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Safaricom Integrates PayPal Withdrawals into M-PESA App to Target Kenya’s Freelance Economy

By
Ojukwu Emmanuel
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0

Safaricom has taken a major step to strengthen its position in Kenya’s booming digital economy by integrating PayPal withdrawals directly into the M-PESA super app.

This new feature is designed to support the growing number of Kenyan freelancers and remote workers who rely on PayPal to receive payments from international clients.

By eliminating the need for third-party platforms or external web portals, Safaricom is making cross-border transactions faster, more seamless, and accessible marking a strategic move to capture a larger share of the country’s expanding freelance and gig economy.

Previously, users had to rely on a separate web portal to transfer funds from PayPal to M-PESA, a process often criticized for being slow and cumbersome.

The newly added mini app eliminates those steps, offering a seamless, in-app experience without the need for browser redirects or multiple logins. This marks the first time Kenyan users can withdraw directly from PayPal via the M-PESA app.

This update comes amid strong growth in Safaricom’s mobile money segment. M-PESA’s revenue for the year ending March 2025 was KES 161.1 billion (approximately USD 1.25 billion). This represents a 15.2% year-on-year growth for Safaricom’s mobile money service.

The growth was driven by a 20.3% increase in chargeable transactions per user and a 10.5% rise in monthly active customers, now totaling 35.82 million. M-PESA now contributes 43.4% of Safaricom’s total service revenue. 

Average revenue per user rose by 9.4% to KES 395.22 ($3.06), while Safaricom’s agent network grew 14.1% to nearly 299,000, ensuring widespread access to cash services. The M-PESA app itself has seen strong traction, with 13.7 million downloads and 4.7 million active users. In 2024 alone, it processed transactions worth KES 2.3 trillion ($17.83 billion).

Notably, M-PESA wallets now support balances up to KES 500,000 ($3,875), with individual transaction and daily limits also capped at KES 250,000 ($1,938) and KES 500,000, respectively.

Launched in 2007 by Safaricom and Vodafone in Kenya, M-Pesa has transformed financial access across Africa, becoming the continent’s leading mobile money service. The name, derived from “M” for mobile and “Pesa” (Swahili for money), reflects its core mission: enabling fast, secure, and accessible financial transactions via mobile phones, particularly for the unbanked.

By empowering affordable access to useful financial services for more than 60 million customers and 5 million businesses, M-PESA has been credited with largely contributing to an up to 60% growth in formal financial inclusion in different countries, with up to 84% of the population achieving formal financial inclusion.

In March 2024, M-Pesa boasted over 66.2 million customers and processed 33 billion transactions annually across seven African countries: Kenya, Tanzania, Mozambique, Democratic Republic of Congo, Lesotho, Ghana, and Ethiopia.

With the latest integration of PayPal withdrawals directly into the M-PESA app, Safaricom is positioning itself to capture greater transaction volumes, strengthen user retention, and reinforce its dominance in Kenya’s mobile money market.

Also, the PayPal-M-Pesa integration has been poised to be a game-changer for Kenya’s digital economy, with M-Pesa’s 30 million users in Kenya (out of 66.2 million globally) processing $4 billion in transactions annually. The service has empowered freelancers, small businesses, and online shoppers by bridging local mobile money with global payment systems.

This pivotal update aligns with M-Pesa’s evolution into a super app, which has seen it incorporate services like Pochi la Biashara, bill payments, and government services, positioning it as a rival to platforms like Flutterwave’s Send App for cross-border transactions.

Also, the integration supports financial inclusion, particularly for Kenya’s unbanked and underbanked populations, by enabling access to global markets without traditional banking infrastructure.

Lafarge Africa Triples Pre-Tax Profit to N126.6bn in Q2 2025, Driven by Construction Sector Booms

By
Samuel Nwite
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0

Lafarge Africa Plc has posted a pre-tax profit of N126.6 billion in the second quarter of 2025, marking an astonishing 233.9% jump from the N37.9 billion recorded during the same period in 2024.

The result signals a sustained earnings recovery and strong demand in the cement and construction market, as the company continues to benefit from robust sector-wide growth.

The impressive performance lifted Lafarge’s half-year profit to N199.7 billion—more than four times the N46.6 billion reported in the first half of 2024. This came as the company’s Q2 revenue surged 70.2% year-on-year to N268.6 billion, pushing total revenue for the first half of 2025 to N516.9 billion, up 74.9% compared to the same period last year.

Cement sales remained the engine of growth, accounting for N261.6 billion in Q2 revenue. Lafarge also made N6.6 billion from aggregates and concrete, and N296.8 million from other products, highlighting the company’s diverse building solutions portfolio.

The booming results coincide with a broader rebound in Nigeria’s construction sector. According to the National Bureau of Statistics (NBS), the construction industry recorded a 6.21% growth rate in Q1 2025, buoyed by increased infrastructure investments and heightened activity in both private and public building projects. The construction sector was among the top contributors to Nigeria’s GDP growth, which the International Monetary Fund projects will hit 3.3% for 2025.

Despite higher production costs—up 26.4% to N95.8 billion—Lafarge managed to more than double its gross profit, which rose to N172.7 billion from N81.9 billion in Q2 2024. This was achieved even as the company faced significant operational expenses. Selling and distribution costs rose 45.8% to N20.9 billion, while administrative expenses more than doubled, climbing 109.8% to N31.1 billion. Yet, operating profit soared to N120.6 billion, up from N47.7 billion a year ago.

Finance income also saw a notable boost, rising by 212.4% to N7.3 billion. Most of it came from interest earned on short-term deposits and current accounts, totaling N5.3 billion, with foreign exchange gains contributing another N1.9 billion—reflecting prudent treasury management amid currency volatility.

On the balance sheet, Lafarge’s total assets climbed to N1.02 trillion, compared to N990.5 billion in the corresponding period last year. Retained earnings also grew 15.5% to N364.4 billion, underscoring the company’s strong earnings retention and financial stability.

As of market close on July 21, 2025, Lafarge Africa’s shares were trading at N116 per unit, reflecting a year-to-date gain of 66.3%—a strong return driven by investor confidence in its growth trajectory.

The company’s stellar showing comes as Nigeria pushes infrastructure development to counteract macroeconomic shocks. With cement as a central input in roads, bridges, housing, and industrial projects, Lafarge’s performance continues to track closely with the pace of construction spending.

Analysts say the firm is well-positioned to benefit from continued infrastructure outlays, especially as both federal and state governments ramp up capital projects amid efforts to stimulate job creation and economic growth. The federal government’s shift to cement use in road construction is expected to sustain the growth in the long term.

QFEX, 24/7 Exchange for Traditional Financial Markets, for Welcome to Tekedia Capital

By
Ndubuisi Ekekwe
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0

QFEX is building a 24/7 exchange for traditional financial markets: no brokers, no delays. Today, trillions of US dollars move through the global financial markets, but legacy systems still rule. Orders route through brokers, fees vary without transparency, and trading shuts down on nights and weekends.

Inspired by the innovation in crypto markets, studied why real-time, global, always-on trading is possible in crypto – but not in traditional finance. QFEX acted. So, with QFEX, it would be possible for the stock exchange to be open 24/7 to buy US equities – and later others.

Largely, QFEX is bringing a direct-to-market, seamless experience to trading US equities, commodities, and FX pairs with purely volume-based fees, using cutting-edge tools like Perpetual Futures to power a new kind of exchange.

QFEX raised a significant amount of capital in one of the most successful seed rounds in this game; the team will make that public later.

Tekedia Capital is proud to be an investor in this US company. To learn more about QFEX, go here qfex.com, for Tekedia Capital and how to join, go here capital.tekedia.com

Africa’s Venture Capital Firm 54 Collective Faces Liquidation Amid Mastercard Grant Mismanagement Scandal

By
Ojukwu Emmanuel
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0

54 Collective, a venture capital firm that aimed to revolutionize investment and scale ideas to early-stage ventures throughout Africa, is currently on the edge of collapse following allegations of mismanaging over $42 million from Mastercard.

What began as a nonprofit initiative to fund African startups has spiraled into a full-blown financial scandal involving unauthorized transfers, unapproved rebranding, and thousands of questionable accounting entries.

Initially established to catalyze startup growth in Africa, the firm is accused of rerouting $4.59 million to its for-profit affiliate, Founders Factory Africa, and spending nearly $700,000 on a rebrand all without Mastercard’s approval.

Recall that in August 2024, the firm announced its rebrand into 54 Collective from Founders Factory Africa, promising a bolder mission to support tech ventures across Africa through catalytic capital and tailored operational support via its Venture Success Platform. This new model offered startups between $100,000 and $250,000 in equity investments and $100,000 to $150,000 in non-dilutive funding.

However, trouble began when Mastercard Foundation started asking questions about the rebrand and fund usage. The company’s accounting books were suddenly flooded with over 2,000 “adjusting journal entries”, none of which were supported by audited financial statements. According to Condia, the incomplete documentation prompted the foundation to commission accounting audit firm Deloitte, in December 2024 for a forensic audit. What they found was alarming, gross widespread financial irregularities.

In a letter, Daniel Hailu, Executive Director for Impact, Research, and Learning at Mastercard Foundation, raised red flags about “potential for-profit activity being associated with the brand linked to charitable programs” and the apparent transfer of goodwill to non-charitable entities. The foundation also launched an internal investigation into AFV’s dealings.

By February 2025, over 40 employees at 54 Collective were hit with news of a company shutdown. This comes after Mastercard Foundation ended its partnership with the VC, as well as pulling its funding, causing a financial collapse that rippled through the venture studio, Gen F accelerator, and Entrepreneur Academy, all programs once powered by the now-defunct grant.

Court documents reviewed by TechCabal confirm that Mastercard’s decision was directly tied to 54 Collective’s rebranding in August 2024. Despite CEO Bongani Sithole’s denials of wrongdoing and claims that the agreement wasn’t terminated due to a breach, the damage was already done.

In a desperate move, the firm tried to undergo “business rescue,” asking the court for $1.2 million to cover staff salaries and $500,000 for office closures. But a South African High Court was unconvinced, calling the rescue plan “legally invalid” and pointing to a “blatant disregard for the law.”

The Court has since issued a provisional liquidation order and frozen over a dozen bank accounts held by 54 Collective at Nedbank, Standard Bank, and Investec — citing concerns of improper fund transfers. The final liquidation hearing is scheduled for August 11, but all signs point to a permanent shutdown.

Launched in 2018, 54 Collective had invested in more than 55 tech startups across the continent, including well-known names like Renda, WellaHealth, and Lipa Later. Its Venture Success Platform was once hailed as a game-changer, offering personalized venture support through a team of seasoned experts.

Now, with its reputation in shambles, and a $106.5 million grant under scrutiny, 54 Collective is becoming a cautionary tale in Africa’s venture capital landscape, a stark reminder that ambition without accountability can unravel even the most promising missions.

American Bankers Association Has Urged U.S. OCC To Delay Approving National Trust Bank Charters For Crypto Firms

By
Paul Ugbede Godwin
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0

US banking groups, led by the American Bankers Association and other trade associations, have urged the Office of the Comptroller of the Currency (OCC) to delay approving national trust bank charters for cryptocurrency firms like Circle, Ripple Labs, and Fidelity Digital Assets. They argue that these firms’ applications lack transparency and sufficient detail for public scrutiny, raising “significant policy and process concerns.”

The banks claim that granting such licenses would be a “fundamental departure” from traditional fiduciary activities of trust banks, potentially allowing crypto firms to offer services like payments with less regulation and lower capital requirements, which could destabilize the financial system. They also express concerns about volatility, inadequate investor protections, and compliance with anti-money laundering (AML) and know-your-customer (KYC) standards.

Crypto advocates, including firms like Circle and Paxos, counter that blockchain-based systems offer technological advantages like real-time auditing and secure recordkeeping, and seeking licenses reflects a commitment to regulation, not evasion. They argue that national charters would enable broader operations without state-by-state licensing, as incentivized by the GENIUS Act, which limits stablecoin issuers’ activities. Industry voices, like Caitlin Long of Custodia Bank, suggest this debate may lead to litigation, as traditional banks fear competition from crypto firms operating under lighter trust charter rules.

Meanwhile, recent regulatory shifts, such as the OCC’s March 2025 guidance allowing banks to engage in crypto activities without prior approval, indicate a more permissive environment, though banks remain cautious due to lingering regulatory and risk concerns. The lobbying by US banks against crypto firms acquiring bank licenses has significant implications for the financial industry, regulation, and innovation.

Blocking crypto firms from obtaining national trust bank charters could limit their ability to compete with traditional banks, slowing the adoption of blockchain-based technologies like real-time auditing and secure digital asset custody. This may delay innovation in financial services, such as faster, cheaper payment systems or decentralized finance (DeFi) solutions.

If crypto firms are denied national charters, they may need to navigate state-by-state licensing, increasing compliance costs and complexity. This could discourage smaller crypto firms from scaling, favoring larger players and potentially concentrating market power. Banks argue that crypto firms under lighter trust charter regulations could pose risks due to volatility and weaker AML/KYC compliance.

If licenses are granted without stringent oversight, it might lead to systemic vulnerabilities. Conversely, overregulation could push crypto activities to less-regulated offshore jurisdictions, increasing global financial risks. Restricting crypto firms’ access to charters may limit consumer access to regulated crypto services, pushing users toward unregulated platforms with fewer protections. However, if charters are granted, robust oversight will be crucial to ensure investor safeguards amid crypto’s volatility.

The debate could spark litigation, as seen with cases like Custodia Bank’s, potentially clarifying the legal framework for crypto banking but also prolonging uncertainty. It may also pressure lawmakers to refine legislation like the GENIUS Act, balancing innovation with regulatory rigor. Traditional banks fear losing market share to crypto firms offering competitive services with lower capital requirements.

If crypto firms gain charters, banks may accelerate their own crypto offerings, as permitted by recent OCC guidance, intensifying competition but also integration of crypto into mainstream finance. Denying charters could push crypto innovation to jurisdictions with more favorable regulations, weakening the US’s position as a financial technology leader. Conversely, a balanced approach could position the US as a hub for regulated crypto innovation.

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