African climate startups see growing interest from VCs
When Priscillah Wakerera and Soinato Leboo founded Rhea, an agritech startup that provides soil testing to smallholder farmers in Kenya, in 2022, getting funding from investors was much harder. Fintechs and e-commerce startups were still the darlings of VCs. Investments into climate and agri tech were low, while founders who managed to raise funds had to contend with lower valuations than other sectors. Rhea, which collects and analyses soil samples to help farmers choose fertilisers and seeds suitable for their farms, is part of a constellation of African startups that caught the attention of investors at the just concluded AfricaArena climate summit in Nairobi. Rhea was awarded the best climate tech startup at the two-day event. “It was challenging to attract investors because the focus on soil health improvement wasn’t mainstream. However, as we demonstrated traction in our core market and aligned with the growing focus on climate change, impact investing, and agricultural technology, we’ve seen more interest from both local and international investors,” Priscilla Wakarera, Rhea Co-Founder and CEO told TechCabal. While VC funding for startups has been on a general decline, the proportion of money flowing to climate mitigation and adaptation startups is growing. Since 2019, the sector has raised over $3.5 billion. In 2024 H1, the sector received 45% of the $325 million raised by African startups, reflecting the growing interest in the area. Climate tech firms offer solutions for water and sanitation, renewable energy, carbon removal, and land restoration. “The funding raised by everything related to agritech, climate mitigation and adaptation solutions is growing. This is the only sector that holds many promises for the future of African tech,” said Christophe Viarnaud, founder and CEO AfricArena, a tech accelerator. Solutions such as clean energy, circular economy, predictive infrastructure and sustainable agriculture are attracting significant interest from VCs–and event donor funding. Since 2022, for example, the Kenya Climate Innovation Centre (KCIC), a non-profit organisation, has raised over $150 million in funding for small enterprises in the sector. Gerishom Manyengo, a KCIC business analyst, told TechCabal that over 3,000 small businesses in its network are benefiting from a surge in funding for solutions in subsectors such as solar energy, waste management and reforestation. “There is strong interest in scaling up adoption and use of solar energy, and that’s why KCIC with support from Moot Foundation is implementing a solar energy programme in horticulture, dairy and aquaculture in Kenya, Uganda and Tanzania,” Manyengo said. Climate VCs in Africa believe the continent has more potential as they expand their scope of interest to include food production and disaster management. Funding to the sector rose from $340 million in 2019 to $959 million in 2022, hitting $1.1 billion in 2023, according to The Big Deal. Climate subsectors that have received more funding this year include logistics and transport ($215 million) and energy and water ($132 million). Josh Romisher, CEO and co-founder of Holcene–an African-focused climate VC–believes that deals in the sectors will continue growing in the coming years. “Africa is about to grow, it is about to consume and become a massive part of the global conversation on climate issues because we have to grow it differently and better. There are massive innovation opportunities that can be unlocked today,” Romisher said.
Read MoreExclusive: Lagos in talks with IHS and WIOCC to expand fibre duct infrastructure
IHS Towers, Africa’s largest tower company, and WIOCC, a global telecom infrastructure provider, are in talks with the Lagos State Government to complete its 6,000km fiber duct project. The companies will also extend the project to 36,000km, said Olatunbosun Alake, the Lagos State Commissioner for Science and Technology. The initial fiber duct project, which kicked off in 2020, was delayed due to contractual disputes between Lagos State and the contractor, Western Telecoms and Engineering Services Limited. Alake declined to comment on the specifics of the disagreement. “The department handling the project is not under my ministry, but there are plans to relocate them to the Ministry of Science and Technology,” he said. Western Telecoms had previously laid 2,700km of fiber duct and cables between 2020 and 2022. The company secured connectivity deals with major telecom operators, including MTN Nigeria, Airtel, Liquid Telecom, MainOne, Dolphin Telecoms, Swift, and Spectranet. Over 1,000 MTN and Airtel base station sites were successfully connected to the fiber infrastructure. However, the project failed to meet its 2023 deadline for completion. Fidelity Bank and other financial institutions provided the initial funding for the 6000km project, estimated to cost $200 million. Alake did not disclose the cost of the expansion which will be funded by WIOCC and IHS. A WIOCC spokesperson confirmed the talks but declined to comment on the financial commitments involved. IHS did not immediately respond to requests for comments. Home to over 521 startups and headquarters of different multinationals, improving internet quality is vital for the economic growth of Lagos. However, with only 7,864.50 km of fibre deployed out of the needed 36,000 km, high-speed internet remains a challenge. The state aims to attract more investment using fibre ducts to protect the infrastructure. The Lagos State fiber duct project is part of a broader “Dig-Once” policy launched in 2020 to solve inconsistent fiber deployment by telecom and utility companies. Frequent vandalism of fibre cables and cuts from road construction have plagued the existing network. With the dig-once framework in place, construction workers in the state can avoid damaging fiber installations, enhancing the reliability of telecom services. Popular in regions like the Eurozone and the U.S., and gaining traction in emerging markets, dig-once policy aims to install robust, long-lasting ducts that protect fiber cables. Fiber cables typically last 20 to 25 years, but the ducts themselves can endure for 25 to 50 years, providing a cost-effective and sustainable solution for future infrastructure. Lagos is not alone in embracing the dig-once policy. Osun State, the Federal Capital Territory (FCT), and Cross River State have adopted similar strategies. For Alake, the time is ticking as the project needs to be delivered by 2027 when the current administration leaves office.
Read MoreIndependent report finds no evidence of favoritism claims against MTN Group CEO
MTN CEO Ralph Mupita has been cleared of an allegation of giving preferential treatment to an unnamed female executive after an investigation by an independent law firm. The misconduct allegations, filed by an anonymous complainant, made headlines earlier this week and reportedly led to several members of the company’s executive team threatening to resign. One of the allegations was that Mupita transferred responsibilities of MTN South Africa’s CEO to the unnamed executive. The investigation found no evidence of improper conduct, and attempts to engage with the complainant were unsuccessful, MTN said in a statement on Friday. “In its deliberations, the board accepted the report finding and is of the view that the matter has been addressed and is now closed. The board further expressed its full support for the Group Chief Executive Officer and the MTN strategy.” The outcome of the investigation is a sigh of relief for Mupita who has come under fire over the favouritism allegations which raised serious questions about corporate governance at Africa’s biggest telco. On Tuesday, Mupita assured employees that MTN had governance processes in place to address their concerns. Mupita also reportedly garnered the support of ten of the company’s 15 following the allegations. Since 2021, MTN’s South Africa subsidiary has seen numerous high-ranking executives leave the company. These include CEOs Charles Molapisi, Godfrey Motsa, CTO Giovanni Chiarelli, chief strategy officer Marco Gagiano, chief sales and regional operations officer Phillip Besiimire, chief technology and information officer Michele Gamberini and chief sustainability and corporate affairs officer, Jacqui O’Sullivan.
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👨🏿🚀TechCabal Daily – How OmniRetail cracked African e-commerce
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF We’ve got ₦1 million up for grabs. We’ve partnered with Zedcrest Wealth to host the first edition of the Money Titan Tournament at Moonshot 2024. Test your financial literacy by competing in five exciting stages, from Beginner to the Grand Finale, with rewards at every level. If you’re ready to become the Money Titan 2024 and win the cash prize, sign up on the Zedcrest app and join the waitlist. Sign up now. How did OmniRetail crack B2B e-commerce in Africa? Flutterwave names Mitesh Popat as new CFO Funding Tracker The World Wide Web3 Opportunities Companies How did OmniRetail crack B2B e-commerce in Africa? Image Source: Ganiu Oloruntade/TechCabal. African B2B e-commerce businesses raised a combined $423 million between 2021 and 2022 because their value proposition worked: they helped informal retailers stock up inventory faster by connecting them to wholesalers. Fast-moving consumer goods (FMCG) needed to be sold off quickly due to their short shelf life and to accommodate the high demand for these products. But the delivery delay from distributors made this a lingering problem. Retailers were losing money and business was shrinking. B2B e-commerce companies formed partnerships with manufacturers, often deploying their logistics fleet and inadvertently displacing distributors. Soon, this situation kept everyone in a bind: retailers wanted better rates, and the companies had to compete with distributors. These businesses were seeing some red as low margins and unit-level losses became challenges for the business. Yet OmniRetail, a B2B e-commerce company founded by Deepanker Rustagi in 2019 claims it has cracked the code to profitability. OmniRetail does not attempt to replace the middlemen. It offers three products: Omnibiz for retailers, Mplify for distributors, and an embedded finance app, Omnipay for facilitating payments. Retailers place orders on Omnibiz, and the company, using their bulk orders as a bargaining chip, gets favourable discount offers that they pass to the retailers. As soon as these orders tick off, distributors pick it up on Mplify and deliver last-mile to retailers. “The value chain margin in commerce has various layers, including distributors, wholesalers, and retailers. If you can play a role in these different layers of efficiency, you can get a large amount,” said Rustagi. For a company that claims to have achieved net profitability, OmniRetail’s asset-light approach allows it to achieve even greater economies of scale. Go deeper in our OmniRetail coverage here. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy. Companies Flutterwave names Mitesh Popat as new CFO Image source: Flutterwave Flutterwave has appointed Mitesh Popat as its new chief financial officer (CFO), replacing former CFO Oneal Bhambani who left the company in November 2023. Before joining Flutterwave, Popat spent 18 years at Citi where he served as CFO for the Middle East and Africa (MEA). Popat revels in executing financial business growth strategies. His work navigating financial compliance at Citi in the MEA region is an addition Flutterwave will be keen on having on their team, given their expansion goals. In 2024, the fintech company expanded its payments infrastructure to Southern and Eastern African markets, with its latest licence acquisition in Uganda. Equally, the company is actively cutting off cash-burning products and aggressively pursuing new growth markets. It has shut down its struggling money transfer product, Barter, opting instead to stick with its remittance product, Send. It also shifted its focus to enterprise payments and laid off 3% of its staff who were working on products the company deemed surplus to requirements. Flutterwave is looking to connect more African markets to its ecosystem. And Popat’s new job will see him ask questions daily about how the company will capture more money while losing less—to boost retail investors’ confidence—as it continues to front-pedal its plan to go public. Fincra secures International Money Transfer Operator (IMTO) licence in Nigeria Since its inception, Fincra has provided businesses with local payment options. However, with the IMTO licence, Fincra can now manage funds transfers from abroad to Nigerian recipients more efficiently. Read more here. Insights Funding Tracker Image source: Stephen Agwaibor/TechCabal This week, Nigeria’s Kredete, a financial software platform, secured $2.25 million in seed funding. The funding round was led by Blockchain Founders Fund, with participation from Techstars, Tezos Foundation, Polymorphic Capital, Launch Africa, Neer Venture Partners, and DNA Fund. (September 2) Here are other deals for the week: Chpter, a Kenyan e-commerce startup, raised $1.2 million in a pre-seed round. Pani led the funding round with participation from Plesion Capital, Techstars, Norrsken, Renew Capital, Viktoria Ventures, and angel investors. (September 2) Tunisian IoT-based smart energy management solution startup Wattnow announced the closing of an undisclosed multi-million dollar funding round. The round was led by Lateral Frontiers and 216 Capital, with participation from Outlierz Ventures, Satgana, Octerra Capital, and other strategic angel investors. (September 4) Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. Before you go, our State of Tech in Africa H1 2024 Report is out. Click this link to download it. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog → CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $56,408 – 1.32% – 1.30% Ether $2,380 – 1.28% – 5.85% Toncoin $4.86 + 6.20% – 15.75% Solana $129.44 – 2.88% – 15.75% * Data as of 06:40 AM WAT, September 6, 2024. Events Inside the big stories transforming the Arabian Peninsula and the world. Introducing Semafor Gulf – your go-to source for understanding the rising influence of Saudi Arabia, the UAE, and Qatar. Three times a week, the Semafor Gulf newsroom will bring you original reporting that examines how the region’s financial, business,
Read MoreBreaking: Flutterwave names ex-Citi executive Mitesh Popat as new CFO
African payments giant Flutterwave has appointed Mitesh Popat as chief financial officer (CFO) nine months after former CFO Oneal Bhambani left the company. Popat held executive positions at Citi including CFO for Middle East and Africa and Global Equities Sales and Trading. He will oversee Flutterwave’s corporate finance functions. With two decades of experience in global financial services across different markets, Popat will be instrumental in driving Flutterwave’s next phase of growth and financial sustainability, the company said in a statement. “I have a deep understanding of the operating environment in Africa and complexity of operating an emerging market business and I plan to bring my experience in growing Flutterwave, while optimising our business model for sustained profitability,” Popat said. The ex-Citi CFO replaces Bhambani who resigned just 18 months after joining the fintech startup. In March 2024, Flutterwave’s chief operating officer, Bode Abifarin left the company after six years of leading its operations. These high-profit exits had raised questions about the company’s much-talked-about IPO plans. Popat’s hiring comes after the company rethought its product strategy to focus on enterprise and remittance. In March 2024, it shut down the struggling Barter, a virtual card and international payments service it launched in 2017. In 2023, it relaunched its international remittances product, Send App, and launched other offerings to help local businesses swap international currencies. “As our new CFO, his work will be adding value to our customers – both enterprise merchants and retail remittance customers, as well as the African fintech ecosystem,” said Olugbenga Agboola, Flutterwave CEO.
Read MoreCracking the code: OmniRetail’s Deepankar Rustagi believes profits are sure
OmniRetail is Deepankar Rustagi’s second stab at a technology-enabled marketplace. For his second turn, he believes he has cracked the code. When Deepankar Rustagi founded Vconnect in 2010, it was one of Nigeria’s first marketplace products for hiring freelancers and artisans. Despite reaching over 400,000 businesses, an absence of integrated payments in a pre-Flutterwave world caused problems, and Vconnect closed its doors in 2017. In 2019, Rustagi took another stab at another marketplace, this time for fast-moving consumer goods. He set out to digitise Nigeria’s traditional supply chain with OmniRetail, a B2B e-commerce startup that connects retailers to manufacturers and distributors. OmniRetail is a function of Rustagi’s sales experience in Tolaram, the Indomie noodles maker, and a first-hand understanding of the bumpy road manufacturers must take to reach retailers. Technology is the asphalt that makes the road smoother, Rustagi believes. Building this road with technology in Africa’s large informal markets is challenging. Traditional wholesalers, who have deep networks of retailers, and buy enough volumes to receive discounts from manufacturers, are difficult to unseat. While one school of thought believes consolidation—such as Wasoko’s recent merger with MaxAB is the answer—Omniretail’s CEO believes in a hybrid approach. He believes the key to success is a mix of consolidation of strong players and technology companies onboarding traditional middlemen. OmniRetai’s pitch to retailers is that they will benefit from joining a “network of networks.” This network comprises three products: Mplify, a platform for distributors; Omnibiz, a platform for retailers; and Omnipay, a payment product. In practice, it looks like a retailer ordering products on Omnibiz, a distributor nearby accepting that order on Mplify, and making payments through Omnipay. OmniRetail has moved quickly since its launch, raising $3 million in 2021 and reporting revenues of ₦59.3 billion in 2022. By 2024, it topped the Financial Times list of Africa’s fastest-growing companies. Rustagi credits this rapid growth to the company’s deep market understanding. Before scaling its model, it used Surulere as a sandbox. “We did our small experiment in Surulere to get the right unit economics right, then we started multiplying into other areas, and now into other countries, and we saw the power of scale.” The company claims to serve 140,000 retailers, 4,500 distributors, and 135 manufacturers and has a monthly gross merchandise value (GMV) of $160 million. OmniRetail makes money by getting a margin from a distributor to sell its products faster to retailers. It also makes money from the manufacturer by providing them insights on how their products move within the market. Information like this can improve efficiency by ensuring they produce just what the market needs at any given time. The revenue lines indicate OmniRetail’s knowledge that merely replacing the distributor is a small-margin game. “The value chain margin in commerce overall looks like 35%, and there are various layers, including distributor, wholesaler, and retailer. Transportation is happening at each stage, and working capital and loans are required at each stage. If you can play a role in these different layers of efficiency, you can get a large amount.” While Rustagi will not be drawn into sharing exact figures, he claims OmniRetail’s net profit margin has increased by 8%. ”Our gross margin has increased by 4%, and our losses have converted into profitability. Today, we are a net profitable company.” It has found early success in food and beverages where “margins are thin, but profitability is sure.” “If you look at how much money you spend in a month, a significant portion goes into buying bread, noodles, pasta, garri, and rice. If we can deliver low-margin categories, then tomorrow, when we onboard other categories, we can grow our margins.” OmniRetail will also grow its business to Francophone Africa and has tapped Steve Dakayi, an ex-Jumia executive, to lead the expansion. In Nigeria, it will expand to 24 cities, almost double the ten it currently operates in. “We are now considering scaling outside food and beverages into other essential goods. We are not doing electronics; it is still another aspect of retail,” he said. Rustagi also discussed the company’s use of Artificial Intelligence, which has captured the imagination of shareholders and business leaders. In 2020, Rustagi says OmniRetail built an AI model that gives retailers data on customers’ buying patterns. Retailers use those insights to stock in-demand brands and improve their turnover. With increased turnover will come a need for loans, which OmniRetail provides in partnership with the Bank of Industry. “You don’t just have to ensure logistics and fulfillment. You have to ensure payments and credit as well.” OmniPay is integrated with 14 financial institutions, including Paga, Stanbic IBTC, Access Bank, and Moniepoint. “Now, we do ₦20 billion in payments every month. And the way it is growing, I think very soon, we’ll be doing 10s of millions every day.” Listening to Rustagi, it’s difficult to believe this sector has generated multiple think pieces questioning its future. It doesn’t feel like irrational optimism; Rustagi genuinely believes OmniRetail has cracked the code. “We are a company that can grow 10x in three years.”
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Latest UIF 2024 login, status check, claim submissions & more
The Unemployment Insurance Fund (UIF), under the Department of Employment and Labour, has introduced a range of online tools designed to make accessing UIF services more convenient. Employees across South Africa can now use these digital resources to streamline their interactions like claim submissions and status check with the UIF, significantly reducing the need for physical visits to labour centres in 2024. The UIF portal login At the heart of these improvements is the UIF portal login, which provides access to the uFiling system. This platform allows users to manage their UIF claims from home, offering several key features: Submit claims: The UIF portal login facilitates easy claim submissions without the need to visit a labour centre. Check status: Through the portal, users can perform a UIF status check 2024 to monitor the progress of their claims in real-time. Submit enquiries: The system enables users to address any questions or concerns directly through the portal. To start using these features, visit https://ufiling.labour.gov.za/uif/ and log in with your credentials. Alternative access: UIF status check 2024 via USSD For those without reliable internet access, the UIF has introduced a USSD service to check UIF status. This service, accessible by dialing *134*843# on any mobile phone, offers: Claims and payment Status Employee registration Payment continuation General enquiries This UIF status check 2024 via USSD ensures that clients can stay informed about their UIF claims without needing to log into the portal. Mobile assistance and enhanced connectivity UIF Commissioner Teboho Maruping announced additional initiatives aimed at reaching those in remote areas. Mobile buses now travel across provinces to assist clients who cannot access labour centres easily. Furthermore, all labour centres have been equipped with free Wi-Fi, allowing visitors to use the UIF portal login for their online needs. In addition, 3,000 marshals and officials are on hand to help with online applications and ensure a smoother user experience. Future plans include an employer-driven process, allowing employers or organised labour to handle applications on behalf of their employees, further streamlining the UIF process. Downtime issues with UIF login 2024 The UIF is committed to enhancing its digital services and aims to eventually eliminate the need for physical office visits. The goal is to make the UIF status check 2024 more accessible and user-friendly, with the UIF portal login serving as a central hub for all related activities. Stakeholders should be aware that the uFiling system may be intermittently unavailable due to maintenance. During these times, visiting a local labour centre remains a viable option. For more information or media inquiries, please contact: Mapula TloubatlaProvincial Communications Officer: LimpopoPhone: 082 908 1833Email: mapula.tloubatla@labour.gov.za With these advancements, the UIF is making significant strides towards a more efficient and accessible service, ensuring that all South Africans can manage their UIF needs with ease through the UIF portal login and regular UIF status check 2024.
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👨🏿🚀TechCabal Daily – Congo cancels $1.2 billion national ID project
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning This is our last call for reviews on TC Daily design. If you have something to say about the newsletter’s design, please let us know by filling out this form. Airtel moves to unlock new revenue streams Congo cancels $1.2 billion national ID project Fuel hikes in Nigeria force Uber to review fares Huawei to build more data centres in Africa The World Wide Web3 Opportunities Companies Airtel Nigeria’s move to unlock new revenue streams Image source: Airtel Mature businesses have established positions in the market. They usually have a strong mix of assets and liabilities on their balance sheets, people either love them or hate them for one reason or another, and they are often considered important businesses. Yet, these companies everywhere face the same problem: capped revenues. A mature business needs help to grow. Because it has a mature product line known by everybody, its growth rate slows. When growth slows, money inflow stalls with it, making reaching new heights difficult. In cases like this, mature businesses try to unlock new revenue streams by targeting a new audience or entering a new market. Airtel Nigeria, the country’s second-largest telco and arguably a mature business operating since 2001, is doing this same thing with its subsidiary: Airtel Nigeria Telesonic Limited. On September 4, the Nigerian telecoms regulator, the Nigerian Communications Commission (NCC) awarded Telesonic with three new licences to provide internet services, sell telecoms infrastructure, and provide wholesale long-distance telecoms services. Airtel Nigeria, through its subsidiary, will enter new markets to try and unlock new revenue opportunities and provide a buffer to its telco business that so often takes a business hit due to operational and forex losses, owing to currency devaluation. Though its market choice of entry is questionable due to the participation of other established players, with a stroke of luck and a lot of branding activity, Airtel Nigeria will reach a new audience that will open new pathways to profit for it. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy. Economy DRC cancels $1.2 billion national ID project Image source: AP Archive The Democratic Republic of Congo (DRC), one of the world’s poorest countries, has no national ID system. This lack of civil registry has made it difficult to know the country’s population, who can vote, or who is eligible to pay tax. Citizens of the country also struggle with securing official documents, cash checks, opening bank accounts and receiving money from abroad as a result. Despite many failed promises by the country’s leaders to build a national ID system, the country’s latest stab at building a national ID system has been put on hold. In 2020, close to 60 companies reached out to the Congolese government to provide a national ID system. The project was estimated to cost about $360 million, according to the country’s Ministry of Interior. When biometrics provider Idemia and local partner Afritech emerged as the preferred provider, their proposed cost ballooned to about $1.2 billion. The proposed figures, more than three times the ONIP’s cost estimates, made activist groups and government watchdogs frown against the project, warning against potential misuse of funds. These warnings by watchdog groups prompted the government to cancel the deal. If the deal had been executed, it would have been one of the most expensive digital identity contracts in history. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Mobility Fuel hikes in Nigeria force Uber to review fares Image source: Nairametrics Since President Bola Tinubu removed fuel subsidy in 2023, the price point for fuel has jumped four times—₦195 to ₦540 to ₦610, and now ₦897 per litre. Gig drivers have had to deal with these price increases, leaving ride-hailing companies to constantly review base fares. These ride-hailing companies will once again make the decision after the NNPC set new fuel prices to about ₦897 per litre. “We are currently conducting a comprehensive review of the recent increase in fuel prices and considering various initiatives to minimize its impact on driver earnings,” Uber’s spokesperson told TechCabal. Before now, drivers have always complained that the price increment by Uber and Bolt did not meet their expectations. These drivers have also clamoured for a reduction in commission. However, ride-hailing companies risk driving riders away with exorbitant price increases. Already, ride-hailing is becoming a luxury to most users. Still, drivers want increased prices, with some turning to rival inDrive, the ride-hailing platform that uses a bidding system that allows drivers and riders to set fares and charges less commission. One contrarian idea might be that both Uber and Bolt may need to copy inDrive’s model to win over drivers. Bolt has implemented a flexible pricing model, similar to inDrive’s, allowing passengers to bid higher fares to drivers, increasing their likelihood of securing rides during peak demand times. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog → IoT Huawei to build more data centres in Africa Image source: Hyperscale Huawei, a Chinese global technology company, has been silently making its mark on the African tech scene. After entering the African market in 1999, Huawei had to compete with already established players like Ericsson and ZTE in the telecoms market. However, soon enough, it gained credence by doing just one thing: it expanded to carrier and enterprise services. The allure of getting full-service
Read MoreAirtel Nigeria’s subsidiary secures three licences to open new revenue streams
Airtel Nigeria, the country’s second-largest mobile network operator, has secured three telecom licences from the Nigerian Communications Commission (NCC) as it looks to unlock new revenue streams. The licences include an Internet Service Provider (ISP) license, a National Long Distance license, and a Sales and Installation Major license. All three licences were awarded to Airtel Nigeria Telesonic Limited, a subsidiary of Airtel. While Airtel Nigeria could have operated in the ISP market using its Unified Access Service Licence (UASL), securing a standalone ISP license appears to be a strategic move to bolster its dwindling revenue in the Nigerian market–Airtel Nigeria reported a $13 million loss in H1 2024. The National Long Distance license, valid for 20 years, will allow Airtel Africa to provide telecommunication service over a long distance network – MTN already got into the business through its subsidiary Bayobab. The Sales and Installation license, valid for five years, permits the subsidiary to sell, install, and maintain telecommunications infrastructure. Although Airtel Nigeria Telesonic Limited was incorporated on August 26, 2026, and launched on February 13, 2024, it has not officially begun operations. One person familiar with the matter said internal processes, including mapping the size of the investment and the logistics needed, must be completed before operations begin. “Getting the licences is like a bank launching a fintech subsidiary,” said a telecom executive who asked not to be named. “By keeping it separate, Airtel Nigeria can act as a wholesale supplier to Telesonic, which holds the ISP license. This arrangement allows Airtel to report revenue as a wholesale supplier, while Telesonic reports the bandwidth costs, effectively reducing their tax liabilities by lowering gross profits.” Airtel Nigeria did not respond to a request for comments. Airtel Nigeria is the latest entrant into the competitive ISP market. Competitors like MTN Nigeria and Globacom have made significant inroads since launching their ISPs in 2022 and 2024, respectively. The market is dominated by players like Spectranet, FiberOne, and Starlink. Airtel’s move could invigorate a market that has seen numerous exits due to the harsh operating environment driven by inflation and FX volatility. However, this expansion may be constrained by its cost-reduction measures. The company is reportedly renegotiating contracts with tower companies to reduce its foreign exchange exposure, suggesting that it may not have substantial funds to invest in its new subsidiary. “All mobile network operators are increasingly focusing on last-mile services because they offer higher profitability,” a CEO of an ISP company who asked to remain anonymous to speak freely told TechCabal. “Take voice services, for example—the interconnect rate is still ₦7 per minute, a rate set around 20 years ago. Consider what the dollar and diesel prices were back then, which are essential for powering their base stations. This is the rate MTN Nigeria pays them per minute for calls that MTN routes through their network.” Airtel Nigeria’s move to enter the ISP market, though belated, could potentially shake up the sector which has shrunk over the past year with many operators shutting down due to high inflation and foreign exchange crisis in the country. However, to make a dent in the market it needs to grow the current size of the ISP market which stands at 262,207 active subscribers with an average revenue per user (ARPU) of ₦10,000 to ₦15,000.
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Uber conducting internal review as drivers expect ride-hailing companies to raise prices
Ride-hailing platforms are considering raising ride fares as fuel prices soar to ₦897 per litre, following two months of fuel shortages in Nigeria. If they adjust fares, the platforms would need to find a middle ground that will balance the needs of drivers and passengers—a tough ask. “We are currently conducting a comprehensive review of the recent increase in fuel prices and considering various initiatives to minimize its impact on driver earnings. Our aim is that Uber remains the app of choice for drivers while ensuring an affordable service for riders.” Tope Akinwumi, the Nigerian country manager for Uber, told TechCabal. Drivers are already expecting ride-hailing platforms like Uber and Bolt that use algorithms to set prices to increase fares following the latest increase in fuel prices. While ride-hailing companies decide on raising fares, drivers are turning to Indrive, a ride-hailing platform that uses a bidding system that allows drivers and riders to set fares. Bolt did not respond to a request for comments. In the meantime, in Lagos, Nigeria’s economic capital, ride-hailing customers are facing a near-permanent surge in fares as fewer drivers operate on the road. Ride-hailing platforms typically use surge pricing to align ride fares with the often delicate balance of driver availability and rider demand. Drivers told TechCabal they are waiting for ride-hailing companies to react to the new pump price before they hit the streets. “If I buy fuel for ₦1,200 or ₦1,500, I will probably park my car at home for like three days and wait to see what Bolt and Uber will do about the new fuel price,” a gig driver told TechCabal. When demand exceeds supply—such as during high-demand periods or when there are insufficient drivers on the road—ride-hailing platforms apply surge pricing to incentivise drivers to get on the road. In May, Bolt introduced a flexible pricing system, similar to Indrive’s system, allowing passengers to offer higher fares to drivers to increase their chances of getting rides during periods of high driver demand. “I have been in the queue all day and I still don’t have fuel by 2 p.m., that automatically means that I can not work today,” a gig driver told TechCabal on Tuesday. Long queues at filling stations have led to traffic in major areas of Lagos, which drivers say may have led to the surge. Drivers also told TechCabal that they have been in fuel queues since 4 a.m. but have yet to buy fuel because filling stations have not started selling today, leading to a scarcity of drivers working. “There is no filling station selling fuel on the island,” a driver who asked not to be named told TechCabal. He added that he had been searching for fuel for hours but is reluctant to buy at the black market rate, which hovers above ₦1,000 per litre. Ride-hailing platforms are in an unenviable position following Tuesday’s fuel price hike as they need to appease customers—who are spoilt with options and dealing with record inflation—and drivers—who constantly demand lower commissions and increased fares.
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