Exclusive: 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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TechCabal Daily – A Valu-ed listing
In partnership with Lire en Français اقرأ هذا باللغة العربية Techies, be inspired this morning. In 2021, Ruth Ikegah was a fresh microbiology graduate earning ₦70,000 ($170 at the time) per gig. Months later, she landed a $5,000/month technical writing job that changed her life. She went on to become the first African woman to win a GitHub Star award, speak at the United Nations, and advocate for Africa’s open-source community. Today, she earns over $70,000 annually and leads initiatives that help African developers build sustainable careers in open source. Read Ruth Ikegah’s life in tech. Egyptian fintech Valu to list on the stock market Quidax lists cNGN, the Naira-backed stablecoin South Africa’s inflation remains unchanged in February HabariPay is betting on transfers World Wide Web 3 Events Economy Egyptian fintech Valu to list on the stock market Image Source: Google Swedish buy-now-pay-later (BNPL) giant Klarna has dominated news headlines after it filed its prospectus on March 14 to go public on the New York Stock Exchange (NYSE). But Valu, an Egyptian fintech startup, is not willing to let Klarna have all that shine. It has announced plans to list 20.5% of its shares—based on its book value—on the Egyptian Exchange (EGX) in 2026, as the country’s second-ever fintech IPO after Fawry. Valu, which rebranded from a BNPL startup in 2023 to offer broader consumer finance products, will be a marquee listing on the EGX. The startup was last publicly valued at $247 million in 2022 after securing a $12.4 million equity funding from Saudi investor Alhokair family. The EGX, which has struggled with liquidity challenges in recent years, is in a much stronger position to handle a fintech IPO like Valu. The exchange has been pushing for more listings to deepen the market and the Egyptian government has introduced policies to attract foreign investors. The listing will likely be good timing. In 2024, the EGX experienced a dry spell in 2024 with only two IPOs, owing to retail investors temporarily turning away their interest amid the harsh market. Since Q4 2024, the floated Egyptian Pound and the easing inflation have reduced economic pressure in the country. The listing of another familiar fintech on the exchange will also be a breath of fresh air for the bourse which has relied on real estate listings in the past. If investor appetite holds steady, Valu’s IPO could not only succeed but also set a precedent for more fintechs to go public in Egypt. Other African countries can borrow from Egypt’s playbook. A combination of clear regulatory frameworks, government-backed digital transformation programmes, and dedicated tech hubs have created an environment where startups see public listings as a viable growth strategy. 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. Cryptocurrency Quidax lists cNGN, the Naira-backed stablecoin Image Source: Ledger Insights If you’ve been dilly-dallying about whether to buy the cNGN, the Naira-backed stablecoin which launched on February 3, this may be a sign for you to lock in—not a financial advice. Quidax, another Nigerian provisionally-licenced crypto startup, has listed the stablecoin on its platform. The blockchain payments space is evolving quickly. At a glance, the payment volume for stablecoins is already reaching $2.5 billion, with the velocity of money—which shows how much the global economy is driven by these digital currencies—peaking at $622 million. There’s much hype around stablecoins because there’s real substance to it. First, stablecoins are cheap due to their operations on multiple blockchain networks. Second, in remittances, stablecoins are emerging as a cheaper alternative to sending money across Africa; we could soon see this utility apply to intra-continental payments. This is the argument that applies to cNGN. Imagine traveling from Nigeria to Kenya on a business trip. Instead of dealing with currency exchanges, you could use cNGN to buy cKES, the stablecoin pegged to the country’s local currency Kenyan Shilling (KES). You could then convert cKES to KES and withdraw it to your bank account. For this to work, there are two theories here: African local currencies need more stablecoin versions, and operators and regulators need to be more receptive to the technology, finding ways to work with it. The cNGN will likely see more utility with the listings on crypto exchanges that operate in multiple African markets, opening a gateway to remittance. However, for it to scale, there must be stronger collaboration between operators, regulators, and project developers. 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 → Economy South Africa’s inflation holds steady amid easing food prices Image Source: Wunmi Eunice/TechCabal South Africa’s annual inflation rate remained unchanged at 3.2% in February, defying expectations of a slight uptick to 3.3%. This stability keeps inflation comfortably below the South African Reserve Bank’s (SARB) mid-point target of 4.5%. A continued decline in food inflation contributed significantly to the latest inflation reading. In January, food prices rose by 2.3% year-on-year, marking a decrease from previous months and reaching levels not seen since December 2010. Per local media, staples such as bread, maize meal, rice, and pasta have seen notable price reductions, providing relief to consumers. The SARB, known for its cautious monetary stance, is expected to maintain the interest rate at 7.50% in its upcoming meeting. While some analysts anticipate a 25 basis point (bp) cut, the prevailing sentiment leans towards a pause, especially given external uncertainties like global trade tensions and domestic fiscal challenges. The MPC will be concerned that inflation expectations for the next two years have risen slightly to 4.7% from 4.6% in the first quarter. Since it uses this measure to guide its decisions, the panel prefers to keep expectations closer to the midpoint of its
Read MoreMysten Labs co-founder launches $1.3 million fund to train African software engineers
Adeniyi Abiodun, co-founder of blockchain infrastructure firm Mysten Labs, and his wife, Gloria Abiodun, have launched a $1.3 million endowment fund to train African software engineers, addressing a critical talent shortage in the region’s growing tech ecosystem. The five-year fund, managed by Inurere Foundation, will offer student loans to aspiring software engineers enrolled in the Techpreneurship programme run by Semicolon Africa, a Nigerian workforce development company, where participants will learn advanced programming languages, including Move, used for smart contract development. Meedl Africa, a fintech company, will facilitate the loans. The fund will provide loans of approximately ₦5 million ($3,300) at 12% annual interest, with repayments recycled to support new students, ensuring the programme’s sustainability. Semicolon Africa, which has trained over 800 software engineers through the Techpreneurship programme, will place graduates into jobs after completing their training. “Funds are recycled, meaning many more learners can be trained over time,” Ashley Immanuel, Semicolon COO told TechCabal. “This fund, which isn’t seeking a financial return, can attract other funding sources to offer affordable interest rates. Nigerian financial providers are interested in student loans, but with MPR at 27.5%, their rates are too high. Blending that ‘expensive’ capital with endowment funds can make loans more affordable.” The initiative is a response to Africa’s shortage of blockchain engineering talent, which threatens to slow the growth of the region’s startup ecosystem. For Abiodun, the fund is personal. Before co-founding Mysten Labs, he held engineering roles at JP Morgan, HSBC, Oracle, and Meta’s Novi, the now-shuttered digital wallet project that allowed users to hold the Libra stablecoin. “Supporting Nigerian students while inviting more builders to learn the programming language that has defined my career is immensely rewarding,” he said. “With the rise of AI and blockchain, we are committed to ensuring African students are high-level contributors to the global tech workforce.” The demand for skilled tech talent in Africa is rising as the digital economy expands with a projection to reach $712 billion by 2050. Sam Immanuel, CEO of Semicolon Africa, said the initiative could serve as a model to bridge the education financing gap. “We hope that more individuals—and companies—will follow in the Abioduns’ footsteps and invest in funds, like this endowment, that will engender sustainable talent development across the continent,” he said.
Read MoreSafaricom’s M-PESA decline continues as Airtel Money gains
M-PESA, Safaricom’s mobile money service, has declined for the fifth consecutive quarter, weighed down by increased interoperability and Airtel Money’s aggressive promotions, including transaction fee refunds as airtime. M-PESA’s market share fell by 2.3 percentage points to 91% in Q4 2024 compared to Q3, while Airtel Money grew from 7.6% to 8.9% in the same period, according to data from the Communication Authority of Kenya (CA). The sustained decline in M-PESA’s market share signals a shifting competitive landscape in Kenya’s mobile money ecosystem. Increased interoperability since 2022 has made it easier for customers to switch service providers. Airtel Money’s aggressive promotions, lower fees, and increased agent networks are drawing more customers. The growth in Airtel Money’s customers suggests that many new mobile money accounts have joined its platform. “Subscription to mobile money services grew by 4.1 percent to 42.3 million translating to a penetration rate of 82.1 percent during the reference period,” CA said in its sector report. Airtel Money remains the more affordable option for transactions, which could also explain why it’s eating into M-PESA’s market. Sending KES 1,000 ($7.7) to other networks costs KES 11 (0.085) on Airtel Money, compared to M-PESA’s KES 13 ($0.093), while withdrawing the same amount costs KES 29 ($0.22) on Airtel Money—KES 2 less than M-PESA. Airtel has also strengthened its agent network, partnering with supermarket chains like Naivas to host points where customers can deposit and withdraw cash. M-Pesa has over 160,000 agents spread across the country, giving it an edge over Airtel. The Central Bank of Kenya (CBK) ‘s plan to implement agent interoperability, which would allow users to access mobile money services from any agent, regardless of the provider, remains unfulfilled despite the regulator’s commitment to roll it out by 2024. With over 34 million customers, M-PESA is still the dominant mobile payments platform, handling over 30 billion transactions with an estimated KES40 trillion ($308.8 million). Airtel Money has an estimated eight million registered users. CBK’s planned rollout of a new Fast Payment System (FPS), which will allow instant transactions across all financial institutions, including banks and payment service providers (PSPs), could further challenge M-Pesa’s dominance in the market.
Read MoreNigeria records largest global drop in cash usage as digital payments surge
Nigeria recorded the steepest decline in cash transactions to surpass six cash-reliant economies in the past decade thanks to the rapid adoption of digital payments and rising fintech partnerships, according to a report by global payment processing company Worldpay. From 2014 to 2024, cash transactions in Nigeria fell by 59%, the largest drop among the seven major economies analysed. The Philippines followed with a decline (43%), while Indonesia (44%), Mexico (41%), Japan (31%), Germany (24%), and Colombia (22%) also saw drops in cash usage. The decline comes as electronic transactions hit record highs in Nigeria, driven by increased partnerships between banks and fintech companies to promote digital payments. The report—which analysed 40 markets representing 88% of global GDP—projects that cash usage in Nigeria will drop further to 32% by 2030 as digital payment adoption continues to grow. Digital payments in Nigeria surged in 2023, fueled by the Central Bank of Nigeria’s naira redesign policy aimed at curbing cash hoarding and money laundering. However, the controversial policy led to severe cash shortages, causing a 29.2% drop in currency circulation to ₦982.1 billion by February 2023—the lowest since 2008. As traditional banks struggled to manage the spike in online transactions, fintech companies like OPay and PalmPay seized the moment, offering reliable alternatives for money transfers and bill payments and emerging as the biggest winners of the cash crunch. “Nigerians now have an increasing appetite for non-cash transactions,” said Uchenna Uzo, a professor of marketing at Lagos Business School. Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that the volume of electronic transactions surged by 16-fold (1,514.2%) between 2018 and 2024, rising from 793 million to 11.3 billion respectively. The Worldpay report noted that while Nigeria remains a cash-heavy economy, the rate of cash has slashed by more than half from 91% since 2019, noting that “Mobile devices are playing a central role in the transformation.” According to Enhancing Financial Innovation & Access (EFInA), the financial inclusion rate rose to 64% in 2023 from 56% in 2020. In November 2024, the Central Bank of Nigeria projected the 2023 rate to increase to 80% by 2026. “Collectively, these innovations streamline payment processes, reduce reliance on cash, and improve the overall efficiency of financial transactions in Nigeria,” said analysts at Euromonitor International in a recent report. Fueled by fintech partnerships and innovation, Nigeria is rapidly solidifying its position as the dominant digital finance powerhouse in Africa. If the current pace holds, the country won’t just lead the continent in financial inclusion, it will set a blueprint for the future of money in Africa.
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How Ruth Ikegah went from Microbiologist to leading open source advocacy in Africa
In April 2021, 21-year-old Ruth Ikegah was a fresh microbiology graduate from the University of Port Harcourt (UNIPORT) just one month away from relocating to Lagos for her National Youth Service (NYSC). She was scraping by on a one-off management gig that earned her ₦70,000 ($170*). Her fortunes changed in a flash, by way of a technical writing job that paid $5,000 a month (over ₦2 million). She recalls letting out a scream during the hiring call. “It came at the lowest point of my life,” she said in our virtual interview. Today, Lagos-based Ikegah has built an award-winning career and earns over $70,000 annually. She is a leading advocate for African participation in open source initiatives that seek to promote and protect open-source software. Her work has taken her to 14 countries and led to a 2024 United Nations speaking engagement. Trained as a developer, she rarely writes code. In an industry where non-coding roles are often dismissed as lightweight, Ikegah proves that success belongs to those bold enough to rewrite the rules. Ruth Ikegah at a UN Conference in 2024 Seeds of curiosity Ikegah grew up in a broken home, with separated parents and a stepmother whose discipline bordered on cruelty. Her childhood was marked by sadness and self-doubt, she recalls. “It was so overwhelming that I shrank into myself and became extremely introverted,” she said. Boarding school jolted her awake—watching public displays of affection between her classmates and their parents made her realise her circumstances weren’t normal. “It made me think I could dream bigger and have a different life,” she said. This paradigm of self-reinvention followed her into her undergraduate studies at UNIPORT, where she struggled academically. “If I failed, I’d just think, ‘I won’t kill myself over this,’” she admitted. That changed when a friend joked that her flunking grades might end their relationship. It was a wake-up call, Ikegah told me. She read tens of pages of lecture notes, condensing them into bite-sized summaries, and even formed a reading group. Two friends from the group, Peace Ojemeh and Alabo Briggs, soon caught her attention. “They weren’t stressing over classes, yet they had expensive things. I often wondered how they afforded them,” she recalled. When she asked, Ojemeh explained she was a designer volunteering for open source organisations in exchange for stipends, often paid in dollars. She resolved to join them after graduation. In early 2020, when the COVID-19 lockdown delayed her NYSC service, she turned to her friends, who encouraged her to pursue tech-related skills she found personally appealing. She chose data analysis with Python. She recalls spending a lot of time at a Rivers State digital hub—a state government initiative for tech literacy where free electricity and internet allowed her to study for months. She took tutorials on platforms like DataCamp and DevCareer and even joined Twitter, where she encountered like-minded enthusiasts like Samson Goddy and Adaora Nwodo, and tech communities like She Code Africa. Soon she began volunteering for open source projects, including those by Linux, an open source operating system that serves as the foundation for many servers, desktops, and embedded systems worldwide. A volunteer spirit takes root Despite being unpaid, Ikegah jumped at several volunteer opportunities, including an open-source challenge organised by Open Source Community Africa (OSCA) and She Code Africa (SCA). These experiences accelerated her learning, enabled community building, and provided opportunities to develop her resume without traditional work experience. In addition, through SCA’s 2020 mentorship programme, Ikegah was paired with a mentor. The mentorship programme included weekly check-ins and challenges that also required technical writing. “I started producing articles weekly or biweekly,” she said, realising she enjoyed explaining complex topics far more than writing code. “I realised coding wasn’t my passion—I didn’t enjoy it.” Ikegah Ruth and one of her GitHub Stars Recognition and reward Months after taking her friend’s advice, Ikegah became the first African woman to win a GitHub Star award. The recognition was a turning point, bringing both job and speaking opportunities her way including the technical writing role at U.S.-based Animalz, that came with a $5,000 monthly salary. Earning that first paycheque changed everything, but it came with a heavy workload, and after 11 months, she left the role with over $10,000 in savings and an optimism that she could redefine her career. “It was tough to leave, but necessary as I have learnt to not overthink or overstay in situations that do not work for me,’ she said. “But first I took a three-month break, including a trip to Dubai—my first real holiday.” Advocating for open source for Africa After Animalz, Ikegah determined that supporting developers through documentation and community management aligned best with her interests and skills. So she transitioned into open source programme management full-time. Despite researching the field and upskilling, Ikegah found that living outside the U.S. posed a barrier to landing a full-time role and went back to volunteering. Some volunteering roles came with monetary rewards while others did not, but they positioned her as a thought leader in promoting inclusivity and diversity in open source. Despite growing awareness of open source in Africa, sustained contributions remain a challenge. Many African developers view it as an unpaid stepping stone to better job prospects rather than a long-term commitment, one of several things she hopes to change through her advocacy work. Ruth Ikegah with some of the Namibian students she mentors. Her biggest breakthrough came with the CHAOSS Project under the Linux Foundation. When she started contributing in 2020, African participation was minimal. Ikegah increased African participation in the Chaos Project by advocating for more developers to join, helping new contributors find meaningful roles, effectively communicating the project’s value to a wider audience, and conducting diversity and inclusion audits. Her efforts didn’t go unnoticed. The project’s co-founder invited her to lead a regional chapter, which she continues to lead today. Beyond community-building, Ikegah consults for African companies who want to monetise open source software through support services, subscriptions, or enterprise solutions, models
Read MoreMTN and Airtel drive 57% of IHS Towers’ revenue in 2024
MTN Nigeria and Airtel Nigeria accounted for 57% of IHS Towers’ revenue in 2024, highlighting its heavy reliance on a handful of key customers in its largest market. Nigeria, which contributed 58.3% of IHS Towers’ total earnings, remains the dominant revenue driver for the world’s fifth-largest multinational tower company. IHS Towers’ revenue fell to $1.7 billion in 2024 from $2.1 billion in 2023, with a staggering 98.5% of its earnings tied to just three mobile network operators: MTN Nigeria, Airtel Africa, and MTN South Africa Any downturn affecting these key customers—including economic instability, currency devaluation, or regulatory changes—could substantially negatively impact IHS Towers’ financial performance. Nigeria’s economic challenges, particularly the sharp devaluation of the naira since 2023, have intensified inflation and increased financial uncertainty for tower businesses operating in the country. With 58.3% of IHS Towers’ revenue tied to its Nigerian operations, further economic deterioration could hinder its growth and profitability. The company has acknowledged these risks particularly the potential impact on its key customers’ ability to meet lease obligations and sustain demand for tower infrastructure. IHS Towers is grappling with rising operating costs, driven mainly by rising fuel expenses, site maintenance, and security. Power generation remains its largest expense, making up 39.2% of the company’s cost of sales in 2024, up from 33.5% in 2023. The company spent $348 million on power generation in 2024 compared to $396 million in 2023. To save costs, the company has invested in hybrid energy solutions, combining diesel generators with solar and battery systems. As of December 2024, 41% of its sites ran on hybrid power, 33% used grid electricity with backup generators, and 18% relied solely on generators. The remaining 8% operated on direct grid connections or alternative energy sources like solar power “We, or third-party contractors we have engaged for certain sites, are responsible for monitoring the diesel levels of our generator tanks and scheduling diesel deliveries,” IHS said in its financial report. “ Given the importance of diesel for the operation of our sites in many of our African markets, we may purchase diesel in large quantities, which is then stored at our facilities.” Beyond energy costs, the financial burden of expanding its network remains significant. As of December 2024, the cost of building a new tower ranged between $50,000 and $100,000 in Africa, while in Latin America, it ranged from $40,000 to $80,000. These high costs pose a challenge for further expansion, especially in an economic environment where access to financing and foreign exchange remains restricted. Despite securing long-term Master Lease Agreements (MLAs) that typically last five to ten years, IHS Towers’ revenue remains highly dependent on the financial health of its key customers. Many of these mobile network operators rely on substantial debt or external funding to sustain operations. If they struggle to secure financing, they may cut back on infrastructure investments, reducing demand for IHS Towers’ services and impacting its revenue. However, CEO Sam Darwish remains optimistic about growth opportunities, particularly in Nigeria. The recent approval of a tariff increase by the Nigerian Communications Commission (NCC), now being implemented by major operators like MTN Nigeria and Airtel Nigeria, is expected to boost investments in telecom infrastructure. “We are extremely bullish on Nigeria at the moment,” Darwish said, expressing confidence that the tariff adjustments will positively impact the industry in 2025 as telcos expand their networks to enhance service delivery. IHS Towers continues to maintain its Africa dominance in the telecom infrastructure industry, managing 39,229 towers across six African and two Latin American countries as of December 2024.It is the largest independent tower operator in six of its eight markets and the only independent scale operator in four. While its market leadership is undisputed, the company’s heavy reliance on Nigeria and a narrow customer base means it will need more than just towering ambitions to weather the storms ahead.
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