To make health tech truly work for African pharmacies, these five things need to happen
This article was contributed by Damilola Adelekan, lead product manager at Remedial Health Solutions. Last year, at a small pharmacy in Lagos, I watched the owner scramble to communicate with multiple WhatsApp messages from suppliers while scanning his shelves for medicines past their expiry dates. In that moment, my decision to work in health tech couldn’t be any clearer: inefficient and risky pharmaceutical supply chains and poor inventory management either as a result of understaffing or nonchalance, could benefit from technology solutions. So far, it has. Several startups have launched in the past few years to aid in inventory management for pharmacies across the continent. But, tech alone won’t fix faulty pharmaceutical supply chains. Easing bottlenecks In Africa’s $26.85 billion pharmaceutical market, problems of fragmentation, counterfeits, and last-mile delivery persist. The conventional approach to drug distribution, with its numerous intermediaries and muddled-up supply chain, remains insufficient to meet increasing healthcare needs on the continent. Nevertheless, the emergence of various health tech solutions is painting a new picture. In Nigeria, companies like DrugStoc, LifeStore, and Remedial Health Solutions, where I am currently the lead product manager, are revolutionising pharmaceutical procurement. These are not just ordering apps; they are creating an entire supply chain of manufacturers and healthcare providers. I have talked to dozens of pharmacy owners who say they have cut their stockouts by 40% and their costs by a quarter using these platforms. I am in awe of the work being done in East Africa by Maisha Meds and MEDS (Mission for Essential Drugs and Supplies). In Kenya, Uganda, and Tanzania, Maisha Meds has established a strong network of over 1,000 pharmacies. They have assisted small pharmacies in digitising their inventory management and verifying the legitimacy of drugs using mobile phones. The outcome? A near complete elimination of fake medications in their networks and a 30% improvement in operational efficiency. Startups like RxAll and Sproxil are also adding transparency to pharmaceutical supply chains using simple technology. With one code scan, pharmacy owners are now able to track a drug’s path from manufacturer to shelf. This is revolutionary. This transparency isn’t just about safety—it’s rebuilding confidence in the pharmaceutical market. I can’t count how many times pharmacy owners have told me, “I know the medications I need in my store, but I don’t have the money to keep them in stock.” That’s why I am excited about businesses like Field Intelligence and Remedial Health Solutions which offer both inventory management and financing options. They are enabling small pharmacies to increase their stock and do so without incurring significant financial risk or breaking the bank. Regarding delivery, several companies are now developing conventional hub-and-spoke distribution models, a contrast with Zipline’s drones in Rwanda and Ghana. These models involve large central warehouses joined to small local fulfilment points. They may not be as glamorous as drones, but they do assist in getting medicines to remote areas. The road ahead I must be realistic about the sector’s lingering problems. Regulation has not kept up with technology, and there are still the issues of internet connectivity and erratic power supply. What annoys me most is that so many businesses are creating digital islands that cannot communicate with each other. Here is what I believe needs to happen: First of all, interoperability should become the norm—it’s time to take down those silos. I am so tired of seeing different platforms springing up that are not able to talk to each other. Industry-wide standards for data sharing and integration are needed to allow different platforms work together without eliminating competitive differentiation. Second, we have to support local manufacturing. COVID-19 revealed that we have been over-dependent on imported medicines. There are pharmaceutical factories in Nigeria and Ghana that could be supplying more of the medicine that Africa needs if they were better connected to distribution networks. Companies can focus on facilitating the connection between local manufacturers, distributors, and healthcare providers. Third–and I feel strongly about this–African governments need to harmonize their regulations. I’ve seen too many new ideas fail because they have to deal with different policies in each country. The African Continental Free Trade Area (AfCFTA) provides an opportunity to standardize pharmaceutical regulations across borders. Fourth, we desperately need better infrastructure, and this is not just physical ones. The best technology in the world won’t help if we don’t have reliable internet and power. Finally, we need sustainable business models. I’ve seen too many donor-funded projects fail once the funding dries up. This means developing business models that can work despite the existing constraints in our markets. The next five years will be transformative for Africa’s health tech sector. We’ll likely see some consolidation as companies seek scale advantages. We’ll see more integration with traditional healthcare systems. And I’m betting we’ll see the rise of truly pan-African platforms. Winners will be those mixing innovation with practicality, profitability, and social impact. We aren’t turning current processes digital, but rethinking the way medical supplies travel through African health systems. I can tell from my vantage spot in the industry that we’re headed in the right direction. The technology exists. The entrepreneurial talent is here. The market opportunity is clear. Now, we’ve got to dream bigger, shift focus from standalone fixes to creating frameworks that serve all people well. This isn’t just business for me – it’s personal. Every time I visit a rural clinic or small pharmacy that has picked up our latest tech, I can spot the change we’re bringing about. Yet, there’s a ton left to tackle. It’s not just one firm or gadget that will revolutionize health tech in Africa–it’s about all of us working together to ensure every African has access to the medicines they need. ____________________ Damilola Adelekan is a results-driven Product Manager with over 5 years of experience in physical wellness, dot-coms, and SaaS platforms. She specialises in product development, roadmap planning, and leveraging user feedback to deliver impactful solutions. As Lead Product Manager at Remedial Health Solutions, she combines strategic thinking
Read MoreAfrica’s borders are opening but can it do the same for money?
This article was contributed to TechCabal by Ifelade Ayodele, CEO and co-founder of Blaaiz Several African nations have recently embraced visa-free policies for fellow African travelers. Passport holders from any African country can now enter Seychelles, The Gambia, Benin, Kenya, and Rwanda without a visa. This is a major step toward deeper continental integration, signaling a commitment to freer movement, stronger economic ties, and a more unified future. But while physical borders are opening, financial barriers must be removed just as swiftly. Moving money across the continent remains costly and fragmented, with over 42 currencies. The urgency to prioritise seamless payments grows by the day. While a single currency may not be feasible, a unified, African-backed stablecoin (dubbed AFT) could be the bridge that brings the continent closer together—faster. It’s been established over time that the potential of stablecoins in Africa is becoming impossible to overlook, offering significant benefits for industry players and governments. But turning this vision into reality requires careful, deliberate action. Building an African-backed stablecoin is no small feat. it will demand precision, expertise, and a deep understanding of the continent’s financial landscape. Amongst other measures, three key elements will be essential to making it work: the peg mechanism, governance structure, and multi-level implementation. Pegging stability: Tapping into Africa’s rich resources Volatility is a major challenge for many African currencies. Take the Nigerian naira which has consistently lost value over the past decade, a trend seen across much of the continent. This raises an important question: what should an African stablecoin be pegged to? The key here is to tie the coin’s value to an asset of enduring stability—otherwise, the effort risks falling short. Africa’s wealth of natural resources offers a unique opportunity. Precious metals like gold, platinum, and diamonds are widely recognised and their value remains stable over time. Africa can create a stable and credible currency by pegging the African stablecoin to a widely accepted commodity like gold. Strategic commodities such as crude oil and natural gas could also be considered. Oil-dependent economies like Nigeria and Angola might benefit from a hybrid peg involving oil reserves. However, volatility remains a concern, so a more diversified approach may be necessary. One such option is a commodity basket—combining gold, key agricultural exports, and industrial metals. This approach would spread risk and help insulate the stablecoin from fluctuations in any commodity’s value. The goal is clear: to create a stablecoin that remains resilient to market fluctuations, ensuring broad acceptance across the continent. By anchoring the currency to Africa’s abundant resources, the continent can build a financial system that is not only predictable but also deeply rooted in its strengths. Governance: Ensuring fairness and long-term success As with any ambitious financial initiative, the governance structure will play a pivotal role in determining the success of the African-backed stablecoin. With 54 countries involved, the governance framework must be transparent and inclusive. Africa is a continent marked by diverse economies, political systems, and financial infrastructures, so the governance of this stablecoin must reflect this complexity. One possible solution is to form a coalition of African financial institutions and regional economic bodies responsible for overseeing the stablecoin’s issuance, stability, and adoption. Institutions like the African Development Bank (AfDB) could take charge in ensuring that the stablecoin aligns with broader economic objectives and promotes long-term sustainability across the continent. Regional economic communities such as ECOWAS, EAC, and SADC could also tailor the coin’s implementation to each bloc’s unique economic dynamics, ensuring smoother adoption and fostering greater cooperation between nations. To ensure credibility and stability, the governance framework should incorporate transparent monetary policies, smart contract-based issuance, and effective regulation to prevent market manipulation or oversupply. This will help build trust and ensure the stablecoin remains a reliable tool for economic integration. Multi-level flexibility: A tailored approach to Africa’s diverse economies Even as we advocate for a unified African stablecoin, a multi-tiered approach would be necessary to accommodate the continent’s economic diversity. Take for instance, at the top level, a Pan-African AFT, backed by a diversified basket of commodities, could serve as the standard means of trade for cross-border transactions and large-scale corporate dealings. This would provide a stable and unified currency for major economic exchanges across Africa. In addition to the Pan-African model, regional AFTs—such as AFT-West, AFT-East, AFT-South, and AFT-Central—could be developed. These regionally focused stablecoins, pegged to local reserves, would allow for a gradual and tailored adoption across different economic areas. This phased approach would help address regional disparities and ensure smoother integration into the broader financial system. Lastly, sector-specific AFTs could cater to specific industries like trade, remittances, or interbank settlements. These specialised stablecoins would ensure seamless transactions within particular sectors, making AFT adaptable to the diverse needs of businesses and consumers alike. This multi-level flexibility ensures that the African-backed stablecoin can support a range of economic activities, from large-scale trade agreements to everyday consumer transactions. It also enables smoother integration across different economic regions and industries, laying the foundation for a truly unified financial ecosystem. The road ahead: Overcoming challenges While the potential of an African-backed stablecoin is clear, several challenges must be addressed. Political resistance, regulatory hurdles, cybersecurity risks, and the complexity of coordinating 54 nations’ financial systems pose significant obstacles. However, these challenges are not insurmountable. Some African nations are already exploring digital currencies and blockchain technology. Nigeria’s cNGN and Ghana’s e-Cedi are notable examples of how central banks are testing digital currency solutions. The success of these initiatives will be crucial in demonstrating the feasibility of a continent-wide stablecoin. Establishing an African-backed stablecoin could transform Africa’s economic future. By anchoring the currency to Africa’s valuable natural resources, establishing a transparent governance structure, and implementing a flexible, multi-tiered approach, AFT could become the backbone of intra-African trade and financial integration. This would provide the financial infrastructure needed to unlock Africa’s full economic potential, making cross-border trade easier, more affordable, and more efficient than ever before. Note: This article builds on prior discussions about digital assets and assumes
Read MoreSouth Sudan launches first-ever instant payments system three years after proposal
Three years after it was first proposed, the Bank of South Sudan (BoSS) has launched its first National Instant Payment System (NIPS) in collaboration with the AfricaNenda Foundation, an advocacy group for instant payments. It is a critical step for South Sudan’s financial system to address payment efficiency and access gaps. NIPS will enable instant transactions to cut delays, lower costs, and improve financial inclusion for over 6 million adult citizens with limited access to formal banking services. MTN and Zain dominate payments in South Sudan due to the lack of a domestic or regional instant system. NIPS integrates with systems like the Automated Clearing House (ACH), Real-Time Gross Settlement (RTGS), and instant fund transfers (IFT), a step toward addressing these issues, central bank governor Johnny Ohisa Damian told journalists at the launch on Wednesday. “The start of the NIPS journey marks a monumental step forward for financial and socio-economic inclusion in South Sudan,” he said. NIPS aligns with regional financial modernisation, mirroring the East African Community’s (EAC) push for instant retail payments, guided by a 2024 master plan. Burundi and the Democratic Republic of the Congo are the only countries in the EAC without an instant payment platform. Backed by the AfDB, World Bank, and Gates Foundation, EAC nations have pursued payment integration for over a decade, with Kenya, Tanzania, Uganda, and Rwanda already linking their RTGS systems via the East African Payments System. This initiative is significant for South Sudan, which gained independence in 2011. The country has struggled with persistent economic instability, underdeveloped financial systems, and reliance on cash-based transactions. The move is not just about technology—it’s about creating a foundation for economic stability and growth in a nation still rebuilding from decades of conflict. Modernising its financial infrastructure will help the government better support businesses and improve government revenue collection, although the success of this system will depend on effective implementation, public trust, and ongoing support to ensure it meets the needs of all South Sudanese.
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👨🏿🚀TechCabal Daily – Press Startbutton to expand
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF Before we dive into today’s edition, please take a few seconds to follow us on TikTok where we’ll telling the stories of African tech on camera. Quick Fire with Adeboro Odunlami Nigeria’s SEC to fast-track crypto licensing in 2025 Startbutton expands into seven Francophone markets Funding Tracker World Wide Web 3 Events Features Quick Fire with Adeboro Odunlami Adeboro Odunlami is a product safety expert dedicated to helping tech companies build responsible and ethical technology. She is a globally recognized digital policy advocate shaping policies on trust, safety, and platform accountability. She is committed to ensuring that innovation prioritizes user protection and ethical standards. Adeboro Odunlami You are trained as a lawyer but now are working on ethical products and responsible technology. How did that shift happen? As a law student at UNILAG, my first exposure to tech was during an internship at a very popular tech company in Lagos. Because of my legal background, I observed conversations around product development differently. I’d think, “That’s a cool feature, but what laws should we be considering”, or “That’s nice. But how does it impact users’ privacy, safety or rights”. I noticed gaps between what teams were building and the real-world implications. My research project was around emerging technologies and the right to privacy. I saw a need in the technology industry for someone who could bring a legal and ethical perspective into those conversations. What I do now in product management is help teams build products that are innovative, safe, responsible, and inclusive. I also do a lot of advocacy for better technology policies that reinforce the responsibility of tech companies toward their users. Explain your job to a 5-year-old Imagine you have a really cool teddy bear that can do a bunch of fun things like talk to you when you’re lonely, help you remember your school work, remind you to brush your teeth and help you find your missing toys. My job is to make sure that your teddy bear continues to help you do these fun things in a way that is safe for you and everyone else. So for instance, we don’t want the teddy bear to say something mean to you or make you do things you should not do. I also work with the grown-ups who make the rules for how we can make toys and robots even better and safer for everyone! Can you describe a significant digital product where your ethical product management expertise played a critical role in its success? I definitely would talk about my current project at Resilience Technologies—Zeroth Cloud. Typically, when an at-risk organisation or individual like a journalist or human rights defender experiences an attack on their digital security, they report it to a help desk which then assigns the case to a staff member, who will then have to fix a meeting to gather details about the attack. Zeroth Cloud is an AI-powered threat intelligence platform designed to automate the entire lifecycle of threat management including prevention, detection and response with minimal human interaction. I work as the product director at Resilience Technologies and my role is to ensure that the platform is not only innovative but is safe, inclusive, and ethical. What’s one product you’ve worked on that made you think, “Wow, this is really going to change lives”? I’ll mention two products maybe because both products are similar. In 2018, I built ChapterIV to connect victims of police brutality with pro-bono legal representation and in 2022, I co-founded Lawbrella, a similar product that connects victims of image-based sexual abuse (a.k.a revenge porn) with free legal support. I think these two products, especially Lawbrella, are changing lives! What’s one ethical tech dilemma you’re tackling that still keeps you up at night? Ah. Privacy is always a culprit. I always need to balance it with something else. An example is balancing privacy with functionality when building products that need user data to work effectively. Take, for instance, Lawbrella. For us to provide effective support to survivors of image-based sexual abuse (IBSA), we need enough information to connect them with legal assistance, identify harmful content, and sometimes track down perpetrators. But you see, every piece of data we collect could put them at greater risk if we mishandle it (we won’t!). In fact, the dilemma worsens when you throw in automation and user control into the mix. From my experience with Lawbrella, most people reporting cases often want systems that work quickly and seamlessly (like Zeroth Cloud) but using AI and other automation features typically require more data. So the question remains: how do we give users a system that functions effectively without requiring massive sets of sensitive data? How much data is “too much”? This is what makes policy conversations really interesting and that’s why I keep saying that tech issues aren’t just about tech, they are about human beings. If you could change one thing about the way tech companies approach privacy and security, what would it be? For them to see privacy and safety as a competitive advantage and not as a burden. What emerging trends in ethical product management do you see shaping the future? I think we’ll see increased scrutiny on the climate/environmental impact of digital technologies. So basically, ensuring that products are sustainable whether it’s in reduced energy consumption for AI models or building lightweight apps that consume less data. Afincran Connect: A Fintech Mixer by Fincra Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections. Nairobi | 18:00 – 21:00 EAT Limited spots—RSVP now. Regulation Nigeria’s SEC to fast-track crypto licensing in 2025 Image source: Pymnts It’s been five months since Nigeria’s Securities and Exchange Commission (SEC) issued the country’s first provisional crypto licences. Yet, it has provided no further updates on the next batch of startups supposed to receive regulatory approval. Industry insiders speculate that the
Read MoreLAPO’s bank app targets younger customers as it looks to grow loan book to ₦400 billion
After issuing ₦237 billion in loans in 2024, LAPO MFB will launch a new banking app aimed at broadening its appeal beyond its traditional base of petty traders. With 35 years of history as a microfinance bank, LAPO is now targeting younger Nigerians and diversifying its customer profile. The microfinance bank is synonymous with small-ticket loans for low-income earners but it wants to reshape that image. Set to launch in the first quarter of 2025, the LAPO app will allow users to take loans (starting at ₦20,000), pay bills, conduct daily transactions, track expenses, and open fixed deposits at rates comparable to wealth management startups like Piggyvest and Cowrywise. “We’re creating a product that resonates with the evolving needs of our customers,” said Amechi Koldsweat, head of digital banking. “When you think of LAPO, the default customer archetype is the woman selling pepper—but that same woman has kids in university, kids she took loans to train.” LAPO, which serves 6 million customers, is entering Nigeria’s competitive digital banking market alongside established players like OPay, PalmPay, and Moniepoint. Although it is a later entrant, LAPO MFB’s extensive physical presence across 34 states, long history in credit issuance, and existing cashback reward programs are significant competitive assets, its executives told TechCabal. The bank’s hybrid strategy will blend digital innovation with its traditional in-person services. “Our physical branches remain crucial for financial inclusion,” said Oluremi Akande, director of marketing and communications. “While we’re expanding digital services, many of our customers still require in-person financial literacy programs and community support.” With plans to grow loan disbursements from ₦237 billion in 2024 to over ₦400 billion in 2025, LAPO MFB intends to use its app to issue “better and faster” loans. Those loans will range from ₦20,000 to ₦50 million depending on customer profiles, with monthly interest rates between 2.9% and 3.5%. Digital lending is fraught with risk. In 2024, Techstars-backed Blackcopper, which set out to provide collateral-free loans to Nigerian SMEs, shut down under the weight of ₦1 billion in debt after it claimed customers falsified KYC information and struggled to repay. LAPO MFB is taking a measured approach: it will start with small digital loans and gradually increase limits for borrowers with a strong repayment history. The bank is also partnering with credit bureaus like CRC and First Central and leveraging its proprietary data to assess creditworthiness. “If customers have defaulted elsewhere, we will know before lending to them. For new users, we will review all the data that we can get,” Koldsweat said. By combining its long-standing reputation with new technological capabilities, LAPO is positioning itself to serve both its core market and attract new, younger customers. Its careful rollout and hybrid strategy could prove vital in an environment where user inertia and stiff competition from digital-only fintechs remain significant challenges.
Read MoreStartbutton’s Francophone launch lets business enter the region without setting up local entities
Startbutton, a Norrsken-backed startup that helps businesses expand abroad without physical offices, is launching in seven Francophone African countries—Benin, Togo, Senegal, Mali, Guinea Conakry, Burkina Faso, and Cameroon—to enable more companies to enter these markets and accept local payments. Startbutton’s expansion to Francophone is crucial for startups looking to expand their reach in Francophone Africa without needing to set up physical offices. Francophone Africa has been a significant destination for African startups due to its rising middle-class population with disposable income. MDaaS, a healthcare startup and Omniretail recently expanded into the Francophone region. Ivorian fintech HUB2 also raised $8.5 million in Series A in 2024 to continue its expansion across the region. Despite these opportunities, foreign businesses often struggle with complex regulations, language barriers, and limited payment infrastructure, especially when trying to accept local mobile money or settle transactions in foreign currencies. Startbutton addresses these pain points by helping companies accept local payments and charge in foreign currencies. This approach accelerates market entry, streamlines compliance, and unlocks a fast-expanding customer base eager to transact online. “We are leveraging local partnerships (with banks) to drive adoption, ensuring we work with trusted financial and business networks, said Malick Bolakale, StartButton CEO. “ Additionally, we will execute direct outreach to high-growth businesses, educate the market through strategic content, and position Startbutton as the default choice for businesses expanding into Francophone Africa.” With the Francophone expansion, StartButton now operates in 15 countries, with a key focus on the travel, education, and digital services sectors in French-speaking markets. In these industries, businesses often face two major hurdles—language barriers and difficulties reaching local customers who primarily use mobile money rather than international payment methods. They also have to price in EUR or USD, which can deter customers accustomed to transacting in their local currency. StartButton’s Direct Currency Converter (DCC) solves this by allowing companies to maintain foreign currency pricing while letting end users pay in local currencies. This localized payment flow not only removes friction for customers, but also helps businesses overcome the accessibility challenges that have long hindered market entry and growth in Francophone Africa. In its move to Francophone Africa, Startbutton will compete with DLocal–local payment methods—and other local payment companies, like Julaya. Unlike its competitors that focus primarily on payment processing, Startbutton offers additional features like local tax compliance, removing a major operational barrier for foreign businesses looking to enter and scale in the region. “Our differentiation lies in compliance-first expansion—helping businesses navigate complex regulatory landscapes while streamlining their payment flows,” Bolakale added. “Unlike pure payment processors, we enable businesses to operate legally and seamlessly, ensuring they don’t just process payments but also meet local tax and regulatory requirements. Startbutton claims it has processed over $5 million since inception, earning a 0.5-1% commission on each transaction. Bolakale expects Startbutton to process an additional $2 million in the Francophone market. The startup serves over 100 businesses across 20 countries. Most of its customers are in the aviation, gaming, and e-commerce sectors. Last year, the startup secured an International Money Transfer Operator (IMTO) license in Nigeria and a Financial Conduct Authority (FCA) license in the UK. “The next phase is about expanding beyond payments to becoming the default infrastructure for business expansion in Africa, ensuring companies can pay, get paid, and operate seamlessly across borders,” Bolakale said. Norrsken-backed Startbutton makes market entry easy for startups eyeing global expansion
Read MoreCBN reinstates director Jimoh Musa in leadership change for key payments unit
Nigeria’s Central Bank (CBN) has reinstated Jimoh Musa Itopa, a director in the Payments System Management Department (PSMD), who was retrenched alongside 16 other directors in 2024, according to multiple sources familiar with the matter. His return signals a significant leadership change in the crucial department responsible for licensing payment switching companies, regulating agent banks, and overseeing cashless policies and open banking initiatives. The reasons behind Musa’s reinstatement remain unclear, raising questions about the CBN’s confidence in the current leadership of the PSMD, including acting director Oladimeji Yisa Taiwo and other deputy directors such as Dr. Isaiah Ademola Adeleke, who oversees payment system oversight and compliance division and Dr. Bukola Akinwunmi, head of payments policy and regulation. One theory circulating in industry circles is that the CBN requires experienced hands like Jimoh to drive the department, especially with growing challenges in the digital payment landscape. Musa’s previous leadership experience, including his role as Chairman of the Nigerian e-Fraud Forum (NeFF) and the Nigerian Payments Initiatives Coordinating Committee (PICC), is seen as a potential asset for the CBN in navigating these complexities. “This development means there is a capacity gap in the PSMD and is a vote of no confidence in its current leadership,” said one industry insider who asked not to be named to speak freely. Musa’s move to the Capacity Development Department in 2023, a unit responsible for training CBN staff, followed an internal restructuring after the implementation of a special investigator’s report. The report, which examined the tenure of the embattled former CBN governor, Godwin Emefiele, led to the dismissal of several senior officials. However, it remains unclear whether these officials, including Musa, were formally indicted as part of the investigation. CBN did not immediately respond to a request for comments. Musa’s reinstatement will likely impact the future direction of Nigeria’s payment systems policy, influencing key areas such as licensing, compliance, and the regulatory framework for payment infrastructure. The shift could have far-reaching effects on banks, fintechs, and payment service providers operating in the country. Musa did not immediately respond to a request for comments. The Central Bank has placed considerable focus on digital payments in recent years, aiming to reduce reliance on cash and foster greater financial inclusion, particularly as fintech startups continue to grow in influence. In 2022, the CBN unveiled a five-year strategic roadmap to boost digital payments adoption. In 2023, the botched currency redesign policy created a cash shortage but also contributed to a surge in digital payments, as Nigerians increasingly turned to fintech apps like OPay and PalmPay for transactions. According to the CBN, online transactions in Nigeria surged to ₦476.89 trillion during the first half of 2024.
Read MoreNigeria’s SEC to fast-track crypto licencing in 2025
Nigeria’s Securities and Exchange Commission (SEC) plans to accelerate the issuance of crypto licences in 2025 as part of its efforts to regulate the cryptocurrency market and protect consumers. The regulator aims to expedite approvals to address the need for clear regulations in a largely unregulated market. Since launching the Accelerated Regulatory Incubation Programme (ARIP) in June 2024, the SEC has granted provisional licenses to two Nigerian crypto startups, Quidax and Busha. At a December 2024 workshop, the SEC indicated it would “move a lot quickly” in issuing further provisional licences in 2025, according to a person familiar with the matter. Nigeria is an active crypto market with individuals and businesses using cryptocurrencies and stablecoins to hedge against inflation and exchange rate volatility. Yet, the lack of a clear regulatory framework creates significant uncertainty for users and investors. A report from Busha found that nearly half of 1,500 surveyed Nigerian crypto users and non-users cited security concerns as a barrier to crypto adoption. On centralised exchanges, one wrong click can lead to financial loss. Peer-to-peer (P2P) transfers are also risky, and new users may pay higher fees if they are not familiar with how blockchain networks work or how to minimize transaction costs. Rug-pull scams are also prevalent, particularly with the rise of meme coins. These scams involve creators artificially inflating a token’s value before selling off their holdings, causing the price to crash and leaving buyers with losses. “Scammers thrive the most in the crypto space; if you find ways to take advantage of those who don’t know what they’re doing, that’s where you make the most money,” said Chibunna Kingsley, a crypto trader based in Lagos. “It’s right for people to feel unsafe.” To address these risks, crypto platforms have focused on educating users, but awareness alone isn’t enough. Regulators must play a central role in consumer protection. “If you’re a regulator, you should be worried about consumer protection,” said Craig Stoehr, General Counsel at crypto startup Yellow Card. “More has happened in the past nine months than in the 2 years before the SEC established ARIP. They’re on the right track.” Discussions about regulating digital assets began in September 2020 when the SEC released its first framework for crypto regulation. In 2022, the SEC took a more explicit stance by focusing on how crypto assets should be classified under securities laws. By March 2024, the regulator amended its guidelines, directing all entities offering virtual asset services to register with the Commission. The SEC launched the ARIP in June 2024 to onboard crypto startups and operators in a sandbox-like environment. This initiative allows crypto companies to obtain provisional licences, marking a significant shift from Nigeria’s anti-crypto stance in 2021. At that time, banks avoided providing services to crypto companies due to compliance concerns. With the ban lifted in December 2023, the Central Bank of Nigeria (CBN) has issued directives on how banks can engage with crypto startups. This collaboration has allowed companies like Quidax, Busha, and Yellow Card to gain access to banking services, although some banks remain wary. Under the ARIP, local and foreign crypto startups—including Quidax, Busha, Yellow Card, Borderlesspay, and Bitnob—have applied for provisional licences. These companies pay a ₦200,000 fee for assessments and an additional ₦2 million in non-refundable processing fees. “The process was thorough,” said Tobenna Igweonu, a lawyer representing Quidax. “We answered questions on the SEC’s e-portal, paid the application fee, and participated in a demo where we demonstrated how funds flow through our platform.” During the demo sessions, SEC officials scrutinised the companies’ compliance setups, focusing on consumer protection measures and their ability to flag suspicious user accounts. In August 2024, the SEC issued a provisional licence to Quidax, which had been engaging with the SEC even before the ARIP was announced. Quidax was the first startup to apply, allowing it to secure a provisional license ahead of others. After 12 months, Quidax is expected to obtain full licensure as a Virtual Asset Service Provider (VASP), assuming it meets the necessary regulatory requirements. Despite progress, banks remain cautious about working with crypto companies. The CBN has yet to provide a clear stance on how financial institutions should engage with crypto startups. However, a regulatory grey area has allowed these startups to access banking services, although they often disguise themselves as “investment” companies to avoid drawing attention to their crypto operations. “The challenge is that banks don’t directly associate with crypto companies,” a banker who asked not to be named discussing a sensitive issue told TechCabal. “They simply work with them as investment companies.” As the SEC moves towards full regulation of the crypto market, clearer guidelines could boost confidence among institutional investors and banks, encouraging them to explore crypto opportunities. A transparent regulatory environment would also make it easier to tax crypto transactions, a proposal that Nigeria has been exploring since 2022. “The ARIP remains one of the boldest efforts by any regulator in Africa to oversee the crypto sector,” said Chuta Chimezie, a member of the Nigerian Blockchain Committee. While the SEC has made strides in regulating crypto, it must strike a balance between fostering innovation and ensuring compliance. Over-regulation could stifle growth in the sector and drive businesses to other jurisdictions with more favorable environments. The SEC has indicated that it aims to create a balanced framework that encourages growth while protecting consumers, but how this balance will be achieved remains an open question.
Read MoreIsraeli unicorn StarkWare launches $4 million fund to invest in African blockchain startups
StarkWare, an Israeli blockchain infrastructure company valued at $8 billion, has launched a $4 million fund to invest in pre-seed and seed-stage startups in Africa as the continent embraces growing blockchain adoption. The Africa-focused fund will provide grants of up to $150,000 to early-stage startups, with larger investments available for projects building on StarkNet, StarkWare’s proprietary decentralized application platform that operates on the Ethereum blockchain. The fund will target high-potential startups across West, South, and East Africa, focusing on teams combining strong technical skills and local business acumen to create scalable blockchain solutions. “We are looking for projects in African countries that have economic conditions such as high inflation, unstable exchange rates, or low financial inclusion, with a local population interested in blockchain,” said Kheireddine Kamal, Head of Africa Ventures at StarkWare. Selected startups will also receive mentorship and have the potential to secure further investments from StarkWare, up to $500,000, with the possibility of larger amounts for exceptional projects. By investing in decentralized applications (dApps) built on StarkNet, StarkWare aims to empower African businesses to bypass traditional financial systems while benefiting from blockchain’s scalability and cost-efficiency. Africa’s youthful population—projected to reach 2.5 billion by 2050—combined with rapidly increasing crypto adoption, positions the continent as a global digital powerhouse. With $6.7 trillion in consumer and business spending forecast by 2030, blockchain adoption is accelerating. “Blockchain presents a unique opportunity for many parts of Africa to leapfrog outdated infrastructures and democratise access to financial tools with more decentralisation and transparency,” Eli Ben-Sasson, StarkWare CEO and co-founder said. Founded in 2018 by Eli Ben-Sasson, Uri Kolodny, Michael Riabzev, and Alessandro Chiesa, StarkWare develops zero-knowledge proof systems, to address scalability challenges in blockchain networks like Ethereum. StarkWare’s primary products include StarkEx, a scaling engine launched in June 2020 that aggregates transactions into a single proof for cost and energy efficiency, and StarkNet, a decentralised Layer 2 network introduced in June 2021 that enables scalable decentralized applications (dApps) with lower fees. “StarkNet is a particularly interesting path to blockchain, as it is currently a Layer 2 over Ethereum and plans to also operate over Bitcoin,” Kamal said. “This can be great for Africa as it can mean that the ‘scaling squared’ approach also means a ‘liquidity squared’ approach.”
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👨🏿🚀TechCabal Daily – IBM checks out
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Come write for TechCabal. We’re seeking deeply reported features on innovative startups, the business of tech, policymaking around innovation, and the intersection of culture and technology all across Africa. Send a pitch to kay@bigcabal.com. For more on what to include in your pitch, please check out our pitch guide. IBM checks out of Africa Court orders for forfeiture of Tijani Muiz’s assets MNOs urge ICASA to resist Starlink’s influence Kenya cuts interest rates to boost credit growth World Wide Web 3 Events Companies IBM checks out of Africa: MIBB moves in to take over An IBM office building. Photo by Tomoko Wakabayashi After five decades of tech diplomacy in Nigeria, IBM is packing its bags and handing the keys to MIBB, a subsidiary of Midis Group. Starting April 1, 2025, MIBB will be in charge of selling IBM’s software, hardware, cloud, and consulting services across 36 African countries. IBM calls this a “new operating model,” but to the rest of us, it looks like goodbye. IBM once dominated Nigeria’s tech scene, providing IT muscle for banks, telecoms, and government agencies. But competition from Dell and Huawei swooped in like uninvited wedding guests, and before long, IBM’s client list was looking slimmer than a startup’s lunch budget. Globally, IBM’s numbers have been wobbling. In 2024, its consulting revenue dipped 2%, infrastructure sales took an 8% hit, and despite a 10% boost in software sales, overall revenue only crawled up by 1% to $17.55 billion. Still, IBM is optimistic, projecting 5% revenue growth in 2025, with $13.5 billion in expected free cash flow—because hope (and solid financial forecasting) springs eternal. So, what does this mean for Africa? Well, IBM is out, MIBB is in, and businesses are left wondering whether they just got an upgrade or a reroute. Either way, the tech scene in Nigeria and beyond is about to experience a plot twist. Afincran Connect: A Fintech Mixer by Fincra Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections. Nairobi | 18:00 – 21:00 EAT Limited spots—RSVP now. Banking Court orders for forfeiture of Tijani Muiz’s assets First Bank HQ. Image Source: First Bank Higher-ups at First Bank, Nigeria’s oldest lender with ₦25.7 trillion ($18.3 billion) in assets, will be heaving a deep sigh of relief after the Federal High Court, on Tuesday, ordered the forfeiture of assets of Tijani Muiz Adeyinka, the ex-employee who allegedly diverted ₦40 billion ($29 million) from the bank in March 2024. If you missed the First Bank fraud story, here’s some required reading for you before you continue. Adeyinka worked in operations during his fated time at First Bank, where he managed the bank’s settlement account to process customer reversals. The ex-banker, using his position, allegedly stole money for two years, diverting sums to over 1,000 primary and secondary beneficiary accounts, making it hard to trace. The lender lost a huge sum of money—the largest fraud loss in its history—and the following weeks were gruelling sessions of internal investigations that later led to the sacking of over 100 employees. The bank involved the Nigerian Police and anti-graft agency, the Economic and Financial Crimes Commission (EFCC), to investigate the matter and petitioned the courts to act quickly and freeze assets belonging to the ex-employee. In June 2024, Adeyinka was declared a wanted person. According to the EFCC counsel, Adeyinka allegedly laundered money through a business he ran, Golden Sieve Logistics Ltd, which was registered in 2020. He also bought USD and exchanged it for other currencies. Additionally, he layered the money by transacting in stablecoins to further obscure the fraud’s origins. After a lengthy investigation, the court has ordered the forfeiture of all assets recovered from accounts linked to Adeyinka. The seized funds include ₦1.17 million, £35,070, and $392,818, totaling $1.2 million. The recovered sum is expected to be returned to First Bank. While this is nowhere near the $29 million it lost, the bank will continue working with authorities to probe its ex-employee for any additional recoverable funds. On the operational side, the lender must tighten its processes around critical functions like settlements to prevent another incident that could leave it reeling from further losses. Internet MNOs urge ICASA to resist Starlink’s influence GIF Source: Tenor Elon Musk has stayed busy in South Africa. Over the past few weeks, Musk, the founder of satellite internet service provider (ISP) Starlink, has been engaging in talks with South Africa’s Cyril Ramaphosa to finally bring the satellite-to-mobile service home. The talks have been progressive, and President Ramaphosa has been key in ensuring that the Independent Communications Authority of South Africa (ICASA), the country’s communications regulator, tries to find alternative ways to bring the satellite ISP’s investment into the country. In October 2024, Communications Minister Solly Malatsi also argued for ICASA to lower regulatory hurdles for foreign operators. South Africa’s existing ownership rules, stating that foreign companies must have 30% black or disadvantaged-group ownership under its Black Economic Empowerment (BEE) rule—or cede some of its shares to the government—have been a major roadblock for Starlink. However, local mobile network operators (MNOs) don’t like the tune ICASA is dancing to. Through their industry body, the Association for Communications and Technology (ACT), MNOs like Vodacom, MTN, Cell C, Telkom, Rain, and Liquid Intelligent Technologies are pushing back, arguing that ICASA’s focus on updating satellite regulations is unfair. They argue that if licencing rules are going to be revised, they should be revised for the entire telecom sector—not just for satellite players like Starlink. MNOs believe the current approach gives satellite providers an unfair advantage, especially as technology evolves toward satellite-to-mobile connectivity that could make companies like Starlink direct competitors. Starlink is no stranger to pushback from local ISPs. In Kenya, Safaricom, the country’s largest telecom operator, asked regulators to review whether it was fair for Starlink to operate without a physical presence while local players
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