Carrot Credit raises $4.2 million seed to scale crypto- and stock-backed lending in Africa
Carrot Credit, a Nigerian fintech that offers loans backed by digital investment assets like stocks, ETFs, and crypto, has raised $4.2 million in seed funding. The fintech will use the funding to scale its credit infrastructure across Africa, expand its team, and deepen integrations with digital investment platforms. MaC Venture Capital led the round, with participation from Partech Africa and Authentic Ventures. Launched in 2023 by Bolu Aiki-Raji, Carrot Credit is a digital lending platform that allows retail investors to borrow money using investment assets—like stocks, ETFs, bonds, or cryptocurrencies—as collateral, without having to sell them or go through traditional credit checks. Through API connections, the fintech verifies users’ asset positions and places a lien on them, allowing users to draw down a percentage—up to 40% for stocks and as high as 70% for fixed-income assets—without liquidating. If a user has a portfolio of relatively stable stocks worth ₦1 million, Carrot can let them borrow up to 40% (₦400,000). For volatile stocks, Carrot offers a credit line of up to 10% of the portfolio and up to 70% for fixed-income assets like government bonds and treasury bills. “People were investing in all types of things—stocks, crypto, fixed income—but many didn’t recognize those investments as worth anything. That was the initial idea: why can’t this be collateral?” said Boluwatife Aiki-Raji, CEO and co-founder of Carrot. The company says it charges below-market average interest rates and offers flexible loan repayments. Users can opt for a fixed loan repayment (6 months, 3 months, or 12 months) or pay back monthly at their preferred timeframe. Carrot’s approach to lending on the continent has been popularised by global firms such as BlockFi and Robinhood. However, the model’s appeal is yet to catch on in Africa. Aiki-Raji says Carrot hopes to make the approach more accessible to retail investors across the continent. The startup’s embedded B2B2C model targets fintechs, brokerages, and digital wealth managers across Africa. The company, which generates revenue from the interest charged on its loans, says it has already processed over $2 million in loans and serves over 10,000 users. “Everyone writes a deck claiming a trillion-dollar market,” said Aiki-Raji. “I’d rather define our market as anyone who can put money aside in digital assets—that’s who we’re building for. That includes everyday investors.” The business competes with other digital lenders—Sycamore, Carbon, FairMoney, Aella Credit—across Nigeria, but claims its flexible repayment options and below-market interest rates further differentiate it from Nigeria’s crowded field of digital lenders, where most competitors focus on short-term credit rather than asset-backed lending. “What excites me about this investment is how Carrot is leveraging digital assets to create a seamless, low-barrier credit solution in markets where credit has traditionally been out of reach,” said Marlon Nichols, co-founder and partner of MaC Venture Capital. Carrot is among the first few startups offering an alternative lending model on the continent. As embedded finance gains traction in Africa, Carrot’s approach could expand access to credit for a new generation of digital investors and financial platforms.
Read MoreKenyan BNPL startup Watu profits drop 85% to $1.2 million as loan defaults rise
Watu Holdings, a Kenyan buy-now-pay-later startup, reported a sharp 84% drop in profit to $1.2 million (KES157 million) in 2024, according to disclosures by Car & General, which holds a 29% stake in the business. The decline from $7.6 million (KES985 million) a year earlier points to rising loan defaults and deteriorating repayment behaviour in Watu’s core markets of Kenya, Uganda, and Sierra Leone. Watu has built its model around lending to informal transport operators and other low-income earners, primarily boda boda riders, who lack access to formal credit. While that has helped it scale quickly, the business has become exposed to income shocks, currency swings, and competition from rivals like M-KOPA, Aspira, and Ampersand. Watu has five main product lines, anchored by its core motorcycle lending unit, Watu Boda, which finances two- and three-wheelers. It also offers mobile phone loans under Watu Simu, car financing through Watu Gari, and school fee loans via Watu Shule. More recently, the company entered the electric vehicle space, a small but growing segment to capture early demand for clean transport. However, the downturn was not uniform across markets. In Tanzania, where Watu operates through a separate subsidiary, Watu Tuu Limited, profits nearly doubled to $5 million (KSh650 million)—up 93% from the previous year. The company did not break down performance by market, but it signals favourable conditions in Tanzania. The startup is one of several non-bank lenders that have moved aggressively into asset-backed microcredit across East Africa in recent years. But as borrowing costs rise and repayment stress grows, the limits of the model are starting to show, particularly in Kenya, where informal sector incomes remain under pressure. Car & General, a Nairobi Securities Exchange-listed company that assembles and distributes motorcycles in the region, is a major beneficiary of Watu’s demand, and the lender’s performance has increasingly featured in its earnings reports. Watu remains privately held and does not publish standalone financial statements. Founded in 2015 by Andris Kaneps, a Latvian national, Watu has raised over $20 million across five rounds led by FMO, Gateway Partners, Verdant Capital, and AHL Venture Partners. Its latest funding round was a Series B round in February 2024. It is among the few startups in Kenya that have achieved consistent profitability.
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FX gains are drying up, and so are Nigerian banks’ profit margins
Nigerian banks are entering a phase of slower profit growth in 2025, as the windfalls from naira devaluation and aggressive interest rate hikes begin to fade. With foreign exchange (FX) gains normalising and credit expansion still weak, the sector’s once-robust earnings momentum is showing signs of fatigue. According to data from the Nigerian Exchange Limited (NGX), the combined after-tax profit of nine major commercial banks—Zenith Bank Plc, Guaranty Trust Holding Company (GTCO) Plc, First Holdco Plc, Access Holdings Plc, United Bank for Africa (UBA) Plc, Fidelity Bank Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, and FCMB Group Plc—rose slightly by 0.74% to ₦1.35 trillion ($847.3 million) in Q1 2025. This is a stark contrast to the 274.3% profit growth recorded in Q1 2024. Much of the record earnings last year were fueled by the federal government reform—such as the two rounds of naira devaluation in July 2023 and January 2024, and a sharp increase in interest income driven by the Central Bank of Nigeria’s (CBN) aggressive monetary tightening. The Monetary Policy Rate (MPR) rose by 875 basis points to 27.50% between July 2023 and May 2025. Now, as profit growth slows, analysts warn that underlying weaknesses in traditional banking functions—such as mobilising deposits, issuing loans, processing payments, and earning stable interest and fee income—are beginning to surface. “The era of abnormal profit growth for the banks is over,” said Tony Brown, an Abuja-based banking analyst. “In the last two years, profits were driven by external shocks. This year, we’re seeing a return to more organic and sustainable earnings patterns.” Still, some growth is expected. Mobifoluwa Adesina, an investment research analyst at Afrinvest West Africa Limited, projects after-tax profit growth of 30% to 40% for banks in 2025, although slower than in previous years. “We don’t expect any rate cuts until the second half of 2025, and we forecast that the MPR will remain above 26% by year-end,” he said. “Also, with the naira recording only a 4.3% depreciation year-to-date, FX gains won’t match the scale we saw in 2024.” Flattening income lines The moderation in earnings is already evident in Q1 results. FX revaluation gains—one of the key drivers of 2024 profits—have reduced from previous high levels following relative stability in the naira. Data from the CBN shows the average official exchange rate rose to ₦1,450/$ in 2024 from ₦645.10/$ in 2023. Since January 2025, the naira has traded within the ₦1,500–₦1,600/$ range. “Volatility in the exchange rate has dropped significantly—from over four percent a year ago to less than half of one percent now,” CBN Governor Olayemi Cardoso said at the 300th Monetary Policy Committee (MPC) meeting on May 20. As a result, combined FX revaluation gains for Zenith, GTCO, Access, UBA, Fidelity, and FCMB declined to ₦240.7 billion ($150.6 million) in Q1 2025 from ₦2.58 trillion ($1.6 billion) in 2024 and ₦723.9 billion ($453.8 million) in 2023. Also, the MPR—held steady at 27.50% in May—has begun to squeeze interest income growth. The nine banks posted interest income growth of 52.7% in Q1 2025, down from a blistering 137.4% in the same period last year. “The trend of high interest income is expected to plateau this year with the CBN maintaining current rates,” said Ola A., a Lagos-based banking analyst. Traditional drivers reemerge Before the FX reforms and interest rate shocks, banks relied more heavily on core revenue sources: fee and commission income from electronic transactions, account maintenance fees, and trade finance. In earlier years of lower interest rates, banks also enjoyed low-cost funding—particularly through current and savings accounts (CASA)—which helped sustain healthy net interest margins. These margins, defined as the difference between interest income earned on loans and investments versus interest paid on deposits relative to total earning assets, were a bedrock of profitability. Concerns on IT spend With profit growth slowing, concerns are emerging about potential cutbacks in capital and operational expenditures, especially around technology investments. This comes at a time when competition from fintechs and telco-backed digital banks is intensifying. Of the nine banks analysed, only GTCO and First Holdco reported profit declines of 45% and 22%, respectively, in Q1 2025. While First Holdco did not disclose its IT spending, GTCO reported a year-on-year drop in technology investment to ₦12.8 billion from ₦14.4 billion. GTCO did not respond to a request for comment. However, Brown emphasised that technology remains a core expenditure for banks. “The banks’ whole service structure depends on it. Whether you are raking in billions or not, IT expenditure determines profit growth,” he said. Cautious outlook With no major currency shocks or further rate hikes on the horizon, banks face a year of moderate returns and sharper cost discipline. While strong capital buffers and diversified income lines offer some resilience, the shift to a normalised earnings environment will test how well banks can adapt. For now, the days of record-breaking profit declarations may be over. The focus is shifting to how banks can maintain relevance and competitive strength in an environment of normalised earnings and growing digital competition.
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👨🏿🚀TechCabal Daily – Starlink can’t keep up in Kenya
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy pre-TGIF! How has the week been for you? Emmanuel was supposed to write this intro, but after his team’s performance last night, he went off to bed early. The lesson here? Some clubs build character; others break your spirit. Anyway, while some folks were losing games, Sam Altman and Jony Ive were teaming up to create a first-of-its-kind AI device. It’s like nothing you’ve ever seen before. For some context, Jony Ive played a pivotal role in creating some of Apple’s devices (including the MacBook Pro and iPhone), and he says this is his best work yet. It’s definitely something to look forward to. Let’s get into today’s newsletter. – Faith Tanzania has blocked access to social media Safaricom launches two new loan products on M-Pesa Starlink’s Nairobi freeze MTN launches MoMo Pay World Wide Web 3 Events Internet Tanzania has blocked access to social media to curb misinformation President Samia Suluhu of Tanzania. IMAGE | IKULU. Tanzania has blocked access to X (formerly Twitter) after the country’s police account was hacked and used to falsely announce the death of President Samia Suluhu Hassan. Rather than clarifying the situation through official communication, authorities chose to restrict access to the platform entirely. Tanzania has cut off internet or social media four times since 2017, including during the 2020 election. Digital shutdowns—whether full blackouts or targeted platform bans—have become common responses to political unrest, elections, and, increasingly, efforts to control public narratives. In 2024, the continent saw a record 21 shutdowns across 15 countries. Some shutdowns, like Sudan’s during conflict or Ethiopia’s in regions like Tigray and Amhara, are linked to ongoing violence. Kenya, too, has previously banned Telegram during national exams as it alleged that the exam papers leaked on the platform; Uganda also banned Facebook for four years, citing political interference. Governments often claim they’re protecting national security or stopping misinformation. But many observers believe the real reason is to control information. These shutdowns are now used to silence dissent, prevent protests, and avoid scrutiny. The impact goes far beyond politics—businesses suffer, essential services are cut off, and public trust takes a hit. In 2024 alone, Africa lost an estimated $1.5 billion due to internet disruptions. Zoom out: Tanzania’s social media block this week is more than a reaction to a hack. It’s the continuation of a regional pattern where restricting access to the internet is no longer the exception—but increasingly the rule. Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. 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Fuliza Biashara and Taasi Till: The telecom company has launched Fuliza Biashara, an overdraft facility, and Taasi Till, a short-term loan, offering credit of up to $3,089 (KES 400,000) directly through its mobile money app, M-PESA. It’s a move that reflects not just Safaricom’s growth strategy, but a wider shift in how Africa’s most influential telcos are positioning themselves in financial services. For Kenya’s 7.4 million small
Read MoreDevOps engineer, Osinachi Ibiam-Uro, is a mom in tech, and she is loving it here
Osinachi Ibiam-Uro vividly remembers the sting of her manager’s words in 2009. At Oceanic Bank, then on the brink of insolvency, she was dismissed as “unfit for a client’s spec.” The immense pressure from the bank’s upper echelons, cascading down to account managers scrambling to meet high deposit targets, created an environment where the sexual innuendo in her manager’s message was unmistakable. She recalls weeping on New Year’s Eve, devastated by the loss of her first real job after graduation. Yet, sixteen years later, reflecting on that moment, Ibiam-Uro marvels at her despair. Her life has since transformed. She is now a DevOps engineer for Nethermind, a blockchain research and software engineering company. What began as a three-month DevOps internship in 2023 soon became permanent within a month, earned through sheer merit after her optimisations drastically reduced the monthly cloud bill by about 30%. A career shift after a difficult start A bright smile lights up Ibiam-Uro’s face as I join our virtual call, a few minutes behind schedule. We exchange apologies; I for my tardiness, and she, in advance, for splitting her attention between our chat and a work Slack that’ll demand her vigilance. It is immediately obvious to me that Ibiam-Uro is used to juggling several things: family, work as a DevOps engineer, and herself. Her routine starts at 5 a.m., when she meal preps, and drops off her two kids at school, often a 10-15 minute walk from home. By 9 a.m., she’s logged into Slack, immersed in work, which often stretches into nighttime. In between, she takes on the duty of caring for her family when they return home. She is almost grinning as she recounts her never-ending list of responsibilities, a life many women in the workforce who are their families’ primary homemakers would recognise. Despite its many challenges, Ibiam-Uro isn’t just coping; she’s thriving, having allowed herself to look past the societal limits imposed by motherhood when she first pivoted into tech. Ibiam-Uro studied civil engineering at the Federal University of Technology, Owerri, and ended up in the banking sector during her National Youth Service Corps (NYSC) year. Her employer, Oceanic Bank, seemed a promising start for a recent graduate. Ibiam-Uro found herself in the marketing division of Oceanic Bank, an institution that had, just two years prior, closed its 2006 financial year as Nigeria’s third most profitable bank, offering investors a remarkable 143 per cent return on investment in 2007. She recalls taking trips to the marketplace to convince business owners to open Oceanic bank accounts and deposit their money there. By 2008, the ground had shifted dramatically as the global financial crisis, triggered by the U.S. housing bubble’s collapse, began its seismic tremors across the world. While Nigerian banks initially appeared resilient, their deep exposure to the capital market and the volatile oil and gas sector soon proved their undoing. Share prices plummeted, wiping out vast investor wealth. By mid-January 2009, Nigeria’s market capitalisation had plummeted from a high of ₦13.5 trillion in March 2008 to less than ₦4.6 trillion. This systemic collapse was exacerbated by significant internal woes at Oceanic, which faced financial difficulties and allegations of mismanagement. As the threat of insolvency loomed, pressure to increase deposits intensified, leading to new management pushing for unrealistic goals and encouraging unethical measures. Traumatised but resolute, she left the banking sector. The following decade saw her transition into quality assurance, working alongside engineers at industry giants like Total, a leading energy multinational, and Julius Berger, a top construction firm. She trained as an inspection engineer, embracing quality management roles on landmark projects such as the Lekki-Ikoyi Link Bridge and the global Egina Project—one of the world’s most ambitious deep-water projects. Ibiam-Uro says the job—managing quality surveillance across five continents, identifying operational bottlenecks, and proposing crucial procedural updates—honed her expertise. However, the COVID-19 pandemic brought another seismic shift: refinery demand plummeted, and investors redirected funds. Ibiam-Uro’s professional focus, once again, began to shift. Locking in during the lockdown The pandemic spurred a demand for tech professionals, encouraged by widespread remote work. This unlocked in her a latent curiosity about software and tech skills, she said. She began learning web analytics, how to trace visitor activity on websites. Sharing her progress online led her brother-in-law to recommend an online bootcamp that showed her how to use the AWS console. She earned an AWS Cloud Practitioner certification, designed for individuals new to cloud computing or those in non-technical roles who need a basic understanding of AWS services, security, compliance, and pricing. Next, she applied for a virtual master’s program in Computer Science from the University of East London—most of the fees were covered by a scholarship. During her master’s, she discovered AltSchool, an edtech platform that ran bootcamp-like tech trainings. While her master’s felt a natural fit, the idea of virtual training alongside younger peers at AltSchool seemed daunting. It took an advert to convince her otherwise. “The campaign showcasing an older woman saying that it was not too late to learn anything new, convinced me. I was one of the first cohorts for the cloud training.” The program was notably affordable, initially allowing students to pay an application fee and settle tuition in instalments after securing jobs. “They stopped doing that and started asking for upfront payment after my cohort, though,” she said. She also describes the training as one of the darkest periods of her life because of how intense the learning track was, the students were up to their eyeballs in assignments and projects, she recalled. She had to juggle all that with caring for her kids. “Sometimes I woke up feeling in a sour mood because I just did not get enough sleep.” The realities of work-life balance Ibiam-Uro pulled through the tough training and now works as a DevOps engineer at Nethermind, a blockchain research and software engineering company. She began as an intern in a remote position, paid $6.25 per hour. “We had a dashboard that showed explicitly progress
Read MoreSix months on, Starlink still can’t serve new customers in Nairobi
Starlink, the SpaceX-owned satellite internet service, has been unable to onboard new customers in Nairobi since demand exceeded its network capacity in November 2024. Six months later, the freeze is still in effect, leaving users who bought hardware without service. This growing problem raises doubts about whether satellite broadband can keep pace with demand in dense urban areas. It also signals a mismatch between Starlink’s promise of reliable high-speed internet and the technical and operational limits of satellite networks in rapidly growing markets. “If we just kept letting people sign up, it would degrade everybody’s service,” Lauren Dreyer, VP Starlink Business, told CNN’s Africa correspondent Larry Madowo in February, when asked why the company paused sign-ups in Nairobi. At least ten customers in Nairobi told TechCabal they’ve been locked out since late last year, despite buying kits to use Starlink internet services. “I was put on a waitlist months ago,” Eric Maina, a civil engineer in Nairobi, told TechCabal. “I was told that Starlink is over capacity in Nairobi and isn’t accepting new users.” A spot check in nearby counties, including Kiambu, Machakos, Kajiado, and Murang’a, found the same problem. Several residents have failed to activate their kits because the network is “full” in their areas. Starlink did not immediately respond to a request for comments. The issue isn’t new in satellite internet: capacity depends on satellite coverage and ground support infrastructure. Starlink added a ground station in Nairobi that went live in January 2025, a move expected to improve speed and reduce latency in the region. But the congestion hasn’t eased so far, and new users still can’t get online. And while Starlink has ramped up launches—it had 7,135 satellites in orbit by March 2025—demand in Kenya is outpacing what the system can handle. “I want to install Starlink at my parents’ house, but I cannot because the area is full or locked,” said Isaac Migiro, another customer in Nairobi. Despite the growing user base, Starlink does not have a local office in Kenya where customers can get updates or support. Communication is limited to online channels, leaving frustrated users with few options when facing delays or activation issues. Resellers and local hardware suppliers stocking Starlink kits are also feeling the heat. Another spot check by TechCabal found that some supermarket chains such as Carrefour have reduced or cut the sale of the kits. Others, including Naivas, have started offering Safaricom 5G routers, which target the same customer base Starlink is chasing. “They’re not moving that fast,” Dr. Kanyuira, who runs Essential Accessories, an online electronics shop in Nairobi, told TechCabal. “Sales peaked between June and July last year, but that could change if more capacity becomes available.” Starlink could also be subject to regulatory pressure in Kenya, which plans to raise satellite internet licence fees from $12,302 to $115,331 and add a 0.4% turnover levy, a move that could squeeze out smaller satellite ISPs such as Viasat and NTvsat. Recent data from internet analytics firm Ookla showed that users in countries like Botswana recorded median download speeds above 100 Mbps in early 2025. Rwanda and Ghana followed closely with over 75 Mbps. In Kenya, speeds hovered just below 50 Mbps, still more than double most local fibre providers, but well behind the regional leaders. A full Starlink setup in Kenya costs around KES 30,000 ($232) for hardware and KES 6,500 ($50) monthly for its fastest plan. That’s pricier than local fibre-to-home packages, which go for KES 3,500 ($27) to KES 5,000 ($39) monthly for 10–30 Mbps, depending on the ISP. But most fibre providers don’t serve remote or peri-urban areas where Starlink is supposed to thrive. By December 2024, Starlink had 19,146 active users in Kenya, up from 16,786 in September, a 14% jump in three months. That growth made it the seventh-largest internet service provider in the country and pushed it past established players like Liquid Telecom. But new growth may be hitting a wall. A network engineer at one of Kenya’s top telcos, who asked not to be named, told TechCabal the congestion could slow Starlink’s African expansion, especially in urban markets, where it’s gaining more users than in its intended rural base. For now, hundreds or thousands of would-be customers remain stuck, waiting for a service that’s already in their hands but still out of reach.
Read MoreOmniRetail raised $20 million. Here is what it means for 78% of its customers who are women
Joyce Moses, owner of a modest corner shop, faced the daily grind of sourcing everyday necessities like sachet beverages, grains, and toiletries from a multitude of vendors. It was a laborious process: endless phone calls to confirm stock, tiresome trips to various suppliers, and unexpected price hikes. She says things changed in 2022 when she started using OmniRetail, an app which connected her to hundreds of manufacturers and distributors. Now, Moses orders directly, bypassing layers of suppliers and their markups, at lower prices. The platform allows her to compare costs across brands, tailoring purchases to her budget. When cash is tight, she can buy on credit, a crucial financial tool she likely wouldn’t have accessed through traditional lenders due to her limited credit history and systemic biases. What’s more, the goods arrive at her doorstep the next day. OmniRetail, recently ranked Africa’s fastest-growing company, recently secured $20 million in funding. While this capital will fuel the company’s rapid growth, the biggest impact will be seen by women like Moses, who represent 78% of OmniRetail’s customer base. Buy now, pay later (BNPL) OmniRetail is one of several start-ups connecting retailers to manufacturers, and providing access to capital, the lack of which has been a persistent challenge, especially for women in Africa’s informal retail sector. Women are less likely than men to secure loans due to limited credit histories and systemic biases in traditional banking. Many rely on predatory money lenders with exorbitant interest rates or face outright rejection from banks. An African Development Bank Group report also claims that women do not apply for loans because they have a low estimation of their creditworthiness. Buy Now, Pay Later (BNPL) services offered by e-commerce startups like OmniRetail offer collateral-free credit based on retailers’ order history and transaction behaviour. This allows traders to stock up without upfront cash, ensuring continuity in sales and income. Get the best African tech newsletters in your inbox Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Bouvet Island Brazil British Antarctic Territory British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Canton and Enderbury Islands Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos [Keeling] Islands Colombia Comoros Congo – Brazzaville Congo – Kinshasa Cook Islands Costa Rica Croatia Cuba Cyprus Czech Republic Côte d’Ivoire Denmark Djibouti Dominica Dominican Republic Dronning Maud Land East Germany Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories French Southern and Antarctic Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Honduras Hong Kong SAR China Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Johnston Island Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau SAR China Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Metropolitan France Mexico Micronesia Midway Islands Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar [Burma] Namibia Nauru Nepal Netherlands Netherlands Antilles Neutral Zone New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island North Korea North Vietnam Northern Mariana Islands Norway Oman Pacific Islands Trust Territory Pakistan Palau Palestinian Territories Panama Panama Canal Zone Papua New Guinea Paraguay People’s Democratic Republic of Yemen Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Réunion Saint Barthélemy Saint Helena Saint Kitts and Nevis Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Korea Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syria São Tomé and Príncipe Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu U.S. Minor Outlying Islands U.S. Miscellaneous Pacific Islands U.S. Virgin Islands Uganda Ukraine Union of Soviet Socialist Republics United Arab Emirates United Kingdom United States Unknown or Invalid Region Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Wake Island Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Åland Islands ?> Gender Male Female Others TC Daily Events TC Scoop <!– Next Wave –> <!– Entering Tech –> Subscribe Currently, over 60% of OmniRetail’s BNPL users are women, and they demonstrate strong repayment discipline, the company said in an email. The women contribute to the platform’s remarkably low non-performing loan rate of less than 0.5%. By providing access to working capital, OmniRetail enables women retailers to bridge cash flow gaps, particularly after covering household expenses, and maintain razor-thin margins in an economy plagued by currency devaluation and inflation. “We’ve seen countless women micro-retailers in our network grow from operating a single kiosk to managing multiple outlets, or even moving up the value chain to become distributors,” the company said. “These are not isolated stories; they reflect a broader trend when the right tools and support systems are in place.” Investors in the sector have expressly described venture investment in start-ups as an investment in women. TradeDepot, a start-up that offers the same services as OmniRetail, raised $10 million in 2020. The company, at the time, claimed that 75% of the retailers on its platform were women. Hanh Nam Nguyen, a programme manager at Women Entrepreneurs Finance Initiative, one of the firms involved in the fundraising, described the investment as an opportunity to “catalyse more private capital for women.” Scaling impact with $20 million OmniRetail’s $20 million raise will enable the company to reach more women as it expands to more cities, establishes additional distribution hubs, broadens product assortments, and scales its credit and payment infrastructure. The company says it aims to enhance its data
Read MoreSafaricom targets SMEs with new M-PESA overdrafts and loans up to $3,000
Kenya’s biggest telco, Safaricom, has launched new credit products for small and medium-sized enterprises (SMEs), introducing overdraft and short-term loans through its M-PESA platform with limits reaching $3,089 (KES400,000). The new products signal the telecom giant’s increasing focus on financial services as growth in its core voice and data business slows. The new products include Fuliza Biashara, an overdraft facility allowing M-PESA merchants to draw funds from $7.72 (KES 1,000) up to $3089, and Taasi Till, a short-term loan product ranging from $11.59 (KES 1,500) to $1,931 (KES 250,000). Both services offer flexible repayment terms, with funds credited directly to users’ M-PESA wallets or tills, making them instantly accessible. The expansion is part of Safaricom’s strategy to diversify beyond its traditional telecom business, which faces slowing revenue growth. With revenues from traditional telecom services under pressure, the company is leveraging M-PESA—its mobile money platform with over 40 million users—to generate new revenue streams through lending, payments, and other fintech services. “Businesses play a pivotal role in Kenya’s economy and make a significant impact in our communities,” Safaricom CEO Peter Ndegwa said on Tuesday at the launch. “Leveraging the power of technology, Taasi will offer convenience and access to credit for MSMEs, allowing them to focus on scaling their businesses.” Safaricom is keen to tap into the over 30 million active users who transact over $11.6 billion (KES1.5 trillion) monthly to grow its financial services, including savings, unit trusts, and insurance products, to offset a decline in calls and text revenue. In 2024, M-PESA accounted for 44% of the $2.8 billion (KES 364.3 billion) service revenue after posting a 15.2% growth to $1.2 billion (KES 161.1 billion), compared to a similar period. The telco will be hoping to replicate the success of Fuliza for individual loans, which averages $19.3 million (KES2.5 billion) daily disbursements, earning it an estimated $46.4 million (KES6 billion).
Read MoreMTN enters payments market with MoMo Pay targeting cash-heavy informal sector
MTN South Africa has entered the competitive payments market with MoMo Pay, a low-cost digital payment platform designed for informal merchants. Over 95% of transactions in South Africa’s informal sector are still cash-based, exposing traders to theft, limiting access to credit, and excluding millions from the formal economy. MTN says MoMo Pay is a response to this gap. “We are not just digitising payments, we are unblocking a pathway to financial dignity and scalable opportunity,” said Kagiso Mothibi, fintech CEO at MTN South Africa. MTN’s push comes as South Africa’s banks have already invested heavily in digitisation, and fintech startups like Yoco and iKhokha are also vying for a share of the payments market. Social media giants and rival telecom operators are entering the fray, intensifying competition. MTN’s edge lies in its established mobile network, a rapidly growing user base—now at 13 million registered MoMo users in South Africa—and its focus on low-cost, high-access solutions. MoMo Pay allows merchants to accept instant payments via QR code, merchant ID, or payment request, at a minimal fee of just 0.5% – significantly lower than most existing services. The platform also enables users to sell airtime, prepaid electricity, and transport tickets, earning commission with each transaction. MoMo Pay removes traditional barriers to entry – no paperwork, no registration fee, and a mobile-first experience. “Just a smartphone and a vision to grow,” said Mothibi. MTN has already onboarded thousands of merchants, with rapid adoption seen in townships, rural communities, and high-footfall urban areas. A dedicated merchant acquisition team supports onboarding and training. MTN has outlined an ambitious roadmap for MoMo Pay, positioning it as the foundation of a broader digital financial ecosystem aimed at integrating informal businesses into the formal economy. Beyond facilitating low-cost digital transactions, the platform is expected to evolve to include services such as access to microloans, savings products, and insurance—tools that are typically out of reach for many informal traders. According to Mothibi, the company views informal merchants as critical nodes within their communities. “We see MoMo Pay merchants not just as sellers, but as community hubs,” he said, noting the potential for the platform to enhance economic participation through accessible financial services. Over the next three to five years, MTN plans to digitise a significant portion of the informal sector by onboarding hundreds of thousands of small businesses. This expansion strategy is aimed at addressing long-standing barriers to financial inclusion and creating pathways for micro-enterprises to access formal financial infrastructure. “MoMo Pay represents a strategic step in enabling digital participation for informal traders,” Mothibi said. “The objective is to support sustainable growth at the grassroots level, where traditional financial services often do not reach.
Read More9mobile, MTN worst hit as fibre cuts, power failures cause record network outages in May
Nigeria’s telecommunications networks experienced a sharp rise in major service disruptions in May 2025, as fibre cuts, power outages, and system failures pushed network outages to their highest point this year. According to data compiled by Uptime, a network monitoring platform, the worst-hit operators were 9mobile and MTN Nigeria, raising concerns about the quality of telecom services in Africa’s largest mobile market. From January 1 to May 19, 2025, 9mobile reported 31 major outages across several states, followed by MTN Nigeria with 25. Approximately 70% of these incidents were traced to fibre cuts caused by roadworks or vandalism. The resulting downtime severely impacted core services, leaving millions of subscribers offline. While all major mobile network operators (MNOs) experienced outages—Globacom had 20 and Airtel 13—9mobile not only faced the highest number of incidents but also recorded the longest service restoration times. These major outages often result in the complete shutdown of critical services such as SMS, voice calls, mobile data, and USSD, sometimes lasting for hours. While less severe incidents occur more frequently, they can still degrade service quality depending on their scope. In an earlier interview with TechCabal, Yahaya Ibrahim, Chief Technical Officer at MTN Nigeria, disclosed that the network handles up to 30 such incidents daily. When disruptions occur, operators typically reroute traffic—if the fibre cut is not on a major line—before dispatching engineers to identify and fix the issue. However, cuts to major fibre routes, once infrequent, have become increasingly common this year. Network outages in Nigeria are more frequent and prolonged than in many African peers, largely due to infrastructure gaps, power instability, and regulatory hurdles. In contrast, countries like South Africa and Kenya have more resilient networks, backed by stronger infrastructure and faster incident response systems. For example, in urban areas like Johannesburg and Pretoria, businesses can expect emergency WiFi support response times ranging from 35 to 80 minutes, while rural areas may experience longer response times of 80 to 240 minutes. The growing frequency of outages in Nigeria directly impacts customer experience and business operations of telecom subscribers. In a digital economy increasingly reliant on stable connectivity, extended downtime doesn’t just mean missed calls; it disrupts banking, business communications, logistics, emergency services, and access to basic information. Many of these outages, according to Uptime, were triggered by fibre cuts—often due to construction work—as well as grid instability and vandalism. For instance, on May 14, 9mobile suffered one of its worst outages when power issues crippled its network across Lagos, affecting multiple local governments including Agege, Eti-Osa, and Apapa. The blackout lasted over 8 hours. Just days earlier, a fibre cut disrupted 9mobile’s data services in the FCT, Kano, Jigawa, Katsina, and other northern states for nearly 3 hours. In another severe case, a power outage that began on April 29 in parts of Kebbi and Sokoto wasn’t resolved until May 14—more than 15 days later—after 7,000 litres of diesel were delivered to the affected base stations. While all operators faced technical challenges, there was a stark difference in how quickly these issues were addressed. MTN, despite its high outage count, generally resolved incidents faster than its peers, according to resolution hours tracked by Uptime. One example: a fibre cut in Bayelsa and Rivers on May 11 that affected data, voice, and SMS services was fixed within just over an hour, the Uptime report showed. The longest turnaround time for MTN was a fibre cut incident in Benue that affected 12 communities and took the telco 3 hours and 12 minutes to resolve. In contrast, 9mobile’s outages—especially those involving power supply—tended to linger much longer, like the Lagos power failure on May 14, which lasted over 8 hours, suggesting slower crisis response and weaker infrastructure redundancy. MTN also faced non-technical challenges. In April, the Kogi State government, through its Utility Infrastructure Management and Compliance Agency (KUIMCA), sealed 16 MTN sites, cutting off access to 155 additional connected sites. This standoff, which lasted nearly 23 days, was only resolved in early May after negotiations, highlighting the regulatory and political risks telcos face beyond technical failures. In response to the mounting service challenges, MTN Nigeria is ramping up its infrastructure investments. The company has committed ₦800 billion for network improvements in 2025, with ₦200 billion already spent in the first quarter alone, marking a 159% increase compared to the same period last year. Ugonwa Nwoye, MTN Nigeria’s Chief Customer and Experience Officer, said in a statement to TechCabal that the investment aims to “translate this into better customer experience, reduced congestion, faster internet speeds, and wider network reach.” Part of this strategy includes deploying motorcycles to help engineers navigate heavy traffic in urban centres like Lagos, allowing them to reach incident sites more quickly. These motorcycles are also used for daily fibre cable inspections, enabling early detection and resolution of issues before they escalate into service disruptions. However, the surge in outages and uneven restoration times raises broader concerns about the reliability of telecom services. For many Nigerians—over 140 million of whom rely on mobile networks for internet access—telecom infrastructure is essential to daily life, powering financial services, education, entertainment, and healthcare. When networks fail, trust in service providers erodes quickly. 9mobile’s performance is particularly concerning. With a dwindling subscriber base—down to 2.96 million as of March 2025 from over 20 million in 2015—the operator is under intense pressure to rebuild credibility. Frequent outages and prolonged service restoration only exacerbate customer dissatisfaction and hinder any potential recovery. As Nigeria advances its digital inclusion goals and seeks to expand broadband access, the strength and reliability of its telecom infrastructure become even more critical. While the Nigerian Communications Commission (NCC) has licensed over 40 Mobile Virtual Network Operators (MVNOs) to enhance competition, lower costs, and spur innovation, the success of these new entrants depends heavily on the resilience of the underlying networks provided by the incumbent MNOs.
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