- February 10 2025
- BM
Breaking: KCB lowers lending rate to 14.6% amid CBK crackdown on non-compliant banks
Kenya Commercial Bank (KCB), Kenya’s largest bank with an asset base of KES 1.4 trillion ($10.8 billion), has lowered its lending rate from 15.6% to 14.6%, effective February 10, 2025. This move follows mounting pressure from the Central Bank of Kenya (CBK) asking commercial banks to cut lending rates in response to reductions in the benchmark rate. “The final lending rate is based on a customer-specific margin, adjusted to the base rate, in line with the approved Risk-Based Credit Pricing Model,” KCB said in a statement seen by TechCabal. “This applies to all existing and new KShs-denominated facilities and excludes fixed-rate credit facilities.” The CBK has taken an aggressive stance against lenders who are reluctant to pass on the benefits of lower borrowing costs to customers. On February 5, Governor Kamau Thugge said the regulator has begun physical inspections of banks to enforce compliance. The CBK has also invoked penalties under the Banking Act and will impose daily fines and hefty financial penalties on banks that fail to reduce rates. During the February 5th monetary policy meeting, the regulator cut the cut the benchmark lending rate to 10.75% from 11.25% and cut the cash reserve ratio to 3.25% from 4.25%, releasing KES 73.7 billion ($570 million) into the economy. However, banks had been slow to respond, citing higher fixed deposit costs as a constraint. With borrowers struggling under expensive credit, the CBK’s intervention aims to stimulate lending, support economic recovery, and improve access to affordable credit. Lower rates could also help banks manage rising non-performing loans, which have begun to decline in key sectors like trade, real estate, and manufacturing. KCB’s decision to lower its rates aligns with this objective, signalling a potential trend among other lenders to follow suit. The development arrives as private sector credit hit a 22-year low in December 2024, a contraction blamed on costly loans.
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- February 10 2025
- BM
The People with Power at Nigeria’s Central Bank
When you think of Nigeria’s Central Bank (CBN), Governor Olayemi Cardoso comes to mind. Since taking office in September 2023, he has led the CBN’s return to orthodox monetary policy, devaluing the naira and increasing interest rates to tame quickening inflation. While the buck stops at his table, supporting Cardoso are four deputy governors and a cadre of directors who oversee crucial departments at the CBN. Appointed on the same day as Cardoso, the four deputy governors report directly to him. Dr. Bala M. Bello heads the Operations Directorate, ensuring the smooth execution of the CBN’s banking functions and financial transactions. Mr. Muhammad Sani Abdullahi leads the Economic Policy Directorate, formulating monetary policies that influence inflation, exchange rates, and economic stability. Mr. Philip Ikeazor oversees the Financial System Stability Directorate, while Ms. Emem Usoro directs the Corporate Services Directorate. Beneath the deputy governors, a group of directors runs the CBN’s vast operational structure. Their work ensures policy execution, risk management, and the bank’s overall effectiveness. Since May 2024, the CBN has undergone a restructuring of its key teams and operations affecting over 1,000 employees and over 16 directors. This list outlines the current directors, deputy directors, and assistant directors across key departments within the CBN. Dr. Blaise Ijebor, as Director of Risk Management, identifies and mitigates financial threats, including cybersecurity risks. Lydia I. Alfa, Director of Internal Audit, ensures the integrity of the CBN’s financial and operational processes. Rashida Jumoke Monguno, Director of the Corporate Secretariat, facilitates high-level decision-making within the institution. Jimoh Musa Itopa heads the Payments System Management Department (PSMD), a crucial department responsible for licensing payment switching companies, regulating agent banks, and overseeing cashless policies and open banking initiatives. He was recently reinstated from the Capacity Development Department, a unit responsible for training CBN staff. Muhammad Abba, Director of Human Resources, is responsible for shaping the bank’s workforce, while Rabiu Musa, Director of Finance, oversees the financial accountability of the institution. Sirajuddin Kofo Salam-Alada, Director of Legal Services, ensures compliance with all relevant financial regulations. Aderinola Shonekan, Director of Research, provides data-driven insights that inform the development of monetary policies. Dr. Omolara Duke, Director of Financial Markets, manages the dynamics of Nigeria’s capital and money markets. Adetona Adedeji, Acting Director of Banking Supervision, plays a key role in regulating Nigeria’s commercial banks. Mr. Saad Hamidu, Director of Development Finance, drives financial inclusion and economic development programs. Philip Ndanusa Wondi, Assistant Director and Coordinator for the Governors, facilitates executive operations, while Dr. Adenike Olubunmi Ojumu is the Deputy Director of Medical Services. Mr. Ibrahim Umar Hassan is Assistant Director and Head of Strategy Management at Financial System Strategy. Sidi Hakama, Acting Director of Corporate Communications, manages the bank’s media relations and communications. Yakubu Bello, Deputy Director of Statistics, provides economic data. Ladi Raulatu Bala-Keffi, Acting Director of Monetary Policy, influences key interest rate decisions. Hamisu Abdullahi, Director of Banking Services, ensures seamless banking operations. Mohammed-Jamiu Solaja Olayemi, Acting Director of Currency Operations, manages currency circulation. Aisha Isa-Olatinwo, Acting Director of Branch Operations, oversees regional banking infrastructure, while Mujtaba Muhammed Farouk is the Director of Reserve Management.
Read More- February 10 2025
- BM
NIBSS bets on QR codes as a cash alternative for small-value payments
The Nigeria Inter-Bank Settlement System (NIBSS), the country’s largest payment switch, is betting on QR codes as a cash alternative for small-value transactions after improving its Nigeria Quick Response (NQR) payment platform. At a press conference on Thursday, NIBSS engineers said they have improved the speed of QR code payments by eliminating separate fee queries and enhanced security with stronger authentication measures. NIBSS has also partnered with the Lagos State government to use QR codes to accept bill payments as a viability test. Premier Oiwoh, NIBSS CEO, told journalists that at least 750,000 bills in Lagos were paid with QR codes in the first week of deployment. The payment switch has also developed a USSD product for feature phones. QR codes closely replicate cash transactions—they are inexpensive to set up, fast, and allow instant reversals. Users can only make QR code payments by scanning with their bank app, adding an extra layer of security. Global QR code payment transactions are expected to grow by 50% over the next four years, reaching $8 trillion by 2029, according to a study from Juniper Research. The switch has partnered with banks like Sterling, UBA, and Providus, to increase QR code adoption. First Bank has integrated QR payments into the homepage of the First Mobile App, the bank’s app, a move that has increased QR code transactions, according to a bank representative. “We saw a spike in usage the moment we placed NQR on the landing page,” a First Bank representative told TechCabal. “It’s an example of how thoughtful user interface decisions can supercharge adoption.” Sterling Bank has developed a self-onboarding app for merchants that allows them to accept QR code payments. Merchants can download the app, register, instantly generate QR codes and print stickers, a model similar to Alipay’s early expansion strategy in China, where QR codes spread through small shops and street vendors. For many merchants, confirming successful transactions is a key issue with digital payments. Fintechs like OPay, PalmPay, and Moniepoint acquired millions of customers during the 2023 cash crunch by providing reliable transaction confirmations, while commercial banks struggled. To address this problem, Providus Bank has introduced receipt printing for QR transactions, while NIBSS is developing the NQR Soundbox, a device that provides audio notifications for successful payments. Soundboxes have successfully driven digital adoption among India’s mom-and-pop shops. Paytm, an Indian fintech, generated $150 million in the third quarter of 2023 alone from sound box subscriptions, with 6.8 million devices deployed. In a demonstration seen by TechCabal, the NQR soundbox was loud enough to cover a 50-meter distance and could announce transactions in English. The soundbox can also store past transaction logs, allowing merchants to reconcile payments by the close of business. The success of QR payments will depend on how efficiently merchants can accept payments safer, faster, and more transparently. This could create a network effect that would champion NQR in a way that top-down marketing alone cannot achieve. Quidax’s website briefly crashes after BBN QR Code advert Kenya boosts payments interoperability with state-backed QR codes
Read More- February 10 2025
- BM
Bento Africa “temporarily” halts operations after rehiring staff to handle backlog
Bento Africa, the Nigerian HR technology startup facing allegations of tax and pension irregularities, has temporarily shut down operations. The decision follows the resignation of founder and CEO Ebun Okubanjo and the layoff of the engineering team after a protest over unpaid January salaries. “We will proceed to temporarily shut down operations to bring stability back to the company,” the company’s board wrote in an email seen by TechCabal. “In view of this, it is important for our clients to refrain from funding their payroll positions during this period. We are confident of the restoration of normalcy soon.” Bento laid off its 10-person tech team in January after employees refused to work until they received their January salaries. Despite resigning on January 30, Okubanjo told employees on January 31 that salaries would be “strategically delayed” to prioritise processing client payroll, according to Google Chat messages reviewed by TechCabal. Bento employees collectively agreed to halt operations until paid, citing financial hardship, Bento Africa under investigation by LIRS and EFCC; CEO Okubanjo denies allegations The January layoffs effectively crippled Bento’s operations, particularly payroll processing for its clients. At least three clients shared on social media that Bento had not processed payroll for their employees in the first week of February. The company, which had automated salary disbursements, has been manually processing payments since 2024 due to problems with payment processors and reconciling underfunded accounts. In an email to customers, Bento said it has paid staff their January salaries, and “reactivated key staff to aid in bringing core functionality back online to clear outstanding payroll obligations triggered by our clients.” However, it is still facing problems disbursing payments for some of its customers. The company plans to refund clients for whom it cannot disburse salaries before the close of business on Tuesday. The difficulty in payroll processing, abrupt CEO resignation, and allegations of financial discrepancies, including failure to remit tax and pension payments, makes the company’s future uncertain. But in its email to customers, Bento’s board said it is “confident of the restoration of normalcy soon.”
Read More- February 10 2025
- BM
Kenya’s $1,900 licensing fee for phone distributors threatens small vendors
Small vendors who have long provided affordable phones and car trackers to Kenya’s price-sensitive market are now at risk of being priced out by new government regulations—posing a significant threat to their survival. The Communications Authority (CA) of Kenya has proposed new licensing requirements for phone and car tracker vendors and distributors, which could impact small businesses already struggling under high taxation and low consumer purchasing power. Under the new rules, only licensed manufacturers and distributors will be allowed to import and sell mobile phones, car trackers, and other low-power communication devices. To obtain a license, distributors must pay a one-time fee of $1,937 (KES250,000), valid for 15 years and an annual charge of 0.4% of gross turnover. This move aims to curb the influx of substandard devices and ensure compliance with local standards. CA claims the unchecked distribution network has raised concerns over consumer safety, e-waste, and network security. If approved, manufacturers like Apple and Samsung will need a license to sell their devices in Kenya. Third-party distributors and retailers will also be mandated to pay for the license. However, the CA will exempt local phone manufacturers, but they will be required to sell only to licensed distributors. The proposal raises concerns that it will edge out small vendors who rely on low-cost, informal trading. With Kenya’s economy heavily reliant on affordable phones and tech gadgets, many informal traders currently source their products from unregulated suppliers at cheaper prices. This flexibility has allowed them to cater to the country’s price-sensitive market. “People who bring in fake phones will still find a way. That’s the challenge I’m foreseeing,” said Monica Macharia, a retailer who sells affordable smartphones in Nairobi. “Already the cost of doing business is high. If the enforcement is weak, the black market will thrive at the expense of licensed shops.” The CA argues that the new rules will protect consumers and improve the quality of devices in the market by addressing consumer safety, e-waste, and network security issues. Currently, the influx of counterfeit phones has raised concerns about the quality and security of devices circulating in Kenya. The CA claims that informal vendors often sell substandard devices that do not comply with the requirement for a unique International Mobile Equipment Identity (IMEI), which could pose a security risk. Yet, many small business owners argue that the new regulations will force them to raise prices, making it more difficult for consumers to access affordable phones. “We are solving a problem that I don’t think exists,” said Godwin Okoyo, an electronics retailer. “Most of our shops have genuine phones that meet the needs of different categories of customers.” For vendors, the cost of compliance will be significant. In addition to the $1,937 one-time fee, many vendors fear requiring them to buy from licensed distributors will increase device prices. Currently, small vendors can source phones from various unregulated suppliers at lower costs, which helps them compete in Kenya’s price-sensitive market. This move could drastically reduce competition and limit access to affordable gadgets for the general population. Kenya has a long history of struggling to enforce industry standards. As a result, many small vendors are concerned that the new regulations will not be adequately enforced, which could lead to the continued proliferation of substandard devices in the informal market.
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- February 10 2025
- BM
TechCabal Daily – Will you buy the cNGN?
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning We’re still receiving applications for features. We’re seeking deeply reported features on innovative startups, the business of tech, policymaking around innovation, and the intersection of culture and technology all across Africa. Send a pitch to kay@bigcabal.com. For more on what to include in your pitch, please check out our pitch guide. cNGN, Nigeria’s first Naira-backed stablecoin goes live Fidelity Bank raises $154.8 million CBN Postpones MPC Meeting World Wide Web 3 Events Cryptocurrency cNGN, Nigeria’s first Naira-backed stablecoin goes live Image Source: Wunmi Eunice/TechCabal. Will you buy the cNGN? The cNGN, Nigeria’s first Naira-backed stablecoin, has many use cases. The most obvious and important one is that it provides a low-cost way for remittances and cross-border transfers. Recently, there’s been a lot of hype around stablecoins, and Nigeria is one of the countries leading the charge. The launch of cNGN appears well-timed. Interest in cryptocurrency and stablecoins is growing in Nigeria, though current trading volume is primarily driven by a small group of knowledgeable traders and businesses seeking protection against foreign exchange shortages. This raises questions about adoption by average Nigerians lacking the same level of knowledge or trust in digital currencies. Factors like high inflation, currency instability, and general trust issues could hinder wider acceptance. Yet, the cNGN is an exciting prospect. Developed by the African Stablecoin Consortium (ASC)—a group of fintechs, banks, and blockchain companies—cNGN is pegged 1:1 to the Naira. Unlike the government-backed eNaira, this private-sector stablecoin aims to make the Naira more competitive in the digital asset economy, especially against popular USD-pegged stablecoins like USDT and USDC. For Nigerians, cNGN could be a game-changer. It offers cheaper transfer fees compared to USDT on Ethereum, which is a big deal for a country where remittances are a major part of the economy. Once the Naira-backed stablecoin is fully integrated on all blockchain networks, and completes rollout, it is expected to start trading on-chain. On-chain trading will open up the cNGN to list on more platforms and exchanges, giving it more use cases for Nigerians to benefit from the compliant stablecoin. For example, once Nigeria’s Securities and Exchange Commission (SEC) issues more provisional licences as part of its Accelerated Regulatory Incubation Programme (ARIP), it will empower more local and foreign exchanges to list the stablecoin. For now, it’s only available on Busha, though exchanges like Quidax might list it soon. The cNGN launch is a big step for Nigeria’s crypto space, and if it sees more utility, it could change how Nigerians move money digitally—the compliant way. 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. Banking Fidelity Bank raises $154.8 million Image source: Google Fidelity Bank, a tier-2 Nigerian commercial bank with ₦6.23 trillion ($4.2 billion) in total assets, has recorded a 237.92% subscription for its recently concluded public offer, making it the fourth bank to complete a public capital raise after tier-1 banks, Access Bank, GTBank, and Zenith Bank. Following the Central Bank of Nigeria’s (CBN) announcement in March 2024 for a new recapitalisation rule for international, national, and regional banks, Fidelity Bank was the first bank to begin raising funds; it listed its share and rights offer on the Nigerian Exchange (NGX) in July 2024. The bank initially offered 10 billion ordinary shares at ₦9.75 ($0.0065) per share but received applications for 23.79 billion shares, amounting to ₦231.97 billion ($154.8 million). Following CBN’s verification, 107,588 applications were deemed valid, and Fidelity absorbed an additional 5 billion shares beyond its initial offer. Additionally, its rights issue of 3.2 billion shares at ₦9.25 per share recorded a 137.73% subscription, with all valid applications fully allotted. Shares will be credited to investors’ central securities clearing system (CSCS) accounts by February 13, 2025, while refunds for surplus applications will follow. This will allow the investors to start receiving dividends on their investments. Those who subscribed successfully can track their allotments and prepare for potential gains, while others may consider the secondary market for opportunities. As a national bank, Fidelity has reached the required ₦200 billion ($133.4 billion) capital base that was set by the CBN in 2024. The capital raise also shows strong investor confidence in the bank and its future. Additionally, the oversubscription reflects growing investor interest in the banking sector, which could shape further capital raises by other tier-2 and smaller banks. More broadly, the successful public offerings of Nigerian banks in the capital market send a strong message that the market remains a viable and effective avenue for raising capital. With the CBN’s recapitalisation deadline approaching, Fidelity’s success sets a precedent for how smaller banks can still find success on the capital market. Presently, Stanbic IBTC, another tier-2 lender, is raising money through a rights issue. Investors and industry watchers alike will be looking at how other banks respond in the coming months. How Paystack protects your business from cyber fraud Discover Paystack’s many security features and best practices for fraud prevention. Learn more→ Economy CBN Postpones MPC Meeting Image Source: CBN The Central Bank of Nigeria (CBN) has once again postponed its Monetary Policy Committee (MPC) meeting. Originally scheduled for February 17–18, the meeting has been delayed due to the unavailability of updated inflation data. Earlier this year, Nigeria revised its methodology for calculating the consumer price index (CPI) and gross domestic product (GDP). The National Bureau of Statistics (NBS)—which tracks inflation by monitoring the price changes of 740 goods and services in the CPI basket—expanded the basket to include additional items, with 2024 designated as the new benchmark year. According to the NBS, the updates were implemented to better reflect current consumption patterns. This marks the second postponement of the MPC’s first meeting in 2025. Initially set for January 27–28, the meeting was rescheduled to February 17–18 following the CPI rebasing. Analysts
Read More- February 8 2025
- BM
Nigerian crypto startup Busha lists cNGN, a consortium-led Naira stablecoin, plans rollout in phases
Busha, a Nigerian cryptocurrency exchange that secured a provisional licence from the country’s Securities and Exchange Commission (SEC) in August 2024, has listed the compliant NGN (cNGN) on its platform. This marks the introduction of Nigeria’s first private consortium-backed stablecoin, pegged 1:1 to the Naira. On February 3, Busha announced the stablecoin listing. Users can buy cNGN and sell it back to the platform, as Busha controls its own liquidity. However, users cannot send it to third-party wallets or decentralised exchanges yet, limiting its use cases since the stablecoin is still in the early stages of its rollout. “We are excited to announce that cNGN (Compliant Nigerian Naira), the private-sector stablecoin poised to transform Nigeria’s digital economy, is now available on Busha,” the startup posted on the social media platform, X. While the cNGN is not a government-led project, like the eNaira, which the Central Bank of Nigeria (CBN) launched in 2021, the stablecoin still owes its existence to the SEC, a government Commission which has been clear on its intention to regulate the Nigerian crypto sector. The SEC approved the stablecoin initiative as part of its sandbox Regulatory Incubatory (RI) programme in August 2024, granting an entity called “Wrapped CBDC Ltd,” an approval in principle. The Wrapped CBDC is a 2023-registered Nigerian business credited as a joint venture—along with Convexity—pushing the cNGN. The SEC did not immediately respond to a request for comment. The private consortium leading the cNGN stablecoin push includes banks, fintechs, and other blockchain advocacy and tech consulting firms like Convexity, Alpha Geek Technologies, Digital Currency Coalition, and Interstellar, all coming together under the African Stablecoin Consortium (ASC). Although the stablecoin launched in 2025, the discussions around creating a stablecoin started three years ago for the sole purpose of giving the Naira a fighting chance against widely traded USD-pegged stablecoins like Tether ($USDT) and USD coin ($USDC). With wider adoption and wide usage among users, the cNGN would increase the demand for the local currency, helping it gain value in the forex market. The stablecoin is built on the Bantu blockchain—a layer-1 network—and designed to operate across multiple protocols, including Binance Smart Chain, Base, Ethereum, Polygon, and Assetchain, according to Adedeji Owonibi, founder of Convexity. The stablecoin is currently only fully integrated on Binance Smart Chain (BEP-20) and Base, a builder-friendly layer-2 blockchain. This allows users to transfer cNGN between wallets on the Base network. However, since the stablecoin is only accessible on Busha and not trading on-chain, this hinders widespread adoption. Since its conception, the cNGN project has faced several challenges, marked by repeated delays in its launch, stalled partnership negotiations, and the need to align with SEC regulations to ensure progress with the coin rollout. In a January 8 press release, the ASC postponed the cNGN launch indefinitely, citing that it was “engaging with the appropriate regulatory bodies.” Due to that press release, it was surprising to see the stablecoin launch only a few weeks later. The ASC did not immediately respond to a request for comment. Several Convexity staff members with direct involvement in the cNGN project declined to comment. While Nigerians can now purchase cNGN on Busha, Quidax, another crypto startup which secured a provisional licence in August 2024, has yet to list the stablecoin on its platform. Quidax declined to comment. Busha, on the other hand, claims that it listed the cNGN on its trading platform due to the compliant nature of the stablecoin—as part of the RI programme created by the SEC. “The SEC made it clear that digital asset issuers and exchanges must operate within a structured regulatory framework, which cNGN adheres to,” Ngozi Okonye, Busha Marketing Manager said in an email to TechCabal. “We have maintained an open dialogue with regulators to ensure that our [cNGN] listing aligns with existing policies and broader financial system objectives.” Busha follows an asset listing protocol before launching any token on its app. The project must have enough liquidity, must be compliant with juridical regulations that apply to it, and show proper documentation of how its project will work. “Before listing cNGN, we conducted due diligence on its issuance model, compliance setup, and reserve management structure,” said Okonye. Crypto startups that want to list the cNGN stablecoin can make API calls to get contract addresses, check balances, process transactions, and integrate cNGN payments within their platforms. In terms of liquidity, the cNGN website states that there are only 4,400 coins in circulation, signifying a low supply pool that could affect trading. However, in an email to TechCabal, Busha claims that it maintains its own cNGN liquidity pool, giving it control over trading speed and order execution on its platform. “Busha is able to mint and burn cNGN as needed. We maintain cNGN liquidity to meet customer needs and there are no limits to how much cNGN users can [buy or] sell back at a time, other than account limits for users which apply to verification levels,” said Okonye. Although Busha declined to reveal how it manages its cNGN reserves. “Our internal reserve management processes are however confidential.” The cNGN has many use cases. It is useful in remittance where its potential integration with multiple blockchain networks offers low-cost options that are cheaper than USDC or Tether. For example, sending $100 USDT from one wallet to another on a congested Ethereum (ERC-20) blockchain network costs at least $1. With cNGN, if you’re sending the equivalent ₦150,000, the fee is cheaper—about ₦150–₦500 (which is currently less than $1)—making this an attractive option. While the stablecoin is expected to provide an alternative for holding the fiat Naira, adoption will depend on the awareness and education that is created around it, according to a Web3 policy consultant who asked not to be named. Another setback for cNGN adoption is the weak fiat Naira reserves. The outlook for many Nigerians holding on to the stablecoin as a means of value is unlikely, given the inflation, currency instability, and low trust in the Naira. “It could have
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- February 8 2025
- BM
#FreeCongo: On TikTok, creators drive awareness and aid for Congo
Ablexu, a Congolese pop and R&B artist born and raised in Switzerland, uses his TikTok account of over two thousand followers to raise funds for displaced people in the Democratic Republic of Congo (DRC). Despite being away from Congo, he is distressed by the lack of media coverage of the country’s ongoing crisis. Last year, Ablexu announced on his TikTok plans to donate 80% of proceeds from his song “Not That Type” to provide critical supplies, including medicine, feminine care products, and other urgent necessities. “I want to use my gifts to support people. If we promote “Not That Type”, it means bigger revenue, which allows us to donate even more,” Ablexu said. Ablexu’s initiative reflects a broader trend among TikTok users leveraging the platform’s monetisation tools— music promotion, filters or live broadcasts— to raise virtual gifts and funds for social causes. “Because Congo has been in the news for so long, people are becoming desensitised to what’s happening there. The more people use the sound the more reach and awareness it gets,” Ablexu said. Screenshot Ablexu urging others to use the song and the number of videos the song has The DRC has been plagued by decades-long conflict which has evolved into a battle for control over the country’s resource-rich eastern provinces, particularly Ituri, North Kivu, and South Kivu. The resurgence of the Rwanda-backed M23 rebel group in 2021 has displaced over 700,000 people, pushing the total number of internally displaced persons (IDPs) to seven million. On Jan. 28, M23 seized the city of Goma, escalating the crisis to its most severe level since 2012. The United Nations warns that the conflict risks spiralling into a broader regional war, further compounding the humanitarian crisis. In 2024 alone, 358,000 more people have been displaced, child rights violations in eastern DRC have risen by 30%, and 23.4 million Congolese face food insecurity—the highest globally. With many individuals displaced by ongoing conflict and numerous children left orphaned, TikTok-driven fundraising efforts by creators of Congolese heritage aim to bring much-needed attention and support to the crisis. TikTok’s monetization tool doubles as a fundraising tool TikTok offers artists royalties when a song is used on the platform like music streaming services Spotify and Apple Music do. Artists receive royalties through music distributors who process payments after a two-month collection period. Each distributor and label operates under specific agreements with TikTok, dictating the artist’s payout. Artists earn based on video count rather than play count. The platform pays approximately three cents per video featuring an artist’s song. If a song is used in one million videos, it can generate around $30,000. While viral hits like Lottery by Renegade or Yo Bunny by ProdbycpkShawn have surpassed 1 million videos, often driven by trends, artists like Ablexu rarely hit that milestone. However, they can still generate substantial revenue with multiple songs which they donate to grassroots organisations. “My distributors collect all my royalties, and the funds are transferred from my royalties account to organisations that do the groundwork, like Focus Congo and Friends of the Congo,” Ablexu told TechCabal. Friends of the Congo, an advocacy organisation that collaborates with grassroots Congolese groups, has a history of partnering with artists for fundraising. In 2024, the group worked with Yana the Artist, an independent musician with over 24,000 monthly Spotify listeners. Through her TikTok campaigns, Yana helped raise $19,000, which was split between two programs: $9,000 went toward providing medicine, food, and essentials for displaced people in Kisangani, while $10,000 supported a women’s empowerment initiative in Kinshasa that produces reusable menstrual pads and promotes menstrual health education. The group also has an ongoing collaboration with Gangstagrass, an American musical group. Screenshot Yana the Artist Beyond music, TikTok allows creator to earn money from designing popular effects such as quizzes, colour grading, filters, animations and AI-generated elements, thanks to TikTok’s $6 million Effects Creator Rewards program which launched in 2023. Creators can earn $700 for every effect used in 500,000 unique videos within 90 days. While many creators use this program for personal income, some leverage it to raise funds for causes like the Congo crisis. One such effect allows users to feature the flag of the DRC as a backdrop, promoting awareness and support for the country. Screenshot filters used to raise funds and awareness Raising awareness is another crucial aspect of these campaigns. Emerging creators like Hadija Ali, who has over 75,000 followers, use creative content to shed light on the humanitarian crisis, often focusing on the personal stories of those affected. Others, like Congolese-born content creator Patricia Orti, have taken her efforts further by launching a GoFundMe campaign to raise €30,000 for displaced Congolese. Her campaign has so far raised €2,065, largely driven by TikTok engagement. These fundraising initiatives are not without skepticism. Some TikTok users question the authenticity of fundraisers, worrying that individuals may exploit the cause for personal gain. “We conduct thorough vetting before collaborating with TikTokers,” Maurice Carney, co-founder of Friends of the Congo, told TechCabal. Despite criticism and bans in some countries like India, Senegal, and Russia, TikTok remains a powerful tool for social good. Its dual role as a music promotion platform and a fundraising tool underscores its potential to drive positive change, proving that digital activism can make a tangible impact in crisis-stricken regions like the DRC.
Read More- February 8 2025
- BM
To make health tech truly work for African pharmacies, these five things need to happen
This article was contributed by Damilola Adelekan, lead product manager at Remedial Health Solutions. Last year, at a small pharmacy in Lagos, I watched the owner scramble to communicate with multiple WhatsApp messages from suppliers while scanning his shelves for medicines past their expiry dates. In that moment, my decision to work in health tech couldn’t be any clearer: inefficient and risky pharmaceutical supply chains and poor inventory management either as a result of understaffing or nonchalance, could benefit from technology solutions. So far, it has. Several startups have launched in the past few years to aid in inventory management for pharmacies across the continent. But, tech alone won’t fix faulty pharmaceutical supply chains. Easing bottlenecks In Africa’s $26.85 billion pharmaceutical market, problems of fragmentation, counterfeits, and last-mile delivery persist. The conventional approach to drug distribution, with its numerous intermediaries and muddled-up supply chain, remains insufficient to meet increasing healthcare needs on the continent. Nevertheless, the emergence of various health tech solutions is painting a new picture. In Nigeria, companies like DrugStoc, LifeStore, and Remedial Health Solutions, where I am currently the lead product manager, are revolutionising pharmaceutical procurement. These are not just ordering apps; they are creating an entire supply chain of manufacturers and healthcare providers. I have talked to dozens of pharmacy owners who say they have cut their stockouts by 40% and their costs by a quarter using these platforms. I am in awe of the work being done in East Africa by Maisha Meds and MEDS (Mission for Essential Drugs and Supplies). In Kenya, Uganda, and Tanzania, Maisha Meds has established a strong network of over 1,000 pharmacies. They have assisted small pharmacies in digitising their inventory management and verifying the legitimacy of drugs using mobile phones. The outcome? A near complete elimination of fake medications in their networks and a 30% improvement in operational efficiency. Startups like RxAll and Sproxil are also adding transparency to pharmaceutical supply chains using simple technology. With one code scan, pharmacy owners are now able to track a drug’s path from manufacturer to shelf. This is revolutionary. This transparency isn’t just about safety—it’s rebuilding confidence in the pharmaceutical market. I can’t count how many times pharmacy owners have told me, “I know the medications I need in my store, but I don’t have the money to keep them in stock.” That’s why I am excited about businesses like Field Intelligence and Remedial Health Solutions which offer both inventory management and financing options. They are enabling small pharmacies to increase their stock and do so without incurring significant financial risk or breaking the bank. Regarding delivery, several companies are now developing conventional hub-and-spoke distribution models, a contrast with Zipline’s drones in Rwanda and Ghana. These models involve large central warehouses joined to small local fulfilment points. They may not be as glamorous as drones, but they do assist in getting medicines to remote areas. The road ahead I must be realistic about the sector’s lingering problems. Regulation has not kept up with technology, and there are still the issues of internet connectivity and erratic power supply. What annoys me most is that so many businesses are creating digital islands that cannot communicate with each other. Here is what I believe needs to happen: First of all, interoperability should become the norm—it’s time to take down those silos. I am so tired of seeing different platforms springing up that are not able to talk to each other. Industry-wide standards for data sharing and integration are needed to allow different platforms work together without eliminating competitive differentiation. Second, we have to support local manufacturing. COVID-19 revealed that we have been over-dependent on imported medicines. There are pharmaceutical factories in Nigeria and Ghana that could be supplying more of the medicine that Africa needs if they were better connected to distribution networks. Companies can focus on facilitating the connection between local manufacturers, distributors, and healthcare providers. Third–and I feel strongly about this–African governments need to harmonize their regulations. I’ve seen too many new ideas fail because they have to deal with different policies in each country. The African Continental Free Trade Area (AfCFTA) provides an opportunity to standardize pharmaceutical regulations across borders. Fourth, we desperately need better infrastructure, and this is not just physical ones. The best technology in the world won’t help if we don’t have reliable internet and power. Finally, we need sustainable business models. I’ve seen too many donor-funded projects fail once the funding dries up. This means developing business models that can work despite the existing constraints in our markets. The next five years will be transformative for Africa’s health tech sector. We’ll likely see some consolidation as companies seek scale advantages. We’ll see more integration with traditional healthcare systems. And I’m betting we’ll see the rise of truly pan-African platforms. Winners will be those mixing innovation with practicality, profitability, and social impact. We aren’t turning current processes digital, but rethinking the way medical supplies travel through African health systems. I can tell from my vantage spot in the industry that we’re headed in the right direction. The technology exists. The entrepreneurial talent is here. The market opportunity is clear. Now, we’ve got to dream bigger, shift focus from standalone fixes to creating frameworks that serve all people well. This isn’t just business for me – it’s personal. Every time I visit a rural clinic or small pharmacy that has picked up our latest tech, I can spot the change we’re bringing about. Yet, there’s a ton left to tackle. It’s not just one firm or gadget that will revolutionize health tech in Africa–it’s about all of us working together to ensure every African has access to the medicines they need. ____________________ Damilola Adelekan is a results-driven Product Manager with over 5 years of experience in physical wellness, dot-coms, and SaaS platforms. She specialises in product development, roadmap planning, and leveraging user feedback to deliver impactful solutions. As Lead Product Manager at Remedial Health Solutions, she combines strategic thinking
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Africa’s borders are opening but can it do the same for money?
This article was contributed to TechCabal by Ifelade Ayodele, CEO and co-founder of Blaaiz Several African nations have recently embraced visa-free policies for fellow African travelers. Passport holders from any African country can now enter Seychelles, The Gambia, Benin, Kenya, and Rwanda without a visa. This is a major step toward deeper continental integration, signaling a commitment to freer movement, stronger economic ties, and a more unified future. But while physical borders are opening, financial barriers must be removed just as swiftly. Moving money across the continent remains costly and fragmented, with over 42 currencies. The urgency to prioritise seamless payments grows by the day. While a single currency may not be feasible, a unified, African-backed stablecoin (dubbed AFT) could be the bridge that brings the continent closer together—faster. It’s been established over time that the potential of stablecoins in Africa is becoming impossible to overlook, offering significant benefits for industry players and governments. But turning this vision into reality requires careful, deliberate action. Building an African-backed stablecoin is no small feat. it will demand precision, expertise, and a deep understanding of the continent’s financial landscape. Amongst other measures, three key elements will be essential to making it work: the peg mechanism, governance structure, and multi-level implementation. Pegging stability: Tapping into Africa’s rich resources Volatility is a major challenge for many African currencies. Take the Nigerian naira which has consistently lost value over the past decade, a trend seen across much of the continent. This raises an important question: what should an African stablecoin be pegged to? The key here is to tie the coin’s value to an asset of enduring stability—otherwise, the effort risks falling short. Africa’s wealth of natural resources offers a unique opportunity. Precious metals like gold, platinum, and diamonds are widely recognised and their value remains stable over time. Africa can create a stable and credible currency by pegging the African stablecoin to a widely accepted commodity like gold. Strategic commodities such as crude oil and natural gas could also be considered. Oil-dependent economies like Nigeria and Angola might benefit from a hybrid peg involving oil reserves. However, volatility remains a concern, so a more diversified approach may be necessary. One such option is a commodity basket—combining gold, key agricultural exports, and industrial metals. This approach would spread risk and help insulate the stablecoin from fluctuations in any commodity’s value. The goal is clear: to create a stablecoin that remains resilient to market fluctuations, ensuring broad acceptance across the continent. By anchoring the currency to Africa’s abundant resources, the continent can build a financial system that is not only predictable but also deeply rooted in its strengths. Governance: Ensuring fairness and long-term success As with any ambitious financial initiative, the governance structure will play a pivotal role in determining the success of the African-backed stablecoin. With 54 countries involved, the governance framework must be transparent and inclusive. Africa is a continent marked by diverse economies, political systems, and financial infrastructures, so the governance of this stablecoin must reflect this complexity. One possible solution is to form a coalition of African financial institutions and regional economic bodies responsible for overseeing the stablecoin’s issuance, stability, and adoption. Institutions like the African Development Bank (AfDB) could take charge in ensuring that the stablecoin aligns with broader economic objectives and promotes long-term sustainability across the continent. Regional economic communities such as ECOWAS, EAC, and SADC could also tailor the coin’s implementation to each bloc’s unique economic dynamics, ensuring smoother adoption and fostering greater cooperation between nations. To ensure credibility and stability, the governance framework should incorporate transparent monetary policies, smart contract-based issuance, and effective regulation to prevent market manipulation or oversupply. This will help build trust and ensure the stablecoin remains a reliable tool for economic integration. Multi-level flexibility: A tailored approach to Africa’s diverse economies Even as we advocate for a unified African stablecoin, a multi-tiered approach would be necessary to accommodate the continent’s economic diversity. Take for instance, at the top level, a Pan-African AFT, backed by a diversified basket of commodities, could serve as the standard means of trade for cross-border transactions and large-scale corporate dealings. This would provide a stable and unified currency for major economic exchanges across Africa. In addition to the Pan-African model, regional AFTs—such as AFT-West, AFT-East, AFT-South, and AFT-Central—could be developed. These regionally focused stablecoins, pegged to local reserves, would allow for a gradual and tailored adoption across different economic areas. This phased approach would help address regional disparities and ensure smoother integration into the broader financial system. Lastly, sector-specific AFTs could cater to specific industries like trade, remittances, or interbank settlements. These specialised stablecoins would ensure seamless transactions within particular sectors, making AFT adaptable to the diverse needs of businesses and consumers alike. This multi-level flexibility ensures that the African-backed stablecoin can support a range of economic activities, from large-scale trade agreements to everyday consumer transactions. It also enables smoother integration across different economic regions and industries, laying the foundation for a truly unified financial ecosystem. The road ahead: Overcoming challenges While the potential of an African-backed stablecoin is clear, several challenges must be addressed. Political resistance, regulatory hurdles, cybersecurity risks, and the complexity of coordinating 54 nations’ financial systems pose significant obstacles. However, these challenges are not insurmountable. Some African nations are already exploring digital currencies and blockchain technology. Nigeria’s cNGN and Ghana’s e-Cedi are notable examples of how central banks are testing digital currency solutions. The success of these initiatives will be crucial in demonstrating the feasibility of a continent-wide stablecoin. Establishing an African-backed stablecoin could transform Africa’s economic future. By anchoring the currency to Africa’s valuable natural resources, establishing a transparent governance structure, and implementing a flexible, multi-tiered approach, AFT could become the backbone of intra-African trade and financial integration. This would provide the financial infrastructure needed to unlock Africa’s full economic potential, making cross-border trade easier, more affordable, and more efficient than ever before. Note: This article builds on prior discussions about digital assets and assumes
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