- April 7 2025
- BM
Kenya’s Central Bank sets 18-month deadline for banks to disclose climate risks
The Central Bank of Kenya (CBK) has given all commercial banks 18 months to start disclosing the environmental impact of the businesses and projects they finance. The move is part of the regulator’s efforts to clean up sustainability claims in Kenya’s banking sector and a crackdown on greenwashing—a growing concern as more banks and companies rush to brand themselves as environmentally responsible. CBK has issued Kenya Green Finance Taxonomy (KGFT), a classification system that identifies what qualifies as “green” under local and international climate standards. The new rules will require lenders to publicly disclose their exposure to climate-related risks, including investments in sectors with high greenhouse gas emissions. The idea is to move capital away from businesses that worsen the climate crisis and toward those that support low-carbon, climate-resilient investments. The 18-month transition period will be a grace window and a testing ground for all commercial banks to build internal capacity, train risk teams, and integrate climate screening into their credit assessment models. “The KGFT, which will be a live document subject to periodic updates, initially focuses on climate change mitigation and adaptation as its objectives,” the regulator said. “Other environmental objectives, such as biodiversity and related objectives, will be considered in future updates.” The announcement signals a significant shift. Climate risk will now be treated as a material financial risk, not just a reputational issue. CBK said the taxonomy is meant to give banks a clear, standard language for identifying climate-friendly investments and flagging the ones that are not. In recent years, “green” has become one of the most overused words in financial reporting. Globally, investors and regulators have grown wary of the rise in ESG-labelled products without evidence to back their bold environmental claims. The regulator said the transition period will open a window to engage with banks before a mandatory rollout in late 2026. “The transition period will also facilitate further engagement between Central Bank of Kenya and the banking industry on any changes deemed necessary to facilitate smooth implementation of KGFT,” CBK said. The new rules will likely cut the future financing of sectors like oil and gas, mining, and large-scale agribusiness. However, it could help banks win climate-conscious investors and tap into the growing market for green bonds and climate-aligned lending.
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- April 7 2025
- BM
Next Wave: What’s holding back African securities exchanges?
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published O6 April, 2025 When Flutterwave, Africa’s fintech darling, first hinted at going public, all eyes turned to the usual suspects: New York, London, and notably not Lagos. Why is it that even the continent’s brightest stars often look outside their borders to go public? E-commerce giant Jumia and Egyptian mobility startup SWVL Holding are among African startups that pursued foreign listings, but later experienced the unforgiving nature of those markets. The belief that a thriving IPO market is the gold standard of financial maturity has long shaped how we assess Africa’s capital markets. But this lens often overlooks the continent’s unique realities—and in some cases, it stunts the creative evolution of more suitable models. So, what’s really holding back African securities exchanges? And more importantly, what futures could we be building instead? Are IPOs alone the answer? According to the African Securities Exchanges Association (ASEA), only fourteen IPOs took place across Africa in 2023, raising just $1.3 billion. That figure pales compared to emerging economies like India, which saw 57 IPOs raising over $7 billion in the same period. The Nigerian Stock Exchange (NGX) has listed only a few new companies in the past decade. Over at the Nairobi Securities Exchange (NSE), the bourse has suffered an IPO drought, with Safaricom being the last significant listing 17 years ago. The inactivity at NSE is despite major tech success stories in Kenya. Although the Johannesburg Stock Exchange (JSE) is Africa’s most prominent, it has seen more delistings than listings in recent years. In the past two years alone, the JSE had around 12 delistings, with just three new listings. Next Wave continues after this ad. StroWallet lets your customers pay you directly. Access USD Virtual Cards, Virtual Accounts, ATM Cards, POS terminals, and Bill Payment APIs to manage your finances and grow your business with ease. Sign up here! It doesn’t mean the exchanges are dormant; more innovation from regulators, telcos, and fintech could spur interest, just like mobile money revolutionised banking on the continent. African companies, particularly in tech and high-growth sectors, are opting for alternative capital. Private equity, venture capital, and acquisitions could offer local firms more scalable and reliable options. The African Private Equity and Venture Capital Association (AVCA) data show that over 450 private capital deals were signed in 2023, totaling $7.2 billion in disclosed value. These investments include early-stage startups and mature companies, many of which now prefer to stay private or exit through M&A rather than IPOs. There are several examples to consider. Andela, the tech talent accelerator that started in Nigeria, opted for a US-based structure and raised over $180 million before hitting unicorn status. Yoco, the South African fintech company, raised $83 million in its Series C round and continues to expand privately. The capital markets are not dormant in many ways—they’re just evolving beyond their traditional forms. Over 30 exchanges! Like other sectors, fragmentation is another critical factor limiting the role of African exchanges. With over 30 independent stock exchanges across the continent, capital and expertise are stretched. From Lagos to Johannesburg, Nairobi to Casablanca, African exchanges have limited liquidity, small investor bases, and an unfriendly regulatory climate. The lack of integration of major bourses has created barriers to scale and discouraged foreign and regional investment. However, efforts to reverse some of this damage are gaining momentum. The ASEA and African Development Bank-backed African Exchanges Linkage Project (AELP) is pushing for cross-border trading between key exchanges, including South Africa, Kenya, Nigeria, Morocco, and Egypt. The project will enable investors in one market to buy securities listed in another. In East Africa, the East African Community (EAC) Capital Markets Infrastructure Project is implementing a unified trading and clearing platform that will cover all the member countries. It could create a harmonized market of over 185 million people if successful. Francophone West Africa offers a living example of what exchange integration could look like. Abidjan-based Bourse Regionale des Valeurs Mobilieres (BRVM) serves eight countries. Despite the challenges that individual economies like Burkina Faso, Mali, or Niger face, the platform has created efficiencies of scale and outperformed other exchanges. In 2023, BRVM surpassed its Anglophone counterparts, with its composite index– a weighted equity index that tracks the performance of the largest listed companies– rising by 13.5%. Capital markets could follow suit as more regional economic blocs pursue monetary and fiscal integration. Tech as a leapfrog mechanism The next generation of African exchanges may not look like traditional trading floors. They might be mobile-first, blockchain-enabled, and run on AI-powered models. Platforms like Chipper Cash, Hisa, Bamboo, and Trove already give retail investors access to U.S. stocks from African soil. What if the same tech stack also enabled fractional ownership of local enterprises? In 2024, Nigeria’s Trove began piloting fractional trading of local stocks–allowing users to invest with as little as 500 naira ($0.50). Micro-investing could open the doors to millions of small investors currently shut out of the capital market. In Kenya, for instance, the government’s M-Akiba allowed ordinary citizens to buy government securities through mobile money platform M-Pesa, raising over KES1 billion from first-time investors. Such platforms prove that with the right tech and user experience, participation in securities markets can be democratized. Tokenised securities, smart contracts, and mobile KYC can bypass the red tape that bogs down IPO processes. It could allow local SMEs and startups to raise funds without needing full-fledged listings, bringing liquidity and trust to underserved sectors. Blockchain technology could also reshape the infrastructure of African markets. In South Africa, firms like Revix are offering tokenized investment products. If applied to local equity or debt markets, blockchain could
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- April 7 2025
- BM
TechCabal Daily – Kuiper chases Starlink
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! In 2019, Jeff Bezos’ Amazon launched Project Kuiper to use a large satellite constellation to provide low-latency broadband connectivity to millions of users worldwide. However, the project remained silent for most of the years that followed. Now, under its granted Federal Communications Commission (FCC) licence, Amazon is required to launch and operate at least half of its satellites by July 2026. With the speed of Hermes, the team is rolling out prototype satellites to expedite the process. With Google’s Taara also breathing down on Elon Musk’s Starlink, perhaps consumers—especially in Africa—will soon become dizzy from the array of options. But in Musk’s words, not ours, “competition leads to a better outcome for consumers.” We agree, Musk. We agree. Umba to pay $21,600 in compensation for “unfairly” firing an ex-employee Kuiper keeps the pressure on Starlink Mafab’s 5G plans stall again World Wide Web 3 Events Startups Umba to pay $21,600 in compensation for “unfairly” firing an ex-employee Umba Team/Image Source: AppsAfrica On March 28, a Kenyan court ruled that Umba, a digital bank, must pay KES 2.88 million ($21,600) for unfairly firing its former head of growth during her probation period. The court ruled that Umba didn’t follow due process—even during probation. There were allegedly no written evaluations, no formal warning, and the dismissal was delivered via WhatsApp. Previously, we saw an ex-employee win an unfair termination case against another Kenyan startup, Marketforce. With Umba, the message is the same: Kenyan law is clear—probation doesn’t cancel out the need for fair treatment. Phasing out employees, just like hiring them, should be handled with more care. If we know anything by now, it’s that Kenyans are litigious. Therefore, startups should be careful in how they manage exits and employee disputes. Startups operate in high-pressure environments. Roles shift quickly, targets evolve, and sometimes hires just don’t work out. But without clear internal processes, even well-meant decisions can end up in court. That’s the first lesson here: documentation and communication of clear expectations for new hires will save companies from legal headaches. Startups should not avoid hiring out of fear of legal risk. Instead, they need to protect themselves by doing the basics right. It doesn’t take much to stay compliant, but it does take consistency. As this case shows, skipping the formalities can be more costly than doing things by the book. Employees are turning their contracts page by page to spot loopholes, so it is important that employers honour these agreements down to the minutest detail. For example, if a startup mandates severance pay for employees it transitions out of the company, simply not honouring that agreement can be damaging—both legally and reputationally. With the stories about unfair termination coming out of Kenya, employees are learning their rights. Startups, on the other hand, should invest in proper HR processes, document performance thoroughly, and seek legal advice when necessary to avoid costly missteps. Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. Internet Will Jeff Bezos’ Kuiper have the South African market that Elon Musk nicely buttered? Amazon’s Project Kuiper/Image Source: Amazon We can wager a few pennies that South Africa is one of those non-Starlink markets that keeps billionaire Elon Musk restless. Okay, maybe not restless—but his intense lobbying and soft fallout with friends in high places (looking at you, President Cyril Ramaphosa) suggest there’s more than casual interest. For months, Musk has pushed hard to bring Starlink to his birth country. But a law requiring 30% local black ownership for foreign companies has been a thorn in his side—bad enough that he publicly played the race card. Still, South Africans want Starlink badly. Since July 2024, they have used the ISP’s roaming service by piggybacking off neighbouring countries. Despite regulators calling it illegal—and Starlink itself threatening twice to cut users off—this hasn’t stopped people. While there’s no official data, some estimates peg South African roaming users at several thousands. That’s in comparison with Kenya’s 19,146 users, where Starlink is licenced and has been operating for over a year. For a market where the service technically doesn’t exist, this is huge. Yet even as Musk pushes uphill, fellow billionaire Jeff Bezos is making his own quiet entry. Amazon’s Project Kuiper, a rival satellite internet venture, is launching its first 27 satellites on April 9. And here’s the kicker: Kuiper has already partnered with Vodacom, South Africa’s second-largest telecom operator, for local rollout. Where Musk has met resistance, Bezos seems to be moving in with less friction and a well-placed ally. Project Kuiper may be late to the party, but South Africa’s appetite for fast, reliable internet is no longer up for debate. Do we have a potential battle of billionaire tech CEOs on our hands? Yes, we do. Introducing Zap by Paystack! Zap is Paystack’s first consumer-facing app designed for simple, fast and secure payments via bank transfer. Download Zap on Android and iOS → Telecoms Mafab’s 5G plans stall again Image Credit: Airtel Mafab Communications, one of Nigeria’s 5G licence holders since 2021, has missed yet another self-imposed deadline to launch services by Q1 2025. Despite securing a $273.6 million licence in 2021 and promising to launch services in Abuja and Kano, Mafab has not deployed a single operational site. With no operational site despite promising 102, the telecom upstart’s repeated delays—stretching back to 2022 including a public launch with no service follow-through—have left Nigeria’s 5G market dominated by telecom giants MTN and Airtel. MTN and Airtel have seized the 5G market. MTN has rolled out 5G services in at least 13 cities and Airtel is expanding in urban centres, including Kano. With both incumbents offering fixed wireless broadband and mobile 5G services, Mafab’s window for differentiation is closing rapidly. Yet, Mafab’s repeated failure to meet
Read More- April 5 2025
- BM
Kenyan court orders Umba to pay $21,600 over unfair dismissal of former executive
A Kenyan Employment and Labour Relations Court has ordered neobank Umba to pay KES 2.88 million ($21,600) in damages and legal costs for unfairly terminating former executive Alice Anyango Oduor, underscoring legal expectations for startups navigating employment laws in the East African country. The March 28 ruling found that Umba— which operates in Kenya and Nigeria—violated due process when it terminated Oduor’s contract in January 2023 during her six-month probation period. Oduor, who served as the company’s head of growth, was dismissed after just a few months in the role, allegedly for poor performance and inability to meet targets. According to court documents seen by TechCabal, Oduor claimed that no clear targets were set and that her performance was not formally evaluated. Oduor claimed she was dismissed via a WhatsApp call from the company’s CFO, without a formal meeting or written notice. Umba, through its lawyers, argued that it informed Oduor of her performance expectations and held several meetings to help her understand her job, including a December 20, 2022, meeting with the CFO. The company added that her termination resulted from performance issues, and informed her of the intended termination. However, the court determined that Umba failed to provide sufficient documentation to justify the dismissal and did not allow Oduor to respond to the allegations—an omission that rendered the termination unlawful, even though she was on probation. “The Respondent has not proved that it conducted a performance evaluation against the Claimant’s targets over a specified period of time prior to concluding that her performance was not as per its expectations, hence rendering her unfit for the company,” said Judge Stella Rutto, who presided over the case. The $21,600 compensation covers the equivalent of Oduor’s three months’ salary during her short stint at the company. The court also ordered Umba to issue a Certificate of Service within 30 days and to cover all legal costs. Umba did not immediately respond to a request for comments. Under Kenya’s Employment Act, employees on probation are still entitled to fair procedural treatment before termination, including being informed of performance concerns and being given a chance to respond. The court noted that probationary status does not exempt employers from these legal obligations.
Read More- April 4 2025
- BM
AI is boosting revenue, cutting cost for tech companies amid high inflation
When Kassy Olisakwe started Auroraweb3, a Nigerian company that builds decentralized solutions, websites, and applications for businesses, in 2020, his annual revenue was ₦114 million ($74,000). But since adopting Artificial Intelligence (AI) tools like Claude, Cursor, ChatGPT, Juro, and Perplexity, that figure has more than quadrupled to ₦481 million in six months and, by his projections, will likely double in the coming months. “By leveraging AI, my agency has significantly increased its productivity and output, enabling us to take on far more projects than before, without compromising on quality,” he told TechCabal. Olisakwe said his agency has also diversified into new verticals, including Web3 investments and the development of trading bots. “What used to require entire teams can now be managed efficiently by fewer individuals, allowing us to expand our service offerings, improve delivery times, and reach a broader client base.” He explained that depending on the scope of the project, it would typically require a team of four to six contract-based developers from the 34 currently on staff. However, since adopting AI, projects can now be “efficiently” managed with only two or three developers, and sometimes even just one developer with minimal external input. Fadé Adeniyi, co-founder of Techlerator, a tech-focused boutique recruitment startup operating in the UK and Nigeria, has also seen a rise in revenue since incorporating AI in its operations. “We have expanded our reach and scaled our business considerably, resulting in a revenue increase of over 65% in just four months,” she said. Using Llama, a language model, has enabled them to transition from training hundreds of students in individual classes to reaching over a thousand students simultaneously. “This scalability has not only accelerated our training processes but has also significantly increased our revenue compared to our previous instructor-led model,” Adeniyi said. AI is helping firms cut operation costs AI has transitioned from a futuristic concept to a tangible profit-generating tool that companies are leveraging to grow revenue, optimize costs, and elevate productivity amid high inflationary pressures. The release of OpenAI’s ChatGPT in November 2022 was a major turning point in the widespread adoption of AI across industries. According to Brad Lightcap, OpenAI’s Chief Operating Officer, ChatGPT had 400 million weekly users as at February 2025 from one million in November 2022. Apart from ChatGPT, other versions of AI chatbots and models from Google, Anthropic, Meta, and Baidu have also been released. These global companies have been competing for dominance in the generative AI space with each striving to release a superior product, leading to frequent updates that enhance user interaction and automating tasks. “AI has boosted our content production speed and volume, and enhanced our SEO efforts, generating additional revenue streams,” Ogugua Belonwu, CEO of Lagos-based recruitment agency MyJobMag Limited, said. Before using ChatGPT for his company’s content production in 2024, Belonwu had been paying content writers approximately ₦6 million ($3,904) per year. “Apart from generating content outlines, guides and streamlining content creation, AI also plays a role in the company’s SEO strategy as it leverages tools to identify target areas and optimize content,” he added. For Temi Babaola, CEO of Spitch, a Nigerian company that develops advanced text-to-speech and speech-to-text AI models, using AI has saved them up to 10% of his budget cost. “We are not just users of AI, but builders as well. Our developers utilize AI to build functionalities and streamline their workflow,” he said. According to Babaola, AI is integrated into every stage of product development, from ideation and road mapping to writing product requirement documents and task assignments. “Many of the tools we’ve adopted are AI-based, and their use is woven into our workflows.” As more businesses across industries adopt AI, the impact on GDP growth, job creation and productivity will become increasingly evident in many economies including Nigeria. A recent report by Google projects AI would increase Nigeria’s economy by $15 billion in 2030. The report estimates that every dollar invested in digital technology in the country generates over eight dollars in economic value, illustrating the high return on investment in the sector. Another report from GSM Association (GSMA), a non-profit trade association, sees AI adding $2.9 trillion to Africa’s GDP. The report added that Nigeria, a leader in African tech, has the potential to greatly benefit from AI solutions, especially in the energy, climate action, and agric sectors. AI-powered precision agriculture is already improving crop management while startups like ThriveAgric now employ AI in assessing the creditworthiness of farmers for input financing. Hello Tractor, another agtech startup, uses AI to connect tractor owners and smallholder farmers through an equipment sharing app. Could AI displace jobs, dampen creativity? With AI’s ability to automate repetitive tasks and the increasing number of companies adopting lean management structures, there are growing concerns that certain job roles will likely be fully automated by 2030. World Economic Forum (WEF) in January said 41% of employers intend to downsize their workforce while Bloomberg Intelligence projected that global banks are expected to cut as many as 200,000 jobs in the next three to five years. “AI hasn’t replaced our team, it has amplified them,” Olisakwe of Auroraweb3 said. “Our top-tier professionals now oversee multiple projects simultaneously, acting as strategic leads for mid-level and junior developers.” He stated that by hiring the best talent in their respective fields, he can avoid layoffs, leading to a more streamlined, agile, and high-performing organization. ‘This approach fosters sustainable growth while upholding technical proficiency.” MyJobMag is cautious about integrating AI to avoid staff cuts and maintain good relationships with its clients. “Employers will not like it if we use it too much,” Belonwu, the company’s CEO said. Mathew Munyao, founder of Attention Media, a Kenyan-based AI automation and marketing agency said as a creator, AI has sharpened his creativity. “I leverage tools like GRok 3 and ChatGPT for in-depth research and DeepThink for web exploration, enabling me to gather information quickly and efficiently. Furthermore, AI’s creative capabilities allow me to generate and animate images, compose music, and design websites
Read More- April 4 2025
- BM
Mafab misses Q1 5G rollout deadline despite December promises
Mafab Communications, the telecom operator that secured one of Nigeria’s $273 million 5G licenses in 2021, has again missed its self-imposed deadline to launch services. Despite promising in December to go live by the end of Q1 2025 in Kano and Abuja, Mafab has not deployed any of the 102 sites it said would support the launch, raising fresh questions about the company’s capacity to compete in Nigeria’s 5G market. Mafab’s delayed launch leaves the 5G market as a two-horse race between MTN Nigeria and Airtel Nigeria, leaving consumers with limited options and setting back the government’s ambitions to deepen broadband access. The latest delay follows a pattern of missed deadlines and public launch announcements without actual deployment, dating back to January 2023, when Mafab hosted launch events in Lagos and Abuja with no service delivery to follow. Originally expected to launch by August 2022, Mafab was granted a five-month extension by the Nigerian Communications Commission (NCC) after failing to obtain a Unified Access Service License (UASL)—a basic requirement for telecom operations. Two years later, the company still hasn’t rolled out 5G services. The NCC is growing increasingly impatient. According to one NCC source who asked not to be named as they are not authorised to speak to the media, Aminu Maida, NCC executive vice chairman (EVC), summoned Mafab officials in December 2024 and gave them an ultimatum: deploy soon or risk sanctions. It was after this meeting that Mafab promised to launch in Q1 2025, but the deadline has now passed without a single operational site. Mafab declined to comment on the missed deadline or its readiness to launch. “They have not been able to raise the funds required for the deployment,” Rotimi Akapo, partner and head of Telecommunication, Media and Technology (TMT) at Advocaat Law Practice. “Most of the equipment will have to be imported, and it’s very capital-intensive.” To get off the ground, Mafab must either lease infrastructure from tower providers like IHS Towers or American Tower Corporation, or build and manage its sites, depending on its deployment strategy. Both paths require long-term lease agreements, installation of 5G base stations, and a core network platform with a functioning billing and business support system. Even the most basic launch would be expensive. Industry estimates suggest that deploying 102 base stations could cost Mafab as much as $122 million in Nigeria, where the average cost per 5G site can reach $1.2 million, nearly 10 times what Chinese operators pay, thanks to larger economies of scale and domestic manufacturing. Mafab had hoped to skirt direct competition with incumbents by launching in underserved markets like Kano and Abuja. But that window is closing fast. MTN and Airtel began offering 5G in Kano in 2023, according to Abdulrasheed Hussain, Digital Media Manager at Premier Radio Kano. “Mafab is supposed to be launched here, but it hasn’t,” he said. “So far, we have MTN and Airtel 5G routers in Kano.” Mafab may pivot toward fixed wireless broadband—a cheaper alternative to mobile 5G that delivers high-speed internet to homes and businesses. MTN and Airtel already use this model to expand reach. Still, fixed broadband requires significant investment in fiber or wireless backhaul infrastructure to deliver reliable speeds. “Mafab faces two major hurdles,” said an investment expert who asked not to be named. “First, investors are hesitant to back an unproven company with no track record. Second, Nigeria’s forex crisis makes it difficult for foreign investors to bring in capital. Domestic investors alone may not be able to fund this scale of investment.” The window for Mafab to prove itself is rapidly closing as failure to launch might eventually lead to NCC withdrawing the licence. Without sufficient funding and infrastructure, the company risks being left behind in Nigeria’s 5G race, further solidifying MTN and Airtel’s duopoly. Whether Mafab can overcome these challenges and finally deliver on its promise remains an open question—but for now, skepticism is at an all-time high.
Read More- April 4 2025
- BM
Ahead of April review, South Africa’s AI policy faces pressure to deliver
Nearly eight months after it was introduced, South Africa’s National Artificial Intelligence (AI) Policy framework is set for public input review this April by the Department of Communications and Digital Technologies (DCDT). While the framework promotes ethical, inclusive AI development, innovation, talent development, and data protection, experts raise concerns about its slow progress. “At the moment, there is a lot of uncertainty,” said Nerushka Bowan, a technology and privacy lawyer and the founder of LITT Institute. “The biggest task would be to provide a clear and actionable roadmap to guide the country’s AI policy direction and regulatory intent.” South Africa, recognised as a frontrunner in Africa’s technology landscape, had been anticipated to lead the way in AI policy development. However, it is lagging with unclear direction in its AI policy implementation. Without clear regulatory guidance, the country risks falling behind peers like Rwanda and missing opportunities for economic transformation and global competitiveness, said Daniel Novitzkas, the group director at Specno, a South African digital solutions company. Rwanda approved its national AI policy in April 2023, focusing on using AI to drive economic development and improve public services, and prioritises ethical AI development, investment incentives, and infrastructure expansion. Without a comparable roadmap, South Africa risks missing out on the projected $1.5 trillion contribution of AI to Africa’s GDP by 2030. Wendy Rosenberg, director, head of digital media and electronic communications practice at Werksmans Attorneys, said that while South Africa’s AI framework covers critical areas like data protection, privacy, governance, and transparency, its delay is problematic. “These issues are critical in ensuring AI development and deployment align with South Africa’s legal and ethical landscape,” said Rosenberg. “ However, it is crucial to finalise the policy framework as it sets the foundation for detailed policies that will be established for various sectors.” Need for a clear AI regulation Currently, industries like financial services and healthcare operate under sector-specific regulations, which already impose obligations on AI-related applications. However, there is no overarching AI-specific regulation or guiding policy to provide clarity on government intent and future legal obligations, said Bowan. Without a nationally supported AI framework policy, it becomes increasingly difficult to encourage entrepreneurs and attract foreign investment in AI infrastructure. Investors and developers often look for regulatory clarity before committing resources, and the absence of a definitive policy creates hesitation, stalling AI-driven economic transformation. “We do not have many years to debate the way forward,” Bowan said. “Investors want to know what the landscape looks like. Early movers often gain a first-mover advantage.” A lack of clarity does not just deter investors, it risks driving local AI talent abroad, where countries with well-defined AI policies, such as the U.S., U.K., and Canada, actively attract skilled professionals with funding incentives, research grants, and AI-friendly regulations. “The people capable of building AI solutions for our economy need the right tools, information, and regulations to thrive here. Otherwise, we risk losing them to the US, Europe, and China,” said Novitzkas. Addressing ethical and bias concerns South Africa already has a strong foundation for AI regulation, thanks to the Protection of Personal Information Act (POPIA), which aligns with the European Union’s General Data Protection Regulation (GDPR). However, Rosenberg pointed out that AI policies must go beyond data protection to address transparency, bias mitigation, and ethical AI use. “AI systems use personal information for various purposes – training AI models, personalisation, and analytics,” Rosenberg said. “This makes transparency and user control vital.” Addressing ethical concerns in AI-bias, transparency, and accountability is vital, particularly in South Africa with its history of inequality. Rosenberg noted that global best practices such as human-in-the-loop systems, bias evaluation processes, and diverse data sampling should be implemented to mitigate these risks. A risk-based approach For South Africa to develop a policy that fully capitalises on AI, it must address key challenges, particularly data sovereignty and internet connectivity. As of 2023, about 28% of South Africans lacked internet access, limiting the country’s ability to fully harness AI’s potential. “Even if AI has the potential to address pressing issues like education, the average South African still lacks access to the internet or a smartphone,” Novitzkas said. Looking globally, the European Union’s AI Act follows a risk-based approach, imposing stricter regulations on high-risk applications while allowing more flexibility for low-risk AI. For AI policy implementation to be successful, a phased approach will be necessary, alongside ongoing legislative updates and monitoring mechanisms. “The challenge always is the law keeping up with technology. What we need is principle-based, future-ready legislation,” Rosenberg said. Regulation is necessary, but it must not stifle innovation. If South Africa can strike the right balance between oversight and technological growth, AI could become a major driver of investment, job creation, and digital transformation, rather than another missed opportunity.
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- April 4 2025
- BM
Next Wave: Digitising danfo payments could unlock a $375 million opportunity in Lagos
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 30 March, 2025 Like millions of Lagosians, Samson endures the frustrating daily struggle of commuting in one of the city’s 75,000 rickety yellow buses, known as Danfos. But unlike other Lagosians, he decided to tackle one part of the problem—digitising payments in Nigeria’s informal transport sector—after a dispute with a bus conductor over change. Globally, removing cash from public transport has led to significant benefits—notably, reduced dwell time and improved data collection. In Lagos, the government’s decision to make the government-backed blue buses accept cashless payments improved the commuting experience for many Lagosians. Several Lagosians told me that they prefer BRTs not only because they are more comfortable but also because paying with the Cowry contactless card is a superior experience to paying cash with Danfos. Capturing even a fraction of the Danfo transactions digitally could improve how Lagosians commute, give the government more visibility into transportation, which will lead to better planning, and accelerate Nigeria’s transition to a cashless economy. Lagos sees an estimated 14 million motorised trips every working day, according to government estimates. About 69% of these trips are in Danfo buses, which serve over 17 million residents and still rely almost entirely on cash for fare payments. Assuming an average fare of ₦300 and 8 million daily danfo trips, public transport in Lagos likely generates over ₦2.4 billion ($1.5 million) in daily revenue—roughly $375 million annually. While this represents the total market size, a startup willing to digitise payments for Danfos can expect to capture a large share of the market in five years, given that it took Tap and Go, a Rwanda-based startup that introduced cashless fare collection in Africa, three years to fully digitise public bus payments in Kigali. But making this a reality is far from straightforward, as disrupting a decades-old cash-based transport culture at scale means convincing an ecosystem of vehicle owners, unions, conductors, drivers, and passengers with different interests to adopt new technology. Next Wave continues after this ad. Visa Stay Secure: 86% Nigerians expect to increase their use of digital payments over the next year A new study from Visa highlights increasing awareness and trust in digital payments among Nigerians. Despite 64% admitting to falling victim to scams in the past, 79% mostly or completely trust digital transactions, and 86% expect to use them more. Find out more here! How would it work? Touch and Pay (TAP), a YC-backed startup, has digitised payments for government-backed public means of transport in Lagos but it could only achieve this because the BRTs are centrally owned or managed, allowing the startup to easily install its hardware for contactless payments and easy management. Its payment product processed over ₦20 billion in 2024. Contactless smart cards used by BRTs are ideal for passengers as they allow multiple people to pay for fares instantly before the ride begins. Tap and Go also uses this payment system. However, installing a physical device on buses is more challenging with danfos, which are fragmented and individually owned. Some drivers also take shifts and must pay bus owners a daily rental fee. With many danfos running multiple shifts per day under different drivers, there might be no sense of ownership and poor maintenance of the devices if they are attached to the bus. There is also the risk of theft. Three drivers told me passengers and thugs might steal the device from the bus when left unattended. Two approaches might work for contactless payments to scale with Danfos. The first would be to do what Samson did and use a system using printed cards with barcode scanners. Each bus has a barcode sticker; passengers would scan the barcode, enter the fare amount, and pay directly from their digital wallets. The driver receives instant SMS alerts confirming payments. Another approach that might work is introducing a hand-held device that each driver owns. This ensures drivers can access their earnings anytime and easily switch between buses or shifts while continuing to earn. The device must instantly transfer fares collected to the driver, not the bus owner, as the driver covers union tickets, fuel and minor maintenance issues. Drivers also receive instant alerts confirming payments. The second approach is more expensive, but it also locks in the drivers. The device must be rugged, affordable, and reliable in areas with poor network coverage. Manufacturing custom devices would likely require outsourcing and significant upfront capital. The drivers can finance the device through a hire-purchase agreement. The startup might also need to partner with an insurance company to provide device coverage and maintenance. Both approaches must include a USSD-based solution, as the cashless system will lock out low-income earners who use basic feature phones. Even for passengers or bus drivers that use smartphones; the cost of data might be a barrier, but with USSD, payments become equitable. Deposits can be held on a digital wallet that can be accessed with USSD. Next Wave continues after this ad. Registration for GITEX AFRICA 3rd edition is NOW OPEN – Africa’s largest tech and start-up event from 14-16 April, 2025 in Marrakech, Morocco. Presenting 3-days of high impact and outcome-focused public-private sector collaborative gatherings, including the largest, most advanced, tech innovation showcases. Register now! How will the business make money? The most reliable revenue stream is a small fee per digital transaction, either a flat rate or a percentage of the fare. TAP, for instance, charges a 5-10% commission depending on the city. An initial subsidised approach might be the best way to introduce cashless payments before reverting to actual price when the startup scales up. The startup can also make money from selling the devices
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- April 4 2025
- BM
TechCabal Daily – Djamo unchained
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! But you know how this week will be remembered next year, or maybe forever? It’s the week Trump slapped tit-for-tariffs on about 60 countries, including dozens of African countries, some over 30%. The cost of doing business with America is shooting up: textiles, oil, or farm produce. So, if you’re building for exporters, supply chains, or powering global payments, this policy shift isn’t background noise: it’s a warning bell. If you’re reading this, then implementation is already in motion. Keep reading to see how this could reshape Africa-US trade. Let’s get it going. Launchpad by Founders Connect is back with $9,500 in funding and over $30,000 in perks Djamo just bagged $17M. Is Francophone Africa finally getting its moment? Trump’s tit-for-tariff could cost Africa billions CNG fleet saves Shuttlers 29% on fares Funding Tracker World Wide Web 3 Events Partner Content Launchpad by Founders Connect is back with $9,500 in funding and over $30,000 in perks Image Source: Founders Connect Launchpad by Founders Connect is back in Nigeria, giving early-stage startups a shot at funding, pitching opportunities, and exclusive growth resources. If you’ve got traction and ambition to go with it, this one’s for you. Selected startups will receive $9,500 in funding, split between a $2,500 grant and $7,000 in SAFE investment from African Impact Initiative (AII). You’ll also get six months’ access to Notion AI (worth $6,000), $25,000 in fee-free processing on Paystack, free PR services from Renee, and more. Applications close on April 16th. Don’t miss out, apply now or forward this to someone you know who is building the next big thing. Freelancers & remote workers, we want to hear from you! Fincra is exploring the challenges Nigerian freelancers and remote workers face with international payments. Share your experience and help contribute to building better payment solutions. Take the survey now! Startups Djamo just bagged $17M. Is Francophone Africa finally getting its moment? Image Source: We Are Tech Africa Oui. On Thursday, Ivorian fintech Djamo raised $17 million, and it’s more than a win for the country’s tech ecosystem; it’s another sign that Francophone Africa is making a strong case for more VC attention. Launched in 2020, Djamo offersdigital financial services in a region where traditional banking has left most people behind. Its app offers free Visa cards, mobile money integration, and budgeting tools. The company says it has already crossed 1 million users; demand is real. This fundraise adds fuel to the region’s growing reputation as an untapped market. In Q1 2025, Togo secured the highest funding among African countries outside the Big Four—Nigeria, Egypt, South Africa, and Kenya. And with startups like Djamo scaling fast, investors are beginning to take the region more seriously. Yet, the funding gap remains: from regulatory friction to limited investor networks, the region has to work harder to attract capital. For every Djamo catching the spotlight, many startups are doing meaningful work in the shadows without enough support. The question is: Will the investor ecosystem step up or play catch-up while the scene says, On est là? We’ll see. Paystack introduces its first consumer app, Zap! Zap by Paystack is an app for secure and fast payments via bank transfers in Nigeria. Download Zap on iOS and Android → Global policy Trump’s tit-for-tariff could cost Africa billions A Studio Ghibli image of President Trump/Image Source: ChatGPT Here’s what the US looked like before President Trump came in: African countries like Kenya, Ghana, Nigeria, and Ethiopia had stable trade relations under the African Growth and Opportunity Act (AGOA), exporting textiles, petroleum, and vehicle parts to the US duty-free. Tariffs weren’t a major concern, and exports flowed with little disruption. But on Wednesday, the world got another taste of Trump’s America-first policies: he implemented sweeping tariff changes. His new tariffs impose a blanket 10% levy on most imports, leaving the world rethinking foreign trade with the US. Trump’s “reciprocal tariffs” introduce new trade dynamics. Countries that impose higher duties on American goods will now see their exports taxed at similar rates. While China and Vietnam were some of the worst-affected countries globally—because we know why—the new Trump tariffs affect Africa just as badly. Lesotho, the worst-hit in Africa will now pay 50% in tariffs on textile and other goods exported to the US, while South Africa, which Trump seems to have some qualms with recently, got 30%. Meanwhile, Kenya, Ghana, and Ethiopia received the lowest tariff at 10%, yet the dynamic has shifted from the duty-free benefits they previously enjoyed. These changes raise costs for African exporters, making their goods less competitive in the US market. Sectors like textiles, which depend heavily on American buyers, will see increased pressure. Nigeria, which places 27% tariffs on US imports, will now face a 14% levy on its goods entering the US. If Nigeria somehow pulls off its ambitious target oil production for 2025, exporting to the US as a trade destination will become expensive, as 10% on tariffs, added with the currency imbalance, will blow a wide hole open in the trade. The same can be said for other African countries. Africa’s biggest exporters now have to rethink how they trade with the US: whether this means looking to other markets or negotiating better deals on separate goods. We know China has already declared a tariff war on the US, and the two have been clanging their wooden swords since. We’re speaking to entrepreneurs, policymakers, and investors, so look for the full story soon on TechCabal. 9PSB Records 50% Transaction Growth with Qore’s BankOne* 9PSB has transformed Nigeria’s payment landscape, expanding its nationwide agent network to deliver vital financial services. In partnership with Qore, 9PSB has achieved a 50% surge in transactions. Discover the story behind this remarkable growth. Click here to read the full story. Startups CNG fleet saves Shuttlers 29% on fares Image Source: Shuttlers Shuttlers, the Lagos-born startup digitising shared commutes, rolled out 20 CNG-powered buses in Q1 2025,
Read More- April 3 2025
- BM
Kenya, Ghana and Ethiopia hit with lowest tariffs under Trump’s trade war
Kenya, Ghana, and Ethiopia are among the African economies that face the lowest tariffs under President Donald Trump’s new trade policy. Goods from the three countries will be subject to a 10% levy, significantly lower than rates imposed on Lesotho (50%), Madagascar (47%), Botswana (37%), Angola (32%), and South Africa (30%). On Wednesday, US President Donald Trump announced tailored tariffs for countries globally in a move he said would bring manufacturing back to the US, increase tax revenues, and respond to unfair trade policies. The plan, which set a baseline tariff of 10%, could upset global trade and slow growth in developing countries like Kenya. The 10% universal tariff will take effect on April 5, while reciprocal tariffs, such as those imposed on imports from Nigeria, will begin on April 9. Nigeria’s goods to the US will face a 14% levy, nearly half of the duties the West African nation imposes on imports from the US. “April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again,” Trump said in an address on Wednesday. Trump’s tariff announcement presents a significant political and economic risk for African countries like Nigeria, Ghana, and Kenya, which already grapple with economic downturns. Goods from around 30 African countries–most of which impose 10% tariffs–will face the lowest rates globally. Trump’s new trade policy further heightens uncertainty over the renewal of the African Growth Opportunity Act (AGOA), which is set to expire in September 2025. South Africa, Nigeria, Ghana, and Kenya are the biggest beneficiaries of AGOA, which grants duty-free access to the US market for 32 sub-Saharan African countries. In 2024, AGOA-covered imports averaged $11.6 billion. South Africa exports vehicle parts under AGOA, while Nigeria, Ghana, and Angola primarily export petroleum products. Meanwhile, Kenya, Lesotho, and Tanzania, focus on textile and apparel exports.
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