Tech (883)
After enabling Nigerian startups to raise capital on the exchange, the NGX is going a step further with the federal government’s approval.
Nigerian authorities want local start-ups to be listed on the Nigerian Exchange Limited (NGX), the country's main stock exchange. This was stated by Bosun Tijani, Nigeria's Minister of Communications, Innovation and Digital Economy, at a technology event entitled "Invest in Africa's Future - Let's talk about exits" held last week in New York, on the sidelines of the United Nations General Assembly.
The aim is to stimulate the listing of startups on the NGX Technology Board index. "We want to prioritize the ability of our technology companies to export products and we are targeting Africa first and then eventually start selling to the rest of the world," Minister Tijani explained.
This decision is in line with the country’s plan to diversify its economy, therefore reducing its high dependence on oil revenues by capitalizing on its very buoyant and dynamic tech sector. According to Partech Africa, Nigerian startups captured $1.2 billion of the $6.5 billion raised in Africa in 2022. In 2021, they captured $1.8 billion of the $6 billion, against $307 million of the $1.43 billion in 2020 and $747 million of the $2 billion in 2019.
Apart from being the country whose startups attract the most funding in Africa, Nigeria also hosts four of the eight unicorns on the continent. Those unicorns are namely Chipper Cash, Flutterwave, Interswitch, and Opay. Flutterwave co-founder Olugbenga Agboola, who took part in the event in New York, explained that his company would bank on the project and capitalize on the opportunities offered to evolve and bring more value to its customers and investors.
"We will continue to do a lot of work that makes us able to attract local capital and the day tech start-ups come to the exchange, we are confident that there would be a very good audience of investors that would want to own a bit of their shares. This is what we at NGX are doing by removing all barriers for that to happen," says Temi Popoola, Chief Executive Officer of NGX.
Adoni Conrad Quenum
To fulfill its digital transformation ambitions, the Chadian government is multiplying initiatives with key partners.
The Secretary General of the Ministry of Telecommunications and Digital Economy of Chad, Mahamat Saleh Ibrahim, and the Vice President and General Manager of Huawei CEMAC zone, Léo Lingyu Kong, signed a memorandum of understanding on Saturday, September 23 in Shanghai, on the sidelines of Huawei Connect 2023.
Under the terms of the agreement, Huawei is committed to becoming a key partner of the Chadian government and supporting it in its mission to build a favorable ecosystem for the emergence of digital talents in Chad.
"In the era of the digital economy, digital talent is key, and Huawei is committed to transferring and sharing ICT knowledge and skills, continuously improving digital competencies, and supporting the development of local digital economies and emerging industries," the ministry said in a note posted on social networks.
This initiative is part of the National ICT Modernization Project, financed by a concessional loan granted by the Chinese government to the Chadian government. In its first phase, which is still underway, the government benefited from the support of Huawei and other partners such as telecom operators Moov and Airtel.
Launched in 2020, the project is divided into several components, namely the construction of a national data center, the building of a 1,200 km fiber optic network crossing the country from south to east, a 50 km fiber optic loop around the city of N'Djamena, the modernization of the Sotel Tchad group's network through the construction of 200 2G/3G/4G sites, and the extension of subscriber capacity from 300,000 to 1,000,000.
All these initiatives underway in the country were reviewed in Shanghai by the Chadian delegation and Huawei vice-president Richard Jin. The second phase of the project was also discussed.
Samira Njoya
True to its mission, which is to assist African countries “in their efforts to achieve economic development and social progress,” the AfDB is signing strategic partnerships to enable every member country to capitalize on the opportunities offered by the ongoing tech revolution.
On Thursday, September 21, the African Development Bank (AfDB) and American technology giant Google announced the signing of a letter of intent during the Global Africa Business Initiative at the UN General Assembly in New York. The aim is to harness emerging technologies, expand and improve technology infrastructures, and develop talent and skills to accelerate digital transformation on the continent.
"Our journey from a 2% telephony penetration in 1998 to today's era of 4G, 5G, and AI signifies immense progress. With 70% of sub-Saharan Africans under 30, our focus is on catalyzing businesses to create jobs and offer innovative solutions," says AfDB President Akinwumi Adesina (photo, center).
African countries are accelerating digital transformation with various programs and projects. They are multiplying partnerships to this end, and all sectors of activity are being positively impacted. The establishment of ecosystems and regulations to encourage the proliferation and emergence of startups is also at the heart of many governments' actions, fostering collaboration with global technology giants such as Google, Huawei, and Microsoft.
In collaboration with the AfDB, which has already injected more than $1.9 billion into various digital-related projects on the continent, the Mountain View firm will offer, among other things, “technical assistance to bolster entrepreneurs and small and medium-sized enterprises in digitizing their businesses, securing financing, mastering digital marketing, and advancing private sector development.”
Adoni Conrad Quenum
For the first cohort, Investing in Innovation selected 31 startups. This time, it has selected 29 startups operating in healthcare technologies, particularly in healthcare supply chains.
Last Tuesday, the pan-African initiative Investing in Innovation (i3) announced the second cohort of its i3 program. The cohort comprises 29 startups from ten African countries. The startups will take part in the annual market access event in Nairobi from November 14 to 15, 2023.
"Selected startups receive introductions to leading potential customers in industry, donor agencies and governments, a $50,000 grant, and tailored investment readiness support from leading accelerators Villgro Africa, IMPACT Lab, Startupbootcamp Afritech, and CcHUB," we learn.
For the startups selected for this second cohort, 38% are headed by women, and 17% are active in French-speaking Africa, a region that is "less attractive" to foreign investors. Against a backdrop of slowing startup fundraising in Africa, these various programs show that the African technology sector is still attractive.
According to Kieran Daly, Director of Global Health Agencies and Funds at the Bill & Melinda Gates Foundation, the program, supported by the Bill & Melinda Gates Foundation and sponsored by the likes of Cencora and Microsoft, complements state and international initiatives to improve health outcomes and strengthen local health systems. “Programs like i3 help us understand, support, and engage with technology-driven solutions emerging across Africa, hand-in-hand with our partners,” he added.
Adoni Conrad Quenum
Tourism is a key economic sector in Namibia. At a time when the government is struggling to showcase the country’s attractions, digital solutions could contribute to the effective implementation of ongoing projects.
LEFA Transportation Services, a Namibian e-mobility solution that connects drivers and passengers via its digital platform, announced on Monday, September 18 a partnership with Google Maps, the global online mapping service developed by Google.
The partnership aims to showcase Namibia's vast expanses on Google Street View, a virtual navigation service that complements Google Maps and Google Earth by enabling 360° panorama views.
"By making the nation’s natural wonders, historic sites, and urban landscapes accessible with the click of a button, potential tourists can be enticed to experience the beauty of Namibia first-hand," said Melkies Ausiku, founder and general manager of LEFA Transportation Services.
As part of this ambitious 17,000 km project, Google Maps will carry out a major update on Namibia. Eventually, locals and visitors alike will discover greater precision in the names of the streets and newly mapped roads.
According to Melkies Ausiku, the project will provide an authentic and comprehensive digital representation of Namibia. The digital representation will thus serve as an innovative marketing tool, opening up opportunities for businesses to attract a global customer base. Local businesses, from charming accommodations to restaurants, cultural sites, and tour operators, will benefit from unrivaled visibility.
Samira Njoya
After convincing ByteDance, TikTok's parent company, to open a regional office in Kenya, President William Ruto wants to convince other global tech giants to do the same.
On Friday, September 15, William Ruto (photo, left) met with the heads of several American multinational technology companies in San Francisco. The aim is to convince these firms to invest in Africa, particularly in his country, Kenya.
"Kenya is your gateway to the Silicon Savannah [Kenya's technology ecosystem created as a local version of the U.S. Silicon Valley], to the East African Community, the most integrated regional market of 500 million, and a Pan-African market of 1.4 billion. If you build it in Kenya, it works for Africa, and if you set it up in Kenya, your African footprint is guaranteed," the Kenyan president said.
Kenya, Egypt, South Africa, and Nigeria are the countries attracting the most investment in Africa's technology sector. On a continental scale, Kenya is a mature ecosystem, and the executive is doing what's necessary to attract more capital and investors. In August 2023, after a virtual meeting with President Ruto, Chinese giant Bytedance’s executives decided to open offices in the country.
“Kenya is a full package investment destination; economically stable, entrepreneurial, secure, innovative with a favorable tax environment, skilled labor force, technological expertise, green energy credentials and a gateway for six undersea fiber-optic cables providing reliable data connectivity,” the president told investors in Silicon Valley.
Several executives and/or representatives of the technology firms present at the meeting were won over by the President's speech. Apple Chairman and CEO Tim Cook is reportedly considering the creation of a developer academy and also plans to exploit the potential of the country's green data centers. Google wants to invest several million dollars to strengthen its digital training and innovation initiatives on the continent. As for Visa, the fintech company has already chosen Kenya as the location for its global digital innovation studio.
Adoni Conrad Quenum
For years now, drones have proven their worth in many fields. By providing aerial views of a given area, they give the ability to capture data that was previously inaccessible, making their use more important than ever.
Last Friday, the Rwanda Investigation Bureau (RIB) and the Ministry of the Environment jointly launched the use of drones to combat environmental crimes in the country.
The first drone, dubbed "Inganji I", will monitor, detect, and collect evidence that will be used to prosecute those engaged in activities that degrade the environment.
"The drones will help to respond to and control activities that damage our environment including land degradation, water pollution, and illegal logging in protected areas," said Environment Minister Jeanne d'Arc Mujawamariya (photo, center). According to the government official, who cited a recent report, illegal mining, community encroachment into protected areas and water pollution are the most environmentally degrading activities in the country.
The launch of this first drone is part of a long-term green growth and climate resilience strategy and an ambitious climate action plan set up a few years ago by the Rwandan government. The aim is to reduce carbon emissions by 38% by 2030 and achieve carbon neutrality by 2050.
The use of drones will thus play a crucial role in achieving these objectives. Among other things, it will help environmental inspectors carry out their tasks, collect information in prohibited areas, and provide accurate data.
Samira Njoya
In addition to strengthening its presence in the region, the investment will enable the Nigerian company to provide secure and transparent payment services to consumers and businesses in Kenya.
Nigerian payment solutions provider Flutterwave recently announced plans to invest $50 million in Kenya. Olugbenga Agboola (photo, center), CEO and co-founder of Flutterwave revealed this during a media interview in the country's capital, Nairobi.
According to the CEO, the investment will be deployed as soon as the company receives regulatory approval from the Central Bank of Kenya (CBK).
"We are very optimistic about Kenya and once we get the license, our team in the country is ready to deploy the very next day. [...] We are happy we are going through the process of approval. We didn’t chicken out. We stayed the course even when everything stopped. The current administration is very supportive," he said.
Flutterwave's announcement comes a week after the company signed a partnership agreement with Indian financial institution IndusInd Bank to expand its services to India.
As far as Kenya is concerned, Flutterwave announced last April that it would be setting up its main operating station in Nairobi, for the East African market. This investment will be used to hire staff and develop Flutterwave's infrastructure in Kenya. Olugbenga Agboola also noted that the company already has more than two dozen employees in Kenya.
Founded in 2016 by Nigerians Olugbenga Agboola and Iyinoluwa Aboyeji, Flutterwave is now present in some 30 African countries. The Lagos and San Francisco-based startup is valued at around $3 billion.
Samira Njoya
With an Internet penetration rate of 33.63% in 2021, Liberia is gearing up to accelerate its digital transformation. To achieve this, the country needs strong allies it can count on.
At a workshop held on Tuesday, September 12 under the theme "Building a Digital Liberia- Bridging Vision and Transformation for Unleashing Future Development," the World Bank announced that it will support Liberia's digitization efforts to drive meaningful growth and development.
The UN organization will harness the power of technology to drive innovation, improve governance, and create economic opportunities for all Liberians, says Georgia Wallen, World Bank Country Director for Liberia.
"We’ll assess Liberia’s digital transformation journey and also look ahead — what can Liberia’s digital transformation economy look like in the future? [...] So, this is not only about adopting technology that is sustainable and benefits all but rather creating an entirely digital environment that is inclusive," she added.
The country is lagging in the digital transformation process compared to other African countries. However, it intends to catch up in this sector. According to data from the International Telecommunication Union, the country's Internet penetration rate is steadily rising. From 18.9% in 2018, it reached 33.63% in 2021.
For Worlea Saywah Dunah, Liberia's Minister of Posts and Telecommunications, the workshop is in line with the government’s strategy to transform the Liberian economy and enhance social development.
Social and economic development are the visions “ we aspired to as a nation in developing a vibrant ICT sector and this vision is captured in the President’s flagship agenda, which is called the PAPD. We are beginning to work with stakeholders in the sector and development partners to develop a 5-year national digital transformational agenda that will meet the best ICT standards through which we can achieve social and economic development as enshrined in the PAPD,” he said
Adoni Conrad Quenum
Apart from science and technology, engineering is one of the most important sectors of the Nigerian economy. It is therefore important for professionals in the sector to digitize their activities to capitalize on the digital opportunities.
The Nigerian Society of Engineers (NSE), the umbrella organization of engineering professionals in Nigeria, inaugurated its Innovation Center in Abuja on Wednesday, September 13.
According to its executives, the new center will serve as a sanctuary for engineers and professionals to collaborate and innovate, and offer training and resources to facilitate the adoption of digital technologies by businesses and organizations.
According to Tasiu Sa'ad Gidari-Wudil, President of the Nigerian Society of Engineers, the aim of the center is to empower Nigerian engineers, allowing them to deliver on what is expected from them. "The innovation hub is where Engineers will come with ideas, research and develop” those ideas before commercializing the end products to the public and stakeholders, he added.
The 600 million naira ($780,000) center will integrate technologies, services, tools and data analysis. It will also offer smart business solutions to members, facilitating the learning curve by providing available resources, with an e-library accessible both online and on company premises.
The implementation of the center is in line with one of the administration's priorities to ensure ease of doing business and greater transparency within the profession.
Once completed, the center will also serve as a space to explore the immense potential of artificial intelligence and the Internet of Things. The idea is to find solutions to complex challenges, revolutionizing industries and the way we interact with the world around us.
Samira Njoya
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For several years now, Cassava Technologies, through its subsidiaries Liquid Intelligent and Liquid Dataport, has been stepping up investments in connectivity infrastructures in Africa.
Earlier today, September 13, Liquid Intelligent Technologies, one of the subsidiaries of pan-African group Cassava Technologies, announced the launch of two fiber optic routes: one linking Kenya and Ethiopia, the other Zambia and Malawi. The aim is to improve broadband connectivity in these countries and stimulate technological innovation.
“All initiatives undertaken by businesses under Cassava Technologies work towards realizing our vision of a digitally connected future that leaves no African behind. The completion of these fiber links is yet another milestone achieved by Liquid, as it continues to lay the foundations of economic growth through increased access to high-speed connectivity,” says Hardy Pemhiwa, CEO of Cassava Technologies.
The about 1,000-km route linking Nairobi (Kenya) to Mega (Ethiopia) is being built in partnership with the Kenya Electricity Transmission Company (KETRACO) and Ethiopia Electric Power (EEP). It offers a capacity of four terabytes per second and will enable Ethiopian companies to access Kenyan data centers and the cloud. "Kenyan and Ethiopian businesses are rapidly adopting digital technologies, and this new link will enable trade and investment between these two great nations in our region," says Adil El Youssefi, CEO of Liquid Intelligent Technologies Rest of Africa.
The second route (711 kilometers long) provides a direct and reliable connection to content caches and data centers in South Africa.
Earlier this year, the pan-African company signed a partnership with Zambia to accelerate the country's digital transformation and provide reliable, and affordable connectivity to the population. Last May, it also announced the construction of roads linking Mombasa in Kenya to Muanda in the DRC, via Rwanda and Uganda.
Adoni Conrad Quenum
Africa’s most valued startup (with $3 billion in estimated value) will now be able to offer major currencies like the US dollar, the Euro, and pound sterling to users in Nigeria.
On Monday, September 11, Nigerian unicorn Flutterwave announced the launch of a new solution called "Swap". Designed in partnership with Wema Bank and Kadavra BDC, and backed by the Central Bank of Nigeria (CBN), the Swap solution is billed as a secure and reliable digital platform that will give Nigerians immediate access to foreign currency at competitive exchange rates.
“At Flutterwave, our dedication to innovation is matched only by our commitment to simplifying financial processes for endless possibilities. Swap represents a significant leap forward in how Nigerians will engage with foreign exchange,” said Olugbenga Agboola (photo, left), co-founder and CEO of the unicorn.
Indeed, Nigeria has been facing several foreign exchange problems in recent years. One of these is a $10 billion foreign exchange backlog, which the CBN aims to resolve within the next two weeks. This backlog includes dollar claims from manufacturers, importers, business and personal travel allowances, as well as medical bills incurred abroad.
According to CBN Acting Governor Folashodun Shonubi, Swap will solve two critical problems plaguing Nigeria's foreign exchange market: the lack of synergy between financial institutions and a heavy reliance on cash transactions.
In the short term, Flutterwave will introduce a convenient card-issuing system for Swap users. The company plans to distribute over 10 million of these cards to Nigerians by October, enabling them to quickly resolve issues such as Personal Travel Allowance (PTA), and Business Travel Allowance (BTA) to facilitate their educational pursuits, commercial endeavors, and various travel requirements.
Samira Njoya
Greentech startups are rapidly emerging in Africa with firm conviction that new technologies will play a key role in supporting sustainable development on the continent.
Catalyst Fund, a private equity fund investing in early-stage, climate-focused startups in Africa, has reached the first closing of its $40 million fund. Last Wednesday, the fund announced a first closing, at $8.6 million, with support from investors like FSD Africa Investments (FSDAi), the Cisco Foundation, USAID (Prosper Africa), and technology investor Andrew Bredenkamp.
The Kenya-based fund, headed by French impact investor Maelis Carraro, plans to invest in around 40 start-ups, including 20 this year. Eligible companies will receive funding of up to $200,000 for pre-seed startups, $500,000 for seed-stage companies, and $1.5 million in Series A financing for more mature companies.
“By blending equity investments with hands-on venture building, we believe we can unlock tremendous potential for innovative companies on the continent. Supporting ventures at the pre-seed stage requires more than capital. Our venture builders are the engineers, data scientists, and growth marketing experts who can supercharge founders’ journeys toward building scalable and highly impactful ventures," says Maelis Carraro.
Climate change is a global reality but Africa is the continent most vulnerable to its adverse effects despite contributing just 3% of global carbon emissions. It is therefore important to invest in startups that are active in the fight against climate change on the continent. According to a report published, in February 2023, by technology business accelerator AfricArena, such startups raised a total of $1.17 billion in 2022, of which $863 million was invested in capital.
By strategically focusing on solutions in agri-tech and fisheries management, food systems, insurtech and climate fintech, cold chain, waste management, and water management, Catalyst Fund aims to accelerate sustainable green growth. It will focus on solutions that can enable communities to better prepare for and manage shocks, adapt livelihoods to climate impacts, and build long-term resilience.
Samira Njoya
Nigeria aims to become one of the leaders in the African digital economy. To achieve its goal, it is signing partnerships with countries that share the same objectives.
Nigeria's Minister of Communication, Innovation, and Digital Economy, Bosun Tijani, signed two memorandums of understanding in New Delhi, India, last Wednesday. The first agreement, signed with the Indian Ministry of Electronics and Information Technology, aims to share the best digital solutions that would benefit citizens in both countries.
The second partnership, signed with the Central Square Foundation team, a non-profit organization working to ensure quality school education in India, aims to develop solutions that leverage technology to facilitate education in Nigeria.
“The collaboration between our countries gives us a platform to build on the upward trajectory of digital transformation as a driver of economic growth,” Dr. Bosun Tijani indicated in a post on X (formerly Twitter).
The MoU were signed on the sidelines of the 18th G20 Summit, to be held from Saturday, September 9 to Sunday, September 10 in New Delhi. They come at a time when the Nigerian government is stepping up efforts to attract additional investors to the country, increase funding to support Nigerian innovators and expand resources for local entrepreneurs. With such initiatives, the government wants to create one million jobs in the digital economy and improve digital literacy among the youth.
By choosing India to support those digital projects, Nigeria is making a strategic move. Indeed, in less than 10 years, India's digital penetration rate has more than doubled. In 2015, the world's fifth-largest economy launched "Digital India", an ambitious program to transform India into "a digital society and knowledge economy."
Samira Njoya