👨🏿🚀TechCabal Daily – Glo’s slippery slope
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy mid-week! You might soon see Sam Bankman-Fried, the former CEO of FTX, on screen. Lena Dunham, Apple, and studio A24 are adapting Michael Lewis’ book “Going Infinite: The Rise and Fall of a New Tycoon,” which explores Bankman-Fried’s life and FTX’s collapse under money laundering allegations. We hope you are looking forward to the movie as blockbusters don’t come in better wrapping than that. How Globacom declined in Nigeria’s telecoms market Mixed results for MultiChoice in H1 2024 Safaricom pauses advertising on Nation Media Group World Wide Web 3 Opportunities Telco Inside Globacom’s struggle to regain telecom relevance Image Source: Adaeze Chukwu/TechCabal One day, cock of the walk; next day, a feather duster. When Globacom launched in August 2003, it was entering a contested market. MTN, Econet, and MTEL were already market leaders in a nascent market, and the entry of Globacom, the upstart Nigerian-owned telecom operator, shouldn’t have fazed them. Yet, Globacom pushed its last-mover advantage, learning from the fact that customers hated the existing pay-per-minute method, which forced them to pay ₦50 ($0.03) whether they spent 1 second or 59 seconds on the phone. The upstart’s per-second billing was truly disruptive, forcing MTN and Econet to implement the same billing system two months later. Glo wasn’t done. It threw down the gauntlet and crashed SIM card prices from ₦20,000 ($12) to ₦3,000 ($2) before offering everyone free SIM cards. This was a late entrant forcing the market to adapt to its moves. Not done, Glo was one of the first networks to offer 2.5G internet and by 2009, it had landed a 9,800 km submarine cable in Lagos, showing its ambitions to connect all of Nigeria to the internet. Today, no one remembers Globacom as an innovator. Its service quality is spotty, and its market share has slipped to 13%. Competitors don’t remember the last time the Nigerian telco did anything worth copying. Here’s the story of how Globacom fell off and what its path to redemption looks like. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Companies MultiChoice revenue declines by 10% in H1 2024 Image Source: MultiChoice On Tuesday, MultiChoice, South Africa’s pay-TV giant, reported mixed half-year results for the period ending September 30, 2024, citing an “extremely hostile” operating environment. Revenue reached R25.4 billion ($1.4 billion), declining by 10% year-on-year (YoY), but up by 4% on a constant currency basis, if currency fluctuations are not accounted for. Trading profit before tax, which previously grew to R6.6 billion ($364 million), fell by nearly half, weighed down by a R2.3 billion ($127 million) forex loss, particularly in markets like Nigeria and Zambia where currencies depreciated sharply against the US dollar. In May, the company previously responded by increasing subscription fees by 25% in Nigeria. With this loss, we could see MultiChoice inflate prices again. MultiChoice’s streaming service, Showmax, saw strong growth, with a 50% subscriber increase and watch hours reaching 86,215, boosted by a R1.6 billion ($88 million) investment in local content production, marketing, and advertising. Despite this, the group reported a 1.8 million drop in active subscribers—defined as people who have active primary subscriptions during the reporting period—since H1 2023, mostly from the Rest of Africa, reducing its total base to 14.9 million. This represents an 11% decline. The decline was attributed to power cuts and load-shedding in key markets like Nigeria and Zambia, which led to lower engagement, customer frustration, and ultimately, higher churn rates as viewers struggled to access services. Due to the receding active subscriber base, the average revenue per user (ARPU) in its Rest of Africa markets declined to $8 per user (-14%) across its streaming platforms, while it increased to $289 (+3%) in South Africa. Globally, the pay-TV market plateaued, with other streaming services either expanding their value-added services or ramping up their spends. Nonetheless, MultiChoice saw improvements: its liquidity position rose to R10.1 billion ($558 million), and it led to higher cost-savings among its South African peers. Additional wins included a revenue boost from KingMaker, its gaming and sports betting product which gained momentum in Nigeria, bringing ₦68 billion ($41 million) in revenue. Its fintech arm, Moment, also gained traction in South Africa and other Sub-Saharan regions. MultiChoice will continue to splurge on Showmax—which it describes as being in its “peak investment cycle”—focusing on original content and marketing to rival Netflix and Apple TV. It is optimistic about Showmax’s profitability, after ending a streaming partnership with Comcast. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Companies Safaricom suspends advertising on Nation Media group Peter Ndegwa, Safaricom chief executive/Image Source: Safaricom Journalism can be a double-edged sword. Most newsrooms keep the lights on by a limited number of revenue streams, including running advertisements for companies they report on regularly. While the purpose of journalism is to give the facts, expose what is untrue, and give information that is of public interest, many big corporations may be interested in the last segment as it sometimes involves critical coverage by newsrooms. These big corporations often try to intimidate media houses or threaten to withdraw advertising deals such as the case of Kenya’s largest telecom operator, Safaricom suspending its ad spending with Nation Media Group (NMG) platforms after it criticised the telco. Safaricom’s withdrawal of advertising spend comes after several NMG subsidiaries published critical reports about the company, including one that claimed Safaricom shared user data—including calls, texts, and location—without proper consent. Safaricom has denied
Read MoreThe Stunning Decline of Globacom, Nigeria’s Third Biggest Telco
When Globacom launched in August 2003, it entered a crowded telecom market, two years behind giants MTN, Econet, and MTEL. Despite this, it quickly made an impact with bold moves, positioning itself as a serious competitor. By pioneering per-second billing—unlike the ₦50-per-minute norm—it immediately disrupted the market, forcing rivals to follow suit. If per-second billing was a game-changer for the industry, Globacom pulled off another stunt in October 2004 by offering free SIM cards—undercutting competitors selling theirs for ₦2,000. This aggressive price war was only possible for a late market entrant, and Globacom backed it with hefty marketing campaigns, signing Nigeria’s biggest celebrities as ambassadors. By 2004, long before other Nigerian telcos recognized that data, not voice, was the industry’s future, Glo had begun offering 2.5G internet service to 70,000 subscribers. By 2009, it had landed a 9,800km submarine cable in Lagos, showing the depth of its ambition to connect Nigerians to the internet. “We got the people talking,” said one of its ads. Globacom raced to early success, and many Nigerians identified with the first local telecoms company with catchy ads. However, as the business grew, it lost its innovative DNA and struggled to maintain the momentum of its first eight years. The path to decline Despite its early success, Globacom now feels like a company in decline. With its market share down to 13% and just 19.1 million subscribers, the once-innovative leader now grapples with stagnation. Speculation has mounted for years that Nigeria’s telecom subscriber numbers—217 million in early 2024—were inflated. Industry insiders believed the lack of clear rules on counting subscribers who had been inactive for up to six months allowed telecom operators to pad their numbers. A recent audit and the rule that establishing 90 days of inactivity as the clear baseline by the Nigerian Communications Commission (NCC) has helped clarify issues. Due to those new rules, Globacom was required to recount its active subscriber base, shedding 40 million subscribers who were inactive in the last 90 days. While competitors MTN and Airtel also shed a few million active subscribers, they’re now the clear market leaders with 78 million and 53.7 million active subscribers, respectively. Globacom’s reputation for unreliable service has hurt growth. A major cyberattack in August 2023 exposed customer data to unknown hackers and went unreported for a year, exacerbating the reputational damage. The Globacom breach: How hackers held Nigeria’s telco giant hostage Corporate culture and governance issues One month after the hack was reported, the privately held company named a new CEO and board of directors in October 2024 after some pressure from the NCC. According to two company insiders, it is the first time since 2003 that someone outside Mike Adenuga’s family will control the company. As Adenuga’s leadership entered the 2020s, Globacom’s reputation for innovation had been undone, leaving an image of a company hampered by a one-man bureaucracy. “It is run like a one-man business, and everything runs up to Mike Adenuga. They can’t take any decision without his approval,” said one business close to the business. That person claimed several of Adenuga’s companies share the same employees, blurring the lines between the businesses. Telecom executives and analysts highlight a decade of underinvestment and weak corporate governance as critical factors behind Globacom’s decline. Once a leader in innovation, the company’s culture shifted, stalling progress and leading to mounting operational challenges. Telecom regulators have mostly looked the other way with issues connected to Globacom. Its curious culture may have cost the company more, with one industry source claiming Globacom was poised to enter a potential partnership with telecoms company Orange after the French company expressed interest in a Nigeria expansion. Ultimately, the move did not materialize. Regulatory and financial challenges As the only local telecom company in a market dominated by foreign players, Globacom has enjoyed a leniency that industry players have questioned. Despite owing MTN Nigeria ₦3 billion in interest on interconnection fees for 15 years, Globacom settled the debt for ₦2 billion without facing significant consequences. This penchant for indebtedness also extends to vendors and partners “They don’t pay Value Added Services on time, they don’t pay interconnect fees on time. It is the same thing they do to partners; they will not pay until 180 days,” said one person familiar with the company’s operations. At least two other vendors that have worked with Globacom in the past ten years claimed the company has a reputation for late payments. This reliance on Adenuga, who is widely believed to be the company’s sole financier, is believed to be linked to a perennial underinvestment in the company. “To be significant and deliver the right service, you probably need $1 billion in capital expenditure annually,” said Bolaji Balogun, CEO of Chapel Denham, who helped execute the $1.67 billion sale of Econet Wireless to Celtel in 2005, said at a telecom event in August 2024. Unlike other major operators, Globacom doesn’t outsource its over 8,700 towers to companies like IHS; instead, it builds and maintains them with foreign technical experts. “The cost of operating those towers alone is enormous, covering energy, security, community engagements, and personnel costs,” said an industry expert. Infrastructure-heavy sectors like telecoms require ongoing investment to maintain service quality. For example, you can have a submarine cable, but without deploying terrestrial cables to reach individual users, connecting towers with fiber cables, and building more towers where needed, the network will struggle. The need to continually improve quality is also why MTN and Airtel are investing in data centre infrastructure. While both companies started out with using existing data centres, they are now building their own data centres. Beyond infrastructure, Globacom has made little investment in its Payment Service Bank (PSB) licence, acquired in 2020, resulting in stagnant growth for the service. Meanwhile, MTN and 9Mobile, with similar licences, have added millions of users to their mobile money platforms.. The future outlook There are worries that Globacom could go the way of 9Mobile, another telco that had a flying start
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Safaricom suspends advertising on Nation Media Group publications over critical coverage
Kenya’s largest telecom operator, Safaricom, has suspended its advertising spending on Nation Media Group (NMG) platforms following critical coverage of the company, according to two NMG executives familiar with the decision. NMG-owned publications like the Daily Nation, Business Daily, and The East African have run stories critical of Safaricom in the past month. One story by The Daily Nation was about a $800 million public healthcare system contract awarded to a consortium that included telco and companies linked to Indian billionaire Gautam Adani. Another report highlighted the close ties between Safaricom’s chairman, Adil Khawaja, President William Ruto, and Adani. However, the key trigger for the advertising suspension appears to be a Daily Nation investigative report published on October 29, 2024. The report claimed Safaricom shared user data—including calls, texts, and location—without proper consent, a claim the company has firmly denied. One week after the privacy story was published, Safaricom ran ads in The Standard and The Star, reaffirming its commitment to customer privacy. Those ads coincided with the company’s 24th anniversary. Safaricom also chose not to publish its H1 2024 financial reports in any NMG-owned publications, a first since its 2008 IPO. It opted to publish in The Standard and The Star to meet legal requirements. The suspension highlights the growing pressure on independent media outlets to soften their coverage or risk losing ad revenues. Kenyan news outlets have seen a decline in ad revenues as banks, telcos, and the government cut advertising spending. Safaricom is one of Kenya’s biggest advertisers, with a monthly ad budget of $4.8 million (KES619.2 million). This is not the first time Safaricom has withheld advertising following critical coverage. In previous instances, the company would still publish its financial statements in NMG publications, but this is the first time it has refrained from doing so. In October 2024, Safaricom officials visited major Kenyan newsrooms to persuade them to tone down coverage, said one senior PR executive who asked not to be named so they could speak freely. The officials met senior editors and reporters during the visits. The company has significant influence in the market and, from time to time, withholds ads in response to critical coverage, the public relations executive said. It has never publicly admitted to suspending ads. Safaricom did not immediately respond to a request for comments. The media group’s troubles extend beyond Kenya. In October, the Tanzania Communications Regulatory Authority (TCRA) suspended Mwananchi Communication’s websites–a subsidiary of NMG–after one of its publications ran an animated advert depicting President Samia Suluhu and referencing recent abductions and killings of opposition groups. These pressures could compound NMG’s financial challenges, as it faces its first loss in decades and a shifting media landscape that is increasingly digital.
Read MoreAfrican founders say their jobs have impacted their mental wellbeing
A new report from Flourish Ventures shows that while African founders love their jobs, many say that it has negatively impacted their mental health. While African founders are passionate about their entrepreneurial journeys, factors outside their control, such as fundraising challenges and Africa’s volatile macroeconomic conditions, are taking a significant toll on their mental health, a new report from Flourish Ventures shows. The report, based on responses from over 160 founders across 13 African countries, shows that more than 80% of respondents struggle with mental health issues. Among them, 60% report experiencing anxiety, 58% high stress, 52% exhaustion, and 20% depression. Even founders of startups identified as “thriving” are not immune—over 70% of them also reported mental health challenges. “Prioritising founder wellbeing not only has a positive impact on founders’ lives but also on the long-term success of their businesses,” said Ameya Upadhyay, a venture partner at Flourish Ventures. “Our hope is that by sharing these early learnings, we can foster a broader conversation about how to support founders, both in Africa and globally.” Despite these challenges, 81% of African founders remain passionate about their entrepreneurial paths. However, they cited several key stressors affecting their mental health, with fundraising (59%), inflation (44%), and navigating economic instability (40%) at the forefront. Almost half of the founders surveyed asked investors to curb unrealistic demands and want investors to recognize them as individuals rather than merely contributors to financial returns. “The external stressors—factors largely outside our control—are big contributors tostress and burnout for most entrepreneurs. As an investor, I try to help my founders focus on what they can control and let go of what they cannot,” Iyin Aboyeji, founding partner at Future Africa, said. To cope with these pressures, many founders turn to exercise (59%), relationships (49%), sleep (45%), and healthy eating (42%). The report found that founders with strong personal support networks experienced 13% higher well-being compared to those with weaker networks. However, despite the benefits of open communication, only 14% of founders feel comfortable discussing their mental health struggles. This reluctance is driven primarily by fears of judgment and a lack of empathy from investors. “Founder stress and burnout are pervasive, yet founders are remarkably resilient,” said Efayomi Carr. He emphasized the importance of reshaping investor-founder relationships, advocating for greater transparency, realistic expectations, and a human-centered approach on a call with TechCabal. He added that a focus on founder wellbeing is not just ethical but also essential to business success, as a founder’s mental resilience directly impacts their company’s growth and sustainability. “Data is powerful, but it’s just the beginning of a conversation,” said Carr. “We hope this research sparks a dialogue between founders and funders on building a stronger ecosystem that ensures success for everyone involved.” African startups and investors need better communication to stop funding drought
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JAMB 2025 novel and where to download it
The JAMB likely official reading text/novel for the JAMB 2025 Use of English examination is already in public domain. This designated novel is titled The Life Changer by Khadija Abubakar Jalli. It will be essential reading for all candidates preparing for the exam. With themes that delve into the complexities of Nigerian university life, the novel provides a rich context for English comprehension and analysis skills. Key details on The Life Changer Novel Author and themesThe Life Changer brings to life the varied experiences on a Nigerian university campus. It captures cultural shifts, freedoms, and the challenges young adults face as they transition into independence. The author, Khadija Abubakar Jalli, uses relatable characters and real-world dilemmas to encourage readers to reflect on morality, friendship, and resilience. Role in JAMB 2025JAMB has mandated The Life Changer as the novel for the JAMB 2025 Use of English exam, making it essential for candidates to read and understand the text. In-depth knowledge of the novel will aid candidates in tackling comprehension questions and essay prompts related to it. Where to download the JAMB 2025 novel JAMB portal: Candidates can find authorised e-book versions of The Life Changer directly on the official JAMB website. The portal offers it in PDF downloads which compatible with various devices. Tips for candidates on studying the JAMB 2025 novel Begin early: With only months before the exam, candidates should start reading The Life Changer as soon as possible. Analyse key themes: Reflect on character development, moral questions, and cultural insights that Jalli explores. Mock exercises: Take practice exams to familiarise yourself with potential question formats regarding the JAMB 2025 novel. By immersing the in The Life Changer, candidates will gain not only valuable preparation for JAMB 2025 but also insights into the dynamics of Nigerian university life.
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👨🏿🚀TechCabal Daily – Kobo’s new fleet
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! During his campaign, crypto-loving Donald Trump vowed to put the United States at the centre of the digital-asset industry. Many now speculate his re-election may have had an effect on crypto prices. On Monday, Bitcoin price crossed $86,000 for the first time while prices of other crypto assets also rose. The price increase is thanks to a robust demand for dedicated U.S. exchange-traded funds (ETFs) and interest rate cut by the Federal Reserve. Is Bitcoin back on course to hit the $100,000 mark by year-end? Bullish crypto users say yes. Kobo360 eyes fleet management Healthtech startup MDaaS expands into Cameroon Nigerian businesses to pay single-digit taxes after reforms World Wide Web 3 Opportunities Logistics Kobo360 eyes fleet management Image source: G2 In October, Sendstack, a two-year-old Nigerian logistics startup, pivoted from connecting business owners to last-mile delivery providers to offering fleet management software for companies with in-house fleets. Kobo360, the Goldman Sachs-backed truck-hailing startup, is developing fleet management software for manufacturers, fast-moving consumer goods (FMCG) suppliers, and micro-fleet truck owners. This software will help users manage trucks from their fleet or contracted logistics partners, plan routes, and access invoice discounting. Pure software fleet management is gaining traction among logistics startups for good reason. Software products typically boast margins of around 70%, significantly higher than the 20% commission charged by truck-hailing services. Additionally, software solutions are easier to scale than aggregator models, which require substantial investment in building driver and cargo networks. At a time when investors are focusing on high revenue growth, pure-software models make a really good pitch. Moreover, these applications give businesses complete control of their cargo movement, reducing risks related to lost shipments—a popular mishap in the sector. It may also be the timing: rising fuel costs make Uber-styled logistics platforms that charge commissions more expensive for cargo owners and transporters. While the revenue potential is considerable, selling fleet management software presents challenges. Finding customers can be tough due to a limited pool of companies that can afford the service. Closing deals with valuable clients can be complicated by bureaucracies, and many attractive companies already have providers. Even larger firms willing to pay $7–$50 per truck monthly often face high switching costs. Kobo360, which has been operating for about seven years, may leverage its existing relationships with these businesses to get its new product through their doors. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Startups MDaaS picks Cameroon as first stop on Francophone Africa expansion drive MDaaS team/Image Source: MDaaS MDaaS, a Nigerian healthcare startup known for its network of diagnostic clinics, has launched its first clinic in Douala, Cameroon as it begins its journey into Francophone Africa. The expansion comes as the startup seeks to diversify its revenue streams amid the Naira’s volatility and inflation in Nigeria. Its CEO, Oluwasoga Oni, said the startup treated 16,000 patients across 16 diagnostic clinics and 20 affiliate clinics in Nigeria in October. Despite this traction, it “needed to diversify from a single country considering everything going on in Nigeria.” Oni also claimed that his startup is profitable in Nigeria, which remains its core market, providing X-rays, ultrasounds, and lab work across 26 states. Douala is a strategic choice as it offers a bilingual environment and high demand for healthcare. The startup hopes that bringing a faster, tech-enabled customer experience, one that the local market currently lacks, will attract customers. “We noticed that processes in other clinics were slower, and test results required physical collection—issues we’ve already solved in Nigeria,” Oni said. MDaaS joins a wave of Nigerian startups expanding abroad, following a 70% depreciation of the Naira against the US dollar due to recent economic reforms. Armed with a $3 million fundraise this year, the startup aims to build on its expansion and “build healthcare for Africa’s next billion.” Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Economy Nigerian businesses to pay single-digit taxes after reforms Image Source: TechCabal Nigeria’s contentious tax reform bill may be moving forward with President Bola Tinubu’s administration pushing for changes across the country’s existing tax collection system. Taiwo Oyedele, head of the Presidential Tax Reform Committee, said the new plan would lower business taxes to “single digits” to help small businesses, simplify the tax system, and reduce tax multiplicity. The bill, which was first submitted on September 3, will centralise tax collection and make key changes to tax laws, like increasing value added tax (VAT) to 15% and adjusting the corporate tax rate to 25% for large companies. The tax reforms also proposed changing how VAT is shared among government entities; tax revenue should go to the states where goods and services are used, instead of where companies are based. However, some lawmakers and Northern governors rejected the plan, arguing that the new system doesn’t suit their interests. Despite the opposition of the bill, Oyedele said that the reforms are necessary to curb debt in the country and the government would focus on tweaking parts of the reform instead. With the changes to the reform, the government hopes to double its tax revenue and increase its tax-to-GDP ratio to match with other countries that have wider tax nets and sound tax policy, while not putting pressure on small businesses in the form of levies. There will be another Assembly hearing for the bill on November 19. Introducing Paystack transfers in Kenya Paystack merchants in Kenya can now send single and bulk
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All important dates for JAMB 2025 registration, exams and more
The Joint Admissions and Matriculation Board (JAMB) dates are already in projection pending official confirmation from JAMB. Here’s a breakdown of the dates to look forward to regarding JAMB 2025 registration and the likes, along with the necessary steps to ensure a smooth JAMB 2025 registration process. Key dates for JAMB 2025 registration Registration periodThe JAMB 2025 registration is expected to open on 15 January 2024 and close on 26 February 2024. Candidates are advised to complete their registrations well in advance of the deadline, as late entries may be subject to additional fees or penalties. Mock UTME dateFor candidates interested in a preliminary experience, JAMB will offer a Mock Unified Tertiary Matriculation Examination (UTME), currently set for 7 March 2024. This mock test provides a practical preview of the actual JAMB examination environment. Please note that JAMB mock exams however good or bad the results have zero effect on the actual JAMB exams. UTME main examinationThe official UTME exams will likely occur between 18 April and 28 April 2025. The specific date for each candidate will be available on their exam slip, which will be accessible for printing from 10 April 2024. Registration fees and options With mock UTME: Candidates opting for the Mock UTME should expect to pay N7,700. Without Mock UTME: The standard UTME registration fee stands at N6,200. For Foreign Candidates: The registration cost is $30. Direct Entry (DE) application deadline Direct Entry candidates seeking admission into advanced programmes should also complete their registrations by 28 March 2024. Important points to note Creating a JAMB profile: Candidates must create their profiles before registration. This process should start on 15 January 2025. Mock UTME registration deadline: The last date to register for the Mock UTME coincides with the mock test itself on 7 March 2024. Final thoughts on JAMB 2025 registration The official JAMB website will contain additional details and resources to aid candidates. Keeping track of these dates is essential for a smooth JAMB 2025 registration experience. Please note that these dates are subject to change at the discretion of JAMB. As such, it is important to follow JAMB official channels and trustworthy platforms like TechCabal, to ensure that you are abreast of any changes.
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Nigerian healthtech startup MDaaS begins Francophone expansion with Cameroon
MDaaS, a healthcare startup with 16 diagnostic clinics in Nigeria, has opened its first clinic in Cameroon, marking its entry into Francophone Africa. The move is part of the startup’s strategy to mitigate exposure to Naira volatility and boost revenue. “We’re scaling rapidly in Nigeria—we did over 16,000 patient visits last month—but we realised that we needed to diversify from a single country considering everything going on in Nigeria,” said Oluwasoga Oni, MDaaS CEO. Founded in 2017, MDaaS provides X-rays, ultrasounds, and fully automated lab tests at its network of clinics across Nigeria. It also partners with 20 affiliate clinics using its proprietary tech platform, extending its reach to 26 states. The startup claims profitability in Nigeria, where customers pay upfront for services. “What’s different about us is that we not only provide these services ourselves but we also install and handle everything, including the tech. Our tech is so good—it’s our secret sauce—which means we can coordinate at scale,” Oni said. MDaaS chose Douala, Cameroon’s economic capital, as its entry point into Francophone Africa due to its bilingual environment (English and French) and strong demand for healthcare services. According to the World Health Organisation, public services in Douala are limited, concentrated in the city centre, and largely provided by the private sector. “We went to Cameroon and visited other diagnostic centres and we noticed that the customer service culture could be improved. We observed that processes happened much slower—for example, if you did a test, you had to physically return to collect your results. These are issues we’ve already solved in Nigeria,” Oni said. MDaaS is among several Nigerian startups expanding abroad following a 70% depreciation of the Naira against the dollar due to recent economic reforms. Investors are increasingly urging cross-border expansion, particularly into Francophone West Africa, where the Euro-pegged currency provides greater stability. “This is a tough time for venture-funded companies like ours [because] most people are not getting funded anymore. Right now, we’re dominating Nigeria, but even so, I think the current landscape accelerated our Pan-African expansion.” In addition to its diagnostic services, MDaaS operates Sentinel, a B2B digital health platform focused on preventive care. However, the majority of its revenue—65%—comes from B2C services, with 35% from B2B. It took the startup six years to develop tech that automates processes, reducing costs and allowing patients to complete an average of three to four tests per visit. MDaaS claims it has diagnosed over 360,000 patients, with over a third diagnosed just this year. “It’s been our best year ever,” Oni said, attributing much of this growth to Nigerian second-tier cities like Ibadan, Ilorin, and Akure. The startup, which raised $3 million in March 2024 from Nigerian VCs like Aruwa Capital and Ventures Platform, only pursued expansion this year due to the capital and operations-intensive nature of building and managing its 16 diagnostic centres across Nigeria. MDaaS hopes to build and learn from its expansion into Douala as it begins to strengthen its foothold in the West African market. “Our big motto is “building healthcare for Africa’s next billion,” so everything we’re doing furthers that goal.” From MIT to MDaaS: Meet the couple solving Nigeria’s medical diagnostics problem
Read MoreKobo360 is developing HaulSight, a fleet management software for Africa’s big businesses
Kobo360, the Goldman Sachs-backed truck-hailing startup, is developing a subscription-based fleet management software called HaulSight. The software enables businesses to track their fleet of vehicles, plan routes, and access invoice discounting. Developed this year, HaulSight is an opportunity for Kobo360 to increase revenue from its existing clientele—manufacturers like Flour Mills, Dangote, and FMCGs like Unilever—all of which operate large in-house fleets. Unlike Kobo360’s truck-hailing platform, HaulSight is a pure software solution that doesn’t involve sourcing trucks, managing drivers, or handling cargo-related liabilities during transit. HaulSight comes at a time when rising fuel prices are shrinking margins for truck drivers in Kobo360’s network, forcing the company to adjust its commission structure. The company faces a delicate balance between truck drivers seeking higher fares and cargo owners, who must keep costs low to maintain affordable pricing throughout the supply chain. Kobo360 did not immediately respond to a request for comments. Over the years, Kobo360 has reduced its commission from 20% in 2019 to 8% in 2021, highlighting the limited negotiating power of truck-hailing startups compared to their corporate clients. This contrasts with the taxi-hailing sector, where companies like Uber, Indrive, and Bolt started with low commissions but have since raised rates to around 15%. “The bureaucracy it takes to renegotiate new prices with [corporate] cargo owners to meet demands of the truck owners can go on for weeks,” said Alex Adenuga, CEO of Movam, a B2B logistics startup. “And it only works out favorably if the truck aggregators have a close relationship with the cargo owners [manufacturers, suppliers, etc.]” Fleet management software offers Kobo360 a new revenue stream from cargo owners and micro-fleet operators, bypassing the challenges inherent in the aggregator model. “The visibility provided by fleet management software can help companies save significant amounts of money,” said Adenuga, whose startup also offers fleet management solutions. “However, the market is not large enough to generate the revenue and growth expected by a VC-backed company.” Several established fleet management software providers are competing for a small pool of large clients, including Flour Mills, Dangote, and Tolaram. Foreign fleet management software providers in the region typically charge $7-$50 per vehicle per month, while local providers charge ₦100,000-₦150,000 per vehicle, which is affordable for large companies but costly for small businesses. Focusing on large companies often means long sales cycles. “It could take a year if you’re lucky. If you haven’t run out of funding by then, it can be a challenging and frustrating process,” Alex said. However, Kobo360’s long-standing presence in the B2B logistics sector since 2017 gives it the advantage of established relationships that could help accelerate the sales process for HaulSight. Nonetheless, software sales are even harder to pull off with big corporates because of switching costs. “One popular manufacturer in Nigeria has been using Nova Truck for years. Switching to a different provider would be a painful transition for them.” However, Kobo360 is not the only logistics startup willing to look beyond these challenges. SendStack, a 2-year-old logistics startup, recently ditched the aggregator model for its last-mile delivery platform to sell fleet management software to fleet owners. Another B2B logistics expert who declined to be named agreed that the margin in software is an easier sell to VCs. However, he also thinks fleet management products can bring necessary visibility into the “chaotic” industry of truck logistics. “There is a pain that efficient truck management can solve for [manufacturers and FMCG businesses] because those assets are very expensive [and these businesses want to make the most of them.]” With this new product, Kobo360 can extract more value from its current customer base, including the micro-fleet owners within its network of over 50,000 trucks. “Truck logistics is a chaotic industry,” one B2B e-commerce expert who asked not to be named said. “There is a pain inefficient truck management can solve for these guys because those assets are very expensive [and these businesses want to make the most of them].” *Editor’s note: An earlier version of this story stated Kobo360 launched HaulSight. The product is still in development.
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Next Wave: Africa’s e-mobility future rides on two-wheelers
Cet article est aussi disponible en français <!– In partnership with –> First published 10 November, 2024 Two-wheelers, especially electric motorbikes and scooters, are emerging as the future of e-mobility in Africa, driven mainly by the region’s infrastructural challenges, government policies, and economic factors. Across sub-Saharan Africa, sales of motorbikes–commonly referred to as bodaboda in East Africa–have overtaken those of private cars. By 2030, motorcycle sales across the region will increase to over three million, with an electrification rate of 22%. This will be higher than other types of vehicles used in Africa. On the continent, over 200 million people use motorbikes for delivery services or to get to work. In East Africa alone, 100 million people rely on two-wheelers as the primary means of transport, making them an indispensable part of the public transport system in Nairobi, Kigali and Kampala. In villages where road connections are poor, they are used to transport people and produce to the markets. In some remote areas, they are even used to transport the sick to hospitals, highlighting their significance in bridging the transportation challenges. The Africa E-Mobility Index by the United Nations Environmental Programme (UNEP) shows that over half of 21 African countries have passed fiscal incentives and set e-mobility targets, pushed by the high cost of fuel imports and the Paris Agreement on CO2 emission reduction. For instance, Kenya has developed a National E-mobility Policy, which supports local battery manufacturing and recycling. The successful integration of two-wheelers into the existing transport systems has given birth to more than 20 EV startups, with Ampersand, Spiro, M-KOPA and Roam leading the charge. Next Wave continues after this ad. Join us at the Bluechip AI & Data Summit 2024 on December 2nd in Lagos! Explore the future of Africa through AI and data-driven solutions. Connect with industry leaders, attend expert panels, and discover innovations reshaping finance, healthcare, and beyond. Don’t miss this opportunity. JOIN US Rwanda’s Ampersand has over 4,000 e-motorbikes and expects to surpass 40,000 by the end of 2026, while Spiro has produced 18,000 across Kenya, Uganda, Rwanda, Togo, Benin and recently launched in Nigeria. The low operation costs of electric two-wheelers have made them attractive to millions of riders. With fuel motorcycles, the riders spend more than $11 daily on fuel and leasing costs, leaving them with about $2 as a take-home. Local startups have developed mass-market e-motorbikes that cost less to buy, operate and maintain than a fuel equivalent. Riders have reported that they can make two and a half times as much with electric two-wheelers than when they ride a petrol-powered one. With many startups ramping up local production capacity and investing in charging infrastructure, electric two-wheelers have become cheaper to purchase and maintain. This has made them accessible to a larger portion of the population, more than electric cars, which are gaining traction in mature markets like the EU and the US. The lower initial price and reduced maintenance costs–fewer parts and no oil changes–make e-motorbikes attractive in African economies with high rates of low-income consumers. For gig economy workers, the motorbike leasing models fronted by companies like Uganda’s Zembo make EV ownership even more affordable. All EV startups on the continent have battery leasing or pay-as-you-go models that have cut upfront costs. EV experts estimate that renting and swapping batteries saves riders more than $500 annually, boosting earnings for gig workers with razor-thin margins. Next Wave continues after this ad. PalmPay is a leading fintech platform focused on driving economic empowerment across Africa. Trusted by over 35 million Nigerians and 1.1 million businesses. Start enjoying a 99.9% transaction success rate with Palmpay. Sign up here. African policy-makers have not matched the rapid urbanisation with infrastructural development. Severe traffic congestion in cities like Lagos, Nairobi, Cairo and Kampala has become part of the population’s daily life. Food delivery services and e-commerce growth have necessitated an efficient urban low-emission transport system. Two-wheelers can quickly cover short distances in dense African metropolises at low operational costs and emissions. Local startups have proved that it is easy to electrify the two-wheelers, matching Africa’s decarbonisation efforts to those of advanced economies like China, Europe and the US. The global EV cars market has failed to adapt its solutions to Africa, leading to a slow uptake. American EV maker Tesla and Chinese BYD have little appetite for the African market, partly because of the lack of supporting infrastructure. EV range concerns present a huge difficulty in their adoption, particularly because of uneven road quality and the high cost of developing charging networks. Many electric two-wheeler manufacturers have resolved the challenge, designing vehicles suitable for the rugged African landscape and making them durable on untarmacked roads. This makes e-motorbikes an ideal EV option for remote African regions with less developed infrastructure. Next Wave continues after this ad. Get ready for Lagos’ tech future! Join Art of Technology Lagos 6.0 on Dec 5th, 2024, at Landmark Event Centre. Engage as an exhibitor, sponsor, or participant in AI-driven discussions shaping Lagos’ digital economy. FREE entry! Register here. Unlike electric cars, which require larger charging stations and a good electricity grid system, which most African countries like Nigeria struggle to provide, electric two-wheelers need minimal space and can be established even in informal settlements and peri-urban areas. Some startups have started developing batteries that off-grid solar systems and home sockets can charge. This makes two-wheelers viable even in regions with unreliable power access. Africa has become a hub for e-mobility innovation, with local startups creating solutions to fill gaps in transportation systems without waiting for grid expansion and infrastructure development. Companies like Ampersand, Zembo, and Roam have offered practical, affordable, and low-carbon mobility solutions that align with the continent’s socio-economic and infrastructure capacity. Adopting two-wheelers will likely accelerate in the coming years, outpacing electric cars, which demand more investment. Adonijah Ndege Senior Reporter We’d love to hear from you Psst! Down here! Thanks for reading today’s Next Wave. Please share. Or subscribe if someone shared it to
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