Safaricom faces accusations of anti-competitive practices
In Kenya, Safaricom, the dominant telecom provider, is facing allegations of anti-competitive behavior in the money market fund (MMF) sector. The company's investment product Ziidi, which offers zero-rated M-PESA transfer fees, has been accused of giving Ziidi an unfair competitive advantage in the mobile-first and price-sensitive market.
Safaricom's alleged anti-competitive practices revolve around the zero-rating of M-PESA transfer fees for Ziidi, a privilege not extended to competing MMFs. This move, according to competitors like Genghis Capital’s Mali product and Cytonn, has significantly impacted their businesses, with Safaricom allegedly marginalizing them by leveraging its control over the mobile money platform.
The Competition Authority of Kenya (CAK) is actively investigating these allegations. If found guilty, Safaricom may be forced to extend zero-rated M-PESA access to all competing MMFs or remove it from Ziidi, thereby leveling the playing field. However, if the case is dismissed, it could set a precedent allowing platform owners to dominate markets built on their infrastructure.
As of early July 2025, related arrests have been made in connection with broader financial accountability cases in Kenya, but there are no specific public updates on the conclusion of the Safaricom MMF antitrust probe.
Meanwhile, in South Africa, TransUnion, a private credit bureau, is partnering with MTN to score South Africans based on their mobile phone call habits. This move aims to cater to previously excluded non-digitally native people. However, large groups may still be left out due to the use of apps like WhatsApp for calls, which don't appear in traditional call data.
In the realm of renewable energy, Open Access Energy (OAE), a South African startup, has secured a $1.8 million seed funding round. OAE uses AI to create a digital infrastructure for electricity trading and aims to become the backbone for the renewable energy economy.
In a separate development, Parliament in Kenya rejected a clause from the Finance Bill that would have granted the Kenya Revenue Authority (KRA) the right to dig into the data of Kenyans and businesses without a court order. Concerns about personal data collection, who sees it, and whether it's kept safe were raised. Another rejected clause proposed the power to seize taxpayer funds even while legal appeals were still underway.
In August 2024, OAE secured $750,000 from Factor E Ventures, and in 2024, the Common Market for Eastern and Southern Africa (COMESA) Competition Commission investigated an agreement between American Tower Corporation (ATC) and Airtel Africa, which was tagged as anti-competitive. The funding for OAE's product development was secured from E3 Capital, Equator VC, and Factor E.
The 2nd Edition of the Uganda Investor Summit is happening on June 19-20, 2025. These developments underscore the ongoing scrutiny and regulation of businesses in the digital and financial sectors across Africa.
- Safaricom's investment product Ziidi, which offers zero-rated M-PESA transfer fees, is causing concerns in Kenya's mobile-first and price-sensitive market, with allegations of anti-competitive behavior.
- The Competition Authority of Kenya (CAK) is investigating the allegations against Safaricom and could potentially force the company to extend zero-rated M-PESA access to all competing money market funds (MMFs) if found guilty.
- Meanwhile, in South Africa, Open Access Energy (OAE), a fintech startup, has secured funding to develop a digital infrastructure for electricity trading, aiming to become the backbone for the renewable energy economy.
- In the realm of financial data, the Kenyan Parliament rejected clauses from the Finance Bill that would have granted the Kenya Revenue Authority (KRA) unchecked access to citizens' and businesses' data, expressing concerns about personal data collection and privacy.
- In the future of investment, the 2nd Edition of the Uganda Investor Summit is scheduled for June 19-20, 2025, highlighting the ongoing scrutiny and regulation of businesses in Africa's digital and financial sectors.
