South Africa’s black ownership law threatened by EEIP proposal, says Diko

A screen showing the Internet in a red background with the

Aloha,

Victoria from Techpoint,

Here’s what I’ve got for you today:

Why TikTok feels like YouTube
SA’s telecom sector in turmoil over EEIP controversy
Stitch bags $55M to strengthen end-to-end payments platform
Somalia’s Hormuud Telecom CEO, Ahmed Yusuf, to step down

SA’s telecom sector in turmoil over EEIP controversy

South Africa’s telecoms space is getting spicy, and it’s not just because of the tech. The latest drama? Khusela Diko, who chairs Parliament’s Communications Committee, is calling out Minister Solly Malatsi over his push to introduce something called Equity Equivalence Investment Programmes (EEIPs). These would let foreign telcos skip the usual 30% black ownership rule if they invest in things like infrastructure or training instead. Sounds harmless? Not to Diko.

She took to X (formerly Twitter) to drag Malatsi, saying he’s trying to bend the rules in favour of big business, especially to make way for Elon Musk’s Starlink. According to her, this whole EEIP move looks like a sneaky attempt to water down South Africa’s transformation laws, and if that’s the case, she’s not having it. Her message was loud and clear: don’t try it.

But Malatsi isn’t backing down. He says EEIPs are totally legal and have already been used in industries like car manufacturing to attract international investment. He also pointed out that the Cabinet has already given a thumbs-up to rolling these out in the ICT sector, especially to help underserved rural areas. His team believes competition from companies like Starlink could help bring down data costs.

Of course, Starlink is at the centre of all this. Malatsi’s camp is keen on getting it into South Africa, but Diko isn’t buying the hype. She’s warning that no one company, not even one run by Elon Musk, should be allowed to sidestep the country’s transformation rules. If the 30% rule is a problem, she says, change the law properly. Don’t try and sneak around it.

Quick recap: Starlink was supposed to launch in South Africa in 2021, but things went quiet just after the ownership rules came in. Industry folks say that’s no coincidence. Since then, Starlink’s parent company, SpaceX, has been nudging regulators to consider EEIPs, just like in other countries where it faced similar roadblocks.

And while that’s going on, Amazon is making moves too. Their satellite Internet project, Kuiper, was set to launch 27 satellites on April 9, but bad weather in Cape Canaveral meant the rocket never got off the ground. Still, Amazon is under pressure to deliver: it needs 1,618 satellites in orbit by 2026 to meet US rules. Once they get going, expect rapid-fire launches as they race to compete with Starlink in the global Internet-from-space game.

Join 30,000 other smart people like you

Get our fun 5-minute roundup of happenings in African and global tech, directly in your inbox every weekday, hours before everyone else.

Why TikTok feels like YouTube

Remember when TikTok and Instagram were all about short, snappy videos you could watch in 10–30 seconds? Yeah, that’s changing fast. TikTok now allows up to 10 minutes, and Instagram is quietly testing 10-minute Reels too. Crazy, right? These platforms built their fame on quick content, but now they’re giving long-form videos a serious upgrade.

Here’s the plot twist: longer videos are winning. According to Buffer’s analysis of over a million TikTok accounts, once a video hits the 1-minute mark, it starts to crush the competition. These longer vids make up just 12% of content on the app but rake in over 60% more watch time and significantly more reach than their shorter counterparts. So, the days of “keep it under 30 seconds” might be behind us.

The real MVP here? The algorithm. Social platforms are obsessed with keeping users glued to their screens. That means pushing content that keeps people watching, and longer videos naturally do that. More time spent watching = more ads = more money. So if your content holds attention past the first minute, TikTok is more likely to boost it.

Even creators are catching on. Nathan Fega, who’s big on both TikTok and Instagram, says his short videos go viral, but it’s the longer ones, especially vlogs, that drive engagement. “Shorts are fun,” he says, “but long videos pull people in. That’s why TikTok loves them.”

So, what’s making these longer videos pop? What makes someone stay past the scroll? Find out in Delight’s latest.

Stitch gets $55M to strengthen end-to-end payments platform

South African fintech startup Stitch just bagged an extra $55 million to beef up its end-to-end payments platform for businesses across Africa. This fresh funding is a big push for the company as it works to simplify how payments work on the continent. Notably, Raba Partnership , which has backed Stitch before, contributed $4.2 million this time around, signalling their strong belief in the team’s long-term vision.

Stitch, founded in 2019 by Kiaan Pillay, Natalie Cuthbert, and Priyen Pillay, is based in Cape Town. The company’s platform helps businesses accept and manage payments from various banks and financial services without the usual headaches. It’s all about making it easier for companies to offer multiple payment options and streamline their backend processes.

This isn’t Stitch’s first rodeo with raising funds. They kicked things off with a $4 million seed round in 2021, added $2 million later that year to expand into Nigeria, and in 2022 raised $21 million in a Series A led by The Spruce House with PayPal Ventures also onboard. They followed that with a $25 million Series A extension in 2023, led by Ribbit Capital, bringing their total Series A haul to $46 million.

Then early in the year, Stitch took things up a notch by acquiring Exipay, a company focused on in-person payments. That deal helped Stitch break into physical point-of-sale solutions, and they’ve since rebranded the platform as “Stitch In-Person Payments,” targeting large businesses that need to handle payments in stores or on the ground.

All of these point to Stitch becoming a serious player in Africa’s growing fintech space. As more businesses look for reliable, flexible payment systems that work across borders and platforms, Stitch is positioning itself to lead that charge, one integration at a time.

Somalia’s Hormuud Telecom CEO, Ahmed Yusuf, to step down

Somalia’s biggest telecom operator, Hormuud Telecom, is getting a new boss. Its founder and current CEO, Ahmed Yusuf, has announced he’s stepping down on June 1. But he’s not going far. He’ll stay on as chairman of the board.

Mohamed Farah, who’s been with the company for over 20 years and most recently served as deputy chairman, is taking over the CEO role. He’s been a big part of Hormuud’s growth, especially in expanding its network and mobile money service, EVC Plus.

As the new CEO, Farah is set to lead Hormuud’s upcoming humanitarian strategy, which focuses on expanding digital access in remote areas, teaming up with aid organisations, and making sure mobile services are accessible to everyone. He’s particularly keen on getting more smartphones into people’s hands. “Smartphones are key to development,” he said, “but many Somalis still don’t have access. We need to change that.”

Hormuud started in the early 2000s with backing from Somalis in the diaspora, especially those displaced by the civil war. It’s grown massively since then, now boasting 13,000 shareholders and reaching over 90% of the country.

Under Yusuf’s leadership, their mobile money service helped deliver nearly $1 billion in aid to millions of people between 2019 and 2024. Looking back, Yusuf said the company was always about rebuilding and pushing forward with innovation, and he’s confident Farah will keep that vision alive.

Hormuud Telecom has been making significant strides recently. In March 2024, they launched the country’s first 5G network, covering key cities like Mogadishu, Kismayo, and BaidoaThis . move aims to enhance connectivity and support the deployment of IoT products, improving services across various sectors.

By December 2024, Hormuud announced plans to expand its solar-powered data centres to meet the growing demands of AI-driven data processing. Operating 11 data centres with a combined 10-megawatt capacity, the company sources up to 95% of its energy from solar power during daylight hours, highlighting a commitment to sustainable energy solutions.

As of 2025, Hormuud serves over 4 million customers, providing affordable Internet and mobile services to more than 80% of Somalia. The company faces competition from other telecom operators like NationLink Telecom, Telcom Somalia, Golis Telecom, and Somafone.

What I’m watching

Women Health Expert: Birth Control Changes Who You Are & How You Feel About Your Partner!
The Truth About Anxiety & ADHD: Life-Changing Tools From Renowned Psychiatrist Dr. Tracey Marks

Opportunities

Pitch Friday is tomorrow, Friday, April 11, 2025. Register here to attend.
Want to exhibit or attend the Lagos Startup Expo in June? Visit this website here.
Want to connect with professionals in tech sales and partnerships to exchange ideas and explore how revenue growth can scale Africa’s tech ecosystem? Join Tech Sales Connect 2025 on April 19th at Gomycode, Lagos. Register here.
Want to exhibit or attend the Lagos Startup Expo in June? Visit this website here.
Jumia is hiring a Logistics Operations Manager. Apply here.
Airtel Africa is looking for a Home BroadBand Manager. Apply here.
Coca Cola is hiring a Senior Director, Human Insights Africa. Apply here.
Kuda is hiring IS-Administrator. Apply here.
OPEC is recruiting a Production Manager in Abuja. Apply here.

Want to connect with professionals in tech sales and partnerships to exchange ideas and explore how revenue growth can scale Africa’s tech ecosystem? Join Tech Sales Connect 2025 on April 19th at Gomycode, Lagos. Register here.

Building a startup can feel isolating, but with Equity Merchants CommunityConnect, you can network with fellow founders, experts, and investors, gaining valuable insights and exclusive resources to help you grow your business. Click here to join.
Help us make Techpoint better for you! Your feedback shapes what comes next (your responses may potentially save my job. A bit dramatic, but still). It will only take 30 seconds to tell us what works and what doesn’t. Fill it here.
To pitch your startup or product to a live audience, check out this link.
Have any fresh products you’d like us to start selling? Check out this link here.
Flutterwave is hiring to fill in several positions. Apply here.
Paystack is hiring for several roles. Apply here.
Moniepoint is hiring for several roles. Apply here.
Follow Techpoint Africa’s WhatsApp channel to stay on top of the latest trends and news in the African tech space here.

Have a fun weekend!
Victoria Fakiya for Techpoint Africa.

South Africa’s black ownership law threatened by EEIP proposal, says Diko