- May 6 2025
- BM
Tanzania’s purge of 80,000 online platforms signals deeper state control over digital space
Tanzania has shut down over 80,000 websites, social media accounts, blogs, and online platforms in the country’s most extensive digital content purge. The government said the move is meant to protect children’s mental health, but it also signals a growing appetite for online censorship. On Monday, Hamis Mwijuma, the deputy minister for information, culture, arts, and sports, told parliament that the Tanzania Communications Regulatory Authority (TCRA) had identified 80,171 platforms “publishing unethical content that poses a risk to children’s mental health.” Mwijuma was responding to a question from Special Seats MP Ng’wasi Kamani on the government’s plans to control social media content. The scale of the crackdown points to a wider state campaign that’s evolved over the last decade. In 2017, Tanzania’s parliament passed the Electronic and Postal Communications (Online Content) Regulations, with additional amendments in 2020. These laws criminalise content considered indecent, obscene, hateful, or disruptive to public order. Offenders face up to 12 months in prison, fines of TSH 5 million ($1,858), or both. The regulations give the TCRA sweeping powers to police social media, including blogs and private accounts. “It is not the first time they’re doing this. Seven years ago, during President Magufuli’s term in office, they had content creators (bloggers, owners of YouTube channels) needing to be registered and licenced to disseminate information,” Emmanuel Chenze, COO at African Uncensored, a Kenyan investigative media company, told TechCabal. “For a country with such a history, this news is obviously not a sign of progress.” In October 2024, the government suspended the digital unit of Mwananchi Communications, a subsidiary of Nation Media Group, over an animated video depicting relatives searching for missing loved ones. The main character resembled President Samia Suluhu Hassan. TCRA said the video threatened public order and harmed Tanzania’s image. Mwananchi’s online licences were suspended for 30 days. Mwijuma said the government is also training journalists and digital content creators to detect fake news and protect “a safe cultural environment for Tanzanian children.” But critics say the government is using child protection as cover for a wider crackdown on dissent. No public information exists on how platforms are flagged, whether takedowns can be appealed, or if affected creators were given notice. “There’s a thin line between cracking down on harmful (to kids) content, regulating online content, and outright gagging,” Chenze added. “The efforts to do the former, which may include the passage of some laws and extreme measures like the ones taken in this case by TCRA, can easily lead to the latter. Nothing stops them from being weaponised and used to stamp out dissenting voices.” The Tanzanian government has not clearly defined what qualifies as harmful content, nor outlined who makes that determination or how those decisions are reviewed. Yet it continues to expand its authority over online expression, deciding who gets to speak and what can be said.
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- May 6 2025
- BM
TechCabal Daily – Airtel brings Starlink down to earth
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning. RIP Skype. Once the king of “Can you hear me now?” calls, the popular video-calling service shut down yesterday after 23 years of service. Microsoft is rolling the product into Microsoft Teams as the once-monolithic video calling platform failed to keep up with competitors like Zoom and FaceTime. Evolve or die, they say. What’s your favourite Skype memory? Egypt’s MoneyFellows raises $13 million to expand into Morocco Airtel and SpaceX partner to bring Starlink to remote communities in Africa Kenya’s Carrefour partners with AmEx, Equity Bank to allow shoppers get rewards World Wide Web 3 Opportunities Startups Egypt’s MoneyFellows raises $13 million to expand into Morocco Image Source: MoneyFellows Show of hands if you’ve been burned from participating in a group savings exercise (ajo, esusu, chamas, or stokvels if you’re South African) before? Perhaps, a member of the group refused to contribute when it was their turn, or worse, the person holding the money for the group disappeared with it? A few African startups, both past and present, have pitched their tent to solve this problem for consumers. Some of them have abandoned the plan entirely; case in point, Esusu, a Nigerian fintech used to digitise esusu groups, before it shifted focus to a credit-building app for home-renters. Others are still playing in the market, trying to figure a way to hit nirvana. But one startup—Egypt’s MoneyFellows—seems to have figured this out. Lack of trust, credit-scoring models, and non-existent escrow systems plague these businesses. And ultimately, payments are the bread and butter of fintechs, so understandably, many businesses follow the money. But given its longevity doing business in Egypt, MoneyFellows has seen its fair share of good and bad, and after eight years, it says it is profitable. On May 5, the fintech raised $13 in a pre-series C round. So what is working for MoneyFellows? It’s not just building an app to manage gam’eya (Egypt’s version of esusu); legal contracts, central bank oversight, and credit scoring. Users who join a savings “circle” sign a contract, payouts are handled by a bank partner, and the system is monitored by Egypt’s Central Bank through a sandbox. MoneyFellows ranks users based on who’s most likely to keep contributing; those ranked higher get paid first, and the cycle continues. That setup builds trust—and trust is everything when money’s involved. MoneyFellows then makes money by managing the spread between borrowers and savers. Early collectors—basically loan takers—pay a fee. Late ones save and collect at the end of a circle’s tenure. That spread, multiplied across millions of users on the platform, is where the business makes sense. A business model like MoneyFellows’ is not risk-free; but what makes it work is the structure. Some fintechs that have tried to digitise ajo in Africa have provided no means to contain the risks which create a trust deficit. Now, it’s taking that playbook to Morocco, a market that already knows a thing or two about digitised group savings. 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. 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 Telecoms Airtel and SpaceX partner to bring Starlink to remote communities in Africa
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- May 5 2025
- BM
Fluent Ventures’ Alexandre Lazarow wants to invest in locally adapted globally business models
Adaptation is often the determiner between survival and extinction in the animal kingdom, and according to Alexandre Lazarow, the managing partner of Fluent Ventures, a global early-stage fund, the same principle applies to startups. “I think innovation today functions more like a global supply chain. Ideas travel, but they require local adaptation to succeed,” he told TechCabal on a call. His investment thesis can be summed up as: product–market fit may be universal, but monetisation and delivery must be tailored to local contexts. Fluent Ventures is deploying $40 million through a fund, an incubator, and a structured co-investment vehicle with limited partners. Its cheques range from $250,000 to $2 million across pre-seed to Series A stages with plans to back 22–25 startups in fintech, healthtech, and e-commerce with capital reserved for follow-on investments. Lazarow developed his investing thesis in frontier markets after backing early neobanks like Chime and Neon in the U.S. and Brazil, seeing that while the business model revolved around providing modern and transparent banking in every market, the business model changed depending on customer needs. The work involved in writing a book (Out-Innovate: How Global Entrepreneurs from Delhi to Detroit Are Rewriting the Rules of Silicon Valley) also helped shape this thesis. After interviewing Gojek founder, Nadiem Makarim, and learning how the Indonesian ride-hailing startup expanded into food and medicine delivery, Lazarow saw firsthand how the company thrived by adapting its model to local needs. “He essentially fused the Uber idea with local needs and combined it with India’s logistics insights and the super app approach from China. That hybrid approach ended up outperforming Uber’s original model in his market,” Lazarow said. “And now, if you look at Uber in the U.S., its biggest growth area is food delivery, an idea arguably inspired by those international adaptations.” Some of Africa’s biggest startup successes have come from adapting global models to local realities. Paystack raced to its $200 million acquisition by Stripe by tailoring Stripe’s infrastructure-first approach to Nigeria’s fragmented payments landscape. While Jumia has yet to achieve profitability, it became Africa’s first unicorn by localising Amazon’s e-commerce model for the continent’s unique logistical and consumer challenges. And it’s not just in Africa that localising global models has driven success. In 2012, 83% of global startup ecosystem value (the sum of startup valuations and exits) was concentrated mostly in the U.S. By 2023, that share had dropped to 61%, reflecting a significant decentralisation of startup activity as more founders build for local needs in emerging markets. TechCabal spoke to Alexandre Lazarow to understand his investment thesis, exit history, how he picks founders, and advice for other investors. This interview has been edited for length and clarity. As someone actively investing in Africa, what sectors do you believe are most in need of local innovation today, and why? As a firm, we invest in three broad but foundational categories: financial services, commerce, and digital health. That focus reflects our conviction that these sectors form the bedrock of emerging market economies. Financial services alone represent about 20% of the African economy. That’s where we spend most of our time because the need is vast, and the innovation potential is deep. Within those sectors, are there any specific business models you’ve found especially effective in emerging markets? We’ve made two investments in Africa so far, and I expect that number to grow significantly over time. One business model I’m really excited about actually comes from India — B2B marketplaces. In India, four of the ten largest unicorns are vertical B2B marketplaces. The core idea is to empower small buyers and sellers, giving them the tools and advantages that normally only large businesses enjoy. These platforms combine vertical software (for things like inventory and order management) with embedded financial services such as credit. The principle is the same: provide small businesses with infrastructure that helps them scale like much larger enterprises. I believe that same model has even more potential in Africa. For instance, we’re early investors in Matta, which I see as the African localisation of OffBusiness. We also invested in Sabi. These B2B platforms are important because they don’t just offer digital access; they also tackle structural barriers that small businesses face every day: poor access to capital, fragmented logistics, and weak supply chains. By solving those problems in a way that’s tailored to the local context, they’re doing something very meaningful and very scalable. One thing I’ve noticed in Africa and many other emerging markets is that theory often doesn’t line up with reality. Have you come across a sector that seemed promising on paper but didn’t quite scale the way you expected? What made it difficult? I have some scar tissue in this area, particularly from the off-grid solar sector. I was genuinely obsessed with the promise of small-scale home solar systems across emerging markets, especially in Africa. Here was the pitch: You had this massive gap in power infrastructure. The centralised grid wasn’t reliable, wasn’t affordable, and wasn’t reaching enough people. Meanwhile, technologies were improving: solar panels were getting cheaper, mobile money was enabling pay-as-you-go models, and there was a growing awareness of the need for energy resilience. On paper, it looked like the perfect venture opportunity. We evaluated and invested in several companies in the space. The pitch decks were compelling. The unit economics looked workable. It all seemed aligned. But when it came time to scale, reality hit hard. Affordability turned out to be a massive barrier. The systems themselves, even the basic ones, were still too expensive for many of the target users. The accessories you could add on, like fans, TVs, and fridges, were often unreliable or cost-prohibitive. And even when customers could pay, the customer service and maintenance infrastructure were fragile. It was hard to keep things working in remote areas. It just didn’t add up to a pure venture-scale business — not in that wave, anyway. Are you saying it wasn’t the idea that was flawed, but maybe the timing?
Read More- May 5 2025
- BM
₦76.5 trillion and counting: Inside the payment surge at GTCO and Access Holdings
This is Follow the Money, our weekly series that unpacks the earnings, business and scaling strategies of African fintechs and financial institutions. A new edition drops every Monday. In a year when Nigerians processed a record ₦79.6 trillion ($49.6 billion) through their mobile phones, two of the country’s biggest banking groups—Guaranty Trust Holding Company (GTCO) Plc—are racing to dominate the digital payments space—and taking very different plays to get there. Guaranty Trust Holding Company (GTCO) Plc and Access Holdings Plc, which have turned their fintech subsidiaries into major engines of growth, aren’t just making big numbers; they’re redefining how millions of Nigerians move money. GTCO’s HabariPay and Access’ Hydrogen processed a combined ₦76.5 trillion ($47.7 billion) in transactions in 2024, up 217% from ₦24.1 trillion ($15.0 billion) in 2023, according to their latest full-year financial reports. What drove the numbers? Similar to fintech companies like Flutterwave, Hydrogen, which launched in September 2022, focuses on backend payments infrastructure, enabling other fintechs, banks and telcos rather than competing directly for end-users. This model helped it process ₦49.1 trillion ($30.6 billion) in payments in 2024, a 313% leap from the previous year. The launch of Hydrogen Payment Gateway, along with new solutions to enhance payment card security, drove significant growth in transaction volumes across its switching, merchant collections, and payments infrastructure, according to a statement by Access Holdings to TechCabal. “These offerings opened new revenue streams and broadened our impact across the payments value chain, enabling more businesses to access secure, seamless payment infrastructure,” it said. GTCO’s HabariPay, also launched in June 2022, took the opposite tack: go direct. Through its Squad platform, it has onboarded over 30,000 merchants across Nigeria and built a profitable business around SMEs and digital-first retailers. HabariPay processed ₦27.4 trillion ($17.1 billion) in 2024, up 124.6% year-on-year. “When a bank with a strong fintech approach and over 37 million customers enters the market, it has a real shot at dominance,” said Segun Agbaje, GTCO’s group CEO, on its investor relations call on April 3, 2025. He added that GTCO would push aggressively into PoS terminals this year to expand Squad’s reach further. 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 The broader shift: From cash to clicks Behind the surge in bank-led fintech transactions is a broader, irreversible shift in how Nigerians move money. Mobile money usage has exploded—from just ₦3.05 trillion ($1.9 billion) in transaction value in 2020 to ₦79.6 trillion ($49.6 billion) in 2024. Volumes have jumped from 130 million to 3.92 billion. A recent report by Worldpay, a global payment company, shows Nigeria recorded the steepest decline in cash transactions globally over the last decade. From 2014 to 2024, the country saw a 59% drop in cash use, beating out the Philippines, Indonesia, and Germany. This decline is fuelled by rising smartphone penetration, fintech adoption, and regulatory nudges like cashless policy limits and instant payment rails. Surge in transactions made money Beyond volume, there’s profit, and Hydrogen and HabariPay are cashing in. Hydrogen pulled in ₦10.3 billion($6.4 million) in revenue in 2024 and delivered a ₦1.89 billion($1.2 million) profit—a 1,074% jump year-on-year. It’s now Access Holdings’ most profitable non-bank subsidiary. GTCO’s HabariPay made even more money—₦4.22 billion($2.6 million) in profit—off ₦6.66 billion ($4.1 million) in revenue. That’s still just a fraction of GTCO’s total ₦1.02 trillion ($635 9 million) group profit, but it shows the fintech bet is already
Read More- May 5 2025
- BM
Airtel Africa partners SpaceX to expand Starlink to remote communities
Airtel Africa has partnered with SpaceX to bring Starlink’s high-speed satellite internet to its customers across the continent. Announced on Monday, the deal marks a major step forward in bringing internet access to subscribers, especially remote and underserved communities. The rollout will begin in nine countries: Nigeria, Chad, Kenya, Zambia, Malawi, Rwanda, Niger, Madagascar, and the Democratic Republic of Congo, targeting regions where connectivity gaps are most severe. As of 2025, approximately 600 million people in Africa—about 50% of the continent’s population—lack internet access. Starlink is licenced to operate in 9 of the 14 countries where Airtel Africa is present, with 163.1 million subscriber base. Starlink currently serves 237,000 subscribers across Africa. Once operational across the board, the collaboration will extend the reach of reliable internet services to millions more people—businesses, schools, hospitals, and individual users alike. For many subscribers in rural and hard-to-reach areas, the dream of stable, fast internet has remained elusive due to the limitations of traditional telecom infrastructure. With Starlink’s low Earth orbit (LEO) satellites and Airtel Africa’s established market presence, this partnership offers a promising solution. Customers can look forward to more consistent voice and data connectivity, even in areas where fiber or mobile networks have yet to penetrate. The partnership will enhance Airtel’s enterprise and business solutions, offering high-speed internet from rural healthcare clinics to educational institutions. As digital services become central to sectors like agriculture, education, finance, and healthcare, access to Starlink’s technology could empower local innovation and economic growth. The partnership will explore using Starlink’s satellite capabilities for cellular backhauling, enabling Airtel to extend its mobile network coverage to remote areas where traditional infrastructure is lacking. “Next-generation satellite connectivity will ensure that every individual, business, and community has reliable and affordable voice and data connectivity even in the most remote and currently underserved parts of Africa,” said Sunil Taldar, CEO of Airtel Africa. The Airtel-SpaceX deal could be a game-changer in the competitive telecom landscape across Africa. By integrating Starlink’s satellite internet with Airtel’s existing ground infrastructure, the company gains a significant edge in expanding rural coverage and improving overall network quality. The move also puts pressure on rival operators, such as MTN, Orange, and others, to accelerate their digital inclusion strategies. As more consumers gain access to faster and more reliable internet, expectations for service quality and innovation will inevitably rise. “The team at Airtel has played a pivotal role in Africa’s telecom story, so working with them to complement our direct offering across Africa makes great sense for our business,” said Chad Gibbs, SpaceX’s Vice President of Starlink Business Operations. Beyond providing rural connectivity, the agreement opens doors to further collaboration between SpaceX and Airtel Africa, including leveraging Airtel’s ground infrastructure and exploring new areas of digital inclusion. It signals a shift toward more hybrid models of connectivity, combining satellite, cellular, and broadband services to meet diverse user needs.
Read More- May 5 2025
- BM
Pros and cons of VC funding in 2025: what founders think
What’s it like to raise VC funding in 2025 as an African founder? To get a real sense of the current landscape, we spoke to Emenike Olome, CEO of Rabbit Africa, a B2B mobility platform; Toyin Olasehinde, Co-founder of Woodcore and Treford; and Joseph Oloyede, a data analyst at TechCabal Insights, who works closely with startup founders and investors. In this piece, we break down the benefits, challenges, and things to consider when raising venture capital in 2025. The Pros of VC Funding in 2025 1. Money Still Matters For many founders, capital is still the biggest advantage. It helps you hire a strong team, get the necessary tools, and move faster. Toyin, co-founder of Woodcore, puts it simply: “You get the funds you need to do what you need to do.” If you’re working in a space that VCs are interested in, like AI, raising funds might be easier than bootstrapping. 2. Strategic Backing > Big Cheques Emenike, CEO of Rabbit Africa, shares a different view. For him, who you raise from is more important than how much you raise. “I’d rather take $500k from someone who can introduce me to Meta, than $1M from someone who just writes a cheque.” Having an investor who can connect you to the right people, help shape your product strategy, or open doors can be worth more than money alone. 3. Credibility and Market Signal According to Joseph, from TechCabal Insights, getting VC backing can also build credibility. “It sends a strong market signal. People take you more seriously, customers, other investors, even your team.” The Cons of VC Funding in 2025 1. Equity Dilution This is one of the biggest trade-offs. Once you raise outside money, your share of the company starts to drop. And with that comes reduced control. Toyin explains: “You now have to carry people along, justify your moves, and sometimes adjust your plans.” 2. Pressure to Perform With money comes expectations. Investors want fast results, and that can push you to chase growth too early. “You might start building based on what you promised, not what you actually believe is right,” Toyin says. Joseph adds that this kind of pressure is real, especially when VCs expect high returns, even if your product hasn’t fully found its footing yet. 3. Risk of Losing Your Edge Emenike raises another concern: trust and data safety. “You share a pitch with a unique idea, and suddenly a portfolio company pivots into your space. They have capital and infrastructure, now you’re competing against your own concept.” In 2025, with AI tools making it easier to copy and scale ideas, this risk is even more significant. 4. You Might Not Need It Early On Founders today have more tools than ever. AI lets you build MVPs, run models, and test ideas without large teams or heavy spending. “If I were starting today, I’d build as much as I can on my own first,” says Emenike.“Then I’d raise, only when I’m ready to scale with the right partner.” Final thoughts: Should you raise VC funding in 2025 or not? VC funding can help you grow your business, but it’s not always the best first step. In 2025, more founders are choosing to build lean, test fast, and only raise when it makes sense. Here’s what you should think about before raising: Do you need cash, or do you need connections? Can you test your idea without giving up equity? Are you ready for the pressure and trade-offs that come with investor money? Raising VC funding isn’t bad; it just comes with terms you must understand fully. Think long term, protect your equity, and only raise when it helps you reach your bigger goals.
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- May 5 2025
- BM
TechCabal Daily – Meta may exit Nigeria
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy new week! I read Robert Iger’s autobiography, The Ride of a Lifetime, for the second time recently and got a glimpse into the mind of one of the world’s most beloved creators, George Lucas. According to Iger, Disney’s CEO, acquiring Lucasfilm was one of the most difficult deals the company ever made, largely because Lucas’ vision and creative direction for the mind-bending Star Wars mythology didn’t always align with Disney’s. And it taught me something: managing creativity—and creative people—is an art, not a science. It’s hard to fathom how Luke Skywalker, Princess Leia, Darth Vader, and the countless characters that make up the Star Wars universe came from the mind of one man who, for years, was the sole gatekeeper of that legacy. Here’s to celebrating the man and the legend on the occasion of “May the Fourth,” the unofficial Star Wars holiday. Plus, have you seen Thunderbolts*? What did you think of the epic? I thought the rotoscoping work was solid. And when the end-credits rolled and I saw the long list of names of people who gave their hearts to that one part of the film’s editing, it made perfect sense. Here’s to the new week: May the Force be with you! Meta could exit Nigeria Starlink is live in DR Congo Lemfi delivered a 29x return for Silverbacks Holdings World Wide Web 3 Job Openings Companies Meta’s hefty fine could mean Facebook and Instagram’s exit from Nigeria Image Source: Reuters They say good things come in threes—apparently, so do fines. Nigerians may soon say goodbye to their beloved platforms—Facebook and Instagram—as Meta has threatened an exit after being stacked with nearly $300 million in fines (by three government agencies!) and what it describes as excessive, unworkable data regulation demands. The news confirms our reporting in August 2024 that the tech giant was considering “withdrawing certain services” in Nigeria. What Did Meta Do? Meta has been hit with a series of fines by Nigerian regulators for various violations. The Federal Competition and Consumer Protection Commission (FCCPC) fined Meta $220 million for anti-competitive practices, including abusing its dominant market position, denying Nigerians control over their personal data, unauthorised data transfers, and applying different standards to Nigerian users compared to those in other countries. The Nigerian Data Protection Commission (NDPC) imposed a $32.8 million penalty for breaching data privacy laws, specifically for enabling unauthorised transfers of personal data and applying lower data protection standards to Nigerian users. Additionally, the Advertising Regulatory Council of Nigeria (ARCON) fined Meta $37.5 million for running unapproved and non-compliant advertising campaigns on its platforms. Why does it matter? For many Nigerian businesses, these platforms are vital components of growth strategies, customer acquisition, brand awareness, and direct sales. Meta’s exit will leave thousands of individuals, digital marketers, content creators, and business owners scrambling – not to talk of the social and economic ripples it may trigger. Although it may nudge them to alternative social interaction platforms like TikTok, Telegram or Google Meet. Meta’s threat to exit Nigeria exceeds more than just a corporate reaction to a fine; it highlights the power tussle between global tech companies and national governments over digital sovereignty. Right hook, left jab, and an elbow strike. The clock is ticking, and Meta is teetering on the edge of surrender. Will they stay or walk away? 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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- May 3 2025
- BM
Digital Nomads: The first-time founders seeking global mobility for a chance at being funded
Victor Daniyan is standing on a stage sweating profusely. Though Morocco is usually humid around this time of the year, the hall is well air conditioned. He briefly locks eyes with one of the stern-faced panel of judges—most of them are experienced founders who have exited successful startups, and there’s one director of investments at a corporate venture firm present. He barely holds the judge’s gaze for five seconds before he looks away. He has just finished pitching his product, Nearpays, to a room brimming with experience in the business hemisphere. These were men who could take any inexperienced founder from zero to everything. Daniyan anticipated there would be hesitation; he dreaded it. He closed his eyes and waited for judgement. If he went back to Nigeria, he was going to keep building Nearpays like he’d done in the past two years—with pure grit and out of his pocket. But even his cynical side still prayed for one maybe that could turn into a yes in the future. 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 Building a contactless payment solution is expensive; more so, he was building a hybrid approach that catered to marginalised users in Nigeria—a compatible hardware device that works with mobile smartphones, allowing merchants to accept card payments; as well as a software point-of-sale (softPOS) that is NFC-enabled. Of course, he needed the money. He’d bootstrapped his startup for two years without any return on his savings. It wasn’t until last year that his venture started generating traction. With this traction, he had jetted off to Plug and Play’s closed-door gathering with investors, hoping to pitch what he thinks can be as big as Visa. Except, sadly, this pitch never happened. Instead, Victor Daniyan, CEO of Nearpays, was stuck at the airport, unable to travel to an event he’d eagerly prepared for. He had the opportunity of a lifetime to attract investor interest in Nearpays. But here he was, sitting at the airport, watching as time went by quickly. Daniyan was unable to travel due to a visa delay, which upended his fortunes that day. This is one of many stories about the systemic travel bottlenecks that plague African founders, especially first-time founders seeking funding. On one hand, they’re dealing with issues that prevent them from accessing funding opportunities. On the other hand, the problems are more… artificially created. Can I trust you? To first-time, early-stage founders in Africa, trust is not a given. It has to be earned—and geography, unfortunately, plays a massive role in whether or not it’s granted. Uzochukwu Mbamalu, CEO of Palremit, a one-year old Nigerian fintech startup which has raised $200,000, experienced this first-hand. “I travelled to Kenya once,” said Mbamalu. “There was this guy from Manchester who was very interested in knowing what I was building. The moment I mentioned Nigeria, that was the end of the conversation.” Mbamalu now lives and operates from Europe, where he believes proximity, perception, and presentation impact trust-building. “Trust level increases, especially for people from Nigeria when they travel out. They tend to raise money at that point. The business, especially if you’re starting out, is actually tied to them as the founder.” He explains the logic investors often use: if the founder is in Nigeria, the risk is higher; the founder could disappear, for example. The infrastructure might collapse, so there’s no better way to remain in
Read More- May 2 2025
- BM
Lemfi’s $53 million Series B delivers 29x return for Silverbacks Holdings
When Nigerian remittance startup LemFi closed its $53 million Series B round in January 2025, one of the biggest winners was Sliverbacks Holdings. The Africa-focused private equity firm, which also invested in Flutterwave and Moove, quietly exited its stake in the round, achieving a 29x return on its initial investment—an extraordinary outcome in a funding environment where big wins have become increasingly rare. The exit, Silverbacks’ eighth overall, aligns with the firm’s strategy of partially exiting its investments to realise profit. It is also the firm’s sixth exit from a Nigerian tech-enabled company and marks the fourth time a Nigerian fintech has delivered returns to Silverbacks’ investors. “This 8th profitable exit, which delivered 29x cash invested, is another testament to the quality of our portfolio’s founders and the investment sophistication of the Silverbacks ecosystem, “ said Ibrahim Sagna, the executive chairman of Silverbacks Holdings. “ Our commitment remains to amplify African tech, sports, and creative spirits on the world stage.” The exit comes as returns on investments for private capital exits in Africa remain below their 2022 peak of 82. Only 43 exits were recorded in 2023, a 48% decline from the previous year, and with just 31 exits by the third quarter of 2024, last year’s numbers are tracking similarly low. Silverbacks Holdings has built a portfolio across Africa’s sports, media, fashion, and tech industries, with stakes in companies like Reliance, Gozem, Shuttlers, Carry1st, and the Cape Town Tigers Basketball Club. Reflecting this diversified approach, the firm recently added Sanford R. Climan, the CEO of Entertainment Media Ventures, to its advisory board. “Africa’s tech, entertainment, sports, and creative industries are on the cusp of global recognition,” Climan said. “Joining Silverbacks and investing in AWFC aligns perfectly with my passion for transformative ventures at the intersection of media, technology, and culture.” The firm also recently invested in African Warriors Fighting Championship, a Nigerian Dambe (traditional boxing) promotion company. Exits are essential to growing an ecosystem, and recent examples—Oui Capital’s exit from Moniepoint, Alitheia’s from Baobab, and Silverbacks Holdings’ from Lemfi—underscore how Nigeria’s fintech industry is quickly proving itself as probably the most profitable sector for African investors. Exclusive: Baobab Nigeria acquisition delivers 3x return for Alitheia and Goodwell How Oui Capital made a 53x return on an early $150,000 investment in Moniepoint
Read More- May 2 2025
- BM
TVC launches Nigeria’s first AI multilingual news anchors
TVC News has become the first Nigerian broadcaster to introduce artificial intelligence (AI) news anchors that deliver bulletins in five major local languages. The innovation is part of a broader push by TVC News, a subsidiary of TVC Communications, to modernise its newsroom with emerging technologies. The AI anchors are designed to complement human journalists by expanding the station’s reach across Nigeria’s six geopolitical zones and tapping into underserved audiences in their native languages, TVC Communications said in a statement. “This pioneering innovation represents a significant milestone in the broadcasting history of Nigeria,” part of the statement read. “Our AI anchors will complement and assist our human capital assets to deliver and enhance the company’s strategic goals, which include wider coverage, the fusion of technological tools that would enhance delivery and broaden our footprints across a vast network and most importantly, communicate to our diverse audience in the language they understand.” The move underscores how Nigeria’s leading broadcasters are beginning to embrace automation in content delivery, combining AI scalability with editorial oversight to navigate a fast-changing media environment. While the AI news anchors are built to deliver news in five major languages, English, Yoruba, Hausa, Igbo, and Pidgin, the company said its integration would enhance quick news delivery and broaden its digital footprint. TVC News acknowledged that the rollout may be met with skepticism, particularly around the rise of deepfakes and misinformation. It said it is implementing strict editorial controls and digital watermarking to ensure accuracy, integrity, and regulatory compliance. All AI-generated content, the company said, will be vetted by human editors, and the anchors will operate within an oversight framework aligned with the Nigerian Broadcasting Code. “Our AI news anchors will enable us to take our news coverage to the next level as we showcase our commitment to leveraging technology to drive growth using innovation,” said Victoria Ajayi, CEO of TVC Communications. The rollout signals a shift in how African newsrooms may scale content in local languages, broaden access, and respond to growing demands for real-time and reliable information.
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