Nigeria’s inflation slows to 23.18% in Febraury on stable naira and lower fuel prices
Nigeria’s headline inflation slowed for the first time in 2025 after a Consumer Price Index (CPI) rebase, on lower petrol costs and a stable naira. Data from the National Bureau of Statistics on Monday put February’s inflation rate at 23.18%, down from 24.48% reported in January 2025. A decline in diesel and petrol prices due to increased output from Dangote Refinery helped temper inflation, with a cascading effect on the broader economy, driving down costs for consumers and businesses alike. Diesel prices dropped by 33% to ₦1,000/liter, while petrol prices remained steady around ₦800+ per litre. Food inflation for February was 23.51%, down from 24.08% recorded in January. Analysts believe that Nigeria’s inflation is at an inflection point—following the CPI rebasing—and expect inflation to accelerate as soon as April. Those analysts now predict that the CBN may fail to reach its target due to global economic factors. “My outlook for 2025 in Nigeria in spite of the rebasing is an average rate of 31% for the year. So, expect worse monthly numbers deep into 2025,” said Basil Abia, co-founder of data and research firm Veriv Africa. “It will mostly not be the fault of Nigeria’s policymakers, but rather due to global economic factors, similar to how the pandemic affected Nigeria’s economy in 2020.” The Monetary Policy Committee (MPC) in February held interest rates at 27.50% after assessing recent macroeconomic developments—including exchange rate stability and a gradual slowdown in fuel price increases—and the rebasing of the CPI index.
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After securing exits for its angel network, HoaQ is expanding with a dedicated VC fund
In April 2020, during the height of the pandemic, HoaQ, an angel investor syndicate, formed in Dublin, the European city home to big tech companies like Google and Meta. It had a single goal: pooling investments from professionals to invest in early-stage African startups. At its inception, HoaQ was run by Joe Kinvi and Nubi Kay, with its initial investments in Bamboo, a Nigerian investment startup (now at Series A). By October 2020, the attention from Paystack’s $200 million acquisition by Stripe spurred investor excitement in Africa’s tech ecosystem and grew the syndicate’s membership. After formalising the syndicate in 2021 due to growing interest, Kinvi and Kay faced operational challenges in money movement, investment paperwork, and manual administration as they ran the syndicate part-time. Around this time, Yewande Odumosu, now managing partner of HoaQ’s fund, joined. Odumosu was feeling constrained by the narrow fintech infrastructure focus of her previous investment syndicate. “I realised I was referring so many people to HoaQ that I might as well invest with them too,” she said. “Over time, as I became more involved, we saw the need for a dedicated fund to back early-stage founders before deals moved too fast. That’s how the HoaQ Fund came about.” The fund has now launched and will operate alongside the syndicate. “The syndicate remains active for investors who want to handpick deals, while the fund caters to those who prefer passive investing,” Odumosu said. “Both share the same investment philosophy but offer different structures to accommodate varying investor preferences.” The fund will invest between $25,000 and $50,000 in 30 founders with domain expertise and technical know-how with the potential to scale globally, and will also reserve some capital for follow-ons. HoaQ recently secured exits from two startups: Baseline, acquired by Cloudflare, and Raenest, which delivered 600% net returns to investors—$1,000 invested returned $6,000 after fees. “We’ve also had failed investments, but even there, we prioritised transparency and proper wind-downs,” Kinvi said. “ Two returned 20 cents on the dollar, and one returned 50 cents on the dollar. Investors appreciated the clarity and the partial refunds—many syndicates simply vanish when things go south.” Despite its small cheque size, founders still take capital from HoaQ because of its reputation and network. Over time, HoaQ has built an angel network with thousands of operators, founders and small-time investors. “Founders bring us into deals because of what we offer beyond money—introductions, guidance, and exposure,” Odumosu said. “We’ve co-invested with YC, Techstars, Visa Accelerator, Ventures Platform, and others. Our portfolio includes over 100 startups in the club and 17 through the fund across 7 countries.” TechCabal spoke to Yewande Odumosu, who runs the fund; Joe Kinvi, who has transitioned to running Borderless, an investment technology platform; and Folakemi Osho, who runs the angel syndicate. This interview has been edited for length and clarity. What prompted the shift from an angel collective model to forming a structured venture fund? As founders, operators, and angel investors, we recognised a strong correlation between our unique experiences, which allowed us to identify compelling opportunities in the early-stage investment space. However, we soon realised that to effectively invest at the earliest stages, either before or alongside the collective, we needed dedicated early-stage capital. This insight led us to explore ways to raise that capital, ultimately resulting in the creation of a structured venture fund. Rather than a shift, this was a natural evolution—an expansion to ensure both the fund and the collective could coexist and continue supporting exceptional founders tackling rare and transformative opportunities through technology. How did your original network or community of angels influence the fund’s early deal sourcing? Before the fund was established, HoaQ club had already built a strong track record of investing in exceptional teams and startups. As a result, we had access to high-quality deal flow and a steady pipeline of opportunities. Over time, we began attracting other experienced founders and receiving referrals from both our portfolio founders and the broader angel network. As HoaQ’s reputation grew, we also saw increased interest from co-investors wanting to partner with us. This strong network continues to drive high-quality deal flow for both the club and the fund. While the fund takes a more hands-on approach, prioritising dedicated support and deeper engagement with its portfolio startups, the club plays a broader role in the ecosystem, offering strategic support through tailored events, ecosystem initiatives, and community-driven programs that benefit startups, investors, and other stakeholders. What were the biggest growing pains in the evolution—operationally, strategically, or culturally? The biggest difference between running a club/collective and an early-stage venture fund is the level of structure, responsibility, and engagement required. A collective operates with more flexibility—investors participate on a deal-by-deal basis, and capital is raised as opportunities arise. In contrast, a venture fund requires formal fund management, regulatory compliance, capital commitments upfront, and a more structured investment thesis. Additionally, a fund often takes a more hands-on approach with portfolio companies, providing deeper strategic support beyond capital. Operationally, managing a fund requires setting up institutional-grade processes, handling LP relationships, ensuring compliance, and maintaining rigorous reporting standards. Unlike a collective, where investments are more ad hoc, a fund requires ongoing capital management, portfolio monitoring, and structured decision-making. Strategically, the evolution from a collective to a fund means refining investment theses, defining portfolio construction strategies, and balancing risk across a structured fund lifecycle. The fund also needs to differentiate itself in a competitive early-stage market while maintaining access to strong deal flow. Culturally, the transition impacts both internal operations and external relationships. Internally, it requires a mindset shift from opportunistic investing to long-term portfolio building. Externally, expectations change—founders and LPs look for deeper engagement, structured support, and a clear vision for fund performance over multiple cycles. Maintaining the community-driven spirit of the collective while adapting to the demands of fund management is a key cultural challenge. What has been the hardest challenge in this transition? One of the hardest challenges in this transition has been fundraising as an emerging fund
Read MoreHow to Renew Your Driving License Online in Kenya (Step-by-Step Guide)
Renewing your driving license in Kenya is now easier than ever, thanks to the National Transport and Safety Authority (NTSA) eCitizen online portal. Gone are the days of long queues at physical offices. You can now complete the entire process online in a few minutes. In this guide, we will provide a detailed step-by-step process for renewing your driving license online, the costs, and payment methods. Can you renew any Driving License Online in Kenya? Before you begin the renewal process, it’s important to note that only smart driving licenses can be renewed online. If you still hold the old red booklet license, you must first apply for a smart driving license through the NTSA TIMS portal before proceeding with renewal. What is a Smart Driving License? A smart driving license is a digital version of the traditional license issued by the NTSA. It contains a chip with your driving history, making it easier for authorities to track violations and enforce road safety regulations. If you don’t have a smart driving license yet, you should apply for one before attempting to renew. Step-by-Step Guide to Renew Your Smart Driving License Online in Kenya Follow these simple steps to renew your smart driving license online: 1. Log in to the NTSA eCitizen Portal Open your web browser and visit the NTSA eCitizen portal. Click on the eCitizen login option. Enter your National ID number and password to log in. If you don’t have an eCitizen account, you must create one first. 2. Select “Driving License Renewal” Once logged in, navigate to the NTSA Services section. Click on “Driving License Renewal” from the list of available services. 3. Enter Your Details Provide the necessary details, including: Your National ID number Your driving license number Your contact details (phone number and email address) Double-check your details for accuracy before proceeding. 4. Make Payment Online The system will display the driving license renewal fees based on the duration you select: 1-year renewal: Ksh 650 + service fee 3-year renewal: Ksh 1,400 + service fee Select a payment method (M-Pesa, debit/credit card, or mobile banking). Complete the payment and wait for confirmation. 5. Download & Print Your Renewal Slip Once payment is confirmed, you will receive a digital renewal slip. Download and print the renewal slip as proof of renewal. Keep the slip safe in case authorities request proof of a valid license. How Much Does It Cost to Renew? Here’s a breakdown of the renewal costs: Payment is made through M-Pesa or other online banking options. Final Thoughts Renewing your driving license online in Kenya is a quick and hassle-free process. By following the steps outlined above, you can complete your renewal within minutes using the NTSA eCitizen portal. To avoid last-minute rush and penalties, always check your license expiry date and renew it on time!
Read MoreHow to check your JAMB result in 2025: A complete guide
If you’ve just taken the JAMB UTME and are eager to see your score, you’re not alone. Checking JAMB Result is one of the most searched topics by Nigerian students after the exam. This piece is a step-by-step guide to help you get your results quickly and without hassle. It also highlights important JAMB 2025 dates and what to do next after seeing your results. The JAMB UTME 2025 exam will take place from Friday, April 25th to Monday, May 5th, 2025. Here’s everything you need to know about checking JAMB result: How to check JAMB Result in 2025 JAMB offers two main ways to check results: the JAMB portal and SMS. 1. Checking JAMB Result via the JAMB Portal This method requires internet access and a device (phone, tablet, or computer). Go to the official JAMB result portal: www.jamb.gov.ng Click on “Check UTME Results” Enter your JAMB Registration Number or Phone Number Click “Check My Result” Your result will be displayed on the screen. You can print it for reference. 2. Checking JAMB Result via SMS For candidates without internet access, JAMB provides an SMS method. Send “RESULT” followed by your JAMB Registration Number to 55019 or 66019 Wait for a response containing your score details Ensure you have at least N50 airtime before sending the message Troubleshooting issues when checking JAMB result If you run into issues while trying to check your result, here’s what to do: “Result Not Available” Message? Your result may not be ready yet. Wait and try again later. Forgot your JAMB Registration Number? Follow this guide: Retrieve JAMB Registration Number. Lost your JAMB Profile Code? Here’s how to get it back: Retrieve JAMB Profile Code. When will JAMB 2025 results be released? JAMB typically releases results within 48 to 72 hours after the exam. Candidates who write earlier may get their results first. Stay updated on JAMB-related announcements here: JAMB 2024/2025 Updates. What to do after checking JAMB result Once you’ve seen your JAMB score, here’s what comes next: Check Your Admission Status Find out if you’ve been offered admission: How to Check JAMB Admission Status. Print Your JAMB Admission Letter If admitted, you’ll need this document: Print JAMB Admission Letter. Ensure Your Name Is on the Matriculation List Confirm your details here: JAMB 2024 Matriculation List. Correct Any Errors in Your JAMB Details If there’s a mistake in your name, date of birth, or email, here’s how to fix it: Change JAMB Details. Download the JAMB Recommended Novel for 2025 Find the official novel here: JAMB 2025 Novel. Final Thoughts Checking JAMB result is a simple but essential step in your admission process. Whether you use the online portal or SMS method, you can access your results easily by following the steps outlined in this guide. If you run into any issues, use the linked resources to resolve them quickly. For the latest JAMB news, admission updates, and educational insights, stay tuned to TechCabal. If you have any questions, drop a comment below.
Read MoreWhat Is an Angel Investor? Everything You Need to Know in 2025
For many African startups, securing funding is one of the biggest hurdles to scaling. While venture capital and grants are standard funding options, angel investors are crucial in fueling early-stage businesses. But who exactly are angel investors, and how do they operate in 2025? In this guide, we’ll break down what angel investors are, how they work, and what startup founders in Africa need to know to attract them. Who Is An Angel Investor? Angel investors are high-net-worth individuals who provide capital to startups in exchange for equity. Unlike venture capitalists who invest institutional money, angel investors use their funds. They typically step in at the pre-seed or seed stage, making them a critical lifeline for startups that lack access to financing. Angel investors are not just about money. They often provide mentorship, industry connections, and strategic advice to help startups succeed. In Africa, where funding gaps persist, angel investors have become even more essential. How Does an Angel Investor Work? 1. Where Do Angel Investors Get Their Money? Since angels invest personal wealth, they are often successful entrepreneurs, corporate executives, or industry veterans. Many of them reinvest profits from their businesses into emerging startups. 2. How Do They Evaluate Startups? Angel investors look for high-growth potential businesses with a strong founding team, market opportunity, and a scalable business model. Unlike venture capitalists who demand rapid scaling, angels are often more patient with their investments. 3. Angel Investors vs. Venture Capitalists While both provide funding, key differences exist: Angel investors use personal money, while VCs manage pooled funds from multiple sources. Angel investors take more early-stage risks, while VCs prefer startups with some traction. Angels are hands-on mentors, whereas VCs expect structured governance and fast returns. The State of Angel Investing in Africa in 2025 According to a TechCabal report, 77% of African angel investors limit the number of deals they participate in due to high risks and economic uncertainty. However, the African startup ecosystem remains resilient. In 2025, several trends are shaping angel investing: 1. Rising Sector-Specific Interest Angel investor focus on high-growth sectors such as fintech, health tech, edtech, and agritech. Startups in these industries continue to attract early-stage funding due to their scalable models and social impact. 2. Growth of Angel Networks Groups like the African Business Angel Network (ABAN) and Lagos Angel Network (LAN) are creating more structured ways for angels to connect with promising startups. This trend makes it easier for founders to pitch to multiple investors simultaneously. 3. Increasing Regulation & Compliance Many African governments are implementing policies to protect both startups and investors. Startups must now comply with local laws, tax regulations, and investor protection policies. How to Find and Attract Angel Investors in 2025 1. Where to Find an Angel Investor Angel Networks: Platforms like ABAN, LAN, and Google’s Africa Investment Network. Tech Conferences & Startup Events: Events like Moonshot, Africa Tech Summit and Gitex Africa attract investors. Online Platforms: AngelList, LinkedIn, and VC4A are great places to connect with angel investors. 2. What an Angel Investor Looks For in a Startup Angel investors evaluate startups based on: The Problem & Market Need: Does the startup solve a real pain point? Traction & Growth Potential: Are there early customers or signs of scalability? The Founding Team: Strong teams often matter more than the idea itself. 3. How to Pitch to an Angel Investor A compelling pitch should: Clearly define the problem and solution. Show early traction (users, revenue, partnerships). Detail how the funds will be used (product development, marketing, hiring). Explain the exit strategy (e.g., potential acquisition, IPO, or future funding rounds). Risks and Rewards of Angel Investing While angel investing can be lucrative, it carries risks. Many startups fail, making it a high-risk, high-reward investment strategy. However, securing an angel investor means more than just money for startups. It’s about mentorship, industry access, and long-term growth. Final Thoughts Angel investors remain a key funding source for African startups in 2025, offering early-stage capital and strategic support. As the African tech ecosystem continues to evolve, founders who understand how to connect with and pitch to angel investors will have a competitive edge. For more insights on startups, check out: TechCabal’s beginner’s guide to investing in a Nigerian startup What does it take to be an angel investor? How can Africa create more angel investors?
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Chams, CWG profits soar to billions for first time in 13 years
For the first time in 13 years, Computer Warehouse Group (CWG) Plc and Chams Holding Company Plc have reported billion-naira profits owing largely to Nigerian banks upgrading their IT infrastructure and telecom companies acquiring more SIM cards. Their latest unaudited financial reports for full-year 2024 showed a 395% jump in combined after-tax profit—from ₦983.7 million in 2023 to ₦4.88 billion in 2024. Chams, a provider of technology-driven services such as identity management, security, and transactional solutions, nearly tripled its revenue from its subsidiary Card Centre to ₦6.48 billion. This significant increase contributed to the company’s overall profit surge, and a 37.7% growth in print solutions and access sales. “The company has begun to realize the advantages of its upscaling efforts despite the initial impact on profitability,” a Chams spokesperson told TechCabal. “Its subsidiaries have successfully established technical partnerships, a prerequisite for securing substantial clients. Furthermore, the expansion into the production of SIM cards for telecommunications providers and initiatives in cross-border payments are key contributors to performance enhancement.” Chams, a leading player in biometric identity management, boasts a diverse clientele across government and the financial sector. Its major banking clients include Keystone, First Bank, Sterling, and other financial agencies. On the government side, it works with the Independent National Electoral Commission, Nigerian Customs Service, National Health Insurance Scheme, Nigerian Communications Commission, and Pension Fund Administrators. Ayokunmi Kunle-Salami, a Lagos-based information and technology engineer, said while Chams has multiple subsidiaries, its card centre generates the most revenue from printing cards for commercial banks. “More banks are pushing for a cashless economy, contributing to the increase in the demand for ATM cards,” he said. The earnings of CWG, which provides managed services, IT infrastructure support and integration to telcos and banks, soared 524% to ₦3.59 billion. This surge came as several Nigerian banks overhauled their core banking systems, increasing demand for software and IT support. CWG did not respond to a request for comments. But experts familiar with the company’s operations told TechCabal that its 20-year partnership with Infosys boosted its software revenue by 400% to ₦19.1 billion. CWG supplies Finacle, Infosys’ core banking application, to its clients. “Demand for firms like CWG rose last year due to service upgrades by some tier-one banks (First Bank of Nigeria, United Bank for Africa and GTBank), which use Finacle. Beyond new contracts, software vendors also raised prices—some by over 100%—due to rising licensing and support costs,” said Kunle-Salami who also works at Cowry Asset Management Limited. In October 2024, GTBank switched its banking software vendor from ICS Financial Systems, located in Jordan, to Finacle. Other commercial banks that use Finacle include FBNQuest Merchant Bank, Fidelity Bank, First City Monument Bank, Globus Bank, Stanbic IBTC, and Wema Bank. CWG’s revenue surged due to banks’ acceptance of IT infrastructure, such as the Finacle platform, and their aggressive push towards digital transformation, said Kassy Olisakwe, head of Blockchain Development at Ubuntu Tribe, who is also an investor in the company. “The increased adoption of digital transformation has led to expansion,” he said. CWG also implements and supports core banking applications, which led to a 106% rise in revenue from managed and support services. “Many companies, including banks, outsource approximately 80% of their IT departments to third-party vendors like CWG, due to the lack of resources and capabilities to recruit and retain skilled ICT personnel,” Kunle-Salami said. Regarding its IT Infrastructure services, CWG provides cloud colocation, network infrastructure, and disaster recovery services. Revenue for this segment rose by 15.7%. Apart from Nigeria, the company operates in three other African countries: Ghana, Uganda, and Cameroon. According to its latest investor relations report, Nigeria pulled the highest revenue of ₦15.7 billion in 2023, followed by Ghana with ₦4.12 billion, and Uganda (₦3.54 billion). Cameroon reported zero revenue. At its 19th annual general meeting in 2024, CWG’s Group COO Afolabi Sobande said the company is expanding its product portfolio to capitalize on evolving market trends. Chams also announced plans to scale its Card Centre production facility to meet rising demand from banks. As of Friday, March 14, 2025, CWG’s share price was changed at ₦9.00, while Chams’ share price rose by 0.46% to ₦2.15. CWG’s market capitalization is ₦22.7 billion, ranking 75th on NGX, while Chams, at ₦10.1 billion, ranks 95th. While both companies benefited from banks’ IT spending, competition from fintech and global IT firms such as Accenture and Microsoft, offering comprehensive IT solutions, can outcompete local providers. Emerging technologies, including innovation, cloud computing, artificial intelligence, and cybersecurity, are becoming critical for banks’ digital transformation initiatives. Local providers such as CWG and Chams must constantly adapt to stay ahead of the curve and avoid obsolescence. Nigeria’s tech trio soars: NGX-listed Chams, eTranzact, and CWG stocks up by 169%
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Next Wave: Secondaries are limiting Africa’s VC ecosystem. Can data help?
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 16 March, 2025 Image: TechCabal Two years ago, my colleague wrote in this newsletter about how a data gap hinders startup fundraising. Today, that data gap is doing the same to Africa’s venture capital (VC) ecosystem by limiting transparency around exit decisions. Secondaries—investors selling shares in startups to each other—dominate exits in Africa, given the absence of IPOs and a dull mergers and acquisitions market. Relying solely on secondaries is not ideal, but most African fund managers prefer taking what’s available today rather than waiting for an uncertain future in a volatile market—especially as their fund cycles are coming to an end. The secondary market operates on a willing-buyer, willing-seller model. Under this arrangement, buyers typically hold more leverage because sellers often face pressure to secure liquidity. Given this leverage, buyers typically offer to buy shares at significant discounts, which can sometimes reach 40%. An early-stage pan-African VC firm missed an opportunity to exit from a Kenyan digital commerce marketplace at a $100 million valuation before the startup’s valuation fell to zero because it rejected a 50% discount proposed by other investors. Another early-stage firm that sold secondaries at a fintech’s recent fundraise also took a 30% discount from the valuation. These haircuts can make smaller funds struggle to meet LP return expectations—a 3x return on the fund—when their stakes in startups are consistently sold at discounted valuations. Next Wave continues after this ad. Africa’s youth are shaping the future, but are their voices truly heard? The Citizen Report provides a deeper understanding of the challenges and opportunities young Africans face, spotlighting their perspectives on AI, governance, education, human rights, and more, backed by data and research. This report bridges the gap between lived experiences and policy decisions that impact millions. Download The Citizen Report here Secondaries are the most common forms of exit, and as smaller funds consistently take valuation haircuts in these deals, they might struggle to return their funds. When a firm fails to provide attractive returns, it will struggle to raise subsequent capital. This can lead to a gap in funding for early-stage startups and slow the growth of African startups. How can data help? Most of the data available in Africa’s VC ecosystem today is the annual funding raised. While useful, more impactful metrics—like the likelihood of finding a fund-returning startup at the early stage, average fund performance, or risk profiles across funding stages, which can influence valuations and cheque sizes at the early stage—are either absent or notoriously difficult to obtain. Accurate and comprehensive data on historical exit multiples, sector-specific performance, stage-specific risk profiles, and regional comparables could provide benchmarks and reduce the valuation mismatch between early and later-stage investors. For instance, if data reveals that fintech exits in Nigeria typically achieve 5x returns, smaller VCs could negotiate better terms when selling secondaries in these fintechs. Carta, a cap table management platform, released a report in 2024 that provided data for America’s VC industry, which helped inform investment decisions, valuation standards, and portfolio strategies. In Africa, however, the data gap is causing uncertainty around valuations and exit potentials. These insights can also help investors price deals more accurately, reducing startup overvaluations that hinder exit opportunities. With clear data on average startup valuations, early-stage investors can invest more precisely, preventing valuation mismatches and the surprise factor that leads to steep secondary discounts. Reliable and readily available data could also reduce the perception of excessive risk associated with African startups among international investors. If comprehensive data clearly outlines the actual risks involved, international LPs and potential acquirers may view Africa’s startup ecosystem more favourably. Looking ahead Building a robust data infrastructure is no small feat—just ask my colleagues at TC Insights, the research arm of TechCabal—it requires patience, stakeholder buy-in, and significant capital. VC firms, LPs, and startup founders must be willing to share data while respecting confidentiality agreements, which can limit the amount of information they disclose. Next Wave continues after this ad. Registration for GITEX AFRICA 3rd edition is NOW OPEN – Africa’s largest tech and start-up event from 14-16 April, 2025 in Marrakech, Morocco. Presenting 3-days of high impact and outcome-focused public-private sector collaborative gatherings, including the largest, most advanced, tech innovation showcases. Register now! One workaround to the confidentiality conundrum is focusing on sector-specific or regional data rather than individual company metrics. A fintech-focused investor exposed to Nigerian startups can share aggregated data on the expected performance and valuation of fintech startups in Nigeria, highlighting key metrics that indicate business viability and valuation. A16z, one of the largest VC firms in the world, has been releasing data on the AI voice market, which is helping educate startup founders on the VC expectations of their businesses. Njavwa Mutambo, the founder of Caantin, told me that their research has helped guide how he’s building and selling his AI voice agent business to financial institutions and presenting his business to investors. Startups also have to willingly report and benchmark their performance, which can foster the type of transparency that can help investors secure optimal returns on startup investment—a tough ask for African startups. This cultural shift can also help the ecosystem mature; the information in Stripe’s annual letter helped establish that AI startups are making more money than SaaS startups at the same stage of infancy. This data has helped fuel investor confidence in AI startups that have gone on to raise mountains of cash. Data alone will not completely solve the ecosystem’s problem, but improved visibility into performance metrics and valuations can reduce the friction in secondary transactions and provide more exit routes. For this to happen, we must be ready
Read MoreNigerian lender Sycamore expands into asset management with SEC licence
Sycamore, the Nigerian digital lender with ₦10 billion assets under management, has secured a fund manager licence from the Securities and Exchange Commission (SEC) to operate as a fund and portfolio manager. This move signals a significant expansion beyond its core lending business, aiming to tap into the growing demand for accessible investment options among Nigeria’s burgeoning retail and institutional investors. The company will offer diversified portfolios across stocks, bonds, and money-market instruments in local and foreign currencies. Its expansion is driven by customer demand, with its CEO Babatunde Akin-Moses noting that many of Sycamore’s 300,000 users, including freelancers and small and medium-sized enterprises (SMEs), have expressed a desire for accessible investment options. “Securing our SEC license is the culmination of years of building institutional-grade compliance systems,” said Akin-Moses. “We’re not pivoting from lending; this is a strategic expansion that complements our core business.” Nigeria’s investment market is shaped by a handful of dominant players—legacy firms like ARM, Stanbic IBTC, and FBNQuest, alongside newer fintech challengers such as Bamboo and Rise. While these platforms have made wealth management more accessible, most still cater to either high-net-worth individuals or tech-savvy retail investors. Sycamore sees an opening in the middle: freelancers, SMEs, and everyday Nigerians who lack straightforward investment pathways. Sycamore has also appointed Oluwagbenga Magbagbeola, former Managing Director of ARM Securities, to lead its new division, Sycamore Investment and Asset Management Limited (SIAML). Magbagbeola brings 17 years of capital markets experience to Sycamore, having previously held roles at ARM Securities, FBNQuest Securities, and Profund Securities. The company plans to launch an upgraded mobile app equipped with real-time investment analytics and AI-powered portfolio management. The app will also feature a multi-currency wallet, allowing users to hold and invest in USD, EUR, GBP, and NGN. Sycamore joins a growing list of Nigerian tech investment firms—such as Bamboo and Rise— making wealth management services accessible to young Nigerians. “We’re addressing a major gap in Nigeria’s investment market,” said Onyinye Okonji, Sycamore’s co-founder and CCO. “Traditional asset management has remained out of reach for many Nigerians. Our goal is to change that.” Sycamore expects asset management to become a significant revenue driver generating income through management fees and performance-based incentives. The company, however, has not disclosed specific growth projections. It plans to raise additional capital in late 2025 or early 2026 to support its growth ambitions across Africa. In addition to traditional asset classes, Sycamore aims to offer alternative investments, starting with Real Estate Investment Trusts (REITs) and a USD-denominated investment product in the coming months. This strategic shift positions Sycamore to compete in a market saturated with digital investment alternatives, targeting both retail and institutional investors. While Sycamore is best known for its lending business, Akin-Moses believes asset management represents the next frontier for the company. “We’re democratizing access to wealth management solutions that can help more people invest in their desired lifestyle and future financial security,” he said. Sycamore is now positioning itself as a one-stop shop for Nigerians looking to borrow, invest, and grow their wealth—one investment product at a time.
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TechCabal Daily – Vodacom takes Maziv deal to court
In partnership with Lire en Français اقرأ هذا باللغة العربية Welcome to another week in 2025! Tech is really easy-flowing when people are not trying to complicate it. That’s what we’re trying to do with our TikTok videos. We break down complex bits of the tech and business stories we report and simplify for those who don’t understand heavy tech-speak. If you haven’t checked out our TikTok page, today’s another day to do so. Here’s the fun part: you can start anywhere and not miss a beat. Analysts predict tempered inflation in February Vodacom and Maziv try to force blockbuster merger telecom deal Why are big companies heading to Eko Atlantic? World Wide Web 3 Events Economy Analysts predict tempered inflation in February Image: TechCabal Analysts expect Nigeria’s headline inflation rate for February 2025 to decelerate when the National Bureau of Statistics release inflation figures today. If the predictions are correct, Nigeria’s headline inflation will decelerate for the first time since the NBS modified the way it calculated inflation. After the NBS rebased the CPI in January, inflation slowed to about 24.48%. Analysts expect the deceleration to be driven by lower petrol costs and a stable naira. A decline in diesel and petrol prices due to increased output from Dangote Refinery helped temper inflation, with a cascading effect on the broader economy, driving down costs for consumers and businesses alike. Diesel prices dropped by 33% to ₦1,000/litre ($0.65), while petrol prices remained steady around ₦800+ ($0.52) per litre. Analysts also believe that Nigeria’s inflation is at an inflection point—following the CPI rebasing—and expect inflation to accelerate as soon as April. Those analysts now predict that the CBN may fail to reach its inflation target by year-end due to global economic factors. Are you a freelancer or a remote worker? Fincra wants to understand the challenges and opportunities related to cross-border work payments for freelancers and remote workers in Nigeria. Please take just a few minutes to complete this survey. Telecoms Vodacom and Maziv try to force blockbuster merger telecom deal Central Bank of Kenya/Image Source: Google Vodacom, South Africa’s second-largest telecom operator, and fibre company Maziv are taking their blocked merger deal to court in July 2025, hoping to overturn a decision that has stalled their fibre expansion plans for more than three years. Vodacom first announced its plan to acquire a 30% stake in Maziv in 2021 to expand its fibre network across South Africa. The Independent Communications Authority of South Africa (ICASA), the telecom regulator, initially approved the deal in 2022, citing that it would “be in the best interest of the public,” but the deal hit a roadblock a year later when the Competition Commission advised against it. The Commission feared the merger would reduce competition, giving Vodacom too much control over the fibre market. In October 2024, South Africa’s Competition Tribunal, a regulatory body for competition-related disputes, blocked the deal, preventing Vodacom from acquiring Dark Fibre and Vumatel, wholesale and home-based fibre subsidiaries of Maziv, respectively. Vodacom and Maziv appealed the Tribunal’s decision in November 2024, leading to a 26-day hearing. After months of deliberation, they have decided to take the fight to court in July 2025. Mergers in South Africa take time. Between regulatory hurdles, competition concerns, and legal battles, major deals can drag on for years. Telecom firms argue that these delays slow infrastructure growth and discourage investment, while regulators insist they are necessary to protect market fairness. Vodacom wants a stronger position in the fibre market, a key area as mobile data growth slows. Maziv sees the deal as a way to expand its fibre network with new capital. Both companies are betting on a courtroom victory, but the outcome remains uncertain. Regardless of how the case ends, this battle will reshape South Africa’s telecom industry. If the merger goes through, it could trigger more industry consolidation. If the court upholds the block, it will serve as a warning: big corporations can’t push deals through without resistance. 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 → Companies Why are big companies heading to Eko Atlantic? Image Source: Google On Wednesday, MTN Nigeria CEO Karl Toriola announced that the country’s largest telecom operator has secured a piece of land at the futuristic city, Eko Atlantic, to build its new headquarters. While MTN is the first telecom operator to announce a move to the Atlantic, there’s been a flurry of large corporations heading there. First Bank, a tier-1 commercial bank, manufacturing conglomerate Dangote Group, media groups TVC and Silverbird, and a flurry of real estate developers have all planted flags in the area. In 2022, the US Embassy commissioned a $537 million, 12.2-acre deal to build a consulate in the city with a boat dock. Corporations are drawn to Eko Atlantic’s modern infrastructure, steady electricity—powered by gas and turbines—and planned business district. Its location next to Victoria Island makes it a prime spot for high-end commercial activity. While the Eko Atlantic still has undeveloped land, development is already underway; Alpha 1, a high-rise office building has been completed. The city is also a free trade zone, meaning companies operating there enjoy tax incentives and exemptions from foreign exchange controls. This futuristic city is not for the average Nigerian. Land in Eko Atlantic costs between $1,150 and $1,720 per square meter, making it one of the most expensive areas in the country. It’s a playground for the ultra-wealthy—telecoms, banks, and multinationals that eke out trillions of naira in revenue annually. They can afford it. Eko Atlantic’s rise mirrors a familiar shift in Lagos’ tech ecosystem. Startups once clustered in Yaba, the so-called “Silicon Lagoon,” before migrating to Ikoyi, where high-rise offices and luxury spaces project status. Just as startups seek prestige and association with global players, big corporations in Nigeria are using Eko
Read MoreAfrica’s digital rise demands smarter identity verification
This article was contributed to TechCabal by Dipo Omogbenigun, Sales Director, Enterprise, Smile ID Africa’s technological revolution is undeniable. Across the continent, thousands of companies are developing innovative solutions that serve millions daily, driving economic transformation at an unprecedented pace. With Africa now home to eight unicorns, the momentum and potential for further growth are clearer than ever. Take Kenya, for instance—the country boasts one of the most advanced technology ecosystems in the region, with its digital economy projected to contribute up to 9.24% of GDP in 2025. Meanwhile, Nigeria’s 3MTT program highlights how governments leverage technology to accelerate economic development, equipping millions with the digital skills needed to thrive in an increasingly tech-driven world. Africa isn’t just catching up—it’s setting the stage for a future where technology drives inclusive growth, innovation, and global competitiveness. However, with growth comes challenges. While these innovations bring immense benefits, they have also allowed bad actors. Over the past decade, Africa’s fraud landscape has evolved significantly, driven by the rise of AI-powered techniques that exploit digital vulnerabilities and target the continent’s rapidly expanding online user base. What was once a battle against traditional fraud has now escalated into a high-tech arms race, where attackers leverage AI to bypass security systems and manipulate data. In response to the changing face of fraud, Smile ID has also had to evolve from an identity company to a security company focused on protecting our clients from millions of potential fraud attempts every day, every hour, and every minute. According to our recent findings, AI-powered selfie anomalies now account for 34% of new fraud tactics. Deepfake-related identity theft increased sevenfold between Q3 and Q4 of 2024, with criminals creating convincing synthetic faces to fool even advanced biometric systems. What makes AI-based attacks so formidable is their adaptability. Fraudsters update their tactics in real-time, scanning for loopholes or inadequate security protocols; businesses relying on outdated systems soon find themselves in the crosshairs. For example, in East Africa, where inconsistent verification documents remain a problem, document fraud hit an alarming 27% rejection rate in 2024. Reports last year indicate that one of Kenya’s largest lenders lost KSh1.5 billion to fraud. At the same time, Nigerian banks incurred ₦42.6 billion in fraud losses in Q2 2024 alone—surpassing the ₦9.4 billion recorded throughout 2023, according to the FITC. A particularly striking case came to light when Smile ID’s internal security team uncovered a global syndicate launching large-scale attacks on fintech companies, telecom operators, and banks across Africa and parts of Europe. Within 12 hours, more than 2.8 million fraudulent verification attempts were blocked – proof that these schemes can deploy at breathtaking speeds, targeting thousands of victims simultaneously. A common misconception is that compliance is an extra layer of red tape that slows things down. It can be the difference between sustainable growth and being targeted by bad actors. Customers demand assurances that their data is safe, and regulators are clamping down on companies that fail to meet modern security standards. Rather than mere bureaucracy, securing compliance future-proofs businesses by reducing financial risks, protecting brand reputation and building smoother user experience. A well-secured platform also attracts investors who need to see credible risk mitigation before writing that first or follow-on cheque. In short, the proactive companies investing in robust compliance today are the best ones positioned for tomorrow’s opportunities. This isn’t just a transition from analogue to digital – we are in the AI era, where the risks are far more significant. Fraud is no longer about physical theft; today, it’s like a mob of robbers attacking a bank virtually from halfway across the world. The difference? You don’t see it happening, but the damage is real. Having worked with some of Africa’s fastest-growing businesses, including Flutterwave, Kuda, Paystack, and others, we have seen the significant benefits of proactively investing in vigorous compliance. As the continent continues to scale technological advancements, so have we. While advanced technology or AI tools are the right approach to combat these, even the best tools need ecosystem-wide support to be effective. For Africa to achieve security, key players such as financial institutions, governments, regulators, and technology providers must unite. Compliance must shift from a reactive obligation to a proactive strategy that safeguards businesses and consumers while solidifying Africa’s leadership in digital innovation. Africa’s potential to leapfrog traditional financial and commercial models is undeniable. Yet, as more businesses and citizens go online, safeguarding them becomes paramount. AI-driven fraud is rapidly evolving, and the reality is that those who fail to adapt risk financial losses and the erosion of trust that underpins any successful digital ecosystem. But true resilience depends on business leaders and regulators recognising that security isn’t an afterthought—it’s the bedrock of innovation and prosperity. ________ Oladipo has close to two decades of experience in Fintech and digital payments. He was the first employee in Opay as the Director of Payment Solutions and Corporate Partnerships. He was also Moniepoint’s Senior Vice President and was responsible for commercial negotiations and partnerships. He was part of a three-man team that developed a Mobile Banking framework for a major bank across over 30 African countries.
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