As 2024 comes to a close, we’re taking a moment to look back at some of the stories that dominated conversations across Africa.

This year was a cocktail of events. From controversial policies to bold business reinventions, the year left us with plenty to reflect on.

Here’s a closer look at some of the most compelling narratives of the year.

Nigeria’s 0.5% Cybersecurity Levy: A controversial policy that was suspended

As we look back on the year, few issues stirred public sentiment in Nigeria quite like the 0.5% levy on electronic banking transactions, dubbed the Cybersecurity Levy. 

This directive from the Central Bank of Nigeria (CBN), set to take effect on May 20, 2024, was introduced to fund the National Cybersecurity Fund and improve the country’s cyber defences. 

The timing of the levy was especially contentious, and what began as a government initiative quickly turned into a public relations nightmare.

Citizens, economists, and advocacy groups immediately criticized the levy. Many saw it as an additional burden on a population already grappling with inflation, high unemployment, and rising living costs. 

From social media campaigns to protests by labour unions and advocacy groups like SERAP, it became clear that Nigerians were not on board with this policy.

Small business owners expressed fears of increased financial strain, while analysts warned of a likely reversal of the country’s progress toward a cashless economy.

The uproar forced the Federal Executive Council to suspend the levy just days before it was scheduled to take effect. Thankfully, that ship never sailed.

While that decision felt like a win for the people, it is also a story of policy, protest, and the power of collective voices.

Meta and Nigeria’s Fight Against Sextortion Scams

What else felt like a win was Meta Platforms’ fight against cybercrime in the country.

The parent company of Instagram and Facebook took down 63,000 Instagram accounts in Nigeria linked to sextortion scams in July, including a coordinated network of around 2,500 accounts. It also removed a set of Facebook accounts, Pages and Groups used by fraudsters known locally as “Yahoo Boys.”

The tech giant claimed these perpetrators preyed on victims by posing as romantic interests, luring them into sharing explicit images, and then extorting them for money. They had become alarmingly sophisticated, even using Facebook groups to train and recruit new scammers.

Meta’s crackdown wasn’t limited to account removals. The company also introduced several safety measures, including technology to blur unsolicited nude images and enhanced privacy controls for teens. 

Meta’s actions, however, were not without context. Earlier in the year, the company faced a USD 220 M fine from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) for alleged privacy violations. The fine came after accusations of invasive data practices and market dominance abuse, which many felt disproportionately affected Nigerian users.

While Meta plans to appeal the fine, its crackdown on sextortion is seen as an attempt to regain public trust.

Kenya Welcomes Digital Nomads

Turning to the east, Kenya turned heads–mostly the heads of remote job workers–this year with its introduction of the Class N Digital Nomad Visa.

Announced in October, the visa allows digital nomads to live and work in Kenya while earning income from foreign sources. The policy reflects Kenya’s ambition to position itself as a top destination for remote professionals seeking a balance of work, adventure, and vibrant culture.

However, the visa sets a high entry bar for remote workers from other African economies. Applicants must show an income of at least USD 55 K annually, proof of remote work, and accommodation in Kenya. For context, HRTechXplore reports that the average annual income for remote professionals in Nigeria and South Africa is USD 9600 and USD 14,000, respectively.

While the visa prohibits holders from taking local jobs, it welcomes the economic benefits these professionals bring. Digital nomads are known for boosting tourism, supporting local businesses, and fostering innovation.

Kenya’s decision aligns with a growing trend across Africa, with countries like Mauritius and Namibia also rolling out similar programs. However, Kenya’s offering is bolstered by its burgeoning tech ecosystem, which provides digital workers an environment ripe for collaboration. In addition to its breathtaking landscapes and relatively low cost of living, it’s easy to see why Kenya is aiming high.

This move isn’t just about economics. By embracing the future of work, Kenya is sending a message to the world: it’s open for business and ready to lead the global remote work revolution.

MarketForce killed off RejaReja for the Rebirth of a new ‘Chpter’

Meanwhile, this year was bittersweet for Kenya’s MarketForce, a Kenyan startup that shuttered its B2B e-commerce platform, RejaReja.

Despite serving 270,000 merchants in 21 new cities in 5 African countries and raising USD 42.5 M in funding, the platform shut down due to razor-thin margins and an unsustainable business model.

In the company’s own words, “It concluded that it is no longer feasible to keep RejaReja operational after immense efforts to make our business model sustainable, including downsizing the business to extend the runway for as long as possible.” The embattled company had already exited three markets before finally swinging the axe.

But MarketForce’s founders weren’t ready to give up. They launched Chpter, an AI-powered social commerce platform that helps merchants sell more effectively on social media platforms like WhatsApp and Instagram. It has just secured USD 1.2 M in pre-seed funding.

With Chpter, this is MarketForce’s third attempt at running a viable business. It originally started off as a sales automation software in 2018. Then, it pivoted to the B2B e-commerce RejaReja, which allowed informal retailers to order fast-moving consumer goods (FMCGs) directly from distributors and manufacturers and access financing.

While RejaReja’s closure was a setback, the pivot to Chpter represents the resilience of MarketForce’s leadership to adapt to the realities of Africa’s digital economy. It’s a story of two reinventions, proving that challenges can lead to fresh opportunities.

The Collapse of Mobius Motors

While MarketForce had a chance to reinvent itself, Kenya’s Mobius Motors’ story was more damning. Once a symbol of hope for Africa’s automotive industry, it faced a heartbreaking end this year. 

The company announced its liquidation in August, citing mounting financial pressures despite raising USD 56 M in funding. For Mobius Motors, the dream of creating rugged, low-cost SUVs for Africa’s tough terrains came to a heartbreaking halt this year as it struggled to compete against cheaper second-hand imports.

Tax hikes, logistical challenges, and limited consumer demand for its vehicles all contributed to Mobius’ demise. By 2020, the company was deep in debt, with liabilities exceeding KES 649 M. Despite attempts to adapt, including relocating operations, the hurdles proved too great.

The closure raises critical questions about the future of local manufacturing in Africa. How can regional industries thrive in markets dominated by global players and imports? For now, Mobius is a cautionary tale about the complexities of building sustainable businesses in emerging economies.

From digital nomads finding a home in Kenya to the sobering realities of Africa’s business landscape, 2024 has been a year of growth, setbacks, and resilience. As we step into 2025, these stories remind us of this year’s highs and lows, and these narratives will undoubtedly shape the conversations to come.

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Namibian authorities have ramped up their crackdown on Elon Musk’s Starlink, confiscating illegally acquired satellite internet terminals from consumers as part of an escalating regulatory standoff. The Communications Regulatory Authority of Namibia (CRAN) has ordered Starlink to cease operations in the country, citing the company’s lack of a required telecommunications license.

“The public is hereby advised not to purchase Starlink terminal equipment or subscribe to its services, as such activities are illegal,” CRAN said in a statement. Criminal cases have been opened against those found in possession of the terminals, reports Bloomberg, adding an enforcement layer to Namibia’s firm stance on unlicensed operations.

Starlink’s appeal in Namibia is understandable. With a population of 2.6 million spread across a vast landscape, access to reliable, high-speed broadband is scarce. Starlink’s low-Earth orbit satellite technology offers a tantalising solution to connect remote regions where traditional telecom operators often falter.

Namibia isn’t the only African nation where Starlink has sparked interest—and controversy. In Zimbabwe, Starlink terminals sold out within two months of the service’s approval. Neighboring Angola and South Africa are in discussions with the company, while Kenya’s Safaricom is also in talks to facilitate its rollout after initially appearing to implore the regulator to tighten the noose.

But in Namibia, authorities remain resolute. While SpaceX, Starlink’s parent company, has applied for a license, CRAN says it remains under review. Until approval is granted, importing or using Starlink terminals is not welcome.

A Familiar Pattern of Resistance

Starlink’s clash with Namibia mirrors regulatory hurdles the company has faced across Africa. In April, the Cameroonian government ordered Starlink to halt operations, citing national security risks and unfair competition concerns. Critics, however, argued that the move was driven by a desire to protect the state-owned telecom monopoly, Camtel.

Some called the government’s decision “anti-competitive,” accusing Camtel of impeding progress. Similar concerns about control and competition have arisen in South Africa, where licensing rules mandate 30% ownership by historically disadvantaged groups. Starlink has yet to comply, leaving its services in legal limbo.

Meanwhile, others argue that Starlink’s business model exacerbates tensions, emphasising that the satellites extract value without contributing to local economies. This economic imbalance, coupled with regulatory concerns about content control and tax compliance, has fueled resistance across the continent.

Not all governments are opposed to Starlink’s presence, however. In Zimbabwe, Starlink received approval after striking a deal with a telco owned by President Emmerson Mnangagwa’s associate. Similarly, Kenya waived its 30% local ownership requirement following negotiations with President William Ruto, reflecting a willingness by some leaders to prioritise connectivity over regulatory rigidity.

These contrasting approaches highlight the complexities of introducing disruptive technologies like satellite internet in sovereign nations. While Starlink offers a transformative solution to the continent’s connectivity challenges, its decentralised infrastructure and reluctance to engage with regulators leave it vulnerable to pushback.

For now, Starlink’s ambitions in Namibia remain stalled. The company’s website indicates a tentative launch date of 2025, signalling a path ahead to resolving its licensing issues. CRAN’s aggressive enforcement—seizing terminals and filing criminal cases—underscores the stakes for both sides.

Uber’s 2023 Economic Impact Report for Kenya paints a compelling picture of the platform’s contribution to the country’s economy. The company claims it empowers its Kenyan drivers and delivery partners to earn an additional KES 2.2 B (~USD 17 M) annually, representing a 37% increase compared to their next-best alternative. Yet, behind these promising figures, tension simmers, as many drivers have long argued they still struggle to make ends meet amid rising costs and low fares.

Uber, which has operated in Kenya since 2015, presents its report as a testament to its role in enabling flexible work, boosting local businesses, and supporting the tourism sector.

The report states that drivers and delivery partners also derive KES 1.6 B (~USD 12 M) in value from the flexibility the app provides. For restaurants, Uber Eats reportedly created KES 534 M (~USD 4 M) in additional value by facilitating deliveries, while the app itself generated KES 2.7 B (~USD 20 M) for Kenya’s tourism industry in 2023.

The report highlights the app’s broader societal impact, noting that 95% of riders value the convenience it offers, and 79% see it as a safe nighttime travel option. Uber positions itself as a vital part of Kenya’s growing digital economy.

But on the streets of Nairobi and other Kenyan cities, there have been reports of drivers telling a different story. Rising fuel costs, high commissions, and stagnant fares have led to discontent and protests. Earlier this year, a union of gig workers, the Organization of Online Drivers (OOD), took matters into its own hands, circulating a rate card that sets fares at least 50% higher than Uber’s.

A Strained Relationship

The OOD defends the move as a peaceful pushback against Uber’s pricing model. “We tried to talk to Uber about adjusting the prices, but it was in vain,” said Justin Nyaga, OOD’s chairperson. “So we decided to take matters into our own hands to provoke them into discussing our terms and conditions.”

Uber, however, maintains that charging above the app’s estimated fares is against its guidelines. “We encourage all riders to report such instances,” said Imran Manji, Uber’s head of East and South Africa. “We are currently reviewing the incidents reported to us.” Uber eventually raised its fares in August in response to pressures.

This standoff is not new. In October 2022, Uber reduced its commission in Kenya from 25% to 18% after drivers protested low earnings. Yet, drivers argue that the adjustment was insufficient to offset the rising costs of fuel, insurance, and vehicle maintenance.

Since Uber entered the Kenyan market, fuel prices have nearly doubled, exacerbated by the government’s removal and partial reinstatement of fuel subsidies. In May 2023, drivers staged a five-day protest demanding higher fares and lower commissions from Uber and rival platforms like Bolt.

Global Challenges, Local Context

Uber’s challenges in Kenya echo similar issues worldwide. The 2023 Fairwork report highlighted that drivers globally often struggle with low earnings, despite the flexibility such platforms offer. In Kenya, where digital technologies are integral to economic transformation under the Vision 2030 plan, ride-hailing platforms like Uber hold significant promise—but also face heightened scrutiny.

Mark Graham, director of Fairwork, notes, “At the end of the day, these drivers need to cover the costs of their vehicles, fuel, and insurance. They often have families to support and are frequently the primary breadwinners.”

While Uber argues it frequently adjusts prices to balance affordability for riders with fair earnings for drivers, some drivers remain unconvinced. The August 2024 fare increase, according to Uber, was implemented after reviewing market conditions and driver feedback. But drivers say it hasn’t done enough to address their financial realities.

Despite these disputes, Uber’s report underscores its positive impact on Kenya’s economy, contributing an estimated KES 4.1 B (~USD 31.6 M) in 2023. The company also emphasises safety, with 71% of riders agreeing that the app reduces reckless driving.

Yet, the growing rift with drivers raises questions about the sustainability of Uber’s business model in Kenya and debates about whether the platform continue to scale while addressing the legitimate concerns of its workforce.

For now, the period earlier this year, when laminated rate cards were a fixture on dashboards of Nairobi’s Uber drivers, is a quiet but powerful reminder of the discontent bubbling beneath the surface of Uber’s operations in Kenya. Whether through negotiation or protest, drivers are determined to secure a larger share of the economic pie they help to bake.

Temu, the Chinese-born e-commerce juggernaut, has entered Nigeria with its signature direct-from-manufacturer model, promising to revolutionise online shopping in Africa’s most populous country.

This launch, on the back of an aggressive marketing blitz that is generating buzz across social media, comes months after its debut in South Africa. It signals Temu’s intent to take on entrenched players like Jumia while redefining consumer expectations in Africa’s burgeoning e-commerce space.

Temu’s foray into Nigeria is a calculated move, leveraging a model that has disrupted markets across the globe. By eliminating middlemen and offering factory-direct pricing, the platform has captivated price-sensitive consumers in over 80 countries. The company’s spokesperson told WT that Temu began serving customers in Nigeria in November having spotted a growing consumer demand for quality, affordable products.

“We identified a growing consumer demand in Nigeria for quality and affordable products and are proud to introduce our direct-from-factory model to the market. Our goal is to provide a secure and trustworthy platform where consumers can shop at ease for quality and affordable products.

This strategy echoes Temu’s rapid penetration into South Africa earlier this year. The company, along with fellow Chinese-owned rival Shein, rapidly gained traction there, undercutting local e-commerce players with ultra-low prices and swift delivery times. South Africa’s top e-tailer Takealot sold its fashion arm Superbalist in September while decrying unfair practices of foreign players muscling in. Additionally, Jumia recently quit South Africa amid intensified competition.

However, Temu’s onslaught hasn’t been without controversy. South African businesses have voiced concerns about Temu’s aggressive pricing strategies eroding market share, while the government has pushed back, considering new tax frameworks to level the playing field for domestic operators.

Nevertheless, the upstart is unrelenting and willing to spend big to get its way. Indeed, Temu’s marketing spend is staggering, reportedly investing nearly USD 500 M every quarter on promotions and advertisements. This has allowed it to flood social media and app stores with offers that are hard to miss, including limited-time deals, prize wheels, and referral rewards. It’s been reported that Temu’s total sales soared from USD 3 M in September 2022 to USD 400 M by April 2023.

Unsettling the Status Quo

Temu’s entry into Nigeria marks a direct challenge to Jumia, Africa’s leading e-commerce platform, which has long dominated the market but is currently battling stagnation and operational hurdles. Jumia reported a 13% decline in year-over-year revenue for Q3 2024 and has struggled to grow its customer base, which has been stuck at around 2 million users since 2023.

Jumia’s ongoing losses, exceeding USD 1 B since its 2019 IPO, and its discontinuation of several verticals and retreat from underperforming markets like South Africa and Tunisia highlight its vulnerabilities. In response to these challenges, Jumia has expanded into rural areas with a network of pickup stations aimed at reducing delivery costs.

While this “upcountry” strategy could broaden its reach, Temu’s reputation for rock-bottom prices and customer-centric policies—such as a 90-day money-back guarantee and robust anti-fraud measures—sets a new bar for competition. Temu would be keen to find an edge as the Nigerian expansion also means going toe-to-toe with fellow Chinese e-tailer AliExpress, popular with Nigerian online shoppers buying foreign goods.

Meanwhile, Jumia’s withdrawal from South Africa came just months after the local e-commerce landscape was shaken by the official launch of Amazon.co.za. The arrival of the global retail giant in May 2024 brought heightened competition to an already competitive market.

Jumia CEO Francis Dufay hinted at this intense competition recently, noting that in South Africa, “growth potential was definitely more difficult,” particularly in an environment where local and international retailers are fiercely vying for market share.

The Nigeria Challenge

The Nigerian market, with its 200 million-plus people and growing middle class, is a natural next target for the app, which has already made waves globally with its low prices and engaging shopping experience.

In the past, Nigeria has been a tough nut to crack for many global players amid myriad challenges, but Temu is making a bold bet that it can succeed where others have struggled. According to Temu’s spokesperson, the company’s unique business model, which focuses on direct-to-consumer sales from manufacturers and aggressive discounting, is designed to make online shopping accessible to everyone, even in markets with infrastructure challenges like Nigeria.

But Nigeria’s logistics landscape, often marked by inefficiencies and mistrust, is a challenge Temu must navigate. The company has partnered with local delivery firms Flytexpress and Speedaf to address these obstacles. “We are still in the initial stages of operations and focused on learning about local preferences to better tailor our services,” said Temu’s spokesperson.

To bolster consumer trust—a perennial concern in Nigerian e-commerce—Temu emphasises its encrypted payment systems, certification by Germany’s DEKRA cybersecurity standard, and membership in the Anti-Phishing Working Group. These measures, coupled with features like real-time shipment tracking and 24/7 customer service, are designed to reassure new users wary of online fraud.

Temu’s launch in Nigeria comes after its rapid global ascent. Since its U.S. debut in 2022, the platform has captured significant market share, outpacing rivals like Shein in North America and entering over 80 markets worldwide. However, its aggressive growth has drawn scrutiny. In the U.S., Temu faces legal battles over alleged anti-competitive practices, and its links to Chinese counterpart Pinduoduo—suspended from Google Play earlier this year due to malware allegations—have raised ethical questions.

South Africa provided Temu with a testing ground for navigating African markets. Its success there, despite backlash from local businesses and regulatory bodies, has likely informed its strategy for Nigeria. By leveraging its lessons from this initial African foray, Temu aims to solidify its foothold in a market projected by McKinsey to surpass USD 75 B in e-commerce sales by 2025.

Temu’s expansion into Nigeria marks a pivotal moment in Africa’s e-commerce evolution. Its disruptive pricing model and focus on consumer trust create both opportunities and challenges for a market long dominated by local players. However, whether Temu can replicate its global success in Africa’s uniquely complex environments remains to be seen.

For now, Temu’s combination of affordability, direct-from-factory efficiency, and customer-centric policies has set the stage for a showdown. As the competition intensifies, the ultimate winners will likely be African consumers—provided the fierce rivalry spurs innovation without compromising quality or sustainability.

In Nairobi, Kenya, where unemployment among youth reaches a staggering 67%, AI jobs initially seemed like a golden opportunity. Workers like Naftali Wambalo, a college graduate with a mathematics degree, believed they had secured a foothold in the tech-driven future. Hired to label and sort data for global tech giants like OpenAI and Meta, Wambalo and his colleagues were tasked with training AI systems to recognise everything from traffic patterns to medical anomalies.

But a grim reality soon set in: while tech companies paid outsourcing firms up to USD 12.00 per hour for this labour, workers like Wambalo received just USD 2.00 per hour, as CBS News’ 60 Minutes recently uncovered, citing documents showing industry leader OpenAI’s agreement with Sama, an outsourcing firm, which says it pays a fair wage for the region — to which workers like Wambalo strongly disagree.

“If the big tech companies are going to keep doing this business, they have to do it the right way,” Wambalo told 60 Minutes. “It’s not because you realise Kenya’s a third-world country, you say, ‘This job I would normally pay USD 30.99 in U.S., but because you are Kenya, USD 2.00 is enough for you.'”

This glaring disparity highlights a broader pattern of exploitation in AI’s global supply chain, where workers in developing countries endure low wages and precarious contracts to fuel Silicon Valley’s ambitions.

Kenya: A Hub for “Humans in the Loop”

Kenya has actively marketed itself as a tech-friendly “Silicon Savannah,” offering financial incentives and less stringent labour laws to attract giants like Google, Microsoft, and OpenAI. Every year, a million young Kenyans enter the job market, desperate for work. For many, roles in the emerging AI sector seemed like a lifeline.

In practice, these jobs — dubbed “humans in the loop” — involved labelling images, videos, and text to train AI models. Workers spent hours reviewing harmful and often graphic content, including images of violence and abuse. The outsourcing firms employed by U.S. companies pitched these jobs as a pathway to a brighter future, but the conditions on the ground tell a different story.

“The workforce is so large and desperate that they could pay whatever and have whatever working conditions, and someone will pick up that job,” said Kenyan civil rights activist Nerima Wako-Ojiwa.

Workers claim SAMA pressured them to finish tasks faster than required, often completing six-month contracts in just three months, leaving them unpaid for the remaining time. While SAMA denies the allegations, workers said the only reward for speeding up was a token gesture: “They’d thank us with a soda and two pieces of KFC chicken,” said Naftali Wambalo.

Another firm, Remotasks—run by U.S.-based Scale AI—faced similar accusations. Workers, paid per task, said they were sometimes denied wages, with accounts abruptly closed and claims of policy violations just before payday. “There’s no recourse or way to complain,” said Ephantus Kanyugi.

In March, after public outcry, Remotasks shut down operations in Kenya, locking workers out of their accounts. The company insisted all completed work adhering to their guidelines was paid.

Sweatshops of the Digital Age

The outsourcing model used by companies like Sama — which contracted with OpenAI — is central to the problem. Sama, based in the California Bay Area, employed over 3,000 workers in Kenya. But the company, which branded itself as an “ethical AI” provider, allegedly pocketed the lion’s share of payments, leaving workers with minimal pay for emotionally taxing work.

These “AI sweatshops,” as Wako-Ojiwa describes them, are characterised by temporary contracts, with some workers hired for only days or weeks at a time. Workers like Wambalo often lack job security, benefits, or adequate mental health support, despite the traumatic nature of their tasks.

Sama, which also worked with Meta until early 2023, faced lawsuits from its moderators for poor working conditions and inadequate wages. The claims extend to allegations that Sama blacklisted former employees when the company’s contract with Meta ended, preventing them from finding similar work with its replacement contractor, Majorel.

One worker, Kauna Malgwi, recounted the toll of reviewing thousands of graphic posts daily. “You’d sift through murders, rapes, and suicides. It sticks with you,” she said.

A Broader Problem in Tech Outsourcing

Kenya is not alone. Similar outsourcing hubs exist in India, the Philippines, and Venezuela, where low wages and high unemployment allow tech giants to cut costs. These countries provide educated workforces willing to do the painstaking labour AI systems need to function.

But the ethical implications are glaring. While tech companies boast about AI’s potential to revolutionise industries, the human labour powering these systems often goes unacknowledged.

Cori Crider, co-founder of Foxglove, a legal nonprofit advocating for better conditions for tech workers, noted: “After years of bullying and intimidation from big tech firms, moderators are saying, ‘Our work matters.’”

The Fight for Justice

Kenyan workers are beginning to push back. A group of 184 Sama moderators has filed a lawsuit against the company, alleging unfair termination and poor working conditions. The Kenyan Employment and Labour Relations Court ruled that Meta could be held liable alongside Sama, marking a significant step in the battle for accountability.

Meta and Sama are also facing a separate lawsuit over their role in moderating harmful content during Ethiopia’s civil war, where critics argue that insufficient moderation fueled violence.

Despite these challenges, the workers’ fight for justice continues. Union organisers like Daniel Motaung, himself a former moderator, have emerged as key voices in the movement.

The revelations about OpenAI’s and Sama’s practices highlight a systemic issue in tech’s supply chain: while innovation garners billions in profits, the human labour behind it remains undervalued and under-protected.

Kenyan activist Wako-Ojiwa sums up the growing frustration: “It’s terrible to see just how many American companies are doing wrong here. And it’s something they wouldn’t do at home, so why do it here?”

As the AI industry expands, companies face increasing scrutiny to ensure their practices align with the ethical standards they claim to uphold. For workers like Wambalo, however, meaningful change remains a distant hope.

Featured Image Credits: Daniel Irungu/EPA

Angel investors remain a cornerstone of funding for Nigerian startups, holding their ground despite the allure of venture capital (VC). A newly released report by startup-focused law practice TLP Advisory, “A Decade of the Nigerian Venture Ecosystem: Numbers, Insights & Stories,” reveals that 43% of Nigerian startups received their funding from angel investors, including friends and family, over the past decade.

This figure overshadows the 24% of startups funded by VCs and the 18% and 15% that secured funds through debt financing and grants, respectively.

The report, marking TLP Advisory’s 10th anniversary, paints a detailed picture of Nigeria’s tech ecosystem. It highlights its remarkable growth, systemic challenges, and the critical role of early-stage investors in sustaining the sector through turbulent times.

While VC funding brought a sense of scale and visibility to the ecosystem, angel investors have quietly remained the backbone, the report reveals, providing vital support during the industry’s lean periods.

Funding Challenges and the Angel Investor Advantage

The data is telling: Nigerian startups have faced significant funding challenges in recent years, particularly as global VC interest waned.

After a record USD 1.75 B raised in 2021, funding plummeted to USD 500 M in 2023. Startups often cite limited access to finance as a chief hurdle, with 22% pointing to it as their primary barrier to growth, ahead of inadequate marketing (18%) and revenue model challenges (15%). Additionally, 51% of startups surveyed cited difficulties in securing funding, primarily due to currency volatility and access to investors

“People who raised money in U.S. dollars, who are earning in Naira, and who have to report to investors who invested in US dollars, need to be doing almost three times more work because the currency has devalued by more than 70%,” said Femi Longe, Co-founder of CcHUB, a tech incubator that rose to prominence in Lagos before expanding to other African cities, notably co-built by Nigeria’s current tech minister, Bosun Tijani.

The volatile funding landscape has forced many startups to rely on angel investors, who not only bring capital but also mentorship, introductions to key networks, and early confidence that often catalyses further funding. Odunayo Eweniyi, co-founder of PiggyVest, credited well-known angel investor Olumide Soyombo for his support, saying, “He introduced us to the right people and allowed us to build an ecosystem around ourselves.”

While VC funding often grabs headlines, its availability has been inconsistent. A key reason is the shift in global interest rates and investor attention from emerging markets to more stable economies. “Zero interest rates and global interest have moved away from developing markets into more established markets,” noted Tomiwa Aladekomo, CEO of Big Cabal Media.

This trend has led to a slowdown in early-stage VC investments. From mid-2022, TLP Advisory observed a shift toward Series A and M&A transactions, with fewer pre-seed and seed rounds taking place. The reduced capital availability has forced startups to adapt, with some pivoting to strategic partnerships or alternative funding sources like grants and debt financing.

Talent, Regulations, and the Battle for Survival

Funding isn’t the only challenge Nigerian startups face. Talent acquisition and retention remain significant obstacles. Many founders struggle to find skilled employees who align with their business needs. Similarly, regulatory bottlenecks, cited by 30% of surveyed founders, continue to impede growth.

Founded in 2014, TLP Advisory, with offices in Lagos, London, and New York, says it has guided over 250 Nigerian tech clients through deals spanning investments, M&A, intellectual property, and expansion strategies. As one of two firms behind the 2023 Nigerian Startup Act, TLP helped shape policies supporting startups and has aided over 200,000 businesses, bolstering Nigeria’s economic growth.

The Nigeria Startup Act, co-drafted by TLP Advisory, was a major milestone designed to address some of the challenges by fostering collaboration between startups and regulators. However, many founders believe more needs to be done to create a truly enabling environment.

Eghosa Omogui, Founder of Echo VC, highlighted another persistent issue: the unreliability of funding commitments, noting one such high-profile case that became public last year. “We were pre-seed investors at a company called MarketForce before they got into YC. They announced a USD 40 M raise, but USD 8 M never showed up. That happens more often than people think.”

Despite these hurdles, the Nigerian startup ecosystem continues to show resilience and growth potential. The TLP Advisory report notes that 76% of startups reported growth in revenue, cash flow, or customer base over the past decade. Additionally, 47.5% experienced annual growth rates between 11-40%, while 26% achieved over 40%.

This optimism is also reflected in the ecosystem’s dynamism, with 26% of the surveyed companies established in the past two years. These new entrants indicate sustained interest and confidence in Nigeria’s tech sector, despite macroeconomic challenges.

What Lies Ahead?

The report calls for a renewed focus on strategic partnerships, talent development, and policy engagement. Startups are encouraged to leverage alternative funding sources while pushing for regulatory reforms that create a more supportive business environment.

While venture capital remains an important player, angel investors have proven indispensable in navigating the ecosystem’s ups and downs. Their role in providing early-stage funding and mentorship underscores the importance of a diversified funding landscape for Nigerian startups.

As Odunoluwa Longe, Co-Founder of TLP Advisory, aptly put it, “Despite the current tough macroeconomic climes, engaging with participants in this project ignited in me renewed hope and optimism for our ecosystem.”

In a landscape marked by volatility, it is this hope—and the enduring support of angel investors—that may hold the key to unlocking the next chapter of Nigeria’s startup success story.

With Africa’s population projected to double by 2050, the continent is poised to birth a billion new lives. Yet, economic constraints mean the majority of this booming demographic risks becoming non-consumers—people unable to access or afford goods and services they need, let alone want.

At the recent Africa Prosperity Summit, hosted by early-stage VC fund Ventures Platform in Lagos, this challenge took centre stage, prompting investors and thought leaders to discuss how to transform Africa’s untapped potential into tangible economic growth.

Kola Aina, Founding Partner of Ventures Platform, set the tone with a concerning warning. “Africa’s massive population boom is happening at the same time global venture capital is on a decline. Since the post-COVID peak of venture capital investments in 2021— influenced by the ZIRP (Zero Interest Rate Policy) era—global venture capital flows have declined by 70%. Africa has experienced a 67% decline, despite requiring 10x more capital to address infrastructure gaps and non-consumption.”

Africa’s current infrastructure and investment levels are ill-equipped to meet the needs of its growing population. Non-consumption—the inability to access goods and services—is the key issue. Without intervention, the one billion Africans expected by 2050 could remain outside the economic fold, posing risks to regional stability and global progress.

In a subsequent Q&A session, Aina, the Convener of the Africa Prosperity Summit, hosted Haresh Aswani, Managing Director – Africa of Tolaram Group, notable for its dominant position in the Nigerian FMCG market. Aswani shared insights into how Tolaram has successfully transformed Africa’s non-consuming population into active consumers, detailing the group’s strategic approach to market dominance, noting the opportunity and challenge are immense.

This sentiment echoed throughout the Summit, which convened over 150 global investors, development finance institutions, family offices, and venture capitalists.

Is VC the Ultimate Catalyst?

Venture capital (VC) holds a unique position in addressing non-consumption. Unlike private equity or bonds, VC is designed to shoulder high risks, making it ideal for emerging markets. Efosa Ojomo, Director of Global Prosperity at the Clayton Christensen Institute, highlighted this during his keynote.

“Venture capital is designed to de-risk an economy—or at least, a sector. In Africa, where raising funds for critical infrastructure is particularly challenging, venture capital must go beyond funding to actively build entrepreneurial ecosystems,” Ojomo emphasised. He painted a picture of VC not just as a financial instrument, but as a force capable of jumpstarting entire markets, creating jobs, and empowering millions.

The Summit’s theme, “Funding the Next Billion: Africa’s VC Investment Landscape in a Post-ZIRP Era,” reflects the shifting global economic landscape. The era of near-zero interest rates, which fueled record VC investments worldwide, has ended. Rising rates have tightened global capital flows, leaving Africa in a precarious position.

“Africa needs 10 times more capital just to match Asia’s levels of VC investment,” Aina remarked. Yet, global interest in African markets is growing, driven by its young, entrepreneurial population and untapped potential. For investors, the challenge is aligning expectations with the unique realities of the continent.

Charlie Robertson, Head of Macro-strategy at FIM Partners, brought a macroeconomic lens to the discussion. Comparing Africa’s trajectory to other regions, he outlined how education, industrialisation, and investment can unlock prosperity. However, he cautioned against underestimating the complexities. “As Africa charts its path to prosperity, the critical levers of education, investment, and industrialisation must be synchronised to deliver sustainable growth,” Robertson said.

Speakers repeatedly stressed the need for tailored solutions that address local contexts. Standardised global strategies often fail in Africa, where infrastructure gaps and regulatory hurdles are significant. Stakeholders pointed out that successful ventures must prioritise affordability and accessibility.

Turning Insights into Action

As the Summit concluded, Aina challenged attendees to translate dialogue into action. “At Ventures Platform, we believe that by investing in the right kinds of entrepreneurship and innovation, we can produce two powerful outcomes—high-quality jobs that will drive up incomes across Africa, and scaling up affordability and accessibility to products/services for millions of people across the continent.”

This dual approach, focusing on job creation and market accessibility, offers a pathway to solving non-consumption. It requires collaboration between local entrepreneurs, global investors, and policymakers.

The Africa Prosperity Summit highlighted both the enormity of the task and the opportunities within reach. For investors, the post-ZIRP reality may demand a recalibration of expectations, but it also opens the door to new strategies. For Africa, the stakes could not be higher. Bridging the gap between non-consumption and active participation in the economy is imperative.

In any case, stakeholders at the Summit reckon that the real question is not whether Africa has potential, but whether we are willing to commit to unlocking it.

Swvl, the Cairo-born, Dubai-based mobility startup that once lit up the Burj Khalifa in red to celebrate its billion-dollar valuation as a mobility disruptor, recently announced USD 4.2 M in new contracts across Egypt in sectors like FMCG, telecom, e-commerce, and banking. These deals, touted as a testament to the company’s capacity for innovation in transportation solutions, include offerings such as shift-based employee transit and AI-driven commute optimisation for students.

Yet, beneath this optimistic announcement lies a more sobering reality: Swvl is fighting to maintain relevance and solvency amid an increasingly precarious financial and operational landscape.

While CEO Mostafa Kandil calls the contracts a “testament to Swvl’s ability to deliver transformative solutions,” broader questions about the company’s sustainability remain unanswered. Mounting legal challenges, delayed financial reports, and persistent operational hurdles paint a picture of a company scrambling for gains amid fears of grinding to a halt.

Swvl’s rise to prominence was as dramatic as its subsequent struggles. Founded in Egypt, the company rapidly gained attention for its tech-driven approach to mass transit, securing a USD 1.5 B valuation upon its Nasdaq debut in 2022. However, its stock has plummeted from a USD 10.00 IPO price to less than a dollar at one point in 2023 (currently trading at USD 4.79), following allegations of financial instability and operational mismanagement.

A damning report by activist short-biased activist Wolfpack Research in September alleged that Swvl was teetering on the edge of bankruptcy, pointing to dwindling cash reserves of USD 2.9 M and widespread service disruptions in its Cairo operations. The report triggered a 43.62% drop in Swvl’s stock, depleting what little investor confidence remains. Adding to its woes, U.S. law firm Pomerantz LLP launched an investigation into potential securities fraud, further undermining trust in the once-promising company.

The Shifting Sands of Strategy

Swvl’s current strategy leans heavily on B2B contracts and geographic expansion, particularly in Saudi Arabia. The company reported a sixfold increase in gross profits from its Saudi operations in 2024, fueled by USD 2.6 M in annual contract value from industries like education, healthcare, and food services. Its AI-powered platform, enabling real-time monitoring and route optimization, has found traction in managing student commutes and workforce mobility.

However, these gains are yet to offset Swvl’s broader struggles, especially in its home market of Egypt. Macroeconomic pressures, including a 40% devaluation of the Egyptian pound and surging inflation, continue to strain its cash flows. Meanwhile, the offloading of its European and Latin American operations in 2023, intended to streamline its business, provided only short-term financial relief.

Fighting Legal, Financial, and Operational Battles

Swvl’s financial disclosures, or the lack thereof, have further fueled scepticism. The company has not filed detailed earnings for 2024, leaving investors in the dark about its performance. While Swvl managed to report a net profit of USD 3.1 M in 2023—largely due to one-off debt settlements—it still incurred USD 8.2 M in losses from subsidiary sales. These figures underscore the fragility of its profitability.

Adding to its woes, Swvl faces delisting threats from Nasdaq for repeated compliance failures. It narrowly avoided delisting last year after its share price traded below USD 1.00 for 30 consecutive days.

Operationally, Swvl’s consumer services have taken a significant hit. Once the backbone of its revenue model, consumer offerings like Daily and Travel have been quietly removed from its website. While Kandil denies their closure, their absence signals a pivot away from the consumer market, where competition from ride-hailing giants and public transit systems proved too intense.

A Glimmer of Hope or a Mirage?

The recent USD 4.2 M in Egyptian contracts and a strategic five-year deal with e& Egypt, valued at USD 6.3 M, provide a glimmer of hope for Swvl. These partnerships highlight the company’s ability to adapt to the complex demands of B2B transportation solutions. However, analysts remain cautious, noting that Swvl’s reliance on contract wins and cost-cutting measures may not be enough to address its structural challenges.

“These contracts reflect Swvl’s potential,” Kandil has emphasised, but potential alone will not resolve its pressing financial and legal hurdles. With its U.S. expansion plans set for 2025 and strategic capital-raising efforts in its plans, Swvl’s ability to stabilise its operations in the coming months will be critical—not just for its survival but for the broader credibility of the transportation-as-a-service sector in emerging markets.

However, the company would be wary of over-committing as its rapid expansion into new markets, bolstered by acquisitions of companies like Shotl and Viapool, stretched its resources thin.

While its pivot to B2B and government partnerships reflects a pragmatic shift, the clock stays ticking for Swvl. Whether it can transform this period of crisis into an opportunity for reinvention remains to be seen.

Nigeria, often regarded as the main character of Africa’s economic and tech aspirations, is proving to be a double-edged sword for global companies betting on its promise.

The latest casualty is dLocal, the Uruguay-based payments unicorn, whose third-quarter 2024 earnings reveal an over 80% year-over-year revenue loss in Nigeria, driven largely by economic headwinds in its once-prized Nigerian market.

This decline underscores the harsh reality facing foreign tech firms in Nigeria: the promise of a vast, youthful, and digitally inclined population is being undermined by relentless currency volatility, crippling inflation, and operational challenges.

Nigeria’s potential has always been irresistible for for global companies such as dLocal, which is among a growing contingent of prominent Latin American fintech companies making inroads into African markets of late. Yet, the country is also proving a headache.

While the fintech sees strong performance in Egypt and South Africa, the Nigeria unit, once touted as a growth engine for dLocal’s African operations, saw its Q3 2024 revenues plunge to USD 2.1 M—just 1% of the company’s total—down from USD 55 M in the first nine months of 2023. This steep decline, despite steady transaction volumes, stems from the naira’s devaluation, which has sharply eroded purchasing power and the value of processed payments.

The financial pressures highlight the difficulties of doing business in a country where exchange rates have spiralled out of control, making profitability elusive for even seasoned operators.

Across sectors, foreign firms are grappling with the same fundamental challenges. This week, South Africa’s MTN Group, Africa’s telecom behemoth, revealed in its financials that its Nigerian revenue dropped 48.7% in Q3, driven largely by the naira’s devaluation, which reached NGN 1,541 to the USD by the end of the quarter. For MTN, this translated into a staggering USD 414.7 M loss in H1 2024, the company’s first since a billion-dollar regulatory fine eight years ago.

MultiChoice Group, Africa’s leading pay-TV provider, has also felt the sting. The company reported losing 243,000 Nigerian subscribers in six months, citing reduced consumer spending power amid inflationary pressures. The naira’s devaluation drained approximately ZAR 7 B (~USD 318.2 M) from MultiChoice’s trading profits over the last 18 months. Plus, the company was forced to write off USD 21 M of cash held in Nigeria with Heritage Bank whose license was revoked in June 2024 and has entered liquidation.

Meanwhile, cryptocurrency firms like Binance and OKX have been forced to scale back in the face of regulatory crackdowns and a deteriorating business environment. Binance’s CEO recently disclosed that Nigerian authorities demanded bribes to drop money laundering charges—highlighting operational challenges in the region.

Despite these headwinds, some companies are finding ways to adapt. dLocal continues to invest in its payment infrastructure, aiming to stabilise its Nigerian operations. Similarly, MTN has leaned heavily on its fintech arm to offset the decline in voice and data revenues. The telecom giant reported an 8.5% growth in fintech revenue in Q3, with transaction volumes surging by 17.4% to nearly 15 billion transactions.

MultiChoice, on the other hand, is aggressively diversifying. Its rebranded streaming platform Showmax saw 30% growth in paying subscribers, while its fintech venture, Moment, now processes 30% of the group’s payments, showcasing the company’s pivot to financial services.

“MultiChoice has felt the direct weight of this volatility,” CEO Calvo Mawela remarked, as the company continues to expand beyond its traditional pay-TV business.

For dLocal and others, the Nigerian market remains a paradox: rich with opportunity but fraught with risk. With over 200 million people, growing internet penetration, and a youthful demographic, the potential is undeniable. However, companies have to contend with deep structural challenges, including unpredictable regulatory frameworks, high inflation, and significant foreign exchange volatility.

While the challenges are immense, so is the potential upside. But as dLocal’s latest results starkly illustrate, foreign tech firms in Nigeria are now facing a sobering reality: thriving in this market requires more than ambition.

Featured Image Credits: KPA