TechCabal Daily – Access granted

If you were Access Bank, and you’d been chasing a buyout deal for the National Bank of Kenya (NBK) for as long as it has, even the tiniest steps in the regulatory approval process would send tingles down your spine.

This must be the feeling at Access Bank, Nigeria’s largest commercial bank by assets, which has now received approval from both the Central Bank of Kenya (CBK) and the country’s Treasury to acquire the struggling Kenyan lender.

The deal’s not yet inked—Nigerian regulators still have to sign off—but this is the closest Access has been to sealing the deal since it first whispered sweet acquisition nothings in KCB’s ear to acquire its NBK subsidiary over a year ago.

So why the clingy courtship? NBK might be struggling, but it comes with prime real estate: a wide branch network (85 branches), name recognition, and a seat at the table in East Africa’s biggest economy.

This would be Access Bank’s second Kenyan swoop, after acquiring Transnational Bank in 2020. Clearly, Access Bank is focused on building serious muscle in East Africa, especially after its 2022 attempt to buy Sidian Bank fell through due to unmet waiver conditions that were never made public.

Despite what promised land the NBK looks like for Access Bank, the smaller bank has been struggling with high loan defaults and consistent revenue losses. As of 2024, NBK’s non-performing loans (NPLs) were as high as 18.6%, above the banking industry’s 16.4%—which means that for every $100 the bank gave out as loan, $18.60 was at risk of not being repaid on time or at all. This was primarily driven by defaults in corporate and manufacturing sectors, which together accounted for a significant share of the bank’s bad loans.

While NBK staged a recovery in 2024 after posting a profit after tax of KES 1.06 billion ($8.2 million), the bank’s profitability has historically struggled; in 2023, it lost KES 3.3 billion ($25.5 million), driven by its high loan defaults and macro challenges.

Yet, buying NBK could give the Nigerian bank a solid springboard to achieve its five-year plan and take on big local Kenyan players like KCB and Equity to establish a market stronghold, especially if it injects fresh capital from its group company to stabilise the NBK brand.

Since Jeff Bezos’ Project Kuiper started blowing hot about entering markets that billionaire Elon Musk has been eyeing for months, things have miraculously been falling into place for the Starlink boss.

Bad weather torpedoed Amazon’s much-frenzied Kuiper satellite launch, Lesotho was looking for a quid pro quo arrangement and has now allowed Starlink into its country, and even in South Africa, members of parliament (MPs) are torn between bringing in Musk’s Starlink internet or staying grounded with their black ownership rule.

Now, Musk is bagging wins further up the continent. On Sunday, Starlink, the satellite internet service provider (ISP) launched in Somalia—marking its 20th African country. While the ‘Horn of Africa’ isn’t exactly known for robust digital infrastructure, Starlink’s low-orbit satellite technology is tailor-made for underserved and off-grid zones.

Musk isn’t waltzing into a blank slate. Hormuud Telecom, Somalia’s telecom heavyweight, has been dominating the space for decades. The telecom operator is like Kenya’s Safaricom; it has built a massive network, moved millions of dollars through mobile money, and for $20 a month, Hormuud offers unlimited internet—something satellite ISPs dream of matching. 

On the other hand, Starlink will likely charge between $110–$120 per month for its standard residential plan in Somalia, with an upfront cost of $600 for the dish and modem. This is over five times Hormuud’s price and requires a substantial initial investment, which is a major barrier in a country where most households earn about $2.15 per day. The satellite ISP has not announced any subsidised plans for Somalia.

Still, Hormuud’s about to go through a leadership shake-up, and Starlink’s timing couldn’t be better. With Musk’s deep pockets, global footprint, and X-powered hype machine, Hormuud might soon have a real fight on its hands.

With local telecoms bracing and competitors like Google’s Taara also lighting up the race, Somalia just became the next big battleground in the fight to connect Africa’s disconnected.

South Africa’s energy sector is about to level up. 

The country is gearing up for its very own traded electricity market.

This shift to energy trading is useful because it takes away the central power from Eskom. Instead of being stuck with a single supplier like Eskom, South Africa’s electricity provider, consumers can now shop around, comparing prices and picking options of power products. It’s like choosing your internet package, but with less buffering and more, well, electricity.

This setup means no more rigid tariffs. Instead, prices will reflect the actual dance of supply and demand. With multiple energy providers selling units of power, South Africans will have access to cheaper electricity compared to what Eskom provides.

This shake-up could not come at a better time. Electricity prices have skyrocketed, going up more than eight-fold from 2008 to 2023—for context, South Africa’s inflation only went up by 215% during the same period. 

And just when you thought electricity could not get pricier, Eskom dropped another 12.74% hike which took effect on April 1. Added with the increased tariffs in telecom and streaming services, South African businesses and households are feeling the heat.

The National Energy Regulator of South Africa (NERSA), the country’s energy regulator, is already setting things in motion by giving the green light to 10 traders—including Green Electron Market and Discovery Green—to set up electricity pricing units. 

Rand Merchant Bank (RMB), a South African investment bank, is also stepping up to back new market players to bring energy costs down. Plus, the bank is also pouring cash into solar grid upgrades to lead South Africa’s push for renewable projects.

After years of watching Lagos hog all the data center glory, Port Harcourt is finally getting its moment in the sun. 

Equinix, the global data center provider that acquired Nigeria’s MainOne, has pledged $140 million to boost digital infrastructure in southern Nigeria. The deal includes plans to launch a new data center (PR1) in Port Harcourt. 

PR1 will also serve as the landing station for Meta’s 2Africa submarine cable.