- February 13 2025
- BM
MAX laid off 150 employees in January amid EV push
Metro Africa Xpress (MAX), a Nigerian mobility financing startup, laid off about 150 employees, 30% of its workforce in January, according to two people familiar with the company’s operations. The cuts come as MAX kicks off plans to finance 120,000 electric vehicles (EVs) across Nigeria, Ghana, and Cameroon—thrice the combined number of electric and internal combustion engine (ICE) vehicles, motorcycles, and tricycles it financed in 2024. A MAX spokesperson told TechCabal that the restructuring was necessary for the company’s transition to exclusively financing EVs. Previously, MAX offered a mix of electric and ICE vehicles, some priced around ₦2 million (about $1,280) in 2024, and used a rent-to-own model with daily subscription fees. “This decision was not made lightly,” the company wrote in an email, emphasising its appreciation for affected employees and outlining support measures including health insurance and job placement assistance. However, MAX declined to comment on the number of jobs impacted. One laid-off employee told TechCabal that the termination email vaguely cited performance reviews, suggesting individual performance issues. “It wasn’t until later that I realized it was a mass layoff,” said the employee who asked not to be named to speak freely. The terminations were effective immediately and no monetary severance packages were offered. Beyond the layoffs, MAX has implemented cost-saving measures, including reduced energy consumption and generator usage at its offices, according to a highly placed staff who asked not to be named as they are not the spokesperson for the company. The company confirmed these measures, stating the aim is to minimise its carbon footprint for the sake of the environment. “We are investing significantly in energy sources to power our business locations and battery swap stations,” MAX said in an email to TechCabal. In November 2024, MAX partnered with PASH Global, a renewable energy and impact investment firm, to invest $10 million to develop a network of EV charging stations across urban centres in Nigeria. MAX, which previously manufactured its electric motorcycles, now sources them from original equipment manufacturers (OEMs) like Spiro. One vehicle costs as much as $900, the highly placed MAX employee told TechCabal. With a target of 120,000 vehicles, MAX faces significant capital demands to support its expansion. Since 2019, MAX has raised about $63 million, a mix of equity and debt financing, to fuel its growth. In 2020, the startup floated a ₦10 billion multicurrency bond ($22 million at the time) from which it secured a ₦400 million ($1 million) one-year fixed-rate note. Its last disclosed raise, in 2022, saw the company secure $24 million via a private placement under SEC Rule 506(b), allowing it to raise capital from “sophisticated investors” without public solicitation. Raising debt financing has allowed the company to minimize dilution. Founded in 2015 by Guy-Bertrand Njoya, Adetayo Bamiduro, and Chinedu Azodoh, MAX has undergone several strategic pivots. Starting as a delivery service, it later expanded into ride-hailing and now focuses on vehicle financing. This evolving strategy reflects the company’s efforts to adapt to the rapidly changing mobility landscape. Adetayo Bamiduro on how MAX achieved their 100 million-kilometre mark
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- February 13 2025
- BM
TechCabal Daily – Zambia takes a hike
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Our friends at Mind Capital have just launched a programme targeted at helping first-time and aspiring founders learn how to launch their startups better and faster by equipping them with the skills and knowledge they need to get started, such as knowing how to identify real market opportunities and having a repeatable system for startup success. The programme is totally free, and is remote as well. It also doesn’t need founders to have started building anything. All it needs is the founder’s commitment to learn. If you’re interested, apply here. Nigerian fintechs and the allure of remittances USAID shutdown: A $100 million setback for Kenyan startups Zambia hikes interest rate to 14.5% to curb inflation World Wide Web 3 Events Fintech Nigerian fintechs and the allure of remittances Image source: TechCabal For many Nigerian fintechs, the temptation of processing FX-based transactions has been impossible to resist. And you can’t fault them. FX-based transactions offer a lifeline of stable revenue to hedge against relentless naira devaluations. The market data is certainly tempting. In July, the country saw a record-breaking $553 million in remittance inflows—a 130% jump from 2023. With take rates of 1-1.5%, processing even a tiny fraction of that can significantly boost a startup’s bottom line. While this predictable revenue line can allow startups to stay afloat and re-strategise on their market approach after macroeconomic challenges, the eventual race to the bottom will leave few winners. As bigger, well-funded startups and global giants like Wise and TapTap re-enter Nigeria, already thin margins will further erode. Data from Flagship Partners, a global fintech advisory firm, shows a 20-30% dip in FX transaction margins over the last six years. Deep-pocketed players can also afford to spend $60-$120 to acquire each user, biding their time until the volume of transactions offsets those costs. Operating in multiple regions requires painstaking regulatory approvals, expensive compliance teams, and liquidity buffers. Stablecoins might help one day, but that reality is still far off. Smaller fintechs without scale face a steep uphill climb. Muktar Oladunmade, our fintech reporter, argues in his article that serving niche remittance corridors—like China-to-Francophone Africa—offers opportunities as low liquidity in those corridors brings higher margins. Fintechs can also add complementary services with remittance transactions to acquire and retain customers. It’s a high-stakes game, and only the most strategic will come out on top. But for now, the collective push into remittances will benefit consumers through more options and a possible price war. Afincran Connect: A Fintech Mixer by Fincra Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections. Nairobi | 18:00 – 21:00 EAT Limited spots—RSVP now. Economy USAID shutdown: A $100 million setback for Kenyan startups Image: USAID U.S. Agency for International Development [CC BY-SA 2.0], via Flickr. Alternative funding sources have long been essential for the growth of African startups. Given the continent’s relatively nascent tech ecosystem, there is less conviction about what strategies work, especially as customer behaviours continue to evolve. This uncertainty creates room for experimentation. However, experimentation requires capital, and institutional investors—the gatekeepers of venture capital—have increasingly turned their attention to a select few tech-heavy startups demonstrating strong revenue traction (typically those generating $1 million or more). In this context, alternative financing options have served as a form of “patient capital” that allowed these experiments to thrive, providing crucial support for startups. The recent shutdown of USAID funding has dealt a significant blow to Kenya’s startup ecosystem. This move has removed over $100 million in non-dilutive funding, which had been instrumental in scaling ideas and proof of concepts (PoCs) across critical sectors like healthcare, agriculture, and clean energy (climate tech). For over a decade, USAID’s Development Innovation Ventures (DIV) provided grants of up to $6 million to over 30 Kenyan startups, including BasiGo (electric buses), Maisha Meds (medical supply distribution), and SolarGen Technologies (solar-powered water purification). For many founders, especially those in impact-driven sectors that struggle to attract venture capital, this funding was a lifeline. Now, the funding gap created could push innovative startups into investment programmes that pressure them to scale prematurely, potentially setting Africa’s tech ecosystem back decades. USAID’s exit could stifle growth in sectors like climate tech, which had been attracting increased investment. Some might argue that risky capital is better than none, but for Kenyan founders, the aid cut-off means a tougher fundraising environment and a need to explore new financing models, such as local investors, African-focused funds, or alternative lending. The bigger question is: with USAID gone, who will fill its role in Africa’s tech ecosystem? Accelerators and tech hubs have tried, but recent exits, like Techstars, raise concerns. How Paystack protects your business from cyber fraud Discover Paystack’s many security features and best practices for fraud prevention. Learn more→ Economy Zambia hikes interest rate to 14.5% to curb inflation Image Source: Google On Wednesday, Zambia’s Central Bank raised benchmark interest rates by 50 basis points (bps) from 14% to 14.5% in a bid to curb inflation and fight the devaluation of its free-falling currency, the Kwacha. The move, the first rate hike since November 2024, comes as Zambia battles its worst drought in over a century, which has driven up food and electricity costs. Inflation remains stubbornly high at 16.7%—well above the central bank’s 6%–8% target range—and is expected to average 14.6% in 2025. The ongoing depreciation of the Kwacha, which has lost 8% of its value this year, is worsening inflationary pressures by making imports more expensive. For businesses and consumers, the rate hike means borrowing costs will rise, affecting everything from business expansion plans to household loans. Higher interest rates also aim to stabilise the currency, potentially easing import costs in the long run. However, with inflation expected to stay above target for at least two more years, the economic squeeze will persist. For investors, the rate hike signals Zambia’s commitment to tackling inflation and
Read More- February 12 2025
- BM
Fintechs rush for FX transactions will only benefit customers and startups with scale
Nigerian fintechs, drawn to the stability of dollar-based transactions, are increasingly building consumer-focused cross-border (FX) transaction products. While this collective push will benefit consumers through more options and a possible price war, it will erode already slim margins for FX-based transactions as startups compete in an over-saturated market. “Given the explosion of the different types of competitors (in the remittance space), we have seen a bit of a margin erosion in the take rates,” said Anupam Majumdar, partner at Flagship Partners, a fintech consultancy firm. “The margins have come down 20-30% in the last six years.” For fintechs, processing FX transactions provides stability in dollar terms, crucial for companies reporting revenue in dollars after multiple naira devaluations. To match 2023’s dollar-equivalent revenue, startups needed to grow their Naira earnings by over 66% in 2024. FX transactions are also growing. In August 2024, the Central Bank of Nigeria (CBN) reported that remittance inflows hit $553 million in July, a 130% increase from 2023 and the highest monthly total on record. Processing a fraction of this amount with take rates ranging from 1 to 1.5% represents a healthy revenue line for any fintech. While this predictable revenue line can allow startups to stay afloat and restrategise on their market approach after macroeconomic challenges, the eventual race to the bottom will leave few winners. “In the short term—say, two to three years—it makes sense. But in the long term, building a sustainable, scalable business in FX is very challenging,” said Kay Akinwunmi, a former founder of Zazuu, a defunct fintech marketplace for remittances. Regulatory uncertainty once presented Nigerian remittance startups with an opportunity as global companies left the country, but the CBN’s 2024 reforms—mandating naira payouts and adopting a willing seller, willing buyer model—have erased that wedge. With the regulatory gap closed, global players like Wise and TapTap have reentered Nigeria, intensifying competition against well-funded growth-stage startups like Lemfi, Nala, and Flutterwave. These startups serve many remittance corridors which increases their revenue base and creates a stickier user base. Customers often remain loyal if they see a company as a one-stop solution for sending money to different countries. For smaller startups, the capital requirements to set up operations in multiple countries are significant, especially in a sector prone to fraud. Multiple countries mean multiple licenses and highly experienced legal and compliance staff to handle reporting and compliance with regulators, which are costly. The need to partner with a foreign Paystack-like payment processor that can charge as high as $10,000 monthly to collect payments abroad also adds to a startup’s expenses. Exclusive: How Float’s lucrative but risky FX trades led to ₦5 billion in losses An oversaturated market strains unit economics. Spoilt with options, customers are expensive to acquire, and they remain fickle, willing to switch to competition with lower pricing. “In the long term, the big players are likely to win because they can sustain extended periods of offering discounted fees, which naturally attract customers,” Akinwunmi, now the CEO of CSL Pay, a Pan-African payment network, told TechCabal. “They can acquire customers for as much as $60–$120 per user and wait longer to recoup the customer’s lifetime value (LTV). For smaller fintechs, competing at that level is extremely difficult.” Smaller fintechs also have to deal with securing liquidity. For remittance transactions to work, startups have to be connected to two different financial institutions that can debit the sender and credit the receiver. “To successfully operate in cross-border remittances, a new startup must ensure it is connected to all major financial institutions—not just the top three or four in each market. Gaining access to as many as possible is critical for maximum reach on the recipient side,” Majumdar said. Obtaining liquidity for foreign currency payouts is expensive, particularly for smaller fintechs. Liquidity costs directly impact exchange rates offered to customers. If a fintech secures liquidity at a high cost, its rates become uncompetitive, pushing customers toward cheaper alternatives. However, partnering with aggregators or third-party providers like Kora or Fincra can help fintechs access multiple accounts through a single integration, allowing them to reach multiple accounts through a single integration. Stablecoins can solve this problem and larger startups like Stripe are betting on them to power payments but a reality where stablecoins can fully power transactions is still quite far off. Startups entering the remittance market can thrive by operating in niche markets or adding a complementary fintech service to processing FX transactions. Targeting specific corridors—such as China-to-Francophone Africa—can be a strategic move, as low liquidity creates higher margins. “For startups to stay competitive, they need to focus on niche corridors rather than trying to compete head-on with larger players,” Satoshi Shinada, a partner at Verod-Kepple, told TechCabal. “Even major players may not always have deep liquidity for certain niche currency routes, creating opportunities for smaller, more agile fintechs to gain an edge.” Startups can also process business-focused transactions as these offer higher margins due to increased regulatory scrutiny for large cross-border transactions but also come with higher compliance costs. The cost of KYC checks for onboarding a business can reach $50, according to a fintech executive who asked not to be named to speak freely. While Nigeria’s large consumer market might seem tempting for new entrants, a larger fintech like Moniepoint or OPay creating a remittance product can easily dominate the market due to their massive scale. Current market realities demand that smaller entrants focus on niche corridors or bundle FX offerings with other services to create stickiness and higher margins rather than build vanilla remittance products where scale wins and margins vanish.
Read More- February 12 2025
- BM
Madica invests $800,000 in four startups, expands footprint into North Africa
Madica, an Africa-focused early-stage investment firm, has backed four African startups with $800,000 in pre-seed funding. The investment comes as investors shift their focus toward businesses with strong revenue traction after early-stage African startups secured 9% of total venture funding in 2024. The selected startups include Medikea, a Tanzanian startup that provides access to instant healthcare services through its first-line clinics; Motherbeing, an Egyptian healthcare chat-based app for nursing mothers to get answers to health-related questions; Pixii Motors, a Tunisian e-mobility startup that builds electric motorcycles with swappable batteries; and ToumAI, a Moroccan startup that uses AI-powered voice analytics to help businesses extract insights from customer interactions. Each startup will receive $200,000. With the latest investment, Madica has funded eight startups since 2022, investing $1.6 million across its portfolio companies. The four startups will also receive hands-on mentorship, and their founders will participate in immersion trips to key local and global tech ecosystems. “What’s particularly exciting is that we set out to build a portfolio with at least 50% gender diversity in their leadership teams,” said Emmanuel Adegboye, Head of Madica. “We are currently exceeding that goal in addition to a significant portion of our portfolio having female CEOs.” Launched in December 2022 by global venture capital firm Flourish Ventures, Madica offers equity funding to startups with a minimum viable product (MVP) and founders working full-time on their ventures. Madica plans to invest $6 million in 30 African startups by 2025. Madica’s investments in Egypt, Tunisia, and Morocco mark the first time the investment firm is casting its net into the North African corridor. It previously only had Southern and West African startups in its portfolio, including NewForm Foods, Kola Market, GoBeba, and Earthbond. The investments in healthtech, e-mobility, AI, and SaaS startups demonstrate Madica’s focus on high-growth businesses working with emerging technologies and startups applying these technologies in established industries. Its other investments in quick commerce, food-tech, renewable energy, and B2B e-commerce also proves this. For Madica, success in these markets could open the door to profitable exits.
Read More- February 12 2025
- BM
USAID shutdown: A $100 million setback for Kenyan startups
President Trump’s executive order to shut down USAID has halted essential aid to vulnerable populations worldwide and cut off a significant stream of non-dilutive funding to African startups. Over the past decade, USAID’s Development Innovation Ventures (DIV) invested more than $100 million in Kenyan startups, supporting innovations in healthcare, agriculture, and clean energy. With the shutdown, that opportunity is now lost for many promising ventures. The DIV program has been a vital source of funding for over 30 Kenyan startups, providing grants ranging from $500,000 to $6 million to help scale operations and prove the viability of their ideas. For example, Pula Advisors, a Kenyan insure-tech startup, received a $1.5 million USAID grant in 2023 to expand its insurance offering to smallholder farmers in Kenya and Zambia. On January 24, the US State Department issued a directive to cut all aid, which could end grants vital for founders who face challenges securing venture capital. This is particularly concerning for those in the Kenyan startup ecosystem who have long relied on foreign development funding. Kenya, Africa’s ‘Silicon Savannah,’ has emerged as one of the continent’s leading startup hubs. In 2024, the country secured around $638 million in venture capital funding. However, assistance from development agencies like USAID has been integral to the growth of many Kenyan startups. This support has largely gone untracked, but its loss will be felt deeply across the ecosystem. BasiGo, an electric bus company, secured a $1.5 million USAID grant to expand to Rwanda, and Maisha Meds received $5.25 million to develop a platform for distributing medical supplies. Similarly, SolarGen Technologies received a $2.5 million grant to develop solar-powered water purification systems. As the ecosystem adjusts to the USAID funding cuts, another concern is the potential shutdown of the International Development Finance Corporation (DFC), which has also provided grants and loans to African startups. For instance, Ilara Health received a $1 million loan from DFC in January to improve its diagnostic platform, while other companies like M-KOPA and Twiga Foods have benefited from DFC debt financing. The USAID shutdown comes as the African startup ecosystem is undergoing a shift. In 2024, venture capital funding in Africa moved away from the dominance of e-commerce and fintech to climate tech—a sector that has seen increasing interest from impact investors. However, the Trump administration’s stance on climate change and environmental conservation may undermine these gains, threatening the growth of climate tech startups.
Read More- February 12 2025
- BM
MTN Nigeria’s 50% tariff increase affects four internet plans
MTN Nigeria’s 50% tariff adjustments, implemented on Monday, affected only four of the 18 internet plans offered by the network. Subscribers criticized the telco’s internet price adjustment, noting some of the internet plans were raised more than the 50% threshold approved by the Nigerian Communications Commission (NCC). However, a data pricing document reviewed by TechCabal showed that the 50% increase affected only four out of the 18 internet plans on the network. The changes included replacing the 2GB hourly bundle (previously priced at N200) with a 400MB hourly plan for N100—an effective price increase of 156%. The 400GB three-month plan, which was previously available for ₦50,000, was adjusted to 480GB for three months at a new price of ₦120,000, reflecting a 100% increase. The 2.5GB digital channels-only bundle—meant to support digital-only businesses—got a 50% increase with the price rising from ₦500 to ₦750. The biggest increase was on the 15GB Digital channels-only bundle previously sold at ₦2,000. It was adjusted to a 15GB PGW Weekly bundle and sold for ₦6,000 representing a 200% increase. An MTN Nigeria spokesperson told TechCabal that the bundles that had more than a 100% increase were heavily discounted previously to support a segment of subscribers for a specified period. MTN Nigeria dropped the price of internet calls by 14 kobo instead of the standard 24 kobo the market demanded. “What we have done now is to price the bundle properly since the period for the discounted price ended a long time ago. We then added the 50% tariff increase on the standard market price,” the spokesperson said. Out of the 18 internet plans listed on the document, 13 received less than a 40% increase. The biggest increase in this group is the 25GB monthly plan which was increased from ₦6,500 to ₦9,000.
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- February 12 2025
- BM
TechCabal Daily – Swypt right for crypto
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Join the TechCabal community on TikTok! We’re bringing the conversation about African tech to a new level with exclusive content, behind-the-scenes glimpses, and more. Follow us @techcabal and let’s build the future of tech together. Meta’s termination of 3,600 employees affected African offices Swypt launches Kenya’s first currency-backed stablecoin MTN Nigeria, SWIFT, increase internet prices by 50% Chowdeck’s Ghana gambit World Wide Web 3 Events Companies Meta’s termination of 3,600 employees affected African offices Image Source: Google. Meta is back at it again with another round of layoffs—3,600 employees worldwide just got the corporate breakup text. This time, the axe swung across Africa, Asia, and parts of Europe, but somehow, Germany, France, Italy, and the Netherlands dodged the chopping block. For those affected, the bad news arrives between February 11 and 18, 2025—just in time to ruin any post-Valentine’s Day optimism. Meta insists this is all part of a routine performance review. Translation? If you weren’t making the algorithm gods happy, you’re out. On the bright side, ex-employees aren’t walking away empty-handed. They’ll get 16 weeks of base pay, extra cash for years of service, healthcare coverage, career support, and even immigration assistance—because nothing says “new beginnings” like getting laid off and relocating. Meanwhile, Meta is going all-in on AI, because robots don’t ask for raises. CEO Mark Zuckerberg has dubbed 2024 the “year of efficiency,” which is corporate-speak for “let’s cut costs and automate everything.” The company is pumping up to $65 billion into AI infrastructure, data centres, and specialised chips, following the tech industry’s golden rule: when in doubt, throw money at AI. So, while Meta sees these layoffs as necessary spring cleaning, thousands of former employees across Nigeria, Africa, and beyond are left wondering what’s next. Maybe the AI overlords will be hiring soon? Afincran Connect: A Fintech Mixer by Fincra Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections. Nairobi | 18:00 – 21:00 EAT Limited spots—RSVP now. Cryptocurrency Swypt launches cKES, Kenya’s first currency-backed stablecoin Image source: TechCabal/Timi Odueso Three things are becoming certain in 2025: death, taxes, and one African country launching a digital currency. Kenya will follow in that stead after Swypt, a DeFi exchange platform, launched the country’s first stablecoin, cKES (Celo Kenyan Shilling—because it was built on the Celo blockchain). Swypt joins a growing list of Web3 startups, including Valora, Pretium, Fonbnk, Hurupay, Payd, and Clixpesa, that have integrated the stablecoin. The cKES stablecoin is the brainchild of a community initiative within the Celo ecosystem, supported by the Celo Africa DAO and Mento Labs. Mento operates a decentralised stablecoin platform designed to build stable digital assets on the Celo blockchain. The organisation aims to create stablecoins for different markets, with cKES joining other stable assets like cUSD (Celo Dollar), cEUR (Celo Euro), cREAL (Celo Real), eXOF (CFA Franc), and PUSO (Philippines’ stablecoin)—all built on the Celo protocol. The choice of Celo as its foundation is strategic; as a layer-1 network, Celo is among the cheapest protocols for deploying decentralised applications (dApps). Since its launch in 2017, it has reached 268 transactions per second (TPS) per 100 blocks—the 17th highest globally—and processed over 20 million transactions by 2023, making it one of the builder-friendly networks for payments dApps. Backed 1:1 by the Kenyan Shilling, cKES launched in May 2024 but has struggled to gain traction, despite its potential in remittance and cross-border payments. However, its debut on more on-chain platforms like Swypt increases its chances of adoption. With more platforms stepping in, they could pool resources to scale distribution and invest in marketing efforts to drive wider adoption. The stablecoin’s slow integration into Kenya’s crypto ecosystem comes at a time when the government is working to regulate and tax digital assets. While cKES is not government-backed or officially recognised by regulators, its success—or failure—could shape Kenya’s stance on private-sector-led stablecoin initiatives. How Paystack protects your business from cyber fraud Discover Paystack’s many security features and best practices for fraud prevention. Learn more→ Telecoms MTN Nigeria, SWIFT, increase internet prices by 50% GIF Source: Tenor Nigerians woke up to the shock that the country’s largest telecoms operator, MTN Nigeria, has increased its internet prices by 50% three weeks after the tariff hike. In January, the Nigerian Communications Commission (NCC), the communications regulator, approved the hike following months of lobbying by telecoms which have been feeling the crunch of the naira devaluation, price inflation, and tough business environment. The 50% hike means that Nigerians will either have to increase their monthly data budgets or downgrade to lower internet plans. While this change was expected after the NCC approval, it still took people by surprise as MTN Nigeria issued no formal statement or notice that it would raise its prices. SWIFT Networks, another internet service provider (ISP), also increased internet prices by 50%. While MTN Nigeria has raised its internet prices, other telecoms Airtel and Globacom have not followed suit. Airtel has mentioned it will increase prices gradually to lessen the impact on Nigerians, while Globacom is likely to raise prices later this month. Their delay in raising prices, whether planned or not, puts them in a favourable position. Nigerians may consider flocking to these telecoms, buying data from them at lower prices—before they go up—ushering more active users, increasing revenue per user, and giving Airtel and Globacom an unexpected, momentous advantage. For instance, ₦20,000 ($13.31) gets you 75GB of data on MTN, but the same amount buys 138GB on Globacom presently. While Airtel and Globacom seem to have a temporary advantage in the market, it depends on how long they can hold out and avoid raising prices. It also depends on whether this lucky situation will attract more active customers for them. Otherwise, they too, will likely increase prices quicker than we can recite the alphabet. Expand with Cedar Money Expand your business globally with Cedar Money! Our
Read More- February 11 2025
- BM
Meta’s ‘performance terminations’ affected Nigerian employees
Meta’s latest round of job cuts, which impacted 3,600 employees globally, has also affected staff in Nigeria and other African offices. Meta announced the terminations across its global workforce in an internal memo, with only employees in Germany, France, Italy, and the Netherlands exempted. Affected employees in Africa, Asia, and other parts of Europe will receive their termination notices between February 11 and 18, 2025. A Meta spokesperson for sub-Saharan Africa downplayed the cuts, stating they were part of the company’s routine performance-based layoffs. Meta declined to specify the number of affected African employees. “We have communicated transparently that, following our recent performance review cycle, we plan to exit our lowest-performing employees, the spokesperson told TechCabal. “We have the highest confidence in the fairness and robustness of our performance review process leading to these decisions, and impacted employees are being provided with generous severance packages.” The severance package for affected employees includes 16 weeks of base pay, plus an additional two weeks for each year of service. It also covers full payment for unused paid time off, six months of healthcare benefits, three months of career support, and immigration assistance. The terminations coincide with Meta’s intensified focus on artificial intelligence (AI), as the company shifts resources toward automation and greater efficiency. CEO Mark Zuckerberg has declared 2024 the “year of efficiency,” highlighting efforts to streamline operations and reduce costs in non-priority areas. Meta plans to allocate between $60 billion and $65 billion for capital expenditures in 2025, with a substantial portion directed toward AI infrastructure, data centers, and specialized chips to support advanced AI models. This reflects a broader industry trend, with major tech firms collectively planning over $300 billion in AI investments this year. The terminations primarily target employees who received low scores in performance reviews, with Meta tightening its internal efficiency standards. While the company frames this as a routine adjustment, affected employees in Nigeria, Africa, and beyond are now facing an uncertain future amid the tech industry’s rapid transformation.
Read More- February 11 2025
- BM
Chowdeck chooses Ghana for international debut
Chowdeck, one of Nigeria’s leading food delivery startups, shared its plan to expand to other African countries at the 2024 edition of Moonshot. The company’s first international foray will be to Ghana, and it may launch there as soon as March, one person familiar with the matter told TechCabal. The four-year-old company, which claims to have reached one million users and ₦30 billion in transactions in 2024, aims to reach about 52 cities across Nigeria and internationally by year’s end, according to a person familiar with the business. “Chowdeck wants all of Africa,” said a person close to the business, who declined to be named as they are not authorised to speak for the company. CEO Femi Aluko has hinted at these pan-African ambitions, stating in a recent interview that the company’s vision is to become the dominant “super app” for ordering anything, anywhere in Africa. Starting with just 319 users in its first month (October 2021), Chowdeck has rapidly expanded within Nigeria. Beyond food delivery, the company has diversified to include retailers of essential items like pharmaceuticals, shopping mall goods, and market produce, and earned a reputation for quick delivery. Chowdeck, which has over 10,000 delivery riders, operates in major Nigerian cities like Lagos, Ibadan, Port Harcourt, and Abuja. In February, the company began operations in Owerri, Enugu and Kaduna. However, Lagos remains its biggest market. Ghana presents an opportunity to replicate Chowdeck’s Lagos success. While the specific launch city in Ghana remains undisclosed, the company will face a competitive landscape. Urban cities like Accra, Tema, and Kumasi already host established players like Uber Eats and Bolt Food. Ghana’s market dynamics are both promising and challenging. The country boasts a growing, tech-savvy urban youth population and a projected food delivery market of $540.1 million by 2029, with a 16.66% annual growth rate. However, Ghana has also seen the exit of other delivery services. Glovo, despite reporting strong early growth in Accra (reaching “half a million euros” in monthly order value and 30-45% month-on-month growth), exited Ghana in 2024 after investing nearly $3.7 million in the expansion. Jumia Food also shuttered its Ghana operations in early 2023 as part of a broader restructuring. Chowdeck did not respond to a request for comments. Reports suggest that high taxes, low wages, and high inflation present ongoing challenges to Ghana’s food delivery ecosystem. However, the country has remained attractive to established food delivery businesses like Uber Eats and Bolt Food from whom Chowdeck will face stiff competition when it launches.
Read More- February 11 2025
- BM
MTN Nigeria, SWIFT increase internet prices as 50% tariff hike takes effect
MTN Nigeria has raised the prices of its internet plans to implement the 50% tariff increase approved by the Nigerian Communications Commission (NCC) in January. The revised prices now include a 1.8GB monthly plan for ₦1,500, replacing the previous 1.5GB plan priced at ₦1,000, according to an updated price list seen by TechCabal. The 20GB plan has been adjusted to ₦7,500, up from ₦5,500, while the 15GB plan now costs ₦6,500, a rise from ₦4,500. Larger bundles have seen more significant increases, with the 90-day 1.5TB plan jumping from ₦150,000 to ₦240,000, and the 600GB 90-day plan increasing from ₦75,000 to ₦120,000. “It’s not a 50% increase on every plan, but rather an across-the-board adjustment. Some plans remain unchanged to ensure we keep the grassroots connected. For instance, the 2.5GB daily plan at ₦600 has not been affected,” an MTN Nigeria executive who asked not to be named so he could speak freely told TechCabal. SWIFT Networks has also increased internet prices by 50% across board. Airtel and Globacom have yet to adjust their prices. However, a source at Airtel confirmed that the company had introduced a 25 kobo flat rate for all voice calls. Both Airtel and Globacom, along with other operators, are expected to implement the tariff hike later this month. According to a telecom industry source, the adjustments took effect on Monday afternoon, impacting data and voice plans. However, some daily plans have seen slight changes in validity. For example, a 2-day plan has been reduced to 1 day, while a 7-day plan is now valid for only 6 days. The NCC approved the 50% tariff hike on January 20, 2025, following years of negotiations with telecom operators, who argued that the existing tariffs were unsustainable and didn’t account for inflation and the devaluation of the Naira. The telecom sector had been the only industry with unchanged tariffs for 11 years despite inflation hitting record highs. *This is a developing story.
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