👨🏿‍🚀 TechCabal Daily – “You’ve Been a Good Boy”: Unpacking the Story Behind the Praise

Wishing you a joyful Independence Day!

After a brief yet rewarding journey delivering your daily updates on Africa’s technology landscape, I will be stepping away from the newsletter team. It has been an honor to share these stories with you, and I look forward to continuing to learn from the insightful work of Yemi, Zia, and Emmanuel.

This is not farewell, though. Come October, you’ll find me at Moonshot, joining the TechCabal crew to host one of the continent’s premier tech events. I’m eager to hear thought leaders like Kate Kallot, Uwem Uwemakpan, and Alex Tsado discuss the implications of AI’s evolution for Africa’s future.

Catch you in two weeks!

—Ife

Nigeria and South Africa set to be removed from FATF Greylist next month

Both Nigeria and South Africa are on track to be delisted from the Financial Action Task Force’s (FATF) Greylist in October. These nations were flagged in 2023 due to insufficient measures against money laundering and terrorist financing. Following thorough on-site evaluations by FATF officials based in Paris, notable improvements have been recorded. Alongside Burkina Faso and Mozambique, Nigeria and South Africa are expected to be removed from the list on October 24.

To qualify for removal, these countries have had to address the gaps highlighted by FATF by reinforcing their Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) frameworks.

Reasons for the anticipated delisting: Both Nigeria and South Africa have made concerted efforts to meet FATF’s criteria. Nigeria introduced more rigorous regulations, issued compliance directives from its Central Bank, and conducted surprise audits. South Africa committed to fulfilling 22 specific action points, all of which were reportedly completed by June. These reforms have paved the way for a potential exit from the grey list.

Implications of leaving the grey list: Research from 2021 indicates that countries on the grey list often experience a steep decline in foreign investment. Being removed could ease transactional barriers and rebuild confidence in cross-border financial flows. This development signals to investors that these nations are improving their financial integrity. For instance, digital banks like Mercury, which previously restricted accounts from grey-listed countries, may now reconsider their policies towards African startups.

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Kenya intensifies tax enforcement on foreign tech giants like Uber and Airbnb

Taxation is becoming a focal point for African governments. Following Nigeria’s recent moves to tax remote workers, Kenya is now targeting major international technology companies.

Specifically: The Kenya Revenue Authority (KRA) is seeking authority to compel local banks and payment platforms to withhold and remit taxes on behalf of foreign tech firms that fail to comply with tax regulations. Proposed draft rules could levy a 3% tax on revenues generated by companies such as Netflix, Amazon, OpenAI, Airbnb, and Uber from Kenyan users.

How this system operates: For example, if Netflix earns $100,000 from Kenyan subscribers, KRA presumes $10,000 (10% of gross revenue) as taxable profit and applies a 30% tax rate, resulting in $3,000 owed. Instead of collecting directly from Netflix, KRA plans to instruct banks, card networks, and mobile money services like M-PESA to deduct the tax at the payment point. This means foreign companies must maintain local accounts. A company is considered to have a “significant economic presence” if its services are accessed via Kenyan IP addresses, paid with Kenyan financial instruments, or billed to Kenyan addresses.

Impact on consumers: This tax will likely increase subscription fees, ride costs, and accommodation prices as companies pass on the expense. For banks and mobile money providers, this introduces additional compliance challenges and potential legal risks as they balance the demands of foreign corporations and government authorities.

Paga Launches in the United States

Exciting update! Paga has expanded its digital banking services to the US, catering to Africa’s diaspora. Qualified users can now send money, pay bills, and manage accounts in both US Dollars and Naira, with secure, regulated, and borderless transactions. Discover more.

Thousands of Kenyan digital export jobs at risk as US trade agreement lapses

Approximately 7,000 technology sector jobs within Kenya’s export processing zones are endangered following the expiration of the African Growth and Opportunity Act (AGOA) on September 30. Without renewal, tariffs on Kenyan exports to the US could surge beyond 30%, ending 25 years of duty-free access for African goods and services in the American market.

Background: AGOA was established by the US government to stimulate economic growth in Africa by easing market access for African businesses. The goal was to boost employment and economic expansion by allowing African exporters to sell in the US without tax penalties.

Benefits for export processing zones: Tech companies such as Sama have been able to import servers without tariffs, offer AI data annotation services to US clients, and remain competitive against countries like India and the Philippines. The expiration of AGOA means immediate tariffs and VAT on imported hardware, eroding their cost advantage. For example, United Aryan, a garment manufacturer, has already laid off 1,000 employees, about 10% of its workforce.

Why this matters: Even minor cost increases can prompt clients to relocate to more affordable markets. Financial institutions are factoring tariff risks into lending decisions, making it harder for companies to sustain payrolls. This pressure threatens the availability of tech jobs in Kenya.

Looking ahead: The Trump administration supports a one-year extension, pending congressional approval. Kenya is also pursuing a bilateral trade agreement as a contingency. Without either, tariffs will take effect on October 1, jeopardizing tech employment alongside apparel sectors already downsizing amid uncertainty.

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Uber launches women-only ride option in South Africa

Uber has introduced a “Women Driver” feature in South Africa, enabling female passengers to request rides exclusively with female drivers. This initiative responds to growing safety concerns for women using public and ride-hailing transport. The feature is adapted from Uber’s US model but customized for South Africa’s unique security challenges.

How it functions: Female users can specify their gender during app registration. Once activated, they can opt to ride only with women drivers. Female drivers receive these requests and can choose to accept or decline based on comfort. For instance, if additional passengers are added unexpectedly, drivers can reject the trip, which will then be automatically canceled.

Not a novel concept: Women-only ride options have been available before. Bolt launched a similar service in South Africa in 2021. Local startups like Kgosigadi Rides operate exclusively with female drivers and passengers, while Wanatu allows riders to select preferred drivers.

Broader perspective: This feature aligns with Uber’s efforts to foster trust and safety, encouraging more women to participate as drivers and riders in the ride-hailing ecosystem.

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The World Wide Web3

Coin Name	Current Value	Day	Month
Bitcoin	$114,580	+0.52%	+6.39%
Ether	$4,149	–0.66%	–5.53%
48 Club Token	$48	–0.02%	–0.02%
Solana	$209.31	–0.18%	+5.67%

* Data as of 06:40 AM WAT, October 1, 2025.

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Written by: Opeyemi Kareem and Ifeoluwa Aigbiniode

Edited by: Ganiu Oloruntade