After three-year delay, Mafab will launch 5G services in 2025
Mafab Communications, a Nigerian telco that secured a 5G licence in 2021, will begin operations by the end of Q1 2025, the company’s chief operating officer Adebayo Onigbanjo told TechCabal. This will mark the first time Mafab’s services will be commercially available, nearly three years after the company entered the 5G market. Mafab will launch its 5G services with 102 operational sites in Kano and Abuja and subscribers will need to buy routers to connect to the network. The company is also collaborating with multiple vendors to build out these sites in phases. Mafab Communications secured its 5G license on the same day as MTN. However, while MTN launched its 5G services just eight months later, Mafab—a newer company—faced delays in deploying its network due to a lack of telecom infrastructure. Compounding the delays, Mafab did not receive its Unified Access Service License (UASL) and numbering plan until July 2022. As a result, the company applied for an extension from the Nigerian Communications Commission (NCC), pushing its rollout deadline to January 2023. After its January 2023 launch event, the company began advertising the sale of 5G routers on its website, but buyers could not activate the service, TechCabal found. The sale of the routers has since been suspended as the company works to complete its infrastructure buildout. Although the 5G market is still early in Nigeria, the delays leave Mafab playing catch up with competitors like MTN and Airtel, especially in Lagos, Nigeria’s commercial hub where most of the subscribers are currently located. Mafab is still working on its Lagos sites but has not yet announced when services will go live there. “As with many telecoms operators, foreign exchange (FX) fluctuations have been a major challenge, leading to increased rollout costs compared to the initial projections,” COO Adedayo Onigbanjo said. Nigeria’s 5G market has been growing since its commercial rollout in August 2022, led by MTN Nigeria. In October 2024, 5G accounted for 2.33% of the country’s internet subscribers, with MTN Nigeria commanding 79% market share and Airtel Africa holding around 20%. Mafab’s planned Q1 rollout is expected to drive further adoption, especially in cities outside Lagos and Abuja. The company has focused on strengthening its infrastructure and expanding coverage in Kano and Abuja to support broader 5G access, according to Onigbanjo. This includes building out a Radio Access Network (RAN), transport systems, and intelligent networks to connect user devices —such as smartphones and IoT gadgets—to its core telecom network.
Read MoreCybercafés in Kenya to install CCTVs, collect customers’ IDs under proposed rules
Kenya’s Communication Authority (CA) has proposed new licencing rules for cybercafés, requiring them to collect detailed user records including ID, install CCTV systems on their premises, and implement login software on all devices. These changes, contained in a December 23 notice, could add to the growing burden on small businesses that already pay for local and national government permits and a copyright license. “PCACs that provide internet browsing services be licensed under the category of internet cafes and conditions set by the authority including provisions for record keeping, logging-in software, CCTV surveillance, as well as identification of persons accessing the service point,” the CA said. Once thought to be in decline, cybercafés in Kenya have experienced a resurgence in recent years. The shift of essential government services online and the introduction of a new basic education system have driven up demand for internet and printing services. CA noted the growing number of internet cafes fall outside the scope of the current framework, making regulatory oversight difficult. “The authority now seeks to undertake a review of the unified licensing framework to provide greater clarity on the scope of the various licenses,” the regulator said. While the government’s e-citizen platform can be accessed even from a mobile phone, many people still struggle to complete forms and submit applications on their own. Despite growing smartphone penetration, cybercafés are popular in low-income neighbourhoods and rural areas. Kenyans use them to access government services like filing taxes and learning. With an internet penetration rate of 40.8%, millions of Kenyans, particularly in rural areas, are offline.
Read MoreBanks must settle ₦212.5 billion USSD debt to telcos by year-end
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have ordered banks to pay ₦212.5 billion—85% of a ₦250 billion debt owed to telecom operators for USSD charges—by December 31, 2024. The December 20 memo, obtained by TechCabal, comes after years of delays and disputes over USSD payments, which have led to the growing debt. Despite regulatory mandates requiring banks to collect and remit the USSD fees since 2021, many banks have resisted. They argue that the charges are unfair and that USSD technology is outdated. Segun Agbaje, CEO of GTCO, stated, “If you want to charge ₦20 for the service, go ahead. But collect it yourself. Don’t come to us.” Similar concerns were raised by the late Herbert Wigwe, who questioned how telcos determine the fees, arguing that USSD is an outdated technology that will soon become obsolete. These sentiments, widely shared among Nigerian bank executives, have contributed to the growth of the USSD debt despite previous regulatory efforts. As of November 2024, telecom operators claim banks owe ₦250 billion for USSD services. The December 20 directive seeks to expedite debt settlement and enforce strict payment timelines. Under the new rules, banks must pay 85% of new invoices within one month of receipt. Additionally, by January 2, 2025, banks and telecom operators must agree on a payment plan to settle 60% of all outstanding invoices before using any telco’s USSD platform. Failure to comply with the directive will lead to sanctions, including fines, operational restrictions, or other regulatory actions designed to enforce compliance. There are also incentives for banks to pay on time. If banks meet specified payment milestones, the NCC will begin the transition to End-user Billing (EUB), where customers—rather than the banks—would directly pay for USSD services. End-user billing is considered the long-term solution to the payment dispute but will only be available to compliant parties.
Read MoreTelecom tariffs to rise in 2025 as NCC greenlights price increases
The Nigerian Communications Commission (NCC) has approved a long-pending proposal for telecom tariff hikes, with new rates for calls, SMS, and internet bundles expected to take effect in January 2025. This marks the end of over a decade of lobbying by telecom giants like MTN Nigeria, Airtel, and 9Mobile, who have called for price adjustments to reflect economic realities. Despite soaring operational costs driven by headline inflation, telecom operators have been unable to raise prices for 11 years. A spokesperson for the Nigerian Communications Commission (NCC) confirmed to TechCabal that further details of the tariff adjustments would be shared in an official announcement. “This announcement will benefit the subscribers and operators because we have taken into account the proposals from the industry and the public,” an NCC spokesperson told TechCabal. According to the existing proposals, telecoms tariffs could rise by up to 40%. If adopted, the cost of a phone call will increase from ₦11 to ₦15.40 per minute and SMS charges will rise from ₦4 to ₦5.60. For data plans, the price of a 1GB bundle will increase from ₦1,000 to at least ₦1,400. Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, acknowledged the need for price adjustments, stating: “We think there may be a need for that” in a December 20 interview on Arise TV. The NCC is responsible for reviewing and approving tariffs adjustments in the telecommunications industry. In October 2024, it rejected Starlink’s application to double subscription fees to ₦75,000. While the commission aims to balance the financial burden on subscribers, it also recognises that the industry’s operational challenges could affect service quality and investment. Rising food inflation (39.93%) complicates the telecom tariff increase, with concerns that it could reduce internet usage in a country where digital inclusion is a priority. However, the current situation has led to significant financial losses for the telcos. MTN Nigeria, for instance, reported a ₦137 billion loss in 2023, with losses expanding to ₦514.9 billion in the first nine months of 2024. Airtel Africa also reported losses of $89 million in FY 2024, largely driven by challenges in Nigeria. Despite the grim outlook in the telecoms sector for much of the year, President of the Association of Licenced Telecommunication Operators of Nigeria (ALTON) Gbenga Adebayo argues that cost-reflective prices will incentivise investment and help improve quality in the long run.
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SASSA 2025 appeal process and new payment dates
The South African Social Security Agency (SASSA) has recently published its payment schedule for the first month of the 2025 financial year, ensuring beneficiaries are informed of when to expect their grants. Here, we also detail how to apply for a SASSA appeal in 2025. For January 2025, payments are scheduled as follows: Older Persons’ Grants: 3 January 2025 Disability Grants: 6 January 2025 Children’s Grants: 7 January 2025 SASSA emphasises that recipients don’t need to withdraw their payments on the dates they are paid. Their funds will remain available in the accounts till they need them. As such, all forms of panic should be avoided. Steps to apply for a SASSA appeal in 2025 Beneficiaries who have their SASSA grant applications declined in 2025 can file an appeal through the Social Relief of Distress (SRD) grant appeals system. Follow these steps to ensure a successful application: Visit the online appeals portalNavigate to the SASSA SRD Appeals website at https://srd.dsd.gov.za. Log in with your ID number and contact details Ensure the information matches what you provided during your initial application. Select the grant in questionChoose the grant type for which you were declined, such as the R350 grant. Submit your appeal reasonProvide a clear explanation supported by any relevant documents. Monitor your appeal statusRegularly check the status online for updates. Appeals must be submitted within 90 days of receiving a rejection notice. Key considerations Ensure your personal information is up to date, particularly your banking details. Double-check all documents before submission to prevent delays. Appeals may take up to 90 days for a resolution, so early filing is recommended. SASSA remains committed to providing reliable and timely services to its beneficiaries, ensuring their social and economic stability. For further enquiries, contact SASSA via their toll-free helpline at 0800 60 10 11.
Read MoreExclusive: YC-backed Mecho Autotech restructures amid macroeconomic challenges and FX volatility
Mecho Autotech, a Nigerian startup offering automotive spare parts, vehicle repairs, and maintenance services, has laid off an undisclosed number of full-time employees from its 40-person team. The company cited Nigeria’s challenging macroeconomic conditions and foreign exchange (FX) volatility as key reasons for the downsizing. Remaining full-time employees will transition to contract roles, according to an email obtained by TechCabal. Affected staff will receive severance pay equivalent to one month’s salary. Navigating a tough market Founded in 2021 by Olusegun Owoade and Ayoola Akinkunmi, Mecho Autotech set out to revolutionize Nigeria’s fragmented auto repair market. By connecting vehicle owners—ranging from individuals to fleet operators—with third-party workshops, the company aimed to provide reliable and efficient maintenance solutions. Mecho claims to have onboarded over 7,000 third-party mechanics across three workshops in Lagos and counts companies like Shuttlers, Moove, Tolaram Group, and Kobo among its clients. Despite its promising start, Mecho has faced mounting challenges in sustaining its business. Rising inflation in Nigeria has significantly reduced purchasing power, driving many car owners to opt for cheaper roadside mechanics instead of premium services like Mecho’s, which primarily rely on OEM (original equipment manufacturer) parts. Compounding the issue, FX volatility has driven up the cost of importing spare parts, further straining the company’s operations. Competitor FixIt45 has already pivoted to explore alternative revenue streams such as compressed natural gas (CNG) conversion services to adapt to these economic pressures. Signs of trouble In an email to employees, Mecho Autotech explained the necessity of the restructuring: “We have carefully reviewed our operations, market conditions, growth strategies, and financial health. Nigeria’s challenging macroeconomic environment, combined with ongoing foreign exchange risks, has significantly impacted our cash flow and operations. To ensure the long-term sustainability and competitiveness of our company, we are forced to make some difficult but necessary adjustments.” However, former employees claimed that cracks in the company’s operations appeared long before the layoffs. They reported financial struggles, including difficulties paying rent and instances of electricity disconnection at the company’s office. Salaries were allegedly delayed for up to two months, and high-profile resignations—such as the departures of the heads of finance and sales—underscored the company’s instability. Unfulfilled promises In September 2023, Mecho Autotech raised $2.4 million pre-series A funding to expand its offerings. The company announced plans to develop an app to facilitate inventory financing for vendors, streamline sales, and provide working capital to workshops. Former employees claimed that the app was never launched, raising questions about the startup’s ability to deliver on its ambitious goals. Broader implications Mecho’s struggles reflect the broader challenges facing Nigeria’s startup ecosystem, particularly in industries reliant on imported goods. The combination of soaring inflation, currency devaluation, and declining consumer spending power has made survival increasingly difficult for tech-driven businesses like Mecho Autotech. As the auto-tech landscape evolves, Mecho’s competitors and peers will need to adapt swiftly, exploring alternative revenue models or operational efficiencies to weather Nigeria’s turbulent economic climate.
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77% of African angel investors limit deals to $25,000, ABAN finds
A recent report by the African Business Angel Network (ABAN) reveals that 77% of African angel investors have invested less than $25,000 in startups between 2022 and 2024. The finding points to a cautious, risk-averse approach among investors in the continent’s startup ecosystem. The report, based on a survey of over 110 angel investors who have backed African startups, highlights key trends in early-stage funding. Data was also gathered through ABAN’s collaboration with Briter, a business analytics platform focused on startup funding. While most angel investments remain below the $25,000 mark, the report indicates that the share of angel investors committing between $50,001 and $250,000 has been growing steadily. However, no specific figure was provided for this trend. Angel investment plays a critical role in financing early-stage startups, especially in markets where access to venture capital can be limited. However, the high-risk nature of these investments—often in unproven business models—leads to hesitancy. Despite these challenges, startups require funding to scale and unlock their potential for significant growth. The report suggests that increased education and access to better data could help investors make more informed decisions and mitigate perceived risks. Investment instruments: Risk appetite and preferences The report also shows African angel investors’ varied approaches, depending on their risk tolerance and investment goals. Half of those surveyed opt for equity investments via Simple Agreements for Future Equity (SAFE), a tool typically used by risk-tolerant investors who hope for high returns in the long run. Meanwhile, 28% of angel investors prefer debt instruments, such as convertible notes or loans. These options offer quicker returns and shorter timelines, appealing to more risk-averse investors looking for a faster payoff without completely forgoing a stake in early-stage ventures. Shift toward structured investment vehicles The angel investing landscape in Africa is evolving from individual investors making decisions based on personal connections to more collaborative approaches. 46% of the surveyed angels now prefer investing through structured vehicles like angel syndicates, which allow for shared risk, pooled resources, and access to a broader deal flow. An additional 28% use a flexible mix of individual and collective strategies, while 26% prefer to invest independently. Maha Mandour, CEO of COREangels MEA, underscores the importance of a methodical approach: “Scouting and filtering startups, coupled with thorough due diligence, is key to achieving better returns in angel investing.” A strong sense of purpose drives investment Angel investors in Africa are often driven by more than just financial returns. The ABAN report highlights that 59% of respondents are motivated by the potential for job creation and poverty reduction in Africa, while 19% focus on empowering youth and women through their investments. A smaller but significant 10% prioritize funding for climate solutions. The report also sheds light on the growing preference for technology-driven startups. 42% of investors are particularly drawn to ventures that leverage technological innovation, a trend that mirrors the broader venture capital landscape where tech-centric sectors like fintech, e-commerce, and energy continue to attract the bulk of funding. Venture capitalists invested over $1.8 billion in these sectors in 2024 alone. However, many angel investors maintain diversified portfolios. Around 25% of respondents indicate a sector-agnostic approach, showing a wide-ranging interest in industries across the African continent, from agriculture to healthcare and beyond. Between 2008 and 2023, angel investors have collectively invested $35 million into African startups. As the sector matures, more angel networks are emerging to support investors, offer training, and provide better access to data. This evolution is helping to demystify angel investing, expand investor reach, and improve decision-making. While the African angel investment sector is evolving and growing, the report stresses the importance of education and data-driven decision-making to foster greater confidence and larger investments in the future. Given the risks, the current cautious approach is understandable, but increased knowledge and network building could pave the way for a more vibrant angel investment ecosystem across the continent.
Read MoreSafaricom accused of “business fraud” in dispute over $23.9m money market fund
Genghis Capital, a Kenyan investment bank, has accused Safaricom of “business fraud” over the launch of a competing money market fund, Ziidi, which the telco rolled out in November 2024. The dispute centres on Safaricom’s alleged decision to stall the rollout of Mali, a fund launched in partnership with Genghis in 2020, and instead register the rival Ziidi product, approved by Kenya’s Capital Markets Authority (CMA) on November 27. In a letter seen by TechCabal, Genghis Capital accused Safaricom of breaching an agreement, claiming the telco’s actions amounted to “business fraud.” The letter, dated December 3, 2024, asserts that Safaricom delayed the launch of Mali while working with other third parties to register Ziidi, violating the spirit of the 2019 partnership. Safaricom defended its actions in a December 6 response, citing technical issues with the Mali platform. “As you are aware, a larger fund with these challenges would not only expose Safaricom to reputational risks, but it could also potentially result in adverse regulatory and legal action for Safaricom and Genghis,” said an excerpt from Safaricom’s letter. In addition to the allegations of business fraud, Genghis also accused Safaricom of breaching privacy laws. The bank claims the telco has been migrating customers from Mali to Ziindi through the M-Pesa app without their consent, a breach of data protection regulations. In September 2024, the CMA ranked Mali as the seventeenth-largest collective investment scheme in Kenya, with assets totalling $23.9 million (KES3.1 billion). The fund generated $89,748 (KES11.6 million) in revenue for Safaricom in the first half of 2024. The dispute highlights the growing competition in Kenya’s wealth management and digital finance sectors as the telco seeks to expand its investment offerings through M-Pesa.
Read MoreTechstars-backed PBR Life Sciences raises $1 million pre-seed funding
PBR Life Sciences, a Techstars-backed healthcare data analytics company, has raised $1 million in pre-seed funding. The company will use part of the funds to invest in AI infrastructure and expand into Ghana and Kenya. The funding was raised from Launch Africa, Microtraction, Kaleo Ventures, Octerra Capital, Marula Square, XA Africa, ARM Labs, and Techstars. Founded in 2015 by Ayodeji Alaran, PBR pivoted into big data and analytics in 2021, providing multinational pharmacy groups like Sanofi with data and insights to make informed decisions—like product pricing, forecasting, and new product development—in the African markets they operate. These pharmaceutical companies often struggle with excessive production volumes due to a lack of understanding of actual market demand. PBR gathers anonymised data—drug quantity, prices, and how frequently they are purchased—from various pharmacies to enable pharmaceutical companies to better match production with actual market demand. PBR provides pharmaceutical companies, consulting firms, NGOs, and multilateral agencies with access to this data through pre-built AI-powered analytics dashboards. These dashboards allow users to see market shares, product consumption patterns, and other insights across Nigeria and Ghana. PBS also offers a generative AI feature where users can ask questions and automatically generate analytics. As traditional drug discovery methods shift towards AI, there is a risk of excluding patients from Africa due to a lack of local data from the continent. PBS is solving this problem by gathering and providing unique data points about people on the continent. The company plans to use AI for drug discovery by working closely with patients in clinical trials. PBS will also explore the use of blockchain for anonymization and randomization of healthcare data in the future and expand into 10 more African countries. “Being backed by some of the most reputable venture capital investors and angels in Africa not only inspires us as a team to do more but further validates the vital need to close the gap of inadequate real-world, healthcare big data that will power AI and innovation for the sector whilst unlocking global life sciences growth that will be powered by the region,” said Alaran. PBR, which was one of the twelve (12) startups in the second cohort of the ARM Labs Lagos Techstars Accelerator programme, serves companies like Sanofi, Emzor, Roche, International Finance Corporation, and Mercs. The company claims to have grown its revenue by 200% since 2023 but declined to share specific figures. PBS competes with companies like IQVIA and Sanisphere which offer similar services. PBR makes money through subscriptions, sale of independent reports, and consultation fees.
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👨🏿🚀TechCabal Daily – When will the exits cross the road?
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! We have come to the end of TC Daily for 2024! Thank you so much to all our readers who have stuck with us through all the ban puns and insightful articles. We’ll be taking the next two weeks to strategise. TC Daily will be back in your inboxes on January 6, but TechCabal will be publishing some insightful pieces to keep you going. To close out the year, we’ve got you a gift. Ecosystem thought-leaders Osarumen Osamuyi, publisher of The Subtext, and Derin Adebayo, publisher of Unevenly Distributed, have co-authored today’s edition. Let’s get started! When will the exits cross the road? Eskom records $3 billion in losses in 2024 Proparco invests $5 million in African climate tech Funding tracker World Wide Web 3 Jobs Next Wave When will the exits cross the road? by Osarumen Osamuyi and Derin Adebayo Four days ago, Tyme Bank announced its $250 million Series D round which valued the company at $1.5 billion. This comes just under two months after Moniepoint’s Series C, which also took the company to unicorn status. In November 2019, Interswitch became Africa’s first unicorn. This was six months after Jumia listed on the New York Stock Exchange. Since 2019, eight other African startups have hit a billion dollar valuation (add one or two more companies depending on how you feel about the provenance of companies like Go1 and Zipline). The exits have also accelerated, with companies such as Paystack, Sendwave, DPO, & Instadeep all getting acquired since 2019. Image Source: The Subtext However, while the continent has seen many billion dollar valuations and has seen some companies exit, it has not seen a single company hit a billion dollar valuation and then exit. African unicorns account for a combined $14.7 billion in valuation. In comparison, since 2010, all major exits (>$100 million) for African startups sum up to just $4 billion. We first addressed the lack of African exits in an essay titled The Chicken or The Exit? (2021). In the 11 years before that article (2010-2020), the ecosystem raised $7B in venture capital. At the time we argued that it was too early for a conversation about exits. In the three years since (2021-2023), the ecosystem raised more than $12 billion. A significant portion of that capital went to a handful of growth stage companies. Image Source: The Subtext Given the level of capital that has come into the continent, and the number of growth-stage companies that have emerged, it is difficult to argue that the ecosystem is still too early to face real questions about the lack of exits. With this in mind, we’ve revisited the question in a new essay titled “When Will The Exits Cross The Road?” The piece explores the journey of the African ecosystem since 2010. We place Africa within the context of other emerging markets while chronicling the continent’s first real venture cycle. We also explore the core tension that this cohort of African growth-stage companies must navigate if they are to achieve significant exits. Finally, the piece tries to explore how the past few years have set up the foundation for the next stage of the ecosystem’s growth. You can read it on The Subtext, and Unevenly Distributed. Osarumen Osamuyi is the founder of The Subtext, an Africa-focused tech analysis firm. Previously, he has studied/supported the ecosystem via roles at Meta, DFS Lab, and Ventures Platform. Derin Adebayo is a Manager at Endeavor. Through his newsletter, Unevenly Distributed, he explores the diffusion of technology, entrepreneurship, and venture capital in emerging markets. Read About Moniepoint’s Impact on Pharmacies Do you remember what you bought the last time you visited a pharmacy? Data from Moniepoint’s pharmacy case study reveals it was likely a painkiller. Click here to discover how Moniepoint is enabling access to healthcare through payments and funding for community pharmacies. Companies Eskom records $3 billion in losses in 2024 Image source: Eskom Eskom is having a rough time. The South African power company which was last profitable in 2017 recorded a R55 billion ($3 billion) loss in its 2024 fiscal year. The loss was 2x its 2023 loss of R26.1 billion ($1.4 billion). The steep loss was expected following widespread power outages stemming from failures at inadequately maintained generating facilities. The power facility recorded 329 days of scheduled power outages or load-shedding during the fiscal year. Those power outages caused the company to lose R22 billion ($1.14 billion) in revenue. The company has now improved power supply, with no scheduled load shedding scheduled since Q2. The company has also lowered its diesel spend by R11.9 billion ($643 billion) according to a presentation on the company’s website. A significant portion of Eskom’s 2024 losses also stemmed from a R36.6 billion ($1.9 billion) impact after the unbundling of its transmission business. Eskom chief executive officer Dan Marokane believes that the power company can return to profitability in the 2025 financial year due to a reduction in diesel usage and a drop in power cuts. The company projected an after-tax profit of more than R10 billion ($548 million) for its 2025 fiscal year. Lower debt and debt service costs will also contribute to the improved profit outlook, in addition to a 12.7% tariff hike. The company’s liquidity has significantly improved, primarily due to a government bailout of R76 billion, which covered much of its debt servicing obligations. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Investment Proparco invests $5 million in Equator Africa Fund Image source: Zikoko MemesThis year venture capital firms have been expending a lot of effort into saving the planet by investing in climate solutions. A recent report
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