Terra is playing defence

One week after raising $22 million to expand its manufacturing, Terra Industries, a Nigerian defence-tech startup, has signed an agreement with the Defence Industries Corporation of Nigeria (DICON), the Nigerian Armed Forces-run defence corporation.

What this partnership really is: Terra and DICON will create a joint venture company (JVC) that will be structured as a subsidiary under DICON and be co-owned by both entities for the local production of advanced security systems, including drones, robotics, cybersecurity infrastructure, and the software that makes it all work. 

The JVC will handle the assembly, research and development (R&D) of high-technology systems, including drones, robotics systems, cybersecurity infrastructure, and support the supply of security equipment to Nigerian security agencies. 

Lots of expectations from Terra: Under the arrangement, Terra will provide technical expertise, production support, training programmes, spare parts, and give access to its existing defence supply chains.

Is Terra back in defence? In May 2024, ahead of its factory launch, the startup (then TerraHaptix) said it was stepping away from its defence business. It said it would no longer develop or research military systems and would shift its focus to serving the global commercial market. This latest move marks a slight turnaround from that decision.

What changed? Capital did. Counting its $11.75 million raise in January, Terra has since become the most-funded defence-tech startup in Africa. That kind of capital gives the company the negotiating power to engage the state on structured terms. 

This new partnership does not necessarily contradict its earlier stance; it is not an independent manufacturer for the military and does not operate as a standalone defence contractor. Instead, it is co-building within a government-owned structure. 

Yet, the defence sector can be sensitive and politically-charged, meaning Terra is stepping into a space where public scrutiny and regulatory shifts matter just as much as the product.

In January, Nedbank Group, one of South Africa’s largest banks, announced its intention to acquire about 66% of Kenya’s National Commercial Bank of Africa (NCBA) Group in a cash and stock transaction valued at $855.5 million. 

For this deal to happen, it needed several regulatory approvals, including one from Kenya’s Capital Markets Authority (CMA), the regulatory agency responsible for monitoring the capital markets. 

But CMA has a rule: If a company crosses a certain ownership threshold in another company (say 50%), it may be required to make a mandatory offer for 100% to protect minority shareholders. This week, CMA handed Nedbank a waiver that allows it to stop its acquisition at 66%.

What the CMA actually saved Nedbank from: Full takeovers are expensive and risky. Without the exemption, Nedbank would have had to launch a full buyout offer of NCBA, which means more capital and more complexity in the transaction. A 66% stake gives Nedbank control without emptying its bank account. It also reduces complexity as full takeovers trigger additional procedural steps and deeper scrutiny, and can possibly take longer to complete.

Still not the finish line: The waiver satisfies one core condition, but the transaction remains subject to further regulatory and customary approvals, including banking supervision and competition authorities. Cross-border acquisitions in Africa often move through layered oversight across both jurisdictions. This was an important milestone that shaped the acquisition's outcome. However, the completion of the deal still depends on other approvals.

Since Walmart entered South Africa with its first branded Johannesburg store in November 2025, the US retail giant has been restless. It first opened two additional stores in Clearwater Mall and Fourways Mall, Johannesburg, and plans to add 21 more.

The third store opens in Boksburg this week, kicking off what the company describes as an accelerated rollout across Gauteng, KwaZulu-Natal, and the Western Cape. 

At the same time, its subsidiary, Massmart, is considering closing around 20 underperforming Game stores—a big-box general merchandise retail chain selling appliances, electronics, and household goods—with some likely to be converted into Walmart outlets. The subtext is hard to miss: trim the weak spots, double down on the banner that is working.

Catch up: Walmart has been in South Africa since 2011, when it acquired a 51% stake in Massmart. That deal handed the retail giant immediate access to over 288 stores across Africa, plus local supply chains, property leases, and regulatory know-how. For more than a decade, Walmart has effectively been studying the market from the inside.

What is driving the sudden pace? Early validation. The company says 99% of first-time users of its 60-minute delivery service intend to order again. That kind of repeat signal matters. It suggests demand is not simply stemming from curiosity about an American brand; it is sticky.

Rather than build entirely new stores, Walmart is converting shuttered or struggling Game locations into Walmart-branded outlets, lowering capital costs and speeding up expansion while keeping familiar mall footprints.

Will this unsettle adjacent competitors like Shoprite? Not immediately. Shoprite still dominates food retail at scale. But Walmart’s blend of general merchandise, grocery and rapid delivery gives it multiple entry points into consumer spend.

Source:

* Data as of 06.30 AM WAT, February 24, 2026.

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