- February 7 2025
- BM
South Sudan launches first-ever instant payments system three years after proposal
Three years after it was first proposed, the Bank of South Sudan (BoSS) has launched its first National Instant Payment System (NIPS) in collaboration with the AfricaNenda Foundation, an advocacy group for instant payments. It is a critical step for South Sudan’s financial system to address payment efficiency and access gaps. NIPS will enable instant transactions to cut delays, lower costs, and improve financial inclusion for over 6 million adult citizens with limited access to formal banking services. MTN and Zain dominate payments in South Sudan due to the lack of a domestic or regional instant system. NIPS integrates with systems like the Automated Clearing House (ACH), Real-Time Gross Settlement (RTGS), and instant fund transfers (IFT), a step toward addressing these issues, central bank governor Johnny Ohisa Damian told journalists at the launch on Wednesday. “The start of the NIPS journey marks a monumental step forward for financial and socio-economic inclusion in South Sudan,” he said. NIPS aligns with regional financial modernisation, mirroring the East African Community’s (EAC) push for instant retail payments, guided by a 2024 master plan. Burundi and the Democratic Republic of the Congo are the only countries in the EAC without an instant payment platform. Backed by the AfDB, World Bank, and Gates Foundation, EAC nations have pursued payment integration for over a decade, with Kenya, Tanzania, Uganda, and Rwanda already linking their RTGS systems via the East African Payments System. This initiative is significant for South Sudan, which gained independence in 2011. The country has struggled with persistent economic instability, underdeveloped financial systems, and reliance on cash-based transactions. The move is not just about technology—it’s about creating a foundation for economic stability and growth in a nation still rebuilding from decades of conflict. Modernising its financial infrastructure will help the government better support businesses and improve government revenue collection, although the success of this system will depend on effective implementation, public trust, and ongoing support to ensure it meets the needs of all South Sudanese.
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- February 7 2025
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TechCabal Daily – Press Startbutton to expand
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF Before we dive into today’s edition, please take a few seconds to follow us on TikTok where we’ll telling the stories of African tech on camera. Quick Fire with Adeboro Odunlami Nigeria’s SEC to fast-track crypto licensing in 2025 Startbutton expands into seven Francophone markets Funding Tracker World Wide Web 3 Events Features Quick Fire with Adeboro Odunlami Adeboro Odunlami is a product safety expert dedicated to helping tech companies build responsible and ethical technology. She is a globally recognized digital policy advocate shaping policies on trust, safety, and platform accountability. She is committed to ensuring that innovation prioritizes user protection and ethical standards. Adeboro Odunlami You are trained as a lawyer but now are working on ethical products and responsible technology. How did that shift happen? As a law student at UNILAG, my first exposure to tech was during an internship at a very popular tech company in Lagos. Because of my legal background, I observed conversations around product development differently. I’d think, “That’s a cool feature, but what laws should we be considering”, or “That’s nice. But how does it impact users’ privacy, safety or rights”. I noticed gaps between what teams were building and the real-world implications. My research project was around emerging technologies and the right to privacy. I saw a need in the technology industry for someone who could bring a legal and ethical perspective into those conversations. What I do now in product management is help teams build products that are innovative, safe, responsible, and inclusive. I also do a lot of advocacy for better technology policies that reinforce the responsibility of tech companies toward their users. Explain your job to a 5-year-old Imagine you have a really cool teddy bear that can do a bunch of fun things like talk to you when you’re lonely, help you remember your school work, remind you to brush your teeth and help you find your missing toys. My job is to make sure that your teddy bear continues to help you do these fun things in a way that is safe for you and everyone else. So for instance, we don’t want the teddy bear to say something mean to you or make you do things you should not do. I also work with the grown-ups who make the rules for how we can make toys and robots even better and safer for everyone! Can you describe a significant digital product where your ethical product management expertise played a critical role in its success? I definitely would talk about my current project at Resilience Technologies—Zeroth Cloud. Typically, when an at-risk organisation or individual like a journalist or human rights defender experiences an attack on their digital security, they report it to a help desk which then assigns the case to a staff member, who will then have to fix a meeting to gather details about the attack. Zeroth Cloud is an AI-powered threat intelligence platform designed to automate the entire lifecycle of threat management including prevention, detection and response with minimal human interaction. I work as the product director at Resilience Technologies and my role is to ensure that the platform is not only innovative but is safe, inclusive, and ethical. What’s one product you’ve worked on that made you think, “Wow, this is really going to change lives”? I’ll mention two products maybe because both products are similar. In 2018, I built ChapterIV to connect victims of police brutality with pro-bono legal representation and in 2022, I co-founded Lawbrella, a similar product that connects victims of image-based sexual abuse (a.k.a revenge porn) with free legal support. I think these two products, especially Lawbrella, are changing lives! What’s one ethical tech dilemma you’re tackling that still keeps you up at night? Ah. Privacy is always a culprit. I always need to balance it with something else. An example is balancing privacy with functionality when building products that need user data to work effectively. Take, for instance, Lawbrella. For us to provide effective support to survivors of image-based sexual abuse (IBSA), we need enough information to connect them with legal assistance, identify harmful content, and sometimes track down perpetrators. But you see, every piece of data we collect could put them at greater risk if we mishandle it (we won’t!). In fact, the dilemma worsens when you throw in automation and user control into the mix. From my experience with Lawbrella, most people reporting cases often want systems that work quickly and seamlessly (like Zeroth Cloud) but using AI and other automation features typically require more data. So the question remains: how do we give users a system that functions effectively without requiring massive sets of sensitive data? How much data is “too much”? This is what makes policy conversations really interesting and that’s why I keep saying that tech issues aren’t just about tech, they are about human beings. If you could change one thing about the way tech companies approach privacy and security, what would it be? For them to see privacy and safety as a competitive advantage and not as a burden. What emerging trends in ethical product management do you see shaping the future? I think we’ll see increased scrutiny on the climate/environmental impact of digital technologies. So basically, ensuring that products are sustainable whether it’s in reduced energy consumption for AI models or building lightweight apps that consume less data. 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. Regulation Nigeria’s SEC to fast-track crypto licensing in 2025 Image source: Pymnts It’s been five months since Nigeria’s Securities and Exchange Commission (SEC) issued the country’s first provisional crypto licences. Yet, it has provided no further updates on the next batch of startups supposed to receive regulatory approval. Industry insiders speculate that the
Read More- February 6 2025
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LAPO’s bank app targets younger customers as it looks to grow loan book to ₦400 billion
After issuing ₦237 billion in loans in 2024, LAPO MFB will launch a new banking app aimed at broadening its appeal beyond its traditional base of petty traders. With 35 years of history as a microfinance bank, LAPO is now targeting younger Nigerians and diversifying its customer profile. The microfinance bank is synonymous with small-ticket loans for low-income earners but it wants to reshape that image. Set to launch in the first quarter of 2025, the LAPO app will allow users to take loans (starting at ₦20,000), pay bills, conduct daily transactions, track expenses, and open fixed deposits at rates comparable to wealth management startups like Piggyvest and Cowrywise. “We’re creating a product that resonates with the evolving needs of our customers,” said Amechi Koldsweat, head of digital banking. “When you think of LAPO, the default customer archetype is the woman selling pepper—but that same woman has kids in university, kids she took loans to train.” LAPO, which serves 6 million customers, is entering Nigeria’s competitive digital banking market alongside established players like OPay, PalmPay, and Moniepoint. Although it is a later entrant, LAPO MFB’s extensive physical presence across 34 states, long history in credit issuance, and existing cashback reward programs are significant competitive assets, its executives told TechCabal. The bank’s hybrid strategy will blend digital innovation with its traditional in-person services. “Our physical branches remain crucial for financial inclusion,” said Oluremi Akande, director of marketing and communications. “While we’re expanding digital services, many of our customers still require in-person financial literacy programs and community support.” With plans to grow loan disbursements from ₦237 billion in 2024 to over ₦400 billion in 2025, LAPO MFB intends to use its app to issue “better and faster” loans. Those loans will range from ₦20,000 to ₦50 million depending on customer profiles, with monthly interest rates between 2.9% and 3.5%. Digital lending is fraught with risk. In 2024, Techstars-backed Blackcopper, which set out to provide collateral-free loans to Nigerian SMEs, shut down under the weight of ₦1 billion in debt after it claimed customers falsified KYC information and struggled to repay. LAPO MFB is taking a measured approach: it will start with small digital loans and gradually increase limits for borrowers with a strong repayment history. The bank is also partnering with credit bureaus like CRC and First Central and leveraging its proprietary data to assess creditworthiness. “If customers have defaulted elsewhere, we will know before lending to them. For new users, we will review all the data that we can get,” Koldsweat said. By combining its long-standing reputation with new technological capabilities, LAPO is positioning itself to serve both its core market and attract new, younger customers. Its careful rollout and hybrid strategy could prove vital in an environment where user inertia and stiff competition from digital-only fintechs remain significant challenges.
Read More- February 6 2025
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Startbutton’s Francophone launch lets business enter the region without setting up local entities
Startbutton, a Norrsken-backed startup that helps businesses expand abroad without physical offices, is launching in seven Francophone African countries—Benin, Togo, Senegal, Mali, Guinea Conakry, Burkina Faso, and Cameroon—to enable more companies to enter these markets and accept local payments. Startbutton’s expansion to Francophone is crucial for startups looking to expand their reach in Francophone Africa without needing to set up physical offices. Francophone Africa has been a significant destination for African startups due to its rising middle-class population with disposable income. MDaaS, a healthcare startup and Omniretail recently expanded into the Francophone region. Ivorian fintech HUB2 also raised $8.5 million in Series A in 2024 to continue its expansion across the region. Despite these opportunities, foreign businesses often struggle with complex regulations, language barriers, and limited payment infrastructure, especially when trying to accept local mobile money or settle transactions in foreign currencies. Startbutton addresses these pain points by helping companies accept local payments and charge in foreign currencies. This approach accelerates market entry, streamlines compliance, and unlocks a fast-expanding customer base eager to transact online. “We are leveraging local partnerships (with banks) to drive adoption, ensuring we work with trusted financial and business networks, said Malick Bolakale, StartButton CEO. “ Additionally, we will execute direct outreach to high-growth businesses, educate the market through strategic content, and position Startbutton as the default choice for businesses expanding into Francophone Africa.” With the Francophone expansion, StartButton now operates in 15 countries, with a key focus on the travel, education, and digital services sectors in French-speaking markets. In these industries, businesses often face two major hurdles—language barriers and difficulties reaching local customers who primarily use mobile money rather than international payment methods. They also have to price in EUR or USD, which can deter customers accustomed to transacting in their local currency. StartButton’s Direct Currency Converter (DCC) solves this by allowing companies to maintain foreign currency pricing while letting end users pay in local currencies. This localized payment flow not only removes friction for customers, but also helps businesses overcome the accessibility challenges that have long hindered market entry and growth in Francophone Africa. In its move to Francophone Africa, Startbutton will compete with DLocal–local payment methods—and other local payment companies, like Julaya. Unlike its competitors that focus primarily on payment processing, Startbutton offers additional features like local tax compliance, removing a major operational barrier for foreign businesses looking to enter and scale in the region. “Our differentiation lies in compliance-first expansion—helping businesses navigate complex regulatory landscapes while streamlining their payment flows,” Bolakale added. “Unlike pure payment processors, we enable businesses to operate legally and seamlessly, ensuring they don’t just process payments but also meet local tax and regulatory requirements. Startbutton claims it has processed over $5 million since inception, earning a 0.5-1% commission on each transaction. Bolakale expects Startbutton to process an additional $2 million in the Francophone market. The startup serves over 100 businesses across 20 countries. Most of its customers are in the aviation, gaming, and e-commerce sectors. Last year, the startup secured an International Money Transfer Operator (IMTO) license in Nigeria and a Financial Conduct Authority (FCA) license in the UK. “The next phase is about expanding beyond payments to becoming the default infrastructure for business expansion in Africa, ensuring companies can pay, get paid, and operate seamlessly across borders,” Bolakale said. Norrsken-backed Startbutton makes market entry easy for startups eyeing global expansion
Read More- February 6 2025
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CBN reinstates director Jimoh Musa in leadership change for key payments unit
Nigeria’s Central Bank (CBN) has reinstated Jimoh Musa Itopa, a director in the Payments System Management Department (PSMD), who was retrenched alongside 16 other directors in 2024, according to multiple sources familiar with the matter. His return signals a significant leadership change in the crucial department responsible for licensing payment switching companies, regulating agent banks, and overseeing cashless policies and open banking initiatives. The reasons behind Musa’s reinstatement remain unclear, raising questions about the CBN’s confidence in the current leadership of the PSMD, including acting director Oladimeji Yisa Taiwo and other deputy directors such as Dr. Isaiah Ademola Adeleke, who oversees payment system oversight and compliance division and Dr. Bukola Akinwunmi, head of payments policy and regulation. One theory circulating in industry circles is that the CBN requires experienced hands like Jimoh to drive the department, especially with growing challenges in the digital payment landscape. Musa’s previous leadership experience, including his role as Chairman of the Nigerian e-Fraud Forum (NeFF) and the Nigerian Payments Initiatives Coordinating Committee (PICC), is seen as a potential asset for the CBN in navigating these complexities. “This development means there is a capacity gap in the PSMD and is a vote of no confidence in its current leadership,” said one industry insider who asked not to be named to speak freely. Musa’s move to the Capacity Development Department in 2023, a unit responsible for training CBN staff, followed an internal restructuring after the implementation of a special investigator’s report. The report, which examined the tenure of the embattled former CBN governor, Godwin Emefiele, led to the dismissal of several senior officials. However, it remains unclear whether these officials, including Musa, were formally indicted as part of the investigation. CBN did not immediately respond to a request for comments. Musa’s reinstatement will likely impact the future direction of Nigeria’s payment systems policy, influencing key areas such as licensing, compliance, and the regulatory framework for payment infrastructure. The shift could have far-reaching effects on banks, fintechs, and payment service providers operating in the country. Musa did not immediately respond to a request for comments. The Central Bank has placed considerable focus on digital payments in recent years, aiming to reduce reliance on cash and foster greater financial inclusion, particularly as fintech startups continue to grow in influence. In 2022, the CBN unveiled a five-year strategic roadmap to boost digital payments adoption. In 2023, the botched currency redesign policy created a cash shortage but also contributed to a surge in digital payments, as Nigerians increasingly turned to fintech apps like OPay and PalmPay for transactions. According to the CBN, online transactions in Nigeria surged to ₦476.89 trillion during the first half of 2024.
Read More- February 6 2025
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Nigeria’s SEC to fast-track crypto licencing in 2025
Nigeria’s Securities and Exchange Commission (SEC) plans to accelerate the issuance of crypto licences in 2025 as part of its efforts to regulate the cryptocurrency market and protect consumers. The regulator aims to expedite approvals to address the need for clear regulations in a largely unregulated market. Since launching the Accelerated Regulatory Incubation Programme (ARIP) in June 2024, the SEC has granted provisional licenses to two Nigerian crypto startups, Quidax and Busha. At a December 2024 workshop, the SEC indicated it would “move a lot quickly” in issuing further provisional licences in 2025, according to a person familiar with the matter. Nigeria is an active crypto market with individuals and businesses using cryptocurrencies and stablecoins to hedge against inflation and exchange rate volatility. Yet, the lack of a clear regulatory framework creates significant uncertainty for users and investors. A report from Busha found that nearly half of 1,500 surveyed Nigerian crypto users and non-users cited security concerns as a barrier to crypto adoption. On centralised exchanges, one wrong click can lead to financial loss. Peer-to-peer (P2P) transfers are also risky, and new users may pay higher fees if they are not familiar with how blockchain networks work or how to minimize transaction costs. Rug-pull scams are also prevalent, particularly with the rise of meme coins. These scams involve creators artificially inflating a token’s value before selling off their holdings, causing the price to crash and leaving buyers with losses. “Scammers thrive the most in the crypto space; if you find ways to take advantage of those who don’t know what they’re doing, that’s where you make the most money,” said Chibunna Kingsley, a crypto trader based in Lagos. “It’s right for people to feel unsafe.” To address these risks, crypto platforms have focused on educating users, but awareness alone isn’t enough. Regulators must play a central role in consumer protection. “If you’re a regulator, you should be worried about consumer protection,” said Craig Stoehr, General Counsel at crypto startup Yellow Card. “More has happened in the past nine months than in the 2 years before the SEC established ARIP. They’re on the right track.” Discussions about regulating digital assets began in September 2020 when the SEC released its first framework for crypto regulation. In 2022, the SEC took a more explicit stance by focusing on how crypto assets should be classified under securities laws. By March 2024, the regulator amended its guidelines, directing all entities offering virtual asset services to register with the Commission. The SEC launched the ARIP in June 2024 to onboard crypto startups and operators in a sandbox-like environment. This initiative allows crypto companies to obtain provisional licences, marking a significant shift from Nigeria’s anti-crypto stance in 2021. At that time, banks avoided providing services to crypto companies due to compliance concerns. With the ban lifted in December 2023, the Central Bank of Nigeria (CBN) has issued directives on how banks can engage with crypto startups. This collaboration has allowed companies like Quidax, Busha, and Yellow Card to gain access to banking services, although some banks remain wary. Under the ARIP, local and foreign crypto startups—including Quidax, Busha, Yellow Card, Borderlesspay, and Bitnob—have applied for provisional licences. These companies pay a ₦200,000 fee for assessments and an additional ₦2 million in non-refundable processing fees. “The process was thorough,” said Tobenna Igweonu, a lawyer representing Quidax. “We answered questions on the SEC’s e-portal, paid the application fee, and participated in a demo where we demonstrated how funds flow through our platform.” During the demo sessions, SEC officials scrutinised the companies’ compliance setups, focusing on consumer protection measures and their ability to flag suspicious user accounts. In August 2024, the SEC issued a provisional licence to Quidax, which had been engaging with the SEC even before the ARIP was announced. Quidax was the first startup to apply, allowing it to secure a provisional license ahead of others. After 12 months, Quidax is expected to obtain full licensure as a Virtual Asset Service Provider (VASP), assuming it meets the necessary regulatory requirements. Despite progress, banks remain cautious about working with crypto companies. The CBN has yet to provide a clear stance on how financial institutions should engage with crypto startups. However, a regulatory grey area has allowed these startups to access banking services, although they often disguise themselves as “investment” companies to avoid drawing attention to their crypto operations. “The challenge is that banks don’t directly associate with crypto companies,” a banker who asked not to be named discussing a sensitive issue told TechCabal. “They simply work with them as investment companies.” As the SEC moves towards full regulation of the crypto market, clearer guidelines could boost confidence among institutional investors and banks, encouraging them to explore crypto opportunities. A transparent regulatory environment would also make it easier to tax crypto transactions, a proposal that Nigeria has been exploring since 2022. “The ARIP remains one of the boldest efforts by any regulator in Africa to oversee the crypto sector,” said Chuta Chimezie, a member of the Nigerian Blockchain Committee. While the SEC has made strides in regulating crypto, it must strike a balance between fostering innovation and ensuring compliance. Over-regulation could stifle growth in the sector and drive businesses to other jurisdictions with more favorable environments. The SEC has indicated that it aims to create a balanced framework that encourages growth while protecting consumers, but how this balance will be achieved remains an open question.
Read More- February 6 2025
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Israeli unicorn StarkWare launches $4 million fund to invest in African blockchain startups
StarkWare, an Israeli blockchain infrastructure company valued at $8 billion, has launched a $4 million fund to invest in pre-seed and seed-stage startups in Africa as the continent embraces growing blockchain adoption. The Africa-focused fund will provide grants of up to $150,000 to early-stage startups, with larger investments available for projects building on StarkNet, StarkWare’s proprietary decentralized application platform that operates on the Ethereum blockchain. The fund will target high-potential startups across West, South, and East Africa, focusing on teams combining strong technical skills and local business acumen to create scalable blockchain solutions. “We are looking for projects in African countries that have economic conditions such as high inflation, unstable exchange rates, or low financial inclusion, with a local population interested in blockchain,” said Kheireddine Kamal, Head of Africa Ventures at StarkWare. Selected startups will also receive mentorship and have the potential to secure further investments from StarkWare, up to $500,000, with the possibility of larger amounts for exceptional projects. By investing in decentralized applications (dApps) built on StarkNet, StarkWare aims to empower African businesses to bypass traditional financial systems while benefiting from blockchain’s scalability and cost-efficiency. Africa’s youthful population—projected to reach 2.5 billion by 2050—combined with rapidly increasing crypto adoption, positions the continent as a global digital powerhouse. With $6.7 trillion in consumer and business spending forecast by 2030, blockchain adoption is accelerating. “Blockchain presents a unique opportunity for many parts of Africa to leapfrog outdated infrastructures and democratise access to financial tools with more decentralisation and transparency,” Eli Ben-Sasson, StarkWare CEO and co-founder said. Founded in 2018 by Eli Ben-Sasson, Uri Kolodny, Michael Riabzev, and Alessandro Chiesa, StarkWare develops zero-knowledge proof systems, to address scalability challenges in blockchain networks like Ethereum. StarkWare’s primary products include StarkEx, a scaling engine launched in June 2020 that aggregates transactions into a single proof for cost and energy efficiency, and StarkNet, a decentralised Layer 2 network introduced in June 2021 that enables scalable decentralized applications (dApps) with lower fees. “StarkNet is a particularly interesting path to blockchain, as it is currently a Layer 2 over Ethereum and plans to also operate over Bitcoin,” Kamal said. “This can be great for Africa as it can mean that the ‘scaling squared’ approach also means a ‘liquidity squared’ approach.”
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- February 6 2025
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TechCabal Daily – IBM checks out
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Come write for TechCabal. 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. IBM checks out of Africa Court orders for forfeiture of Tijani Muiz’s assets MNOs urge ICASA to resist Starlink’s influence Kenya cuts interest rates to boost credit growth World Wide Web 3 Events Companies IBM checks out of Africa: MIBB moves in to take over An IBM office building. Photo by Tomoko Wakabayashi After five decades of tech diplomacy in Nigeria, IBM is packing its bags and handing the keys to MIBB, a subsidiary of Midis Group. Starting April 1, 2025, MIBB will be in charge of selling IBM’s software, hardware, cloud, and consulting services across 36 African countries. IBM calls this a “new operating model,” but to the rest of us, it looks like goodbye. IBM once dominated Nigeria’s tech scene, providing IT muscle for banks, telecoms, and government agencies. But competition from Dell and Huawei swooped in like uninvited wedding guests, and before long, IBM’s client list was looking slimmer than a startup’s lunch budget. Globally, IBM’s numbers have been wobbling. In 2024, its consulting revenue dipped 2%, infrastructure sales took an 8% hit, and despite a 10% boost in software sales, overall revenue only crawled up by 1% to $17.55 billion. Still, IBM is optimistic, projecting 5% revenue growth in 2025, with $13.5 billion in expected free cash flow—because hope (and solid financial forecasting) springs eternal. So, what does this mean for Africa? Well, IBM is out, MIBB is in, and businesses are left wondering whether they just got an upgrade or a reroute. Either way, the tech scene in Nigeria and beyond is about to experience a plot twist. 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 Court orders for forfeiture of Tijani Muiz’s assets First Bank HQ. Image Source: First Bank Higher-ups at First Bank, Nigeria’s oldest lender with ₦25.7 trillion ($18.3 billion) in assets, will be heaving a deep sigh of relief after the Federal High Court, on Tuesday, ordered the forfeiture of assets of Tijani Muiz Adeyinka, the ex-employee who allegedly diverted ₦40 billion ($29 million) from the bank in March 2024. If you missed the First Bank fraud story, here’s some required reading for you before you continue. Adeyinka worked in operations during his fated time at First Bank, where he managed the bank’s settlement account to process customer reversals. The ex-banker, using his position, allegedly stole money for two years, diverting sums to over 1,000 primary and secondary beneficiary accounts, making it hard to trace. The lender lost a huge sum of money—the largest fraud loss in its history—and the following weeks were gruelling sessions of internal investigations that later led to the sacking of over 100 employees. The bank involved the Nigerian Police and anti-graft agency, the Economic and Financial Crimes Commission (EFCC), to investigate the matter and petitioned the courts to act quickly and freeze assets belonging to the ex-employee. In June 2024, Adeyinka was declared a wanted person. According to the EFCC counsel, Adeyinka allegedly laundered money through a business he ran, Golden Sieve Logistics Ltd, which was registered in 2020. He also bought USD and exchanged it for other currencies. Additionally, he layered the money by transacting in stablecoins to further obscure the fraud’s origins. After a lengthy investigation, the court has ordered the forfeiture of all assets recovered from accounts linked to Adeyinka. The seized funds include ₦1.17 million, £35,070, and $392,818, totaling $1.2 million. The recovered sum is expected to be returned to First Bank. While this is nowhere near the $29 million it lost, the bank will continue working with authorities to probe its ex-employee for any additional recoverable funds. On the operational side, the lender must tighten its processes around critical functions like settlements to prevent another incident that could leave it reeling from further losses. Internet MNOs urge ICASA to resist Starlink’s influence GIF Source: Tenor Elon Musk has stayed busy in South Africa. Over the past few weeks, Musk, the founder of satellite internet service provider (ISP) Starlink, has been engaging in talks with South Africa’s Cyril Ramaphosa to finally bring the satellite-to-mobile service home. The talks have been progressive, and President Ramaphosa has been key in ensuring that the Independent Communications Authority of South Africa (ICASA), the country’s communications regulator, tries to find alternative ways to bring the satellite ISP’s investment into the country. In October 2024, Communications Minister Solly Malatsi also argued for ICASA to lower regulatory hurdles for foreign operators. South Africa’s existing ownership rules, stating that foreign companies must have 30% black or disadvantaged-group ownership under its Black Economic Empowerment (BEE) rule—or cede some of its shares to the government—have been a major roadblock for Starlink. However, local mobile network operators (MNOs) don’t like the tune ICASA is dancing to. Through their industry body, the Association for Communications and Technology (ACT), MNOs like Vodacom, MTN, Cell C, Telkom, Rain, and Liquid Intelligent Technologies are pushing back, arguing that ICASA’s focus on updating satellite regulations is unfair. They argue that if licencing rules are going to be revised, they should be revised for the entire telecom sector—not just for satellite players like Starlink. MNOs believe the current approach gives satellite providers an unfair advantage, especially as technology evolves toward satellite-to-mobile connectivity that could make companies like Starlink direct competitors. Starlink is no stranger to pushback from local ISPs. In Kenya, Safaricom, the country’s largest telecom operator, asked regulators to review whether it was fair for Starlink to operate without a physical presence while local players
Read More- February 5 2025
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SeamlessHR targets $720 million public sector with an ambitious expansion
SeamlessHR, a Nigerian HR-tech startup, is set to expand its customer base by targeting government agencies. This move positions the company to tap into the growing public sector market. With over 720,000 civil servants, the Nigerian government represents a significant opportunity for SeamlessHR, offering a stable and high-value market for long-term growth. Primarily serving mid-to-large enterprises, SeamlessHR is now in talks with several ministries, departments, and agencies (MDAs), including the National Information Technology Development Agency (NITDA), to onboard them onto its platform, said an ex-employee with knowledge of the matter. The startup already provides its performance management services to Nigeria’s Port Authority (NPA) and its recruitment solution to the 3 Million Technical Talent (3MTT) program, said the company’s Chief Technology Officer, Deji Lana. Lana told TechCabal that the company’s success in the private sector has built a solid foundation for its transition into the public sector. “If we’ve done this for the private sector, and it has worked, why can’t we do it for government as well?” Lana explained. There might be some unique configurations, but we’re confident the platform can adapt to the specific needs of government agencies.” Aiming to address long-standing issues like transparency, ghost workers, and unequal distribution in the public sector, SeamlessHR believes its platform can help streamline human resource management. “We need to play in that space to ensure that some of the things many people complain about—like fairness, transparency, and equity in assigning resources—can be solved on the platform,” Lana added. The move into the government sector comes as the HR-tech space in Nigeria becomes increasingly competitive. New players like PaidHR, Bento, Ropay, WorkPay, Cloudenly and NotchHR have emerged, challenging SeamlessHR’s dominance. However, Lana remains confident, pointing out that SeamlessHR’s biggest competitors are global HR-tech giants like SAP, Zoho, and Oracle, who have already built end-to-end HR solutions at scale. “From the start, we set out to build a complete HR tech solution,” Lana said. “Some of our global competitors have already done that, but our deep understanding of local challenges gives us an edge.” The Nigerian government sector represents a particularly attractive opportunity, with agencies like Remita—responsible for handling transactions worth approximately ₦21 trillion annually—serving as a prime example of the market’s potential for startups. SeamlessHR sees itself playing a critical role in the government’s digital transformation by providing efficient, scalable HR solutions. However, breaking into the government sector is not without challenges. Government agencies typically rely on legacy systems that have years of accumulated data and integrations with other platforms. Migrating to SeamlessHR’s system could be a complex and costly process. But Lana is confident that the company can ease this transition. “Government organizations don’t need to switch all at once,” he said. “They can try out any of our individual modules before fully transitioning.” Another hurdle SeamlessHR will face is the long sales cycle often associated with government contracts. The public sector procurement process can be slow and bureaucratic, which could delay SeamlessHR’s revenue generation. Still, the potential for long-term contracts makes the effort worthwhile. In addition to expanding into the government sector, SeamlessHR is also exploring new technology integrations, including artificial intelligence (AI). Lana hinted at building an AI-powered recruitment agent that could conduct interviews, further enhancing the platform’s capabilities. As the company looks to the future, it remains focused on helping Nigeria’s public sector modernize its HR functions. SeamlessHR’s ability to overcome bureaucratic complexities, win government contracts, and migrate public institutions off legacy systems will determine its success in the sector. SeamlessHR raises $9 million Series-A extension from Gates Foundation and Helios Venture
Read More- February 5 2025
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Cohort-based Tech4Pride fellowship is creating a safe learning space for queer tech professionals
In Nigeria, the tech industry, with its promise of attractive salaries and global opportunities, offers young people a career path to financial freedom and a more equitable future. A plethora of virtual and physical learning spaces have emerged across the country, providing a range of training options, from free to paid, in coding and non-coding tech skills. Yet, pervasive societal biases against marginalised groups, particularly gender and sexuality, continue to seep into even this seemingly progressive industry. While women-only training initiatives have gained traction, the unique challenges faced by queer people, who often encounter hostility in diverse learning environments, remain largely unaddressed. In 2021, the Center for Health Education and Vulnerable Support (CHEVS), a human rights organisation focused on queer people, launched Tech4Pride, a fellowship that exclusively trains queer people in in-demand tech skills such as data analysis, software development, and marketing. Tech4Pride is one of the few initiatives in the country teaching queer individuals coding and non-coding skills. The cohort-based fellowship has trained over 100 people and placed 76% of them in jobs, according to Kenny Owen who heads the cohort-based fellowship. It is also working to include mentorship opportunities to connect tech talent to established queer founders or tech executives for career development. During their training, Tech4Pride fellowship members develop tech projects presented at graduation. These projects often address unique challenges faced by the queer community that are typically overlooked due to their specific nature. They include apps for HIV aftercare, menstrual cycle tracking, security alerts, police interaction aids, and identity verification to combat queerbaiting on social media platforms. “We want to replicate the same support that women-focused communities in tech provide for their members,” Anita Graham, a CHEVS co-director, told TechCabal. The immediate goal of increasing tech skills among queer people is economic empowerment unrestricted by location. “Queer people seek financial freedom [especially] through transferable skills unrestricted by location,” Graham said. Queer people often migrate to countries with more favourable LGBTQIA+ laws to escape persecution and discrimination in countries like Nigeria where queerness is criminalised. With globally in-demand tech skills, queer people can increase their potential for migration. Another goal is to increase inclusivity within the tech ecosystem. Having more queer people as tech operators and founders provides a unique perspective, allowing for the development of solutions that address the specific challenges faced by the LGBTQIA+ community. While there is extensive research on the experiences of women in education and tech, little to no research exists on the experiences of queer people in these fields in Africa. Graham explains that the need for the queer-focused fellowship was identified through the lived experiences of queer Nigerians. Conversations with queer communities, key informants, and focused groups show that there is a low completion rate of physical and virtual tech skills training among queer people, she said. One highly placed manager at HNG—a popular tech skill acquisition programme—who declined to be named to speak freely, told TechCabal that though he thinks “what you learn and who you are necessarily correlated,…there could be some discrimination in offline training.” Chiamaka Adewu*, who recently founded a women-focused tech skill empowerment community, said marginalised groups often feel uncomfortable in diverse learning spaces, which can negatively impact their performance. Similar dynamics exist among women and even religious groups who have created their communities for learning and support. “Communities are incredibly powerful, and it can’t be overstated how much safer people feel among those who share their experiences and beliefs,” she said. Graham noted that in diverse tech skills acquisition programmes that require physical attendance, the unconventional fashion choices of queer people often lead to assumptions about their sexual orientation, shaping social interactions. Individuals who express themselves in ways that challenge traditional gender norms—including dressing in masculine clothing— face heightened risks of physical violence. Homophobic remarks, slurs, or physical harassment can create a climate of fear and intimidation, making it difficult for queer people to focus on their studies. One male queer person who identifies as a femme told TechCabal that they felt a pressure to be unnecessarily amusing or social to distract people from picking on their feminine traits. While virtual learning spaces can offer physical distance, diverse online training spaces are not immune to discrimination. Online activities required by virtual classes can expose students’ digital footprints, making them vulnerable to harassment. As Graham explained, “Sometimes, fellow students find their digital footprint on social media where they are more expressive of their sexuality, and that has often led to outing, attacks, doxxing, and cyberstalking.” While initiatives like Tech4Pride play a crucial role in promoting inclusivity, their sustainability often hinges on the availability of external funding. This reliance on grants and donations can be risky. Throughout 2024, Tech4Pride paused enrollment to focus on fundraising. The initiative did not run any cohort training this year—the third cohort has been deferred to 2025. A CHEV’s spokesperson said the company raised money this year but declined to indicate how much. A commercial model would be more sustainable. Edtech startups and skills acquisition initiatives by for-profit businesses should consider the unique needs of queer trainees. However, one tech boot camp founder, who asked to remain anonymous to speak freely, explained that the tech ecosystem, while more open-minded than many other sectors, hardly prioritises the specific needs of LGBTQIA+ groups. “There is just too much of a spectrum in Nigeria – we have very conservative people to very liberal people. If the boot camp is too liberal-friendly, you lose the conservative people,” they said. *Names have been changed to protect the person’s identity.
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