Artificial Intelligence Chat: What is it, and how can it be used?
How we use technology is changing, and one of the most significant shifts is how computers can now talk with us almost like real people. This is where artificial intelligence chat comes in. You might have seen it when chatting with customer support or using apps that reply to your questions automatically. But AI chat has gone way beyond just giving basic replies. It can now hold proper conversations and help in many ways online. This article breaks down what AI chat is, how it’s being used increasingly, and what it means for tech in Africa. What is Artificial Intelligence chat, and how does it work? Artificial intelligence chat is a technology that allows computers to talk with people naturally. You’ve probably used it when chatting with customer service on a website or using a virtual assistant like Siri or Alexa. These systems are built to sound more like humans and less like machines, making online conversations smoother and more manageable. How Artificial Intelligence Chat works AI chat uses two main technologies: 1. Natural Language Processing (NLP) NLP helps computers understand human language. It allows AI chat systems to: Break down sentences into smaller parts Recognise the meaning of words, even when they’re used differently Understand grammar and sentence structure Pick up on emotions like frustration or happiness Tell the difference between similar words based on the context This is how the system understands what you’re saying, even if you don’t type it perfectly. 2. Machine Learning (ML) Machine learning helps the system get better over time. It learns from real conversations and uses that information to: Improve future responses Recognise patterns in how people ask questions Provide more helpful and natural answers There are different types of machine learning: Supervised learning: learns from example questions and answers Unsupervised learning: finds patterns in data without help Reinforcement learning: learns by making mistakes and trying again All of this combined allows AI chat to keep improving with every conversation. How AI Chat is different from old chatbots Old chatbots were limited. They only responded to a small set of pre-written questions and couldn’t handle anything outside them. They were more like a list of answers than a real conversation. Today’s artificial intelligence chatbots are much more intelligent. They can: Understand open-ended questions Adjust to different ways people talk Keep learning and improving Create original responses based on what you say With the help of generative AI, they don’t just fetch answers, they can come up with new responses, making conversations feel more real and helpful. How AI Chat is being used in 2025 AI chat is being used more and more across different industries. From customer service to education, businesses are finding simple ways to use chatbots to talk to people, solve problems, and make things run more smoothly. 1. Content creation AI is now playing a significant role in how people make content. From podcasts to videos and beyond, these tools are helping creators save time and do more with less effort in 2025. AI in Podcast Creation AI tools are making it easier to plan, record, and share podcasts. Here’s how: You can use tools like ChatGPT to develop episode ideas, create outlines, and even write scripts. Editing tools like Auphonic can clean up your audio by removing background noise and ensuring everything sounds clear. AI can write show notes and episode summaries that help your podcast rank better on Google. Some tools can turn your old blog posts into podcast episodes, saving you the stress of starting from scratch. Voice cloning technology allows you to record or keep the same voice across episodes in different languages. AI in video creation Making videos used to take a lot of time and money. But with AI, that’s changing. Tools like Synthesia and HeyGen let you turn text into videos using AI characters, with no need for a camera or actors. With apps like RunwayML and Sora, you can create stunning visuals using just words or photos. AI editing tools can cut videos, add transitions, and adjust audio and colors without much manual work. You can also use AI to break long videos into short clips for TikTok, Instagram, or YouTube Shorts, complete with captions and visuals. What this means for content creators AI allows more people to create quality content without needing a big team or budget. Whether you’re a small business, a solo creator, or a marketer, AI tools can help you make videos and podcasts faster, easier, and better. It’s a new way to share stories, reach more people, and grow your online presence. 2. Customer service One of the most common uses of AI chat is in customer support. Instead of waiting for a human agent, people can now get quick answers from chatbots at any time of the day. Popular tools include ChatGPT by OpenAI, Gemini, and Microsoft Copilot, which help companies provide fast, smart replies. AI chat helps by: Answering frequently asked questions right away Handling simple requests like checking order status or resetting passwords Being available 24/7, even on weekends and holidays Freeing up customer service teams to handle more difficult questions Some chatbots are even intelligent enough to understand how a customer feels and can respond helpfully and respectfully. Others can speak different languages, which is excellent for businesses that serve people in many countries. 3. Marketing and Sales AI chat also plays a significant role in helping businesses attract and keep customers. It can: Start chats with people visiting a website and collect their contact info (e.g., using Tidio, Drift, or Intercom) Suggest products based on what someone has looked at or bought before Help with upselling and cross-selling (like recommending a better option or an extra item) Answer questions and even complete sales outside regular business hours Chat with people directly on platforms like Instagram, Facebook, or WhatsApp using tools like ManyChat or MobileMonkey 4. Healthcare Hospitals and health services are now using AI chat to make care more accessible.
Read MoreWhy Visa is banking on contactless payments for its next growth wave in Africa
Global payments giant Visa is doubling down on contactless payments across Africa as part of a broader strategy to expand its relevance in markets where traditional card usage is still limited. “We think contactless payment is going to grow [in Africa] just as we’ve seen it grow everywhere around the world,” Godfrey Sullivan, Visa’s SVP and Head of Products, Solutions, and Digital Partnerships for Central and Eastern Europe, Middle East, and Africa (CEMEA), told TechCabal on the sidelines of GITEX Africa 2025. “It is going to become how people pay face-to-face.” Visa’s bet signals a critical phase in its Africa playbook, where it is investing in newer, faster payment infrastructure to compete with homegrown systems. It sees an untapped opportunity in Africa, where cash remains dominant despite the rise of mobile money and real-time payment platforms like the Nigeria Inter-Bank Settlement Systems (NIBSS). The company believes contactless payments—via cards, mobile phones, and biometrics—can offer a faster and more scalable solution. “In Morocco, we introduced contactless payments a couple of years ago. Now 41% of transactions conducted are contactless,” Sullivan said. “It’s a far more secure way for consumers and businesses to receive payments.” The payments giant prioritises this model across its key African markets—Nigeria, South Africa, Kenya, Egypt, and Morocco—where adoption of digital payments has accelerated but remains fragmented across QR-based solutions, real-time payment systems, and local fintech platforms. These systems have struggled with reliability and fraud, according to Sullivan. “In Nigeria, people are going to supermarkets and waiting for transactions to clear for minutes,” he said. “Visa transactions clear in 200 milliseconds.” Sullivan also noted that many local real-time platforms lack effective dispute resolution mechanisms, a weakness Visa sees as a strategic advantage. “Many of them are reaching out to us, saying, “How can we have better security?”” The strategic pivot For Visa, the contactless shift is not just about enabling tap-to-pay at physical merchants. The firm is working to embed its infrastructure more deeply into Africa’s growing digital payment ecosystem. It is rolling out Visa Pay, a new real-time B2B payment platform in the Democratic Republic of Congo. Sullivan said the platform is currently undergoing regulatory approvals. Visa is also exploring the integration of stablecoins into its broader payment ecosystem. Visa’s approach in Africa hinges heavily on partnerships with local fintechs and banks to navigate the fragmented regulatory and infrastructure landscape. The firm now works with over 1,000 issuers across the continent. “You need to have partners in each of these different countries… the fintech community, particularly, is central to our broader strategy,” Sullivan said. In December 2024, the payments giant invested in Moniepoint, the Nigerian fintech unicorn known for its dominant agent banking infrastructure in Nigeria. Moniepoint processed over 5.2 billion transactions in 2024 and serves over 1.6 million businesses. Its deep roots in the informal economy give Visa a channel to scale contactless offerings in everyday commerce. Visa is trying to strike a delicate balance: expand fast in Africa without alienating fintechs increasingly wary of high fees and dependence on foreign networks. Sullivan’s message was clear: Visa doesn’t just want to be a card company in Africa, it wants to be the rails, working with everyone from banks to fintechs to modernise how payments move. Business outlook With the rising cost of relying on international card networks like Visa and Mastercard after a naira devaluation, Nigerian fintechs are increasingly turning to local alternatives such as Verve and AfriGo. OPay and Moniepoint have collectively issued more than 17 million Verve cards. In March 2025, PalmPay and Moniepoint partnered with AfriGo to roll out contactless payment cards and tap-to-pay solutions across Nigeria. But Visa says growth in the region hasn’t slowed. “We still see Visa growing tremendously across the continent. The rate of growth is only getting faster,” Sullivan said. The company plans to invest $1 billion in Africa by 2027, and says it’s on track. With nine offices and over 500 employees, Sullivan said, “Africa is a super important region for us—and we’re just getting started.”
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👨🏿🚀TechCabal Daily – Lori’s discounted ride
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! How does it feel to be back to work? RIP Pope Francis. The tech world wouldn’t forget the AI-generated image of the Latin American priest in a white puffer jacket that went viral in 2023. Speaking about AI, here’s one AI tool to ease you back into work. The AI tool can read your screen and listen in on your calls. No, it’s not just another AI assistant. Think of it as a super AI assistant. Let’s delve into today’s edition Lori tweaks business model with new fund raise Niger waives right-of-way Fisayo Durojaye on angel investing in Africa World Wide Web 3 Opportunities Logistics Lori tweaks business model with new fund raise Techcabal Challenges with working capital have been the constant denominator for logistics startups across Africa. Nairobi-based startup Lori claims it may have found the silver bullet to solving these challenges. Launched in 2016 by Jean Claude Homawoo and Josh Sandler, Lori set out to reduce the cost of moving goods across the continent by connecting shippers with transport providers through its aggregator platform. Lori provides the working capital to help transporters deliver goods to its customers’ vendors. The startup’s typical customers—manufacturers, distributors, and high-volume shippers—are characterised by long payment cycles. Their vendors typically have to wait 30 to 90 days for manufacturers and distributors to settle invoices. On the other hand, the transporters must be paid almost immediately, part before the trip and the rest upon fulfillment. However, a common challenge with this model is that Lori’s customers—manufacturers and distributors—often do not pay back debt on time, creating working capital challenges for the startup. Lori’s nine years of hard-won experience in Africa’s logistics industry has informed a tweak in its business model to solve this challenge. Under its new setup, the logistics startup draws on an invoice facility at the bank, prices the interest at its rate, and uses the funds to kick off the trip and pay the driver. The bank charges an 8% fee for financing the process. The startup, which has its eyes on profitability this year, also raised a $2 million bridge round in 2024 However, that round came with a steep valuation cut. The logistics platform once valued at $120 million saw its valuation slashed to about $5 million in the latest round. TechCabal caught up with Lori’s CEO; he shared how the logistics startup has doubled its take rates, kept receivables low, and improved margins and EBIT among other thoughts about Africa’s logistics space. Read the full interview here 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. 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The state, located in north-central Nigeria, became the twelfth Nigerian state to implement the policy designed to incentivise telecom operators and expand internet access. Why does this matter? RoW fees—levied by state governments for laying fibre optic cables—have long been a bottleneck to broadband expansion across Nigeria, creating high entry costs for telecom operators like MTN Nigeria, Airtel Africa, and Globacom.
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👨🏿🚀TechCabal Daily – Got $2 for Gold?
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy Easter Monday! Long weekends are for resets and maybe rethinking how we save. In South Africa, that reset now includes owning gold from just R50 ($3). Yes, real gold. Let’s delve into some of the tech news that happened over the weekend! Gold goes digital in South Africa Access Holdings spent the most on tech in 2024 Paystack vs. Zap Africa: What’s really in a name? Twiga Foods acquired three FMCG distributors World Wide Web 3 Opportunities Crypto Gold goes digital in South Africa Image Source: Access Bank South African crypto platform Mesh.trade , has launched tokenised Kruggerrands in partnership with Troygold, allowing anyone to invest in gold for as little as R50 ($3). Each token is backed 1:1 by a physical Krugerrand stored in a vault in Johannesburg and audited monthly. The move brings a centuries-old asset into the blockchain era. Tokenization lets investors own fractions of a gold coin, tracked on the blockchain and accessible via a digital wallet. Users can redeem tokens for actual coins or trade them online. Why it matters: Troygold and Mesh.trade say they’re democratising access to gold—long seen as a hedge against inflation and rand volatility—especially in a year when global gold prices are on the rise. This year, Gold prices have surged more than 25%. Krugerrands are also VAT-free, fully auditable, and redeemable. This isn’t South Africa’s first gold investment product, (hello, NewGold ETF), but it is the first crypto-native, locally backed gold token. It blends traditional finance with blockchain innovation—and does it under regulatory oversight. Mesh.trade holds one of South Africa’s new Crypto Asset Service Provider licenses. South Africa now joins Nigeria and Zimbabwe in exploring digital gold. Nigeria’s LCFE launched Eko Gold Coins in 2021 and Zimbabwe’s central bank introduced a gold-backed digital currency But this tokenized Krugerrand, pegged to a globally trusted coin and built on local infrastructure, may be Africa’s cleanest fusion yet of blockchain and bullion. Get the best African tech newsletters in your inbox Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Bouvet Island Brazil British Antarctic Territory British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Canton and Enderbury Islands Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos [Keeling] Islands Colombia Comoros Congo – Brazzaville Congo – Kinshasa Cook Islands Costa Rica Croatia Cuba Cyprus Czech Republic Côte d’Ivoire Denmark Djibouti Dominica Dominican Republic Dronning Maud Land East Germany Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories French Southern and Antarctic Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Honduras Hong Kong SAR China Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Johnston Island Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau SAR China Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Metropolitan France Mexico Micronesia Midway Islands Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar [Burma] Namibia Nauru Nepal Netherlands Netherlands Antilles Neutral Zone New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island North Korea North Vietnam Northern Mariana Islands Norway Oman Pacific Islands Trust Territory Pakistan Palau Palestinian Territories Panama Panama Canal Zone Papua New Guinea Paraguay People’s Democratic Republic of Yemen Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Réunion Saint Barthélemy Saint Helena Saint Kitts and Nevis Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Korea Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syria São Tomé and Príncipe Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu U.S. Minor Outlying Islands U.S. Miscellaneous Pacific Islands U.S. Virgin Islands Uganda Ukraine Union of Soviet Socialist Republics United Arab Emirates United Kingdom United States Unknown or Invalid Region Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Wake Island Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Åland Islands ?> Gender Male Female Others TC Daily Events <!– Next Wave –> <!– Entering Tech –> Subscribe 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. Banking Access Holdings spent the most on tech in 2024 Access Holdings, the parent company of Access Bank, spent a jaw-dropping ₦193.5 billion ($120.5 million) on tech in 2024. The bank spent 147% more on tech than it did in the previous year, more than its competitors—GTCO, UBA, and Zenith Bank. GTCO, for instance, spent ₦88 billion ($56.8 million) on IT expenses, Zenith spent ₦67.3 billion ($43 million), while UBA spent ₦48 billion ($30.5 million). Much of Access Bank’s tech expenses were spent on upgrading the bank’s core banking software and beefing up cybersecurity to drive down fraud losses. Access Bank told TechCabal reporter Bunmi Bailey that most of the increases are “vendor-driven, especially in areas like licensing, technical support, and niche services.” On the other hand, analysts say they are trying to keep fintech upstarts like OPay and Moniepoint from stealing their lunch. Some also say that the banks are trying to drive down fraud losses. The result so far? Fraud losses dipped 73%, from ₦6.15 billion to ₦1.64 billion, for Access Bank. There is more in Bailey’s report. Zap by Paystack for quick bank
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Fisayo Durojaye wants investors to better differentiate a scalable idea from an empty one
Fisayo Durojaye has lived many lives. He’s been an investment banker, a venture capitalist, and an educator. Throughout his career, Durojaye has held the belief that local context is crucial in making good investment decisions. This ideology has served him well by shaping his approach to angel investing, which has already yielded an exit, informed his venture capital career, and formed the foundation of his VC course, Immerse VC. He has invested in three Nigerian startups as an angel investor: Oneport 365, a Nigerian logistics startup that raised $5 million in seed funding (which he has exited); Shuttlers, a startup digitising shared commutes; and Homefort, a clean energy startup. While this may not make him a prolific angel investor by volume, his hands-on support in helping these startups raise capital has earned him his stripes in the ecosystem. “All three [companies] were structured the same way,” Durojaye told TechCabal in an interview. “I saw the deal first, brought others in, and invested alongside. That’s my style. I say I’m a good investor, it’s because I can spot great deals and convince others to co-invest.” Immerse VC has already produced several venture capital analysts now working at firms like Seven VC, Lofty Inc., and Kuramo Capital, with students from firms like Consonance, Oui Capital, Sahara Ventures, and the IFC also attending. Durojaye told TechCabal that he started Immerse VC to help solve what he called a financial understanding problem, designing the course to help participants learn how to properly evaluate businesses and make informed investment decisions. “People say a company is ‘scalable’ just because it doesn’t own assets,” he said. “But that’s not always true. If you look at the accounts, you’ll see how tight the margins are. Some of them are losing money at the revenue line. If you understand finance, you’ll see this stuff instantly. That’s why I teach it. This is about helping people avoid bad deals and business models that don’t work.” TechCabal spoke to Durojaye to understand his investment approach and why he’s teaching the next generation of African investors. This interview has been edited for length and clarity. You started in investment banking, and now you’re a VC, angel investor, and educator. How did all this happen? It started with trying to understand business news. I wasn’t aiming to learn finance at first—I just wanted the business sections of the papers to make sense. I’d Google stuff, and that’s how I started learning finance. By my second year in school, I realised I was more interested in finance than in English (which I studied) or Law (which I planned on studying). When I graduated, I started working for free, and by the time I got my first job, I realised something: my colleagues had first-class degrees in economics, but none of us knew anything useful for investment banking. The schools hadn’t prepared us for the job. So we all had to be trained from scratch. That’s when I understood that I wasn’t at a disadvantage. Sure, they knew the theory better, but I understood the markets. That’s the difference, and as I got more comfortable in my second year as an analyst, I started teaching. I’d seen that the new guys joining also didn’t know much, so I figured, “Why not help them?” I started teaching investment banking in 2014, a year after I joined in 2013. My friends and I started a company called EduBridge Academy. We started teaching on weekends, and we taught finance, PowerPoint, Excel, financial modelling, and macroeconomics—all the tools you need in investment banking. Four years into my investment banking career, I was tired. I wanted more. The typical transition back then was investment banking to private equity. This was around 2015–2016, and VC wasn’t a thing yet. I was looking for PE roles, but there weren’t many. Then I stumbled on EchoVC, applied, and got the job. Before that, I was already interested in tech. At EchoVC, I could stay close to finance and support early-stage founders. These companies needed help: recruiting, finance, modelling—all of it. Once I got into VC, I noticed people didn’t understand accounting or finance. In VC, people just throw out things like “valuation is a multiple of revenue.” But even basic revenue concepts are misunderstood. So I saw the gap and thought, “let me teach analysts and associates in VC.” That’s how it started. I designed a six-week program, similar to EdBridge, and started teaching on-the-job skills. Was there a particular moment or deal that made you realise you wanted to leave investment banking for VC? I was already getting tired of investment banking. If you know how it works, you do a deal, collect your fee, and move on to the next. We were hunters. One deal that solidified it for me was Mainstreet Bank. We helped sell Enterprise Bank first, and I was the lead analyst on it. It was a good deal—we made a lot of money. But after Skye Bank acquired Mainstreet, they had “indigestion.” They couldn’t integrate, and eventually both banks failed. The Central Bank had to step in and merge them into Polaris. We got paid, but my legacy went down the drain. Our client, the Asset Management Corporation of Nigeria, was happy because they sold the bank for a good price. But for me, it didn’t sit right. That’s when I started rethinking the work. When I eventually entered VC, I realised that’s where I belonged. One of the first deals I worked on at EchoVC was LifeBank. The founder was passionate about solving blood shortages and poor healthcare infrastructure. We gave her money, but we didn’t stop there. We helped with recruiting, finance, modelling—all of it. It wasn’t just investing but active support. That resonated with me. Fast-forward a few years: when my wife was about to deliver our first son, she needed blood. Guess who delivered it? LifeBank. We could afford everything, but still, it was a full-circle moment. We had invested in the company
Read MoreNiger waives right-of-way fees for telcos, introduces ₦500,000 one-time permit
Niger State has officially waived right-of-way (RoW) fees for fibre optic infrastructure, becoming the twelfth Nigerian state to implement the policy to incentivise telecom operators and expand internet access. The policy, formalised in a government gazette dated September 2, 2024, and signed by Governor Muhammed Umar Bago, is part of a broader effort to attract private-sector investment, extend internet access to remote communities, and digitise public services. Under the new policy, telecom operators will pay a one-time, non-refundable application fee of ₦500,000 ($311.80). According to Suleiman Isah, Niger State’s Commissioner for Communications Technology and Digital Economy, the fee covers both initial network deployment and any future expansions. “Even if a company received its permit ten years ago, they are not required to pay again for expansion—just notify the state,” Isah told TechCabal. RoW fees—levied by state governments for laying fibre optic cables—have long been a bottleneck to broadband expansion across Nigeria, creating high entry costs for telecom operators like MTN Nigeria, Airtel Africa, and Globacom. The effort to harmonise Right-of-Way fees began in 2013, when the National Executive Council (NEC) proposed a uniform fee of ₦145 ($0.09) per linear metre. However, adoption has been uneven, with only around 35% of states reducing or waiving the fees. Niger, the state with the fifth largest fibre infrastructure (3,681.66km), now joins the list of states—Zamfara, Katsina, Anambra, Kebbi, Nasarawa, Bauchi, Adamawa, Kaduna, Ekiti, Imo, and Plateau—that have either eliminated or significantly reduced RoW charges to attract investment. “A no-fee RoW policy will attract substantial investments from telecommunication companies, leading to expanded network coverage, especially in rural and underserved areas, and creating a favourable business environment that supports job creation and economic growth,” Governor Bago said in the gazette. Nigeria hopes the waiver will encourage more operators to invest in fibre infrastructure and help close the connectivity gap in one of Nigeria’s largest and most underserved regions.
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Lori Systems raises at $5 million valuation, tweaks business model
Lori Systems, the Google-backed Kenyan logistics startup raised $2 million at a steeply discounted $5 million valuation in 2024. The logistics startup, once valued at about $120 million, saw its valuation slashed to $5 million in the latest bridge round which was led by Delta40, with participation from Future Africa, FP Capital, and other investors. The latest fundraise brings the company’s total funding to over $46 million. Lori Systems’ valuation decline from $120 million to $5 million reflects a broader trend of shrinking valuations for African startups. However, it also signals that Lori likely fell short of the growth targets it had set for its investors. While Lori declined to disclose specifics, similar underperformance has plagued other logistics startups struggling to deliver the technology-driven scale investors expected. In Kenya, one of Lori’s key market, only two other logistics startups—Afrogility and ApexLoad—raised a modest $200,000 in total. In Nigeria, only three logistics firms—Renda, Fez Delivery, and Cargo Plus—disclosed funding rounds, raising a combined $2.1 million. Nonetheless, investors in Lori’s new round remain bullish. “Delta40 invested in Lori in 2024 because of the immense market opportunity it presents in Africa’s trucking and logistics sector—a $180 billion market growing at 8% annually,” Delta40 said in a statement. “Lori’s technology and business model uniquely position it to both create and capture value, even in a challenging macroeconomic environment.” Jean-Claude Homawoo, Lori’s co-founder and CEO, is equally optimistic. He says the company will achieve profitability this year, a milestone he believes will unlock access to traditional bank financing. “We have noticed that our lending partners give loans to profitable companies. And that has been our drive towards profitability,” Homawoo noted. Homawoo claims Lori has improved its EBIT margins over the past three years, although he declined to share exact figures. EBIT, or earnings before interest and taxes, measures a company’s operating profitability. The company is also re-engineering its financing model to address cash flow constraints that have hampered logistics startups across the continent. Typically, Lori pays transporters upfront to secure trucks and is reimbursed by cargo owners 30 to 90 days later. The lag strains working capital and forces startups to rely heavily on revolving credit lines from banks. One of the investors, who declined to be named as he is not a company spokesperson, says the startup is confident because it is currently rejigging its business model to fix the working capital issues that have dogged logistics startups across the continent. Launched in 2016 by Homawoo and Josh Sandler, Lori set out to reduce the cost of moving goods across the continent by connecting shippers with transport providers through its aggregator platform. The typical customers—manufacturers, distributors, and high-volume shippers—are characterised by long payment cycles. Their vendors typically have to wait 30 to 90 days for manufacturers and distributors to settle invoices. On the other hand, the transporters must be paid almost immediately—the part before the trip and the rest upon fulfillment. “One of the biggest problems of the logistics space is that the manufacturers and distributors don’t pay back debts on time, which creates cash flow challenges for startups,” said the investor. Take Kobo360, for instance. The startup struggled to provide upfront capital to its drivers after its financial partner cut off funding over unserviced debt. The investor claimed Lori is exploring a new model that allows banks to finance transportation directly, keeping it off Lori’s balance sheet. Under this setup, the logistics startup draws on an invoice facility at the bank, prices the interest at its rate, and uses the funds to kick off the trip and pay the driver. The bank charges an 8% fee for financing the process. “Since a bank’s core competency is recovering loans, it makes sense that they handle that,” the investor said. While this model reduces the risks of cashflow challenges for the logistics startup, it offers significantly lower margins than the previous model, which allowed Lori to earn interest on upfront payments. Lori declined to comment on this. “With Delta40’s support, we have secured bank partnerships, including with Ecobank, to structure working capital in a long-term sustainable way,” Homawoo told TechCabal. Still, this tweak could be the missing piece for asset-light logistics startups like Lori, which have struggled to balance scale with sustainable unit economics. The asset-light trucking model has left startups struggling to pay off debt and losing investor confidence. As more African logistics companies scale back or pivot, questions have been asked about the sustainability of the asset-light model, where logistics startups rely on partnerships with third-party transporters rather than owning trucks in Africa. “It is very viable and looks fantastic on paper, as Lori Systems can offload the risk and fulfil many trips. But the only concern is that banks in Kenya charge interest as much as 2% monthly, or 3% if they are uninsured loans,” said Steve Okoth, a director at DBO East Africa, a business advisory company. This means the cargo owners who typically operate with thin margins have to pay a higher price for transportation due to the interests. Okoth acknowledged that this sort of financing is increasingly common, but it may be challenging for a logistics startup with this model to compete on price, for manufacturers and distributors who may be unwilling to pass the cost on to consumers. Homawoo remains a believer. “It requires financial discipline, the right financing, and a focus on execution,” he said. “There are no flaws in logistics—just errors in execution.” He acknowledges that Lori has had its fair share of mistakes and has learned from them. Over the past five years, Homawoo claims, Lori has doubled its take rates, kept receivables low, and improved both margins and EBIT. “The work isn’t done. There’s still a lot we need to do to be successful,” he said. For Lori, which currently operates in Nigeria—its largest market—Kenya and Uganda, that path to success includes structuring working capital in ways that don’t weigh down the balance sheet. Looking ahead As startups continue to use technology to
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Next Wave: Banks built the trust. Now they’re building the tech
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 20 April, 2025 Image: Google It used to be simple: if you wanted to keep your money safe, you went to the bank. If you needed a loan, you dressed up, filled out some forms, and hoped a credit officer would like your story. The bank was the trusted gatekeeper, and for the most part, that worked. But that formula doesn’t hold anymore, not when 22-year-olds in Nairobi can borrow money, invest in crypto, and pay rent, all through apps that never ask them to walk into a branch. Across Africa, the financial playing field is changing. Fast. African fintechs have set a new bar for speed, convenience, and user experience. And now, many of the continent’s most established banks—like Nigeria’s Access Bank, Kenya’s Equity Bank, and South Africa’s Standard Bank—the ones with decades of public trust, millions of customers, and sprawling branch networks, are trying to reinvent themselves to meet that bar. Some are building from scratch. Others are partnering with tech startups. A few are even betting that the future of finance won’t just be about banks but platforms, APIs, and data. So yes, African banks built the trust. But now, they’re racing to develop the tech. Next Wave continues after this ad. Over the past 21 years, the Annual AVCA Conference has convened industry leaders in Botswana, Cameroon, Egypt, Ethiopia, Ghana, Ivory Coast, Kenya, Morocco, Senegal, South Africa and Tunisia with the goal of showcasing investible opportunities across Africa. This flagship gathering has become the premier forum for promoting, developing, and stimulating private investment on the continent. REGISTER NOW. What’s changing For years, “digital transformation” at most banks meant putting a mobile app on top of the same old legacy systems. Customers could check balances or transfer money, but everything behind the scenes—approvals, risk scoring, documentation—was still stuck in the past. That’s starting to shift. In 2024, Kenya’s Absa Bank reported that more than 90% of all customer transactions were happening outside physical branches, mostly via mobile or internet banking. In Nigeria, GTBank revealed in 2024 that it had grown its active digital user base by 38% year-on-year, thanks to its revamped mobile app and chatbot assistant. Across Ecobank’s 33-country footprint, digital channels now process over 57% of all transactions, according to its 2024 investor update. But this isn’t just about usage metrics. Some banks are going deeper, rebuilding infrastructure, changing team structures, and behaving more like tech companies than traditional financial institutions. What these banks seem to be betting on is that retrofitting old systems no longer works. TymeBank, a South African fintech startup, could offer a glimpse into the future of banking in Africa. It launched in 2019 with no branches, tellers, or paperwork. Instead, you walk into a supermarket like Pick n Pay or Boxer and open an account at a kiosk in five minutes with just an ID and fingerprint. By 2024, more than seven million South Africans had signed up, making Tyme one of the fastest-growing banks in the country’s history. The reason? A lean, cloud-based infrastructure with almost no overhead means lower user costs—no fees, better rates, and quicker access to credit. Tyme has already launched in the Philippines and is eyeing other markets. It’s a model built on code, not concrete. Traditional banks have been forced to transform their operations. A bank like Equity has turned data into a competitive advantage. While other state-owned banks like the Development Bank of Kenya and Consolidated Bank are still figuring out how to digitise lending, Equity exists. Millions across East Africa use its EazzyBanking app, but the real innovation is under the hood. The bank uses mobile top-ups, transaction histories, repayment patterns, and location data to assess creditworthiness. Over 80% of its loans are disbursed digitally—often in under a minute. In 2024 alone, it disbursed over $4.5 billion in loans. 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. What’s driving this shift? The transformation in banking isn’t just about competition from fintech startups. There are more trends shaping this at play. Younger customers—more than 60% of Africa’s population—don’t have the patience for paper forms and week-long loan approvals. They expect instant feedback, intuitive interfaces, and 24/7 availability. In Ghana, for example, over $80 million is processed via mobile money channels daily, while Kenyans transact double the figure daily. Branch banking is expensive. Running physical infrastructure requires rent, staffing, cash handling, and security. Digital banking, by contrast, can scale at near-zero marginal cost. Some of the most interesting developments are happening quietly in the back office. Several banks are migrating from legacy core banking systems to cloud-native platforms like Mambu, Finacle, or Temenos. This shift allows them to build, test, and roll out new products in weeks instead of quarters. Stanbic IBTC (Nigeria), in 2024, announced a core modernisation program to improve time-to-market for retail products. Egypt’s Banque du Caire moved parts of its loan processing to the cloud to support real-time credit scoring in Egypt. KCB Group (Kenya) is working with Microsoft to digitise backend workflows to reach 100% paperless loan disbursement by 2026. Next Wave continues after this ad. AfricArena Lagos Summit is finally here! Join us and network with top investors, VCs, ecosystem builders and tech startups at the high-energy AfricArena Fintech, Mobility & Logistics Summit on 30 April 2025! Register now. Banks aren’t just digitising; they’re coming for fintech’s turf. Some are launching standalone apps with better UX. Others are rolling out bank-as-a-service
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“I just want my $22,000 back”: Thousands of Nigerians grapple with losses after CBEX heist
On April 15, the internet was abuzz with news of Ponzi platform CBEX that claimed to double investors’ money in 30 days through an AI-powered trading bot. CBEX lured investors with promises of great returns and “no trading skills or experience” required. However, it has been an elaborate scheme in the making. CBEX, or “CryptoBridge eXchange,” an exchange platform that reportedly had claims to Chinese origins, has long been in partnership with crypto trading group Super Technology (ST) Team. Super Technology Team had reportedly been operating in physical offices in Nigeria—under the brand, “Smart Treasure Operation Centre”—including one recently opened in Ibadan and Lagos. TechCabal could not verify the extent of its ties to Super Technology, but CBEX marketed its platform on the technology that Super Technology supposedly provided. An image of ST’s alleged office in Ikeja, Lagos. Taken from their Telegram group. While the CBEX website is still active at the time of this report, Super Technology has deleted traces of its internet presence, including its social media platforms. A screenshot taken from CBEX’s homepage. The promise of trading with AI was false because both CBEX and Super Technology had no real product, and in the unlikely case that they did, both companies had no history of operating a crypto trading business before late 2024. This was the first red flag from CBEX. Additionally, the platform has used multiple domain names since it started operating, including www.cbex9.com, www.cbex39.com, www.cbex38.com, www.cbex18.com, www.cbex1.com, and www.cbex.vip. All of them, except www.cbex9.com, are now inactive, likely due to reports of illegal trading activities. Currently, CBEX remains operative under https://cbex.cx. “The domain [cbex1.com] is tied to the same CBEX crypto scheme that crashed in Nigeria,” said Kassy Olisakwe, a senior blockchain developer and founder of AuroraWeb3. “They’re just using that domain name as a spare, they registered it in early March. They’ve been hopping between multiple domains to avoid getting blacklisted or caught.” USDT “bullion” wallets CBEX operates a highly elaborate scheme, combining multi-level marketing (MLM) with Ponzi techniques. Once a user registers on the platform, it asks them to invite others, known as “downlines”. However, whether they keep the referral loop spinning or not, users earn from compounded returns. A user who “invested” $100 in July 2024—the reported month CBEX became active—will have $25,600 in their account by March 2025, an oversized increase that even some legitimate fast-growing assets, like gold, are unable to match in the same period. When a user creates an account on CBEX, the platform assigns a USDT or Ethereum wallet where they deposit their funds. Shortly after, the platform moves the funds from the deposit wallets to intermediate wallet addresses that carry the money to other accounts. Through some digging, TechCabal traced some of these intermediate wallets to a CBEX-linked website: TLFZVNxiHkfcUQdzN1DJCjHegFQQ368888 TFo7GZvgdUU5gj41irQeH3NDR5FYWPssFQ THn25XKVoBXGSaFfYa6o9pU9Hf4sgtZNZM TKadxGap9adtWVztGkRfdvnAgb4JFopXxX We found those addresses on the website, www.cbex1.com, which, still active, contains USDT transaction records linked to CBEX. To verify the transaction trails, we used public blockchain explorer tools like Tronscan and Tokenview, which allow anyone to check wallet activity on the blockchain. TechCabal was unable to verify if the records showed the total live transactions being processed on the platform. At the time of this report, $145,266 has been moved from its main accounts—random USDT deposit addresses that CBEX generates for its users to deposit money—to its intermediate accounts. About $120,829 has been moved to other accounts. “Those transactions are from an API call they’re making to api.hv2365.com and they control it. They built their backend and database to disappear quickly. Because they’re using anonymous services, we can’t get the exact information of the people that registered CBEX. Even on plain whiteweb name searches, it comes back as ‘(namecheap)’,” said Olisakwe. Screenshot taken from the website, www.cbex1.com It is also likely that these amounts were more, and the transfer records on the website do not tell the full story. TechCabal investigated further. We traced how the money flowed immediately when a user deposited money on the platform. One of CBEX’s victims, who identified only as ‘Earth Laureate’ on Telegram, told TechCabal that she deposited $2,600 on CBEX on April 2, 2025, only days before the platform froze withdrawals. She deposited the sum from a Bybit wallet into the address, TC7nTFpBHp9j81521m5n76D6wsD4suUXrH, a TRON (TRC-20) blockchain address which holds the USDT stablecoin. Transactions on the address, TC7nTFpBHp9j81521m5n76D6wsD4suUXrH/Screenshot taken from Tokenview Transactions on the address, TC7nTFpBHp9j81521m5n76D6wsD4suUXrH/Screenshot taken from Tokenview After three hours, the funds were siphoned to another address, TB6pGj8FiR3XbXbE1th4cVHzASs8xXVL4p, one of the multiple intermediate addresses—likely a level-1 address. At the time of this report, this intermediate address held no USDT; however, it had received $64,591,317 USDT tokens (where 1 USDT = $1), and had sent out the exact amount of tokens. Transactions on the address, TB6pGj8FiR3XbXbE1th4cVHzASs8xXVL4p/Screenshot taken from Tokenview Upon further checks, the level-1 intermediate address frequently sent funds to a Bridgers cross-chain bridge address, TPwezUWpEGmFBENNWJHwXHRG1D2NCEEt5s, which held $422,241 USDT tokens at the time of this report. A bridge cross-chain account is used to move crypto assets between two different blockchains, like moving money from a bank in one country to a bank in another. Transactions on the address, TPwezUWpEGmFBENNWJHwXHRG1D2NCEEt5s/Screenshot taken from Tokenview The public name shows that the address, TPwezUWpEGmFBENNWJHwXHRG1D2NCEEt5s, is a Bridgers cross-chain bridge wallet/Screenshot taken from Tronscan.org From this bridge account, the funds are further obfuscated into different accounts and blockchains. Smaller amounts like $10,000 and lesser are then transferred into layer-2, layer-3, and layer-4 addresses to hide the origin of the money. This is known as “smurfing.” Transactions on the address, TPwezUWpEGmFBENNWJHwXHRG1D2NCEEt5s/Screenshot taken from Tokenview TechCabal examined another case of a CBEX user who managed to withdraw their money from the platform. The person, who asked not to be named, shared that they received $2,619.15 in USDT payment from the address, TY5yKqWoXRVaHYKNNkY2rf1UjkrLDF6323, on April 1, 2025. Transactions on the address, TY5yKqWoXRVaHYKNNkY2rf1UjkrLDF6323/Screenshot taken from Tokenview Transactions on the address, TY5yKqWoXRVaHYKNNkY2rf1UjkrLDF6323/Screenshot taken from Tokenview We traced the source of the funds used to pay the user to the address, TASdnkGdYsRxncjmJBUwKym7BDBFvLsyHM, which
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Access Holdings records highest tech spend as fraud losses drops 73%
Access Holdings Plc, the parent company of Access Bank, spent a record ₦193.5 billion ($120.5 million) on technology infrastructure and electronic business in 2024, even as its fraud-related losses dropped sharply by 73%, according to its latest full-year financial statement. The tech spend—a 147% jump from 2023—is the highest in the banking sector, more than double the amount competitors such as Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, and Zenith Bank Plc spent last year. Several factors drove the surge in technology spending: inflation amplified by exchange rate volatility, major upgrades to its core banking software Flexcube, cybersecurity enhancements, and expansion into Tanzania, Namibia, and Hong Kong. Access Holdings says these moves were necessary to support its growing digital customer base and fend off competition from fintech companies like Opay, PalmPay, and Moniepoint. “Our technology spend reflects a deliberate balance between capital investments in new capabilities and operating expenses that support existing systems, such as subscriptions and service licenses,” Access Holdings’ spokesperson said in an email to TechCabal. The spokesperson added that a significant portion of their IT spend remains vendor-driven, especially in areas like licensing, technical support, and niche services. “Approximately 80% of our operational IT costs are tied to licensing, 15% to support services, and the remaining portion to consultancy and professional services.” Analysts say the surge in tech spend may have slashed fraud losses by 73% from ₦6.15 billion ($3.8 million) to ₦1.64 billion ($1.0 million). “I suspect that the group invested in some cybersecurity infrastructure, especially given that the amount lost to fraud declined significantly,” Mobifoluwa Adesina, investment research analyst at Afrinvest West Africa Limited, said. Enhanced IT systems lead to fewer fraud incidents and financial losses for customers, according to Nabila Mohammed, a research analyst at Chapel Hill Denham, an investment banking firm in Lagos. “This increased security and seamlessness encourage customers to transact more, generating increased fee income for banks,” she said. Access’s aggressive tech push leaves competitors trailing. GTCO reported a 48% rise in IT expenses to ₦88 billion ($56.8 million), Zenith doubled its budget to ₦67.3 billion ($43 million), while UBA grew its spend by 107% to ₦48 billion ($30.5 million). Fraud losses across the sector show the impact of these investments. GTCO saw fraud losses fall slightly to ₦159.1 million ($99,421) from ₦198.8 million ($ 123,881). Zenith, however, recorded a spike, from ₦383.4 million ($238,914) to ₦5.26 billion ($3.3 million), underlining the urgent need for better fraud prevention tools. The rise of digital payments in Nigeria has led to an increase in financial transactions, which has been accompanied by a growth in fraud cases within the financial system. According to the Nigeria Inter-Bank Settlement System (NIBSS), fraud incidents surged 112% between 2019 and 2023, while the value of losses spiked 496% to ₦17.67 billion ($11.1 million). Computer, mobile, and PoS fraud dominate, driven by increased digital activity and gaps in cybersecurity protocols. Another report by the Financial Institutions Training Centre (FITC) noted that fraud-related losses in Nigeria rose to ₦10.1 billion across 19,007 cases in the third quarter of 2024, up from ₦1.18 billion across 12,066 cases in the same period of 2023. However, on a quarter-on-quarter basis, the total amount dropped from ₦42.8 billion, suggesting some recent gains. “Increased trust and confidence in the banking system in this sector will lead to stronger growth in the coming years and quarters,” Mohammed of Chapel Hill Denham said. Access Holdings, with a market capitalisation of ₦1.15 trillion, has not yet disclosed its tech budget for 2025, but it intends to deepen investment in staff training and advanced technology skill development to strengthen internal capacity and reduce exposure to foreign currency-driven costs. “We will continue to invest in modernization, innovation, and customer experience, while maintaining tech expenditure in line with similar global financial institutions to balance innovation and operational efficiency,” the spokesperson added.
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