anytime regulators came, we’d be ready. We didn’t need to scramble to get our house in order.” 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 TC Scoop <!– Next Wave –> <!– Entering Tech –> Subscribe The first version of Busha was released in early 2018. It took about eight months to develop a product ready for private beta. Michael Adeyeri, one of Busha’s co-founder and lead engineer, wrote the first lines of code. As with most startups, Busha’s co-founders wore every hat. “I was at the forefront of support and operations; Michael handled engineering and product; Samuel did finance; Oye led marketing; Femi covered operations. Our roles intertwined, but everyone was all-in,” Sodipo explains. Their relationship was beyond professional. Sodipo says all five of them had known each other for more than a decade, “almost brothers”, and this contributed in navigating the early days of the business with little personality conflicts. Busha’s first major validation came during the 2020 COVID-19 lockdown. “During the global financial crash, when everything tanked, people were still interested in crypto, still buying the dip. Seeing African customers ‘buy the dip’ at that point showed us we’d built something essential,” Sodipo recalls. “COVID was a blessing in disguise for us. People were at home, exploring new ways to earn and transact. Crypto became that opportunity.” Day 730: “Crypto Black Friday” Then, on February 5, 2021, the Central Bank of Nigeria (CBN) announced that banks were banned from facilitating crypto transactions. “We call it Crypto Black Friday. It was chaos. I saw the circular online, just like everyone else. My phone blew up—customers panicking, partners shutting us off. Everyone was trying to withdraw funds at once, and our payment processors were shutting us down. It was the toughest day of my life,” Sodipo recounts. But it also began to yield some benefit. Major players in the sector congregated in a WhatsApp group and
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Digital Nomads: Roddiyyat Taiwo’s AI doctor wants to be a pan African triage tool
In Africa, the healthcare system is in tatters. Emergency response is slow, inaccessible, and inconsistent, and seeing a doctor is often a last resort, when the illness becomes unbearable. This is the world Roddiyyat Taiwo wants to change using an AI doctor. Taiwo is the co-founder of OpenHealth, a young Nigerian healthtech startup trying to make preventive healthcare accessible to young Africans. It’s a digital triage and AI-powered symptom-checking tool, built by a team of five teenagers who believe technology can bridge the healthcare gap for the continent’s underserved populations. Taiwo joins the call from her home in Abuja, Nigeria where she currently works as a business analyst for Cedar Crest, one of the city’s largest hospital chains. “Due to the nature of my work, I sit on so much data,” she said. “So I’m seeing in real-time how people access healthcare and where we are failing.” Taiwo’s dream is to digitise preventive healthcare by building what she calls an “AI doctor.” OpenHealth will accurately diagnose early symptoms after collecting data and interacting with the user. Afterward, the AI doctor recommends a next step which can include a visit to a human doctor, booking a lab test, or consulting with other appropriate care providers. Right now, OpenHealth currently lacks the existing partnerships with care providers to make this a full end-to-end product. The product stops at simply being a health concierge. 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 TC Scoop <!– Next Wave –> <!– Entering Tech –> Subscribe Breakaway wins The solution is not new; telemedicine startups are getting funded across Africa, and Taiwo, who sees the problem she’s solving as continent-wide, is acutely aware of this competition. Yet, she says her team has built something that is valuable to big healthcare providers, hospital chains, and individual users. With AbdulQuduus Ajibade, her co-founder, helming the technical side, OpenHealth can provide its technology as a subscription service, integrating with established healthtech platforms that don’t want to build an AI-enabled telemedicine service from scratch. The users’ health data is another useful asset as OpenHealth can benefit from revenue partnerships with healthcare firms on users it recommends after triage. The startup has previously partnered with Nigerian healthcare company, mDaaS Global, to integrate its application programming interface (API) into Beacon Health, a telemedicine service operated by mDaaS, in a three-month paid pilot. Barely two years old since ideation—one year since the product first went to market—OpenHealth has already shown promise in multiple ways. The startup has just over 1,000 people on its minimum viable product (MVP) waitlist, and operates on revenue generated from pilot tests alongside a modest $1,000 grant. But what’s most remarkable is how the team has made a name for itself through consistent participation in startup competitions. Alongside Ajibade, Taiwo has taken OpenHealth from a prototype to a growing product by tapping into incubators, pitch grants, and hackathons, where they’ve sold their OpenHealth dream in at least six competitions. “We got into Entrepreneurs of Tomorrow based on a recommendation. And even though I couldn’t travel to the US because my visa was denied, we still ended up being one of the top four finalists,” she says. “It was painful, but still a win.” Today, OpenHealth’s cap table is already taking shape. Taiwo and Ajibade retain major ownership of the business. Ten percent is allocated to early employees—each receiving 1.5% stock vested over five years—while another 10% goes to members of its advisory
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Behind the data drain: Why your internet bundle feels like it’s disappearing
In Nigeria, where mobile internet is expensive and essential, the claim that a telecom provider “stole my data” has become a common refrain. Scroll through local tech forums or listen to frustrated users on the street, and you’ll hear widespread complaints about vanishing data, even when phones appear idle. But while suspicions often point at operators like MTN and Airtel, the real culprit may be closer to home. The myth of vanishing data The perception that telcos—especially MTN, Nigeria’s largest telecom operator—are “stealing” data is widespread. And with Nigeria’s mobile data not cheap (₦3 per MB as of 2025), every megabyte counts. However, according to the Nigerian Communications Commission (NCC), most data depletion complaints stem from user behavior and device settings, rather than deliberate sabotage. The regulator said that the data usage experience is a function of location, network equipment, and users connected in a particular area. Faster networks, background app activity, automatic downloads, and video streaming habits are the primary culprits. “The higher the data speed, the quicker pages load-downlaods and uploads occur, and expectedly, the quicker internet bundles are exhausted,” the NCC said in an advisory. “So, as telecom consumers can use more devices in less time, some consumers’ devices and network service providers make it possible to limit data speed to help users manage data usage better.” How your data gets used Data consumption doesn’t only happen when you’re watching videos on YouTube or TikTok. Much of it happens quietly. Background apps sync data, check for notifications, and download updates. Meanwhile, platforms like Instagram, Facebook, and TikTok autoplay high-definition videos by default. On fast networks, these actions happen in seconds, without the user noticing. To illustrate: a 10-minute WhatsApp video call can use up to 150MB, costing ₦30.72 per MB. Watching a movie in 4K on Netflix on a 55-inch television can gulp up 17.5GB, consuming a large data bundle in just one sitting. Apps draining your data Many Nigerian users have between 60 and 90 apps installed on their smartphones, yet most apps are rarely used. However, a small group of data-heavy apps is responsible for most internet consumption. YouTube can consume up to 2.3GB per hour on high settings, TikTok up to 840MB per hour, Instagram over 700MB per hour during heavy video use, and Snapchat as much as 1.2GB per hour. Streaming content on smart TVs, especially in 4K resolution, is even more data-intensive, using between 7GB and 16GB per hour. For example, watching a 2 hours 30 minutes (2.5 hours) movie on Netflix using a 55-inch HD television would use around 3GB of internet data. For a 4K (Ultra HD) 55-inch television, you will need 17.50GB (at 7GB/hour) of internet data to watch the same 2.5-hour movie on Netflix. The higher the size and definition of the television, the more data you use. Game lovers are not left out. Digital games primarily consume large amounts of data during downloads or updates, ranging from a few gigabytes to over 100 GB. For example, downloading a title like Call of Duty can exceed 100 GB. However, once a game is fully downloaded and updated, it can often be played offline without using any additional internet data. To conserve data, players can disable automatic updates and choose to play in offline modes. While online multiplayer gaming does require an internet connection, it typically uses a modest amount of data, roughly 40 to 300 MB per hour. Other features, such as cloud saves (which store your game progress online) and trophy syncing (which updates your in-game achievements), consume minimal data. On the other hand, streaming games can be very data-intensive, using up to 15 GB per hour. Therefore, gamers concerned about data usage should be mindful of how they access and play their games. On average, mobile users globally consume 21.6GB/month, with over 75% spent on video and social media apps. Even basic browsing on Safari or Chrome can use up to 700MB/hour. So, unless you’re constantly monitoring what’s running—and how it runs—your data plan doesn’t stand a chance. “Why does my data last longer on WiFi?” Here’s a common question: if I stream the same YouTube video on mobile and WiFi, why does the data seem to drain faster on mobile? The short answer: it doesn’t. It’s the limit, not the speed. Most WiFi connections are unlimited or come with huge data caps, so users don’t notice consumption. Mobile data, however, is capped. Once you burn through your 5GB or 10GB, it’s gone, and the sting of purchasing another bundle makes it feel like your data was stolen. In reality, both mobile and WiFi consume data at the same pace for the same activity. But because mobile data is precious, every megabyte hurts. So, did MTN or Airtel “steal” your data? The answer is no. But your frustration is valid. Nigeria’s mobile data remains costly relative to incomes—the recent tariff increases have made it worse for subscribers—and the rapid pace of consumption, especially on faster networks, makes it feel like data is evaporating. Add to that auto-downloads, updates, and smart TVs streaming in full HD, and it’s easy to feel shortchanged. Still, users aren’t entirely helpless. How to make your data last longer If you want to avoid yelling at your screen in data rage, here are practical steps you can take: Turn off auto-play: On apps like Instagram, Facebook, and YouTube. Disable background data: Go to your phone’s data usage settings and restrict background access for apps you rarely use. Set app update limits: Configure your phone to update apps only over WiFi. Lower streaming quality: Drop YouTube, TikTok, or Netflix video quality to SD or 480p while on mobile data. Use data-saver modes: Many Android devices come with built-in data saver settings; turn them on. Uninstall or freeze unused apps: The fewer apps checking for updates, the less background data consumed. Monitor with data manager apps: Apps like GlassWire or your phone’s built-in data tracker can help you spot usage spikes. Use WiFi
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Twiga Foods halts Nairobi operations, considers new locations for distribution hub
Twiga Foods, one of Kenya’s most funded e-commerce startups, is temporarily suspending its Nairobi operations for two months as part of what the company calls “the final stage” of its ongoing business overhaul. The move follows months of internal restructuring, acquisitions, and layoffs to cut costs and shift to a leaner, more data-driven distribution strategy. In a statement on Thursday, Twiga said the operational break will allow it to relocate from its current distribution hub at Tatu City in Kiambu County—where it has been negotiating a new lease with the landlord—to a more strategically located facility closer to Nairobi. Twiga is weighing options in Baba Dogo, Mombasa Road, and Syokimau, the company told TechCabal. Twiga’s pause in its Nairobi operations is the latest indication of pressure from investors and market realities forcing it to recalibrate its once capital-intensive supply chain model. After acquiring local distributors Jumra, Sojpar, and Raisons, Twiga now manages eight distribution centres across Central, Coast, and Western Kenya, but is avoiding further infrastructure investment in the capital. The shift signals a move toward an asset-light approach, focused on centralising operations and leveraging technology to optimise inventory, cut transportation costs, and better serve small retailers. Despite raising over $180 million in funding over several funding rounds, Twiga’s business model has failed to prove scalable in the Kenyan market, according to three former employees who spoke with TechCabal. The former staffers, who requested anonymity to speak freely, said Twiga took too long to abandon its capital-heavy approach for an asset-light strategy focused on tech-enabled matchmaking between farmers, suppliers, and vendors, rather than owning logistics or inventory. “We were burning money trying to do everything, farming, warehousing, and deliveries,” said one of the ex-employees. The company told TechCabal on May 16 that it is realigning its operational structure due to shifting market demands. Kenya’s B2B food distribution depends heavily on a network of regional hubs and last-mile delivery to reach thousands of small retailers across urban and rural areas. Managing this complex supply chain requires balancing inventory, transportation costs, and timely deliveries, challenges that Twiga promised to address by centralising key functions and using more data-driven operations. The company still claims it is committed to this goal, saying better tech and data will help improve efficiency and keep prices down. Twiga believed in its original model of managing food distribution from farmers to urban retailers, expecting that complete control of the supply chain would eventually give it a competitive edge. That conviction, according to two other ex-employees, kept the company from making necessary strategic adjustments until 2025. One person with direct knowledge of Twiga’s operations told TechCabal that persistent losses stem from mismanagement in the logistics and supply chain departments. These problems have strained performance over time, leading to significant job cuts in those areas. “The supply chain department was mismanaged and cost Twiga a lot of money,” the person said, without disclosing how much Twiga was burning monthly at that time. Yet the repeated layoffs expose the tension between Twiga’s promises and its current reality. Cutting hundreds of supply chain roles undercuts its earlier vision of building a stronger, tech-powered distribution system and raises questions about how much of that work will now depend on third-party partners rather than Twiga’s teams. “The internal reorganisation impacts a certain number of roles, mainly within supply chain functions,” Twiga said in a statement to TechCabal. The statement confirms the authenticity of the leaked Project Easter document—which Twiga had not disputed—which showed that supply chain roles would suffer the most. The startup’s last major funding round was a $35 million convertible note in 2023, and insiders say investors have been pushing for tighter discipline on costs and operations. With the Nairobi pause, Twiga hopes that consolidating its infrastructure and enhancing its tech capabilities will provide it the stability it needs to regain its footing and remain relevant in Kenya’s retail market. Mark your calendars! Moonshot by TechCabal is back in Lagos on October 15–16! Join Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early bird tickets now 20% off—don’t snooze! moonshot.techcabal.com.
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Semicolon’s new partnership gives graduates two-year track to Computer Science degree
Semicolon, the Nigerian edtech that trains software engineers, has partnered with Nigeria’s first technical varsity, Abiola Ajimobi Technical University (“Tech-U”) in Oyo State, to introduce a credit transfer pathway that allows Semicolon alumni to gain an undergraduate degree in computer science in two years instead of four. The partnership gives Tech-U graduates access to Semicolon’s industry programs, and both institutions will co-develop curricula, train faculty, and explore new financing models to expand access to quality education. The alliance marks the latest in a series of collaborations between Nigerian edtech firms and tertiary institutions, as stakeholders strive to align educational offerings with the evolving demands of the workforce. Rival AltSchool Africa adopted a comparable strategy in 2021, partnering with Michael and Cecilia Ibru University to award diploma certificates to its graduates. “We are not here to replace universities,” said Sam Immanuel, CEO of Semicolon. “We’re here to complement them, to collaborate and amplify impact. We at Semicolon envision a future Africa that is home to a talented, thriving technology community; achieving this will require many different types of institutions working together.” This partnership comes at a critical time for Nigeria, where the demand for skilled technology professionals far outpaces the supply. Universities in the country have also struggled to produce industry-ready graduates due to archaic curricula. By integrating practical, hands-on training with formal academic credentials, Semicolon and Tech-U are following a global trend in countries like the United States, the United Kingdom, and India, where universities and tech organisations collaborate to bridge the gap between theory and practice. “There is a disconnect between what is taught in universities and the world of work,” said Prof. Adesola Ajayi, Vice-Chancellor of Tech-U. “The world does not just need workers as much as it needs innovators, problem-solvers, and leaders who can make a meaningful impact. This partnership aligns with the university’s motto of ‘Developing Brains, Training Hands.’” Founded by Sam and Ashley Immanuel in 2019, Semicolon has maintained close ties with the academic sector from its inception. Through its collaboration with Henley Business School at the University of Reading, Semicolon students have had access to business and entrepreneurship courses since 2019. The organisation has also previously worked with Lagos Business School. Semicolon graduates approximately 150 students annually, with roughly one-third lacking a tertiary degree, according to its COO Ashley Immanuel. She expects that some alumni will benefit from the new partnership immediately, while more are expected to pursue degrees as Semicolon expands its university collaborations. Mark your calendars! Moonshot by TechCabal is back in Lagos on October 15–16! Join Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early bird tickets now 20% off—don’t snooze! moonshot.techcabal.com.
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Pay up: Kenyan banks and digital lenders pursue loan defaulters with renewed vigour
Kenyan banks are intensifying loan recovery efforts as household debt stress deepens, signalling a hard turn from pandemic-era leniency. More than 30 lenders are now targeting overdue personal and household loans, a category flagged by the Central Bank of Kenya as the most likely to see more defaults this quarter. In its latest Credit Officer Survey, 33% of the 39 banks surveyed said they expect non-performing loans (NPLs) in the personal and household segment to rise between April and June 2025. That’s a sharper risk signal than in any other sector. The shift marks a new phase of credit tightening, driven not by weak liquidity but by risk-aversion and regulatory pressure to clean up loan books. Borrowers in the personal and household category are already feeling the pressure. At least five Equity Bank customers told TechCabal they’ve recently received calls from recovery agents demanding payment on overdue loans. One borrower admitted they hadn’t made any repayments for over a year. Though interest on the loan stopped accumulating after the 90-day window, as required under IFRS 9 rules, the debt remained on Equity’s books. Until May, Equity did not automatically deduct deposits from accounts with outstanding loan balances. That changed last month, according to one borrower who said they deposited a small amount that was used to regularise their loan. Other banks never paused automatic deductions, and continue to apply any new deposits toward overdue balances. For many, that means basic needs go unmet. Borrowers describe the mental strain of having to second-guess whether it’s safe to use their own bank accounts. Some have resorted to keeping cash or using other bank accounts altogether. The majority of Kenyans have at least two bank accounts in an effort to diversify their financial services. “I can’t save, I can’t plan. Any time I get paid, I lose part of it,” said another borrower who owes KES 12,000 on a loan taken in 2024. “Even when I want to repay in small bits, I don’t feel like I’m in control.” These deductions, often triggered without warning, make it harder for low-income families to manage tight budgets. The result is a slow erosion of trust between borrowers and their banks, and more people turning to informal channels just to stay afloat. 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With recovery teams now reactivated and debt collection agencies aggressively chasing defaulters, borrowers are learning that old loans have not been written off and won’t be ignored. While borrowers are expected to repay, few report receiving clear, detailed breakdowns of what they owe. Some do not know whether interest has been paused or whether partial payments will improve their credit standing. Even among banks that comply with accounting standards, a significant communication gap persists, as recovery efforts have been passed over to debt collection agencies. “I borrowed KES 20,000 in 2021. Any time I receive a call from a loan collection agent, they give me a conflicting figure,” a customer who borrowed from Equity told TechCabal. Digital lenders are also stepping up pressure as some are offering limited-time deals to clear overdue balances. At least five borrowers say they were offered the chance
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In a Gauteng township school, learning tablets raise hopes and questions
Since the 2000s, the South African government has pushed for universal ICT integration in education. In provinces like Gauteng, the government, through the Gauteng ICT and E-Education Strategy (2014), developed a comprehensive, multi-pillar approach to ICT deployment and e-learning in schools. Government investments and private partnerships sought to provide schools with infrastructure, devices such as learning tablets and computers, internet connectivity, and professional development for educators, to achieve its goal of preparing students for the Fourth Industrial Revolution. Still, many township schools, classed as quintile 1 schools—and which receive the most government funding and serve the most economically disadvantaged students—remain digitally excluded. Basic infrastructure, such as reliable electricity, internet access, and modern devices such as learning tablets and computer laboratories, are still lacking in these schools. According to Gauteng-based education activist, Henrick Makaneta, “poverty, lack of infrastructure, and limited digital literacy among teachers and learners” remain significant barriers to technology advancements in education. Just southeast of Gauteng, in Heidelberg, Ratanda Secondary School (Ratanda) is one of a few townships schools navigating these challenges as it introduces learning tablets into classroom activities. With a suite of applications and educational material, Ratanda’s administration believes that these learning tablets can help students and teachers overcome infrastructural deficits and be better equipped for the future of work. 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 TC Scoop <!– Next Wave –> <!– Entering Tech –> Subscribe The devices At Ratanda, the learning tablets are distributed one piece to two students. They come preloaded with educational apps such as KeyBlaze, Typing Tutor, Wikipedia, Encarta, and the Google Chrome browser. Each learner can access South Africa’s official Curriculum Assessment Policy Statements (CAPS), a comprehensive document pertaining to the learning and reporting processes for Grades R-12 subjects, through a digital application, “My Core CAPS”. Students also have access to a number of educational videos and quizzes pre-installed into the devices. Combined, these tools foster an interactive, tech-driven education, allowing students to explore subjects deeply, collaborate online, and develop critical twenty-first century skills. Morena Moloi, ICT Coordinator at Ratanda, explains that the motivation to adopt the learning tablets came from the Gauteng school district itself. “We took our guidance from the district, driven by the desire for learners to engage with the tools and resources provided for educational purposes,” he told TechCabal. The COVID-19 pandemic accelerated this adoption, highlighting the importance of digital access. “We positioned ourselves as thought leaders in this vision, recognising that we could make learning more enjoyable and accessible,” Moloi added. Beyond the need to prepare for the future, schools like Ratanda are also adopting digital and e-learning initiatives to address declining proficiency and higher drop-out rates in STEM subjects. In 2023, only 28,851 matriculants scored at least 60% in both mathematics and physical science, according to the Basic Education Department, and the percentage of matriculants writing mathematics dropped from 53% in 2008 to 38.5% in 2023. Lack of infrastructure and qualified educators often leave learners with shaky foundational skills in these subjects and discourage students from pursuing them at university level. “Given the education gap that exists due to inequality in the country, ICT is one of the fastest-growing sectors with a huge amount of innovation,” said Tshepo Nkopane, Johannesburg-based director of Envirocentral, a sustainability think tank. Tech adoption in classrooms across South Africa has witnessed a compound annual growth of 16% between 2020 and 2023, according to data from Gauteng-based research firm, Birguid. This growth has
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Tracking what we lose: Why West Africa should adopt smart tools to measure food loss and waste
In West Africa, where food insecurity remains an enduring challenge, the silent drain of food loss and waste (FLW) is often overlooked. From the sun-scorched farms of northern Nigeria to the bustling markets of Accra and Dakar, millions of tonnes of food vanish along the supply chain. Though poorly characterised, a significant percentage of food is produced and harvested but never consumed. This loss undermines livelihoods, worsens hunger, and contributes significantly to environmental degradation. Recent advancements in technology and innovation make it possible to move beyond anecdotes and accurately quantify FLW. With accurate data on the amount and rate of FLW, governments and organisations can design smarter, more targeted interventions to reduce FLW effectively. The promise of contemporary monitoring tools Mobile applications and digital platforms generate reliable, geo-tagged data directly from the field and can contribute to addressing long-standing data gaps. Examples such as FarmForce and AgroTrack are already empowering farmers, aggregators, processors, and other relevant stakeholders in other parts of the world to record food losses in real time. Remote sensing technologies such as drones and satellite imagery provide macro-level visibility and can complement ground-level insights. They can detect crop losses caused by floods, pests, or droughts, and thus enable governments, development agencies, and other relevant stakeholders to identify seasonal loss patterns and design early warning systems to mitigate risks. Additionally, blockchain and AI-driven traceability systems, which capture or document every step of the chain with precision and accountability, can improve transparency along food supply chains in West Africa by enabling tamper-proof tracking from farm to market. For perishable goods like tomatoes, fish, and grains, which are often lost due to poor handling or storage, these tools can pinpoint exactly where, how, and why losses occur, allowing for targeted interventions. To ensure consistency and comparability, stakeholders should consider and incorporate standardised protocols such as the FAO’s Food Loss Assessment Methodologies and the World Resources Institute’s FLW Standard, which provide structured frameworks for documenting losses. Meanwhile, real-time market information systems, such as eSoko and mFarm, are helping to monitor gluts and price crashes that often contribute to waste. When integrated with AI, these platforms can predict surpluses and recommend timely interventions, such as improved storage or redistribution strategies. On the consumer end, innovative tools like sensors, smart bins, and digital weighing systems can be piloted in urban centers to track waste from supermarkets, restaurants, and households. Available evidence indicates that these data streams uncover behavioral patterns that traditional surveys might miss, and can therefore offer a more nuanced understanding of food waste dynamics in different regions. The opportunities: Why now is the time The capacity to pinpoint exactly where food is lost can keep more food in the system and significantly boost food security. Contemporary digital monitoring tools can also translate into or create novel work roles, such as drone operators, data analysts, and supply chain specialists. Widespread adoption may therefore provide opportunities for job creation and digital upskilling. Moreover, the ability to document FLW with reliable data strengthens the region’s position to attract competitive climate finance and investments. For instance, well-documented, reliable data can better position many West African countries to access competitive funds to reduce emissions and build sustainable food systems. Accurate data also enables countries to quantify the environmental impact of food loss, including embedded greenhouse gas emissions. This can strengthen the case for climate-smart interventions and significantly help West Africa reduce its food production-associated ecological footprint. On a broader scale, shared standards and cross-border data flows can foster regional cooperation and allow ECOWAS states to harmonise policies, optimise storage infrastructure, and minimise transboundary trade losses. This collaborative approach can, in addition to enhancing food security, also strengthen economic ties and trade efficiency across the region. The challenges: Why getting there won’t be easy Despite the immense potential benefits, scaling these innovative tools across West Africa is potentially fraught, and several significant hurdles must be addressed to unlock their full potential. One of the most pressing challenges is the gap in digital infrastructure, particularly in rural areas where post-harvest losses are often rife. Many of these regions lack reliable internet connectivity, consistent electricity, or the digital literacy needed to operate advanced tools effectively. Additionally, the high initial costs of technologies like blockchain, drones, and AI systems are a barrier to widespread adoption, making strong public-private partnerships and donor support essential to bridge the financial gap. Even where data is collected, it is reasonable to anticipate issues of fragmentation and trust. Data collection and management are often siloed or unreliable, and farmers, traders, and other relevant stakeholders may hesitate to share sensitive information due to mistrust or fears of resultant regulation, such as increased taxation. Furthermore, while countries may adopt standardised FLW measurement protocols, enforcement remains weak. Without clear incentives or penalties, data collection efforts can often be inconsistent or half-hearted. In any case, fundamental infrastructural deficits, such as poor food storage and transport infrastructure, are still a problem and must be addressed. Cultural and behavioral barriers are another potentially significant deterrent. In many markets and households, food waste is either normalised or covert, and shifting these deeply ingrained attitudes, particularly in contexts where waste is seen as a sign of abundance, will require time, education, and targeted awareness campaigns. Addressing these challenges will, however, be critical to ensuring that the region can fully harness the potential of these tools to reduce FLW, enhance food security, and build more sustainable food systems. Measuring is the first step to fixing For too long, West Africa’s FLW have remained poorly measured, inadequately documented, and largely ignored. Yet, we cannot fix what we do not measure. Emerging, contemporary digital and scientific tools can remedy this trend. With smart investments, regional cooperation, and a sufficiently strong political will, West Africa can exploit advancements in data science to make its food systems more resilient, efficient, and equitable. The stakes are high, but so is the potential. In a region hungry for progress, measuring the food we lose may be the most powerful step toward feeding our future. ________
Read MoreA new U.S.-Nigeria trade deal could unlock more investment for Nigerian startups
A new U.S.-Nigeria trade agreement may offer a lifeline to the country’s startup ecosystem amid a global funding slowdown. Signed in July 2024, the U.S.-Nigeria Commercial and Investment Partnership (CIP) aims to remove regulatory barriers, promote private investment, and open access to American venture capital, critical support for Nigeria’s tech sector. “The CIP process puts government and business in the same room to remove obstacles to trade,” said U.S. Ambassador to Nigeria Richard M. Mills during a fireside chat at Lagos Business School on Thursday. “I firmly believe that working together to advance our shared economic interests will create jobs, boost innovation, and unlock new opportunities on both sides of the Atlantic.” At the heart of the five-year agreement is a renewed commitment to deepen access to U.S. capital markets, valued at over $120 trillion, and expand the already significant flow of venture funding to Nigerian startups. About 60% of Nigerian startups are incorporated in the U.S. In 2024, Nigerian startups raised $410 million in funding, a 17% increase from the $398.2 million recorded in 2023, according to Africa: The Big Deal. The slowdown reflects global market uncertainty and local pain points—regulatory instability, currency volatility, and high operating costs. The CIP, formalised by Nigeria’s Minister of Industry, Trade, and Investment Doris Uzoka-Anite and U.S. Secretary of Commerce Gina Raimondo at the 2024 AGOA Forum in Washington, D.C., is designed to reverse that trend and help position Nigeria as a viable launchpad for digital innovation. Discussions to activate the partnership will begin in Abuja this July, according to Mills. The deal introduces sector-specific working groups focused on technology, agriculture, and infrastructure. These teams, composed of U.S. and Nigerian stakeholders, will identify non-tariff barriers, regulatory friction, and opportunities to streamline investment processes. “The three working groups will take a hard look at each sector’s regulatory challenges,” said Mills. “Both governments will listen and learn from these private sector actors on what concrete steps can be taken.” Equally important are programs like SelectUSA and “Networking with the USA,” which offer Nigerian startups access to U.S. accelerators, enterprise partners, and funding networks. These platforms are expected to enhance product scaling, global market access, and knowledge transfer. This kind of synergy has already paid dividends. Startups like Flutterwave, Andela, and Esusu—all founded by Nigerians educated in the U.S.—are now global players. Mills cited these companies as examples of the deep people-to-people ties that underpin U.S.-Nigeria relations. More than 20,000 Nigerian students currently study in the U.S.—the largest African student population and the seventh largest globally. Over 750,000 Nigerians live in the U.S., forming the largest African diaspora group. For startups, these connections translate into access to mentorship, cross-border talent, and invaluable soft infrastructure. Yet, the evolving U.S. trade posture isn’t without complexity. While tech startups are generally insulated from direct trade tariffs, being service-based and not reliant on exports, the recent 14% tariffs imposed on Nigerian non-oil exports could indirectly affect the sector. A decline in foreign exchange earnings could weaken the naira further, inflating the cost of imported hardware, cloud services, and other critical inputs. “There is still a sense among U.S. businesses that Nigeria is a risky place to do business,” Mills noted. “It behoves the Nigerian diaspora who are extremely successful to tell that story.” Moreover, tariff-related uncertainty may prompt some U.S. investors to adopt a more cautious, wait-and-see approach. Mills clarified, however, that the intent behind U.S. trade measures is to promote reciprocity, not punishment. “Tariffs are not designed to be punitive,” he said. “What is being hoped for is a response from trading partners to get tariffs back on an equal framework.” For now, the tech ecosystem remains relatively shielded. However, the CIP’s long-term value lies in its structural focus: reducing red tape, encouraging infrastructure development, and enabling private-sector innovation. Nigeria remains one of only five African countries with a CIP agreement, clear evidence that Washington sees it as a long-term partner in digital innovation. If implemented well, the agreement could leverage Nigeria’s youthful population, vibrant diaspora, and entrepreneurial drive. “Nigeria is the world’s present and future,” Mills said. And with the CIP in motion, that future could be closer than it once seemed.
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