Meta’s fact-checking pivot may fuel disinformation and threaten hundreds of jobs in Africa
Meta’s decision to replace its longstanding fact-checking model with community notes on Instagram, Facebook, and Threads will significantly impact content moderation companies, including Pesacheck and business outsourcing firms. It could mean job losses for hundreds of contractors in Kenya, Nigeria, Egypt, and South Africa, and potentially affect capacity to combat misinformation, at least three civil rights activists, managers at business outsourcing firms and media professionals told TechCabal on Wednesday. The decision to drop fact-checking is also a huge blow to Africa, where misinformation thrives. In Kenya, WhatsApp, Facebook, and Instagram have million of users who face unchecked exposure to manipulative content without fact-checking. Governments across the content have weaponized disinformation for over a decade, which could be a crisis soon, Emmanuel Chenze, the COO at African Uncensored, told TechCabal. “Tanzania has elections this year, Uganda next year, and Kenya is coming right after that in 2027,” Chenze said. “Think of the mess that social media was in 2017 when we didn’t have any of the fact-checking initiatives that exist now. Those Real Raila videos, remember them? We had Cambridge Analytica here running all manner of psyops, and there was no machinery to counter them.” Cambridge Analytica’s psyops, doctored videos like “Real Raila,” and algorithmic amplification of propaganda. Fact-checking initiatives helped counter this mess, Chenze said. The decision to stop the current moderation model was announced on January 7 and was in response to claims that the fact-checking program, launched in 2016 “too often became a tool to censor.” This shift could result in job losses for African content moderators who monitor Meta’s platforms for harmful content. It may also translate to financial losses for fact-checking firms. “We’ve seen this approach work on X—where they empower their community to decide when posts are potentially misleading and need more context,” Meta, which has over 3 billion social media users across its platforms, said on Wednesday. “People across a diverse range of perspectives decide what sort of context is helpful for other users to see.” Adopting community notes will impact Meta’s financial relationships with content moderation partners. While the company has worked with third-party fact-checkers to address misinformation, it has not disclosed the financial details of these partnerships. “There are other implications as well, like fact-checking organizations, especially in Africa, losing a major source of funding and not being able to do the work they have been doing this last few years,” Chenze added. His organisation, African Uncensored, has been involved in fact-checking in Kenya. Firms like PesaCheck may struggle to sustain operations, which could limit their ability to address harmful content and safeguard public discourse. PesaCheck’s 2023 funding was led by Meta at 43%, followed by Tiktok, which contributed 18%. In 2022, Meta contributed 53.4% of PesaCheck’s total funding. PesaCheck did not respond to requests for comments on this story. Meta did not immediately respond to request for comments. The social media giant also funds fact-checkers like U.K.’s Full Fact, which received $461,000 in 2023, making it a key contributor. Meta has over 100 fact-checking partnerships globally, meaning it is spending totals tens of millions of dollars annually. Fact-checkers employ trained moderators who are key in addressing nuanced issues. They risk losing their jobs as Meta pivots to a user-driven system, a Nairobi-based media company owner who wished not to be named so he could speak freely told TechCabal. Content will depend on organic reach or paid promotions, which Meta heavily filters for anything political. It’s a grim outlook for a region already battling manipulation, Chenze argued. “There’s also the priority ranking the algorithm gave content from these organisations and their platforms,” Chenze stated. “That’s now gone, and they’ll either have to rely on organic reach or pay up Meta to be promoted. And even for such promotions, the content will be subjected to Meta’s restrictions.” Although the community notes system will first launch in the U.S., Meta’s content moderation has had mixed results in Africa with multiple legal actions. Over 180 ex-moderators claim they flagged violent content for little pay, without psychological support from their employers. Despite severing ties with business outsourcing firms Sama and Majorel in Kenya in 2023—both of which confirmed they were exiting content moderation—Meta relies on them for AI labeling. PesaCheck and Africa Check, both non-profits with offices in Kenya, fact-check information published online and on social media platforms. Adopting community notes will impact Meta’s financial relationships with content moderation partners; while the company has worked with third-party fact-checkers to address misinformation, it has not disclosed the financial details of these partnerships. Before halting content moderation, Sama disclosed the practice accounted for less than 4% of its business. Sama now specialises in AI data labelling for tech giants like Microsoft, Meta and Walmart. This helps social media companies flag harmful content online. Sama and Majorel have been criticised for worker treatment and compensation. 184 ex-Sama content moderators sued Sama for unfair dismissal and claimed that the outsourcing firm failed to protect them from the psychological toll of flagging violent content. Kenya is pursuing a law to hold outsourcing firms liable for employee claims. Meta has also been sued over content moderation lapses that allegedly fueled ethnic violence in Ethiopia. The petitioners, represented by Mercy Mutemi of Nzili and Sumbi Advocates, want a ban on harmful content recommendations and a $1.6 billion victim compensation fund from Meta. The shift to community notes mirrors X’s 2023 approach and appears more like a political overture to the incoming Trump administration than a strategic policy change. Meta’s changes are limited to the U.S., leaving the European Union’s stricter regulatory environment untouched. Under the 2023 Digital Services Act, platforms like Facebook must address illegal content or risk fines of up to 6% of global revenue. The European Commission, which has been investigating X’s community notes system since late 2023, said it is closely monitoring Meta’s compliance. Meta plans to phase in community notes in the U.S. over the coming months and has promised updates to the system throughout the year.
Read MoreKenya seeks public participation on crypto bill after IMF warns against risk
Kenya’s National Treasury has opened a public consultation on a new bill and policy aimed at regulating cryptocurrencies and virtual asset companies like crypto exchanges. This move comes as the International Monetary Fund (IMF) warned that Kenya is falling behind in regulating the industry. The proposed bill could solve a legal grey area that has prevented banks from engaging with cryptocurrencies in the country. It also presents an opportunity for crypto exchanges like Binance, which operate without formal regulatory approval. “The policy and the bill provide a framework for oversight and development of the virtual assets ecosystem,” the National Treasury said in a notice. The National Treasury is undertaking public participation on the policy and the bill and hereby invites members of the public to submit their views.” Kenya’s financial sector is regulated by the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). While the CMA has softened its stance on virtual assets, the CBK has maintained a firm position, repeatedly warning banks against engagement with virtual currencies. The IMF has advised Kenya to implement a clear regulatory framework for virtual assets, citing concerns about risks related to money laundering and terrorism financing. The IMF’s report also highlights the absence of specific laws to govern cryptocurrencies and the failure of regulators to issue formal, binding policies on digital assets. As a result, crypto exchanges have been unable to obtain operating licences, leaving users exposed to potential fraud and financial losses. This lack of regulation has also aided bad actors, with no clear oversight on how to manage or monitor the growing digital assets market. According to Chainalysis, 4 million Kenyans hold crypto assets. Without regulation, it is difficult to establish the true value of digital assets, which could run into millions of dollars. “There is currently a significant degree of uncertainty and a lack of consensus among authorities regarding the actual size, structure, and risks of the Kenyan crypto assets market,” IMF said. With public participation about to start, all eyes will be on how the government navigates the digital assets market.
Read MoreWhat fintech apps do young Nigerians use to manage money?
Savings are a big deal in Nigeria, with soaring inflation and a cost-of-living crisis. For young Nigerians, balancing tough macroeconomic conditions with ambitious financial goals requires innovative and accessible ways to manage money. Enter fintech startups—sleek apps that promise more flexibility and control than traditional banking systems. But which fintech apps are actually making a difference for young people, and why? TechCabal spoke to ten young Nigerians who shared their favorite fintech tools and how these apps are helping them stay financially afloat amid uncertainty. Kunle* 25 — Content Writer Kunle uses PiggyVest for its convenience. ‘It is more flexible for saving and withdrawing,’’ he says. He also uses Pocket (integrated into PiggyVest) for charge-free transfers, calling the combination of both apps a seamless solution for managing his finances. Chidi* 24 — Marketing Strategist Chidi uses a range of bank apps to manage his money. “I mostly use VFD, Kuda, or, occasionally, GT Bank—GT feels like a family bank for me. VFD offers ease of service and responsive customer support,” he shares. “Plus, they give me monthly interest on my balance, so I don’t keep savings elsewhere.” To manage his expenses, Chidi tracks his spending with Wallet, an app that helps him monitor both expenses and expected credits. For investments, he combines Bamboo and Risevest. “Bamboo lets me choose which companies to invest in—it’s a bit riskier and requires more financial know-how. Risevest, on the other hand, is more beginner-friendly with pre-selected portfolios,” Chidi explains. Erivic 25 — Comic Book Artist and Creator For Erivic, Cowrywise is the perfect platform for disciplined saving. “It consolidates all my investment portfolios in one place,” he says. He also uses Yellowcard, a cryptocurrency trading app, which he appreciates for its beginner-friendly interface that makes navigating the world of crypto easier. Daniel 27 — Founder, SpaceBar Africa Since 2020, Daniel has relied on Chaka, an investment app that provides access to Nigerian and U.S. stock markets. “It’s very easy to use, and their customer service is always responsive,” he says. He also saves with Rainy Day, a dollar cooperative app. Seyi 25 — Thumbnail Designer Seyi uses Geegpay to receive payments in U.S. dollars from international clients. “It gives me a virtual USD account, making it easy to receive payments quickly,” he says. He also appreciates the ability to convert these funds into naira at competitive rates and withdraw them to his local account. For payments in pounds, Seyi uses Grey. “Having access to a virtual GBP account makes receiving payments from UK-based clients seamless,” he explains. To save, Seyi turns to PiggyVest. “It’s helped me build disciplined savings habits with its automated features. The ability to set specific savings goals or lock funds for a set period helps me avoid impulse spending.” Louis 32 — Marketing Specialist Louis turned to Opay during the 2023 cash crunch and hasn’t looked back. “I deposit my salary on the app and use it for all my spending. The user interface is beginner-friendly and efficient,” she says. To keep her finances in check, she uses MyMoney, an app that categorizes income, expenses, and transactions for better visibility. Adora Ayodeji 21 — Student For Adora, Opay is her go-to for everyday transactions. “It’s reliable and works well for my day-to-day needs,” she says. To track her spending, she uses Track Wallet, an app that helps her monitor and manage her daily finances. Sophia 27 — Front Desk/ Administrative Assistant Sophia has been using Optimus Bank for the past two years. “The higher interest rate compared to traditional banks has really helped me develop better savings habits,” she says. She also uses PiggyVest to target savings, set savings goals, and save with friends virtually. “PiggyVest has been a game-changer for me,” she adds. Bamidele Emmanuel 22 — Social Media Manager Though Bamidele isn’t a fan of saving unless it’s for specific goals, he uses fintech apps to manage his money. For dollar-based income, he relies on Grey to prevent overspending. He also uses Opay and Alat by Wema for saving, while Kuda helps him save larger amounts, like ₦200k. Timileyin 24 — Journalist. Timileyin uses Opay primarily to manage his disposable income. “Its seamless transfer system works perfectly, even with fluctuating network strength,” he says. He also relies on Fairmoney for loans. “It’s a licensed microfinance bank with decent customer service—I’ve only had one issue, but it was quickly resolved.” Looking ahead As Nigeria’s digital ecosystem evolves, more young people will use fintech apps for financial solutions. These tools are not just reshaping how young Nigerians save and spend but also paving the way for a more financially literate generation. Whether it’s PiggyVest for saving, Grey for international payments, or Bamboo for investment, young Nigerians increasingly rely on digital platforms to manage their finances more effectively and independently.
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👨🏿🚀 TechCabal Daily – It’s going down in Egypt
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF We’ve got one final ask this week. At the end of this newsletter is a button that will help us know if you liked, loved or are indifferent about this edition of TC Daily. Take a second and tell us what you think. Nigeria to announce new telecom tariffs today 25 African startups to watch in 2025 Egypt’s headline inflation decelerates for the second consecutive month World Wide Web 3 Opportunities Telecoms Nigeria to announce new telecom tariffs today GIF Source: Tenor Starting today—Friday, January 10, 2025—Nigerians will pay more money for voice, SMS, data, and other telecom services. In December 2024, the country’s communications regulator gave telecoms the green light to increase tariffs for the first time in 11 years. For consumers, the effect is clear and simple: they will have to increase their budgets yet again in a country that has seen headline inflation rise from 29.9% to 34.6% between January and November 2024. And for the telcos, the news offers respite. While businesses in different sectors have increased their prices to adjust for crippling inflation, telcos have kept their prices unchanged in 11 years, despite soaring diesel costs for powering cell towers, rising staff overhead, and forex volatility. Airtel and MTN Nigeria jointly lost $484 million in H1 2024 after Nigeria devalued the naira. Compared to 2023, both telcos lost $296 million. It meant that all dollar-denominated loans effectively doubled overnight, straining their finances further. A company losing this much money will prioritise survival over improving its services or expanding infrastructure. The telecom sector, which employs over 15,500 people and contributes 13.5% to Nigeria’s GDP, cannot sustain three consecutive years of losses without risking collapse. Without consistent investment, service quality will deteriorate, affecting millions of Nigerians who rely on their services daily. The tariff hike is a hard pill to swallow for many. It’s a tough, but necessary call. Startups 25 African startups to watch in 2025, according to VCs GIF Source: Pinterest According to Scott Kupor’s Secrets of Sand Hill Road, venture capital firms typically invest in early-stage startups for one of three reasons: an exceptional founding team, a product poised for significant market impact, or a solution to a massive market need. We wanted to find out which startups meet these criteria for Africa-focused VCs. We took our questions to these same experts—general partners at eight Africa-focused VC firms—who work closely with founders and entrepreneurs who pitch them regularly. Carbin Africa is one of the startups that these VCs say fits that mould. Its AI-powered platform helps car dealers and agents find cars faster, with real-time access to over 1,800 listings. With an 8x revenue boost in 2024 and backing from 54Collective, Carbin shows strong market demand and experienced leadership. In March 2024, Carbin’s gross merchandise value (GMV) crossed $1 billion after selling over 80 cars on its platform. Valify is another. The Egyptian RegTech provides digital identity solutions to financial institutions, telecoms, e-commerce platforms, and fintechs. With co-founders Omar Abdelwahed and Ibrahim Eid’s expertise in product development and finance, Valify is positioned to lead in the growing digital identity space. One agritech that shines on the list is Pullus Africa. The Nigerian agritech marketplace links smallholder farmers with commercial off-takers. It supports farmers with agricultural extension services while ensuring quality poultry supply for off-takers. Having raised over $150,00 in funding, Pullus is addressing key challenges in the agricultural supply chain. While we’re eager to keep these profiles going, we’d love for you to check out these startups and read these VCs’ rationale on why they are great prospects. Read about the 25 startups to watch in 2025. Economy Egypt’s inflation decelerates for the second consecutive month GIF Source: Tenor Yesterday, Egypt’s inflation decelerated for the second consecutive month. The country’s headline inflation for December 2024 slowed to about 24.1%, down from 25.1% in November. December’s figure was the lowest since 2022. The latest inflation rate has raised hopes of the first interest rate cut since 2022. The Central Bank of Egypt has held its interest rates since March 2024. Over the past two years, the country has struggled with its economy. A severe shortage of dollars restricted imports, leading to port congestion and disrupting local industries. As a result, prices for many essential foods surged well beyond the overall inflation rate, which hit a record 38% in September 2024. The Central Bank of Egypt sought to rein in inflation by raising interest rates by 8% in 2024. The Egyptian government also agreed to cost-cutting measures, including the gradual removal of fuel subsidies and divestment from state-owned enterprises. The government recently sold 30% of its stake in state-owned United Bank. These measures were not only crucial for controlling inflation but also essential prerequisites set by the International Monetary Fund to support the struggling economy. The IMF signed an $8 billion loan deal with the government in 2024, with the country on track for the disbursement of a $1.2 billion tranche of the loan. CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $93,668 – 0.38% – 3.94% Ether $3,251 – 0.13% – 11.56% Sui $4.85 + 1.46% + 10.57% Solana $189.24 – 2.59% – 8.73% * Data as of 05:10 AM WAT, January 10, 2025. Opportunities The SusHi Tech Challenge 2025 is now open for applications from startups that are tackling the global challenge of “realizing Sustainable cities with High Technology (SusHi). With a grand prize of JPY10 million ($65,000), SusHi is offering business support for collaborations with government agencies and other organisations as well as pitching opportunities. Apply by January 15. Applications are open for the CcHub-Mastercard Foundation Edtech Fellowship 2025 (Cohort III). This program offers African edtech startups $100,000 in equity-free funding, expert mentorship, and access to an investor network. Eligible startups must focus on education solutions in areas like K-12, tertiary education, or vocational training, with verifiable users. Female founders are encouraged to apply. Don’t miss this chance
Read MoreNew telecom tariffs expected to be announced on Friday
Starting Friday, January 10, 2025, Nigerians will pay more for voice calls, SMS, internet data plans, and other telecom services. The Nigerian Communications Commission (NCC) will announce the tariff hike after over a decade of pressure from telecom operators, who have argued that rising inflation and the devaluation of the naira have made current rates unsustainable. Two people familiar with the matter said the hike will be announced on Friday following months of negotiations between telcos and the regulators. The long-awaited price increase was confirmed by Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, during a stakeholders’ meeting on Wednesday. While he acknowledged the need for tariff adjustments, he also reassured the public that the hike would not reach the 100% increase some telecom operators had previously sought. Operating costs for telecom companies, Tijani explained, have surged by more than 300% over the past 18 to 24 months. “It will not be by 100 percent,” Tijani said. “The NCC will soon come up with a clear directive on how we will go about it,” Tijani said. Telecom companies have been pushing for higher tariffs since at least May 2022, when they proposed a 40% increase. If adopted, this would raise the cost of a phone call from ₦11 per minute to ₦15.40, SMS charges from ₦4 to ₦5.60, and the price of a 1GB data bundle from ₦1,000 to ₦1,400. Operators have argued that inflation and naira devaluation have made it increasingly difficult to maintain service levels. However, some operators are advocating for a gradual increase, recognizing the financial burden such price hikes could place on consumers. “We understand the need for a phased approach,” said Dinesh Balsingh, CEO of Airtel Nigeria, in an exclusive Op-ed to TechCabal. “While the tariff adjustments are necessary, we are committed to supporting our customers through gradual changes. This will allow us to reinvest in infrastructure, expand coverage, and enhance the overall service experience. Our aim is to ensure that Nigeria stays competitive in the global digital economy.” While the tariff increase is designed to help operators keep pace with rising costs, the government is also taking steps to ensure that telecom infrastructure investment is not left entirely to private companies. The federal government’s ambitious plan to deploy a 90,000km fibre optic network across the country is expected to begin in Q2 2025, aiming to expand broadband access to all 774 local governments. For Minister Tijani, the dual focus on tariff increases and government-led infrastructure investment is essential to ensuring that all Nigerians have long-term access to reliable, high-quality telecom services. “We cannot leave infrastructure development solely to the private sector,” Tijani stated. “The government’s fibre optic project will ensure that we lay the foundation for better, more affordable services across the country.” For Tijani, the telecom tariff increase is being made to ensure people have access to quality service. However, the government will no longer leave infrastructure investments solely in the hands of the private sector. The 90,000km fibre cable project planned by the federal government to be deployed across the 774 local governments in the country is expected to kick off in the second quarter of 2025.
Read More25 startups to watch in 2025, according to Africa-focused VCs
TechCabal spoke to eight Africa-focused VCs—who have between them over 100 portfolio companies—to identify startups to watch in 2025. The list relies on expert opinions from investors to identify startups with high growth potential, significant market disruption, and a proven product-market fit. We spoke to Hoaq, Madica Ventures, EchoVC, Ventures platform, Flourish Ventures, 54Collective, Sunny Side Ventures, and Verod-Kepple. In building this list, these VCs focused on startups with founders with demonstrated industry knowledge, a keen understanding of the market, and capacity for growth. Here are the 25 startups that made the list: 1. Carbin Africa Carbin Africa is a Nigerian digital marketplace for used cars. The company offers an AI-powered marketplace that provides real-time access to 1,800 unique car listings across all dealerships. The company serves car dealers and car agents who need a repository of cars and swift turnover. Launched in 2023 by Fawaz Abdul and Femi Oriowo, Carbin Africa has raised over $300,000 over two rounds, including an undisclosed seed round from 54Collective. The company claims to have increased its monthly revenues by 8x in 2024. Investor’s rationale for nomination: Investors spoke to TechCabal selected Carbin because of the founders’ industry expertise. Co-founders Femi and Fawaz bring complementary experience from leading automotive companies—Bolt and Cars45—combined with firsthand experience as auto dealers and agents. 2. Vallify Founded by Omar Abdelwahed and Ibrahim Eid in 2018, Valify is an Egyptian RegTech that provides digital identity solutions to financial institutions, telecommunications companies, e-commerce platforms, and fintech companies. Investor’s rationale for nomination: Valify stands out due to its founders’ complementing backgrounds and in-depth knowledge the regional financial ecosystem. Omar has a background in product development and Ibrahim is experienced in entrepreneurship and finance have created a resilient leadership team that deeply understands the challenges and opportunities in digital identity. Omar and Ibrahim also bring years of experience in building market-leading solutions. Omar and Ibrahim years of experience in creating market-leading before founding Valify also comes to the fore as an advantage. 3. TUNL Tunl is a South African parcel shipping platform that connects local merchants and manufacturers with US, UK, and Europe consumers. Tunl streamlines the complex export process by providing comprehensive end-to-end services including parcel aggregation, automated shipping, customs brokerage, and final mile delivery. Founded in 2021 by Matthew Davey and Craig Lowman, TUNL raised a $1 million pre-seed fund in 2023. Investor’s rationale for nomination: TUNL’s founders have deep understanding of both e-commerce and international logistics. The founding team brings exceptional expertise: CEO Matthew’s experience in establishing European distribution networks for South African products, combined with COO Craig’s background as a global e-retailer, creates a blend of practical knowledge and strategic vision. 4. Pullus Africa Pullus is a Nigerian agritech marketplace that connects smallholder farmers with commercial off-takers. Launched in 2022 by Opeoluwa Fayomi, Pullus empowers farmers through comprehensive agricultural extension services, ensuring their poultry meets industry standards while providing them with reliable market access. The platform’s integrated approach solves two critical challenges: it gives smallholder farmers a dependable distribution channel while providing off-takers with consistent, quality poultry supply. The startup raised a $150,000 pre-seed round in 2023 and an undisclosed seed in January 2024 round. Investor’s rationale for nomination: Opeyemi’s deep understanding of the ecosystem gives a unique advantage for Pullus. Her background as a poultry aggregator gives her firsthand insight into the challenges faced by both farmers and off-takers. 5. Tanel Health Only 14% of employees in Tunisia have health coverage. Tanel Health, a Senegalese digital insurance platform provides an integrated digital ecosystem that connects employers, employees, and healthcare providers. Founded by by Mouhamed Ndoye & Makhtar Diop in 2020, Tanel Health has raised $575,000 since its inception. Investor’s rationale for nomination: Tanel offers a comprehensive solution to a complex problem. By digitising previously manual insurance processes, the company isn’t onlyt improving efficiency but also expanding healthcare access to underserved segments of the population. Co-founders Mouhamed and Makhtar bring deep market understanding and proven execution capabilities to Tanel’s mission. Under their leadership, the company grew significantly in the total amount of insurance premiums it wrote in 2024, driven by strong adoption from both employers and employees. 6. Apollo Launched in 2016 by Eli Pollak, Benjamin Njenga, and Earl St Sauver, Apollo helps farmers with modern farming in Kenya and the Gambia. The company uses agronomic machine learning, remote sensing, and mobile technology to access credit, quality farm inputs, and customized advice, enabling farmers to use advanced technologies for their farming methods and increase their profits. Apollo has raised over $88.5 million since its launch. Investor’s rationale for nomination: African climate tech startups are pulling in more money than ever, overtaking fintech as the continent’s hottest investment sector. By September 2024, these startups had raised $413.9 million, making up a third of all startup funding in Africa. The shift shows investors are betting big on companies that tackle climate change while solving everyday problems, and Apollo is well-positioned to continue meaningful growth and impact in 2025. 7. Zone Launched in 2022 by Obi Emetarom and Wale Onawunmi, Zone is a regulated blockchain network that enables payments and issuance of digital currencies. The company’s Layer-1 Blockchain network digitises fiat payments and enables the transition to digital currencies. Zone raised $8.5 million in March 2024. Investor’s rationale for nomination: Zone’s decentralised approach has the potential to redefine how payment networks operate, not just in Nigeria, but globally. 8. Motherbeing Motherbeing is an Egypt-based health tech startup that empowers Arab women through educational content, an Arabic AI chat assistant, and diagnostic services tailored to their needs. The platform offers culturally relevant, evidence-based sexual and reproductive health education to women across the MENA region. Motherbeing was launched by Nour Emam, Yousef Elsamaa, and Ahmed Abuo Hashem in 2022 and is raising a seed round. Investor’s rationale for nomination: Motherbeing has a strong advantage due to the lack of similar solutions in this market. The platform’s rapid user growth, high engagement rates, and increasing paid subscriber base demonstrate strong demand, positioning the
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👨🏿🚀TechCabal Daily – The road to recovery
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Who’s really paying the price in Nigeria’s cash crunch? Here’s a guess, it ends with “U”. PoS agents are already king when it comes to cash access in Nigeria, and new CBN policies are driving up withdrawal fees—especially in Lagos. With bank ATMs sidelined and withdrawal charges uncapped, Nigerians are paying more to get their money. In many places across Lagos, you could pay up to 3% of the amount withdrawn in fees. Check out how these fees vary across locations in Lagos. GoKada filed for bankruptcy Should gig drivers consider alternative fuel sources? Ethiopia to launch its stock exchange Is 2025 the year we see Banque du Caire’s IPO? World Wide Web 3 Opportunities Startups GoKada filed for bankruptcy Image Source: GoKada In October 2024, Nigerian logistics startup GoKada filed for Chapter 11 bankruptcy protection. The company, which raised $5.3 million in a 2019 Series A funding round, owes $1.8 million to its 20 largest creditors. This filing allows GoKada to restructure its debts while continuing operations, avoiding immediate liquidation. According to an email from CEO Olutosin Oni to investors, GoKada struggled to stay alive throughout 2024. While the company remains operational, it marks a drastic shift in fortunes for Nigeria’s bike-hailing pioneer. Founded in 2018 by Deji Oduntan and Fahim Saleh, GoKada built one of the most recognisable brands in a space with competitors like ORide and Maxng. The tide turned for the sector in 2020 when Lagos banned commercial motorcycles, nuking the opportunity for enterprising businesses. GoKada transitioned to logistics, switched to an asset-light model by partnering with third-party providers, and laid off staff to reduce costs. Leadership also changed frequently, with Oni becoming CEO in 2022 after a series of transitions that included the tragic loss of co-founder Fahim Saleh in 2020. Despite attempts to adapt, GoKada’s financial struggles persisted. A potential acquisition by logistics firm Kwik in 2022 didn’t materialise, and the filings showed revenues of $268,779 in 2023 and $118,988 in 2024 (up to October 2024). While the Chapter 11 filing offers a lifeline, GoKada’s road to recovery will require grit. Ride-hailing Should gig drivers consider alternative forms of fuel? GIF Source: Tenor Nobody likes a petrol price hike. It raises transport costs, and for some, affects the cost of generating power supply. But spare a thought for gig drivers, who deal with petrol economics daily. In South Africa, petrol prices surged twice in December 2024 and January 2025, driven by high global oil prices and a weak rand. Gig drivers in South Africa now pay R21.59 ($1.14) per litre, with prices expected to rise again in February. In response, MyBroadBand published an article exploring the cost-saving potential of switching to liquefied petroleum gas (autogas) vehicles. They found that a gig driver travelling 20,000 km per year could save R978.59 ($52) on fuel costs. However, the upfront cost of converting a petrol car to LPG is still a major barrier. The situation in Nigeria is not much different. After petrol prices spiked from ₦145 to over ₦1,000 ($0.67) within eighteen months, gig drivers started looking into compressed natural gas (CNG) as an alternative fuel. We’ve previously written about the growing support for CNG in Nigeria and the cost of converting a petrol car to CNG. It will cost between ₦750,000 ($486) and ₦2.5 million ($1,620) to retrofit CNG engines in your vehicle. Compared to petrol, CNG costs ₦230 ($0.15) per litre. A gig driver with a Toyota Corolla travelling 20,000 km a year would spend ₦343,000 ($223) on CNG refuelling, while the same distance with petrol would cost ₦1.5 million ($968). With the cheaper price of CNG, drivers can save even more as they travel longer distances. However, what are the risks of these retrofitted cars? There’s no conclusive answer to this question. Without wider adoption, we cannot know how safe these retrofitted engines are. Economy Ethiopia to launch its stock exchange Image Source: Kenyan Wallstreet On January 10, 2025, Ethiopia will open the Ethiopian Stock Exchange (ESX), its domestic bourse. The ESX will become Africa’s 30th stock exchange, and CEO Tilahun Kassahun has expressed optimism to list 50 companies on the bourse in five years—either through an IPO or “by introduction.” Ethio Telecom, the largest telco in the country, will be the first company to list on the exchange, selling 100 million shares for $2.54 each. Through the initial public outing (IPO), the government, which majorly owns the telco, is expected to raise 30 billion birr ($234 million). It is part of the government’s plan to open up previously state-controlled industries and provide a capital injection into Ethiopia’s underfunded market. Talks for a stock exchange started in 2021 after a capital markets bill was presented to lawmakers to establish a bourse through a public-private partnership. While the bourse will provide a regulated space for domestic equity funding, it is launching into a market that has already been introduced to investing. Global wealth-tech platforms like Avatrade allow Ethiopians to buy foreign stocks—so this ticks off the “lack of education” problem. However, Ethiopia is grappling with inflationary pressures and an increasingly strained fiscal environment. Corporations may be open to raising capital through public offerings, but the macroeconomic squeeze could also limit retail investor participation, reducing the pool of available funding. The success of the exchange will hang on a delicate balance between attracting corporates and engaging retail investors. We’ve seen from successes like the Nigerian Stock Exchange (NGX), which recently played a crucial role in helping banks raise money in a high inflationary environment, that the economic situation in the country does not paint the full picture. The ESX will likely rely on making its platform easy to use and accessible to retail investors. But first, its biggest task: getting companies involved. Banking Is 2025 the year we see Banque du Caire’s IPO? Image Source: Banque du Caire As Ethiopia prepares to launch its stock exchange, Egypt is set to list the
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₦3,000 for ₦100,000: Here is how much Nigerians pay to withdraw cash from POS agents
Despite the flurry of policy changes from Nigeria’s Central Bank in late 2024, the financial industry consensus is clear: commercial banks have lost the cash arms race. Once-dominant banking channels like ATMs and over-the-counter withdrawals have been eclipsed by banking agents, a.k.a POS agents as the most reliable way to access cash across the country. In December, the CBN imposed withdrawal limits on POS agents and threatened penalties for banks found selling mint notes to currency dealers. However, these measures have had limited impact in curbing the reliance on POS agents. Instead, many POS agents responded by raising withdrawal fees—charges which, notably, remain uncapped by the CBN. This fee hike trend has been particularly noticeable in parts of Lagos, where withdrawing cash has become more expensive for customers. In interviews with over 20 POS agents and customers, a clear picture emerged: withdrawal fees vary widely depending on the location. While some agents have increased their charges, others continue to offer the same rates as before. The chart below illustrates these variations: *Click on the dropdown in the image to see withdrawal charges for different amounts.
Read MoreLogistics startup Gokada filed for Chapter 11 bankruptcy protection in 2024
According to regulatory filings in Delaware, Gokada, one of Nigeria’s most prominent last-mile delivery companies, filed for Chapter 11 bankruptcy protection in October 18, 2024. Chapter 11 allows an organisation to work out a plan to repay creditors over time, reducing the amount owed or extending the repayment period. This way, the company does not have to liquidate its assets to pay debts. Gokada’s chapter 11 filing follows unsuccessful efforts to raise new funding, including a 2023 campaign on GetEquity, where it attempted to raise $750,000 at a $10 million valuation from retail investors. Despite raising $5.3 million in a 2019 Series A round, Gokada has struggled financially. Per its October filing, the company’s total liabilities are $5.2 million—it owes $1.8 million to 20 of its largest creditors who are not insiders— on assets worth $560,000 ($64,000 in cash.) In 2024, Gokada stated that its gross revenues at the time of the filing were $118,988, lower than the $268,779 it reported in 2023. “As a result of not closing the proposed funding, Gokada has remained on the brink of shutting down for the entirety of 2024,” Olutosin Oni, the CEO of the eight-year-old company, wrote to investors in an email seen by TechCabal. Oni, named CEO in 2022, noted that naira depreciation made profitability elusive. “Significant time and effort has been put into making Gokada profitable over the years unfortunately with the severe decline in the value of the Nigerian Naira, we have not yet reached that goal,” Oni told investors in the email seen by TechCabal. Gokada and Oni declined to comment on any part of this story. 7 bold predictions for e-commerce and logistics in 2025 as inflation, AI, and global shifts reshape the industry Despite the grim outlook, Gokada is not giving up. The company will use Chapter 11 provisions to restructure its debts and attempt a financial turnaround. While the company has been in significant debt for years, its lead investor, Rise Capital, has been supportive. According to Oni, Rise Capital has been “willing to fund the company independently in order to pay off Gokada’s creditors and keep it operational. Unfortunately, they are no longer able to single-handedly shoulder the economic burden.” October’s bankruptcy filing marks the latest chapter in a journey of restructuring and pivoting. Founded by Fahim Saleh and Deji Oduntan, Gokada gained traction as a bike-hailing service, helping commuters navigate the notorious Lagos traffic jams. By 2019, the company had completed about 1 million trips and raised $5.3 million in Series A raise funding. The company’s financial troubles appear to have begun shortly after announcing its Series A raise. Deji Oduntan resigned as CEO and was replaced by Saleh and Ayodeji Adewunmi, who also left the company in 2019. Tosin Oni became CEO in 2022. Beyond the leadership upheavals, the Lagos state government added to Gokada’s troubles in early 2020 after it banned bike-hailing startups from operating in 15 of the city’s 20 local government areas. It was a major blow to Gokada and several bike-hailing startups. Exclusive: Gokada pivots to an “asset-light model” as it looks to raise funding In the face of these setbacks, Gokada adapted. It laid off 70% of its staff and pivoted to logistics (Gsend) and food delivery (GShop). According to Oni, the layoffs were a response to a harsh macroeconomic environment, with the company prioritising efficiency as it navigated negative cash flow. By June 2020, Gokada was reportedly processing over $100 million in annualised transaction value and fulfilled over 1 million food and e-commerce delivery orders for 30,000 merchants on its platform. It also expanded its ride-hailing services to Abuja, Port Harcourt, Ibadan, and Ogun State, where commercial bikes were not banned. The business model continued to evolve. It went from owning a fleet of motorcycles to an asset-light model, connecting third-party logistics providers with delivery orders on its platform. The shift was intended to cut costs, reducing the financial burden of maintaining a fleet of expensive bikes. By February 2024, Gokada had fully embraced this asset-light approach, owning only 10% of the 5,000 bikes on its platform. Yet, reports of an acquisition by logistics firm Kwik, which never materialised, suggested the business still struggled. GoKada’s bankruptcy filing highlights a crucial lesson in the business world that cutting costs alone cannot guarantee survival. GoKada faces the daunting task of raising funding or finding an acquisition partner to survive.
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👨🏿🚀TechCabal Daily – Kenya’s bold move
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning What’s on your tech wishlist for 2025? In our latest feature, we asked Nigerians from diverse fields to share their dream tech items for 2025—if budget was no object. Curious to see what made the list? Dive into the full article here. P.S. Tell us what tech gadgets are on your wishlist by using the #TCDaily hashtag on X or responding to this email. We’ll publish the most interesting responses in TC Daily at the end of the week! Kenya’s Bold Move: Satellite ISP Fees Set to Skyrocket GT Bank inches closer to recapitalisation goals CBN reports a decline in ATM transactions World Wide Web 3 Opportunities Internet Kenya’s Bold Move: Satellite ISP Fees Set to Skyrocket Image Source: Starlink Kenya’s Communications Authority is shaking up the satellite internet landscape with a bold proposal to raise licensing fees for providers like Starlink—potentially increasing the cost of a 15-year license by 10x. The move, aimed at tightening regulations and ensuring technology neutrality, will raise concerns within the industry. While the CA claims the rules could boost oversight and open up opportunities for more infrastructure, smaller satellite ISPs will find the increased costs challenging. Starlink, the newest but biggest player in the space, is expanding rapidly in the country and will likely be able to pass that cost on to customers. However, its competitors, four of which have a combined 1,000 customers, may not have as much wiggle room. Yet, some companies will be pleased with the new proposals, like local telecoms companies. These new fees will mean threats to their dominance of internet services will need deep pockets. In August 2024, Safaricom wrote to the Communications Authority asking that satellite service providers should only operate in Kenya subject to partnering with an existing local licensee. It might not have gotten its wish, but these proposals definitely protect local players. Read Adonijah’s report on the proposed changes here. Banking GT Bank inches closer to recapitalisation goals Image Source: GT Bank On Tuesday, Guaranty Trust Bank (GTBank) took a notable step towards meeting Nigeria’s Central Bank (CBN) recapitalisation mandate. Its parent company, Guaranty Trust Holding Company Plc (GTCo Plc), raised ₦209 billion ($136 million) through a retail equity offer—a campaign aptly dubbed A Slice of Orange. The campaign, which generated significant buzz on social media, underscores the liquidity available in the Nigerian Exchange (NGX) to support such ambitious fundraising goals. Yet, despite the strong showing, the outcome fell short of GTCo’s ₦369 billion ($569 million) target, leaving a ₦162 billion ($105 million) gap. To bridge this, the bank plans a second fundraising phase, this time targeting foreign institutional investors. While the retail equity campaign showcased GTCo’s ability to engage the public and mobilise significant funds, falling short of the full target may signal challenges ahead. For one of Nigeria’s largest and most reputable banks, it raises the question: Why didn’t the marketing blitz achieve the desired result? Perhaps economic uncertainty or market conditions played a role, but the shortfall is notable given the scale of GTCo’s efforts and the strength of its brand. For the second phase, beyond meeting CBN’s mandate, GTCo has ambitious plans for the proceeds. Most of the funds will bolster GTBank’s capital base, but the bank also aims to expand operations, enhance product offerings, and drive innovation across its Banking and Non-Banking subsidiaries. As GTCo moves into the next phase, its ability to attract institutional investors and close the funding gap will be a critical test of its market confidence and strategy. Banking CBN reports decline in ATM transactions Image Source: Google ATMs in Nigeria are in sharp decline, with transactions falling by nearly 20% to ₦12.21 trillion ($8 billion) in H1 2024, according to the Central Bank of Nigeria (CBN). This isn’t just a Nigerian issue, it’s global. Last year, one insights firm reported that the total number of ATMs worldwide had been declining since 2021. Globally, banks and other financial institutions are scaling back on ATM investments, citing high operational costs, maintenance challenges, and evolving customer behaviours. In Nigeria, PoS agents have stepped in to fill the gap, creating a network of cash withdrawal points that are far more accessible and reliable. This shift became even more pronounced during the 2023 cash crunch, when bank-imposed limits on ATM withdrawals pushed customers to PoS operators. Fintechs like Paga and OPay fueled the trend, deploying thousands of PoS devices and making them an integral part of Nigeria’s cash economy. The CBN’s recent directives—forcing banks to load ATMs with cash and capping PoS agent daily limits at ₦1.2 million ($779)—may signal an attempt to rebalance the scales. But will it work? PoS agents, already critical to Nigeria’s financial ecosystem, are likely to pass on increased costs to customers, maintaining their stronghold. The broader question remains: Is the decline of ATMs a technological failure or a calculated shift by banks unwilling to maintain these costly infrastructures? With the ease and ubiquity of PoS machines, will Nigerians queue up at ATMs again, or is the cash economy permanently shifting to this new normal? Inspire to Excel The Inspire to Excel event is happening this Sunday! Mark your calendars for January 12th, 2025, at 2:00 PM, Oriental Hotel, Victoria Island, Lagos. Get ready for impactful pitches, actionable insights, and meaningful connections. Don’t miss this life-changing event! CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $96,207 – 5.24% – 3.25% Ether $3,348 – 8.89% – 15.04% Solana $196 – 9.10% – 15.28% XRP $2.31 – 4.22% – 7.08% * Data as of 06:10 AM WAT, January 8, 2025. Opportunities The SusHi Tech Challenge 2025 is now open for applications from startups that are tackling the global challenge of “realizing Sustainable cities with High Technology (SusHi). With a grand prize of JPY10 million ($65,000), SusHi is offering business support for collaborations with government agencies and other organisations as well as pitching opportunities. Apply by January 15.
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