African startup funding continues to decline sharply with the first half of 2024 being the quietest semester since late 2020. This represents a significant drop from previous years, with the "Big Four" startup hubs of Nigeria, Kenya, Egypt and South Africa continuing to dominate the funding landscape
African startups raised $780 million in the first half of 2024, a 57% decline compared to the same period in 2023, according to data released on Thursday, July 4, by Africa: The Big Deal, a database tracking investments of over $100,000 in the continent's startup ecosystem.
Of the total funds raised, 66% ($513 million) were in the form of equity, while $254 million (33%) were secured as debt. Startups in the Big Four countries (Kenya, Nigeria, Egypt, and South Africa) accounted for 79% of the total funds raised during this period.
Kenya led with $244 million (32%), followed by Nigeria with $172 million (23%), Egypt with $101 million (13%), and South Africa with $85 million (11%). Among other countries outside the Big Four, Benin stood out with $50 million raised by the startup Spiro through debt from Afreximbank, while Ghana followed with $29 million, Uganda with $19 million, Morocco with $14 million, and Senegal with $11 million.
Transport and logistics startups, driven by Nigeria's Moove ($100 million) and Benin's Spiro ($50 million), led the sectors with $218 million, representing 28% of the total funds raised. Fintech followed with $186 million (24%), and startups in the energy and water sectors rounded out the top three with $132 million (17%)
Adoni Conrad Quenum
The Creative Industries Initiative for Africa (C.I.I.F.A.), in collaboration with Google, announces the launch of the second Engage Nigeria cohort.
Engage Nigeria offers training in music business, production, event planning, cinematography, animation, graphic design, and content creation. Participants benefit from mentorship and networking opportunities to enhance career readiness.
Application is open to individuals aged 17- 35.
Angel Fair Africa, the event linking African entrepreneurs with investors, returns for its eleventh edition on November 7-8, 2024. The gathering will unite accelerators, incubators, businesses, and investors from across the continent, aiming to foster deals and partnerships in the vibrant startup ecosystem.
Launched in September 2013, Angel Fair Africa has been pivotal in catalyzing investment across Africa, having been hosted in cities like Johannesburg, Lagos, Accra, and Cape Town.
With the acceleration of digital transformation, digital skills have become indispensable assets in Africa. To equip the population with these crucial competencies, strategic partnerships are being established.
Orange Mali, a subsidiary of telecom group Orange, has signed a partnership with the United Nations Development Programme (UNDP) to train 3,000 young people, particularly young women, in digital skills over a two-year period. The announcement was made via a press release issued by the UN body on Monday, July 1.
"With great pride and immense satisfaction, we announce the signing of this partnership agreement between UNDP Mali and Orange Mali. [...] Women, while representing an essential force, are underrepresented in the technology sectors," stated Maleye Diop, UNDP Resident Representative in Mali.
He added, "Our goal is to create a coherent vision of youth integration through concrete programs that allow them to become operational quickly. This project is just the first step towards other promising initiatives to come."
In an increasingly digital world, having digital skills has become indispensable. All sectors of activity are moving towards digitalization, and it is urgent to adapt to this new world. The World Bank, in its 2021 report titled "Digital Skills: The Why, the What and the How," emphasized that significant deficits in digital skills on the continent expose the economies of many African countries to the risk of falling further behind as the digital frontier rapidly evolves.
Orange Group, through its strategic plan "Engage 2025," prioritizes the development of digital skills on the continent. The proliferation of Orange Digital Centers in many countries across Africa, including Mali, and the signing of this partnership with UNDP are part of this plan. The pilot phase of the program has already been launched, aiming to train 200 young women in areas such as digital marketing, web development, graphic design, and video editing.
Adoni Conrad Quenum
He plays a key role in the development of ICT in South Africa. Through an innovative platform, he connects technology experts with clients seeking specialized services.
Sai Govender (photo), a South African tech entrepreneur, is the founder and CEO of Blue, a startup he established in 2020. Blue is an innovative platform that simplifies the search for talent and projects in the ICT sector, offering clients a wide range of professionals specializing in various fields such as software development, network infrastructure, cybersecurity, and data analysis. This enables clients to easily find consultants that meet their specific needs.
Blue also provides ICT consultants with opportunities to secure rewarding projects. Consultants can showcase their skills, references, and experiences on their profiles, allowing them to effectively respond to tenders, demonstrate their capabilities, and expand their professional network. This approach facilitates direct interactions between clients and consultants for their ICT needs.
In addition to Blue, Govender is the founder and CEO of Blue Pearl, a start-up he established in 2013. Blue Pearl develops cloud solutions and offers professional consulting services to complement business strategies and management. The start-up implements data analysis processes to provide relevant and useful insights to business leaders for decision-making.
Govender holds a degree in Information Systems Management, obtained in 2002 from Oval International Computer College, and a bachelor's degree in Accounting and Finance from the University of South Africa (UNISA), which he graduated from in 2005.
His professional career began in 1999 at Morar Incorporated, an accounting firm, where he worked as an audit manager. In 2004, he became a compliance auditor for the National Lottery Community Fund. The following year, he joined EY, where he held positions as senior associate, deputy director, and director. In 2010, he was appointed compliance director at Transnet Freight Rail, a logistics and freight transport company in South Africa. In 2015, he was promoted to director, responsible for performance reporting and business intelligence.
Melchior Koba
In Africa, rapid technological progress has delivered numerous benefits, but it has also introduced new threats that jeopardize individuals, businesses, and governments.
The Republic of Congo is taking steps to establish a National Commission for the Protection of Personal Data. The draft bill, presented by Minister of Posts, Telecommunications, and Digital Economy Léon-Juste Ibombo, was approved by the Council of Ministers on Wednesday, July 3.
"Indeed, the protection of personal data has become a major issue in the digital age. With the multiplication of information exchanges on the Internet, it is essential to ensure the confidentiality and security of citizens' personal data," explained Ibombo.
The National Data Protection Commission will be responsible for ensuring that personal data processing does not infringe on citizens' rights and freedoms. It will collaborate with international institutions and other African countries to share best practices and relevant information on cybersecurity threats. The Commission will also raise awareness among citizens and businesses about cybercrime risks and provide training on protective measures.
The creation of this commission is part of the Congolese government's efforts to strengthen current legislation, promote an attractive and secure economic environment, and ensure rigorous control over personal data use. Congo already has a National Information Systems Security Agency (ANSSI) and a law on personal data protection. It has also ratified the Malabo Convention on Cybersecurity and Personal Data Protection.
The Commission's implementation is expected to bolster the fight against cybercrime in Congo and across Africa. According to the 2024 Security Navigator report by Orange Cyberdefense, extortion cases increased by 70% in 2023, resulting in a 10% GDP loss on the continent. This alarming rise underscores the urgency of having an effective regulatory body to protect citizens' and businesses' data.
In recent years, Africa has witnessed the launch of numerous smart city projects aimed at bridging the technology gap affecting the continent.
Brigadier General Bonjean Rodrigue Mbanza, Gabon's Minister of Digital Economy and New Information Technologies, made an official visit to Cameroon on Tuesday, July 2 to explore technologies for a Smart City project in Gabon. The visit aimed to examine existing technologies and draw inspiration to support the development of the project.
According to a statement from the Ministry of Digital Economy, the visit included an inspection of the National Command Center for Video Surveillance and the Data Center in Yaoundé. This visit is part of the Gabonese government's efforts to seek partners and expertise for implementing Smart City projects in several Gabonese municipalities. In April, the minister also visited Shenzhen, China, where he met with Huawei executives and toured the tech giant's advanced infrastructure.
By exploring various technological solutions offered by multiple partners, Gabon aims to select the most suitable one for its needs. Similar to Smart City projects already deployed in several African cities, the Smart City initiative in Gabon aims to address complex urban challenges by creating intelligent urban ecosystems. These ecosystems will focus on areas such as planning, infrastructure, population management, and more.
This ambitious initiative demonstrates Gabon's commitment to integrating cutting-edge technologies into its urban development strategy. The project seeks to improve the quality of life for its citizens and position the country as a regional leader in smart cities.
Samira Njoya
In Africa, the fintech sector stands out as the most attractive. In 2022, Norfund decided to also position itself in this segment alongside strategic partners.
Norfund, a Norwegian state-owned investment fund, announced on Wednesday, July 3, a $20 million investment in a new fund by the British private equity firm Apis. Named Apis Growth Markets III, the fund will invest in high-growth, technology-focused financial services companies worldwide, with a particular emphasis on Africa and Asia.
"Apis’ expertise in payment solutions and embedded finance is profound. Seamless and cashless digital payments can significantly boost productivity and enhance digital inclusion, an area where Apis truly excels. In addition, we recognize the vital role of embedded finance in helping entrepreneurs and small businesses access the productive assets they need to thrive," said Kathy Chang, Investment Director at Norfund.
This investment comes at a time when funding for start-ups is declining globally. In Africa, funds raised by the continent's start-ups in the first half of this year fell by 56% compared to 2023, amounting to $530 million, according to data from Disrupt Africa. The scarcity of large deals over $100 million (funding winter) and the refocusing of investments by major global funds not primarily focused on Africa may explain this drop in funding.
Apis Growth Markets III plans to finance between 10 and 15 fintech start-ups. Amounts between $60 million and $70 million will be injected into various young companies for upcoming equity stakes.
Adoni Conrad Quenum
After completing an acceleration program at EtriLabs, the healthtech company launched into the African market and quickly distinguished itself on the continental tech scene. The company continues to steadily progress and harbors big dreams for the future
Rema, an e-health solution developed by a Beninese startup, enables doctors and medical students to collaborate remotely and receive continuous training. Based in Cotonou, the startup has been led by Sedric Degbo since 2019. Its mission is to improve the quality of healthcare decisions in Africa by ensuring the reliable and rapid transfer of medical and scientific knowledge and data among individual and organizational healthcare stakeholders.
The mobile application is available on both iOS and Android and has been downloaded over 10,000 times from Play Store. After downloading, users create an account by filling out a registration form and providing proof of their professional or student status. The registration is manually verified, as account creation is restricted to doctors and medical students (at least in their second year of study).
Once registered, users can access various services offered by the startup. These include Rema Learning, which allows users to attend live or recorded interactive medical conferences hosted by international experts and explore clinical cases shared by peers; Rema Jobs, which curates job opportunities for healthcare professionals in Africa; Rema Business, which enables targeting and engaging a specific audience within the community for various purposes (medical surveys, brand awareness, influencer campaigns, etc.); and Rema Pharma, a service for non-community members needing confidential consultations with a pharmacist for tailored advice. This service requires users to save the start-up's number and contact it via WhatsApp. The telepharmaceutical consultations often involve recommendations for preventive health practices, over-the-counter pharmaceuticals, or health center referrals.
Rema also functions as an online community and social network for medical professionals. Users can make posts to seek opinions from other doctors. "There are two posting modes on REMA: 'Quick Post' and 'Clinical Case'. In 'Quick Post' mode, you access a publishing interface with a text field and an image upload button. In 'Clinical Case' mode, the interface includes fields to describe your case, add images, and select specialty and anatomical tags to identify your case," explains the e-health platform.
With additional offices in Nouakchott, Mauritania; Dakar, Senegal; Lomé, Togo; and Douala, Cameroon, Rema aims to establish itself as the leading community for doctors and medical students on the continent. The start-up has garnered multiple awards, including the first prize for best start-up at inwiDays 2019 in Casablanca, Morocco; best digital start-up at FIDEA 2019; second prize for best African start-up at the AfricUp Pitch Challenge 2019 in Tunis, Tunisia; and an award for the best solutions from La Francophonie with the most impact during the peak of the health crisis in 2020.
Adoni Conrad Quenum
A trained accountant, he has extensive professional experience in the finance sector. As a serial entrepreneur, he currently serves as the CEO of a startup company specializing in carpooling.
Gabonese entrepreneur Jean-Arsène Houla-Houla is the founder and CEO of WebCars, a carpooling startup specializing in short-distance rides. Founded in 2020, WebCars started on WhatsApp and has since evolved into a platform that allows users to create carpooling groups with trusted individuals.
For passengers, WebCars provides the opportunity to plan their trips, avoid delays caused by public transportation shortages, and travel with peace of mind. For drivers, it serves as an additional source of income while transporting people they know.
In addition to his role at WebCars, Jean-Arsène Houla-Houla is a trainer at Em Gabon Business School, part of the Em Gabon-University group, specializing in management, administration, and economics. He also holds a position in trade finance at Euro Exim Bank.
Before creating WebCars, Jean-Arsène Houla-Houla founded Rehoboth Finance in 2016, where he served as CEO until 2022. In 2019, he launched Les Génies Solidaires (LGS), an investment fund that he currently leads.
Jean-Arsène Houla-Houla holds a general university studies degree (DEUG) in mathematics and physics from the University of Science and Technology of Masuku, obtained in 2006. In 2011, he earned a master's degree in accounting and finance from the National Institute of Management Sciences.
With a wealth of experience, Jean-Arsène Houla-Houla worked as a financial assistant at Citi bank in 2012. The following year, he became a financial analyst at JTC Consulting and later held the same position at Shell from 2013 to 2014. In 2021, he was appointed sales director at Router-switch.com, a global network equipment supplier, where he worked until 2022.
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The establishment of research centres for emerging technologiesholds significant implications for African development. By focusing on AI, IoT, blockchain, and other cutting-edge technologies, these centres can propel Africa towards technological advancement, fostering innovation and competitiveness on the global stage.
Nigeria's National Information Technology Development Agency (NITDA) announced plans to establish research centres for emerging technologies across the country's six geopolitical zones. These centres will focus on AI, IoT, and blockchain. The initiative was outlined during the ongoing (July 2-4) IoT West Africa Conference in Lagos.
NITDA Director-General Kashifu Inuwa outlined the initiative, underscoring the agency's commitment to fostering a robust technology research ecosystem. Represented by NITDA’s Director of Corporate Planning and Strategy, Aristole Onumo, Inuwa highlighted the creation of a special-purpose vehicle to oversee these research areas. "We aim to encourage development and support entrepreneurs to bring their ideas to market," Onumo emphasized.
In addition to funding research, NITDA will support Nigerian startups developing products in these emerging technologies. According to the 2023 report ‘Growing the Nigerian Technology Ecosystem through the Capital Market’ by Multinational professional services network of firms PricewaterhouseCoopers (PwC), from 2015 to 2022, tech startups securing funding surged by 1087%, from 55 to 653, with annual equity funding increasing by 1673%, from US$277 million to US$4.9 billion, citing Partech. The "big four" markets, Nigeria inclusive received 73% of Africa's tech financing, with Nigerian startups receiving half of this funding, the report adds.
To accelerate the growth of the tech ecosystem, it is worth noting that the Nigerian government has created initiatives such as the Finance Act 2020 that reduces taxes for start-ups and the Nigerian Startup Act 2022 providing a framework for the development of the Nigerian technology and innovation ecosystem.
The IoT West Africa conference underscores Nigeria’s rapid technological development and the telecoms industry's pivotal role in driving economic growth and digital transformation across West Africa.
Hikmatu Bilali
Investment in Data Centres is vital for African development, addressing the significant digital infrastructure gap. It enables better connectivity, supports economic activities, and fosters a more inclusive digital economy.
PAIX Data Centres, a leading pan-African data centre operator, has expanded its Accra facility to 1.2 MW, boosting the region's digital economy. The expansion, launched July 2 in Accra, is backed by a $30 million investment from Africa50 to enhance connectivity and economic growth.
Raza Hasnani, Managing Director at Africa50, said, "Our $30 million investment in PAIX Data Centres is part of our strategy to accelerate Africa’s digital transformation and sustainability practices."
The upgraded Accra facility, now one of Ghana's largest, supports ISPs, cloud providers, and enterprises with improved digital infrastructure. Located strategically, the data centre offers low latency connectivity to major regional and international networks and subsea cables, enhancing efficiency and performance.
Africa50's investment aligns with its strategy to attract capital for green data centres, fibre optic networks, and smart cities. The Accra facility features advanced cooling, waste management systems, and increased use of renewable energy, ensuring optimal performance and sustainability.
The "State of Africa Data Center 2024" report by Xalam Analytics estimated that only 10% to 30% of effective data centre demand in sub-Saharan Africa is being met, highlighting a gap that PAIX Data Centres' expansion aims to address. This expansion aligns with findings from the International Finance Corporation (IFC) e-Conomy Africa 2020 report, which projects that Africa's internet economy, boosted by enhanced connectivity and investments in digital infrastructure, could contribute up to $180 billion to GDP by 2025.
Hikmatu Bilali
Colombian fintech Minka has expanded into the East African market to facilitate global purchases for Africans by enabling global merchants to accept local payments, such as mobile money or cash.
Minka's model employs in-house financial protocols to accelerate money transfers between banks by creating a common language for different payment systems, simplifying the reconciliation process.
VezoPay has introduced Africa’s first smart ring, revolutionizing contactless payments across the continent.
This ring offers quick, secure payments in just a second, connecting seamlessly to any terminal using advanced NFC tokenization to encrypt data, approved by Visa and Mastercard.