- February 12 2025
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MTN Nigeria’s 50% tariff increase affects four internet plans
MTN Nigeria’s 50% tariff adjustments, implemented on Monday, affected only four of the 18 internet plans offered by the network. Subscribers criticized the telco’s internet price adjustment, noting some of the internet plans were raised more than the 50% threshold approved by the Nigerian Communications Commission (NCC). However, a data pricing document reviewed by TechCabal showed that the 50% increase affected only four out of the 18 internet plans on the network. The changes included replacing the 2GB hourly bundle (previously priced at N200) with a 400MB hourly plan for N100—an effective price increase of 156%. The 400GB three-month plan, which was previously available for ₦50,000, was adjusted to 480GB for three months at a new price of ₦120,000, reflecting a 100% increase. The 2.5GB digital channels-only bundle—meant to support digital-only businesses—got a 50% increase with the price rising from ₦500 to ₦750. The biggest increase was on the 15GB Digital channels-only bundle previously sold at ₦2,000. It was adjusted to a 15GB PGW Weekly bundle and sold for ₦6,000 representing a 200% increase. An MTN Nigeria spokesperson told TechCabal that the bundles that had more than a 100% increase were heavily discounted previously to support a segment of subscribers for a specified period. MTN Nigeria dropped the price of internet calls by 14 kobo instead of the standard 24 kobo the market demanded. “What we have done now is to price the bundle properly since the period for the discounted price ended a long time ago. We then added the 50% tariff increase on the standard market price,” the spokesperson said. Out of the 18 internet plans listed on the document, 13 received less than a 40% increase. The biggest increase in this group is the 25GB monthly plan which was increased from ₦6,500 to ₦9,000.
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- February 12 2025
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TechCabal Daily – Swypt right for crypto
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Join the TechCabal community on TikTok! We’re bringing the conversation about African tech to a new level with exclusive content, behind-the-scenes glimpses, and more. Follow us @techcabal and let’s build the future of tech together. Meta’s termination of 3,600 employees affected African offices Swypt launches Kenya’s first currency-backed stablecoin MTN Nigeria, SWIFT, increase internet prices by 50% Chowdeck’s Ghana gambit World Wide Web 3 Events Companies Meta’s termination of 3,600 employees affected African offices Image Source: Google. Meta is back at it again with another round of layoffs—3,600 employees worldwide just got the corporate breakup text. This time, the axe swung across Africa, Asia, and parts of Europe, but somehow, Germany, France, Italy, and the Netherlands dodged the chopping block. For those affected, the bad news arrives between February 11 and 18, 2025—just in time to ruin any post-Valentine’s Day optimism. Meta insists this is all part of a routine performance review. Translation? If you weren’t making the algorithm gods happy, you’re out. On the bright side, ex-employees aren’t walking away empty-handed. They’ll get 16 weeks of base pay, extra cash for years of service, healthcare coverage, career support, and even immigration assistance—because nothing says “new beginnings” like getting laid off and relocating. Meanwhile, Meta is going all-in on AI, because robots don’t ask for raises. CEO Mark Zuckerberg has dubbed 2024 the “year of efficiency,” which is corporate-speak for “let’s cut costs and automate everything.” The company is pumping up to $65 billion into AI infrastructure, data centres, and specialised chips, following the tech industry’s golden rule: when in doubt, throw money at AI. So, while Meta sees these layoffs as necessary spring cleaning, thousands of former employees across Nigeria, Africa, and beyond are left wondering what’s next. Maybe the AI overlords will be hiring soon? Afincran Connect: A Fintech Mixer by Fincra Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections. Nairobi | 18:00 – 21:00 EAT Limited spots—RSVP now. Cryptocurrency Swypt launches cKES, Kenya’s first currency-backed stablecoin Image source: TechCabal/Timi Odueso Three things are becoming certain in 2025: death, taxes, and one African country launching a digital currency. Kenya will follow in that stead after Swypt, a DeFi exchange platform, launched the country’s first stablecoin, cKES (Celo Kenyan Shilling—because it was built on the Celo blockchain). Swypt joins a growing list of Web3 startups, including Valora, Pretium, Fonbnk, Hurupay, Payd, and Clixpesa, that have integrated the stablecoin. The cKES stablecoin is the brainchild of a community initiative within the Celo ecosystem, supported by the Celo Africa DAO and Mento Labs. Mento operates a decentralised stablecoin platform designed to build stable digital assets on the Celo blockchain. The organisation aims to create stablecoins for different markets, with cKES joining other stable assets like cUSD (Celo Dollar), cEUR (Celo Euro), cREAL (Celo Real), eXOF (CFA Franc), and PUSO (Philippines’ stablecoin)—all built on the Celo protocol. The choice of Celo as its foundation is strategic; as a layer-1 network, Celo is among the cheapest protocols for deploying decentralised applications (dApps). Since its launch in 2017, it has reached 268 transactions per second (TPS) per 100 blocks—the 17th highest globally—and processed over 20 million transactions by 2023, making it one of the builder-friendly networks for payments dApps. Backed 1:1 by the Kenyan Shilling, cKES launched in May 2024 but has struggled to gain traction, despite its potential in remittance and cross-border payments. However, its debut on more on-chain platforms like Swypt increases its chances of adoption. With more platforms stepping in, they could pool resources to scale distribution and invest in marketing efforts to drive wider adoption. The stablecoin’s slow integration into Kenya’s crypto ecosystem comes at a time when the government is working to regulate and tax digital assets. While cKES is not government-backed or officially recognised by regulators, its success—or failure—could shape Kenya’s stance on private-sector-led stablecoin initiatives. How Paystack protects your business from cyber fraud Discover Paystack’s many security features and best practices for fraud prevention. Learn more→ Telecoms MTN Nigeria, SWIFT, increase internet prices by 50% GIF Source: Tenor Nigerians woke up to the shock that the country’s largest telecoms operator, MTN Nigeria, has increased its internet prices by 50% three weeks after the tariff hike. In January, the Nigerian Communications Commission (NCC), the communications regulator, approved the hike following months of lobbying by telecoms which have been feeling the crunch of the naira devaluation, price inflation, and tough business environment. The 50% hike means that Nigerians will either have to increase their monthly data budgets or downgrade to lower internet plans. While this change was expected after the NCC approval, it still took people by surprise as MTN Nigeria issued no formal statement or notice that it would raise its prices. SWIFT Networks, another internet service provider (ISP), also increased internet prices by 50%. While MTN Nigeria has raised its internet prices, other telecoms Airtel and Globacom have not followed suit. Airtel has mentioned it will increase prices gradually to lessen the impact on Nigerians, while Globacom is likely to raise prices later this month. Their delay in raising prices, whether planned or not, puts them in a favourable position. Nigerians may consider flocking to these telecoms, buying data from them at lower prices—before they go up—ushering more active users, increasing revenue per user, and giving Airtel and Globacom an unexpected, momentous advantage. For instance, ₦20,000 ($13.31) gets you 75GB of data on MTN, but the same amount buys 138GB on Globacom presently. While Airtel and Globacom seem to have a temporary advantage in the market, it depends on how long they can hold out and avoid raising prices. It also depends on whether this lucky situation will attract more active customers for them. Otherwise, they too, will likely increase prices quicker than we can recite the alphabet. Expand with Cedar Money Expand your business globally with Cedar Money! Our
Read More- February 11 2025
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Meta’s ‘performance terminations’ affected Nigerian employees
Meta’s latest round of job cuts, which impacted 3,600 employees globally, has also affected staff in Nigeria and other African offices. Meta announced the terminations across its global workforce in an internal memo, with only employees in Germany, France, Italy, and the Netherlands exempted. Affected employees in Africa, Asia, and other parts of Europe will receive their termination notices between February 11 and 18, 2025. A Meta spokesperson for sub-Saharan Africa downplayed the cuts, stating they were part of the company’s routine performance-based layoffs. Meta declined to specify the number of affected African employees. “We have communicated transparently that, following our recent performance review cycle, we plan to exit our lowest-performing employees, the spokesperson told TechCabal. “We have the highest confidence in the fairness and robustness of our performance review process leading to these decisions, and impacted employees are being provided with generous severance packages.” The severance package for affected employees includes 16 weeks of base pay, plus an additional two weeks for each year of service. It also covers full payment for unused paid time off, six months of healthcare benefits, three months of career support, and immigration assistance. The terminations coincide with Meta’s intensified focus on artificial intelligence (AI), as the company shifts resources toward automation and greater efficiency. CEO Mark Zuckerberg has declared 2024 the “year of efficiency,” highlighting efforts to streamline operations and reduce costs in non-priority areas. Meta plans to allocate between $60 billion and $65 billion for capital expenditures in 2025, with a substantial portion directed toward AI infrastructure, data centers, and specialized chips to support advanced AI models. This reflects a broader industry trend, with major tech firms collectively planning over $300 billion in AI investments this year. The terminations primarily target employees who received low scores in performance reviews, with Meta tightening its internal efficiency standards. While the company frames this as a routine adjustment, affected employees in Nigeria, Africa, and beyond are now facing an uncertain future amid the tech industry’s rapid transformation.
Read More- February 11 2025
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Chowdeck chooses Ghana for international debut
Chowdeck, one of Nigeria’s leading food delivery startups, shared its plan to expand to other African countries at the 2024 edition of Moonshot. The company’s first international foray will be to Ghana, and it may launch there as soon as March, one person familiar with the matter told TechCabal. The four-year-old company, which claims to have reached one million users and ₦30 billion in transactions in 2024, aims to reach about 52 cities across Nigeria and internationally by year’s end, according to a person familiar with the business. “Chowdeck wants all of Africa,” said a person close to the business, who declined to be named as they are not authorised to speak for the company. CEO Femi Aluko has hinted at these pan-African ambitions, stating in a recent interview that the company’s vision is to become the dominant “super app” for ordering anything, anywhere in Africa. Starting with just 319 users in its first month (October 2021), Chowdeck has rapidly expanded within Nigeria. Beyond food delivery, the company has diversified to include retailers of essential items like pharmaceuticals, shopping mall goods, and market produce, and earned a reputation for quick delivery. Chowdeck, which has over 10,000 delivery riders, operates in major Nigerian cities like Lagos, Ibadan, Port Harcourt, and Abuja. In February, the company began operations in Owerri, Enugu and Kaduna. However, Lagos remains its biggest market. Ghana presents an opportunity to replicate Chowdeck’s Lagos success. While the specific launch city in Ghana remains undisclosed, the company will face a competitive landscape. Urban cities like Accra, Tema, and Kumasi already host established players like Uber Eats and Bolt Food. Ghana’s market dynamics are both promising and challenging. The country boasts a growing, tech-savvy urban youth population and a projected food delivery market of $540.1 million by 2029, with a 16.66% annual growth rate. However, Ghana has also seen the exit of other delivery services. Glovo, despite reporting strong early growth in Accra (reaching “half a million euros” in monthly order value and 30-45% month-on-month growth), exited Ghana in 2024 after investing nearly $3.7 million in the expansion. Jumia Food also shuttered its Ghana operations in early 2023 as part of a broader restructuring. Chowdeck did not respond to a request for comments. Reports suggest that high taxes, low wages, and high inflation present ongoing challenges to Ghana’s food delivery ecosystem. However, the country has remained attractive to established food delivery businesses like Uber Eats and Bolt Food from whom Chowdeck will face stiff competition when it launches.
Read More- February 11 2025
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MTN Nigeria, SWIFT increase internet prices as 50% tariff hike takes effect
MTN Nigeria has raised the prices of its internet plans to implement the 50% tariff increase approved by the Nigerian Communications Commission (NCC) in January. The revised prices now include a 1.8GB monthly plan for ₦1,500, replacing the previous 1.5GB plan priced at ₦1,000, according to an updated price list seen by TechCabal. The 20GB plan has been adjusted to ₦7,500, up from ₦5,500, while the 15GB plan now costs ₦6,500, a rise from ₦4,500. Larger bundles have seen more significant increases, with the 90-day 1.5TB plan jumping from ₦150,000 to ₦240,000, and the 600GB 90-day plan increasing from ₦75,000 to ₦120,000. “It’s not a 50% increase on every plan, but rather an across-the-board adjustment. Some plans remain unchanged to ensure we keep the grassroots connected. For instance, the 2.5GB daily plan at ₦600 has not been affected,” an MTN Nigeria executive who asked not to be named so he could speak freely told TechCabal. SWIFT Networks has also increased internet prices by 50% across board. Airtel and Globacom have yet to adjust their prices. However, a source at Airtel confirmed that the company had introduced a 25 kobo flat rate for all voice calls. Both Airtel and Globacom, along with other operators, are expected to implement the tariff hike later this month. According to a telecom industry source, the adjustments took effect on Monday afternoon, impacting data and voice plans. However, some daily plans have seen slight changes in validity. For example, a 2-day plan has been reduced to 1 day, while a 7-day plan is now valid for only 6 days. The NCC approved the 50% tariff hike on January 20, 2025, following years of negotiations with telecom operators, who argued that the existing tariffs were unsustainable and didn’t account for inflation and the devaluation of the Naira. The telecom sector had been the only industry with unchanged tariffs for 11 years despite inflation hitting record highs. *This is a developing story.
Read More- February 11 2025
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Raenest raises $11 million in Series A to expand cross-border payment solutions to new markets
Raenest, a Nigeria-based cross-border remittance company that offers multicurrency accounts for freelancers and businesses, has raised $11 million in a Series A funding round, bringing its total funding to $14.3 million. The round was led by QED Investors with participation from Norrsken22, alongside follow-on investments from Ventures Platform, P1 Ventures, and Seedstars. This follows a pre-seed round of $700,000 in 2022 and a seed round of $2.6 million in 2023. The company plans to use the new funds to expand its product offering and enter additional markets. Raenest currently operates in Kenya, Ghana, Tanzania, and Uganda, with plans to launch in Egypt and the U.S. It also aims to introduce new features, including expense management, savings, and investment tools. This funding round is part of the increasing momentum for African startups, particularly in fintech. In January 2025 alone, 40 African startups raised $289 million, a 240% increase from the previous year. Other notable fintech investments include Moniepoint, which secured $10 million from Visa, and LemFi, which raised $53 million. Launched in 2022, Raenest initially started as an Employer of Record (EOR) before pivoting to help businesses and freelancers receive international payments, convert currencies, and manage multi-currency wallets. Users can open global bank accounts, access physical and virtual dollar cards, and process payments in USD, EUR, and GBP. Through its consumer-focused product, Geegpay, Raenest allows freelancers, creators, and solopreneurs to receive payments from platforms like Upwork, Fiverr, and Gusto. The company claims to serve over 700,000 individual customers and has processed over $1 billion in payments to date. “Africa’s gig economy is growing at an impressive 20% year-on-year, yet cross-border payment challenges persist for workers and businesses alike. Our investment in Raenest reflects our belief that they are unlocking new opportunities by transforming how Africa’s global workforce connects to the world economy,” said Lexi Novitske, General Partner of Norrsken22. Raenest’s business banking service, launched in March 2024, has quickly emerged as an alternative for African startups seeking banking partners after Mercury, a San Francisco-based firm, pulled its services from the continent. According to CEO Alade, Raenest is profitable and serves approximately 300 businesses—including MoniePoint, Helium Health, Fez Delivery, and Matta—on its business banking platform, processing over $100 million in transactions since its launch. Raenest competes in Africa’s increasingly competitive cross-border remittance space, alongside companies like Cleva, Grey Finance, and LemFi. However, its dual B2B and B2C model sets it apart, positioning the company to serve both African businesses and individuals receiving payments from abroad. As the company grows, it plans to expand its reach to serve Africans in the diaspora as well. “Other startups serve Africans in the diaspora. However, Raenest launched to serve Africans living in Africa, helping them receive money from abroad.” Despite this focus, the business plans to expand its reach to Africans in the diaspora. “The mission is to become a trusted financial platform that makes it easier for people to manage their funds globally,” Alade told TechCabal.
Read More- February 11 2025
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Fincra appoints former Bundle CEO Emmanuel Babalola as chief commercial officer
Fincra, a B2B startup that provides payment infrastructure that enables remittance companies to process cross-border transactions, has appointed Emmanuel Babalola as its new chief commercial and growth officer. The appointment comes as Fincra undergoes a strategic change to its business. Babalola was CEO of Bundle, a social payments app for cash and cryptocurrency, which shut down its exchange services in July 2023 to focus on Cashlink, its peer-to-peer platform. He was also the Director for Africa at Binance, the world’s largest crypto exchange. “His track record of scaling platforms, driving innovation, and advocating for financial inclusion aligns perfectly with our mission to build seamless payment rails for Africa,” said Fincra’s CEO Wole Ayodele. “His leadership will be instrumental as we continue to push boundaries and redefine payments across the continent.” Founded in 2021, Fincra’s APIs allow fintechs to build and scale cross-border payment solutions. The company has processed over $10 billion in transactions since 2023, serving clients like Lemfi, OneLiquidity, and Cleva. Fincra also offers an API that helps Nigerian businesses with local payment collection, either through bank transfers or card transfers. It operates in Ghana, South Africa Kenya, Uganda, the United Kingdom, Europe, and North America with plans to expand into the Francophone region. “Africa’s financial ecosystem is evolving rapidly, and Fincra is at the forefront of building the payment infrastructure powering the next generation of businesses and entrepreneurs,” Babalola said on his appointment. “My mission has always been to enable freedom and prosperity for Africa through technology, and joining Fincra is an exciting opportunity to amplify this vision.”
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- February 11 2025
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Next Wave: Unlocking alternative funding streams for African startups
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 09 Feb, 2025 Venture Capital (VC) has long been hailed as the best funding model for high-growth startups. However, it is challenging for most African founders to secure funding. In 2024, African startups raised $3.2 billion across over 182 equity and debt funding deals. Most of these funds went to a few tech-heavy startups in key markets like Kenya, Nigeria, South Africa, and Egypt, leaving many promising businesses unfunded. In a world where VC funding is often seen as the only ticket to success, what if African startups can scale without it? The limits of VC cheques in Africa Asset-light and high-growth sectors like e-commerce and fintech favour traditional VC models, which rely on high valuations and potentially quick exits through acquisitions or IPOs. Between 2019 and 2023, fintechs and e-commerce companies accounted for 75% of total funding to African founders. Despite increasing interest from Africa-focused VCs in essential sectors like agritech and health tech, these sectors often clash with investors’ demand for rapid growth and fast exits. Additionally, systemic and cultural factors make VC funding inaccessible to many African founders. In countries like Kenya, investors favour expatriate-owned startups or those founded by Western-educated Kenyans, while local entrepreneurs without patronage struggle. The emphasis on tech-driven scalability has further sidelined businesses supporting most African economies, such as agriculture, manufacturing, logistics, and local commerce. VC firms often target exits within five to seven years, a model likely incompatible with the realities of African markets. While some venture-backed startups achieve an exit in as little as 2 years, most take about six years with five funding rounds to get to an Initial Public Offering (IPO). Unlike the US or Europe, which have more homogeneous markets, the 54 African countries have fragmented markets with different regulations and dysfunctional regional economic blocs like EAC, ECOWAs, and SADC. This fragmentation makes scaling across borders a bureaucratic nightmare and expensive, making startups less attractive to VCs that may be looking for quick expansion. The widespread low-income levels in most African countries mean lower spending, loosely translating to lower profit margins for local businesses. This makes growth difficult for startups that target mass-market consumers. Around 35% of the over 1.4 billion people in Africa live below $1.90 per day, the global extreme poverty line. Partner Content: Read: [Raenest Returns as Headline Partner for Africa Tech Summit Nairobi 2025, Championing Global Growth for African Tech] here. Another problem facing African founders is insufficient local investor networks. The continent’s VC landscape has relatively few local investors. Since most VCs investing in Africa are foreign, a disconnect exists between the operational realities of the regional economies and investors’ expectations–though some of them understand the continent. Given these challenges, African founders should explore alternative funding, considering the continent’s realities. From revenue-based financing to grants from development agencies, these approaches could be the key to Africa’s startup ecosystem, overcoming sometimes unrealistic expectations from VCs. These alternative approaches prioritise sustainability, allowing the founders to scale businesses at a pace that matches market realities. Thriving without VC backing Contrary to the growing belief that startups cannot scale without VC funding, companies like Kenya’s BitPesa (now AZA Finance) and Pesapal have proven otherwise. Pesapal, a payments service provider, has built its business through strategic partnerships with banks and mobile money platforms, focusing on sustainable revenue growth instead of external funding. In an industry where VC-backed fintechs have struggled to crack the market, Pesapal has registered steady growth by prioritising cash flow and profitability. Some well-funded VC-backed competitors and fintechs burned through cash, expanding in multiple markets to meet investors’ expectations—some, like Lidya and KopoKopo, eventually pivoted or downsized, abandoning unsustainable cost structures. Conversely, BitPesa adopted an organic expansion, leveraging partnerships with established brands instead of burning investor cash. The approach allowed the company to prioritise long-term profitability over short-term high valuations. In multiple media interviews, Agosta Liko, Pesapal co-founder, claimed the company is profitable without revealing details. The company has over 30,000 POS machines in Kenya, with commercial banks following. According to the Central Bank of Kenya (CBK), there are 56,000 POS, meaning Pesapal controls over half of the market. Today, Pesapal processes over a million transactions daily across Kenya, Uganda, Tanzania, Rwanda and Zambia. In its early years, Cellulant relied on grants and corporate partnerships before eventually securing institutional investment. These two examples show that African startups can explore alternative funding models like bootstrapping, strategic alliances, grants, and revenue-based financing, which supports long-term growth without the pressure that comes with VC funding. Instead of giving up equity, founders can raise capital pegged on their revenues. While revenue-based financing (RBF) is still uncharted territory for most African entrepreneurs, it can be a favourable model, especially in industries with steady income streams. Under this model, investors receive a share of revenues until the agreed amount as a multiple of principal investment–usually three to five times. South Africa’s Linea Capital has started giving startups funding through this model, promising a non-dilutive, collateral-light funding structure compared to the VC option. By linking repayments to a company’s revenue growth instead of fixed schedules, like in the case of loans, RBF allows founders to scale sustainably. Partner Content: Read: [Flutterwave, Yellow Card, OmniRetail named finalists for inaugural Africa Tech Summit Awards] here. Ethiopia’s Cooperative Bank of Oromia is piloting RBF for small businesses with cheques of up to $1,700. In a market with limited foreign investment and strict collateral requirements for bank loans, Cooperative Bank’s experiment could help entrepreneurs raise capital that fits their needs. Its success suggests that RBF could be among the alternatives African founders can ride on to fund their ventures. Companies like Kenya’s Little
Read More- February 11 2025
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Swypt launches Kenya’s first decentralised stablecoin as crypto regulations tighten
Swypt, a decentralized finance platform, has integrated cKES, Kenya’s first decentralized stablecoin on Mento, a separate decentralized platform, pegged 1:1 to the Kenyan shilling. This move reflects a growing trend in Kenya’s fintech landscape, where stablecoins are seen as an alternative to traditional mobile money and banking systems. However, the country’s evolving regulatory frameworks may influence the platform’s growth. Founded in May 2023 by Davis Thoyah, Swypt seeks to address inefficiencies in peer-to-peer (P2P) crypto trading. The platform debuted at ETHSafari 2023 and officially launched in June 2024. It offers a suite of payment solutions, including stablecoin transactions and SME payments, to enhance accessibility and efficiency in the digital payments ecosystem. Swypt’s integration of cKES allows users to make cross-border transactions, addressing the need for faster and more affordable payment options in a growing crypto-savvy market. However, regulatory changes in Kenya could pose challenges. The National Treasury’s Virtual Asset Service Providers Bill (2025) proposes that cryptocurrency firms establish local offices in Kenya and appoint executives subject to regulatory approval. If passed, this bill would allow the government to license and regulate crypto service providers within the country, potentially creating new operational hurdles for companies like Swypt. In addition, the Finance Act of 2023 introduced a 3% tax on income generated from the sale of digital assets, including cryptocurrencies and non-fungible tokens (NFTs). This tax policy indicates the Kenyan government’s intent to incorporate digital assets into its formal tax framework, signaling both an opportunity for revenue generation and potential friction with users who may face higher transaction costs. Under the proposed Virtual Asset Service Providers Bill, the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) would jointly regulate the crypto sector. The CBK would oversee service providers offering payment and currency-related solutions, while the CMA would regulate entities involved in crypto trading, exchanges, and initial public offerings of virtual assets. These regulations could legitimize the industry but also create new compliance burdens for decentralized platforms like Swypt. While these developments suggest both opportunities and challenges for Swypt, the company will need to carefully navigate the regulatory landscape. Adhering to local office requirements and executive vetting could enhance operational transparency, but it could also increase administrative costs. Furthermore, the 3% digital asset tax could impact user adoption, particularly if it raises the cost of transactions or limits the appeal of crypto-based solutions to price-sensitive users. For now, Swypt offers an alternative payment rail for SMEs, gig workers, and cross-border traders. Its success will rely on navigating the evolving regulatory landscape, achieving merchant adoption, and convincing Kenyan users of cKES’s viability as an alternative to traditional mobile money services.
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- February 11 2025
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TechCabal Daily – CAR launches a meme coin
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Let’s dive in. Why NIBSS picked QR codes as the future of small-value payments Smartphone manufacturers to pay $1,967 in licence fees in Kenya Central African Republic launches meme coin, $CAR World Wide Web 3 Events Fintech Why NIBSS picked QR codes as the future of small-value payments Image Source: Google. No matter the governor at the helm, Nigeria’s central bank loves the idea of a cashless country. The idea has flowed down to almost all financial institutions, including the Nigerian Inter-Bank Settlement System (NIBSS), the country’s payments switch. Now, NIBSS wants everyone to think of QR codes when paying for low-value in-person transactions. But, replacing cash is hard—the alternative must offer instant settlement, security, affordability, and easy reversals. NIBSS believes QR codes meet these criteria: transactions are instant, stickers are cheap to print, and they are secure. Last week, Premier Owoh, NIBSS CEO, told our fintech reporter, Muktar Oladunmade, that the Lagos State government integrated the Nigeria Quick Response (NQR) into its ERP software and in its first week, over 750,000 bills were paid with QR codes. Engineers at NIBSS say they have reduced the latency by eliminating separate fee queries and improved the security of QR code payments with stronger authentication measures. Users can only make QR code payments from their banking app, adding an extra layer of security. The banks are also on the same page with NIBSS. Shamsudeen, a product manager at UBA, was excited to show our reporter how QR code payments work from the bank app. He logged in, selected NIBSS QR on the homepage, scanned a Providus Bank QR code, sent ₦10 ($0.0067), and received a printed receipt. Sterling Bank employees displayed a separate app for QR codes marketed at merchants. In his article, Muktar Oladunmade argues that the success of QR payments will depend on how efficiently merchants can accept payments safer, faster, and more transparently with QR codes. That way, word-of-mouth marketing will allow QR codes to become ubiquitous. After all, fintechs became widely accepted after they shone during 2023’s cash scarcity. May the superior product win. Afincran Connect: A Fintech Mixer by Fincra Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections. Nairobi | 18:00 – 21:00 EAT Limited spots—RSVP now. Economy Smartphone manufacturers to pay $1,967 in licence fees in Kenya Communication Authority of Kenya Director General David Mugonyi. IMAGE | CA Kenya has introduced a new rule requiring foreign smartphone and car-tracking device companies to pay a $1,937 licence fee to keep selling their products there. A licence will certify these phone-makers and distributors of their products as authentic. Foreign original equipment manufacturers (OEMs) like Samsung and Transsion (Tecno and Infinix smartphones), which are the most-used smartphone brands in the country will have to pay $1,937 for a 15-year operating licence, plus 0.4% of their Kenyan yearly sales to the government. While the government argues that this will stop fake products from entering the market, it conveniently excludes local smartphone manufacturers and distributors from the licensing rule. Kenya may not be an important market for large global smartphone makers like Samsung—compared to the Big 3; South Africa, Egypt, and Nigeria, which receive the largest imports—but the licence fee is small and likely won’t stop them from doing business in Kenya. On the other hand, smaller foreign companies might struggle to afford the fee, reducing the number of affordable phones available in the informal market. Unknown brands control about 9.5% of the Kenyan smartphone market—likely smaller foreign smartphone makers and untried brands trying to establish a market in Kenya. Kenyans buy them because they are cheaper than high-end Samsung phones. Seeing reduced participation from these untested brands, distributors will focus on the bigger brands, paying the licence fee to become verified vendors. Hence, this will likely cause them to raise prices to cover the cost, making phones more expensive for Kenyans already dealing with high living costs. Kenya isn’t the first African country to try this. Egypt recently introduced similar taxes on foreign phone companies that don’t manufacture locally. However, for Kenya’s new rule to work, the government will need to enforce it strictly. If they don’t, fake phones might keep flooding the market. In the end, it’s a balancing act: the move could help improve the quality of phones in Kenya (by taxing name brands to show proof of work) and empower local participation. While it’s a win for a country in search of more ways to widen its tax net without suffering another public drama, it is the end consumer who inadvertently bears the brunt…again. How Paystack protects your business from cyber fraud Discover Paystack’s many security features and best practices for fraud prevention. Learn more→ Cryptocurrency Central African Republic launches meme coin, $CAR Image Source: TechCabal The Central African Republic (CAR)—the first and only African country to accept bitcoin as legal tender, has thrown itself deeper into its crypto experiment with the launch of $CAR, a meme coin that puts the country at the centre of a digital currency spectacle. President Faustin-Archange Touadéra launched the token on X (formerly Twitter), calling it an “experiment” in national identity, economic potential, and internet culture. The government is doubling down on digital assets—this time, with a cryptocurrency that trades as much on hype as on substance. Presently, $CAR appears to be trading on neither hype nor substance. The meme coin has failed to garner any interest from meme coin traders—or its own citizens—with the coin dumping fast. At 19.40 (WAT) on Monday, about 23,559 traders had bought the coin, with 20,330 selling. In the last 24 hours, the coin price dipped by over 90%, shedding off more than nine-tenths of its market cap. The rollout of $CAR also hasn’t been seamless. A dedicated X account for $CAR was suspended almost immediately, forcing the government into damage control. CAR may be a crypto-friendly nation,
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