- February 25 2025
- BM
Unity Bank reports ₦62.6 billion loss in 2023
Unity Bank has reported a staggering loss of ₦62.6 billion for the financial year ended December 31, 2023, marking a sharp reversal from a profit of ₦941 million in 2022. The bank’s audited 2023 financial statements reveal a challenging fiscal period for the lender which merged with Providus Bank in August 2024—a move largely considered a lifeline for the struggling Unity Bank. Unity Bank delayed releasing its 2023 financial report until 2025 due to regulatory approval delays for previous financial statements, complexities from its merger with Providus Bank, and extensive documentation requirements tied to financial accommodations from the CBN. The bank’s gross earnings rose marginally to ₦59.36 billion in 2023 from ₦57.15 billion in 2022. However, these gains were wiped out by rising operational expenses and significant impairment charges linked to non-performing loans, resulting in a loss per share of 535.85 kobo. The balance sheet paints a dire picture, with total liabilities amounting to ₦845.6 billion and total assets standing at ₦518.7 billion. The bank’s total liabilities surpassed total assets by ₦326.9 billion, resulting in a negative capital adequacy ratio (CAR) of 76.14%. This figure falls drastically short of the Central Bank of Nigeria’s (CBN) required minimum CAR of 10% for national banks. In its auditor’s report, KPMG raised concerns about Unity Bank’s going concern status. The report noted that the bank’s inability to meet regulatory capital requirements and its negative equity position cast significant doubt on its ability to continue operations without substantial recapitalisation. Unity Bank’s financial position has been precarious since analysts from KPMG queried its 2022 financial statements The bank would need to raise fresh capital meet the CBN’s ₦200 billion recapitalization threshold for national banks. Unity Bank said it is “exploring all options” including injection of capital through private placements, rights issues, public offers, subscriptions, mergers, and acquisitions ahead of the 2026 deadline. Unity Bank disclosed receiving financial support from the CBN. The bank was granted a short-term financial accommodation of ₦50 billion to augment its working capital requirements. This facility comes with a maturity date of December 31, 2024. In July 2024, the CBN approved another financial accommodation for its merger with Providus Bank, amounting to ₦700 billion. Analysts say Unity Bank’s survival hinges on securing substantial capital inflows and restructuring its loan portfolio. The Asset Management Corporation of Nigeria (AMCON), the bank’s largest shareholder with a 34.22% stake, may play a pivotal role in any recapitalisation efforts. However, market observers caution that investor confidence could remain low until the bank demonstrates concrete progress in addressing its capital shortfall.
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- February 25 2025
- BM
TechCabal Daily – Add GPS trackers, stay in CTRL
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy salary day! South Africa’s news cycle was heating up yesterday. These are the two important things you should know right away: MultiChoice has increased prices for its pay-TV subsidiaries, DStv and GOtv, for the second time in less than a year. It cited the inflationary markets as its reason for hiking prices after reporting a 99% half-year profit decline in 2024. Vodacom, South Africa’s second-largest telecom operator, has announced plans to deploy Jeff Bezos’ low-earth orbiting (LEO) satellite, Project Kuiper, to extend its 4G/5G services to more of its customers in Africa. This move comes as Starlink, Elon Musk’s satellite company, faces delays in entering the South African market due to ownership and licencing hurdles. If Kuiper secures a first-mover advantage over Starlink in South Africa—marking its African debut—it could prove to be a key market in the battle of the billionaire tech CEOs. Naspers-owned Prosus to acquire Just Eat Takeaway in a $4.3 billion all-cash deal Sendstack is projecting $1 million in revenue selling GPS trackers South Africa demands up to $27.2 million from Big Tech companies Nigeria’s mobile networks at risk as diesel crisis escalates World Wide Web 3 Opportunities M&A Naspers-owned Prosus to acquire Just Eat Takeaway in a $4.3 billion all-cash deal Image source: Google On Monday, Prosus, a global consumer internet group and the technology investment arm of Naspers, one of South Africa’s largest companies by market value, announced that it will acquire Netherlands-based Just Eat Takeaway in a $4.3 billion all-cash deal, subject to regulatory approval. Just Eat Takeaway’s CEO, Jitse Groen, is expected to remain in place. The move adds to Prosus’ growing portfolio in the global food delivery sector. The offer values Just Eat’s shares at €20.30 ($23.35) each, a 22% premium over its highest share price in the past three months. However, this is still far below its pandemic-era peak, when shares traded at over €100 ($104.72). Just Eat Takeaway was formed through the merger of former competitors Just Eat and Takeaway.com. In 2019, Prosus made a £5 billion ($6.3 billion) bid for Just Eat during its financial struggles, but Takeaway.com secured the deal as Just Eat chose to merge with a regional rival. Now, Prosus is acquiring the merged entity at a price significantly lower than its 2019 offer. Just Eat Takeaway, now valued at £3.26 billion ($4.1 billion), has seen its market cap decline steadily. In 2020, it was one of the three largest food delivery companies globally, reaching £12.83 billion ($16.2 billion) in value. Like elsewhere, lockdowns drove demand for food delivery services across Africa and other regions during the global pandemic, benefiting established players like Just Eat Takeaway and fueling the rise of food delivery startups. Operating in 18 countries, including Europe and North America, Just Eat Takeaway saw its market cap peak at €14.2 billion ($18 billion) in 2021, continuing the momentum from the previous year. However, business has since slowed post-pandemic. In 2024, it reported a net loss of €1.6 billion ($1.7 billion) as customers shifted back to in-person dining and became more price-sensitive amid economic uncertainty. The entry of new, funded competitors offering lower delivery fees intensified competition in Europe’s food delivery market, making it increasingly difficult for entrenched businesses like Just Eat Takeaway to survive. It criss-crosses with Africa’s growing food delivery sector, raising questions about potential expansion opportunities in emerging markets and the risks. Yet, for Prosus, the acquisition presents an opportunity to expand into new markets or strengthen its presence in existing ones—if it’s the former, the challenge will lie in balancing short-term costs with long-term gains. Are you an Afincran? If you’re building solutions for Africa, you already are. Join Fincra’s mission to empower Africa through collaborative innovation. Together, we’re building the rails for an integrated Africa. Join the Afincran movement—let’s drive change! Startups Sendstack is projecting $1 million in revenue selling GPS trackers L-R: Sendstack cofounders, Ifeoma Nwobu and Emeka Mba-Kalu/Image Source: Sendstack Sendstack, the Norrsken-backed startup that used to do last-mile logistics before realising that there are less stressful ways to make money, has a new plan: sell GPS trackers. The company has also set a goal to hit $1 million in revenue by the end of 2025, which would be 4x what it made from its now-shelved last-mile delivery platform, DLVR. Now, Sendstack wants to sell 10,000 GPS trackers by July. Each tracker costs ₦100,000 ($70)—a nice round number and a Trojan horse for the real play: getting customers hooked on Sendstack’s fleet management software, CTRL. This is a pivot—the company’s second pivot in five months. Once upon a time, Sendstack was a last-mile logistics startup, which seemed like a good idea until it wasn’t. Because last-mile logistics is hard and low-margin. So, in October 2024, Sendstack pivoted to fleet management, which seemed like a better idea, except that manufacturers, distributors, cargo owners who did high freight volume were not exactly falling over themselves to buy fleet management software. Five months later, CEO Emeka Mba-Kalu who said it was going for a pure software play is saying, “Fine, give them hardware.” The trackers—compact, 2G-enabled, kind of like AirTags but for trucks—integrate with CTRL and third-party systems via API, opening up multiple upsell opportunities. The company is hoping that the cold hardware in the hands of these cargo owners, would have the same effect on his platform as POS and cards which have driven trust and adoption of their platforms. If Sendstack pulls this off, it could change the way fleet operators in Nigeria manage logistics. But if it doesn’t work—if Nigerian businesses don’t actually want fancy GPS trackers, or if Sendstack burns through its capital (the company has only raised $350,000) before reaching scale— no one can say Mba-Kalu who is on his second startup and second pivot, didn’t put his best foot forward. You can now integrate Paystack with GiveWP GiveWP makes it easy to create donation pages and accept online donations on your
Read More- February 24 2025
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Ghanaian startups face higher costs as AWS introduces 21% tax
Amazon Web Services (AWS) will implement a 21% tax on cloud services for customers in Ghana starting March 1, 2025. The tax will drive up operational costs for Ghanaian startups that depend on the global cloud service provider to store sensitive data and power essential digital operations. This tax comprises a 15% Value Added Tax (VAT) and an additional 6% in levies, including the National Health Insurance Levy, the Ghana Education Trust Fund Levy, and the COVID-19 Health Recovery Levy, AWS said in a notice to customers seen by TechCabal. The introduction of the tax could place Ghanaian startups at a competitive disadvantage compared to counterparts in regions with more favorable financial conditions for cloud adoption. In January 2023, AWS announced that it will now accept payments in Naira, alongside seven other local currencies, to help customers avoid foreign exchange costs and payment friction. Ghana’s broader tax landscape has long posed challenges for startups, with multiple levies and compliance costs affecting business operations. In 2023, Ghana’s parliament introduced new taxes for individuals and businesses as part of measures to reset the economy months after increasing its VAT from 12.5% to 15%. For startups relying heavily on digital infrastructure, like cloud services, these financial pressures can slow product development and market entry. AWS’s new tax could also push Ghanaian startups to explore alternative cloud providers or on-premises infrastructure solutions, potentially slowing down their growth and innovation cycles. Despite these challenges, forecasts suggest resilience in the market. Ghana’s public cloud sector is projected to reach $306.10m in revenue in 2025, according to Statista. Ghana, home to hundreds of startups, has built a vibrant startup ecosystem that depends heavily on affordable cloud services for development and deployment. However, the new AWS tax threatens to undermine the affordability of these critical services.
Read More- February 24 2025
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Naspers’ subsidiary Prosus to acquire Just Eat Takeaway for $4.3 Billion in all-cash deal
Naspers’ European-listed subsidiary Prosus has agreed to acquire Amsterdam-based Just Eat Takeaway.com for $4.3 billion, a move that strengthens its position in the global food delivery industry. The all-cash offer of $22.02 per share represents a 49% premium to Just Eat’s three-month volume-weighted average price, Prosus said in a statement Monday. The stock closed at $13.48 on Friday. The deal is part of Prosus CEO Fabricio Bloisi’s broader strategy to diversify growth beyond the company’s early investment in Chinese gaming giant Tencent Holdings Ltd. “Prosus sees an opportunity to accelerate growth at Just Eat Takeaway, leveraging its strong industry experience to innovate and drive efficiencies,” the company said. If approved by regulators, the acquisition would create the world’s fourth-largest food delivery group. “We believe that combining Prosus’s strong technical and investment capabilities with Just Eat Takeaway’s leading brand position in key European markets will create significant value for our customers, drivers, partners, and shareholders,” Bloisi said in the statement. Prosus has built a formidable global portfolio in food delivery, particularly outside Europe. It fully owns iFood, Latin America’s largest food delivery platform, and holds a 28% stake in Delivery Hero, a global delivery company. It also owns 4% of Meituan, the world’s largest food delivery business, and 25% of Swiggy, an Indian food and grocery delivery platform that recently went public. Just Eat Takeaway operates in 17 countries. In 2024, the company reported a gross transaction value of $28.5 billion and an adjusted EBITDA of $498 million . Just Eat acquired U.S.-based Grubhub for $7.3 billion in 2020 but offloaded it last month for just $650 million.
Read More- February 24 2025
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Kenyan CEOs say rising business costs and tax burden threaten economic growth
Kenyan businesses are struggling with rising taxes, high energy costs, and expensive credit—challenges that CEOs say could stall investment and slow economic recovery in 2025. A Central Bank of Kenya (CBK) survey of over 1,000 CEOs found that unpredictable taxation and regulatory instability make long-term planning difficult despite optimism about growth. While CEOs expressed confidence in Kenya’s economic prospects, they warned that the cost of doing business is increasing at an unsustainable rate. Tax hikes, import duties, and fluctuating government policies have left companies struggling to stay competitive. Even though the CBK has cut interest rates three times, businesses say accessing affordable credit remains difficult, raising concerns that economic expansion could slow. According to the CBK, 63% of the surveyed CEOs represent privately owned domestic firms, with 52% overseeing companies with a turnover of over $11.5 million (KES 1 billion). The majority of the CEOs said frequent and abrupt tax changes make it difficult to plan and invest for the future. “There’s no certainty around taxation. The government introduces new levies without consultation, and businesses are forced to react in real time,” said Peter Mwaura, CEO of a Nairobi-based manufacturing firm. “Last year, VAT on fuel increased from 8% to 16%, which doubled our logistics costs overnight. How do you make long-term investment decisions in this kind of environment?” Over the past two years, Kenya’s government has increased VAT on essential goods, raised import duties, and introduced new levies on mobile money transactions to boost revenue. While these measures are meant to reduce Kenya’s public debt, the private sector argues they are weakening growth, stifling expansion, and eroding consumer spending power. “Stimulating growth requires a mix of tax incentives, better access to credit, and policies that support a developing economy like Kenya,” said Steve Okoth, tax director at BDO East Africa. “Countries like India and Malaysia offer tax holidays or reduced tax rates for new businesses to encourage investment. Kenya should consider similar incentives.” Another key concern for businesses is access to affordable credit. The CBK has cut interest rates three times in the past year to spur lending, but many firms report that borrowing remains difficult due to banks’ cautious lending practices. “The CBK rate cuts haven’t fully trickled down to businesses,” said Susan Wanjiru, an economist at a Nairobi-based investment firm. “Banks are still reluctant to lend to SMEs because of perceived risks, and those that qualify for loans are paying high interest rates despite the policy adjustments.” Under pressure from regulators, Kenya’s top banks—including KCB Group, Equity Group, Cooperative Bank, I&M, and DTB—have lowered interest rates by one to four percentage points. However, many businesses say these reductions are not enough to make borrowing affordable, especially for SMEs that form the backbone of Kenya’s economy. Despite these challenges, most CEOs expect their companies to increase production in Q1 2025 compared to Q4 2024. To sustain growth, many are focusing on cost-cutting, diversifying operations, and exploring new markets. “We are optimistic about Kenya’s long-term potential, but optimism alone won’t fix the real problems businesses face,” said Wanjiru. “Unless the government provides tax certainty and ensures easier access to credit, economic recovery could be slower than expected.” While Kenyan businesses remain resilient, CEOs warn that without clear, supportive policies, growth will be driven more by survival tactics than by genuine expansion. Kenyan business leaders have warned that rising operations costs and unpredictable taxation could weaken the country’s economic growth and erode investors’ confidence. A Central Bank of Kenya (CBK) survey of over 1,000 CEOs revealed that while they expressed optimism about Kenya’s economy, persistent problems like high energy costs, taxation uncertainties, and supply chain disruptions could derail the progress. “The January 2025 CEOs Survey showed higher growth prospects for the Kenyan economy over the next 12 months, driven by favourable weather conditions and macroeconomic stability expectations,” the report said. “However, firms reported the cost of doing business as a key concern.” The surveyed CEOS were drawn from various sectors of the economy, including manufacturing, agriculture, tourism, ICT, and logistics. According to the CBK, 63% of the participants were CEOs in privately owned domestic companies, with 52% having a turnover of over $11.5 million (KES1 billion in 2024). The CEOs want the government to “create certainty around taxation as there are abrupt changes in the regulatory framework and tax structure,” making it difficult to plan and invest for the future. In the past two years, businesses have faced tax adjustments, including increased VAT and import duty on essential goods and new levies on money transfers. While the government has defended these measures as necessary to generate revenue for development, the private sector has maintained that they weaken growth, hinder expansion, and eat into consumer’s disposable income. The CEOs also called for increased lending to businesses. Despite three consecutive CBK rate cuts, access to credit remains a significant challenge for most Kenyan companies. After months of pressure from the regulator, commercial banks have started cutting lending rates, which business leaders hope will unlock access to credit. Leading banks, including KCB Group, Equity Group, Cooperative Bank, I&M, and DTB, have cut interest rates by one to four percentage points, with more expected in the coming weeks. “Stimulating growth requires a mix of tax incentives, funding mechanisms in the form of better access to credit, and supportive policies tailored to the needs of a developing economy like Kenya,” said Steve Okoth, Tax Director at BDO East Africa. “Offering tax holidays or reduced tax rates for innovative businesses during their first five years like in India and Malaysia can encourage growth and reinvestment.” The CEOs expect production volumes in 2025 Q1 to be higher than 2024 Q4. The report said Kenyan companies prioritize diversification and cost optimization to sustain growth over the next three years.
Read More- February 24 2025
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Multichoice hikes DStv and GOtv for the second time in a year as part of “inflationary pricing”
MultiChoice, the parent company of DStv and GOtv, is increasing subscription prices by at least 20%, marking the second price hike in a year. The increase, effective March 1, comes as the company faces a shrinking subscriber base and economic challenges in its key African markets. According to documents seen by TechCabal and an email sent to customers, the new pricing structure is as follows: DStv Premium: ₦45,000 (up from ₦37,000) DStv Compact Plus: ₦35,000 (up from ₦30,000) DStv Compact: ₦19,000 (up from ₦15,700) The latest increase follows a turbulent 2024 for MultiChoice, which saw a 9% decline in total active subscribers across Africa. The company’s fiscal year 2024 report shows that subscriber numbers fell by 13% in Nigeria, Angola, Kenya, and Zambia, driven by currency depreciation and economic downturns. The Nigerian naira’s sharp decline alone had a 32% impact on MultiChoice’s USD revenue, according to the company. MultiChoice has attributed the new price adjustments to inflation and foreign exchange pressures. To counter these challenges, MultiChoice is implementing a cost-cutting strategy aimed at saving $113 million while introducing “inflationary pricing” to sustain revenue. The consecutive price hikes raise concerns for consumers already dealing with rising costs of living. Notably, Netflix also raised its prices in 2024, further shifting consumer preferences in Africa’s evolving entertainment market. So far, there has been no official response from Nigeria’s Consumer Protection Commission or broadcasting regulators. However, past price hikes by MultiChoice have faced backlash from both consumers and lawmakers. The company’s dominant position in pay-TV means its pricing decisions have a widespread impact. With economic conditions still volatile and consumer spending under pressure, MultiChoice’s ability to retain subscribers amid higher costs remains uncertain.
Read More- February 24 2025
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After ditching last-mile delivery, Sendstack is projecting $1 million in revenue selling these GPS trackers
Sendstack, the Norrsken-backed startup that pivoted from last-mile logistics to fleet management, is betting on a new hardware play—GPS tracking devices—to hit $1 million in revenue by the end of 2025. That would be four times what it made from its now-defunct delivery platform, DLVR, which it shelved in 2024 after struggling to scale. To reach this milestone, Sendstack plans to sell 10,000 trackers by July—each device costs ₦100,000, turning hardware sales into a reliable revenue stream while driving the adoption of its fleet management software, CTRL. The compact trackers, which resemble AirTags and run on 2G networks, integrate with Sendstack’s platform and third-party systems via API—giving the company multiple entry points to upsell software services. This shift is a significant departure from Sendstack’s initial vision of creating an aggregator platform for last-mile delivery companies. In 2024, the company pivoted from last-mile delivery to fleet management and launched CTRL, a software product it plans to replicate across emerging markets. However, as we predicted in our report on the pivot, the company has had to adapt to a market where businesses still rely heavily on manual processes and are hesitant to adopt standalone fleet management software. While the trackers are a distribution play for its existing software business, the trackers also address a persistent challenge in Nigeria’s logistics sector: cargo visibility. Many apps promise real-time tracking, but long-haul shipments often go dark due to unreliable mobile connectivity and truck drivers who rely on feature phones. The company offers both a one-time purchase option and a managed service subscription that includes the device, SIM card, insurance, and support. The device costs ₦100,000 but a managed service attracts additional monthly fees. This dual revenue model is designed to cater to different business needs and budgets. Hardware is more intuitive for Nigerian users CEO Mba-Kalu believes that introducing hardware isn’t just about adaptation—it’s an opportunity to replicate the success fintech companies have had with card and POS device distribution. “Like POS terminals for payments, hardware trackers are more intuitive for Nigerian users, and businesses are more receptive to the idea of investing in trackers for their vehicles,” said Mba-Kalu. “It’s easier to then upsell them on additional software features.” In the last decade, fintech startups have distributed low-cost debit cards and POS devices to acquire customers and boost transaction volumes. Sendstack is applying the same thinking and believes that trackers will serve as an entry point for businesses to adopt its software at scale. The company already claims notable customers, including electronics manufacturer Panasonic and logistics firm NG Logistics. “App-based trackers work well for intra-city trips but not for long-distance haulage,” Mba-Kalu noted. Many truck drivers are often unreachable during transit, leading to communication breakdowns and inefficiencies. Sendstack is optimising GPS trackers for cargo GPS trackers are not a new concept, and Sendstack faces stiff competition from existing players in the informal tracking market. Mba-Kalu acknowledges this but argues that most trackers today are “basic and primarily designed for tracking between locations,” whereas Sendstack’s product is optimised for cargo tracking. Unlike software, hardware comes with higher upfront costs. If production expenses exceed projections or if Sendstack fails to hit its 10,000-unit sales target, the financial strain could be significant. The company has only raised $350,000 since its founding and has so far resisted raising additional funding. “We’re not in a rush to raise extra capital,” Mba-Kalu asserted, adding that the company is confident in the margin potential of the tracker. However, scaling hardware in Nigeria comes with logistical challenges—managing inventory, ensuring reliable production, and handling distribution across multiple states. With a lean team of about five people, Sendstack will also need to expand its workforce, especially its technical sales team, to support its ambitious growth plans. If Sendstack’s hardware gamble pays off, it could reshape fleet management in Nigeria. The flip side of that gamble could leave Sendstack in a tough spot—neither a software nor logistics leader.
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- February 24 2025
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TechCabal Daily – Flutterwave eyes NGX listing
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy new week! Starlink, Elon Musk-owned satellite internet service provider (ISP), became Nigeria’s second-largest ISP in Q3 2024, according to data from the Nigerian Communications Commission (NCC). This milestone comes just two years after the company expanded its services into the country. It grew its active user base to 65,564 in Nigeria, despite its high hardware costs. In the country’s core ISP market, only Spectranet surpasses Starlink with 105,441 active users, while FibreOne, in third place with 27,000 users, is less than half the size of Starlink’s user base. However, Starlink doubled its monthly subscription costs for Nigerian customers in January 2025, a move that could potentially dampen its appeal to Nigerian customers. While the full impact won’t be clear until the NCC releases Q1 2025 figures, telecom operators remain a strong alternative for data services—with millions of active users—due to their wider broadband reach and dual utility as mobile network operators. Kenyan boda boda riders threaten strike over regulation Flutterwave eyes NGX listing Court orders the forfeiture properties linked to former CBN governor World Wide Web 3 Events Regulation Kenyan boda boda riders threaten strike over regulation Image source: Safeboda What is the most effective way to oppose an unfavourable government decision? A lobby? A protest? A strike? In Kenya, the latter two are often the strongest tools to prevent the government from overreaching. Kenyan boda boda riders—commercial motorcycle operators—have pushed back against a government effort to regulate their sector. Last Wednesday, the Public Transport (Motorcycle Regulation) Bill, 2023, proposed by Senator Bonny Khalwale, reached the National Assembly. The bill contains guidelines for boda boda riders to become legally required to register their vehicles and show ownership, put trackers on their motorcycles, and have motorcycle owners and riders in hire-purchase contracts enter formal contracts. For instance, formal contracts between owners and riders can help address common disputes, such as daily driver remittances. Tragically, on February 7, Jackson Mukundi, a Kenyan boda boda rider, was murdered. During the ongoing investigations, his employer has been identified as the alleged killer. The bill is an attempt to curb reckless riding, protect riders, and improve public safety. However, the Boda Boda Association of Kenya has threatened to go on strike. They claim that some provisions in the bill are impractical and could put them out of business. Specifically, they view the government surveillance, passenger limits (boda boda riders must carry only one passenger per trip), heavy fines for violations, and jail terms for non-compliance as an impasse. While the regulations may seem harsh, boda boda riders have long been linked to public safety issues. Police efforts to collaborate with riders to reduce motorcycle-related crimes have had limited success. Boda bodas are heavily linked to various crimes, including robbery, assault, drug trafficking, and even murder. 79.5% of fatal motorcycle incidents are also caused by reckless driving, such as hit-and-runs after robberies. The proposed regulations could impact three million riders, many of whom rely on this work for their daily income. Additional documentation means extra costs, but the surveillance also targets rogue drivers, who fear the crackdown. Motorcycles often face scrutiny across Africa. Rwanda, for example, has successfully regulated its motorcycle sector, reducing crime. Other African cities have banned motorcycles from plying major roads altogether. Kenya’s motorcycle regulation will help it achieve two goals: to monitor a sector that has been a public safety headache for years, as well as add an unassuming, yet unpredictable income source for the government. A regulation is practical here, and it will have an impact on Kenya’s tech sector where food delivery startups often employ boda boda riders to deliver customer orders. Kenyan law-makers and boda boda riders will need to reach a compromise. Are you an Afincran? If you’re building solutions for Africa, you already are. Join Fincra’s mission to empower Africa through collaborative innovation. Together, we’re building the rails for an integrated Africa. Join the Afincran movement—let’s drive change! Startups Flutterwave eyes NGX listing Flutterwave’s Olugbenga”GB” Agboola/Image Source: CNN When Flutterwave’s CEO, Olugbenga Agboola shared in early February that the company will only pursue IPO ambitions after it hit profitability, it took many by surprise that the fintech giant was not yet profitable. Well, for a company in a growth phase, that was expected. The company had rapidly been expanding and acquiring licences across Africa. Flutterwave was again in the news yesterday, after Agboola met with Nigeria’s President Bola Tinubu to discuss a potential listing on the Nigerian Stock Exchange (NGX), according to Bayo Onanuga, Special Adviser on Information and Strategy to the President. The fintech giant, last valued at $3 billion, would become one of the most valuable companies on the NGX—surpassing any financial institution listed on the exchange. However, questions remain about whether the NGX can provide the type of exit that dollar-based investors seek. Typically, high-growth African startups favour dual listings or IPOs on foreign exchanges like the NYSE, though Jumia’s listing experience may serve as a cautionary tale. For a company yet to reach profitability, the NGX listing might be far off. The exchange favours dividend-paying stocks, and Flutterwave will need to turn a profit before it can meet that expectation. The NGX, which launched its tech board in 2022, has been actively courting tech companies with favourable listing conditions, possibly offering Flutterwave incentives to list locally. If Flutterwave proceeds with an NGX IPO, it will join Tizeti, another Nigerian tech company which plans to list on the bourse, marking a significant win for Nigeria’s stock market. A Flutterwave listing can also encourage other tech companies to list on the stock exchange. News of Flutterwave’s potential listing comes amid renewed investor confidence in Nigeria’s economy. A rally in banking stocks and increased capital inflow have strengthened the country’s financial markets, with Bloomberg reporting that Nigeria’s sovereign risk spread has dropped to its lowest level since January 2020. For Flutterwave, an IPO is a logical next step. With few alternatives left, the company’s
Read More- February 24 2025
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Nigerians face network blackouts as diesel truckers strike over government dispute
Millions of Nigerians could soon face widespread mobile network disruptions as telecom towers in Lagos and Ogun States run dangerously low on diesel. A standoff between fuel truckers and the Lagos State government has halted diesel deliveries, cutting off the primary power source for telecom sites in Nigeria’s largest commercial hub. The crisis stems from an ongoing dispute between the Lagos government and the National Union of Petroleum and Natural Gas Workers (NUPENG). In protest against alleged harassment by state officials, fuel truckers have suspended operations, leaving tower companies—including American Tower Corporation (ATC) and IHS Towers—scrambling for fuel to keep their towers running. With over 60% of Nigeria’s national data traffic flowing through Lagos, the potential impact is severe. Mobile users already report slower browsing speeds, dropped calls, and intermittent service failures. If fuel supplies aren’t restored soon, telecom operators fear an impending blackout that could disrupt banking services, e-commerce, and essential communication in one of Africa’s most connected markets. NUPENG Secretary General Wale Afolabi told TechCabal the strike was triggered by Lagos officials allegedly deflating truck tires and arresting drivers over parking violations. The truckers, he explained, typically make early morning diesel deliveries to avoid accidents on Lagos’ poorly maintained roads. “We decided to withhold our services until the government acknowledges that these truckers are human beings too,” Afolabi stated. “We don’t know how long this will last, but we demand that the Lagos government repair the damaged trucks, release the arrested drivers, and fix the union’s vehicle.” The Association of Telecommunications Companies of Nigeria (ATCON) has also raised urgent concerns over the fuel shortage. In a letter seen by TechCabal, ATCON President Tony Izuagbe Emoekpere warned that many telecom sites in Lagos and Ogun State are running critically low on diesel. “We respectfully request the urgent intervention of the governors of Lagos and Ogun states to facilitate diesel from the depot, ensuring uninterrupted operation of our affected telecom sites,” Emoekpere said. The diesel crisis exposes the fragility of Nigeria’s telecom infrastructure, which remains heavily reliant on generators due to the country’s unreliable power grid. With Lagos at the center of Nigeria’s digital economy, prolonged network outages could stall businesses, financial transactions, and emergency services across the region.
Read More- February 22 2025
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Court orders forfeiture of $4.7m, properties linked to ex-CBN governor Emefiele
A federal high court in Lagos has ordered the forfeiture of $4.7 million, ₦830.9 million, and multiple properties linked to former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele. The judgment marks the latest in the legal troubles of Emefiele who has faced increasing scrutiny over allegations of financial misconduct and abuse of office during his tenure. Justice Yellim Bogoro issued the order on Friday, following a motion filed by the Economic and Financial Crimes Commission (EFCC), the anti-graft agency said in a statement. The EFCC, through by its counsel Bilikisu Buhari, argued that the assets were proceeds of unlawful activities, citing Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006, and Section 44(2)(b) of the 1999 Constitution of the Federal Republic of Nigeria. The forfeited funds are domiciled across three major Nigerian banks: First Bank, Titan Bank, and Zenith Bank. The accounts, operated by various companies and individuals allegedly linked to Emefiele, include Omoile Anita Joy; Deep Blue Energy Service Limited; Exactquote Bureau De Change Ltd; Lipam Investment Services Limited; Tatler Services Limited; Rosajul Global Resources Ltd; and TIL Communication Nigeria Ltd.. The court also ordered the forfeiture of €20,000, £1,999.50, and investments worth $5.3 million linked to the said companies and individuals. Emefiele, who served as CBN governor from 2014 to 2023, was removed in June 2023. He faces allegations of fraud, corruption and other illegal practices, which he denies. Under his leadership, the CBN pursued controversial pro-agricultural policies and questionable monetary policy and an inability to exert the CBN’s independence, leading to record borrowing levels to the federal governmet.
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