Earnipay, which launched as a pilot last September, has already attracted the interest of investors. The fintech aims to reach nearly 200,000 employees with its flexible, on-demand payroll service by the end of 2022.
Earnipay, the Nigerian fintech that offers employees flexible and regular access to their salaries, has secured $4 million in pre-seed funding to accelerate its business in the country.
“Earnipay has quickly established itself with a product built specifically for the payroll behaviors of this region, and early employer uptake is very strong. Nonso (the MD, ed) has built one of the strongest teams that we’ve met on the entire continent, and we’re thrilled for the opportunity to partner with them,” said Brendan Dickinson, general partner at Canaan, the VC firm that led the deal.
After he faced employee departures due to the monthly payroll system instituted at his first-ever plastic waste recycling company, which launched in 2019 in Ghana, Nonso Onwuzulike decided to revamp that payment method by offering a more regular and flexible employee payroll system as part of a new business venture in Nigeria.
Earnipay, which was only launched on a trial basis last September, claims to have served employees of about 20 companies in Nigeria to date. Its app has been used more than 1,000 times. Confident in its growth prospects, Earnipay aims to offer its flexible, on-demand salary access service to at least 200,000 employees by the end of this year.
In Nigeria, salaries for employees in the formal sector are paid monthly, while those in the informal sector are paid daily, according to several local media. Short of cash between paychecks, employees have no other option than to borrow or to ask for an advance on their salary with sometimes high-interest rates. Earnipay's solution is therefore a relief for these employees.
Chamberline Moko
He is the founder of Insightiv, an AI and Teleradiology startup dedicated to improving medical imaging in Rwandan hospitals. The AI/ML engineer recently raised funds from the HealthTech Hub Africa and hopes to soon collaborate with Rwanda’s public health system.
In 2009, Audace Nakeshimana (picture) founded Insightiv, an AI and teleradiology startup. At the time, he was studying at the Massachusetts Institute of Technology (MIT) in the US. Besides being the founder and executive director of Insightiv, the Rwandan is also, since September 2020, a Machine Learning engineer at Apple. Setting up his business in Rwanda was motivated by the desire to involve local talent in technological development and his ambition to tackle African challenges.
Insightiv’s purpose is to provide easier access to medical imaging diagnostics. “Growing up, we heard stories about people who were sick and [didn’t] know what [they] had. Then that person [would come] home [and] they eventually die. It happens to a lot of people, especially in Africa - my grandma being one of them and actually one of my aunts. … If you really look at it, a lot of people die because of limited diagnostics,” Nakeshimana said.
Insightiv is developing advanced technology to help radiologists detect life-threatening diseases faster, by making medical imaging timely and accessible. The solution provides tools based on various image viewing modalities, giving medical imaging specialists access to a wide range of tools for better analysis. It allows them to create and submit reports using a single platform. As a cloud-based system, the Insightiv Diagnostics platform helps healthcare personnel focus on patient care rather than technical issues.
In 2020, Audace Nakeshimana was a finalist in the PKG Center's IDEAS Social Innovation Challenge, receiving $16,000 in funding. That same year, in December, he won the HealthTech Hub Africa competition and was awarded $30,000. The entrepreneur plans to use the funding to improve his service and reach out to legislators to collaborate with the public health system.
A decade from now, he plans to reach 10% of the Rwandan population with his rapid diagnostics solution.
"If you look today, the current health care system only has the capacity to diagnose about 200,000 to 300,000 patients [...] We think that if a private organization like Insightiv can take care of 10% of the population, that means we would be doing more than the national health care system is doing today. That's an ambitious, but realistic goal," the engineer claims.
Aïsha Moyouzame
Africans need good access to the internet to contribute to the digital economy. Well aware of this challenge, Orange has, over the past five years, increased its investments in network coverage on the continent.
Telecom group Orange and Sonatel, its Senegalese subsidiary, announced on February 16, 2022, their partnership with the Luxembourg-based satellite telecom services provider SES to expand broadband connectivity in Africa. In this framework, Orange and Sonatel will deploy and manage SES' O3b mPower gateway on the continent. O3b mPower, a next-generation medium earth orbit satellite communications system, will be deployed in Senegal at Sonatel's teleport site in Gandoul, and other local satellite sites.
Jean-Luc Vuillemin (photo), director of international networks at Orange, explained that the partnership with SES stems from Orange’s conviction that “satellite remains a technology of the future and that the recent innovations it has been experiencing will surely reinforce its position in the telecommunications industry, in Africa but also other regions with more developed infrastructure like Europe or North America.”
Demand for high-speed internet in Africa has gone up significantly since 2020. This demand was mainly driven by the Covid-19 pandemic which sped up the digitization of several services, as well as changed data consumption habits. However, despite a greater demand, the network coverage in Africa is still low - in rural areas especially. In 2021, the penetration rate for mobile Internet on the continent was 28%, according to the GSMA. The latter also reports that 206 million sub-Saharan Africans have no access to a mobile network; this is out of a population of 1,084 million in the region.
For Jean-Luc Vuillemin, the collaboration with SES “will play a key role in Orange’s mission to build intelligent and open networks that will help make digital technologies more accessible and used by as many people as possible.”
Adoni Conrad Quenum
Launched only one year ago, this startup has already established a large network of more than 10,000 grocers, to whom it offers discounts on major brand products. Its goal is to expand its network over the next few years.
WafR is a Moroccan startup that helps buyers and grocers get discounts on products from department stores and supermarkets. Currently, over 10,000 grocers are part of the startup’s customer network - a number it seeks to increase to 50,000 a few years from now.
To meet its ambitions, WafR recently raised 3.5 million dirhams ($374,000). While disclosing the news on February 16, 2022, the startup said the operation’s proceeds would mostly be used to expand its network of grocers, speeding up its growth as well in the process.
“After the 300,000 dirhams commitment we first secured, many other investors showed interest in WafR and joined the funding round. As a result, we raised 3.5 million dirhams and our valuation reached 30 million dirhams,” commented Ismail Bargach (photo), WafR's co-founder, after the fundraising.
According to WafR’s estimates, in Morocco, grocery stores capture 85% of sales while department stores and supermarkets get the remaining 15%. To balance these statistics is the startup’s main mission: encourage more grocers to turn to the products of department stores and supermarkets.
Chamberline Moko
Cameroonian Emmanuel Assom’s (pictured) desire to migrate to Europe, nearly eight years ago, is now only a memory. The entrepreneur gave up on this dream to launch a healthcare solution that is already well adopted in his country. The health tech solution OuiCare was launched nearly six years ago. The promoter claimed that by the end of 2021, his solution had registered 3,000 customers, out of more than 20,000 users.
He developed OuiCare, basically as an e-health booklet, to replace the paper booklet and allow patients to always have their medical records available on smartphones or computers. This way, patients can be received in a health facility regardless of the city or country they are visiting. This idea came to him after his father died at a health center where he had gone without his medical records. Emmanuel says the doctors could have acted more quickly if they had had access to the file.
Before OuiCare was born, the entrepreneur, who studied computer maintenance, was a cleaner at a local company and a computer troubleshooter. At that time, he gathered enough money and moved to Europe where he started a business with some friends. In 2016, they founded ASTA (Advanced and Suitable Technologies for Africa), a web and mobile app development company for businesses and individuals. He later on created OuiCare.
Today, after several improvements, OuiCare is now composed of two platforms. The first, for patients, allows them to access doctors, teleconsultation, and their medical data. The second, for doctors only, allows them to monitor patients and manage their treatment. The startup, based in Yaoundé and Douala, is working to integrate other features such as the geolocation of pharmacies.
In 2021, Emmanuel Assom won the Orange Prize for Social Entrepreneur in Africa and the Middle East (POESAM). The healthtech company received €25,000 and support from local incubator ActivSpaces and French Bond'innov. OuiCare has also joined the Cameroon digital innovation center (CDIC), the new incubator launched on February 8, 2022, by the government. With some thirty doctors already registered, the startup hopes to extend its services to all regions of Cameroon and then to other African countries, such as Senegal, where administrative procedures have already been initiated.
Ruben Tchounyabe
In 2019, Alexis Bafcop and Géraud Lacaze, two Orange engineers, launched a solution in Abidjan, Côte d’Ivoire, to effectively meet the growing demand for online shopping delivery.
Named Mahali, the solution was presented during the 3rd edition of the Abidjan e-commerce Days in December 2019. It is a mobile geo-tracking app that allows a seller and a buyer to agree on a geolocated point of delivery, in a country where addressing is still weak. The tool integrates a database of locations fed in part by users themselves, who can fill in their address by indicating the city, the neighborhood, and landmarks with photos. The delivery man receives a code that, once registered on Mahali, allows him to access the necessary information and to propose a delivery time to the buyer. The solution enables buyers to pay via mobile.
"The team studied how people locate and describe a place in the region. We interviewed people in e-commerce warehouses, deliverymen, buyers, startup creators, etc., to understand the reality and the challenges they face," says Alexis Bafcop. The addresses created in Mahali can also be shared for other purposes, such as emergency services or to direct visitors.
The project benefited from the support and guidance of Orange's intrapreneurship body -Intrapreneurs Studio. Mahali also relies on the expertise of Orange entities such as Orange Labs Services, XDLAB (UX design), and receives great support from Orange Côte d'Ivoire teams: Orange Money, Enterprise Services, Customer Test Center and data scientists.
A year ago, Alexis Bafcop explained that "users are the ones who create the value of the app. So it's free. The more the delivery landmarks are used, the more reliable they will be. In two years, when the database is sufficiently reliable and complete, merchants will be the most likely to pay for the service.” The app will soon be launched in other countries including Senegal and Cameroon, the founders said.
Ruben Tchounyabe
Achieving a digital economy is a priority in the New National Development Plan (NDP) 2021-2025, unveiled in December 2021 by President Muhammadu Buhari. Several international partners expressed intentions to support the project.
The European Union has announced an investment of €820 million to support Nigeria’s digital transformation over the next three years. The information was unveiled on Saturday, February 12 in Lagos by an adviser to the Executive Vice President of the European Commission, Alejandro Cainzos. This was during a roundtable discussion with Nigerian youth organized at the Tony Elumelu Foundation.
“The EU will support building the fiber optic cables and data centers needed to improve Nigerian’s access to high-speed connectivity. The European Investment Bank (EIB) will invest €100 million to expand secure 4G connectivity in Lagos and Ogun States and triple the national data capability,” said Alejandro Cainzos.
He said the EU will also support the digitization of the Nigerian administration to enable citizens to benefit from better and more easily accessible public services. €250 million will be invested to strengthen Nigeria's digital identity infrastructure with the highest data protection standards and support the creation and scaling of tech startups and stimulate innovative solutions for Nigeria's society and economy.
The EU will help develop regulatory frameworks with the highest standards of privacy, security, and cybersecurity, while promoting an open Internet and a digital market that respects citizens' rights, Alejandro Cainzos said.
The EU investment in Nigeria came two days after the organization announced an investment of more than €150 billion in Africa over the next five years. European Commission President Ursula von der Leyen was in Dakar on Thursday, February 10, just days before the European Union-African Union summit to be held on February 17-18 in Brussels, Belgium.
Last year, the Nigerian government unveiled a new National Development Plan 2021-2025 which places digital technology at the heart of many growth issues.
Muriel Edjo
Less than a year after it raised $170 million, Flutterwave announced the completion of a Series D financing round, making it the highest valued African startup.
Nigerian payment processor Flutterwave announced it has raised $250 million in a Series D round to implement its expansion strategy. The company says it wants to attract new customers in its operating markets in sub-Saharan and North Africa, and continue its growth through mergers and acquisitions, and partnerships.
Flutterwave also plans to develop new innovative products after the series of services launched in 2021, such as the online market Flutterwave Market and the money transfer platform Send.
“We are delighted that investors believe in us and our story and are committing their resources to this belief. This latest funding demonstrates the conviction of some of the world’s leading investors in both our business model, team, and the Africa technology market. It gives Flutterwave the much-needed support to deliver on our plans to provide the best experience for our merchants and customers around the world,” commented Olugbenga Agboola, CEO of Flutterwave, following the fundraising.
Before this recent investment, Flutterwave had raised $170 million in Series C funding in March 2021, becoming an African unicorn, the third in the financial sector. From 2016 to 2020, Flutterwave claims to have processed more than 200 million transactions worth over $16 billion in 34 African countries. The fintech also says it has tripled its customer base to 900,000 businesses worldwide. Its valuation has more than tripled since its last funding round in March 2021.
Fintech companies remain the most funded, and African tech continues to grow with over $5 billion in funds raised in 2021, according to Sherif Makhlouf, Managing Director of consulting firm Boost.
Chamberline Moko
Mobile phones represent a key asset for African countries to accelerate their digital economies. However, a barrier to this goal is the high cost of the devices. To improve mobile penetration rate across its territory, the Algerian government announced last Feb. 13 it has approved "the abolition of all taxes and duties on e-commerce, mobile phones, computer equipment for personal use and startups." The measure is provided for in the 2022 finance law approved in December 2021.
By removing the tax on e-commerce, the government facilitates online transactions, especially for individuals who have become accustomed to buying tech devices abroad. For innovators and startup promoters, this is an opportunity to easily acquire technical equipment. In the Finance Act 2022, a cumulative rate of duties and taxes of 133.05% was applied for the purchase of smartphones and tablets, 60.22% for hard drives. This makes the tax more expensive than the actual imported device.
The tax removal measure came after weeks of protests by Algerians, who kicked off an online campaign using the hashtag #khelini_nechri (let me buy). During the 6th edition of the Forum "Rakmana," held on January 19 in Algiers, the Algerian Group of Digital Actors (GAAN) had also denounced these taxes that "go against the general interest."
According to the Alliance for Affordable Internet and the Global System Operators' Association (GSMA), the high cost of smartphones is one of the main barriers to mobile Internet penetration in Africa, where the rate was only 28% in 2020.
Muriel Edjo
South African Stitch announced it has obtained additional financing worth $21 million to support its expansion strategy. The startup, which develops digital financial solutions primarily for fintech companies, says it will invest the money in developing new services, growing its human resources, and strengthening its footprint in South Africa and Nigeria, where it operates. Stitch also plans to enter new markets including Ghana, Kenya, and Egypt with its low-cost, less fraud-prone solutions.
"We are super excited for the challenge ahead and grateful to be supported by some of the leading fintech investors, founders, and builders in the world,” the beneficiary startup said on LinkedIn. The resources are provided by a consortium of mostly foreign investors, some of whom had invested in Stitch in the past. These include The Spruce House Investment, PayPal Ventures, CRE Venture Capital, and Village Global, all of which are based in the United States.
As a reminder, in February 2021, the company secured $4 million to improve its offers and expand its team. Stitch launched in Nigeria in October 2021 to tap into the opportunities in the country. According to Kiaan Pillay (pictured), CEO of Stitch, Nigeria is not only one of the most populous countries in the world, but also one of the densest and most dynamic fintech ecosystems. “It is fast becoming a hub for engineering and product talent and a go-to-market for fintechs," he said when his company started operations in Nigeria.
In an article published in October 2021, Stitch noted that underinvestment in developer training and infrastructure has hampered the rapid growth of a fintech ecosystem in Africa. Yet, the continent has advantages (rising smartphone ownership and digital literacy) that could unlock the potential of this market.
Chamberline Moko
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Malawi has embarked since 2010 on the development of its financial ecosystem. Since then, the country has developed three strategies to achieve its goal, with the digital at the heart of the 2022-26 strategy.
The Malawian government reached a $14.2 million deal with the African Development Fund (ADF) -the concessional window of the African Development Bank (AfDB) Group- to make its digital payment system more efficient. The agreement was inked last February 10.
The project includes the extension of the Internet network, the digitization of more payment channels, the development of payment system interoperability, the introduction of digital payment solutions in various sectors such as agriculture. The ultimate goal is to improve financial inclusion in the country, especially for women, youth, and rural people. This will subsequently make business transactions more efficient, allowing small businesses to access new domestic and international markets.
The ADF’s investment aligns with Malawi’s Digitization, Financial Inclusion, and Competitiveness (DFIC) Support Project approved in December 2021 by the AfDB. Sosten Alfred Gwengwe, Malawi's Minister of Finance and Economic Affairs explained that “the DFIC project is aligned with the Malawi Digital Economy Strategy (2021-2026) and the Third National Strategy for Financial Inclusion (2022-2026); both contribute to achieving Malawi’s long-term objective of inclusive wealth creation supported by an inclusive financial system and digital economy.”
AfDB seeks, through the DFIC project, to help increase financial inclusion in Malawi from 58% in 2019 to 65% in 2025 (with 42% women and 37% rural populations); contribute to the improvement of the country's ranking in the Global Competitiveness Index (GCI) from 5.7% in 2019 to 7% in 2025.
The Bank also aims to contribute to increasing the export penetration rate (number of markets) from 79% (2018) to 100% (2025); increasing the volume of exports from 31% of GDP in 2019 to 35% in 2025, and improving the contribution of ICT to GDP from 5.7% in 2019 to 7% in 2025.
Adoni Conrad Quenum
Seven months after an initial investment, the Sawiris family office made a follow on investment in Egyptian propTech company Nawy. In a February 13 statement, the beneficiary reported it has raised $5 million in seed capital.
The resources will be used to support its expansion strategy in North Africa and improve investment in new technologies and the digital (artificial intelligence, machine learning, etc.).
The startup, which facilitates and simplifies the process of buying and selling real estate online, claims to have helped more than 60,000 people find a home to date. Nawy also says it has sold over $200 million worth of real estate through its platform.
"We were one of the first investors in Nawy because we saw the potential of the company and shared its ambition. We immediately increased our investment when we realized how fast they were expanding and the trajectory of the company coming to fruition. We are very excited about the future, especially as Nawy expands its services and continues its momentum in the real estate market," commented Onsi Naguib Sawiris, head of Sawiris family office who led the investment in Nawy.
As a reminder, the Sawiris family office led an undisclosed seed funding in Nawy in July 2021. The money was used to strengthen the company's technology, increase services and increase staff. In its July 2021 forecast, Nawy planned to end the year with 300% revenue growth.
Chamberline Moko
Led by the AfCFTA Secretariat, in collaboration with African regional economic communities and governments, the solution addresses the challenges related to the cumbersome process of implementing a single market.
On January 1, 2021, the African Continental Free Trade Area (AfCFTA) came into effect. Supported by 54 countries, its objective is to create a single continental market that promotes the free flow of goods and services. Given the size of the measures that must be undertaken by every member country, and to ensure the successful implementation of the market, the AfCFTA secretariat has developed the digital tool tradebarriers.africa. The latter is a kind of customer service that will allow African entrepreneurs to report cases of non-tariff barriers (NTBs) within the market. NTBs include excessive border fees, cumbersome documentation requirements, or restrictive product regulations.
NTBs are classified into seven categories: government participation in trade and restrictive practices tolerated by governments, customs, and administrative entry procedures, technical barriers to trade, sanitary and phytosanitary measures, specific limitations, charges on imports, others (transport, clearing, and forwarding, etc.).
To report an NTB, the user must first register on the platform by filling out a form. Next, they activate their registration on tradebarriers.africa via a link sent to the email address provided during registration for confirmation. Once this step is completed, the account is active, the reporting of an NTB is done with the "Report an NTB" button. A reporting form is then proposed to the user with information to be filled in.
According to the AfCFTA secretariat, once a non-tariff barrier is reported, the governments concerned will follow up to resolve the problem. The NTB coordination units of the secretariat, those of the regional economic communities, and the national focal points will support the process. The complainant can find out about his or her complaint - whether it is still being processed or resolved - directly on the platform, which is available in English, French, Arabic, and Portuguese.
For greater efficiency in reporting non-tariff barriers, the AfCFTA Secretariat is currently working on a service that will be accessible on mobile phones.
Adoni Conrad Quenum
Africa has the lowest per capita car ownership in the world, due to limited access to finance for vehicle purchases. This is a problem that Ladi Delano and Jide Odunsi hope to solve with their start-up Moove Africa.
Ladi Delano (photo, right) and Jide Odunsi (photo, left), are two UK-based Nigerian entrepreneurs who want to democratize mobility in Africa through new technologies. They founded Moove Africa, a start-up offering a digital platform where users and entrepreneurs in the transport sector have access to loan options for the purchase of vehicles. From the London School of Economics to Oxford University to MIT, the entrepreneurial duo has a remarkable academic background.
Ladi Delano, a serial entrepreneur, and Jide Odunsi, a former investment banker at Goldman Sachs and a former management consultant at McKinsey, have a combined 8 years of entrepreneurial experience, with three start-ups launched including Moove Africa. Sharing a passion for African development, they decided to dedicate their experience to this goal.
They officially launched Moove Africa in July 2020 after realizing that the demand for vehicles in Africa far exceeds local production, leaving millions of individuals and businesses to depend on imports of used cars, cars that are mostly not in a good condition. Also, some countries, like Nigeria, have put in place measures that limit car imports to boost local manufacturing. These measures make it even more difficult for Africans to get cars.
Moove Africa was therefore born to help people get access to quality vehicles. The start-up has an app where users can secure loans to buy a car. The loans can be repaid over 30, 36, or 48 months, in weekly installments. To date, Moove-financed cars have made over 2.6 million trips and traveled over 30 million kilometers in six markets, namely Lagos, Accra, Johannesburg, Cape Town, Nairobi, and Ibadan.
In less than two years since they launched the start-up, Ladi Delano and Jide Odunsi have successfully raised $78 million from investors, including $10 million in their latest round. The funds were secured on February 1, from NBK Capital Partners.
"The investment…will fuel our continued growth trajectory as we expand our regional operations to empower more mobility entrepreneurs," said Ladi Delano, co-founder, and CEO of Moove Africa.
On February 10, Moove Africa's founders announced a partnership with CFAO Motors, a division of CFAO Automotive, which operates in 36 countries. "We’re especially proud to be working alongside the largest automotive distribution network in Africa and as a result of this, we’re now in an even stronger position to empower a new generation of successful and productive mobility entrepreneurs,” said Ladi Delano.
Aïsha Moyouzame