Reason for the Price Adjustment

In an email to its users, Starlink explained the rationale behind the price hike. The company stated: “To continue enhancing the Starlink network and provide reliable, high-quality service across Nigeria, we are adjusting our monthly subscription prices. These changes are part of our ongoing commitment to investing in the infrastructure needed to improve your experience with Starlink.”

New Pricing Structure

• The lowest subscription tier will increase from ₦38,000 to ₦75,000 per month.
• The mobile global roaming service will now cost a steep ₦717,000 monthly.

This marks the second attempt by Starlink to raise prices in Nigeria. The Nigerian Communications Commission (NCC) had previously rejected a proposed price increase in October, citing Starlink’s failure to secure the necessary regulatory approval.

Regulatory Context

For years, Nigerian telecom operators have been advocating for tariff increases but have faced significant hurdles in obtaining approval from the NCC. However, the regulatory body is expected to approve tariff adjustments in the first quarter of 2025. Starlink’s recent communication suggests that the company is positioning itself to align with these anticipated regulatory changes.

Impact on the Nigerian Internet Market

The increase in subscription rates is expected to have wide-reaching implications:

1. Consumers: Higher costs may strain household budgets, particularly for users in underserved areas relying on Starlink for internet access.
2. Competition: The adjustments could reshape the competitive landscape, influencing pricing strategies among satellite and telecom providers.
3. Market Evolution: As Nigeria’s internet market evolves, these changes could signal a broader shift in the cost of connectivity.

Conclusion

Starlink’s decision to adjust its pricing reflects its commitment to network enhancement and infrastructure investment. However, the price hike, coupled with pending regulatory approvals, underscores the complexities of operating in Nigeria’s dynamic telecom market. Consumers and industry stakeholders alike will closely monitor how these developments unfold in 2025.

The post Starlink Raises Subscription Fee to ₦75,000 as NCC Reviews Tariff Policies appeared first on Venture Deals Africa.

Equity Investment Welcomes New Shareholders

The $90 million equity investment marks a significant milestone for Cassava Technologies, as it attracts new shareholders who share the company’s vision for advancing Africa’s digital future. These new investors join an already impressive roster, which includes Econet Group, British International Investment, Public Investment Corporation, Royal Bafokeng Holdings, Gateway Partners, and the African Export-Import Bank (Afreximbank). This strategic injection of equity capital underscores the growing confidence in Cassava’s integrated digital solutions platform.

Liquid Intelligent Technologies Secures $220 Million Debt Refinancing

In a parallel development, Liquid Intelligent Technologies, a key subsidiary of Cassava Technologies, has successfully closed a $220 million equivalent ZAR debt refinancing. This refinancing initiative was made possible through partnerships with prominent financial institutions, including Standard Bank Group, Rand Merchant Bank (RMB), Nedbank, and the International Finance Corporation (IFC).

The funds will enable Liquid Intelligent Technologies to enhance its offerings in broadband connectivity, data center co-location, and cloud services while reinforcing its position as a market leader in digital infrastructure solutions across Africa.

Driving an Integrated Digital Solutions Platform

Hardy Pemhiwa, Group CEO and President of Cassava Technologies, emphasized the importance of the funding round, stating: “The $310 million financing, combined with our strategic reorganization, is part of our repositioning into an integrated digital solutions platform. We are focused on delivering broadband connectivity, co-location (data centers), cloud, cybersecurity, AI computing, and fintech services in our chosen markets.”

This strategic direction aligns with Cassava’s mission to bridge the digital divide and empower African enterprises and communities with cutting-edge technologies.

A Pioneering ICT Platform for Africa

Founded in 2021 as a rebrand and restructuring of various digital businesses under Strive Masiyiwa’s Econet Group, Cassava Technologies has rapidly established itself as a cornerstone of Africa’s digital economy. Operating in over 30 countries, the company provides a wide range of services, including broadband connectivity, data center co-location, cloud solutions, cybersecurity, and payment systems.

By integrating these offerings, Cassava Technologies is not only addressing the continent’s critical infrastructure gaps but also creating opportunities for innovation, economic growth, and social development.

A Vision for Africa’s Digital Future

With its latest funding milestone, Cassava Technologies is poised to accelerate the deployment of transformative digital solutions across Africa. By leveraging partnerships with global investors and local financial institutions, the company is strengthening its capacity to deliver world-class ICT services to enterprise and hyperscale customers.

As Africa’s digital landscape continues to evolve, Cassava Technologies stands at the forefront, championing innovation and inclusion in the digital age.

The post Cassava Technologies Secures $310M to Power Africa’s Digital Future appeared first on Venture Deals Africa.

What is a Cofounder Vesting Schedule?

A vesting schedule determines how cofounders earn their ownership stakes over time. Instead of granting equity upfront, shares are earned incrementally, ensuring that cofounders remain committed to the business for a specified period. If a cofounder departs prematurely, they forfeit unvested shares, which can then be redistributed within the company or reserved for future use.

Vesting primarily serves two purposes:

• Encouraging commitment by tying equity to long-term involvement.
• Protecting the startup from losing substantial equity if a cofounder leaves early.

Key Components of Vesting Schedules

1. Duration: Most startups adopt a four-year vesting schedule, commonly used by investors and founders alike.
2. Cliff Period: This is a trial phase, usually lasting a year, during which no equity vests. At the end of the cliff, a lump sum (typically 25% of the total equity for a four-year schedule) vests. Afterward, shares vest incrementally, often monthly. Understanding Cofounder
3. Unvested Shares: These are shares not yet earned by a cofounder and are forfeited if they leave the company early. This mechanism safeguards equity for active team members or future hires.

How Does a Vesting Schedule Work?

Example: A startup allocates 4,800 shares to each cofounder, spread over four years with a one-year cliff.

• Cliff Period: No shares vest in the first year. At the end of year one, 1,200 shares (25%) vest.
• Monthly Vesting: From month 13 onward, 100 shares vest each month until all shares are vested by the end of year four.

If a cofounder exits the startup after two years, they retain only vested shares—2,400 in this case—while the remaining 2,400 are forfeited.

Types of Vesting Schedules

1. Time-Based Vesting:
   • Linear Vesting: Shares vest evenly over a specified period (e.g., monthly or annually).
   • Cliff Vesting: No shares vest until the cliff is reached, after which they begin vesting incrementally.
2. Performance-Based Vesting:
   • Shares vest when predefined milestones, such as revenue targets or product launches, are achieved. This aligns equity with measurable contributions.
3. Hybrid Vesting:
   • Combines time-based and performance-based criteria, requiring both tenure and achievements for shares to vest.

Why is a Vesting Schedule Important?

• Prevents Equity Dilution: Vesting ensures that only committed cofounders retain ownership, preserving equity for those driving the company’s growth.
• Investor Confidence: Investors view vesting as a safeguard, ensuring cofounders are incentivized to stay and contribute to the startup’s success.
• Resolves Disputes: By establishing clear rules upfront, vesting agreements help mitigate conflicts over equity if a cofounder departs.

Special Scenarios in Vesting

1. Accelerated Vesting:
   • In some cases, such as an acquisition, vesting may accelerate, allowing cofounders to earn all unvested shares immediately.
2. Good Leaver vs. Bad Leaver Clauses:
   • Good Leaver: Retains vested shares upon departure for reasons like illness or mutual agreement.
   • Bad Leaver: Forfeits all shares (vested and unvested) for misconduct or breach of contract. Understanding Cofounder

Best Practices for Cofounder Vesting

• Start Early: Establish a vesting agreement as soon as the startup is formed to avoid misunderstandings.
• Customize Agreements: Tailor vesting terms to the needs of your business and cofounders.
• Consult Legal Experts: Ensure your vesting agreement complies with local laws and protects all parties involved.

Cofounder vesting schedules are an essential tool for startups to manage equity, foster trust, and promote long-term collaboration. By implementing a clear and fair vesting plan, startups can create a foundation for sustainable growth and innovation.

For more detailed insights, visit sources like Y Combinator and Startup Savant.

Author

Ejiga Victor

The post Understanding Cofounder Vesting Schedules: How They Work appeared first on Venture Deals Africa.

The post Apple Pledges $1 Billion to Overcome iPhone 16 Ban in Indonesia appeared first on Venture Deals Africa.

Supporting Medium-Sized Enterprises for Economic Growth

SIFEM’s investment will serve as an anchor in the fund, which is managed by responsAbility Investments. The initiative is tailored to bolster medium-sized enterprises, providing them with the necessary financial support to enhance economic resilience, foster job creation, and promote sustainable development across the continent.

Strategic Partners Strengthen the Fund’s Foundation

The first close of the fund attracted contributions from several key strategic partners. Notable among them are the International Finance Corporation and British International Investment, both of which joined SIFEM as anchor investors. Standard Bank of South Africa also participated, serving as a credit provider and further reinforcing the fund’s financial foundation.

A Vision for Transformative Investment

Anthony Mwangi Njoroge, Principal and Co-Head of Africa Fund of Funds at responsAbility Investments, emphasized the transformative potential of this initiative:

“This underscores SIFEM’s strong commitment to promoting sustainable development in Africa. By providing essential capital to medium-sized enterprises, we contribute to strengthening economic resilience, creating quality jobs, and supporting businesses that advance both social progress and environmental sustainability.”

Advancing Sustainable Development in Africa

The collaboration between SIFEM and responsAbility demonstrates a shared vision of fostering impactful investments across Africa’s emerging markets. By focusing on businesses with high-growth potential, the partnership aims to drive significant economic and social progress while prioritizing sustainability. This commitment underscores the vital role of private credit in shaping Africa’s future, ensuring long-term benefits for businesses, communities, and the broader economy.

Source: Inclusifund

The post SIFEM Invests $15M in Africa’s Thriving Credit Market with Ninety One’s Opportunities Fund 3 appeared first on Venture Deals Africa.

Holcim’s Strategic Shift: A History of Divestments

This move is the latest in Holcim’s global trend of divestments aimed at realigning its operations.

• In 2021, Holcim sold its 75% stake in Lafarge Zambia to Huaxin Cement for $100 million.
• The company also divested operations in Indian Ocean markets like Madagascar, Reunion, and Seychelles.

These steps are part of Holcim’s broader strategy to consolidate operations in core markets, prioritize higher-margin products, and champion innovative solutions in sustainable construction.

Nigeria’s Cement Market: A Growing Opportunity

Despite Holcim’s exit, Nigeria’s cement market remains a lucrative space.

• Lafarge Africa, with a current market capitalization of ₦934 billion (approximately $556 million), is set to see its valuation nearly double under the terms of the deal.
• Analysts are closely watching to see if Huaxin Cement will retain Lafarge Africa’s listing on the Nigerian Exchange (NGX) or delist the company after acquisition.

Huaxin Cement’s Ambitious African Expansion

For Huaxin Cement, this acquisition marks its first entry into Nigeria, a country with a burgeoning demand for infrastructure and housing.

• Founded in 1907, Huaxin is one of China’s top 10 cement manufacturers, with a market capitalization of $2.18 billion.
• The company has already established a presence in Africa, with acquisitions in Zambia, Malawi, and South Africa.

Huaxin’s financial strength underscores its readiness for expansion:

• As of September 2024, Huaxin reported revenue of 24.7 billion Chinese yuan ($3.4 billion) and a net income of 1.14 billion yuan ($157 million).
  These numbers highlight the company’s capacity to invest in Nigeria’s competitive cement industry and reshape its operational landscape.

Holcim’s Vision: Sustainability and Innovation

While exiting Nigeria, Holcim continues its focus on innovation and sustainability.

• The company recently acquired a stake in Sublime Systems, a U.S. startup specializing in low-carbon cement.
• Holcim is also preparing to spin off its North American business, with a U.S. stock market listing planned for the first half of 2025.

These efforts reflect Holcim’s commitment to advancing its environmental credentials and reinforcing its presence in markets better aligned with its long-term goals.

The Bigger Picture: Shifting African Cement Dynamics

This deal reflects broader trends in the African cement industry, as Chinese firms increasingly expand their footprint through strategic acquisitions.

• Huaxin Cement’s entry into Nigeria could intensify competition in a market currently dominated by Dangote Cement and BUA Cement.
• The move is expected to drive innovation and operational efficiency, potentially benefiting Nigeria’s construction and infrastructure sectors.

A Transformative Moment for Nigeria’s Cement Industry

The $1 billion Holcim-Huaxin deal represents a turning point for Nigeria’s cement market.

• For Huaxin Cement, the acquisition signals a bold commitment to expanding its global reach.
• For Nigeria, this entry could herald a new era of competition, investment, and growth, transforming Lafarge Africa’s operations and elevating industry standards.

As the transaction progresses, all eyes will be on Nigeria’s cement sector, which stands at the crossroads of local dominance and global integration.

Source: Inclusifund

Editor

Ejiga Victor

The post Holcim Exits Nigeria with $1 Billion Deal: Sells 84% Lafarge Africa Stake to Huaxin Cement appeared first on Venture Deals Africa.

Impressive Growth Amid Economic Challenges

Headquartered in London, M-KOPA concluded 2023 with 4 million customers and $248 million in ARR. Despite currency devaluations and inflationary pressures, the fintech has thrived, achieving profitability in Kenya, Uganda, Nigeria, and Ghana. Its South African operations, launched a year ago, now lead growth, driven by strong consumer demand.

Scaling Impact Through Productive Assets

M-KOPA provides smartphones and other productive assets through a daily installment model spread over 12 months. Customers pay an initial fee of $25–$30, followed by daily payments, fostering credit histories while enhancing digital inclusion.

Addressing Challenges, Sustaining Confidence

Though default rates hover at 10%, M-KOPA maintains financial stability, emphasizing the productive value of financed phones in income generation. “Our loss rates have been stable over four years, reflecting our model’s robustness,” said Mayur Patel, M-KOPA’s fintech president.

Expanding Credit Access and Product Offerings

M-KOPA’s success lies in a vast agent network, smartphone assembly initiatives, and upselling strategies. Its Nairobi-based plant has produced 1.5 million X-Series smartphones. The fintech also finances electric bikes and offers microloans and health insurance, diversifying revenue streams.

With $1.5 billion in credit deployed and recent funding boosts, M-KOPA cements its position as one of Africa’s leading fintechs, merging innovative technology with robust offline distribution to empower everyday earners.

Source: Inclusifund

The post M-KOPA Eyes $400M Revenue Milestone, Cementing Leadership in Africa’s Pay-As-You-Go Fintech Revolution appeared first on Venture Deals Africa.