Kenya to scrap risk-based loan pricing in push for lower interest rates
The Central Bank of Kenya (CBK) has proposed scrapping the risk-based credit pricing model in favor of pegging lending rates to its benchmark policy rate, a major shift aimed at lowering borrowing costs and improving access to credit for households and businesses. The decision follows frustration within the CBK over the banking sector’s reluctance to lower interest rates despite multiple reductions in the benchmark lending rate since October 2024. The CBK recently cut the Central Bank Rate (CBR to stimulate lending and economic activity, but banks have largely maintained high lending rates, citing internal risk assessments. “CBK proposes the use of the policy rate (Central Bank Rate) as the common reference rate for determining lending rates in the Kenyan banking sector,” CBK said on Wednesday. “The lending rates will be determined by adding a premium to the CBR. CBK will publish the components of each bank’s lending rate premium on its website, the Total Cost of Credit (TCC) website, and in two newspapers of nationwide circulation.” Interest rates will be set by adding a premium—“K”—to the Central Bank Rate (CBR). The premium will include the bank’s operating costs tied to lending, the return expected by shareholders, and the borrower’s risk profile. The outgoing risk-based pricing model, which allowed banks to decide on loan rates depending on individual borrower profiles, has faced criticism for being opaque and prone to abuse. When it was introduced in 2019, the regulator intended to encourage lending to riskier customers; in practice, it has resulted in prohibitively high rates, especially for SMEs and households without credit histories. “CBK’s expectation of the risk-based model was to promote responsible lending practices by aligning credit pricing with borrowers’ risk profiles while ensuring transparency and fairness,” the regulator said. Under the model, banks combined the base rate as a reference rate with risk-adjusted factors, such as a borrower’s creditworthiness, collateral, and overall financial behaviour. By pegging interest rates on CBR, the Central Bank of Kenya hopes to improve the transmission of monetary policy decisions to borrowers and push for transparency in a market that has been criticised for opacity. For borrowers, it could mean lower and predictable interest rates.
Read More
👨🏿🚀TechCabal Daily – No Uber rides on May Day
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy midweek! Let’s delve in. Uber, Bolt, and Indrive drivers plan May day protest Kenya’s stock exchange is going on the blockchain Visa taps contactless payments for Africa push Chery to debut new hybrid car models in South Africa World Wide Web 3 Opportunities Ride-hailing Uber, Bolt, and Indrive drivers plan May day protest Image Source: Google If you’re in Lagos and planning to get around town on May 1st using a ride-hailing app, we hate to inform you that you might have to cancel those plans and refamiliarize yourself with the yellow danfo buses. Why? Ride-hailing drivers—Uber, Bolt, and inDrive—across Lagos are planning to shut things down on May 1st. The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) says drivers are fed up. Poor earnings, weak safety protections, sudden account deactivations, and platform commissions have pushed them to the edge. This isn’t their first protest. Nigerian gig drivers have been here before—demanding lower commissions, higher base fares, and a real voice at the decision-making table. Now, they’re back with a familiar list. Top of the agenda is fairer pay. AUATON wants base fares increased and platform commissions cut from 25% to 5%. They’re also asking for price adjustments that reflect inflation and the surging costs of fuel and vehicle maintenance. But for Uber and Bolt, raising fares risks losing riders in a price-sensitive market like Lagos. Drivers also want job security. Specifically, clearer deactivation policies and a path to appeal bans. . This protest mirrors broader tensions in ride-hailing across Africa. In Kenya last year, driver frustration boiled over into chaos, with passengers pulled from cars and drivers boycotting trips over fare disputes. AUATON’s 5% commission demand may be far below global norms, but unless platforms find middle ground, the fallout could hit everyone—drivers, riders, and the business model holding it all together . Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. Web3 Kenya’s stock exchange is going on the blockchain The Nairobi Securities Exchange (NSE) wants to bring blockchain into the heart of Kenya’s capital markets The Nairobi Securities Exchange (NSE) has launched the Kenya Digital Exchange (KDX) , a blockchain-powered platform developed in partnership with Canada’s DeFi Technologies, Valour Inc., and SovFi. The KDX will let companies tokenize and trade assets like stocks, bonds, and commodities. Think of it as the NSE… with Web3 infrastructure. The platform will be built on the Hedera blockchain and launched in three phases, starting with design and regulation and ending with full-scale trading by mid-2026. Here’s why it matters: The KDX is a major step toward modernizing Africa’s capital markets. KDX could make capital markets faster, cheaper, and more accessible. Companies could issue tokenized assets in primary markets, while investors get a new way to buy in. It also marks a shift in tone from Kenyan regulators—who, like their Nigerian and South African counterparts, are starting to treat blockchain as infrastructure, not a threat. Unlike Ethereum or Solana, where most tokenized assets live without oversight, KDX will be regulated, giving Kenyan companies a compliant way to create and trade digital assets. The move follows a similar initiative by Nigerian company Zone, which launched a regulated blockchain for financial services. Know more: Regulated blockchains—also known as permissioned blockchains—are digital ledgers with gatekeepers. Only approved players can join, and the system is usually run by a central authority or consortium. That structure makes them a safer bet for banks and regulators than free-for-all public chains. Zoom out: Kenya now joins other countries on the continent exploring similar moves. Mauritius being one of the earliest has been running a regulatory sandbox for tokenised finance since 2018. Nigeria’s Zone is also creating a blockchain infrastructure pegged to the naira, while South Africa’s Mesh.trade is already tokenizing assets under FSCA regulation. Here’s what happened at Paystack in 2024! Link your bank account once, and send money in 5 easy steps on Zap. Download Zap on iOS and Android now Download Zap on iOS and Android now → Fintech Visa taps contactless payments for Africa push Image Source: Wunmi Eunice/TechCabal Everyone’s been calling it: contactless is the future of payments. Visa is betting big on it in Africa. On the sidelines of GITEX Africa 2025, Godfrey Sullivan, Visa’s SVP for Products, Solutions, and Digital Partnerships (CEMEA), told TechCabal’s Ganiu Oloruntade that the payments giant sees tap-to-pay becoming the default way people transact in Africa, just like it has globally In Morocco, where Visa introduced contactless payment a few years ago, 41% of transactions are now contactless. Sullivan says it’s faster (Visa transactions clear in 200 milliseconds), more secure, and more scalable than fragmented real-time systems and QR-based solutions dominating markets like Nigeria and Kenya. But Visa’s push isn’t just about cards. It wants to embed itself deeper in Africa’s digital payments ecosystem. In the Democratic Republic of Congo, it’s rolling out Visa Pay, a real-time B2B platform. It’s also eyeing stablecoin integration and leaning hard on local partnerships, with over 1,000 issuers across the continent. It recently backed Nigerian fintech Moniepoint. That’s a big deal for Visa, especially as local fintechs grow wary of foreign fees and are turning to cheaper local alternatives like Verve and AfriGo. Still, Sullivan insists Visa’s growth in Africa is “only getting faster.” With a $1 billion investment earmarked for Africa by 2027, Visa is making it clear: it doesn’t just want to be your card; it wants to be the rails. Here’s what happened at Paystack in 2024! Send, receive, and convert fiat or stablecoins like USD, CAD, USDT, USDC, and more in Nigeria with Juicyway—seamlessly and at great rates! Get free multi-currency accounts, enjoy instant transfers, and trade securely in one app. Join now to get started! ELectric Vehicle Chery to debut new hybrid car models
Read MoreFacebook, TikTok videos drive Nigeria’s record internet traffic
Nigeria’s domestic internet traffic has hit a record high of 1 terabit per second — enough to stream over 200,000 high-definition videos at the same time— driven by a surge in video consumption across platforms like Facebook, TikTok, and YouTube, according to the Internet Exchange Point of Nigeria (IXPN). The milestone, reached in March 2024, marks the highest traffic level since its inception in 2007. This growth highlights Nigeria’s emergence as Africa’s second-largest internet hub and reflects a broader trend toward local content delivery, which is helping to lower costs and improve speeds in one of the continent’s most connected nations. The traffic now routed through IXPN—a key digital infrastructure that allows internet service providers and content platforms to exchange data locally—signals a shift from reliance on international bandwidth to domestically hosted services. “1 terabit per second means that 1 million people can concurrently make phone calls and Zoom meetings,” IXPN CEO Muhammed Rudman said at an event on Tuesday, April 22. “It also means 200,000 people can watch local videos or Netflix at the same time. Without an internet exchange point, this traffic would have been going out of Nigeria.” Nigeria now ranks as the second-largest internet exchange hub in Africa, behind only South Africa, which handles over 4 terabits per second. Key to this growth is the rising demand for video content. As of early 2025, Nigeria has 38.7 million active Facebook users, 37.4 million TikTok users, and 27 million YouTube users, according to DataReportal. In October 2024 alone, YouTube reported a 55% year-on-year increase in watch time among Nigerian users aged 18 and above, reaching more than 30 million people. TikTok and Facebook record similar growth, with video content continuing to dominate usage patterns. Most of this increasing data load is being routed locally through IXPN. When IXPN was launched in 2006 with operational activities kicking off in 2007, traffic levels were minimal—between 5 and 10 megabits per second—because Nigerian providers depended heavily on international connections like SAT-3 or satellite services. Without a local internet exchange, most traffic had to be routed abroad, which slowed down services and increased costs. Things began to shift in 2009 when Google signaled its interest in peering with IXPN. The actual connection in 2011 proved transformative, increasing traffic from under 20 Mbps to over 120 Mbps by 2012. This upward trend continued rapidly, hitting 600 Mbps within a year. By 2019, IXPN traffic had reached 126 gigabits per second, climbing further to 900 Gbps by December 2024. The latest milestone of 1 Tbps in March 2024 highlights how far Nigeria’s internet ecosystem has come. This surge in internet traffic has been driven not only by growing user demand but also by critical infrastructure investments, particularly the expansion of local data centers and direct interconnection agreements with global content giants like Google, Facebook, Microsoft, Amazon, Starlink, TikTok, and Netflix, all of which now peer with the Internet Exchange Point of Nigeria (IXPN). “Some of these companies are already exchanging between 10% and 30% of their traffic locally, with a few reaching up to 70%,” said Rudman. “Imagine an ISP with 1,000 subscribers consuming 1 gigabit of data. If 700 megabits of that traffic is routed through IXPN and only 300 goes to the upstream provider, the cost savings are substantial.” By localising content and keeping more data within Nigeria’s borders, these partnerships are improving internet speeds, reducing latency, and making broadband more affordable for millions of users. It’s a win-win for service providers and consumers alike,— one that signals Nigeria’s accelerating shift toward a more self-reliant internet ecosystem.
Read MoreAsta Funding Hub is turning online sellers into fundable businesses
After weeks of back-and-forth, I finally pinned down a meeting with Nimrod Kibua at CcHub’s iHub, now housed in the Jahazi building in Nairobi’s Lavington area, a leafy suburb that’s quietly become a hive for tech meetups and low-key founder sessions. We caught up over light banter. Kibua, who was among the early crop of founders incubated at iHub in the 2010s, recalled the energy back then. Nairobi’s tech scene was still raw, crowded with builders chasing product-market fit and soaking up mentorship from the city’s few but active incubation hubs. iHub was one of the main ones. A decade on, and after cycling through multiple ideas, Kibua, a trained programmer, landed on Asta Marketplace, a business-to-business (B2B) ecommerce platform. It launched in 2019, went quiet in 2020 during the pandemic, then resurfaced in 2022, listing at least 3,000 vendors. Why bring back an e-commerce platform in a market already saturated with them? Platform uniqueness “Most of our vendors are already running their own ecommerce platforms,” he told me. It makes sense. In Kenya, it’s common for businesses to juggle multiple online storefronts—Instagram, Facebook, X, sometimes even a basic website. “So we wanted to see how we could help these vendors scale what they already have,” he said. Rather than replacing existing storefronts, Asta wants to plug into what’s already working and help sellers reach more customers. It’s a subtle but critical difference. But Asta isn’t just B2B. It has a B2C layer as well, where customers can shop like on any other platform, but also, crucially, become vendors themselves. To do that, they have to rent a digital shelf and go through a verification process before they’re allowed to resell. It’s not an open floodgate, but more curated. That model feels close to what Alibaba does with its verified sellers on Alibaba.com, where businesses must go through checks and often pay a subscription to list as “gold suppliers.” The twist here is that Asta Marketplace lowers the barrier by targeting everyday users who might not own a business but want to participate in online retail. It’s a layered approach to e-commerce, one that blends formality with informal hustle, something that mirrors how trade actually works in Kenya. It doesn’t stop at e-commerce. In 2022, Asta Marketplace introduced the Asta Funding Hub, a service designed to help vendors access funding from angel investors, venture capital firms, and other sources. The Hub was co-founded with Dennis Guantai, a former financial analyst at Wasoko, the Kenyan B2B platform that later merged with Egypt’s MaxAB. This Hub is one of Asta’s core revenue streams. Get the best African tech newsletters in your inbox Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Bouvet Island Brazil British Antarctic Territory British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Canton and Enderbury Islands Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos [Keeling] Islands Colombia Comoros Congo – Brazzaville Congo – Kinshasa Cook Islands Costa Rica Croatia Cuba Cyprus Czech Republic Côte d’Ivoire Denmark Djibouti Dominica Dominican Republic Dronning Maud Land East Germany Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories French Southern and Antarctic Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Honduras Hong Kong SAR China Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Johnston Island Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau SAR China Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Metropolitan France Mexico Micronesia Midway Islands Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar [Burma] Namibia Nauru Nepal Netherlands Netherlands Antilles Neutral Zone New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island North Korea North Vietnam Northern Mariana Islands Norway Oman Pacific Islands Trust Territory Pakistan Palau Palestinian Territories Panama Panama Canal Zone Papua New Guinea Paraguay People’s Democratic Republic of Yemen Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Réunion Saint Barthélemy Saint Helena Saint Kitts and Nevis Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Korea Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syria São Tomé and Príncipe Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu U.S. Minor Outlying Islands U.S. Miscellaneous Pacific Islands U.S. Virgin Islands Uganda Ukraine Union of Soviet Socialist Republics United Arab Emirates United Kingdom United States Unknown or Invalid Region Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Wake Island Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Åland Islands ?> Gender Male Female Others TC Daily Events <!– Next Wave –> <!– Entering Tech –> Subscribe How it works Vendors interested in raising capital sign up for online training that covers the basics: how to develop a term sheet, create a pitch deck, and present to potential investors. The sessions are delivered virtually. Kibua told me that there’s a plan to add physical sessions in the future. Pricing is tiered. Individual vendors pay KES 10,000 ($80) for three 45-minute sessions. Group training, targeted at multiple vendors from the same company, costs KES 5,000 ($40) per person. It’s a structure that appears designed to encourage group participation while offering some cost relief. For vendors looking for more tailored support, Asta Marketplace offers advanced sessions that can cost up to KES 70,000 ($538) per engagement. These are typically for businesses that need hands-on
Read MoreArtificial Intelligence Chat: What is it, and how can it be used?
How we use technology is changing, and one of the most significant shifts is how computers can now talk with us almost like real people. This is where artificial intelligence chat comes in. You might have seen it when chatting with customer support or using apps that reply to your questions automatically. But AI chat has gone way beyond just giving basic replies. It can now hold proper conversations and help in many ways online. This article breaks down what AI chat is, how it’s being used increasingly, and what it means for tech in Africa. What is Artificial Intelligence chat, and how does it work? Artificial intelligence chat is a technology that allows computers to talk with people naturally. You’ve probably used it when chatting with customer service on a website or using a virtual assistant like Siri or Alexa. These systems are built to sound more like humans and less like machines, making online conversations smoother and more manageable. How Artificial Intelligence Chat works AI chat uses two main technologies: 1. Natural Language Processing (NLP) NLP helps computers understand human language. It allows AI chat systems to: Break down sentences into smaller parts Recognise the meaning of words, even when they’re used differently Understand grammar and sentence structure Pick up on emotions like frustration or happiness Tell the difference between similar words based on the context This is how the system understands what you’re saying, even if you don’t type it perfectly. 2. Machine Learning (ML) Machine learning helps the system get better over time. It learns from real conversations and uses that information to: Improve future responses Recognise patterns in how people ask questions Provide more helpful and natural answers There are different types of machine learning: Supervised learning: learns from example questions and answers Unsupervised learning: finds patterns in data without help Reinforcement learning: learns by making mistakes and trying again All of this combined allows AI chat to keep improving with every conversation. How AI Chat is different from old chatbots Old chatbots were limited. They only responded to a small set of pre-written questions and couldn’t handle anything outside them. They were more like a list of answers than a real conversation. Today’s artificial intelligence chatbots are much more intelligent. They can: Understand open-ended questions Adjust to different ways people talk Keep learning and improving Create original responses based on what you say With the help of generative AI, they don’t just fetch answers, they can come up with new responses, making conversations feel more real and helpful. How AI Chat is being used in 2025 AI chat is being used more and more across different industries. From customer service to education, businesses are finding simple ways to use chatbots to talk to people, solve problems, and make things run more smoothly. 1. Content creation AI is now playing a significant role in how people make content. From podcasts to videos and beyond, these tools are helping creators save time and do more with less effort in 2025. AI in Podcast Creation AI tools are making it easier to plan, record, and share podcasts. Here’s how: You can use tools like ChatGPT to develop episode ideas, create outlines, and even write scripts. Editing tools like Auphonic can clean up your audio by removing background noise and ensuring everything sounds clear. AI can write show notes and episode summaries that help your podcast rank better on Google. Some tools can turn your old blog posts into podcast episodes, saving you the stress of starting from scratch. Voice cloning technology allows you to record or keep the same voice across episodes in different languages. AI in video creation Making videos used to take a lot of time and money. But with AI, that’s changing. Tools like Synthesia and HeyGen let you turn text into videos using AI characters, with no need for a camera or actors. With apps like RunwayML and Sora, you can create stunning visuals using just words or photos. AI editing tools can cut videos, add transitions, and adjust audio and colors without much manual work. You can also use AI to break long videos into short clips for TikTok, Instagram, or YouTube Shorts, complete with captions and visuals. What this means for content creators AI allows more people to create quality content without needing a big team or budget. Whether you’re a small business, a solo creator, or a marketer, AI tools can help you make videos and podcasts faster, easier, and better. It’s a new way to share stories, reach more people, and grow your online presence. 2. Customer service One of the most common uses of AI chat is in customer support. Instead of waiting for a human agent, people can now get quick answers from chatbots at any time of the day. Popular tools include ChatGPT by OpenAI, Gemini, and Microsoft Copilot, which help companies provide fast, smart replies. AI chat helps by: Answering frequently asked questions right away Handling simple requests like checking order status or resetting passwords Being available 24/7, even on weekends and holidays Freeing up customer service teams to handle more difficult questions Some chatbots are even intelligent enough to understand how a customer feels and can respond helpfully and respectfully. Others can speak different languages, which is excellent for businesses that serve people in many countries. 3. Marketing and Sales AI chat also plays a significant role in helping businesses attract and keep customers. It can: Start chats with people visiting a website and collect their contact info (e.g., using Tidio, Drift, or Intercom) Suggest products based on what someone has looked at or bought before Help with upselling and cross-selling (like recommending a better option or an extra item) Answer questions and even complete sales outside regular business hours Chat with people directly on platforms like Instagram, Facebook, or WhatsApp using tools like ManyChat or MobileMonkey 4. Healthcare Hospitals and health services are now using AI chat to make care more accessible.
Read MoreWhy Visa is banking on contactless payments for its next growth wave in Africa
Global payments giant Visa is doubling down on contactless payments across Africa as part of a broader strategy to expand its relevance in markets where traditional card usage is still limited. “We think contactless payment is going to grow [in Africa] just as we’ve seen it grow everywhere around the world,” Godfrey Sullivan, Visa’s SVP and Head of Products, Solutions, and Digital Partnerships for Central and Eastern Europe, Middle East, and Africa (CEMEA), told TechCabal on the sidelines of GITEX Africa 2025. “It is going to become how people pay face-to-face.” Visa’s bet signals a critical phase in its Africa playbook, where it is investing in newer, faster payment infrastructure to compete with homegrown systems. It sees an untapped opportunity in Africa, where cash remains dominant despite the rise of mobile money and real-time payment platforms like the Nigeria Inter-Bank Settlement Systems (NIBSS). The company believes contactless payments—via cards, mobile phones, and biometrics—can offer a faster and more scalable solution. “In Morocco, we introduced contactless payments a couple of years ago. Now 41% of transactions conducted are contactless,” Sullivan said. “It’s a far more secure way for consumers and businesses to receive payments.” The payments giant prioritises this model across its key African markets—Nigeria, South Africa, Kenya, Egypt, and Morocco—where adoption of digital payments has accelerated but remains fragmented across QR-based solutions, real-time payment systems, and local fintech platforms. These systems have struggled with reliability and fraud, according to Sullivan. “In Nigeria, people are going to supermarkets and waiting for transactions to clear for minutes,” he said. “Visa transactions clear in 200 milliseconds.” Sullivan also noted that many local real-time platforms lack effective dispute resolution mechanisms, a weakness Visa sees as a strategic advantage. “Many of them are reaching out to us, saying, “How can we have better security?”” The strategic pivot For Visa, the contactless shift is not just about enabling tap-to-pay at physical merchants. The firm is working to embed its infrastructure more deeply into Africa’s growing digital payment ecosystem. It is rolling out Visa Pay, a new real-time B2B payment platform in the Democratic Republic of Congo. Sullivan said the platform is currently undergoing regulatory approvals. Visa is also exploring the integration of stablecoins into its broader payment ecosystem. Visa’s approach in Africa hinges heavily on partnerships with local fintechs and banks to navigate the fragmented regulatory and infrastructure landscape. The firm now works with over 1,000 issuers across the continent. “You need to have partners in each of these different countries… the fintech community, particularly, is central to our broader strategy,” Sullivan said. In December 2024, the payments giant invested in Moniepoint, the Nigerian fintech unicorn known for its dominant agent banking infrastructure in Nigeria. Moniepoint processed over 5.2 billion transactions in 2024 and serves over 1.6 million businesses. Its deep roots in the informal economy give Visa a channel to scale contactless offerings in everyday commerce. Visa is trying to strike a delicate balance: expand fast in Africa without alienating fintechs increasingly wary of high fees and dependence on foreign networks. Sullivan’s message was clear: Visa doesn’t just want to be a card company in Africa, it wants to be the rails, working with everyone from banks to fintechs to modernise how payments move. Business outlook With the rising cost of relying on international card networks like Visa and Mastercard after a naira devaluation, Nigerian fintechs are increasingly turning to local alternatives such as Verve and AfriGo. OPay and Moniepoint have collectively issued more than 17 million Verve cards. In March 2025, PalmPay and Moniepoint partnered with AfriGo to roll out contactless payment cards and tap-to-pay solutions across Nigeria. But Visa says growth in the region hasn’t slowed. “We still see Visa growing tremendously across the continent. The rate of growth is only getting faster,” Sullivan said. The company plans to invest $1 billion in Africa by 2027, and says it’s on track. With nine offices and over 500 employees, Sullivan said, “Africa is a super important region for us—and we’re just getting started.”
Read More
👨🏿🚀TechCabal Daily – Lori’s discounted ride
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! How does it feel to be back to work? RIP Pope Francis. The tech world wouldn’t forget the AI-generated image of the Latin American priest in a white puffer jacket that went viral in 2023. Speaking about AI, here’s one AI tool to ease you back into work. The AI tool can read your screen and listen in on your calls. No, it’s not just another AI assistant. Think of it as a super AI assistant. Let’s delve into today’s edition Lori tweaks business model with new fund raise Niger waives right-of-way Fisayo Durojaye on angel investing in Africa World Wide Web 3 Opportunities Logistics Lori tweaks business model with new fund raise Techcabal Challenges with working capital have been the constant denominator for logistics startups across Africa. Nairobi-based startup Lori claims it may have found the silver bullet to solving these challenges. Launched in 2016 by Jean Claude Homawoo and Josh Sandler, Lori set out to reduce the cost of moving goods across the continent by connecting shippers with transport providers through its aggregator platform. Lori provides the working capital to help transporters deliver goods to its customers’ vendors. The startup’s typical customers—manufacturers, distributors, and high-volume shippers—are characterised by long payment cycles. Their vendors typically have to wait 30 to 90 days for manufacturers and distributors to settle invoices. On the other hand, the transporters must be paid almost immediately, part before the trip and the rest upon fulfillment. However, a common challenge with this model is that Lori’s customers—manufacturers and distributors—often do not pay back debt on time, creating working capital challenges for the startup. Lori’s nine years of hard-won experience in Africa’s logistics industry has informed a tweak in its business model to solve this challenge. Under its new setup, the logistics startup draws on an invoice facility at the bank, prices the interest at its rate, and uses the funds to kick off the trip and pay the driver. The bank charges an 8% fee for financing the process. The startup, which has its eyes on profitability this year, also raised a $2 million bridge round in 2024 However, that round came with a steep valuation cut. The logistics platform once valued at $120 million saw its valuation slashed to about $5 million in the latest round. TechCabal caught up with Lori’s CEO; he shared how the logistics startup has doubled its take rates, kept receivables low, and improved margins and EBIT among other thoughts about Africa’s logistics space. Read the full interview here Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. Get the best African tech newsletters in your inbox Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Bouvet Island Brazil British Antarctic Territory British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Canton and Enderbury Islands Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos [Keeling] Islands Colombia Comoros Congo – Brazzaville Congo – Kinshasa Cook Islands Costa Rica Croatia Cuba Cyprus Czech Republic Côte d’Ivoire Denmark Djibouti Dominica Dominican Republic Dronning Maud Land East Germany Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories French Southern and Antarctic Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Honduras Hong Kong SAR China Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Johnston Island Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau SAR China Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Metropolitan France Mexico Micronesia Midway Islands Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar [Burma] Namibia Nauru Nepal Netherlands Netherlands Antilles Neutral Zone New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island North Korea North Vietnam Northern Mariana Islands Norway Oman Pacific Islands Trust Territory Pakistan Palau Palestinian Territories Panama Panama Canal Zone Papua New Guinea Paraguay People’s Democratic Republic of Yemen Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Réunion Saint Barthélemy Saint Helena Saint Kitts and Nevis Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Korea Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syria São Tomé and Príncipe Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu U.S. Minor Outlying Islands U.S. Miscellaneous Pacific Islands U.S. Virgin Islands Uganda Ukraine Union of Soviet Socialist Republics United Arab Emirates United Kingdom United States Unknown or Invalid Region Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Wake Island Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Åland Islands ?> Gender Male Female Others TC Daily Events <!– Next Wave –> <!– Entering Tech –> Subscribe Telecommunications Niger waives right-of-way Niger State, the Nigerian state with the fifth-largest fibre infrastructure (3,681.66km), has officially waived right-of-way (RoW) fees for fibre optic infrastructure. The state, located in north-central Nigeria, became the twelfth Nigerian state to implement the policy designed to incentivise telecom operators and expand internet access. Why does this matter? RoW fees—levied by state governments for laying fibre optic cables—have long been a bottleneck to broadband expansion across Nigeria, creating high entry costs for telecom operators like MTN Nigeria, Airtel Africa, and Globacom.
Read More
👨🏿🚀TechCabal Daily – Got $2 for Gold?
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy Easter Monday! Long weekends are for resets and maybe rethinking how we save. In South Africa, that reset now includes owning gold from just R50 ($3). Yes, real gold. Let’s delve into some of the tech news that happened over the weekend! Gold goes digital in South Africa Access Holdings spent the most on tech in 2024 Paystack vs. Zap Africa: What’s really in a name? Twiga Foods acquired three FMCG distributors World Wide Web 3 Opportunities Crypto Gold goes digital in South Africa Image Source: Access Bank South African crypto platform Mesh.trade , has launched tokenised Kruggerrands in partnership with Troygold, allowing anyone to invest in gold for as little as R50 ($3). Each token is backed 1:1 by a physical Krugerrand stored in a vault in Johannesburg and audited monthly. The move brings a centuries-old asset into the blockchain era. Tokenization lets investors own fractions of a gold coin, tracked on the blockchain and accessible via a digital wallet. Users can redeem tokens for actual coins or trade them online. Why it matters: Troygold and Mesh.trade say they’re democratising access to gold—long seen as a hedge against inflation and rand volatility—especially in a year when global gold prices are on the rise. This year, Gold prices have surged more than 25%. Krugerrands are also VAT-free, fully auditable, and redeemable. This isn’t South Africa’s first gold investment product, (hello, NewGold ETF), but it is the first crypto-native, locally backed gold token. It blends traditional finance with blockchain innovation—and does it under regulatory oversight. Mesh.trade holds one of South Africa’s new Crypto Asset Service Provider licenses. South Africa now joins Nigeria and Zimbabwe in exploring digital gold. Nigeria’s LCFE launched Eko Gold Coins in 2021 and Zimbabwe’s central bank introduced a gold-backed digital currency But this tokenized Krugerrand, pegged to a globally trusted coin and built on local infrastructure, may be Africa’s cleanest fusion yet of blockchain and bullion. Get the best African tech newsletters in your inbox Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Bouvet Island Brazil British Antarctic Territory British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Canton and Enderbury Islands Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos [Keeling] Islands Colombia Comoros Congo – Brazzaville Congo – Kinshasa Cook Islands Costa Rica Croatia Cuba Cyprus Czech Republic Côte d’Ivoire Denmark Djibouti Dominica Dominican Republic Dronning Maud Land East Germany Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories French Southern and Antarctic Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Honduras Hong Kong SAR China Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Johnston Island Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau SAR China Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Metropolitan France Mexico Micronesia Midway Islands Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar [Burma] Namibia Nauru Nepal Netherlands Netherlands Antilles Neutral Zone New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island North Korea North Vietnam Northern Mariana Islands Norway Oman Pacific Islands Trust Territory Pakistan Palau Palestinian Territories Panama Panama Canal Zone Papua New Guinea Paraguay People’s Democratic Republic of Yemen Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Réunion Saint Barthélemy Saint Helena Saint Kitts and Nevis Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Korea Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syria São Tomé and Príncipe Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu U.S. Minor Outlying Islands U.S. Miscellaneous Pacific Islands U.S. Virgin Islands Uganda Ukraine Union of Soviet Socialist Republics United Arab Emirates United Kingdom United States Unknown or Invalid Region Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Wake Island Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Åland Islands ?> Gender Male Female Others TC Daily Events <!– Next Wave –> <!– Entering Tech –> Subscribe Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. Banking Access Holdings spent the most on tech in 2024 Access Holdings, the parent company of Access Bank, spent a jaw-dropping ₦193.5 billion ($120.5 million) on tech in 2024. The bank spent 147% more on tech than it did in the previous year, more than its competitors—GTCO, UBA, and Zenith Bank. GTCO, for instance, spent ₦88 billion ($56.8 million) on IT expenses, Zenith spent ₦67.3 billion ($43 million), while UBA spent ₦48 billion ($30.5 million). Much of Access Bank’s tech expenses were spent on upgrading the bank’s core banking software and beefing up cybersecurity to drive down fraud losses. Access Bank told TechCabal reporter Bunmi Bailey that most of the increases are “vendor-driven, especially in areas like licensing, technical support, and niche services.” On the other hand, analysts say they are trying to keep fintech upstarts like OPay and Moniepoint from stealing their lunch. Some also say that the banks are trying to drive down fraud losses. The result so far? Fraud losses dipped 73%, from ₦6.15 billion to ₦1.64 billion, for Access Bank. There is more in Bailey’s report. Zap by Paystack for quick bank
Read More
Fisayo Durojaye wants investors to better differentiate a scalable idea from an empty one
Fisayo Durojaye has lived many lives. He’s been an investment banker, a venture capitalist, and an educator. Throughout his career, Durojaye has held the belief that local context is crucial in making good investment decisions. This ideology has served him well by shaping his approach to angel investing, which has already yielded an exit, informed his venture capital career, and formed the foundation of his VC course, Immerse VC. He has invested in three Nigerian startups as an angel investor: Oneport 365, a Nigerian logistics startup that raised $5 million in seed funding (which he has exited); Shuttlers, a startup digitising shared commutes; and Homefort, a clean energy startup. While this may not make him a prolific angel investor by volume, his hands-on support in helping these startups raise capital has earned him his stripes in the ecosystem. “All three [companies] were structured the same way,” Durojaye told TechCabal in an interview. “I saw the deal first, brought others in, and invested alongside. That’s my style. I say I’m a good investor, it’s because I can spot great deals and convince others to co-invest.” Immerse VC has already produced several venture capital analysts now working at firms like Seven VC, Lofty Inc., and Kuramo Capital, with students from firms like Consonance, Oui Capital, Sahara Ventures, and the IFC also attending. Durojaye told TechCabal that he started Immerse VC to help solve what he called a financial understanding problem, designing the course to help participants learn how to properly evaluate businesses and make informed investment decisions. “People say a company is ‘scalable’ just because it doesn’t own assets,” he said. “But that’s not always true. If you look at the accounts, you’ll see how tight the margins are. Some of them are losing money at the revenue line. If you understand finance, you’ll see this stuff instantly. That’s why I teach it. This is about helping people avoid bad deals and business models that don’t work.” TechCabal spoke to Durojaye to understand his investment approach and why he’s teaching the next generation of African investors. This interview has been edited for length and clarity. You started in investment banking, and now you’re a VC, angel investor, and educator. How did all this happen? It started with trying to understand business news. I wasn’t aiming to learn finance at first—I just wanted the business sections of the papers to make sense. I’d Google stuff, and that’s how I started learning finance. By my second year in school, I realised I was more interested in finance than in English (which I studied) or Law (which I planned on studying). When I graduated, I started working for free, and by the time I got my first job, I realised something: my colleagues had first-class degrees in economics, but none of us knew anything useful for investment banking. The schools hadn’t prepared us for the job. So we all had to be trained from scratch. That’s when I understood that I wasn’t at a disadvantage. Sure, they knew the theory better, but I understood the markets. That’s the difference, and as I got more comfortable in my second year as an analyst, I started teaching. I’d seen that the new guys joining also didn’t know much, so I figured, “Why not help them?” I started teaching investment banking in 2014, a year after I joined in 2013. My friends and I started a company called EduBridge Academy. We started teaching on weekends, and we taught finance, PowerPoint, Excel, financial modelling, and macroeconomics—all the tools you need in investment banking. Four years into my investment banking career, I was tired. I wanted more. The typical transition back then was investment banking to private equity. This was around 2015–2016, and VC wasn’t a thing yet. I was looking for PE roles, but there weren’t many. Then I stumbled on EchoVC, applied, and got the job. Before that, I was already interested in tech. At EchoVC, I could stay close to finance and support early-stage founders. These companies needed help: recruiting, finance, modelling—all of it. Once I got into VC, I noticed people didn’t understand accounting or finance. In VC, people just throw out things like “valuation is a multiple of revenue.” But even basic revenue concepts are misunderstood. So I saw the gap and thought, “let me teach analysts and associates in VC.” That’s how it started. I designed a six-week program, similar to EdBridge, and started teaching on-the-job skills. Was there a particular moment or deal that made you realise you wanted to leave investment banking for VC? I was already getting tired of investment banking. If you know how it works, you do a deal, collect your fee, and move on to the next. We were hunters. One deal that solidified it for me was Mainstreet Bank. We helped sell Enterprise Bank first, and I was the lead analyst on it. It was a good deal—we made a lot of money. But after Skye Bank acquired Mainstreet, they had “indigestion.” They couldn’t integrate, and eventually both banks failed. The Central Bank had to step in and merge them into Polaris. We got paid, but my legacy went down the drain. Our client, the Asset Management Corporation of Nigeria, was happy because they sold the bank for a good price. But for me, it didn’t sit right. That’s when I started rethinking the work. When I eventually entered VC, I realised that’s where I belonged. One of the first deals I worked on at EchoVC was LifeBank. The founder was passionate about solving blood shortages and poor healthcare infrastructure. We gave her money, but we didn’t stop there. We helped with recruiting, finance, modelling—all of it. It wasn’t just investing but active support. That resonated with me. Fast-forward a few years: when my wife was about to deliver our first son, she needed blood. Guess who delivered it? LifeBank. We could afford everything, but still, it was a full-circle moment. We had invested in the company
Read MoreNiger waives right-of-way fees for telcos, introduces ₦500,000 one-time permit
Niger State has officially waived right-of-way (RoW) fees for fibre optic infrastructure, becoming the twelfth Nigerian state to implement the policy to incentivise telecom operators and expand internet access. The policy, formalised in a government gazette dated September 2, 2024, and signed by Governor Muhammed Umar Bago, is part of a broader effort to attract private-sector investment, extend internet access to remote communities, and digitise public services. Under the new policy, telecom operators will pay a one-time, non-refundable application fee of ₦500,000 ($311.80). According to Suleiman Isah, Niger State’s Commissioner for Communications Technology and Digital Economy, the fee covers both initial network deployment and any future expansions. “Even if a company received its permit ten years ago, they are not required to pay again for expansion—just notify the state,” Isah told TechCabal. RoW fees—levied by state governments for laying fibre optic cables—have long been a bottleneck to broadband expansion across Nigeria, creating high entry costs for telecom operators like MTN Nigeria, Airtel Africa, and Globacom. The effort to harmonise Right-of-Way fees began in 2013, when the National Executive Council (NEC) proposed a uniform fee of ₦145 ($0.09) per linear metre. However, adoption has been uneven, with only around 35% of states reducing or waiving the fees. Niger, the state with the fifth largest fibre infrastructure (3,681.66km), now joins the list of states—Zamfara, Katsina, Anambra, Kebbi, Nasarawa, Bauchi, Adamawa, Kaduna, Ekiti, Imo, and Plateau—that have either eliminated or significantly reduced RoW charges to attract investment. “A no-fee RoW policy will attract substantial investments from telecommunication companies, leading to expanded network coverage, especially in rural and underserved areas, and creating a favourable business environment that supports job creation and economic growth,” Governor Bago said in the gazette. Nigeria hopes the waiver will encourage more operators to invest in fibre infrastructure and help close the connectivity gap in one of Nigeria’s largest and most underserved regions.
Read More