Safaricom fixes years-long router flaw that let users access home fibre for free
Safaricom has fixed a long-standing technical loophole in its Home Fibre network that allowed thousands of customers to access internet service for free or at a heavily discounted rate. The issue dates back to at least 2018 and was only fully resolved in 2024. The flaw, which insiders say cost the company tens of millions of shillings in lost revenue, exposed critical weaknesses in Safaricom’s broadband infrastructure when the telco was expanding rapidly. It also raises questions about internal controls, especially as Safaricom cements its dominance in Kenya’s fixed internet market. The loophole stemmed from weak router authentication protocols on Safaricom’s fixed broadband network, two engineers familiar with the matter told TechCabal. The system used Point-to-Point Protocol over Ethernet (PPPoE), which required both a username and a password. But while usernames were unique to each user, a single, generic password was accepted across the board. “People would often use someone’s account number as the username and apply the general password,” said one of the engineers who spoke on condition of anonymity. Safaricom did not respond to a request for comment. The workaround was quietly exploited by users and, in some cases, aided by Safaricom’s outsourced sales agents. When a subscription lapsed, customers could pay agents—sometimes as little as KES 1,000 ($8)—to reset the router and input new credentials. This would restore service without any official payment to Safaricom, bypassing the full monthly charges that typically range between KES 2,999 ($23) and KES 20,000 ($155). “It became common in certain areas,” another engineer added. “The router would be reset, and someone with access to credentials would get the customer back online without Safaricom ever getting paid.” Because the system only allowed one session per account, this workaround worked best with unused or expired accounts, many of which were hijacked without the knowledge of legitimate users. In other cases, users were knowingly complicit in the scheme. Internally, the Safaricom fibre team knew about the abuse, but the vulnerability proved difficult to resolve quickly. Parts of the system relied on legacy infrastructure from the telco’s early fibre deployment days, and fixes would have required deep changes across the network backend. “This wasn’t something you could patch with one update,” said the engineer. The issue persisted for years as Safaricom rapidly scaled its fixed broadband business, adding thousands of new connections monthly. But by 2024, Safaricom implemented long-overdue changes: unique, complex passwords were enforced for every account, and session restrictions were tightened to ensure that no more than one connection per account could be active at a time. It “If one were to somehow get hold of the username and password, they would still not be able to use it as only one session is allowed,” the engineer said. While Safaricom has not disclosed the exact revenue loss, internal estimates suggest that the loophole cost the company tens of millions of Kenyan shillings—probably more, over several years. Insiders say the losses could have been far greater had the vulnerability not been quietly managed and eventually resolved. According to the latest regulator data, Safaricom controls 36.5% of Kenya’s fixed internet market and serves 678,118 customers, making it the country’s largest internet service provider. Mark your calendars! Moonshot by TechCabal is back in Lagos on October 15–16! Join Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early bird tickets now 20% off—don’t snooze! moonshot.techcabal.com
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👨🏿🚀TechCabal Daily – BEE-n there, earned that
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning. We’re basically South African today. Three out of four stories in today’s TC Daily edition come from the southern tip of the continent. We’re still proudly pan-African, but today, South Africa is driving the headlines. Let’s dive in. South Africans will earn $0.17 per share on MTN’s BEE scheme Safaricom CEO Peter Ndegwa buys more shares in the telecom company Chery’s iCAUR electric cars to debut in South Africa in 2026 Uber drivers plan fresh protests on Tuesday World Wide Web 3 Opportunities Companies South Africans will earn $0.17 per share on MTN’s BEE scheme Image Source: MTN Few countries are as stringent as South Africa when it comes to the Black Economic Empowerment (BEE) scheme. For more than 20 years, the policy, designed to increase participation of blacks and people of colour in the country’s economy, has defined who freely operates—and who does not—across different sectors. In telecoms, South Africa mandates companies, especially foreign players, to give up 30% ownership in their local business to operate in the country. But when that started a kerfuffle among players, South Africa brought an alternative. If companies didn’t want to give up their stakes, then they had to invest in the country’s economy by providing opportunities for locals—and this even included homegrown companies. MTN, South Africa’s largest telecom company, has complied with this alternative through its Zakhele Futhi (MTNZF) Fund, which launched in 2016. It allowed locals to hold shares in the company. But nine years later, the scheme is wrapping up and paying out. From July 28, 2025, shareholders will receive their original investment of $1.10 per share with an extra $0.11–$0.17 as ‘modest gains.’ MTN has other BEE efforts, like the earlier MTN Zakhele, which was launched in 2010 and had stronger returns (R77 per share) when it ended in 2016. Why is MTNZF paying so little this time? The market was volatile. The scheme should have shut down earlier due to poor performance, but MTN’s share price was too low in 2024 to repay investors fairly, so it stayed open. In 2025, things improved; MTN paid off its debts and set aside funds to repay investors. Now, the scheme is winding down. Once the fund finally settles investors, MTN plans to shut it down and delist it from the Johannesburg Stock Exchange (JSE) where it is currently listed. In its final act, the MTNZF could bring joy to faces, and perhaps, another scheme could be on the cards. Paying 2% or more on every transaction adds up fast. For businesses in e-commerce, logistics, travel, fintech, and more, every naira counts. Fincra helps you save more with 1% NGN fees capped at ₦300. Ideal for high-value or high-volume transactions. Get started for free with just your email address! Telecoms Safaricom CEO Peter Ndegwa buys more shares in the telecom company Peter Ndegwa/Image Source: Safaricom Safaricom’s CEO Peter Ndegwa has increased his stake in Kenya’s telecom giant by 40%. At Tuesday’s closing price of $0.20 (KES 25.60) per share, Ndegwa’s 8.7 million shares are now worth around $1.72 million (KES 222.72 million). Why does it matter? 8.7 million shares is a significant jump from the 895,000 Ndegwa held in 2021. When company executives like Ndegwa, who’s also Safaricom’s board chairman, bullishly cop large volumes of shares, it indicates that they believe their stock is undervalued and likely to increase in value. Safaricom may not be every investor’s cup of tea, especially after recent Ethiopia losses, but this could be a strong signal to retail investors that growth lies ahead for the telecom giant—or this could just be irrational optimism; it’s hard to tell, or even bet against a Safaricom. ICYMI: Ndegwa has steadily grown his stake in the company through additional purchases and the telecom’s Employee Performance Share Award Plan (EPSAP), an incentive scheme that grants stock at no cost to high-performing employees. State of play: In March 2025, he received $349,955 worth of shares as part of his $2.2 million pay package. This has further cemented his position as the highest-paid CEO among publicly-listed companies in Kenya. This year, Safaricom CFO Dilip Pal also increased his holding by 65%, now owning 2.2 million shares valued at approximately $435,647. The big picture: The increase in executive shareholding comes at a time when Safaricom’s earnings continue to recover. The telecom firm posted an 11% increase in net profit to $540 million. This growth is primarily attributed to a strong growth in data services and mobile money, alongside reduced losses in its Ethiopia expansion plans. Paga Engine powers the boldest ideas in Africa “Across various use cases and industries, Paga Engine provides reliable rails for your business needs to run smoothly and grow sustainably.” – Tayo Oviosu. Read the full article. Mobility Chery’s iCAUR electric cars will ride on South African roads in 2026 iCAUR/Image Source: Google There’s no doubting it anymore; South Africa may just be the undisputed destination for electric vehicle (EV) brands. Yesterday, Chery, a Chinese car maker, announced that it will launch iCAUR, its EV sport cars, in South Africa by Q1 2026. State of play: The move cements South Africa’s status as the continent’s leading EV market. In Q1 2024 alone, EV sales jumped by over 80% year-on-year, while the government began rolling out new tax incentives to attract foreign manufacturers. Chery’s iCAUR will debut with the iCar 03 and iCar V23, available as both battery-powered electric vehicles (BEVs) and range-extender hybrids. Both are targeted at younger, urban buyers, with a bold, lifestyle-forward design. Between the lines: Chery is not betting blindly. South Africans are warming up to EVs, with policy support and infrastructure development helping shift consumer habits. Chery will open 15 dedicated iCAUR dealership lots in major metropolitan cities, giving it an advantage over newer entrants. Though pricing will exceed iCAUR’s Chinese prices due to duties, the iCar 03 is likely to undercut many competitors in the compact EV segment. Catch up: Chery
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After nine years, MTN’s BEE scheme, Zakhele Futhi to deliver payouts to investors
After nearly nine years, MTN Zakhele Futhi (MTNZF), a Black Economic Empowerment (BEE) investment scheme, will begin distributing returns to shareholders from July 28, 2025. The scheme confirmed this in a statement on Tuesday, noting that while investors will receive their full initial investment back, gains will be modest. Each shareholder will get R20 ($1.10) per share from the scheme, with further R2 to R3 per share expected later. In total, that’s R22 to R23 ($1.20 – $1.27) per share, representing a full return of their original investment and a modest gain. MTNZF was launched in September 2016 to expand ownership among Black South Africans, including individuals and Black-owned entities. Backed by external funding, the scheme enabled broader participation than individual investor contributions alone would have allowed. Cash applicants needed to purchase a minimum of 100 shares, costing R2,000 ($110.00) at the time of the public offer. “The scheme enabled thousands of investors to participate in the company’s growth through accessible shareholding. Supported by additional funding, MTNZF allowed for a larger stake in MTN than shareholder contributions alone could have achieved,” it said. Despite years of market volatility, MTNZF delivered some financial returns. With improving market conditions in 2025, the board opted to fully wind down the scheme while aiming to preserve shareholder value. The scheme delivered a “modest return” to shareholders, “despite the volatility we have seen in the market over the years”, said MTNZF board chair Belinda Mapongwana. Most of MTNZF’s MTN shares were sold last month as part of the scheme’s conclusion. The proceeds are being used to settle outstanding debts. After covering costs and taxes, the remaining funds will be distributed to investors. Originally set to close earlier, the scheme was extended in 2024 due to MTN’s share price slump. Ending it then would’ve risked eroding shareholder value. MTN confirmed that MTNZF is now a cash-only entity focused solely on distributing final proceeds. Once complete, it will be delisted from the Johannesburg Stock Exchange (JSE) and deregistered. “MTNZF is now essentially a cash-only entity and will no longer operate as an investment vehicle,” MTN said. “Its sole purpose now is to distribute the remaining proceeds to shareholders before being delisted from the JSE and deregistered.” Mark your calendars! Moonshot by TechCabal is back in Lagos on October 15–16! Join Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early bird tickets now 20% off—don’t snooze! moonshot.techcabal.com
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Village Capital taps local partners to deploy $4 million fund for early-stage African startups
Village Capital, a global nonprofit known for backing high-impact startups across emerging markets, has selected five entrepreneur support organisations (ESOs) in Ghana, Nigeria, and Tanzania as venture partners in a new $4 million fund. This move, in partnership with the Dutch Entrepreneurial Development Bank (FMO) and the Netherlands Enterprise Agency (RVO), is part of its new initiative: the Africa Ecosystem Catalysts Facility (AECF). The AECF is designed to channel capital into early-stage startups offering local solutions for economic mobility and climate resilience—two of the region’s most pressing challenges. Ghana’s Reach for Change, Nigeria’s Africa Fintech Foundry and Fate Foundation, and Tanzania’s Anza Entrepreneurs and Ennovate Ventures will now serve as venture partners under the program. By partnering with locally rooted organisations in this investment initiative, Village Capital says it’s taking a context-first approach, one that leverages community knowledge and matches local realities rather than one-size-fits-all strategies. They believe this move will de-risk funding and unlock more targeted investments. “This isn’t just about sourcing deals, it’s about making smarter, more informed investments by working alongside those already building and strengthening their entrepreneurial communities, “said Nathaly Botero, Innovations Manager at Village Capital. The AECF aims to bridge persistent funding gaps in the early-stage ecosystem by giving ESOs a seat at the table as co-evaluators and ecosystem builders. In 2024, Village Capital invested $850,000 in two African agritech startups: Aquarech (Kenya) and Coamana (Nigeria). Since its founding in 2009, Village Capital has raised over $7 billion in investment capital to support about 1800 startups Mark your calendars! Moonshot by TechCabal is back in Lagos on October 15–16! Join Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early bird tickets now 20% off—don’t snooze! moonshot.techcabal.com
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👨🏿🚀TechCabal Daily – GTCO goes hunting
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy Buhari Day. Today was declared a public holiday to honour former President Muhammadu Buhari who passed on. Whether you’re catching up on rest or mentally grading his report card (be honest, what did you score Buhari for “economy”?), we hope you’re enjoying the break. Let’s get into today’s dispatch GTCO goes in search of foreign capital on the LSE Nigerians used 1.04 million terabytes of internet data in May Egypt to list its stakes in three companies Nigeria’s broadband penetration reaches 48.81% in May World Wide Web 3 Opportunities Banking GTCO’s dual-listing on LSE is a move to grow revenue from non-Nigerian businesses Image Source: GTCO On July 9, Guarantee Trust Holding Company (GTCO)—which houses GTBank, Nigeria’s smallest tier-1 bank by assets—listed 2.29 billion ordinary shares on the London Stock Exchange (LSE). After this move, it became the first financial services firm to be listed on both the Nigerian Exchange (NGX) and the LSE. State of play: It’s a clear push to grow GTCO’s revenue outside Nigeria, which still accounts for 67% of the company’s income. Listing abroad gives the company access to deeper pools of capital and puts it in front of a broader set of investors. It also helps address one of its structural constraints at home: raising capital locally can be slow and does not attract much foreign interest. Catch up: GTCO began its fundraising by targeting domestic investors and raised ₦209 billion ($136 million). That approach let the company preserve its largely retail Nigerian base. With a remaining gap of about ₦150 billion ($98 million) to reach the capital requirements set by Nigeria’s Central Bank, it turned to international markets to complete the raise. Here’s CEO, Segun Agbaje: “It was time to test whether the macroeconomic story of Nigeria should change, or whether you could go out and raise money in the international market.” The bank is also looking to reprice its stock. Shares listed locally may not reflect the company’s true value, according to Agbaje. A second listing gives it a shot at reaching investors who might be willing to pay more. Between the lines: GTCO is one of the few African banks with a dual listing, and only the third large corporation, after Airtel Africa and Seplat, with a dual-listing on the NGX and LSE. It indicates GTCO’s growing regional ambition and frustration with the limits of Nigeria’s capital markets. GTCO wants more than capital. It wants a new audience; one with deeper pockets. Paying 2% or more on every transaction adds up fast. For businesses in e-commerce, logistics, travel, fintech, and more, every naira counts. Fincra helps you save more with 1% NGN fees capped at ₦300. Ideal for high-value or high-volume transactions. Get started for free with just your email address! Telecoms Nigerians burned through 1.04 million terabytes of internet data in May despite telecom tariff hike Image Source: The Guardian Nigeria Data is expensive, but Nigerians are still burning through it. Get this: Mobile network operators (MNOs) recently hiked data prices by 50%, but Nigerians turned around and consumed 1.04 million terabytes (TB) in May 2025 alone, the highest monthly record since January 2023. (Side-eyeing everyone reading this on mobile data right now). Since Nigerians crossed the 1 million TB mark in January 2025, they’ve not looked back. Yet, as Nigerians use more data, fewer of them are actually online. Per the Nigerian Communications Commission (NCC), the telecom regulator, internet subscriptions on MTN, Airtel, Globacom, and 9mobile declined from 141.4 million in April to 141 million in May. This decline was driven by two operators: MTN and 9mobile. This means Nigerians are adjusting to the new prices by either paying more or logging off completely. So, why is data usage going up? Simple. People are most likely buying bigger data bundles to make their data ‘last longer.’ Fewer users, but heavier consumption per head. Between the lines: MTN still holds the crown in the telecoms race with 52.33% of mobile market share in Nigeria. Meanwhile, Airtel is climbing up, having gained 342,597 within a month. Globacom stayed flat at 20.6 million users. This non-movement might be a relief after recording an all-time low market share of 11.96% in April due to terrible service quality. But falling from its former Glo-ry to being number three? That’s not really a win. Nigeria’s mobile network space is still volatile with fierce competition and price shocks. Yet it is not slowing down because no matter the chaos, Nigerians keep finding ways to stay online and scroll, stream and search. Paga Engine powers the boldest ideas in Africa “Across various use cases and industries, Paga Engine provides reliable rails for your business needs to run smoothly and grow sustainably.” – Tayo Oviosu. Read the full article. Economy Egyptian government to list its stakes in three companies on the EGX EGX headquarters/Image Source: Google The Egyptian government plans to list its stakes in three companies on the Egyptian Exchange (EGX) as it rushes to meet key milestones in its IMF-supported macroeconomic reform agenda. These companies are: Banque du Caire, a commercial bank; Safi, a bottled water company; and Wataneya, a filling station operator. Why does it matter? The listings are expected to happen between August and September 2025. It is part of a larger economic reform agenda agreed upon with the IMF, aimed at strengthening Egypt’s privatisation programme. The government intends to unlock up to $6 billion in fresh investments by offering stakes in six companies on the EGX before the first quarter of 2026. Improving momentum on the privatisation programme could help enhance investor confidence. ICYMI: Egypt has been under pressure to accelerate its stalled privatisation drive. The planned IPOs of Safi and Wataneya date back two years, when they were listed among 35 companies in the government’s original privatisation scheme. State of play: The stakes offered by the government for each of these companies are believed to be under 30%. The state aims
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I used a crypto card for the first time; “spending crypto like cash” may no longer be an empty hype
On one random Wednesday morning recently, a dispatch rider called to confirm my availability. He had a parcel for me, which surprised me; I wasn’t expecting a delivery from anywhere that week. Unfortunately, I was unavailable to pick up this mystery package, and we rescheduled the delivery for the following week. A week dragged into a month, and after periods of scheduling misfires, I finally managed to pick up the package. It was a crypto debit card. That’s when I remembered. Back in May, I had replied, on the spur of the moment, to a video post asking to demo the product. The video simply shows someone withdrawing cash from an automated teller machine (ATM) with a crypto card. A few DMs later, Damilare Aregbesola, West Africa Lead for Base, reached out. He oversaw the region’s Base Batches Build-a-thon, a mentorship and product development programme for Web3 builders. The crypto debit card project demoed in the video was part of its portfolio. It claims to be the first crypto card built for Africans. Aregbesola made the arrangements, and the card was delivered to me at no cost. When I glanced at the delivery receipt, the total cost of the card and delivery was a little over ₦11,000 ($7.2). It came in a matte-black sleeve. Inside was a black card—minimalistic but rough around some edges. The packaging was peppered with the confident crypto marketing lingo that many startups seem to have borrowed recklessly: “Spend crypto like cash.” My Zerocard crypto debit card came in a matte-black sleeve, with spirit-lifting quotes about building hard things/Image Source: TechCabal The product was Zerocard’s, a startup still in beta that issues crypto debit cards, allowing users to spend stablecoins (USDC) directly from their wallet. It runs on Base, a blockchain network developed by Coinbase, with traditional payment infrastructure handling the backend. I had never seen or used a crypto debit card before this one, so I wasn’t sure what to expect. It sounded slick. But I wasn’t sold yet. I slotted the card into my wallet, making a mental note to test it afterward. 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Aregbesola introduced me to Temidayo Folajin, a product designer and CEO of Zerocard, who patiently guided me through the setup. It took about two weeks due to issues navigating the app. First, I was added to an exclusive group of beta testers. Then, after Folajin granted me access to the Android Package Kit (APK) version of the app, I installed it on my phone (iOS users could join the test via TestFlight). I completed a Know Your Customer (KYC) check using my full name, date of birth, Bank Verification Number (BVN), and uploaded a valid means of national identification. In a few minutes, my account was verified and ready. Then came the first real bump: activating the card. Since I already had the physical card in hand, I needed to tie it to my account. It felt a bit like putting the cart before the horse, because I received my card before ordering it on the app. On the app, I clicked “Order Card”, filled in details printed on the physical card I already owned, and linked it to my account. After that, I
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Safaricom CEO Peter Ndegwa increases stake to $1.73 million
Safaricom CEO Peter Ndegwa has increased his stake in the telecom giant by 40% to 8.7 million shares in the year ended March 2025, according to the company’s latest disclosures. Ndegwa, appointed Safaricom CEO in April 2022, has significantly increased his stake in the company over the past two years, from 895,000 shares in 2021, a holding that had remained unchanged since he first acquired it. At the Monday closing price of $0.2 (KES 25.70) per share, Ndegwa’s 8.7 million‑share stake in Safaricom is valued at approximately $1.73 million (KES 223.59 million), highlighting the growing value of his stake as he deepens his investment in the company. The rise in the value of Ndegwa’s stake suggests he purchased additional shares and benefited from Safaricom’s Employee Performance Share Award Plan (EPSAP), which was awarded as part of his performance-based compensation. In the year ended March 2025, he received $349,955 (KES 45 million) worth of shares as part of his total pay package of $2.2 million (KES 294.2 million), cementing his position as the highest-paid chief executive among companies listed on the Nairobi Securities Exchange (NSE). Under Safaricom’s employee performance share award plan, the company purchases its shares from the open market and allocates them at no cost to selected employees. These shares vest after three years, after which employees can sell or retain them in their accounts. Listed companies and startups widely use share-based compensation as an extra incentive to align employee interests with those of shareholders and the company. It also helps companies retain high-performing staff. Safaricom CFO Dilip Pal also increased his shareholding by 65% to 2.2 million shares, up from 1.3 million the previous year. His holding is valued at approximately $436,787 (KES 56.54 million). The surge in executive rewards, including EPSAP, follows a recovery in Safaricom’s earnings. For the year ending March 2025, the telco reported an 11% increase in net profit to KES 69.8 billion ($540 million), driven by strong growth in mobile money and data services, as well as reduced losses in Ethiopia. The performance signals a return to growth after two years of flat profits, weighed down by the high costs of entering the Ethiopian market. Still, Safaricom is betting on East Africa’s most populous country, which sees long-term potential despite a slow start. Mark your calendars! Moonshot by TechCabal is back in Lagos on October 15–16! Join Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early bird tickets now 20% off—don’t snooze! moonshot.techcabal.com
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Imo State wants to become Nigeria’s AI capital. Can it bank on its local talent?
When Sullivan Emerald began his secondary education in Nekede, a quiet rural community near Owerri, his future ambitions were framed by stories his father read aloud from local newspapers—tales of brilliant Nigerian engineers who had made it big in the oil and gas industry. Inspired, Emerald aspired to study petroleum engineering. But after multiple failed attempts to secure admission into his desired course at the Federal Polytechnic Nekede, he reluctantly opted for computer science. That reluctant detour, however, turned out to be a revelation. It sparked an interest in programming and a passion for software development that would align him with a bigger vision: positioning Imo State at the forefront of Nigeria’s artificial intelligence (AI) push. Now a budding software engineer at Adminting, an ad-tech startup operating from the Imo Digital City, Emerald is part of a generation of young Imolites riding a new wave: AI. For these young people, Imo’s ambition to become Nigeria’s AI capital is a chance to compete globally without ever leaving home. A digital uprising in the heart of the southeast Geographically, Imo State is compact but vibrant, tucked in Nigeria’s southeast and surrounded by Anambra, Abia, Rivers, and Delta states. It boasts lush greenery, rich red soil, and an interwoven network of rivers and streams that sustain its largely agricultural communities. Imo State’s literacy rate has shown a steady upward trend, rising from 80.8% in 2010 to 92.1% in 2023, and is projected to hit 96.43% by 2025, making it the leading state in general and youth literacy in Nigeria. This progress is largely credited to a comprehensive free education policy introduced in May 2011 by former Governor Rochas Okorocha. “Governor Okorocha reawakened the minds of Imo people through his free education policy,” said Kelechi Ugo, a journalist based in the state. “His initiative, which covered education from basic through tertiary levels, was a game-changer.” However, the foundation for this policy was laid by Okorocha’s predecessor, Governor Ikedi Ohakim, who had earlier ordered the implementation of free education across all levels. Ohakim also spearheaded the return of some schools to missionary organisations to enhance management and improve educational outcomes. That strong educational foundation now forms the bedrock of the state’s tech renaissance. At the centre of this digital evolution is the Ministry of Digital Economy and E-Government, created in 2022 under Governor Hope Uzodinma. The ministry’s flagship agenda, known as IDEA 2022–2026, aims to train 300,000 Imo youth in high-demand skills, including AI, data analytics, machine learning, and cloud computing. Dr. Chimezie Amadi (Right), Commissioner for Digital Economy and E-government, Imo State, inside the Imo Digital City. Image Credit: Brandnew Emmanuel. “In Imo, the idea of literacy has changed,” said Chimezie Amadi, the state’s Commissioner for Digital Economy and E-Government. “It’s no longer about reading and writing, it’s about using digital tools to solve real problems.” The Imo State government says it has trained over 40,000 people through its Skillup Imo program, equipping them with digital and AI skills. The program has already produced two cohorts—5,000 graduates in the first and 15,000 in the second. About 150 of these graduates have gone on to secure remote freelance jobs, launch their startups, or actively contribute to the expanding tech ecosystem within the state, according to Primus Amaefule, the project manager of Imo Digital City. Training activities are centered at the Imo Digital City in Owerri, which serves as a dynamic hub for boot camps, coding workshops, and AI education, including programs for primary and secondary school students. The state has partnered with international tech firms, including Cisco, Huawei, and Zinox, to provide technical expertise. Meanwhile, local companies like Frankbotics and other tech hubs, primarily located in Owerri, help identify and train participants from schools within the communities. One of the classrooms in the Imo Digital City facility. The state’s AI drive extends beyond students: farmers are learning how to use generative AI to boost yields; health workers are being onboarded onto new electronic medical record systems powered by AI; and state databases are being overhauled to support data-driven governance. Perhaps most ambitious is the effort to build Nigeria’s first sub-national AI research centre in Imo’s Digital City. “We’re collecting biometric data of all our farmers,” Amadi explains, “so we can train AI models to recommend the best crops per region, detect pest patterns, and guide support policies.” The state is also collecting land data to automate land services end-to-end across the state through the Land Information Services Centre, according to Primus Amefule. “They had special GIS training so that they could do land administration in Imo State. So if you want to register your land, it is already digitised,” said Amaefule. “We also have a mandate to develop websites for all the ministries in the state International partners—including Ericsson, UNDP, and the EU’s Digital SME Alliance are already providing technical support to the program. Some have even signed talent exchange programs and startup accelerator deals. But for all the momentum, a pressing question looms: Can this digital vision survive the turbulence of insecurity gripping the state? A crown under siege While the Imo State government aspires to brand the state as Nigeria’s innovation hub, the reality on the ground often paints a far more troubling picture. Between 2020 and 2025, insecurity in Imo State has resulted in significant loss of lives and widespread fear. Over 650 people were killed due to criminal violence, including attacks by separatist groups, criminal gangs, and gunmen from January 2020 to May 2024. Notable incidents include the killing of at least 30 travelers in a single attack along the Okigwe-Owerri highway in May 2025. The violence has also targeted clergy and religious personnel, with more than 50 victims recorded between 2015 and 2025. Mass graves have been discovered in areas like Orsu LGA, where over 200 human remains were found, highlighting the scale of killings and the profound impact on local communities. The financial burden of insecurity is equally severe, particularly in terms of ransom payments for kidnappings. From
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As card fraud surges, what payment methods remain for South Africa’s online grocery shoppers?
When I saw an unfamiliar Uber charge on my account, I quickly blocked my bank card. After that, it no longer felt secure to use my card to shop online. But, the online grocery delivery apps I use often—Checkers Sixty60 and Pick n Pay asap!—only accept card payments leaving shoppers like me locked out of convenient access. In South Africa, online grocery shoppers who experience card fraud often become hesitant to use cards for payments again. For those who have grown accustomed to the ease of buying with a tap or click, returning to long queues and bulky trolleys at physical stores feels like a frustrating step backward. “While I was at work, I noticed two unexpected payments to Shein on my card, plus some boat-related charges—all adding up to R2800. I blocked the card immediately. Ever since, I have stopped using my card details for online shopping. It feels safer, but it’s also a pain because I really do not enjoy going to stores,” said Thembi Zulu, a restaurant manager in Johannesburg. In South Africa, 68% of total card fraud losses is due to card-not-present fraud, which is primarily associated with online transactions, placing South Africa among the world’s most affected regions. 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Both Checkers Sixty60 and Pick n Pay asap! have built their digital checkout experiences around card payments—accepting Visa, Mastercard, and select debit cards. This approach has served them well, supporting rapid growth and high customer retention. As of July 2025, Checkers Sixty60 had surpassed 5.2 million app downloads, expanded to over 600 locations, and posted a 47.1% surge in sales during the second half of 2024. Pick n Pay’s asap! app followed close behind, reaching 500 locations and growing 42.5% over the same period. In-store, retailers offer payment options from QR codes and crypto to Buy Now Pay Later (BNPL) and mobile pay options. However, these services are not extended to online grocery shoppers. The State of Consumer Payment in South Africa report by Stitch in partnership with a global research firm, Censuswide, shows that consumers are quickly moving away from using cash and cards, and are choosing other digital payments alternatives instead. Speaking to TechCabal, Pick n Pay said the company was actively working to expand its digital payment capabilities. “We continue to enhance our full online shopping experience as seen with the integration of PnP asap! and Smart Shopper into a single app. Broadening our range of flexible and secure payment options remains a key priority,” a spokesperson said. What alternatives do shoppers have? In case shoppers find themselves in a similar situation as mine, I have done the homework for alternatives that exist. Mr D, for instance, offers groceries from Pick n Pay with both card and EFT options, and the delivery fee remains a modest R35. For shoppers who pick and choose from multiple stores, OneCart offers that flexibility with access to Woolworths, Makro, and Pick n Pay. It supports a broader range of payment methods including credit or debit cards and Ozow, though the delivery fee is slightly higher at R70. Takealot does grocery deliveries too, charging R75 for next-day groceries, while offering a wide suite of payment choices. And Makro and Game promise
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Luno co-founder’s MoneyBadger raises $400,000 pre-seed
MoneyBadger, a South African crypto payments startup founded by Luno co-founder Carel van Wyk, has raised a $400,000 (R7 million) pre-seed round to scale adoption of its Bitcoin payment infrastructure. The raise, led by P1 Ventures and backed by crypto-native angel investors—with a portion of the investment made in Bitcoin—marks the company’s first external funding round since emerging from stealth. Co-founded with Carl Kritzinger, MoneyBadger is now integrated into over 1,600 retail outlets, including supermarkets, fashion stores, and convenience chains. The company was launched in 2022 after Pick n Pay, one of South Africa’s largest grocery chains, sought a way to embed Bitcoin payments at checkout. Pick n Pay debuted crypto payments in February 2023. “Thanks to advances in Bitcoin payments technology, especially the Lightning Network, we delivered a working prototype that was faster and cheaper than tap-to-pay with credit cards,” Van Wyk said. MoneyBadger’s platform allows customers to pay for everyday items using Bitcoin via QR codes or integrated POS terminals. The startup claims to be processing over R1.4 million ($83,000) in monthly crypto transactions, with Pick n Pay alone contributing more than R1 million ($59,000), according to the retailer’s head of financial services, Deven Moodley. “Crypto payments fit into our Ways2Pay strategy of giving more customers mechanisms to pay in our stores,” said Moodley, highlighting Pick n Pay’s plan to provide diverse payment options to shoppers. MoneyBadger integrates with Binance, Luno, VALR, and AltCoinTrader wallets, while Luno, VALR, Blink, and Aqua have adopted its proprietary QR scanning technology. MoneyBadger plans to use the new capital to expand its merchant footprint through partnerships with Tier 1 payment providers, ecommerce platforms, and national QR code networks. The move reflects growing demand for retail crypto utilities in South Africa, where customers are increasingly using digital assets to pay for groceries, bills, and travel. Its rival, Luno Pay—a payments spinoff from crypto exchange Luno—reported over R20 million ($1.1 million) in Bitcoin purchases across its network since its November 2024 launch, with current monthly volumes near R2 million ($112,000). “Bitcoin has grown about 3x in the last couple of years. We don’t see that growth slowing,” said Van Wyk. “That makes Bitcoin adoption attractive for retailers.” P1 Ventures’ Managing Partner, Hisham Halbouny, described the investment as a bet on crypto’s practical use case in frontier markets. “While the West debates regulation, Africa is where the future of crypto utility is being written,” he said. Mark your calendars! Moonshot by TechCabal is back in Lagos on October 15–16! Join Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early bird tickets now 20% off—don’t snooze! moonshot.techcabal.com
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