The true cost of M-PESA is catching up with M-PESA
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 23 March, 2025 Image: NMG A news item piece by TechCabal this week showed that Safaricom’s M-PESA market share dropped sharply from 97% to 91% over five consecutive quarters leading to December 2024, while Airtel Money grew from just 3% to 9% in the same period. This is the most sustained erosion of M-PESA’s dominance in years, signalling the beginning of a fundamental change in the mobile money market. Yet, what stands out is not just the numbers but Safaricom’s muted response. Despite clear signs of competitive pressure, M-PESA’s pricing has stayed the same. There have been no adjustments to transaction fees or cost structures to reflect growing user frustration. This raises questions about Safaricom’s view of these losses: whether it sees them as temporary or negligible. It also points to a possible strategic blind spot, where protecting shareholder returns takes priority over responding to market signals that would, in any other business, trigger urgent action. Most Kenyans operate in a low-trust, high-cost environment where every shilling counts. Informal work dominates, incomes fluctuate, and credit is hard to access. These realities shape a society of budget hunters (people who scrutinise charges, compare services, and switch based on value). Mobile money (once seen as a convenience) has become part of this daily cost management. Airtel Money’s flat rates and zero-fee options (for some services such as sending money to other Airtel Money users) appeal directly to this survival instinct. In contrast, M-PESA’s complex, tiered pricing feels out of touch with how most Kenyans make financial decisions. The longer this continues, the more likely it is that price-sensitive users will see Airtel Money and other players as better aligned with their realities. Next Wave continues after this ad. Africa’s youth are shaping the future, but are their voices truly heard? The Citizen Report provides a deeper understanding of the challenges and opportunities young Africans face, spotlighting their perspectives on AI, governance, education, human rights, and more, backed by data and research. This report bridges the gap between lived experiences and policy decisions that impact millions. Download The Citizen Report here Profit motives over customer needs Safaricom’s reluctance to act decisively on the perception that M-PESA is expensive points to a deeper corporate strategy. As a listed company, Safaricom is built to prioritise shareholder returns. Mobile money is now its strongest revenue stream, often cushioning weaker voice and SMS performance. M-PESA’s fees are designed to maximise revenue while avoiding regulatory pushback. Lowering charges or simplifying fees risks cannibalising this core profit driver. M-PESA’s transaction fees have changed over time. When it officially launched in 2007, transaction fees were introduced and have been periodically adjusted. In 2014, Safaricom reduced charges for transactions between KES 10 and KES 1,500 by up to 67% to encourage low-value transactions. In 2018, it lowered fees for sending KES 101 to KES 500 from KES 11 to KES 6. During the COVID-19 pandemic, M-PESA, along with other mobile money services and banks, zero-rated all transfers under KES 1,000. Despite these changes, frequent low-value transactions remain costly, which reinforces the perception that M-PESA is expensive. The growing gap between user experience and Safaricom’s response exposes a hard truth: M-PESA increasingly serves investor needs over those of users. Many Kenyans believe Safaricom only responds when pushed, either by regulators or competitors. Safaricom’s delayed compliance with interoperability rules reinforced this view, as did its slow pace in improving user experiences. Next Wave continues after this ad. The funding surge of 2021–2022 feels like a distant memory. In 2024, total VC funding hit $2.21B, but the real story is how capital is shifting. Uganda (+304%), Tanzania (+108%), and Côte d’Ivoire (+97%) saw significant funding gains, while fintech remained dominant at $1.04B. Download the full report here There is also an unspoken class divide in how M-PESA operates. Premium services like M-PESA Global and Globalpay and investment tools target middle-class users. Meanwhile, core services, including transfers, withdrawals, Fuliza, remain costly and inflexible. This builds a perception that Safaricom designs products for the wealthy while treating mass-market users as cash cows. Airtel Money has moved quickly to exploit this gap and has positioned itself as the affordable choice for ordinary Kenyans. Airtel Money’s market share jump to 9% signals a real shift, not a short-term fluctuation. The growth comes from free Airtel-to-Airtel transfers, lower cross-network fees, and cheaper withdrawals. Sending KES 1,000 to other networks costs KES 11 on Airtel Money, while M-PESA charges KES 13. Withdrawing the same amount costs KES 29 on Airtel, KES 2 less than M-PESA. Still, Airtel Money struggles to break M-PESA’s grip on the agent network. M-PESA agents dominate the country. A 2022 Central Bank plan to open up agency networks stalled, missing deadlines by two years. Safaricom may be resisting because it knows what’s at stake: its agents were built with its resources, and opening them up could weaken a key advantage. Safaricom also benefits from deep market inertia. Users remain on M-PESA because it is embedded in everything, including rent, school fees, hospital bills, and government services. The psychological and practical costs of switching are high, and Safaricom appears comfortable with this, calculating that it can delay reforms as long as the ecosystem keeps users tethered. While users often complain about high M-PESA charges, the cost of running a reliable payment infrastructure is rarely discussed. Safaricom invests heavily in maintaining M-PESA’s network, including security upgrades, compliance with financial regulations, and expanding its reach to remote areas. Next Wave continues after this ad. Registration for GITEX AFRICA 3rd edition is NOW OPEN – Africa’s largest tech and start-up event from 14-16 April, 2025 in Marrakech,
Read MoreKenyan court dismisses lawsuit claiming Safaricom copied “Reverse Call” idea
A Nairobi court has dismissed a lawsuit filed by Davidson Ivusa, a Kenyan innovator who accused Safaricom of copying his concept for its “Reverse Call” feature. The February 27, 2025 ruling seen by TechCabal brings to a close a three-year legal battle over one of Safaricom’s core services, raising questions about how big corporations handle unsolicited ideas. According to court documents, Ivusa claimed he pitched a “Jichomoe” proposal to Safaricom in 2010. He argued that Safaricom delayed the implementation of his concept—which allowed users to make calls even with zero airtime—and then launched it under a different name without his involvement. Safaricom denied the claim, arguing that the “Reverse Call” service, launched in April 2019, was independently developed. The telco said the feature was developed to address a common user need: making calls without sufficient airtime. Justice Mugambi determined that Ivusa’s concept was shared voluntarily, with no expectation of confidentiality or fiduciary duty on Safaricom’s part, saying “The concept was sent unsolicited, and there was no evidence that the defendant undertook to hold it in trust or act in a fiduciary capacity.” Ivusa’s lawsuit centred on claims of breach of trust, passing off, and loss of income. However, the court found no grounds to impose a constructive trust, a legal remedy for unjust enrichment. “Proof of parties’ intention is immaterial; for the trust will nonetheless be imposed by the law for the benefit of the settlor,” Justice Mugambi ruled. “The plaintiff has not substantiated the claim of dishonesty on the defendant’s part.” Safaricom did not immediately respond to a request for comment. On copyright infringement, the court drew a sharp distinction between protecting an idea and protecting its execution. Justice Mugambi cited Kenyan case law and global copyright standards. “Copyright law protects the expression of ideas, not the ideas themselves,” he said. Ivusa failed to provide detailed evidence of “Jichomoe’s” expression. He did not present a source code, diagrams, or prototype, only a concept note shared via email. “Without evidence of the plaintiff’s unique implementation, it is difficult to establish that the defendant appropriated the plaintiff’s specific expression,” the judge said. The court dismissed the claim of passing off, as Ivusa could not prove that “Jichomoe” had gained goodwill or market recognition before Safaricom’s launch. “There was no proof that consumers or industry stakeholders associated Safaricom Reverse Call Feature with “Jichomoe”,” the ruling read. The case shows the murky legal terrain where unsolicited ideas meet commercial implementation, a common dispute in markets like Kenya, where tech startups often pitch to dominant players.
Read MoreNigeria’s NIBBS, Ceva, lobby Ruto to build Kenya’s new payment system
Nigeria’s Interbank Settlement System (NIBBS) and Kenyan payments software provider Ceva Limited are lobbying President William Ruto to develop Kenya’s new Fast Payment System (FPS) and national digital ID programme, intensifying competition for one of Kenya’s most lucrative financial projects. In a letter to Ruto seen by TechCabal, Ceva Limited requested a meeting to present NIBBS as its strategic partner in building the country’s new payment infrastructure. “We are writing to formally request a meeting with you at your earliest convenience, on either 20th or 21st March 2025,” the letter read. “ The purpose of the meeting is to introduce our partner, the Nigerian Interbank Settlement Systems (NIBBS).” The meeting will include top executives from NIBBS and Ceva, including NIBSS CEO Premier Oiwoh, Yvonne Ige, its head of partnership, and Ceva MD Yatin Mehta. David Kiprono, the director of Webmaster—the firm behind developing Kenya’s e-Citizen—is also expected to attend. NIBBS, owned by the Central Bank of Nigeria (CBN) and licensed banks, is Nigeria’s national switch and payment infrastructure. Ceva, founded in 2010, operates in India, Nigeria, Kenya, and Brazil and claims to process $40 billion in transactions annually. In its letter, Ceva argued that NIBBS has the credentials and a system that can ensure seamless interoperability across different payment platforms including banks, SACCOS, mobile money operators like M-Pesa, and fintechs. “Our robust infrastructure is developed in Africa, for Africa,” Ceva wrote in the letter. “ AfriGo is NIBBS’ answer to Africa having its card processing, driving our economic independence and efficiency. India has done it with Rupay, China has done it with UnionPay, UAE has done it with Jaywan, Brazil has done it with PIX.” Ceva and NIBBS did not respond to requests for comments. If successful, the deal could face a pushback from local mobile money operators like Safaricom and commercial banks who have been pushing for the Central Bank of Kenya to upgrade Pesalink. Safaricom and KBA estimate that building a new FPS from scratch could cost $200 million and take up to four years to complete, while an upgrade to Pesalink—a system handling $8.5 billion annually—would be faster and cheaper. While the CBK has not yet decided on the proposed FPS upgrade, there is significant lobbying from local and international firms for the lucrative contract.
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👨🏿🚀TechCabal Daily – Google pulls a gun on Starlink
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy salary week! TechCrunch, the US-based media outlet, has a new owner. On Friday, the publication announced that Yahoo, its parent company, sold it to the private equity (PE) firm Regent. This marks TechCrunch’s fourth owner in its 20-year history. Nigeria needs more action to become the crypto hub it aims to be MTN cuts network investments in South Africa Google takes on Starlink with Taraa World Wide Web 3 Events Cryptocurrency Nigeria needs more action to become the crypto hub it aims to be Image Source: Wunmi Eunice/TechCabal Intentions don’t mean much unless actions follow. But Nigeria’s information minister, Mohammed Idris, may be working overtime to let the world know that the country has its sights set on becoming a cryptocurrency central. On March 12, the minister published an opinion piece on the crypto publication Cointelegraph, stating that under President Bola Tinubu, the country is seeking to balance innovation with “robust” regulation. Nigeria is also reportedly engaging with industry stakeholders to learn how to use blockchain technology to improve the manual systems that exist in land registries, identity management, and supply chain. Again, on March 21, Idris told Semafor that despite what looked like a Binance witch-hunt for close to eleven months in 2024—culminating in an $80 billion lawsuit that is sitting in court—the country is trying to adopt a pro-crypto stance. He claimed that there are more crypto companies operating in the country, likely signaling that the government is aware of crypto startups that operate within regulatory grey areas. It is not out of place for people to be critical of Nigeria for its anti-crypto history, but these statements strongly signify that Nigeria is turning a new leaf on crypto. Yet, it would need to turn these reassurances into actions if it hopes to regain industry confidence. It has now been seven months since the Nigerian Securities and Exchange Commission (SEC) granted the first—and only—batch of provisional licences under its startup incubator programme, which is expected to be the country’s pathway to legally regulating the crypto industry. For now, Nigeria’s pro-crypto rhetoric outweighs its concrete actions. If it wants to be seen as a true crypto hub, it must move beyond statements and create a clear, functioning legal framework—one that not only attracts investment but also provides clarity for businesses operating in the space. Are you a freelancer or a remote worker? Fincra wants to understand the challenges and opportunities related to cross-border work payments for freelancers and remote workers in Nigeria. Please take just a few minutes to complete this survey. Telecoms MTN cuts network investments in South Africa Image Source: MTN MTN is cutting back on network investments in South Africa, reducing its core network investments by R4.1 billion ($225 million) in 2025. That brings its budget to between R5.7 billion ($313 million) and R6.7 billion ($367 million)—about 19% of the group’s total capital expenditure (CAPEX). Its competitor, Vodacom, by contrast, plans to spend up to R11.2 billion ($614 million). Network quality depends on consistent investment. MTN currently leads in South Africa, but maintaining that position requires continuous upgrades. The company says its network has enough capacity and that it needs to see returns on the R4.5 billion ($247 million) it spent on its network resilience during load-shedding. Prepaid services remain a challenge. While MTN’s contract and business segments are performing well, prepaid revenue is struggling in two major regions. The company sees growth elsewhere, but competition in prepaid is intense, and lower investment could make it harder to keep up. MTN’s move in South Africa is surprising because MTN Nigeria, its subsidiary business—which lost its spot as the group’s top revenue generator in 2024 owing to losses—is taking a different approach. Instead of cutting back, the telecom operator is increasing investment in its core network in Nigeria where it controls more than half of the market share. Despite its dominance, MTN Nigeria is not trying to take any chances as strong competition from internet service providers (ISPs) like Starlink is likely a factor. The telecom operator isn’t betting that Nigerians will ditch satellite internet just because it’s expensive. While South Africa doesn’t have a Starlink problem to deal with, it could still be underestimating the infrastructure gap that this move could expose it to. Yet, if history has taught us anything, telecom dominance is a “use it or lose it” business. These are the kinds of decisions we’ll only know were genius or unwise in hindsight; MTN South Africa just wants to grow its profit margin—not a bad incentive. You can now integrate Paystack with Stub Stub makes it easy to manage your business with features like invoices and financial reports. With Paystack integration, you can securely accept payments online and track them in real time. Learn more here → Internet Google takes on Starlink with Taraa Image Source: Google Google has a laser solution to your internet problem. While Elon Musk is busy blanketing Earth with satellites, Google just pulled out a laser gun. Alphabet, the parent company of Google, recently spun out Taara Lightbridge, a new internet service that hopes to provide high-speed internet to Africa’s 860 million population without reliable internet service. Unlike Elon Musk’s Starlink, which relies on satellites to provide internet services, Taraa uses lasers to blast the internet through the air. Think of it as an invisible fiber cable in the sky: instead of transmitting light through glass fibers, Taraa uses a technology called Free Space Optical Communication (FSOC) which allows it to send narrow beams of light through the air, achieving speeds up to 20 gigabytes per second (Gbps) over distances of up to 20 kilometers. The internet service provider (ISP), which is currently in its testing phase, is operational across 12 countries globally and plans to scale its operation across Tanzania, Kenya, Zimbabwe, and Nigeria. Unlike Starlink, which is useful in remote villages, disaster zones, and off-grid locations, Taara is not built as a last-mile solution.
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Digital Nomads: Fisayo Osilaja was tricked into returning home at 9; she fell in love with UX research
I describe Fisayo Osilaja, a Lagos-based UX researcher at the Nigerian payments company Interswitch, as an occasional daredevil. On a mountain hiking trip in Sydney, Australia recently, Osilaja joined her colleagues to jump off a cliff into a lake. “It felt like I was falling for hours, but in reality, it was probably five seconds,” she recalled. When I asked her if this was the craziest thing she’d ever done, she blurted, “Yes!” “But I’m never trying that again.” Despite her tendency to seek out adventure, Osilaja did not appreciate the kind that many years ago, disrupted her childhood. “When I was nine years old, my mother took my brother and I to Nigeria,” she said. “Growing up in the States (Osilaja was born in Los Angeles, California), our parents made sure we stayed aware of our Nigerian roots. But this time, when we travelled to Nigeria, we thought it was for a summer vacation—but it wasn’t. We got enrolled in boarding school that week. That’s how I grew up in Nigeria.” Initially, Osilaja disliked living in Nigeria. The thought of spending many years of her life in the country made her shudder. “It was a tough adjustment for me. The cultural difference weighed heavily. My mannerisms were different, and it didn’t win me a lot of friends. And then, there was the lack of infrastructure [like electricity] that we were used to as kids,” she recalled. It took a year, but eventually, she got used to life in Nigeria. It was here, in Nigeria, that she discovered her love for UX research. I spoke to Osilaja about her career, travels, and upbringing. This interview has been edited for length and clarity. What is UX research? Can you explain your job to me as if I were 5? I’d guess that five-year-olds use mobile applications now because I see some of them with their tablets. So, I’d show them an app and explain that while using it, they might face issues. For example, if they’re on YouTube trying to find a video, they might face certain issues looking up the videos or playing them. As a UX researcher, I try to understand how to make that process more seamless for you to navigate or find your way around. My work helps businesses make these apps that kids love. Everybody is happy because the businesses make money. So it’s a win-win on both sides. What inspired you to become a digital nomad? I have a dream lifestyle, and I’m willing to do whatever work brings me closer to it. Ideally, I enjoy my work, but the main goal is the life I want. And by lifestyle, I don’t just mean money or borrowing power—I mean my ideal life. What does that look like? And which work gets me closest to it? I’ve always loved traveling, and as I’ve gotten older, I genuinely enjoy it even more. I also value flexibility, creative freedom, and having control over my time. Naturally, I looked for roles that aligned with that vision. That’s where tech came in. I’ve always liked research, but tech allows me to merge my interests—UX research and a flexible life. Even with my current hybrid role, I see the benefits. Tech companies often offer more leave days, emphasising work-life balance. So when I travel, I have more time to unwind. Even outside of leave, I work three days in the office and two from home. This flexibility lets me travel while working—for example, I worked remotely from Cotonou recently. As long as I plan my office and remote days, I can work from anywhere: a café, a friend’s house, or another country. That freedom improves my quality of life. Digital Nomads: The digital marketer travelling across Africa on a $2,000 budget What was the trip to Cotonou for? A modeling gig. I was mostly being driven around the city and trying out clothes and dresses, and taking pictures. I didn’t quite stay long enough to soak in the pleasures of the city. What challenges do you face in balancing work with occasional travelling for pleasure? As much as I can help it, I try not to work when I’m travelling. The time zones are a major blocker. One time, I had to travel to the US for my cousin’s wedding. I was working at PwC Lagos and requested to work remotely at the time. But it was grueling for me. My waking hours were the closing hours at work. So I signed up never to try that again. You’ve travelled to several countries; how can you describe the cultural differences between all these places you’ve been to? People are friendly in America, but this depends on the part of the country. On the West Coast, people are nice and friendly—but they can be fake. But on the East Coast, life is fast-paced, so the people are not as nice. Australians find Americans really loud; it’s always a funny sight. Australians are a calm bunch and they love nature and generally living with this kind of pleasurable ease. I find the people in Paris, France to be rude, and I don’t think they like foreigners very much. Thai people are very friendly, and I also find their monastery lifestyle intriguing. I visited a Buddhist temple during my stay. A presiding monk prayed for me and gave me a bracelet. I enjoyed my time there. Cotonou [Benin Republic] is equally a quiet place—much quieter than Lagos. The people speak French and Yoruba so it was an easy blend for me. Osilaja at the Panyee Muteara Seafood Restaurant, Thailand I imagine travelling to these countries must’ve required a bit of adjusting, especially on the language side. What did this look like? I didn’t need to learn Bengu when I went to Thailand. My knowledge of English was enough. I speak a little Yoruba (native Nigerian language) and my French skill is 40% conversational at best, but I got by in Paris. Où puis-je
Read MoreGoogle’s Taara Lightbridge takes on Starlink with laser-powered internet
Alphabet, the parent company of tech giant Google, is picking up a fresh fight—this time with Elon Musk’s Starlink. Taara Lightbridge, a project originally developed under its X “moonshot” division, will become a standalone company, challenging Starlink in the race to connect underserved regions with high-speed internet. Taara’s selling point? It uses Free Space Optical Communication (FSOC) technology to beam high-speed internet through light over long distances, unlike satellite broadband. The move, announced on Monday, March 17, signals Alphabet’s renewed push into connectivity solutions after the closure of its Project Loon balloon venture in 2021. Taara, led by CEO Mahesh Krishnaswamy, is targeting 3 billion people globally, including 860 million in Africa without reliable internet access. The company will compete directly with Starlink, which has amassed over 5 million subscribers across 125 countries. While still in testing, Taara is operational in 12 countries globally and is now focusing on scaling its operations across Tanzania, Kenya, Zimbabwe, and Nigeria. The global push for more affordable, high-speed internet solutions has become a priority for multinational tech companies as demand surges. Yet fiber-optic infrastructure remains underdeveloped in many regions, hindering access. Its expensive and complex deployment, especially in challenging terrains, has driven the need for alternative solutions. Taara Lightbridge functions like an invisible fiber-optic cable in the sky. Instead of transmitting light through glass fibers, it sends narrow beams of light through the air, achieving speeds up to 20 gigabits per second over distances of up to 20 kilometers. This method takes advantage of light’s shorter wavelength than radio waves, allowing it to carry more data at higher speeds. However, light-based communication requires line-of-sight connectivity, meaning that obstacles like fog, rain, or buildings can disrupt the signal. To overcome this, Taara has developed advanced AI-driven mirror systems that detect, track, and maintain precise alignment between two connected units, ensuring a stable connection. “We have this sophisticated set of mirrors that searches for this light signal, and the moment they find it, they lock in,” Krishnaswamy said while explaining Taara on Google’s Moonshot Podcast on Monday. “The team created a traffic light-sized box to house the laser that could be mounted on a rooftop or cell tower.” Early deployments have demonstrated the technology’s potential. In India, Taara was successfully tested on cell towers to connect buildings in urban environments. In Africa, it bridged the Congo River in Central Africa, linking Kinshasa and Brazzaville, where traditional sub-river fibre deployment was deemed impractical. Taara will work with internet service providers, telecom companies like Liquid Telecoms, a subsidiary of Cassava Technologies, a pan-African technology group, and governments, to extend connectivity to rural villages, disaster-stricken areas, and regions where traditional infrastructure is not feasible. While fibre optic cables remain the backbone of traditional internet networks, their deployment is often uneconomical in remote or challenging terrains. Taara’s ground-based approach offers a potentially more cost-effective alternative to satellite constellations, requiring less energy and avoiding the launch and maintenance costs associated with space-based systems. Krishnaswamy said the Taara team has come up with a solution that requires taking the Taara terminal, which is the size of a traffic light, and shrinking it down to the size of a fingernail. This is meant to reduce the cost of deployment. “You could have the small little devices on everybody’s home with no speed breaks anywhere in between, at a fraction of the cost of the terminals, and without the time and challenges of trenching fibre,” he said. While Starlink looks to the stars, Taara’s aiming for a laser-focused victory on the ground.
Read MoreExclusive: Baobab Nigeria acquisition delivers 3x return for Alitheia and Goodwell
Baobab, a global financial services group with over $900 million in its loan portfolio, has fully acquired Boabab Nigeria, its local subsidiary, marking the first exit for Alitheia Capital and Goodwell Investments from their jointly managed uMunthu Fund. The Baobab acquisition gives uMunthu a 3x return on its original 2012 investment in Baobab Nigeria, formerly Microcred Microfinance Bank, which offers banking services to individuals and small businesses in underserved areas. The acquisition also contributed to the fund’s 39.3% internal rate of return—a measure of the annual profitability of its investments. The exit comes as private capital exits—returns on investments—in Africa remain below their 2022 peak of 82. Only 43 exits were recorded in 2023, a 48% decline from 2022, and the 31 exits recorded by 2024’s third quarter indicate that last year’s numbers are similar to 2023. Since Alitheia and Goodwell’s initial investment, Baobab Nigeria has expanded from a single branch in Kaduna to 38 branches across 16 states, growing its customer base from 19,000 to 230,000. During this period, the bank’s balance sheet expanded 37-fold, while its loan book grew 43.5-fold, according to uMunthu. Despite its rapid growth, the bank focuses on small-scale financial inclusion, with average loan and deposit sizes of ₦2 million ($1,300) and ₦91,000 ($60), respectively. “This was a bank operating out of a single room in northern Nigeria when we invested, and today it is a top-three nationally licensed microfinance bank,” said Alitheia’s managing partner, Tokunboh Ishmael. “We’re proud of what’s been achieved together, and look forward to seeing where the future will take Baobab Nigeria.” The fund said in a statement that the growth strategy of Boabab Nigeria was supported by local governance expertise, financial structuring advice, local market insights, and access to key networks provided by uMunthu. Exits signal the viability of investing in a region, and with Africa lagging behind other developing markets like Asia—where exits exceeded $65 billion—the continent risks losing out on foreign capital to regions with stronger returns. “This [exit] is not only a testament to the impressive growth and financial stability Baobab Nigeria has achieved with the support of these two investors, but it also proves the ability of patient capital to drive both financial and impactful returns,” uMunthu said in a statement.
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👨🏿🚀TechCabal Daily – Hakuna Wanatu
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! The ultimate tech CEO flexed his muscles this week. Elon Musk raised close to $1 billion for X, the social media platform that is now shaped in his likeness. Let’s say we’re inspired by Musk this morning. TechCabal will reach its X era. But first, we need you to contribute greatly to our efforts. Follow our TikTok page—the irony of what we’re asking is not lost on us—and engage with our videos so we can share this Musk money tech knowledge with you. Over 2,500 apps tried to rival Uber, Bolt in Nigeria Why is local ride-hailing upstart Wanatu winning in South Africa? Airtel Money gains market share as M-Pesa declines Funding Tracker World Wide Web 3 Job Openings Ride-hailing Over 2,500 apps tried to rival Uber, Bolt in Nigeria Image Source: Google Over the past decade, more than 2,500 local ride-hailing apps have tried to usurp the dominance of Uber and Bolt in Nigeria. These global competitors—flush with funds and advanced technology—have asserted dominance as major competitors in the industry, with newer entrants like inDrive also gaining traction. Local ride-hailing alternatives have struggled due to economies of scale, network effects, funding constraints, and driver retention challenges. Take Oga Taxi, Nigeria’s first indigenous ride-hailing app, for example. Launched in 2014 by Michael Nnamadim, it struggled to scale and eventually shut down. T-Cab Rides, another homegrown platform launched in 2018 by Samuel Ogunwus, operated on a model similar to inDrive, allowing passengers to negotiate fares. However, the company appears to have ceased operations, as its social media accounts have been inactive since 2019. Oga Taxi and T-Cab are just two of many Nigerian ride-hailing startups that have tried—and failed—to compete with Uber and Bolt. While multiple factors have led to their collapse, Nigeria’s ride-hailing sector has become even more challenging in recent years. Rising living costs have weakened riders’ purchasing power, while the removal of fuel subsidies has significantly increased operational expenses for drivers. The cost of vehicle maintenance has jumped by 200%, slashing driver profits by as much as 300%. Many drivers—already burdened by platform commissions and regulatory fees—are either quitting or reducing their working hours. Yet, these challenges haven’t deterred new local entrants. Earlier this month, a group of Nigerian ride-hailing drivers launched SimpliRide. Platforms are also adapting their models to accommodate drivers’ needs. For instance, Lagos State’s government-backed ride-hailing service, LagRide, is shifting towards a salaried structure for drivers, an unconventional approach in the industry. The battle for ride-hailing dominance in Nigeria is far from over. However, local startups will need stronger financial backing, better driver incentives, and strategic marketing to stand a chance against their global competitors. Are you a freelancer or a remote worker? Fincra wants to understand the challenges and opportunities related to cross-border work payments for freelancers and remote workers in Nigeria. Please take just a few minutes to complete this survey. Ride-hailing Why is local ride-hailing upstart Wanatu winning in South Africa? Image Source: Andertoons While over 2,500 local ride-hailing apps have tried—and failed—to stage any serious threat to giants Uber and Bolt in Nigeria, the story is different in South Africa. In February 2025, Wanatu, a local ride-hailing startup, launched and has quickly garnered over 30,000 users as it takes on the large industry giants in the South. Despite its wins, the company’s hiring policy—preferring only drivers who are Afrikaans speakers—has triggered a debate. Yet, its gig-driving model differs in a few ways from Uber, Bolt, and inDrive. The biggest change is that Wanatu employs its drivers full-time instead of treating them as independent contractors. Drivers earn a basic salary plus tips, a setup that provides them with more financial stability than what Uber or Bolt offer. Another major difference is pricing. Unlike Uber and Bolt, where trip costs can rise due to traffic, delays, or longer routes, Wanatu sticks to the fare displayed when a ride is booked. That means no unpleasant surprises for customers who might otherwise see their bill increase after drop-off. Security is another selling point. Every Wanatu vehicle is equipped with live-monitored dashcams, an in-car panic button, and voice recording features—tools designed to prevent misconduct by drivers and passengers. Is Wanatu a real threat to Uber and Bolt? The jury is still out. For now, it’s still much smaller and has fewer drivers, which means availability can be a challenge. But with plans to expand and a business model that’s winning over customers, it’s clear that Wanatu is making its presence felt in South Africa’s competitive ride-hailing market. You can now integrate Paystack with Stub Stub makes it easy to manage your business with features like invoices and financial reports. With Paystack integration, you can securely accept payments online and track them in real time. Learn more here → Mobile money Airtel Money gains market share as M-Pesa declines Image Source: Yarn M-PESA’s market share continues to shrink, marking its fifth straight quarter of decline. The latest data from the Communication Authority of Kenya (CA) shows M-PESA’s share fell to 91% in Q4 2024, down from the previous quarter. In contrast, Airtel Money’s share grew from 7.6% to 8.9%, driven by aggressive promotions and lower transaction fees. M-PESA is still the dominant player, but competition is getting tougher. Airtel Money has been attracting users with cheaper transaction costs. For example, sending KES 1,000 ($8) to another network costs KES 11 ($0.085) on Airtel Money but KES 13 ($0.10) on M-PESA. Withdrawal fees are also slightly lower on Airtel Money. These small differences add up, especially for frequent users. Another factor hurting M-PESA is increased interoperability. Since 2022, mobile money users have been able to send and receive money across different providers more easily. This means customers who once felt locked into M-PESA can now explore other options without much hassle. Being a competitive market, the switching cost for customers is lower, which creates an opening for Airtel Money. Airtel Money has also been working to
Read MoreOver 2,500 ride-hailing apps have tried—and failed—to compete with Uber, Bolt – drivers’ union
Over 2,500 ride-hailing apps, mostly locally developed ones, have attempted to compete for commuters since US-based Uber entered the Nigerian market in 2014, according to a top official of the Amalgamated Union of App-Based Transporters of Nigeria (AUATON). Rising operational costs, regulatory hurdles, and the dominance of well-funded foreign players have made it nearly impossible for local platforms to compete. “More than 2,500 apps have attempted to enter the market since Uber arrived in 2014,” Ibrahim Ayoade, general secretary of AUATON, told TechCabal by phone. “This is based on my records from their registration attempts with us. However, many of these apps fail to sustain operations due to the competitive landscape and challenging business environment.” Nigeria’s ride-hailing market promised to deliver convenience to commuters and a financial lifeline to many drivers. Yet, the sector remains a difficult playing field. Established foreign operators, with deep pockets and advanced technology, continue to squeeze out homegrown alternatives. Among the casualties is Oga Taxi, Nigeria’s first indigenous ride-hailing app founded by Michael Nnamadim, launched in 2014 but shut down after struggling to scale. Easy Taxi, a Brazilian platform that entered Nigeria in 2013, ceased operations in 2017 following its acquisition by Latin America’s Cabify. Not much has been heard from T-Cab Rides, another indigenous app launched in 2018. The ride-hailing company co-founded by Samuel Ogunwus, allowed passengers to negotiate fares with drivers, similar to Indrive. However, the company appears to have ceased operations, given the inactivity on its social media accounts since 2019. Alpha1 Rides, an indigenous ride-hailing company founded in 2017, attempted to disrupt the Nigerian cab-hailing sector with its new ride system, including office shuttles and limousines. Just like T-Cab, its social media accounts have been inactive since 2020. GoAfrik, a Nigerian logistics startup co-founded by Thomas Ajayi, launched Taxigo Nigeria in 2018, offering services like taxi booking, bike rides, courier delivery, and on-demand logistics. However, the platform has shown little to no activity in recent years. According to AUATON, several ride-hailing apps have attempted to challenge Uber and Bolt in Nigeria, with most launching before the COVID-19 pandemic in 2020. These include Oga Taxi, Smart Ride, Gudride, Alpha 1, GLT, Jetride, Rideme, Tripz, Go247, T-cab, Taxigo, 9ja, Skyconnent, Phixama, Cruise, MotionPlus, Gidicab, Soole, BudgetRide, Zkyte, Easy Taxi, Afro Cab, Say Taxi, ProTaxi, Enivo, and Alakowe Taxi. TechCabal findings show that at least 16 of these platforms—including Oga Taxi, Smart Ride, Gudride, Alpha 1, GLT, RideMe, Tripz, Go247, T-cab, Taxigo, MotionPlus, Gidicab, Soole, Easy Taxi, Afro Cab, and HerRyde—are no longer operational in Nigeria. “Logistics is a high-risk sector,” said Ayodeji Ebo, managing director/chief business officer at Optimus by Afrinvest Limited. Fuel prices, policy shifts, and the fight for survival Ride-hailing platforms have become increasingly popular across Nigeria, especially in major cities like Lagos and Abuja, driven by their convenience, a large youthful population, and rising internet penetration. However, the sector faces challenges like inconsistent policies, poor road infrastructure, driver complaints, and the lack of digitized data for efficient operations. The challenges for ride-hailing companies in Nigeria have only intensified. The removal of the country’s petrol subsidy in May 2023 caused fuel prices to surge by over 400%, dramatically increasing drivers’ operating costs. According to the National Bureau of Statistics, the road transport sector contracted by 35.9% in 2023—down from a positive growth rate of 15.1% in 2022. AUATON estimates that since the subsidy removal, the cost of vehicle maintenance has jumped by 200%, slashing driver profits by 300%. Many drivers, already burdened by platform commissions and regulatory fees, are quitting the sector or cutting back on working hours “The cost of car maintenance has increased significantly,” said Bolude Olumuyiwa, a Lagos-based driver. “Repairing my car’s air conditioning now costs ₦200,000 ($130), compared to less than ₦100,000 a year ago.” Even with fare hikes, drivers complain that their take-home pay remains unsustainable, while customers, hit by rising living costs, are increasingly abandoning ride-hailing apps for cheaper public transport. Ayoade of AUATON believes that without policy support, local ride-hailing platforms will continue to fail. “The only way these indigenous apps can succeed is through government intervention—either through favorable regulations or financial support,” he said. LagRide, a government-backed ride-hailing service, is losing traction, with fewer drivers using the platform. CIG Motors, the Chinese automobile company that assembles and distributes GAC vehicles in Nigeria, recently took over the company’s operational management. Meanwhile, new entrants like SimpliRide, a driver-led ride-hailing platform launched in March 2024, hope to buck the trend by offering better terms to drivers. But industry experts warn that without long-term, patient capital, many of these startups face the same fate as their predecessors. “The payback period for this capital needs to be longer,” said Ebo of Afrinvest Limited. “Otherwise, these companies won’t survive the pressures of rapid growth and profitability demands.” The ride-hailing industry’s future is uncertain as companies grapple with market share, profitability, and driver welfare. For now, the road to ride-hailing dominance in Nigeria remains one where only the strongest or the best-funded survive.
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Moneda Invest Africa and meCash partner to enhance critical SME financing in Africa with the launch of “Musa”
Moneda Invest Africa has partnered with meCash to reshape Africa’s financial ecosystem, particularly in payments and access to credit. The details of this strategic alliance and the “Musa” app were unveiled at the Moneda Experience, held on March 14, 2025, in Lekki, Lagos. The event brought together key stakeholders, including Ejike Egbuagu, GCEO, Moneda, Modupe Diyaolu, Co-founder, meCash; Adebusola Adegbuyi, Co-founder and CTO, meCash; Precious Ehihamen, Ag Managing Director, Moneda Technologies, investors and members of the press to discuss the future of credit access for critical SMEs. A Vision for Financial Inclusion Moneda Invest Africa specialises in energy, agriculture and mining, providing alternative credit and execution expertise to critical SMEs in Africa’s natural resource value chains. meCash, a cross-border payments platform, complements this by enabling seamless financial transactions across global markets. Together, they aim to provide credit for businesses executing contracts—without the need for collateral. The focus is on SMEs supplying materials or operating SMEs engaged in the natural resources sector, spanning energy, agriculture, and minerals. “What will truly change the quality of our lives is ensuring that businesses get access to credit, empowering them to create value and transform industries thereby transforming the quality of our lives“ said Ejike Egbuagu, GCEO of Moneda. For meCash, this partnership is a commitment to improving financial inclusion, secure and efficient payments and cross-border transactions. “SMEs are the bedrock of any economy, and we are excited to finance businesses that drive real impact,” said Modupe Diyaolu, Co-founder & CEO of meCash. Addressing the Challenges of SME Financing Financing SMEs in Africa comes with complex challenges, including high default rates and regulatory hurdles. meCash’s expertise in financial infrastructure helps mitigate these risks by ensuring efficient fund disbursement, secure payments, and regulatory compliance across multiple African markets. “Compliance is the bedrock of financial services, and that’s what differentiates us,” said Diyaolu, emphasizing meCash’s role in ensuring seamless regulatory adherence and risk management for cross-border transactions. MUSA is expected to redefine access to capital by providing a structured credit model tailored for Africa’s natural resource sectors. Compared to many fintech solutions that focus solely on digital and consumer lending, MUSA operates with the rigor and reliability of a traditional financial institution, ensuring structured financing and risk-managed disbursement for critical SMEs across Africa. Technology-Driven Transparency A major highlight of the event was the demo of “Musa”, an app designed to facilitate this partnership. Precious Ehihamen, Ag Managing Director, Moneda Technologies, demonstrated how the platform ensures real-time transparency, transaction monitoring, and risk-sharing. Musa was built to democratise access to finance for SMEs, offering flexible credit options that bypass conventional collateral requirements and lengthy application processes. “What we are doing is sharing the risk with SMEs, providing them with the financial infrastructure to execute contracts and receive payments without unnecessary roadblocks,“ he said. With Musa, African critical SMEs will have access to global capital, providing a meeting point for suppliers, manufacturers and service providers. The app enables users to input contract details, including the nature of the contract, required supplies, funding needs, and risk assessment. It then calculates the associated risks and provides a real-time dashboard to track completed transactions., making it easy to monitor progress. A Fireside Chat on the Future of SME Credit The event concluded with a fireside chat featuring the CEOs of meCash and Moneda, moderated by Ugodre Obichukwu, CEO of Nairametrics. Key discussions centred around how this partnership overcomes traditional SME financing bottlenecks and the steps being taken to ensure sustainable credit repayment models. With this partnership, Moneda and meCash are not just financing businesses—they are building a financial infrastructure that empowers African SMEs, enhances cross-border transactions, and drives economic growth across the continent.
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