Marketforce ordered to pay $16,000 in wrongful termination case
A Kenyan court has ordered Marketforce Technologies, once a rising star in Africa’s B2B e-commerce sector, to pay KES 2.1 million ($16,000) to a former employee for wrongful termination. The ruling comes nearly a year after the Y Combinator-backed startup shut down RejaReja, its flagship B2B marketplace, leaving its future uncertain. Its co-founder, Tesh Mbaabu, has since moved on to launch a social commerce platform, Chpter. Tom Maina Chege, a former product manager who worked at Marketforce from January 2022 to August 2023, filed the case in October 2023. Chege, whose monthly gross salary was KES 200,000 ($1,550), was laid off in July 2023, with his termination taking effect in August. He argued that the redundancy was unlawful, as “the notice period of 30 days did not lapse before the redundancy took effect”, and Marketforce failed to notify the Labour Office, a requirement under Section 40 of the Employment Act, 2007. Chege sought KES 1,560,870 ($12,000) in compensation for unpaid leave, notice pay, severance pay, salary arrears, and general damages, according to court documents seen by TechCabal. After Marketforce failed to defend the suit, Judge C.N. Baari ruled that the redundancy was procedurally and substantively unfair. The court awarded Chege KES 1,316,547 ($10,000) in terminal dues and KES 800,000 ($6,000) in compensation and legal costs. “[Marketforce] did not attempt to comply with the seven steps set out in Section 40(1) of the Employment Act, 2007,” the ruling stated. Staff exits and pay cuts The judgment sheds light on Marketforce’s internal troubles, which three former employees say began with mass staff exits in late 2022 and 2023. The company lost key employees, which affected operations and strained relationships with major distributors. “Marketforce had a credit line with major manufacturers, which enabled them to get stock and pay later,” a former employee who asked not to be named told TechCabal. “This was ended when we started having issues, and employees who were the glue holding the deal left.” At the same time, Marketforce faced severe cash flow problems, resulting in salary delays and pay cuts of up to 50% for non-tech employees. Despite raising over $40 million from investors such as Reflect Ventures, Greenhouse Capital, and Century Oak Capital, the company’s abrupt exit from the B2B e-commerce space in 2024 left its current status unclear. While Marketforce’s fate hangs in the balance, co-founder Tesh Mbaabu has shifted his focus to Chpter, a platform helping businesses sell via social media. In September 2024, Chpter closed a $1.2 million pre-seed round led by Pani, an Africa-focused investment firm co-founded by former Cellulant CEO Ken Njoroge. The company is also part of the Safaricom Spark and Norrsken Accelerators. Whether Marketforce can revive itself and stage a comeback remains to be seen.
Read MorePalmPay rolls out Verve debit cards as Nigerian fintechs shift to local providers
PalmPay, the Nigerian fintech with over 35 million users, has launched its first debit card in partnership with Verve, marking a major step in its evolution from a mobile wallet to a full-service digital financial platform. The move comes amid a broader shift by Nigerian fintechs toward local card schemes, as rising costs and declining international spending make global providers like Visa and Mastercard less attractive. The debit card launch comes three weeks after Palmpay’s partnership with the national domestic card scheme, AfriGo, to distribute five million contactless payment cards across Nigeria. Now, it is integrating Verve-powered debit cards directly into its digital wallet. The company says it will distribute the cards through its network of over one million agents nationwide. With its expansive reach, PalmPay expects to onboard millions of cardholders by the end of the year. Palmpay debit cards come in two tiers: a standard version available to all users and a premium version linked to a new membership program. To upgrade to premium status, users must maintain a monthly balance of at least ₦20,000 and transact a minimum of ₦500,000 per month. Premium members will earn up to 36% annual savings interest—compared to 20% for regular users—and receive higher cashback rewards and merchant discounts. Why now? For years, Palmpay has focused on building scale, user trust, and backend infrastructure, according to Sofia Zab, its chief marketing officer. The company waited until it could deliver card services integrated into the PalmPay wallet, Zab said. “There are third-party APIs that let you spin up prepaid cards quickly, but we took a more deliberate route,” she said. “We formed a direct partnership with Verve so we could design a product that truly fits the needs of Nigerian consumers.” Palmpay’s debit card partnership continues the wave of Nigerian fintechs partnering with local card schemes due to rising costs for international card providers and reduced customer spending. Opay and Moniepoint have both issued about 17 million Verve cards post-pandemic, ditching international partners like Visa and Mastercard. Carbon, the Nigerian digital bank known for its loans-led approach to banking, recently partnered with Verve to resume issuing debit cards nine months after pausing card operations. The debit card launch comes at a time when much of Nigeria’s fintech ecosystem is leaning towards bank transfers. HabariPay, the fintech subsidiary of one of Nigeria’s biggest banks, is betting its future on increased transfers. Paystack also recently launched Zap by Paystack, its first consumer app, on that promise of increased transfer volumes. Despite the surge in bank transfers, PalmPay believes cards still serve a crucial segment of Nigerian consumers. “Not every user is a young, digital-first Lagosian. Some live in towns with limited phone access or want the flexibility to shop online,” Zab noted. “If we want to serve every Nigerian, we need to build for every Nigerian, and that includes access points such as our app and also our agents, USSD, and now cards.” The bigger play PalmPay’s ambitions extend beyond payments. The company has quietly rolled out a growing suite of banking services, including savings, credit (through a licensed partner), and an insurance product launched in partnership with AXA Mansard and Leadway. PalmPay claims that over one million users have already adopted its insurance offerings. “We are much more than a digital wallet or POS company,” Zab said. “We’re building a full financial ecosystem—one that works for every Nigerian, no matter where they are on their financial journey.” The fintech also plans to expand its nationwide presence by opening more offices and experience centers to support its growing customer base. PalmPay’s bet on cards suggests that, in the race to redefine banking in Africa’s most populous economy, fintechs are realizing that old-school banking tools still have their place.
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TechCabal Daily – Pay up or pack up
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy pre-TGIF! Have you tried ChatGPT’s new AI Image feature? On Tuesday, ChatGPT’s parent company announced the launch of GPT-4o native image generation, which allows users to upload and modify images. We tried generating a couple of anime-type (Studio Ghibli) images, and we were impressed with the results. In other news, our subject for this week’s My Life in Tech column wants you to work like you own the company. Find out why here. Tunisia to suspend Bolt for alleged tax evasion Russian auto-maker AvtoVAZ enters Nigeria MTN and Airtel team up to cut costs, boost coverage Jumia and Jiji say Temu’s advertising show-off can’t touch them World Wide Web 3 Opportunities Ride-hailing Tunisia to suspend Bolt for alleged tax evasion Image Source: Wunmi Eunice for TechCabal Bolt is in hot water in Tunisia. The ride-hailing giant is facing allegations of tax evasion, money laundering, and operating without proper licenses. Tunisia’s transport ministry says it has seized 12 million dinars ($3.8 million) from accounts linked to several platforms, including Bolt, claiming the funds were illegally transferred abroad. But this isn’t just about alleged wrongdoing—it’s also about control. Tunisia is getting ready to launch its own state-backed ride-hailing app to regulate fares and keep revenues local. The new platform will reportedly limit ride prices to 1.5x the traditional taxi fare, offer digital payments and real-time tracking, and work exclusively with officially registered taxis. Bolt, for its part, says the accusations are “completely unfounded” and that the government’s actions are procedurally flawed. “All local authority actions have been taken without the involvement of an investigating judge,” the company told TechCabal, adding that it hasn’t been given a chance to defend itself. The transport ministry claims its actions are part of a broader effort to “reform the transport sector” and protect the local market from foreign apps that transfer profits abroad. Bolt, however, warned that pushing out international players sets a dangerous precedent for market competition. Meanwhile, other platforms like Yassir, Heetch, and local operator Amigo remain active in Tunisia. Uber and Careem never entered the market. For now, Bolt says it’s still operating as usual. But with the state gunning for its own slice of the ride-hailing pie, the road ahead may be anything but smooth. Freelancers & remote workers, we want to hear from you! Fincra is exploring the challenges Nigerian freelancers and remote workers face with international payments. Share your experience and help contribute to building better payment solutions. Take the survey now! Mobility Russian auto-maker AvtoVAZ enters Nigeria A Lada Vesta SW Sedan/Image Source: avtoVAZ For a change of scene, you could soon be seeing less of the Toyota cars that dominate Nigerian roads. Russian giant auto-maker AvtoVAZ has expanded to Nigeria, flush with the bright plan to establish a local assembly plant—which many foreign players in the auto market fail to do. This could endear AvtoVAZ to the government as an assembly plant directly points to paying manufacturing incentives and company taxes; the government loves its taxes. AvtoVAZ is coming in with three heuristics: first, it will prioritise assembling its small car brand, Lada, knowing that Nigerians typically buy second-hand cars due to their low-price points, compared to luxury local car-makers like Innoson and Nord Motors. The price for Lada cars being sold in Europe—such as the Lada Vesta 4×4 Sedan—start at CHF13,200 (₦23 million or $14,920). This is a mid-range price (and a little steep) for Nigerians despite the current price inflation tightening the auto market. But there is an opportunity for AvtoVAZ to enter the market with a lower price point for its popular sedan brand, but it is unclear if it will. Second, it is following a trend. Its Lada vehicles will come fitted with compressed natural gas (CNG) engines. This could entice gig drivers who have been retro-fitting their cars with CNG engines as a response to the high fuel costs. AvtoVAZ also thinks that CNG vehicles are the future of the Nigerian auto market. Third, it will establish a local assembly plant, which is the icing on the cake. Across Africa, several countries (like Egypt) have been creating policies to entice more foreign players to invest in the local auto manufacturing economy, rather than just dumping their cars in the market through distribution units. AvtoVAZ will be the first-ever Russian auto brand to operate in Nigeria, and if its plans actually take off, it could carve out some market share by investing locally and adding some spice to the local manufacturing market. Plus, its logo already looks like Toyota’s with that familiar oval shape—so if nothing else, at least Nigerians won’t have to miss Toyota’s logo too much. Introducing Paystack’s new consumer app — Zap! Zap by Paystack is a mobile app for instant, secure payments via bank transfers. Download Zap on Android and iOS → Telecoms MTN and Airtel team up to cut costs, boost coverage Image source: Google MTN Group and Airtel Africa have decided to put competition aside—at least when it comes to their towers—by signing a network-sharing agreement in Nigeria and Uganda. Faced with skyrocketing costs and a naira that just won’t cooperate, the two telecom giants are taking a “why build two when we can share one?” approach. The plan: pool resources, cut costs, and bring better mobile coverage to areas that need it most. Nigeria, their biggest battlefield, has been a tough nut to crack lately. With the naira playing a game of “how low can you go?” network expansion has gotten ridiculously expensive. Yet, MTN still managed to snag 51% of the market with 87.5 million subscribers, while Airtel is holding steady at 57.6 million. Ralph Mupita, MTN’s CEO, says the partnership will help meet Africa’s growing digital appetite—because let’s be real, nobody likes a buffering screen. Adding a little regulatory spice to the mix, the Nigerian Communications Commission (NCC) gave telecom operators a three-month deadline to boost infrastructure after approving price hikes. With only
Read MoreLipa Later enters administration after failed fresh fundraising efforts
Lipa Later, a Kenyan buy-now-pay-later (BNPL) fintech, has been placed under administration effective March 24, 2025, after months of financial struggles and failed fundraising efforts. Joy Vipinchandra Bhatt from Moore JVB Consulting LLP has been appointed administrator, according to a gazette notice seen by TechCabal. This latest development caps a turbulent year for Lipa Later, which has struggled to secure fresh funding since its last capital injection—a $3.4 million debt raise in September 2023—leaving it unable to pay employees and suppliers. Entering into administration means the company’s directors have lost control of its assets and operations, with decision-making authority shifting to the appointed administrator. Creditors have until April 23 to submit claims as the company’s future hangs in the balance. “We are currently engaging all key stakeholders of the company to elicit their cooperation in order to achieve the best possible outcome for the company,” Bhatt said. At least five employees told TechCabal they had not received salaries for several months as of December 2024. Lipa Later also owed several suppliers, including London-based consultancy Africa Foresight Group (AFG), which sued the company in 2024 over an unpaid $13,516 consultancy fee, according to court documents seen by TechCabal. The dispute with AFG, which was contracted in April 2022 to prepare a market report, escalated after Lipa Later withheld payment, claiming the work was substandard. In a December 2024 ruling, Kenya’s High Court dismissed Lipa Later’s defense, stating the company had admitted to the debt in internal correspondence. “It is therefore clear to me that the amount demanded in the statutory demand is, in fact, not disputed, and the debtor (Lipa Later) is estopped from claiming so having admitted to the debt,” Justice Mong’are said in the ruling. The court also ruled that Lipa Later failed to meet the legal threshold of showing a genuine and substantial dispute over the debt. From investor darling to financial distress Lipa Later had previously strong investor backing, raising $12 million in seed funding in January 2022 from Cauris, Lateral Frontiers, and others, alongside undisclosed debt from the same investors. Earlier rounds saw seed investments from Orbit Startups in 2021 and Founders Factory Africa in 2019. Despite early investor confidence, the company failed to raise more funding in 2024. One top executive, who wished not to be named for discussing confidential information, claimed the company was close to securing a deal in Q4 2024, but it never materialised. The company’s financial position came under scrutiny in December 2023 when it acquired struggling e-commerce platform Sky.Garden for KES 250 million ($1.9 million). The deal raised concerns about Lipa Later’s financial health, as it was already grappling with mounting obligations at the time. Lipa Later’s fate now rests on whether its administrator can restructure its operations or find a buyer willing to take a chance on its BNPL model.
Read MoreFrom Okada Books to PiggyVest: Martha Kingsmike wants 9-5ers to work like they own a startup
Swipe away on Martha Kingsmike’s Instagram stories, and you might catch her mid-workout—legs splayed in a precarious split, stretching before or after a grueling gym session. You hold your breath, half-expecting her legs to buckle. They don’t. Spend two hours talking to her, and it’s clear: that’s how she lives—pushing her boundaries, testing her limits. Take 2024, when she juggled three jobs like a high-wire act: full-time product marketing associate at PiggyVest, Nigeria’s fintech darling; social media consultant for GoLemon, a fast-rising grocery delivery startup; and a five-month audience engagement contract with openDemocracy. By the end, she was running on fumes, but the quality of her work never suffered, she claimed. When I ask what fuels this relentless multitasking, she says, “Passion and money.” The openDemocracy contract, now mercifully over, outpaid her full-time gig at PiggyVest at the time, but it was dull. PiggyVest, on the other hand, keeps her sharp and on her toes. She’s either turning the chief marketing officer’s scattered sparks of ideas into full-blown strategies, chasing down designers to keep content on schedule, or crafting high-stakes influencer campaigns—all while ensuring PiggyVest’s online persona stays witty yet safe, never spooking users who have millions saved in the savings platform. Meanwhile, at GoLemon, she gets to play. The budding startup lets her audience engagement strategies lean into the chaotic humour that would be risky at PiggyVest but stimulating for shoppers. It also allows her to experiment more without the bureaucracy typical of late-stage startups. One night, in an ADHD-fueled sprint, she shot 30 videos for a 30-day challenge—and reach increased sevenfold. With nine years of marketing and audience engagement under her belt, Kingsmike has built a reputation that keeps job offers rolling in, all of which she has been declining in the past year. “I’m not being cocky or anything,” she says during our virtual interview, “but I’m great at what I do.” In her LinkedIn header, she describes herself as “superhuman.” But she wasn’t always this confident. Founder mode Kingsmike began her career at Okada Books, a now-defunct digital publishing startup, landing an internship after university. With a literature background and experience promoting her own blog, the audience engagement role suited her perfectly. The CEO called 30 minutes after she applied, offering a higher position due to her strong resume, but lacking formal experience beyond a one-off gig, she chose the content marketing internship instead. Nonetheless, three weeks in, she was promoted, and three months later, the then-five-year-old startup started facing serious challenges. Launched in 2013, Okada Books disrupted publishing with instant author payments and joined Google’s 2018 Launchpad Accelerator alongside PiggyVest (then PiggyBank, where Kingsmike now works) and three other Nigerian startups. As at the time she joined, key staff members, like the social media manager, were quitting without replacements. Kingsmike stepped up, learning on the fly and leaning on teammates to fill technical gaps necessary to keep the content marketing machine running. “I’m not the type of person to come into a company and just do my job. I try my hands at everything. I’m like a sponge—I absorb everything around me,” she said. This high agency mentality is one many in the tech ecosystem describe as ‘founder mode’—operating with the intensity, adaptability, and problem-solving drive of a startup founder—to get things done. By late 2019, exhausted and dissatisfied, Kingsmike left Okada Books. “I thought maybe it’d get better or I wanted better pay, but it wasn’t about the salary—I knew it was time to go.” Kingsmike joined TechCabal shortly after, where she worked to boost its online presence, balancing humorous audience engagement with credibility. After two years, having worked across both TechCabal and its sister publication, Zikoko, she moved on again when the role no longer inspired her. Growing with Piggyvest In search of a bigger challenge, Kingsmike took up an audience engagement management role at Pocket, a fintech platform acquired by PiggyVest. “It opened me up to a whole new world of fintech where things hardly stayed the same and where I could move out of my bubble to gain insight into how consumers actually behave with money,” she said. Like her time at Okada Books, she arrived during a period of transformation. Pocket, a recent acquisition of Piggyvest, initially built as a social payments app, was evolving, and so was her role. Though hired as an audience engagement manager, as the platform shifted, she transitioned into product marketing. When her team lead left, Kingsmike filled the gap just as she had done at Okada Books, saying she “had to keep the team in rhythm and make sure we stayed on track.” This ownership mindset has defined her career and has transformed her from a believer in switching jobs every few years into someone who now sees the value of growing within a great company. “I saw someone on LinkedIn who started working at Microsoft in 2001. They’ve had 15 roles, but they’re still there. That made me think: Just find a good company, stick there, and grow. I think I’ve found that at PiggyVest.” While a few startups, including the Stripe-owned Paystack, have gained attention for high employee retention, high churn is more common, driven by layoffs, shutdowns, toxic work culture, and more. The idea of spending half a decade in a company you have no equity in is almost radical in Nigeria’s tech ecosystem, where job-hopping isn’t just ambition but survival. Kingsmike acknowledges her privilege. “It’s sad how lucky a hardworking person has to be to find a place where they can work for a long time,” she said on a call. However, she believes there are indicators for spotting such companies: a thoughtful evaluation can show whether a company fosters an environment where high-performing people thrive. “You don’t have to wait until you’re employed to figure out a company’s growth trajectory,” she explained. “My research on PiggyVest, [before joining the company] showed that many mid- and high-level employees started as interns. Some began in one department and later moved
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In Egypt, AgriCan’s robots make farming smarter, one field at a time
Where once workers would toil under the heavy heat, sleek, wheeled robots glide silently between rows of strawberry plants on Abdel Rahman Abdel Karim’s farm in Egypt’s Nile Delta. Mechanical arm rise and swivel, releasing a fine mist of chemicals with pinpoint accuracy onto the leaves below. In 2023, when Abdel Karim was battling a severe infestation of powdery mildew and needed an immediate remedy, these robots became a lifeline. “It was the first time we saw robots outside of the internet,” he told TechCabal. “They sprayed pesticides quickly and with precision, something that would have taken human labor much longer and with less accuracy.” Each year, around the world, an average of 10 to 28 percent is lost to agricultural pests, driving a global reliance on herbicides and insecticides. These chemicals, according to the World Health Organization (WHO), are among the leading causes of fatal self-poisoning in low- and middle-income countries. In 2015, Salem Ghanam, then a young engineer, was hospitalized in a rural Egyptian province. Bedridden for days, he encountered dozens of farmers suffering from a number of respiratory ailments, all sparked by excessive pesticide exposure. Years later, tasked to come up with an AI-driven innovative solution while studying for his senior year, Ghanam recalled the plight of these farmers. “I realised Egypt has a serious problem with the uncontrolled use of pesticides, which can cause cancer,” he explained. “Farmers often don’t wear protective gear due to a lack of awareness, and because spraying usually happens in the summer, the heat makes wearing such equipment unbearable.” Motivated by this, Ghanam gathered a team of university peers and experts to develop precision pesticide-spraying devices, and what began as a student project grew into a full-fledged agritech startup, and in 2020, AgriCan was born. AgriCan leverages robotics and smart technologies to boost crop yields and quality by cutting pesticide use and improving crop monitoring. Initially focused on drones, the company shifted in 2022 to ground-based robots equipped with AI and Internet of Things systems. The robots, using cameras and data analytics, would diagnose plant diseases and deliver targeted pesticide doses reducing waste and environmental impact. Structural barriers AgriCan’s mission unfolds against a backdrop of deeply rooted challenges. Many Middle Eastern and African countries remain reliant on rudimentary or outdated agricultural techniques, in stark contrast to countries like the UAE and Saudi Arabia, which have advanced in areas such as vertical farming and AI-driven agriculture. Yet, much of the region lags behind, slow to adopt sustainable and productivity-enhancing technologies. “The issue stems from the dominance of smallholder farmers in Egypt, who rely on traditional practices due to limited financial resources,” UN expert on agricultural sustainability Mohammed Ali Faheem explained. “Additionally, there’s a general lack of technological literacy among farmers, leading to hesitation in adopting new tools.” There are also structural challenges, he said: weak digital infrastructure, limited connectivity in rural areas, and insufficient investment in agritech, adding that the lack of strong governmental support and clear policies to drive agricultural digital transformation has slowed the adoption of modern technologies on a wide scale. “Convincing farmers to use a robot is a significant hurdle – it’s something completely new to them,” Ghanam explained. Caused by a variety of fungal species, powdery mildew affects hundreds of crop and fruit species worldwide.Source: Wikimedia Commons Early on, AgriCan offered free trial services to demonstrate the technology’s benefits. Over time, farmers began to notice improvements in crop quality, and word of mouth spread among agricultural communities. Today, AgriCan is working with research centres in Egypt to develop training programs for farmers to familiarise them with agricultural technologies. Faheem noted the “critical role” of smart agricultural tools, such as robots and sensor-based greenhouse monitoring systems, in enhancing sustainable development. “These technologies improve agricultural yields without depleting natural resources, reduce crop diseases and waste through AI and sensor-based systems, and limit environmental pollution through targeted spraying, ultimately reducing health risks,” he explained. These solutions, he argues, could also promote regional cooperation in agricultural research and development between Arab and African countries. Such technologies tackle key challenges by offering efficient alternatives as rural labor continues to migrate to urban areas. They also reduce operational costs compared to traditional methods, improving farm profitability. In addition, sensor systems and robotics enable farmers to better adapt to changing climate conditions. According to Faheem, however, concerns persist about the cost and risks of robotic technology, especially for smallholder farmers. “The high price of these robots could be prohibitive for small farmers,” he told TechCabal. “Any malfunction in the devices or errors in AI systems could lead to significant crop losses if there are no fallback options and repairs or replacements could add further financial strain on farmers already operating on tight margins.” For Ghanam, while Faheem’s concerns are valid, he sees climate variability as the biggest hurdle to scaling the technology. “One of the key obstacles is adapting robotic solutions to sudden climate shifts within the same growing season,” he said. “We need to design systems that can respond effectively to unpredictable weather patterns, and that’s no easy task.” Despite these hurdles, Ghanam is confident in the efficacy of his technology. He points to a field study his team conducted where a farm was split into two sections, one operated by a human workforce, the other by a robot. Both areas grew the same crops under identical conditions. The results were telling: the robot-assisted section produced 15% higher yields, used 31% less pesticide, and reduced labor needs by 12%. Abdel Karim also saw similar results. “The quality of the harvest improved by 15 to 20 percent compared to previous seasons, and we managed to export a large share of our crop,” he said. However, he pointed out that robotic solutions cost more upfront, compared to hiring human labor. So far, AgriCan has deployed its technology across 5,230 acres on more than 15 farms and expanded to markets in the UAE and Jordan. The next major milestone will come in 2025, with the
Read MoreRussian auto giant AvtoVAZ enters Nigeria with spare parts hub, local assembly plant
AvtoVAZ, Russia’s largest automaker, which is majority-owned by the Russian government, is expanding into Nigeria as part of a broader strategy to diversify operations beyond its home market. The company plans to establish a spare parts hub and service center at the Lekki Free Trade Zone in Lagos before the end of 2025, marking its most significant push into West Africa’s largest economy. The automaker is also in talks with the Nigerian government to set up a local assembly plant, a move that could aid its long-term presence in a country where new car sales are outpaced by demand for used vehicles. AvtoVAZ’s expansion is in response to increasing competition, particularly from Chinese automakers strengthening their presence in Russia amid ongoing talks of a ceasefire between Russia and Ukraine. Great Wall Motors, a Chinese manufacturer, plans to boost its production capacity in Russia from 150,000 to 200,000 units by 2025. Hyundai and Renault are reportedly plotting a return to the Russian market after a ceasefire deal is reached. Seeking new growth avenues, AvtoVAZ is looking to Nigeria’s underdeveloped but high-potential automotive sector, where annual vehicle demand stands at approximately 720,000 units. Local production meets only about 14,000 units. AvtoVAZ plans to tap into Nigeria’s push for alternative fuel vehicles. It will partner with a Russian engineering firm to establish a compressed natural gas (CNG) conversion plant, allowing Lada cars to be equipped with factory-fitted or locally converted gas-powered engines. While AvtoVAZ will supply the vehicles, the yet-to-be-selected engineering partner will handle the conversion process, according to Adewole Opeyemi, AvtoVAZ’s official representative in Nigeria. “If you bring CNG cars to Nigeria, you don’t pay any duties, which is why we are in talks with the relevant agencies,” Opeyemi said. “Some Lada cars will arrive with factory-fitted gas-powered engines, while others will be converted locally by Russian specialists.” AvtoVAZ, best known for its Lada brand of affordable passenger cars, SUVs, and commercial vehicles, has been active in Africa since 1999, shipping approximately 100,000 cars to the continent. Its first major venture in Africa was a joint partnership with Egypt’s Amal Foreign Trade Company, assembling Lada vehicles at a local Suzuki plant in Cairo. Initially focused on producing the Lada 2107 model, the collaboration later shifted to the 2110 model. In December 2022, AvtoVAZ announced plans to export 20,000 vehicles in 2023, with a strong emphasis on expanding into new African markets. The company has since sought to reestablish its African footprint, with Ethiopia emerging as a key market. In 2023, AvtoVAZ signed a letter of intent with Ethio Engineering Group to begin local production of Lada vehicles. “We are witnessing a new wave of diplomatic cooperation between Russia and African countries. Nigeria, as the region’s biggest market, simply cannot be overlooked,” Artem Aglichev, AvtoVaz’s Head of Product Marketing, told TechCabal. “Opportunities are opening up for us, and we’re ready to explore them.” Nigeria’s auto industry remains largely dependent on imports, particularly used vehicles. The country’s local manufacturing sector includes players like Innoson Vehicle Manufacturing, Peugeot Automobile Nigeria (PAN), Coscharis Motors, and GAC Motors. However, foreign brands continue to dominate the market, with Toyota holding a 16.1% market share, thanks to its reputation for durability and readily available spare parts. Japanese brands Toyota and Honda control almost a third of the new and used vehicle market, while South Korean brands like Hyundai and Kia have gained popularity with their modern designs and competitive pricing. “As a state-owned company, we fully understand the regulatory requirements and are committed to local assembly,” Aglichev said. “Nigeria has been a strong player in this field since the 1950s, with skilled labor, logistical capabilities, and economic feasibility. This is a logical and reasonable step, and we are confidently moving forward.” While AvtoVAZ’s ambitions in Nigeria are significant, the company will face challenges ranging from regulatory hurdles to entrenched competition from local and foreign players. Whether its low-cost Lada models can carve out a niche in a market dominated by second-hand imports remains an open question.
Read MoreTunisia to suspend Bolt for alleged tax evasion, launch state-backed ride-hailing app
Tunisia wants to suspend Bolt, one of the country’s leading ride-hailing apps, over allegations of tax evasion, money laundering, and operating without proper licences. Transport ministry officials said in a statement that they seized 12 million dinars ($3.8 million) from accounts linked to several apps, including Bolt, claiming the funds were illegally transferred abroad. The crackdown comes as Tunisia prepares to launch a state-backed ride-hailing app to control fares and regulate the sector. The transport ministry claims the yet-to-be-named app will cap prices at 1.5 times the traditional taxi metre rate and address drivers’ demands for higher rates. “This national app will provide services to all passengers via registered taxis and official channels,” the ministry said in a statement. “It will offer features similar to those found in other international platforms, including digital payments and real-time tracking.” Bolt has denied the allegations, describing them as “completely unfounded.” “All local authority actions have been taken without the involvement of an investigating judge,” Bolt told TechCabal. “We have not been allowed the opportunity to contest the authorities’ allegations, which has prevented us from defending our rights.” Bolt said banning foreign ride-hailing companies would “create a worrying precedent” and harm market competition. The company insisted that its operations in the country follow local laws. The ministry claims the plan is part of efforts to reform the transport sector and “help preserve the local market and ensure revenues stay within Tunisia, unlike foreign-based apps that transfer earnings abroad.” Several other ride-hailing apps, including Yassir, Heetch, and local platform Amigo, currently operate in the country. However, major international players like Uber and Careem have yet to enter the Tunisian market. “Bolt ride-hailing services will remain fully operational in Tunisia, and our drivers and customers will be able to use the app as usual,” the company said. With the government tightening its grip on the ride-hailing industry, the battle over market control—and foreign firms’ role in it—is far from over.
Read MoreMTN and Airtel ink network-sharing agreement in Nigeria, Uganda to cut costs
MTN Group and Airtel Africa have signed an agreement to share network infrastructure in Nigeria and Uganda, a strategic move aimed at reducing rising operational costs while expanding mobile coverage to underserved areas. The rare collaboration underscores a broader shift toward cost optimisation among African telecom giants as currency devaluation and economic headwinds strain profitability. Nigeria, the biggest market for both companies, has been particularly challenging. The country accounts for 40% of MTN Group’s revenue and 34.4% of Airtel Africa’s. However, both telecom giants have struggled with https://techcabal.com/2025/03/17/mtn-nigeria-loses-top-revenue-spot/revenue declines since 2023 due to naira devaluation. The currency slump has inflated network deployment costs, forcing operators to scale back infrastructure investment. By sharing towers, base stations, and fiber-optic networks, MTN and Airtel aim to manage expenses while improving connectivity in remote areas. MTN Group CEO Ralph Mupita said the agreement aims to meet the growing demand for data services and digital financial solutions across Africa. In Nigeria, MTN’s market share grew to 51% in January, adding over 3 million new subscribers to reach a total of 87.5 million. Airtel Nigeria expanded its subscriber base from 56.6 million in December 2024 to 57.6 million in January 2025. “We continue to see strong structural demand for digital and financial services across our markets,” Mupita said in a statement. “To meet this demand, we continue to invest in coverage and capacity to ensure high-quality connectivity for our customers.” Before stirking this deal, MTN Nigeria, a subsidiary of MTN Group, was in discussions with 9mobile, a struggling Nigerian operator that has lost millions of subscribers. The mobile-roaming deal, still under negotiation, would allow 9mobile to use MTN Nigeria’s infrastructure in select areas, while MTN would gain access to 9mobile’s spectrum in return. The new agreement aligns with regulatory efforts. When the Nigerian Communications Commission (NCC) approved telecom tariff increases in January, it required operators to deploy additional infrastructure within three months to improve service delivery. With the new tariffs taking effect in February, telecom companies now have only two months left to comply. Beyond Uganda and Nigeria, MTN and Airtel Africa are exploring further network-sharing opportunities in other African markets, including Congo-Brazzaville, Rwanda, and Zambia. The companies are considering various models, including radio access network (RAN) sharing and agreements focused on fiber infrastructure sharing and construction of new fiber networks. “As we compete fiercely in the market on the strength of our brand, services, and offerings, we are building common infrastructure within the permissible regulatory framework,” Airtel Africa Chief Executive Officer Sunil Taldar. “This allows us to provide a more robust and extensive digital highway while avoiding the costly duplication of infrastructure.” If successful, the partnership could set a precedent for further consolidation in network investments across the continent.
Read MoreJumia, Jiji unfazed as Temu shakes up Nigeria’s $13 billion e-commerce market
Chinese e-commerce giant Temu has made a rapid entrance into Nigeria’s $13 billion online retail market, luring shoppers with ultra-low prices and freebies. However, while the platform is gaining momentum, local rivals Jumia and Jiji see no threat. Since its Nigerian launch in November 2024, Temu has been aggressively courting customers with deep discounts, promotional giveaways, and promises of faster delivery. The company’s expansion strategy mirrors its playbook in other markets, where it has quickly become a dominant force by undercutting competitors on price and leveraging its direct-from-manufacturer supply chain model. Jumia, Africa’s largest e-commerce platform, says it welcomes the competition. “We don’t see Temu’s entry as a bad thing; rather, it’s good for the industry,” said Robert Awodu, regional head of public relations & communication for Jumia’s Sub-Saharan Africa operations. “Since last year, we have been focusing on expanding into secondary cities and rural areas.” Awodu said Jumia’s deep roots in Africa, with operations in nine countries, is a competitive advantage against nonresident firms like Temu. “Ultimately, when the freebies end, people will seek out the option that provides them with the best value, even if it means going offline,” he said. Anton Volianskyi, Jiji’s CEO, said Temu’s product categories don’t significantly overlap with Jiji’s core business. “We don’t bid on very low-priced product categories; we don’t work in the same business model,” he said. “We mainly represent local sellers, meaning that you have a choice of goods and services you could order available today, bargaining price, and get it delivered within one day in most cases.” Unlike Jiji, which specializes in vehicles, real estate, and services, Temu does not yet have a strong presence in these key segments. “We simply don’t feel the impact,” Volianskyi added. “In many of these categories, Temu doesn’t yet offer strong local value or trusted options.” Yet, industry analysts say Temu could disrupt the market in a big way. The platform’s popularity has surged in Nigeria, climbing to the top of Google Play’s rankings, outpacing apps like WhatsApp, Opay, and ChatGPT, according to SimilarWeb, a web analytics tool. A recent report from Euromonitor International noted that Temu’s rapid growth has placed it among the world’s top 20 e-commerce brands—up from outside the top 100 in 2023. Temu attributes its success to its direct-to-consumer model, which cuts out wholesalers and retailers to offer lower prices year-round. “We work with trusted logistics partners to ensure shoppers get their orders reliably and on time,” the company said in a statement to TechCabal. Beyond aggressive pricing, Temu is leveraging consumer trend data to refine its offerings, a strategy that differentiates it from rivals like Amazon and Walmart. Its gamified shopping experience—featuring spinning wheels, countdown timers, and promotional challenges—has proven highly effective in attracting price-sensitive shoppers. The rise of Chinese e-commerce platforms in Nigeria underscores a larger trend: the deep pockets and technological prowess of Chinese firms are reshaping Africa’s digital economy. Temu’s entry follows a broader push by Beijing to support emerging tech businesses, including a recently announced $138 billion government-backed fund to fuel innovation in AI, quantum computing, and e-commerce. “If Temu sets up local operations in Nigeria, it could be game over for Jumia and other players in the space,” said Oluwatobi Akapo, a former business development manager at Jumia Nigeria. However, Temu isn’t just battling local incumbents, it’s also up against Nigeria’s evolving consumer habits. The country’s e-commerce market is projected to double to $26 billion by 2030, driven by rising smartphone penetration and increasing internet access, according to Worldpay, a global payment processing company. Local knowledge, logistics infrastructure, and trust will be key differentiators in the long run. “Jumia isn’t Temu’s only competition,” said Uchenna Uzo, a professor of marketing at Lagos Business School. “The real challenge is adapting to a consumer base that is price-sensitive but also values trust, speed, and reliability.” Whether Jumia and Jiji can leverage their local expertise to fend off Temu’s low-price strategy remains to be seen. But one thing is certain: Temu has shaken up the market.
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