We have prepared context and insights about this week’s leading news. The stories are:
- GTCO completes first phase of mandatory capital raise
- Meta changes content moderation policies
- Safaricom accused of involvement in Kenyan abductions
GTCO completes first phase of mandatory capital raise
On March 28, 2024, the Central Bank of Nigeria (CBN) revised the minimum capital requirements for commercial, merchant, and non-interest banks, mandating commercial banks with international licenses to raise their capital base to ₦500 billion. The CBN gave all banks a compliance window from April 1, 2024, to March 31, 2026, triggering fundraising activities across Nigeria’s banking sector.
Guaranty Trust Holding Company (GTCO) is now the third major bank to make progress on this directive. The financial services group announced it had completed the first phase of its mandatory capital raise, securing ₦ $209.41 billion ($135 million) from retail and institutional investors.
GTCO’s move follows similar efforts by other banks. In September 2024, FCMB raised ₦150 billion, with plans to increase that figure to ₦340 billion. In December 2024, Access Holdings became the first of Nigeria’s top five banks to surpass the CBN’s new requirements, raising ₦600 billion—20% above the minimum capital mandate for international banks operating in Nigeria.
Zoom In: GTCO plans to use the funds to recapitalise its flagship subsidiary, GTBank Nigeria, which has faced operational challenges since migrating to the Finacle core banking platform in 2024. The platform switch, aimed at cost reduction, led to widespread customer dissatisfaction due to failed transactions and erroneous alerts.
Despite its progress, GTCO’s ₦209 billion raise is still well below the ₦500 billion requirement for international banks. The group has indicated plans for a second capital raise in 2025, though the timeline remains unclear.
Meta changes content moderation policies
Meta is switching things up. The social media giant is ditching its traditional content moderation system for a community-driven fact-checking model, a move that seems heavily inspired by X’s Community Notes.
Previously, Meta’s approach involved using independent fact-checkers to review flagged posts, including ads, articles, videos, and other content types. These posts were temporarily deprioritised in user feeds until reviewed and labeled appropriately.
Meta’s new model aligns with X’s Community Notes, a system that blends fact-checking with community participation. This approach has received mixed reviews, ranging from praise for promoting transparency to criticism for enabling trolling. Zuckerberg emphasised that the new strategy would streamline policies, reduce mistakes, and set a higher confidence threshold for removing content.
Zoom Out: The changes coincide with Meta’s evolving relationship with the US President-elect Donald Trump, who has been critical of the company for allegedly using its platforms against him during past elections.
In recent months, Zuckerberg has taken steps to rebuild ties with Trump, including dining with him at Mar-a-Lago and appointing prominent Republican figures to Meta’s leadership team. Notable additions include Joel Kaplan as Global Affairs Head and Dana White, CEO of UFC, to its board.
Meta has also shifted its donation practices, contributing $1 million to Trump’s inaugural fund. These moves signal a strategic shift toward courting the incoming administration while fostering bipartisan engagement.
Safaricom accused of involvement in Kenyan abductions
Kenya’s largest telecom operator, Safaricom, is under fire following allegations of complicity in a series of abductions targeting government critics. Activists and human rights groups are accusing the telecom giant of playing a disturbing role in the forced disappearances of government critics, raising serious questions about privacy and corporate responsibility.
What happened? Over 80 people have allegedly been abducted since youth-led anti-government protests shook Kenyan cities last year, according to the Kenya National Commission on Human Rights (KNCHR). Activists claim Safaricom shared customer call records and location data with state agents, making it easier for authorities to track down dissidents. The accusations have prompted some Kenyans to ditch their Safaricom lines altogether, fearing surveillance and arrests.
Safaricom hasn’t responded to these fresh allegations. However, back in October, it denied sharing customer data without a court order after a Kenyan newspaper, The Nation, reported that authorities had “virtually unfettered access” to its internal data systems.
Zoom Out: Safaricom isn’t the only company under scrutiny. Kenya Power, the country’s electricity provider, is also being accused of handing over location data from smart meters to state agents. Like Safaricom, Kenya Power has stayed silent on the allegations so far.
By the Numbers
13
Out of the 28 internet shutdowns recorded globally in 2024, nearly half occurred in Africa. According to Top10VPN, 13 African countries experienced shutdowns, including Sudan, Ethiopia, Kenya, Algeria, Guinea, Mauritania, Senegal, Mozambique, Chad, Mauritius, Tanzania, Papua New Guinea, and Equatorial Guinea.
