This Week in African Tech 🌍

Hey everyone, Darius here with your Sunday roundup.

This week, there was a lot of big news about AI in Africa. Billionaire Strive Masiyiwa announced he will build a network of AI factories on the continent. In Nigeria, the government launched its own AI model called N-ATLAS that can understand local languages, and Senegal is creating a new national AI hub.

There was also other major news. The deal for French company Canal+ to buy MultiChoice was finalized, Paga launched a digital bank for Nigerians in the US, and M-KOPA passed the 3 million customer mark.

But before we get into the details…

Tech Roundup

• Nigeria has launched N-ATLAS, its first open-source, multilingual Large Language Model (LLM), which can process Yoruba, Hausa, Igbo, and Nigerian-accented English. The model is currently available on Hugging Face for developers and researchers to use for prototyping and small-scale applications. While N-ATLAS is not yet a consumer-facing app, it is intended to serve as a foundational tool for the ecosystem, enabling local developers to build sector-specific AI applications for fields like healthcare, agriculture, and education that are culturally and linguistically relevant.

• Paga Group has officially expanded into the US market with a new digital banking service tailored for the African diaspora, starting with Nigerians. In partnership with a US-regulated bank, the fintech now offers customers a fully regulated US-domiciled bank account that comes with physical and virtual Visa debit cards and integrates with platforms like Apple Pay and Google Pay.

• After a year of back-and-forth, French media giant Canal+ has finalized its acquisition of South Africa’s pay-TV leader, MultiChoice. The deal, which creates a global broadcasting powerhouse with over 40 million subscribers, marks the largest transaction in Canal+'s history. Following the takeover, the French company quickly moved to restructure MultiChoice's leadership, appointing Canal+ Africa CEO David Mignot as the new CEO, replacing Calvo Mawela.

• MNT-Halan, a leading fintech in Egypt and the MENA region, has launched Egypt's first secured digital lending solution for investors from a non-banking financial institution. The new feature allows customers to instantly access up to 80% of their investment fund value as credit via the Halan App, without having to liquidate their investments.

• Despite having an economy $56.6 billion smaller and a population a quarter the size of Nigeria's, Kenya consistently collects more taxes, boasting a tax-to-GDP ratio of around 15% compared to Nigeria's less than 10%. Kenya's success is driven by a diversified tax base and aggressive, tech-enabled enforcement, including leveraging mobile money platforms and using social media to audit wealthy individuals. Now, Nigeria is making a push to catch up, aiming to nearly double its tax-to-GDP ratio to 18% by 2027 by deploying new tax legislation, increasing the capital gains tax, and integrating its tax systems with banks and large businesses for real-time reporting.

• Traditional Pay-TV is facing a sharp decline in Kenya, with DStv and GOtv losing a combined 3.4 million customers in the year leading up to June 2025. DStv subscriptions plummeted from 1.2 million to just 188,824, while GOtv dropped from 2.8 million to 314,520. The massive loss, which accounts for most of the market's 77% contraction, is largely attributed to MultiChoice's repeated price hikes and the rise of more affordable entertainment options like Netflix and piracy.

• Deloitte has officially launched its CyberAcademy in Casablanca to bolster Morocco's digital security capabilities. The new training hub will offer certifications and hands-on programs designed to equip young engineers, industry leaders, and IT professionals with the latest cybersecurity skills. The initiative is aligned with Morocco's national digital transformation agenda and aims to foster a strong cybersecurity talent ecosystem to meet the growing demand in the region.

• M-KOPA has passed the 3 million active customer milestone for the first time, putting the company on track to reach 10 million users by the end of the decade. The company, which serves informal sector micro-entrepreneurs, has deployed over $2 billion in credit since 2011. Notably, M-KOPA has enabled 2.5 million first-time smartphone users since 2020, with 81% of women customers reporting they couldn't afford a smartphone without the platform.

• Senegal has sealed a strategic partnership with the Gates Foundation worth over $10 million to accelerate its national digital transformation agenda. The funding will support the deployment of a universal digital identity system for all citizens and the creation of an Artificial Intelligence (AI) hub focused on innovation in health and agriculture. This deal is intended to strengthen Senegal's position as a future digital innovation hub in Africa, ensuring that digital progress is inclusive and benefits every citizen.

• Stanbic IBTC’s fintech subsidiary, Zest, has seen a massive surge in its operations, growing its income fourteenfold to ₦874 million ($587,128) in the first half of 2025. Despite this rapid growth, the company has yet to reach profitability. While Zest significantly narrowed its loss after tax by 58.84% to ₦389 million ($261,319), rising staff and operating costs kept its expenses high. Zest is part of a wave of bank-owned fintechs competing with independent players, but it continues to lag behind peers like Access’s Hydrogen and GTCO’s HabariPay.

• Zimbabwean billionaire Strive Masiyiwa has unveiled plans to establish Africa’s first network of AI factories, which will be powered by NVIDIA GPUs and completed by the end of 2026. The initiative, announced at the Unstoppable Africa 2025 forum, aims to position Africa as a producer of AI solutions, rather than just a consumer, by providing the necessary infrastructure for local innovators to drive homegrown development and tackle the continent's most pressing challenges.

• Kenyan healthtech company Ilara Health is undergoing a restructuring that includes laying off an undisclosed number of employees. The company, which partners with over 3,000 primary healthcare clinics, stated the move is a direct response to "current market conditions and financing dynamics," including the reversal of funding commitments. Ilara Health will now focus on its cash-generative business lines to achieve profitability, maintaining that the restructuring will not affect the continuity of its essential healthcare services in Kenya.

Deal Roundup

• Global payments giant PayPal is committing $100 million through its venture arm, PayPal Ventures, to accelerate its expansion across the Middle East and Africa (MENA). The funds will be channeled into minority investments, potential acquisitions, and local hiring, particularly in compliance and engineering roles.

• Kenyan e-mobility startup Arc Ride has secured up to $10 million in debt financing from Paris-based sustainable investment manager Mirova. The funding is the first African EV investment for Mirova's Gigaton Fund and will be used to scale Arc Ride's battery-swapping network across Kenya. This will support the deployment of over 600 swapping cabinets and 25,000 batteries, enabling motorcycle taxi riders ("boda boda") to drastically cut fuel costs and carbon emissions.

• South African mobile payments company Street Wallet has acquired startup Digitip to expand digital payments and tipping services in the country. Digitip's solution allows independent service providers, such as street vendors and other tip-dependent workers, to receive digital gratuities. The acquisition will strengthen Street Wallet's presence, integrate Digitip's existing partnerships, and advance its mission to bring digital payments to South Africa's informal economy.

• Kenyan fintech Zanifu has secured new funding from Yango Ventures, the venture capital arm of the global tech group Yango, to accelerate its growth across Africa. The digital lending platform provides small retailers with quick access to working capital loans of up to $2,000. The investment validates Zanifu's model, which has already disbursed over $60 million in loans to more than 15,000 SMEs and recently achieved profitability.

• Egyptian e-health marketplace Duaya has acquired SaaS provider EXMGO in a six-figure deal to accelerate the digitization of the country's pharmacy sector. Rebranded as Duaya Go, the acquisition enhances Duaya's platform, which already connects over 500 medical suppliers with more than 12,000 pharmacies and clinics.

• Nigerian-founded startup Rulebase has raised a $2.1 million pre-seed round led by Bowery Capital, with participation from Y Combinator and others. Rulebase builds an AI "coworker" that automates regulatory-heavy back-office workflows for financial institutions, such as quality assurance and compliance reviews. Already deployed at major institutions, the company claims its software can cut compliance costs by up to 70%.

And that's a wrap!

That’s it for this week. See you on Wednesday 😃 

Cheers,

The Tech Safari Team

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