Nigeria enters its PoS monogamy era

Nigeria's agent banking sector is getting a major change, thanks to new rules from the Central Bank (CBN). From April 2026, every point of sale (PoS) agent must choose—and stick with—one operator. In practice, this means agents will no longer be allowed to use multiple machines from providers like OPay, PalmPay, Moniepoint, or bank-issued platforms.

Why is the regulator doing this? The CBN says it wants to improve service quality and bring order to a fast-growing sector. Nigeria has over 5 million active PoS terminals that processed $7.15 billion in transactions in Q1 2025.

What does this new rule mean? Banks and fintechs will now enter a battle for an agent's loyalty, following the new exclusivity rule, which could lead to better services and incentives for agents. However, the policy also limits agents’ flexibility and may drive up their operational costs. Ultimately, that pressure will be passed down to customers, resulting in higher transaction charges as agents try to offset reduced earning potential.

More rules. The new guidelines also introduce significant changes like the geo-tagging of all PoS machines, which will lock them to a specific location, and a daily withdrawal limit of ₦1.2 million ($816.18) for each agent.

Zoom out: This exclusivity is a trade-off between the flexible convenience Nigerians enjoy with PoS agents for the promise of a more structured and regulated banking system. Whether it restores order or simply breaks the multi-operator model remains to be seen.

After years of incurring heavy losses, M-KOPA has finally turned a profit. The Kenyan pay-as-you-go (PAYGO) pioneer posted a profit of KES 1.2 billion ($9.2 million) in 2024, rebounding from a KES 3.2 billion ($25 million) loss the previous year as revenue increased 66% to KES 53.7 billion ($416 million).

State of play: The turnaround marks a key milestone for one of Africa’s most closely watched startups, which has long been seen as a test case for the continent’s asset-financing model. Founded in 2011 to sell solar systems on credit to low-income households, M-KOPA has evolved into a digital finance platform offering smartphones, cash loans, and insurance to millions across Kenya, Uganda, Nigeria, and Ghana.

Between the lines: The milestone comes at a time when investors are demanding clearer paths to profitability from African startups. The funding boom that once flooded fintechs has cooled, and companies that can demonstrate self-sustaining models are standing out.

Since 2022, the company has focused on smartphone financing, partnering with manufacturers such as Samsung and Nokia to offer pay-as-you-go devices. It has also established an assembly plant in Nairobi.

After what seemed like a media hiatus, Starlink, the Elon Musk-owned satellite internet company, is back singing a tune we are all familiar with. The company says it is ready (again) to enter South Africa and is willing to play by the country's rules to do that. 

But this time, Starlink went a step further. It revealed its $145 million plan: it wants to comply with local empowerment laws (is this what we're thinking, Elon?), invest in local infrastructure, work with the National Sea Rescue Institute to equip rescue vessels, and provide free internet for 5,000 schools. 

Between the lines: The satellite internet provider wants to work through local partners rather than go solo, by hiring South African internet service providers (ISPs) for installation, maintenance, and resale of its product in the country. The company is also looking to base parts of its global network infrastructure in the country to achieve its goal of making South Africa a regional hub for its operations.

Why this turnaround? For months, Starlink's entry into South Africa stalled over local ownership rules that required foreign telecoms to sell equity—something Starlink refused to do. Starlink's stance changed when regulators proposed an entry consideration for foreign firms through equity equivalence. This meant that instead of selling part of its shares, it would invest in projects that advance local empowerment, such as connecting 5,000 schools and investing in local infrastructure.

Zoom out: For all of Starlink's enthusiasm in the market, South African lawmakers are still having second thoughts about the equity equivalence pathway, citing it would undermine the Broad-based Black Economic Empowerment (BBEE) system, which has existed for years, and this has stalled entry plans for Musk's company.

In a bold move, Kenya now wants big companies to share some of their CSR (Corporate Social Responsibility) cash with startups. The Kenya National Innovation Agency (KeNIA) is drafting a plan that would legally require corporates to channel part of their feel-good budgets into an innovation fund.

State of play: Imagine Safaricom, Equity, or KCB swapping a few football tournaments and scholarships for startup seed rounds. Sounds wild, right? But that’s the idea: build a steady local funding pipeline and rely a little less on Silicon Valley’s goodwill.

Between the lines: CSR is traditionally about giving back—funding schools, hospitals, or community events—but KeNIA’s pitch reframes it as ‘investing forward.’ The policy would turn community responsibility into innovation capital, nurturing early-stage ventures that rarely survive beyond the prototype stage.

The proposal borrows from India’s Companies Act of 2013, which requires large firms to allocate at least 2% of their net profits over three years to CSR initiatives. In India, companies with an estimated annual turnover of $112.6 million or a net profit of at least $560,000 are required to comply with these regulations.

Zoom out: Of course, not everyone’s clapping yet. Yet if this policy lands, Kenya could become the first African country to turn corporate responsibility into startup capital.