👨🏿‍🚀TechCabal Daily – A Goodweek for Safaricom?

Image: Reuters/Noor Khamis

Safaricom, Kenya’s largest telecoms operator, is facing an escalating legal battle after one of its longtime dealers, Goodweek Inter Services Limited, challenged its removal from the telecom operator’s dealership network. 

The dispute, now before the High Court’s Constitutional and Human Rights division, has evolved into a broader fight over Safaricom’s alleged abuse of market power. Goodweek wants to turn the case into a class action by inviting other affected dealers to join.

Goodweek, which has sold M-PESA services, SIM cards, and Safaricom merchandise since 2002, lost access to Safaricom’s dealer portal in April 2024 after failing to renew its contract. 

The company argues that Safaricom imposed unfair contract terms that forced dealers into agreements with no room for negotiation. It claims that the telco set unrealistic sales targets to deny commissions, deliberately reduced the number of dealers, and allegedly plans to cut its dealership network from over 400 to just 38.

In its suit, Goodweek has also named Vodafone Plc, Vodafone Kenya Limited, and Mobitelea Ventures Limited as respondents, which shows that the dispute is part of a broader structural issue in Safaricom’s business model. 

The dealer says it invested over KES 180 million ($1.4 million) to meet Safaricom’s shop standards, only to be locked out of the dealership network.

On the other hand, Safaricom maintains that Goodweek’s contract simply expired and that all dealers operate under the same terms; Safaricom claims that over 400 others renewed without issue. The telco also argues that the case should have been filed in the commercial court rather than as a constitutional matter since it revolves around contract law.

With accusations of market dominance, unfair contract terms, and a potentially drastic reduction in its dealership network, the case could set a precedent for how Safaricom, and potentially other dominant firms, engage with smaller business partners in Kenya’s telecom sector.

Image Source: MTN Nigeria

MTN Nigeria, the country’s largest telecom operator by subscribers, by broadband reach, and, to match its big-boy status, competes as one of the top employers among its peers in the telecom sector.

With over 84% of its employees earning at least ₦1 million ($666) monthly, MTN’s salary structure is reshaping expectations in Nigeria’s telecom industry. While competitors struggle with discretionary or performance-based pay increases, MTN has created a predictable wage system that rewards stability over volatility. This approach not only improves employee retention but also strengthens the company’s negotiating power when attracting talent from tech, finance, and other high-paying sectors.

However, this wage dominance comes at a cost. In 2024, MTN’s total wage bill surged by 59.5% to ₦71.7 billion ($47.7 million). Sustaining such a payroll amid fluctuating foreign exchange rates, rising inflation, and increasing operational expenses will be a long-term challenge. Unlike startups or leaner telecom operators that optimise costs, MTN is betting on a well-paid workforce as a driver of efficiency and innovation.

This strategy also extends to MTN’s broader ecosystem. Vendors, contractors, and service providers working with MTN now face higher expectations when negotiating salaries or fees. In a telecom sector where cost-cutting is a survival tactic, MTN’s model forces a rethink on whether aggressive wage structures can coexist with profit margins.

Yet, these may just be shallow concerns, as MTN Nigeria has already proven it can consistently be a trillion-naira business, like the banks that have mastered the art of ekeing out profits every year—perhaps the telecom operator too, can pay like the banks. But like most big businesses, MTN Nigeria’s losses are heavy, which rightly puts the question of sustainability into focus.

For workers in the sector, the ripple effect is already evident. Skilled professionals in smaller telecom firms, fintechs, and IT services now have stronger bargaining power, using MTN’s salary benchmark as leverage. Competitors may not be able to match MTN naira for naira, but they will need to offer new incentives—equity, benefits, or flexible work arrangements—to stay competitive in talent acquisition.

Image Source: OSL

On any given day, if you scroll through Bybit’s peer-to-peer (P2P) trading feature—currently the largest active crypto P2P platform following Binance’s delisting of Nigerian users—the presence of Nigerian traders is hard to miss. You’ll spot them by their bogus claims of offering the “best deal” in the market. Hundreds, if not thousands, of young Nigerians flood the platform, drawn by the promise of financial stability in an economy that offers few opportunities.

During bull market cycles, the mood among P2P traders—merchants who provide liquidity to crypto buyers—is particularly upbeat. According to several traders who spoke to TechCabal, peak trading periods can see them handling between 3,000 to 5,000 transactions monthly. On average, this translates to thousands of dollars in profits. One trader, who provides crypto liquidity in small caps, shared that he earns between $500 and $1,000 during what he calls a “great month for business.” The allure of such gains is undeniable, but the risks are equally heavy. 

Like most cutthroat businesses, P2P traders try to undercut each other by offering cheaper deals on exchange rates—striving to maintain a balance between staying competitive and avoiding underpricing themselves.

On top of that, the market still finds a way to bring a potential scammer their way at least once a day. These traders face glitch fund scams, flash fund scams, money laundering attempts, coin locking, and the constant challenge of dealing with regulatory bodies and banks that are eager to freeze their accounts.

Yet, as one Web3 influencer put it, these risks are “occupational hazards” that come with a high-reward venture. 

While many crypto traders have developed a thick skin to deal with the consequences of the P2P business, scammers are getting smarter in response, turning the struggle into a battle of wits. The most impressive aspect of these traders is that they’ve rallied themselves into communities to share updates and trends on how fraudulent actors are operating, helping them stay one step ahead.

Like experiencing a quick release of endorphins, the simple joy of seeing a buyer initiate a trade is enough to make any trader’s day. The risks, the intense competition, the account freezes, the court orders, and the legal troubles—they are what they are: occupational hazards, pesky side effects of an unchecked, well-oiled system. 

Read TechCabal’s coverage of how P2P crypto traders are navigating daily scam threats and regulatory issues in their businesses.

Launch of Swartruggens Minibus Taxis/Image Source: Waxd Solutions

Minibus taxis in South Africa’s North West province are going digital with a new contactless payment system launched by fintech company Waxd Solutions in partnership with the Botransa Taxi Association. The system, now live in Swartruggens near Rustenburg, allows commuters to pay fares using bank cards or scan-to-pay options, eliminating the need for cash.

Waxd Solutions specialises in digital payment systems for public transport, aiming to modernize fare collection and improve financial security in the taxi industry. Botransa, a regional taxi association, is backing the initiative to create a safer and more efficient payment process for drivers and passengers.

A key feature of the system is biometric authentication, which allows commuters to use it across multiple transport modes. By automating fare collection, the solution helps taxi operators manage income securely while offering passengers a safer, more convenient way to pay.

Waxd says the system could also improve access to financial services for taxi owners and drivers by creating a digital financial record. Industry players hope this will reduce cash-related risks and streamline operations in South Africa’s vital taxi sector, which moves around 15 million people daily.

Following a successful pilot in November 2024, the rollout is set to expand to other regions. While similar solutions have struggled with adoption in the past, Waxd believes its close collaboration with the taxi industry has made the system more practical and sustainable.

Coin Name

Current Value

Day

Month

Bitcoin	$83,984	– 9.71%	– 15.96%
Ether	$2,099	– 14.18%	– 32.62%
Reploy	$1.64	– 15.07%	– 49.17%
Solana	$137.57	– 18.83%	– 34.90%

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