Kenyan digital lender Whitepath fined $2,000 for unlawful data use in second privacy violation
Kenya’s Office of the Data Protection Commissioner (ODPC) has fined digital lender Whitepath KES 250,000 ($2,000) for violating data privacy laws. Court records show that the regulator found that Whitepath, which operates Instarcash and Zuricash loan apps, listed an individual as a guarantor without their consent and subjected them to debt collection calls after the borrower defaulted. The fine—the company’s second in two years—adds to growing regulatory pressure on Kenyan digital lenders, who are scrutinized for aggressive debt collection tactics and mishandling customer data. According to court documents seen by TechCabal, Dennis Caleb Owuor received an unexpected debt collection call from a Whitepath representative in November 2024. The caller claimed Owuor was listed as a guarantor for a defaulting borrower, despite Owuor having no prior agreement to such an arrangement. When he questioned the claim, the caller failed to provide any justification but continued to demand repayment. Despite Owuor’s instructions to stop, the calls persisted, prompting him to escalate the matter to the ODPC, alleging illegal privacy breaches and harassment. Whitepath failed to respond to the regulator’s inquiries, but Kenya’s Data Protection Act allows enforcement regardless. The ODPC ruled that Whitepath had no legal basis to process the complainant’s data, as listing someone as a guarantor requires explicit consent— which was never obtained. The company also violated data protection laws by failing to notify them that their data was being used. In addition to the fine, the regulator directed Whitepath to erase the complainant’s data and provide proof of compliance. This is not Whitepath’s first data privacy violation. In April 2023, the ODPC fined the lender KES 5 million ($39,000) after nearly 150 complaints alleging unauthorised access to borrowers’ contact lists and sending unsolicited messages. The penalty came after Whitepath ignored an earlier enforcement notice. Whitepath did not immediately respond to a request for comment. The case highlights ongoing regulatory action against digital lenders using unethical data practices, including extracting contact details from borrowers’ phones, sharing debtor information publicly, and employing aggressive collection tactics. While enforcement is increasing, concerns remain over whether current penalties are sufficient. A KES 250,000 ($2000) penalty may not significantly deter a firm that disregarded a KES 5 million fine in 2023. Stronger regulatory measures, including larger fines and criminal liability for repeat offenders, may be required to ensure compliance and protect consumer rights.
Read MoreAfter P2P trading, hybrid finance apps are taking off in Nigeria’s crypto space
As cryptocurrency adoption grows in Nigeria, founders are building hybrid finance apps to simplify access to crypto. These hybrid apps reduce the education barrier and overwhelming user experience flows common in crypto trading apps, allowing users to interact with cryptocurrency as easily as they do with fiat money on their traditional mobile banking apps. Hybrid finance apps integrate traditional finance (TradFi) and decentralised finance (DeFi) features that allow users to buy, sell, or convert crypto to Naira without the need for an escrow or peer-to-peer (P2P) trading. Since mid-2023, startups like Taja, Palremit, Prestmit, Azasend, and Pandar have sprung up to create these hybrid solutions to enable more Nigerians to take part in the crypto sector. At least 20 such startups currently operate this hybrid finance model in Nigeria. “I’ve only used Bybit when I had small amounts of Dogecoin and Bitcoin in my wallets,” said David Ayankoso, a non-frequent crypto user based in Lagos. “I find the process of exchanging crypto on Bybit to be complicated. The app is overloaded and not as simple as some other platforms. So instead, I buy Solana or Bitcoin elsewhere [on hybrid finance apps] and transfer it to my Phantom wallet to buy or trade random altcoins.” Nigeria is one of the hotspots for crypto adoption globally, yet that high transaction value is only spread among a few knowledgeable people in the Web3 space. Sending and receiving crypto doesn’t quite work like fiat currencies in traditional banks. With one wrong click, funds are prone to losses, and bank accounts to freezes, making many Nigerians averse to digital assets. The pitches of these hybrid finance startups often go like this: if you’re not familiar with the crypto P2P trading setup, use a hybrid finance app to avoid overwhelming yourself with the process of dealing with an escrow—or worse, getting scammed. Users simply open an account, gain access to a virtual account (a service hybrid finance apps provide through partnerships with payment processors), fund the account, and buy crypto directly from the app. “Founders who build these apps see an opportunity to take advantage of a ‘grassroot movement’,” said Ayo Adewuyi, head of product at Prestmit, who claims the startup has over 700,000 users, thanks to additional features like gift card trading which attracts users from several countries. “For example, one of the reasons Patricia [one of the earliest to use this model] was an important crypto hybrid app was because people saw it as a Nigerian brand that wanted to localise crypto. Founders saw this and tapped into it.” The clampdown on P2P trading and the strict regulatory oversight on big crypto exchanges paved a way for hybrid apps to thrive, said Adewuyi. He claimed Prestmit’s users grew significantly after large crypto exchanges deprioritised the Nigerian market. While hybrid finance apps are not new, there is a growing focus on integrating crypto payment options into traditional finance systems. Beyond buying crypto for investment holdings, these apps let users manage digital assets like local currencies. They can pay bills, buy airtime and data, trade gift cards, send crypto directly to others through app tags, and pay for online services with crypto. Hybrid finance apps are also important to freelancers who earn in crypto, allowing them to convert to their local currency without relying on the P2P space. Unlike building a crypto trading app, for example, operating a hybrid finance model is a much simpler setup. These startups provide three key things: the platform (proprietary technology like an app or a web-app), virtual accounts for user account management, and crypto liquidity. Imagine walking into a mom-and-pop shop in your neighbourhood. With cash in hand—your local currency—you ask the storekeeper to sell you a crypto asset, say Bitcoin. The storekeeper collects your money, and two things could happen: either they process your order as the counterparty because they have the means, or they use a back-door service to obtain the required amount of crypto to sell to you. Either way, the hybrid app remains the counterparty to every trade. Most of these apps rely on crypto infrastructure providers to enable users to buy and sell crypto, while some outsource liquidity to over-the-counter (OTC) traders and institutions that provide bulk crypto liquidity. “Liquidity is not manufactured out of thin air; liquidity providers, in some cases, are the P2P guys just that in this case, they go through a much more rigorous KYC process because startups want to be sure that the funds they are receiving are not illegal,” said Adewuyi. The result of this outsourced liquidity often means that users have to play by the rules of the providers. Most liquidity providers cap the minimum amount of crypto users can buy or sell, which can be a bad experience for people buying or exchanging small amounts. For example, Luno, which can be considered a hybrid startup, allows users to offload their Bitcoin liquidity from 0.000025 BTC ($2.03), which means users cannot sell or off-ramp their coins below this amount. Some apps set the minimum crypto sell-off amount higher. Since hybrid finance apps primarily make money from transaction fees, the costs are higher compared to trading platforms. Users get charged a percentage of their deposits on some of these platforms, and when they try to exchange, they do so at a higher, marked-up rate than the official exchange rate. In P2P trading apps, where liquidity is provided by traders who are directly responsible for their revenue, competition drives down prices. “A lot of people are not interested in the complex part of crypto, and hybrid apps come in here. They provide the liquidity that users need at a specific rate, and if you’re fine with it, you go through with the transaction,” said Adewuyi. Yet, hybrid finance apps pitch their tent on the value they provide—insurance from the risk factor found in trading apps—while extracting a few dollars in charges from customers. In the grand scheme of things, many of them do not operate as crypto exchanges, eliminating
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👨🏿🚀TechCabal Daily – Access Bank hot on NBK deal
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! Motunrayo Sanyaolu, UNILAG’s star engineering student and inaugural winner of the school’s Engineering Spirit award, loves to tinker with ideas, creating life-changing inventions like affordable heating blankets for hospitals. Her passion for building and helping others is inspiring students and her peers to make a difference in their own lives. In this week’s edition of My Life in Tech, we spoke to Sanyaolu about her tech journey and how she made a name for herself as a passionate inventor. Read My Life in Tech. Access Bank hot on NBK acquisition Kenya proposes new banking licence fee structure South African startups step up amid rising power costs Nigeria’s telecom operators to increase core network investments World Wide Web 3 Events Banking Access Bank now awaits Kenya regulator to approve NBK’s acquisition Image Source: Zikoko Memes Nigeria’s Access Bank is in the final stages of wrapping up its acquisition of National Bank of Kenya (NBK) from KCB Group, Kenya’s largest bank, five months after the deal was expected to close. The move is a big step in Access Bank’s push to expand across Africa and could give it a stronger presence in Kenya, East Africa’s largest economy. KCB Group CEO Paul Russo confirmed on Wednesday that the deal is still on track, noting that NBK’s performance has already been included in KCB’s 2024 full-year results. Russo said they’re in the advanced stages of getting regulatory approvals. In October 2024, Kenya’s Competition Authority (CAK) gave the green light for the deal, with the condition that Access Bank keeps at least 80% of NBK’s 1,384 employees for a year after the acquisition. Access Bank was also required to retain all 316 employees of its Kenyan subsidiary. This approval moved the deal closer to completion. According to Lawrence Kimathi, KCB Group’s CFO, the timeline for the deal was extended to February this year because they were waiting on regulatory approvals. Kimathi added that the Central Bank of Nigeria (CBN) has already given its nod, and now they’re just waiting for the final approval from the Central Bank of Kenya (CBK). The pending sale has already impacted KCB’s 2024 financial results. The bank reported a KES 2.0 trillion ($15.4 billion) balance sheet, the largest in the region. However, total assets dropped by 10%, partly due to the Kenyan shilling’s appreciation against other regional currencies. Although the exact value of the deal hasn’t been disclosed, KCB previously agreed to sell NBK at 1.25 times its book value. Based on NBK’s 2023 book value of $79.77 million, the deal could be worth around $100 million. Are you a freelancer or a remote worker? Fincra wants to understand the challenges and opportunities related to cross-border work payments for freelancers and remote workers in Nigeria. Please take just a few minutes to complete this survey. Banking Kenya proposes new banking licence fee structure Central Bank of Kenya/Image Source: Google The Central Bank of Kenya (CBK) announced on Wednesday that it will replace branch-based banking licence fees with a Gross Annual Revenue (GAR) system. Under the new model, banks will pay a percentage of their yearly income at progressive rates—starting at 0.6% in 2025 and rising to 1% by 2027—to maintain their licences. This marks the first change to the CBK’s licensing fee structure in 33 years. The CBK is also removing other fees such as application and renewal fees which previously existed in its old system, and consolidating these charges into the GAR-based fee. The regulator is hoping to create a fairer system where larger, more profitable banks contribute more, while smaller banks pay less. The CBK expects the new model to generate KES 4.5 billion ($34.7 million) in the first year, increasing to KES 7.5 billion ($57.9 million) by 2027. The GAR model ties banks’ license fees to their income, meaning they’ll pay more as they earn more. This is expected to reduce their profits by 1.8% to 3.1% over the next three years. Since banks rely heavily on lending to make money, they’ll likely try to optimise this area to maximise profits. However, with Kenya’s high rate of bad loans, banks may face challenges in lowering lending rates as the CBK wants. To protect their profits, banks might resist fully complying with the regulator’s push for lower rates, creating tension as banks try to increase earnings against making credit more affordable. While the CBK’s move is well-intended for Kenya’s banking sector, the expectations weighing on banks may be too high—it becomes a question of how much they can take. One theory is that banks would likely pass on the costs to customers. Paystack is inviting you to an exclusive reveal Paystack has been working on something new and exciting, and on March 24, they’ll finally reveal it. Want to be among the first to know? Sign up here to learn more Startups South African startups step up amid rising power costs Image Source: Pixabay South African startups are rising to the occasion. Electricity prices in South Africa are set to rise by 26% over the next three years, starting with a 12.7% increase this April, along with upcoming value added tax (VAT) increase, and revisions to municipal electricity prices. While the country’s energy supplier, Eskom, says its price adjustments aim to cover production costs and encourage renewable energy adoption, these increases are pushing energy costs higher for households and businesses. In response, the country’s growing energy startup ecosystem is rising up to the occasion to provide innovative solutions such as smart energy management tools, off-grid systems to renewable energy services. These startups are both helping South Africans reduce electricity bills and also pave the way for a more sustainable and affordable energy future. Companies like Sensor Networks, founded in 2007, offer smart home energy management tools like geyser sensors to reduce energy costs by up to 40%. Partnering with Ariston, Sensor Networks aims to scale its impact amid growing demand for energy-efficient appliances. Similarly, Versofy
Read MoreAccess Bank in “advanced stages” to finalise National Bank of Kenya acquisition
Access Bank, Nigeria’s biggest bank by assets, is in advanced stages of completing its acquisition of the KCB Group-owned National Bank of Kenya (NBK), five months after the deal was expected to close. If completed, the acquisition will mark a significant milestone in Access Bank’s pan-African expansion, giving it a stronger foothold in Kenya—East Africa’s largest economy and a major financial hub. KCB Group CEO Paul Russo confirmed on Wednesday that the acquisition is still on track, saying KCB has included NBK’s performance in its 2024 full-year results. “We are at advanced stages of regulatory approval from both sides. I am very confident that we are at the tail,” Russo said during the bank’s FY 2024 results announcement. In October 2024, Kenya’s Competition Authority (CAK) approved the transaction on condition that Access Bank retains at least 80% of NBK’s 1,384-man workforce for one year after the acquisition. Access Bank was also directed to retain all 316 employees of Access Bank Kenya, its local subsidiary. CAK’s approval brought the deal one step closer to completion. “We extended the long stop date to February of this year because we hadn’t gotten all the regulatory approvals,” said KCB Group’s CFO Lawrence Kimathi. “Within that period, we got approval from the CBN, so the only approval that’s remaining is from the Central Bank of Kenya. Access themselves have written to our regulator to say that they are keen to close this transaction.” KCB’s 2024 financial results reflected the impact of the pending sale. The lender reported a KES 2.0 trillion ($15.4 billion) balance sheet, the largest in the region. However, total assets declined by 10%, largely due to the appreciation of the Kenya shilling against regional currencies. Deposits and loans also dropped, further impacted by the reclassification of NBK balances to other assets and liabilities. Loans grew by 10.5%, while deposits shrunk by 0.1%, excluding NBK’s impact. The deal’s value remains undisclosed, but KCB previously agreed to sell NBK at 1.25 times its book value, suggesting a price of around $100 million based on NBK’s $79.77 million book value in 2023. Access Bank, which operates 23 branches in 12 counties, will significantly expand its reach by acquiring NBK’s 77 branches in 28 counties. Despite this growth, the merged entity will hold a modest 1.9% market share, which CAK says won’t impact competition, given the dominance of banks like Equity, Co-operative, and Standard Chartered. Currently ranked 37th out of 39 licensed banks in Kenya, Access Bank is a tier 3 lender. Acquiring NBK, a tier 2 bank, will strengthen its position and growth prospects in the market. This is a developing story…
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The many inventions of Motunrayo Sanyaolu, UNILAG’s first Engineering Spirit
In August 2024, as the feverish exam season drew to a close, marking the end of the academic year, the engineering faculty at the University of Lagos, Nigeria, upheld its tradition of celebrating with an awards dinner. But that year, something was different. A new award was being introduced: the Engineering Spirit Award. Its first-ever recipient, Motunrayo Sanyaolu, a third-year electrical engineering student, was no surprise to the faculty. Even among her seniors—including some jaded by the rigidity of their studies—the 21-year-old had already made a name for herself on campus as a passionate inventor. In her first year, Sanyaolu was already working with lecturers on tech projects and mentoring fellow students, according to Emmanuel Awolowo, one of her friends. By her second year, she had published a book—downloaded by about 150 students—encouraging them to take their first steps toward innovation. That same year, she applied for a Nigerian patent for a heating blanket, a low-cost, off-grid solution for clinics too underfunded for incubators. She had initially started the project with a group of four before continuing it alone. The blankets could reduce the 62% rate of hypothermia affecting newborns shuffled between hospitals. Designed to cost below ₦50,000 ($32), they have the potential to eliminate desperate hacks like hot water bottles in cots, which can leave nurses and babies burned. “If anyone else had won, it would have been shocking,” said Orobosa Isokpunwu, echoing several students of the faculty. Isokpunwu is collaborating with Sanyaolu to refine the blanket for an upcoming competition that could provide an opportunity for clinical trials in Nigeria. I waited in a design studio, nestled in the Faculty of Social Sciences at the University of Lagos, to see Sanyaolu and the blanket in action. I first met Sanyaolu in February at Google DevFest, where she was ushering speakers at the event. She had casually mentioned that she was working on an off-grid incubator alternative—humble and unassuming as if it were no big deal in a country with an epileptic power supply. I wondered if she downplayed it because hardware doesn’t get the spotlight that software does in a coding crowd, or if that was just how she carried herself. Heading into our meeting, I was surprised to learn that she was a celebrity of sorts in the Faculty of Engineering at one of Nigeria’s most respected universities. Friends and coworkers—she balances a job at the design studio with her studies—were also fans. They all said the same thing: she had an infectious passion for experimentation and building technology. At the design studio, Sanyaolu, wearing the same bright smile and cornrows that needed to be redone, sat at a table with two versions of her heating blanket between us. They looked like furry toy coats, one wrapped around a big baby doll. The first version of the battery-powered neonate heating blanket. The second version of the battery-powered neonate heating blanket. “We’re working on a third iteration,” she said, touching one of them. “Better heating system and a better look. We’re applying for a competition that will provide an opportunity for clinical trials and more funding to make it more marketable to hospitals.” Until then, she’s also juggling an amusing project: a laser gun for real-life Call of Duty. “It would be coupled with a web app, but the shots can be fired in real life,” she explained. “Still working on the programming and mechanism. It’ll be big, like paintball guns.” She was designing that for a game with a group of students she was supporting at the hub. From Python to prototyping I asked her what influenced her inclination to build, and the farthest she could trace it was to the first time she watched Big Hero 6, a movie about a young robotics prodigy named Hiro Hamada, who teams up with a robot and four other nerds to save their hometown from an evil supervillain trying to take over with Hiro’s invention. “In the movie, Hiro had a lab filled with futuristic inventions. I remember turning to my dad and telling him, ‘I want to be like this—rich enough to have a lab where I tinker all day,’” she recalled. Sanyaolu lost her dad, who was a nurse, a few years later to COVID-19, but that dream remained alive. After years of taking apart fans and other devices—some never went back together—she chose electrical engineering at UNILAG, just across the border from Ogun State, where she grew up. Her first year was all focus—eight hours of study a day, she said. Then the 2022 strike hit, lasting eight months and throwing her off. “It felt endless,” she said. “Studying with no end, no clue when we would resume.” She kept at it for a while, keeping lectures fresh, but as the wait dragged on, she turned elsewhere: programming. A friend had introduced her to Python in secondary school. During the strike, she finished a Harvard intro course online and then found Computer Science Academy Africa (CSA), a Python boot camp. “It was pivotal,” she said. It opened up new coding concepts and introduced her to the Internet of Things (IoT), where software meets hardware. “In secondary school, I had been torn between the two,” she said. “IoT showed me they could blend.” She wrapped the program with a home automation project, leaving as a beginner programmer and hardware developer. Now clear-eyed about the kind of technology she wanted to build, she took on an internship at an innovation hub in Unilag. Students there were recruited to work on healthcare-related projects. The choice to work in healthcare was, in part, influenced by her father’s background. However, she clarified that her interest wasn’t in medicine itself. “I’m more interested in exoskeletons, wheelchairs, and external assistive devices,” she said. “I don’t like working with internal organs; they seem too fragile.” It also didn’t help that her father, who had been a nurse, often returned home with gory tales of surgical procedures. Sanyaolu shook her head gently as if to
Read MoreHow high inflation, low income stall growth for Nigerian edtech startups
When Nigerian edtech startup Edukoya started operations in May 2021, its founder Honey Ogundeyi aimed to revolutionise online learning for K-12 students in Africa. That same year, the company secured a $3.5 million funding to expand its business and enhance its technology. But funding was not enough to sustain the business. In February, 2025, the startup shut down core operations citing low disposable income and other macroeconomic conditions. Another edtech startup, Zummit Africa, which specialises in AI, data science, and machine learning services, is currently facing operational challenges and struggling to stay afloat. Jonathan Enudeme, the company’s CEO and founder, told TechCabal that when he launched his business in 2021, he offered free AI services, garnering an 80-90% intake rate. However, when Zummit Africa shifted to a subscription model in 2022, the rate plummeted to 30%. “Raising capital is challenging, and the target market struggles to afford basic necessities, let alone additional educational expenses,” Enudeme said. Felix Onah, a former banker residing in Lagos, lost his job last year. He desired to transition into the data science field but was unable to keep up with his coursework due to financial constraints and his single source of income. “I couldn’t keep up because I have responsibilities.” The situation reflects the realities edtech startups face in Africa’s most populous nation. Soaring inflation, fueled by the removal of the petrol subsidy and naira devaluation, has compelled many families to prioritise basic necessities like food and shelter over additional educational resources. This has made the subscription model, a commonly used revenue generating tool in the edtech space, difficult to implement. Additionally, a recent 50% telco tariff hike has led to higher data costs for consumers, making the model even less effective. Experts say there is a need to adopt more flexible, scalable, and sustainable revenue models that align with the specific realities of Nigerians. Edukoya focussed on K-12 learning and exam preparation, offering both free and premium subscription packages. The startup’s revenue model was based on subscriptions, but they struggled to convert free users to paying subscribers due to low disposable income. This was because the primary users were K-12 students, whose parents or guardians were responsible for payment. “Startups need to be creative, to explore every avenue,” said Victor Tubotamuno, CEO of Earlybrite, an online educational platform. “ It’s about finding what works, being flexible and serving our communities in the best way possible.” Tubotamuno said by being flexible, edtech startups should offer ‘learn now and pay later’ options by providing students with access to educational content and resources upfront, while allowing them to defer payment until a later date. “People are struggling, and we need to be compassionate,” he said. According to Oluwatobi Akapo, sales director at Edswot, a web-based learning platform, Nigeria’s tough economic climate makes it essential to quickly diversify, as relying on a single model is insufficient. Akapo said his company maintains profitability through a combination of subscription models and B2B partnerships. What models could work for edtech startups? Apart from subscription packages, Gradely incorporates the freemium model, where users are encouraged to upgrade from a free to a paid version. Although gaining popularity, it’s not as widely adopted in Nigeria as subscription-based models. Startups can also boost revenue by licencing educational content, software, or platforms to other businesses or organisations. AltSchool licences its learning management system and curriculum. Tuteria, another Nigerian online platform which connects students to qualified tutors for both online and in-person lessons, charges a commission on every lesson booked through its platform. The commission rate can vary depending on factors like the tutor’s experience and level on the platform. Business-to-Government (B2G) can reach a large number of students and educators in public education. In 2024, the Enugu State government partnered with Edves, a digital infrastructure for K-12 schools to construct 260 smart and green schools across the state and revamp the state’s curriculum and assessments using AI. The end goal of this is to bridge the digital divide in the state. “It breaks my heart that so few are focusing on B2G edtech solutions,” Tubotamuno of Earlybrite said. “Think of the impact we could have by training public sector officials, by improving the quality of education at its core. It is a massive, underserved market, and it’s where we can make a real difference.” Edtech startups often struggle to partner with governments due to limited funding, slow bureaucracy, infrastructure issues, digital literacy, policy barriers and outdated regulations and data privacy. Akapo of Edswot suggests that in addition to addressing these challenges, the most crucial shift lies in the perspective of governments and public institutions as they don’t recognise the potential of edtech startups as a viable solution. “They are not enlightened on the edtech industry and how they operate. Startups need to sensitise them on how edtech works and the benefits they would bring,’ he said. Business-to-Business (B2B) is another area where edtech startups can explore as there are less collaborations in the industry. Nigenius partners with FlexSAF to provide quality teaching resources, while Gradely works with schools to integrate its platform and tools. In a 2023 LinkedIn post, Pratishek Das, former regional head at Cambridge, said partnerships and alliances can take many forms, from strategic partnerships with other Edtech companies to collaborations with educational institutions and government agencies. “The key is to find partners who share your vision and can bring complementary skills and expertise to the table,” he noted The golden age of explosive edtech growth, fueled by abundant funding, is giving way to a harsh reality. Edtech firms can no longer afford to treat external funding as a lifeline. To survive the current economic turbulence and navigate the challenges of suppressed demand, they must embrace strategic financial diversification and build robust, self-sustaining business models.
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👨🏿🚀TechCabal Daily – Mobius revs back to life
In partnership with Lire en Français اقرأ هذا باللغة العربية It’s mid-week! Our SOTIA 2024 in Review is live! Despite a tougher funding environment, African startups expanded aggressively in 2024. 38 startups entered new markets—more than double the 16 expansions recorded in 2023. This signals a shift in strategy as founders seek growth beyond capital raises. How will this trend shape 2025? Find out in our full report. In other news, Flutterwave, the fintech giant, has acquired a licence in Ghana to provide inward remittance services in the country. Mobius Motors gets a second chance under new ownership Do Southern African countries have a bone to pick with Elon Musk’s Starlink? Making a pot of Nigerian staple beef stew is becoming a luxury South Africa gives deadline for crypto startups to comply with travel rule World Wide Web 3 Opportunities Mobility Mobius Motors gets a second chance under new ownership Image Source: Make a GIF Mobius Motors, once Kenya’s bet on homegrown SUVs, is back in business after Silver Box, a Middle East-based investment firm acquired 100% of the struggling automaker in an undisclosed deal. The automaker told TechCabal on Tuesday that the transaction cost information is not yet available. Following the acquisition, Mobius has re-opened its Nairobi service centre. Production of the Mobius III is set to restart by July 2025, with a new model expected by December. The acquisition follows a turbulent period for Mobius. Despite raising KES 5 billion ($38.5 million) from investors like Playfair Capital, Chandaria Industries, the U.S. International Development Finance Corporation, and PanAfrican Investment, the company failed to compete with Kenya’s dominant second-hand car market. Its business model that relied on pre-orders with refundable deposits didn’t generate enough demand. By August 2024, it was deep in debt, unable to pay suppliers and staff, and entered voluntary liquidation. Silver Box’s transaction comes after the Competition Authority of Kenya (CAK) approved the deal. CAK said the transaction fell below the KES 1 billion ($7.7 million) threshold that would have raised competition concerns and noted that salvaging the company would help secure jobs. With new ownership comes a leadership change. John Kavila is now the Chief Operating Officer. CEO Nicholas Guibert, who led the company during its final years will leave the company post acquisition. Mobius has built three SUV models: Mobius I, II, and III since launching in 2009 but never gained a strong foothold. The company’s Nairobi plant, which includes fabrication, assembly, and testing facilities, remains one of its biggest assets. The new owners could use it to continue Mobius’ original vision or pivot to assembling different models. Are you a freelancer or a remote worker? Fincra wants to understand the challenges and opportunities related to cross-border work payments for freelancers and remote workers in Nigeria. Please take just a few minutes to complete this survey. Internet Do Southern African countries have a bone to pick with Elon Musk’s Starlink? Image Source: Google Lesotho has threatened to cut ties with Elon Musk’s Starlink for failing to make any provision for black or local ownership for its planned entry into the Southern African country. It is asking for 30% ownership of Starlink for its Basotho people. While Starlink has applied for a licence to operate in Lesotho, this new challenge could throw a spanner in the works in the review process, yet this is not an isolated case. South Africa has also stalled its long-standing talks with Starlink due to the same issue: the lack of black ownership. Despite initial progress and a brief camaraderie between Musk and South Africa’s Cyril Ramaphosa, negotiations have collapsed, with Musk taking to his social media platform, X, to criticise the country. Only 2 of 5 Southern African countries—Eswatini and Botswana—have welcomed Starlink. While a 40% success rate looks encouraging, this region has given the ISP headaches over ownership issues. It raises questions about whether Southern African countries have a bone to pick with Starlink. We cannot tell if the issue lies with the man or his technology, but we know one thing: beyond encouraging local participation, the black ownership caveat aims to prevent foreign entities from profiting without leaving an impact on local economies. Foreign companies have historically complied with these rules through partnerships and community investments in the host country. Walmart entered South Africa by acquiring Massmart in 2011, committing to Black Economic Empowerment (BEE) through supplier development and job creation. Similarly, Amazon launched data centres in Cape Town in line with local regulations and partnering with South African companies. French streaming giant Canal+ plans to acquire MultiChoice by establishing a local middleman company to handle licencing and ownership transfers. Lesotho, too, embraces this ideology. In 1996, Vodacom, a South Africa-based telecom operator, expanded into the country by granting the Basotho people minority ownership (20%) in its local subsidiary. However, Starlink seems to rely on its “better technology” pitch—a proposition that Southern African countries aren’t buying. With South Africa’s internet penetration at 74.7% and Lesotho’s at 47%, the issue isn’t broadband access but a demand for inclusivity. Until Starlink finds a workaround, entering these markets will remain a guessing game, even for Musk. Paystack is inviting you to an exclusive reveal Paystack has been working on something new and exciting, and on March 24, they’ll finally reveal it. Want to be among the first to know? Sign up here to learn more Features Making a pot of Nigerian staple beef stew is becoming a luxury Image Source: Google Beef stew has crossed many mountains and endured many storms over the years to remain a staple diet feature in most Nigerian homes, alongside its frequent companion, boiled rice. Colloquially, the beloved dish is called “white rice and stew.” However, beef stew may soon start disappearing from many homes—right under the sniffing noses we use to savour its aroma—no thanks to the cost-of-living crisis in the country. A PricePally report stated that it now costs more than double to prepare a pot of beef stew compared to a year
Read MoreA pot of stew now costs 121.05% more: Breaking down PricePally’s Stew Index Report
The cost of making Nigeria’s staple stew has more than doubled in Lagos within a year, highlighting the deepening cost-of-living crisis in Africa’s most populous nation. According to the PricePally 2024 Stew Index Report, preparing a pot of beef stew now costs ₦17,817—soaring by 121.05% from ₦8,060 in 2023—as households grapple with surging food prices and inflation. Between 2023 and 2024, the cost of stew ingredients surged dramatically. A pot of chicken stew now costs ₦15,034, more than double the ₦7,085 price from the previous year, while the cost of goat meat stew skyrocketed by 153.03%, rising from ₦8,227 to ₦20,811. Even a protein-free stew saw a steep increase, climbing from ₦4,387 in 2023 to ₦11,317 in 2024. The sharp rise in stew preparation costs reflects a broader trend of escalating food prices in Nigeria due to supply chain disruptions and naira depreciation. Food inflation stood at 24.08% in January 2025, down from 39.84% recorded in December 2024, after the National Bureau of Statistics (NBS) implemented a rebased Consumer Price Index (CPI) that altered the weighting of key components in the inflation basket. The challenge hits low-income earners the hardest. With the new minimum wage at ₦70,000 per month, a minimum wage earner would now spend 25.45% of their salary to cook just one pot of beef stew per month—a significant burden compared to 24.42% under the old minimum wage of ₦33,000. Tomatoes, which cost ₦1,506 per kilogram in July 2023, climbed to ₦2,625 by September 2024, representing a 21.7% year-on-year increase. Onions saw a dramatic jump from ₦971.86 per kilogram in 2023 to ₦3,000 in September 2024, a staggering 200% increase in just nine months. “For tomatoes, one definite factor is their seasonality,” said Basil Abia, co-founder of Veriv Africa. “When they’re out of season, it’s super expensive to get them. Tomatoes also suffer from very high post-harvest losses due to our poor infrastructure—from transportation to storage. On average, tomatoes can have a 40% to 50% loss ratio, and in some parts of Nigeria, that loss can be as high as 80%.” Beef, which costs ₦4,050 per kilogram in January 2024, surged to ₦6,500 by September. Goat meat, which was ₦3,856 in July 2023, now costs ₦8,500, an increase of over 120% in a year. Without cold storage trucks, the extreme heat during transit from northern farms to southern markets like Lagos leads to substantial post-harvest losses. The combination of reduced supply and consistently high demand—driven by Nigeria’s reliance on onions for stews, soups, and jollof rice—has contributed to surging prices. Meat supply faces even greater structural hurdles. In 2023, Nigeria produced 1.551 million metric tons of meat, which came from beef, poultry, and mutton and goat meat, yet poor transportation networks and inadequate cold storage infrastructure significantly reduce the volume that reaches consumers—and consequently, higher prices. There are also broader economic factors worsening the crisis with inflation driven by inadequate local production and a volatile foreign exchange market. “Foreign exchange has spiked from around ₦700 per dollar just 18 months ago to approximately ₦1500 today,” Abia said. “ This, combined with high fuel prices and the costs incurred from multiple road checkpoints, which can add up to ₦150,000 or more, transmits directly to the final food prices.” While inflation shows signs of slowing, supply chain disruptions could keep food prices higher, leaving policymakers wary of sustained relief.
Read MoreHow can female founders find capital in a world where investors are not looking for them?
Female founders’ uphill battle to secure venture capital has only grown steeper with time. Despite well-intentioned initiatives aimed at boosting investor readiness—sometimes leading to complaints of over-mentorship—funding disparities have worsened. In 2024, women-founded startups in Africa received just 1% of total VC funding in Africa, marking a five-year low. On March 7, at Accelerating Investment into Women-Led Businesses, a roundtable organised by Spurt! and the UK-Nigeria Tech Hub, investment experts and entrepreneurs discussed why female founders continue to be sidelined in venture capital—and what it will take to change that. Their conclusion: the problem isn’t just about getting women “investor-ready.” Bias is baked into the system, from due diligence to deal flow, and until investors themselves undergo retraining and redesign their processes, they will continue to exclude female founders. Gender bias among investors “Even among gender-lens investors who claim to be addressing bias, there is a level of cognitive dissonance that reinforces outdated stereotypes in practice,” Temilade Denton, an Environmental, Social, and Governance at Alithea Capital, an impact investing firm, said during one of the group discussions. Several participants agreeing with her, cited instances of women undergoing due diligence facing highly biased—sometimes absurd—questions. In one case, during a meeting, a prospective women-focused Limited Partner questioned whether a female general partner was too fashionably dressed to be taken seriously as an impact investor in Africa. “She was a stylish woman, but he probably expected her to wear Birkenstocks or look scruffy,” Denton added. While some investors vocalise these biases, others keep mute and quietly rule out women based on superficial judgements, while maintaining a blind spot for men. Discrimination creeps into due diligence for female founders Beyond individual biases, there are structural issues in the due diligence process that disproportionately exclude women. At the event, investment support experts from several investment firms—including the Lagos State Employment Trust Fund (LSETF), Leap Africa, the Innovation Fund, and Hoaq Club, an investor in food delivery startup Chowdeck—explored the question: at what point does discrimination enter the due diligence process? Discrimination manifests in investment screening, and some participants like Kristin Wilson, managing partner at Innovate Africa Fund, noted that “a man’s pitch deck is often more polished than a woman’s.” This is not necessarily because women are less prepared, but because men typically have greater access to early funding, mentorship, and professional networks that help refine their materials. “We need to train our analysts to look beyond aesthetics. Just because a deck isn’t visually appealing doesn’t mean the business isn’t strong,” Wilson said during the group discussion. Some participants also suggested that removing demographic biases—such as those related to gender, educational background, or personal networks—could help create a more level playing ground. Additionally, they proposed affirmative action measures, such as offering tax incentives to firms that actively work towards achieving gender balance in their investment portfolios. By rewarding inclusivity, such policies could encourage investors to adopt fairer funding practices and challenge entrenched biases in venture capital allocation. Women still have a part to play Nonetheless, female founders often face scepticism when they do not follow up with investors after receiving feedback. One of the participants noted; “No woman has ever come back after feedback, but men do.” This disparity may stem from confidence gaps, limited access to advisory support, or a reluctance to navigate repeated rejection—factors that ultimately reinforce funding inequalities. To bridge this gap, several initiatives have emerged to support women founders. The Lagos State Employment Trust Fund (LSETF), for instance, provides technical assistance to help women implement due diligence recommendations, improving their chances of securing investment. While such programmes offer valuable support, many female entrepreneurs still struggle to access the advisory services and financial expertise needed to compete on equal footing. As investors work to reduce their biases, women must also take proactive steps to increase their visibility, showcase their growth trajectories, and build strong professional networks. Amaka Opara founding partner of Weave Capital, a multi-stage venture capital firm that invests in and mentors startups, emphasised the importance of this approach. “That’s the only way to get capital in a world where investors aren’t looking for you,” she said.
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Fintava Pay is banking the unbanked in Northern Nigeria
Banking the unbanked became the go to tagline for Nigerian fintechs during the country’s fintech boom between 2020-2023. Many fintechs parroted the claim that they were going to bank 36% of Nigeria’s adult population, or 28.8 million people who had no access to financial services. However, only a few fintechs followed through on that promise beyond the confines of Lagos, Nigeria’s economic and startup capital. In 2022, Tobi Arowolo, Samuel Ojerinde, and Isaiah Tokinbo, launched Fintava Pay, a Banking-as-a-Service (BaaS) platform to allow businesses—microfinance banks, cooperative societies, and agent networks—launch custom financial products aimed at financial inclusion in Northern Nigeria. Unlike traditional fintechs that build direct-to-consumer apps, Fintava Pay provides white-label banking solutions to businesses, super agents, and microfinance institutions, enabling them to offer tailored financial services to their own respective communities. Fintava Pay’s approach is particularly useful for Northern Nigeria where digital literacy is low and financial exclusion is most severe in the country. About 38% of the North East and 47% of the North West’s population are financially excluded. Citizens in this region rely on super agents to get cash and perform banking transactions. Fintava Pay offers a lifeline through its white-label solutions that allows super agents to open bank accounts for users. “It’s not that banks don’t exist in these areas,”Arowolo, the company’s CEO told TechCabal. “The problem is that they are centralised in urban centres, while the majority of the population in rural areas lack the infrastructure or financial literacy to engage with digital banking.” According to the Central Bank of Nigeria’s 2023 annual report, there are approximately 5,000 commercial bank branches across the country, 1,614 (32%) of which operate in Northern Nigeria. Fintava Pay often customises these banking solutions in Hausa, a local language commonly spoken in Northern Nigeria, and carries out transaction verification methods that don’t rely on smartphones, which are still uncommon in the areas it serves. “We still use the CBN mandated approach to opening bank accounts, i.e. the use of BVN and NIN,” Ojerinde said. For verification, Fintava Pay sends OTPs to three family members in different locations. This is to ensure that the agent does not have access to the user’s account. To accommodate users without smartphones for digital banking, the company provides them with ATM cards for cash withdrawals. “Before they receive ATM cards, OTPs will be sent to the three numbers. If the three OTP is not available at that point, the users will not be given cards,” said Arowolo. The startup recently onboarded BusyPay, a super agent network in Kano. “The founder of BusyPay approached us, saying, ‘If I had the technology, I could onboard thousands of people overnight,’” Ojerinde recounted. Fintava Pay claims that within 24 hours of launching BusyPay’s custom banking app, the platform registered 1,000 downloads and began onboarding customers who previously had no access to digital banking. While financial inclusion in Northern Nigeria can be attributed to low digital literacy rates, there is a negative perception of interest-based banking by locals due to religious beliefs. The north is largely Muslim. Partnering with super agent networks like BusyPay has helped Fintava Pay overcome this. “There are people who refuse to open accounts with traditional banks because they associate them with interest-based transactions,” Ojerinde explained. “But when they see a familiar face—a trusted local business or agent—they are more likely to engage with financial services.” Due to users’ low digital literacy, fraud has been a major concern for Fintava Pay. The company risks agents misusing customer data for unauthorised transactions. In addition to requiring three separate phone numbers (including family members) for identity verification and OTP authentication, agents also undergo strict onboarding requirements to ensure trust. “One thing we have struggled against is human error. Some people expose their BVN and bad actors use them to take loans,” Ojerinde noted. To combat fraud in its systems, Ojerinde notes that the team hires ethical hackers to regularly check for loop holes within its system. Beyond providing financial solutions for Nigerians, Fintava Pay is courting interest from across Africa and is currently working with a Zambia business where it plans to replicate its model. “This isn’t just a Nigeria problem,” Ojerinde noted. “Many African markets face the same financial inclusion barriers.” With the potential to become a pan-African Banking-as-a-Service provider, Fintava Pay is exploring fundraising opportunities to fuel expansion. However, Ojerinde—who is currently bootstrapping with his cofounders—is cautious about taking investor money too early. “We don’t want to raise just for the sake of it. We want to prove our model at scale first,” he said. How Fintava Pay makes money Fintava Pay generates revenue through a mix of service fees, subscription plans, and transaction charges. Businesses pay to access its API infrastructure, allowing them to offer financial services without securing a banking license. Partners using Fintava Pay’s white-label banking solutions are charged a monthly subscription fee for platform maintenance and updates. The company also takes a cut from wallet top-ups, bank transfers, bill payments, and ATM withdrawals. Additionally, it earns from issuing debit cards linked to its banking platform and charges businesses that integrate its services via API. So far, the company—which is yet to turn a profit—says it has processed over ₦30 billion ($38 million) in transactions and serves over 100,000 customers, with plans to scale further. The differentiation of Fintava Pay While companies like Bloc, Anchor, and Maplerad offer Banking-as-a-Service, Fintava Pay stands out by focusing on financial inclusion in underserved markets, particularly Northern Nigeria and rural communities. Unlike competitors who provide generic banking APIs, Fintava Pay customises solutions for local financial behaviours. Instead of working directly with end-users, Fintava Pay partners with microfinance banks and agent networks that already have customer trust. This differs from the likes of Moniepoint and Opay which directly operates agent-led banking, but doesn’t offer deep customisation for businesses to run their own fintech solutions. For businesses who use its API to receive payments, Fintava Pay claims it does instant settlement for businesses. Arowolo claims that businesses who
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