- February 6 2025
- BM
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 “Blockchain presents a unique opportunity for many parts of Africa to leapfrog outdated infrastructures and democratise access to financial tools with more decentralisation and transparency,” Eli Ben-Sasson, StarkWare CEO and co-founder said.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.
Read More- February 5 2025
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Polaris, Keystone exploring mergers as Nigeria’s capital rules encourage consolidation
Nigerian commercial banks began raising capital in 2024 to comply with the Central Bank of Nigeria’s (CBN) new capitalisation requirements and while tier-1 banks have raised over ₦1 trillion on the stock market, smaller banks are considering mergers and acquisitions to meet the March 31, 2026 deadline. At least three commercial banks, including Polaris and Keystone, are currently exploring potential mergers, according to multiple people familiar with the matter. These discussions are still in the early stages, and while the exact capital requirements for these banks remain unclear, both banks need to raise additional funding after the CBN raised capital requirements tenfold in March 2024. Polaris Bank had a capital base of ₦50.43 billion according to its 2022 financial statements. To meet the new ₦200 billion capital requirement for national banks, it will need to raise ₦150 billion. The exclusion of retained earnings from qualifying capital adds an additional hurdle for banks in meeting the new regulations. While Keystone Bank’s financial statements are not publicly available, it is expected to face a similar challenge. Polaris Bank did not immediately respond to a request for comments. Keystone Bank did not immediately respond to a request for comments. Mergers have historically been a common solution to bank recapitalisation efforts, and this trend is expected to continue. In August 2024, the CBN approved a merger between Unity Bank and Providus Bank, creating a new entity with a balance sheet of up to ₦3 trillion. The last major recapitalization in Nigeria, in 2004, reduced the number of banks from 89 to 25. Credit ratings agency Moody’s expects the new capital requirement rules to “drive significant consolidation within the sector.” KPMG noted that while concerns such as loss of identity, ownership dilution, and cultural mismatches make mergers less attractive, several banks will inevitably have to pursue this option to meet the new capital requirements. A merger could offer a strategic lifeline for Polaris and Keystone, both of which have faced significant regulatory challenges. In January 2024, the Central Bank of Nigeria (CBN) sacked the board of directors of Union, Keystone, and Polaris banks, citing infractions ranging from “regulatory non-compliance to corporate governance failure.” A special investigation into the banks’ ownership claimed former CBN governor Godwin Emefiele allegedly acquired Union Bank and Keystone through proxies with “ill-gotten wealth.” For the CBN, Nigeria’s macroeconomic challenges have highlighted the need for “stronger and more resilient banks” that can help the country reach its goal of a $1 trillion economy by 2030, a key priority for President Bola Ahmed Tinubu’s administration. Banks with larger capital bases will be better equipped to extend more credit to individuals and businesses. Nigeria’s biggest banks including Guaranty Trust, Access Bank, and Zenith Bank have raised fresh capital to meet the regulatory requirements. On January 6, GTCO, a Nigerian banking group with a market capitalisation of ₦1.71 trillion, raised ₦209 billion in the first phase of its recapitalisation plan. Zenith Bank, another tier-1 lender, raised ₦350.4 billion through a rights issue and public offer.
Read More- February 5 2025
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IBM exits Nigeria and key African markets, transfers operations to MIBB
American technology company IBM has ended its operations in Nigeria, Ghana, and other key African markets, transferring its regional functions to MIBB, a subsidiary of Midis Group, a multinational IT and telecommunications conglomerate operating across Europe, the Middle East, and Africa. This move comes as part of a new operating model that IBM will implement in select African countries, effective April 1, 2025. MIBB will market and sell IBM’s products and services across 36 African countries, giving MIBB’s sales network direct access to IBM’s software, hardware, cloud, and consulting offerings. This partnership is expected to boost innovation and growth in the region, with MIBB taking over the responsibility of IBM’s operations, support, and local customer relationships, the company stated in an email to TechCabal. Having been in Nigeria for over 50 years, IBM was integral to the technology landscape, providing infrastructure and consulting services to critical industries such as banking, telecommunications, oil and gas, and government. In particular, the company’s high-end storage and computing solutions were widely used by major banks like Zenith. However, increasing competition from companies like Dell and Huawei—both of which have expanded their footprint in Nigeria’s banking sector—has led to a shrinking client base for IBM. Beyond the challenges in Africa, IBM has faced financial difficulties globally. In 2024, the company reported a 2% decline in consulting revenue to $5.18 billion, while infrastructure sales dropped by 8%. Despite these setbacks, IBM reported a 1% overall revenue increase, reaching $17.55 billion, driven by a 10% growth in software sales, which climbed to $7.92 billion. IBM also posted a net income of $2.92 billion in the fourth quarter and expects at least 5% revenue growth in 2025, bolstered by projected free cash flow of $13.5 billion. Although IBM’s departure from West Africa marks the end of its direct operations in the region, the long-term impact on local businesses and government partnerships remains uncertain. While the transition to MIBB may offer new opportunities for innovation and support, it also presents challenges for businesses that have relied on IBM’s products and services. The full effect of this shift will likely unfold over the coming months as the African tech ecosystem adjusts to the new operational model.
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- February 5 2025
- BM
TechCabal Daily – Bento lays off its tech team
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Join the TechCabal community on TikTok! We’re bringing the conversation about African tech to a new level with exclusive content, behind-the-scenes glimpses, and more. Follow us @techcabal_ and let’s build the future of tech together. Safaricom and Kenyan banks push Pesalink as national payments backbone Bento lays off its entire tech team over protests for delayed salaries Nigeria launches National Broadband Alliance to boost internet Inside the lives of Chowdeck and Glovo superusers World Wide Web 3 Events Banking Safaricom and Kenyan banks push Pesalink as national payments backbone John Gachora, Chairman Kenyan Bankers Association (KBA), speaking at a past banking sector event. IMAGE | KBA Safaricom, Kenya’s largest telecom, and commercial banks are once again making their case known. After submitting a report to the Central Bank of Kenya (CBK) stating that building a new fast payment system (FPS) could cost the apex bank $200 million and take four years, both parties are trying to convince the CBK that upgrading the Pesalink should be the way to go. Safaricom and the KBA argue that improving Pesalink would be faster and cheaper than starting from scratch. However, a key concern is Pesalink’s transaction cap; the payment infrastructure, which currently allows only inter-bank transfers, supports $8.5 billion (KES1.1 trillion) in transactions, which raises questions about whether it can handle Kenya’s growing payment needs should other financial service providers come onboard. Compared to the payment infrastructure of some other African countries, this falls short. Yet, this cap exists to manage liquidity, ensuring that banks have enough cash to settle transactions in real-time. Because their liquidity isn’t evenly distributed—bigger banks like Equity, KCB, and Co-op Bank have stronger reserves—smaller banks will struggle to process large payments quickly. If Pesalink is upgraded and more financial service providers join, smaller banks will likely have to secure additional funding or seek access to central bank liquidity to process high-value transactions to avoid a liquidity shortfall. Despite this, influential players in Kenya’s financial ecosystem still see the Pesalink upgrade as a win. It will immediately solve the country’s pressing lack of interoperability, a problem that has made it difficult to send and receive money across banks, fintechs, and mobile money operators. The KBA is pro-Pesalink because the system is already bank-owned and operational, which banks see as a practical alternative to a completely new FPS. Yet, in all these talks about the Pesalink versus new FPS debate, there’s one notable omission in discussions: fintechs. Kenyan fintechs—over 100 of them—have yet to comment on the matter that affects them. This is likely due to the absence of a unified body to present their opinions—or they could be engaging regulators behind-the-scenes. However, the talks concern them, but fintechs may not be speaking up to prevent scrutiny from the regulator. Yet, the gavel is firmly in the hand of the CBK: like the proponents, does it see Pesalink as a long-term solution for Kenya’s payments? Or, will carrying the weight of building a new FPS and suffering the fragmentation problem for another four years give it the relief that it wants? 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. Layoffs Bento lays off its entire tech team over protests for delayed salaries Bento ex-CEO Ebun Okubanjo Bento, a Nigerian HR tech and payroll management startup, just delivered a masterclass on what not to do as a startup leader. After delaying January salaries amid a financial crunch, founder Ebun Okubanjo abruptly laid off the entire tech team when they protested for delayed salaries owed in January 2025. This comes hot on the heels of public scrutiny and allegations that the company forged tax receipts and failed to remit millions in taxes and pensions. The result of the layoff is a stalled payroll system, a company in crisis, and a team of young engineers left stranded. Okubanjo, who resigned on January 30, defended the salary delay as “strategic” and treated the protest as resignations. He deactivated employees’ work emails without pay and offered to divide withheld salaries among those willing to stay—but no one accepted. Bento’s now-dismissed tech team, composed mainly of young engineers, had been with the company for just over a year. Their departure has severely disrupted operations, particularly payroll processing, which had already faced manual intervention due to payment processor issues. Despite the chaos, Bento claims transactions were intentionally halted to facilitate a transfer of platform credentials from Okubanjo to an interim overseer. However, at least two investors have denied knowledge of the company’s official stance. With employees raising concerns about the long-term impact on their careers, Bento’s latest crisis raises serious questions about the company’s future. The situation leaves little confidence in the company’s ability to recover. Telecoms Nigeria launches National Broadband Alliance to boost internet Image: TechCabal Nigeria is on a mission to boost its internet game with the National Broadband Alliance for Nigeria (NBAN), aiming for a whopping 70% broadband penetration by 2025. Spearheaded by the Nigerian Communications Commission (NCC), this initiative targets key locations like schools, hospitals, and even religious centres—because everyone deserves divine Wi-Fi speed. To make this dream a reality, NBAN is bringing together state governments, telecom giants, and infrastructure wizards. The pilot programme kicks off in eight states, while the NCC has sweetened the deal (or soured it, depending on your perspective) with a 50% tariff hike for telecom operators—on the condition that service quality improves within three months. No pressure! Meanwhile, MTN and 9mobile are teaming up for a roaming and spectrum-sharing deal, proving that even telecom rivals can be friends when it comes to better coverage. But challenges remain—low 4G and 5G adoption, multiple taxes, and, of course, the occasional infrastructure vandal. With NBAN pushing for regulatory streamlining and private-sector investment, Nigeria’s internet future is looking bright—hopefully
Read More- February 4 2025
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Bento abruptly lays off tech team following protest over delayed January salaries
Bento laid off its 10-person tech team on Friday after they protested founder Ebun Okubanjo’s decision to delay January’s salaries, according to three people familiar with the matter. The abrupt layoff came one week after the company was accused of failing to remit millions of naira in taxes and pensions and forging tax receipts for Lagos State customers. Okubanjo resigned on January 30, despite denying the allegations and in a statement purportedly sent by investors, the company claimed it was in the process of retrieving credentials from Okubanjo. However, at least two investors told TechCabal they did not see that letter. Despite Okubanjo’s apparent resignation, he continued communicating with Bento employees on January 31. It is unclear if he addressed the issues with employees who became worried when he informed them their salaries would be “strategically delayed” until they processed all pending payroll for customers. “It’s January, and everyone is going through it financially,” an affected ex-employee wrote in a Google Chat message reviewed by TechCabal. “Even amidst all the chaos, we’re still here working without knowing where the company is headed. The team has collectively agreed to halt all operations until we get paid,” the same employee wrote. Okubanjo emphasized Bento’s history of prompt salary payments, even for short-term employees. He claimed the delay was a strategic measure anticipating resignations due to the ongoing controversies. When employees refused to get on with work, Okubanjo treated the protest as resignations, deactivating the employees’ work emails without pay. He claimed the employees were attempting to force his hand and offered to divide the withheld salaries among any employees willing to stay and process payroll. “If we end up with two employees making 3 million each, that is it,” he stated in the Google Chat messages. No one took up his offer, three people with knowledge of the situation said. “I don’t work for Bento so I am unable to respond on its behalf,” Okubanjo said in a statement to TechCabal. Bento’s now laid-off tech team consists primarily of young engineers in the early stages of their careers, most having been with the company for a little over a year. The last of the founding tech team resigned in 2024, one person claimed. Friday’s abrupt layoffs have stalled Bento’s operations, particularly with payroll processing for its customers. The company, which had previously automated salary disbursements, has had to manually process payments since 2024 due to issues with payment processors and underfunded accounts. “With all the engineers gone, there is almost no one to run payroll,” said one employee. However, in an email to customers, Bento claimed it intentionally halted transactions to facilitate a transfer of platform credentials from Okubanjo to an interim overseer. A Bento employee who asked not to be named for fear of reprisals said he only learned about the allegations about forged tax receipts on social media and was worried about the impact on his career. “I even took the company off my LinkedIn for a while,” said the employee, who spoke anonymously for fear of reprisal. He claimed other employees shared his concerns but were also shocked when Okubanjo deactivated their work emails.
Read More- February 4 2025
- BM
Inside the lives of Chowdeck and Glovo superusers: from 236 orders to ₦400k monthly
Chowdeck and Glovo users are weighing rising costs against convenience as food delivery becomes a daily necessity. At the beginning of 2025, *Anita, a Lagos-based marketer, resolved to reduce her reliance on food delivery apps to regain control of her budget. As one of Chowdeck’s top users in 2024, with 168 orders, she considers her app use excessive. Yet, like many New Year’s resolutions, this one quickly fell by the wayside. Two weeks into January, she was already 20 orders deep—exactly where she left off in 2024. In the face of mounting deadlines and a busy life, January was already a lost cause, and February was the next “try again” date. For users like Anita, food delivery apps like Chowdeck, Glovo, FoodCourt, and Heyfood are more than meal solutions—they are essential tools for navigating the chaos of modern life. While these apps provide convenience, the tension between convenience and price gnaws at their users. According to data from Picodi, Nigerian households spend 59% of their income on food—the highest of any country surveyed. For users like Anita, food delivery apps are a luxury that comes with an ongoing internal debate: Are they worth it? For many, the answer is yes. “I’m not happy with how much I spend on food, but there’s nothing I can do,” Anita admits. She juggles a social media marketing role and university classes, and for someone constantly on the go, the time saved by food delivery apps is invaluable. It’s a humorous product-market fit: customers who can’t live without the apps making doomed-to-fail resolutions about quitting. But not every user frowns at the cost. Take Ada, for example. In 2024, she placed 283 orders on Chowdeck but has no qualms about the growing expense. “Time is money, and Chowdeck saves me a lot of time,” she says. Before her recent graduation, Ada balanced a demanding job as a product designer at a venture-backed beauty-tech startup with university classes and content creation on LinkedIn. Her days were packed with meetings, deliverables, and tight deadlines. In her world, time is at a premium, and Chowdeck provides a precious few extra hours every day. Ada’s experience is one of predictability. She orders from the same restaurant almost daily, knowing exactly what to expect. It’s an experience she values deeply—reliable, efficient, and hassle-free. “I don’t care about variety,” she says. “I just want to know my food will be there when I need it.” Yet, nothing is perfect. As with everything that gets a lot of use, they are users who are hyperaware of the limitations of food delivery apps. Fayokunmi, another power user who placed nearly 300 orders in 2024, is considering switching to Glovo after a frustrating experience. His regular order—a hearty meal of Amala with Ewedu and Gbegiri—had always been a satisfying ritual until a recent issue: the restaurant started separating his Gbegiri and Ewedu into two plates and charging him extra for the split. Despite leaving multiple notes asking them to plate his food together, the problem persisted. But his main gripe wasn’t the additional cost—it was that when he contacted customer support, the app deferred to the restaurant, saying nothing could be done. For Fayokunmi, the issue wasn’t just about food or cost—it was about being let down by an app he had relied on for years. The lack of resolution from Chowdeck’s support team left him feeling alienated, he claimed, but he’s not ready to give up on food delivery apps altogether. His reluctance to ditch the app speaks to a larger truth about food delivery apps in Nigeria: they’ve evolved from luxury services to vital productivity tools. For users like him, Ada, and Anita, these apps aren’t just about food—they’re about saving time in a world where every minute counts. This shift in how people view food delivery apps is part of a broader trend. In a world where work and life demands are ever-growing, apps like Chowdeck and Glovo have embedded themselves into daily routines, making them more essential than ever. But this growing dependence comes with challenges. As food delivery services become more critical to people’s lives, they also face higher expectations and increased scrutiny. Providing convenience and consistent quality will be key to staying relevant in a contested market. Apps that can adapt quickly to user frustrations while keeping their core value proposition—time savings and convenience—intact will continue to thrive in the competitive food delivery landscape. This highlights a key factor super users take seriously: variety. While users often develop loyalty to a single restaurant, a broad selection is crucial in attracting new customers and keeping them engaged. Chowdeck, which claims to have a million users, seems to have mastered this. Six out of ten “super users” say the diverse restaurant selection drives their preference. This is likely driven by strategic partnerships, like a 2024 exclusive deal with Chicken Republic, which excluded other apps like Glovo and HeyFood from taking orders from the popular chain in specific prime locations. However, cost-conscious users trade variety for price. Take Adekunle Adeleke, a Glovo super user who briefly switched to Chowdeck for its more expansive selection of vendors. “Once [Chowdeck’s] delivery fees increased, I had to reconsider,” he told TechCabal. Delivery fees are a popular concern and can cost up to ₦1,000 on some apps, with service fees adding to the pile. To remain competitive, platforms must find a balance—the right unit economics to ensure they’re not losing money on every delivery while giving customers the perception of a good deal. Historically, food delivery companies have subsidised costs, charging users less than the service cost. The extent of these subsidies often depends on the company’s funding. Glovo, operating in 7 countries, has raised over $1 billion—over 200 times the amount raised by local competitors like Chowdeck, HeyFood, and FoodCourt combined. Yet well-funded companies like Bolt Food and Jumia Food have exited the segment, citing a race to the bottom and unsustainable unit economics. The players that have taken their place are
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- February 4 2025
- BM
Marketing and growth strategies for cross-border payment solutions in 2025
This article was contributed by Moyo Oluwatoyi, a Brand Storyteller at Kora, Eric Wainaina, General Manager, Conduit and James Cope, CEO CrissCross as part of the Emerging Trends in Cross-Border Payments: A Growth Guide for Stakeholders report authored by Aroghene Favour Ndulu and Paschal Okeke. A key marketing strategy for driving cross-border payment solutions in Africa has been leveraging existing payment methods/channels such as mobile money; local fintechs and banks have been clear winners in driving both paying and payouts. This has been a clear winner in quicker GTM and ultimately winning business for local and global companies looking to expand into the space. Another tactic is partnering with local and pan-African fintech influencers to promote products. Expanding into new markets is a common challenge: customers in those regions don’t know your brand yet, making it harder to earn their trust and attention. Collaborating with influencers with strong connections with your target audience can solve this problem. While this approach isn’t always the first thought in B2B marketing, it works. A great example is LemFi. Whenever they enter a new market, they team up with local influencers who are trusted voices in their community. This helps LemFi build awareness and credibility faster than traditional advertising campaigns could. The main thing here is to be deliberate, choose influencers whose audience aligns with your product, and create campaigns that feel genuine and relevant to the local culture. Tailoring messages to unique audiences Customise your messaging to align with each market’s language and cultural context. The continent is diverse, with people responding differently to marketing strategies based on cultural and behavioural nuances. One growth expert noted, “Some markets are more push than pull.” In other words, aggressive approaches may work in some regions but fail in others. To succeed, you need to understand how to communicate effectively with the audience in each country. For example, in Cameroon, where both French and English are spoken, a one-size-fits-all approach won’t resonate. Similarly, incorporating Swahili into your messaging in Uganda shows you’ve done your homework. Relying solely on English because you’re a Nigerian brand limits your impact. To grow, you need to think like a pan-African brand; your messaging must reflect that mindset. LemFi demonstrates this approach. A quick look at their Instagram page shows how they tailor content for each market, balancing local language and cultural relevance. The role of thought leadership Thought leadership plays a critical role in the market education of regulators and other stakeholders by breaking down the complexity of the industry and the many nodes around it. Most cross-border businesses are treated as remittance companies, yet they provide a different solution than what remittance companies offer. As such, thought leadership plays the role of demystifying this complexity, thus building confidence and trust. People buy from those they trust. And trust isn’t built on surface-level information; it’s built on actual knowledge and thought leadership. Sharing your unique perspective, the lessons you’ve learned, and the strategies that have worked for you differentiates you. Founder-led and expert-driven content cuts through the noise because it offers something Al can’t: authenticity, depth, and a personal touch. Something like this report. Measuring success for growth campaigns The metrics for evaluating fintech campaigns often depend on the brand, its business model, and the campaign’s specific objectives. However, some metrics consistently provide valuable insights. The most important measure of the success of a payment initiative is total payment volume. In the cross-border space, revenue can be driven by several external factors, so isn’t always the best gauge of performance. Consistent volume growth is a better measure of the relevance of a solution. There should also be appropriate monitoring of client numbers and margins. Partnerships and collaborations Partnering with market leaders in each market – regional or in-country plays a critical role. From elements such as insights into consumer behaviour, regulatory requirements, and market nuances to more important technical elements such as API integrations is a clear winning formula. Telco partnerships – all telcos are looking towards remittance and B2B cross-border payments as a growth lever for their business. They are an excellent channel for client acquisition and an effective distribution channel for fintech solutions for cross-border solutions. Key findings from a survey on growth strategies for 2025 Below are the results from a study on diverse payment stakeholders from payment companies across Africa. Their varied perspectives offer a comprehensive view of the growth strategies for 2025. What will be the most effective growth strategy for cross-border payments in 2025? Insights: According to our respondents, the top three strategies to drive growth in 2025 are partnerships, localised marketing campaigns, and leveraging blockchain for payments. Partnerships aid expansion and reduce operations costs, localised messaging ensures marketing communications resonate with the target audience, while blockchain will make payments faster and cheaper. Marketing channels to drive the most growth for cross-border payments in 2025 Insights: Growth marketers need influencers to drive growth for B2C brands. Content is king for B2B cross-border marketing; biogs, whitepapers, e-books, and more to position help to position products for growth. Other top channels are affiliate and performance marketing. Top tactics for customer acquisition for cross-border payments in 2025 Insights: To acquire new users in 2025, founders and product managers must ensure that their products provide fast transactions, competitive transaction fees, and multicurrency payment options. Enhanced security and fraud measures will also impact customer perception and trust. You can read the full report here. __________________ Moyo Oluwatoyi, a Brand Storyteller at Kora. Moyo has Over six years, he has specialised in crafting clear, compelling narratives about complex products — from fintech infrastructure to enterprise software. He enjoys making technical concepts simple and exciting. Eric Wainaina is a seasoned entrepreneur and business leader with over a decade of experience in fintech, startups, and digital transformation across Africa. He currently serves as the General Manager for Africa at Conduit, a cross-border payments platform, where he leads the company’s expansion efforts across the continent. James Cope, CEO, CrissCross. James has spent more
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