👨🏿🚀TechCabal Daily – The road to recovery
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Who’s really paying the price in Nigeria’s cash crunch? Here’s a guess, it ends with “U”. PoS agents are already king when it comes to cash access in Nigeria, and new CBN policies are driving up withdrawal fees—especially in Lagos. With bank ATMs sidelined and withdrawal charges uncapped, Nigerians are paying more to get their money. In many places across Lagos, you could pay up to 3% of the amount withdrawn in fees. Check out how these fees vary across locations in Lagos. GoKada filed for bankruptcy Should gig drivers consider alternative fuel sources? Ethiopia to launch its stock exchange Is 2025 the year we see Banque du Caire’s IPO? World Wide Web 3 Opportunities Startups GoKada filed for bankruptcy Image Source: GoKada In October 2024, Nigerian logistics startup GoKada filed for Chapter 11 bankruptcy protection. The company, which raised $5.3 million in a 2019 Series A funding round, owes $1.8 million to its 20 largest creditors. This filing allows GoKada to restructure its debts while continuing operations, avoiding immediate liquidation. According to an email from CEO Olutosin Oni to investors, GoKada struggled to stay alive throughout 2024. While the company remains operational, it marks a drastic shift in fortunes for Nigeria’s bike-hailing pioneer. Founded in 2018 by Deji Oduntan and Fahim Saleh, GoKada built one of the most recognisable brands in a space with competitors like ORide and Maxng. The tide turned for the sector in 2020 when Lagos banned commercial motorcycles, nuking the opportunity for enterprising businesses. GoKada transitioned to logistics, switched to an asset-light model by partnering with third-party providers, and laid off staff to reduce costs. Leadership also changed frequently, with Oni becoming CEO in 2022 after a series of transitions that included the tragic loss of co-founder Fahim Saleh in 2020. Despite attempts to adapt, GoKada’s financial struggles persisted. A potential acquisition by logistics firm Kwik in 2022 didn’t materialise, and the filings showed revenues of $268,779 in 2023 and $118,988 in 2024 (up to October 2024). While the Chapter 11 filing offers a lifeline, GoKada’s road to recovery will require grit. Ride-hailing Should gig drivers consider alternative forms of fuel? GIF Source: Tenor Nobody likes a petrol price hike. It raises transport costs, and for some, affects the cost of generating power supply. But spare a thought for gig drivers, who deal with petrol economics daily. In South Africa, petrol prices surged twice in December 2024 and January 2025, driven by high global oil prices and a weak rand. Gig drivers in South Africa now pay R21.59 ($1.14) per litre, with prices expected to rise again in February. In response, MyBroadBand published an article exploring the cost-saving potential of switching to liquefied petroleum gas (autogas) vehicles. They found that a gig driver travelling 20,000 km per year could save R978.59 ($52) on fuel costs. However, the upfront cost of converting a petrol car to LPG is still a major barrier. The situation in Nigeria is not much different. After petrol prices spiked from ₦145 to over ₦1,000 ($0.67) within eighteen months, gig drivers started looking into compressed natural gas (CNG) as an alternative fuel. We’ve previously written about the growing support for CNG in Nigeria and the cost of converting a petrol car to CNG. It will cost between ₦750,000 ($486) and ₦2.5 million ($1,620) to retrofit CNG engines in your vehicle. Compared to petrol, CNG costs ₦230 ($0.15) per litre. A gig driver with a Toyota Corolla travelling 20,000 km a year would spend ₦343,000 ($223) on CNG refuelling, while the same distance with petrol would cost ₦1.5 million ($968). With the cheaper price of CNG, drivers can save even more as they travel longer distances. However, what are the risks of these retrofitted cars? There’s no conclusive answer to this question. Without wider adoption, we cannot know how safe these retrofitted engines are. Economy Ethiopia to launch its stock exchange Image Source: Kenyan Wallstreet On January 10, 2025, Ethiopia will open the Ethiopian Stock Exchange (ESX), its domestic bourse. The ESX will become Africa’s 30th stock exchange, and CEO Tilahun Kassahun has expressed optimism to list 50 companies on the bourse in five years—either through an IPO or “by introduction.” Ethio Telecom, the largest telco in the country, will be the first company to list on the exchange, selling 100 million shares for $2.54 each. Through the initial public outing (IPO), the government, which majorly owns the telco, is expected to raise 30 billion birr ($234 million). It is part of the government’s plan to open up previously state-controlled industries and provide a capital injection into Ethiopia’s underfunded market. Talks for a stock exchange started in 2021 after a capital markets bill was presented to lawmakers to establish a bourse through a public-private partnership. While the bourse will provide a regulated space for domestic equity funding, it is launching into a market that has already been introduced to investing. Global wealth-tech platforms like Avatrade allow Ethiopians to buy foreign stocks—so this ticks off the “lack of education” problem. However, Ethiopia is grappling with inflationary pressures and an increasingly strained fiscal environment. Corporations may be open to raising capital through public offerings, but the macroeconomic squeeze could also limit retail investor participation, reducing the pool of available funding. The success of the exchange will hang on a delicate balance between attracting corporates and engaging retail investors. We’ve seen from successes like the Nigerian Stock Exchange (NGX), which recently played a crucial role in helping banks raise money in a high inflationary environment, that the economic situation in the country does not paint the full picture. The ESX will likely rely on making its platform easy to use and accessible to retail investors. But first, its biggest task: getting companies involved. Banking Is 2025 the year we see Banque du Caire’s IPO? Image Source: Banque du Caire As Ethiopia prepares to launch its stock exchange, Egypt is set to list the
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₦3,000 for ₦100,000: Here is how much Nigerians pay to withdraw cash from POS agents
Despite the flurry of policy changes from Nigeria’s Central Bank in late 2024, the financial industry consensus is clear: commercial banks have lost the cash arms race. Once-dominant banking channels like ATMs and over-the-counter withdrawals have been eclipsed by banking agents, a.k.a POS agents as the most reliable way to access cash across the country. In December, the CBN imposed withdrawal limits on POS agents and threatened penalties for banks found selling mint notes to currency dealers. However, these measures have had limited impact in curbing the reliance on POS agents. Instead, many POS agents responded by raising withdrawal fees—charges which, notably, remain uncapped by the CBN. This fee hike trend has been particularly noticeable in parts of Lagos, where withdrawing cash has become more expensive for customers. In interviews with over 20 POS agents and customers, a clear picture emerged: withdrawal fees vary widely depending on the location. While some agents have increased their charges, others continue to offer the same rates as before. The chart below illustrates these variations: *Click on the dropdown in the image to see withdrawal charges for different amounts.
Read MoreLogistics startup Gokada filed for Chapter 11 bankruptcy protection in 2024
According to regulatory filings in Delaware, Gokada, one of Nigeria’s most prominent last-mile delivery companies, filed for Chapter 11 bankruptcy protection in October 18, 2024. Chapter 11 allows an organisation to work out a plan to repay creditors over time, reducing the amount owed or extending the repayment period. This way, the company does not have to liquidate its assets to pay debts. Gokada’s chapter 11 filing follows unsuccessful efforts to raise new funding, including a 2023 campaign on GetEquity, where it attempted to raise $750,000 at a $10 million valuation from retail investors. Despite raising $5.3 million in a 2019 Series A round, Gokada has struggled financially. Per its October filing, the company’s total liabilities are $5.2 million—it owes $1.8 million to 20 of its largest creditors who are not insiders— on assets worth $560,000 ($64,000 in cash.) In 2024, Gokada stated that its gross revenues at the time of the filing were $118,988, lower than the $268,779 it reported in 2023. “As a result of not closing the proposed funding, Gokada has remained on the brink of shutting down for the entirety of 2024,” Olutosin Oni, the CEO of the eight-year-old company, wrote to investors in an email seen by TechCabal. Oni, named CEO in 2022, noted that naira depreciation made profitability elusive. “Significant time and effort has been put into making Gokada profitable over the years unfortunately with the severe decline in the value of the Nigerian Naira, we have not yet reached that goal,” Oni told investors in the email seen by TechCabal. Gokada and Oni declined to comment on any part of this story. 7 bold predictions for e-commerce and logistics in 2025 as inflation, AI, and global shifts reshape the industry Despite the grim outlook, Gokada is not giving up. The company will use Chapter 11 provisions to restructure its debts and attempt a financial turnaround. While the company has been in significant debt for years, its lead investor, Rise Capital, has been supportive. According to Oni, Rise Capital has been “willing to fund the company independently in order to pay off Gokada’s creditors and keep it operational. Unfortunately, they are no longer able to single-handedly shoulder the economic burden.” October’s bankruptcy filing marks the latest chapter in a journey of restructuring and pivoting. Founded by Fahim Saleh and Deji Oduntan, Gokada gained traction as a bike-hailing service, helping commuters navigate the notorious Lagos traffic jams. By 2019, the company had completed about 1 million trips and raised $5.3 million in Series A raise funding. The company’s financial troubles appear to have begun shortly after announcing its Series A raise. Deji Oduntan resigned as CEO and was replaced by Saleh and Ayodeji Adewunmi, who also left the company in 2019. Tosin Oni became CEO in 2022. Beyond the leadership upheavals, the Lagos state government added to Gokada’s troubles in early 2020 after it banned bike-hailing startups from operating in 15 of the city’s 20 local government areas. It was a major blow to Gokada and several bike-hailing startups. Exclusive: Gokada pivots to an “asset-light model” as it looks to raise funding In the face of these setbacks, Gokada adapted. It laid off 70% of its staff and pivoted to logistics (Gsend) and food delivery (GShop). According to Oni, the layoffs were a response to a harsh macroeconomic environment, with the company prioritising efficiency as it navigated negative cash flow. By June 2020, Gokada was reportedly processing over $100 million in annualised transaction value and fulfilled over 1 million food and e-commerce delivery orders for 30,000 merchants on its platform. It also expanded its ride-hailing services to Abuja, Port Harcourt, Ibadan, and Ogun State, where commercial bikes were not banned. The business model continued to evolve. It went from owning a fleet of motorcycles to an asset-light model, connecting third-party logistics providers with delivery orders on its platform. The shift was intended to cut costs, reducing the financial burden of maintaining a fleet of expensive bikes. By February 2024, Gokada had fully embraced this asset-light approach, owning only 10% of the 5,000 bikes on its platform. Yet, reports of an acquisition by logistics firm Kwik, which never materialised, suggested the business still struggled. GoKada’s bankruptcy filing highlights a crucial lesson in the business world that cutting costs alone cannot guarantee survival. GoKada faces the daunting task of raising funding or finding an acquisition partner to survive.
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👨🏿🚀TechCabal Daily – Kenya’s bold move
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning What’s on your tech wishlist for 2025? In our latest feature, we asked Nigerians from diverse fields to share their dream tech items for 2025—if budget was no object. Curious to see what made the list? Dive into the full article here. P.S. Tell us what tech gadgets are on your wishlist by using the #TCDaily hashtag on X or responding to this email. We’ll publish the most interesting responses in TC Daily at the end of the week! Kenya’s Bold Move: Satellite ISP Fees Set to Skyrocket GT Bank inches closer to recapitalisation goals CBN reports a decline in ATM transactions World Wide Web 3 Opportunities Internet Kenya’s Bold Move: Satellite ISP Fees Set to Skyrocket Image Source: Starlink Kenya’s Communications Authority is shaking up the satellite internet landscape with a bold proposal to raise licensing fees for providers like Starlink—potentially increasing the cost of a 15-year license by 10x. The move, aimed at tightening regulations and ensuring technology neutrality, will raise concerns within the industry. While the CA claims the rules could boost oversight and open up opportunities for more infrastructure, smaller satellite ISPs will find the increased costs challenging. Starlink, the newest but biggest player in the space, is expanding rapidly in the country and will likely be able to pass that cost on to customers. However, its competitors, four of which have a combined 1,000 customers, may not have as much wiggle room. Yet, some companies will be pleased with the new proposals, like local telecoms companies. These new fees will mean threats to their dominance of internet services will need deep pockets. In August 2024, Safaricom wrote to the Communications Authority asking that satellite service providers should only operate in Kenya subject to partnering with an existing local licensee. It might not have gotten its wish, but these proposals definitely protect local players. Read Adonijah’s report on the proposed changes here. Banking GT Bank inches closer to recapitalisation goals Image Source: GT Bank On Tuesday, Guaranty Trust Bank (GTBank) took a notable step towards meeting Nigeria’s Central Bank (CBN) recapitalisation mandate. Its parent company, Guaranty Trust Holding Company Plc (GTCo Plc), raised ₦209 billion ($136 million) through a retail equity offer—a campaign aptly dubbed A Slice of Orange. The campaign, which generated significant buzz on social media, underscores the liquidity available in the Nigerian Exchange (NGX) to support such ambitious fundraising goals. Yet, despite the strong showing, the outcome fell short of GTCo’s ₦369 billion ($569 million) target, leaving a ₦162 billion ($105 million) gap. To bridge this, the bank plans a second fundraising phase, this time targeting foreign institutional investors. While the retail equity campaign showcased GTCo’s ability to engage the public and mobilise significant funds, falling short of the full target may signal challenges ahead. For one of Nigeria’s largest and most reputable banks, it raises the question: Why didn’t the marketing blitz achieve the desired result? Perhaps economic uncertainty or market conditions played a role, but the shortfall is notable given the scale of GTCo’s efforts and the strength of its brand. For the second phase, beyond meeting CBN’s mandate, GTCo has ambitious plans for the proceeds. Most of the funds will bolster GTBank’s capital base, but the bank also aims to expand operations, enhance product offerings, and drive innovation across its Banking and Non-Banking subsidiaries. As GTCo moves into the next phase, its ability to attract institutional investors and close the funding gap will be a critical test of its market confidence and strategy. Banking CBN reports decline in ATM transactions Image Source: Google ATMs in Nigeria are in sharp decline, with transactions falling by nearly 20% to ₦12.21 trillion ($8 billion) in H1 2024, according to the Central Bank of Nigeria (CBN). This isn’t just a Nigerian issue, it’s global. Last year, one insights firm reported that the total number of ATMs worldwide had been declining since 2021. Globally, banks and other financial institutions are scaling back on ATM investments, citing high operational costs, maintenance challenges, and evolving customer behaviours. In Nigeria, PoS agents have stepped in to fill the gap, creating a network of cash withdrawal points that are far more accessible and reliable. This shift became even more pronounced during the 2023 cash crunch, when bank-imposed limits on ATM withdrawals pushed customers to PoS operators. Fintechs like Paga and OPay fueled the trend, deploying thousands of PoS devices and making them an integral part of Nigeria’s cash economy. The CBN’s recent directives—forcing banks to load ATMs with cash and capping PoS agent daily limits at ₦1.2 million ($779)—may signal an attempt to rebalance the scales. But will it work? PoS agents, already critical to Nigeria’s financial ecosystem, are likely to pass on increased costs to customers, maintaining their stronghold. The broader question remains: Is the decline of ATMs a technological failure or a calculated shift by banks unwilling to maintain these costly infrastructures? With the ease and ubiquity of PoS machines, will Nigerians queue up at ATMs again, or is the cash economy permanently shifting to this new normal? Inspire to Excel The Inspire to Excel event is happening this Sunday! Mark your calendars for January 12th, 2025, at 2:00 PM, Oriental Hotel, Victoria Island, Lagos. Get ready for impactful pitches, actionable insights, and meaningful connections. Don’t miss this life-changing event! CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $96,207 – 5.24% – 3.25% Ether $3,348 – 8.89% – 15.04% Solana $196 – 9.10% – 15.28% XRP $2.31 – 4.22% – 7.08% * Data as of 06:10 AM WAT, January 8, 2025. Opportunities The SusHi Tech Challenge 2025 is now open for applications from startups that are tackling the global challenge of “realizing Sustainable cities with High Technology (SusHi). With a grand prize of JPY10 million ($65,000), SusHi is offering business support for collaborations with government agencies and other organisations as well as pitching opportunities. Apply by January 15.
Read MoreKenya proposes tenfold fee hike for satellite ISPs like Starlink
Kenya’s Communications Authority has proposed a substantial increase in licencing fees for satellite internet service providers (ISPs) like Starlink. The proposed regulations would raise the cost of a 15-year license from $12,302 to $115,331— a tenfold increase —and introduce an annual levy of 0.4% of gross turnover. The changes come as Starlink has rapidly expanded its presence in Kenya, driven by a growing demand for high-speed internet services. The move marks a tightening of regulatory oversight, potentially raising the cost of entry, particularly for smaller companies. While local ISPs may support the move as it raises the bar for satellite competitors, the increased costs could hinder the growth of smaller internet firms and slow the expansion of high-speed internet access in underserved and remote areas. Companies like like Viasat, Indigo Telecom, and NTvsat, which cumulatively serve less than 1,000 subscribers, may find it difficult to absorb the new fees. “This change aims to ensure technology neutrality and allow investors to land signals using any technology,” the CA stated. In addition to the license fee increase, the CA’s proposal also seeks to expand the scope of satellite ISPs. Under the new guidelines, satellite providers would be allowed to operate terrestrial cables, telemetry systems, tracking facilities, and even engage in space research. This could open the door for Starlink to establish ground stations in Kenya — a move that has been delayed previously due to regulatory challenges. “Licensees should be allowed to establish satellite systems, including hub facilities, and provide satellite services, provided they comply with the geographical scope principle (at least three counties in Kenya),” CA said. Starlink: A rising star Since launching in June 2023, Starlink has grown by over 1,000%, registering over 8,500 users as of December 31, 2024. Starlink’s Kenyan expansion has faced opposition from other ISPs. On July 15, Safaricom asked the CA to block satellite ISPs with operations in other countries. Safaricom has over 350,000 fixed internet users via its extensive fibre cable network in the country. The telco alleged security risks to the country if companies like Starlink are allowed to operate without a physical presence or partnerships with local firms. It said licensing satellite ISPs “would mean negligible control for the government to ensure accountability for any non-compliance issues.” However, Starlink’s low-cost, high-speed internet has sparked a fierce battle for customers. Safaricom, for instance, has doubled the speed of its fibre internet packages in response to Starlink’s growing presence. While in Nigeria Starlink has doubled prices, in Kenya it has resorted to promotions and cheaper packages to woe subscribers. In September 26, for instance, it introduced a cheaper kit and a $30.87 monthly residential plan after Safaricom increased its fibre internet speeds.
Read MoreKenya’s economy posts slowest Q3 growth since 2020, expanding by 4%
Kenya’s economy grew by 4% in Q3 2024, marking its slowest expansion in four years. This slowdown was recorded despite a stronger shilling and easing inflation. The 4% growth rate is a sharp decline from the 6% recorded in Q3 2023, according to the Kenya National Bureau of Statistics (KNBS). KNBS highlighted that most sectors contracted during the review period, underscoring the tough macroeconomic environment. The construction and mining sectors, in particular, saw the steepest declines, reflecting reduced investor confidence in large-scale projects. This comes despite President William Ruto’s emphasis on construction, especially his affordable housing program, designed to tackle unemployment and the country’s housing deficit. Key sectors see contraction The construction sector was hit hard as banks tightened credit in response to rising interest rates and increased economic risks, making funding for new projects scarce. Loans to construction companies dropped by 13.6%, totaling $998.6 million (KES 129.2 billion) in Q3. The government also scaled back new road projects, further curtailing demand for key construction materials like cement, steel, and bitumen. In mining, the expected boost from lifting the 2023 moratorium has been undercut by delays in licensing. As a result, mining activities contracted by 6% in Q3, according to KNBS. Despite these sectoral declines, there were some positive macroeconomic indicators. The Kenyan shilling appreciated against major currencies, and inflation fell to 4.08%, its lowest level since the pandemic, largely due to a decline in food prices. “On average, the Kenyan shilling gained ground against the US Dollar (10.1%), Euro (9.3%), and Pound Sterling (7.7%),” KNBS reported. While the overall growth was subdued, some sectors showed robust performance. The hospitality sector surged by 13.7%, logistics grew by 5.2%, real estate rose by 5.5%, and retail expanded by 4.8%. Financial services, insurance, and agriculture also posted positive growth, at 4.8% and 4.2%, respectively. World Bank lowers growth forecast The World Bank has downgraded Kenya’s 2024 growth forecast from 5% to 4.7%, citing fiscal challenges stemming from the country’s debt burden, widespread anti-government protests, and destructive floods in certain regions. Despite this, Kenya’s Ministry of Finance is optimistic, projecting a 5.2% growth in 2025, driven by agriculture, logistics, and retail. Kenya’s economic slowdown contrasts with stronger growth in neighboring Uganda, which posted a 6.7% expansion in Q3 2024, primarily driven by agriculture. Tanzania’s economy also outpaced Kenya’s, growing by 6.3% thanks to a booming tourism sector and increased investment in infrastructure projects like the ongoing railway development. Impact on jobs and consumer spending The slowdown will likely have significant implications for jobs and consumer spending. The construction sector alone employs over 230,000 workers, mostly from low-income neighborhoods. Slower growth in agriculture and hospitality is expected to exacerbate unemployment and reduce consumer spending, particularly in rural areas where agriculture employs more than 40% of the workforce.
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Nigerians’ 2025 gadgets wishlist: consumer tech products everyone wants right now
As the new year begins, Nigerians are setting their sights on new personal goals, career milestones, and—of course—upgrading their tech. Despite the economic instability and fluctuating purchasing power, many are dreaming of tech gadgets that would elevate their work and personal lives. We asked Nigerians from various sectors to share which tech gadgets top their wishlist for 2025—if money were no object. Here’s a glimpse into what’s driving their aspirations: Jesimiel Williams, 23 – Creative Director “Currently, my MacBook sounds like a helicopter when I run heavy design software, so it’s definitely time for an upgrade,” says Jesimiel, who’s eyeing the 2024 MacBook Pro. With more demanding design projects ahead, he’s also looking to add a new iPad for sketching, a high-quality microphone for faster video ad edits, and a sleek HP monitor to boost his multitasking game. “I need to juggle tasks effortlessly across multiple screens,” he adds. Peace*, 29 – Content and Product Reviewer For Peace, a DSLR camera is at the top of her list to enhance her video production quality, paired with a Lavier Mic for crystal-clear audio. “It’ll save me a lot of editing time,” she says. But perhaps the most pressing item on her wishlist is an ergonomic chair. “I sit at my desk all day, and when I stand up, it feels like I’m carrying bricks on my legs,” she admits. Amarachi Ndukwe, 25 – Content Marketer Amarachi is all about upgrading her content creation tools. “I’ve been wanting a good phone for a while now. This year, I’m being more intentional about building my personal brand,” she shares. She’s torn between a Samsung or an iPhone but also has her eye on a high-quality microphone for better voiceovers and a phone gimbal to capture smooth, professional videos. “This will take my content to the next level.” Deborah Omotara, 24 — Tech Freelancer For Deborah, an Apple MacBook Pro (M3 Pro/Max) is a non-negotiable upgrade to tackle her video editing, graphic design, and coding projects. “The MacBook Pro would handle heavy-duty tasks and improve my workflow significantly,” she explains. She’s also keen on the DJI Osmo Pocket Camera for on-the-go content creation, a Zhiyun Molus X60 RGB light for high-quality livestreams, and a Flexispot Standing Desk for better posture during long work sessions. Ayo*, 29 — Marketer Ayo is torn between the Pixel 9 and Samsung S24 Ultra, each offering stellar camera and display features. “The Pixel has a cleaner Android experience, but the S24 Ultra has exceptional display quality,” he says. Also on his wishlist: the Microsoft Surface Pro 9, which he plans to use for data analysis, and premium noise-cancelling headphones like the Sony WH-1000XM5 or Bose 700s for top-tier audio quality. Steven Thompson, 26 —- Full Stack Developer Steven’s wishlist centers around efficiency. “A 2TB external hard disk would make a world of difference for storing my Flutter package applications,” he says. To streamline his workflow, he’s also eyeing a dual monitor stand and, most importantly, Starlink for faster, more reliable internet speeds—critical for downloading large SDKs and uploading code. Success Adekunle, 23 —- Growth Marketer For Success, technology isn’t just about gadgets—it’s about enhancing productivity. “I’d love a personal AI assistant, like a customised Alexa, that can learn my habits and help me manage my day-to-day life,” she shares. She’s also eyeing a smart mug to track her hydration and an ergonomic wireless keyboard to reduce strain from long typing sessions. “Plus, I love the squishy keys and vibrant colors of those keyboards,” she adds. Solomon 25 — Freelance Designer Solomon is all about power and performance. “The Lenovo IdeaPad Gaming 3 checks all the boxes for me—it’s got 32GB of DDR5 RAM, 512GB SSD, and a GTX 40 series graphics card,” he explains. A Dell G2724D Gaming Monitor is also on his wishlist, offering impressive resolution to enhance his design work. To complete the package, he’s hoping for an adjustable desk and an ergonomic high-back chair to ensure comfort during long hours of design work. Dayo* 24 —- UX Designer Dayo’s tech cravings are simple yet functional. “I’m upgrading to the Google Pixel for more storage and to experience the features everyone’s talking about,” he says. He’s also eyeing an Instacam for capturing unique shots of places he can send as postcards to friends. Jane* 31 — Copywriter For Jane, it’s all about portability and convenience. “My current AirPods have given up, and I miss being able to listen to music or watch videos without disturbing anyone,” she shares. A smaller, smarter laptop to carry around with ease is also high on her list. Adejumobi 25 — Creative Writer At the top of Adejumobi’s wishlist is the iPhone 13 in purple with 256GB of storage. “I love the slant camera design, and purple is my favorite color,” she says. The MacBook Pro 2023 is also catching her eye, particularly for its portability, power, and sleek design. “It’s beautiful and so powerful—it’s hard not to fall for it.” What This Says About 2025 Despite the tough economic landscape, Nigerians, especially young professionals, are eager to integrate cutting-edge technology into their lives. Whether they’re coding, creating content, or simply improving their workspaces, these tech gadgets reflect their desire for efficiency, creativity, and growth. While many of these dream tech items may remain out of reach for now, they’re a testament to the forward-thinking and ambition that will shape Nigeria’s tech landscape in 2025.
Read More7 bold predictions for e-commerce and logistics in 2025 as inflation, AI, and global shifts reshape the industry
2024 was a challenging year for Nigeria’s e-commerce and logistics sectors. Fuel prices quadrupled, inflation soared, and businesses and customers alike struggled to keep pace with skyrocketing costs. “Everyone was in survival mode,” said Ope Onaboye, CEO of Renda, the only Nigerian logistics startup that raised VC funding—$1.9 million—in 2024. We asked eight founders and investors to look into the crystal ball and predict what 2025 holds for the industry. Despite the past year’s challenges, many are optimistic about the future. Industry experts believe that the Dangote and Port Harcourt refineries will lower energy costs, easing operational costs across the supply chain. Others point to global supply chain policies and innovations around food waste management as factors that could reduce food prices—one of the key drivers of Nigeria’s headline inflation. There is also hope that more e-commerce and logistics companies will achieve financial stability by increasing exports to earn dollar revenues. More mergers and acquisitions are expected after MaxAB and Wasoko decided to join forces in 2024 to create a category king. What’s a conversation about 2025 without artificial intelligence? At least three founders say AI will significantly change processes in many online marketplaces. Here are the predictions—and the prophets: Prediction 1: The year of social commerce Luther Lawoyin, CEO of Pricepally: The gap between online and offline retail will shrink even further. Digital-first retailers will open physical stores, and brick-and-mortar businesses will invest in e-commerce. This hybrid approach will dominate as consumers seek convenient and trustworthy shopping experiences, blending the best of both worlds. Platforms like WhatsApp and Instagram will play a bigger role, especially for small businesses. They offer affordable, direct ways to engage customers, making them essential for scaling and reaching new markets. Prediction 2: The year of pivots, mergers and acquisitions Samuel Okwuada, CEO of Remedial Health: Unfortunately, the supply chain sector in Nigeria will continue to face the same challenges as in recent years. Global disruptions, local currency fluctuations and inflation. I foresee further consolidation in the sector as opposed to the cross-border expansion that hasn’t worked at scale for many. Ope Onaboye, CEO of Renda: Many companies will struggle as they haven’t raised sufficient capital. This will likely lead to mergers of smaller startups. Logistics companies that operate software-only models will pivot to become infrastructure-focused, technology-enabled solutions. This is because the country is not yet ready for pure-software models. Smart companies will start looking for other revenue streams as there is little promise of investor interest in the sector. Prediction 3: The year of increased export and reorganisation of global supply chains Iyin Aboyeji, founder of Future Africa and Accelerate Africa: I’m bullish on exports. We’ll see significant growth in food exports, including produce like yam, to meet the growing demand for African foods abroad. Kachi Izukanne, CEO of TradeDepot: Shifts in leadership across the US and Europe are creating opportunities and challenges for Africa. The reorganisation of global supply chains could open new pathways for African businesses, but only if policymakers and companies act quickly to address infrastructure gaps and improve trade efficiency. Without action, Africa risks being sidelined in a competitive global environment. The rising global demand for ethnic foods and Made-in-Africa products offers a clear opportunity for African exporters. Brands that meet international quality and consistency standards, paired with compelling storytelling, are well-positioned to capture these growing markets. For local and global players, 2025 will be about balancing adaptability with a strategic focus to navigate these intersecting challenges and opportunities. Adeola Ayoola, CEO of Famasi: The political changes this year, especially related to trade and exports, will likely cause more uncertainty. New regulatory requirements and changing border policies could prompt businesses to focus on optimising supply chains and securing exports. Prediction 4: The year of dollar revenue Iyin Aboyeji, founder of Future Africa and Accelerate Africa: Retail markets will diverge into two: a dollar-based market for those who earn in dollars and a naira-based market for those who earn in naira. Infrastructure solutions will be needed to accommodate both. Prediction 5: Lower costs, higher predictability Luther Lawoyin, CEO of Pricepally: With increased production at the Dangote Refinery, the operational NNPCL refinery, and other upcoming refineries, energy costs will likely stabilise or even drop. This will reduce logistics expenses, improve predictability, and boost operational efficiency. Better infrastructure and an increased focus on local production will reduce import dependency, shortening supply chains and cutting costs. Prediction 6: The year of AI Eghosa Omogui, founder of EchoVC: We’re witnessing a major shift with AI. In e-commerce, expect widespread deployment of AI agents for customer service and semi-autonomous transactions. These innovations will reduce consumer anxiety around spending, with AI tools offering budget forecasts and value assessments. Adeola Ayoola, CEO of Famasi: More pharmacies will leverage AI and customer consumption data to conduct predictive analyses and optimize inventory stocking decisions. AI agents are poised to play a crucial role in primary care, reducing the reliance on human labour for managing common health issues like the common cold or minor home accidents. Akinropo Taiwo, HeyFood: Globally, we will witness significant AI adoption across the retail industry, automating and streamlining numerous processes. This will cover customer-facing aspects like ordering channels and communications and back-end operations like inventory management. Prediction 7: The year of lower food prices Uka Eje, CEO of ThriveAgric: The agricultural sector will attract more investment in 2025, easing food inflation. Additionally, if rural insecurity is solved, we can expect more farmers to return to their farms and engage in large-scale farming. This will increase agricultural productivity and reduce food prices nationwide, making food more accessible for all. Eghosa Omogui, founding partner of EchoVC Food waste, reaching $4-9 billion annually, is often framed as a waste problem, it’s also a key driver of food prices. Reducing food waste by half could lower food costs by 10-20%. We’re conducting private experiments to tackle food waste and expect to see major innovations in this area in 2025.
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👨🏿🚀TechCabal Daily – The future of Kenyan banking
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Welcome back, and happy new year! We’re back to our usual schedule, bringing TC Daily to your inbox by 7 AM WAT. Before diving into today’s news, we have a quick favour to ask. At the end of this newsletter, you’ll find a button to let us know if you enjoyed this edition. It’ll be there every day. We’d love to hear your thoughts as often as you can spare them! Should the future of Kenyan banking rely on Pesalink? Kenya Airways is back on the NSE Will Nigeria publish December’s inflation figures? World Wide Web 3 Jobs Banking Should the future of Kenyan banking rely on Pesalink? Image Source: CBK Kenya has earned global recognition as a trailblazer in mobile money and digital payments, thanks to innovations like M-Pesa, one of the world’s most successful mobile money platforms. Since its launch in 2007, M-Pesa has transformed how Kenyans send and receive money, enabling everything from paying school fees in rural areas to settling restaurant bills in Nairobi with just a phone number. Over the years, banks and other financial institutions have built on this foundation, creating solutions like digital loan products and payment apps that make transactions easier for millions of Kenyans. However, mobile money platforms like M-Pesa and Airtel Money often operate in silos, separate from banks and other financial institutions. For instance, a small business owner in Kisumu who uses M-Pesa might still need to visit their bank to reconcile card payments or transfer funds to their account. Managing payments from multiple systems—card payments, mobile wallets, or bank transfers—is inefficient, especially for businesses with tight margins. The Central Bank of Kenya (CBK) wants to fix this. On October 18, the CBK announced plans for the Fast Payment System (FPS) to enable instant transfers between all financial institutions, from banks to licensed payment service providers. With FPS, the SME owner in Kisumu can transfer money from their Airtel Money account to a bank account or use their digital wallet to pay for services without worrying about compatibility issues. Kenyan commercial banks have welcomed the move but believe there’s a quicker path forward. They’re advocating for an upgrade to Pesalink, a platform they already own through their fintech subsidiary, Integrated Payment Services Limited (IPSL). Pesalink, for example, currently allows people to send money from one bank to another within seconds, even during weekends or public holidays. The banks argued that leveraging Pesalink would be the fastest and most cost-effective way to achieve the CBK’s vision for a unified payment system. Pesalink currently enables person-to-person (P2P) transfers across its 39 member banks, but it struggles to integrate with mobile money platforms and fintechs. For example, a boda-boda operator in Mombasa who uses M-Pesa might not be able to receive payments from a customer whose bank only supports Pesalink, limiting the operator’s options. The CBK’s decision will likely shape the future of Kenya’s financial ecosystem. Whether the regulator builds on Pesalink’s existing framework or starts afresh to bring all players under one roof, the outcome could define the next innovation chapter in Kenya’s payments industry. For businesses and individuals alike, the stakes are high: seamless integration could unlock new opportunities, while continued fragmentation risks holding back progress in a country known for leading Africa’s digital transformation. Capital Markets Kenya Airways resumes trading shares on Kenya’s capital market Image Source: Kenya Airways In more news from Kenya, the pieces are gradually falling back in place for the once-castaway local airline, Kenya Airways. The company has made a return to the Nairobi Securities Exchange (NSE) five years after it was suspended from the capital market due to the government’s plan to buy back privately-held shares and renationalise the airline. The NSE cited the airline’s improved financial performance and the withdrawal of the renationalisation bill—aimed at revitalising the struggling airline—as key reasons for reinstating the shares. From 2013 to 2022, Kenya Airways was neck-deep in the red, reporting $1.7 billion in losses. The airline—partly owned by the Kenyan government with 48.9% shares—has relied on the National Treasury to repay its loans and operational costs. However, according to CEO Allan Kilavuka, it didn’t receive funding from the government in 2023, likely owing to the latter’s inability to fund public projects—a problem that continued in 2024 with another airline, JKIA. Kenya Airways has since had to turn to equity investors to get funding to “restructure” its business. For an airline struggling with operating losses, that meant financial discipline. It has aggressively pursued cuts on excessive spending and making debt-to-equity swaps. Kilavuka has told investors that the company will break even by the end of 2023 and become profitable the following year. In 2024, Kenya Airways reported its first half-year profit in a decade, earning $3.9 million—a 102% increase year-on-year—as it cut operating losses by more than half. Since its resurgence, the airline has also seen an increase in registered flights. In 2023, it recorded 5 million passengers, and it carried that momentum into 2024 when it flew 8,000 people in and out of Kenya daily. Next for Kenya Airways, if Kilavuka’s predictions are to be believed, will be to achieve its first full-year profit for the financial year ending 2024/2025 when it announces the results later this year. The result will cement its comeback status as the airline’s wings begin to spread again. Economy Will Nigeria publish December’s inflation figures? Image Source: Zikoko Memes Nigeria’s National Bureau of Statistics (NBS) is in the spotlight, but not for its usual economic reports. Three weeks after a cyberattack forced its website offline, the country’s most reliable source of data remains out of reach. As businesses and policymakers prepare for 2025, the uncertainty around access to critical economic information is raising eyebrows—and concerns. The timing couldn’t be worse. Next week, the NBS is expected to release the December 2024 inflation figures, a key dataset that informs everything from corporate strategy to household budgets. Yet, it’s unclear
Read MoreKenyan banks push for Pesalink upgrade as CBK eyes new real-time payment system
Kenyan commercial banks are opposing the Central Bank of Kenya’s (CBK) plans to develop a new real-time payments system from scratch, advocating for an upgrade to Pesalink instead. They argue that improving the current system would save time, cut costs, and minimise disruptions. In a letter seen by TechCabal, the Kenya Bankers Association (KBA) urged CBK to build on Pesalink, the payment platform owned by the association through its fintech subsidiary, Integrated Payment Services Limited (IPSL). The October 25, 2024 letter argues that leveraging Pesalink would be the fastest, cost-effective route to achieve the regulator’s goal of creating a seamless Fast Payment System (FPS). “This would see IPSL transition to a national switch, with substantive changes in ownership, governance, technology, and business model to include CBK, banks, Safaricom, Kenswitch, and other licensed payment participants that the CBK would like incorporated,” said John Gachora, KBA chairman and CEO of NCBA Bank. On October 18, CBK unveiled its plan to develop the FPS, a system designed to enable instant transactions across all financial institutions, including banks and licensed payment service providers. While CBK has not announced a launch date, commercial banks are pushing for a swift rollout, arguing that speed and cost-efficiency are critical to success. “In setting up a successful FPS, due consideration will need to be given to: the speed of execution to create the FPS and connect all players in the market, the costs to create it, and for the various players to configure their systems and operations to enable seamless transactions,” Gachora said. A fragmented payments landscape Kenya’s payments ecosystem is currently fragmented, with mobile money platforms like M-Pesa and Airtel Money operating in silos from other financial institutions. While mobile money allows instant transfers between Kenyan banks and digital wallets, it remains limited to institutions that have agreements with providers. For example, some banks and microfinance institutions do not allow transfers to Airtel Money wallets, creating barriers for customers. Meanwhile, Pesalink offers P2P transfers among KBA’s 39 members, but it has significant limitations in integrating with fintechs and mobile money providers. Pesalink users, for instance, cannot make payments to mobile money wallets, which restricts its use as a comprehensive solution for digital payments. This fragmentation has made it challenging for businesses to consolidate payments into a single account, as they must manage multiple systems for card payments, mobile wallets, and bank transfers. A unified payment system like FPS would allow merchants to accept all forms of digital payments into a single account, similar to how card payments work across platforms. Mobile money dominates but remains isolated Despite the challenges, mobile money continues to dominate Kenya’s payments market. In 2024, mobile money processed over $300 billion, outpacing traditional methods like cheques ($15.4 billion) and the Real-Time Gross Payment System ($21.6 billion). By creating a unified national platform for instant transactions, CBK’s FPS could be a game-changer, offering real-time, cross-platform payments that connect every part of the financial ecosystem, from banks to mobile wallets to fintechs.
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