Technology
Stripe Acquires Nigeria’s Paystack for $200m
By Adedapo Adesanya
American financial service platform, Stripe, has acquired Paystack, one of Nigeria’s leading payment service providers.
Paystack provides a quick way to integrate payments services into an online or offline transaction by way of an application programming interface.
According to reports, the arrangement will see Paystack continue its operations independently with its large customer base which includes small businesses, larger corporates, fintechs, educational institutions, and online betting companies.
Although not all terms of the deal were made public, people privy with the discussions noted that it is worth over $200 million. This makes it the biggest startup acquisition out of Nigeria.
This will help expand the company’s footprint around the world and also set it up for a possible IPO in the future.
Speaking in an interview with Tech Crunch, Mr Patrick Collison, Stripe’s co-founder and CEO, said it was an enormous opportunity considering the future prospects of online commerce.
“In absolute numbers, Africa may be smaller right now than other regions, but online commerce will grow about 30 per cent every year. And even with wider global declines, online shoppers are growing twice as fast.
“Stripe thinks on a longer time horizon than others because we are an infrastructure company. We are thinking of what the world will look like in 2040-2050,” he said.
On the part of Paystack, the deal will give the company an ability to build out further in Nigeria and expand to other markets, disclosed its CEO, Mr Shola Akinlade, in an interview.
“Paystack was not for sale when Stripe approached us. For us, it’s about the mission. I’m driven by the mission to accelerate payments on the continent, and I am convinced that Stripe will help us get there faster. It is a very natural move,” Mr Akinlade stated.
Stripe has made a number of investments into startups building technology or businesses in areas, including backing investment in universal checkout service, Fast, and backing the Philippines-based payment platform, PayMongo.
Both companies have a history with Stripe leading an $8 million funding round for Paystack, with others participating including Visa and Tencent in 2018.
Mr Collison said that while acquiring Paystack after investing in it was a big move for the company, people also shouldn’t read too much into it in terms of Stripe’s bigger acquisition policy.
“When we invest in startups, we’re not trying to tie them up with complicated strategic investments. We try to understand the broader ecosystem, and keep our eyes pointed outwards and see where we can help.”
This may mean that it has no plans to acquire other regional companies or other operations simply to expand Stripe’s footprint but how well it operates as in the case of Paystack.
“A lot of companies have been, let’s say, heavily influenced by Stripe but with Paystack, clearly they’ve put a lot of original thinking into how to do things better. There are some details of Stripe that we consider mistakes, but we can see that Paystack gets it, it’s clear from the site and from the product sensibilities, and that has nothing to do with them being in Africa or African.”
Business Post gathered that Stripe and Paystack postponed the original announcement in part because of the current situation of demonstrations against police brutality in Nigeria.
Technology
Protecting Telecommunications Infrastructure: A National Imperative for Nigeria’s Digital Future
By Femi Adeniran
Imagine waking up one morning to find no internet, no mobile network, and no access to emergency services—all because a single fibre cable was carelessly severed during routine construction. This is not just a hypothetical scenario; it’s a reality that plays out daily across Nigeria, threatening the backbone of our digital economy and undermining national security.
The Federal Government’s recent designation of telecommunications assets as critical national infrastructure is a landmark decision that underscores the strategic importance of connectivity in today’s Nigeria. Telecommunications infrastructure is not just about phone calls or browsing the internet; it powers vital sectors like education, healthcare, banking, and public safety. In a world increasingly defined by digital transformation, the integrity of our telecom networks is as critical as our roads, bridges, and airports.
Yet, this critical infrastructure faces relentless threats. Fibre cuts—primarily caused by construction activities, vandalism, and a lack of coordination between stakeholders—have become an epidemic. On average, operators report multiple incidents daily, disrupting services to millions of Nigerians. Airtel Nigeria alone records a daily average of 43 fibre cuts and in the last six months, a total of 7742. These interruptions not only inconvenience consumers but also hinder businesses, delay government operations, and compromise public safety, particularly in emergencies.
The dry season, while ideal for construction and public works, has exacerbated the problem. With an increase in road and building projects, the frequency of fibre cuts has spiked alarmingly. This trend jeopardizes Nigeria’s broadband penetration goals and the collective efforts to harness technology for economic growth and social inclusion.
This is therefore a clarion call to all stakeholders—government agencies, security agencies, construction companies, telecom operators, the media and civil society—to collaborate urgently in safeguarding Nigeria’s telecommunications infrastructure. Beyond policy declaration, there is a need to urgently move to practical actionable steps some of which are:
- Stronger Enforcement and Coordination: Security Agencies and Regulatory bodies, must enforce stricter penalties for fibre damage while creating platforms for seamless coordination between construction companies and telecom operators.
- Regulating and Monitoring the Operations of Construction Companies: Construction companies to be regulated and monitored to ensure they accord similar status to telecom assets as they do to assets of other utility companies.
- Right-of-Way (RoW) Simplification: Streamlining the RoW process will ensure operators can bury cables securely and proactively plan for infrastructure protection in partnership with local governments.
- Adoption of Technology: Leveraging geospatial mapping and real-time monitoring tools will enable better identification of high-risk zones and faster response to incidents.
- Increased interest and Support from the Nigerian Media: Media stakeholders should support Public and private sector actors to drive must targeted campaigns and public enlightenment on the importance of telecom infrastructure and the dire consequences of fibre cuts.
Nigeria’s digital economy is a critical pillar of our national development strategy. To achieve the ambitious targets of the National Broadband Plan 2020-2025 and unlock the full potential of critical initiatives of the Federal Government like the 3 Million Technical Talents (3MTT) which aims to train and find job placements for 3 million Nigerian youths (local and international) by 2027, the “Project 774” of the Federal Government of aimed at digitizing all the 774 local government offices across the country for efficiency, and private sector-led developmental initiatives such as the Airtel-UNICEF Reimagine Education Project where Airtel Africa has committed $55m to connect children to digital learning across the 14 countries of its operations in Africa, with Nigeria taking the lead, our telecommunications networks must be protected with the same rigor we reserve for our power grids, water systems, and transportation networks.
The time to act is now. Together, we can ensure that Nigeria’s telecommunications infrastructure remains resilient, reliable, and ready to power the future. Failure to act will cost us more than just dropped calls—it will jeopardize our journey to a truly connected nation.
Femi Adeniran is the Director for Corporate Communications and CSR at Airtel Nigeria
Technology
3 Key Lessons from the Digital Transformation and Cybersecurity in Africa Conference
By Paolo Abamwa
Last month, The American Business Council, brought together cybersecurity experts, tech leaders, and industry professionals for a cybersecurity conference themed Digital Transformation and Cybersecurity in Africa: Enhancing Information Security Using AI.
The event focused on how Africa can leverage AI to strengthen its digital infrastructure and address the region’s growing cybersecurity challenges.
Yellow Card was fully engaged in the discussions and networking with stakeholders, highlighting their Payments API and how it can help companies seamlessly integrate stablecoin payments for cross-border transactions across Africa.
Cybersecurity, AI, and Africa’s Digital Future
A standout moment at the conference was the panel discussion on “Harmonizing African Cybersecurity Policies and its Impact on Digital Transformation.” George Kisaka, Information Security Governance, Risk and Compliance Specialist at Yellow Card joined to speak about the urgent need for African nations to strengthen their cybersecurity laws.
He stressed that to keep pace with global standards, African governments must build robust frameworks to protect their citizens and businesses from cyber threats. He argued that, just as Western countries have robust laws to protect their citizens, African governments must implement similarly strong cybersecurity laws to safeguard their citizens’ digital experiences. He also called for unity across the continent, stressing that harmonized cybersecurity policies are essential for protecting both businesses and individuals.
The conversation also delved into the role of AI in Africa’s digital transformation. While some attendees expressed concerns about AI replacing jobs, the speakers reassured the audience that AI should be viewed as a tool to enhance human potential, not replace it. They encouraged Africans to embrace AI, upskill, and see it as an opportunity for collaboration, rather than competition.
Cybercrime and Building Collaboration
Another key discussion surrounded the rise of internet fraud among young people in Nigeria. Several attendees raised concerns about how easily young Nigerians can fall into fraudulent activities due to limited job opportunities and lack of awareness.
The panel addressed these concerns, emphasizing the role of government and regulatory bodies in curbing internet fraud. They discussed the importance of education, regulation, and the implementation of strict penalties for cybercriminals, highlighting that a collective effort from both the public and private sectors is needed to protect the next generation.
The speakers also highlighted international conferences, such as the European Cybersecurity Forum (CYBERSEC) and the RSA Conference, as vital spaces for global cybersecurity discussions. These events allow leaders from all over the world to share best practices and solutions, something Africa must actively engage with as it builds its cybersecurity framework.
Africa’s Digital Evolution
As one of the fastest growing fintechs in Africa and the largest stablecoins on/off ramp on the continent, Yellow Card is committed to Africa’s digital transformation. Beyond offering secure and efficient financial solutions, the company is passionate about educating and connecting businesses across Africa to the tools they need to thrive in a digital-first economy. Their presence at the event showcased their belief in the power of collaboration, technology, and strong cybersecurity policies to drive sustainable growth across the continent.
Looking Ahead…
As Africa continues to embrace digital transformation, strengthening cybersecurity and integrating technologies like AI will be key to building a secure, inclusive digital economy.
Paolo Abamwa is the Senior Marketing Manager at Yellow Card.
Technology
Cassava Technologies Gets $310m for Robust Growth After Business Restructuring
By Dipo Olowookere
To support its business restructuring designed for robust growth, a notable technology company, Cassava Technologies, has secured funding worth $310 million.
Business Post reports that the company got $90 million in equity injection and a $220 million loan from Standard Bank of South Africa, Rand Merchant Bank, Nedbank of South Africa, and International Finance Corporation (IFC) to refinance its debt.
The aim of the company is to use the funds to strengthen its balance sheet, drive sustainable profitable growth, and cement its position as a global technology company of African heritage as it formalised its legal reorganization.
It was gathered that Cassava received a $90 million equity investment from the US International Development Finance Corporation (DFC), Finnish Fund for Industrial Cooperation (Finnfund), and Google LLC.
“We are excited to announce these significant achievements, which collectively strengthen our financial position and are a powerful testament to the vision of our founder and Group Chairman, Strive Masiyiwa, and the dedication and commitment of our teams across the Group,”
“The closing of this equity round, completion of our ZAR debt refinancing, and reorganization represent more than just capital – it’s a pivotal milestone that we expect to unlock immense value and catalyse the further expansion of our digital infrastructure and services to bridge the digital divide on the continent,” the chief executive of Cassava, Hardy Pemhiwa, said.
Cassava reorganised its business to create an integrated digital solutions platform, which provides Broadband Connectivity, Co-location (data centres), Cloud, Cybersecurity, Compute (AI), and Payment services across more than 30 markets in Africa, the Middle East, India, and Latin America.
With the addition of DFC, Google LLC, and Finnfund, Cassava’s impressive roster of shareholders includes Econet Group, British International Investment (BII), Public Investment Corporation (PIC), Royal Bafokeng Holdings (RBH), Africa-Export Import Bank (Afreximbank/FEDA), and Gateway Capital.
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