Four key developments are shaping Africa's tech and business landscape this week: the shutdown of Nigerian grocery delivery startup GoLemon, Kenya's push for AI transparency, Absa Bank Kenya's strategic pivot toward private sector lending, and Rwanda's plan to retire its 3G network by 2027.

Nigerian Startup GoLemon Winds Down Operations Citing Funding Squeeze

GoLemon, the Lagos-based grocery delivery startup founded by former Paystack employees, is shutting down after failing to raise fresh capital. The company stated that its grocery orders were individually profitable, but fixed costs—including warehouses, staff, and electricity—outpaced revenue. Without another funding round to bridge the gap to scale, GoLemon ran out of runway.

GoLemon entered the market despite challenging conditions in the delivery sector. Jumia Food shut down its food delivery business across Africa in late 2023 as part of a restructuring effort, while Bolt Food exited Nigeria in December 2023 after struggling with profitability. GoLemon's founders believed a different approach—buying directly from farmers and manufacturers and storing inventory in its own warehouses—could succeed where others had failed. However, investors were not convinced.

In the first half of 2026, African startups raised $1.44 billion, slightly higher than the $1.42 billion raised over the same period in 2025. However, the number of deals dropped from 252 to 146, indicating that investors are concentrating capital into fewer companies. This trend has contributed to the closure of other Nigerian startups, including Chimoney, which wound down in May, and Gigbanc, which ceased operations in June.

The quick commerce sector has proven particularly challenging across the continent. With Jumia Food and Bolt Food both having exited, and FoodCourt recently pausing operations, GoLemon's closure further underscores the difficulty of scaling such businesses. The contraction mirrors a global pattern—European rapid-grocery companies such as Getir and Gorillas also retrenched sharply after pandemic-era expansion outpaced underlying demand. In African markets, margins are thin, inflation continues to push procurement costs higher, and customers expect low prices. Although GoLemon reported that each order was profitable, the company never achieved the order density needed to cover its operating costs.

Kenya's Draft AI Policy Mandates Disclosure of AI Interactions

Kenya's Ministry of Information, Communications and the Digital Economy has published a draft AI policy that would require companies to inform customers when they are interacting with AI agents rather than humans. Under the proposed rules, businesses would need to disclose when AI makes or influences decisions affecting a user's access to services, or when content has been generated by AI.

AI has become increasingly capable of simulating human interaction—handling customer service chats, screening job applications, recommending loan approvals, and generating articles and social media posts. The policy aligns Kenya with international precedents: the European Union already requires disclosures for many AI systems and AI-generated content, while in the United States, California has introduced similar rules for AI-generated political advertisements.

Beyond disclosure requirements, the draft policy proposes several institutional frameworks: a National AI Council to oversee AI regulation, a Kenya AI Safety Institute to test and evaluate AI systems, and a National AI Office to coordinate implementation across government. It also stipulates that AI systems making significant decisions—such as loan approvals—must operate under human oversight. Additionally, the policy calls for a public register listing AI systems used by government agencies, with exceptions for systems whose disclosure could pose national security risks.

The policy remains in draft form, but if adopted, it would reduce ambiguity around AI interactions for Kenyan consumers and create compliance obligations for the country's growing number of fintech, healthtech, and agritech companies that increasingly deploy AI-driven features. The push comes after South Africa faced backlash earlier in 2026 over its use of AI to draft its own AI policy, highlighting the risks of insufficient transparency and accountability in AI governance. Kenya is attempting to preempt similar controversies by making disclosure a priority for both businesses building AI products and consumers using them.

Absa Bank Kenya Shifts from Government Bonds to Private Sector Lending

Absa Bank Kenya, a mid-tier subsidiary of South Africa's Absa Group, is pivoting its lending strategy toward households and businesses as Kenya's interest rates eased from 12.75% to 8.75% between August 2024 and June 2026.

The shift follows a decline in the bank's profits. Absa Bank Kenya's net profit in H1 2026 fell 13.8% to KES 5.3 billion ($40.97 million) in Q1 2026, partly because the bank had heavily invested in Treasury bills just as yields were falling. Its portfolio of government securities held to maturity surged from KES 96.7 billion ($748 million) in 2024 to KES 115.1 billion ($890 million) in 2025, immediately before rates dropped. Meanwhile, the bank reduced its loan book by KES 4.5 billion ($34.78 million) to KES 3.8 billion ($29.38 million), missing out as private sector lending growth accelerated from single digits to nearly 10%.

The pivot extends beyond lending. Absa plans to launch a standalone digital-only banking platform before the end of 2026, expanding beyond its existing Timiza lending app to offer savings, investments, and insurance in a single platform. The initiative aims to boost non-interest income, which fell in Q1 2026 from KES 233.9 million ($1.81 million) to KES 4.2 billion ($32.46 million). The move into broader digital banking also positions Absa to compete more directly with fintech disruptors and larger lenders in Kenya's increasingly crowded financial services market.

The strategy is being driven from Johannesburg. Absa Group is offering KES 30.9 billion ($239 million) to raise its stake in the Kenyan unit from 68.5% to 85%. The tender offer signals continued confidence in the Kenyan market, where Absa competes with sector leaders such as KCB Group and Equity Group Holdings. Absa Group CEO Kenny Fihla acknowledged that the Kenyan and Ghanaian units were affected by aggressive rate cuts.

The news aligns with the Central Bank of Kenya's (CBK) months-long push for banks to lower lending rates and stimulate private borrowing.

Rwanda Sets June 2027 Deadline for 3G Network Shutdown

Rwanda has set June 30, 2027, as the final date for the nationwide shutdown of its 3G mobile network. The Ministry of Information and Communications Technology and Innovation announced a roadmap on Monday to phase out older wireless technologies, with 3G going first and 2G to follow once market readiness conditions are met.

The decision follows a multi-year study launched in partnership with Germany in 2024 to assess the technical and economic impact of retiring legacy networks. Pilot shutdowns will begin as early as 2026 to ensure the transition does not leave users without connectivity.

By switching off 2G and 3G, operators can reallocate spectrum to 4G and 5G networks capable of handling everything from 4K video to remote surgery. However, for the 98.8% of Rwandans covered by 2G and 3G, the primary challenge is hardware: devices and payment terminals that only support 3G will become obsolete. The government has mandated that 4G coverage must be truly nationwide and compatible devices must be affordable before the final shutdown occurs.

Airtel Rwanda and other operators are supportive, as maintaining legacy infrastructure is costly and power-intensive. The government is proceeding cautiously to avoid disrupting the millions who still rely on USSD and basic mobile money services.

Rwanda's 3G sunset is part of a broader continental trend. South Africa and Kenya are also working on modernizing their networks, and regulators across the continent are grappling with how to upgrade infrastructure without creating a digital divide. By setting a firm 2027 deadline, Rwanda is signaling to businesses and public institutions that system upgrades should begin immediately.

Funding and Opportunities

All On is offering up to $1 million in blended finance through its Off-Grid Challenge 2026 to support innovative energy access projects. Applications close July 31, 2026.

Founders Fund Africa, the investment platform backed by Chocolate City Music Group, has opened applications for its 2026 Creative Economy Accelerator Programme. The programme is open to African startups building in music, film and media, design, and creative tech. Selected startups will receive between $20,000 and $50,000 in funding and support. Applications close August 28.

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