- May 9 2025
- BM
Safaricom profit jumps 11% to $540 million as Ethiopian unit losses fall
Safaricom grew its 2024 full-year profit by 11% to $540 million (KES 69.8 billion), lifted by easing losses in Ethiopia and steady growth in its mobile data and mobile money services at home. The results mark a return to growth for Kenya’s biggest telecoms operator after two years of earnings pressure linked to its costly push into Ethiopia. Safaricom’s service revenue rose by 10% year-on-year to $2.8 billion (KES 371.4 billion) in the year to March, as customer numbers across the business jumped 16% to 57.1 million. Safaricom said growth was driven by increased mobile data usage, voice, and M-Pesa, which remains central to its revenue mix. The company’s main profit engine remained the Kenyan unit, accounting for most earnings. Losses from the Ethiopian unit halved to $165.7 million (KES 21.4 billion) as the company added more subscribers and ramped up its mobile money, M-PESA, rollout. “We are pleased with our performance in FY25 despite the various challenges that faced the operating environment, including economic disruptions, slowdown in GDP growth, and the impact of foreign exchange regime reforms in Ethiopia,” Safaricom said in a statement. Safaricom continues channelling investment into its Ethiopian subsidiary, building network infrastructure, and scaling M-Pesa following the mobile money platform’s launch in August 2023. “The baby, Ethiopia, is making more confident steps. It actually contributed 9% to group service revenue,” Safaricom chief financial officer Dilip Pal said. The Ethiopian unit remains in an early growth phase, but Safaricom is looking at the improving unit economics and rising subscriber numbers as encouraging signs. Ndegwa said the company expects to further narrow its Ethiopia losses to between $178.1 million (KES 23 billion) and $201.3 million (KES 26 billion) in the current financial year, compared to $472.4 million (KES 61 billion) in the year just ended. Its earnings before interest and taxes could rise 50% to $1.16 billion (KES 150 billion) in the year to the end of March 2026.
Read More- May 9 2025
- BM
Nigeria records 85% drop in account breaches in Q1 2025
Nigeria recorded an 85% decline in account data breaches in Q1 2025 compared to the final quarter of 2024, according to a new report by cybersecurity firm Surfshark. The country reported 119,000 compromised accounts between January and March, down sharply from 786,317 breaches in the previous quarter. The sharp drop signals a possible turning point for digital safety in Africa’s largest internet market, following years of rising cyber threats and inadequate consumer protection. While Nigeria still ranks 34th globally for data breaches and third in Sub-Saharan Africa in cumulative exposure since 2004, the decline suggests meaningful progress in protecting everyday users, particularly those most vulnerable to cybercrime, as the country slowly strengthens its digital security posture. The data, which Surfshark compiled from over 29,000 public databases, shows that globally, the total compromised accounts dropped by 93%, from 973.7 million in Q4 2024 to 68.3 million in Q1 2025. The most affected countries with these breaches include the United States (16.9 million breaches), Russia (4.4 million), India (4.2 million), Germany (3.9 million), and Spain (2.4 million). In Sub-Saharan Africa, since 2004, Nigeria has recorded over 7 million compromised accounts that have unique email addresses, bringing the country’s record to a total of 23.2 million account breaches. The country also had 13 million passwords of its citizens leaked over the years, placing users at risk of identity theft, account takeovers, extortion, and other cybercrimes. “Although the number of vulnerable accounts in all major regions decreased in Q1 2025 compared to the previous quarter, people should remain vigilant,” said Luís Costa, research lead at Surfshark. “Cyberthreats continue to evolve, and attackers are constantly adapting their tactics.” Costa advised individuals and organisations to adopt strong security practices, including regular updating of passwords, enabling two-factor authentication (2FA), and staying informed about potential risks. “To protect personal and organisational data, it is essential to follow strong security practices, regularly update passwords, enable 2FA, and stay informed about potential risks,” he added.
Read More- May 9 2025
- BM
9mobile loses over 300,000 subscribers as roaming deal with MTN stalls
Struggling telecom operator 9mobile is rapidly losing subscribers as it awaits regulatory approval for a national roaming deal with MTN Nigeria. The deal, which could grant 9mobile access to MTN’s extensive infrastructure to improve its network coverage and service quality—a sore point for many subscribers—is progressing more slowly than expected. The operator lost 318,825 subscribers in February and March 2025 alone, according to data from the Nigerian Communications Commission (NCC), reducing its customer base to just 2.96 million and shrinking its market share to 1.72% from 1.9% in January 2025. 9mobile’s network has steadily declined, plagued by outages, poor coverage, and slow data speeds. Limited investment under new owners, LightHouse Capital, has worsened the situation, frustrating customers and driving mass exits. Retention efforts through support campaigns and promotions have failed, with even number porting hindered by network unavailability. As market share dwindles, the stalled roaming deal with MTN is seen as a critical fix for the struggling operator. MTN and 9mobile declined to comment on the status of the roaming deal. According to two people familiar with the matter, MTN Nigeria and 9mobile are still waiting on the NCC to greenlight the deal. While the technical and commercial aspects of the partnership have been outlined, regulatory clearance is essential to ensure compliance with industry rules and to uphold a level playing field. The NCC must evaluate whether the roaming arrangement aligns with national priorities, including the Nigerian National Broadband Plan and digital economy goals. As part of the approval process, the NCC also examines the deal’s potential to enhance rural connectivity, support infrastructure sharing, reduce costs, and improve service quality in underserved areas. This scrutiny ensures that such partnerships benefit the participating companies and align with broader public interest. Additionally, the NCC must verify that the agreement complies with licensing requirements and technical standards to avoid market distortion or anti-competitive behavior. The regulatory approval timeline typically ranges from six to twelve weeks. This includes an initial documentation review (2–4 weeks), technical and commercial evaluation (2–6 weeks), potential stakeholder consultations (1–3 weeks), and final approval with public disclosure (1–2 weeks). The NCC did not respond to a request for comments. This isn’t the first time 9mobile and MTN Nigeria have collaborated on roaming. In August 2020, the NCC approved a three-month national roaming trial between the two operators in select areas of Ondo State. The pilot allowed subscribers from either network to connect via the other’s infrastructure where their primary service was unavailable. The trial was successful and set the foundation for a broader partnership. Since then, both parties have pushed for a long-term agreement that includes shared access to network resources and spectrum bands. Under the current proposal, MTN would also gain access to 9mobile’s 900 MHz, 1800 MHz, and 2100 MHz frequency bands, potentially optimizing overall network usage across the country. “The NCC is delaying because it knows a deal gives the other party (MTN Nigeria) the upper hand,” said one telecom executive who asked not to be named to speak freely. “They know what it means for MTN to get its hands on 9mobile’s spectrum.” But without regulatory approval, 9mobile remains in limbo. Once a major player with 23.4 million subscribers and 15.7% market share in September 2015 (when it operated as Etisalat Nigeria), the company has lost over 20 million users in less than a decade. Its current subscriber base of 2.96 million is a stark reminder of how far the operator has fallen and how urgently it needs a strategic solution. The roaming agreement, if approved, could offer 9mobile a critical lifeline. But every delay further erodes its position in Nigeria’s competitive telecom market.
Read More- May 9 2025
- BM
Safaricom explores satellite partnerships amid rising Starlink pressure
Safaricom, Kenya’s largest telco, is exploring a partnership with satellite internet providers to expand access to underserved areas. CEO Peter Ndegwa disclosed the plan during the company’s earnings call on Friday, framing satellite as part of a wider push to grow Safaricom’s fixed broadband business. This push comes at a time when global players like Starlink are intensifying efforts to reach deep rural markets, including a recent partnership with Airtel Africa, prompting questions about Safaricom’s long-term strategy in a space that is being threatened by other players. With a 36.1% share of Kenya’s broadband market, the company is now under pressure to hold its lead while exploring new ways to lift the country’s internet penetration rate, which stands at 40%. “This is a business (broadband) with a huge growth potential,” Ndegwa said. “We are focused on delivering fixed broadband solutions through fibre, fixed wireless, satellite, and other evolving technologies. We are also looking at opportunities to partner with satellite to offer more options and reach for our customers.” Safaricom did not name any potential satellite partners, but Starlink remains a likely contender. The SpaceX-owned service has already struck a regional deal with Airtel Africa and plans to launch in nine countries, including Kenya, targeting areas with the biggest connectivity gaps. As of December 2024, Starlink is Kenya’s seventh-largest internet service provider (ISP), overtaking established local rivals like Dimension Data and Liquid Telecommunications Kenya just six months after breaking into the country’s top ten. It now has 19,146 users, up from 16,786 three months earlier, capturing 1.1% of Kenya’s internet market, according to the Communications Authority of Kenya (CA). While still trailing far behind market leaders Safaricom and Jamii Telecommunications, its rise signals a shift in Kenya’s competitive broadband landscape, especially in hard-to-reach areas. Ndegwa made similar satellite partnership comments in a September 2024 interview with Bloomberg, following increased scrutiny over how Safaricom plans to respond to Starlink’s aggressive African expansion. But Starlink’s momentum has also drawn regulatory attention. The Communications Authority plans to raise satellite licence fees nearly tenfold and introduce a turnover levy, amid complaints from local ISPs, including Safaricom, that its pricing model and infrastructure strategy could distort competition.
Read More- May 9 2025
- BM
Quick 
Fire with Ilamosi Ivienagbor
Ilamosi Ivienagbor is a senior sales manager at Big Cabal Media, where she leverages her diverse skills to create and implement effective sales strategies. Ilamosi previously worked in the business development team at Flutterwave. With a background in mass communication (BSc and MSc), Ilamosi has a fine blend of experience across media, sales, admin, and people operations. Outside of her corporate role, she runs a footwear business, designing custom footpieces for both men and women. Ilamosi also takes on freelance voice-over projects, appears in TV commercials, and hosts shows. Explain your job to a five-year-old. I help people buy cool things from us, like when you want a new toy. But instead of toys, I sell ideas and services to companies. My job is to find out what they need (in terms of advertising) and then tell them how we can help them get the visibility they need. What is your sales superpower and why? I think my superpower would be “listening with empathy.” It’s like having the ability to understand exactly what someone is feeling and needing, even if they don’t say it out loud. It helps me find the right solution, even if it’s something they didn’t know they needed yet. What is the worst part about working in sales? The worst part is when people don’t follow through. It’s frustrating when you put a lot of time and effort into a deal, only for it to fall apart at the last second. Also, there’s a lot of rejection, which can be tough on days when things don’t go your way. Why did you get into the media industry and how has the journey been? I’ve always loved storytelling, whether it was presenting or hosting shows. (I mean, not to brag, but I have 2 degrees in mass communication.) Media is something I’m very passionate about. I got into the media industry because it’s dynamic and always evolving, and it gave me the chance to connect with people. The journey has been a rollercoaster with lots of learning, growth, and finding new ways to be creative while staying grounded in business. What’s one sales strategy you swear by that most people overlook? Building real relationships. It’s easy to get caught up in the numbers, but trust is everything in sales. People want to do business with people they like and trust, so I spend a lot of time nurturing relationships and making sure I’m genuinely invested in helping them succeed, not just closing a deal. In tough sales cycles, what’s your go-to move to revive a cold lead? I always try to go back to the original value proposition, why they were interested in the first place. Sometimes, a fresh angle or a personalised approach can reignite interest. If that doesn’t work, I keep the door open by offering something of value, like a helpful article or a new insight, just to stay top of mind. What is the wildest or most unexpected “yes” you have ever gotten in sales? There was one time I went to a client’s office (actually, at the start of the year) to pitch a tier of sponsorship for one of our events (HERtitude by Zikoko), and somehow, I ended up convincing them to come onboard as the headline sponsor (the highest tier) mid-pitch. It was totally unexpected, but it taught me the importance of taking risks and going for exactly what you want. Try it first. What’s the worst that can happen? What is your strongest opinion about tech sales? You need to understand the deeper needs of your client. It’s not just about the product; it’s about how it solves a problem or adds value. Tech is always changing, but human connection and problem-solving will never go out of style. What is one moment in your tech sales career you are proud of? I’m really proud of a partnership I closed last year for moonshot that came with visibility in countries like Kenya, South Africa and Ghana. That exact coverage was what we needed to shine light on the good we were doing with the Moonshot conference here in Nigeria. Let’s try a #SellMethisPen elevator pitch about sales: sell your footwear brand in a short sentence. You know how you always wish you could find footwear that are both comfortable and durable, but without paying a crazy price? That’s exactly what we do at Efia By Illy. Affordable, long-lasting comfort and you don’t even have to break the bank for it. How many pairs should I make for you?
Read More
- May 9 2025
- BM
TechCabal Daily – Jumia keeps profitability dream alive
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF. Congratulations to Cardinal Robert Prevost on becoming Pope Leo XIV, the 267th pope in history. His selection process was one of the fastest in history. My colleague joked that the cardinals were itching to get back their phones. If you’re curious about the tech that safeguards the conclave’s secrecy, WIRED has a beautiful explainer for you. Don’t forget to take time out to recharge this weekend and maybe see the Conclave movie if you haven’t. Let’s get into today’s dispatch! Quick Fire with Ilamosi Ivienagbor Jumia set profitability target for 2027 Airtel Money to go public in 2026 Seven African healthtech startups Join i3 programme Funding Tracker World Wide Web 3 Job Openings Features Quick Fire with Ilamosi Ivienagbor Image: Ilamosi Ivienagbor Ilamosi Ivienagbor is a senior sales manager at Big Cabal Media, where she leverages her diverse skills to create and implement effective sales strategies. Ilamosi previously worked in the business development team at Flutterwave. With a background in mass communication (BSc and MSc), Ilamosi has a fine blend of experience across media, sales, admin, and people operations. Outside of her corporate role, she runs a footwear business, designing custom footpieces for both men and women. Ilamosi also takes on freelance voice-over projects, appears in TV commercials, and hosts shows. Explain your job to a five-year-old. I help people buy cool things from us, like when you want a new toy. But instead of toys, I sell ideas and services to companies. My job is to find out what they need (in terms of advertising) and then tell them how we can help them get the visibility they need. What is your sales superpower and why? I think my superpower would be “listening with empathy.” It’s like having the ability to understand exactly what someone is feeling and needing, even if they don’t say it out loud. It helps me find the right solution, even if it’s something they didn’t know they needed yet. What is the worst part about working in sales? The worst part is when people don’t follow through. It’s frustrating when you put a lot of time and effort into a deal, only for it to fall apart at the last second. Also, there’s a lot of rejection, which can be tough on days when things don’t go your way. Why did you get into the media industry and how has the journey been? I’ve always loved storytelling, whether it was presenting or hosting shows. (I mean, not to brag, but I have 2 degrees in mass communication.) Media is something I’m very passionate about. I got into the media industry because it’s dynamic and always evolving, and it gave me the chance to connect with people. The journey has been a rollercoaster with lots of learning, growth, and finding new ways to be creative while staying grounded in business. What’s one sales strategy you swear by that most people overlook? Building real relationships. It’s easy to get caught up in the numbers, but trust is everything in sales. People want to do business with people they like and trust, so I spend a lot of time nurturing relationships and making sure I’m genuinely invested in helping them succeed, not just closing a deal. What is one moment in your tech sales career you are proud of? I’m really proud of a partnership I closed last year for moonshot that came with visibility in countries like Kenya, South Africa and Ghana. That exact coverage was what we needed to shine light on the good we were doing with the Moonshot conference here in Nigeria. Let’s try a #SellMethisPen elevator pitch about sales: sell your footwear brand in a short sentence. You know how you always wish you could find footwear that are both comfortable and durable, but without paying a crazy price? That’s exactly what we do at Efia By Illy. Affordable, long-lasting comfort and you don’t even have to break the bank for it. How many pairs should I make for you? Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. 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Read More- May 8 2025
- BM
Legend, Nigeria’s first publicly listed ISP, has bigger plans than just selling internet
When Legend Internet Plc rang the bell on the trading floor of the Nigerian Exchange (NGX) on April 24, 2025, it made history as the country’s first and only internet service provider (ISP) to go public. Unlike many IPOs, Legend Internet was listed by introduction, meaning no new shares were sold at the time of listing. Instead, the company made two billion ordinary shares available at ₦5.64 each, instantly adding ₦11.28 billion ($8.68 million) to the NGX’s market capitalisation. Since its listing, Legend’s shares have surged over 58%, landing in the NGX’s top 10 gainers. Legend Internet was founded in 2014 with a mission to democratize internet access in Nigeria. For years, the company quietly built out its fiber infrastructure in Abuja, laying over 250,000 meters of cable and connecting more than 10,000 homes. By 2024, Legend had grown into Nigeria’s fastest-growing last-mile fiber provider, with a footprint covering 250,000 homes in the capital city alone and a vision to reach one million homes nationwide within five years. Legend Internet provides high-speed internet, TV, and voice services through a single fibre optic cable directly to homes. At each location, an Optical Network Terminal (ONT) is installed, functioning as both modem and router to deliver wired and wireless connectivity. Users manage subscriptions and payments digitally via the MyLegend platform, which links to LegendPay for seamless renewals and customer support. Going public The path to public listing was anything but straightforward. Nigeria’s broadband market, while full of potential, is notoriously difficult for ISPs. Despite the country’s mobile connectivity boom, the fiber broadband penetration growth remains under 1%, starkly contrasting South Africa’s 30% annual growth. The reasons are many: high right-of-way costs, rampant vandalism of infrastructure, heavy taxation, and fierce competition from deep-pocketed mobile network operators. These challenges have forced over half of Nigeria’s licensed ISPs to shut down in recent years, leaving just 106 active players in a market of 20 million homes. Legend Internet, led by CEO Aisha Abdulaziz, understood from the outset that survival and scale would require more than technical expertise. Before going public, Legend Internet was privately funded through a mix of equity investments from founding partners, strategic investors, and reinvested operational revenues. Legend did not share the numbers. The focus was on building the network, customer acquisition, and digital platforms. As operations matured and the demand for capital increased to support long-term infrastructure growth and nationwide expansion, the company went public to raise more capital and strengthen its market position. “We’re an infrastructure-intensive business, and to expand, you need long-term capital,” Abdulaziz said. “The only place to find that is the capital market.” The company spent six months preparing for its listing, meeting the NGX’s rigorous requirements, including the 20% free float rule to ensure enough shares are available for public trading. Raising capital to fund expansion The listing on the NGX is just the start of a much larger play for Legend Internet. The company is aiming to raise an additional ₦150 billion ($93 million) through a mix of debt and equity to fund an ambitious expansion plan. That capital will support the extension of its fiber network beyond Abuja to Lagos and eventually to 31 states across Nigeria. The company will also upgrade its technology, hire talent, and scale operations. At the core of Legend’s strategy is a focus on affordability. Understanding that high costs remain a major barrier to internet adoption for millions of Nigerians, the company has pledged not to increase its subscription prices, which currently start at ₦21,521 ($16.55) per month. Instead, it’s focusing on driving operational efficiencies, building a local supply chain, and limiting exposure to foreign exchange volatility to maintain competitive pricing. According to its 2024 financial report, the company sharply reduced its cost of sales by 21%, which lifted its gross profit by 8.56% and boosted its gross margin to 59.5%. The company has focused on sourcing locally to reduce reliance on foreign exchange, which is volatile in Nigeria. Turning WiFi users into digital economy participants Legend is hoping to win with an aggressive push into free public WiFi. With 180 active hotspots across Abuja and more than 200,000 monthly connections, Legend is using free WiFi not just as a goodwill gesture, but as a strategic gateway into its wider ecosystem of digital services. “Free WiFi is more than charity, it’s strategic,” Abdulaziz said. “It’s marketing, it’s outreach, and it’s a bridge to the digital economy for underserved Nigerians.” Through its free public WiFi network, Legend introduces users to its broader ecosystem of digital services: LegendMail, Nigeria’s first indigenous email platform; LegendPay, a digital payments solution; and the upcoming MailPay, which will enable money transfers via email. The company’s goal is to turn these free WiFi users, especially from the 10 million low-income households with limited internet access, into long-term paying subscribers by offering valuable, easy-to-use services at their first point of digital contact. While free public WiFi initiatives in Nigeria have largely struggled due to operational costs, regulatory issues, and lack of sustainability, Legend believes its integrated model can succeed where others have failed. Past efforts by Google Station, Surfwella, and state-led projects relied mostly on advertising and government funding and failed due to a lack of a clear revenue stream and user engagement. But by linking free access with core services, Legend is hoping to guarantee consistent revenue and increased user engagement. For the company, the listing is just the start. It wants to build what Abdulaziz calls the “foundation layer” of Nigeria’s digital economy.
Read More- May 8 2025
- BM
Jumia predicts profitability in 2027 as Q1 results reflect consumer gains
Jumia, Africa’s leading e-commerce platform, expects to generate enough revenue to cover all operating expenses by 2027. This is not equivalent to net profitability, as taxes could still impact the projected bottom line, but it is a significant milestone for a public company that has historically reported losses. “Driven by strong underlying growth in our core consumer business and decisive actions to improve efficiency, we are updating our financial outlook,” Dufay shared in the SEC filing. He projects that 2025’s loss before income tax is expected to be $50–55 million and will shrink further to $25–$30 million in 2026. Jumia’s bold ambition to hit profitability by 2027 comes despite a rocky first quarter in 2025. Revenue slid to $36.3 million, a 26% year-on-year decline, which the company attributes to a slump in Egypt’s corporate sales, while total platform sales dipped 11%. Yet, the e-commerce giant is gaining ground with consumers, with orders increasing by 21%—the strongest growth in two years—fueled by a pivot away from unprofitable markets and a push into rural regions, where consumer sales climbed 10%. Fewer high-margin corporate deals dented gross profit, but easing currency pressures in Nigeria and Egypt slashed the pre-tax loss by more than half. Smarter logistics kept delivery costs and a leaner marketing strategy cut advertising expenses by 17%. A 61% boom in products from international sellers enriched Jumia’s catalogue, while 45% of new customers from late 2024 returned for more, up from 40%. JumiaPay’s payment volume held steady, covering 28% of sales, up from 25% last year. “We anticipate physical goods orders to grow between 20% and 25%, up from the previous range of 15-20%,” Dufay said in the report. “GMV is projected to be between $795 million and $830 million in 2025, a year-over-year increase of 10% and 15%, respectively, excluding foreign exchange impact.” Despite the company’s raised guidance and positive operational highlights, Jumia’s share price has experienced a decline. As of the time of publishing, the stock price is $2.40, down about 4.76% (a drop of $0.12) from the previous close of $2.52. Investors may be weighing its long-term potential against Africa’s economic uncertainties.
Read More- May 8 2025
- BM
PalmPay to expand to 4 African markets after processing 1.35 bn transactions in Q1
Nigerian fintech PalmPay will expand into South Africa, Côte d’Ivoire, Uganda, and Tanzania by the end of 2025, building on momentum from processing over 15 million daily transactions in its home market during the first quarter, Managing Director Chika Nwosu said at a press conference on Wednesday. He declined to disclose the value of the transactions. The expansion will bring PalmPay’s footprint to six African countries, following earlier launches in Ghana and Kenya. If successful, the broader presence could scale the company’s growth and position it for a future public offering. In Tanzania, the company will offer business-to-business services, but did not specify its product offerings for other new markets. PalmPay, which says it has more than 35 million users in Nigeria, will face stiff competition in its new markets. In South Africa, it will compete with MTN’s MoMo platform, which has 11 million registered users, and TymeBank, which has 9 million. In Côte d’Ivoire, fintech unicorn Wave dominates with over 20 million accounts and roughly 70% of the market. Uganda’s mobile money space is largely controlled by telecom heavyweights MTN and Airtel. Nwosu also shared that customers now perform an average of 50 transactions—including bank transfers and airtime purchases—monthly with a 99.5% success rate. “Mobile money wasn’t always perceived as viable, but we identified a core problem: system reliability, especially for simple things like free and seamless transfers,” he said. “So we invested in technology that’s efficient and reliable.” PalmPay also paid out over ₦4 billion ($2.4 million) in 2024 to 9 million users with its wealth product, which allows users to earn daily interest fees. Given that PalmPay offers users up to 22% annual interest on deposits in its wealth product, a ₦4 billion interest payout in 2024 means the fintech held over ₦18 billion ($11 million) in customer deposits on its wealth wallet alone. Customers also hold deposits outside of the fintech’s wealth wallet. Despite the limitations of its mobile money license, PalmPay users can earn interest and purchase treasury bills through its partnerships with insurance companies like Leadway Assurance and investment houses like ARM. “We have effectively built a super app that integrates banking, investment, insurance, and payments,” Nwosu said. “Think of it like a one-stop financial marketplace that is fully compliant through layered partnerships.” The fintech will also deepen its reach in Nigeria’s underserved regions despite being present in all of Nigeria’s 774 local governments and open an office in the six geopolitical zones, Nwosu said. After launching its first debit card in partnership with Verve in March, Nwosu told reporters that the company is on course to distribute over 5 million cards before the end of 2025. Palmpay will distribute the cards through its network of over one million agents nationwide, who serve over 13 million customers monthly. PalmPay will not rest on its Q1 numbers, as it is investing in technology, listening to customers, and continuously improving security, reliability, and product depth to attract more customers, Nwosu said. According to the Nigeria Inter-Bank Settlement Systems (NIBSS), licensed mobile money operators like PalmPay and OPay processed ₦71.5 trillion in transactions in 2024, a 53.4% increase from 2023’s ₦46.6 trillion.
Read More
- May 8 2025
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8 things African VC firms are looking for in a startup
If you’ve ever wondered what African VC firms are looking for when investing in startups, you’re not alone. There’s a lot of talk out there, but few resources break it down backed by data. This piece is based on a deep analysis of the Investor Guide, a working document created by TechCabal in partnership with investors across Africa to help founders and operators better understand how venture capital works on the continent. We pulled out eight key insights that show what really matters when African VCs decide to bet on a startup. 8 things African VC firms are looking for in an investment 1. Solve a real, local problem VCs want startups that solve problems in their communities, not just copy-pasting a global trend. Products that deeply understand the local market and show traction in their environment are much more attractive to investors. So, before considering raising money, ask yourself: Is this a real pain point, or just a nice-to-have? 2. Build in sectors that matter If you’re deciding what industry to build in, pay attention to where the capital is going. According to the Africa Investor Guide, the sectors with the most significant investment opportunities are those attracting the highest volumes of venture capital over the past five years. These “Big Six” sectors are: Fintech Logistics & Transport E-commerce & Retail Healthcare Agriculture & Food Energy & Water The selection isn’t arbitrary. It’s based on disclosed venture funding data from 2019 to Q1 2025. For instance, fintech alone secured over $7.6 billion, nearly half of all funding during that period. Energy & Water followed with $2.8 billion, while Logistics & Transport drew in $1.8 billion. These numbers reflect where investor confidence and opportunity are most substantial. These sectors don’t just raise capital, they solve foundational problems, which means they’re more likely to attract long-term investor backing. 3. Think beyond borders VCs aren’t just funding ideas, they’re funding growth. African investors want to see that your business has the potential to grow across countries or even go global. Having a clear expansion plan can significantly increase your appeal. 4. Be ready for the long game Unicorns don’t happen overnight, especially in Africa. It takes time, grit, and consistent growth. Investors are open to waiting but want a clear plan for long-term success. So don’t just pitch short-term wins, show that you’re thinking about how to build something that lasts. 5. Show a clear path to returns At the end of the day, investors want to know how they’ll make their money back. Whether it’s an acquisition, IPO, or a secondary sale, having an exit strategy is key. Don’t wait till due diligence to figure this out; weave it into your story early. 6. Be smart with your spending Several startups shut down recently due to weak operations and poor financial discipline. VCs are now placing a premium on founders who can manage resources well and make decisions based on data, not vibes. Lean teams. Clear budgets. Realistic projections. That’s what wins trust now. 7. Get your governance right It’s not just about the product. VCs also examine how you run your company, especially around governance, transparency, and leadership. Clean cap tables, resolved co-founder disputes, and defined roles all give investors peace of mind. Start acting like a board-ready company from day one, even if you’re still early. 8. Choose the right partners It’s not just about who gives you money but who builds with you. African investors want alignment. They’re not only putting in capital, but also their time, networks, and support. Make sure you’re choosing VCs who understand your market and your mission. The right investor isn’t just a bank; they’re also a builder. Related posts: Pros and cons of VC funding in 2025 Telecom Salaries in Africa: A Comprehensive Guide for 2025 Final thoughts Raising capital in Africa is tough, but not impossible. It requires more than a good idea; it takes clear execution, deep market knowledge, and the ability to build trust. The investor guide gives a clear picture of what African VC firms are looking for right now, and hopefully, this piece has helped you understand those expectations more practically. If you’re currently raising or just preparing, revisit these eight points and ask yourself honestly: Am I building what investors are looking for? And more importantly, am I building something people genuinely need?
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