Internet service disruptor Starlink came to Africa with a plan: deliver fast, reliable satellite internet to poorly served areas. But as the company now faces capacity issues in the continent’s urban centres, it’s becoming clear that Africa has other ideas.

From bustling metropolises like Nairobi and Lagos to Harare and Lusaka, city dwellers have driven Starlink’s surge in demand. This rush has even forced the company to halt new sign-ups in major urban areas, despite having reserved “significant capacity outside of city centres,” according to owner Elon Musk’s own statement on X, in which he added that Starlink is working to increase internet capacity in dense urban areas in Africa as fast as possible.

The company says too many users are trying to access the Starlink service in Africa’s urban regions which are currently at network capacity. Observers reckon the company may have underestimated demand in Africa’s urban areas and overestimated need in remote locations.

The result? Starlink’s kits are now unavailable for purchase in some of the continent’s biggest cities, leaving hopeful customers in limbo.

The Capacity Mismatch

When Starlink launched in Africa, its initial rollout aimed at providing a solution to the internet black holes in regions with unreliable service. Yet, urban residents—hungry for faster, more reliable connectivity than their traditional ISPs offer—are snapping up kits faster than SpaceX, Starlink’s parent, can deliver capacity.

Kenya, for instance, has seen Starlink subscriptions grow to approximately 8,000 users in less than a year, even ranking as the country’s 10th largest ISP. Meanwhile, Nigeria boasts over 23,000 active users. But these figures mask a deeper issue. According to local reports, the flood of users in cities has driven average speeds down to mere double-digit Mbps, well below Starlink’s promised performance.

Starlink’s struggle to manage urban demand has not gone unnoticed. In Kenya, Safaricom, the dominant telecom provider, called for stricter regulations on satellite ISPs, arguing players like Starlink should be required to partner with local operators. In Zimbabwe, Zambia, and beyond, signs of strain are evident. Urban customers are increasingly finding the service “Sold Out,” and speeds are lagging.

SpaceX did not respond to a request for comments.

Roaming Workarounds and Cracks in the System

Adding to the complexity, Starlink’s Roaming service—intended for mobile, temporary internet access—has been creatively used to bypass geographical restrictions. Users in countries where Starlink lacked regulatory approval would purchase kits in licensed areas and use them via the Roaming package, which costs USD 100.00 monthly. This tactic let some customers in unlicensed regions connect to the Starlink network, creating a shadow user base that thrived on loopholes.

But that workaround is now being systematically closed. In late October 2024, African countries disappeared from Starlink’s Roaming subscription options, frustrating users who had come to depend on this solution. Reports from South Africa suggest a Facebook group was among the first to flag the change, with one user sharing, “I’m not sure if this is a glitch…but when I try to order the roam package, there aren’t any African countries listed.” An unofficial Starlink importer, IcasaSePush, later confirmed that roaming subscriptions were indeed gone.

This crackdown hits especially hard in South Africa, where Starlink remains unlicensed. Some early adopters had managed to maintain service. However, with Roaming gone, these users now face the possibility of service suspension.

Regulatory Hurdles and Government Responses

The retreat of Starlink’s roaming feature isn’t entirely surprising, given mounting regulatory scrutiny. In Cameroon, authorities outright banned the import of Starlink kits, citing unlicensed operations. Nigeria’s telecom regulator recently blocked the company from raising prices without prior approval, and South Africa’s rules present their own set of barriers. The country’s 30% Black ownership mandate for tech firms remains a sticking point, although some government officials have hinted at potential exemptions.

Moreover, political attitudes toward Starlink are shifting favourably. Kenya’s President William Ruto praised Starlink for boosting competition. In South Africa, President Cyril Ramaphosa has urged Musk to invest, calling the billionaire’s success “remarkable.” Still, Starlink’s official coverage map continues to list South Africa’s launch date as “unknown.”

But, in any case, the removal of the Roaming service reflects a tightening strategy, likely aimed at encouraging proper licensing and managing capacity more effectively. Stellar Systems, an authorised Starlink retailer in Zambia which spoke to MyBroadband, stated that the misuse of roaming plans has exacerbated the strain on the network. “Misuse…by users in unofficially supported countries may lead to the permanent shutdown of the roaming feature,” the retailer warned.

Observers also speculate that Starlink’s adjustments might be a response to government pressure and logistical challenges.

Ultimately, Starlink’s African journey highlights the tension between its vision and the continent’s realities. While remote users may have been the intended beneficiaries, urban centres are where the true demand lies. Now, with regulatory hurdles and strained networks, the question is whether Starlink can recalibrate fast enough—or if Africa’s own market forces will continue to reshape its strategy.

South Africa’s largest e-commerce platform, Takealot, is turning its gaze beyond metropolitan strongholds in a strategic push to capture the elusive township market. As competition from international heavyweights like Shein, Temu, and Amazon ramps up, Takealot is betting that last-mile delivery solutions and government partnerships can keep it in the lead.

But breaking into township economies is fraught with challenges. Poor infrastructure, security risks, and high delivery costs have long held back e-commerce penetration in South Africa’s underserved regions. Yet, Takealot believes it has a plan to not just break through but thrive.

Takealot’s latest initiative, launched in collaboration with the Mpumalanga provincial government, is designed to tackle one of the most stubborn barriers to e-commerce: effective last-mile delivery. The company plans to recruit 1,000 delivery drivers in Mpumalanga, a key province for its township rollout.

Tshepo Marumule, Takealot’s head of external affairs, underscored the importance of reaching residents who previously had limited access to the platform. “People need to know that they don’t have to go all the way to Mbombela to have access to what they need as they can have it delivered,” he told Sunday Times.

Takealot will deploy these drivers for both its main platform and the food delivery service Mr D. This move aims to unlock demand by addressing a core pain point: accessibility. The company is also investing in electric bicycles for riders, hoping to reduce costs and enhance safety in areas where motorcycles are seen as dangerous or inefficient.

Security Concerns and Cost Challenges

Takealot’s township expansion comes at a time when e-commerce in South Africa is grappling with heightened security issues. FarEye CEO Kushal Nahata recently pointed out that the country’s delivery costs are 50% to 100% higher than the global average, partly due to rampant vehicle hijackings. Data from Tracker shows that delivery vehicles are now more likely to be hijacked than personal cars, with incidents spiking during peak retail periods like Black Friday and Christmas. “Security expenses are the biggest concern for couriers,” the SA Production and Inventory Control Society noted in a recent report.

Marumule acknowledged these risks, stating that Takealot is in discussions with the Mpumalanga government to find ways to safeguard drivers. For Takealot, mitigating these security threats is not just a logistical issue but a financial one, as heightened security demands could erode the cost benefits of expansion.

Lessons from other markets

Takealot is not alone in navigating the complexities of e-commerce in underserved areas. Jumia, another major player in Africa’s e-commerce market, has similarly faced infrastructure and cost hurdles but found partial success with a network of pickup stations. By allowing customers to collect orders from central locations, Jumia has reduced last-mile delivery costs and boosted accessibility in places like Uganda, where 24% of deliveries now occur in rural regions.

This pickup model has proven especially effective in areas lacking formal addresses and reliable roads. Jumia’s CEO, Francis Dufay, emphasised that pickup stations have helped the company offer “competitive delivery options without the need for complex last-mile logistics.” However, even with this success, the challenge of scaling sustainably remains, especially as economic pressures mount.

Township economies in South Africa represent a tantalising yet challenging market, estimated at ZAR 200 B (~USD 11.4 B) annually by Trade Intelligence. Despite this potential, issues like limited internet access, digital illiteracy, and consumer distrust in online payments persist. Andy Higgins of Bob Group pointed out that e-commerce platforms must adapt by offering “mobile-friendly interfaces, flexible payment options, and affordable delivery solutions.”

Regarding affordable delivery solutions, Higgins opines that partnerships with local couriers or logistics services that understand the nuances of township delivery can be a gamechanger for township businesses while noting that pickup points can overcome the lack of formalised addresses in these areas.

“Likewise, security concerns can be alleviated by limiting distribution to more secure locations using a pickup point network,” he adds.

Digital literacy campaigns and partnerships with community organizations could also help, but these efforts require long-term commitment. Takealot, like others, will have to grapple with the realities of providing e-commerce services in areas where basic infrastructure is lacking.

As Takealot works to entrench itself deeper into the township market, it faces a rapidly changing landscape. Amazon’s entry into South Africa could shake up the market, with promises of economies of scale that could drive down prices. Meanwhile, fast-fashion e-tailers Shein and Temu have made aggressive inroads into the local market, leveraging global supply chains to offer unbeatable prices.

This shakeup could redefine e-commerce for millions of South Africans—but only if Takealot, and its competitors, can deliver on their promises in the face of significant hurdles.

Amid inflation, currency depreciation, and economic uncertainty, Nigeria’s wealthtech startups face a daunting question: Can investment platforms thrive where wealth itself is becoming scarce?

This question is particularly relevant as companies like Bamboo, Risevest, and PiggyVest grapple with a shifting landscape, navigating a wave of challenges at home while making strategic moves abroad.

Inflation and Currency Troubles

PiggyVest’s latest Savings Report for 2024 highlights just how grim the economic situation has become. Inflation has skyrocketed, rising from 25.08% in 2023 to 32.15% in 2024. Nearly 90% of the 10,000 Nigerians surveyed have experienced a sharp increase in expenses.

Income remains low as 37% earn below NGN 100 K (~USD 60.00) monthly and another 28% earn no income at all, while the proportion of Nigerians earning within various higher income brackets (between NGN 100 K and NGN 1 M) has dipped significantly relative to the previous year.

As a result, savings habits have deteriorated. As much as 43% of respondents are unable to save at all while only 47% of respondents say they save monthly, a steep drop from 64% last year. The burden of inflation and rising costs is palpable. As one Mr James Uche, a civil servant, lamented, “The increase in school fees, electricity tariffs, and even the cost of fuel has made it very difficult to continue [saving].”

This economic strain extends to investment behaviours. The naira’s value has plunged more than 70% against the U.S. dollar in the past year, drastically eroding wealth. For platforms like Bamboo, which built their brand on offering access to U.S. securities, this currency devaluation has hit hard. As the cost of buying foreign stocks has soared, user activity on these platforms has inevitably declined.

Strategic Diversification

In response to these pressures, wealthtech startups are not standing still. Bamboo has executed a series of calculated expansions and product launches. In May 2024, it introduced Nigerian stocks on its platform, giving local investors access to blue-chip companies like MTN Nigeria and Dangote Cement. Bamboo CEO Richmond Bassey emphasised the growing demand for these assets, citing their strong returns: “Nigerian stocks are the most in-demand asset class due to their outstanding ROI.”

Beyond Nigeria, Bamboo has expanded into Ghana and South Africa, and this week, it rolled out a new remittance service, Coins by Bamboo, aimed at reducing cross-border transfer costs for the African diaspora.

With Nigeria ranking as the fourth-largest source of immigrants to Canada, Bamboo has secured a Money Service Business (MSB) license to operate there. “Many Africans want to invest back home, but complexity, high commissions, and fees discourage it,” Bassey explained. This remittance play, entering a competitive market against players like Nala and LemFi, is critical to Bamboo’s survival strategy.

Risevest’s East African Play

Meanwhile, Risevest is eyeing East Africa, having recently acquired Kenyan investment startup Hisa. This acquisition allows Risevest, which has some 600,000 users, to operate in Kenya without securing new licenses, leveraging Hisa’s local market knowledge. It follows Risevest’s acquisition of Chaka in 2023, another move aimed at strengthening its local and regional foothold.

By expanding beyond Nigeria, Risevest hopes to tap into the burgeoning digital investment market in Kenya. Risevest CEO Eke Urum has hinted at a cautious approach, saying, “It’s time to understand the company, culture, context, and market” before implementing any sweeping changes.

The stakes are high. As these startups pivot and diversify, the underlying challenge remains: building wealth management platforms in a context where wealth is scarce. Odunayo Eweniyi, Co-Founder & COO of PiggyVest which boasts 5 million users, underscores the gravity of the situation, emphasising that saving has “become more difficult for many Nigerians in the current economic climate.”

Yet, she remains committed to offering features that make saving and investing as accessible as possible, even under immense economic pressure. Inflation-resistant assets and savings options catering to recurring meagre sums are among its solutions.

Market Consolidation and Future Outlook

The wealthtech sector is also seeing signs of consolidation. With Risevest’s recent acquisitions and increasing competition, more mergers and strategic partnerships may be on the horizon. The trend is clear: startups must adapt or risk obsolescence. But can they thrive long-term? The answer could depend on their ability to innovate, localise, and scale across diverse markets.

The proliferation of stock trading platforms across Africa is a testament to the continent’s investment potential. However, their success hinges on more than just product offerings. As economic headwinds batter their core user base in Nigeria, the sustainability of these wealthtech platforms depends on a delicate balance: catering to an audience under severe financial strain while expanding into markets with untapped opportunities.

Bamboo, Risevest, and PiggyVest are betting that their adjustment strategies will pay off. But in an environment where wealth itself is becoming a luxury, the path forward is anything but certain. For now, these startups remain resilient, adapting to serve a user base facing unprecedented economic challenges.

AFEX, a commodities player in Africa, launched its 2024 Wet Season Crop Production report at a hybrid event held at its Abuja office. This annual report provides comprehensive insights into factors influencing the commodities landscape, such as production levels, price trends, and market outlook. For the first time, AFEX’s research includes data on Kenya’s agricultural sector and Nigeria, offering a broader view of key commodities like maize, paddy rice, soybean, sesame, ginger, cocoa, and sorghum.

The report, based on data collected from over 51,000 farmers across Nigeria and Kenya, serves as a resource for stakeholders in the agricultural sector, guiding policy development and data-informed trading decisions.

Nigeria’s Agricultural Landscape: Opportunities and Challenges

The Nigeria section highlights the untapped agricultural potential hampered by high input costs, limited financing, climate challenges, and pest infestations. Despite a general decline in production, crops such as sorghum, ginger, cocoa, and sesame show upward trends, benefiting from expanded cultivation and market response efforts following last year’s price increases.

Paddy rice production, however, is projected to decline by 2.6%, reaching around 8.1 million metric tons. Contributing factors include high fertilizer costs, insecurity in major rice-producing areas, and severe flooding, which has led many farmers to switch to more cost-effective and resilient crops like sesame and sorghum. This shift is expected to impact rice’s availability and price, raising food security and affordability concerns.

Maize production in Nigeria is also set to decrease by 5.6%, mainly due to reduced cultivated land and lower fertilizer usage, exacerbated by adverse weather conditions. The report anticipates a significant increase in maize prices during the 2024/2025 season, affecting farmers and consumers.

Kenya’s Agricultural Sector: Reliance on Imports and Production Challenges

In Kenya, agriculture relies on rainfed farming, with average farm sizes of 0.2 to 3 hectares, limiting production potential. Structural challenges hinder local production, including inadequate infrastructure, post-harvest losses, and climate impacts. The country’s dependency on imports also poses risks to national food security, highlighting the need for targeted interventions.

Maize production in Kenya is expected to decline by 1%, with decreased fertilizer use due to high input prices. Despite government efforts, maize prices have fallen by 29%, driven by continued imports from neighbouring countries that have offset expected yield gains, impacting local farmers’ output projections for the coming season.

Commodity Pricing Trends and Policy Implications

Price trends across Nigeria and Kenya show notable variations. In Nigeria, ginger prices are expected to increase by over 90% due to strong demand and the lasting effects of last season’s fungal attacks. The report underscores the importance of developing policies to boost agricultural productivity, improve food security, and attract investment in agro-processing and infrastructure to mitigate these challenges.

At the event, AFEX Nigeria President and CEO Akinyinka Akintunde commented, “Each year, we conduct this extensive survey with over 40,000 farmers to better understand the challenges in our agricultural sector. The findings reveal an urgent need for interventions to enhance productivity, especially for staples like maize and rice. Addressing issues such as access to quality inputs, climate resilience, and market stability can improve food security, support our farmers, and drive economic growth in Nigeria.”

Originally slated to unfold at Moonshot 2024, where “Building for the World” headlined discussions, my conversation with Maya Horgan-Famodu, Founder and Managing Director of Ingressive Capital which has seeded some of Africa’s most successful startups, continued despite a clash of schedules. As it turned out, the timing couldn’t have been more relevant: African founders are increasingly looking beyond their home continent, eyeing global markets for growth, sustainability, and competitive edge.

***

For African tech founders, breaking out of local markets and going global has gone from aspirational to essential. While expanding internationally is not without challenges, the benefits of tapping into a broader market can be transformative.

“The data is clear,” Maya tells WT. “Our portfolio companies that expanded globally are raising significantly more capital and growing nearly twice as fast as those focused solely on local markets.”

Maya’s Ingressive Capital, through its USD 10 M Fund I and USD 50 M Fund II, has backed leading startups such as Paystack, which was acquired by fintech heavyweight Stripe for over USD 200 M, as well as fast-growing businesses like Mono (Series A led by Tiger Global and Y Combinator alum), Carry1st (Series A led by Andreessen Horowitz, Google, Riot Games & AET), among others.

The allure of global reach: Why founders are looking abroad

From Moove and Flutterwave to Kuda, Asaak, and Bamboo, which today announced expansion to Canada, Africa’s most ambitious tech companies are increasingly eyeing international markets. Their leaders have recognised that global demand offers greater potential than remaining within local boundaries.

Maya points to companies like Paystack, whose early strategic focus on infrastructure laid the groundwork for international success and made them attractive for international acquisition. “Their initial 18 months were dedicated to building a strong local foundation, achieving a 95% success rate in local payment processing before expanding abroad.”

“Paystack’s global ambitions and execution made them attractive for international acquisition while maintaining strong local market leadership,” she adds.

Several African founders have followed a similar blueprint, including Andela’s co-founder Iyin Aboyeji, whose developer training platform began in Nigeria before becoming a talent hub for global companies like Microsoft and Google.

Aboyeji’s experience echoes the evolving landscape: while local success is critical, it often serves as a stepping stone for greater reach. The real potential, he and other African founders have found, lies in building products with universal appeal rather than limiting scope to the complexities of African markets.

But there are barriers to going global

Despite the compelling success stories, building for the world isn’t without its unique obstacles. Customer acquisition costs in developed markets can be three to five times higher than those in African markets, Maya observes.

Additionally, African founders face challenges around establishing international networks and securing working capital for global expansion. “Most African founders are still building their international networks,” says Maya, adding that these founders often lack access to the resources that Silicon Valley counterparts may take for granted.

Furthermore, Victor Asemota, a notable Nigerian tech veteran and thought leader, believes that “building for Africa is hard” due to the continent’s diverse languages, cultural divides, and underdeveloped, fractured markets. Asemota’s advice? “Don’t build for Africa, think global.”

He argues in a somewhat prescient 2018 musing that founders should prioritise creating products that transcend geographic and cultural boundaries. African diversity, while often a celebrated strength, can complicate scaling efforts, Asemota opines. He figures building for global markets can help African startups avoid being restricted by regional constraints and appeal to a much broader audience.

“I believe that the African opportunity is not in Africa. It is more about what Africa can do for the world and not what the world or Africans can sell to Africa,” he writes.

Building the foundations locally—And why that matters

Maya and other investors urge a balanced approach: develop a strong base locally but plan and prepare for global expansion from day one. Companies like Flutterwave and Chipper Cash embody this “glocal” strategy.

Both brands first gained traction by solving specific local payment problems, then scaled internationally by applying their operational insights to global markets. Flutterwave, for instance, facilitated USD 16 B in transactions by 2022 and now serves markets beyond Africa, proving that African companies can thrive both at home and abroad.

Maya emphasises the importance of using Africa as a proving ground, a place to refine solutions in challenging environments. “Africa’s digital economy is projected to reach USD 712 B by 2050,” she says, “but founders don’t need to choose between local and global markets.” Rather, a foundation of operational excellence locally can be a launchpad for global competitiveness.

Local focus meets global ambition

Balancing global aspirations with local relevance can be tricky. African startups, especially those in fintech and asset finance, often encounter different regulations, consumer behaviours, and infrastructure in global markets.

This is often a drag but could also be advantageous sometimes. Asaak, an asset financing startup from Uganda, expanded into Mexico last year, where they found that credit demand and lending interest rates paralleled Africa’s needs, but local regulations and infrastructure were more conducive to scaling their business.

On its part, Nigerian-born Moove, a vehicle financing startup for ride-hailing, has found greener pastures in Asia and the UK and recently entered the US and Mexico, having soared but also suffered on the homefront where it faced economic and operational difficulties.

According to Maya, a winning approach lies in maintaining a high standard of core functionality that addresses local needs while adding global layers. This “layered” strategy, she notes, involves “using local success as a proof of concept for global expansion” and adapting business models to meet diverse market demands.

Andela’s initial model is another case in point: by training African software developers for global clients, they not only addressed local employment needs but also eventually met worldwide demand for highly skilled professionals, as Andela ultimately morphed into a global marketplace for tech talent hiring.

From local Champions to global players: The playbook

As the founder of Nigeria’s first female-owned tech fund and one of the youngest to launch a venture capital (VC) fund in Sub-Saharan Africa, Maya says her mission centres on guiding African founders to balance local impact with global expansion.

Her work spans multiple initiatives: Ingressive for Good, a nonprofit focused on cultivating technical talent for African startups, and Ingressive Advisory, a firm that has helped over 50 international companies enter African markets. This approach has attracted international capital, with 80% of Ingressive Capital’s limited partners managing their own later-stage funds.

She also tells WT that the VC fund has achieved a Distributed to Paid-In (DPI) ratio greater than 1x, implying the fund has returned more money to investors than they originally invested.

“Our approach combines deep local understanding with a global perspective,” Maya explains.

“We’ve created thousands of jobs across Africa, achieved notable exits, and maintained strong portfolio performance. But what really matters is helping founders navigate both local realities and global opportunities.”

This balance of strong local roots and global bridges, she notes, allows Ingressive to connect authentically with young founders, fostering innovative solutions that resonate locally and globally.

Maya recommends that to set themselves up for global success, African startups need a careful mix of adaptability, resilience, and resourcefulness. Maya identifies three critical areas:

• World-Class Execution: Companies must focus on delivering exceptional product quality, customer experience, and robust operational systems.
• Strategic Market Entry: Maya advises founders to prioritise partnerships with local experts when entering new markets. “Founders who understand customer needs and establish local partnerships have a competitive advantage,” she explains.
• Clear Unit Economics and Transparency: International investors are increasingly interested in African startups but require operational transparency and strong unit economics to build trust. “The most successful capital raises we’ve seen share a common approach,” Maya says, “founders invest significant time in building relationships with investors before actually raising capital.”

Building for the World

As African startups continue to grow in ambition and capability, their journey is inspiring a new generation of founders who see the value in building globally. In Maya’s words, “It’s not a matter of choosing between local and global; it’s about building solutions that can thrive in both.”

Her advice rings especially true in light of recent successes which demonstrate how an “Africa-first” mindset is no longer a constraint but an advantage when combined with global thinking.

While building for the world may present unique hurdles, African tech’s impact is expanding, taking homegrown ideas to new markets and showing that solutions created on the continent can meet demands well beyond its borders.

Nigeria’s prominent fintech challenger, Moniepoint, is Africa’s newest unicorn—only the eighth ever—following a USD 110 M Series C funding round led by Development Partners International (DPI), a private equity player. 

The funding, backed by investors such as Google and Verod Capital, brings Moniepoint’s valuation above USD 1 B, cementing its place among Africa’s elite tech companies; a highlight amid a funding lull in African tech.

With its sights set on continental expansion, the company’s first target outside Nigeria is shaping up to be Kenya, insiders say.

“The proceeds from this raise will speed up our efforts to drive financial inclusion and support Africa’s entrepreneurial potential,” Co-Founder/CEO Tosin Eniolorunda said.

Yet, despite its confidence in penetrating new markets, Moniepoint faces a daunting challenge—Kenya’s notoriously tough fintech landscape.

Founded in 2015 by Eniolorunda and Felix Ike, Moniepoint (formerly TeamApt) has built one of Nigeria’s largest business payments and banking platforms, processing over 800 million transactions monthly, with a total transaction value surpassing USD 17 B while operating profitably, as the company’s leadership revealed.

This latest investment round, which also includes support from existing investors like Lightrock, is geared toward scaling Moniepoint’s services across Africa. As Adefolarin Ogunsanya, Partner at DPI, noted, “Moniepoint is well positioned to continue its impressive growth trajectory while driving financial inclusion for underserved businesses and individuals across Africa.” The immediate target? Kenya.

However, Kenya’s fintech environment has a reputation for its challenging nature, primarily due to the market dominance of M-Pesa, Safaricom’s mobile money giant. M-Pesa controls about 97% of Kenya’s mobile money wallets, leaving little room for competitors to make significant inroads into the consumer market.

As Nigerian market intelligence firm Stears highlighted in a recent report, Safaricom’s grip on the market can act as a “significant deterrent to new entrants and innovation.” Consequently, fintechs attempting to compete with M-Pesa directly often struggle to secure footing, limiting their consumer reach.

Data spotlights this challenge. Over the last five years, Kenya has consistently lagged behind Nigeria, Egypt, and South Africa in terms of fintech investment, capturing just 8% of the continent’s total compared to Nigeria’s 39%. Investors have shown caution due to M-Pesa’s entrenched position, making Kenya’s fintech ecosystem an uphill battle for new entrants.

Moniepoint’s ambitions in Kenya hinge on its recent approval to acquire Kopo Kopo, a local fintech that facilitates payments and credit to small businesses. This acquisition aligns with Moniepoint’s core strategy, which focuses on providing comprehensive business banking solutions.

By sidestepping direct competition with M-Pesa’s consumer dominance, Moniepoint hopes to cater to underserved MSMEs in Kenya—a market that, while promising, remains challenging. According to the Communications Authority of Kenya, about 49% of local MSMEs face barriers to accessing finance, a higher rate than the African average of 40%.

Ngozi Dozie, co-founder of Nigerian fintech Carbon, which also entered Kenya in late 2019 but since pulled out, has echoed concerns about the market’s viability.

Reflecting on his company’s experience in the closing paragraphs of a June piece, Dozie said, “A few years ago, one of my competitors took me aside and said, “I hear Carbon is expanding to Kenya – don’t do it”. They were already there, and so I am sure part of me was like, so you don’t want me to come and eat goat with you,” he writes.

“Needless to say, we did expand to Kenya and whilst the details are for another article, I wish we had heeded their advice.”

For many startups, compliance issues and steep competition from M-Pesa make survival difficult. The Communications Authority of Kenya reported that nearly 80% of Kenyan startups fold within their first year, highlighting the market’s high-risk nature.

Nonetheless, Moniepoint is pressing forward, aiming to apply its “all-in-one” business model, which includes digital payments, FX, credit, and business management tools.

The company boasts dominance as Nigeria’s largest merchant acquirer and processes a majority of the country’s Point of Sale (POS) transactions. It intends to replicate this model in Kenya, focusing on merchants and enterprises rather than individual consumers.

With the Kopo Kopo deal, Moniepoint is taking a cautious approach by acquiring local expertise and infrastructure rather than attempting to disrupt the market alone.

For now, Moniepoint’s success in Kenya will depend on its ability to navigate a tightly controlled market, balance competition, and forge a path through strategic partnerships.

If Moniepoint can leverage its strength in business banking to serve Kenyan MSMEs where gaps persist, it may find a sustainable entry point. But for fintechs entering Kenya, the dominance of M-Pesa remains a hard reality, showing the complexities of scaling across Africa. 

South Africa’s leading on-demand grocery delivery service, Checkers Sixty60, is facing increased scrutiny amid allegations over labour practices, uncertain employment structures, and a high reliance on foreign workers. This comes as parent company Shoprite secures control of the logistics backbone, Pingo Delivery, to further scale the platform.

Checkers Sixty60, launched in 2019, quickly became the frontrunner in South Africa’s on-demand delivery market. Known for its speed and convenience, the app’s success has bolstered Checkers’ competitive position against high-end grocer Woolworths, and many middle-class South Africans now prefer using Sixty60 over traditional in-store shopping.

Despite Sixty60’s popularity, recent reports suggest that the rapid rise has come at a cost to its delivery riders. Pingo, a logistics provider co-owned by South Africa’s top supermarket chain Shoprite and responsible for managing Sixty60’s workforce, is under fire for allegedly exploiting riders by treating them as “independent contractors” rather than employees.

As independent contractors, riders lack essential protections under South African labour laws, receiving no benefits and having limited job security. According to Democratic Alliance MP Michael Bagraim, this classification is a mischaracterisation of their role, and he believes “South Africa’s courts would likely rule that the Checkers Sixty60 riders were Shoprite employees” based on their working hours and limited ability to work elsewhere.

Oversupply of Riders and Wage Concerns

Interviews with current and former riders reveal further concerns over Pingo’s hiring practices and remuneration structure. According to one former rider who spoke to MyBroadband, rider often face unpredictable hiring and firing cycles, with Pingo regularly recruiting more riders than needed for demand.

This oversupply has reportedly resulted in some riders being “randomly blocked from using the app,” restricting their earning opportunities. A noted that such cycles led to mass dismissals twice a year, affecting up to 15 riders at a time, “leaving them without an income.”

Additionally, Pingo has been criticised for inconsistent wage policies. Riders initially received a minimum daily fee of ZAR 350.00 (~USD 20.00) regardless of the number of deliveries completed, but this minimum was removed, sparking multiple strikes among riderss.

“Without a minimum fee, this total would be much lower,” explained one rider, adding that riders rely on the guarantee due to their expenses, which include covering their own fuel and bike rental costs. One person estimated their monthly take-home pay at ZAR 2.8 K (~USD 158) after these expenses, highlighting the tight margins many face.

Reliance on Foreign Workers

Another pressing issue is Pingo’s alleged preference for hiring foreign nationals. This hiring practice has sparked concerns about exploitation, with suggestions that foreign workers may be more vulnerable to unfavourable working conditions.

This workforce makeup also raises safety concerns. Hein Jonker, founder of the Motorcycle Safety Institute of South Africa, noted that some foreign workers reportedly lack valid motorcycle licenses or training, increasing risks on the road. “Their lack of training and the pressure of the need for quick deliveries put their and other road users’ lives at risk,” Jonker said.

Shoprite’s Acquisition and Future Plans for Pingo

Shoprite recently received approval from South Africa’s Competition Commission to acquire full ownership of Pingo, a strategic move Shoprite CEO Pieter Engelbrecht said would help the retailer control its logistics and meet growing demand more efficiently. “We need to have the entire value chain delivered at speed with continuous enhancements,” Engelbrecht told News24, adding that relying on third-party logistics posed challenges for Shoprite’s rapid growth.

With this acquisition, Shoprite is not only expanding its Sixty60 brand but reportedly exploring ways to serve spaza shop owners (small neighbourhood stores) through its wholesale arm, Cash & Carry. This potential pivot could broaden Pingo’s reach and increase its operational complexity as it scales.

Legal and Ethical Implications

The debate over driver classification and treatment has reignited discussions on employment law, with Bagraim suggesting that Shoprite could struggle to justify its current employment model if challenged. According to Bagraim, “Unless the drivers work for a couple of companies at different times, it cannot be said that they are independent contractors.”

For its part, Shoprite and Pingo have not commented on these allegations directly but have stated that rider app blocks are tied to “service contract violations.” However, multiple reports of sudden dismissals, app blocks, and bike confiscations paint a troubling picture. A MyBroadband investigation found that riders have experienced blocked access and removal of their bikes without warning, leaving some without recourse to understand or contest their dismissal.

As Checkers Sixty60 continues to grow, Shoprite will likely face increasing pressure to address these allegations and consider adjustments to its employment practices. With rising public scrutiny and potential legal challenges, Sixty60’s approach to rider welfare could become a defining issue for South Africa’s largest grocery retailer in its bid to remain a leader in the on-demand delivery market.

CB Insights recently unveiled its 2024 Fintech 100 list, showcasing the world’s 100 most promising private Fintech startups.

Now in its seventh year, the Fintech 100 cohort spans 23 countries across six continents and highlights companies that are pushing the boundaries of financial technology. Among them are eight African startups, a record-breaking presence that highlights Africa’s rising influence in global fintech.

These African companies—Cleva, Dopay, Moniepoint, NALA, Peach Payments, Stitch, Telda, and WorkPay—are addressing vital financial needs, from payroll solutions to cross-border payments, and are reshaping financial services across the continent.

The Fintech 100’s international scope is notable, with over half of the 100 companies based outside the United States. While the United States leads with 48 startups, the United Kingdom follows with 12 companies on the list, meanwhile, Canada and Singapore each contribute six. But the focus on emerging economies is particularly evident: 17 companies, including the eight African startups, are from countries like Brazil, India, Kenya, and South Africa. This marks a shift towards financial solutions designed to enhance accessibility and meet the specific needs of underserved populations.

Each of Africa’s featured companies brings a unique service to the continent:

Nigerian-born Cleva provides USD banking solutions for individuals, including non-U.S. residents. Now headquartered in Delaware, Cleva allows users to open U.S.-based dollar accounts, make USD transactions, and save in USD, addressing the demand for international banking options among Africa’s globally active population.

Dopay from Egypt focuses on cashless payroll solutions through its virtual banking platform, which enables businesses to pay employees via prepaid cards, bypassing the need for traditional banking. This service is essential in cash-reliant economies, providing employees with secure, accessible digital accounts.

Also originating from Nigeria, Moniepoint, previously known as TeamApt, provides a robust financial platform designed to equip African businesses with the technological support needed to manage and expand their operations. It combines banking, payment services, credit, and business management tools to support their growth.

NALA, based in Nairobi, Kenya, is transforming cross-border payments. It offers a mobile app that simplifies money transfers, making it easy and affordable for Africans to send funds to and from the continent. With transparent fees and competitive rates, NALA aims to fill a critical gap for families who rely on remittances from abroad.

South Africa’s Peach Payments has gained traction as a leading online payment processor for e-commerce businesses. Its platform allows secure payment processing and provides fraud protection tools, helping African businesses build consumer trust and handle subscriptions with ease.

Stitch, also from South Africa, is making strides in payment infrastructure by offering businesses a payment gateway that seamlessly integrates various payment options. Supporting industries like e-commerce and financial services, Stitch enables companies to manage and scale payments across African markets, making digital transactions smoother for consumers and businesses alike.

In Egypt, Telda simplifies peer-to-peer transactions with its mobile app and physical card. Founded in 2021, Telda allows users to make instant payments, online purchases, and cash withdrawals. By bringing these functions to a single platform, Telda seeks to meet the needs of Egypt’s young, digitally savvy population.

Finally, Nairobi-based WorkPay addresses the HR and payroll needs of African businesses by offering tools for time tracking, payroll, and payouts to both banks and mobile money accounts. For small and medium-sized enterprises, WorkPay’s platform helps reduce the administrative burden of payroll and compliance, empowering African businesses to focus on growth.

These eight African startups represent a new wave of fintech innovation with several leveraging AI-powered solutions.

Further look into the CB Insights report shows nearly half of the Fintech 100 companies are early-stage, primarily at seed or Series A funding rounds. Together, the cohort has raised $7.2 billion in disclosed equity funding across 370 deals, a signal of substantial investor confidence.

The 2024 Fintech 100 also reveals that this year’s winners include 13 wealth management companies, 11 in embedded finance, and 10 in insurance, with many leveraging AI for fraud prevention, credit scoring, and operational efficiency. CB Insights notes that 26 of the companies are in a “Deploying” stage, having moved from initial concept validation to commercial distribution.

Overall, the African startups on this list underscore a crucial shift. As fintech innovation spreads beyond traditional tech hubs, companies from emerging markets are now setting standards in financial accessibility and digital infrastructure. By tackling Africa’s specific financial challenges head-on, these startups are not only providing essential services to local markets but also capturing the attention of the global tech community.

CB Insights’ recognition of these eight African companies highlights the continent’s potential to lead in fintech innovation. As they develop solutions that prioritize inclusion, affordability, and accessibility, they are setting the stage for a more inclusive financial landscape.

After months of tension and scrutiny, Binance executive Tigran Gambaryan has left Nigeria following the dismissal of all charges against him by Nigerian authorities earlier this week.

Detained since February on charges of tax evasion and money laundering, Gambaryan’s release marks the end of a turbulent chapter for Binance’s Nigerian operations. Despite the lengthy detention of one of its top compliance officials, Binance remains keen on building its presence in the Nigerian market.

Binance CEO Richard Teng implied this in a statement on Thursday, expressing optimism about Nigeria’s potential for blockchain innovation. “With a young, tech-savvy population and a strong interest in digital finance, Nigeria is well-positioned to leverage blockchain technology to address economic and social challenges. We look forward to playing a constructive role in that effort,” Teng stated, signalling that Binance still sees a future in Nigeria despite the recent setbacks.

Nigeria ranks among the top countries for crypto adoption globally, with crypto transactions growing 9% year-over-year to USD 56.7 B between July 2022 and June 2023, according to a report by blockchain research firm Chainalysis. Crypto is gaining ground in Nigeria as Africa’s most populous nation grapples with a weakening currency and soaring inflation.

The Detention Saga

The troubles began in February when Gambaryan and Nadeem Anjarwalla, another Binance executive, arrived in Abuja to address issues raised by Nigerian regulators.

The Economic and Financial Crimes Commission (EFCC) detained the two executives over what it claimed were “suspicious flows” through Binance’s local operations. Shortly after, the EFCC charged the pair with tax evasion and alleged money laundering of over USD 35 M. Gambaryan’s detention continued even after Anjarwalla reportedly escaped to Kenya in March.

During his detention, Gambaryan’s health declined considerably, raising concerns among family, colleagues, and U.S. lawmakers. According to his lawyer, Gambaryan contracted pneumonia, malaria, and developed a herniated disc that reportedly required surgery. His family lamented that “the past eight months have been a living nightmare,” adding that his health issues had worsened significantly while in custody.

Teng had implied in May that Nigerian officials might have attempted to pressure the exchange’s representatives into paying a settlement to “make the issues go away.” Later that month, a representative for the Gambaryan family revealed he had been dealing with various health issues since his detention. By June, U.S. lawmakers and officials had intensified their appeals amid reports of Gambaryan’s deteriorating health while in Nigerian custody.

Despite repeated appeals for bail, Gambaryan was twice denied release. The EFCC argued that he was a flight risk and accused the defence of exaggerating his health issues. These arguments ultimately failed to hold up, as the EFCC dropped all charges against him on October 23, citing his deteriorating health and his peripheral role within Binance.

Legal and Regulatory Tensions with Binance

Although Gambaryan has left Nigeria, the EFCC’s scrutiny of Binance is far from over. The agency plans to pursue its separate case against the company for alleged money laundering, and the Nigerian Federal Inland Revenue Service has kept four tax-related charges open against the exchange, asserting that Binance had failed to register with local tax authorities. Binance has denied these allegations, while Nigerian authorities have remained committed to their ongoing investigation.

Binance’s initial response to these tensions was to suspend operations involving the Nigerian naira in March 2024. However, the company’s stance has softened since then. In his recent statement, Teng indicated that Binance is “committed to collaborating with global regulators to ensure compliance and transparency in the evolving digital asset space.” This aligns with Binance’s broader goal to maintain a presence in emerging markets, where cryptocurrency demand is high despite regulatory hurdles.

The U.S. Government’s Involvement

Gambaryan’s case also drew significant attention from U.S. lawmakers and former federal prosecutors, who advocated for his release. In June, representatives French Hill and Chrissy Houlahan visited Gambaryan in prison, expressing concern about his physical state and citing weight loss and other signs of physical strain. Gambaryan’s wife thanked the U.S. government for its intervention, noting that the family was “deeply grateful” for efforts that eventually led to his release.

This external pressure from the U.S. government may have contributed to Nigerian authorities reconsidering the charges. Sources indicated that both health concerns and the potential diplomatic fallout influenced the decision to drop charges.

What’s Next for Binance in Nigeria?

The question now is whether Binance can regain footing in the Nigerian market amid ongoing investigations. With tax charges still unresolved and a money laundering investigation underway, Binance’s long-term prospects in Nigeria are uncertain.

However, Teng’s recent comments suggest the exchange is not ready to exit. His remarks about Nigeria’s “young, tech-savvy population” signal Binance’s view that the market holds significant growth potential, especially as digital finance and blockchain technology gain traction in the region.

Binance’s continued interest in the Nigerian market is part of a broader strategy to expand its presence in Africa, where the appetite for digital assets and decentralised finance is growing. The exchange’s ability to collaborate with regulators and address concerns could ultimately determine its success in Nigeria and similar markets.

E-commerce has long promised convenience, accessibility, and the transformation of shopping habits across the globe. Yet, for many rural and underserved regions, the barriers to fully embracing online shopping have remained high. These challenges—particularly in Africa—include poor infrastructure, high transportation costs, and limited delivery networks.

However, e-commerce companies are now tapping into a solution that could change the game: pickup stations.

Jumia, often dubbed the “Amazon of Africa,” is tweaking its strategy in a significant way. After years of focusing on major cities, the e-commerce giant is going brick-and-mortar and targeting rural markets with pickup points, a move designed to reduce delivery costs and bring underserved populations into its fold. As Jumia faces rising competition (from rival e-tailers and social commerce) and economic pressures, this approach reflects its push to find new growth avenues and get closer to long-elusive profitability.

Pickup stations have become a crucial enabler for expanding e-commerce into rural and semi-urban areas, providing a practical solution to the last-mile delivery problem. Companies like Jumia are embracing this shift, embracing pickup stations to expand their reach while reducing delivery costs and enhancing accessibility.

Overcoming Infrastructure Gaps with Pickup Stations

In Africa’s rural markets, smaller e-commerce players like Copia Global found significant success using pickup points and agent-led models, though Copia ground to a halt earlier this year amid financial struggles. Other players, such as Kapu and Tusho, with USD 11 M raised between them in 2022, rely on similar models that involve local agents to serve hard-to-reach areas. Jumia is betting that its existing infrastructure and agent network will give it an edge in expanding these rural efforts across its remaining nine markets.

For e-commerce companies, reaching customers in rural areas has always posed a logistical challenge. The lack of well-maintained roads and delivery networks makes traditional door-to-door delivery inefficient and expensive. But pickup stations offer a smart workaround. These hubs allow customers to collect their orders from central locations, cutting down on the costly last-mile delivery process.

Jumia is doubling down on this strategy. Through its City Expansion initiative, the company has deployed pickup stations in remote areas, allowing it to reach more customers without the need for extensive delivery routes. This strategy has proven effective, especially in countries like Uganda, where Jumia says it has established 99 pickup stations across 25 cities. In rural regions like Gulu, Arua, and Jinja, the impact is already visible, with 24% of deliveries now happening in remote areas, and 15% in secondary cities.

Making E-commerce More Affordable

Traditionally, the high cost of delivery has been a major deterrent for rural shoppers, often making it prohibitively expensive for them to order products online. By consolidating deliveries to central points, pickup stations significantly cut transportation costs.

This model benefits both the company and the customer. Francis Dufay, CEO of Jumia, emphasised that pickup stations allow the company to pass on savings to consumers. “We can offer competitive delivery options without the need for complex last-mile logistics,” Dufay explained. Customers in rural and semi-urban areas can now access a wider range of goods at lower prices, making e-commerce not only accessible but also cost-effective.

In addition to affordability, pickup stations also open the door for promotions and discounts that would otherwise be unfeasible in regions with high delivery costs. For many rural consumers, this shift makes online shopping a viable alternative to traditional retail for the first time.

Boosting Local Economies and Building Trust

The benefits of pickup station model extend beyond cost savings and infrastructure improvements. By partnering with local businesses to serve as pickup locations, the service is helping to boost local economies. For example, Idrees Luqman Akorede, CEO of Elhay Services in Ogun State, Nigeria, transformed his shop into a Jumia pickup station. As a result, he saw a significant increase in foot traffic, boosting his business revenue.

Similarly, Adeniji Ademola Ayobami, CEO of Cart-zone Deliveries in Oyo State, earns a commission on every package picked up from his store. In addition to the financial benefits, Ayobami noted that these partnerships are changing the perception of online shopping in rural areas. Pickup stations offer a tangible, accessible link between the digital economy and customers who may have been wary of e-commerce due to concerns about delivery reliability.

In places like Modakeke, where internet connectivity has been a barrier to e-commerce adoption, pickup stations provide a secure and convenient solution. Customers can now engage with online shopping platforms without the fear of delayed or lost deliveries, thanks to the centralised nature of these hubs.

A Broader Push into Rural Markets

Jumia’s pivot towards rural and peri-urban markets is part of a larger strategy aimed at maximizing marginal gains in the quest for profitability. The company has struggled to achieve profitability since its 2019 IPO, facing stiff competition and rising operational costs. To address these challenges, Jumia has doubled down on reducing costs and expanding into less saturated markets.

Beyond Uganda, Jumia’s expansion into smaller towns and rural areas has extended to other African countries like Ivory Coast and Senegal, where the company is targeting high-growth regions through partnerships with international retailers like Leroy Merlin. During the pilot phase of this partnership, 40% of the Leroy Merlin products sold on Jumia’s platform in Francophone countries were purchased by buyers outside the capital cities, demonstrating strong demand in rural areas.

This strategy, however, isn’t without complications. Cases like Copia Global, which had gained traction focusing on unlocking e-commerce for rural consumers using a similar agent-led model before stuttering, are a cautionary tale. Still, Jumia’s broader footprint and pickup station network could provide it with an advantage in scaling this approach across multiple markets.

Trimming the Fat: Exiting Low-Growth Markets

As Jumia pushes further into rural markets, it is also streamlining its operations in less profitable regions. The company recently announced plans to exit South Africa and Tunisia by the end of 2024, following earlier pull-outs from Cameroon and Tanzania. These decisions are part of Jumia’s broader effort to cut costs and focus on markets with higher growth potential, such as Nigeria, Egypt, and Kenya.

South Africa, in particular, became an increasingly difficult market after Amazon launched its local operations in May 2024, adding pressure to local e-commerce players like Zando, Jumia’s fashion platform. Tunisia, on the other hand, struggled with low growth and challenging macroeconomic conditions, contributing just 2.7% of Jumia’s total orders in 2024. “The trajectory of these countries did not align with the strategy of the group,” Dufay remarked, signalling Jumia’s intent to focus its resources where the potential for profitability is higher.

Jumia’s shift towards pickup stations and rural markets represents a bold pivot in its quest for profitability. As it continues to refine this model and expand its footprint, Jumia hopes to turn these marginal gains into a sustainable path to profitability—one pickup station at a time.