Finance (93)
The Cameroonian platform launched three years ago has attracted investments from across the globe. In 2022, it was the Central African startup to attract the second-highest volume of funding.
Blockchain-backed accelerator Adaverse announced Monday a strategic investment in Ejara, the Cameroonian investment platform that improves financial inclusion through blockchain technology.
The investment, whose amount was not disclosed, will support Ejara's drive to empower itself and expand into new markets in Francophone Africa.
“Ejara meets a pressing need across the Francophone region, and we are excited about the business model, which we believe can be replicated across the African continent. They have shown that they understand the people and have built a bridge between crypto and traditional finance, leveraging continuity rather than disruption,” said Vincent Li, founding partner at Adaverse.
Since its launch in 2020, Ejara has completed several funding rounds. The last before this financing was in November 2022, when it secured $8 million from several investors.
To date, Ejara has served more than 33,000 people from Cameroon, Côte d'Ivoire, Burkina Faso, Mali, Guinea, Senegal, and the Francophone African diaspora in Europe, Asia, and the United States. The fintech startup has also launched cross-border money transfers and user-to-user payments for Africans in the diaspora.
With this new funding, it wants to conquer Francophone African countries, democratizing access to crypto-currency investments by offering the average resident the opportunity to invest as little as CFAF1,000 (~$2) and earn interest daily.
Samira Njoya
African start-ups play a vital role in economic growth and development. They create jobs, solve problems, and positively impact societies. Funding them is therefore more important than ever.
Last Tuesday, Flat6Labs, MENA’s leading venture capital, announced the launch of the Africa Seed Fund (ASF), a new $95 million seed fund aimed at supporting the growth and development of early-stage tech start-ups in Africa.
The venture capital firm informs that ASF will focus on three main investment territories, namely North Africa, West Africa, and East Africa. It will invest in more than 160 early-stage African tech startups over the next five years with check sizes ranging from $150,000 to $500,000.
It will provide beneficiaries with seed funding, regional business support, access to a regional network of experienced mentors, and regulatory and logistical support to set up and grow their businesses. Two cohorts will be run every year, each with an average of 10 to 15 start-ups. The first investments in the selected start-ups are expected before the end of 2023.
Flat6Labs “ will also be providing seed tickets to seasoned founders independently of the program,” the release announcing the ASF explains. According to the release, the large influx of ASF capital is likely to create more than 14,000 jobs, support more than 1,200 founders, 20% of whom are women, and generate more than $700 million in revenue.
“Africa is one of the most exciting regions to invest in tech and innovation, with huge untapped potential and unique business opportunities. We will leverage our experience and knowledge to guide the startup founders to create truly scalable, investment-ready, Africa-based companies,” said Ramez El-Serafy, General Partner for ASF.
The African tech ecosystem has grown significantly in recent years. According to Partech's Africa Venture Capital Report 2022, the ecosystem attracted $6.5 billion of investments in 2022, up by 8% from the $6 billion attracted in 2021.
Samira Njoya
The Democratic Republic of Congo is one of the African countries with the largest rural-urban connectivity gap. In that context, the post-Covid-19 growth in demand for broadband connectivity coupled with the country’s large population is attracting local and foreign investments in the digital sector.
In the coming months, more than 2.5 million people living in the eastern regions of the Democratic Republic of Congo (DRC) will benefit from a faster, cheaper, and more reliable internet connection. A financing agreement to this effect was signed on Saturday, March 4, between the European Investment Bank (EIB) and Bandwidth and Cloud Services Group (BCS).
Under the agreement, BCS will receive $10 million to deploy 1,200 km of fiber optic cable out of the 20,000 km that it plans to install in Southern, Central, and Eastern Africa over the next three years.
The investment will help connect areas with poor or no access to broadband internet. It will create jobs and connect 319 schools and 70 hospitals and health centers. According to Yonas Maru (photo, left), founder and CEO of BCS Group, it "will go a long way to ensure implementation of the MOU between the Government of DRC and BCS to connect over 1,900 schools, 1,640 public hospitals and government institutions along the BCS backbone and metro fiber infrastructure."
“The Digital is such a powerful driver of equity, inclusion, and growth, that the EU has made it a pillar of our Global Gateway strategy. Expansion of the fiber-optic infrastructure will enable local communities, schools, and hospitals to benefit from mobile broadband, which ultimately means new opportunities for learning, business, jobs, and healthcare,” said Thomas Östros, Vice-President of the European Investment Bank.
The funding was officially announced last November at the AfricaCom 2022 in Cape Town, South Africa. It is the EIB’s first quasi-equity investment and its second cooperation with BCS. In 2018, the institution provided an $18 million long-term loan for BCS.
Samira Njoya
The coronavirus pandemic accelerated digital transformation projects in Africa, boosting demand for digital tools. This creates a funding gap, which is partially filled by investment funds and venture capital firms.
Pan-African diversified group Axian announced Monday (Feb 13), the launch of Axian Investment, an entity that will manage its investments in tech and innovative companies in Africa.
According to the press release issued by the group, Axian Investment will aim to share the group's experience and provide support, directly and indirectly, to companies at different stages of maturity.
"It will empower AXIAN Group to deliver an even broader positive impact through diverse yet synergized investments, reaffirming its commitment to support entrepreneurs and create shared and inclusive values. Meanwhile, supporting Africa’s growing position within the global economy," the release informs.
The Pan-African group kickstarted the implementation of its long-term investment strategy in 2017 by taking indirect stakeholding in companies and startups. To date, it has invested in 20 private equity and venture capital funds "across the world, but with a strong regional focus on Africa."
Currently, its venture capital branch is a minority shareholder in 10 African start-ups. It aims to accelerate its activity and spread across the entire ecosystem (fintech, e-commerce, e-health́, e-logistics...). It will also create synergies with the group's other activities.
Samira Njoya
The second fund comes four years after the close of the first. Like the first, it is also focused on African startups but the envelope raised is larger.
US VC firm Partech announced, Tuesday (Feb 7), the first closing of Partech Africa II, its second investment fund focused on Africa. The EUR245 million raised will "support entrepreneurs who use a combination of technology and excellent operations to address some of the hard-to-solve but very large opportunities the continent offers across all sectors."
“We had set an ambitious goal for Partech Africa II at €230M, with a hard cap at €280M, essentially doubling the size of our first fund. We overreached it with a closed amount already above the target fund size," said Cyril Collon (photo, left), General Partner at Partech Africa.
The second fund is backed by leading development finance institutions, as well as institutional and commercial investors. It will pursue the first fund's strategy, which is to identify and support early-stage and growth-stage start-ups on the continent. It will invest between US$1 million and 15 million to support the targeted entrepreneurs.
To date, Partech's portfolio includes 17 startups in 9 African countries now operating in 27 countries across the continent. They include TradeDepot, Yoco, Wave, Nomba (formerly Kudi), Gebeya, ChatDesk, Reliance Health, MoneyFellows, TerraPay, Tugende, and Almentor.
Samira Njoya
The fintech startup is now Egypt's second unicorn after the e-payment platform Fawry.
Last Wednesday, Egyptian fintech MNT-Halan announced a US$400 million funding round, which helped it achieve unicorn status.
The startup founded in 2018 by Mounir Nakhla and Ahmed Mohsen said it secured US$260 million in equity financing (equity) and US$140 million in debt financing, with securitized bond issuance last year.
A single investor, Abu Dhabi-based investment fund Chimera Investments, injected about US$200 million into the start-up in exchange for a 20% stake.
"The timing of the transaction is [...] a testament to our ability to significantly increase our revenues and open new revenue streams while growing our bottom line, despite the macro-economic situation," said MNT Halan CEO Mounir Nakhla.
Thanks to this new funding round, MNT-Halan becomes the second unicorn in Egypt, after the e-payment platform Fawry.
In September 2021, it raised US$120 million from several private equity funds, including Apis Growth Fund II, Development Partners International (DPI) and Lorax Capital Partners, and venture capital funds Middle East Venture Partners, Endeavor Catalyst, and DisruptTech. Among other things, the funds secured helped it acquire the online grocery shopping platform Talabeyah. Currently, it is the leading Egyptian lender to the unbanked with over US$2 billion of loans already disbursed.
The approval comes six months after the Ghanaian fintech startup raised US$10 million from Symbiotics BV and a Mauritian fund.
Ghanaian fintech startup Zeepay recently received the Central Bank of Zambia's approval to operate in Zambia offering users the possibility to directly send funds from their mobile money wallets to over 150 countries.
According to Andrew Takyi-Appiah (photo), co-founder and managing director of Zeepay, the new service, which is the first of its kind in the world, is the result of a partnership with Moneygram International. "Our partnership with MoneyGram is helping to make Africa borderless day by day, and we are excited to be at the forefront of this revolutionary change," he said.
Zeepay operates in more than 25 countries around the world. Since its launch in 2016, it has grown exponentially. In March 2020, it became the first Ghanaian company to secure an Electronic Money Issuer (EMI) license from Bank of Ghana, the Ghanaian central bank.
In August 2022, it raised US$10 million to enter more African markets and support local banks.
Samira Njoya
After securing initial funding in 2020, the company wants to continue its expansion with additional capital.
Moroccan e-logistics start-up Cathedis recently secured US$735,000 in pre-series A funding from an investor cohort consisting of Afrimobility, a venture capital fund of AKWA Group, and CDG Invest.
According to Imad El Mansour Zekri, founder and CEO of Cathedis, the renewed support from CDG Invest, its old investor and partner, as well as the entrance of Afrimobility into its Cathedis' capital will help the startup consolidate its performance, develop its innovation platform and accelerate its growth.
In 2020, the startup secured MAD3 million (US$296,000) through CDG Invest's 212 Founders, raising the resources to achieve over 300% growth between 2020 and 2022.
In its four years of operation, the start-up has built a fully digital platform that manages all deliveries, based on a system that easily handles every operation from production to delivery, payment, and complaint handling with real-time or near-instantaneous tracking.
Cathedis has also deployed an automated 4,000-parcels-per-hour sorting center, thanks to which it serves more than 160 cities and regions in Morocco. To successfully achieve its goals, the startup turned to the association R&D Morocco, which promotes and drives innovation.
According to its CEO, it is one of the leading e-logistics operators in Morocco, with proprietary industrial and tech solutions. Its goal is to reach an annual flow of 3 million packages by 2024.
Samira Njoya
The financial support aims to encourage inclusive growth and accelerate the development of sustainable economies.
The Netherlands will provide US$10 million to the United Nations Conference on Trade and Development (UNCTAD) to help developing countries, including many in Africa, take greater advantage of e-commerce and the digital economy to facilitate business and investment.
An agreement relating to that financial support was signed on Tuesday, 17 January, by UNCTAD Secretary-General Rebeca Grynspan (photo, left) and the Dutch Minister of Foreign Trade and Development Cooperation, Liesje Schreinemacher (photo, right).
"The Netherlands appreciates UNCTAD’s contribution to global digitalization and linking it to improving business and investment opportunities. We are therefore happy to continue our support and hope other donors will follow the Netherlands in its support for this important program," Ms. Schreinemacher said.
According to the agreement signed by the two parties, US$6 million will be devoted to research and technical cooperation activities under UNCTAD's e-business and digital economy program.
An additional US$4 million will "fund UNCTAD’s efforts to strengthen digital government services for micro- and small and medium-sized enterprises (MSMEs) and international investors. It will also support enterprise development, accounting, and reporting for MSMEs to strengthen business facilitation."
In a release dated January 18, the UNCTAD explains that the Netherlands has been supporting its e-business and digital economy program for years now. The support has helped build more inclusive digital economies for women and promoted partnerships to support the development of e-business in low-income countries. It has also helped strengthen digital business and facilitated investments in six African countries and one country each in Asia and Latin America, we learn.
Samira Njoya
With digital transformation accelerating in most countries, Africa needs a highly-skilled workforce, which is experienced with concrete projects, to achieve the much-awaited fourth digital revolution.
Last Tuesday, Africa to Silicon Valley (A2SV) announced it secured funding from Google to implement its project aimed at boosting tech talent in Africa.
The foundation explained that the funding will support the establishment of a "permanent office in Ethiopia and hire more heads of education and a product manager." "The goal is to expand A2SV’s presence to Ghana and upskill 330 more students in Ethiopia and Ghana over the next two years, building a pool of highly trained, industry-ready candidates who have experience with real-life projects," it adds.
“Aspiring software developers in Africa lack access to experienced mentors and job opportunities. Academic education fails to equip them with the skills they need in real-world contexts. We address this gap through our rigorous training program comprising daily classes, boot camps, and real-life projects," said Emre Varol, A2SV founder and head of executions.
According to a report by consultancy firm Korn Ferry, the global tech ecosystem could experience a shortage of over 85 million workers by 2030. With 400 million young people aged between 15 and 35, Africa has the youngest population and can help fill that gap if its talent pool is built in time.
Africa to Silicon Valley was founded in 2019. Its priority is to build the best talent pool. It offers a rigorous training program that prepares candidates for interviews with leading tech companies. The said program covers aspects like algorithms and data structures, soft skills, and real-world projects.
Samira Njoya
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The cable aligns with the government's strategy to develop the digital sector and extend competitive telecom services in remote areas.
Last Wednesday, in Luanda, China and Angola signed an about US$249 million concessional loan agreement for a national broadband project.
According to Pascoal Borges Alé Fernandes (Angola's Secretary of State for Telecommunications and Information Technology), the project will dynamize and extend Angola's network infrastructure.
"We are talking about the implementation of around 2,000 kilometers of terrestrial fiber optics that will make it possible to reach areas not yet reached by telecommunications services (…). And we also have a microwave segment that will make it possible to boost communications in Cabinda," he said.
A few years ago, Angola launched a large digital infrastructure construction project to meet the country's huge demand for digital services. With the new broadband project, the government wants to encourage tech innovation and boost productivity in the public and private sectors.
The project will help provide broadband connection in remote areas, reduce access costs and boost the country's digital economy. For China's ambassador to Angola, Gong Tao (photo, left), the agreement signed opens "new doors and new chapters" in the relations between Luanda and Pekin.
Samira Njoya
The funding is announced 18 months after the startup secured US$3 million in seed funding, including US$1 million of debt financing.
Ghanaian logistics startup JetStream Africa announced, Tuesday (January 10), it has secured US$13 million in debt and equity pre-Searies A financing.
The startup, based in Tema (Ghana) operates in 29 countries (14 African countries). With the newly secured funds, it plans to enter new markets and upgrade its platform that "vertically aggregates fragmented logistics and financing vendors in the world of African trade."
“With this funding round, we are excited to use our technology to reflect our customers’ data back to them in the form of business insights, so they can trade more profitably,” said Miishe Addy, co-founder, and CEO of JetStream.
In Africa, it is challenging for SMEs to ship their goods across international borders. As a result, they have access to only a limited number of markets. The continent's population is also larger than production capacities, therefore, the trade deficit is rising in the ever-booming market. According to a recent report by Mordor Intelligence, the African cross-border freight market is expected to grow at a compound annual growth rate of approximately 4.5% between 2022 and 2027.
With its new model, JetStream facilitates end-to-end freight, helps reduce costs and also provides funding to SMEs that need it.
According to Miishe Addy, the new investment will allow the company to expand its reach and continue to improve its service offerings. "At Jetstream we aim to help regional companies grow their supply chains faster, and close that gap themselves," she said.
Samira Njoya
The booming tech and digital sectors play an increasingly important role in East African economies. To support the countries in their projects and foster digital integration, partner institutions are committing significant funds.
The World Bank recently granted US$15 million to strengthen and accelerate regional digital integration efforts in the East African Community (EAC).
According to a statement issued by the EAC on Saturday, December 17, with that funding, the World Bank -through its Single Digital Market (SDM) initiative- wants to help the region become a deeply integrated and dynamic hub for digital investment, innovation, and growth.
For EAC secretary general Peter Mathuki, the funds will be used to create, among other things, regional digital innovation centers in all partner states to address digital challenges. "This support will further enhance the region's competitiveness and skills development that are central to successful digital transformation," he said.
Developing digital infrastructure and the economy is one of the development priorities of EAC member countries (Burundi, Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania, and Uganda). Two years ago,
decided to align their tax regulations concerning the digital economy. The alignment aims to increase member countries’ revenues from the ICT sector and establish a legal framework that can help countries regulate large digital firms in the years to come.
According to a study conducted by the International Finance Corporation (IFC) in 2020, by 2025, the digital economy’s contribution to GDP would reach 9.24% in Kenya, 5.96% in Rwanda, 4.57% in Tanzania, and 4.18% in Uganda.
To achieve this, the community can rely on the World Bank and its single digital market initiative. According to the EAC release, the project will focus on the development and integration of the connectivity market, which will involve the creation of a legal, regulatory and institutional environment conducive to information technology and communication to strengthen digitization in the region.
Samira Njoya
The Malagasy government is determined to achieve its digital transformation ambitions and deploy e-governance nationwide. It also wants to give digital training to its citizens.
Last Tuesday, the IFC and the Malagasy Digital Ministry announced a partnership aimed at improving access to advanced and specialized computer training courses in the country.
The program aims to train, within two years, 6,000 people, including public and private sector employees and youth, in IT occupations such as software development, cloud architecture, data engineering, and cybersecurity.
“The project aligns with the government's commitment to better prepare for the digital economy by developing the needed digital skills and modernizing its administration to improve service delivery, boost economic growth and create much needed jobs,” said Digital Minister Tahina Razafindramalo (photo, right).
Indeed, for several years now, digital transformation has been the core of the Malagasy government’s actions. The country defined four main axes for its development programs. They are notably the digitization of public education, health and land services, the use of new technologies in agriculture, the development of technical infrastructures, and financial inclusion.
To achieve these four objectives within a short period, the government secured support from the World Bank, which pledged more than US$140 million for the various projects. According to the international financial institution, an acceleration of the digital transformation could allow the Malagasy government to create “about 140,000 new jobs linked to digital skills across nine sectors by 2027, including apparel, agri-processing, and tourism.”
Samira Njoya