TechCabal Daily – The future of Kenyan banking….is expensive
In today’s edition: A new payment system could cost Kenya up to $200 million || NBS returns, bringing new inflation metrics and a complex outlook || Geely, Auto Mobility target 30,000 car sales in 2025
Read MoreSafaricom, Kenyan banks claim Central Bank’s new payment system could cost $200m
Safaricom and Kenyan commercial banks claim the Central Bank’s (CBK) plan to build a fast payment system (FPS) could cost at least $200 million (KES25.9 billion) and take up to four years to complete. The FPS aims to enhance interoperability across the payments landscape and reduce transaction costs, but Safaricom and the Kenyan Bankers Association (KBA) argue that it could duplicate existing infrastructure and lead to inefficiencies that could slow innovation in Kenya’s financial sector. In their joint report, Safaricom and the Kenya Bankers Association (KBA) recommended that the CBK should instead enhance existing payment systems such as Pesalink—already used for peer-to-peer payments between banks—rather than creating a costly new system from scratch. While acknowledging the potential benefits of FPS, both organisations question the $200 million price tag and lengthy timeline. A key concern raised by KBA and Safaricom is the Special Purpose Vehicle (SPV) proposed to manage and operate the FPS. The SPV would be owned by the CBK (60%), Safaricom (20%), and commercial banks (20%). It would require legislative amendments, including amendments to the Central Bank of Kenya Act, the National Payment Systems Act, the National Payment Systems Regulations of 2014, the e-money Regulations of 2013 and an initial investment of $30 million. The proposed SPV structure would make the FPS a state-owned enterprise under the CBK’s majority control. According to the report, this could introduce bureaucratic delays, slowing innovation. “The creation of an SPV may mean that streamlining regulations that would deliver immediate benefits within the current payment landscape may be delayed until the SPV and FPS are operationalised,” the proposal said. While the CBK has not disclosed whether it will pursue the SPV model or upgrade existing infrastructure like Pesalink or M-Pesa, Safaricom and the KBA suggest enhancing existing infrastructure is a cheaper, timely option. The CBK did not respond to multiple requests for comments. Not suitable for mobile money market Another significant concern is the mobile market in Kenya, one of the most advanced in the world. Platforms like M-Pesa and Airtel Money dominate the landscape, reporting billions of dollars in transaction value annually. According to Safaricom and the KBA, the proposed FPS model may not be suited to a mobile money-oriented market. “It is a high-risk approach as it is an unproven model in a market where payments are predominantly digital and mobile-based. Most FPS implementations from other markets started when cash and/or card payments were dominant,” said the Safaricom and KBA report. While the report does not address the views of other payment service providers (PSPs), Safaricom and KBA advocated upgrading existing payment systems, a model adopted by Zimbabwe. This would mean designating an existing system, such as M-Pesa or Pesalink, as the primary operator of the FPS. Instead of creating a new system, Safaricom and KBA propose broadening the ownership of the existing system to include CBK and other payment service providers, SACCOs, micro-finance banks, and other players who may wish to take a direct stake. Whatever the route CBK takes, payment experts believe that the FPS will lower transaction costs and ease funds transfer across different platforms. “It will create opportunities for smaller players but could also raise entry barriers for them. It will drive innovation in Kenya’s payments industry, with both small and large service providers pushed to offer better solutions,” said Alfred Ongere, former Payless Africa chief technology officer. The existing payment infrastructure is fragmented, with mobile money platforms operating in silos from other financial institutions. Banks, Saving and Credit Cooperative Organisations (SACCOs) and other payment providers need separate agreements to plug into mobile platforms like M-Pesa and Airtel Money. At the moment, Pesalink only caters to banks, locking out other financial institutions. The CBK is expected to issue further guidelines in the coming months. However, the debate over an optimal payment system highlights the delicate balance to maintain Kenya’s progress in mobile and digital payments. .
Read MoreNigeria’s headline inflation quickens to 34.80% in December 2024, puts rate hike in focus
Nigeria’s headline inflation quickened in December 2024 to 34.80% due to increased food prices and heightened consumer spending during the holidays, according to data from the National Bureau of Statistics (NBS). The latest figures, up from 34.60% reported in November, puts another interest rate hike in focus at the next Monetary Policy Committee meeting in February. Food and transport costs were the major drivers of December 2024 inflation. Food inflation eased to 39.84% up from 39.93% recorded in November 2024. “The outlook for inflation in 2025 is tricky considering the rebasing of the inflation basket,” said Samuel Onyekanmi, an analyst at Norrenberger. Oyekanmi expects that inflation will begin moderating by the second half of the year and will slow to the region of 25% to 27% by year-end. The statistics agency rebased its calculation of the consumer price index (CPI) and gross domestic product (GDP). The NBS calculates inflation using a CPI basket that measures the average change in price of goods and services consumed by people daily. The NBS, which previously tracked 740 of those goods and services, increased the CPI basket to cover 960 items. The addition of the new items was to reflect the current consumption patterns, Ayo Andrew Anthony, Head of Price Statistics at the NBS, said Thursday at a sensitisation workshop. New inflation figures based on the new price index will be released at the end of January 2025. “The recent GDP rebasing and CPI reweighting are significant steps forward in capturing the true breadth of economic activity. These adjustments should enhance data accuracy and support more effective planning,” said Olajide Oyadeyi, an economist at Econoday Inc.
Read MorePurple Elephant Ventures raises $4.5 million seed round to scale portfolio startups
Purple Elephant Ventures (PEV), which styles itself as the “world’s first tourism-focused venture studio,” has raised $4.5 million in seed funding. The Nairobi-based venture studio will use the funding to scale its portfolio of startups and launch new ventures focused on addressing the most pressing challenges in Africa’s tourism industry. The round saw participation from investors including Clear Creek Investment B.V, Klister Corp., Fede Pirzo-Biroli (founder of Playfair Capital), Anthony Rock, and Ian McCaig (former CEO of Lastminute.com). PEV is part of a growing list of venture studios offering seed capital, strategic guidance, and mentorship to help startups scale across Africa. Others include Fast Forward Venture Studio, Grone Studios, Ceed Cap, and First Founders. Launched in 2020, PEV helps founders craft hospitality Software as a Service (SaaS) solutions, sustainable procurement for tourism, and energy-efficient solutions for hospitality. The venture studio has launched five startups: Nomad Africa, a travel discovery platform and Kenya’s leading travel publisher and local agency; Kijani Supplies, a procurement tech company specializing in eco-friendly supplies for the hospitality industry; Zafari, a booking platform for African hospitality, streamlining operations for tourism operators; PowerTrip, a cleantech company delivering energy-efficient appliances to hospitality businesses; JOIN Africa, a startup that supports safari guides, created in partnership with Paul English, co-founder of Kayak. “This funding is a testament to the untapped potential in African tourism innovation,” said Ben Peterson, PEV co-founder and CEO. “With this support, we’re poised to revolutionise the industry through groundbreaking travel technology in Africa, fostering economic growth while preserving the continent’s incredible natural and cultural heritage. The future of sustainable tourism in Africa has never been brighter.”
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👨🏿🚀TechCabal Daily – Show me the naira
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning To help you crush your 2025 learning goals, we’ve curated a list of must-hear tech and business podcasts in Africa. These shows deliver insightful conversations, trend analysis, and entrepreneurial wisdom—from innovative breakthroughs to practical tips for navigating the African market. The Open Africa Podcast, for example, dives into startup stories and fintech solutions while Africa Business Stories spotlights inspiring women like Bunmi Olunloyo, who empowers women through dance. Discover more in our Top 10 list. AWS launches naira payments Sterling Bank staff unhappy with 7% salary increase Nigeria to expand its fibre optic network with $2 million US grant OpenAI welcomes Adebayo Ogunlesi to its Board World Wide Web 3 Events Cloud Computing AWS now accepts naira payments GIF Source: The Nollywood Star Around this time last year, Africa’s tech ecosystem erupted in a conversation on how much tech startups spend on cloud computing. One Nigerian HR-tech startup told TechCabal that they pay up to $80,000 monthly in cloud costs—pocket-clenching costs that now make accelerators and VC firmsallocate cloud credit to new and emerging startups. Google, for instance, gives startups up to $200,000 in Google Cloud credits to startups through its Black Founders Fund, while accelerators like Techstars and Y Combinator give their portfolio companies cloud credits. For startups operating in countries like Nigeria where currency devaluation has doubled cloud costs—as cloud providers like AWS, Microsoft Azure, and Google Cloud price their offerings in dollars—these costs can be a headache. A $1,000 cloud service that would have cost ₦458,000 in early 2023 now costs ₦1.52 million, a 107% increase! As the effects of the naira valuation persisted, local cloud companies—like Okra, Nobus MainOne Cloud, Web4Africa, and Layer3—began positioning themselves as alternatives with one major selling point: allowing customers to pay in local currency. This narrative was an instant hit for startups as they were keen on reducing costs. However, global cloud players are catching on. Yesterday, AWS announced that it will now accept naira payments. In addition to the naira, AWS announced that it will be accepting payments in 7 other other local currencies. AWS’s move to offer naira pricing means that local cloud providers must up their game by providing a unique value proposition. While local cloud providers have built a competitive edge around naira pricing, AWS’s offer of local payment options diminishes that edge. Startups may now find it harder to justify switching to local providers solely because of pricing reasons, forcing local players to innovate or compete on other value propositions. By paying in naira on AWS, startups can better manage their cash flow without worrying about sudden spikes in cloud costs due to dollar fluctuations. AWS’s move to offer naira pricing may also inspire Google Cloud and Microsoft Azure to offer similar pricing in Nigeria. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Banking Sterling Bank staff unhappy with 7% salary increase Image Source: ApataTV What excites bank employees more than a raise? A bigger raise. Bankers often joke that their expenses are the only things that inflate faster than their egos—while their salaries stubbornly refuse to keep pace. The latter part of this joke rings true for employees of a Nigerian commercial bank. Months after it introduced a cost-of-living adjustment (COLA) stipend, Sterling Bank, a tier-2 Nigerian commercial bank, raised salaries by 7%. The salary adjustment, first disclosed to employees in an internal memo in early January 2025, is meant to help employees offset the rising cost of living and quickening inflation. But employees want more. Late last year, Nigerian commercial banks raised salaries in response to economic pressures on consumer spending. GTBank, one of Nigeria’s biggest banks, for example, raised salaries by 40%. Union Bank, another tier-2 bank, followed suit with a similar 40% raise. While reviewing compensation is necessary to help employees cope with the economy, it also helps these banks retain talent in an industry where competitors don’t shy away from poaching. Sterling’s salary increase, however, is less than sterling to employees who expected a 20-30% increase, similar to competitor banks. Executive trainees (ETs), previously earning ₦327,000 ($211) monthly, will now take home ₦351,000 ($226). Senior executives (junior roles above ETs) on a ₦500,000 ($322) salary will see their pay rise to ₦527,000 ($340). The salary raise will impact the bank’s bottom line. Banks are known for their cost-efficiency, especially when it comes to employee compensation. Sterling Bank spent ₦22.6 billion ($14.6 million) on personnel expenses as of September 2024, accounting for 21.67% of its total expenses, which stood at ₦104.3 billion ($67.2 million). Some back-of-the-napkin math based on a 7% increase means the bank’s wage bill would be around ₦24.22 billion ($16.2 million). Telecoms Nigeria to expand its fibre optic network with $2 million US grant L-R: Nigerian Minister of Communications, Innovation, and Digital Economy Bosun Tijani with US Deputy Secretary Kurt Campbell. Image Source: Kurt Campbell (X) Nigeria is set to expand its digital infrastructure courtesy of a $2 million grant from the US Trade and Development Agency (USTDA). This funding will expand the country’s fibre optic network by 90,000 kilometres, a move in line with Nigeria’s National Broadband Plan for 2020–2025. Expanding the fibre optic network will provide better internet access to rural areas, help reduce the gap in digital access, and create more jobs. Nigeria’s current internet penetration rate, according to various reports, sits between 40–45%. This is much lower than other countries like Egypt (72%) and South Africa (74%) which have better internet coverage and thriving ecosystems. Sectors like fintech, ride-hailing, and e-commerce in Nigeria rely heavily on the internet. The more people have access to better internet, the greater the reach startups will have. As these startups grow, ecosystems expand. Talents have also been held back by slow internet. Many skilled workers
Read MoreCompetition in the clouds: AWS will now accept naira payments, shaking up local cloud players
Amazon Web Services (AWS), the global cloud leader powering many Nigerian startups and commercial banks, will now accept payments in Naira, alongside seven other local currencies for European customers. Since many Nigerian companies host their services in AWS’s European region due to geographical proximity, this move could significantly lower their cloud costs. This move comes at a crucial time when homegrown cloud providers have been gaining ground by offering local pricing as an alternative to AWS and Azure. In a statement on Monday, AWS explained that this shift will help customers avoid foreign exchange costs and payment friction. “With payments in their local currencies, customers can avoid foreign exchange costs associated with making foreign currency payments,” the company said. “This also removes payment friction for customers in countries where local regulations put limits on the foreign currency amount a customer can access.” This shift is significant for Nigerian businesses, as the naira’s devaluation and macroeconomic pressures have caused cloud costs—often priced in US dollars—to more than double since 2023. By allowing payments in naira, AWS is offering Nigerian companies a smoother and more affordable option for cloud services, addressing one of the key pain points that have driven Nigerian businesses toward local cloud providers. AWS’ move will shift the competitive landscape in Nigeria’s cloud services market. Homegrown cloud providers such as Nobus, Layer3, and Okra’s recently launched Nebula have spent much of 2024 positioning themselves as affordable, local alternatives to AWS and Microsoft’s Azure. Many of these local players emphasized their competitive edge at a time when FX liquidity and volatility meant USD-denominated pricing could push costs up 2-3x in a week. Some even held talks with government agencies at the state and federal level, positioning themselves as potential partners to reduce Nigeria’s reliance on USD-denominated services. The messaging was clear: patronizing local cloud providers is not just a cost-effective option but a way to support Nigeria’s economic resilience. AWS’s decision to accept naira payments comes in response to the growing appeal of local cloud providers in Nigeria. In January 2023, AWS launched its AWS Local Zones facility in Lagos to reduce latency and improve performance for Nigerian businesses—often an important factor since many Nigerian companies host their services in AWS’s European region due to geographical proximity. By offering a new payment option alongside this infrastructure, AWS can solidify its foothold in the Nigerian market, especially as local providers continue to present an attractive, economically aligned alternative. By lowering the barrier for Nigerian companies to pay for cloud services in their local currency, AWS has given itself an edge, but the growing local alternatives may still present a challenge. It’s not just about price anymore—it’s about local relevance and helping businesses navigate the complexities of Nigeria’s economic environment.
Read MoreTop 10 African tech and business podcasts you should check out in 2025
It’s 2025 and the podcasting world is booming, with over 4.19 million registered podcasts globally and more than 2.69 million on Apple alone. Podcasts have become the go-to platform for insightful conversations, expert advice, and fresh perspectives. The tech and business podcasting space is growing rapidly, offering a wealth of information at your fingertips. Whether you’re an aspiring entrepreneur, a tech enthusiast, or just someone hungry for knowledge, we’ve curated the top 10 podcasts you need to listen to in 2025. 1. Afrobility Looking to stay informed on the fast-evolving African tech and business landscape? Afrobility is your perfect companion. Hosted by Olumide Ogunsanwo and Bankole Makanju, this podcast discusses the opportunities and challenges shaping Africa’s digital ecosystem. With expert analysis on startups, investment trends, and market shifts, Afrobility is essential for entrepreneurs, investors, and anyone passionate about Africa’s growth. Episodes: 60 — 90 minutes Category: Business and Technology 2. Investec Focus Radio SA For sharp, bite-sized insights into the South African economy, market trends, and finance, Investec Focus Radio SA delivers. This podcast provides a nuanced take on local and global financial developments, backed by the expertise of Investec’s financial professionals. It’s a must-listen for anyone looking to stay ahead of the curve in finance. Episodes: 20 — 40 minutes Category: Finance and Business 3. African Tech Roundup If you’re looking for stories and strategies shaping Africa’s tech scene, African Tech Roundup should be on your radar. Hosted by Andile Masuku, it brings you engaging interviews with pioneers, innovators, and disruptors from across the continent. This podcast focuses on Africa’s digital transformation, making it a must-listen for tech enthusiasts and entrepreneurs. Episodes: 45 — 60 minutes Category: Technology and Business 4. African Business Stories For those interested in female leadership and innovation, African Business Stories is a standout podcast. It is hosted by Akaego Okoye and highlights inspiring conversations with African women entrepreneurs and leaders across various industries. If you’re curious about women’s powerful contributions to Africa’s business landscape, this podcast offers invaluable lessons and insights. Episodes: 30 — 50 minutes Category: Business and Entrepreneurship 5. The Open Africa Podcast If you’re fascinated by the intersection of tech, startups, and banking in Africa, The Open Africa Podcast is a perfect listen. Hosted by Laolu, Furo, and Nosa, this show mixes insightful commentary with humor, creating an engaging way to learn about Africa’s startup ecosystem. It’s fun, informative, and designed to keep you updated on the continent’s evolving landscape. Episodes: 40 — 60 minutes Category: Technology 6. Pure Digital Passion Pure Digital Passion is a podcast worth checking out for anyone in the tech and digital marketing space. Hosted by Moses Kemibaro, one of Kenya’s leading digital marketers, it covers digital innovation, marketing trends, and Africa’s ever-expanding tech ecosystem. It’s perfect for tech enthusiasts and marketing professionals. Episodes: 40 — 60 minutes Category: Technology 7. Founders Connect Founders Connect is an essential podcast for aspiring entrepreneurs. Hosted by Peace Itimi, it features interviews with successful founders who share their journeys—highlighting their triumphs, struggles, and the lessons learned along the way. Whether you’re just starting out or looking for guidance, Founders Connect offers invaluable insights to help you navigate the entrepreneurial world. Episodes: 30 — 60 minutes Category: Technology and Entrepreneurship 8. Labari Media Podcast Labari Media Podcast is perfect for tech enthusiasts focused on fintech, e-commerce, mobile payments, and AI in Ghana and across Africa. Through expert interviews with innovators and entrepreneurs, this podcast offers a comprehensive view of the African tech ecosystem. If you’re passionate about the future of fintech, Labari Media is your go-to. Episodes: 15 — 35 minutes Category: Technology and Business 9. Techpoint Africa Podcast Exploring Africa’s dynamic tech scene, Tech Point Africa Podcast brings you in-depth discussions on innovation, startups, and the major trends shaping the continent. Whether you’re a tech enthusiast, entrepreneur, or investor, this podcast is packed with insights that will keep you on the pulse of Africa’s rapidly evolving tech ecosystem. Episodes: 30 — 55 minutes Category: Technology 10. The Disrupt Africa Podcast If you’re interested in Africa’s startup ecosystem, Disrupt Africa Podcast is a must-listen. Featuring interviews with thought leaders, founders, and entrepreneurs, this show uncovers the stories of those making a significant impact in Africa’s tech industry. It’s a fantastic resource for anyone wanting to understand the challenges and triumphs of building a startup in Africa. Episodes: 20 — 40 minutes Category: Technology
Read MoreLemfi raises $53 million Series B round, acquires European firm
Lemfi, a remittance startup serving African immigrants across 22 countries, has raised $53 million in a Series B round to support its expansion into Europe through the acquisition of a European firm. The round was led by Highland Europe, a London-based growth-stage investment firm that backs startups with more than €10 million in annualized revenues, and with follow-on investment from existing investors Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator. This round means the startup has received $85 million in funding since it was founded in 2019 by Ridwan Olalere and Rian Cochran. Lemfi’s expansion into Europe came off the back of a partnership with Modulr, but its acquisition of an unnamed Republic of Ireland-based company will allow it to begin its European operations independently from next month. The startup makes money from transaction fees and foreign exchange spreads across the countries it is present in. The funding will allow Lemfi to acquire more licenses and partnerships as it expands its offerings to include localised services for customers. Lemfi is set to launch a card for customers in the US, the UK and Canada. It will also hire staff as it continues to grow rapidly. Lemfi is now processing $1 billion in monthly payment volume, a significant jump from 2023 when it processed $2 billion in annual transaction volume. The startup has also doubled users, revenue, and transactions over the past two years. Olalere credited the growth to strong adoption in the Asian corridor, which rakes in $160 million in monthly TPV and is growing 30% month-on-month since it launched last year. After expanding into the US in 2023, the startup entered large remittance markets like China, India, and Pakistan in 2024. It entered these markets by poaching C-suite executives from domestic companies like Terrapay, DeliveryHero, and OPay. LemFi Hires Ex OPay COO, Allen Qu to lead China Expansion. LemFi raises $33 million to bring free remittance payments for global migrants
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Sterling Bank raises staff salaries by 7%, but staff expectations fall short
Sterling Bank, a tier-2 Nigerian commercial bank with a market capitalization of ₦174.76 billion, has raised salaries for its over 3,000 employees to help them cope with rising living costs and inflation, sources familiar with the matter confirmed. The salary adjustment, said to be around 7%, was communicated in an internal memo in early January 2025. This move continues a trend among Nigerian banks to review compensation in response to economic pressures on consumer spending. In August 2024, Sterling Bank introduced a cost-of-living adjustment (COLA) stipend, paying ₦75,000 to employees from executive trainee to assistant banking officer levels. It remains unclear if this stipend will continue alongside the new salary structure. While the precise figures are not publicly disclosed, three people confirmed the adjustments are based on employees’ grade levels. Sterling operates a salary banding system with increases typically ranging from 7% to 10%, and recent adjustments have moved many employees to the top of their respective bands. For instance, executive trainees (ETs), previously earning ₦327,000 monthly, will now take home ₦351,000. Senior executives (junior roles above ETs) on a ₦500,000 salary will see their pay rise to ₦527,000. To manage pay increases without promoting employees to higher ranks, Sterling Bank uses a tiered salary structure that includes internal “notches” within each grade level, allowing for raises without formal promotions, according to sources familiar with the bank’s compensation policies. “Instead of moving employees up a grade during an economic downturn, companies may shift them to the higher band within their current grade,” said Chibuzo Ihentuge-Eric, an HR professional. “It’s a sideways adjustment that reflects market conditions.” Sterling Bank did not respond to a request for comments. Despite the salary increase, some employees were disappointed, expecting a larger raise in line with the 20-30% increases seen at other banks. “Considering inflation and the state of the economy, this feels underwhelming,” said one employee who requested anonymity. In late 2024, Union Bank raised salaries by 40%, and GTBank followed suit with a 40% increase. These recent raises are linked to talent retention, a concern in an industry marked by high employee turnover and frequent poaching. Research shows competitive salaries are crucial in reducing employee attrition in Nigeria’s banking industry. Sterling Bank’s profit after tax for the period ending September 2024 was ₦27.4 billion, a 67.07% increase year-on-year. The bank is projecting ₦121.8 billion in gross earnings for the first quarter of 2025. The bank’s personnel expenses reached ₦22.6 billion as of September 2024, a 38.65% increase from the previous year. If the new salary adjustments raise expenses by the typical 10%, the bank’s wage bill would be around ₦24.86 billion. Despite this, Sterling’s wage bill remains one of the lowest among its peers. For comparison, Union Bank reported ₦34 billion in personnel expenses, Fidelity Bank ₦43.6 billion, and FCMB ₦56.5 billion.
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👨🏿🚀TechCabal Daily – Riding the regulatory wave
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning 2024 was a tough year for early-stage African startups, with funding declining sharply and competition for capital intensifying. But 2025 could be different. We’ve spoken to our friends at top VC firms who predict an uptick in venture funding and new opportunities for startups that have sustainable growth practices and market-focused products. These VCs also say that cash management and business fundamentals will be crucial for early-stage startups to thrive in 2025. Here’s why. Nigerian drivers want the government to regulate the gig economy NGX helped the Nigerian government and corporates raise $7.85 billion in 2024 What’s in Kenya’s crypto bill? World Wide Web 3 Events Ride-hailing Nigerian drivers want the government to regulate the gig economy GIF Source: Nairametrics Nigerian gig drivers, under the Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWON), are pushing for a federal regulatory framework to bring fairness to the industry. While their demands are not immediately clear, we can suggest from antecedents that the union is trying to secure better pay for its members, reduce multiple taxations, and improve drivers’ working conditions. In 2023, the union asked ride-hailing apps to increase fares by 200% to provide relief for drivers. To date, it has been fighting in one form or another for continuous fare increases, and reduced commissions charged by ride-hailing apps. It’s not the first time the drivers are lobbying for federal involvement. Since the start of 2024, the union has asked the federal government at least three times to become more involved in the oversight of the sector. Compared to fintech, which is one of the heavily regulated industries, the ride-hailing sector has been poorly regulated. Labour laws were not created with the sector in mind. For example, in most government employment, you’re guaranteed the minimum wage pay. In some other countries like parts of the US, ride-hailing companies pay a minimum wage and offer other benefits. While gig drivers in Nigeria typically earn above the minimum wage—which was the attraction point in the first place—there have been debates about how sustainable the gig economy model will be. Location-based apps like Bolt benefit from network effects. The more drivers sign up and come online in a particular area, the fewer passengers to go around in an otherwise shrinking market where affording Bolt rides is a luxury. Yet, if the demands of AUATWON are met, it could tip the scales of the power dynamic between gig drivers and their employers, who, over the years, have tried to strong-arm these drivers to negotiate favourable working conditions to protect their profits. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Economy NGX helped the Nigerian government and corporates raise $7.85 billion in 2024 GIF Source: Tenor The Nigerian Stock Exchange (NGX) may be IPO-starved, but the bourse has remained relevant in helping businesses and governments raise money. According to NGX filings, the stock market recorded ₦12.17 trillion ($7.85 billion) in trading volume for corporate listings and FGN bonds in 2024. Corporate listings, including bonds and memorandum listings, led the charge with ₦6.2 trillion ($4 billion), surpassing the ₦5.95 trillion ($3.84 billion) generated from FGN bonds. Companies such as Transcorp Power, which listed ₦1.8 trillion ($1.16 billion) worth of shares, and VFD Group, which raised ₦12.5 billion ($8 million), were among the notable contributors. These corporate listings show that more companies are turning to the capital market to raise money. On the other hand, FGN bonds attracted investment, with Pension Fund Administrators (PFAs) favouring them for their stability, despite inflation impacting returns in other sectors. In 2024, the NGX saw three companies—Transcorp Power, Aradel, and Haldane McCall—listed by introduction. The last IPO on the NGX was VFD Group in 2023. Despite the absence of a true IPO, the NGX had a remarkable run in 2024. Compared to the previous year, the bourse reached ₦3.968 trillion ($2.55 billion) in trading volume, effectively tripling that number last year. However, the high trading volume is thanks to tier-1 and tier-2 banks turning to the capital market to raise money following the Central Bank’s recapitalisation directive. The Debt Management Office (DMO) also actively listed bonds on the bourse. While an IPO is generally seen as a sign that companies trust the market to raise capital and that investors are willing to buy shares, the large deal flows in the capital market also show growing investor confidence. Nigeria’s bourse, the fourth-largest in Africa, also acquired a 5% stake in the Ethiopia Stock Exchange (ESX) which launched on January 10. The high deal flow and pan-African support to other bourses show the maturity of the NGX. And with Tizeti set to become the first startup to go public on the exchange, the IPO starvation will soon phase out. Crypto/Regulation What’s in Kenya’s crypto bill Image Source: TechCabal/Timi Odueso After years of resistance, Kenya introduced a new bill aimed at regulating cryptocurrencies and virtual asset companies like crypto exchanges on January 10. Like every other crypto bill on the continent, Kenya’s bill advocates protecting the user through financial literacy. The rapid adoption of crypto in Africa is outpacing user education, leaving many susceptible to fraud and scams in the virtual asset market. To curb this, a section of Kenya’s bill emphasises public awareness campaigns to ensure that users can safely interact with virtual assets. The bill also mandates blockchain and crypto startups to test out their applications in a regulated sandbox before launching them to the public. This will help minimise risk to users and the financial systems. Although Kenya’s crypto bill provides strong provisions for consumer protection, it is only second to Nigeria’s crypto bill which requires VASPs to set up local offices. The bill’s provisions on taxation are similar to South Africa’s and Nigeria’s crypto bills. However,
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