Y Combinator (YC), Silicon Valley’s most prestigious startup accelerator behind global successes like Airbnb and Stripe, has long been a catalyst for early-stage founders worldwide. African startups have benefited significantly from YC’s global expansion, with the accelerator backing over 100 startups on the continent, including fintech giants like Flutterwave, Paystack, and Wave.

However, recent trends have shown a sharp decline in the number of African startups accepted into YC cohorts, raising concerns about the future of YC’s involvement in Africa. Yet, with YC’s newly announced year-round program set to launch in 2025, there’s reason to believe that this shift may offer a path to a rebound for African founders.

Scaling Back in Africa: A Sudden Decline

In 2022, Y Combinator slashed its global summer cohort by 40%, a move attributed to the economic downturn and shifting venture capital landscape. African startups felt this cutback acutely, as the number of African companies accepted into YC dropped by more than half. The S22 batch included only eight African startups, compared to 24 in the previous W22 cohort—a staggering 63% decline.

This downsizing trend continued. In the W23 cohort, only three African startups made the cut. By W24, reports confirmed that only three African startups—Cleva and Miden—were selected, with Kenyan traveltech startup Triply completing the trio. This cutback didn’t go unnoticed, with many founders voicing concerns about the shrinking opportunities for African startups in YC’s once-welcoming embrace.

“We continue to be impressed with the talent and ingenuity of African founders,” said Michael Seibel, YC’s managing director, in a 2022 Techpoint report. Yet, despite this sentiment, YC’s focus appeared to shift toward more U.S.-centric ventures. Over 90% of the W23 cohort was made up of U.S. startups, reflecting a growing trend of YC refocusing on its home market.

The Impact on African Startups

For many African founders, acceptance into YC has been more than just a badge of honour—it has been a critical turning point in their journey. The accelerator’s USD 500 K funding and powerful network have helped startups secure follow-on investments and scale across borders.

However, as YC scaled back its involvement in Africa, many founders were left wondering what the future held. Research from Briter Bridges highlighted the outsized role YC plays in the African startup ecosystem, with its portfolio companies raising over USD 1.3 B in follow-on funding. The fear, therefore, is that a reduced YC presence in Africa could choke off vital funding pipelines and stunt the growth of the continent’s fledgling tech scene.

Yet, others remain optimistic, favouring the sentiment that while the cutback may pinch, the African tech ecosystem is evolving and there are now several other sources of funding.

With local early-stage funds like Microtraction, Ventures Platform, Future Africa, and LoftyInc, as well as accelerators like Techstars, African founders are finding alternative ways to raise significant capital without YC’s involvement. Notably, Iyin Aboyeji, famously behind two African tech unicorns and backing startups via Future Africa, has recently set up Accelerate Africa, which is being touted to replace YC in Africa.

YC’s Year-Round Program: A Path to Rebound?

While YC’s cutback on African startups over the past few years has raised concerns, its newly announced year-round program—set to debut in 2025—could present an opportunity for a rebound. This expansion will see YC doubling its cohorts from two to four annually, with continuous application cycles allowing for more flexibility and increased access for founders worldwide.

By offering spring and fall cohorts in addition to the traditional winter and summer ones, YC will now be accepting startups throughout the year. For African founders, this means that opportunities to join YC may become more frequent, without the long waits for application windows.

With smaller cohorts—around 100 to 125 startups per session—founders could also benefit from more personalised attention, potentially recreating the tight-knit, high-support environment that has made YC so transformative in the past.

“The great thing for everyone is we will be more responsive to founders and fund them right when they start,” said Garry Tan, YC’s President. The W24 batch, the smallest since 2017, signalled a return to exclusivity, but the upcoming year-round model promises to combine the best of both worlds: access for more founders and high-quality mentorship.

This new approach could help reverse the trend of declining African participation. With more cohorts and continuous cycles, African startups—particularly those solving pressing financial inclusion and logistics challenges—may have more opportunities to break into the accelerator.

Challenges and Opportunities

However, the shift comes with potential challenges. Some worry that four Demo Days per year instead of two might dilute the significance of the event, making it harder for startups to stand out. Historically, Demo Day has been a make-or-break moment for many startups, with limited slots ensuring intense competition for investors’ attention.

That said, the increased number of Demo Days could also provide more tailored and focused interactions between founders and investors. As Tan noted, “4X in-person Demo Days will benefit both founders and investors by creating more time and space for meaningful interactions.”

Moreover, while YC’s expansion brings new hope for African startups, it also arrives at a time when local ecosystems are maturing rapidly. Accelerators like Techstars are stepping up, and local funding instruments are gaining traction. As YC opens its doors wider for longer, African founders have more options than ever before, allowing them to weigh their choices and determine what best suits their needs.

A Future of Possibility

YC’s upcoming year-round program marks a significant shift in its global strategy, one that could potentially reignite its involvement in Africa. For African founders who once saw the declining acceptance rates as a sign of YC’s retreat from the continent, this new expansion may offer a much-needed opportunity for renewed participation.

With smaller, more focused cohorts and more frequent Demo Days, YC is positioning itself to provide founders—both in Africa and beyond—with the support and network they need to thrive in a rapidly changing tech landscape. While the road ahead may still hold challenges, the prospects for African startups to rebound within YC’s network appear brighter than they have in years.

Gozem, the Togolese startup known for its super app approach to transportation and logistics services in Francophone West Africa, is taking on the mobile money sector. This expansion positions the company at the heart of the booming fintech market across the region, even as Africa’s broader super app landscape delivers mixed results.

With the impending launch of Gozem Money in Q4 2024, the company aims to integrate financial services into its growing portfolio of offerings. Initially focused on ride-hailing, food delivery, and courier services, Gozem is now set to provide digital financial transactions, including money transfers, bill payments, and online purchases, through its app.

This strategic move follows Gozem’s acquisition of Beninese fintech Moneex in November 2023, which accelerated its financial services ambitions.

The acquisition of Moneex, a fintech specialising in multi-currency accounts, represents a crucial step for Gozem. By incorporating Moneex’s technology and expertise, Gozem not only ensures a smoother entry into mobile money but also secures a foothold in the competitive fintech market in Togo and Benin. Last year, Gozem’s CEO Raphael Dana explained the rationale behind the acquisition, stating, “We wanted a country that was not too big, where we could learn without intense competition like in Nigeria.”

This move reflects Gozem’s ambition to mirror the success of Chinese super apps like WeChat and AliPay. With 160,000 unique customers across four countries—Togo, Benin, Cameroon, and Gabon—Gozem is betting on financial services to diversify and strengthen its platform. As part of its strategy, Gozem Money will launch in Togo first, where mobile financial services are still developing but show significant growth potential.

Gozem’s Financial Expansion Amid Growing Competition

Gozem’s entry into mobile money comes at a time when the sector is seeing rapid growth in Africa. Mobile money services across the continent are projected to grow by 16-20% annually through 2030, driven by increasing financial inclusion.

However, the company is entering a competitive space, with Togo’s market already dominated by TMoney and Flooz which control virtually the entire market. Yet, despite these players, the potential for Gozem remains substantial. Togo’s mobile money penetration rate stands at 42.4%, significantly lower than regional leaders like Kenya and Benin, indicating room for further growth.

Partnerships with financial institutions will be key to Gozem’s success. Through its collaboration with NSIA Banque, Gozem Money will allow users to conduct transactions via the mobile app. The company also hopes to leverage its transportation network to promote widespread adoption of its financial services, an approach that could set it apart in a crowded marketplace.

By layering mobile financial services on top of its ride-hailing and delivery offerings, Gozem is drawing users deeper into its ecosystem. Dana previously noted the company’s plan to offer credit services that would enable customers to buy cars and further engage with the platform. This strategy, if executed well, could help Gozem replicate its early transportation success in the mobile money space.

Super App Aspirations in Africa

While Gozem pushes forward with its super app ambitions, Africa’s broader super app landscape tells a cautionary tale. The continent has witnessed varying results in the past few years. Notably, OPay, backed by Chinese investors, initially aimed to become Nigeria’s go-to super app. However, regulatory crackdowns on commercial motorcycles in Lagos forced OPay to pivot away from its super app model. Today, OPay focuses primarily on money transfers, having scaled back its broader service ambitions.

Gozem appears undeterred by these challenges. It continues to offer motorcycle-based transportation services, particularly in cities like Lomé and Cotonou, where motorcycles remain a key mode of travel. Unlike in Lagos, where regulators cited safety concerns in banning motorcycle taxis, Gozem has avoided similar restrictions, with Dana noting, “Directives on wearing helmets are enforced and diligently followed in the countries Gozem operates in.”

The company’s decision to stay the course on its super app vision in Francophone West Africa reflects its confidence in the region’s unique market dynamics. Currency stability within the CFA currency region also provides a more predictable environment compared to markets like Nigeria.

Gozem’s acquisition of Moneex and its planned rollout of financial services align with a broader strategy to expand beyond transportation and grow its footprint in underserved markets. “We started in Togo and wanted to be in the Francophone region because currency stability was an attraction,” Dana told Semafor Africa last year. With Togo serving as the launchpad, Gozem aims to eventually expand its mobile money service to Benin, Gabon, and Cameroon, where it already operates its transportation platform.

Gozem’s Long-Term Vision

For Gozem, mobile money represents more than just an added feature—it’s a critical component of its broader goal to become the go-to platform for a range of services in West Africa. As 57% of the continent’s population remains unbanked, the potential for digital financial inclusion is immense. By bringing financial services to its existing user base and beyond, Gozem hopes to position itself as a key player in the region’s fintech ecosystem.

Togo’s growing mobile money market, which reached a transaction value of FCFA 917 B FCFA (USD 1.54 B) in Q1 2024, presents a lucrative opportunity for Gozem. Its long-term vision is to become an integrated platform that meets the digital needs of millions of underserved people across Francophone West Africa.

While challenges remain—competition, regulatory hurdles, and user adoption—Gozem’s bold step into mobile money could help solidify its place in the region’s evolving digital economy. As the fintech landscape heats up, all eyes will be on Gozem’s next moves, which may well shape the future of super apps in Africa.

Chinese tech giant, Huawei has made a bold move on the Nigerian banking sector, securing a multi-million dollar cloud deal with United Bank for Africa (UBA), worth approximately USD 3 M.

This agreement, which provides UBA with 200 petabytes of storage and cloud solutions, marks a significant shift as Huawei positions itself as a strong competitor to IBM, a longtime leader in banking technology in Nigeria.

For years, Nigerian banks have heavily relied on IBM for their storage needs, with many Chief Information Officers (CIOs) maintaining close ties to the company to safeguard their positions.

However, growing economic pressures, rising costs, and changes in IBM’s pricing model have made these traditional solutions less attractive, opening the door for competitors like Huawei.

In this new deal, UBA—a bank with over 30 million customers across Africa—chose Huawei for its more cost-effective and scalable storage solutions. The decision comes as UBA’s existing storage infrastructure reached its capacity, creating an urgent need for expansion.

Traditionally, the bank relied on IBM and VMware for storage and virtualization technologies, but VMware’s shift to a subscription model, which nearly tripled its licensing costs after its acquisition by Broadcom, prompted UBA and other Nigerian banks to reconsider their technology vendors.

Huawei has taken advantage of this market shift, offering highly competitive pricing, along with innovative solutions that appeal to banks looking to reduce operational costs.

The Chinese tech giant also throws in a package that includes a unique one-year free proof of concept, making it even more attractive for banks in need of cost-effective storage solutions without high upfront investments.

This move signals Huawei’s intent to challenge IBM’s dominance and establish itself as a major player in the Nigerian banking technology landscape.

But, while Huawei’s aggressive pricing and robust solutions have attracted several Nigerian banks, including Zenith Bank, Fidelity, Opay and First Bank, many banks are hesitant to fully transition to Huawei’s solutions due to data security concerns and the political implications of using Chinese technology for sensitive financial operations.

Some have opted to take a hybrid approach, keeping IBM’s technology for critical workloads while exploring Huawei’s more affordable options for other tasks.

As Nigerian banks continue to modernize their operations, the balance between cost, security, and technological advancement will be required. Huawei’s ability to offer cutting-edge technology at competitive prices, coupled with its willingness to offer risk-free trials is proving to be a viable choice, positioning it well to take on the established players like IBM in the market.

Meanwhile, the company is reportedly in talks with at least one other major Nigerian bank to provide its cloud and storage services.

In a surprising twist during the sentencing hearing for Tyrese Haspil, the man convicted of brutally murdering tech entrepreneur Fahim Saleh, the convicted killer defied his own defense strategy. More than two hours into the Manhattan Supreme Court proceeding, Haspil stunned the courtroom by disagreeing with his lawyer’s plea for a reduced sentence, stating, “Unlike my counsel, I don’t think anything less than life without parole would be appropriate.”

Haspil, now 25, had been found guilty of first-degree murder and other charges, including grand larceny and concealment of a human corpse, for the July 2020 killing of Saleh. Haspil had worked as Saleh’s personal assistant before their relationship descended into betrayal, theft, and ultimately murder. He was sentenced Tuesday to 40 years to life in prison.

The Betrayal and the Crime

Saleh, a visionary tech founder, established Gokada, a prominent Nigerian motorcycle ride-hailing company, and was well-known for his innovative contributions to the tech scene. Beyond Gokada, Saleh launched Adventure Capital, a venture fund that supported tech entrepreneurs in developing countries.

The relationship between Saleh and Haspil began in 2018 when the supposed young coding prodigy was hired to manage the entrepreneur’s finances. However, by early 2020, Saleh discovered Haspil had embezzled USD 400 K from him. Instead of turning him over to authorities, Saleh offered Haspil an opportunity to repay the stolen funds, hoping to give him a second chance.

At a June hearing, Haspil admitted he padded his resume to work for Saleh after being fired from a Long Island restaurant for embezzling USD 20 K. He said he needed the money to support his high-maintenance French girlfriend and her lavish lifestyle.

Saleh’s generosity was ultimately met with further betrayal. Unbeknownst to him, Haspil continued to siphon money using a fake PayPal account and devised a plan to kill Saleh before the full extent of his embezzlement could be uncovered.

On July 13, 2020, Haspil, wearing a suit and mask, followed Saleh into his Manhattan apartment, incapacitated him with a Taser, and then fatally stabbed him in the neck and torso. The next day, Haspil returned to dismember Saleh’s body with an electric saw, only to be interrupted when the saw’s battery died and he had to step out to purchase a charger. During his absence, Saleh’s cousin entered the apartment and discovered the gruesome crime scene.

Trial and Conviction

The trial that concluded in June 2024 revealed more details of Haspil’s deception and the cold, calculated nature of his crime. Prosecutors painted a picture of a young man motivated by greed and fear, meticulously researching ways to cover up the murder.

Emails and testimony demonstrated the depth of Haspil’s betrayal. After admitting to the theft, Haspil agreed to repay Saleh, who trusted that his former assistant would make amends. Instead, Haspil plotted the murder while continuing to embezzle. He created a fake PayPal account under the name “Nethertek Switzerland,” further draining funds from Saleh’s accounts.

The defense, led by attorney Sam Roberts, tried to highlight mitigating factors, citing Haspil’s troubled upbringing and trauma from being raised by his grandmother and enduring abuse in foster care. Roberts argued that Haspil, just 19 at the time of the embezzlement, was still maturing. “We fully believe that Tyrese Haspil is not solely and only the worst thing that he’s done in his life,” Roberts stated during the trial.

However, the jury found Haspil guilty of first-degree murder, rejecting the defense’s arguments for leniency. Haspil was also convicted of grand larceny and burglary for his financial crimes.

Sentencing and the Unusual Turn of Events

During the sentencing hearing, Roberts once again sought a lighter punishment, requesting that the court avoid a de facto life sentence. However, in a shocking moment, Haspil contradicted his attorney’s efforts, signalling his acceptance of the gravity of his crime.

Manhattan Supreme Court Justice April Newbauer, in her sentencing, emphasised that greed had driven the young man to commit the murder. “One person had it, another took it and wanted to keep taking it without consequences, at all costs. This is the very essence of greed,” she said.

In her victim impact statement, Saleh’s sister, Rifayat, expressed the devastation that Haspil’s betrayal had caused. “You’re a con man, and you’re a murderer. I have no sympathy for you,” she told the court. Saleh’s father, Ahmed, described the murder as “sickening,” adding, “He should spend the rest of his years in prison where he belongs.”

District Attorney Alvin Bragg also weighed in, noting Saleh’s generosity and the senselessness of the crime. “Even after the defendant stole from him to fund a lavish lifestyle, Mr. Saleh still gave him a second chance,” Bragg said. “This was a kind, generous and empathetic person who positively impacted the world.”

The Legacy of Fahim Saleh

The murder of Fahim Saleh not only robbed the tech world of an innovator but also left a lasting wound in the hearts of those who knew him.

Saleh’s entrepreneurial spirit and philanthropic efforts made a significant impact in Nigeria and beyond. Gokada, once a thriving bike-hailing service in Lagos, represented Saleh’s commitment to solving practical problems through technology. His work through Adventure Capital aimed to empower other tech founders in developing countries, and his legacy as a mentor and visionary lives on.

But the shocking nature of his death continues to overshadow his achievements. Haspil’s conviction and sentencing mark the end of a tragic saga of betrayal and greed, a tale that serves as a painful reminder of the dangers of misplaced trust.

Haspil will serve 40 years to life in prison for the brutal murder of Saleh. The sentencing brings a degree of closure to Saleh’s family and the tech community, but the loss of such a promising and compassionate entrepreneur leaves a void that cannot be filled.

Takealot, Naspers’ e-commerce giant in South Africa, has sold its online fashion retailer Superbalist to a consortium of South African retail and private equity investors led by Blank Canvas Capital.

The sale marks an exit from fashion for the retail giant as it focuses on its core operations—Takealot.com, its e-commerce platform, and Mr D, its popular food delivery service.

Reports first surfaced in March that Takealot was considering offloading Superbalist in response to mounting competitive pressures in the South African e-commerce landscape.

The entry of global players like Amazon and the aggressive expansion of low-cost Chinese retailers such as Shein, Wish, and newcomer Temu have significantly crowded the market posing a more immediate threat to its business model.

These budget-friendly competitors have not only intensified the competition but have also exploited tax loopholes to import clothing at reduced duties, undercutting local retailers like Superbalist.

Takealot confirmed the sale on Monday, stating that this strategic move will allow the company to concentrate on expanding its main businesses. “We extend our best wishes to the Superbalist team as they embark on this new chapter in their journey,” the company said while reassuring customers that Superbalist’s services “will continue without interruption during the transition.”

To ensure a smooth handover, Takealot says it will maintain its support through a multi-year service agreement, providing warehousing and logistics services to Superbalist.

The decision to sell Superbalist also comes against the backdrop of financial challenges driven by the highly competitive landscape.

Despite a booming online retail market in South Africa, which reached a turnover of ZAR 71 B (USD 3.97 B) in 2023, Takealot has struggled with losses. The online retailer had reported a trading loss of ZAR 252 M (USD 14 M) for the fiscal year ending on March 31, 2024, primarily driven by Superbalist.

While Takealot.com and Mr D reported profits, Superbalist’s performance has lagged, failing to meet post-COVID growth expectations.

Superbalist’s journey began in 2010 as Citymob, a platform that quickly gained popularity for its exclusive offerings and curated products. In 2013, it pivoted to focus on fashion e-commerce, rebranding as Superbalist and eventually becoming South Africa’s largest online fashion retailer. Takealot acquired Superbalist in 2014 as part of a ZAR 1.8 B (USD 100 M) investment from Naspers, aiming to capture the millennial market, which was considered the most powerful demographic in online retail.

However, the South African retail landscape has evolved, and Superbalist has faced significant challenges in adapting to the changing environment. Last year, the company underwent a Section-189 process to restructure its operations, aiming to better align with the current economic conditions. Recent developments underscore the ineffectiveness of this strategy.

For Superbalist, the acquisition by Blank Canvas Capital and its partners offers a chance for renewed focus and growth. With fresh backing, the retailer could be better positioned to navigate the challenges of an increasingly competitive e-commerce landscape in South Africa. Meanwhile, Takealot’s decision to concentrate on its core businesses reflects a strategic pivot, as it prepares to face the evolving dynamics of the market.

Superbalist’s journey under new ownership will be one to watch as it seeks to carve out its place in South Africa’s rapidly changing e-commerce market.

Few stories have captured the attention of industry watchers as dramatically as the controversy around Nigerian businessman Dozy Mmobuosi over the past year. Once regarded, however self-promoted, as a savvy player in tech and finance, Mmobuosi’s claims of a booming business empire have come crashing down amid allegations of massive fraud, resulting in a U.S. federal court order to pay over USD 250 M in fines and a ban on serving as a director of any public company.

The Final Judgment

The U.S. District Court for the Southern District of New York, under Judge Jesse M. Furman, has issued a default judgment against Mmobuosi and his companies—Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings, reports the FT. The court’s ruling came after Mmobuosi failed to respond to a civil complaint filed by the U.S. Securities and Exchange Commission (SEC) in December 2023. The complaint accused him of orchestrating a wide-ranging fraud that inflated the financial performance of his companies, duping investors worldwide.

Judge Furman noted that Mmobuosi and his companies had “failed to answer, plead, or otherwise defend” themselves in the case. As a result, the court ordered Mmobuosi and his entities to pay fines exceeding USD 250 M, marking the end of what the SEC described as an “empire of fiction.”

The Unraveling of Tingo Group

Mmobuosi’s fall from grace began with the rise of Tingo Group, a fintech company that claimed to have over 9 million customers in Nigeria, most of whom were farmers. Tingo Group reported substantial revenues, with Tingo Mobile—a subsidiary—claiming to have USD 461.7 M in cash equivalents in Nigerian bank accounts for fiscal year 2022. However, the SEC’s investigation revealed that these claims were almost entirely fabricated, with Tingo Mobile’s actual balance being less than USD 50.00.

The SEC’s complaint painted a picture of deception stretching back to 2019. Mmobuosi allegedly used falsified financial records to depict Tingo Mobile as a thriving business. In reality, the company had no meaningful operations, a negligible customer base, and virtually no cash in its accounts.

The scale of the fraud was staggering. Mmobuosi reportedly sold Tingo Mobile to two public companies at inflated prices, using fabricated financial statements to justify valuations exceeding USD 1 bB each time. These mergers, conducted entirely through stock, allowed Mmobuosi to secure substantial shares in the newly formed entities, which were then listed on U.S. capital markets.

The Hindenburg Report and Its Aftermath

The beginning of the end for Mmobuosi’s empire came in mid-2023 when U.S.-based short-seller Hindenburg Research released a damning report labelling Tingo Group an “obvious scam,” following an earlier May 2022 article by WT that revealed questionable details at the heart of Tingo. The report highlighted the fraudulent nature of the company’s financials, triggering an immediate collapse in the stock prices of Tingo Group and Agri-Fintech Holdings.

Despite the mounting evidence against him, Mmobuosi doubled down, continuing to deny the allegations and even appointing himself as co-CEO of Tingo Group in September 2023. Public filings from Tingo Group and Agri-Fintech Holdings continued to present fake operations as real, issuing false financial statements and withholding or providing deceptive information to the SEC.

But the SEC investigations alleged that Mmobuosi and his companies had forged bank statements, altered documents, and even bought domain names to impersonate fake suppliers and customers. These tactics were designed to deceive auditors and create the illusion of a thriving business, when in fact, the entire operation was a house of cards, the investigators emphasised.

The Sheffield United Debacle

Adding to the intrigue of Mmobuosi’s rise and fall was his audacious attempt to purchase Sheffield United, an English football club then competing in the Premier League. The bid, which ultimately failed, was funded through the same fraudulent means that characterised his business dealings. The SEC’s complaint noted that Mmobuosi had misused Tingo Group’s assets for personal expenses, including the failed acquisition of Sheffield United.

The SEC’s findings revealed a fraud that was not sophisticated or complex, but rather a brazen facade built on forged documents and hollow claims. The case also underscores the importance of regulatory oversight in protecting investors from such schemes.

As Starlink’s internet service continues to play a game of connect-the-dots across the African digital landscape, its journey into South Africa has been anything but smooth.

Initially slated to launch in 2023, the Elon Musk-owned company finds itself stuck in a web of red tape and protracted negotiations, leaving its South African debut to be postponed indefinitely.

For the tech giant that promises to conquer space, the terrestrial challenges of navigating South Africa’s complex regulations have proven a formidable adversary.

With an official launch remaining a distant dream, the company recently released a notice that it would terminate the connections of all individuals and businesses using Starlink in unauthorized locations. 

This disconnection will affect roaming customers who registered their kits outside of South Africa but have continued to enjoy the service within the country’s borders, where Starlink remains unlicensed.

The prevailing belief is that Starlink’s lack of license is due to the country’s Electronic Communication Act’s stringent requirement of 30% black ownership equity for any company wanting to operate. For Starlink, this regulation has been a stubborn hurdle.

Success Story Next Door

As challenges in the Southern African country seem unyielding, the satellite internet company appears to be breaking barriers in another.

Starlink has officially kicked off operations in next-door Botswana, where it initially faced similar challenges. This launch makes it the third African country to join the Starlink family in only this month, following similar successes in Sudan and soon-to-be-launched Ghana.

The debut comes 3 months after the Botswana Communications Regulatory Authority (BOCRA) granted Starlink its operating license, following a year of intense negotiations.

With traditional ISPs struggling to provide reliable connectivity, Starlink’s constellation of Low-Earth Orbiting (LEO) satellites in Botswana is poised to be a game-changer, offering high-speed internet to even the most remote and underserved areas. 

The service promises to deliver download speeds between 50-250 Mbps, a leap from Botswana’s current average of just 8 Mbps, according to a report by Ookla Speedtest Global Index.

However, Starlink access has a high barrier of entry with a hardware price range of USD 600 to USD 2,500. This can be a significant upfront cost for many potential customers, especially in regions with lower incomes.

Smooth Sailing in Africa’s Giant

Meanwhile, over in West African country, Nigeria –Starlink’s first African market–rather than facing pushback Starlink has been riding a wave of momentum. 

It recently inked a strategic partnership with Nigerian online marketplace, Konga. The partnership aims to provide satellite internet services to underserved areas, bridging the digital divide in regions with limited or no terrestrial internet coverage.

To celebrate the partnership, Konga is running a “Starlink Week” limited-time campaign that will offer discounts and other perks on Starlink kits on the platform from Monday, August 26th to Saturday, August 31st, 2024. Notably, Konga as the only authorized shop-in-shop for Starlink in Nigeria has been instrumental in making the Starlink kit accessible to more users. 

Rising Challenge for Kenya’s Local Players

To the East, Starlink is doing more than just bringing high-speed internet to those who need it most—it is turning the heat on the local players in Kenya. Per a previous report by WeeTracker, Starlink has gained significant traction in Kenya, with its user base growing tenfold in the first quarter of 2024 alone.

This rapid expansion has caught the attention of local players, with the country’s largest telecommunications company, Safaricom, now calling for stricter regulations on the satellite internet provider amid fears that the continued growth of Starlink could erode its market share and revenue.

Starlink’s journey across Africa has been a mix of triumphs and challenges. While its African expansion faces regulatory pushbacks and challenges in some regions, the company is making significant strides in others. With a population of 1.3 billion and only 40% internet penetration—the lowest in the world—the African continent remains a huge market with even bigger potential.

Ventures Platform, a prominent Pan-African early-stage venture capital (VC) firm, has released its 2023 Impact Report, offering a detailed examination of its role in the continent’s rapidly growing tech ecosystem.

With a portfolio that spans 72 startups and over 126 founders across the continent, contributing to the creation of more than 4,264 direct jobs and an estimated 20,650 indirect jobs, Ventures Platform is emerging as a key player in driving both financial growth and socio-economic progress across Africa.

Founder and Managing Partner, Kola Aina, takes pride in Ventures Platform’s impressive track record, highlighting in a recent interview with WT that four out of its six investment vehicles have achieved a DPI (Distributed to Paid-In Capital) above one.

“That basically means in four out of six vintages, we’ve made more money than we invested, and we turned actual capital back to investors, something we’re proud of,” he said,  a significant achievement in the venture capital scene.

The firm’s model balances commercial success with a strong commitment to social impact, the tech investor emphasised, noting the potential of VC funding to shape and shore up the future of African innovation while fostering widespread societal benefits.

And, every now and then, that can mean putting out fires.

Saving The Day

Notable in Ventures Platform’s success is its unique approach to crisis management, which has proven critical in an often volatile market. The firm’s intervention in companies like agritech startup Thrive Agric and business banking solution Brass highlights its proactive stance in safeguarding both financial investments and broader ecosystem stability.

“I often introduce myself as an entrepreneur pretending to be an investor,” Aina told WT over a call. “If you’ve built a business yourself, you would be very familiar with failure… we do not shy away from challenges.”

This philosophy is evident in how Ventures Platform managed to turn potential failures into opportunities for growth. For instance, Thrive Agric, which faced significant operational challenges, is now “10 times the business it was in 2020” thanks to Ventures Platform’s hands-on support, Aina said.

His background as an entrepreneur and technology operator provides him with a unique perspective on the struggles startups face, Aina explained, allowing Ventures Platform to engage more empathetically with portfolio companies.

This approach has not only rescued businesses but also positioned them for long-term success, ensuring that ventures like Brass, which faced challenges with managing customer deposits, could stabilise without compromising customer trust.

“As long as the original business case still exists, as long as there’s no outright fraud by the founders, we’re very open to working with founders through difficult times,” he said.

“We’ve seen, some of the best fortunes and some of the greatest impacts being created after companies are able to go through a challenging phase.”

Aina also emphasised that Brass, which has since seen a leadership revamp, has gotten past the crisis and customers have been able to access their funds even before the takeover by a consortium was announced.

Impact vs Profit

Aina believes there is no inherent conflict between achieving financial returns and making a social impact. “For impact to be sustainable, it ideally should be delivered through business models that are sustainable,” he explained, emphasising that the fund is first and foremost a commercial venture focused on delivering returns to its investors.

He also made it clear that Ventures Platform does not seek out “impact businesses” specifically, as the primary criterion for any investment is its potential to deliver strong financial outcomes. While the fund adheres to Environmental, Social, and Governance (ESG) standards, excluding sectors like weapons manufacturing and gambling, Aina stressed that profitability and impact often go hand in hand in the African context.

The investor added insights into what the fund looks for when identifying promising investments. “The first and perhaps most important factor is finding a clear market-creating innovation,” Aina explained, referring to businesses that enable access to essential services for underserved segments of society.

Ventures Platform prioritises companies that solve critical needs—what Aina calls “painkillers,” rather than merely enhancing wants, or “vitamins.” This approach ensures that the businesses they back not only generate strong returns but also deliver significant impact, particularly in Africa where many consumers are lower-income.

Additionally, the fund evaluates the inclusivity and diversity of the business’s practices and team, encouraging balance, especially in gender representation. These criteria are central to Ventures Platform’s investment thesis, leading them to pass on companies that don’t align with their focus on market-creating innovations, even if they appear to be good businesses.

The fund also engages in initiatives through its foundation to support long-term ecosystem growth, particularly in areas like fostering female entrepreneurship, but these efforts are separate from its commercial investments.

Expanding Gender Diversity in Tech

Ventures Platform is also at the forefront of addressing gender disparities within the African tech ecosystem. The impact report reveals that women make up 12.9% of employees within the firm’s portfolio companies, with 21% of these companies having at least one female founder.

Moreover, women hold 32% of leadership roles within these businesses. While these numbers are encouraging, Aina acknowledges that more needs to be done. “We realised we needed to be more deliberate,” he said, discussing the firm’s efforts to increase deal flow from female-led startups.

To this end, Ventures Platform launched the “Leveling VC” initiative, which aims to increase venture capital funding for female-led startups from 13% to 25% by 2028.

This initiative is part of a broader strategy to foster gender diversity not just within Ventures Platform’s portfolio but across the entire African tech landscape.

“This is not asking for a reduction of standards,” Aina emphasised, noting that the firm remains committed to backing only the most promising companies, regardless of the gender of their founders.

Looking ahead, Aina’s long-term vision for Ventures Platform is to “democratise prosperity in Africa through our investments.” He sees the firm’s growth as a catalyst for broader impact, with plans to scale investments significantly and expand their reach across every region of the continent. Aina emphasised the importance of supporting African innovators and building a sustainable ecosystem, ensuring that Ventures Platform continues to deliver strong returns to investors while driving socio-economic progress across Africa.

Catalysing Pan-African Innovation

Ventures Platform’s impact is not confined to a single country. The firm has adopted a pan-African investment strategy, funding startups across regions including South Africa, Zambia, Uganda, Kenya, Egypt, and Senegal.

This geographic diversification allows Ventures Platform to mitigate risks and tap into a wider pool of innovation. Over the last eight years, the firm has funded dozens of startups, many of which have become category leaders in sectors such as fintech, healthtech, and insurtech, including notable names such as Paystack, Moniepoint, RelianceHMO, and Tizeti among others.

One standout example is PiggyVest, a fintech company that has facilitated access to financial services for over 4 million underserved individuals in Nigeria. This has contributed to a 13.5% increase in financial inclusion in the country, demonstrating both commercial success and societal impact.

Aina is also keen on the role of the current artificial intelligence (AI) wave in shaping the future of African tech, while mindful of sifting hype from substance. “We’ve recently been building AI into our tech stack to help us be more efficient and do more,” Aina shared, highlighting how the firm handles the challenge of reviewing thousands of pitches annually and managing a large portfolio.

Ventures Platform is also actively investing in companies leveraging AI, such as Lengo AI, which helps FMCGs optimise market strategies and improve distribution to small, informal stores across Africa. The investor is optimistic about the future of AI in the African tech landscape, especially with such innovative solutions emerging.

Meanwhile, in the wake of the recent venture capital downturn, Aina shed light on how the shake-up has impacted not just startups but also VCs themselves.

“LPs are more anxious for liquidity and DPI,” Aina noted, pointing out that slower distributions have created a ripple effect throughout the industry.

As limited partners (LPs) demand quicker returns, general partners (GPs) are consequently placing more pressure on their portfolio companies to deliver. Aina also highlighted a decline in interest from local investors, attributing it to the struggles in the local economy, a tougher foreign exchange environment, and a slowdown in liquidity.

Despite these challenges, Aina maintains that Ventures Platform remains committed to investing, confident that their continued efforts during this challenging period will ultimately be rewarded. “The smart investors know that the best time to invest is when everyone is afraid,” he remarked, reflecting the firm’s resilience in navigating these turbulent times.

Sustainability and Corporate Governance

Ventures Platform’s investment strategy is also rooted in sustainability and strong corporate governance. The firm prioritises backing companies that adhere to the highest standards of transparency, accountability, and ethical practices.

“We believe that strong business governance is critical to sustainable growth,” Aina stated, highlighting how Ventures Platform supports businesses in implementing sustainable practices that reduce environmental impact and drive long-term benefits.

This focus on governance and sustainability is not just a moral stance but a strategic one, he added. Ventures Platform’s insistence on solid unit economics from the outset ensures that its portfolio companies are built on sound business models capable of delivering long-term value.

“Not all ideas are venture-backable,” Aina pointed out, emphasising the importance of ensuring that a business model can be profitable from day one, even if profitability is temporarily suspended in pursuit of growth.

Ventures Platform’s 2023 Impact Report, alongside Aina’s thoughts, paint a picture of a venture capital firm that is both ambitious and cautious, striving to drive innovation while navigating the complexities of Africa’s diverse markets.

The firm’s focus on job creation, financial inclusion, gender diversity, and corporate governance highlights its broader vision for the continent. However, the challenges that lie ahead—scaling its impact across Africa, closing the gender gap, and maintaining high governance standards—will test the resilience and adaptability of its strategy.

The recent online spat between South Africa and Nigeria, fueled by a controversial beauty pageant and long-running hostilities, has left e-hailing apps and their drivers counting significant losses. What began as a social media prank quickly escalated into a cross-border debacle, impacting drivers, passengers, and the ride-hailing companies themselves.

The roots of this peculiar episode can be traced to the withdrawal of Chidimma Adetshina, a model with Nigerian and Mozambican heritage, from the Miss South Africa beauty pageant. Adetshina’s exit followed a wave of xenophobic abuse directed at her due to her Nigerian parentage.

While Adetshina accepted an invitation to participate in a similar contest in Nigeria, the incident inflamed long-standing tensions between South Africans and Nigerians, who often perceive each other as economic competitors.

Things Go South

The situation took a strange turn on August 21, when Uber and Bolt users in South Africa began booking fake rides in Nigeria. The intention was simple: prank drivers in the other country by sending them on wild goose chases. Once a booking was confirmed, the pranksters would send misleading location details before eventually cancelling the ride.

Screenshots of these pranks soon surfaced on social media, encouraging more users to join the fray. By the following day, Nigerians had started retaliating with their own fake bookings in South Africa. What had begun as a few isolated incidents quickly spiralled into a high-volume, cross-border trolling campaign that wreaked havoc on ride-hailing services in both countries.

Social media screenshots also showed Nigerians going a step further in their retaliation by placing fake payment-on-delivery orders at e-commerce platforms and Nandos, a popular South African fast-food chain, extending the feud beyond ride-hailing apps.

Diplomatic and socioeconomic relations between South Africa and Nigeria, two of Africa’s economic powerhouses, have soured for much of the post-apartheid era, burying a history of the latter notably supporting the former in the fight against Black repression far into the rearview mirror.

Waves of xenophobic attacks in 2008, 2015, and 2019 targeted at African immigrants in South Africa, including Nigerians, have been met with strong pushbacks and reprisals especially in Nigeria, deepening the feud between the nations. Additionally, in 2012, South Africa denied entry to 125 Nigerians over invalid yellow fever certificates, sparking a diplomatic standoff. In response, Nigeria deported 56 South African businessmen.

Attempts to mend fences, which have included State visits by successive Presidents over the last decade, have come up short.

The Impact on Drivers

For the e-hailing drivers, this prank war was no laughing matter. In cities like Lagos, Cape Town, and Johannesburg, the surge in fake bookings led to surge pricing, making it difficult for real customers to find rides and stranding many who couldn’t afford the inflated fares.

“I stopped using the app after getting at least 10 fake bookings,” said Mathew Ineh, a Lagos-based Bolt driver who spoke to Rest of World.” Ineh eventually confronted two of these pranksters through the app’s chat feature. One of them reportedly said, “It’s Nigeria versus South Africa.” Another simply apologised.

The situation was similar in South Africa, where drivers found themselves wasting time, fuel, and money on ghost passengers. Munyaradzi Chinyama, a Zimbabwean Bolt driver based in Cape Town, recalled receiving three fake ride requests before realising they were part of the prank. “I wasted a lot of fuel, time, and money,” Chinyama told the BBC.

The economic impact on drivers cannot be overstated. In Nigeria, where fuel prices have skyrocketed in recent months, the cost of driving to non-existent customers was especially painful. “Imagine driving kilometres, burning petrol which is already scarce and expensive in Nigeria, to meet customers that don’t exist,” said Ayoade Ibrahim, secretary-general of the Amalgamated Union of App-based Transporters of Nigeria.

Financial Impact on Ride-Hailing Companies

Bolt, one of the primary platforms affected by this prank, has acknowledged the significant financial losses incurred as a result of the conflict, reports local daily PUNCH. Yahaya Mohammed, Bolt’s Country Manager for Nigeria, lamented the disruption of services and the toll it took on both drivers and the company itself.

“The prank led to huge financial losses and disruption of service in both countries,” Mohammed said. “We had to block a high volume of orders coming from specific areas in Nigeria and South Africa and eventually restricted inter-country ride requests.” PUNCH also reports that the Communication Manager of Bolt, Femi Adeyemo, admitted that the company suffered financial losses.

The prank not only affected Bolt’s operations but also led to the blocking of an undisclosed number of users. These measures, while necessary to stem the tide of fake bookings, further contributed to the company’s losses. Adeyemo, Bolt’s Communication Manager, emphasised the seriousness of the situation. “Any disruptions are taken seriously, and we work diligently to minimize their impact on both our drivers and passengers,” Adeyemo said.

The Response from Ride-Hailing Companies

Both Bolt and Uber quickly moved to address the situation. Bolt, which was hit particularly hard by the prank war, restricted inter-country ride requests between South Africa and Nigeria after identifying and blocking users involved in the hoax. “Following a thorough investigation and the implementation of enhanced security measures, we have addressed this issue swiftly,” said Mohammed, Bolt’s Nigeria country manager.

Uber, while not restricting inter-country rides, also took action. “These hoax bookings violate Uber’s community guidelines,” said Tope Akinwumi, Uber’s Nigeria country manager. “As we conduct the investigation, our operations in South Africa and Nigeria remain unaffected.” Both companies encouraged drivers to report any further incidents through their in-app support channels.

Potential Compensation and Future Measures

In response to the chaos, Bolt has initiated an internal investigation to assess the full extent of the financial damage. According to Mohammed, the company is considering compensating drivers who suffered losses due to the prank. “An investigation will be done internally… to see whether there is room for compensation, but at the moment, it is something that is currently being discussed,” he said.

In the meantime, Bolt has implemented stricter security measures, including tracing IP addresses from both countries and restricting inter-country ride requests. These steps are aimed at preventing a repeat of the incident, though they may also limit the flexibility of the platform for genuine users.

The “Bolt war,” as it has been dubbed on social media, has not only strained relations between South Africa and Nigeria further but has also highlighted the vulnerability of gig economy workers to external conflicts. Drivers, already operating in challenging economic conditions, were the unintended victims of a feud that had nothing to do with them.

The prank also exposed the delicate balance that ride-hailing companies must maintain in managing cross-border services. Surge pricing, intended to manage supply and demand, instead left many real customers without affordable transport options, exacerbating the situation.

As the dust settles on this unusual chapter, e-hailing drivers in South Africa and Nigeria are left counting the cost of a conflict that had little to do with them.