- April 18 2025
- BM
Why 12 Nigerian states with free Right of Way still lack telecom infrastructure
As of April 2025, 12 Nigerian states—including Zamfara, Katsina, Anambra, Kebbi, Nasarawa, Bauchi, Adamawa, Kaduna, Ekiti, Imo, Plateau and Niger—have officially waived Right of Way (RoW) fees to attract telecom infrastructure investments. While these states are willing to forgo vital revenue, they are discovering that waiving fees is only the beginning of a much larger and more complex equation. Lagos remains Nigeria’s undisputed leader with 7,864.60 kilometres of laid fibre as of 2023, despite charging RoW fees ranging from ₦850 ($0.53) to ₦1,500 ($0.93) per metre. Edo (4,892.71km), the Federal Capital Territory (4,472.03km), and Ogun (4,189.18km) also lead the way, none of which have eliminated RoW fees. Niger and Kaduna, two of the 12 fee-waiver states, are a rare exception, ranking fifth with 3,681.66km and sixth with 3,028.88km respectively in fibre deployment. This trend suggests that fee waivers alone aren’t the deciding factor for investment. States with strong infrastructure, investor-friendly policies, functional bureaucracies, and urban population density continue to attract more attention from telecom operators, regardless of RoW charges. Wole Abu, Managing Director, Equinix West Africa, told TechCabal that right-of-way is just one component in the cost breakdown of fibre deployment. “You must still estimate customer demand, as return on investment depends on revenue generation,” Abu said. “If you deploy fibre to a community with insufficient demand or purchasing power, the business case will fail. Waiving right-of-way fees is a good first step to incentivise investment. I believe stimulating local demand is another crucial step in this process.” States like Rivers, Akwa Ibom, and Imo have significant Gross Domestic Product figures but lag behind Lagos in both total and per capita terms. For instance, while Lagos boasts a GDP of ₦41.17 trillion ( $102 billion) with a GDP per capita of $6,614, Rivers State has a GDP of ₦7.96 trillion with a per capita GDP of $2,277, while Akwa Ibom’s GDP stands at ₦7.77 trillion with a per capita GDP of $2,962. RoW refers to the legal permission telecom providers need to lay down critical infrastructure like fibre optic cables and towers across public or private land. Without this infrastructure, broadband connectivity and digital services simply can’t scale. The Nigerian Communications Commission (NCC) and the Federal Ministry of Communications have repeatedly emphasised RoW reform as a catalyst for digital inclusion. However, real-world outcomes suggest that the elimination of fees hasn’t been enough to spark the infrastructure boom envisioned. The push to harmonise RoW charges across Nigeria began in 2013, when the National Executive Council (NEC) proposed a standard fee of ₦145 ($0.09) per linear metre. The goal was to streamline infrastructure deployment and reduce prohibitive costs. However, many states disregarded the directive, continuing to impose arbitrary and often excessive charges as a means of boosting internally generated revenue (IGR). It wasn’t until between 2020 and 2025, after a push by Isa Ali Pantami, then Minister of Communication and Digital Economy, that some states began aligning with federal recommendations by reducing or waiving RoW fees altogether. The decision to eliminate fees varies by state, often influenced by local conditions. In Niger State, the government waived RoW fees for a few number of operators in September 2024 primarily due to a surge in fibre cuts caused by extensive road construction. “Our governor is constructing 1,200 kilometres of roads in his first year in office. As a result, we’ve been experiencing numerous fibre cuts,” said Suleiman Isah, the state’s Commissioner for Communications Technology and Digital Economy. Between January and February 2025 alone, the NCC reported nearly 230 fibre cuts. That’s why the governor approved zero naira RoWas compensation.” The second reason, Isah noted, was to encourage telecom investments by lowering the barriers to entry. Despite the push for harmonisation, only 12 out of Nigeria’s 36 states have fully waived RoW fees. While the Federal Capital Territory (FCT) and Kwara State charge minimal fees—₦145 and ₦1, respectively—many others still present challenges. Telecom operators remain cautious, deterred by inconsistent regulations at the state and local levels. Even in states offering free RoW, the lack of uniformity, overlapping rules, and added levies create a complex and costly compliance landscape that limits large-scale investment. Securing permits for telecom infrastructure deployment in Nigeria remains deeply hindered by bureaucratic red tape. Lengthy approval processes at state and local government levels frequently cause significant delays. Even after installations are completed, some infrastructure faces disruption due to harassment or arbitrary shutdowns stemming from conflicting enforcement by multiple regulatory bodies. Adding to these challenges is the opaque implementation of RoW waivers. Many of these waivers are granted through executive orders rather than legislation, leading to inconsistent enforcement. Telecom operators often encounter hidden or informal “administrative fees” that drive up costs, despite the existence of official zero-fee policies. In some cases, local authorities impose levies that directly contradict their state’s waiver commitments, further undermining investor confidence and complicating deployment efforts. Despite the widespread challenges facing telecom infrastructure deployment in Nigeria, some states are taking proactive steps to streamline the process and reduce barriers for network operators. Niger State has introduced a more predictable framework: operators are required to pay a one-time, non-refundable application fee of ₦500,000 ($311.8). This fee covers both initial deployments and future expansions. Even if a company received its permit a decade ago, it does not need to pay again to expand its network. “If you applied 10 years ago and you want to expand your network today, there is no need to pay another fee. You just need to inform the state you are expanding,” explained Isah. Anambra State has adopted a different but equally facilitative approach. There, network operators can apply at no cost to the state’s physical planning agency. Applications are reviewed in collaboration with the Anambra State ICT Agency, which helps assess their technical and spatial feasibility. “We avoid multiple digging. We engage the interested telco to consider the possibility of leasing ducts to avoid digging multiple times,” said Chukwuemeka Fred Akpata, Managing Director of the Anambra State ICT Agency. Nigeria’s broadband growth also hinges
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- April 18 2025
- BM
Trademark dispute between Paystack and Zap Africa tests Nigeria’s IP laws
In the three weeks since Paystack launched Zap, its first consumer product, there has been a legal dispute with Zap Africa, a crypto startup, and dismissed claims that Zap lacked the Central Bank of Nigeria’s approval. In what has been a surprising first foray into the consumer market, a legal dispute between Paystack and Zap Africa could change how Nigeria’s legal system operates. It took only a couple of minutes after Paystack’s much-awaited launch before Zap Africa tweeted: “There is only one Zap in Nigeria and Africa.” The company would later accuse Paystack of trademark infringement, claiming that the use of the name “Zap” causes confusion among users and dilutes its trademark. “A lot of customers think we’re about to close down,” Tobi Asu-Johnson, Zap Africa’s CEO, told TechCabal. “It has affected business. We were in the middle of our round, and it chased away investors who were going to help us with our seed round. It has also made people in the company unsure about their jobs.” Shortly after its viral tweet, Zap Africa issued a cease and desist letter demanding that Paystack immediately stop using the name Zap. The March 26 letter asked Paystack to withdraw all product and marketing materials related to Zap, destroy any Zap-branded assets, issue a public apology, and cover Zap Africa’s marketing expenses—all within seven days. The letter was based on Zap Africa’s trademark filings across Classes 35, 36, and 42, according to documents seen by TechCabal. Class 35 covers advertising, business management, and retail, areas not directly tied to financial services. Class 36 covers financial and monetary services, while Class 42 relates to technology services. Class 35 was approved in October 2023, Class 42 in June 2024, and Class 36, the most relevant to Paystack’s Zap, in March 2025. The trademarks contradict initial claims by some publications that Zap Africa’s trademark was irrelevant to financial services, potentially strengthening Zap Africa’s legal position. But Paystack registered its trademark, Zap by Paystack, in December 2023 in Classes 36 and 42. The similarity between both companies’ names lies at the heart of the legal dispute, one that could potentially set a precedent and reshape how Nigeria’s trademark laws are interpreted and enforced in the tech sector. “There’s a possibility that the application was accepted on the grounds of honest concurrent use, a statutory justification also recognised under the law,” Ebube Nnachi, an intellectual property lawyer, told TechCabal. “Though having little precedence in Nigerian case law, this could have formed the basis for the Registrar’s decision to register the mark despite its similarity to a pre-existing one.” In response to Zap Africa’s tweets and letter, Paystack issued a cease and desist notice to Zap Africa seen by TechCabal, which demanded that Zap Africa immediately provide evidence of its trademark in Classes 9 (scientific, research and technological products class) and 36 (financial, insurance and real estate services class), cease all public communications about Zap Africa, and stop paying third parties to publish content about Paystack. The notice, issued on March 28, set a 48-hour deadline. Several legal considerations under the Nigerian trademark system come into play in this dispute. First, a trademark must be distinctive to differentiate one business’s goods or services from another. This is central to the dispute, as Paystack and Zap Africa both use the name “Zap”, which could lead to consumer confusion. “Since ‘ZAP’ is not inherently associated with finance, its use as a brand name in the financial sector may be viable,” Amosa Shukurat, an intellectual property consultant, said. “ However, distinctiveness is key—if a term is common or widely used in a specific industry, it may be challenging to secure trademark rights. Nonetheless, a term can acquire distinctiveness through consistent and prominent use, which could make it eligible for trademark protection over time.” Paystack has argued that it registered a distinct brand—“Zap by Paystack”—rather than the standalone word “Zap”, and that this reduces the risk of confusion. It also pointed out that “Zap” has been used by different entities over time, making exclusive rights to the word difficult to claim. More than 40 companies listed on the Corporate Affairs Commission (CAC) website include “Zap” in their business names. The term has also been trademarked by another proprietor as far back as 2008, long before the existence of either Paystack’s Zap or Zap Africa, said one Paystack employee who asked not to be named as they aren’t authorised to speak. Image source: TechCabal. ”In Nigeria, trademark rights follow the “first to file” rule, giving priority to the first party to register a mark,” William Umoh, a lawyer, said. “However, the Registrar may reject a later application if the marks are similar, in the same class, and could confuse. Despite this, similar marks might still get approved if they are stylised differently or the Registrar doesn’t find them confusingly similar.” Another key consideration is the classification of goods and services under trademark law. Both startups hold trademarks in relevant classes, which complicates either side’s claim. The timing of filings also matters in determining priority. Paystack filed its trademark in late December 2023, while Zap Africa filed a couple of months before Paystack. Nigerian trademark law typically grants rights to the first party to file, but prior use can sometimes override this rule. “Now that the cease-and-desist period has elapsed, either party is within their rights to initiate legal proceedings,” Nnachi said “ Should that happen, the outcome could provide judicial guidance not just on the scope of the Registrar’s discretion but also on the application and reliance on the defence of honest concurrent use in Nigeria.” The outcome of this trademark dispute will depend on factors like the distinctiveness of the marks, their class registrations, and the potential for market confusion. Given that both parties have failed to meet each other’s demands, it seems likely that the courts will have to decide whether any party has a legitimate claim to Zap.
Read More- April 18 2025
- BM
Safaricom takes on Starlink with aggressive 5G push in rural Kenya
The telco has slashed router prices and targets fibre-dark zones to reclaim upcountry ground. Safaricom has quietly escalated its efforts to counter Starlink by expanding 5G rollout into rural Kenya, the market the satellite internet service provider (ISP) was built to serve. Over the past six months, it has deployed tens of new sites in regions previously off its broadband map. Safaricom’s sales teams are targeting upcountry users with affordable, plug-and-play 5G routers bundled with flexible data plans and branded giveaways like free t-shirts. At least five customers in Western Kenya told TechCabal that Safaricom salespeople have been in the region since January, pitching the 5G router to them. “They signed me up in two minutes,” said Paminus Osike, a new user in Kenya’s Nyanza province. “Starlink’s initial cost is too high, and I like that this connection isn’t fixed, but I can move around with it.” The sales team that signed him up also sells power banks for KES 5,000 ($39) to help customers stay connected on the move. Another customer, who runs a small cybercafe business, told TechCabal that he compared Safaricom’s 5G router with a rival device and chose to keep Safaricom’s for its speed and larger data allocation. Safaricom is trying to reclaim ground where traditional ISPs underdelivered and where Starlink found early momentum. It is a shift from Safaricom’s past urban focus and shows a new push into low-average revenue per user (ARPU) regions. Starlink launched in Kenya in 2023 to connect areas where fibre and mobile broadband had failed. By late 2024, it was already the country’s seventh-largest ISP, with over 19,000 active subscriptions, mainly in remote counties like parts of the Rift Valley, where broadband coverage remains patchy. In 2024, Safaricom had proposed regulatory changes targeting satellite providers, arguing that licensing entities without a physical presence left the government with little control. The Communications Authority has not taken up the proposal, so Safaricom is now betting on price and broader access instead. Starlink’s demand has surged in urban centres instead, despite its pricing model which does not favour cheaper, pay-as-you-go purchases. In Nairobi, it paused new sign-ups due to limited capacity. The network delivers the same bandwidth regardless of population, so busy areas quickly hit performance limits. In response, Safaricom has doubled fibre speeds and introduced gigabit plans to meet the growing urban demand. It’s positioning itself as a cheaper and more adaptable option in cities where Starlink’s model falls short and in rural areas where Starlink is attempting to thrive. Price cuts to coincide with rural expansion In rural Kenya, people do not have disposable cash for internet services. Many are price-sensitive and can’t afford routers, which are seen as a luxury. Safaricom’s strategy of offering low-cost routers and flexible payment options aims to make 5G more accessible to these communities. Safaricom’s new 5G offer challenges Starlink on hardware and flexibility. Routers now sell for KES 3,000 ($23), down from KES 25,000 ($192), a huge price drop that coincided with its rural expansion. 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Some are sold door-to-door, with M-PESA payment options, mirroring sales tactics used by solar home system companies. Monthly plans start at KES 4,000 ($31) for 50 Mbps and go up to KES 10,000 ($77) for 250 Mbps. Starlink’s basic mini kit costs KES 27,000 ($208),
Read More- April 18 2025
- BM
Young Nigerians are spending 2-3x more on data; they’re not happy about it
When Juliet, a mass communication student at Covenant University, first subscribed to MTN’s ₦3,500 ($2.19) monthly plan, she got 15GB — enough to last her about a week. Now, for ₦5,000 ($3.13), she gets 14GB, which barely lasts one week. “Roughly, I spend up to ₦20,000 ($12.5) monthly on data,” she says. “The data [tariff] increase is crazy, to be honest.” Juliet’s story is far from unique. Across Nigeria, youths are reeling from the recent surge in mobile data and airtime tariffs. The hike, which coincides with broader inflation and economic instability, has forced Nigerian youths to make sharp sacrifices, including choosing between data and food. “We just work to be able to buy data,” Juliet says. “Before, it was food. Now, it’s data.” For many, like Moyo, a research assistant, the frustration is undeniably evident. She used to spend ₦5,000 – ₦7,000 ($3.13-$4.38) monthly on data. Now, she pays double: ₦10,000–₦15,000 ($6.26-$9.39). “It feels like I was sent to this earth for data purchase. It’s exhausting,” she says. Drastic lifestyle change The frustration Nigerians feel stems from the fact that they have to cut costs on many things they love to have enough money to spend on data. Abuja-based product manager, Joshua, had to cut down how much he spends on “Black Tax” — the financial support many young Nigerians give to their family members — due to the tariff hike. When asked how he feels about the hike, he says, “like a Nigerian: defeated and disappointed.”Before the hike, Joshua used to spend ₦37,000 ($23.15) on data. Now, he spends ₦39,000 ($24.40). He used to purchase data on three SIMs from different network providers, but now, he purchases data from just two network providers. “I haven’t been consistent with [purchasing data for] my brother’s router like I used to before the tariff hike,” he says. For young professionals like Emediong, a robotics process automation engineer and a part-time photographer, the new prices are particularly painful. Considering the large file transfers, design uploads, and streamed tutorials, his monthly data needs are high. To cut airtime costs, he now uses WhatsApp for most of his calls. Unfortunately, airtime is not the only thing Emediong has had to cut costs. “I used to have some snacks to nibble on sometimes while working. It helped to keep me going till I could get food. I had to cut all that because of the increased data expenditure.” Moyo admits that she has had to reduce how she streams and downloads “unnecessary stuff.” She adds that it is hard because she mostly uses Instagram and TikTok, which are not “data-friendly.”Charity, a Covenant University student, says she has stopped buying takeout to free up funds for data: “I do more home cooking now.” Even tech bros are no exception to the lifestyle change. Tobi, a software engineer, says that his data bill has quadrupled from ₦5,000 ($3.13) to ₦20,000 ($12.5). “I am not coping, to be honest,” he says. He reveals that his “fun budget” has taken a hit. Wi-Fi to the rescue of young Nigerians? Young Nigerians have been forced to find alternatives to cope. Frank, an Abuja-based associate lawyer, cut his food expenditure to spend more on data. “I’m not coping at all,” he says. “Monthly, I use other people’s Wi-Fi a lot.” He now spends ₦11,000 ($6.88) monthly on data, up from ₦6,000 ($3.75). “I feel bad about it,” he says. Frank is not the only one who relies on other people’s Wi-Fi to survive. Ayo, an architecture student at Covenant University, says she always uses her school’s Wi-Fi at strategic points when the need arises. At other times, she uses a Glo network family data plan. “It is done collectively as a family expenditure, like electricity bills,” she says. Ayo’s workaround to data expenses makes her one of the few young Nigerians who have not been affected by the tariff hike: “I am not exactly satisfied about the hike in [terms of] general purchasing prices, but sincerely, data [purchase] hasn’t been my primary concern as regards expenses.” “Why didn’t God just create me to be an American?” A few outliers like Ayo are insulated from the blows of the tariff hike. And then there’s Miracle, a banker, who can not relate to Ayo’s reality. Miracle sums up her frustration with the kind of blunt exhaustion many feel but few articulate so starkly: “This regime is the worst of the worst. Why didn’t God just create me to be an American or something?” Miracle is among millions of young Nigerians who need exactly that — a miracle — just to afford the luxury of being online. *Exchange rate used: ₦1,600 = $1
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- April 18 2025
- BM
TechCabal Daily – EVs, but make them power banks
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! It’s Friday. Just to repeat: it’s Friday. We made it. Get caught up on the tech news, log off, and enjoy your weekend. Some Hertitude news before you get into the newsletter: Hertitude is a safe space for women to relax, connect, and dance the night away after the hustle of Q1 2025. Get tickets for yourself and your loved ones at 20% off with the code TECHSIS25. South African EV startup Zimi raises $320,000 Starlink is now in Lesotho—but at what cost? Egypt cuts rates for the first time since 2020 Funding Tracker World Wide Web 3 Opportunities Startups South African EV startup Zimi raises $320,000 Image Source: Zimi Imagine a South Africa where parked electric vehicles (EVs) double as power stations— feeding energy back into homes, businesses, and even the national grid. That future sure looks brighter. Zimi, an EV charging startup, has secured $320,000 (R6 million) in grant funding from the Energy and Environment Partnership (EEP Africa Trust Fund) to make that future a reality. The startup will investigate and develop real-world pilot applications to test its vehicle-to-grid (V2G) technology, a technology that allows electric vehicles to charge from the power grid and send electricity back when needed. This groundbreaking innovation comes at a crucial moment for South Africa. With escalating electricity prices and grid instability impacting daily life, V2G technology offers a compelling solution: turning fleets of electric vehicles into backup energy sources. Selected as one of just 32 projects funded out of 530 applications, Zimi aims to build a solution that works for customers without compromising grid stability. Zimi’s long-term business model is to partner with major logistics providers to support their transition to electric vehicles, helping them reduce both operational costs and carbon emissions. The V2G model will play a key role in enabling this shift. With global automakers introducing bi-directional charging capabilities, like the recently launched Volvo EX90, Zimi’s vision is gaining momentum. If Zimi’s innovation is successful, this effort could prove that the future of energy is about smart, sustainable circulation. Get the best African tech newsletters in your inbox Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Bouvet Island Brazil British Antarctic Territory British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Canton and Enderbury Islands Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos [Keeling] Islands Colombia Comoros Congo – Brazzaville Congo – Kinshasa Cook Islands Costa Rica Croatia Cuba Cyprus Czech Republic Côte d’Ivoire Denmark Djibouti Dominica Dominican Republic Dronning Maud Land East Germany Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories French Southern and Antarctic Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Honduras Hong Kong SAR China Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Johnston Island Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau SAR China Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Metropolitan France Mexico Micronesia Midway Islands Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar [Burma] Namibia Nauru Nepal Netherlands Netherlands Antilles Neutral Zone New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island North Korea North Vietnam Northern Mariana Islands Norway Oman Pacific Islands Trust Territory Pakistan Palau Palestinian Territories Panama Panama Canal Zone Papua New Guinea Paraguay People’s Democratic Republic of Yemen Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Réunion Saint Barthélemy Saint Helena Saint Kitts and Nevis Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Korea Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syria São Tomé and Príncipe Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu U.S. Minor Outlying Islands U.S. Miscellaneous Pacific Islands U.S. Virgin Islands Uganda Ukraine Union of Soviet Socialist Republics United Arab Emirates United Kingdom United States Unknown or Invalid Region Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Wake Island Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Åland Islands ?> Gender Male Female Others TC Daily Events <!– Next Wave –> <!– Entering Tech –> Subscribe Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. Internet Starlink is now in Lesotho—but at what cost? Image Source: Google In more Southern African news, Mosothos are reacting differently to the country’s recent licence for Elon Musk’s Starlink. Caught between a rock and a hard place, Lesotho granted Starlink a 10-year licence to operate in the country, letting go of its 30% local ownership criteria. This move was heavily influenced by US tariff pressure and a desire to improve the country’s ties with the US. ICYMI: The US had earlier placed a 50% tariff on the country’s exports before it was paused for 90 days. That move threatened to cut over 12,000 factory jobs. Although Starlink’s presence will improve internet penetration in the southern African country, civil watchdog groups are unsatisfied with the terms of the deal. Section Two, for instance, isn’t buying the pro-growth narrative. The group called the move “a betrayal,” citing the lack of transparency in the deal. The group worries that the country’s digital future is now entirely in foreign
Read More- April 17 2025
- BM
South Africa’s Zimi secures $320,000 to test turning EVs into power stations in South Africa
Zimi, a South African electric vehicle (EV) charging solutions startup, has secured $320,000 (R6 million) in grant funding from the Energy and Environment Partnership (EEP Africa Trust Fund) to test its vehicle-to-grid (V2G) technology in South Africa. Vehicle-to-grid (V2G) is a technology that lets electric cars send power back to homes, businesses, or the electricity grid when needed. EEP Africa, a leading clean energy financier in Southern and East Africa, selected Zimi as one of just 32 projects funded out of over 530 applications in its latest portfolio round. In a country like South Africa, where frequent load shedding and grid instability disrupt daily life and economic activity, V2G technology can turn parked electric vehicles into backup power sources to support homes, businesses, and the national grid. “The grant aims to investigate and understand the limitations and challenges of Vehicle-to-Grid (V2G) technology, develop real-world pilot applications to test V2G in practice, and ultimately create a commercial model that operates within existing grid constraints,” Michael Maas, Zimi CEO, told TechCabal. Zimi’s business model is to partner with major logistics companies to support their transition to EVs – a move aimed at cutting operational costs and carbon emissions. By integrating vehicle-to-grid (V2G) technology into this strategy, Zimi plans to offer fleet operators charging solutions and turn idle EVs into energy that can feed power back into their facilities or the grid. As EVs and chargers become affordable, Zimi sees this as starting a bigger shift. While it may take time for everyday consumers to come on board fully, the company is betting on early adopters like logistics fleets to lead the way. “Perhaps the most important factor is a proven track record – something we have established through our work with major logistics providers such as Bakers Logistics,” Maas said. The funding announcement follows Volvo EX90’s launch in South Africa – one of the country’s first electric vehicles equipped with bi-directional charging, a feature that enables vehicle-to-grid functionality.
Read More
- April 17 2025
- BM
TechCabal Daily – Laid off for doing too well
In partnership with Lire en Français اقرأ هذا باللغة العربية Wazzup! Here’s one lesson: if remontadas were real, we now know they don’t bleed white. Don’t stack up the odds against you. Let’s dive in. Kenya’s Tala lays off 28 employees Uber drivers must carry no more than two passengers Suspension of SASSA cards puts 28 million people at risk Nigeria is banking on AI, cybersecurity World Wide Web 3 Events Startups Kenya’s Tala lays off 28 employees Mumbi Annstella, Tala’s General Manager/Image Source: Tala Imagine losing your job because your company’s customers were on their best behaviour? Well, we mean, isn’t that what you’re hoping for if you work for a company that is frequently in the loan recovery business? It’s a weird position to be in—rooting for success, only to be let go because things went too well. That was the fate of 28 Tala employees who were let go this month. In digital lending, keeping a low loan default rate is how you stay capital-efficient. Repayments replenish the pool to lend again, and that’s the engine for revenue. At least Tala, the Kenyan micro-lending startup, says it will fulfill all its contract obligations to these ex-staff members post-employment. They will get their final pay and one-month severance payment, plus paid unused leave days. Still, there’s one suspicious thing: Tala didn’t disclose its current loan default rate, even as it touted repayment efficiency, making us curious about its methods in a digital lending space where high loan defaults are a feature. In Kenya, defaults on digital loans hit 40% in December 2024 and banks don’t have it easy either. What is Tala doing right? Kenya’s credit scoring system is not very advanced, so Tala sticks with verifying your SMS, bank transactions, and social patterns, before making lending decisions. It asks for these details before it processes loan requests, making it easier for its system to reject even a new user beforehand. This helps Tala avoid risk compared to most legacy and digital lenders that typically onboard new users with loan offers. However, in cases of prolonged defaults, Tala uses debt collection agents, showing it is not afraid to use force; you can argue ethics later. In Kenya, a bigger micro-lender, M-Shwari, charges 9% interest rate. Competing microfinance institutions (MFIs) charge over 20%, leaving Tala with a small window of opportunity with its initial low-cost loans which start at 4%. Its loyalty programmes also help to keep users coming back. In a space with expensive switching costs for customers, it is important to give price-sensitive Kenyans more reasons to stay out with one lender. Yet, the big question: can Tala sustain the momentum? Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. 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Uber South Africa announced on Tuesday that it has introduced passenger limits across its services, including its newly launched Moto service. The updated policy, aimed at
Read More- April 16 2025
- BM
Malobi Ogbechie could not ship his fonio affordably, so he launched a logistics startup
On a sunny day in mid-2020, Malobi Ogbechie stepped off a ferry into Lagos’ Apapa port. He paced the busy port for hours, asking dockworkers how to ship his small batches of fonio, a nutrient-rich West African grain, by sea to save on expensive air freight that was eating into his margins. Unable to afford shipping a full container, he asked around for shippers who allowed cargo sharing with other exporters—groupage, as it’s called. He found none. Five years later, Ogbechie is no longer a struggling exporter but a founder trying to solve this problem with Kadan Kadan, his logistics startup which lets small businesses export their goods in shared containers at a fraction of the cost of air freight. Kadan Kadan now serves tens of businesses, including ReelFruit, a leading food technology startup known for its dry fruit snacks. Early life and education in England In 2002, at the age of ten, Ogbechie landed in Somerset, England, a world away from the bustle of Port Harcourt in the Nigerian south, where he’d spent his early years. His parents, seeing education as a gateway to economic opportunity, enrolled him and his brothers in boarding school. “It was alright,” he recalled at Pitstop, the Lagos restaurant where we met. As one of the few Black students in their school, Malobi and his siblings navigated a subtle undercurrent of racism. “There were little racist jokes here and there,” he said, reflecting on a UK that, in the early 2000s, felt less inclusive than today. “A group of Black guys couldn’t walk into a building together without issues.” At first, Malobi admitted, this atmosphere created a “victim mindset,” the weight of which could’ve defined him had he not learned to shake it off. At the University of Bath, years later, he enrolled in European Studies with French and German, a program that promised language fluency and a deep dive into European politics and economics. “I speak both languages,” he said. The French came in handy in his later African travels. It was at Bath that Malobi began to see Africa as a continent sidelined in global markets. After Bath, he pursued a master’s in international relations at Regents University London. Malobi recalled an almost insufferable curiosity about the continent during mostly Europe-focused classes. “I could feel my questions made some students and lecturers uncomfortable.” After graduating, Ogbechie had a 3-month stint at a tech firm providing business training solutions but was fired due to a mismatch in corporate culture. “I had to learn how to fit in over time,” he recalls. He then secured a position at Panalpina, a global logistics company, as a business development manager for about 17 months, gaining initial knowledge of air and sea freight. Following this, he continued his career in business development roles at market research companies. Discovering fonio and returning to Nigeria While working in market research, Ogbechie discovered fonio, a small, millet-like grain native to West Africa, primarily grown in Senegal, Mali, Guinea, and Nigeria. He sold it to retailers in London; its nutritional value and African roots made it a unique product at the time. It was just a side venture until he decided to learn more, he said. His curiosity took him on a two-week journey across West Africa, through Senegal, Gambia, Guinea, and Sierra Leone, where fonio fields stretched under open skies. His French came in handy in the Francophone countries. The journey felt somewhat like a transformative privilege so that after returning to London, he quit his job and moved back to Nigeria to export the grain full-time. Kadan Kadan: the “little by little” solution Ogbechie’s return coincided with COVID-19 pandemic lockdowns that swept across the globe in early 2020. Even as global logistics bottlenecks intensified, he continued to source the grain from Nigeria and ship it to his handful of customers via air freight. “I was either breaking even or making minimal profit, just to keep customers abroad happy,” he explained. Frustrated by the expensive freight prices, Ogbechie looked for groupage services—sea freight logistics enabling small-scale exporters to share container space to cut costs—but found no solutions at the port. “I was asking people on the road if they knew anyone offering this service. No one did,” he said. In hindsight, the service did exist but was largely offline and hard to find organically. “There was a clear gap. Others like me would need this but wouldn’t know where to find it.” He continued to think about the problem, but only took concrete steps to create a shared container service in 2022 during a short agribusiness course at the Lagos Business School. Tasked with pitching a business idea, Ogbechie presented three concepts: processing kenaf (a versatile West African crop), a food export venture, and the shared container service, which won unanimous support. “Everyone backed the container idea,” he said. After months of research and networking, he launched Kadan Kadan in 2023. “Kadan Kadan” is a Hausa phrase that means “little by little.” Current operations and future plans Its model was straightforward: groupage, or shared containers, letting multiple businesses pool goods into one sea shipment. “We’re moving cassava flour, dresses, and more overseas,” Malobi said on Arise TV this month, “at a quarter of air freight’s cost.” Air freight to Houston costs $3,500 per ton of garri, while Kadan Kadan’s shared containers shipped the same for $520, covering port fees. The setup was digital, a web app that let clients track shipments, get quotes, and book space, reducing paperwork that bogged down operations in traditional startups. “The shipping industry isn’t very tech-enabled,” he noted, and his app aimed to change that by offering transparency where manual forms caused delays. It didn’t own ships or warehouses, keeping costs low by partnering with carriers—an asset-light approach enabling scalability through more clients and containers, leading to cheaper per-ton rates. The first container filled by 80% even without any paid ads, Ogbechie recounted. His rates undercut air shipping by two to three times. Though slower than
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- April 16 2025
- BM
Nigeria is banking on AI, cybersecurity to lead Africa’s digital future
Nigeria’s tech ambitions were on full display this week at GITEX Africa in Morocco, where the National Information Technology Development Agency (NITDA) pitched to the international audience a future shaped by artificial intelligence in Nigeria and cybersecurity, two pillars it hopes will define the country’s next phase of digital transformation. Kashifu Inuwa, NITDA’s Director General, made a case for integrating AI as a strategic layer in leadership and policy execution for governments and businesses across Africa. “AI is shifting the skills we value today, as well as the processes we use to do our daily work,” he said during a panel session at the main stage on Tuesday, April 15. “To drive strategic leadership, you need to be an AI-driven leader and find a way to use AI as a tool to create co-intelligence whereby you bring people and computers to work together to deliver your strategic vision as a leader,” he noted. It’s a bold proposition for a country that still struggles with the fundamentals, including broadband coverage and limited digital infrastructure. But NITDA is betting on a top-down push to position Nigeria and, by extension, Africa as a global force in AI governance and innovation. On Tuesday, April 15, Nigeria’s Minister of Communications, Innovation and Digital Economy, Bosun Tijani launched the country’s National Artificial Intelligence (AI) Strategy in Lagos. Nigeria’s AI push is backed by government ambition and funding from international partners. In October 2024, the ministry announced a ₦2.8 billion Google grant to promote AI talent development in Nigeria. Though critics have said Nigeria must address fundamental problems such as reliable electricity, food security, and poverty before pushing broader tech ambitions. But the country’s leadership sees AI as a historic opportunity to claim a stake in the global tech future. “We missed the first, second, and third industrial revolutions, but this fourth one, we must lead it and not just follow,” Inuwa added on the panel. Not just AI, but cybersecurity too In addition to its AI pitch, NITDA signed a Memorandum of Understanding with SecDojo, SAS, a France-headquartered cybersecurity training and upskilling company, for targeted capacity-building initiatives. This forms part of the regulator’s effort to enhance Nigeria’s cyber resilience. Nigeria is ranked as the 13th most vulnerable country to cyberattacks, according to Check Point Software Technologies’ December 2024 Global Threat Index. The deal will support the creation of a cybersecurity academy in Nigeria, with training programs, simulation environments, and curriculum development aimed at filling the global cyber talent gap. Image Source: NITDA. “Globally, we have the gap, and in Nigeria, we have a young population that if we harness well, we can train them and connect them with the global value chain to provide cybersecurity services and also to fill some roles and gaps in the global cybersecurity market,” Inuwa said at the MoU signing ceremony on Monday, April 14. Digital talent as export is a familiar theme from the Nigerian government, evident by the three million technical talents (3MTT) programme. While the need for talent is real, so is the question of sustainability. Inuwa himself noted that much of Nigeria’s current digital skills training is delivered through short-term acceleration programs. He’s now pushing for integration into the formal education system. “To prepare for the future, we must embed these skills into our national education framework,” he said, pointing to Cisco’s model of academic integration in Nigerian universities as a possible blueprint. In Marrakesh, Nigeria made its case. Whether it sticks will depend on what happens back home.
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- April 16 2025
- BM
UBA, Access, 8 others earn a record ₦674 billion from e-payments
Ten of Nigeria’s biggest banks recorded a 58% surge in e-payments income as digital transactions hit a record high in 2024, according to their latest financial statements. The increase, driven by higher transfer volumes, increased reliance on mobile apps, and card usage across retail channels, is reshaping the traditional profit model of banking in Nigeria. The banks—Access Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, Zenith Bank Plc, First HoldCo Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, FCMB Group Plc, Sterling Financial Holdings Company Plc, and Fidelity Bank Plc—saw their combined e-payments revenue rise to ₦674 billion ($419.7 million) from ₦428.6 billion ($266.6million) in 2023. UBA reported the highest value of ₦236.3 billion ($147.1 million), followed by Access with ₦178.6 billion ($110.9 million). Zenith, First HoldCo, GTCO, Wema, FCMB, Sterling, Stanbic and Fidelity recorded ₦80.5 billion ($ 50.4million), ₦76.8 billion ($47.9 million), ₦56.6 billion ($35.5million), ₦14.1 billion ($8.73 million), ₦13.7billion ($8.54million), ₦8.16 billion ($5.09 million), ₦4.36 billion ($2.71 million) and ₦4.19 billion ($2.61 million) respectively. Last year, electronic payment transactions processed through the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment (NIP) platform reached ₦1.07 quadrillion— the highest ever recorded from N600 trillion in 2023. This means that these banks earned ₦674 billion in processing ₦1.07 quadrillion in transaction volume. Depending on the channel and bank, charges used to range between ₦10 and ₦50 on transactions between ₦5,000-₦10,000. But on December 1, 2024, the federal government instructed banks and fintech companies to immediately implement a ₦50 deduction on electronic transfers above ₦10,000. Analysts say banks are increasingly turning to digital channels as a reliable source of non-interest income, and the strategic shift is driven by high inflation and interest rates, which have compressed traditional banking margins and increased loan risks. “Revenue from e-banking is now proving to be a vital source of income for Nigerian banks, as more people increasingly rely on digital channels,” Israel Odubola, a Lagos-based analyst, said. “What was once a supplementary stream has become a strategic imperative.” According to Gbolahan Ologunro, portfolio manager at FBNQuest Asset Management, the increase in e-banking revenue is one of the major justifications for the banks to spend more on IT-related infrastructure. “Providing exceptional customer experiences through banking channels will increase customer transactions on those channels,” he added. TechCabal reported earlier this month that six major Nigerian banks spent ₦268.7 billion ($171.5 million) on IT infrastructure and tech-related services in 2024, a 74.5% surge from ₦153.8 billion ($98.2 million) in 2023. Electronic transactions in Nigeria have witnessed significant growth in recent years, driven by factors such as the cashless policy of the central bank, increased internet and mobile phone penetration, and the development of innovative payment platforms like OPay and PalmPay. According to data from NIBSS, the total volume of NIBSS Instant Payment platform (NIP) transactions also rose to 11.3 billion from 9.7 billion. A further breakdown of the NIBSS data also shows that apart from NIP transactions, Point of Sale (PoS) volume increased to 1.45 billion from 1.39 billion, while its value rose to ₦79.5 trillion from ₦46.9 trillion. Tajudeen Ibrahim, director of research and strategy at Chapel Hill Denham, said the naira depreciation largely contributed to the increase in transaction value. “NIBSS is not only for local currency transactions alone. It is an interbank settlement. So, any foreign currency bank settlement would have influenced that number,” he added. The naira has lost more than 70 percent of its value against the dollar following two sharp devaluations since July 2023. At the official market, the naira depreciated from ₦463.4/$ on June 9, 2023, to ₦1,601.4/$ as of April 15, 2025. The surge in electronic transactions also contributed to Nigeria recording the steepest decline in cash transactions, surpassing six cash-reliant economies in the last decade, according to a report by global payment processing company Worldpay. From 2014 to 2024, cash transactions in Nigeria fell by 59%. With ₦674 billion earned from ₦1.07 quadrillion in transactions, Nigerian banks aren’t just adapting to the digital wave—they’re cashing in on it. As cash fades and mobile taps replace physical queues, e-banking has become the new financial frontier.
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