👨🏿🚀TechCabal Daily – Canal+ takeover in slow mo
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy mid-week! Kenya has set a timeline for the publication of its national AI strategy, targeting May 2025. This move comes in response to the increasing adoption of AI technologies among Kenyans and follows earlier efforts to combat the spread of AI-driven misinformation in the country. It will join several other African countries—including Algeria, Senegal, and Egypt—that have defined regulatory frameworks for AI. Canal+ extends deadline for MultiChoice takeover Why taxing cryptocurrency in Kenya might be a long road M-PESA’s fix for a costly problem World Wide Web 3 Opportunities Streaming Canal+ extends deadline for MultiChoice takeover Image: Google Canal+, the French broadcasting giant, has extended the deadline to finalise its takeover of South Africa’s MultiChoice from April 8, 2025, to October 8, 2025. This extension allows more time to set up a licencing company (LicenceCo) that complies with South Africa’s foreign ownership laws, a key requirement for the deal’s approval. Canal+ has had its paws on South Africa’s MultiChoice for so long, viewing the pay-TV group as its most effective gateway into Africa, thanks to its operations across multiple countries. MultiChoice first caught Canal+’s attention in 2020 when it acquired a 6.5% stake in the pay-TV provider. Over the years, this stake steadily increased, reaching 41.6% by April 2024 and triggering a mandatory takeover offer under South African law. In response, Canal+ offered to buy the remaining shares at R125 ($6.74) per share. The transaction was initially expected to close by April 2025, but regulatory hurdles, particularly South Africa’s broadcasting ownership laws, slowed progress. The process was further complicated by Canal+’s separation from its former parent company, Vivendi, in December 2024, which led to its independent listing on the London Stock Exchange. Despite these challenges, the extension confirms Canal+’s commitment to acquiring MultiChoice under its new corporate structure. To comply with South African regulations, a new entity, LicenceCo, will be established to hold the country’s pay-TV licence and manage DStv subscribers. It will be controlled by South African stakeholders, including Phuthuma Nathi, Identity Partners, Itai Consortium, Afrifund Consortium, and a Workers’ Trust. Meanwhile, MultiChoice Group will shift from being a broadcaster to functioning solely as a video content supplier. Acquiring MultiChoice is a strategic move for Canal+, which aims to expand its influence in Africa’s fast-growing media market. MultiChoice is the largest pay-TV provider on the continent; an acquisition will strengthen Canal+’s position in both traditional and streaming services, helping it compete with global streaming giants with a target of 100 million subscribers. The full licencing and broadcasting takeover could bring increased investment in local content, improved streaming options, and potentially more competitive pricing. However, regulatory scrutiny and local content requirements will shape how Canal+ operates in the region. Are you an Afincran? If you’re building solutions for Africa, you already are. Join Fincra’s mission to empower Africa through collaborative innovation. Together, we’re building the rails for an integrated Africa. Join the Afincran movement—let’s drive change! Cryptocurrency Why taxing cryptocurrency in Kenya might be a long road Image Source: Yarn Kenya’s push to tax cryptocurrency transactions through a 3% Digital Asset Tax (DAT) has drawn more criticism from industry stakeholders. They argue that the challenges of taxing crypto extend beyond just setting a percentage. The approach Kenya is taking appears rushed and risks alienating key industry players. The Virtual Asset Service Providers (VASP) Bill, 2025, which seeks to regulate the crypto sector, was released in January 2024, but stakeholders were initially given a short window to review and provide feedback. After concerns were raised, the Blockchain Association of Kenya (BAK) extended the consultation period until early February. Even with the extension, many in the industry argue that meaningful input requires more time, especially for a sector as complex as crypto. Another key issue is enforcement. Unlike traditional financial institutions, crypto operates in decentralised networks with peer-to-peer (P2P) trading at its core. Kenya has proposed a real-time crypto tax monitoring system through the Kenya Revenue Authority (KRA) to track transactions, but its effectiveness remains questionable. Many traders rely on informal P2P networks and mobile money services, making oversight difficult. While the government has shown signs of cooperating with large centralised P2P networks operating in Kenya, there’s still the argument of incentives for these foreign players—which is not there yet given Kenya is a relatively smaller market for crypto transactions. If enforcement mechanisms are weak, traders may shift to offshore platforms or decentralised exchanges to avoid taxation. Additionally, the 3% tax is significantly higher than global standards, potentially discouraging innovation and driving local crypto startups out of the country. KotaniPay, which went for a South African crypto licencing in 2024 is one clear example. Indonesia, the only other country with a similar levy, charges between 0.1% and 0.2%—a fraction of what Kenya proposes. If the costs of compliance outweigh the benefits, companies may choose to operate elsewhere, undermining Kenya’s goal of becoming a fintech leader. Regulating and taxing cryptocurrency requires a nuanced approach. Kenya must balance revenue collection with policies that support industry growth. Without clear guidelines, proper consultation, and practical enforcement mechanisms, the road to effective crypto taxation will be long and uncertain for Kenya. YouA startup’s guide to understanding data privacy Discover tactical tips for African startups on building a strong foundation for data privacy and protection. Learn more→ Fintech M-PESA’s fix for a costly problem Image Source: Google Erroneous transactions have long been a headache for M-PESA users, and an expensive one for Safaricom. But a simple tweak to Hakikisha, its transaction confirmation feature, has slashed daily reversal requests from 12,000 to 4,000. It’s easier for M-PESA customers to authenticate a transaction with a “Yes” or “No” action instead of the previous opt-out system, which required dialing a number within 15 seconds to cancel a payment. It was a clunky process that often backfired. “The call to action was not very clear,” said Anita Kaunga, M-PESA’s Product Manager for Consumer Payments. The impact extends beyond M-PESA. Kenyan
Read MoreMoniepoint partners with AfriGO to introduce five million contactless cards
Nigerian fintech unicorn Moniepoint has partnered with AfriGO, the national domestic card scheme, to roll out five million contactless payment cards and tap-to-pay solutions across Nigeria. The move aligns with Nigeria’s ongoing shift toward contactless payments. The partnership could drive widespread adoption of contactless payment in Nigeria considering Moniepoint’s wide distribution network across the country. By leveraging Moniepoint’s vast network of agents and merchants, the initiative aims to bring “tap and go” convenience to an economy still dominated by cash and PIN-based card transactions, accelerating the Central Bank’s cashless agenda and extending digital payments into underserved communities. “Today, over 50% of merchants still rely on cash, because it’s fast and reliable,” said Didi Uwemakpan, Moniepoint’s VP of corporate affairs. “If cash is fast and reliable, what is that thing that can mimic cash and still helps the economy grow?” Moniepoint’s partnership with AfriGo comes one week after TechCabal reported that Palmpay partnered with CashAfrica, a contactless payment infrastructure provider, to roll out tap-to-pay functionality on its POS terminals, starting with 1,000 devices in a pilot phase before a nationwide expansion in March. Moniepoint is building its contactless payment infrastructure and plans to launch contactless-enabled cards in H2 2025. The company chose AfriGo for its cost efficiency when compared to global counterparts. “While we might decide to announce another card scheme partner, for us, it’s about how do we drive digital payments in Nigeria. At the end of the day, do my customers want this, do my customers find value in this and is it cost efficient?” Uwemakpan shared. “For AfriGo, it’s about capturing a part of the market that has not been already captured.” While contactless payment is a staple in markets like Europe and China, many Nigerians are unfamiliar with it. “The responsibility is on us to educate the merchants and users,” Uwemakpan added. Moniepoint will comply with the CBN’s contactless payment guidelines which require risk management measures such as a per-transaction limit of ₦15,000 and a ₦50,000 daily limit. “The goal is to introduce enough friction to safeguard customers from fraud,” the company said. Moniepoint will determine the threshold at which PIN authentication becomes necessary for transfers, with median transaction value for card payments pegged at ₦5,000. If successful, the Moniepoint–AfriGO partnership could be the beginning of a widespread adoption of contactless payment in Nigeria.
Read MoreAfter investors’ exit, Kobo360 new owner Obi Ozor plots Q2 2025 comeback
Dr. Obi Ozor, co-founder of freight logistics startup Kobo360, is attempting a high-stakes revival after reclaiming control of the company through an equity transfer. His multi-year turnaround plan hinges on restructuring ₦10 billion owed to partner banks and securing new financing to restart operations by Q2 2025, according to two people close to the company. But the path back is challenging. Kobo360’s future depends on winning long-term haulage contracts from major shippers, such as manufacturers and distributors, and convincing lenders that the business can generate predictable cash flow. These contracts are critical for securing contract-backed financing, where banks fund businesses based on guaranteed future revenue. In a WhatsApp message to recently laid-off employees, some of who Kobo360 still owes months of unpaid salaries, Ozor claimed the company was close to sealing crucial deals. He assured them that operations, which have been on hold across multiple markets, would resume by Q2 2025, with plans to recall laid-off employees by 2026. Before its financial troubles, Kobo360 was one of the most celebrated logistics-tech startups in Africa, raising over $79 million in equity and debt from investors including Juven, Goldman Sachs’ Africa investment arm, the International Finance Corporation (IFC), and TLcom Capital. It expanded into Kenya, Ghana, Benin, and Burkina Faso, aggregating over 50,000 trucks and serving major corporate clients such as Unilever, Dangote, and DHL. But its rapid expansion masked deeper financial weaknesses. The company relied heavily on short-term bank loans to finance fleet operations rather than sustainable revenue. A breaking point came when a key banking partner suddenly cut its credit line, leaving Kobo360 unable to pay truck owners and suppliers. As its financial position deteriorated, investors began pulling out. Some refused to participate in follow-on funding rounds, while others wrote down their investments entirely. Meanwhile, key executives resigned. By late 2024, Kobo360 had paused operations in several markets, laid off staff, and by December, had all but shut down. Despite the company’s dramatic fall, Ozor insists Kobo360 can recover, two sources familiar with the matter told TechCabal. He has assembled a lean team to execute a recovery plan centered on cost-cutting, debt restructuring, and rebuilding the company’s core operations. But questions remain about the new business model it will adopt or how close it actually is to securing financing. Ozor remains confident, writing in a WhatsApp memo seen by TechCabal that “Companies for over a thousand years have struggled, come to the brink of total failure, and some—through grace, luck, or grit—have pulled themselves out of the ashes to emerge even more resilient and successful.”
Read MoreCBN’s new leadership: Here are the 16 directors that will shape Nigeria’s financial future
The Central Bank of Nigeria (CBN) has appointed 16 new directors, a major leadership shift that will influence banking supervision, monetary policy, fintech regulation, and consumer protection. While regulatory decisions are often attributed to “the CBN,” the individuals behind those decisions remain largely unknown to the public. Now, their names and roles are clear. Akinwunmi Olubukola Akinniyi will lead Banking Supervision, a department responsible for ensuring banks comply with regulations. Sike Rita Ijeoma will head Financial Policy and Regulation, shaping the rules that guide Nigeria’s financial system. Isa-Olatinwo Aisha will direct Consumer Protection, a crucial role in holding banks accountable for how they treat customers. With fintechs facing increased regulatory scrutiny, the Payments System Supervision Department has been split from Payments System Management to improve oversight. Yusuf Rakiya Opeyemi now leads the supervision unit, which will enforce compliance across the sector. Other key appointments include Obom Victor Ugbem in Monetary Policy, Farouk Mujtaba Muhammad in Reserve Management, and Vincent Monsurat Modesola in Strategic Management and Innovation. The supervision of microfinance banks, mortgage banks, and finance companies now falls under Solaja Mohammed-Jamiu Olayemi, while Nakorji Musa will oversee Trade and Exchange. This reshuffle cements the individuals who will shape Nigeria’s financial landscape, from banking regulations to digital payments. For years, their decisions will define how businesses operate and how consumers experience the financial system.
Read MoreFor MSMEs, Chpter’s API turns likes and comments into sales
Kenya is yet to fully tap into the potential of social commerce despite its rapid rise among micro, small, and medium-sized enterprises (MSMEs). Many businesses have embraced it because millions of Kenyans use social media platforms. Many e-commerce businesses have faced the challenge of users abandoning purchases when redirected away from their favourite social platforms. Most people prefer to browse and shop without leaving their feeds. For MSMEs, especially those that sell online, this presents a powerful opportunity: allowing customers to shop within their social media experience and turning engagement into transactions. This is the thesis of social commerce. Recognising this shift, Kenya’s Chpter, co-founded by Tesh Mbaabu, who also co-founded the YC-backed B2B e-commerce platform Marketforce, has built a platform that automates conversations, marketing, and payments on WhatsApp and Instagram. So what does Chpter actually do? Startups like Chpter don’t sell products directly. Rather, they provide the technology that allows other businesses to sell through platforms like WhatsApp and Instagram. This means that Chpter operates in the background and acts as a bridge between businesses and customers by handling tasks like order processing, payments, and customer interactions without being a marketplace itself. “In Africa, e-commerce is estimated to grow to over 500 million shoppers by 2025. Social media platforms like WhatsApp, Instagram, Facebook, and Tiktok have evolved into online shopping havens where a lot of buying and selling is happening,” Mbaabu told TechCabal. “Chpter enables businesses to convert social media from just a marketing channel to a fully-fledged sales channel. We give businesses technology to send WhatsApp marketing campaigns (much better engagement than SMS or email), collect orders and even payments seamlessly within these social media platforms,” he added. With mobile penetration exceeding 130% in Kenya and social media usage averaging over three hours daily, the potential for social commerce is huge. The ability to convert social engagement into sales is no longer just an idea but an active, growing market. After raising $1.2 million in pre-seed funding in September, Chpter has been growing its tech stack to offer enhanced products. The startup could also expand beyond Kenya, with plans to launch in markets like Egypt and Nigeria. Chpter’s backers suggest an untapped business model in Kenya Chpter’s investors see a big untapped opportunity in Kenya’s social commerce landscape. The startup’s $1.2 million pre-seed round was led by Pani, an Africa-focused investment firm co-founded by former Cellulant CEO Ken Njoroge. Other investors include Plesion Capital, Techstars, Norrsken, Renew Capital, ViKtoria Ventures, and angel investors like Nala CEO Benjamin Fernandes and Workpay co-founders Paul Kimani and Jackson Kibigo. Before this, Chpter joined the Norrsken Accelerator in 2023 and Safaricom’s Spark Accelerator in May 2024. Norrsken’s investment remains undisclosed. Safaricom provided three months of training and mentorship through the Spark Accelerator to help Chpter scale. Are there any plans to raise after the pre-seed round? Venture-backed startups like Chpter often prioritise user acquisition and market expansion before profitability. The goal is to establish a strong user base, refine the product, and capture a significant market share before shifting focus to monetisation. “Yes indeed (on plans to raise), but we are prioritising profitability before we raise the next round of growth capital,” Mbaabu said. How does Chpter make money? Chpter operates on a hybrid revenue model combining subscription fees, transactional charges, and partnerships. Businesses using Chpter’s platform pay a monthly Software-as-a-Service (SaaS) fee based on their size: $50 for small businesses, $120 for medium-sized ones, and $550 for enterprises. Beyond subscriptions, Chpter earns from each customer interaction processed by its AI-powered sales and support agents, meaning businesses pay per conversation handled. Chpter is also a Meta Business Partner, meaning it facilitates outbound WhatsApp messaging for marketing and operational use. This way, it generates revenue from businesses that send messages to customers through the platform. “We have built a self-service platform that allows businesses to register themselves for a free trial, connect their social media accounts, and start enjoying all our platform’s benefits,” Mbaabu added. For now, Chpter is positioning itself as the infrastructure behind social commerce, but its long-term play will depend on how businesses adopt and scale with its tools. With WhatsApp and Instagram increasingly doubling as storefronts, the question is not whether social commerce will grow but who will control the rails that power it.
Read MoreExclusive: Nigeria’s Central Bank names sixteen new directors in major leadership shakeup
The Central Bank of Nigeria (CBN) has appointed 16 new directors across key departments, marking one of the most significant leadership shakeups in recent years. The new appointees will oversee banking supervision, payment systems, and consumer protection, areas critical to Nigeria’s financial sector, especially as regulators tighten scrutiny on banks and fintechs. The restructuring comes one month after the reinstatement of Jimoh Musa Itopa as director of the Payments System Management Department (PSMD), a move that signaled broader changes at the central bank. The PSMD regulates cashless policies, licenses payment-switching companies, and oversees Nigeria’s open banking framework. With the appointments finalized, the CBN is doubling down on supervision, compliance, and consumer protection at a time when the financial system faces increasing fraud risks and regulatory crackdowns. The CBN did not immediately respond to a request for comments. New Directors At The CBN, New Priorities Dr Olubukola Akinwunmi Akinniyi has been named director of banking supervision, one of the most powerful roles at the CBN. Akinniyi, a PhD holder and author, is known for being “nonconfrontational and a peacemaker,” according to a source familiar with his work. His appointment places him at the heart of bank oversight, a critical role as Nigeria’s lenders prepare to power President Bola Tinubu’s ambition of a $1 trillion economy. Another powerful department is Payment System Supervision, which will now be led by Yusuf Rakiya Opeyemi. This newly created directorate was part of a broader restructuring that split the Payments System Management Department (PSMD) into two separate units: one focused on policy and the other on supervision. This change was driven by the belief that more urgency was needed in both areas, particularly in addressing the rising incidents of fraud in the industry. While Yusuf Rakiya Opeyemi now oversees the supervisory arm, a separate director has been appointed to lead the policy side. Previously, payment supervision and policy were housed under a single team, which some industry stakeholders saw as a bottleneck to effective regulation. The restructuring follows the return of Jimoh Musa Itopa as director of PSMD, a move that also affected the tenure of Oladimeji Taiwo Yisa, who had been named Acting Director of the Payments Systems Management Department. Oladimeji Yisa Taiwo has now voluntarily left the Central Bank, according to a person familiar with the matter. Another critical appointment is Aisha Isa-Olatinwo as director of consumer protection. Bank customers frequently complain about unresolved disputes with financial institutions, and the CBN has faced criticism for not holding banks accountable. Olatinwo, who has a background in audits, is expected to take a tougher stance on consumer grievances, according to an insider. A Shift in Regulatory Focus The restructuring cements the CBN’s increasing focus on new policy and enforcement, a shift from the previous years of policy-driven reforms without strict follow-through. The appointments also follow a turbulent period for fintechs, which faced licensing freezes, heightened compliance requirements, and a wave of fraud-related concerns in 2024. With new leadership in place, banks and fintech should expect even closer scrutiny. Dr Olubukola’s banking supervision team will monitor lenders’ financial health. Rakiya Yusuf’s payments supervision unit will be under pressure to crack down on fraud and ensure compliance. Aisha Isa-Olatinwo’s consumer protection office will likely be more vocal in resolving disputes. For Nigeria’s financial sector, this is not just a change in personnel, it is a signal that the CBN is doubling down on policy formulation and full-scale enforcement.
Read MoreNigeria replaces Remita after 13 years, launches new e-payment platform
The Nigerian government has shut Remita payment platform which has powered its Treasury Single Account (TSA) for 13 years. The government will replace the e-payment platform with a new Treasury Management & Revenue Assurance System (TMRAS). The switch means Nigerians will now interact with a new platform for government payments and potentially delivering a massive blow to Remita’s payment company, Systemspecs, the fintech firm that built its business around Remita’s central role in revenue collection. The new platform will be rolled out in two phases—first for all naira payments, then by June for foreign currency transactions—to ensure a smooth transition without disrupting government revenue collection . During a two-month overlap ending May 4, Remita will run concurrently with TMRAS so ministries, departments, and agencies (MDAs) and banks can adapt gradually . TMRAS introduces features like real-time balance tracking and automatic tax deductions on payments, which are expected to improve revenue inflows and plug leakages in the Treasury Single Account. All government collections will be centralized through the Central Bank’s gateway, meaning banks and payment processors must be CBN-licensed and integrate with the new system. Remita’s replacement will deal a huge blow to SystemSpecs, its parent company. For over a decade, the Nigerian government has been its largest client, with Remita serving as the primary gateway for the Treasury Single Account (TSA) and processing trillions of naira in public funds. While the company offers payroll, payment processing, and enterprise solutions, the TSA contract has been its most lucrative revenue stream, generating billions in transaction fees annually. Launched in 2012 by SystemSpecs, Remita became the backbone of Nigeria’s TSA, processing over ₦34 trillion of government revenues between 2015 and 2022. The platform significantly improved financial accountability, helping the government consolidate thousands of accounts and reportedly saving about ₦132 billion yearly in bank charges and interest through TSA reforms. Despite these contributions, Remita’s use by the govenrment was not without controversy. In 2015, senators questioned a 1% transaction fee (about ₦25 billion) allegedly paid to the platform’s operators. In March 2024, lawmakers probed possible revenue leakages and an unapproved ₦15 billion paid to Remita in fees from 2016 to 2018 . These concerns over transparency and accountability likely influenced the government’s decision to replace the platform.
Read MoreKobo360 investors sell equity to ex-CEO Obi Ozor as struggles mount
Investors in Kobo360, a freight logistics startup that raised about $79 million, have sold their shares to co-founder and former CEO Obi Ozor. The deal, which will see Ozor take on existing debt of about ₦10 billion, caps a dramatic fall for the eight-year-old company, which was once heralded as Africa’s “Uber of trucks” but has struggled with leadership churn, stalled haulage operations, and financial troubles. Ozor, who stepped down as CEO in 2022 to become Enugu’s transport commissioner, is back at the helm, leading a team of less than ten people in a last-ditch effort to revive Kobo360 through traditional financing and haulage deals. The sale is a significant write-off for investors, including Juven, the African investment arm of Goldman Sachs, IFC, and TLcom Capital, who backed Kobo360 as a transformative force in African logistics. The company’s struggles highlight the brutal economics of freight tech in Africa, where businesses must balance thin margins, heavy capital demands, and unreliable working capital flows. “The challenging macroeconomic environment has created headwinds for startups across emerging markets, including in the logistics sector,” the International Finance Corporation (IFC), which backed the company through multiple equity investments, said in a statement to TechCabal. “IFC remains committed to supporting entrepreneurs driving innovation and development across the continent.” Kobo360 declined to comment on this article TLCom declined to comment on any part of this story. A former Kobo360 employee who asked not to be named as they were unauthorised to speak on the matter claimed Kobo360’s growth stalled after a bank partner cut off its credit line due to unserviced debt. The startup raised around $10 million in debt financing from unspecified lenders. 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The model promised to cut inefficiencies, reduce empty return trips, and improve pricing transparency, factors that have long made logistics one of Africa’s most expensive sectors. For a while, the bet seemed to pay off. In 2019, Kobo360 secured $20 million in Series A funding, followed by a $48 million Series B in 2021. At its peak, it aggregated over 50,000 trucks, expanded into seven African markets, and signed up corporate clients like Unilever, Dangote, and DHL. But the company’s Achilles’ heel was always working capital. Kobo360 operated on a model that paid truck drivers upfront but had to wait 30 to 90 days for manufacturers and distributors to settle invoices. This cash flow gap forced it to rely on bank credit lines, a lifeline that vanished when a financial partner cut off funding over unserviced debt. “Our partnership with these banks was three-way, so tensions on the bank’s side led to us losing access to our customers’ domiciled accounts. These were major clients, and losing their business significantly reduced Kobo360’s trip volume, revenue, and overall growth,” said a former employee who asked not to be named discussing a sensitive matter. Without working capital, Kobo360 struggled to pay truck drivers on time, leading to declining trip volumes and a downward spiral in revenue. Investors who once backed its growth began to lose faith. In October 2024, CEO Ciku Mugambi—who had replaced Ozor in 2022—stepped down. Several senior executives followed, leaving the company with skeletal staff. Kobo360’s situation isn’t an isolated case. The logistics sector has seen a drop in
Read MoreSafaricom’s big fix: How M-PESA cut daily reversal requests from 12,000 to 4,000
M-PESA has reduced its daily cash reversal requests from 12,000 to 4,000, a 67% drop, after refining Hakikisha, a confirmation feature that prompts users to verify recipient details before completing transactions. The update is a significant milestone in Safaricom’s efforts to improve transaction accuracy and reduce the operational burden of processing erroneous transfers. Erroneous transactions are a pain point for M-PESA customers and a costly drain on Safaricom’s resources. Before Hakikisha’s rollout, the telco spent considerable time investigating and reversing payments sent to the wrong recipients. Initially launched in 2015, the feature was designed to curb these errors by displaying the recipient’s name before payment confirmation. However, early versions required users to dial a number within 15 seconds to cancel a transaction, a cumbersome process that led to unintended transfers rather than preventing them. “The call to action was not very clear. Customers had to dial ‘1’ to stop a transaction, and many didn’t know what to do,” said Anita Kaunga, Product Manager for M-PESA Consumer Payments. “We realized the feature wasn’t working as intended.” To fix this, Safaricom redesigned Hakikisha, replacing the previous opt-out system with a simple Yes or No pop-up message that requires confirmation before a transaction proceeds. The improved version has significantly reduced mistaken transfers, cutting reversal requests by two-thirds. The impact extends beyond M-PESA. Nearly all Kenyan banks and rival mobile money services, including Airtel Money, have adopted similar verification features to prevent misdirected payments. Banking apps now retrieve recipient details before transactions are finalised, a crucial improvement for banks where reversals can take a week or longer. However, the update has also raised privacy concerns. Some users exploit Hakikisha to verify personal details such as names without completing transactions. In response, M-PESA has capped such verification attempts at five per day, disabling Hakikisha for users who exceed this limit. M-PESA, which turns 18 on March 25, remains a dominant force in Kenya’s financial ecosystem. The service had 34 million subscribers as of November 2024 and continues to be a top revenue driver for Safaricom, recording a 16.6% year-on-year growth to KES 77.22 billion ($597 million) in the half-year ending September 2024. With fewer transaction errors and a more seamless user experience, M-PESA is reinforcing its role as Kenya’s go-to digital payment platform.
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👨🏿🚀TechCabal Daily – A Goodweek for Safaricom?
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! MTN Uganda, in partnership with payments giant Mastercard and Diamond Trust Bank and Network International, has introduced virtual cards to MoMo, its mobile money fintech arm. The cards will allow MoMo agents onboard more sticky users involved in card-based transactions. This is a strategic move for MTN Uganda to strengthen its mobile money numbers after reporting a 13.2% growth in fintech subscribers by Q3 2024. Could this development extend to other key markets, particularly Nigeria, where subscribers declined (46.6%) year-on-year in 2024? In other news, Google is bringing new features to Gemini, its AI assistant, to let users ask it questions by sharing what’s on their screen. These features will roll out to Gemini Advanced users on the Google One AI Premium plan on Android later this month. Safaricom’s legal battle with one of its dealers escalated to Kenya’s high court Over 84% of MTN Nigeria’s employees earn $666 monthly P2P crypto traders vs the world Taxis go contactless in South Africa’s North West province World Wide Web 3 Opportunities Fintech Safaricom’s legal battle with one of its dealers escalated to Kenya’s high court Image: Reuters/Noor Khamis Safaricom, Kenya’s largest telecoms operator, is facing an escalating legal battle after one of its longtime dealers, Goodweek Inter Services Limited, challenged its removal from the telecom operator’s dealership network. The dispute, now before the High Court’s Constitutional and Human Rights division, has evolved into a broader fight over Safaricom’s alleged abuse of market power. Goodweek wants to turn the case into a class action by inviting other affected dealers to join. Goodweek, which has sold M-PESA services, SIM cards, and Safaricom merchandise since 2002, lost access to Safaricom’s dealer portal in April 2024 after failing to renew its contract. The company argues that Safaricom imposed unfair contract terms that forced dealers into agreements with no room for negotiation. It claims that the telco set unrealistic sales targets to deny commissions, deliberately reduced the number of dealers, and allegedly plans to cut its dealership network from over 400 to just 38. In its suit, Goodweek has also named Vodafone Plc, Vodafone Kenya Limited, and Mobitelea Ventures Limited as respondents, which shows that the dispute is part of a broader structural issue in Safaricom’s business model. The dealer says it invested over KES 180 million ($1.4 million) to meet Safaricom’s shop standards, only to be locked out of the dealership network. On the other hand, Safaricom maintains that Goodweek’s contract simply expired and that all dealers operate under the same terms; Safaricom claims that over 400 others renewed without issue. The telco also argues that the case should have been filed in the commercial court rather than as a constitutional matter since it revolves around contract law. With accusations of market dominance, unfair contract terms, and a potentially drastic reduction in its dealership network, the case could set a precedent for how Safaricom, and potentially other dominant firms, engage with smaller business partners in Kenya’s telecom sector. Are you an Afincran? If you’re building solutions for Africa, you already are. Join Fincra’s mission to empower Africa through collaborative innovation. Together, we’re building the rails for an integrated Africa. Join the Afincran movement—let’s drive change! Telecoms Over 84% of MTN Nigeria’s employees earn $666 monthly Image Source: MTN Nigeria MTN Nigeria, the country’s largest telecom operator by subscribers, by broadband reach, and, to match its big-boy status, competes as one of the top employers among its peers in the telecom sector. With over 84% of its employees earning at least ₦1 million ($666) monthly, MTN’s salary structure is reshaping expectations in Nigeria’s telecom industry. While competitors struggle with discretionary or performance-based pay increases, MTN has created a predictable wage system that rewards stability over volatility. This approach not only improves employee retention but also strengthens the company’s negotiating power when attracting talent from tech, finance, and other high-paying sectors. However, this wage dominance comes at a cost. In 2024, MTN’s total wage bill surged by 59.5% to ₦71.7 billion ($47.7 million). Sustaining such a payroll amid fluctuating foreign exchange rates, rising inflation, and increasing operational expenses will be a long-term challenge. Unlike startups or leaner telecom operators that optimise costs, MTN is betting on a well-paid workforce as a driver of efficiency and innovation. This strategy also extends to MTN’s broader ecosystem. Vendors, contractors, and service providers working with MTN now face higher expectations when negotiating salaries or fees. In a telecom sector where cost-cutting is a survival tactic, MTN’s model forces a rethink on whether aggressive wage structures can coexist with profit margins. Yet, these may just be shallow concerns, as MTN Nigeria has already proven it can consistently be a trillion-naira business, like the banks that have mastered the art of ekeing out profits every year—perhaps the telecom operator too, can pay like the banks. But like most big businesses, MTN Nigeria’s losses are heavy, which rightly puts the question of sustainability into focus. For workers in the sector, the ripple effect is already evident. Skilled professionals in smaller telecom firms, fintechs, and IT services now have stronger bargaining power, using MTN’s salary benchmark as leverage. Competitors may not be able to match MTN naira for naira, but they will need to offer new incentives—equity, benefits, or flexible work arrangements—to stay competitive in talent acquisition. YouA startup’s guide to understanding data privacy Discover tactical tips for African startups on building a strong foundation for data privacy and protection. Learn more→ Cryptocurrency P2P crypto traders face scam threats daily but see them as “occupational hazards” Image Source: OSL On any given day, if you scroll through Bybit’s peer-to-peer (P2P) trading feature—currently the largest active crypto P2P platform following Binance’s delisting of Nigerian users—the presence of Nigerian traders is hard to miss. You’ll spot them by their bogus claims of offering the “best deal” in the market. Hundreds, if not thousands, of young Nigerians flood the platform, drawn by the promise of
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