SASSA Grant Increases for 2025: What You Need to Know
Millions of South Africans who rely on social grants can finally breathe a sigh of relief after the South African Social Security Agency (SASSA) confirmed the official grant increases for 2025. Finance Minister Enoch Godongwana announced these increases—ranging from 5.7% to 5.9%—during his Budget Speech on Wednesday, March 12, 2025. Compared to last year’s 4.9% increase, this marks a boost aimed at helping beneficiaries cope with rising living costs. What is the SASSA Grant? The SASSA grant is a social assistance program provided by the South African Social Security Agency (SASSA). It includes various grants such as the old age pension, child support grant, disability grant, and the Social Relief of Distress (SRD) grant. These grants help low-income individuals and families meet their basic needs. How to Apply for a SASSA Grant Applying for a SASSA grant is crucial to securing financial assistance for eligible South Africans. Here’s an expanded guide on how to apply: 1. Check your eligibility Before applying, ensure you meet the specific criteria for the grant you’re interested in. Eligibility requirements vary depending on the type of grant, such as the Older Person’s Grant, Child Support Grant, Disability Grant, etc. Detailed eligibility information is available on the SASSA Services Portal. 2. Prepare your documents Gather all necessary documents, which typically include: A valid South African ID. Proof of income or lack thereof. Medical reports (for disability grants). Birth certificates of children (for child-related grants). Having these documents ready will facilitate a smoother application process. 3. Submit your application SASSA offers multiple channels for submitting grant applications: Online Application: SASSA provides an online platform where applicants can complete and submit their application forms electronically. This method is designed to be convenient and time-saving. Detailed instructions can be found in the SASSA Online Grant Application Poster. In-Person Application: Applicants can visit their nearest SASSA office to apply. The process involves filling out application forms, providing fingerprints, and undergoing an interview with a SASSA officer. This method may take up to two hours. More details are available on the South African Government’s FAQ page. Alternative Methods: As of now, SASSA does not offer application submissions via text message or SMS. Applicants are advised to use the online platform or visit a SASSA office in person. 4. Wait for Processing After submission, the application undergoes a verification process: Notification: Applicants will receive a letter of approval or rejection within 30 working days. Appeals: If rejected, applicants have the right to appeal the decision within 90 days. For more detailed information on the application process, including the appeals procedure, refer to Legal Fundi’s guide. Key Updates on SASSA Grants for 2025 The increase in SASSA grants aims to help beneficiaries keep up with rising living costs and the additional financial strain caused by the 0.5% VAT increase. The adjustments are as follows: Official SASSA Grant Increases for 2025 The government has approved a higher-than-expected, above-inflation increase of 5.7% to 5.9% across various grants. Compared to last year’s 4.9% increase, this marks a significant step to provide better financial support to recipients. Older Persons Grant (60–74 years): Increased by R130 to R2 315 Older Persons Grant (75+ years): Increased by R130 to R2 335 War Veterans Grant: Increased by R130 to R2 315 Disability Grant: Increased by R130 to R2 315 Care Dependency Grant: Increased by R130 to R2 315 Foster Care Grant: Increased by R50 to R1 230 Child Support Grant: Increased by R30 to R560 With over 4 million older persons receiving grants and approximately 13 million children benefiting from the Child Support Grant, these increases will have a meaningful impact on households across the country. When will the increased grants be paid? Although the grant increases have been confirmed, the official payment dates for April 2025 have not yet been announced. However, based on previous years, beneficiaries can expect the following schedule: Older Persons Grants: Tuesday, 1 April 2025 Disability Grants: Wednesday, 2 April 2025 Children’s Grants: Thursday, 3 April 2025 Payments may take 2–3 days to reflect in bank accounts. Beneficiaries should plan accordingly. Ongoing challenges at SASSA Despite the positive news about grant increases, SASSA continues to face significant operational challenges. Key issues include: Postbank Gold-to-Black Card Migration: Only 30% of the 3 million affected beneficiaries have successfully transitioned to the new black cards. This means 1.9 million grant recipients are at risk of losing access to their payments if they do not switch before the deadline. Leadership Crisis: With the suspended CEO and ongoing investigations into SASSA’s administration, the agency faces uncertainty at the highest levels. Identity Theft & Fraud: Increasing cases of grant fraud and identity theft continue to be a major concern, affecting many vulnerable beneficiaries. Staying Updated on SASSA Grants For further details on SASSA grants, payment dates, and application processes, check out these resources: SASSA 2025 Appeal Process and New Payment Dates New SASSA Jobs in South Africa for 2025 January SASSA Payment 2025 Dates and Key Details SASSA December Payment Dates & More for 2024 SASSA November Payment Dates & Modalities for 2024 New Answers from SASSA to Grants Questions & Issues (2024-2025) SASSA October 2024 Payment Dates Apply Now for the New 2024 SASSA Child Support Grant Final Thoughts The SASSA grant increases for 2025 bring some much-needed relief to millions of beneficiaries across South Africa. While the financial boost is welcome, ongoing administrative challenges at SASSA and Postbank pose significant hurdles. Beneficiaries are encouraged to stay informed, ensure their banking details are up to date, and take necessary steps to avoid disruptions to their payments.
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TechCabal Daily – Starlink gets comfy in Mozambique
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning What exits make a headline? For HoaQ, it’s delivering a 6x return in a sector where even 3x returns are considered a win. Starting as a Dublin-based angel syndicate in 2020, HoaQ has expanded into a dedicated VC fund, supporting early-stage African startups with global potential. With over 100 startups in its portfolio and recent exits—Baseline and Raenest—delivering 600% returns, HoaQ is applying that experience into strategic, hands-on investing to accelerate growth in Africa’s startup ecosystem. Read the latest edition in our VC-focused column, Ask an Investor. MTN Nigeria loses top spot as telco’s highest revenue generator Sycamore wants more young Nigerians to be investors Starlink to launch ground station in Mozambique by March end Nigeria’s inflation slows to 23.2% in February World Wide Web 3 Opportunities COmpanies MTN Nigeria loses top spot as telco’s highest revenue generator Image Source: Tenor MTN Group, Africa’s largest telecom operator, reported a 15.4% decline in its service revenue to R177.8 billion ($9.8 billion) in 2024, reversing the steady growth of previous years. The lowlight stayed with the Group’s largest market: MTN Nigeria. Once its top revenue generator out of 17 African markets, MTN Nigeria has lost its position for the first time since 2019, slipping behind the West and Central Africa (WECA) region and South Africa. For years, MTN Nigeria contributed nearly half of the Group’s total revenue. But in 2024, foreign exchange losses and inflation have dragged it into a post-tax loss of over ₦400 billion ($266 million). The naira devaluation has made network equipment, loan repayments, and operating costs more expensive. While MTN Nigeria generated ₦3.3 trillion in service revenue, its value collapsed when converted to dollars ($2.2 billion). This decline comes notwithstanding MTN’s increased investment in infrastructure upgrades in Q4 2024, which likely shows that the company may not be reaping any returns for making investments in Nigeria. The slump could complicate the telecom operator’s plans to invest more money into upgrading its core network infrastructure planned for Q1 2025. Less funding for expansion and network upgrades could weaken MTN Nigeria’s position in the highly competitive market. As one of the consistent top revenue drivers for the business—save for one slump—it is unlikely that the Group company will deprioritise its Nigerian subsidiary where it controls more than half of the telecom market. The approved telecom tariff hike in Nigeria is a strong positive for telecom companies like MTN Nigeria looking to recover losses in the market. With Nigeria’s growing data demand, the average revenue per user on data services could see strong growth, tipping the scales for MTN Nigeria. Again, compared to 2024, the naira has stabilised in recent months, which leads to stable operating margins for the company. We wager that MTN will want to wait out another quarter or two to see how its Nigerian business bounces back. 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. Fintech Sycamore wants more young Nigerians to be investors An illustration of Sycamore CEO Babatunde Akin-Moses/Image Source: TechCabal What was your first exposure to investing? For most millennials, their first foray into investing was through piggy banks or the occasional advice from an older relative about ‘putting money where it will grow.’ For young Nigerians, it was likely through apps like Cowrywise, which made fixed-income investments—like treasury bills—more accessible. For a long time, investing felt out of reach for everyday Nigerians. The options were limited—either you had enough wealth to work with firms like ARM, Stanbic IBTC, or FBNQuest, or you were left navigating complex investment processes on your own. Due to a lack of straightforward, beginner-friendly platforms, many Nigerians either kept their money in cash or turned to informal savings schemes with little to no returns. That’s changing. Digital platforms like Rise, Bamboo, and Sycamore—which recently expanded into asset management—are making it easy for Nigerians to invest their money. Sycamore, which previously provided lending services to salaried employees and business owners, has acquired a fund manager licence from Nigeria’s Securities Exchange Commission (SEC). With it, the fintech will bridge the gap between high-net-worth investment firms and retail-focused fintechs by offering diversified portfolios in stocks, bonds, and money markets—accessible to freelancers, SMEs, and everyday investors. Sycamore is betting that if it can turn borrowers into long-term investors, it will carve out a niche in Nigeria’s fast-evolving investment space. TechCabal has the full story on Sycamore’s expansion. You can now integrate Paystack with Stub Stub makes it easy to manage your business with features like invoices and financial reports. With Paystack integration, you can securely accept payments online and track them in real time. Learn more here → Internet Starlink to launch ground station in Mozambique by March end A Starlink ground station/Image Source: Starlink Installation Pros Starlink, the satellite internet service provider (ISP) that is aggressively expanding into Africa, will launch its ground station in Mozambique by the end of March 2025. The ground station acts like a direct bridge between Starlink satellites and local users, reducing lag and ensuring a more stable internet connection. It will also strengthen Starlink’s connectivity in remote areas of Mozambique, where traditional broadband options are limited. Since Starlink entered into Africa in 2023, it has expanded rapidly, now operating in 18 countries—despite hitting regulatory roadblocks in Southern Africa—with two ground stations on the continent; one in Nigeria, the other in Kenya. It appears Starlink is increasing the number of ground stations in regions where internet blackouts and slow speeds are common. In January 2025, it launched a ground station in Kenya after upscale areas like Nairobi experienced network instability in November 2024. Plans are also underway to build another ground station in Zambia this year, which will bring the total to four. The ISP will have at least one ground station in three
Read MoreMTN Nigeria loses top revenue spot for first time since 2019 after ₦400.4 billion loss
MTN Nigeria has lost its position as the MTN Group’s highest-earning subsidiary for the first time since 2019 after reporting a post-tax loss of ₦400.4 billion ($260.2 million) in 2024. The Nigerian unit fell behind the West and Central Africa (WECA) region and South Africa in revenue rankings, marking a significant shift in the Group’s revenue dynamics. The telecom giant, which contributed around 40% of the Group’s total revenue for five years, struggled in 2024 as a weakened naira and rising inflation slashed earnings. MTN Nigeria, which holds 51% of Nigeria’s subscriber base, generated $2.26 billion in 2024—down from $4 billion in 2023. Despite a 36% increase in revenue to ₦3.36 trillion in 2024 (up from ₦2.47 trillion in 2023), foreign exchange losses drove MTN Nigeria’s bottom line into the red. In contrast, MTN South Africa earned $2.89 billion, surpassing Nigeria to become the group’s second-largest subsidiary by revenue. The WECA region, which includes Ghana, Cameroon, Côte d’Ivoire, Benin, Congo Brazzaville, and Liberia, led with $3.1 billion. Ghana was the WECA region’s top contributor, according to MTN Group CEO Ralph Mupita. The financial strain on MTN Nigeria has broader implications for the Group’s future investments in its largest African market. MTN Group prioritizes capital expenditure for its most profitable units, and while MTN Nigeria remained a key recipient of funds in 2024—receiving approximately $986.2 million for network expansion and 5G rollouts—further revenue declines could jeopardize future allocations, potentially affecting the company’s growth and service quality. Historically, South Africa has been the group’s dominant revenue generator. However, Nigeria first surpassed South Africa in 2013 when it generated $2.6 billion compared to South Africa’s $2.1 billion. MTN Nigeria maintained the top position until 2017 when it began repaying a $5.2 billion fine imposed by the Nigerian government. The company regained its leading spot in 2019 before slipping again in 2024. In response to the 2024 losses, MTN Group suspended Nigeria’s revenue guidance—a projection of future earnings by the company. However, with the Nigerian Communications Commission (NCC) approving tariff increases, the company has since reinstated its revenue outlook. “We saw inflation ease towards the end of 2024, which gives us confidence,” said CEO Ralph Mupita during an investor call on Monday. “We have not yet completed the implementation of the tariff increases in Nigeria.” As of December 31, 2024, MTN Group operates in 16 countries across Africa and the Middle East, serving 291 million customers. The company has been streamlining its operations in recent years, exiting certain markets—such as Afghanistan—to focus on its core African business. MTN now organizes its operations into five regional clusters: South Africa, Nigeria, South and East Africa (SEA), West and Central Africa (WECA), and the Middle East and North Africa (MENA). MTN Nigeria’s performance in the coming years will depend on a stabilized naira, easing inflation, and a recovery in consumer spending power.
Read MoreNigeria’s inflation slows to 23.18% in Febraury on stable naira and lower fuel prices
Nigeria’s headline inflation slowed for the first time in 2025 after a Consumer Price Index (CPI) rebase, on lower petrol costs and a stable naira. Data from the National Bureau of Statistics on Monday put February’s inflation rate at 23.18%, down from 24.48% reported in January 2025. A decline in diesel and petrol prices due to increased output from Dangote Refinery helped temper inflation, with a cascading effect on the broader economy, driving down costs for consumers and businesses alike. Diesel prices dropped by 33% to ₦1,000/liter, while petrol prices remained steady around ₦800+ per litre. Food inflation for February was 23.51%, down from 24.08% recorded in January. Analysts believe that Nigeria’s inflation is at an inflection point—following the CPI rebasing—and expect inflation to accelerate as soon as April. Those analysts now predict that the CBN may fail to reach its target due to global economic factors. “My outlook for 2025 in Nigeria in spite of the rebasing is an average rate of 31% for the year. So, expect worse monthly numbers deep into 2025,” said Basil Abia, co-founder of data and research firm Veriv Africa. “It will mostly not be the fault of Nigeria’s policymakers, but rather due to global economic factors, similar to how the pandemic affected Nigeria’s economy in 2020.” The Monetary Policy Committee (MPC) in February held interest rates at 27.50% after assessing recent macroeconomic developments—including exchange rate stability and a gradual slowdown in fuel price increases—and the rebasing of the CPI index.
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After securing exits for its angel network, HoaQ is expanding with a dedicated VC fund
In April 2020, during the height of the pandemic, HoaQ, an angel investor syndicate, formed in Dublin, the European city home to big tech companies like Google and Meta. It had a single goal: pooling investments from professionals to invest in early-stage African startups. At its inception, HoaQ was run by Joe Kinvi and Nubi Kay, with its initial investments in Bamboo, a Nigerian investment startup (now at Series A). By October 2020, the attention from Paystack’s $200 million acquisition by Stripe spurred investor excitement in Africa’s tech ecosystem and grew the syndicate’s membership. After formalising the syndicate in 2021 due to growing interest, Kinvi and Kay faced operational challenges in money movement, investment paperwork, and manual administration as they ran the syndicate part-time. Around this time, Yewande Odumosu, now managing partner of HoaQ’s fund, joined. Odumosu was feeling constrained by the narrow fintech infrastructure focus of her previous investment syndicate. “I realised I was referring so many people to HoaQ that I might as well invest with them too,” she said. “Over time, as I became more involved, we saw the need for a dedicated fund to back early-stage founders before deals moved too fast. That’s how the HoaQ Fund came about.” The fund has now launched and will operate alongside the syndicate. “The syndicate remains active for investors who want to handpick deals, while the fund caters to those who prefer passive investing,” Odumosu said. “Both share the same investment philosophy but offer different structures to accommodate varying investor preferences.” The fund will invest between $25,000 and $50,000 in 30 founders with domain expertise and technical know-how with the potential to scale globally, and will also reserve some capital for follow-ons. HoaQ recently secured exits from two startups: Baseline, acquired by Cloudflare, and Raenest, which delivered 600% net returns to investors—$1,000 invested returned $6,000 after fees. “We’ve also had failed investments, but even there, we prioritised transparency and proper wind-downs,” Kinvi said. “ Two returned 20 cents on the dollar, and one returned 50 cents on the dollar. Investors appreciated the clarity and the partial refunds—many syndicates simply vanish when things go south.” Despite its small cheque size, founders still take capital from HoaQ because of its reputation and network. Over time, HoaQ has built an angel network with thousands of operators, founders and small-time investors. “Founders bring us into deals because of what we offer beyond money—introductions, guidance, and exposure,” Odumosu said. “We’ve co-invested with YC, Techstars, Visa Accelerator, Ventures Platform, and others. Our portfolio includes over 100 startups in the club and 17 through the fund across 7 countries.” TechCabal spoke to Yewande Odumosu, who runs the fund; Joe Kinvi, who has transitioned to running Borderless, an investment technology platform; and Folakemi Osho, who runs the angel syndicate. This interview has been edited for length and clarity. What prompted the shift from an angel collective model to forming a structured venture fund? As founders, operators, and angel investors, we recognised a strong correlation between our unique experiences, which allowed us to identify compelling opportunities in the early-stage investment space. However, we soon realised that to effectively invest at the earliest stages, either before or alongside the collective, we needed dedicated early-stage capital. This insight led us to explore ways to raise that capital, ultimately resulting in the creation of a structured venture fund. Rather than a shift, this was a natural evolution—an expansion to ensure both the fund and the collective could coexist and continue supporting exceptional founders tackling rare and transformative opportunities through technology. How did your original network or community of angels influence the fund’s early deal sourcing? Before the fund was established, HoaQ club had already built a strong track record of investing in exceptional teams and startups. As a result, we had access to high-quality deal flow and a steady pipeline of opportunities. Over time, we began attracting other experienced founders and receiving referrals from both our portfolio founders and the broader angel network. As HoaQ’s reputation grew, we also saw increased interest from co-investors wanting to partner with us. This strong network continues to drive high-quality deal flow for both the club and the fund. While the fund takes a more hands-on approach, prioritising dedicated support and deeper engagement with its portfolio startups, the club plays a broader role in the ecosystem, offering strategic support through tailored events, ecosystem initiatives, and community-driven programs that benefit startups, investors, and other stakeholders. What were the biggest growing pains in the evolution—operationally, strategically, or culturally? The biggest difference between running a club/collective and an early-stage venture fund is the level of structure, responsibility, and engagement required. A collective operates with more flexibility—investors participate on a deal-by-deal basis, and capital is raised as opportunities arise. In contrast, a venture fund requires formal fund management, regulatory compliance, capital commitments upfront, and a more structured investment thesis. Additionally, a fund often takes a more hands-on approach with portfolio companies, providing deeper strategic support beyond capital. Operationally, managing a fund requires setting up institutional-grade processes, handling LP relationships, ensuring compliance, and maintaining rigorous reporting standards. Unlike a collective, where investments are more ad hoc, a fund requires ongoing capital management, portfolio monitoring, and structured decision-making. Strategically, the evolution from a collective to a fund means refining investment theses, defining portfolio construction strategies, and balancing risk across a structured fund lifecycle. The fund also needs to differentiate itself in a competitive early-stage market while maintaining access to strong deal flow. Culturally, the transition impacts both internal operations and external relationships. Internally, it requires a mindset shift from opportunistic investing to long-term portfolio building. Externally, expectations change—founders and LPs look for deeper engagement, structured support, and a clear vision for fund performance over multiple cycles. Maintaining the community-driven spirit of the collective while adapting to the demands of fund management is a key cultural challenge. What has been the hardest challenge in this transition? One of the hardest challenges in this transition has been fundraising as an emerging fund
Read MoreHow to Renew Your Driving License Online in Kenya (Step-by-Step Guide)
Renewing your driving license in Kenya is now easier than ever, thanks to the National Transport and Safety Authority (NTSA) eCitizen online portal. Gone are the days of long queues at physical offices. You can now complete the entire process online in a few minutes. In this guide, we will provide a detailed step-by-step process for renewing your driving license online, the costs, and payment methods. Can you renew any Driving License Online in Kenya? Before you begin the renewal process, it’s important to note that only smart driving licenses can be renewed online. If you still hold the old red booklet license, you must first apply for a smart driving license through the NTSA TIMS portal before proceeding with renewal. What is a Smart Driving License? A smart driving license is a digital version of the traditional license issued by the NTSA. It contains a chip with your driving history, making it easier for authorities to track violations and enforce road safety regulations. If you don’t have a smart driving license yet, you should apply for one before attempting to renew. Step-by-Step Guide to Renew Your Smart Driving License Online in Kenya Follow these simple steps to renew your smart driving license online: 1. Log in to the NTSA eCitizen Portal Open your web browser and visit the NTSA eCitizen portal. Click on the eCitizen login option. Enter your National ID number and password to log in. If you don’t have an eCitizen account, you must create one first. 2. Select “Driving License Renewal” Once logged in, navigate to the NTSA Services section. Click on “Driving License Renewal” from the list of available services. 3. Enter Your Details Provide the necessary details, including: Your National ID number Your driving license number Your contact details (phone number and email address) Double-check your details for accuracy before proceeding. 4. Make Payment Online The system will display the driving license renewal fees based on the duration you select: 1-year renewal: Ksh 650 + service fee 3-year renewal: Ksh 1,400 + service fee Select a payment method (M-Pesa, debit/credit card, or mobile banking). Complete the payment and wait for confirmation. 5. Download & Print Your Renewal Slip Once payment is confirmed, you will receive a digital renewal slip. Download and print the renewal slip as proof of renewal. Keep the slip safe in case authorities request proof of a valid license. How Much Does It Cost to Renew? Here’s a breakdown of the renewal costs: Payment is made through M-Pesa or other online banking options. Final Thoughts Renewing your driving license online in Kenya is a quick and hassle-free process. By following the steps outlined above, you can complete your renewal within minutes using the NTSA eCitizen portal. To avoid last-minute rush and penalties, always check your license expiry date and renew it on time!
Read MoreHow to check your JAMB result in 2025: A complete guide
If you’ve just taken the JAMB UTME and are eager to see your score, you’re not alone. Checking JAMB Result is one of the most searched topics by Nigerian students after the exam. This piece is a step-by-step guide to help you get your results quickly and without hassle. It also highlights important JAMB 2025 dates and what to do next after seeing your results. The JAMB UTME 2025 exam will take place from Friday, April 25th to Monday, May 5th, 2025. Here’s everything you need to know about checking JAMB result: How to check JAMB Result in 2025 JAMB offers two main ways to check results: the JAMB portal and SMS. 1. Checking JAMB Result via the JAMB Portal This method requires internet access and a device (phone, tablet, or computer). Go to the official JAMB result portal: www.jamb.gov.ng Click on “Check UTME Results” Enter your JAMB Registration Number or Phone Number Click “Check My Result” Your result will be displayed on the screen. You can print it for reference. 2. Checking JAMB Result via SMS For candidates without internet access, JAMB provides an SMS method. Send “RESULT” followed by your JAMB Registration Number to 55019 or 66019 Wait for a response containing your score details Ensure you have at least N50 airtime before sending the message Troubleshooting issues when checking JAMB result If you run into issues while trying to check your result, here’s what to do: “Result Not Available” Message? Your result may not be ready yet. Wait and try again later. Forgot your JAMB Registration Number? Follow this guide: Retrieve JAMB Registration Number. Lost your JAMB Profile Code? Here’s how to get it back: Retrieve JAMB Profile Code. When will JAMB 2025 results be released? JAMB typically releases results within 48 to 72 hours after the exam. Candidates who write earlier may get their results first. Stay updated on JAMB-related announcements here: JAMB 2024/2025 Updates. What to do after checking JAMB result Once you’ve seen your JAMB score, here’s what comes next: Check Your Admission Status Find out if you’ve been offered admission: How to Check JAMB Admission Status. Print Your JAMB Admission Letter If admitted, you’ll need this document: Print JAMB Admission Letter. Ensure Your Name Is on the Matriculation List Confirm your details here: JAMB 2024 Matriculation List. Correct Any Errors in Your JAMB Details If there’s a mistake in your name, date of birth, or email, here’s how to fix it: Change JAMB Details. Download the JAMB Recommended Novel for 2025 Find the official novel here: JAMB 2025 Novel. Final Thoughts Checking JAMB result is a simple but essential step in your admission process. Whether you use the online portal or SMS method, you can access your results easily by following the steps outlined in this guide. If you run into any issues, use the linked resources to resolve them quickly. For the latest JAMB news, admission updates, and educational insights, stay tuned to TechCabal. If you have any questions, drop a comment below.
Read MoreWhat Is an Angel Investor? Everything You Need to Know in 2025
For many African startups, securing funding is one of the biggest hurdles to scaling. While venture capital and grants are standard funding options, angel investors are crucial in fueling early-stage businesses. But who exactly are angel investors, and how do they operate in 2025? In this guide, we’ll break down what angel investors are, how they work, and what startup founders in Africa need to know to attract them. Who Is An Angel Investor? Angel investors are high-net-worth individuals who provide capital to startups in exchange for equity. Unlike venture capitalists who invest institutional money, angel investors use their funds. They typically step in at the pre-seed or seed stage, making them a critical lifeline for startups that lack access to financing. Angel investors are not just about money. They often provide mentorship, industry connections, and strategic advice to help startups succeed. In Africa, where funding gaps persist, angel investors have become even more essential. How Does an Angel Investor Work? 1. Where Do Angel Investors Get Their Money? Since angels invest personal wealth, they are often successful entrepreneurs, corporate executives, or industry veterans. Many of them reinvest profits from their businesses into emerging startups. 2. How Do They Evaluate Startups? Angel investors look for high-growth potential businesses with a strong founding team, market opportunity, and a scalable business model. Unlike venture capitalists who demand rapid scaling, angels are often more patient with their investments. 3. Angel Investors vs. Venture Capitalists While both provide funding, key differences exist: Angel investors use personal money, while VCs manage pooled funds from multiple sources. Angel investors take more early-stage risks, while VCs prefer startups with some traction. Angels are hands-on mentors, whereas VCs expect structured governance and fast returns. The State of Angel Investing in Africa in 2025 According to a TechCabal report, 77% of African angel investors limit the number of deals they participate in due to high risks and economic uncertainty. However, the African startup ecosystem remains resilient. In 2025, several trends are shaping angel investing: 1. Rising Sector-Specific Interest Angel investor focus on high-growth sectors such as fintech, health tech, edtech, and agritech. Startups in these industries continue to attract early-stage funding due to their scalable models and social impact. 2. Growth of Angel Networks Groups like the African Business Angel Network (ABAN) and Lagos Angel Network (LAN) are creating more structured ways for angels to connect with promising startups. This trend makes it easier for founders to pitch to multiple investors simultaneously. 3. Increasing Regulation & Compliance Many African governments are implementing policies to protect both startups and investors. Startups must now comply with local laws, tax regulations, and investor protection policies. How to Find and Attract Angel Investors in 2025 1. Where to Find an Angel Investor Angel Networks: Platforms like ABAN, LAN, and Google’s Africa Investment Network. Tech Conferences & Startup Events: Events like Moonshot, Africa Tech Summit and Gitex Africa attract investors. Online Platforms: AngelList, LinkedIn, and VC4A are great places to connect with angel investors. 2. What an Angel Investor Looks For in a Startup Angel investors evaluate startups based on: The Problem & Market Need: Does the startup solve a real pain point? Traction & Growth Potential: Are there early customers or signs of scalability? The Founding Team: Strong teams often matter more than the idea itself. 3. How to Pitch to an Angel Investor A compelling pitch should: Clearly define the problem and solution. Show early traction (users, revenue, partnerships). Detail how the funds will be used (product development, marketing, hiring). Explain the exit strategy (e.g., potential acquisition, IPO, or future funding rounds). Risks and Rewards of Angel Investing While angel investing can be lucrative, it carries risks. Many startups fail, making it a high-risk, high-reward investment strategy. However, securing an angel investor means more than just money for startups. It’s about mentorship, industry access, and long-term growth. Final Thoughts Angel investors remain a key funding source for African startups in 2025, offering early-stage capital and strategic support. As the African tech ecosystem continues to evolve, founders who understand how to connect with and pitch to angel investors will have a competitive edge. For more insights on startups, check out: TechCabal’s beginner’s guide to investing in a Nigerian startup What does it take to be an angel investor? How can Africa create more angel investors?
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Chams, CWG profits soar to billions for first time in 13 years
For the first time in 13 years, Computer Warehouse Group (CWG) Plc and Chams Holding Company Plc have reported billion-naira profits owing largely to Nigerian banks upgrading their IT infrastructure and telecom companies acquiring more SIM cards. Their latest unaudited financial reports for full-year 2024 showed a 395% jump in combined after-tax profit—from ₦983.7 million in 2023 to ₦4.88 billion in 2024. Chams, a provider of technology-driven services such as identity management, security, and transactional solutions, nearly tripled its revenue from its subsidiary Card Centre to ₦6.48 billion. This significant increase contributed to the company’s overall profit surge, and a 37.7% growth in print solutions and access sales. “The company has begun to realize the advantages of its upscaling efforts despite the initial impact on profitability,” a Chams spokesperson told TechCabal. “Its subsidiaries have successfully established technical partnerships, a prerequisite for securing substantial clients. Furthermore, the expansion into the production of SIM cards for telecommunications providers and initiatives in cross-border payments are key contributors to performance enhancement.” Chams, a leading player in biometric identity management, boasts a diverse clientele across government and the financial sector. Its major banking clients include Keystone, First Bank, Sterling, and other financial agencies. On the government side, it works with the Independent National Electoral Commission, Nigerian Customs Service, National Health Insurance Scheme, Nigerian Communications Commission, and Pension Fund Administrators. Ayokunmi Kunle-Salami, a Lagos-based information and technology engineer, said while Chams has multiple subsidiaries, its card centre generates the most revenue from printing cards for commercial banks. “More banks are pushing for a cashless economy, contributing to the increase in the demand for ATM cards,” he said. The earnings of CWG, which provides managed services, IT infrastructure support and integration to telcos and banks, soared 524% to ₦3.59 billion. This surge came as several Nigerian banks overhauled their core banking systems, increasing demand for software and IT support. CWG did not respond to a request for comments. But experts familiar with the company’s operations told TechCabal that its 20-year partnership with Infosys boosted its software revenue by 400% to ₦19.1 billion. CWG supplies Finacle, Infosys’ core banking application, to its clients. “Demand for firms like CWG rose last year due to service upgrades by some tier-one banks (First Bank of Nigeria, United Bank for Africa and GTBank), which use Finacle. Beyond new contracts, software vendors also raised prices—some by over 100%—due to rising licensing and support costs,” said Kunle-Salami who also works at Cowry Asset Management Limited. In October 2024, GTBank switched its banking software vendor from ICS Financial Systems, located in Jordan, to Finacle. Other commercial banks that use Finacle include FBNQuest Merchant Bank, Fidelity Bank, First City Monument Bank, Globus Bank, Stanbic IBTC, and Wema Bank. CWG’s revenue surged due to banks’ acceptance of IT infrastructure, such as the Finacle platform, and their aggressive push towards digital transformation, said Kassy Olisakwe, head of Blockchain Development at Ubuntu Tribe, who is also an investor in the company. “The increased adoption of digital transformation has led to expansion,” he said. CWG also implements and supports core banking applications, which led to a 106% rise in revenue from managed and support services. “Many companies, including banks, outsource approximately 80% of their IT departments to third-party vendors like CWG, due to the lack of resources and capabilities to recruit and retain skilled ICT personnel,” Kunle-Salami said. Regarding its IT Infrastructure services, CWG provides cloud colocation, network infrastructure, and disaster recovery services. Revenue for this segment rose by 15.7%. Apart from Nigeria, the company operates in three other African countries: Ghana, Uganda, and Cameroon. According to its latest investor relations report, Nigeria pulled the highest revenue of ₦15.7 billion in 2023, followed by Ghana with ₦4.12 billion, and Uganda (₦3.54 billion). Cameroon reported zero revenue. At its 19th annual general meeting in 2024, CWG’s Group COO Afolabi Sobande said the company is expanding its product portfolio to capitalize on evolving market trends. Chams also announced plans to scale its Card Centre production facility to meet rising demand from banks. As of Friday, March 14, 2025, CWG’s share price was changed at ₦9.00, while Chams’ share price rose by 0.46% to ₦2.15. CWG’s market capitalization is ₦22.7 billion, ranking 75th on NGX, while Chams, at ₦10.1 billion, ranks 95th. While both companies benefited from banks’ IT spending, competition from fintech and global IT firms such as Accenture and Microsoft, offering comprehensive IT solutions, can outcompete local providers. Emerging technologies, including innovation, cloud computing, artificial intelligence, and cybersecurity, are becoming critical for banks’ digital transformation initiatives. Local providers such as CWG and Chams must constantly adapt to stay ahead of the curve and avoid obsolescence. Nigeria’s tech trio soars: NGX-listed Chams, eTranzact, and CWG stocks up by 169%
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Next Wave: Secondaries are limiting Africa’s VC ecosystem. Can data help?
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 16 March, 2025 Image: TechCabal Two years ago, my colleague wrote in this newsletter about how a data gap hinders startup fundraising. Today, that data gap is doing the same to Africa’s venture capital (VC) ecosystem by limiting transparency around exit decisions. Secondaries—investors selling shares in startups to each other—dominate exits in Africa, given the absence of IPOs and a dull mergers and acquisitions market. Relying solely on secondaries is not ideal, but most African fund managers prefer taking what’s available today rather than waiting for an uncertain future in a volatile market—especially as their fund cycles are coming to an end. The secondary market operates on a willing-buyer, willing-seller model. Under this arrangement, buyers typically hold more leverage because sellers often face pressure to secure liquidity. Given this leverage, buyers typically offer to buy shares at significant discounts, which can sometimes reach 40%. An early-stage pan-African VC firm missed an opportunity to exit from a Kenyan digital commerce marketplace at a $100 million valuation before the startup’s valuation fell to zero because it rejected a 50% discount proposed by other investors. Another early-stage firm that sold secondaries at a fintech’s recent fundraise also took a 30% discount from the valuation. These haircuts can make smaller funds struggle to meet LP return expectations—a 3x return on the fund—when their stakes in startups are consistently sold at discounted valuations. Next Wave continues after this ad. Africa’s youth are shaping the future, but are their voices truly heard? The Citizen Report provides a deeper understanding of the challenges and opportunities young Africans face, spotlighting their perspectives on AI, governance, education, human rights, and more, backed by data and research. This report bridges the gap between lived experiences and policy decisions that impact millions. Download The Citizen Report here Secondaries are the most common forms of exit, and as smaller funds consistently take valuation haircuts in these deals, they might struggle to return their funds. When a firm fails to provide attractive returns, it will struggle to raise subsequent capital. This can lead to a gap in funding for early-stage startups and slow the growth of African startups. How can data help? Most of the data available in Africa’s VC ecosystem today is the annual funding raised. While useful, more impactful metrics—like the likelihood of finding a fund-returning startup at the early stage, average fund performance, or risk profiles across funding stages, which can influence valuations and cheque sizes at the early stage—are either absent or notoriously difficult to obtain. Accurate and comprehensive data on historical exit multiples, sector-specific performance, stage-specific risk profiles, and regional comparables could provide benchmarks and reduce the valuation mismatch between early and later-stage investors. For instance, if data reveals that fintech exits in Nigeria typically achieve 5x returns, smaller VCs could negotiate better terms when selling secondaries in these fintechs. Carta, a cap table management platform, released a report in 2024 that provided data for America’s VC industry, which helped inform investment decisions, valuation standards, and portfolio strategies. In Africa, however, the data gap is causing uncertainty around valuations and exit potentials. These insights can also help investors price deals more accurately, reducing startup overvaluations that hinder exit opportunities. With clear data on average startup valuations, early-stage investors can invest more precisely, preventing valuation mismatches and the surprise factor that leads to steep secondary discounts. Reliable and readily available data could also reduce the perception of excessive risk associated with African startups among international investors. If comprehensive data clearly outlines the actual risks involved, international LPs and potential acquirers may view Africa’s startup ecosystem more favourably. Looking ahead Building a robust data infrastructure is no small feat—just ask my colleagues at TC Insights, the research arm of TechCabal—it requires patience, stakeholder buy-in, and significant capital. VC firms, LPs, and startup founders must be willing to share data while respecting confidentiality agreements, which can limit the amount of information they disclose. Next Wave continues after this ad. Registration for GITEX AFRICA 3rd edition is NOW OPEN – Africa’s largest tech and start-up event from 14-16 April, 2025 in Marrakech, Morocco. Presenting 3-days of high impact and outcome-focused public-private sector collaborative gatherings, including the largest, most advanced, tech innovation showcases. Register now! One workaround to the confidentiality conundrum is focusing on sector-specific or regional data rather than individual company metrics. A fintech-focused investor exposed to Nigerian startups can share aggregated data on the expected performance and valuation of fintech startups in Nigeria, highlighting key metrics that indicate business viability and valuation. A16z, one of the largest VC firms in the world, has been releasing data on the AI voice market, which is helping educate startup founders on the VC expectations of their businesses. Njavwa Mutambo, the founder of Caantin, told me that their research has helped guide how he’s building and selling his AI voice agent business to financial institutions and presenting his business to investors. Startups also have to willingly report and benchmark their performance, which can foster the type of transparency that can help investors secure optimal returns on startup investment—a tough ask for African startups. This cultural shift can also help the ecosystem mature; the information in Stripe’s annual letter helped establish that AI startups are making more money than SaaS startups at the same stage of infancy. This data has helped fuel investor confidence in AI startups that have gone on to raise mountains of cash. Data alone will not completely solve the ecosystem’s problem, but improved visibility into performance metrics and valuations can reduce the friction in secondary transactions and provide more exit routes. For this to happen, we must be ready
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