👨🏿🚀TechCabal Daily – PalmPay in talks to raise up to $100M
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! Let’s get into today’s dispatch! PalmPay in talks to raise up to $100 million Kenya’s tax net widens, moves to scrap ESCOP tax breaks The dollarisation squeeze, and how founders are hitting back Funding Tracker World Wide Web 3 Opportunities Fintech PalmPay in talks to raise up to $100 million Image Source: Zikoko Memes PalmPay is in talks to raise between $50 million and $100 million in a Series B funding round, according to TechCrunch. It’s unclear how much the company is currently worth, but back in 2021, it was already considered almost a unicorn (meaning nearly worth $1 billion). For the curious (or confused): A Series B funding round is the second stage of significant venture capital financing for a startup company. It means this isn’t their first funding round. They’ve had a successful Seed and Series A funding round. Palmpay has raised $140 million across these funding rounds led by big-name investors like Transsion (the company behind Techno and Infinix phones) and MediaTek). And now, they are hoping to get a larger sum of money to grow further. What will the money be used for? The company declined to comment on the specifics of its fundraising. However, the new capital will fuel PalmPay’s deeper expansion into Nigeria, grow its newer products, and enter new markets across Africa and Asia. This new capital will also fuel PalmPay’s intended expansion to South Africa, Côte d’Ivoire, Uganda, and Tanzania, building on momentum from processing 15 million daily transactions during the first quarter. The expansion will bring PalmPay’s footprint to six African countries, following earlier launches in Ghana and Kenya. The company, which has 35 million registered users, is now profitable. If this funding round is successful, PalmPay will be pulling further ahead in the fintech race. PalmPay wants to be the platform across payments, credit, and mobile banking on a continental and global stage. For competitors like OPay, Moniepoint, and FairMoney, it raises the bar on speed, scale, and staying power. In a space where some players are still burning cash, PalmPay’s momentum and profitability put it in a different weight class. Join Fincra for an Exclusive Side Event at Money20/20 Europe Fincra is co-hosting “Stablecoins & The Future of Payments” at Money20/20 Europe with Utila, Rail, Wirex & more. Join fintech leaders for insightful panels & networking. Limited spots – RSVP here. 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If passed, employees will have to pay income tax within 30 days of receiving shares whether or not those shares can be sold. That’s a big shift from the current rule (introduced in 2023), which lets workers defer tax until they sell, leave, or hit a five-year mark. Employee Stock Ownership Plans (ESOPs) are shares that startups give employees instead of, or in addition to cash as part of their pay. Why is this a big deal? This move effectively deflects one of the few
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How Nigerian founders are de-dollarising their startups
It used to be simple. You built something people wanted, got investments to buy the tools you need and create the team you need to scale exponentially—maybe a few smart hires from abroad. The tech ecosystem was flush with cash and hope for startups and their technology, so the numbers worked. Until 2023, the numbers stopped working for startups in Nigeria; the naira value has depreciated against the dollar. This eroded growth: revenue, despite growing exponentially in naira, regressed in dollar terms, while expenses have ballooned. To keep their businesses going, founders are changing their strategies and finding ways to make fewer dollar expenses, and. generally, spend less money on their day-to-day operations. On Friday, April 30, TechCabal, in partnership with CloudPlexo, an AWS service provider, hosted a salon-style discussion well-attended by founders and executives from notable companies, including Piggyvest, Kuda, Sycamore, GetEquity, PaidHR, Moniepoint, and more. We gathered Africa’s brightest minds to share how they are cutting costs in their startups. Fireside chat with Deji Olowe The event was headlined by Deji Olowe, founder of Lendsqr, a B2B startup providing infrastructure for digital lenders and board chairman at Stripe-owned Paystack. In an intimate chat with Fu’ad Lawal, Editor-in-Chief of TechCabal, he shared his perspective on major cost centres and efforts to keep expenses reined in. He explained switching to open-source tools that allow his team to communicate for free instead of using platforms like Slack that charge as much as $12 per employee. “It is not the software that makes employees accountable to respond to messages,” he quipped. Deji Olowe on the fireside chat at the TechCabal Ecosystem Mixer. Acknowledging that employees are the biggest cost centres, Olowe advocated for prioritising local hires at all levels. He noted that hires from Silicon Valley for C-suite roles bring little to no unique expertise that local employees or ecosystem operators lack. He went a step further to assert that he knows no foreign executive whose work has measured up to the pay. Olowe also encourages training local talent, as banks do, accepting possible churn as a trade-off for lower costs and building ecosystem skills. Olowe, himself a banker for over a decade and previously an executive at banks like Access Bank, urged startups to create local training initiatives within their companies, cutting costs and boosting growth. Babatunde Akin Moses, founder of Sycamore. He urged them to collaborate despite competition, like banks, forming consortia to share resources or push initiatives that solve hard problems for everyone in the ecosystem. Founders related to his measures, some sharing how they have approached reducing costs by checking for costs due to latency, and also employing a mix of on-premises storage and cloud storage. Some noted that they train their employees. The engaging 40-minute chat concluded with an open feedback session where founders provided valuable input on TechCabal’s role in the tech ecosystem. Suggestions included the revival of the “Entering Tech” flagship series, features on startup office environments to showcase internal team dynamics, and more product-focused articles detailing new launches and updates. The event was complemented by great drinks and just networking. 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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Green Flare turns Nigeria’s waste gas into crypto mining power in $1 billion opportunity
In Nigeria’s oil-rich Delta region, a new startup is turning a decades-old environmental problem into a digital opportunity. Green Flare Holdings, a climate-tech infrastructure company, will convert flares—gas emissions from oil fields usually burned into the atmosphere—into electricity for data centers. The plan? Start with Bitcoin mining, and scale to powering artificial intelligence (AI) and high-performance compute. “What we’ve come up with is a really first-of-its-kind approach,” said Charles Majomi, co-founder of Green Flare. “We’re taking gas that is normally flared—associated gas—and turning it into power to drive data centers that mine Bitcoin at scale in the heart of the Niger Delta.” Bitcoin mining is the process of verifying and recording transactions on the Bitcoin network by solving complex cryptographic puzzles, which secures the blockchain and releases new bitcoins as a reward for miners. This process requires vast computational power and, as a result, consumes significant amounts of energy. Traditionally, mining operations rely on electricity from the grid, but flare gas—a byproduct of oil extraction that is often burned off as waste due to a lack of pipelines or commercial uses—offers a novel alternative. Instead of allowing this gas to go to waste or pollute the atmosphere, Green Flare partners with upstream oil and gas producers to capture it, converts it into electricity using mobile gas generators, and uses that energy to power Bitcoin mining servers directly on-site. A $1 billion opportunity buried in Nigeria’s waste gas Flare gas has long symbolised Nigeria’s environmental challenges and energy paradox. The country flares up to 1 billion standard cubic feet of gas daily, enough to generate between 5 and 9 gigawatts of power, dwarfing the country’s actual on-grid output. Oil and gas companies in Nigeria flared gas worth $485.3 million in the first half of 2023. “The waste is astronomical,” said Green Flare’s co-founder and CFO, Joseph Lassen. “If we commercialise even 5% of Nigeria’s flares, we’re looking at a billion-dollar opportunity. Scale that, and it’s tens of billions.” The company is building three sites in Delta State with a combined potential capacity of 53 megawatts. It’ll start with Bitcoin mining, which is easier to deploy and monetise, then scale to more intensive compute workloads like AI and cloud services. It’s a model pioneered in the US by companies like Crusoe Energy, Marathon Digital, and Giga Energy, but Green Flare says Nigeria has even more to gain. “We are transforming wasted energy into productive assets, reducing emissions, and proving that Nigeria can lead Africa in clean, distributed computing,” said Adeoye Fadeyibi, CEO of Green Flare Holdings. Bitcoin mining is just the first step. With cheap, off-grid power secured, the company wants to expand into AI and machine learning infrastructure. “This is Nigeria’s chance to become a solution to the global computing resource shortage,” said Barbara Ijayi, Founding Partner at Unicorn Growth Capital and one of Green Flare’s investors. “Whether it’s Bitcoin, AI, or cloud, the world doesn’t have enough compute. This puts Nigeria on the map.” It’s not just a crypto play; it’s a climate one too. According to Lassen, capturing and combusting flare gas reduces carbon emissions by up to 45% and slashes methane leaks, one of the most potent greenhouse gases. Bitcoin mining is lightly regulated in Nigeria, compared to traditional crypto exchanges. “It’s an offshore opportunity,” said Ijayi. “It’s like selling oil and getting dollars. It’s not a central bank issue.” Still, the business model hinges on continued access to cheap gas and stable macroeconomic conditions. Any change in flare gas rights or new taxes could tilt the economics. But for now, Green Flare is betting that stranded energy and high computing demand—especially for Bitcoin, which recently crossed $100,000—will sustain its margins. “Our cost per Bitcoin will be about 25% of the competition—somewhere between $5,000 to $12,000 depending on energy prices,” said Lassen. “Even if Bitcoin prices drop by 50%, which we don’t see more than maybe once every five years, we would still be highly profitable.” Green Flare says its dual-revenue approach—Bitcoin mining and future AI compute contracts with hyperscalers like Amazon or Google—offers a hedge against crypto volatility. And with 90% of the world’s computing needs forecast to come from AI and edge computing by 2030, the startup believes it’s well-positioned for the next wave of digital demand. Africa contributes only 3% to the global Bitcoin mining hash rate. Crypto, compute, and community While the pitch to investors is about climate, compute, and crypto economics, Green Flare says it is focused on community impact. According to Majomi, the company has already signed memoranda of understanding with its host communities in line with the requirements of Nigeria’s Petroleum Industry Act (PIA) and the Host Community Development Trust provisions. These agreements ensure that local residents are meaningfully included in the flare-gas-to-Bitcoin mining operation from the ground up. “We will give special consideration to community members, [in the] unskilled category,” he said, noting that much of the early-stage work—such as land clearing and site preparation—will be done by locals. “And then secondly, there’s the skilled labour requirement. Obviously, as skilled labour becomes more available, we would prioritize bringing and training members from the community.” The company also plans to power a distance learning program using electricity from its mining operations to train local talent in technology, math, and science. “One of the functions of our electrification agenda with the local community is to provide distance learning facilities that will be powered up from our site, and through this kind of distance learning program, incorporate them into the business itself. So that the technology transfer aspect fully, fully impacts the community.” Beyond education and jobs, Majomi says Bitcoin mining infrastructure can catalyse rural electrification in ways traditional grid expansion has failed to achieve. “Bitcoin mining actually, because it’s only dependent on cheap energy, means that you can bring power infrastructure to areas of the interior and then the hinterland that would never have seen power for decades, or even never,” he explained. “We’re seeing how Bitcoin and rural electrification have this
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No Nigerian YouTuber can replicate MrBeast’s success. Here’s why
With 400 million subscribers, American YouTuber Jimmy Donaldson, popularly known as MrBeast, is the highest-paid in the world. His YouTube channel, built on viral stunts and hair-raising challenge videos, has turned millions of views into a billion dollar media empire. But this story isn’t about MrBeast. It’s about why that level of success is far more complicated and nearly impossible for a Nigerian YouTuber. Show me the Naira: How much do Nigerian YouTubers make? In 2020, travel and lifestyle YouTuber Tayo Aina, according to a Fast Company article, admitted to making around $132 for a video that garnered over 1,100,000 views on his channel. That’s not a typo. Aina’s $132 payout was “significantly less than a creator with a predominantly Western audience would have received for the same performance metrics,” the article noted, pointing to the platform’s preference for Western audiences over those from Africa. YouTube creators with a Western audience would likely earn 10x Aina’s amount (you would see this later in the article, as Aina explains) for similar performance metrics. The reason? Ad rates on YouTube are not created equal, and Nigerian creators are on the short end of the stick. Even with these disparities, Nigeria still boasts a few high-performing YouTube channels leading the country’s local earnings chart. In August 2024, Pastor Jerry Eze’s YouTube channel, was listed as Nigeria’s top-earning (earning ₦7 billion or $4.7 million from 2014 to 2024) YouTube channel, according to data sourced from Playboard (a YouTube analytics website) and reported by both Punch and Premium Times. By March 2025, Pulse reported that Eze was racking up ₦7 million daily, keeping him at the top of Nigeria’s YouTube earnings chart. The figures make it easy to assume that more views mean more money for Nigerian YouTubers, but YouTube math does not work this way. Views pay, not subscribers The way YouTube pays is through CPM (cost per mille, or, simply put, cost per thousand views). “YouTube does not pay for subscribers or comments, only for views,” Nigerian YouTuber Omokha Sandra clarified in a 2024 YouTube video. But not all CPMs are equal. Nigerian views don’t pay as much as Western ones. The reason is largely economic: advertisers in the US, UK, or Australia pay more to target viewers, which boosts the CPMs for YouTube creators in those markets. A recent 2025 article on the top 10 countries with the highest YouTube CPMs listed the US, Australia, and Norway at the top. Nigeria did not make the list. Aina once put it bluntly: In Nigeria, CPM can be as low as $1 per 1,000 views while in the US, it can hit $10 for the same number of views. This means, as I wrote earlier, that a Nigerian creator needs ten times more views than a US creator to earn the same amount of money. Of course, “Nigerian” here is semantics: a Nigerian living in Nigeria with a predominantly Nigerian audience. A Nigerian in, say, Canada with a western audience would not worry about low earnings. Numbers aren’t everything According to Statista, Nigeria had 5.3 million YouTube users in 2021, and that number is projected to hit 12 million by the end of 2025. Yet, as of July 2024, Nigeria’s population stood at around 229.5 million people. There’s still a long way to go in terms of internet penetration and content monetisation, but you can not ignore the fact that the low earnings on Nigerian YouTube channels are not a number-of-views problem. A 2025 Business Day article reports that YouTube’s watch time in Nigeria has grown by over 50% in the last year, and that over 1,800,000 Nigerians now watch YouTube via connected Televisions. This surge in viewership reflects a broader trend in the continent’s booming creator economy. The African Creator Economy valued at $5.10 billion in 2025, is projected to reach $29.84 billion by 2032. In Nigeria alone, the sector is worth over ₦50 billion ($33 million). This further proves that the audience exists and is still expanding. This expansion might account for the fact that in 2024 alone, the number of Nigerian YouTube channels earning between ₦10 million and ₦100 million ($6,700 to $66,000) doubled. Now that you have the numbers, let us get into the mechanics of how Nigerian YouTubers earn and compete with the other 113.9 million YouTube channels that exist worldwide. How does a Nigerian YouTuber make money? YouTube monetisation works the same in Nigeria as elsewhere, at least in theory. To earn from the YouTube Partner Program which allows creators to monetise their content, you need at least 1,000 subscribers and 4,000 watch hours in a 12 month period (or 10 million YouTube Shorts views in the past 90 days). From there, YouTubers (whether or not they are part of the partner program) get paid through the AdSense program , which allows creators to earn revenue from ads displayed on their videos. This program is straightforward: Link your channel to an AdSense account, and begin earning a share of ad revenue generated by each content. Beyond ad revenue, a Nigerian YouTuber has access to other monetisation streams such as channel memberships (though this requires 30,000 subscribers in Nigeria, vs. lower thresholds elsewhere), Super Chats (allows viewers to pay to pin a comment on live streams. This accounts for the bulk of Eze’s earnings), and YouTube Premium revenue (creators earn a share of the revenue from YouTube Premium subscribers who watch their videos.). Earnings also come from affiliate marketing and brand sponsorships or deals, both of which allow creators to earn directly from brands. These YouTube earning options do not come without their challenges. More often than not, payment infrastructure in Nigeria makes it difficult to receive earnings in dollars, access fan donations, or set up merchandise stores. In contrast, western creators enjoy seamless payouts, direct integration with banks, and a broader pool of sponsors with deeper pockets. Beyond YouTube: The hustle is diversified Because AdSense earnings alone aren’t enough, Nigerian YouTubers diversify. Some build content for the
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Why Nigeria’s 5G adoption is stuck below 3% three years after launch
When 5G launched in Nigeria in September 2022, it came with bold promises: ultrafast speeds, low latency, and a leap toward smart city innovation. But nearly three years on, the momentum has slowed. As of April 2025, only 2.81% of mobile subscribers—fewer than 4 million people—are using 5G, falling far short of expectations. The rollout has been bogged down by high infrastructure costs, low device adoption, and weak consumer demand, casting doubt over the technology’s near-term impact in Africa’s largest telecom market. A major roadblock is Nigeria’s challenging economic climate. Inflation, currency devaluation, and soaring energy prices have sharply increased operating costs for telecom operators. According to the Nigerian Communications Commission (NCC), industry-wide expenses surged by 50.92% in 2023 alone—from ₦2.09 trillion in 2022 to ₦3.16 trillion—driven by pricier diesel, rising security costs, and expensive imported equipment. The naira’s depreciation by over 220% between 2021 and 2024 has only deepened the financial strain. This sluggish progress in 5G deployment is holding back Nigeria’s digital ambitions at a time when fast, stable internet is critical for sectors like fintech, e-learning, and remote work. With millions still relying on overburdened 4G and unreliable 3G networks, many users, especially in underserved areas, are turning to high-cost alternatives like Starlink. While expensive, Starlink offers consistent, high-speed access, highlighting growing dissatisfaction with local networks and putting added pressure on operators to deliver on 5G’s promise. “It is probably an indication that consumers haven’t outstripped the capacity of 4G base stations,” said Ladi Okuneye, CEO of UniCloud Africa, a cloud infrastructure provider. “Migrating to new technology is expensive, especially when the existing network still serves user needs. Operators are likely trying to recover 4G investments before diving deeper into 5G.” Telecom giants like MTN have borne the brunt of this cost pressure. In 2024, MTN Nigeria’s operating expenses jumped 76.6% year-on-year to ₦1.52 trillion. Across the sector, costs have risen by more than 300% in just two years, with energy remaining the biggest burden. Most telecom infrastructure runs on diesel-powered generators due to poor grid reliability. And with most network equipment priced in dollars, while revenue is earned in naira, telecom operators face a widening financial mismatch—one that continues to stall the 5G rollout. A tale of three operators: MTN, Airtel, and Mafab Of the three operators licensed to launch 5G services, only MTN and Airtel have achieved tangible milestones. MTN launched its commercial 5G services in September 2022, quickly expanding across major cities including Lagos, Abuja, Port Harcourt, Kano, and Maiduguri. Its rollout was backed by strategic investment and partnerships, notably with Ericsson, which provided network infrastructure and technical support. As of early 2025, MTN has over 2100 active 5G sites across 13 cities. During MTN Nigeria’s Q1 2025 report release, Karl Toriola, the company’s CEO, explained that expansion was stalled. “Our 4G network coverage expanded to 82.7% of the population (up 0.2pp), while 5G coverage remained stable at 12.7%, as we prioritised enhancing capacity over broadening coverage during the period,” Toriola said. MTN also proritised the rollout of its Fibre-to-the-Home (FTTH) or MTN home broadband service, which also taps its 5G fixed wireless access. 5G Fixed Wireless Access (FWA) is a way to deliver high-speed internet to homes and businesses using 5G wireless technology instead of traditional fixed-line infrastructure like fiber optics or copper cables. Airtel Nigeria, which secured its 5G license in January 2023, launched services in Lagos, Ogun, Abuja, and Rivers states, deploying more than 200 5G sites. The company has pledged to double its capital expenditure in 2025 to accelerate its rollout, particularly in rural and underserved areas. In contrast, Mafab Communications has failed to deploy a single operational 5G site despite being awarded a license alongside MTN in 2021. The company has struggled with several setbacks, including delays in obtaining a Unified Access Service License (UASL), a lack of telecom infrastructure, and difficulties securing investment due to Nigeria’s ongoing foreign exchange challenges. Although Mafab held a public launch event in January 2023, it has repeatedly missed deadlines and has yet to fulfill its commitment to roll out 102 5G sites in Abuja and Kano. So far, only MTN Nigeria has met the NCC launch requirement, which mandates that licensees begin commercial operations within the first year. According to NCC guidelines, 5G deployment in Nigeria follows a 10-year phased rollout strategy. In the first two years, operators are expected to launch services in at least one state in each of Nigeria’s six geopolitical zones. This must be followed by expansion into six additional states between the third and fifth years. From the sixth to the tenth year, operators are required to achieve nationwide coverage. While commercial rollouts have begun in key cities and state capitals, further expansion will depend on infrastructure availability, market demand, and broader economic conditions. Why 5G is stalling The importance of 5G extends far beyond faster mobile downloads. In theory, it could support next-gen solutions like telemedicine, autonomous transport, smart agriculture, and remote learning. For a country like Nigeria, home to over 200 million people, a growing tech ecosystem, and chronic infrastructure deficits, 5G promises both economic transformation and digital inclusion. But that promise is colliding with the harsh reality of Nigeria’s telecom environment. High operating costs are the most immediate challenge. The importation of 5G equipment is costly and vulnerable to currency fluctuations, while network deployment requires dense fiber optic backhaul, expensive tower upgrades, and massive power consumption. At a time when energy costs are soaring and the naira remains volatile, telecom operators are grappling with unsustainable capital expenditure. Spectrum challenges add to the bottleneck. Although the NCC has auctioned frequencies in the 3.5GHz band, many of the optimal bands for 5G remain tied up in legacy services like TV and satellite broadcasting. Fragmented assignments and high spectrum fees have delayed expansion, while regulatory processes remain slow and inconsistent. Then there’s the consumer angle. The average Nigerian subscriber is still transitioning from 3G to 4G, and 5G-compatible devices are largely unaffordable for most. With entry-level
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After service suspension, Starlink faces high-stakes push for South Africa licence
Starlink has decided to play by the rules and cut off its service for South African users who accessed its broadband through international roaming plans. The move follows a clampdown by the Independent Communications Authority of South Africa (ICASA), which has intensified its enforcement against unauthorised use, ordering distributors like ICASAsePush to halt operations and warning users that accessing the service without a licence is illegal. For over two years, some South Africans have relied on Starlink’s Roam Unlimited and Global Roaming packages as a workaround to the absence of official local support. Over the past weekend, however, users received notifications that their connections had been terminated because South Africa is not an approved territory for Starlink. The company instructed affected customers to either cancel their service or use it in a country where Starlink is officially licenced. Despite the move to halt its services, to formally enter the South African market, Starlink still needs to engage proactively with ICASA to secure a local licence and comply with whatever empowerment framework is adopted. However, recent regulatory changes hint that the situation could shift. Communications Minister Solly Malatsi mandated ICASA to investigate the issuance of new individual electronic communications network services (I-ECNS) licences, potentially ending a 15-year licensing freeze that has stalled market entry for new players like Starlink. ICASA has six months to complete its review, assessing whether new licenses could enhance competition, expand connectivity, and balance regulatory concerns. When the investigation is completed, Starlink stands to benefit from getting a license even though the timelines are uncertain, and delays beyond six months are possible. ICASA did not respond to a request for comments. The Black empowerment regulation, which has long been a barrier to Starlink’s entry into South Africa, now shows promise for reform. A draft policy directive issued by Malatsi in May suggests that foreign companies like Starlink could meet empowerment requirements through equity equivalent investment programs instead of direct ownership. Some experts argue that the timing of the policy release is particularly controversial due to broader political dynamics between the U.S. and South Africa. “The entry of Starlink to be direct is very controversial since the SA/USA dilemma, it seemed to be undermining the ICT working protocol when looking at it at a birdview politics,” said Noah Fakude, power systems and energy analyst at City of Tshwane. Noma-Gcina Mtshontshi, the director of Mtshontshi Attorneys Inc., noted that the Black empowerment law allows multinational companies to fulfill their empowerment obligations through Equity Equivalent contributions rather than direct shareholding. These contributions can take the form of investments in public programs approved by the government, such as skills development and infrastructure projects. She agrees with Malatsi that this framework has long existed as an alternative to traditional ownership and has been successfully used by companies like IBM, Amazon, and Microsoft, meaning foreign firms like SpaceX can gain equity points by investing in initiatives that benefit black South Africans instead of selling shares. Fakude noted that “the international ICT companies in South Africa are compliant, and more especially with ICASA. If a company like Starlink is not even recognised by our trusted structures, then I would take that as undermining the Sovereignty.” However, while the Equity Equivalent approach would work for Starlink, Mtshontsi noted that South Africa’s telecommunications law still “requires any applicant for an electronic communications license to have a minimum of 30% ownership from a historically disadvantaged group. That is, even if Starlink complies via equity equivalent on the Black empowerment Act side, they would still be required to comply in terms of the Telecommunications Act.” “Allowing Starlink to bypass the processes coming through the back door and then later endorse it will set a very bad precedent,” said Fakude. For Starlink, the path to its entry in South Africa hangs on how ICASA and policymakers finalise regulations. While there is a ray of hope for Starlink’s entry, the suspension of its services is a blow to users who depended on its reliable, high-speed internet, especially in areas where the network is unreliable. “Starlink is the kind of technology that will accelerate inclusion in poor communities where LTE and 4G/5G internet infrastructure is lacking,” Fakude said. “However, every technology must take into cognisance the sociopolitical aspect of every country, not to seem undermining the sovereignty of a country.” 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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Kenya to scrap tax breaks on startup employee stock options in 2025 Finance Bill
Kenya is proposing to scrap tax breaks on employee stock ownership plans (ESOPs) for early-stage startups, a move that risks gutting one of the few incentives left to attract talent in a sector struggling to raise capital and make payroll. Under the Finance Bill 2025 proposal, the government wants to remove a provision allowing employees at eligible startups to defer taxes on stock received in place of salary. If passed, the change would force workers to pay income tax within 30 days of receiving shares, regardless of whether those shares can be sold. For early-stage startups, where liquidity is rare and valuations are often speculative, the change amounts to taxing promise, not profit. “Where an employee is offered company shares in lieu of cash emoluments by an eligible startup, the taxation of the benefit from the shares allocated to that person by virtue of employment shall be deferred and taxed within thirty days,” reads part of the proposal. Taxing stock options on conversion, rather than at sale or liquidity event, may also deter skilled workers from joining risky early-stage ventures, opting for more stable jobs in traditional sectors. That could slow the flow of talent into the tech ecosystem at a time when Kenya is looking to deepen its digital economy and become a regional innovation hub. In theory, employees taxed on their stock awards could benefit later through dividends or capital gains, though most startup shares are unlisted and highly illiquid. The current tax rule, passed under the Finance Act 2023, allowed workers to defer tax until five years after receiving shares or when they left the company or sold their stake. The new proposal would unwind that deferral, potentially saddling employees with tax bills they cannot afford. The proposal raises additional complications for founders. Currently, dividends from such shares are subject to a 5% withholding tax, and if the shares are not traded on the Nairobi Securities Exchange (NSE), employees may also face capital gains tax when selling. An additional tax burden on this compensation tool could force many startups to phase out ESOPs. In 2024, the Treasury proposed a similar tax in the Finance Bill 2024, which was dropped following nationwide protests over rising taxes. Its reappearance suggests a push by Kenya to widen the tax net amid falling revenue and growing pressure to manage public debt. 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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Same deals, $102 million less cash: Africa’s logistics and transport funding in Q1 2025
Thirteen logistics and mobility startups raised funding in the first quarter of 2025. This matched the number of deals inked in Q1 2024, but the total amount plummeted to $44.9 million. Funding this year saw a 69% decrease from the $146 million raised in the same quarter last year. Despite the decline in funding, the number of deals reflects continued investor appetite for vehicle financing platforms. The largest deal was in the mobility-fintech subsector in both years. In the same quarter last year, the highest deal—$100 million—came from Moove, a mobility-fintech startup that offers vehicle financing for drivers using ride-sharing platforms such as Uber. In Q1 2025, the headline funding came from Gozem, a ride-hailing platform that has expanded into vehicle financing. Gozem secured a $30 million Series B round, split evenly between equity and debt. The round was backed by SAS Shipping Agencies Services, Asia Africa Investment and Consulting, and Al Mada Ventures, a Moroccan fund spun off from the royal family-owned Al Mada Holding Group, one of Africa’s largest private investment firms. Deals in Q1 2025 were a mix of grants, venture rounds, and growth-stage investments. Here is a closer look at what’s driving the sector, who’s writing the cheques, and where the road leads next. The big picture According to The Big Deal, total African startup funding in Q1 2025 was $460 million, representing a five per cent decline from $486 million raised in Q1 2024. The $44.9 million raised by mobility and logistics startups so far in 2025 accounted for just under ten per cent of Africa’s total startup funding in the first quarter. This starkly contrasts with Q1 2024, when logistics claimed thirty-one per cent of the $460 million raised, largely due to Moove’s significant round. Historically, the sector’s deal volume has fluctuated: In 2020, twelve deals brought in $91 million. In 2021, eighteen deals brought in $6 million. In 2022, a record thirty deals brought in $225 million. In 2023, sixteen deals raised $25 million. In 2024, thirteen deals brought in $146 million. In this year’s first quarter, 13 deals brought in $44.9 million. The steady deal count but lower funding in 2025 suggests investors are spreading smaller bets, focusing on efficiency over blockbuster rounds. Notable deals The highest deal, as previously mentioned, was Gozem’s $30 million Series B. Taager, an Egyptian platform enabling online merchants with end-to-end logistics solutions, followed, raising $6.8 million in a pre-Series B round. Taager is capitalising on Egypt’s e-commerce boom by enabling small businesses to navigate complex supply chains. In Kenya, Leta, a three-year-old AI-powered logistics startup founded by Nick Joshi, secured $5 million in a seed round from Speedinvest, Google VC, and Equator VC. Leta’s platform optimises delivery routes, tracks shipments in real time, streamlines payments, and provides shipping insights, positioning it as a leader in logistics technology. Ghana’s Kofa, a startup focused on sustainable energy and electric vehicles, secured $4.3 million in debt from the UK-AID agency. Rounding out the quarter, Kenya’s Mobius Motors, a vehicle manufacturer, was acquired by Middle East-based Silver Box for an undisclosed amount. The last reported exit in the sector was the acquisition of Go!TwentySix, a Nigerian valet service by DriveMe, a marketplace connecting businesses and individuals with professionally trained and vetted drivers. Regional overview Geographically, West Africa led the pack, with Togo, Ghana, and Nigeria collectively raising $30.3 million across three deals, driven by Gozem’s large round. East Africa, centred entirely in Kenya, saw four deals worth $5.3 million, including Leta’s seed round and Mobius Motors’ acquisition. North Africa, spanning Tunisia and Egypt, accounted for three deals totalling $7.2 million, with one being the acquisition of HatalaTee, an Egyptian online platform for buying and selling cars, by Dubizzle (value undisclosed). Southern Africa, with two deals in South Africa, raised $400,000, while Central Africa’s two deals in Cameroon also totalled $400,000. Funding stages Only one seed round—Leta’s $5 million—was disclosed. Growth and late-stage deals dominated, with Taager’s pre-Series B and Gozem’s Series B (equity portion) highlighting a focus on scaling startups. Debt financing played a significant role, with $19.5 million across two deals: Gozem’s $15 million and Kofa’s $4.3 million. Five venture rounds raised $800,000, and three grants, worth $400,000, went to startups in Kenya, Ghana, and South Africa from backers such as Deutsche Investitions- und Entwicklungsgesellschaft mbH, a German DFI, Alibaba Foundation, Energy and Environment Partnership Trust Fund (EEP Africa), and Shell Foundation. 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👨🏿🚀TechCabal Daily – Moniepoint’s big payout
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! What’s the best way to get rich quickly? Depending on how rich you want to get, my colleagues Muktar and Opeyemi have answers for you in today’s dispatch. If you’re interested in moving your newfound wealth across borders, Ngozi highlighted—in her My Life in Tech series—an individual who has developed the infrastructure to make that possible. Let’s get into it! Moniepoint’s unicorn round made employees billions of naira Tanzania blocks X (again) for pornographic content Netflix raises subscription prices How much do PoS agents in Nigeria make in a month? World Wide Web 3 Events Fintech Moniepoint’s unicorn round made employees billions of naira Zikoko Meme What’s the fastest way to get rich (without ending up in handcuffs)? Try joining a startup early. Sure, you never really know which startup will succeed or fail. Just ask Ronald Wayne, the guy who sold his 10% stake in Apple for $800 back in 1976. Today, his stake would be worth a mind-boggling $350 billion. Ouch. But here’s the real lesson: When Moniepoint closed its $110 million round, two employees cashed in big. One pocketed $850,000 (₦1.3 billion) by selling two-thirds of their shares. Another walked away with a tidy $20,000. These weren’t one-off flukes—Moniepoint has made employee share sales (aka “secondaries”) a core part of its playbook, letting senior folks cash out during major fundraises (the last one was in 2022). Know more: Only employees with three years in the trenches could sell, and there were strict limits on how much they could offload. Shares vest over four years, with 25% unlocking each year. Why does this matter? As IPOs and big buyouts remain rare in Africa, secondaries are becoming the go-to way for startups like Moniepoint and Arnergy (which did a similar deal in April) to reward and retain top talent. Bottom line: Equity is no longer just a promise; it’s starting to pay out in real, life-changing ways. Sometimes, betting early really does pay off. Join Fincra for an Exclusive Side Event at Money20/20 Europe Fincra is co-hosting “Stablecoins & The Future of Payments” at Money20/20 Europe with Utila, Rail, Wirex & more. Join fintech leaders for insightful panels & networking. Limited spots – RSVP here. Social Media Tanzania blocks X (again) for pornographic content Image Source: Zikoko Memes Tanzania’s government has once again blocked access to X (formerly Twitter), blaming the platform for hosting porn and “violating national culture.” But if you think this is just about racy content, think again. Here’s the backstory: The official Tanzanian police X account was hacked two weeks ago, posting explicit material and a fake announcement of the president’s death. The government quickly restricted access to X. Rights groups aren’t buying the “protecting morals” narrative. The Legal and Human Rights Centre called out the move as part of a “troubling pattern of digital repression” ahead of October’s elections. It’s not the first time either. X was blocked before the 2020 elections. Tanzania isn’t alone here. Across Africa, social media shutdowns are becoming the go-to playbook for governments facing unrest or bad press—see recent blackouts in Ethiopia, Sudan, and Senegal. Zoom out: While the government says it’s all about upholding values, critics argue it’s a smokescreen for silencing dissent and tightening control as election season heats up. However, the government says Tanzania is a stable democracy, and the poll will be free and fair. Tired of declined payments? Avoid the side-eyes at the cash till with Paga’s physical prepaid card. Designed to give you control, security, and ease. Fund and spend with confidence. Get yours today!. Streaming Netflix raises subscription prices Zikoko Meme Netflix has hiked its subscription prices in Nigeria—again. Effective from July 4, 2025, the premium plan, will now cost ₦8,500 ($5.37) up from ₦7,000 ($4.43). The standard plan will cost ₦6,500 ($4.11) up from ₦5,000 ($3.16). Netflix basic plan will now cost ₦4000 ($2.53) up from ₦3,500 ($2.21). Its mobile plan, which was the most affordable will now ₦2,500 ($1.58) up from ₦2,200 ($1.39). This increase marks Netflix’s third price hike in two years. In 2024 alone, Netflix increased its subscription fee twice in three months, first in April and then second one in July, where its premium package received a 40% increase. Netflix says these price increases are part of its global strategy to fund platform improvements and expand its content offerings. As expected, social media hasn’t been quiet. Some users have threatened to ditch the app entirely, saying they’ll turn to pirated sites instead. Others are planning to change to cheaper platforms like Showmax, whose the most expensive subscription plan is ₦5,400. The general sentiment? People are not happy about the hike and wonder if the content is still worth the cost. Netflix isn’t alone. MultiChoice Nigeria has also made multiple price increments in the past year, citing inflation and operational costs. Even Showmax, its streaming counterpart, revised prices in May 2025. So, what can this mean? It seems Netflix is confident in the Nigerian market’s willingness to pay. But for users, it may be another story, leading to downgrades, shared accounts, or cancellations. What happens when Netflix’s ambition outruns its audience’s pockets? How Paystack protects your business from cyber fraud Discover how Paystack uses Static Application Security Testing to identify and prevent security threats before they become issues. Learn more → Economy How much do PoS agents in Nigeria make in a month? In many street corners across Nigeria, plastic chairs, battered umbrellas, and wooden stalls have become the unofficial signage of a PoS stand. Beyond cash withdrawals and transfers, PoS agents have quietly become the face of banking for millions of Nigerians. The proliferation of PoS stalls represents Nigeria’s shifting financial landscape, characterised by the growth of digital payments and unstable banking systems. From the cash crunch of early 2023 to chronic ATM failures, PoS agents swooped in and reshaped how Nigerians access financial services such as deposits, bill payments, transfers, and withdrawals. In
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How to format a laptop: A guide to resetting, reinstalling, and wiping data safely
Formatting your laptop means clearing everything off it to start fresh, similar to cleaning out a cluttered room so you can set it up from scratch. When you format, you remove all files, apps, and settings to reinstall the operating system, giving your device a clean slate. However, formatting can mean different things. Sometimes it’s just a reset that keeps your files safe. Other times, it’s a full wipe that erases everything, making data recovery impossible even with specialised tools. Why you might want to format your laptop There are several good reasons to format your laptop, and it’s not just about making it faster. 1. Boosting speed and performance Over time, your laptop can get cluttered with leftover files, unused apps, and background processes that slow it down. Formatting wipes all that clean and brings back the speed and smooth experience you had when it was new. 2. Fixing software issues If you’re experiencing frequent crashes, glitches, or unusual errors, a complete reset or reinstall can help resolve the issue. It clears out any hidden bugs and gives your system a fresh, stable setup. 3. Removing stubborn malware Some viruses and malware can hide deep in your system, even when antivirus software says everything’s fine. A complete wipe and reinstall is often the best way to remove them entirely and get your laptop secure again. 4. Protecting your data Thinking of selling or giving away your laptop? A simple delete isn’t enough. Files can still be recovered if they’re not properly wiped. A full format with secure data erasure ensures that your personal information, such as passwords, emails, or work documents, is permanently deleted. 5. Upgrading or changing your operating system Switching to a different OS (like moving from Windows to Linux) or upgrading to a newer version? A clean install is the safest way to ensure your new system runs properly without any lingering issues from the old one. Top 10 Android phones released in 2025 Essential preparations before you format your laptop Formatting your laptop isn’t just about wiping it clean; it also means getting everything ready to avoid headaches later. Skipping the prep work can lead to lost files, licence issues, and hours of extra setup after the reset. A. Back up everything that matters Before formatting, ensure that all your important data is safely backed up. Once you wipe your laptop, there’s no going back. You’ll lose everything: photos, work files, apps, settings, even drivers. Here’s how to cover your bases: 1. Save your files Start with the obvious: your documents, photos, videos, music, and anything in folders like Downloads or Desktop. These are easy to miss but usually contain essential files. Copy them to an external hard drive or upload them to cloud storage, such as Google Drive, iCloud, OneDrive, or Dropbox. 2. Don’t forget your browser and app data If you use Chrome, Firefox, Safari, or Edge, export your bookmarks and saved passwords, and back up app-specific data, like game saves, templates, or anything you’ve customised. 3. Back up your drivers (yes, it matters) Some drivers may reinstall automatically after the reset, but not all of them. Especially if you have a gaming laptop, older hardware, or special accessories. Backing up your current drivers saves time and avoids annoying glitches later. On Windows, you can use built-in tools like: DISM pnputil Export-WindowsDriver in PowerShell These let you export all your current drivers into a folder for safekeeping. 4. Sign out and save your software licences If you’ve bought any software, like Microsoft Office, Adobe tools, or antivirus programs, sign out before formatting. Some licences are only compatible with one device at a time. Also, keep a record of your product keys. Most Windows 10/11 licences are stored in the system, but it doesn’t hurt to double-check. 5. How to back up: your options A mix of local and cloud backups is the safest approach. Here’s what to consider: Windows: Use File History or Backup and Restore for automatic file backups. Mac: Set up Time Machine with an external drive. Linux: Use tools like Déjà Dup to back up your home folder and settings. Pro Tip: Don’t just copy documents; think about your entire setup, including browser bookmarks, app settings, drivers, and licence keys. The more you back up now, the easier it’ll be after the format. 6. Pre-format backup checklist B. Make a bootable USB for a clean install To fully reinstall your OS, you’ll need a bootable USB drive (or disc). This helps your laptop load the operating system from scratch, rather than performing a basic reset. 1. For Windows (10 & 11) Easiest Way: Microsoft’s Media Creation Tool Download from the Microsoft site Plug in an 8 GB+ USB Let the tool handle the rest. It’ll download the OS and create the installer for you. Advanced Option: Use Command Prompt (Diskpart)If you’re comfortable with commands, you can manually prep a USB using Diskpart and xcopy. This gives you more control, but be careful, mistakes here can wipe the wrong drive. 2. For macOS (Sequoia, Sonoma, etc.) Use Terminal Download the full macOS installer from the App Store Plug in a 16–32GB USB drive Use createinstallmedia in Terminal to turn it into a bootable installer Tip: Use Disk Utility first to format the USB properly Prefer a visual tool?Apps like Disk Drill offer a more straightforward, graphical way to do this, which is great if you’re not into Terminal commands. 3. For Linux (Ubuntu, Fedora, etc.) Download the correct ISO file from your distro’s website Use Etcher, Rufus, or UNetbootin to flash it to your USB Make sure to: Pick the correct partition scheme (MBR/GPT) Select the right USB (double-check!) Disable Fast Startup in Windows if switching OS 4. Don’t forget BIOS/UEFI settings Even with your bootable USB ready, your laptop might not boot from it right away. You may need to: Disable Secure Boot Change the boot order Turn off Fast Startup These settings are typically located in your BIOS
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