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POPULAR NEWS

Latest From our blog

April 5 2025
BM

Kenyan court orders Umba to pay $21,600 over unfair dismissal of former executive

A Kenyan Employment and Labour Relations Court has ordered neobank Umba to pay KES 2.88 million ($21,600) in damages and legal costs for unfairly terminating former executive Alice Anyango Oduor, underscoring legal expectations for startups navigating employment laws in the East African country. The March 28 ruling found that Umba— which operates in Kenya and Nigeria—violated due process when it terminated Oduor’s contract in January 2023 during her six-month probation period. Oduor, who served as the company’s head of growth, was dismissed after just a few months in the role, allegedly for poor performance and inability to meet targets. According to court documents seen by TechCabal, Oduor claimed that no clear targets were set and that her performance was not formally evaluated. Oduor claimed she was dismissed via a WhatsApp call from the company’s CFO, without a formal meeting or written notice. Umba, through its lawyers, argued that it informed Oduor of her performance expectations and held several meetings to help her understand her job, including a December 20, 2022, meeting with the CFO. The company added that her termination resulted from performance issues, and informed her of the intended termination. However, the court determined that Umba failed to provide sufficient documentation to justify the dismissal and did not allow Oduor to respond to the allegations—an omission that rendered the termination unlawful, even though she was on probation. “The Respondent has not proved that it conducted a performance evaluation against the Claimant’s targets over a specified period of time prior to concluding that her performance was not as per its expectations, hence rendering her unfit for the company,” said Judge Stella Rutto, who presided over the case. The $21,600 compensation covers the equivalent of Oduor’s three months’ salary during her short stint at the company. The court also ordered Umba to issue a Certificate of Service within 30 days and to cover all legal costs. Umba did not immediately respond to a request for comments. Under Kenya’s Employment Act, employees on probation are still entitled to fair procedural treatment before termination, including being informed of performance concerns and being given a chance to respond. The court noted that probationary status does not exempt employers from these legal obligations.

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April 4 2025
BM

AI is boosting revenue, cutting cost for tech companies amid high inflation

When Kassy Olisakwe started Auroraweb3, a Nigerian company that builds decentralized solutions, websites, and applications for businesses, in 2020, his annual revenue was ₦114 million ($74,000). But since adopting Artificial Intelligence (AI) tools like Claude, Cursor, ChatGPT, Juro, and Perplexity, that figure has more than quadrupled to ₦481 million in six months and, by his projections, will likely double in the coming months. “By leveraging AI, my agency has significantly increased its productivity and output, enabling us to take on far more projects than before, without compromising on quality,” he told TechCabal. Olisakwe said his agency has also diversified into new verticals, including Web3 investments and the development of trading bots. “What used to require entire teams can now be managed efficiently by fewer individuals, allowing us to expand our service offerings, improve delivery times, and reach a broader client base.” He explained that depending on the scope of the project, it would typically require a team of four to six contract-based developers from the 34 currently on staff. However, since adopting AI, projects can now be “efficiently” managed with only two or three developers, and sometimes even just one developer with minimal external input. Fadé Adeniyi, co-founder of Techlerator, a tech-focused boutique recruitment startup operating in the UK and Nigeria, has also seen a rise in revenue since incorporating AI in its operations. “We have expanded our reach and scaled our business considerably, resulting in a revenue increase of over 65% in just four months,” she said. Using Llama, a language model, has enabled them to transition from training hundreds of students in individual classes to reaching over a thousand students simultaneously. “This scalability has not only accelerated our training processes but has also significantly increased our revenue compared to our previous instructor-led model,” Adeniyi said. AI is helping firms cut operation costs AI has transitioned from a futuristic concept to a tangible profit-generating tool that companies are leveraging to grow revenue, optimize costs, and elevate productivity amid high inflationary pressures. The release of OpenAI’s ChatGPT in November 2022 was a major turning point in the widespread adoption of AI across industries. According to Brad Lightcap, OpenAI’s Chief Operating Officer, ChatGPT had 400 million weekly users as at February 2025 from one million in November 2022. Apart from ChatGPT, other versions of AI chatbots and models from Google, Anthropic, Meta, and Baidu have also been released. These global companies have been competing for dominance in the generative AI space with each striving to release a superior product, leading to frequent updates that enhance user interaction and automating tasks. “AI has boosted our content production speed and volume, and enhanced our SEO efforts, generating additional revenue streams,” Ogugua Belonwu, CEO of Lagos-based recruitment agency MyJobMag Limited, said. Before using ChatGPT for his company’s content production in 2024, Belonwu had been paying content writers approximately ₦6 million ($3,904) per year. “Apart from generating content outlines, guides and streamlining content creation, AI also plays a role in the company’s SEO strategy as it leverages tools to identify target areas and optimize content,” he added. For Temi Babaola, CEO of Spitch, a Nigerian company that develops advanced text-to-speech and speech-to-text AI models, using AI has saved them up to 10% of his budget cost. “We are not just users of AI, but builders as well. Our developers utilize AI to build functionalities and streamline their workflow,” he said. According to Babaola, AI is integrated into every stage of product development, from ideation and road mapping to writing product requirement documents and task assignments. “Many of the tools we’ve adopted are AI-based, and their use is woven into our workflows.” As more businesses across industries adopt AI, the impact on GDP growth, job creation and productivity will become increasingly evident in many economies including Nigeria. A recent report by Google projects AI would increase Nigeria’s economy by $15 billion in 2030. The report estimates that every dollar invested in digital technology in the country generates over eight dollars in economic value, illustrating the high return on investment in the sector. Another report from GSM Association (GSMA), a non-profit trade association, sees AI adding $2.9 trillion to Africa’s GDP. The report added that Nigeria, a leader in African tech, has the potential to greatly benefit from AI solutions, especially in the energy, climate action, and agric sectors. AI-powered precision agriculture is already improving crop management while startups like ThriveAgric now employ AI in assessing the creditworthiness of farmers for input financing. Hello Tractor, another agtech startup, uses AI to connect tractor owners and smallholder farmers through an equipment sharing app. Could AI displace jobs, dampen creativity? With AI’s ability to automate repetitive tasks and the increasing number of companies adopting lean management structures, there are growing concerns that certain job roles will likely be fully automated by 2030. World Economic Forum (WEF) in January said 41% of employers intend to downsize their workforce while Bloomberg Intelligence projected that global banks are expected to cut as many as 200,000 jobs in the next three to five years. “AI hasn’t replaced our team, it has amplified them,” Olisakwe of Auroraweb3 said. “Our top-tier professionals now oversee multiple projects simultaneously, acting as strategic leads for mid-level and junior developers.” He stated that by hiring the best talent in their respective fields, he can avoid layoffs, leading to a more streamlined, agile, and high-performing organization. ‘This approach fosters sustainable growth while upholding technical proficiency.” MyJobMag is cautious about integrating AI to avoid staff cuts and maintain good relationships with its clients. “Employers will not like it if we use it too much,” Belonwu, the company’s CEO said. Mathew Munyao, founder of Attention Media, a Kenyan-based AI automation and marketing agency said as a creator, AI has sharpened his creativity. “I leverage tools like GRok 3 and ChatGPT for in-depth research and DeepThink for web exploration, enabling me to gather information quickly and efficiently. Furthermore, AI’s creative capabilities allow me to generate and animate images, compose music, and design websites

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April 4 2025
BM

Mafab misses Q1 5G rollout deadline despite December promises

Mafab Communications, the telecom operator that secured one of Nigeria’s $273 million 5G licenses in 2021, has again missed its self-imposed deadline to launch services. Despite promising in December to go live by the end of Q1 2025 in Kano and Abuja, Mafab has not deployed any of the 102 sites it said would support the launch, raising fresh questions about the company’s capacity to compete in Nigeria’s 5G market. Mafab’s delayed launch leaves the 5G market as a two-horse race between MTN Nigeria and Airtel Nigeria, leaving consumers with limited options and setting back the government’s ambitions to deepen broadband access. The latest delay follows a pattern of missed deadlines and public launch announcements without actual deployment, dating back to January 2023, when Mafab hosted launch events in Lagos and Abuja with no service delivery to follow. Originally expected to launch by August 2022, Mafab was granted a five-month extension by the Nigerian Communications Commission (NCC) after failing to obtain a Unified Access Service License (UASL)—a basic requirement for telecom operations. Two years later, the company still hasn’t rolled out 5G services. The NCC is growing increasingly impatient. According to one NCC source who asked not to be named as they are not authorised to speak to the media, Aminu Maida, NCC executive vice chairman (EVC), summoned Mafab officials in December 2024 and gave them an ultimatum: deploy soon or risk sanctions. It was after this meeting that Mafab promised to launch in Q1 2025, but the deadline has now passed without a single operational site. Mafab declined to comment on the missed deadline or its readiness to launch. “They have not been able to raise the funds required for the deployment,” Rotimi Akapo, partner and head of Telecommunication, Media and Technology (TMT) at Advocaat Law Practice. “Most of the equipment will have to be imported, and it’s very capital-intensive.” To get off the ground, Mafab must either lease infrastructure from tower providers like IHS Towers or American Tower Corporation, or build and manage its sites, depending on its deployment strategy. Both paths require long-term lease agreements, installation of 5G base stations, and a core network platform with a functioning billing and business support system. Even the most basic launch would be expensive. Industry estimates suggest that deploying 102 base stations could cost Mafab as much as $122 million in Nigeria, where the average cost per 5G site can reach $1.2 million, nearly 10 times what Chinese operators pay, thanks to larger economies of scale and domestic manufacturing. Mafab had hoped to skirt direct competition with incumbents by launching in underserved markets like Kano and Abuja. But that window is closing fast. MTN and Airtel began offering 5G in Kano in 2023, according to Abdulrasheed Hussain, Digital Media Manager at Premier Radio Kano. “Mafab is supposed to be launched here, but it hasn’t,” he said. “So far, we have MTN and Airtel 5G routers in Kano.” Mafab may pivot toward fixed wireless broadband—a cheaper alternative to mobile 5G that delivers high-speed internet to homes and businesses. MTN and Airtel already use this model to expand reach. Still, fixed broadband requires significant investment in fiber or wireless backhaul infrastructure to deliver reliable speeds. “Mafab faces two major hurdles,” said an investment expert who asked not to be named. “First, investors are hesitant to back an unproven company with no track record. Second, Nigeria’s forex crisis makes it difficult for foreign investors to bring in capital. Domestic investors alone may not be able to fund this scale of investment.” The window for Mafab to prove itself is rapidly closing as failure to launch might eventually lead to NCC withdrawing the licence. Without sufficient funding and infrastructure, the company risks being left behind in Nigeria’s 5G race, further solidifying MTN and Airtel’s duopoly. Whether Mafab can overcome these challenges and finally deliver on its promise remains an open question—but for now, skepticism is at an all-time high.

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