- April 5 2025
- BM
Kenyan court orders Umba to pay $21,600 over unfair dismissal of former executive
A Kenyan Employment and Labour Relations Court has ordered neobank Umba to pay KES 2.88 million ($21,600) in damages and legal costs for unfairly terminating former executive Alice Anyango Oduor, underscoring legal expectations for startups navigating employment laws in the East African country. The March 28 ruling found that Umba— which operates in Kenya and Nigeria—violated due process when it terminated Oduor’s contract in January 2023 during her six-month probation period. Oduor, who served as the company’s head of growth, was dismissed after just a few months in the role, allegedly for poor performance and inability to meet targets. According to court documents seen by TechCabal, Oduor claimed that no clear targets were set and that her performance was not formally evaluated. Oduor claimed she was dismissed via a WhatsApp call from the company’s CFO, without a formal meeting or written notice. Umba, through its lawyers, argued that it informed Oduor of her performance expectations and held several meetings to help her understand her job, including a December 20, 2022, meeting with the CFO. The company added that her termination resulted from performance issues, and informed her of the intended termination. However, the court determined that Umba failed to provide sufficient documentation to justify the dismissal and did not allow Oduor to respond to the allegations—an omission that rendered the termination unlawful, even though she was on probation. “The Respondent has not proved that it conducted a performance evaluation against the Claimant’s targets over a specified period of time prior to concluding that her performance was not as per its expectations, hence rendering her unfit for the company,” said Judge Stella Rutto, who presided over the case. The $21,600 compensation covers the equivalent of Oduor’s three months’ salary during her short stint at the company. The court also ordered Umba to issue a Certificate of Service within 30 days and to cover all legal costs. Umba did not immediately respond to a request for comments. Under Kenya’s Employment Act, employees on probation are still entitled to fair procedural treatment before termination, including being informed of performance concerns and being given a chance to respond. The court noted that probationary status does not exempt employers from these legal obligations.
Read More- April 4 2025
- BM
AI is boosting revenue, cutting cost for tech companies amid high inflation
When Kassy Olisakwe started Auroraweb3, a Nigerian company that builds decentralized solutions, websites, and applications for businesses, in 2020, his annual revenue was ₦114 million ($74,000). But since adopting Artificial Intelligence (AI) tools like Claude, Cursor, ChatGPT, Juro, and Perplexity, that figure has more than quadrupled to ₦481 million in six months and, by his projections, will likely double in the coming months. “By leveraging AI, my agency has significantly increased its productivity and output, enabling us to take on far more projects than before, without compromising on quality,” he told TechCabal. Olisakwe said his agency has also diversified into new verticals, including Web3 investments and the development of trading bots. “What used to require entire teams can now be managed efficiently by fewer individuals, allowing us to expand our service offerings, improve delivery times, and reach a broader client base.” He explained that depending on the scope of the project, it would typically require a team of four to six contract-based developers from the 34 currently on staff. However, since adopting AI, projects can now be “efficiently” managed with only two or three developers, and sometimes even just one developer with minimal external input. Fadé Adeniyi, co-founder of Techlerator, a tech-focused boutique recruitment startup operating in the UK and Nigeria, has also seen a rise in revenue since incorporating AI in its operations. “We have expanded our reach and scaled our business considerably, resulting in a revenue increase of over 65% in just four months,” she said. Using Llama, a language model, has enabled them to transition from training hundreds of students in individual classes to reaching over a thousand students simultaneously. “This scalability has not only accelerated our training processes but has also significantly increased our revenue compared to our previous instructor-led model,” Adeniyi said. AI is helping firms cut operation costs AI has transitioned from a futuristic concept to a tangible profit-generating tool that companies are leveraging to grow revenue, optimize costs, and elevate productivity amid high inflationary pressures. The release of OpenAI’s ChatGPT in November 2022 was a major turning point in the widespread adoption of AI across industries. According to Brad Lightcap, OpenAI’s Chief Operating Officer, ChatGPT had 400 million weekly users as at February 2025 from one million in November 2022. Apart from ChatGPT, other versions of AI chatbots and models from Google, Anthropic, Meta, and Baidu have also been released. These global companies have been competing for dominance in the generative AI space with each striving to release a superior product, leading to frequent updates that enhance user interaction and automating tasks. “AI has boosted our content production speed and volume, and enhanced our SEO efforts, generating additional revenue streams,” Ogugua Belonwu, CEO of Lagos-based recruitment agency MyJobMag Limited, said. Before using ChatGPT for his company’s content production in 2024, Belonwu had been paying content writers approximately ₦6 million ($3,904) per year. “Apart from generating content outlines, guides and streamlining content creation, AI also plays a role in the company’s SEO strategy as it leverages tools to identify target areas and optimize content,” he added. For Temi Babaola, CEO of Spitch, a Nigerian company that develops advanced text-to-speech and speech-to-text AI models, using AI has saved them up to 10% of his budget cost. “We are not just users of AI, but builders as well. Our developers utilize AI to build functionalities and streamline their workflow,” he said. According to Babaola, AI is integrated into every stage of product development, from ideation and road mapping to writing product requirement documents and task assignments. “Many of the tools we’ve adopted are AI-based, and their use is woven into our workflows.” As more businesses across industries adopt AI, the impact on GDP growth, job creation and productivity will become increasingly evident in many economies including Nigeria. A recent report by Google projects AI would increase Nigeria’s economy by $15 billion in 2030. The report estimates that every dollar invested in digital technology in the country generates over eight dollars in economic value, illustrating the high return on investment in the sector. Another report from GSM Association (GSMA), a non-profit trade association, sees AI adding $2.9 trillion to Africa’s GDP. The report added that Nigeria, a leader in African tech, has the potential to greatly benefit from AI solutions, especially in the energy, climate action, and agric sectors. AI-powered precision agriculture is already improving crop management while startups like ThriveAgric now employ AI in assessing the creditworthiness of farmers for input financing. Hello Tractor, another agtech startup, uses AI to connect tractor owners and smallholder farmers through an equipment sharing app. Could AI displace jobs, dampen creativity? With AI’s ability to automate repetitive tasks and the increasing number of companies adopting lean management structures, there are growing concerns that certain job roles will likely be fully automated by 2030. World Economic Forum (WEF) in January said 41% of employers intend to downsize their workforce while Bloomberg Intelligence projected that global banks are expected to cut as many as 200,000 jobs in the next three to five years. “AI hasn’t replaced our team, it has amplified them,” Olisakwe of Auroraweb3 said. “Our top-tier professionals now oversee multiple projects simultaneously, acting as strategic leads for mid-level and junior developers.” He stated that by hiring the best talent in their respective fields, he can avoid layoffs, leading to a more streamlined, agile, and high-performing organization. ‘This approach fosters sustainable growth while upholding technical proficiency.” MyJobMag is cautious about integrating AI to avoid staff cuts and maintain good relationships with its clients. “Employers will not like it if we use it too much,” Belonwu, the company’s CEO said. Mathew Munyao, founder of Attention Media, a Kenyan-based AI automation and marketing agency said as a creator, AI has sharpened his creativity. “I leverage tools like GRok 3 and ChatGPT for in-depth research and DeepThink for web exploration, enabling me to gather information quickly and efficiently. Furthermore, AI’s creative capabilities allow me to generate and animate images, compose music, and design websites
Read More- April 4 2025
- BM
Mafab misses Q1 5G rollout deadline despite December promises
Mafab Communications, the telecom operator that secured one of Nigeria’s $273 million 5G licenses in 2021, has again missed its self-imposed deadline to launch services. Despite promising in December to go live by the end of Q1 2025 in Kano and Abuja, Mafab has not deployed any of the 102 sites it said would support the launch, raising fresh questions about the company’s capacity to compete in Nigeria’s 5G market. Mafab’s delayed launch leaves the 5G market as a two-horse race between MTN Nigeria and Airtel Nigeria, leaving consumers with limited options and setting back the government’s ambitions to deepen broadband access. The latest delay follows a pattern of missed deadlines and public launch announcements without actual deployment, dating back to January 2023, when Mafab hosted launch events in Lagos and Abuja with no service delivery to follow. Originally expected to launch by August 2022, Mafab was granted a five-month extension by the Nigerian Communications Commission (NCC) after failing to obtain a Unified Access Service License (UASL)—a basic requirement for telecom operations. Two years later, the company still hasn’t rolled out 5G services. The NCC is growing increasingly impatient. According to one NCC source who asked not to be named as they are not authorised to speak to the media, Aminu Maida, NCC executive vice chairman (EVC), summoned Mafab officials in December 2024 and gave them an ultimatum: deploy soon or risk sanctions. It was after this meeting that Mafab promised to launch in Q1 2025, but the deadline has now passed without a single operational site. Mafab declined to comment on the missed deadline or its readiness to launch. “They have not been able to raise the funds required for the deployment,” Rotimi Akapo, partner and head of Telecommunication, Media and Technology (TMT) at Advocaat Law Practice. “Most of the equipment will have to be imported, and it’s very capital-intensive.” To get off the ground, Mafab must either lease infrastructure from tower providers like IHS Towers or American Tower Corporation, or build and manage its sites, depending on its deployment strategy. Both paths require long-term lease agreements, installation of 5G base stations, and a core network platform with a functioning billing and business support system. Even the most basic launch would be expensive. Industry estimates suggest that deploying 102 base stations could cost Mafab as much as $122 million in Nigeria, where the average cost per 5G site can reach $1.2 million, nearly 10 times what Chinese operators pay, thanks to larger economies of scale and domestic manufacturing. Mafab had hoped to skirt direct competition with incumbents by launching in underserved markets like Kano and Abuja. But that window is closing fast. MTN and Airtel began offering 5G in Kano in 2023, according to Abdulrasheed Hussain, Digital Media Manager at Premier Radio Kano. “Mafab is supposed to be launched here, but it hasn’t,” he said. “So far, we have MTN and Airtel 5G routers in Kano.” Mafab may pivot toward fixed wireless broadband—a cheaper alternative to mobile 5G that delivers high-speed internet to homes and businesses. MTN and Airtel already use this model to expand reach. Still, fixed broadband requires significant investment in fiber or wireless backhaul infrastructure to deliver reliable speeds. “Mafab faces two major hurdles,” said an investment expert who asked not to be named. “First, investors are hesitant to back an unproven company with no track record. Second, Nigeria’s forex crisis makes it difficult for foreign investors to bring in capital. Domestic investors alone may not be able to fund this scale of investment.” The window for Mafab to prove itself is rapidly closing as failure to launch might eventually lead to NCC withdrawing the licence. Without sufficient funding and infrastructure, the company risks being left behind in Nigeria’s 5G race, further solidifying MTN and Airtel’s duopoly. Whether Mafab can overcome these challenges and finally deliver on its promise remains an open question—but for now, skepticism is at an all-time high.
Read More- April 4 2025
- BM
Ahead of April review, South Africa’s AI policy faces pressure to deliver
Nearly eight months after it was introduced, South Africa’s National Artificial Intelligence (AI) Policy framework is set for public input review this April by the Department of Communications and Digital Technologies (DCDT). While the framework promotes ethical, inclusive AI development, innovation, talent development, and data protection, experts raise concerns about its slow progress. “At the moment, there is a lot of uncertainty,” said Nerushka Bowan, a technology and privacy lawyer and the founder of LITT Institute. “The biggest task would be to provide a clear and actionable roadmap to guide the country’s AI policy direction and regulatory intent.” South Africa, recognised as a frontrunner in Africa’s technology landscape, had been anticipated to lead the way in AI policy development. However, it is lagging with unclear direction in its AI policy implementation. Without clear regulatory guidance, the country risks falling behind peers like Rwanda and missing opportunities for economic transformation and global competitiveness, said Daniel Novitzkas, the group director at Specno, a South African digital solutions company. Rwanda approved its national AI policy in April 2023, focusing on using AI to drive economic development and improve public services, and prioritises ethical AI development, investment incentives, and infrastructure expansion. Without a comparable roadmap, South Africa risks missing out on the projected $1.5 trillion contribution of AI to Africa’s GDP by 2030. Wendy Rosenberg, director, head of digital media and electronic communications practice at Werksmans Attorneys, said that while South Africa’s AI framework covers critical areas like data protection, privacy, governance, and transparency, its delay is problematic. “These issues are critical in ensuring AI development and deployment align with South Africa’s legal and ethical landscape,” said Rosenberg. “ However, it is crucial to finalise the policy framework as it sets the foundation for detailed policies that will be established for various sectors.” Need for a clear AI regulation Currently, industries like financial services and healthcare operate under sector-specific regulations, which already impose obligations on AI-related applications. However, there is no overarching AI-specific regulation or guiding policy to provide clarity on government intent and future legal obligations, said Bowan. Without a nationally supported AI framework policy, it becomes increasingly difficult to encourage entrepreneurs and attract foreign investment in AI infrastructure. Investors and developers often look for regulatory clarity before committing resources, and the absence of a definitive policy creates hesitation, stalling AI-driven economic transformation. “We do not have many years to debate the way forward,” Bowan said. “Investors want to know what the landscape looks like. Early movers often gain a first-mover advantage.” A lack of clarity does not just deter investors, it risks driving local AI talent abroad, where countries with well-defined AI policies, such as the U.S., U.K., and Canada, actively attract skilled professionals with funding incentives, research grants, and AI-friendly regulations. “The people capable of building AI solutions for our economy need the right tools, information, and regulations to thrive here. Otherwise, we risk losing them to the US, Europe, and China,” said Novitzkas. Addressing ethical and bias concerns South Africa already has a strong foundation for AI regulation, thanks to the Protection of Personal Information Act (POPIA), which aligns with the European Union’s General Data Protection Regulation (GDPR). However, Rosenberg pointed out that AI policies must go beyond data protection to address transparency, bias mitigation, and ethical AI use. “AI systems use personal information for various purposes – training AI models, personalisation, and analytics,” Rosenberg said. “This makes transparency and user control vital.” Addressing ethical concerns in AI-bias, transparency, and accountability is vital, particularly in South Africa with its history of inequality. Rosenberg noted that global best practices such as human-in-the-loop systems, bias evaluation processes, and diverse data sampling should be implemented to mitigate these risks. A risk-based approach For South Africa to develop a policy that fully capitalises on AI, it must address key challenges, particularly data sovereignty and internet connectivity. As of 2023, about 28% of South Africans lacked internet access, limiting the country’s ability to fully harness AI’s potential. “Even if AI has the potential to address pressing issues like education, the average South African still lacks access to the internet or a smartphone,” Novitzkas said. Looking globally, the European Union’s AI Act follows a risk-based approach, imposing stricter regulations on high-risk applications while allowing more flexibility for low-risk AI. For AI policy implementation to be successful, a phased approach will be necessary, alongside ongoing legislative updates and monitoring mechanisms. “The challenge always is the law keeping up with technology. What we need is principle-based, future-ready legislation,” Rosenberg said. Regulation is necessary, but it must not stifle innovation. If South Africa can strike the right balance between oversight and technological growth, AI could become a major driver of investment, job creation, and digital transformation, rather than another missed opportunity.
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- April 4 2025
- BM
Next Wave: Digitising danfo payments could unlock a $375 million opportunity in Lagos
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 30 March, 2025 Like millions of Lagosians, Samson endures the frustrating daily struggle of commuting in one of the city’s 75,000 rickety yellow buses, known as Danfos. But unlike other Lagosians, he decided to tackle one part of the problem—digitising payments in Nigeria’s informal transport sector—after a dispute with a bus conductor over change. Globally, removing cash from public transport has led to significant benefits—notably, reduced dwell time and improved data collection. In Lagos, the government’s decision to make the government-backed blue buses accept cashless payments improved the commuting experience for many Lagosians. Several Lagosians told me that they prefer BRTs not only because they are more comfortable but also because paying with the Cowry contactless card is a superior experience to paying cash with Danfos. Capturing even a fraction of the Danfo transactions digitally could improve how Lagosians commute, give the government more visibility into transportation, which will lead to better planning, and accelerate Nigeria’s transition to a cashless economy. Lagos sees an estimated 14 million motorised trips every working day, according to government estimates. About 69% of these trips are in Danfo buses, which serve over 17 million residents and still rely almost entirely on cash for fare payments. Assuming an average fare of ₦300 and 8 million daily danfo trips, public transport in Lagos likely generates over ₦2.4 billion ($1.5 million) in daily revenue—roughly $375 million annually. While this represents the total market size, a startup willing to digitise payments for Danfos can expect to capture a large share of the market in five years, given that it took Tap and Go, a Rwanda-based startup that introduced cashless fare collection in Africa, three years to fully digitise public bus payments in Kigali. But making this a reality is far from straightforward, as disrupting a decades-old cash-based transport culture at scale means convincing an ecosystem of vehicle owners, unions, conductors, drivers, and passengers with different interests to adopt new technology. Next Wave continues after this ad. Visa Stay Secure: 86% Nigerians expect to increase their use of digital payments over the next year A new study from Visa highlights increasing awareness and trust in digital payments among Nigerians. Despite 64% admitting to falling victim to scams in the past, 79% mostly or completely trust digital transactions, and 86% expect to use them more. Find out more here! How would it work? Touch and Pay (TAP), a YC-backed startup, has digitised payments for government-backed public means of transport in Lagos but it could only achieve this because the BRTs are centrally owned or managed, allowing the startup to easily install its hardware for contactless payments and easy management. Its payment product processed over ₦20 billion in 2024. Contactless smart cards used by BRTs are ideal for passengers as they allow multiple people to pay for fares instantly before the ride begins. Tap and Go also uses this payment system. However, installing a physical device on buses is more challenging with danfos, which are fragmented and individually owned. Some drivers also take shifts and must pay bus owners a daily rental fee. With many danfos running multiple shifts per day under different drivers, there might be no sense of ownership and poor maintenance of the devices if they are attached to the bus. There is also the risk of theft. Three drivers told me passengers and thugs might steal the device from the bus when left unattended. Two approaches might work for contactless payments to scale with Danfos. The first would be to do what Samson did and use a system using printed cards with barcode scanners. Each bus has a barcode sticker; passengers would scan the barcode, enter the fare amount, and pay directly from their digital wallets. The driver receives instant SMS alerts confirming payments. Another approach that might work is introducing a hand-held device that each driver owns. This ensures drivers can access their earnings anytime and easily switch between buses or shifts while continuing to earn. The device must instantly transfer fares collected to the driver, not the bus owner, as the driver covers union tickets, fuel and minor maintenance issues. Drivers also receive instant alerts confirming payments. The second approach is more expensive, but it also locks in the drivers. The device must be rugged, affordable, and reliable in areas with poor network coverage. Manufacturing custom devices would likely require outsourcing and significant upfront capital. The drivers can finance the device through a hire-purchase agreement. The startup might also need to partner with an insurance company to provide device coverage and maintenance. Both approaches must include a USSD-based solution, as the cashless system will lock out low-income earners who use basic feature phones. Even for passengers or bus drivers that use smartphones; the cost of data might be a barrier, but with USSD, payments become equitable. Deposits can be held on a digital wallet that can be accessed with USSD. Next Wave continues after this ad. Registration for GITEX AFRICA 3rd edition is NOW OPEN – Africa’s largest tech and start-up event from 14-16 April, 2025 in Marrakech, Morocco. Presenting 3-days of high impact and outcome-focused public-private sector collaborative gatherings, including the largest, most advanced, tech innovation showcases. Register now! How will the business make money? The most reliable revenue stream is a small fee per digital transaction, either a flat rate or a percentage of the fare. TAP, for instance, charges a 5-10% commission depending on the city. An initial subsidised approach might be the best way to introduce cashless payments before reverting to actual price when the startup scales up. The startup can also make money from selling the devices
Read More
- April 4 2025
- BM
TechCabal Daily – Djamo unchained
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! But you know how this week will be remembered next year, or maybe forever? It’s the week Trump slapped tit-for-tariffs on about 60 countries, including dozens of African countries, some over 30%. The cost of doing business with America is shooting up: textiles, oil, or farm produce. So, if you’re building for exporters, supply chains, or powering global payments, this policy shift isn’t background noise: it’s a warning bell. If you’re reading this, then implementation is already in motion. Keep reading to see how this could reshape Africa-US trade. Let’s get it going. Launchpad by Founders Connect is back with $9,500 in funding and over $30,000 in perks Djamo just bagged $17M. Is Francophone Africa finally getting its moment? Trump’s tit-for-tariff could cost Africa billions CNG fleet saves Shuttlers 29% on fares Funding Tracker World Wide Web 3 Events Partner Content Launchpad by Founders Connect is back with $9,500 in funding and over $30,000 in perks Image Source: Founders Connect Launchpad by Founders Connect is back in Nigeria, giving early-stage startups a shot at funding, pitching opportunities, and exclusive growth resources. If you’ve got traction and ambition to go with it, this one’s for you. Selected startups will receive $9,500 in funding, split between a $2,500 grant and $7,000 in SAFE investment from African Impact Initiative (AII). You’ll also get six months’ access to Notion AI (worth $6,000), $25,000 in fee-free processing on Paystack, free PR services from Renee, and more. Applications close on April 16th. Don’t miss out, apply now or forward this to someone you know who is building the next big thing. Freelancers & remote workers, we want to hear from you! Fincra is exploring the challenges Nigerian freelancers and remote workers face with international payments. Share your experience and help contribute to building better payment solutions. Take the survey now! Startups Djamo just bagged $17M. Is Francophone Africa finally getting its moment? Image Source: We Are Tech Africa Oui. On Thursday, Ivorian fintech Djamo raised $17 million, and it’s more than a win for the country’s tech ecosystem; it’s another sign that Francophone Africa is making a strong case for more VC attention. Launched in 2020, Djamo offersdigital financial services in a region where traditional banking has left most people behind. Its app offers free Visa cards, mobile money integration, and budgeting tools. The company says it has already crossed 1 million users; demand is real. This fundraise adds fuel to the region’s growing reputation as an untapped market. In Q1 2025, Togo secured the highest funding among African countries outside the Big Four—Nigeria, Egypt, South Africa, and Kenya. And with startups like Djamo scaling fast, investors are beginning to take the region more seriously. Yet, the funding gap remains: from regulatory friction to limited investor networks, the region has to work harder to attract capital. For every Djamo catching the spotlight, many startups are doing meaningful work in the shadows without enough support. The question is: Will the investor ecosystem step up or play catch-up while the scene says, On est là? We’ll see. Paystack introduces its first consumer app, Zap! Zap by Paystack is an app for secure and fast payments via bank transfers in Nigeria. Download Zap on iOS and Android → Global policy Trump’s tit-for-tariff could cost Africa billions A Studio Ghibli image of President Trump/Image Source: ChatGPT Here’s what the US looked like before President Trump came in: African countries like Kenya, Ghana, Nigeria, and Ethiopia had stable trade relations under the African Growth and Opportunity Act (AGOA), exporting textiles, petroleum, and vehicle parts to the US duty-free. Tariffs weren’t a major concern, and exports flowed with little disruption. But on Wednesday, the world got another taste of Trump’s America-first policies: he implemented sweeping tariff changes. His new tariffs impose a blanket 10% levy on most imports, leaving the world rethinking foreign trade with the US. Trump’s “reciprocal tariffs” introduce new trade dynamics. Countries that impose higher duties on American goods will now see their exports taxed at similar rates. While China and Vietnam were some of the worst-affected countries globally—because we know why—the new Trump tariffs affect Africa just as badly. Lesotho, the worst-hit in Africa will now pay 50% in tariffs on textile and other goods exported to the US, while South Africa, which Trump seems to have some qualms with recently, got 30%. Meanwhile, Kenya, Ghana, and Ethiopia received the lowest tariff at 10%, yet the dynamic has shifted from the duty-free benefits they previously enjoyed. These changes raise costs for African exporters, making their goods less competitive in the US market. Sectors like textiles, which depend heavily on American buyers, will see increased pressure. Nigeria, which places 27% tariffs on US imports, will now face a 14% levy on its goods entering the US. If Nigeria somehow pulls off its ambitious target oil production for 2025, exporting to the US as a trade destination will become expensive, as 10% on tariffs, added with the currency imbalance, will blow a wide hole open in the trade. The same can be said for other African countries. Africa’s biggest exporters now have to rethink how they trade with the US: whether this means looking to other markets or negotiating better deals on separate goods. We know China has already declared a tariff war on the US, and the two have been clanging their wooden swords since. We’re speaking to entrepreneurs, policymakers, and investors, so look for the full story soon on TechCabal. 9PSB Records 50% Transaction Growth with Qore’s BankOne* 9PSB has transformed Nigeria’s payment landscape, expanding its nationwide agent network to deliver vital financial services. In partnership with Qore, 9PSB has achieved a 50% surge in transactions. Discover the story behind this remarkable growth. Click here to read the full story. Startups CNG fleet saves Shuttlers 29% on fares Image Source: Shuttlers Shuttlers, the Lagos-born startup digitising shared commutes, rolled out 20 CNG-powered buses in Q1 2025,
Read More- April 3 2025
- BM
Kenya, Ghana and Ethiopia hit with lowest tariffs under Trump’s trade war
Kenya, Ghana, and Ethiopia are among the African economies that face the lowest tariffs under President Donald Trump’s new trade policy. Goods from the three countries will be subject to a 10% levy, significantly lower than rates imposed on Lesotho (50%), Madagascar (47%), Botswana (37%), Angola (32%), and South Africa (30%). On Wednesday, US President Donald Trump announced tailored tariffs for countries globally in a move he said would bring manufacturing back to the US, increase tax revenues, and respond to unfair trade policies. The plan, which set a baseline tariff of 10%, could upset global trade and slow growth in developing countries like Kenya. The 10% universal tariff will take effect on April 5, while reciprocal tariffs, such as those imposed on imports from Nigeria, will begin on April 9. Nigeria’s goods to the US will face a 14% levy, nearly half of the duties the West African nation imposes on imports from the US. “April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again,” Trump said in an address on Wednesday. Trump’s tariff announcement presents a significant political and economic risk for African countries like Nigeria, Ghana, and Kenya, which already grapple with economic downturns. Goods from around 30 African countries–most of which impose 10% tariffs–will face the lowest rates globally. Trump’s new trade policy further heightens uncertainty over the renewal of the African Growth Opportunity Act (AGOA), which is set to expire in September 2025. South Africa, Nigeria, Ghana, and Kenya are the biggest beneficiaries of AGOA, which grants duty-free access to the US market for 32 sub-Saharan African countries. In 2024, AGOA-covered imports averaged $11.6 billion. South Africa exports vehicle parts under AGOA, while Nigeria, Ghana, and Angola primarily export petroleum products. Meanwhile, Kenya, Lesotho, and Tanzania, focus on textile and apparel exports.
Read More
- April 3 2025
- BM
Breaking: Shuttlers introduces CNG fleet to cut costs and emissions
Shuttlers, a startup digitising shared commutes, introduced 20 compressed natural gas (CNG)-powered vehicles to its fleet in Q1 2025. This addition has already led to a 29% reduction in rider costs and cut 23.5 metric tons of carbon dioxide emissions, according to a LinkedIn post by the company’s CEO, Damilola Olokesusi. The move comes as fuel prices in Nigeria, Africa’s largest oil producer, continue to climb, squeezing transportation budgets for consumers and businesses alike. CNG—a cheaper and cleaner alternative to petrol—has seen more push and adoption in the past year. Shuttler’s new CNG-powered fleet reflects a broader trend among mobility startups seeking to balance profitability with the economic impact of the rising cost of transportation and general cost of living. Shuttlers has completed 1,484 trips, serving 19,292 passengers, 4% of its total Q2 user trips, using these buses, according to Olokesusi. Nonetheless, safety concerns are a common hurdle for CNG adoption, as the cylinders, usually propped in the undercarriage or rear, have caused worry about explosions. Olokesusi says riders’ feedback has been positive. Per her post, Shuttlers equipped its vehicles with fireproof canisters and automatic extinguishers, backed by regular inspections, achieving “100% safe trips” in Q1 2025. The startup, which last disclosed funding was a $4 million raise in 2023, plans to expand its non-petrol fleet in Q2.
Read More
- April 3 2025
- BM
TechCabal Daily – Middle East fever
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy pre-TGIF! If you’re looking for facts to flex your big brain on your friends this week, try this one for size: African startups raised $50 million in March 2025, down from $165 million a year ago. Thanks to a strong January, Q1 2025 still hit $460 million, just shy of Q1 2024’s $486 million. Anyway, how’s that Q1 review going at work? You should review TechCabal’s Q1 here; I need it for work. Let’s get into it. Absa Group wants to set up shop in Dubai in 2026 JP Morgan plans a merchant bank expansion in Nigeria Nigerian transport union workers want to boycott inDrive Kenya’s Chpter spins off Pluto, a WhatsApp API suite, as subsidiary World Wide Web 3 Events Banking Absa Group wants to set up shop in Dubai in 2026 Image Source: Crunchbase When your competitors are all establishing offices in the Middle East, it becomes less a matter of following a trend and more of a mandatory business journey. Absa Group Ltd., South Africa’s third largest bank plans to open an office in Dubai by early 2026—pending regulatory nods. The bank follows the footsteps of its competitors like Investec, Standard Bank, Rand Merchant Bank, and Nedbank already riding the wave of booming Gulf-Africa investment flows. What’s the buzz? Dubai, often associated with luxury and tourism, is in fact a hub for trade and investment. Gulf nations have demonstrated a vested interest in African markets, investing billions of dollars into the continent for the past decade. The trade relationship is thriving, with UAE-Africa trade seeing an impressive growth of over 30%. For businesses like Absa, establishing a presence in Dubai is about capitalising on cross-regional investment prospects, with a strong focus on infrastructure development and other business opportunities that align with the bank’s ambitious goals. Talk about being in the right place at the right time. The Dubai office is a powerful move to stay relevant in a fast-changing game as part of Absa’s expanding global footprint, including London, New York, and a fresh unit in China. Can Absa use this Dubai hub to outperform competitors and capture the Middle East-Africa investment mood? Come 2026, we are watching the space. Freelancers & remote workers, we want to hear from you! Fincra is exploring the challenges Nigerian freelancers and remote workers face with international payments. Share your experience and help contribute to building better payment solutions. Take the survey now! Banking JP Morgan plans a merchant bank expansion in Nigeria Image Source: Times Now JP Morgan, the global investment bank, is set to expand its business in Nigeria by turning its Lagos office into a full-fledged branch. The American bank, which has been operating in Nigeria since the 1980s, plans to apply for a merchant banking licence from the Central Bank of Nigeria (CBN) soon. This is part of the bank’s broader plan to grow its business across Africa. In the past, JP Morgan has provided advisory services and asset management in Nigeria, but now it wants to offer more, including dollar loans to big companies. The bank’s CEO, Jamie Dimon, visited Nigeria in October 2024, meeting with the Central Bank of Nigeria (CBN) Governor Olayemi Cardoso to discuss the bank’s African plans. JP Morgan has already opened new offices in Abidjan, Ivory Coast, and Nairobi, Kenya, to push its regional growth. The bank has been active in supporting countries in Africa with Eurobond issues, including Nigeria’s 2024 $2.2 billion fundraising, where it was a key player. This shows how JP Morgan is involved in helping African countries raise capital on the international markets, further strengthening its presence on the continent. This signals JP Morgan’s bigger commitment to Nigeria and Africa. The expansion could lead to more opportunities for businesses in Nigeria to access financing and services, helping the local economy grow. It also reflects the growing importance of Africa in the global banking sector. Paystack introduces its first consumer app, Zap! Zap by Paystack is an app for secure and fast payments via bank transfers in Nigeria. Download Zap on iOS and Android → Ride-hailing Nigerian transport union workers want to boycott inDrive Image Source: inDrive You’ve likely read articles about how the ride-hailing sector is fraught with problems: drivers are unhappy with high commissions and low fares, and they protest. Eventually, ride-hailing apps make a small tweak here and there, and the drivers are happy again to have a source of income. It’s the same cycle every time. Those are operational problems—it’s a classic excuse that exists in most multi-party businesses. It’s everywhere: food delivery, asset-light e-commerce, and other marketplace-type businesses. For gig driving, drivers want more ownership and say because they know they are central to ride-hailing companies’ operations. This fickleness—coupled with the opportunity to build an ecosystem around their app—is what drove the likes of Uber and Bolt to launch food and grocery delivery services, respectively. However, when it comes to driver or passenger safety, excuses are thrown out the window. This is why Nigeria’s transport union, the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), has threatened to boycott inDrive, the US-based ride-hailing app operating in Nigeria. The union said the platform lacked adequate security features to properly verify passengers or allow drivers to indicate when they felt endangered. These attacks are not isolated to inDrive. The gig economy is a trust-based business model that somehow imploded. Between 2023 and 2024, there were reports of attacks on drivers and passengers. In June 2024, Bolt blocked over 6,000 drivers in South Africa for misconduct after two reported cases of drivers attacking passengers. Despite its many flaws, the gig-driving business still seems viable with the huge ride numbers they handle daily. Yet, security is important. In 2023, Uber launched an in-app emergency button with audio recording features. For inDrive, verifying passengers, like drivers, could be a useful way to make them accountable. Otherwise, if this trend becomes a bigger threat, it could trigger
Read More- April 2 2025
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Togolese developer, Martino Yovo, wants to pull down language barriers for francophone techies
It’s 8:31 a.m. in Martino Yovo’s hometown in Lomé, Togo’s capital city. But in the United States, where he now lives, it is just past midnight and bedtime is still far off. A self-proclaimed night owl, Yovo joins our Google Meet call with a smile. As far back as 2018, Yovo was a French-speaking teen wading through language barriers to learn programming. Now a product engineer at Esri, the world’s leading developer of geographic information system software, Yovo is giving back through a platform democratising tech education for Francophone Africa. Yovo’s journey began with his elder brother’s offhand remark urging him to learn how to create a website. “My brother and I had been tech-curious, doing electronic experiments with batteries, but I don’t think he knew [what it took] to create a website when he said it,” Yovo recalls. It was norm for his siblings to take on odd jobs to learn skills during the holidays, and his brother had suggested he learn to design websites instead. At the time, he was trying to build his first website, a clone of the University of Lomé’s website, where he was studying physical sciences. His brother did not offer a road map, just a nudge. Yovo says he borrowed his sister’s Android phone, did some research, downloaded a free notepad app from the Play Store, and set out to clone the university’s website front. The result was rudimentary, “very ridiculous.” Yet, when he saw the skeletal outline of the front end of the webpage come to life, a strange excitement stirred inside him. In the weeks that followed, Yovo spent every spare moment reading books on programming languages: Java, Pascal, whatever he could scrounge from friends in computer science who were mostly amused by his new obsession. It was tough, Yovo recalls, as the resources, books, articles, videos, and even the programming languages were mostly in English. How Ruth Ikegah went from Microbiology to leading open source advocacy in Africa Crossing a language divide Yovo explains that in Togo, although students learn English in school, only three in a class of about 60 turn out very fluent. Learning programming already taxes the brain—logic, problem-solving, syntax—but adding language translation doubles the effort. He describes “having headaches because I was not fully understanding the documentation.” The language barrier also affected how well people like him could interact with budding online developer communities at the time. Lomé in 2018 was no tech utopia. While the city buzzed with trade, the tech ecosystem was hardly visible. Many Togolese who had done amazing things in tech were quietly migrating abroad, not sharing their work or creating communities as is typical now, Yovo said. But he could understand spoken English, so YouTube tutorials helped his self-education, and later, he turned to Le site du Zéro, a French precursor to OpenClassrooms that offered tutorials in French. In spite of the language challenges, Yovo continued to push through, and by 2018 scraped together 25,000 CFA francs (about $41) from a school stipend to buy a computer. “It was one of the worst computers ever, low performance, low memory, everything was slow on that computer,” he said laughing. Still, it functioned enough to enable him to sharpen his skills, building websites and web applications and excitedly sharing his work and learnings on social media, Facebook groups for developers, Twitter, Discord, and other platforms. By 2019, he had become pretty active in Lomé’s nascent startup scene and was invited to build the website for one of its most popular incubators at the time. Yovo declined to name the incubator, but he says he stayed on to also help some of the participating founders build out their ideas. “A lot of them were entrepreneurs who don’t really know tech,” he said. He was not paid for his services, but the work pushed him to improve his skills; in that same year, he discovered mobile development, but when he tried to start learning by looking up other existing native apps, he came away from his research frustrated. “I was searching for the best Togo apps online, and I couldn’t find one that was really great,” he recalls. He started learning Java, a cross-platform coding language, a pivot that he says changed the trajectory of his career. His first paid gig was building mobile apps, but with no internet at home, he clocked late nights at cybercafés, where managers occasionally left the Wi-Fi running after hours. One job rolled into the next, then another, a steady stream of work building momentum in the local tech community. The many inventions of Motunrayo Sanyaolu, UNILAG’s first Engineering Spirit Finding community and opportunity during a pandemic Then came the COVID-19 pandemic in 2020. But while the world retreated indoors, virtual doors swung open for Yovo. Hackathons, working with the United Nations development arm in Togo to build a COVID awareness platform, kept his coding skills sharp and helped him gain more online visibility in Africa’s tech ecosystem. As he built a reputation and confidence, Yovo decided to build something he wished he had when he started learning programming, a community for his fellow Francophone developers. By November 2020, he launched Togo Developers (TDEV) and began hosting online workshops and events with pandemic restrictions still in place. Today, the group has grown to 3,000 members across 14 countries, including non-Francophone ones. Leaving his comfort zone As the pandemic restrictions relaxed in 2021, Yovo started applying for international roles. He was stung by tens of rejections—including an application where the interview was cut short by a power outage. He came back to the call, after restoring the power, to find that the recruiter was gone. Yovo says he always shrugged the rejections off. “Whenever I had a rejection, I didn’t feel rejected, but I felt like there was another chance for me to improve myself,” he says. Among his self-development quests that year was mastering English, which he believed would improve his job prospects. Up to this point, his
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