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  • How Mobile Money Changed Africa

    How Mobile Money Changed Africa

    Venmo, Cash App, and Zelle are familiar names in the world of mobile-based digital payments in the West, having revolutionized how money is transferred and received by millions of people.

    But did you know that Africa has been ahead of the game with its own mobile money systems since as far back as 2007?!

    That’s right.

    Today, we take you on a journey of how Africa became the biggest mobile money player in the world.

    Where it all began

    Once upon a time, not too long ago, accessing financial services was a challenge for many Africans. Unlike in the U.S. or Europe, traditional banking services were often very limited, especially in remote and rural areas.

    But then mobile money.

    In 2007, Safaricom, a leading mobile network operator in Kenya, launched a mobile money service called M-Pesa. Little did they know that this innovative concept would spark a digital revolution that would sweep across the continent.

    M-Pesa, meaning “mobile money” in Swahili, allowed users to save, send, and receive money using just their mobile phones. This groundbreaking innovation proved to be a game-changer, enabling people without bank accounts to participate in the formal financial system.

    In 2007, Safaricom, a leading telecommunications company in Kenya, launched a mobile money service called M-Pesa. Image credit: African Markets

    The initial idea behind M-Pesa was to create a convenient way for Kenyans to transfer money securely. The service quickly gained popularity, as people in remote areas, where traditional banking services were scarce, embraced it as a means to conduct financial transactions with ease. 

    By 2011, over 50% of the Kenyan adult population had an M-Pesa account, rising to 90% in 2016.

    In no time, mobile money took root and started to grow, not only in Kenya but also in neighboring countries.

    M-Pesa was launched in Tanzania the following year and is now present in at least 10 countries.

    So, what made mobile money so popular? 

    Well, let’s unravel its magic! 

    Imagine a scenario: a hardworking individual in a rural village wants to send money to their family in the city.

    Historically, this would involve a long and costly journey, with the risk of loss or theft. But with a mobile money account, a few taps on a phone screen can instantly transfer funds to their loved ones, efficiently.

    One of the key factors that contributed to the rapid adoption of mobile money was its simplicity: all you needed was a basic mobile phone, and suddenly, you had a bank in the palm of your hand.

    No more long queues or complicated paperwork. Money transfers could be done with a few simple clicks.

    For deposits and withdrawals, mobile money agents, often found in local shops, act as the bridge between the digital and physical worlds, allowing users to convert cash into digital currency and vice versa.

    An M-Pesa agent attends to a user. Image credit: HBS Digital Initiative

    By 2010, M-Pesa had acquired 10 million active users and by 2016, it served almost 29.5 million active customers through a network of more than 287,400 agents. In the same year, the service processed around 6 billion transactions, peaking in December at 529 transactions every second.

    The success of M-Pesa in Kenya sparked a wave of enthusiasm. As word spread about the convenience and reliability of mobile money, its impact began to reverberate throughout the continent. 

    Impressed by the service, other African countries eagerly jumped on the mobile money revolution, building theirs in M-Pesa’s image. 

    Over the next few years, the service spread to countries like Uganda, Ghana, Rwanda, and South Africa as mobile network operators and financial institutions started realizing the immense potential of mobile money. 

    MTN launched its MoMo service in Uganda in March 2009 and in Rwanda in February 2010. Telesom ZAAD in Somaliland in 2009 and Hormuud launched EVC Plus in Somalia in 2011.

    By 2011, more than 100 mobile money services were operating in Africa, reaching people who previously had limited access to formal financial services.

    Africa continues to lead global adoption

    Fast forward to today, more mobile money services have emerged in Africa while mobile money accounts and transaction value on the continent continue to skyrocket. 

    Africa accounted for up to 70% of the world’s $1 trillion mobile money value in 2021 after mobile money transactions on the continent jumped 39% from $495 billion in 2020 to $701.4 billion. 

    Last year, that rose a further 22% to a jaw-dropping $836.5 billion (bigger than the GDP of Nigeria, Africa’s largest economy!) but its share of the global $1.26 trillion mobile money value fell to 66.4%. 

    Per GSMA’s 2023 State of the Industry Report, mobile money is growing faster in sub-Saharan Africa than in other regions except for the Middle East & North Africa.

    However, it’s not just about the numbers

    Perhaps its greatest achievement, mobile money has brought financial inclusion to millions of Africans who were previously excluded from the formal economy. 

    Data from the World Bank shows that around 45% of people living in Sub-Saharan don’t have access to a bank account. But mobile phones are widespread across the continent and are helping to bridge the financial gap.

    As of 2022, Sub-Saharan Africa had up to 763 million registered mobile money accounts, more than double the figures in the next closest region, and more Africans now enjoy access to a whole range of financial services that were previously out of reach.

    The innovative service has empowered women entrepreneurs, allowing them to take charge of their finances and contribute to their families’ well-being; facilitated access to education and healthcare; paved the way for exciting innovations such as mobile banking apps and digital wallets. 

    Beyond money transfers…

    Mobile money services in Africa have also quickly evolved beyond simple person-to-person money transfers and cash in-cash out.

    Providers have continually expanded their services, introducing innovative features to meet the diverse needs of their users.

    For instance, mobile micro-loans and savings accounts empower individuals to access credit and save money, fostering entrepreneurship.

    In Kenya, M-Shwari allows users to save money and access micro-loans directly from their mobile wallets, creating opportunities for entrepreneurs and small business owners.

    Partnerships between mobile money providers and other companies have expanded the range of services available, with users now able to pay their electricity and water bills via mobile money and purchase airtime from network operators. 

    Health organizations have integrated mobile money into their operations, enabling payments for medical services and health insurance premiums.

    Mobile Money also promises to transform cross-border money transfer and international remittances in Africa, driven by companies like MFS Africa, Mama Money, and Paga, to name a few

    More innovation on the horizon

    Despite its transformative effect across the continent so far, it’s clear that the mobile money revolution in Africa is far from over. 

    Innovations continue to emerge, including interoperability between different mobile money platforms, making transactions even more convenient. 

    The potential for digital lending, savings, and insurance services on mobile money platforms holds great promise for the future.

    As the mobile money landscape continues to evolve, so is the competition. Telecom companies, financial institutions, and fintech startups are all in the race to capture a share of this rapidly expanding market.

    This healthy competition will only lead to improved services, lower transaction costs, and increased accessibility for users.

    The growth of mobile money in Africa is nothing short of awe-inspiring. 

    From humble beginnings in Kenya, it has spread like wildfire, empowering individuals, driving economic development, and transforming societies across the continent. 

    As mobile money continues to evolve and expand its horizons, it remains one shining example of how technology is being harnessed to drive positive change in Africa.

  • The Tide Rises for Climate Tech in Africa

    The Tide Rises for Climate Tech in Africa

    The tide is rising for climate tech in Africa. Fueled by a surge in investor interest, the sector is witnessing a wave of innovation, with over 3,000 startups pitching their solutions for a climate-resilient future.

    A new report, “Investing in Climate Tech Innovation in Africa,” by Catalyst Fund, dives into the dynamics of this burgeoning sector, offering invaluable insights for investors, innovators, and stakeholders alike.

    Tap here to read our summary of the report

  • Comment suivre vos finances

    Comment suivre vos finances

    Gérer votre argent de manière efficace est une compétence cruciale qui peut conduire à la stabilité financière et au succès à long terme.

    Que vous commenciez tout juste votre parcours financier ou cherchiez à améliorer vos compétences en gestion financière, suivre vos finances est la première étape vers la réalisation de vos objectifs financiers.

    Dans ce guide, nous expliquons l’importance du suivi de vos finances et fournissons des conseils pour vous aider à commencer sur la bonne voie.

    Pourquoi suivre vos finances?

    Conscience: Suivre vos finances vous permet de comprendre clairement d’où vient votre argent et où il va. C’est comme créer une carte routière pour vos finances, ce qui vous permet de voir le tableau d’ensemble et de prendre des décisions éclairées.

    Imaginez que vous dépensiez 5 $ pour un café chaque jour avant le travail. En suivant vos dépenses, vous réalisez que vous dépensez 150 $ par mois rien que pour le café. Cette prise de conscience pourrait vous inciter à réduire à quelques fois par semaine, économisant environ 90 $ par mois.

    Établissement d’un budget: Créer un budget est une partie essentielle de la planification financière. En suivant vos dépenses, vous pouvez identifier les domaines où vous pourriez trop dépenser et apporter les ajustements nécessaires pour atteindre vos objectifs financiers plus rapidement.

    Gestion de la dette: Suivre vos dettes, telles que les cartes de crédit ou les prêts, vous aide à respecter les délais de paiement et à éviter des frais d’intérêt inutiles.

    Épargne et investissements: Suivre vos finances vous permet de mettre de l’argent de côté pour l’épargne et les investissements de manière plus efficace. Cela vous aide à comprendre combien vous pouvez économiser chaque mois sans compromettre vos dépenses essentielles.

    Commencer à suivre vos finances

    Rassemblez les informations financières: Rassemblez tous vos documents financiers, y compris les relevés bancaires, les factures de carte de crédit, les factures d’électricité et toute autre source de revenus ou de dépenses.

    Choisissez une méthode de suivi: Vous pouvez suivre vos finances en utilisant diverses méthodes, telles que :

    • Stylo et papier : Notez vos revenus et vos dépenses dans un cahier ou une simple feuille de calcul.
    • Applications mobiles : Il existe de nombreuses applications de budgétisation et de suivi des dépenses disponibles pour les smartphones, facilitant le processus.
    • Outils en ligne : De nombreuses plates-formes en ligne, comme Cowrywise, offrent des outils gratuits pour vous aider à suivre vos finances.

    Catégorisez vos revenus et dépenses: Divisez vos revenus et dépenses en catégories pour mieux comprendre vos habitudes de dépenses. Les catégories courantes incluent le logement, la nourriture, le transport, les loisirs et l’épargne.

    Enregistrez vos transactions régulièrement: La constance est la clé ! Prenez l’habitude d’enregistrer vos transactions quotidiennement ou hebdomadairement. Cela garantit que vous avez une image à jour de vos finances et évite le stress d’essayer de vous souvenir des dépenses plus tard.

    Analysez vos finances: Une fois que vous avez suffisamment de données, examinez vos habitudes de dépenses et identifiez les domaines où vous pouvez réduire vos dépenses ou réallouer des fonds. Cette analyse vous aidera à définir des objectifs financiers réalistes et à prendre des décisions éclairées sur votre argent.

    Faire les choses correctement

    La vie est pleine de surprises. Suivre vos finances vous permet de constituer un fonds d’urgence. Par exemple, lorsque votre voiture a besoin de réparations imprévues, vous pouvez couvrir les coûts sans dérailler votre budget mensuel.

    Suivre vos finances peut sembler intimidant au début, mais les avantages qu’il apporte à votre bien-être financier sont immenses.

    Avec une meilleure compréhension de où va votre argent, vous pouvez prendre des décisions plus éclairées, créer un budget, rembourser vos dettes et épargner pour l’avenir.

    N’oubliez pas que la constance et la détermination sont les clés du succès. Alors, commencez à suivre vos finances aujourd’hui et prenez le contrôle de votre avenir financier !

  • How to Track Your Finances

    How to Track Your Finances

    Managing your money effectively is a crucial skill that can lead to financial stability and long-term success. 

    Whether you’re just starting your financial journey or looking to improve your money management skills, tracking your finances is the first step towards achieving your financial goals.

    In this guide, we break down the importance of tracking your finances and provide tips to help you get started on the right track.

    Why track your finances?

    Awareness: Tracking your finances enables you to clearly understand where your money is coming from and where it’s going. It’s like creating a roadmap for your finances, which allows you to see the big picture and make informed decisions. 

    Imagine you spend $5 on a coffee every day before work. By tracking your expenses, you realize you’re spending $150 a month on coffee alone. This awareness might prompt you to cut back to a few times a week, saving around $90 monthly.

    Budgeting: Creating a budget is an essential part of financial planning. By tracking your expenses, you can identify areas where you might be overspending and make necessary adjustments to reach your financial goals faster.

    Debt management: Keeping track of your debts, such as credit cards or loans, helps you stay on top of payment deadlines and avoid unnecessary interest charges.

    Savings and investments: Tracking your finances allows you to set aside money for savings and investments more effectively. It helps you understand how much you can save each month without compromising your essential expenses.

    Getting started with tracking your finances

    Gather financial information: Collect all your financial documents, including bank statements, credit card bills, utility bills, and any other sources of income or expenses.

    Choose a Tracking Method: You can track your finances using various methods, such as:

    • Pen and paper: Write down your income and expenses in a notebook or a simple spreadsheet.
    • Mobile apps: There are numerous budgeting and expense-tracking apps available for smartphones that make the process easier.
    • Online tools: Many online platforms, like Cowrywise, offer free tools to help you track your finances.

    Categorize your income and expenses: Divide your income and expenses into categories to get a better understanding of your spending patterns. Common categories include housing, food, transportation, entertainment, and savings.

    Record your transactions regularly: Consistency is key! Make it a habit to record your transactions daily or weekly. This ensures you have an up-to-date picture of your finances and avoids the stress of trying to remember expenses later.

    Analyze your finances: Once you have enough data, review your spending patterns and identify areas where you can cut back or reallocate funds. This analysis will help you set realistic financial goals and make informed decisions about your money.

    Getting it right

    Life is full of surprises. Tracking your finances allows you to build an emergency fund. For example, when your car needs unexpected repairs, you can cover the costs without derailing your monthly budget.

    Tracking your finances might seem intimidating at first, but the benefits it brings to your financial well-being are immense. 

    With a better understanding of where your money is going, you can make more informed decisions, create a budget, pay off debts, and save for the future. 

    Remember, consistency and determination are key to success. So, start tracking your finances today and take control of your financial future!

  • CleanTech Drives FDI Flows to Africa

    CleanTech Drives FDI Flows to Africa

    Africa’s CleanTech landscape is experiencing an unprecedented boom, fueled by a combination of abundant renewable resources, a growing green consciousness, and significant international investment. 

    But clean energy investments remain concentrated in just a handful of countries while much of the continent’s clean energy potential remains untapped. The IEA estimates that Africa requires $2 trillion in investment to close this gap. 

    Foreign investors are keenly aware of this opportunity. In 2022, the sector led foreign direct investment into Africa, according to the Africa Attractiveness Report by global consulting giant EY, further cementing the technology industry’s central role in driving investments into the continent.

    Tap here to read our summary of the report

  • Meet the Jumia Mafia

    Meet the Jumia Mafia

    If you’re a keen follower of the African tech ecosystem, you must’ve heard of the Paystack, Careem, and Opay Mafia(s) by now. 

    But have you ever heard of the Jumia Mafia?

    For people not familiar with the name, though we hope there’s none, let’s give you a brief introduction to the company.

    An e-commerce giant

    Jumia started as an online retailer in Nigeria in 2012, co-founded by Jeremy Hodara and Sacha Poignonnec, ex-McKinsey consultants along with Tunde Kehinde and Raphael Kofi Afaedor.

    The company has since expanded to at least nine other African countries, where it offers several services, including digital payments and delivery. 

    In April 2019, the e-commerce operator became the first African startup to list on a major global stock exchange when it debuted on the New York bourse.

    One fact about Jumia that’s equally as impressive—as its NYSE IPO or standing as the continent’s largest e-commerce operator—but often overlooked is the impact that the company has had on Africa’s entrepreneurial ecosystem.

    Meet the Mafia

    Jumia has not only made waves in the African tech industry but also inspired a new generation of entrepreneurs who now run their respective exciting startups.

    Some of them include:

    • Tunde Kehinde and Ercin Eksin, co-founded Lidya, a Series B startup that provides SMEs with access to finance. The startup uses a credit-scoring system that analyzes a borrower’s online reputation and has raised $16.5 million since its launch.
    • Raphael Afaedor is another Jumia alumnus who co-founded Kyosk Digital, a platform that connects informal retailers using kiosks and other similar retail outlets directly to FMCG companies.
    • Maguelone Biau co-founded Twende, a ridesharing company that pools African city dwellers with the most direct, affordable, and reliable transport options.
    • Kayode Adeyinka is the CEO of Gigmile, a Techstars-backed startup building the services and financial infrastructure for the African gig economy.
    • Guy Futi runs ORDA, a startup he co-founded that offers cloud-based restaurant software built for African chefs and food business owners, as CEO.
    • Sam Chappatte’s Kapu is a new e-commerce platform that aims to “reduce the cost of living” in Africa. By sourcing directly from farms & manufacturers, creating a low-cost logistics model & minimal food waste, Kapu says it can sustainably pass on savings to its customers. These customers access even lower prices if they place the order as a group (“pamoja”).
    • Roger Xavier Macia, a former Chief Commercial Officer at Jumia Senegal, is now the co-founder of Lengo, a startup that combines AI technologies and retailer crowdsourcing to deliver real-time data on consumer goods for FMCGs in Africa.
    • Marie-Reine Seshie, Jumia’s former Head of Marketing in Ghana, is now the CEO and co-founder of Kola Market. The startup provides digital inventory management, marketing, and sales solutions to SMEs, powered by AI technology.
    • Omolola Oladunjoye, ex-Chief Commercial Officer at Jumia Nigeria, now runs Penda LLC – a fully integrated social commerce platform across Africa.
    • Joe Falter, a former executive at Jumia in the UAE for nearly eight years, co-founded Zapp, a startup that provides on-demand grocery delivery services, has raised around $300m, and is backed by some of the world’s leading venture investors.

    These are just some of the incredible startups that have been created by former Jumia employees.

    Jumia is one of Africa’s earliest tech companies and ranks among the region’s biggest startup success stories.

    So it comes as little surprise that former employees and founders have gone on to create their own incredible technology companies, disrupting various industries across the continent.

    By sector classification, well over half, or 70% of startups founded by Jumia alumni are either in retail, e-commerce, foodtech, or fintech. 

    This suggests that Jumia’s early success as an e-commerce giant has created a positive spillover effect, as former employees leverage their experience and networks to create new businesses in related industries such as retail, last-mile delivery & logistics, and digital payments – all crucial components of e-commerce.

    Naturally, working in a particular industry provides individuals with valuable insights into the workings of that industry and complementary ones.

    Hence, ex-Jumia employees are well-positioned to leverage their expertise and create innovative solutions to meet the needs of consumers in these industries. 

    And they’re doing so, successfully and with sufficient VC backing.

    Collectively, about 14 of such startups we tracked have raised around $330 million in venture capital funding, with over half of them at the seed stage or above. 

    This shows the talent and expertise that exists within the Jumia ecosystem, which has helped to create a vibrant startup culture out of emerging markets where it operates. 

    The funding also signals the emergence of a new generation of innovators who are able to attract significant investment and build successful businesses—a positive development for the tech industry.

    In addition, it reflects how the African startup ecosystem is becoming increasingly mature and sophisticated, with successful companies spawning new ventures and nurturing the next generation of entrepreneurs.

    Altogether, these startups have created around 1,300 direct jobs. 

    Jumia has served as a springboard for talented individuals who are contributing to the growth of not only Africa’s startup ecosystem but also globally, even after leaving the company.

    It’s impressive to see how the e-commerce giant’s success has paved the way for some of Africa’s most brilliant ‘techpreneurs’.

    Truly, great companies have the power to inspire incredible founders and fuel the growth of an entire entrepreneurial ecosystem! 

    By doing so, they help to build a stronger economy and a better future for all.

  • La règle 50/30/20 : Comment établir un budget efficace

    La règle 50/30/20 : Comment établir un budget efficace

    Gérer ses finances peut parfois sembler écrasant, mais avec la bonne approche, cela peut devenir une tâche simple et efficace.

    Une méthode populaire qui peut vous aider à prendre le contrôle de votre argent est la règle budgétaire 50/30/20.

    Dans ce post, nous allons décortiquer cette stratégie budgétaire de manière facile à comprendre, en utilisant des exemples concrets pour illustrer comment elle peut fonctionner pour vous.

    Qu’est-ce que la règle budgétaire 50/30/20 ?

    La règle budgétaire 50/30/20 est une ligne directrice qui vous aide à répartir vos revenus en trois catégories distinctes : besoins, envies et épargne.

    En divisant vos revenus de cette manière, vous pouvez créer un budget équilibré qui vous assure de couvrir vos dépenses essentielles, de vous permettre des dépenses discrétionnaires et d’épargner pour l’avenir.

    Plongeons dans chaque catégorie :

    50 % pour les Besoins

    La première catégorie, qui devrait représenter environ 50 % de vos revenus, englobe vos besoins essentiels. Cela inclut :

    • Loyer ou remboursement hypothécaire
    • Services publics (électricité, eau, gaz)
    • Courses
    • Frais de transport (commutation, carburant, transports en commun)
    • Cotisations d’assurance maladie
    • Paiements minimums de dettes (cartes de crédit, prêts)

    Si vos revenus mensuels sont de 3 000 $, votre catégorie de besoins ne devrait pas dépasser 1 500 $. Cela signifie que si votre loyer est de 800 $, les services publics coûtent 150 $ et les courses s’élèvent à 250 $, il vous reste encore 300 $ pour couvrir d’autres dépenses nécessaires.

    30 % pour les Envies

    La deuxième catégorie, représentant environ 30 % de vos revenus, se concentre sur vos dépenses discrétionnaires et vos envies. Cela inclut :

    • Sortir manger
    • Divertissement (films, concerts, loisirs)
    • Services d’abonnement (plateformes de streaming, adhésions à la salle de sport)
    • Achats d’articles non essentiels

    Avec un revenu mensuel de 3 000 $, votre catégorie d’envies devrait être limitée à 900 $. Supposons que vous décidez de dépenser 200 $ pour manger dehors, 100 $ pour le divertissement et 200 $ pour les achats. Après déduction de ces dépenses, il vous reste encore 400 $ pour d’autres envies éventuelles.

    20 % pour l’Épargne

    La dernière catégorie est dédiée à l’épargne et devrait représenter au moins 20 % de vos revenus. Cette partie vous permet de constituer un fonds d’urgence, d’épargner pour des objectifs à long terme et d’investir pour l’avenir. Certaines options d’épargne comprennent :

    • Constituer un fonds d’urgence
    • Contribuer à des comptes de retraite (401(k), IRA)
    • Investir dans des actions ou des fonds communs de placement
    • Économiser pour un acompte sur une maison
    • Rembourser les dettes plus rapidement

    Avec un revenu mensuel de 3 000 $, votre catégorie d’épargne devrait s’élever à 600 $. Cet argent peut être utilisé pour constituer un fonds d’urgence, contribuer à un compte de retraite ou travailler vers d’autres objectifs financiers.

    Pourquoi utiliser la règle budgétaire 50/30/20 ?

    La règle budgétaire 50/30/20 fournit un cadre clair pour gérer votre argent et garantit que vous répartissez vos revenus de manière à couvrir vos besoins essentiels, à permettre des dépenses discrétionnaires et à encourager l’épargne pour un avenir sécurisé. Elle vous aide à trouver un équilibre entre profiter du présent tout en vous préparant également pour demain.

    L’importance de l’établissement d’un budget

    Établir un budget est une compétence essentielle pour atteindre la stabilité financière et la tranquillité d’esprit. La règle budgétaire 50/30/20 offre une approche simple pour gérer votre argent et constitue une base solide pour les débutants.

    En mettant en œuvre cette règle, vous pouvez prendre le contrôle de vos finances, prioriser vos dépenses et progresser vers vos objectifs financiers à long terme.

    N’oubliez pas, cette ligne directrice budgétaire est flexible et peut être ajustée en fonction de votre situation.

  • The 50/30/20 Rule: How to Budget Effectively

    The 50/30/20 Rule: How to Budget Effectively

    Managing your finances can feel overwhelming, but with the right approach, it can become simple. 

    One popular method that can help you gain control over your money is the 50/30/20 budget rule. 

    In this post, we’ll break down this budgeting strategy in an easy-to-understand way, using real-life examples to illustrate how it can work for you.

    What is the 50/30/20 Budget Rule? 

    The 50/30/20 budget rule is a guideline that helps you allocate your income into three distinct categories: needs, wants, and savings. 

    By dividing your income in this way, you can create a balanced budget that ensures you cover your essential expenses, indulge in discretionary spending, and save for the future.

    Let’s dive into each category:

    50% for Needs

    The first category, which should consume around 50% of your income, comprises your essential needs. These include:

    • Rent or mortgage payments
    • Utilities (electricity, water, gas)
    • Groceries
    • Transportation costs (commuting, fuel, public transportation)
    • Health insurance premiums
    • Minimum debt payments (credit cards, loans)

    If your monthly income is $3,000, your needs category should not exceed $1,500. This means that if your rent is $800, utilities cost $150, and groceries amount to $250, you still have $300 left to cover other necessary expenses.

    30% for Wants

    The second category, accounting for approximately 30% of your income, focuses on your discretionary spending and wants. This includes:

    • Dining out
    • Entertainment (movies, concerts, hobbies)
    • Subscription services (streaming platforms, gym memberships)
    • Shopping for non-essential items

    With a $3,000 monthly income, your wants category should be limited to $900. Suppose you decide to spend $200 on dining out, $100 on entertainment, and $200 on shopping. After deducting these expenses, you still have $400 left for any additional wants.

    20% for Savings

    The final category is dedicated to savings and should account for at least 20% of your income. This portion allows you to build an emergency fund, save for long-term goals, and invest for the future. Some savings options include:

    • Building an emergency fund
    • Contributing to retirement accounts
    • Investing in stocks or mutual funds
    • Saving for a down payment on a house
    • Paying off debt faster

    With a monthly income of $3,000, your savings category should amount to $600. This money can be used to establish an emergency fund, contribute to a retirement account, or work towards other financial goals.

    Why use the 50/30/20 budget rule? 

    The 50/30/20 budget rule provides a clear framework for managing your money and ensures that you allocate your income in a way that covers your essential needs, allows for discretionary spending, and promotes savings for a secure future. It helps you achieve a balance between enjoying your present while also preparing for tomorrow.

    Why budgeting is important

    Budgeting is a vital skill for achieving financial stability and peace of mind.

    The 50/30/20 budget rule offers a straightforward approach to managing your money and provides a solid foundation for beginners. 

    By implementing this rule, you can take control of your finances, prioritize your expenses, and make progress toward your long-term financial goals. 

    Remember, this budgeting guideline is flexible and can be adjusted to suit your circumstances.

  • Le capital-risque en Afrique : 10 leçons d’un investisseur de capital-risque en phase d’amorçage – Iyin Aboyeji

    Le capital-risque en Afrique : 10 leçons d’un investisseur de capital-risque en phase d’amorçage – Iyin Aboyeji

    Daba a récemment eu l’honneur de s’entretenir avec Iyin Aboyeji, partenaire fondateur de Future Africa, au sujet des immenses possibilités d’investissement en capital-risque en Afrique. En tant que l’un des principaux investisseurs dans les startups en phase de d’amorçage sur le continent, Iyin a partagé des informations précieuses tirées de son expérience d’investissement dans plus de 100 startups en Afrique.

    Dans cet article de blog, j’aborderai les 10 principales leçons à tirer pour les investisseurs qui cherchent à exploiter le vaste potentiel de l’Afrique en matière de startups et de capital-risque :

    #1 S’associer à des gestionnaires de fonds de capital-risque africains expérimentés

    S’associer à des gestionnaires de fonds de capital-risque expérimentés et spécialisés dans l’Afrique peut considérablement améliorer les résultats de chaque investisseur. Leur expertise en matière de localisation et leur accès privilégié aux startups les plus prometteuses du continent sont inestimables.

    #2 Adopter un état d’esprit à long terme

    Adoptez un état d’esprit à long terme adapté aux écosystèmes de capital-risque naissants mais en plein développement de l’Afrique. À l’instar de la Silicon Valley dans les années 1970, la patience est essentielle.

    #3 La pensée contraire permet de découvrir les valeurs sûres

    Évitez la pensée de groupe consensuelle. Penser à contre-courant et nager à contre-courant est la clé pour découvrir les opportunités de startups aberrantes dans les 54 pays d’Afrique.

    #4 L’évaluation de l’opportunité du marché est primordiale

    L’évaluation minutieuse de l’opportunité du marché et du potentiel de résolution des problèmes est encore plus importante que la force de l’équipe ou du produit.

    #5 Établir des relations solides avec les fondateurs

    Établir des relations étroites avec les fondateurs de startups africaines et leur servir de conseillers de confiance.

    #6 Co-investir stratégiquement avec des pairs bien connectés

    Le co-investissement avec des pairs bien connectés et axés sur l’Afrique peut fournir un flux d’opérations et un accès au financement de suivi.

    #7 Tirer parti des liens avec les entreprises

    Tirer parti des liens avec les entreprises sur le continent pour aider les startups du portefeuille à obtenir les premiers clients de référence et à se développer plus rapidement.

    #8 Effectuer un contrôle préalable approfondi

    Soyez très sélectif et procédez à des vérifications préalables approfondies, en vous appuyant sur les connaissances et le contexte du marché africain local.

    #9 Adapter son approche de l’investissement

    Adaptez continuellement votre approche d’investissement, en diversifiant ou en concentrant les capitaux en fonction de l’évolution du paysage économique africain.

    #10 Rester concentré sur les rendements

    Restez concentré sur l’obtention de rendements élevés, ce qui attire d’autres apports de capitaux de la part des LPs et renforce la crédibilité du capital-risque africain en tant que classe d’actifs.

    En résumé, l’investissement prudent en capital-risque en Afrique nécessite une vision, de la patience, des relations, un savoir-faire en matière de réglementation et une agilité dans la stratégie d’investissement. Suivez les enseignements de pionniers comme Iyin Aboyeji pour participer avec succès à la vaste histoire de la croissance à long terme de l’Afrique.

    Vous pouvez consulter l’intégralité de la discussion à l’adresse suivante : https://www.youtube.com/live/-Tx6wRjV0UU?si=3TZ03PjxJg2Wy4mc

  • The Case for VC in Africa: 10 Lessons From Iyin Aboyeji

    The Case for VC in Africa: 10 Lessons From Iyin Aboyeji

    Daba recently had the honor of speaking with Iyin Aboyeji, Founding Partner of Future Africa, about the immense opportunities for venture capital investments across Africa. As one of the continent’s foremost early-stage startup investors, Iyin shared invaluable insights from his experiences investing in over 100 startups in Africa.

    In this blog post, I’ll be covering the top 10 lessons for investors looking to tap into Africa’s vast startup and venture capital potential:

    #1 Partner with Experienced Africa VC Fund Managers

    Partnering with seasoned Africa-focused venture capital fund managers can greatly boost individual investor outcomes. Their localization expertise and superior access to the continent’s most high-potential startup deals are invaluable.

    #2 Embrace a Long-Term Mindset

    Adopt a long-term mindset fitting of Africa’s nascent but rapidly developing venture capital ecosystems. Similar to Silicon Valley in the 1970s, patience is vital.

    #3 Contrarian Thinking Uncovers Outliers

    Avoid consensus group-think. Contrarian thinking and swimming against the tide is key to uncovering outlier startup opportunities across Africa’s 54 diverse countries.

    #4 Evaluating Market Opportunity is Paramount

    Carefully evaluating the addressable market opportunity and problem-solving potential is even more important than strength of team or product.

    #5 Build Strong Founder Relationships

    Developing close relationships with and serving as trusted advisors to African startup founders is crucial to VC investment success.

    #6 Co-Invest Strategically With Connected Peers

    Co-investing alongside well-connected, Africa-focused peers can provide deal flow and follow-on financing access.

    #7 Leverage Corporate Ties

    Leverage corporate ties on the continent to help portfolio startups secure those critical first reference customers and scale more quickly.

    #8 Conduct Extensive Due Diligence

    Be highly selective and conduct extensive due diligence, drawing from localized African market insights and context.

    #9 Adapt Your Investment Approach

    Continuously adapt your investment approach, diversifying or concentrating capital as necessitated by changing African economic landscapes.

    #10 Remain Returns Focused

    Stay focused on driving strong returns, which attracts further capital inflows from LPs and builds credibility in African VC as an asset class.

    In summary, prudent venture capital investing in Africa requires vision, patience, relationships, regulatory know-how, and investment strategy agility. Follow these key lessons from pioneers like Iyin Aboyeji to successfully participate in Africa’s vast long-term growth story.

    You can view the full discussion here https://www.youtube.com/live/-Tx6wRjV0UU?si=3TZ03PjxJg2Wy4mc