Nigeria’s SEC cites due diligence delays in crypto licence freeze
Nigeria’s Securities and Exchange Commission (SEC) has delayed issuing new provisional licences to crypto startups under its Accelerated Regulatory Incubation Programme (ARIP), citing an additional layer of due diligence, its director general, Emomotimi Agama, said. The delay marks a setback for digital asset startups hoping for faster approval following the SEC’s December 2024 promise to speed up licencing. Speaking at a virtual stakeholder engagement hosted by the FinTech Association of Nigeria (FintechNGR) on Monday, Agama admitted to the slow pace and apologised to applicants. “Work has been going on underground. From the first batch of provisional licences [issued in August 2024], we have observed important issues we need to take care of,” Agama said. “Additional level of due diligence—what I call Level 3 due diligence—needs to happen before we can come out with the next set of provisional licences.” Agama, however, did not provide a new timeline for when licences would resume. He noted that gaps and challenges in the startup due diligence process still exist. The regulatory oversight of Nigeria’s crypto sector does not lie solely with the SEC. The commission is working closely with the Economic and Financial Crimes Commission (EFCC), the Nigerian Financial Intelligence Unit (NFIU), and the Office of the National Security Adviser (ONSA)—agencies with independent processes that the SEC “does not control,” according to Agama. Since issuing provisional licences to exchanges Quidax and Busha in August 2024, the SEC has not approved any new applicants. Scores of startups that submitted applications under ARIP in June 2024 are still working with the regulator to better understand compliance requirements and develop consumer protection safeguards in a sector often likened to the financial “Wild West.” The multi-agency co-ordination required for crypto regulation has significantly slowed the issuance of provisional licences, leaving many startups, particularly those awaiting the reopening of ARIP applications, stuck in regulatory limbo. These startups are expected to register with the SEC to legally operate within Nigeria’s digital asset space, yet the pathway remains unclear. While the need for tighter scrutiny to curb money laundering and terrorist financing is justified, there is also an urgency for the regulator to move faster. Agama said the collaboration is a value the SEC wants to adopt more fully to provide a solid crypto regulatory framework. But for now, crypto startups may be in for a long wait before achieving the regulatory clarity they seek. With the recent passage of the Investment and Securities Act (2025), signed into law by President Bola Tinubu—formally recognising cryptocurrencies as securities under the SEC’s jurisdiction—the groundwork for a more structured crypto ecosystem may finally be taking shape.
Read MoreGhana’s Affinity Africa wants you to carry a full-fledged bank in your pocket
Mobile money is so ubiquitous in Ghana people have little to no need for traditional banks. With a mobile money account—every major telecom player offers a ‘MoMo’ service—you can send and receive money, withdraw cash at vendor or agent outlets, even receive some interest if you leave your money in your wallet long enough, and run a small business comfortably. Kofi Dotse, a Ghanaian serial entrepreneur, told me he hasn’t entered a banking hall in several years. Dotse runs advertising and event agencies as well as a clothing line, and carries out or routes business transactions primarily through his mobile money accounts. A couple of weeks before our interview, he had to visit a bank branch in order to clear a car at the port. He spent about two hours in the banking hall. “There are a lot of people in Ghana today who don’t have bank accounts,” Dotse said, citing long queues and the snail pace of traditional banking services as a few reasons why. For a small subset of the population, the time cost of visiting a bank branch to open an account or carry out a transaction is negligible, but for many, “it is an opportunity cost,” said Tarek Mouganie, founder of Ghana-based Affinity Africa. “So every time they leave their place of work as a sole proprietor, revenue goes to zero.” Yet, while mobile money can ease the drudgery of traditional banking, Mouganie argues that, like traditional banks, it has its limitations: to open and verify an account might be less tedious but still requires physical presence at a mobile money outlet; there’s a 5,000 cedis (~$320) daily transaction limit for customers as a result of the licenses under which most operate; and customers pay transactions fees and levies when they use these services. Mouganie, who spoke to me from the UK where he’d just arrived to begin a much needed vacation from work, launched Affinity Africa to address these limitations and more. With its savings and loans license—the first to be granted by the Bank of Ghana in over ten years—the digital bank offers full-fledged banking services to its customers in Ghana. “We cover everything,” he said. “We have accounts on one end and we lend on the other end, and that’s how our business operates.” Leapfrogging doesn’t solve everything Half Ghanaian, Mouganie grew up in Kumasi, roughly 270 km from Ghana’s capital, Accra. He moved to the UK at 12 to study, and upon his return 13 years ago, found the difference in available and accessible financial services in both countries glaring. “What I noticed basically [was] that the banking system is broken,” Mouganie said. To fix its challenges, a lot of tech solutions have materialised over the years, but Mouganie said he found these solutions to be very siloed: here, payments; there, digital lenders or other fintech services, who take on one aspect of the broken system to try and fix. Mouganie said he wanted to build a holistic solution “not to just provide accessible products to customers but very importantly, affordable banking” to its customers. Around 2013, before it became Affinity Africa, the startup was first a microfinance bank, operating with a microfinance institution license, which, though it had its limitations, allowed Mouganie and his team to better understand who they were trying to serve. Before obtaining this license, Mouganie said he was trying to acquire a greenfield license, which would have enabled Affinity “build (its) operations from scratch.” But after fundraising from friends and family, the Ghana banking crisis of 2017 resulted in major regulatory changes that caused him to lose that license bid. Mouganie said he sold his four-bedroom house, raised more from friends, family, and former bosses to buy and launch the microfinance institution, then called PayFlex. The licensing process, which came to an end in 2020, took about four years, an effect of significant regulatory and supervisory measures the Bank of Ghana was instituting to strengthen the sector and protect consumers amidst volatile macroeconomic dynamics. Just before the COVID-19 pandemic lockdowns ensued, Mouganie said with pre-seed funding, they started to look into upgrading to a savings and loans license which would allow Affinity to manage any kind of transactions except FX-related ones. Mouganie said the process was “really rigorous” because, beyond its tech products, the regulator was trying to understand how the company was structuring its services to serve especially important demographics like micro-, small, and medium-sized enterprises (MSMEs). The savings and loans license was formally granted in March 2022 after COVID-19-related pauses were lifted, the first the Bank of Ghana has dispensed in over ten years, Mouganie said. “That’s when Affinity as a brand existed in the market for the first time.” The company obtained permission to launch its agency banking app in October 2022 and approval for electronic Know Your Customer (KYC), which enables fully digital online account opening via its mobile app, was granted at the end of December 2023, after another round of rigorous regulatory checks including for fail-proof fraud prevention and Anti-Money Laundering risk assessment. 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Read MoreEx-Interswitch and Microsoft employees are building AI-powered sales assistants for Africa
In Africa’s B2B sales ecosystem, where teams are more likely to manage deals with spreadsheets than sophisticated Customer Relationship Management (CRM) software, a new player is emerging. Revwit, a sales assistant designed specifically for African teams. Founded by Chinedu Ossai, Dayo Adekanmbi, and Damilola Aluede—former employees of Interswitch, Bolt, Microsoft, and the London Stock Exchange Group—Revwit is setting out to solve a familiar problem: B2B sales tools built for Western markets simply don’t work for African businesses. “If you’ve ever tried running a B2B sales team in Africa using spreadsheets or traditional CRMs, you already know the pain,” said Ossai, CEO of the company. “They weren’t built for how we sell, how our teams work, or the challenges we face.” Although local CRM companies like Simpu and Jamborow offer similar solutions, Ossai stated that Revwit—backed by venture capital firm Norrsken and Moses Sule, former VP at Flutterwave—is the only one specifically designed to help B2B sales teams streamline the entire process of finding, managing, and closing deals. With firsthand experience leading B2B sales efforts, Ossai and Aluede have together closed over $10 million in deals as both frontline sellers and sales leaders. Their journey has shown them how capable African sales professionals are, yet how often they’re hindered by bloated, expensive tools that fail to reflect local realities. Unlike traditional CRMs that require weeks of onboarding and hefty subscriptions priced in US dollars, Revwit is lightweight, easy to set up, and priced in local currencies—starting with Nigeria’s naira and soon adding support for Kenya’s KES, South Africa’s ZAR, and Ghana’s GHS. Revwit acts like an AI-powered assistant rather than a traditional CRM. Sales teams simply sign up and connect their email. From there, the platform automatically imports contacts and sales conversations, organizing them into a trackable, customizable pipeline. The tool pulls lead data directly from forms, calendar invites, and emails—eliminating the hours that sales reps typically spend manually entering information. Then, using AI, Revwit enriches that data, tapping into a global dataset of over 200 million contacts and 20 million companies. This type of smart automation has long been available in developed markets through tools like Zoho and Salesforce. However, it’s rarely accessible to African teams without relying on costly consultants or complex integrations. For example, setting up Zoho in Nigeria typically requires hiring technical experts, which can be expensive and may take several weeks. 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The company launched a minimum viable product (MVP) in November 2024, and over 200 startups and professional service teams in Nigeria, around Africa, the US, and Canada already use the tool, managing over $800 million in active deals. Napa Onwusah, CEO of Placidcode, whose company was among the first to test Revwit, said they are able to update leads automatically, freeing up time to focus on customers. “Revwit is perfect for where we are as a company,” said Onwusah. “We used to track deals in spreadsheets, but switching to Revwit has improved pipeline management. Now, we have full visibility and better insight,” Nadine, Pre-Sales Manager at Woodcore, which also tested the product, said. The platform also supports personalized bulk email outreach directly within the system. This allows reps to maintain relevance and context in their messaging without the usual time-sink of writing emails from scratch. Beyond just lead capture and email outreach, Revwit combines all the
Read MoreEquinix to invest $140 million to expand internet access in Southern Nigeria
Equinix, the global data center provider that acquired Nigeria’s MainOne, will invest $140 million to expand digital infrastructure across southern Nigeria over the next two years, the company noted in a blog post shared with TechCabal. The investment includes a new data center in Port Harcourt and an expansion of its third data center in Lagos, marking a significant step toward decentralising the country’s internet capacity beyond Lagos. The move comes five months after Equinix completed the post-acquisition integration of MainOne following its $320 million acquisition in 2022. Now, the company is deepening its footprint in Nigeria, where 70% of subsea cable landings and data infrastructure remain concentrated in Lagos. This pattern has reinforced a long-standing digital divide. As part of the expansion, Equinix will launch PR1, its first data center in Port Harcourt, which will also serve as the first Nigerian landing station for Meta’s 2Africa submarine cable. The move is expected to dramatically increase bandwidth capacity in the region and reduce over-reliance on Lagos. Equinix will also scale LG3, its third Lagos facility, to support growing enterprise and cloud demand. From GSM to global connectivity Nigeria’s digital infrastructure has evolved rapidly in the last two decades. Since the auction of GSM licenses in 2001, mobile subscribers have grown from zero to over 140 million. Infrastructure matured further with the rise of tower companies in 2012 and later with investments in data centers and fiber-optic networks. Yet, until recently, local data infrastructure was limited, serving only basic connectivity needs. That changed in 2020 when major global investors like Equinix began entering the market, signaling Nigeria’s integration into the broader digital economy. Today, Equinix operates over 260 International Business Exchange (IBX) data centers in 74 metropolitan areas globally. These centers are interconnected through Equinix Fabric, a software-defined platform enabling secure, high-performance connectivity between data centers, cloud services, and enterprise networks. Building resilience with subsea cables Nigeria now hosts eight submarine cable landings, including two of the world’s most advanced systems—Google’s Equiano and Meta’s 2Africa. Both cables offer design capacities exceeding 100 Tbps, representing a major leap forward in connectivity. However, the benefits of this expansion remain vulnerable without robust infrastructure redundancy. Equinix plans to address this challenge. “We’re routing traffic over multiple cables in West Africa on an active/active basis,” said Wole Abu, Managing Director of Equinix West Africa, in the blog post. “The next time a cable fails, our goal is for customers not to notice.” This proactive strategy introduces critical resilience into the region’s digital infrastructure. Closing Nigeria’s digital divide Despite significant progress in international connectivity, a key bottleneck persists: the middle-mile infrastructure linking coastal landing stations to inland users. While cities like Lagos, Accra, and Abidjan benefit from relatively strong connectivity, many interior regions remain underserved. Nigeria’s National Broadband Plan (2020–2025) targets 70% broadband penetration by 2025. Yet, as of January 2025, penetration remains at just 45%. The World Bank estimates that Nigeria needs an additional 95,000 kilometers of fiber to achieve full nationwide coverage—up from 35,000 kilometers. To address this gap, the Federal Ministry of Communications, Innovation and Digital Economy recently launched a Broadband Alliance to develop a national fiber backbone. Private sector players like Equinix are seen as critical to achieving that vision. “Our vendor-neutral platform and robust interconnection capabilities can help industry ecosystems form in West Africa and collaborate to grow the region’s digital economy,” said Abu. The launch of Equinix PR1 in Port Harcourt will enhance Southern Nigeria’s internet capacity and contribute to the geographic diversification of digital infrastructure. By breaking Lagos’ near-monopoly on bandwidth and cable access, the project could open up new digital growth corridors in the region. Global data center provider Equinix has announced a $140 million investment to strengthen internet connectivity across southern Nigeria over the next two years. The move builds on the company’s $320 million acquisition of MainOne in 2022, which marked Equinix’s entry into the West African market. The goal for Equinix is to address the unequal distribution of digital infrastructure in Nigeria, where Lagos has long dominated development. The investments will include the launch of Equinix PR1, its first data center in Port Harcourt, and the expansion of Equinix LG3, its third data center in Lagos. Notably, the Port Harcourt facility will also serve as the first Nigerian landing station for Meta’s 2Africa submarine cable, dramatically increasing bandwidth capacity in the region and breaking Lagos’ longstanding monopoly on cable landings. This is especially significant for southern Nigeria, which is not only home to a fast-growing population but also forms the economic core of the country’s oil industry. From GSM to global connectivity Nigeria’s digital journey has evolved rapidly. Since the auction of GSM licenses in 2001, mobile subscribers have grown from zero to over 140 million. The rise of tower companies in 2012 enabled operators to scale by outsourcing tower maintenance, while the arrival of fiber-optic and data center infrastructure further expanded the digital ecosystem. Early data centers served basic connectivity needs. The real shift came around 2020 with the arrival of major foreign investors. Equinix’s acquisition of MainOne represented a milestone—connecting Nigeria to a global platform and laying the groundwork for scalable digital growth. Today, Equinix operates more than 260 International Business Exchange (IBX) data centers in 74 metropolitan areas globally. These centers are interconnected through Equinix Fabric, a software-defined platform enabling secure, high-performance connectivity between data centers, cloud services, and enterprise networks. Nigeria now hosts eight submarine cable landings, including two of the world’s most advanced systems—Google’s Equiano and Meta’s 2Africa. Both cables offer design capacities exceeding 100 Tbps, representing a major leap forward in connectivity. However, the benefits of this expansion remain vulnerable without robust infrastructure redundancy. Equinix has been actively working to address this challenge. “We’re routing traffic over multiple cables in West Africa on an active/active basis,” said Wole Abu, Managing Director of Equinix West Africa, in a recent blog post. “The next time a cable fails, our goal is for customers not to notice.” This proactive strategy introduces
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Next Wave: What African startups need to win in the future
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 13 April, 2025 What African startups need to win in the future Image: Pixbay A year ago, African founders were cautiously optimistic. Tech was cooling, but optimism still lingered in the wake of post-COVID digital acceleration. Fast forward to 2025, and reality has reset the narrative. Tariff wars between major global powers triggered by President Donald Trump’s return to office, a sharp contraction in venture funding, persistent currency devaluations, and a regional economic slowdown have reshaped what it means to build a startup on the continent. Add to that an evolving regulatory landscape and a volatile political season—over a dozen African countries will go to the polls between 2025 and 2028—and the terrain looks even more uncertain. But amid the uncertainty, a quiet but significant transformation is underway. A new generation of African startups is learning to build for long-term resilience, not for the hype cycle. So, what does it take to win the future as an African startup? The VC pullback 2024 dropped to $2.2 billion, marking a 25% decrease from the previous year and nearly 53% from 2022. Only 385 ideas received VC backing, down from 600 in 2022. Worse still, cheques were smaller, and the bigger, growth-stage rounds nearly vanished. This is not just a case of investors being risk-averse. It’s a function of shifting priorities. The era of fast and loose capital is over. Global VCs are looking for more than potential; they want proof—proof of revenue, proof of grit, proof that founders can stretch every dollar—or every shilling or naira—and still build something that matters. In today’s capital markets, flashy doesn’t cut it. What wins is substance. Next Wave continues after this ad. Nigeria Startup Ecosystem Report 2024 is Here! Nigeria’s startup ecosystem continues to show resilience and progress despite global and local economic shifts. The latest edition of the Nigeria Startup Ecosystem Report, developed by JICA in partnership with TechCabal Insights, offers a deep dive into the trends driving innovation across the country, covering everything from funding trends and policy shifts to major funding trends in Nigeria’s startup ecosystem. Get access to the report! Rethinking pricing and ops If you’re building a startup in Africa right now, chances are you’re also moonlighting as a part-time currency analyst. And not by choice. The past two years have been relentless for local currencies. Nigeria’s naira has tumbled, losing over half its value in just 24 months. The Kenyan shilling has fallen over 25%, its steepest drop in decades. Ghana’s cedi and Egypt’s pound continue their slow slide, eroding the purchasing power of businesses that rely on imports, cloud services, or any product priced in dollars. For founders, the consequences are immediate and painful. Imagine watching your AWS bill double—not because you used more cloud storage, but because your currency collapsed overnight. Salaries, software licences, and even basic hardware get more expensive when you’re pegged to the dollar but earn in local currency. That’s the reality African startups have been navigating all year. And it’s forcing some to adapt in creative and deliberate ways. Take Instabug, a leading Egyptian SaaS startup that builds bug-reporting tools for developers. They serve a global market, but their home base is rooted in a currency that has been under pressure for months. Rather than pass on higher costs to users or lose ground to competitors, they adjusted. The team localised pricing for emerging market customers, offering more affordable tiers while protecting their margins. That simple shift helped them retain users who might otherwise have abandoned their services due to affordability issues. Other startups are thinking longer-term. Some are experimenting with hedging strategies, locking future currency exchange rates to reduce uncertainty. Others prepay essential services like cloud hosting in hard currency, insulating against future rate shocks. Then, some tackle the root problem by reshaping how they operate altogether. Look at Wasoko, the B2B e-commerce giant operating in Kenya, Tanzania, Rwanda, and beyond. Their model depends on moving fast-moving consumer goods (FMCGs) across the region. But with currency fluctuations and import costs eating into margins, they’ve doubled down on regional warehousing and local supply chain networks. Instead of relying heavily on imports, they’ve begun sourcing more products locally and building infrastructure that allows them to fulfill orders faster, cheaper, and in a way that’s less vulnerable to currency shocks. Founders on the continent have no choice but to become macroeconomic students. And in doing so, they’re building leaner, smarter, and ultimately stronger companies. Next Wave continues after this ad. Celebrate yourself and other women at Hertitude, the ultimate girls’ night out. Get tickets for yourself, your wife, your colleague, sister, or niece at 20% off when you use the code TECHSIS25. Get your tickets here. Building with governments Governments across the continent are becoming more assertive, especially in sectors like fintech, mobility, and artificial intelligence. On the surface, this is another hurdle for already-strapped founders. But look a little closer, and a more nuanced picture emerges: startups that lean into regulation—not just tolerate it—are discovering new paths to scale and build long-term defensibility. Nigeria’s fintech boom collided with the Central Bank’s stricter oversight in 2023 and 2024 as the regulator tightened controls and paused licensing new providers. For most startups, it led to product slowdowns. But fintechs like Moniepoint bucked the trend, building operations and internal compliance teams that rival traditional banks. That groundwork might be paying off—Moniepoint processes over $13 billion in transactions, serving over 2 million businesses. To earn the trust of both customers and governments, African startups should make regulatory discipline more than just a box to check. Across the borders in Kenya, mobility startup BasiGo has
Read MoreKenya’s Central Bank and Treasury approve Access Bank’s acquisition of struggling NBK
The Central Bank of Kenya (CBK) and the National Treasury have approved Access Bank’s acquisition of the struggling National Bank of Kenya, nearly one year after the Nigerian lender first expressed interest in the deal. The transaction is still subject to Nigerian authorities’ approval. In a public notice on Monday, the CBK said it and Treasury Cabinet Secretary John Mbadi had approved the deal, bringing Access Bank closer to taking over NBK, which could expand its footprint in East Africa’s largest economy, given the bank’s nationwide branch network. “Pursuant to section 13 (4) of the Banking Act, the Central Bank of Kenya on 4th April, 2025, approved the acquisition of 100 percent of the issued share capital of National Bank of Kenya Limited by Access Bank PLC,” CBK governor Kamau Thugge said in a gazette notice. “The Cabinet Secretary for the National Treasury and Economic Planning on 10th April, 2025, approved the acquisition of 100 percent of the issued share capital of National Bank of Kenya Limited by Access Bank PLC.” The approval paves the way for KCB Group and Access Bank to complete the transaction, with a public announcement to follow. While the transaction value has not been disclosed, KCB Group said in March 2024 that it had agreed to sell National Bank at 1.25 times its book value. Based on NBK’s 2023 book value of $79.77 million, the deal could be valued at approximately $100 million. The final acquisition figure could still be markedly different from that estimate. The deal is Access Bank’s second acquisition in Kenya in five years as it pushes its pan-African expansion drive. In 2020, Access acquired Transnational Bank to enter the Kenyan market, following a similar move by its Nigerian competitors, United Bank of Africa (UBA) and Guaranty Trust Bank (GT Bank). Access is expected to inject more capital into NBK to shore up its books if the deal is closed. Since KCB acquired the loss-making lender in 2019 in a deal brokered by CBK and the National Treasury, it has spent over $63.5 million to improve its capital strength and keep it on track to profitability.
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TechCabal Daily – Will Lesotho give in to Musk?
In partnership with Lire en Français اقرأ هذا باللغة العربية It’s Monday! If you’re Nigerian and need something to be mildly optimistic about this week, here it is: Fitch Ratings just bumped Nigeria’s long-term foreign-currency issuer default rating to ‘B’ from ‘B-‘. Moving from a B- to a B is the kind of small incremental progress you need to power through this week. Let’s get into today’s edition. NCBA fined $1,930 for sending emails to the wrong customer Will Lesotho crack its Basotho ownership rule for Elon Musk’s Starlink? What does the US tariffs mean for Africa’s tech ecosystem? World Wide Web 3 Job Openings Banking NCBA fined $1,930 for sending emails to the wrong customer From Left to right: Louisa Wandabwa – NCBA Group Chief of Staff and Director of Strategy, John Gachora – Group Managing Director – NCBA and Stella Njunge – Managing Director – AIG Kenya Kenya has one of the strongest data protection policies in Africa. Its Data Protection Act (2019) tells companies how to collect and use customer data safely. It protects the country’s control over its data and gives people the right to say how their data is used. Customers can say yes or no, challenge, or stop the use of their data. Yet, Kenyan large corporations—which have been the major culprits—still have work to do to comply with the rules. On Friday, NCBA, Kenya’s third-largest commercial bank by assets, was fined KES250,000 ($1,930) by the Office of the Data Protection Commissioner (ODPC), the country’s data protection regulator, for violating a customer’s privacy rights. What happened? The bank had failed to delete an incorrect email address from its records, despite repeated requests, leading to sensitive financial statements being sent to the wrong person. The complainant, Brian Githaiga, had asked the bank to remove a second email address linked to his account. The bank failed to act, and the unintended recipient—who had no ties to NCBA—continued receiving his transaction details. Even after she alerted the bank, the issue persisted. This is risky because once your bank records land in the wrong inbox, you lose control over who sees your details. These statements often contain personal data like your address and phone number. In the wrong hands, you could become a target—even if you’ve always been careful. This isn’t the first time NCBA has made that mistake. In December 2024, the bank was fined KES700,000 ($4,405) for sending a Kenyan customer, Dr. Bernard Shiaunda Aete’s loan statements to his former wife. Despite his request to remove her contact as an alternate address, the bank failed to act. Banks are expected to set the bar for financial safety, so it’s both surprising and careless for NCBA to drop the ball like this. Although $1,930 may be a small fine, it sends a strong message to others: protect your customers’ data—or pay for it. Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. Internet Will Lesotho crack its Basotho ownership rule for Elon Musk’s Starlink? Image Source: Twitter (X) When the US President, Donald Trump, slapped 90 countries with a reciprocal tariff on April 2, we expected some to cave under the pressure. Some countries have since moved to negotiate favourable trade terms with the US. One of them is Lesotho—a small, landlocked country in Southern Africa that has long depended on exporting textiles to the US. Trump’s new 50% tariff—which was paused for 90 days—on textile imports could cripple Lesotho’s garment sector, which employs 30,000 people and contributes over 80% of its export revenue as of 2022. That’s not a blow you walk off. It’s understandable why Lesotho is looking to offer a quid pro quo to sweeten its diplomatic ties with the US. And what better way to do that than by giving Elon Musk’s Starlink a backdoor entry? The satellite internet company has struggled to gain ground in several African countries, particularly in the Southern African region, due to regulatory bottlenecks—including Lesotho, which requires 30% local ownership in foreign ventures. If Lesotho allows Starlink in without the satellite internet service provider (ISP) following the ownership rule, it would be a big change in policy—creating a setback for Lesotho’s regulators that have been trying to force compliance among foreign-owned businesses trooping into the country. The country is stuck between Charybdis and Scylla, as it tries to improve local investment inflow while protecting its access to the US market. If Starlink makes it in through the backdoor, the satellite ISP will become the most visible reference of the country’s policy failure. What message does it send to other investors who had to comply with the local ownership rule? Here’s what happened at Paystack in 2024! See what Paystack built last year! From major product upgrades to new ways we supported African businesses. Check out our Year in Review → Global Policy What does the US tariffs mean for Africa’s tech ecosystem? Image Credit: WEF In the short stint before the US president paused its reciprocal tariffs, the world witnessed a literal turmoil: stock markets were down, over $2 billion in crypto was wiped out, and for a second, you didn’t know whether to panic or buy the dip. While Donald Trump may have paused reciprocal tariffs for another 90 days, did you ever wonder what the tariffs meant for Africa’s tech ecosystem? We broke down the analysis here so you wouldn’t have to worry. For startups looking to raise, the mood is cautious. VC funding into African tech dipped to just $50 million in March—its lowest in over four years—as investors retreat to safe assets like US Treasuries. Inflation fears and a looming global recession are making US-based funds more defensive. For exporters, the picture’s more complex. While Nigerian traders now face a $14 duty on a $100 bag of cassava flour, they could gain
Read MoreWhy Nigeria should lead the charge for bitcoin mining in Africa
Bitcoin mining is creating new Bitcoins and securing the network by solving complex mathematical puzzles. The network is managed by miners—individuals or entities using specialized hardware. Mining is crucial to network security and decentralization: it verifies transactions in a trustless manner, prevents double spending, and keeps the blockchain immutable. With a finite supply of 21 million coins, mining also controls how new coins enter circulation, making Bitcoin scarce and valuable as more people recognize its promise. Bitcoin’s proof-of-work mechanism remains the core method to earn bitcoin while maintaining the network. Although running the network consumes significant energy, innovative methods have emerged to optimize mining efficiency over the years. Bitcoin mining isn’t merely another industry; it is a global arms race to secure the hardest asset the world has ever seen. Nigeria, the undisputed giant of Africa, has long cemented itself as a major player in global cryptocurrency adoption. From dominating peer-to-peer trading volume rankings to a high demand for alternative financial systems, Nigeria isn’t just part of the crypto conversation—it is leading it. Currently, no African country ranks in the top 10 for global Bitcoin mining operations, with figures ranging from over $4 billion in the United States to $70 million in Venezuela (as of 2024). Today, Africa contributes only 3% to the global Bitcoin mining hash rate—a criminally low share given the continent’s untapped energy reserves. Nigeria should lead this movement by leveraging its abundant, underutilized energy resources to mint digital gold. The financial upside is undeniable, and the strategic advantage is even greater. The moment to act is now. From a pure numbers perspective, the upside for Nigeria is staggering. At a current bitcoin price of $83,000, controlling even 1% of the global mining network would generate nearly $280 million annually. Scale that to 5%, and it exceeds $1.4 billion yearly. And here’s the kicker: Nigeria has the raw resources to make this happen. In 2021 alone, Nigeria flared 6.63 billion cubic meters of natural gas—wasting roughly $761 million worth of energy. That power is burned into thin air when it could be turned into a highly profitable Bitcoin mining industry. Instead of letting energy go to waste, Nigeria could harness it to power a digital asset that has outperformed every major financial instrument over the past decade. Beyond direct mining revenue, this industry would attract foreign investment, create thousands of jobs, and establish Nigeria as the hub for blockchain infrastructure in Africa. Nigeria’s economy is tied to oil, a commodity plagued by price swings and geopolitical instability. Foreign exchange reserves fluctuate between $35-40 billion due to external factors. Instead of watching reserves erode from inflation and external shocks, Nigeria could build a treasury of digital assets free from political manipulation and fiat debasement. The national grid in Nigeria now generates about 6,000 MW, but that is still insufficient for a country of over 200 million people. Millions rely on diesel generators, one of the most expensive and polluting forms of electricity, while oil companies flare billions in wasted gas every year. Rather than flaring unused gas, energy companies could redirect it into mining operations, turning a regulatory headache into a highly profitable industry. Major firms like ExxonMobil have already piloted this concept in Nigeria; imagine this at scale. Renewables also present a golden opportunity. Nigeria has over 14 GW of untapped hydroelectric potential. Bitcoin mining could catalyze large-scale renewable energy projects, ensuring profitability while expanding electricity access for businesses and households. Critics argue that bitcoin mining’s energy intensiveness leads to environmental issues. While valid, these concerns have spurred innovations that optimize energy usage. Rather than relying solely on fossil fuels, Nigeria could integrate traditional energy sources with renewables, ensuring a greener, more sustainable process. Additionally, while bitcoin’s volatility is noted as a risk, the “stability” of the Naira has long been illusory, and volatility is simply the price of admission. Another counterargument is the initial infrastructure investment required to build a competitive mining ecosystem. Yet, this challenge presents an opportunity rather than a drawback. Necessity is said to be the mother of invention – Nigeria’s need for more power should force experimental approaches into optimizing existing energy sources, whilst creating new ones. Currently, the U.S. controls 38% of the global Bitcoin mining hash rate. Africa? Barely on the radar. Nigeria has the resources, tech-savvy population, and market demand to change this dynamic. The window is open—but it won’t stay open forever. With the recent U.S. executive order for a global Bitcoin reserve under President Trump’s administration, Nigeria must act decisively—securing investments, implementing mining-friendly policies, and leveraging its untapped energy. Bitcoin is the future. Nigeria has the resources, talent, and vision to dominate. The only question is: Who will bet on Nigeria? _________ Ololade Babalola is the founder of Endiora Labs, a Blockchain and AI advisory firm. Formerly a Director at Fidelity Digital Assets, he led the delivery of their institutional trading platform. With 19+ years in tech and product, he builds tools at the intersection of decentralization, intelligence, and automation.
Read More“We need to focus on catching up rather than leading.” – AI professor on building for Africa
One of Africa’s most consequential conversations in the current moment is, what does a truly African Artificial Intelligence future look like? Depending on who you ask, AI in Africa promises to unlock new levels of productivity across healthcare, agriculture, education, and several other sectors. But as Abejide Ade-Ibijola, a professor of Artificial Intelligence (AI) and Applications at the Johannesburg Business School (JBS), tells TechCabal, that future comes with a warning. “The excitement around AI is real, but we risk building technologies that widen the very inequalities we are trying to solve,” he said in an interview. While Africa only accounts for 2.5% of the global AI market, the continent’s innovations are expected to make an economic impact, potentially contributing $2.9 trillion by 2030. Countries like Kenya, Nigeria, and South Africa are leading the charge, applying AI to local problems, including interpreting indigenous languages and boosting crop yields. But Ade-Ibijola says progress must be rooted in realism. “The adoption of AI will likely create a two-tiered reality,” he said. Those in urban centers like Johannesburg and Kigali will enjoy the benefits of AI-powered mobile phones, virtual reality, and other cutting-edge technologies. Meanwhile, those in rural areas, often lacking basic infrastructure like electricity, risk being left behind.” Without infrastructure, affordability, and intent, he believes that the benefits of AI will remain concentrated among the privileged few. Consideration must also be made about building ethical, unbiased AI systems as well as datasets that reflect Africa’s cultural and historical nuances. This interview has been edited for length and clarity. How do you envision AI shaping industries, societies, and daily life in the coming decades in Africa? Artificial intelligence is here to stay, and its impact will be profound across numerous sectors. In healthcare, for instance, AI has the potential to revolutionise diagnostics and treatment. However, we must address the issue of affordability. While AI-driven surgeries might offer greater precision, we risk widening the gap between those who can afford such advanced care and those who cannot. This existing socio-economic divide is a critical factor we need to consider as we integrate AI. In agriculture, drones equipped with sensors and irrigation systems can optimise crop management, reducing reliance on pesticides and manual labor. We can also foresee robotic systems handling tasks like tilling and planting, boosting efficiency and productivity. Education is another area ripe for AI integration. AI-powered tools can generate personalised learning plans, provide language translations for complex concepts, and even facilitate self-paced learning. While robotics in classrooms is still nascent, particularly at the university level, we could see physical AI-driven facilitators in the future. Manufacturing is already heavily reliant on AI, as seen in automated production lines in Japan and China. In Africa, we are beginning to see similar trends, with automated ordering systems in fast-food chains and food delivery robots in hotels. These advancements, while exciting, raise concerns about job displacement. If petrol stations and retail stores become fully automated, what happens to the workforce? The adoption of AI will likely create a two-tiered reality. Those in urban centers like Johannesburg and Kigali will enjoy the benefits of AI-powered mobile phones, virtual reality, and other cutting-edge technologies. Meanwhile, those in rural areas, often lacking basic infrastructure like electricity, risk being left behind. This widening gap between the “haves” and “have-nots” is an inevitable consequence we must address proactively. The excitement surrounding AI is undeniable, but we must be mindful of its societal implications. We need to focus on equitable access and address the potential for increased inequality. As we embrace these transformative technologies, we must ensure that their benefits are shared by all, not just a privileged few. What cultural or societal values should guide AI’s development in Africa? Cultural and societal values that should guide AI development in Africa must focus on inclusivity and accessibility. Many of our people, especially in underprivileged rural areas, are still living in conditions akin to the Second Industrial Revolution. For example, some still use charcoal irons and lack access to electricity, television, or the internet. When we talk about AI, we often speak from an urban perspective, but these technologies must reach those in remote areas to improve their daily lives. For instance, imagine a medical diagnosis app powered by AI that operates on a phone. If we could provide phones to villages and ensure the app works in local languages, it could act as a “doctor on their phone.” This app could offer preliminary diagnoses, recommend seeing a nearby doctor, or even suggest safe indigenous remedies when appropriate. To make this feasible, we would need solutions like solar energy or lithium batteries to power these devices. This approach ensures that AI serves everyone, not just urban populations. We must be intentional about addressing inequalities. This means bringing technology directly to underserved communities – installing solar panels, providing access to devices, or even deploying mobile tech hubs with laptops for young people to learn and interact with advanced technologies. These initiatives can inspire innovation and help children imagine their future roles in tech development. Continuous education for both children and their parents is vital. If building schools isn’t immediately possible, we can organize open days or trips to expose them to new ideas and opportunities. Our data must feed into our own AI systems rather than perpetuate global disparities. By aligning AI with African values like Ubuntu and ensuring equitable access, we can create technologies that reflect our cultural heritage while promoting social responsibility. What are some of the challenges of building unbiased, ethical AI systems in Africa? AI models are fundamentally built upon data. Without vast datasets, or big data, AI cannot function. The machine learns patterns and makes decisions based on this data. However, as humans, we are inherently flawed, and our data reflects that. Consider the unfiltered content on platforms like X. It is filled with profanity, political criticism, and personal insults. If an AI is trained on this data, it will inevitably learn and replicate these behaviors. This is why
Read MoreNo, PaidHR is not a fintech. It’s following a global HR-tech playbook
In 2024, at the launch of PaidHR’s cross-border payroll product, Seye Bandele, the CEO and co-founder of the Nigerian HR-tech upstart, spoke to TechCabal about the company’s plans to include more fintech-adjacent products. At the time, we asked if PaidHR—which processed over ₦29 billion ($18 million) in staff salaries in that same year—was venturing into fintech; the answer was a definitive no. Months after our conversation, the HR-tech startup launched a wallet app that allows employees to access and spend their wages without needing to transfer to a bank. The wallet app, which currently processes over ₦1.3 billion ($835,134) monthly, has triggered a knee-jerk reaction: “Yet another startup selling airtime.” PaidHR’s playbook isn’t new. Global HR-tech companies like Deel, Remote, and Rippling have followed a similar arc—starting with payroll, then embedding financial services to deepen user engagement and drive revenue. Deel offers global payroll with built-in wallets and a Deel Card, enabling cross-border workers to hold and spend earnings. Rippling, which began as an HR platform, now includes corporate cards, expense management, and financial automation. Remote also facilitates multi-currency payments and localized benefits. PaidHR’s evolution mirrors this path. Blurring the lines between HR and fintech PaidHR launched in 2021 with a simple thesis: if you want to improve productivity in Africa, you need to fix how people work and how they get paid. The company launched its core HR and payroll software for small and medium businesses, layering different functionality over time: Earned Wage Access (EWA) in 2023, cross-border payroll in 2024, and now a wallet product that allows employees to access and spend their wages without needing to transfer to a bank. Each feature solved a user pain point. EWA, which has disbursed ₦150 million ($93,803) to the startup’s 2000 users, tackled liquidity gaps. Cross-border payroll simplified compliance and FX risk for remote teams. And the wallet? That’s where the money stays and gets spent. “Somebody takes an advance of ₦5,000 but ends up with ₦4,700 after charges,” Bandele said. “Then he has to pay more fees just to send it to a bank or Opay. It didn’t make sense. We built utility directly into the wallet. Airtime, food, bills—everything he already spends on.” Since PaidHR had an existing technology that provides an employer wallet, it was easy to provide an employee wallet, Bandele said. Follow the money PaidHR’s wallet has processed ₦1.3 billion ($835,134) in transaction volume monthly since inception. That’s the portion of salaries that employees choose to keep inside the platform instead of cashing out. 1. Value-Added Services (VAS) Margin According to Bandele, most wallet spend goes toward airtime, data, power bills, and transportation—routine but high-frequency expenses. PaidHR doesn’t offer these services directly; it aggregates licensed partners and takes a cut of each transaction. If 10% of the ₦1.3 billion is spent on these VAS channels and PaidHR earns a 2% margin through revenue sharing, that’s ₦2.6 million in “passive” revenue per month—₦15.6 million over the last six months. That’s 0.2% of assets under management (AUM) generated without lending, risk, or customer acquisition costs. 2. Float Leverage via EWA By keeping money in-app, PaidHR also gains control of float, which can fund earned wage access. It’s effectively recycling employer payroll funds into employee credit without external financing. Employees withdraw wages early, spend in-app, and the platform gets paid twice—once on the credit spread and again on the utility margin. 3. Cross-Border Payroll Margins The platform also facilitates multi-currency payroll across 49 countries. PaidHR earns fees on FX and disbursement, especially for employers with distributed teams. “The entire cross-border rail sits on the wallet infrastructure,” Bandele said. The company doesn’t break out FX margins, but in similar platforms, they can range between 1.5–3%, depending on the destination. HR infrastructure, Fintech economics Despite the fintech-style revenue mechanics, PaidHR still identifies as an HR company. Its biggest income stream remains subscription fees paid by employers to manage payroll and staff. But the lines are starting to blur. Employers fund wallet accounts monthly to run payroll. Employees increasingly keep their wages on the platform to save, spend, or borrow. And PaidHR captures margin at every node. “People spend where they earn,” Bandele said. “We’re just making it seamless to do both.” The platform now partners with licensed fintechs like Risevest to offer savings and FX options directly from the wallet. Payroll has become a gateway into broader financial behavior. What comes next PaidHR is raising a seed round and looking to expand across Nigeria into other West African countries as well as East Africa. International employers can already pay African staff in dollars or local currency through the platform. The next phase may involve more embedded finance—healthcare, insurance, and transport. Asked if the wallet or FX rails will eventually overtake subscriptions as the core business, Bandele didn’t rule it out. “We’ll see,” Bandele said. But if the current numbers are any guide, the logic is clear: The more money PaidHR moves, the more it makes. Whether or not it calls itself a fintech.
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