- May 6 2025
- BM
CWG eyes East Africa, Middle East expansion after posting record profits in 2024
CWG Plc, one of Nigeria’s biggest IT services and infrastructure firms, is expanding to new markets in East Africa and the Middle East after recording its first billion-naira profit in 13 years. With operations in Nigeria, Ghana, Uganda, and Cameroon, the 32-year-old company which reported a 428% jump in profit to ₦3.04 billion ($1.89 billion) in 2024, is increasingly positioning itself as a pan-African tech enabler, moving beyond its traditional role as a systems integrator to develop homegrown digital platforms for banks, cooperatives, and Small and Medium Enterprises (SMEs). “We are poised for even more significant revenue and profit growth in 2025,” A CWG spokesperson said in an email to TechCabal. “As we move into 2025, we are diversifying our offerings to more sectors, strengthening our presence in our existing markets, and expanding operations into other East African countries and the Middle East.” Although CWG has yet to name the specific countries it is entering, Group CEO Adewale Adeyipo noted in the 2024 annual report that the group is targeting two additional markets to extend its tested offerings into new economies. According to the report, the spike in technology consumption across West Africa drove improved performance at CWG Ghana, with a recorded revenue of ₦8.4 billion ($5.0 million) in 2024 from ₦4.13 billion ($2.6 million) in 2023. CWG Uganda’s revenue more than doubled to ₦7.34 billion ($4.6 million) while Cameroon reported ₦11.9 million ($7,407) from zero revenue. Beyond geographical expansion, the group is increasing its focus on innovation through its software arm, Fifthlab. This division experienced a 558% revenue growth in the past year, driven by the creation of its platforms designed to solve practical problems within crucial economic sectors. “This is our next frontier, where we are applying everything we have learned and built, creating something truly transformative for CWG, the businesses, and the economies we serve across Africa,” Adeyipo said. In 2024, Finedge, the company’s banking and digital arm, onboarded nearly 20 new financial institutions. KuleanPay, its escrow and transaction management platform, experienced substantial growth, marked by a 2,000% increase in transaction volume. SMERP, CWG’s cloud-based business solution, which helps SMEs streamline their operations, recorded a 1,000% growth rate, and BillsnPay, its vending platform, processed over 30.5 million transactions worth ₦18.6 billion ($11.6 million). UCP, its cooperative management platform, expanded its customer base by 140%, processing 500 million transactions—a 50% year-on-year increase. Banking sector still drives growth In Q1 2025, CWG posted ₦1.48 billion ($921,281) in after-tax profit, up 368% from ₦316.1 million ($196,706) in the same period of 2024. Revenue rose to ₦15.3 billion ($9.5 million), an 83% surge from ₦8.38 billion ($5.2 million), largely fueled by IT spending from Nigerian banks. The banks, including First Bank of Nigeria, United Bank for Africa, GTBank, Fidelity Bank, First City Monument Bank, Stanbic IBTC, and Wema Bank, spent a combined ₦60.3 billion ($37.5 million) on IT and digital services in Q1, up from ₦45.3 billion ($28.2 million) a year earlier. A breakdown of CWG’s revenue sources shows IT infrastructure services accounted for the largest revenue share, contributing ₦6.2 billion ($3.7 million). Software revenue followed closely with ₦4.418 billion ($2.8 million), while ‘managed and support services’ contributed ₦4.415 billion ($2.7 million). “In 2024, several Nigerian banks decided to invest in IT infrastructure, particularly Finacle, cloud-based solutions, managed IT services, to mention a few,” the CWG spokesperson said. The group also expanded the Finacle footprint last year by adding three new sites in partnership with Infosys and supported MTN Nigeria in launching digital self-service kiosks in Lagos and Abuja. While CWG benefits from deep client ties and growing regional demand, it faces increasing competition from global IT consultancies such as Accenture and Microsoft. These firms offer bundled, end-to-end services that could pressure local players. CWG’s success will depend on its ability to scale quickly, localise effectively, and sustain innovation across its proprietary platforms. If it delivers, 2025 could be its most transformative year yet, financially and geographically.
Read More- May 6 2025
- BM
The AI agency helping Kenyan companies find on-ground applications of AI in their businesses
Ai Kenya started as a grassroots initiative in 2017. Back then, it was just a loose group of enthusiasts trying to demystify artificial intelligence (AI) for local developers and students. Today, it’s a full-blown AI agency with paying clients, policy influence, and a growing catalogue of services. It’s run by Alfred Ongere, who recently left his day job at a local fintech and neobank to focus on the company full-time. The shift matters. With governments drafting national AI strategies and global firms looking to outsource more AI-adjacent work to African teams, the race is on for who gets to shape the narrative and build the tools. AI Kenya wants in on both. What does Ai Kenya do? Ongere describes it as a “360-degree agency” that covers the business and policy ends of AI. That includes corporate training, AI summits, hackathons, readiness assessments, software development, and advisory services. The idea is to offer something practical, not just theoretical, to organisations trying to figure out where to start. “Ai Kenya operates as a for-profit company,” he said. “Our community program is a form of CSR that we provide to contribute towards the economic and technological development of the country.” Funding and staying afloat The company sits under a parent entity called Mind Intelligence. No outside investors. No grants. “So far it’s mostly self-funded,” Ongere told me two weeks ago. “I was working on Ai Kenya part-time till last year, October. Now, however, I am dedicated full-time and focused on expanding the team.” Ongere is not rushing to raise venture capital either. Instead, he is betting on client revenue to fuel the next phase of growth. “We want to show that AI services can be a viable business in this market,” he told me. “If we get the structure right, we can replicate it beyond Kenya.” That’s where things get interesting. Most African AI startups are either research labs chasing grants or early-stage product builders looking for global scale. Ai Kenya doesn’t quite fit that mould. It’s not trying to build the next ChatGPT, rather, it is trying to help businesses understand what AI can actually do for them, then build it with them. That includes enterprise-facing events like the AI Business Breakfast Summits. 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 “We want more businesses to intentionally experiment and grow their AI adoption, and break the barriers of efficiency that they currently have,” he said. “So we provide well-curated discussions and spaces that speak a language that they can understand.” Ai Kenya also makes revenue from consulting services, including corporate trainings on AI, AI advisory services, AI readiness audits, hackathon as a service, and candidate screening. Ongere is betting that Kenya’s private sector is ready for that kind of support, and not just from flashy pitch decks, but from people who’ve been close to the ecosystem for years. “The more businesses leverage AI correctly without making many mistakes and errors, the more the economy grows,” he said. Shaping AI policy Still, Ai Kenya isn’t ignoring the policy side. According to Ongere, the team contributed to Kenya’s newly released National AI Strategy under the Ministry of ICT. In 2024, tt also helped push back against a proposed Robotics and AI Society Bill earlier this year that critics say lacked public engagement. Ongere and his team joined other voices in calling for a more inclusive process. “We collaborate
Read More- May 6 2025
- BM
Why Safaricom is spending $309 million annually to future-proof M-Pesa
By any measure, M-Pesa is a success story. It is one of Africa’s most consequential financial innovations in the last two decades. The mobile money platform, launched by Safaricom in 2007, now processes over 21 million transactions per day and touches nearly every facet of Kenyan life, from taxi fares to school fees to utility bills to small business payrolls. But scale comes with its challenges. With M-Pesa’s core infrastructure under increased pressure from high transaction volumes, growing cyber threats, and high expectations from users, the mobile money platform has entered maturity, one that demands more than tweaks. It requires reinvention. Safaricom’s decision in March to invest over $309.6 million (KES 40 billion) annually into M-Pesa’s overhaul is not merely a technical upgrade. It is a strategic repositioning — a recognition that M-Pesa is no longer just a product but a crucial payments infrastructure. And in the digital age, infrastructure must be invisible, resilient, and ruthlessly efficient. “This year we will be going to what we are calling M-Pesa 2.0 which is the next phase of the M-Pesa platform,” Safaricom CEO Peter Ndegwa told TechCabal. “It’s about investing for capacity, for functionality, for stability and also for resilience which is about ensuring that customers can always rely on our ecosystem.” Ndegwa said that at the heart of the investment is an ambitious goal to reduce downtime to zero, boost stability, enhance security, and have the capacity to scale beyond its current ceiling. In some respects, Safaricom is facing the same existential tension that other tech giants confront — the burden of ubiquity. As more people and institutions come to rely on M-Pesa, the cost of failure rises exponentially. Today, a one-hour M-Pesa outage is no longer an inconvenience; it’s an economic disruption. Warding off competition M-Pesa 2.0 is expected to move the mobile money platform from legacy systems into a cloud-native, API-first architecture, a systems engineer with knowledge of the upgrade told TechCabal. The shift could have implications for speed, security, stability, and interoperability, which have recently become a focus for regulators like the Central Bank of Kenya (CBK). CBK is pushing for greater integrations across commercial banks, mobile money operators, fintechs, microfinance financial institutions, and Savings and Credit Co-Operative Societies (SACCOs). In October 2024, the regulator announced plans to roll out a new fast payment system (FPS), allowing users to send and receive money across all digital payment systems. If M-Pesa 2.0 delivers on its technical promise, it could become a critical pillar of the interoperability push. Unlike in the early years when Safaricom resisted integration efforts to shield M-Pesa from competition, it appears to align itself with the regulators, to comply and remain indispensable. The more seamlessly it connects with other players, the harder it becomes to bypass — a strategic play that could preserve its dominance in a more open and contested market. The size of Safaricom’s annual investment in M-Pesa points to a defensive and offensive posture. For years, the mobile money platform held a commanding lead in the market, enjoying first-mover advantage and network effects. But today, its dominance is under pressure. Banks, fintech startups, and even global tech players are encroaching on its territory, offering slicker apps, lower fees, and cross-border capabilities, which is weakening its historical lock-in. M-Pesa’s mobile money market share fell to 91% in 2024 Q4, down 2.3 percentage points from the previous quarter, as rivals continued to gain ground. Airtel Money, its closest competitor, rose 8.9% from 7.6% — its fifth consecutive quarter of growth. Securing trust While cyberattacks on Kenya’s financial institutions go unreported, reports by the Communications Authority of Kenya (CA) indicate that digital payments are becoming targets of such attacks. In Q1 2025, the CA detected over 2.5 billion cyber threats, a 201.85% increase from the previous quarter. With digital fraud rising in Kenya, M-Pesa’s scale makes it a high-value target for hackers. Ndegwa said the company is addressing the threat by deploying ethical hackers to test the system, beefing up system audits, and embedding fraud prevention into every layer of the platform. But the stakes go beyond technology. M-Pesa holds more than just user data; it holds livelihoods. The reputational damage from a major breach could be devastating, not just for Safaricom but also for digital payments. “Our customers trust us, and for us to actually secure that trust, we have to continue to keep ahead of the crooks,” Ndegwa said. “For you to have reliable, always-on, safe, secure, commitment to customers, it takes a lot of investment.” Safaricom sales agents interact with customers in Nairobi’s Kibra during celebrations marking M-Pesa’s 18th anniversary on March 7. IMAGE | SAFARICOM With over 34 million customers, M-PESA handled over 30 billion transactions in 2024 valued at an estimated $309.4 billion (KES40 trillion). It has over 160,000 agents spread across Kenya, exposing it to cyber fraud at many levels. “It’s not that we don’t normally have cyber threats. They are usually there, but we have enough guard rails that allow us to continue to build resilience,” Ndegwa said. Quiet upgrades M-Pesa’s last major system overhaul was in 2021 when Safaricom upgraded the platform from Release 4 to Release 6, which enhanced its handling of growing volumes of transactions and improved the platform’s performance. It was an extensive upgrade that took over 10 hours, with some service disruptions. Ndegwa said that because of the high investments the company has made since the last upgrade, Safaricom can do upgrades in under 10 minutes today. In contrast, most Kenyan banks shut services for close to 48 hours over the weekends to undertake upgrades. “We want, in six to 12 months, by the time we are done with M-PESA 2.0, there will be zero-customer downtime. We will be able to upgrade in the backend without customers realising that we are upgrading, which is the future of technology,” Ndegwa said. Safaricom may be setting the standard for what modern fintech infrastructure must look like— reliable, secure, and resilient. Its $309.6 million annual bet
Read More- May 6 2025
- BM
NITDA’s Kashifu Inuwa sees small language models as Africa’s entry into AI race
Kashifu Inuwa, Director-General of Nigeria’s National Information Technology Development Agency (NITDA), believes that Africa’s best bet in the global AI race lies not in catching up on massive infrastructure, but in building talent and developing small language models (SLMs) tailored to local realities. For him, small language models offer Africa a unique chance to leapfrog infrastructure-heavy barriers that have historically limited its participation in global tech revolutions. Despite its digital adoption growth, Nigeria has not been the top priority for recent AI infrastructure investments, like those by Cassava Technologies with Nvidia or MediaTek in Egypt. But Inuwa attributes this not to a lack of ambition, but to timing and strategic readiness. He pointed to Nigeria’s 2016 Local Content Guidelines, revised in 2018 and 2019, which laid early groundwork by encouraging data residency. Since then, NITDA has launched an eight-pillar roadmap focused on talent, research, infrastructure, regulation, and innovation, all geared toward fostering a vibrant digital economy. Rather than trying to match hyperscalers like OpenAI and Google in the compute arms race, Inuwa suggests Africa should focus on AI applications and models that solve local problems—from agriculture to healthcare. “We don’t need huge infrastructure to build our models,” he says, citing the development of Afro-SLM by Nigerian startup EqualyzAI as an example of lightweight AI engineered for African languages, offline environments, and rural communities. Such models, Inuwa argues, could democratise access and representation in AI systems. In partnership with Google, NITDA is laying the groundwork for Nigeria to become a regional cloud and AI hub. Discussions are underway around a sovereign cloud infrastructure, investment frameworks, and a pipeline of local talent to support it. Inuwa envisions Nigeria not just digitising government services, but also attracting hyperscalers, enabling semiconductor manufacturing, and ultimately positioning itself as a data hub for West and Central Africa, leveraging its undersea cables and forthcoming 90,000km fibre network. To get there, however, Inuwa says Nigeria must focus on building ecosystems, not just infrastructure. That means aligning policies on data classification, investing in AI research across sectors, and integrating digital skills from kindergarten up. For him, the AI future is about local intelligence, strategic partnerships, and inclusive innovation that makes African data count in global decisions. “We missed out on the first three industrial revolutions,” he says. “We cannot afford to miss the fourth.” TechCabal spoke to Kashifu Inuwa to understand the details of the discussion with Google, the push to digitise government services, and increase AI adoption. This interview has been edited for length and clarity. A couple of digital infrastructure investments have come into Africa through Cassava Technologies in collaboration with Nvidia. MediaTek is funding an Egyptian startup to grow the AI and semiconductor space on the continent. Why is Nigeria not top of mind for these investments, given the country’s size in digital adoption? Let me take you back to history. If you ask me personally, there was a deliberate commitment or push from Nigeria to position itself as the hub for IT infrastructure in Africa through the Local Content Guidelines, which was drafted first in 2016, and it was reviewed in 2018 and 2019. The Local Content Guidelines encouraged government agencies to keep data in-country. Based on that, at NITDA, we developed our strategic roadmap and action plan with a vision of making Nigeria a digitally empowered nation, fostering inclusivity through technological innovation. And we came up with eight pillars. The first one is to foster digital literacy and cultivate talent, because it’s a knowledge-based economy. Talent is also the human component of technology. It makes our lives better, but people make the technology better. If hyperscalers are coming to Nigeria, they need talent to build services. Based on that, we are doing a lot, like working with the Minister of Education. We have developed a curriculum to integrate digital literacy and skills into our formal education from kindergarten to tertiary institutions. We are doing an acceleration program to train Nigerians on technology skills, which are in high demand. The second pillar is building a robust research ecosystem because literacy and talent are quick wins. But for the future, we need to build that deep tech research and ecosystem because that’s what helps the nation to build a robust and sustainable economy. We are looking at AI, Internet of Things (IoT), Unmanned Aerial Vehicles (UAV), blockchain, robotics, and additive manufacturing. The third pillar is on crafting a legal framework that creates the enabling environment. The fourth one is on promoting inclusive access to digital infrastructure and services because the more digitally literate population we have, the better for us when it comes to the digital economy. Then we have a pillar on cybersecurity and digital trust. We have a pillar of entrepreneurship, an innovative and entrepreneurial ecosystem. We have a pillar on strategic partnership, and we have a pillar on government digitalisation. Google likes the idea (strategic roadmap), and we jointly agreed on five pillars we can work together on, including scaling infrastructure, cloud adoption, AI innovation, and investment framework. If NITDA and Google get this right, it will open doors for other hyper-scalers to come and invest in Nigeria. It will open doors for our local data centre providers to scale up. It will open doors for other technology manufacturers like Nvidia to also come to Nigeria, because it’s about creating an ecosystem. It’s not just about technology because we are looking at horizontal value creation across everything. NITDA is looking at how we can create sustainable energy because it’s another area that we need to pay attention to if we want to attract these hyperscalers. And, regarding energy, it is not always about the grid. We also need to be innovative because even in developed nations today, they are building off-grid energy sources for data centers. Then the AI integrations come in because AI is going to be the next wave in our history. It’s going to disrupt and change a lot. And we will not just be using an AI developed
Read More- May 6 2025
- BM
Tanzania’s purge of 80,000 online platforms signals deeper state control over digital space
Tanzania has shut down over 80,000 websites, social media accounts, blogs, and online platforms in the country’s most extensive digital content purge. The government said the move is meant to protect children’s mental health, but it also signals a growing appetite for online censorship. On Monday, Hamis Mwijuma, the deputy minister for information, culture, arts, and sports, told parliament that the Tanzania Communications Regulatory Authority (TCRA) had identified 80,171 platforms “publishing unethical content that poses a risk to children’s mental health.” Mwijuma was responding to a question from Special Seats MP Ng’wasi Kamani on the government’s plans to control social media content. The scale of the crackdown points to a wider state campaign that’s evolved over the last decade. In 2017, Tanzania’s parliament passed the Electronic and Postal Communications (Online Content) Regulations, with additional amendments in 2020. These laws criminalise content considered indecent, obscene, hateful, or disruptive to public order. Offenders face up to 12 months in prison, fines of TSH 5 million ($1,858), or both. The regulations give the TCRA sweeping powers to police social media, including blogs and private accounts. “It is not the first time they’re doing this. Seven years ago, during President Magufuli’s term in office, they had content creators (bloggers, owners of YouTube channels) needing to be registered and licenced to disseminate information,” Emmanuel Chenze, COO at African Uncensored, a Kenyan investigative media company, told TechCabal. “For a country with such a history, this news is obviously not a sign of progress.” In October 2024, the government suspended the digital unit of Mwananchi Communications, a subsidiary of Nation Media Group, over an animated video depicting relatives searching for missing loved ones. The main character resembled President Samia Suluhu Hassan. TCRA said the video threatened public order and harmed Tanzania’s image. Mwananchi’s online licences were suspended for 30 days. Mwijuma said the government is also training journalists and digital content creators to detect fake news and protect “a safe cultural environment for Tanzanian children.” But critics say the government is using child protection as cover for a wider crackdown on dissent. No public information exists on how platforms are flagged, whether takedowns can be appealed, or if affected creators were given notice. “There’s a thin line between cracking down on harmful (to kids) content, regulating online content, and outright gagging,” Chenze added. “The efforts to do the former, which may include the passage of some laws and extreme measures like the ones taken in this case by TCRA, can easily lead to the latter. Nothing stops them from being weaponised and used to stamp out dissenting voices.” The Tanzanian government has not clearly defined what qualifies as harmful content, nor outlined who makes that determination or how those decisions are reviewed. Yet it continues to expand its authority over online expression, deciding who gets to speak and what can be said.
Read More
- May 6 2025
- BM
TechCabal Daily – Airtel brings Starlink down to earth
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning. RIP Skype. Once the king of “Can you hear me now?” calls, the popular video-calling service shut down yesterday after 23 years of service. Microsoft is rolling the product into Microsoft Teams as the once-monolithic video calling platform failed to keep up with competitors like Zoom and FaceTime. Evolve or die, they say. What’s your favourite Skype memory? Egypt’s MoneyFellows raises $13 million to expand into Morocco Airtel and SpaceX partner to bring Starlink to remote communities in Africa Kenya’s Carrefour partners with AmEx, Equity Bank to allow shoppers get rewards World Wide Web 3 Opportunities Startups Egypt’s MoneyFellows raises $13 million to expand into Morocco Image Source: MoneyFellows Show of hands if you’ve been burned from participating in a group savings exercise (ajo, esusu, chamas, or stokvels if you’re South African) before? Perhaps, a member of the group refused to contribute when it was their turn, or worse, the person holding the money for the group disappeared with it? A few African startups, both past and present, have pitched their tent to solve this problem for consumers. Some of them have abandoned the plan entirely; case in point, Esusu, a Nigerian fintech used to digitise esusu groups, before it shifted focus to a credit-building app for home-renters. Others are still playing in the market, trying to figure a way to hit nirvana. But one startup—Egypt’s MoneyFellows—seems to have figured this out. Lack of trust, credit-scoring models, and non-existent escrow systems plague these businesses. And ultimately, payments are the bread and butter of fintechs, so understandably, many businesses follow the money. But given its longevity doing business in Egypt, MoneyFellows has seen its fair share of good and bad, and after eight years, it says it is profitable. On May 5, the fintech raised $13 in a pre-series C round. So what is working for MoneyFellows? It’s not just building an app to manage gam’eya (Egypt’s version of esusu); legal contracts, central bank oversight, and credit scoring. Users who join a savings “circle” sign a contract, payouts are handled by a bank partner, and the system is monitored by Egypt’s Central Bank through a sandbox. MoneyFellows ranks users based on who’s most likely to keep contributing; those ranked higher get paid first, and the cycle continues. That setup builds trust—and trust is everything when money’s involved. MoneyFellows then makes money by managing the spread between borrowers and savers. Early collectors—basically loan takers—pay a fee. Late ones save and collect at the end of a circle’s tenure. That spread, multiplied across millions of users on the platform, is where the business makes sense. A business model like MoneyFellows’ is not risk-free; but what makes it work is the structure. Some fintechs that have tried to digitise ajo in Africa have provided no means to contain the risks which create a trust deficit. Now, it’s taking that playbook to Morocco, a market that already knows a thing or two about digitised group savings. 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 Telecoms Airtel and SpaceX partner to bring Starlink to remote communities in Africa
Read More
- May 5 2025
- BM
Fluent Ventures’ Alexandre Lazarow wants to invest in locally adapted globally business models
Adaptation is often the determiner between survival and extinction in the animal kingdom, and according to Alexandre Lazarow, the managing partner of Fluent Ventures, a global early-stage fund, the same principle applies to startups. “I think innovation today functions more like a global supply chain. Ideas travel, but they require local adaptation to succeed,” he told TechCabal on a call. His investment thesis can be summed up as: product–market fit may be universal, but monetisation and delivery must be tailored to local contexts. Fluent Ventures is deploying $40 million through a fund, an incubator, and a structured co-investment vehicle with limited partners. Its cheques range from $250,000 to $2 million across pre-seed to Series A stages with plans to back 22–25 startups in fintech, healthtech, and e-commerce with capital reserved for follow-on investments. Lazarow developed his investing thesis in frontier markets after backing early neobanks like Chime and Neon in the U.S. and Brazil, seeing that while the business model revolved around providing modern and transparent banking in every market, the business model changed depending on customer needs. The work involved in writing a book (Out-Innovate: How Global Entrepreneurs from Delhi to Detroit Are Rewriting the Rules of Silicon Valley) also helped shape this thesis. After interviewing Gojek founder, Nadiem Makarim, and learning how the Indonesian ride-hailing startup expanded into food and medicine delivery, Lazarow saw firsthand how the company thrived by adapting its model to local needs. “He essentially fused the Uber idea with local needs and combined it with India’s logistics insights and the super app approach from China. That hybrid approach ended up outperforming Uber’s original model in his market,” Lazarow said. “And now, if you look at Uber in the U.S., its biggest growth area is food delivery, an idea arguably inspired by those international adaptations.” Some of Africa’s biggest startup successes have come from adapting global models to local realities. Paystack raced to its $200 million acquisition by Stripe by tailoring Stripe’s infrastructure-first approach to Nigeria’s fragmented payments landscape. While Jumia has yet to achieve profitability, it became Africa’s first unicorn by localising Amazon’s e-commerce model for the continent’s unique logistical and consumer challenges. And it’s not just in Africa that localising global models has driven success. In 2012, 83% of global startup ecosystem value (the sum of startup valuations and exits) was concentrated mostly in the U.S. By 2023, that share had dropped to 61%, reflecting a significant decentralisation of startup activity as more founders build for local needs in emerging markets. TechCabal spoke to Alexandre Lazarow to understand his investment thesis, exit history, how he picks founders, and advice for other investors. This interview has been edited for length and clarity. As someone actively investing in Africa, what sectors do you believe are most in need of local innovation today, and why? As a firm, we invest in three broad but foundational categories: financial services, commerce, and digital health. That focus reflects our conviction that these sectors form the bedrock of emerging market economies. Financial services alone represent about 20% of the African economy. That’s where we spend most of our time because the need is vast, and the innovation potential is deep. Within those sectors, are there any specific business models you’ve found especially effective in emerging markets? We’ve made two investments in Africa so far, and I expect that number to grow significantly over time. One business model I’m really excited about actually comes from India — B2B marketplaces. In India, four of the ten largest unicorns are vertical B2B marketplaces. The core idea is to empower small buyers and sellers, giving them the tools and advantages that normally only large businesses enjoy. These platforms combine vertical software (for things like inventory and order management) with embedded financial services such as credit. The principle is the same: provide small businesses with infrastructure that helps them scale like much larger enterprises. I believe that same model has even more potential in Africa. For instance, we’re early investors in Matta, which I see as the African localisation of OffBusiness. We also invested in Sabi. These B2B platforms are important because they don’t just offer digital access; they also tackle structural barriers that small businesses face every day: poor access to capital, fragmented logistics, and weak supply chains. By solving those problems in a way that’s tailored to the local context, they’re doing something very meaningful and very scalable. One thing I’ve noticed in Africa and many other emerging markets is that theory often doesn’t line up with reality. Have you come across a sector that seemed promising on paper but didn’t quite scale the way you expected? What made it difficult? I have some scar tissue in this area, particularly from the off-grid solar sector. I was genuinely obsessed with the promise of small-scale home solar systems across emerging markets, especially in Africa. Here was the pitch: You had this massive gap in power infrastructure. The centralised grid wasn’t reliable, wasn’t affordable, and wasn’t reaching enough people. Meanwhile, technologies were improving: solar panels were getting cheaper, mobile money was enabling pay-as-you-go models, and there was a growing awareness of the need for energy resilience. On paper, it looked like the perfect venture opportunity. We evaluated and invested in several companies in the space. The pitch decks were compelling. The unit economics looked workable. It all seemed aligned. But when it came time to scale, reality hit hard. Affordability turned out to be a massive barrier. The systems themselves, even the basic ones, were still too expensive for many of the target users. The accessories you could add on, like fans, TVs, and fridges, were often unreliable or cost-prohibitive. And even when customers could pay, the customer service and maintenance infrastructure were fragile. It was hard to keep things working in remote areas. It just didn’t add up to a pure venture-scale business — not in that wave, anyway. Are you saying it wasn’t the idea that was flawed, but maybe the timing?
Read More- May 5 2025
- BM
₦76.5 trillion and counting: Inside the payment surge at GTCO and Access Holdings
This is Follow the Money, our weekly series that unpacks the earnings, business and scaling strategies of African fintechs and financial institutions. A new edition drops every Monday. In a year when Nigerians processed a record ₦79.6 trillion ($49.6 billion) through their mobile phones, two of the country’s biggest banking groups—Guaranty Trust Holding Company (GTCO) Plc—are racing to dominate the digital payments space—and taking very different plays to get there. Guaranty Trust Holding Company (GTCO) Plc and Access Holdings Plc, which have turned their fintech subsidiaries into major engines of growth, aren’t just making big numbers; they’re redefining how millions of Nigerians move money. GTCO’s HabariPay and Access’ Hydrogen processed a combined ₦76.5 trillion ($47.7 billion) in transactions in 2024, up 217% from ₦24.1 trillion ($15.0 billion) in 2023, according to their latest full-year financial reports. What drove the numbers? Similar to fintech companies like Flutterwave, Hydrogen, which launched in September 2022, focuses on backend payments infrastructure, enabling other fintechs, banks and telcos rather than competing directly for end-users. This model helped it process ₦49.1 trillion ($30.6 billion) in payments in 2024, a 313% leap from the previous year. The launch of Hydrogen Payment Gateway, along with new solutions to enhance payment card security, drove significant growth in transaction volumes across its switching, merchant collections, and payments infrastructure, according to a statement by Access Holdings to TechCabal. “These offerings opened new revenue streams and broadened our impact across the payments value chain, enabling more businesses to access secure, seamless payment infrastructure,” it said. GTCO’s HabariPay, also launched in June 2022, took the opposite tack: go direct. Through its Squad platform, it has onboarded over 30,000 merchants across Nigeria and built a profitable business around SMEs and digital-first retailers. HabariPay processed ₦27.4 trillion ($17.1 billion) in 2024, up 124.6% year-on-year. “When a bank with a strong fintech approach and over 37 million customers enters the market, it has a real shot at dominance,” said Segun Agbaje, GTCO’s group CEO, on its investor relations call on April 3, 2025. He added that GTCO would push aggressively into PoS terminals this year to expand Squad’s reach further. 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 The broader shift: From cash to clicks Behind the surge in bank-led fintech transactions is a broader, irreversible shift in how Nigerians move money. Mobile money usage has exploded—from just ₦3.05 trillion ($1.9 billion) in transaction value in 2020 to ₦79.6 trillion ($49.6 billion) in 2024. Volumes have jumped from 130 million to 3.92 billion. A recent report by Worldpay, a global payment company, shows Nigeria recorded the steepest decline in cash transactions globally over the last decade. From 2014 to 2024, the country saw a 59% drop in cash use, beating out the Philippines, Indonesia, and Germany. This decline is fuelled by rising smartphone penetration, fintech adoption, and regulatory nudges like cashless policy limits and instant payment rails. Surge in transactions made money Beyond volume, there’s profit, and Hydrogen and HabariPay are cashing in. Hydrogen pulled in ₦10.3 billion($6.4 million) in revenue in 2024 and delivered a ₦1.89 billion($1.2 million) profit—a 1,074% jump year-on-year. It’s now Access Holdings’ most profitable non-bank subsidiary. GTCO’s HabariPay made even more money—₦4.22 billion($2.6 million) in profit—off ₦6.66 billion ($4.1 million) in revenue. That’s still just a fraction of GTCO’s total ₦1.02 trillion ($635 9 million) group profit, but it shows the fintech bet is already
Read More- May 5 2025
- BM
Airtel Africa partners SpaceX to expand Starlink to remote communities
Airtel Africa has partnered with SpaceX to bring Starlink’s high-speed satellite internet to its customers across the continent. Announced on Monday, the deal marks a major step forward in bringing internet access to subscribers, especially remote and underserved communities. The rollout will begin in nine countries: Nigeria, Chad, Kenya, Zambia, Malawi, Rwanda, Niger, Madagascar, and the Democratic Republic of Congo, targeting regions where connectivity gaps are most severe. As of 2025, approximately 600 million people in Africa—about 50% of the continent’s population—lack internet access. Starlink is licenced to operate in 9 of the 14 countries where Airtel Africa is present, with 163.1 million subscriber base. Starlink currently serves 237,000 subscribers across Africa. Once operational across the board, the collaboration will extend the reach of reliable internet services to millions more people—businesses, schools, hospitals, and individual users alike. For many subscribers in rural and hard-to-reach areas, the dream of stable, fast internet has remained elusive due to the limitations of traditional telecom infrastructure. With Starlink’s low Earth orbit (LEO) satellites and Airtel Africa’s established market presence, this partnership offers a promising solution. Customers can look forward to more consistent voice and data connectivity, even in areas where fiber or mobile networks have yet to penetrate. The partnership will enhance Airtel’s enterprise and business solutions, offering high-speed internet from rural healthcare clinics to educational institutions. As digital services become central to sectors like agriculture, education, finance, and healthcare, access to Starlink’s technology could empower local innovation and economic growth. The partnership will explore using Starlink’s satellite capabilities for cellular backhauling, enabling Airtel to extend its mobile network coverage to remote areas where traditional infrastructure is lacking. “Next-generation satellite connectivity will ensure that every individual, business, and community has reliable and affordable voice and data connectivity even in the most remote and currently underserved parts of Africa,” said Sunil Taldar, CEO of Airtel Africa. The Airtel-SpaceX deal could be a game-changer in the competitive telecom landscape across Africa. By integrating Starlink’s satellite internet with Airtel’s existing ground infrastructure, the company gains a significant edge in expanding rural coverage and improving overall network quality. The move also puts pressure on rival operators, such as MTN, Orange, and others, to accelerate their digital inclusion strategies. As more consumers gain access to faster and more reliable internet, expectations for service quality and innovation will inevitably rise. “The team at Airtel has played a pivotal role in Africa’s telecom story, so working with them to complement our direct offering across Africa makes great sense for our business,” said Chad Gibbs, SpaceX’s Vice President of Starlink Business Operations. Beyond providing rural connectivity, the agreement opens doors to further collaboration between SpaceX and Airtel Africa, including leveraging Airtel’s ground infrastructure and exploring new areas of digital inclusion. It signals a shift toward more hybrid models of connectivity, combining satellite, cellular, and broadband services to meet diverse user needs.
Read More- May 5 2025
- BM
Pros and cons of VC funding in 2025: what founders think
What’s it like to raise VC funding in 2025 as an African founder? To get a real sense of the current landscape, we spoke to Emenike Olome, CEO of Rabbit Africa, a B2B mobility platform; Toyin Olasehinde, Co-founder of Woodcore and Treford; and Joseph Oloyede, a data analyst at TechCabal Insights, who works closely with startup founders and investors. In this piece, we break down the benefits, challenges, and things to consider when raising venture capital in 2025. The Pros of VC Funding in 2025 1. Money Still Matters For many founders, capital is still the biggest advantage. It helps you hire a strong team, get the necessary tools, and move faster. Toyin, co-founder of Woodcore, puts it simply: “You get the funds you need to do what you need to do.” If you’re working in a space that VCs are interested in, like AI, raising funds might be easier than bootstrapping. 2. Strategic Backing > Big Cheques Emenike, CEO of Rabbit Africa, shares a different view. For him, who you raise from is more important than how much you raise. “I’d rather take $500k from someone who can introduce me to Meta, than $1M from someone who just writes a cheque.” Having an investor who can connect you to the right people, help shape your product strategy, or open doors can be worth more than money alone. 3. Credibility and Market Signal According to Joseph, from TechCabal Insights, getting VC backing can also build credibility. “It sends a strong market signal. People take you more seriously, customers, other investors, even your team.” The Cons of VC Funding in 2025 1. Equity Dilution This is one of the biggest trade-offs. Once you raise outside money, your share of the company starts to drop. And with that comes reduced control. Toyin explains: “You now have to carry people along, justify your moves, and sometimes adjust your plans.” 2. Pressure to Perform With money comes expectations. Investors want fast results, and that can push you to chase growth too early. “You might start building based on what you promised, not what you actually believe is right,” Toyin says. Joseph adds that this kind of pressure is real, especially when VCs expect high returns, even if your product hasn’t fully found its footing yet. 3. Risk of Losing Your Edge Emenike raises another concern: trust and data safety. “You share a pitch with a unique idea, and suddenly a portfolio company pivots into your space. They have capital and infrastructure, now you’re competing against your own concept.” In 2025, with AI tools making it easier to copy and scale ideas, this risk is even more significant. 4. You Might Not Need It Early On Founders today have more tools than ever. AI lets you build MVPs, run models, and test ideas without large teams or heavy spending. “If I were starting today, I’d build as much as I can on my own first,” says Emenike.“Then I’d raise, only when I’m ready to scale with the right partner.” Final thoughts: Should you raise VC funding in 2025 or not? VC funding can help you grow your business, but it’s not always the best first step. In 2025, more founders are choosing to build lean, test fast, and only raise when it makes sense. Here’s what you should think about before raising: Do you need cash, or do you need connections? Can you test your idea without giving up equity? Are you ready for the pressure and trade-offs that come with investor money? Raising VC funding isn’t bad; it just comes with terms you must understand fully. Think long term, protect your equity, and only raise when it helps you reach your bigger goals.
Read More