👨🏿‍🚀TechCabal Daily – Cape Verde dreams in code

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TGIF!

It’s Friday. Just to repeat: it’s Friday. We made it.

If you’re a CEO, founder, VC, or a leader in Africa’s tech ecosystem, there’s no better way to close out the week. Our industry mixer is happening today. TechCabal is bringing together the sharpest minds—top leaders, innovators, and key decision-makers from tech, media, and related industries—for an evening of real conversations, fresh connections, and bold ideas that could shape the future of business and innovation across Africa.

Want in? There’s still time to register—but seats are limited, so move fast.

Features

Cape Verde says it can become the tech capital of West Africa

An aerial view of Cape Verde/Image Source: Cape Verde Tourism Institute

Cape Verde wants to become the tech capital in West Africa—yes, the region where Nigeria dominates without any peers. But before you raise your eyebrows at this ambition, here are a few reasons why this isn’t just irrational optimism.

Cape Verde lacks natural resource reserves. This allowed it to monetise something else it has: beautiful sceneries. For years, the island nation has been dependent on tourism and in 2020, it launched a digital nomad (remote working) visa class to lure travellers and remote workers. And today, 4.7% of Cape Verde’s 500,000 population are foreigners.

While the perception as a top tourist destination helped boost Cape Verde’s economy, it also chased away natives who saw the country as a place that lacked jobs. But two things are shifting in Cape Verde’s favour: first, the policy tightening around immigration in countries like the UK and the US could push diasporans to return to their home country. Second, with its reputation as a digital nomad-friendly country, Cape Verde could attract tech natives who are keen on building their product ideas from the island.

Think about it: great beach scenery, stable internet connectivity, slightly cheaper cost of living than in Nigeria, and with its planned digital regulatory policies that are tax and startup-friendly, it will add to Cape Verde’s pull for talent. Imagine having a bad day, and you choose to work from a cool tourist spot? That could get your brain juices flowing again. Who knows if African tech founders don’t already live and work out of Cape Verde?

Yet, the country needs more than fancy locations. To attract the capital it is looking for, it needs heavy government participation to find, groom, and support innovation. It is currently doing this with its recently launched free zone, TechPark CV. Time will reveal the results these efforts yield.

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Telecoms

Telkom users in South Africa suffered a network outage on Thursday

It’s a bummer when you’re just suffering the consequences of capitalism and government-led decisions. But it’s a double whammy when you’re paying more for that suffering.

Telkom users in the Western Cape region of South Africa felt this pain. On Thursday, there was a network outage on Telkom, the government-owned telecom company in South Africa which recently hiked telecom fees. The outage, caused by a cable break in the area, lasted nearly three hours, grounding all attempts to make calls, chat, or browse the internet.

However, Telkom is not an isolated case. In May, South Africans suffered telecom network outages from major providers like Vumatel and internet service provider Cybersmart. But it hits different with Telkom. After a hike in telecom fees, Telkom now charges higher than most other telecom companies in South Africa—and on par with major competitors MTN and Vodacom.

Telkom charges R79 ($4.4) for 1 gigabyte (GB) of data—cheaper than MTN and Vodacom. But for 5GB, it charges more than Vodacom at R299 ($17) and matches MTN’s price.

The downtime may have lasted a few hours, but for businesses operating in fintech or edtech sectors—or just about any business that depend on telecom stability—the impact will be hard-hitting.

According to a mind-numbing statistic, African businesses lose $759 per minute every time the internet is down, based on the $1.5 billion lost to internet shutdowns across 32,938 hours of downtime in Sub-Saharan Africa in 2024.

Zoom out: While cable breaks are unpredictable, the remedy is in fixing downtimes quickly. If telecom companies don’t, businesses suffer, but they suffer more when customers churn. And in a country like South Africa where customers have options and the service quality for different telecom operators is high, the switching cost is low.

Paga is on the Financial Times List Three Times in a Row!

Milestone achieved: 3x in a row! Celebrating 16 years of growth with our third consecutive appearance on the Financial Times’ Africa’s Fastest-Growing Companies list.
Read more.

Ride-hailing

Ebonyi rolls out e-hailing taxi service, EBOCAB

EBO cabs on display during its launch on May 29/Image Source: Geeky Nigeria

With a fleet of 60 pickup trucks and 30 SUVs, the Ebonyi State government launched EBOCAB, a ride-hailing platform to provide smart and affordable transportation alternatives for its people.

The big idea: EBOCAB was launched to cut down on crime, generate revenue, and provide new streams of employment for the youth. The service,which can be accessed through a mobile app, connects users with drivers round the clock. With its corporate headquarters in Abakiliki , this platform will serve commuters within and around Ebonyi’s airport, international market, and other corners of the state.

What’s driving this move? Ebonyi State, with a population of over 3 million people, has an informal inter-city transport system. The roads are dominated by tricycles, motorcycles, and mini-danfo buses. These transport systems are often seen, by many commuters, as the cheaper alternative to available e-hailing services like Bolt or InDrive. However, they are plagued with safety issues, including theft, intimidation of commuters and harassment.

With the launch of this safe and regulated taxi service, the government hopes to provide comfort and security to commuters within the state.

Ebonyi’s not exactly breaking new ground here. In 2022, Lagos State launched its ride-hailing service, LagosRide (aka Lagride) on similar promise. The ride-hailing model enabled drivers to become vehicle owners after four years on a hire-purchase plan. However, LagRide drivers repeatedly complained about high repayment rates. In response, the Lagos state government transferred operational control of the ride-hailing service to CIG Motors, replacing the “drive-to-own” scheme with a salaried employment model for drivers.

Fuel for thought: can EBOCAB go the distance and avoid the Lagride trap? Or will it find itself abandoned, like many once-ambitious state-led projects?

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Insights

Funding Tracker

This week, Nigerian digital lending startup Carrot raised $4.2 million in seed funding. The round was led by MaC Venture Capital, with participation from Partech Africa and Authentic Ventures. (May 27)

Here are other deals for the week:

Nigerian construction tech startup Cutstruct secured $1.5m in a seed round led by CRE Venture Capital. Other backers include E3 Capital, Techstars, and Zedcrest. (May 29)
Beemi, an Ethiopian startup enhancing mobile livestreaming with interactive games, secured undisclosed seed funding from Renew Capital. (May 29)

Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. Before you go, how can Nigeria compete in the emerging AI economy? Our latest policy brief, Building AI Literacy: Preparing Nigeria’s Future Workforce Through Education Policy, presents practical steps to transform education and prepare tomorrow’s workforce today. Download it here.

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CRYPTO TRACKER

The World Wide Web3

Source:

Coin Name	Current Value	Day	Month
Bitcoin	$106,123	– 1.40%	+ 11.62%
Ether	$2,635	– 3.35%	+ 49.75%
EAGLEBUILDER	$0.001647	– 1.52%	– 68.26%
Solana	$165.50	– 3.85%	+ 12.53%

* Data as of 06.15 AM WAT, May 30, 2025.

TechCabal’s exclusive industry Mixer is today!

TechCabal is hosting an exclusive Mixer this today, May 30. If you’re a founder, investor, operator, or builder in Africa’s tech ecosystem, you should attend. Register here. The venue will be communicated upon registration.

Events

Digital Equity Africa presents the first AI Summit for Children in Africa, empowering young minds for an AI-driven world. Don’t miss out, register here!

The UNDP Nigeria Innovation Centre, in partnership with TechCabal and TechCabal Insights, is inviting voices from across the innovation ecosystem—startups, creatives, hubs, academia, and government—to share insights through the Ecosystem Engagement Survey. Your input will help shape collaborative solutions that address Nigeria’s development challenges, unlock new opportunities, and inform how innovation and digital transformation efforts are supported across the country. It’s a call to co-create the future together. Fill the survey here.

Written by: Emmanuel Nwosu, Opeyemi Kareem, and Stephen Agwaibor

Edited by: Faith Omoniyi

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