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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

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.

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.

February 21 2025
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Jumia’s share price falls 28% after tepid 2024 performance

Shares of African e-commerce firm Jumia plunged 28% on Friday as investors reacted to its continued losses in 2024 despite improved cost efficiency. Jumia’s share price declined from $3.88 to $2.82, slashing its market capitalisation to $285.2 million—down from $1.3 billion in Q3 2024. The company’s revenue declined by 10% to $167.5 million in reported currency in 2024, and in the fourth quarter of 2024, it made $45.7 million, a 23% reduction year over year. While Jumia’s constant currency metrics show resilience, its decline in USD terms highlights its exposure to macroeconomic instability. Although analysts predict softer currency devaluation in Nigeria and Egypt in 2025, investors typically discount growth that relies on favourable FX movement. The company’s widening losses also suggest that Jumia’s infrastructure is still inefficient as its logistics costs increased by 11% year-on-year. Global investors favour cash-generating businesses as interest rates rise and the appetite for unprofitable businesses reduces. In 2024, a Goldman Sachs basket of unprofitable tech companies lost 20% of its value as the S&P gained, and Jumia’s inability to turn a profit is placing downward pressure on the stock. As it exited countries, the company’s active customers fell to 8.3 million compared to 10 million in the previous year. However, its customers’ repurchase rate improved to 40%, signifying a stickier customer base. The company’s orders also grew by 11% to 7.4 million in the fourth quarter. Per its SEC filing, Jumia has 2.4 million quarterly active users, a slight increase from 2.3 million in December 2023. Jumia projects that its gross merchandise value (GMV), the value of goods ordered on its platform, will reach $795–830 million in 2025 (+10–15% year-on-year), but this assumes stable FX rates, which investors might consider unrealistic given Africa’s macroeconomic headwinds and the company’s 2024 misses. The company’s GMV fell by 4% to $720 million in 2024 and 12% in the fourth quarter. Currency devaluations in Egypt and Nigeria, its two largest markets, led to a contraction in dollar-denominated GMV. Jumia’s expansion into second cities in 2024, which now accounts for 56% of its orders, also caused a shift towards lower-value orders. This expansion, combined with a decline in high-margin corporate sales in Egypt, contributed to GMV declines in reported terms. Until Jumia stabilises its USD-denominated growth, reduces its losses, and shows a viable path to profitability, investor scepticism might persist and today’s 28% drop only reflects a sign of things to come.

February 21 2025
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Best Data Plans in Nigeria (2025): Compare prices & value across networks

Nigerian telecom users have seen data prices surge by up to 50% in 2025, forcing many to rethink their internet budgets. With MTN, Airtel, Glo, and 9mobile adjusting their prices—some increasing by as much as ₦70,000 for large data plans—finding the best deal has become crucial. This guide compares the cheapest and best-value data plans across Nigeria’s major telecom providers, helping you find the most cost-effective option based on your budget and internet needs. Budget Monthly Data Plans in Nigeria (Best for light users) If you’re looking for affordable, entry-level data plans, here’s how MTN, Airtel, Glo, and 9mobile compare: Best Budget Pick: Glo (3.9GB for ₦1,000) offers the lowest price per GB, but network quality varies. MTN and Airtel remain the most reliable in major cities. User Insight: “I use MTN’s 75GB plan for ₦20,000. It used to be ₦16,000, but I’m stuck with them because alternatives like Glo and Airtel don’t work well in my area.” – David, a growth marketer in Lagos. Best Data Plans for Heavy Users (Streaming, Remote Work, Business) If you stream videos, work remotely, or run a business that relies on high-speed internet, these are the best options: Best Heavy-User Pick: Airtel (200GB for ₦20,000) provides the cheapest per GB cost, but check for network quality in your area before committing. User Insight: “I use MTN’s 112.5GB plan for ₦20,000. It used to be 150GB for ₦16,000 before the price hike. I tried Airtel, but it doesn’t work well in my area. MTN is the most consistent network, but their app is terrible.” – Daniel. Best Weekly Data Plans for Short-Term Users If you don’t need a full month of data, weekly plans offer a flexible and often cheaper alternative. Best Weekly Pick: 9mobile (7GB + 100MB for ₦1,500) gives the best value per GB but has limited coverage in some locations. User Insight: “I use Glo’s weekly 15GB plan for ₦2,500 because it’s better value for a heavy user like me.” – Joseph Best Unlimited Home WiFi Plans (No Fair Use Policy) For households or small businesses that need non-stop internet, some providers offer truly unlimited plans. But watch out for hidden fair use policies (FUPs) that can throttle speeds after a certain usage. Best Home WiFi Pick: FibreOne (25Mbps for ₦13,807, No Fair Use Policy) offers the best speed without limits. User Insight: “I’ve noticed that ‘unlimited’ plans often have a fair use policy, meaning after a certain limit, speeds drop drastically.” – Miriam. For Office & Business Use Businesses need reliable, high-capacity internet to handle daily operations, video conferencing, and cloud-based services. Here are some of the best plans for small, medium, and large businesses: Final Verdict: Best Data Plans in Nigeria (2025)

February 21 2025
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From red tape to rocket fuel: Why Africa’s policies must catch up with potential

This article was contributed to TechCabal by Ahunna Eziakonwa, UN Assistant Secretary-General and UNDP Africa Bureau Director Africa is on the cusp of major change – a transformation driven by its people’s ingenuity, resilience, and ambition. With the world’s fastest-growing youth population and a wellspring of untapped potential, the continent faces a pivotal choice: embrace a future where innovation fuels inclusive growth or allow bureaucratic inertia and outdated policies to stifle the momentum. Entrepreneurs across Africa are already rewriting the narrative. From fintech disruptors bringing financial services to the unbanked to agritech pioneers transforming food security, they prove that Africa’s challenges are best solved by those who know them intimately. African startups like Netagrow and Medtech Africa have demonstrated groundbreaking ingenuity, driving digital transformation across industries. Yet, despite their brilliance, these entrepreneurs face an uphill battle. Investment remains scarce, regulations are inconsistent, and markets are frustratingly fragmented. Africa accounts for 17% of the global population but attracts less than 1% of global venture capital investments. This is not just a gap; it is a chasm. If we fail to act decisively, we risk turning a generation of innovators into a generation of missed opportunities. Breaking Down Barriers The problem is not ambition. It is policy. Across the continent, entrepreneurs face a regulatory environment that feels more like a maze than a launchpad. Entrepreneurs struggle to navigate conflicting regulations that change from one border to the next. Growth is stunted not by lack of talent or ambition, but by the sheer weight of red tape. This is where initiatives like timbuktoo, championed by the United Nations Development Programme (UNDP), come in. timbuktoo is not just another development project. It is a bold, audacious attempt to bridge the gap between Africa’s untapped talent and the global innovation economy, ensuring that our brightest minds are given the support they need to solve Africa’s most pressing challenges. With a goal of mobilising and investing $1 billion in catalytic and commercial capital to ignite Africa’s startup revolution, timbuktoo is building the ecosystem entrepreneurs need to thrive. Through thematic hubs and University Innovation Pods (Unipods) across the continent, young innovators are gaining access to the tools, networks, and investments that can propel their ideas to scale. However, initiatives like timbuktoo can only go so far with an enabling environment. The real game-changer lies in policy reform, driven by the timbuktoo Policy Impact Unit, which ignites Africa’s innovation engine through market-creating policies. And Africa’s policymakers must rise to the occasion. We must break down regulatory silos and design market-creating policies that allow businesses to operate seamlessly across borders. For instance, aligning digital payment regulations could accelerate the expansion of fintech solutions, making financial services more accessible to underserved populations. Similarly, standardising health regulations can streamline the deployment of healthtech innovations, improving healthcare access and quality across the continent. The African Continental Free Trade Area (AfCFTA) provides a once-in-a-generation opportunity to drive this harmonization. However, it requires bold leadership and a willingness to prioritise innovation as the cornerstone of economic transformation. By integrating startup-friendly policies into its framework, we can transform Africa into a unified, thriving marketplace for innovation. Achieving these goals requires collective efforts. The private sector must shift its mindset, recognising Africa not as a place to extract value, but as a partner in building ecosystems that support entrepreneurship. Development organisations, too, must evolve. Grants alone are not enough. Blended financing models that attract commercial capital are essential to scaling innovation. Most importantly, we need mobilisation from the grassroots – young entrepreneurs, thought leaders, and activists – who can push for the policy changes necessary to unlock Africa’s full potential. Data is key. To advocate effectively for policy reform, we need robust, evidence-based research on how regulatory barriers affect African startups. This is why, with timbuktoo, we want to work closely with key stakeholders to ensure that Africa’s entrepreneurial ecosystem gets the support it needs. Perhaps the most critical voice in this conversation is Africa’s youth. We must amplify the voices of those directly impacted by these policies: young entrepreneurs. Their stories of struggle and triumph must be heard in boardrooms, legislative chambers, and international fora. Rallying policymakers, development partners, and business leaders around a shared vision will create a movement that transcends borders and drives real change. A Call to Action The stakes could not be higher. Africa is not a continent waiting to be saved; it is already leading in critical innovation sectors, such as fintech and mobile money or e-commerce. It is time to break down barriers, mobilise resources, and rewrite the rules. With bold leadership, strategic investments, and unwavering commitment, we can ensure that Africa’s brightest minds no longer have to seek opportunities elsewhere but instead build a thriving future right at home. The future we envision is within our grasp. ______ Ms. Ahunna Eziakonwa is UNDP Assistant Administrator, Assistant Secretary-General, and Director of the Regional Bureau for Africa – the institution’s largest – with a staff corps of over 5000 working in 46 Sub–Saharan African countries with an annual $1.2 billion budget. Her passion for preserving the dignity of Africa defines her leadership approach which focuses on equality, inclusion, reshaping narratives on Africa, and mobilizing for young entrepreneurs.

February 21 2025
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Airtel Kenya’s aggressive expansion challenges Safaricom’s dominance

After years of playing second fiddle to Safaricom, Airtel Kenya is gaining ground in mobile subscriptions, internet services, and mobile money. With aggressive pricing, strategic expansion, and a growing market share, the telco is positioning itself as a real challenger in an industry long dominated by a single player. While Safaricom still controls 65.7% of Kenya’s mobile market, Airtel’s 29.5% share shows faster growth. In the past year alone, Airtel added 1.8 million SIM subscriptions, matching Safaricom’s growth—an unusual shift in a market where Safaricom has historically been the only telco consistently expanding its customer base. But subscriber growth alone doesn’t tell the whole story. To compete, Airtel must address its long-standing revenue gap, network quality issues, and consumer trust in mobile money. In 2025, Airtel launched a strong push into the internet market, undercutting competitors with cheaper bundles. Amid intensifying price wars—partly fueled by Starlink’s entry into Kenya—the telco doubled its data allocation for KES 1,000 ($7.7) and KES 2,000 ($15), offering 30GB and 60GB. Unlike competitors, Airtel allows unused data to roll over, a key differentiator that has attracted budget-conscious users. Airtel is also taking the battle to home internet. In June 2024, it launched a portable 5G router that lets users switch locations easily—a direct challenge to Safaricom’s fixed 5G service and legacy internet providers like Zuku and JTL. While both Safaricom and Airtel offer free routers to new customers, Safaricom’s home service is limited to fibre-covered areas, whereas Airtel’s 5G service is more flexible. However, Airtel’s home internet business is still in its infancy and has yet to rank among Kenya’s top ISPs, where Safaricom leads with a 36.6% market share. One of Airtel’s biggest challenges in Kenya has been poor network coverage, especially outside major towns. Despite offering competitively priced services, it has struggled with consumer perception of unreliable connectivity. In response, Airtel is aggressively expanding its infrastructure. On February 11, 2025, the telco announced it has 4,200 active network sites and plans to add 1,000 more this year. It has also deployed 690 5G sites across 39 counties, which still lags behind Safaricom’s 1,000+ 5G sites in all 47 counties. If Airtel can close the network quality gap while maintaining lower prices, it could convert subscribers into long-term customers rather than losing them once promotional offers end. Airtel Money has been one of the telco’s biggest success stories in the past year, with its market share more than doubling from 2.9% to 7.6% between September 2023 and September 2024. Meanwhile, M-PESA’s share slipped from 97.1% to 92.3%. The biggest driver of this shift? Free Airtel Money transfers. Unlike M-PESA, which charges fees on transfers above KES 100 ($0.077), Airtel Money’s zero-cost transfers have resonated with price-sensitive users in an economy where inflation and job losses have squeezed household budgets. The telco has also expanded its agent network, increasing accessibility by partnering with major retailers like Naivas. But is this growth sustainable? Many users might use Airtel Money for free transfers but still choose M-PESA for higher-value transactions, business payments, and savings. While Airtel Money is gaining traction, M-PESA remains deeply embedded in Kenya’s financial system, with 365,000+ agents and integrations across banks, businesses, and government services. Airtel will need more than free transfers to keep users engaged—innovations in merchant payments, lending, and savings products will be critical if it wants to truly compete with M-PESA. While Airtel’s strategy has boosted market share, its financial performance remains unclear. The telco has not disclosed revenue figures, making it difficult to assess whether its aggressive expansion is translating into profitability. Meanwhile, Safaricom’s earnings remain unmatched. In the half-year ending September 30, 2024, Safaricom reported a 13.1% year-on-year increase in net revenue, reaching KES 179.9 billion ($1.4 billion). M-PESA alone contributed KES 77.22 billion ($597 million)—a sum likely exceeding Airtel Kenya’s entire revenue. Historically, Airtel has relied on low prices to gain market share, but converting budget-conscious users into high-spending customers remains challenging. If it fails to improve monetisation, it could face the same profitability struggles that have plagued its African operations for years.

February 21 2025
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Nigerians surpassed 1m terabytes of internet for the first time

Nigeria’s internet consumption surpassed 1 million terabytes for the first time in January 2025, marking a major milestone since the Nigerian Communications Commission (NCC) began tracking data usage in January 2023. This reflects the country’s increasing reliance on digital connectivity and the rising demand for internet services. Despite reaching this historic milestone, data consumption in January 2025 totaled 27,475 terabytes, a sharp decline from 94,502 terabytes recorded in December 2024. Terabytes (TB) are used to measure internet consumption, indicating the volume of data transmitted or received over a network. 1 Terabyte (TB) equals 1,000 Gigabytes (GB) or 1,000,000 Megabytes (MB)—a scale typically used by telecom providers to track high data usage, particularly among businesses, streamers, and gamers. The dip in monthly data consumption could signal challenges for telecom operators like MTN Nigeria and Airtel Nigeria, which recently increased data tariffs by 50%. Higher prices may discourage users from consuming as much data as before, potentially impacting revenue growth. Despite this, MTN and Airtel recorded significant internet subscriber gains in January 2025. MTN added 1.4 million new users, raising its total internet subscriber base to 73.7 million. Airtel followed closely, gaining 1.08 million subscribers to reach 48.4 million. On the other hand, Globacom continues to struggle after a regulatory audit in April 2024 led to a significant reduction in its subscriber base. It added only 313,939 users in January 2025, while 9mobile failed to gain any new subscribers.

February 21 2025
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Kenya Boda Boda riders threaten strike over stringent fines and jail time for violations

The Boda Boda Association of Kenya has vowed to stage a nationwide strike if the Public Transport (Motorcycle Regulation) Bill, 2023, is passed into law. The proposed bill aims to curb reckless riding, enhance road safety, and introduce stricter industry regulations, but riders argue that some provisions are impractical and could put them out of business. The bill, sponsored by Senator Bonny Khalwale, was debated in the Senate in January 2025 but must still pass through the National Assembly and receive presidential assent before becoming law. If enacted, it would introduce sweeping changes to Kenya’s boda boda industry, which has over 2 million motorcycles in operation and generates an estimated KES 1 billion ($7.7 million) daily, supporting 1.4 million households. Key Provisions and Controversies The proposed law introduces strict operational guidelines, including: Formal Employment: Boda boda owners must hire licensed riders under formal contracts Mandatory Protective Gear: Riders and passengers must wear helmets and reflective vests. Passenger Limits: Only one passenger is allowed per trip. Cargo Restrictions: Motorcycles cannot carry passengers with heavy loads. Commercial Insurance & Tracking: All motorcycles used for public transport must have commercial insurance and be fitted with tracking devices, a requirement riders strongly oppose. The tracking requirement is unpopular among boda boda riders, who fear government surveillance and increased operational costs. The law also imposes steep fines and potential jail time for violators. Traffic Violations: Riding on pavements, pedestrian walkways, or against traffic on one-way streets will attract a KES 20,000 ($154) fine, six months in jail, or both. Criminal Liability for Passengers’ Crimes: If a boda boda rider knowingly transports a passenger planning to commit a crime, they will share legal responsibility unless they had no reasonable way of knowing. Critics argue that this clause is too vague and could lead to unfair arrests. Intimidation & Violence: Riders who gang up to threaten or attack others, especially after an accident, face a KES 100,000 ($772) fine, one year in jail, or both. The Boda Boda Association of Kenya argues that the bill is discriminatory and unrealistic, warning that it could cripple an industry that millions rely on for employment. Riders also claim the bill favors corporate players and app-based platforms while marginalizing informal operators. Some have called for the government to subsidize insurance costs and offer training programs instead of enforcing punitive measures. Government’s Position: Cracking Down on Boda Boda Chaos Supporters of the bill argue that it is necessary to restore order on Kenyan roads. Boda bodas have been linked to thousands of road accidents annually, with government data showing they contributed to over 4,000 fatalities in 2023 alone. The debate over boda boda regulation has long been politically sensitive. In 2022, while campaigning for the presidency, William Ruto urged police to ease crackdowns on boda boda riders, acknowledging the industry’s economic significance. If Ruto’s government supports the bill, it could alienate a key voter base, but opposing it could signal tolerance for disorder. As the bill moves to the National Assembly, it remains to be seen whether the government will push for amendments or support it as is.

February 21 2025
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TechCabal Daily – Ebee Mobility loses tax appeal

In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! Wema Bank, a mid-tier commercial bank, just became the highest-paying bank in Nigeria after increasing salaries for its 1,700 workers. Executive trainees, previously earning ₦255,000 ($171) per month, will now start at approximately ₦541,000 ($362)—a 112% increase. Assistant banking officers will see their pay rise from ₦681,000 ($455) to ₦830,000 ($555), while banking officers’ salaries will climb to ₦1.015 million ($679) from ₦875,000 ($585). Senior banking officers, who previously earned ₦1.07 million ($715), will now take home upwards of ₦1.2 million ($802) per month, outpacing tier-1 banks like Access Bank, where senior banking officers earn ₦1.1 million ($736). Wema is the fifth bank to increase salaries for its staff in the last six months. The competition in Nigeria’s banking sector is getting tighter; smaller banks want to stay in the fight. Ebee Mobility loses tax appeal Jumia costs operational losses to $65 million but sees red CBN holds rates after CPI rebasing World Wide Web 3 Events Mobility Ebee Mobility loses tax appeal Image source: Ebee Mobility Kenya’s push to incentivise local manufacturing through favourable tax policies is encouraging original equipment manufacturers (OEMs) to follow the rules—or try harder—and save on taxes. By paying lower taxes on assembly parts rather than fully imported products, OEMs can significantly cut their tax burden, freeing up money to invest in local production. This strategy supports Kenya’s broader goal of reducing import dependency and growing industrialisation. However, the recent tribunal ruling against Ebee Mobility, a Kenyan e-mobility startup, reflects the challenges in navigating these tax classifications. In a recent hearing, the tax appeal tribunal upheld the Kenya Revenue Authority’s (KRA) decision to classify Ebee Mobility Kenya’s consignment of e-bikes as fully built units rather than assembly parts. By doing so, both the tribunal and the Kenya Revenue Authority (KRA) have set a precedent that could raise operational costs for startups that rely on imported components. The e-mobility startup argued that it didn’t import complete bikes; it sourced the batteries locally, which qualifies it partly as a local e-bike assembler. However, this wasn’t a sufficient claim for the tribunal. “Even if the bicycle has a battery, and there is no motor to convert the electrical energy to kinetic energy to propel the bike, then the battery has no value in turning the bike into electrical,” the tribunal stated. Had Ebee won the appeal, it would have qualified for a reduced 10% tax rate instead of the 25% import duty it now faces, along with additional VAT and excise duties. This would have meant a tax relief of nearly $33,000 (KES 4.2 million) based on the original back tax demand—money that could have been used to expand operations or improve local assembly capacity. This issue ties into the government’s wider plan to tax foreign smartphone brands more heavily and introduce vendor licencing, aiming to create fairer competition for local OEMs against well-funded smartphone makers. While these measures could help domestic manufacturing and create jobs, the lack of clear tax guidelines could still do more damage for local OEMs. There needs to be clearer guidelines for automakers on what is taxable across complete knocked down (CKD) assembly, semi-knocked down (SKD) assembly, completely built-up (CBU) vehicles, and their individual components. The lack of these clear guidelines and a fair tax system creates a challenging business environment for Kenyan OEMs. Without these fixes in place, policies designed to stimulate local innovation could inadvertently stifle growth and undermine Kenya’s potential to become a frontrunner in the manufacturing and technology sectors. 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! E-commerce Despite wins on cost-cutting methods, Jumia will take its search for profitability into 2025 Image Source: Jumia For businesses, achieving cost-efficiency is a critical step towards profitability. For Jumia, this has been a central focus under the leadership of CEO Francis Dufay, who took the helm in 2022. The African e-commerce giant has since embarked on an aggressive cost-cutting journey, streamlining its operations to prioritise sustainable growth. Jumia has made tough decisions to reduce expenses: multiple rounds of layoffs, significant cuts to sales and marketing budgets, and exits from low-performing markets like South Africa and Tunisia in December 2024. The company has also shifted its focus to low-cost customer acquisition channels as it tries to balance its unit economics. On paper, these measures appear sound. Yet, despite these efforts, profitability remains out of reach. Jumia’s Q4 2024 report, which included its full-year performance, revealed declines in several key metrics: revenue, gross merchandise value (GMV), and active users. Revenue for 2024 stood at $167.5 million, a 10% drop from the previous year. GMV, a crucial indicator of e-commerce performance, fell by 4% to $720.6 million. Meanwhile, active users declined from 10.1 million to 8.3 million, with only about 40% of users returning. Additionally, $13.5 million in supplier pre-payments further strained the company’s cash flow, contributing to its operating cash burn. If losses continue, Jumia may need to secure additional funding or implement further efficiency measures to extend its cash runway. External factors, such as FX volatility and currency devaluation in key markets, continue to pose financial problems for Jumia. The startup’s net losses remain substantial. In 2024, the company reported a net loss of $99.1 million, slightly lower than the $104.2 million loss in 2023. Yet, this improvement comes despite higher revenue in 2023, indicating that more work is needed to increase revenue and reduce losses. Despite these challenges, there were signs of progress. Jumia reduced its operational losses by 12% year-on-year to $64.7 million—declining for the second full-year in a row—signaling the startup’s stance on adopting a tighter cost-conscious approach. Expenses across sales and marketing, fulfilment, technology, and administration saw significant improvements, further validating Dufay’s strategy. While Dufay’s cost-efficiency methods are beginning to yield results, Jumia’s path to profitability remains