- April 14 2025
- BM
Kenya’s Central Bank and Treasury approve Access Bank’s acquisition of struggling NBK
The Central Bank of Kenya (CBK) and the National Treasury have approved Access Bank’s acquisition of the struggling National Bank of Kenya, nearly one year after the Nigerian lender first expressed interest in the deal. The transaction is still subject to Nigerian authorities’ approval. In a public notice on Monday, the CBK said it and Treasury Cabinet Secretary John Mbadi had approved the deal, bringing Access Bank closer to taking over NBK, which could expand its footprint in East Africa’s largest economy, given the bank’s nationwide branch network. “Pursuant to section 13 (4) of the Banking Act, the Central Bank of Kenya on 4th April, 2025, approved the acquisition of 100 percent of the issued share capital of National Bank of Kenya Limited by Access Bank PLC,” CBK governor Kamau Thugge said in a gazette notice. “The Cabinet Secretary for the National Treasury and Economic Planning on 10th April, 2025, approved the acquisition of 100 percent of the issued share capital of National Bank of Kenya Limited by Access Bank PLC.” The approval paves the way for KCB Group and Access Bank to complete the transaction, with a public announcement to follow. While the transaction value has not been disclosed, KCB Group said in March 2024 that it had agreed to sell National Bank at 1.25 times its book value. Based on NBK’s 2023 book value of $79.77 million, the deal could be valued at approximately $100 million. The final acquisition figure could still be markedly different from that estimate. The deal is Access Bank’s second acquisition in Kenya in five years as it pushes its pan-African expansion drive. In 2020, Access acquired Transnational Bank to enter the Kenyan market, following a similar move by its Nigerian competitors, United Bank of Africa (UBA) and Guaranty Trust Bank (GT Bank). Access is expected to inject more capital into NBK to shore up its books if the deal is closed. Since KCB acquired the loss-making lender in 2019 in a deal brokered by CBK and the National Treasury, it has spent over $63.5 million to improve its capital strength and keep it on track to profitability.
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- April 14 2025
- BM
TechCabal Daily – Will Lesotho give in to Musk?
In partnership with Lire en Français اقرأ هذا باللغة العربية It’s Monday! If you’re Nigerian and need something to be mildly optimistic about this week, here it is: Fitch Ratings just bumped Nigeria’s long-term foreign-currency issuer default rating to ‘B’ from ‘B-‘. Moving from a B- to a B is the kind of small incremental progress you need to power through this week. Let’s get into today’s edition. NCBA fined $1,930 for sending emails to the wrong customer Will Lesotho crack its Basotho ownership rule for Elon Musk’s Starlink? What does the US tariffs mean for Africa’s tech ecosystem? World Wide Web 3 Job Openings Banking NCBA fined $1,930 for sending emails to the wrong customer From Left to right: Louisa Wandabwa – NCBA Group Chief of Staff and Director of Strategy, John Gachora – Group Managing Director – NCBA and Stella Njunge – Managing Director – AIG Kenya Kenya has one of the strongest data protection policies in Africa. Its Data Protection Act (2019) tells companies how to collect and use customer data safely. It protects the country’s control over its data and gives people the right to say how their data is used. Customers can say yes or no, challenge, or stop the use of their data. Yet, Kenyan large corporations—which have been the major culprits—still have work to do to comply with the rules. On Friday, NCBA, Kenya’s third-largest commercial bank by assets, was fined KES250,000 ($1,930) by the Office of the Data Protection Commissioner (ODPC), the country’s data protection regulator, for violating a customer’s privacy rights. What happened? The bank had failed to delete an incorrect email address from its records, despite repeated requests, leading to sensitive financial statements being sent to the wrong person. The complainant, Brian Githaiga, had asked the bank to remove a second email address linked to his account. The bank failed to act, and the unintended recipient—who had no ties to NCBA—continued receiving his transaction details. Even after she alerted the bank, the issue persisted. This is risky because once your bank records land in the wrong inbox, you lose control over who sees your details. These statements often contain personal data like your address and phone number. In the wrong hands, you could become a target—even if you’ve always been careful. This isn’t the first time NCBA has made that mistake. In December 2024, the bank was fined KES700,000 ($4,405) for sending a Kenyan customer, Dr. Bernard Shiaunda Aete’s loan statements to his former wife. Despite his request to remove her contact as an alternate address, the bank failed to act. Banks are expected to set the bar for financial safety, so it’s both surprising and careless for NCBA to drop the ball like this. Although $1,930 may be a small fine, it sends a strong message to others: protect your customers’ data—or pay for it. 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. Internet Will Lesotho crack its Basotho ownership rule for Elon Musk’s Starlink? Image Source: Twitter (X) When the US President, Donald Trump, slapped 90 countries with a reciprocal tariff on April 2, we expected some to cave under the pressure. Some countries have since moved to negotiate favourable trade terms with the US. One of them is Lesotho—a small, landlocked country in Southern Africa that has long depended on exporting textiles to the US. Trump’s new 50% tariff—which was paused for 90 days—on textile imports could cripple Lesotho’s garment sector, which employs 30,000 people and contributes over 80% of its export revenue as of 2022. That’s not a blow you walk off. It’s understandable why Lesotho is looking to offer a quid pro quo to sweeten its diplomatic ties with the US. And what better way to do that than by giving Elon Musk’s Starlink a backdoor entry? The satellite internet company has struggled to gain ground in several African countries, particularly in the Southern African region, due to regulatory bottlenecks—including Lesotho, which requires 30% local ownership in foreign ventures. If Lesotho allows Starlink in without the satellite internet service provider (ISP) following the ownership rule, it would be a big change in policy—creating a setback for Lesotho’s regulators that have been trying to force compliance among foreign-owned businesses trooping into the country. The country is stuck between Charybdis and Scylla, as it tries to improve local investment inflow while protecting its access to the US market. If Starlink makes it in through the backdoor, the satellite ISP will become the most visible reference of the country’s policy failure. What message does it send to other investors who had to comply with the local ownership rule? Here’s what happened at Paystack in 2024! See what Paystack built last year! From major product upgrades to new ways we supported African businesses. Check out our Year in Review → Global Policy What does the US tariffs mean for Africa’s tech ecosystem? Image Credit: WEF In the short stint before the US president paused its reciprocal tariffs, the world witnessed a literal turmoil: stock markets were down, over $2 billion in crypto was wiped out, and for a second, you didn’t know whether to panic or buy the dip. While Donald Trump may have paused reciprocal tariffs for another 90 days, did you ever wonder what the tariffs meant for Africa’s tech ecosystem? We broke down the analysis here so you wouldn’t have to worry. For startups looking to raise, the mood is cautious. VC funding into African tech dipped to just $50 million in March—its lowest in over four years—as investors retreat to safe assets like US Treasuries. Inflation fears and a looming global recession are making US-based funds more defensive. For exporters, the picture’s more complex. While Nigerian traders now face a $14 duty on a $100 bag of cassava flour, they could gain
Read More- April 12 2025
- BM
Why Nigeria should lead the charge for bitcoin mining in Africa
Bitcoin mining is creating new Bitcoins and securing the network by solving complex mathematical puzzles. The network is managed by miners—individuals or entities using specialized hardware. Mining is crucial to network security and decentralization: it verifies transactions in a trustless manner, prevents double spending, and keeps the blockchain immutable. With a finite supply of 21 million coins, mining also controls how new coins enter circulation, making Bitcoin scarce and valuable as more people recognize its promise. Bitcoin’s proof-of-work mechanism remains the core method to earn bitcoin while maintaining the network. Although running the network consumes significant energy, innovative methods have emerged to optimize mining efficiency over the years. Bitcoin mining isn’t merely another industry; it is a global arms race to secure the hardest asset the world has ever seen. Nigeria, the undisputed giant of Africa, has long cemented itself as a major player in global cryptocurrency adoption. From dominating peer-to-peer trading volume rankings to a high demand for alternative financial systems, Nigeria isn’t just part of the crypto conversation—it is leading it. Currently, no African country ranks in the top 10 for global Bitcoin mining operations, with figures ranging from over $4 billion in the United States to $70 million in Venezuela (as of 2024). Today, Africa contributes only 3% to the global Bitcoin mining hash rate—a criminally low share given the continent’s untapped energy reserves. Nigeria should lead this movement by leveraging its abundant, underutilized energy resources to mint digital gold. The financial upside is undeniable, and the strategic advantage is even greater. The moment to act is now. From a pure numbers perspective, the upside for Nigeria is staggering. At a current bitcoin price of $83,000, controlling even 1% of the global mining network would generate nearly $280 million annually. Scale that to 5%, and it exceeds $1.4 billion yearly. And here’s the kicker: Nigeria has the raw resources to make this happen. In 2021 alone, Nigeria flared 6.63 billion cubic meters of natural gas—wasting roughly $761 million worth of energy. That power is burned into thin air when it could be turned into a highly profitable Bitcoin mining industry. Instead of letting energy go to waste, Nigeria could harness it to power a digital asset that has outperformed every major financial instrument over the past decade. Beyond direct mining revenue, this industry would attract foreign investment, create thousands of jobs, and establish Nigeria as the hub for blockchain infrastructure in Africa. Nigeria’s economy is tied to oil, a commodity plagued by price swings and geopolitical instability. Foreign exchange reserves fluctuate between $35-40 billion due to external factors. Instead of watching reserves erode from inflation and external shocks, Nigeria could build a treasury of digital assets free from political manipulation and fiat debasement. The national grid in Nigeria now generates about 6,000 MW, but that is still insufficient for a country of over 200 million people. Millions rely on diesel generators, one of the most expensive and polluting forms of electricity, while oil companies flare billions in wasted gas every year. Rather than flaring unused gas, energy companies could redirect it into mining operations, turning a regulatory headache into a highly profitable industry. Major firms like ExxonMobil have already piloted this concept in Nigeria; imagine this at scale. Renewables also present a golden opportunity. Nigeria has over 14 GW of untapped hydroelectric potential. Bitcoin mining could catalyze large-scale renewable energy projects, ensuring profitability while expanding electricity access for businesses and households. Critics argue that bitcoin mining’s energy intensiveness leads to environmental issues. While valid, these concerns have spurred innovations that optimize energy usage. Rather than relying solely on fossil fuels, Nigeria could integrate traditional energy sources with renewables, ensuring a greener, more sustainable process. Additionally, while bitcoin’s volatility is noted as a risk, the “stability” of the Naira has long been illusory, and volatility is simply the price of admission. Another counterargument is the initial infrastructure investment required to build a competitive mining ecosystem. Yet, this challenge presents an opportunity rather than a drawback. Necessity is said to be the mother of invention – Nigeria’s need for more power should force experimental approaches into optimizing existing energy sources, whilst creating new ones. Currently, the U.S. controls 38% of the global Bitcoin mining hash rate. Africa? Barely on the radar. Nigeria has the resources, tech-savvy population, and market demand to change this dynamic. The window is open—but it won’t stay open forever. With the recent U.S. executive order for a global Bitcoin reserve under President Trump’s administration, Nigeria must act decisively—securing investments, implementing mining-friendly policies, and leveraging its untapped energy. Bitcoin is the future. Nigeria has the resources, talent, and vision to dominate. The only question is: Who will bet on Nigeria? _________ Ololade Babalola is the founder of Endiora Labs, a Blockchain and AI advisory firm. Formerly a Director at Fidelity Digital Assets, he led the delivery of their institutional trading platform. With 19+ years in tech and product, he builds tools at the intersection of decentralization, intelligence, and automation.
Read More- April 12 2025
- BM
“We need to focus on catching up rather than leading.” – AI professor on building for Africa
One of Africa’s most consequential conversations in the current moment is, what does a truly African Artificial Intelligence future look like? Depending on who you ask, AI in Africa promises to unlock new levels of productivity across healthcare, agriculture, education, and several other sectors. But as Abejide Ade-Ibijola, a professor of Artificial Intelligence (AI) and Applications at the Johannesburg Business School (JBS), tells TechCabal, that future comes with a warning. “The excitement around AI is real, but we risk building technologies that widen the very inequalities we are trying to solve,” he said in an interview. While Africa only accounts for 2.5% of the global AI market, the continent’s innovations are expected to make an economic impact, potentially contributing $2.9 trillion by 2030. Countries like Kenya, Nigeria, and South Africa are leading the charge, applying AI to local problems, including interpreting indigenous languages and boosting crop yields. But Ade-Ibijola says progress must be rooted in realism. “The adoption of AI will likely create a two-tiered reality,” he said. Those in urban centers like Johannesburg and Kigali will enjoy the benefits of AI-powered mobile phones, virtual reality, and other cutting-edge technologies. Meanwhile, those in rural areas, often lacking basic infrastructure like electricity, risk being left behind.” Without infrastructure, affordability, and intent, he believes that the benefits of AI will remain concentrated among the privileged few. Consideration must also be made about building ethical, unbiased AI systems as well as datasets that reflect Africa’s cultural and historical nuances. This interview has been edited for length and clarity. How do you envision AI shaping industries, societies, and daily life in the coming decades in Africa? Artificial intelligence is here to stay, and its impact will be profound across numerous sectors. In healthcare, for instance, AI has the potential to revolutionise diagnostics and treatment. However, we must address the issue of affordability. While AI-driven surgeries might offer greater precision, we risk widening the gap between those who can afford such advanced care and those who cannot. This existing socio-economic divide is a critical factor we need to consider as we integrate AI. In agriculture, drones equipped with sensors and irrigation systems can optimise crop management, reducing reliance on pesticides and manual labor. We can also foresee robotic systems handling tasks like tilling and planting, boosting efficiency and productivity. Education is another area ripe for AI integration. AI-powered tools can generate personalised learning plans, provide language translations for complex concepts, and even facilitate self-paced learning. While robotics in classrooms is still nascent, particularly at the university level, we could see physical AI-driven facilitators in the future. Manufacturing is already heavily reliant on AI, as seen in automated production lines in Japan and China. In Africa, we are beginning to see similar trends, with automated ordering systems in fast-food chains and food delivery robots in hotels. These advancements, while exciting, raise concerns about job displacement. If petrol stations and retail stores become fully automated, what happens to the workforce? The adoption of AI will likely create a two-tiered reality. Those in urban centers like Johannesburg and Kigali will enjoy the benefits of AI-powered mobile phones, virtual reality, and other cutting-edge technologies. Meanwhile, those in rural areas, often lacking basic infrastructure like electricity, risk being left behind. This widening gap between the “haves” and “have-nots” is an inevitable consequence we must address proactively. The excitement surrounding AI is undeniable, but we must be mindful of its societal implications. We need to focus on equitable access and address the potential for increased inequality. As we embrace these transformative technologies, we must ensure that their benefits are shared by all, not just a privileged few. What cultural or societal values should guide AI’s development in Africa? Cultural and societal values that should guide AI development in Africa must focus on inclusivity and accessibility. Many of our people, especially in underprivileged rural areas, are still living in conditions akin to the Second Industrial Revolution. For example, some still use charcoal irons and lack access to electricity, television, or the internet. When we talk about AI, we often speak from an urban perspective, but these technologies must reach those in remote areas to improve their daily lives. For instance, imagine a medical diagnosis app powered by AI that operates on a phone. If we could provide phones to villages and ensure the app works in local languages, it could act as a “doctor on their phone.” This app could offer preliminary diagnoses, recommend seeing a nearby doctor, or even suggest safe indigenous remedies when appropriate. To make this feasible, we would need solutions like solar energy or lithium batteries to power these devices. This approach ensures that AI serves everyone, not just urban populations. We must be intentional about addressing inequalities. This means bringing technology directly to underserved communities – installing solar panels, providing access to devices, or even deploying mobile tech hubs with laptops for young people to learn and interact with advanced technologies. These initiatives can inspire innovation and help children imagine their future roles in tech development. Continuous education for both children and their parents is vital. If building schools isn’t immediately possible, we can organize open days or trips to expose them to new ideas and opportunities. Our data must feed into our own AI systems rather than perpetuate global disparities. By aligning AI with African values like Ubuntu and ensuring equitable access, we can create technologies that reflect our cultural heritage while promoting social responsibility. What are some of the challenges of building unbiased, ethical AI systems in Africa? AI models are fundamentally built upon data. Without vast datasets, or big data, AI cannot function. The machine learns patterns and makes decisions based on this data. However, as humans, we are inherently flawed, and our data reflects that. Consider the unfiltered content on platforms like X. It is filled with profanity, political criticism, and personal insults. If an AI is trained on this data, it will inevitably learn and replicate these behaviors. This is why
Read More- April 12 2025
- BM
No, PaidHR is not a fintech. It’s following a global HR-tech playbook
In 2024, at the launch of PaidHR’s cross-border payroll product, Seye Bandele, the CEO and co-founder of the Nigerian HR-tech upstart, spoke to TechCabal about the company’s plans to include more fintech-adjacent products. At the time, we asked if PaidHR—which processed over ₦29 billion ($18 million) in staff salaries in that same year—was venturing into fintech; the answer was a definitive no. Months after our conversation, the HR-tech startup launched a wallet app that allows employees to access and spend their wages without needing to transfer to a bank. The wallet app, which currently processes over ₦1.3 billion ($835,134) monthly, has triggered a knee-jerk reaction: “Yet another startup selling airtime.” PaidHR’s playbook isn’t new. Global HR-tech companies like Deel, Remote, and Rippling have followed a similar arc—starting with payroll, then embedding financial services to deepen user engagement and drive revenue. Deel offers global payroll with built-in wallets and a Deel Card, enabling cross-border workers to hold and spend earnings. Rippling, which began as an HR platform, now includes corporate cards, expense management, and financial automation. Remote also facilitates multi-currency payments and localized benefits. PaidHR’s evolution mirrors this path. Blurring the lines between HR and fintech PaidHR launched in 2021 with a simple thesis: if you want to improve productivity in Africa, you need to fix how people work and how they get paid. The company launched its core HR and payroll software for small and medium businesses, layering different functionality over time: Earned Wage Access (EWA) in 2023, cross-border payroll in 2024, and now a wallet product that allows employees to access and spend their wages without needing to transfer to a bank. Each feature solved a user pain point. EWA, which has disbursed ₦150 million ($93,803) to the startup’s 2000 users, tackled liquidity gaps. Cross-border payroll simplified compliance and FX risk for remote teams. And the wallet? That’s where the money stays and gets spent. “Somebody takes an advance of ₦5,000 but ends up with ₦4,700 after charges,” Bandele said. “Then he has to pay more fees just to send it to a bank or Opay. It didn’t make sense. We built utility directly into the wallet. Airtime, food, bills—everything he already spends on.” Since PaidHR had an existing technology that provides an employer wallet, it was easy to provide an employee wallet, Bandele said. Follow the money PaidHR’s wallet has processed ₦1.3 billion ($835,134) in transaction volume monthly since inception. That’s the portion of salaries that employees choose to keep inside the platform instead of cashing out. 1. Value-Added Services (VAS) Margin According to Bandele, most wallet spend goes toward airtime, data, power bills, and transportation—routine but high-frequency expenses. PaidHR doesn’t offer these services directly; it aggregates licensed partners and takes a cut of each transaction. If 10% of the ₦1.3 billion is spent on these VAS channels and PaidHR earns a 2% margin through revenue sharing, that’s ₦2.6 million in “passive” revenue per month—₦15.6 million over the last six months. That’s 0.2% of assets under management (AUM) generated without lending, risk, or customer acquisition costs. 2. Float Leverage via EWA By keeping money in-app, PaidHR also gains control of float, which can fund earned wage access. It’s effectively recycling employer payroll funds into employee credit without external financing. Employees withdraw wages early, spend in-app, and the platform gets paid twice—once on the credit spread and again on the utility margin. 3. Cross-Border Payroll Margins The platform also facilitates multi-currency payroll across 49 countries. PaidHR earns fees on FX and disbursement, especially for employers with distributed teams. “The entire cross-border rail sits on the wallet infrastructure,” Bandele said. The company doesn’t break out FX margins, but in similar platforms, they can range between 1.5–3%, depending on the destination. HR infrastructure, Fintech economics Despite the fintech-style revenue mechanics, PaidHR still identifies as an HR company. Its biggest income stream remains subscription fees paid by employers to manage payroll and staff. But the lines are starting to blur. Employers fund wallet accounts monthly to run payroll. Employees increasingly keep their wages on the platform to save, spend, or borrow. And PaidHR captures margin at every node. “People spend where they earn,” Bandele said. “We’re just making it seamless to do both.” The platform now partners with licensed fintechs like Risevest to offer savings and FX options directly from the wallet. Payroll has become a gateway into broader financial behavior. What comes next PaidHR is raising a seed round and looking to expand across Nigeria into other West African countries as well as East Africa. International employers can already pay African staff in dollars or local currency through the platform. The next phase may involve more embedded finance—healthcare, insurance, and transport. Asked if the wallet or FX rails will eventually overtake subscriptions as the core business, Bandele didn’t rule it out. “We’ll see,” Bandele said. But if the current numbers are any guide, the logic is clear: The more money PaidHR moves, the more it makes. Whether or not it calls itself a fintech.
Read More- April 11 2025
- BM
Lesotho considers Starlink license in bid to open to U.S. amid tariff war
While Lesotho breathes a sign of relief with the 90-day pause of the 50% sweeping tariffs – the highest in the world – the country’s prime minister, Samuel Matekane, wants his government to remove barriers to US investment, including Elon Musk’s Starlink. At the Third Public-Private Dialogue National Conference on April 9 in Maseru, Matekane framed Starlink’s license approval as part of broader efforts to attract U.S. investment. Critics, however, argue that the tariffs are unrelated to Starlink and that opposition to the company stems from its 100% foreign ownership, which raises concerns about national interests. They urged the government to address the issue transparently, rather than linking it to the tariff debate. The Lesotho Communications Authority (LCA) confirmed it received Starlink’s application for a network services license in February. However, the bid has faced strong local opposition during public consultations. Stakeholders like Vodacom Lesotho and Section Two, a constitutional advocacy group, argue that Starlink should establish local shareholding before receiving approval. They noted existing telecom players, such as Econet Telecom Lesotho and Vodacom Lesotho, as examples of foreign investment coexisting with national interests through local ownership. Approving Starlink’s license as a potential sweetener for the Trump tariffs could strain Lesotho’s diplomatic relations with South Africa, which rejected Starlink’s application over similar concerns about foreign ownership. This decision could also intensify competition for South Africa’s Vodacom, which holds an 80% stake in Vodacom Lesotho, with the remaining 20% owned by the Lesotho government. While granting market access to U.S. companies like Starlink might improve diplomatic and trade relations, there is no guarantee it would lead to tariff reductions. Trade negotiations are influenced by broader economic and political factors, and goodwill alone may not suffice. Lesotho’s Trade, Industry, and Business Development Minister, Mokhethi Shelile, expressed skepticism about the 90-day reprieve in an interview with South Africa’s public broadcaster, SABC. “I do not know what is going to happen after 90 days,” he said. “ It is said that it is done so that we can sit down and negotiate. I do not have a good experience in terms of trying to get meetings with the Trump administration.” Lesotho’s economy, with a GDP of $2 billion, is heavily dependent on exports. The textile industry is a major contributor, exporting to the U.S. for brands like Levi’s and Calvin Klein under the African Growth and Opportunity Act (AGOA). The U.S. receives $240 million worth of goods annually from Lesotho, compared to only $8 million in exports to Lesotho. A proposed 50% tariff on Lesotho’s exports threatens 12,000 jobs in the AGOA-supported factories. Despite the significance of the U.S. market, South Africa remains Lesotho’s primary trade partner, with $351 million in textile and diamond exports in 2023.
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- April 11 2025
- BM
Digital Nomads: Grace Abikoye’s journey from Unilorin to a global investment bank
Tucked in the quiet contours of Ilorin, a city in Nigeria’s North Central, the University of Ilorin (Unilorin) has stood for half a century as an academic beacon. Now, with the rise of remote work and a new generation of talents, it’s becoming something more—a launchpad for global ambition. No, it has become a place where deserving students, regardless of their backgrounds, nourish their wildest dreams to work in the best global financial companies. The university’s merit-based system rewards the best-performing students, whom they call “Scholars,” creating an ecosystem where excellence isn’t just encouraged but expected. At the heart of this culture is The Investment Society (TIS), a student-led organisation existing across different universities that grooms young Nigerians for careers in global finance. One such student was Grace Abikoye, who now works full-time at a leading global investment bank and seconded on a global sustainability initiative in the UK. “For context, if I were to compare my job to a role at a top Nigerian financial institution, I’d say I work somewhere in strategy,” said Abikoye. “My role involves more of strategy and project management. While I was briefly exposed to the trading floor during my internship before transitioning to a full-time role, I’ve mainly worked in business support, interfacing with regulations, strategy, and executive coverage.” Beyond her day-to-day role in strategy and project management, where she’s managing relationships and projects, developing strategies, and travelling rather infrequently—but necessarily—she’s stood for years as an inspiration for many students after her. Grace Abikoye by the Seine River, France, which hosted the open-water events at the Olympic Games 2024 But her story isn’t the typical high-flying finance trajectory—it’s one of audacity, a calculated risk to abandon the familiar and dive into a world that, for many Nigerians, seems impossibly distant. A win for TIS, a win for Unilorin Abikoye’s path to securing a full-time role at a prestigious global investment bank was not straightforward. She’s had to persevere, position strategically, and commit to learning from scratch, she said. As an Agricultural Economics undergrad, her introduction to the financial sector began during her time at Unilorin, where she actively sought out opportunities beyond the lecture room. She had joined societies like TIS and attended networking events. The turning point came when she applied for an internship at a top global investment bank. She’d applied and failed to secure a spot multiple times before she landed one early in 2021. The internship, a rigorous ten-week programme, exposed her to global markets, where she rotated on the linear rates trading and FX sales desks. “I struggled a bit with the core financial concepts at first,” she admitted. “But I realised I had a strong ability in relationship management and strategic thinking. I leaned into those strengths.” Her resilience paid off. Despite the challenges, she made an impression on her managers and was offered a full-time position while still an undergrad at Unilorin—a fully sponsored opportunity. 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Beyond her core responsibilities, she has found immense value in exposure to leadership at the bank and initiative. “I support executives with key stakeholder meetings. It
Read More- April 11 2025
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US investors flag corruption, IP and digital tax risks in Kenya and Nigeria
US tech investors face operational and regulatory challenges in Nigeria and Kenya, as longstanding issues around corruption, intellectual property (IP) violations and new digital tax regimes targeting foreign firms frustrate investment efforts, according to the US Trade Representative’s Foreign Trade Barriers report. The report faulted the two countries—among the top tech hubs in Africa—over failure to clamp down on corruption and enforce IP protection policies despite assurances from both governments. Jamieson L. Greer, the USTR, said counterfeit software, pirated music and video content, and widespread online copyright infringement are undercutting licensed operators in Nigeria. “IP enforcement remains inadequate due to chronically insufficient resources for enforcement agencies, porous borders, entrenched trafficking systems that make enforcement difficult, and corruption,” he said. US companies operating in Nigeria “experience difficulties in day-to-day operations as a result of inappropriate demands from officials for ‘facilitative’ payments,” the report said. Political infighting and a lack of judicial capacity in the country remains hurdles to anti-corruption reform. While Kenya has made progress in supporting its startup ecosystem, the USTR pointed out concerns around bribery and IP protection—particularly in the digital space—persist. More troubling for investors is the competitive disadvantage faced by US firms that abide by stricter legal and ethical standards. Many reported they routinely lose out to foreign competitors willing to bend the rules or pay bribes to secure contracts “US firms continue to report direct and indirect requests for bribes from multiple levels of the Kenyan Government,” the US Trade Representative said. Despite signing the World Intellectual Property Organization (WIPO) Copyright Treaty nearly 30 years ago, Kenya has yet to ratify it, creating a regulatory gap that enables widespread copyright infringement with minimal consequences. Changing tax regimes The recent changes to both countries’ tax regimes are also another source of concern for US digital service providers like Amazon, Google, Meta, and Netflix. In December 2024, Kenya replaced its controversial digital services tax with a new “significant economic presence tax”—a 3% levy on gross revenues earned by non-resident companies through digital platforms. The law applies to foreign companies that do not maintain a permanent physical presence in the country and earn more than KES5 million ($38,800) annually from Kenyan users. Platforms like Netflix and Microsoft are now subject to the tax, raising concerns over rising compliance costs and the risk of regulatory overreach. In Nigeria, the government has taken a more expansive approach. Since 2020, non-resident digital companies have been subject to both income and VAT taxes on services provided to Nigerian customers. The report comes when President Donald Trump has threatened to upend the global trade and investment climate with higher tariffs. Trump has paused the tariffs, giving countries including Nigeria and Kenya until June to eliminate barriers imposed on US goods and services.
Read More- April 11 2025
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Experts see Trump’s tariff triggering domino effect on Nigerian startups
This article is part of TechCabal’s ongoing coverage of the impact of Trump’s tariffs on Africa’s technology landscape. Frank Eleanya, Ngozi Chukwu, Faith Omoniyi, and Muktar Oladunmade also contributed to this report. The zero-interest era in the US saw venture capital firms pour billions into emerging markets, including Africa, in search of outsized returns. But the US trade tariff, paused for 90 days, could dampen non-oil export volumes, create unstable exchange rates, and fuel inflation if or when resumed. This could force investors into a ‘wait and see’ approach by withdrawing from African markets, hitting sectors like e-commerce, logistics, agriculture, fintech, and technology, where most Nigerian startups operate. “The uncertainty would likely deter investment inflows into African startups, as potential investors assess the risks involved,” Temitope Omosuyi, a UK-based investment analyst, said. “The impact will extend to most of their prospects, particularly in logistics and cross-border payments.” March 2025 saw one of the lowest monthly venture capital funding into the African tech ecosystem since late 2020, with just $50 million in funding announced, according to data from funding tracker Africa: The Big Deal. Funding also dropped 5% to $460 million in Q1 2025 from $486 million raised in the same period last year. VC investments in Nigeria across sectors remained unchanged in 2024 ($410 million) and are the lowest since 2021. Maya Famodu of Ingressive Capital, a pan-African venture capital fund, noted that in the short term, high tariffs mean inflation, and with the economic dominoes happening in the West, she anticipates a recession. “Recession means a buyers’ market and more prudent and defensive investment strategy for US-based institutional investors, which will not benefit Africa,” she added. But Tayo Oviosu, Paga’s CEO, believes that the tariffs will not have an outsized impact on funding for the continent’s tech ecosystem. He expects that while global capital flows may shift, investor appetite for African startups might rise due to the tariffs. “I think investors will look to deploy capital now because it is a good time to invest in the private market against the public markets because of the stock market decline,” he said. Before the tariffs were suspended, returns on U.S. treasury bills had risen as prices fell, driven by increased investor demand for safer asset classes during uncertain times. Despite this shift to more stable, lower-risk assets, some investors think this might drive more funding to African startups. “The tariff approach can lead to short-term slow growth and will lead investors to want to buy bonds, and that demand will lead to lower rates,” Oviosu added. “This, I think, helps emerging markets like Africa because investors will want a mix of safety and returns; thus, they will allocate more outside of the US and in equities outside of the US.” 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 Nigerian exporters remain optimistic despite tariffs Under the African Growth and Opportunity Act (AGOA) legislation, Nigerian exporters enjoy duty-free access for non-oil sectors like agriculture and manufacturing. According to data from the National Bureau of Statistics (NBS), non-oil exports more than tripled to ₦309.1 billion ($196.6 million) in 2024 from ₦86.4 billion ($54.9 million) in 2023. For small e-commerce players, the impact is immediate: a $100 bag of cassava flour now carries a $14 duty. This could cut margins or raise prices, depending on whether the seller decides to bear the cost or pass it on
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- April 11 2025
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TechCabal Daily – FairMoney, more money
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! Good morning. We hope you have an A+ day (and weekend). But if not, just know you’re still doing better than the naira. The currency’s been slipping faster than your phone on a rainy Lagos danfo seat—and at this point, $1 is moving like it’s trying to break its own personal best. We bring you news from our sister publication Zikoko: Hertitude is a safe space for women to celebrate, connect, and dance the night away after the stress of Q1 2025. Get tickets for yourself and loved ones at 20% off when you use the code TECHSIS25. Be there. FairMoney grew revenue to $78 million in 2024 MTN Group to sell 11% of its Nigerian subsidiary Bad weather, no Amazon Kuiper satellite Funding Tracker World Wide Web 3 Opportunities Fintech FairMoney grew revenue to $78 million in 2024 on deposit-led lending Laurin Hainy. FairMoney CEO Image Source: FairMoney 2024 was a great year for FairMoney. The fintech remained profitable, grew its revenue, and increased its profit to ₦7.9 billion ($5 million) from ₦780 million ($490,000). As revenue grew, FairMoney also improved its profit margin, increasing from 1% in 2023 to 4.79% in 2024. The fintech keeps roughly ₦6.5 from every ₦100 it makes. However, all this growth was only possible because the fintech stopped relying on borrowing money from other sources like commercial papers to finance its loan book. It now uses customer deposits—which grew significantly from ₦2.9 billion ($1.9 million) to ₦72.9 billion ($46 million)—to finance over 55% of its loan book, thereby increasing its margins and profitability. FairMoney makes money from lending to Nigerians. It offers quick loans, and within minutes, its customers can start spending money they borrowed from Fairmoney at a 10% monthly interest rate. The high interest rate makes FairMoney’s approach to lending seemingly healthy, as its net interest margin stands at 64.72%, but it also makes it likely that several customers won’t repay their loans. This was reflected by a 30% increase in its loan impairments. The company told TechCabal that this figure—₦59.4 billion ($37 million)—is inflated by the company’s accounting approach, which treats a loan as impaired immediately upon its issuance and until it is repaid. The business can also argue that its model works on the continent because of its profits, growing revenue, and its high 81.7% net interest margin. You can read TechCabal’s Muktar Oladunmade’s article about FairMoney’s 2024 financial report 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. Telecoms MTN Group to sell 11% of its Nigerian subsidiary Image Source: MTN When we reported that MTN Group, Africa’s largest homegrown telecom operator, was moving its Nigerian headquarters to Eko Atlantic City, the reactions had us rolling off the edge of our seats. Some sharp minds even theorised that MTN Nigeria was funding the move with cash from the telecom tariff hikes. Yes, it cost an arm and a leg to build on Lagos’ futuristic city, but MTN Nigeria is likely not funding this from the tariff increase. If anything, it is through fundraising, share sales, revenue budgets, and commercial papers. Case in point: MTN Group plans to sell 11% of its shareholding in its Nigerian subsidiary, MTN Nigeria. It currently holds 76% of shares in its Nigerian business and it will sell down to 65%. The telecom company is yet to decide when it will begin the secondary sale of its business, whether the offers will be made public, or even how much a unit will cost. However, the company notes that it will consider selling after its Nigerian operations return to profitability. And they’ll need that bounce-back. In 2024, MTN Nigeria bled ₦400 billion ($252 million), losing its crown as the group’s top cash cow. This isn’t their first sell-down, but it’s bigger than 2021’s retail investor offer which brought in ₦575 million ($362,000) and reduced MTN Group’s stake from 78.8% to 75.6% in the process. MTN has made some interesting moves lately: relocating its Nigerian headquarters to Eko Atlantic, signing a deal to launch a Nollywood streaming platform, and developing a satellite-to-mobile project with Lynk Global to compete with Vodacom in South Africa. With the sale, there are two things here: it will either use the extra cash to make its Nigerian business whole again, or we’ve grossly underestimated the length the telecom operator will go to launch that Nollywood streaming platform. Introducing Zap by Paystack! Zap is Paystack’s first consumer-facing app designed for simple, fast and secure payments via bank transfer. Download Zap on Android and iOS → Internet Bad weather, no satellite; Amazon’s Kuiper will try again for its satellite launch Image Source: Tenor Amazon’s rocket was ready. The countdown was ticking. But Mother Nature had other plans. The much-anticipated launch of Amazon’s Project Kuiper’s first 27 satellites was shut down by clouds and strong winds on April 9. Somewhere in Texas, Elon Musk probably chuckled and whispered, “Nice try, Bezos.” Project Kuiper is Amazon’s answer to Starlink, with the low-earth orbit (LEO) project hoping to blast over 3,200 satellites into space to bring cheap, fast internet to the planet’s rural areas all over the world. And it has since partnered with Vodacom, a South African telecom company, to launch the satellites in the country, ahead of Musk’s Starlink, which still doesn’t have clearance to operate. Well, both Vodacom, Amazon, and Bezos will now have to wait. No new date was announced. Meanwhile, MTN is flexing with its satellite buddy Lynk Global, having already made the first satellite-to-phone call in South Africa. That’s one small phone ring for man, one giant leap for mobile networks. The trend signals that South African telecom operators are jumping in fast, hoping LEO-powered internet can fix what cell towers can’t. The market is buzzing,
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