Digital lenders face up to ₦100m fine for unethical conduct under FCCPC new rules
Digital lenders in Nigeria now risk fines between ₦50 million and ₦100 million, or 1% of their annual turnover, for unethical conduct and other violations under new rules introduced by the Federal Competition and Consumer Protection Commission (FCCPC). The newly issued Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, released in July, represent the commission’s latest effort to regulate the country’s $2.1 billion consumer lending market, which even banks have long avoided due to high default rates. It builds upon its 2022 framework, which aimed to curb illegal activities and improve regulation in the sector. It also aligns with regulatory shifts in the continent’s approach to consumer lending, with the Central Bank of Kenya recently publishing a draft non-deposit-taking credit providers regulation. Previously, penalties for unethical behaviour—such as threatening debtors and their contacts— in Nigeria’s digital lending space consisted of office raids, app delistings, and operational disruptions. Now, the FCCPC has clearly defined standard penalties. An individual guilty of breaching any of its regulations can be fined up to ₦50 million, while a company could face ₦100 million or 1% of its previous year’s turnover, whichever is higher. Company directors also risk sanctions for up to five years. “Any person or undertaking found to be in contravention of the provisions of these Regulations shall be liable to sanctions, which may include fines, suspension of operations, or delisting of their registration, or revocation of approval,” the commission stated. In addition to fines and penalties, the new law introduces registration and renewal fees and requires fair treatment of customers. It applies to all business entities—physical or electronic—that provide lending services, including those licensed by states but operating across state borders, and extends to players in already regulated industries. Airtime lending, which powered MTN’s ₦83.19 billion fintech revenue in H1 2025, is now under the FCCPC’s purview. Only microfinance banks are exempt, and even they must seek a waiver, according to lending software firm Lendsqr. Licence applications cost ₦100,000, with approval fees set at ₦1 million for mobile money operators such as MTN’s MoMo and Airtel’s SmartCash, or as determined by the commission. Existing digital lenders — 461 as of early August — will also pay ₦1 million, or as determined by the commission, for approval, covering only two apps. Extra apps cost ₦500,000 each, and ownership is capped at five. Initial approvals will expire after three years and must be renewed by 31 March of the following year. “An approval issued by the Commission in accordance with these regulations shall expire on 31st December of the third calendar year from the issuance date…” it added. Approvals must be renewed every 36 months from the date of the first renewal, and companies are now subject to a ₦500,000 annual levy, or a fee set by the commission. A significant aspect of the regulation centres on customer safety. It stipulates that lenders must limit advertising, cease unsolicited marketing, be transparent about all fees, and approve loans only for borrowers capable of repayment. Interest rates—many of which have been described as exploitative—will now be monitored by the FCCPC. “The Commission shall periodically monitor interest rate for services of consumer lending, and ensure rates are not exploitative and inimical to consumer interest,” it said. Operators must also adhere to the Nigerian Data Protection Act 2023, the Nigerian Communications Act 2003, and other applicable laws. Lenders must undergo audits, submit biannual reports to the FCCPC, file annual returns, and produce records within 48 hours of request. Entities already operating in the sector have 90 days to comply. Gbemi Adelekan, president of the Money Lenders Association (MLA), commended the new regulation, noting that it seeks to establish stability within the sector and protect consumers. “However, some of the rules as stated may have a significant impact on the cost of service provision, technology, accessibility of financial services, which in turn can influence pricing of our services and consumer behaviour,” he said. He called for a balanced and adaptable regulatory environment that can adapt to changing consumer needs. Adedeji Olowe, founder of Lendsqr, highlighted that the new law reflects the maturing of the sector. “Digital lending isn’t a side hustle anymore. It is part of the financial system, and it is going to be treated that way,” he wrote in a LinkedIn post on Monday, August 11. 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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Our opportunity to service the African diaspora and beyond
Look to the African sky and be inspired. It is very easy to become discouraged by thinking about the world’s problems. They can seem overwhelming, but the same problems also present us with opportunities to find innovative solutions which help millions of fellow Africans – and people beyond our shores – realise their dreams. I fundamentally know this to be true due to my experience at Moniepoint – working with a fantastic team to empower people I don’t know and might never meet; enabling them to access the financial system, help their family and friends, and build their businesses. Looking back to 2015, we couldn’t anticipate the growth Moniepoint has achieved over the last decade; servicing millions of businesses and individuals, raising $110 million on the capital markets, and entering international markets to serve customers around the world. We were simply looking to bring financial happiness to Nigeria and then the rest of Africa. A decade later, we have seen tangible success in meeting this mission – from pioneering virtual accounts payments in Nigeria via Monnify to becoming Nigeria’s largest merchant acquirer; processing 1 billion+ transactions monthly, with total payments volume of over $22 billion; whilst playing an instrumental role in helping the Nigerian’s government’s efforts to improve financial inclusion. In building the country’s most robust distribution network for financial services, we have been able to create immense value and a life-changing impact in reaching the underserved and unbanked populace. The capital we have raised across this period, from investors such as Development Partners International (DPI), Google’s Africa Investment Fund, Verod, and Lightrock, is a result of Moniepoint’s impact in driving digital and financial inclusion, and our ability to foster economic activity and development. The investment also speaks to our growth and profitability; our revenue has grown at over 150% CAGR, and the Company has been widely recognised as one of Africa’s fastest growing fintechs. Naturally, as Moniepoint continues to grow, our goals have changed. Now, for the first time, we are helping the African diaspora – our family and friends living in other countries (such as the UK) – achieve their financial goals. The diaspora is a critical component of many economies across Africa – sending remittances back to their home countries to support families, friends, and communities. For instance, the global Nigerian diaspora remitted over $20 billion in 2024; an increase of 9% on 2023. This figure is equivalent to c. 3.5% of Nigeria’s entire GDP – helping to grow businesses and drive economic development. The economic value of the diaspora underlines why African companies should seek to service the African community living in other countries. As most of us know, it takes incredible bravery and confidence to move to another country and start a new life – traits which I believe explain why the diaspora boasts so many entrepreneurs and business leaders. However, these entrepreneurs consistently want to remain connected to their homeland(s), often looking to create a positive impact for their communities at home. This rationale is undoubtedly why we’re starting to see more and more financial products catering to the diaspora – such as our recent solution, MonieWorld – and this is just the beginning. For us, MonieWorld addresses the fragmented financial needs of the African diaspora, starting with Nigerians in the UK, by creating a seamless bridge between their financial lives in both their home country and their country of residence. Whether they’re long-settled expats, recent migrants still finding their financial footing, or individuals who split their time between Nigeria and the UK, there’ll be needs – school fees, medical expenses, business support, or everyday living – to be met. We want to be front and centre in uplifting lives, helping to build emotional and financial connections to the places that matter. Over time, I expect the links between the diaspora and our home countries to be increasingly formalised and easy to access, embodying a positive form of globalisation for Africa. This change will help maintain the growth momentum many countries are seeing, drive adoption of innovative products and solutions, and provide opportunities to grow Africa’s share of global capital and economic resources. Simultaneously, the visibility of servicing the African diaspora will also drive reputational change, as the real and positive impact of Africans in the global economy will become more visible and better understood. To summarise our approach to business, we believed in a world where every African everywhere could access and enjoy financial happiness. By strengthening our resources, we are ready and committed to making this a reality. To everybody who’s been part of our journey, a genuine and humble thank you. Now we are eager to keep powering more dreams! Keep looking to the sky and find your inspiration. ________ Tosin Eniolorunda is a leading innovator in African fintech, with a passion for creating financial happiness and a track record of groundbreaking contributions to financial technology in Africa. He is the Founder and Group CEO of Moniepoint Inc., an all-in-one digital payments and banking platform and Africa’s fastest-growing fintech. 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
Read MoreNigeria nets ₦84.97 billion in six months after extending transfer levy to fintechs
When Kemi Michael, a corporate compère, attempted to transfer money to her usual PoS agent in late 2024, the attendant had a tip for avoiding an extra charge: “Send ₦9,500 instead of ₦10,000 so I don’t have to add ₦50 to the withdrawal fee.” According to her, it worked for a while but was not sustainable. That ₦50 charge, the Electronic Money Transfer Levy (EMTL), was extended to fintechs like Opay, Palmpay, and Moniepoint in December 2024, and in six months, increased government revenue by ₦84.97 billion, according to Federation Account Allocation Committee (FAAC) data. Between December 2024 and May 2025, EMTL revenue reached ₦185.86 billion, an 84.22% rise from the ₦100.89 billion recorded during the corresponding period of 2024, confirming the government’s motivation for extending the levy to fintechs. In 2024, the government required fintech operators to comply with EMTL in line with the Federal Inland Revenue Service (FIRS) regulations. Although the levy was initially set to start in September 2024, implementation began in December. The EMTL, introduced in the Finance Act 2020 as an amendment to the Stamp Duty Act, imposes a ₦50 charge on electronic transfers of ₦10,000 and above, initially applying only to banks. The levy was meant to diversify revenue away from oil and tap into Nigeria’s booming e-payments market, which hit ₦1 quadrillion in 2024. As banks struggle to meet digital demand, fintech firms have stepped in, processing ₦46.91 trillion worth of transactions in 2023 and ₦79.55 trillion in 2024. These mobile-first neobanks have become vital for the roughly half of Nigerian adults who remain unbanked or underserved, especially in rural areas. Olayemi Cardoso, the Central Bank of Nigeria governor, noted that the adoption of digital payment channels using mobile technology has been a transformative tool for financial inclusion, which stood at 64% in 2023. “There is still a gap in the number of adult population that is unbanked, and this responsibility falls on fintechs,” said Chika Nwosu, managing director of Palmpay, during a recent TV interview. Transaction values through mobile money platforms such as Opay and Palmpay increased by 2,507.94% between 2020 and 2024. The appeal of neobanks lies in the promise of near-instant, low-cost, or free transfers. “Fintech services, like transfers, are provided free of charge, or nearly so,” Nwosu emphasised. Initially, extending EMTL to fintechs was seen as a potential deterrent for users. According to GSMA, the global organisation for the telecom sector, additional taxes could threaten the success of e-payments. In a study, the organisation revealed that additional taxes on mobile money transactions in Uganda caused a 24% drop in overall industry transaction values in 2018. In 2019, new taxes on mobile money led to decreases in transaction values and volumes in the Republic of Congo. However, Nwosu noted that customers have since adapted. “This is a government policy, there is nothing we can do about it, and customers are okay with it and are not complaining anymore,” he said. While the government aims to increase tax revenue from EMTL, the bigger challenge remains incentivising transfers of ₦10,000 and above, as microtransactions — which gained prominence after the CBN’s unsuccessful cashless policy initiative — dominate. “Transfers below ₦6,000 make up about 45% of transfer transactions. Those in the range of ₦10,000 are around 25%,” an industry source commented. PalmPay, Opay, and Moniepoint grew rapidly on small-ticket transfers, offering speed at almost no cost. While these transfers might not generate more taxes for the government, it bodes well for financial inclusion. “The goal remains financial inclusion,” added Nwosu. 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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A financial tool for South Africa’s gig workers left out of formal banking systems
It started with curiosity and a handful of conversations in the back seats of ride-hailing vehicles. “That’s where we noticed a fundamental gap in the market,” says Busisiwe Ndlovu, Co-Founder, Brown Financial Service, a new startup building financial tools for South Africa’s gig workers. Despite steady daily earnings, Ndlovu found that many South Africa’s gig workers, particularly ride-hailing drivers fell outside of traditional banking systems, often denied credit or forced into high-interest informal loans. “Many of our users have stable and substantial incomes but have been turned away by banks,” Ndlovu says. “Others have been forced into predatory lending situations. We hear repeatedly that no one understands their industry or income patterns.” Brown Financial Services launched in 2024 and introduced its first product just six months ago—a fuelling loan and credit card designed specifically for e-hailing drivers. It gives drivers access to short-term loans ranging from R1,000 to R5,000 to cover fuel costs, with repayments matched to how they earn. “Fuel is their biggest operational expense, but they have no tools to manage that cash flow,” Ndlovu says. “We saw an opportunity to build something that actually works for how they live and work, rather than forcing them into systems designed for nine-to-five employees.” Ndlovu noted that the sign-up process is simple and mobile-friendly, and once approved, drivers can use the card at major fuel stations across South Africa. Drivers apply via a website form, and a dedicated WhatsApp channel keeps communication clear. A driver-focused mobile app is in the works, set to launch soon. Betting on the gig economic boom The startup is betting on South Africa’s fast growing gig workers economy. According to Stats SA, over 3 million South Africans now rely on some form of informal or gig work, and Bolt and Uber alone employs over 60,000 drivers. While gig workers like ride-hailing platforms offer fuel incentives, Ndlovu sees those as temporary fixes. “Brown Financial Services is building something permanent. We are not trying to disrupt for disruption’s sake. We are solving real problems for real people,” she noted. Beyond fuel, a full financial toolkit While fuel cards are the company’s first product, they are laying the foundation for a much broader gig economy financial system. Plans are underway to expand into vehicle maintenance financing, insurance, and eventually, full earnings-based financial tools. The company says it is yet to integrate AI into its operations and is focused on building human-centred systems that work for drivers in real time. All fees are upfront, and the company claims there are no surprises. “Our vision is to be the complete financial partner for gig workers throughout their careers,” Ndlovu says. 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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Funding is flowing North, and Enza Capital is paying closer attention
After landmark acquisitions like InstaDeep and Expensya, proof of the region’s growing ecosystem maturity, North Africa has drawn increased investor attention over the past two years. Its proximity to Europe’s vast consumer market and access to deep Middle Eastern capital pools only add to the allure. In 2024, Egypt recorded the fastest growth in equity deal activity in Africa, with 48% more rounds than in 2023. Morocco was the sixth most active African country and one of the few markets outside the top four to raise over $50 million. So far in 2025, Egypt trails only South Africa in funding, having raised $339 million in the first half. Investors have parked their capital in the region’s fintech sector, especially with payments and credit, alongside the proptech and consumer commerce sectors. Amidst all this activity, firms are racing to hire and deploy capital. Among them is Enza Capital, a pan-African fund that invests between $250,000 and $5 million in startups across multiple sectors. Unlike typical early-stage investors, Enza can deploy up to $20 million in follow-on rounds and take long-term positions in its portfolio companies. This week, I spoke to Abdelrahman Hassan, the principal at Enza, to understand how Enza thinks about North Africa and why it has tripled its regional portfolio in two years. Although Enza is headquartered in Nairobi, Hassan is based in Cairo, where he leads the firm’s North African strategy and has backed regional startups such as PharmacyMarts, Olive, and Manzil. “At Enza, our core thesis is backing founders and teams using technology to solve large, meaningful problems across Africa,” he said. ”We back entrepreneurs reimagining how Africans live, work, move, earn, and thrive, often where infrastructure is broken, outdated, or nonexistent.” His firm focuses on financial services, logistics, healthcare, climate, and human capital. Hassan describes them as sectors where compounding advantages build moats over time. “Capital is just part of the puzzle. We also support founders with talent, product strategy, narrative, and governance,” Hassan said. “The reality is investing in Africa often means building the conditions for success. We help our companies fill the gaps. Our conversation covers Enza’s investment strategy in North Africa, how it supports founders, how the firm thinks about exits, how limited partners think about North Africa, and what to avoid when entering the region. This interview has been edited for length and clarity. You moved from an impact-first fund (Imaginable Futures) to a return-driven VC (Enza). How did that shift your mindset? The biggest mindset shift was recognising that the two are not mutually exclusive. A company that can not generate sustainable returns will eventually lose its ability to deliver impact, no matter how strong its mission. Similarly, an impact-first startup will lose its ability to deliver impact at scale unless it finds ways to build a sustainable commercial business. For example, the neobanks we back serve mostly unbanked users. Affinity Bank in Ghana serves first-time users. Credo democratises education access. Even though we optimise for financial return, impact is baked in. Revenue is not a dirty word. It does not mean abandoning values. It means building them into a business model that can survive market cycles, so the impact compounds instead of disappearing when the funding tap stops. We believe the next generation of breakout companies will come from solving the hardest problems – the kind that touch millions of lives. In Africa, those opportunities are everywhere. Technology gives us the reach, but it’s the founders who turn ambition into reality. We’re here to find, back and support those teams in North Africa and across the continent. 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Inclusive design is key to onboarding Nigeria’s unbanked and unconnected
Imagine trying to pay for your electricity online, but the text on the call-to-action button is too small to read, or your aunt in the village who wants to use her mobile banking app, but the app doesn’t support her native language. For many Nigerians, this is their daily predicament while using a digital product. Despite the country’s huge population and multitude of tribes, languages, cultures, and socioeconomic characteristics, very few digital platforms take note of these unique differences while developing products. The price for this? Millions of Nigerians who could benefit from digital tools, potentially left out. Nigeria’s diversity calls for knowing your users’ constraints The problem of digital exclusion in Nigeria affects many groups. People living with physical disabilities struggle with navigating websites and apps that are incompatible with assistive technology such as screen readers. Less tech-savvy users and people with low literacy levels face challenges, as many digital platforms rely heavily on unfamiliar tech terms, with little to no support for local languages. In rural areas, many individuals still rely on non-smart phones, yet most digital services prioritise only smartphone users. Additionally, people in remote areas with poor internet access are often excluded due to high data-consuming apps that are slow and expensive. A typical example of an accessibility concern is a young professional in Ibadan who wants to watch an online course; however, upon realising that the video will consume a lot of data, he misses an opportunity to upskill himself. Similarly, a trader in Kano who prefers to read in his local language, Hausa, but most government websites provide information only in English. These scenarios highlight how technology in Nigeria often fails to be inclusive. Inclusivity is key to reaching the underprivileged Some Nigerian companies are taking steps toward inclusivity. Most Nigerians have adapted to USSD banking services, which were pioneered by eTranzact but made popular by banks like GTBank and FirstBank, allowing users to transfer money and pay bills without an internet connection. This benefits rural traders, elderly Nigerians, and those who prefer simple text-based banking. In the banking sector, ATMS with voice guidance have been introduced by some banks, which help visually impaired users withdraw money independently and seamlessly. Similarly, e-learning platforms like ULesson allow students to download lessons for offline learning, supporting students in remote areas with limited internet access. An important area that needs urgent attention of digital inclusivity is the Micro Pension Plan for the informal business sector, which accounts for 76.7% of Nigeria’s workforce. Most employers and employees in this sector, mainly traders, artisans, and small business owners, do not have access to structured pension plans due to the bottlenecks of existing financial systems. This is an opportunity for tech innovators to develop solutions to digitalise the Micro Pension Plan and make it more user-friendly. Digitalising this untapped market can ensure that millions of informal workers have financial security when they retire. Digital industry-wide need for inclusive designs Inclusivity in digital platforms extends beyond the financial sector and spreads across the transportation sector. Many navigation apps primarily use Western accents for voice directions, which are unfamiliar to Nigerians. Adapting Nigerian accents into these systems would make them more user-friendly. Accurate pronunciation of place names and familiar directional expressions in Pidgin or indigenous languages would improve accessibility. In 2019, Google Maps introduced Naija accent in its map app, helping commuters to hear travel advice in a local voice, which has greatly improved the user experience. Clear, culturally relevant voice navigation can enhance travel safety and usability for many Nigerians, particularly commercial drivers and those with lower literacy levels. Product designers like me must champion the cause of digital inclusivity, as many businesses do not see accessibility as a priority. Investing in accessibility at the early stages of product development is one of the ways a product can reach a larger customer base, as more people can use the product, increasing revenue. It also improves brand reputation, as businesses seen as inclusive gain public trust. Furthermore, with many countries enforcing accessibility laws, Nigerian companies that adopt inclusive design early will be ahead of future regulations. Nigeria’s digital space is growing fast, but not everyone can fully participate. The most successful companies will be those that prioritise accessibility, not just for social good, but for long-term growth. Companies should test their apps with real users, including those with disabilities and low literacy. Government agencies should promote accessible digital services, and designers and developers must think beyond urban, tech-savvy users. By making digital platforms accessible, we can build a Nigeria where technology works for everyone. ______ Olufemi Ayandokun is a senior product designer passionate about accessibility and digital inclusion. He has created user-centred digital products for Moni Africa, Xchange Box, and several tech startups, consistently prioritising inclusive design to ensure equitable user experiences. 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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“Culture isn’t what you say, it’s what you allow”: Day 1-1000 of Haul247
Sehinde Afolayan, founder of logistics platform Haul247, was one of the first founders I interviewed as a journalist for TechCabal. The startup, launched in 2020, had just raised $3million at the time. In a space ravaged by big name logistics startups struggling and shuttering, Haul247 has held its own. Afolayan knows the space is tough. He’s been the commodities trader whose goods rotted in storage. He knows what it’s like to feel helpless within a system you depend on, and that first-hand frustration fuels everything Haul247 does. He tells me Haul247 survived by refusing to treat logistics as a series of disconnected pieces. “It can’t be a standalone,” he says. “You have to make it all talk to each other.” That means connecting warehouses, trucks, and tech so clients actually know where their goods are—something he could only wish for when he faced his own supply chain disasters. Afolayan is my guest for today’s edition of Day 1-1000, he tells TechCabal how Haul247 has morphed from solving one man’s supply chain pain to building a logistics operating system for Africa, one real, integrated solution at a time This is the story of Haul247 as told to TechCabal. Day 0: Entrepreneur in training My real journey started long before Haul247—it started at Obafemi Awolowo University (Ile-Ife, Nigeria), where I studied Agriculture. It wasn’t just about learning from textbooks; it was the kind of place where you could get your hands dirty—literally. I remember one day, my head of department got an urgent call from the dean while we were in the lab. She was in the middle of artificial insemination work, which involves using a microscope to handle spermatozoa and eggs. She said, “Can you help me with this? I need to quickly go and meet the dean.” I was 20, maybe 21. I was nervous, but also curious. I’d never done this before. But I did it well—the survival rate was 98%, which was very high. I was a rookie, but I succeeded. She was really impressed. She gave me my first 1,000 fingerlings to rear within the faculty building, which I did. My entrepreneurial journey started there. I realised that if you take responsibility and deliver, people will trust you with more. But university wasn’t just about grades. This was also where I met my co-founders, Tobi Obasa and Akindele Phillips. We’d become friends for life, but at the time, it was just three young men figuring out life, thinking about what Nigeria could be. No one told us how hard starting a business would be, but the hunger was there. The lessons from those days—taking responsibility, solving real-world problems, working with people—shaped how I thought about entrepreneurship. After Obafemi Awolowo University, I went on to Lagos Business School for an MBA in 2016. That was another layer—learning not just how to do things, but how to lead, how to grow an organisation. But I always carried the spirit of those university days with me: the curiosity, the hunger, the willingness to own the outcome. When I jumped into business—first farming, then commodities, and finally logistics—I kept that mindset. If you’d asked me at 20 if I’d be building a logistics company, I’d have said no. But looking back, the roots were always there. 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Africa’s tech ecosystem must break free from digital feudalism
A quiet but profound struggle is playing out within Africa’s tech ecosystem—one not over code or innovation, but over control. It is the battle for digital sovereignty: the right of African nations to own their digital infrastructure, govern their data, and shape the future of their technological ecosystems. Yet as it stands today, much of Africa’s digital success story rests on a fragile foundation built not on autonomy but dependency. And if we’re not careful, what we are hailing as a digital transformation may turn into a new chapter of digital feudalism. In this new digital order, global technology giants control the platforms, own the infrastructure, and extract the value, while African governments, startups, and citizens rent access to systems they neither designed nor can meaningfully govern. For all our innovation and growth, we remain tenants in someone else’s house. Access without agency It’s easy to be dazzled by the vibrancy of Africa’s tech scene. Nigeria’s unicorns—Flutterwave, Andela, and Moniepoint—have made international headlines. Kenya’s Silicon Savannah has redefined mobile finance through M-Pesa. Egypt has emerged as a fintech and e-commerce hub in North Africa. But beneath this success lies a sobering truth: we don’t own the pipes. Take Nigeria, where federal ministries and universities rely on Microsoft’s cloud to run their operations. Public biometric data, national IDs, and educational platforms are hosted on foreign servers—often beyond the reach of Nigerian law. Despite the 2023 Data Protection Act, most of this infrastructure remains externally owned and governed. Nigeria’s burgeoning digital identity system may empower service delivery, but without true data sovereignty, it risks becoming another extractive tool, where Nigerian data fuels AI models and analytics from which Nigerians gain little benefit. In Kenya, M-Pesa has been a revolutionary force. Yet many forget that it was developed not by Kenyan engineers, but by Vodafone UK in partnership with Safaricom. The IP and core infrastructure remain abroad. Kenya’s data protection law (2019) is promising, but enforcement remains weak and foreign platforms dominate digital transactions, communications, and content consumption. In Egypt, we see rapid digital expansion: smart cities, digitised health systems, and artificial intelligence strategies. However, many of these projects are being implemented through Chinese and European partnerships, where the core technologies, platforms, and data hosting remain outside Egypt’s control. Telecom Egypt’s collaboration with Huawei underscores a wider trend: outsourcing infrastructure without long-term guarantees of national ownership. What unites these cases is a fundamental imbalance: Africans are connected, but not in control. Infrastructure must create value, not just extract it We would never dream of outsourcing our roads, ports, or hospitals without legal safeguards and local benefits. Yet we hand over control of digital infrastructure—the backbone of our economies—with little more than a handshake or memorandum of understanding. We must change that. Digital infrastructure is public infrastructure. And just like roads and power grids, it should serve the public good, create local jobs, protect rights, and build institutional capacity. Yet too often, it is built and owned by outsiders, governed by foreign laws, and monetised for offshore shareholders. This is not innovation; it is dependency in disguise. Sovereignty is not repression To be clear, digital sovereignty does not mean state control or internet shutdowns. Some African governments have misunderstood this principle, weaponising it to surveil activists, censor dissent, or block platforms under the guise of national security. That’s not sovereignty, that’s authoritarianism wearing digital camouflage. True digital sovereignty is about empowering citizens. It means having the infrastructure, skills, and policies to ensure African data works for African development. It means protecting the digital rights of citizens—privacy, freedom of expression, and access to information—whether the threat comes from Big Tech or Big Brother. AI: The next frontier of exploitation? Artificial Intelligence is quickly becoming the engine of global power. From medical diagnostics to financial modeling, these systems are trained on vast datasets, including African text, images, and voices. Yet most African countries don’t know how their citizens’ data is used in global AI training pipelines. Worse still, they have no legal power to challenge biased systems that may reinforce inequality. We risk being digitally colonised not just by platforms, but by algorithms: AI systems trained elsewhere, governed elsewhere, and deployed here without accountability. This is why local investment in AI must be a continental priority. Nigeria’s National Centre for Artificial Intelligence and Egypt’s AI strategy are commendable. But they are not enough. We need local datasets, African language models, open-source alternatives, and ethics frameworks rooted in our values. What a people-centered digital ecosystem looks like The good news is that change is possible. Senegal is building a national data center in Diamniadio to host government services locally. Rwanda’s Irembo platform delivers over 100 public services online while keeping citizen data under national jurisdiction. These are models we must scale, not exceptions we admire. Africa also needs stronger regional regulation. The African Union’s Data Policy Framework and the Smart Africa Alliance are important steps, but they need teeth: shared standards, joint infrastructure projects, and enforcement mechanisms. We must stop acting like 54 disconnected markets and start thinking like a single digital bloc. The road ahead Africa’s tech ecosystem is at a fork in the fiber-optic road. We can continue down the path of digital feudalism where our innovation is leased, our data exported, and our digital futures outsourced. Or we can choose the harder, bolder path of digital sovereignty—owning our infrastructure, governing our platforms, and protecting the digital rights of our people. Yes, it will require regulation, investment, coordination, and imagination. But it is the only path that ensures our digital future is built by us, for us. The servers are humming. The data is flowing. The platforms are expanding. Now we must ask ourselves: Will they serve Africa, or will Africa continue to serve them? ________ Faiz Muhammad is the Executive Director of Blue Sapphire Hub, leading innovation and enterprise development across Africa’s Sahel region. He champions digital inclusion, startup growth, and policy reform to drive sustainable, tech-enabled development. Mark your calendars! Moonshot by
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Kenya’s central bank to licence non-bank lenders with loan books exceeding $155,000
Kenya’s credit market is set for its biggest shake-up in years, with the Central Bank of Kenya (CBK) preparing rules that would bring every non-deposit-taking lender under its direct control for the first time. The proposed regulations will require any credit-only provider with at least KES 20 million ($155,000) in capital, borrowings, or loan book to obtain a CBK licence. Smaller players will still need to register with the regulator, creating a two-tier system to close regulatory gaps that left parts of the industry largely unchecked. Once the rules are gazetted, players will have six months to comply, a short runway for an industry about to come under far closer scrutiny. This move will affect lenders operating outside CBK oversight, including buy-now-pay-later firms, hire purchase businesses, credit guarantors, peer-to-peer platforms, and pay-as-you-go operators. The new regime would set baseline standards for lending operations, price loans, handle customer data, and resolve complaints, areas that have, until now, relied more on self-policing than formal rules. Under the draft framework, firms seeking a full licence will face detailed disclosure requirements. These include corporate and ownership records, sources of capital, consumer protection measures, anti-money laundering controls, pricing models, and technology systems. They must also submit policies on credit risk, data security, and complaint handling, alongside proof that their funds are legitimate and not linked to criminal activity. Registered firms below the KES 20 million ($155,000) threshold will undergo a lighter process, but must still provide key corporate, policy, and governance documents. Once they cross the threshold, either by raising more capital, borrowing, or growing their loan book, they must convert their registration into a full licence. CBK will monitor for under-reporting of capital and can compel a fast upgrade if it sees rapid growth or incomplete disclosures. The existing 126 licenced digital credit providers won’t need to reapply. Another 574, still awaiting approval, will have their applications assessed under the new rules The regulations are designed to standardise consumer protections across all credit-only providers. Lenders must sign and follow a code of conduct covering fairness and transparency. The CBK’s wider mandate, granted through amendments to the Business Laws (Amendment) Act 2024, is part of Governor Kamau Thugge’s push to bring consistency to a sector where borrowers face varied practices and opaque pricing. 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
Read MoreThese 8 AI startups from Africa have raised over $1 million this year, Egypt takes the lead
Africa may only account for 2.5% of the global AI sector, but there is still an opportunity for African startups to enter the market. This year, the continent’s AI market is estimated to be worth $4.51 billion and is projected to reach $16.53 billion in the next five years. In 2025, tech startup funding so far in Africa has seen a 78% increase compared to the first half of last year, after the funding slump of 2023 and 2024. This momentum is spilling into AI, where some early-stage startups are now securing multimillion-dollar rounds on the continent. The release of open-source models like DeepSeek in January and OpenAI’s open-weight offerings just this month presents an opportunity for AI startups on the continent to lower infrastructure costs for building applications. African startups are becoming increasingly well-positioned to prototype and scale AI software products, especially in sectors like logistics, healthcare, customer services, and fintech. Egypt takes the lead This piece looks into eight AI startups from Africa that have raised over $1 million so far this year. According to data from Africa: The Big Deal, Egypt accounts for the most, with three startups. The North African country has been witnessing an increase in deeptech innovation, possibly due to its early policy decisions. Egypt launched its national AI strategy in 2021, well ahead of regional peers like Nigeria and South Africa. In the second edition of this strategy, released in 2025, the Egyptian government plans to enable and support the establishment of 250+ successful AI companies in the country by 2030. Another Egyptian-led startup that recently made the news was PlayAI, a voice tech startup that was acquired by Meta last Month for an undisclosed amount. The team, which started in 2021, eventually moved to Silicon Valley to pursue further growth opportunities at Y Combinator. Their acquisition is a signal that African-born AI startups are capable of building globally relevant products. Below, you’ll find the list of eight early-stage African startups focusing on AI that have raised at least $1 million this year. This list paints a picture on what kinds of startups are receiving investor interest and gaining traction in an evolving AI development landscape on the continent. Infinilink– $10 million Infinilink is an Egyptian semiconductor startup that focuses on building chips for AI-driven data centres. It was founded in 2022 by two engineers: Ahmed Aboul-Ella and Botros George. MediaTek, a Taiwanese semiconductor company, and Saudi VC firm Sukna Ventures led the funding round. The $10 million in seed funding will be used to improve the development of its optical connectivity solutions, which allow for a faster and energy-efficient way to transfer data between chips and servers in data centres. This is the only startup on this list that is mainly focused on hardware design and manufacturing. As revenue from data centres in Africa alone is expected to reach $8.96 billion for this year, there’s a growing interest in energy-efficient hardware needed to power these data centres. Infinilink could be one of the Africa-based startups positioned to take advantage of this opportunity, both on the continent and beyond. Kera Health– $10 million Kera Health Platforms is a Senegalese e-health startup co-founded in 2023 by Moustapha Cissé, a former AI research scientist at Google and Facebook, Papa Sow, a former CEO of MTN Guinea, and Hosam Mattar, former Chief Medical Officer for AXA. Kera Health offers an AI-powered integrated platform that digitises core services, from electronic medical records to prescriptions and payments. The startup raised $10 million from the International Finance Corporation (IFC), an arm of the World Bank focused on supporting the private sector in developing countries. Kera Health plans on using the funds to expand its software capabilities and improve its corporate governance standards. Cerebium– $8.5 million Cerebium is an AI startup that originated in South Africa and is now based in New York. It was founded in 2021 to simplify infrastructure for AI developers. The co-founders, Michael Louis and Jonathan Irwin, both worked as senior developers at OneCart, a South African online grocery platform. Cerebium helps developers deploy and manage AI applications by streamlining development cycles and saving costs on expensive servers. The team raised $8.5 million in seed funding to expand its engineering team, strengthen its core platform, and meet growing enterprise demand. The funding round was led by Gradient, Google’s AI venture fund, with participation from Y Combinator, Authentic Ventures and other angel investors. Leta – $5 million Leta is a Nairobi-based AI-powered logistics startup founded by Nick Joshi in 2021. It provides businesses with tools for intelligent route optimisation and shipping insights. In March 2025, the company secured $5 million in a seed round led by Speedinvest, with participation from Equator VC and Google’s Africa Investment Fund. The startup will be used to expand into new countries like Ghana, improve their technology stack, and increase reach in existing markets across Kenya, Nigeria, Uganda, Zimbabwe, and Zambia. Qme – $3 million Qme is an Egyptian startup, founded in 2022 by Maged Negm, a former executive at Orange Egypt, a leading telecoms operator on the continent. Qme built an AI-powered platform to tackle inefficiencies in customer queueing and appointment booking. In February 2025, the company secured $3 million in seed funding in a round led by AHOY. The funding will be used to improve the startup’s technology stack, extend its market reach across the MENA region, and build stronger partnerships with businesses and governments to broaden its reach. Widebot AI – $3 million Widebot AI was initially founded in Egypt but is now based in Saudi Arabia. It is an Arabic-focused AI startup building enterprise-level language solutions for corporations and government institutions in the Middle East and North Africa. The company recently raised $3 million in a pre-Series A round led by Keheilan Asset Management and Enza Capital. Widebot aims to use the funding to develop AQL Mind, an Arabic large language model. NeedEnergy – $1.1 million NeedEnergy is a Zimbabwean energy-tech startup that runs a platform using
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