Flagging. That’s how we would describe the African tech startup funding scene in 2023.
Global macro headwinds saw investors cut fewer checks and some reportedly backed down from commitments, forcing a slew of startup shutdowns and downsizing.
While on the surface, it seems Africa’s VC funding figures fell far from 2021 and 2022 levels, available estimates suggest the continent’s startups still managed to attract more than $5 billion.
Before the year’s scorecards start to roll out, we take a look at the top 10 largest fundraising rounds in the African tech startup industry this year and the trends they reveal.
Fewer mega-deals (just four >$100m rounds vs nine in 2022):
This signifies a shift towards cautious optimism from investors.
While big bets still happen, they’re rarer, with investors preferring to spread their bets on multiple promising startups.
This could lead to a more sustainable ecosystem, with startups forced to focus on stronger fundamentals and traction before securing large funding rounds.
MNT-Halan‘s $400 million round in Egypt and M-KOPA‘s $250 million in Kenya are rare exceptions, highlighting their established market positions and potential for significant impact.
Fintech takes the top spot but the landscape is more diverse:
Fintech remains a dominant sector due to its potential to address financial inclusion challenges in Africa.
However, other sectors like cleantech and mobility are gaining traction, indicating diversification in investor interest.
This diversification can lead to a more balanced and resilient ecosystem, as the success of the startup scene is not solely dependent on one sector.
The presence of Husk Power, Wetility, Nuru, Planet42, and Moove in the top 10 shows the growing importance of these sectors in attracting investor attention.
The rising prominence of debt + equity rounds:
This hybrid approach combines the flexibility of equity with the stability of debt, offering startups a more tailored financing solution.
It can be particularly useful for startups with strong revenue models but limited access to traditional equity funding.
This trend could democratize access to funding for startups, especially in emerging markets, as it caters to startups at different stages of growth and risk profiles.
MNT-Halan, M-KOPA, Planet42, and Moove all used debt + equity rounds, demonstrating the growing popularity of this approach.
Geographical distribution
The top 10 deals primarily focus on South Africa, Kenya, and Nigeria, showcasing the continued dominance of these countries in the African startup scene.
The Democratic Republic of Congo (DRC) emerged as a surprise entry in the top 10 thanks to Nuru‘s sizable Series B round.
Series B dominance
The majority of deals being Series B raises indicates a focus on mature startups with proven traction and scalability, further highlighting likely investor risk aversion.
Overall, the top 10 fundraising rounds paint a picture of a resilient African tech ecosystem adapting to a challenging global environment.
While mega-deals were scarce, the diversity of sectors, financing models, and geographical representation suggests potential for sustainable growth in the long term.
Stay tuned to our blog for a broader piece that explores standout trends in Africa’s tech landscape in 2023 and our high-conviction themes for the new year—to be published soon!
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.
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.
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.
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 !
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!
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.
From Senegal’s hubs to Cote d’Ivoire’s fintech advancements, exciting tech developments are shaping the future in francophone Africa.
Did you know that Africa is home to the largest number of French speakers in the world?
Yes, you read that right.
The French language, brought to the continent through colonialism by France and Belgium, is today spoken by an estimated 167 million people in Africa in 2023, who make up 51% of the global French-speaking population.
This population is spread across 29 countries, more than half of Africa’s 55, extending from the Maghreb in North Africa to sub-Saharan nations in the center and west such as Senegal, Ivory Coast, and Cameroon.
Up to 21 of those countries are known as “francophone countries”, where French is either the official or commonly spoken language.
And, according to some estimates, there will be 700 million French speakers by 2050, 80% of them in Africa.
Yet for all its ubiquity and predominance, the francophone region often remains overshadowed in discussions surrounding one of the continent’s most prominent trends: the surge in technology innovation and startups.
For the better part of the last decade, much of the attention, and investments, have been skewed toward startups in predominantly English-speaking countries.
For context, francophone Africa typically attracts less than 20% of Africa’s annual VC funding.
Far from that, the region has produced some of the most notable fintech and software startups in Africa.
Senegal’s Wave (mobile money service), Tunisia’s InstaDeep(AI solutions provider recently acquired by BioNTech SE in a $684m deal), Morocco’s Chari (an e-commerce platform for small retailers), and Algeria’s Yassir (a super App for on-demand, ride-hailing, last-mile delivery, payment services, and more)are some shining examples.
So why does francophone Africa get sidelined?
Language barriers and investor preferences play a role in this disparity.
Most venture capital investors and firms active in Africa originate from the US and UK, favoring Anglophone markets due to familiarity.
Meanwhile, French investors are scarce in the African startup scene, contributing to the uneven funding distribution.
Another major reason for the lag in francophone African startups’ funding is their recent entry into the scene.
Their emergence in the last three years and early-stage status hinder larger funding rounds.
In 2021, Senegalese fintech Wave achieved a remarkable milestone as the country’s inaugural startup to reach a $1 billion valuation after raising $200 million.
Beating the odds: the rise of francophone startups
In 2021, Senegalese fintech Wave achieved a remarkable milestone as the country’s inaugural startup to reach a $1bn valuation after raising $200m.
Notably, it also stood out as the first unicorn outside of the traditionally dominant tech hubs such as Nigeria, South Africa, Egypt, and Kenya—and the pioneer in French-speaking Africa.
The IFC-led funding received significant attention, sparking curiosity about tech progress in the broader region.
Since then, investment in French-speaking African startups has steadily increased.
African startups raised $4.8bn in 2022, with Nigeria leading with $1.2bn, followed by Kenya, Egypt, and South Africa.
But data from Africa: The Big Deal, a publication that tracks venture funding in Africa, revealed a shift in momentum beyond the “Big Four.”
French-speaking countries like Algeria, Tunisia, and Senegal attracted $151m, $119m, and $112m respectively.
Côte d’Ivoire raised $34m, and Togo reached the $10m funding mark for the first time. Mali also marked its most successful year with $6m.
While investment in central francophone Africa remains lower than in other regions, Chad, Cameroon, Congo, and DRC saw increased investment inflows: from $24m in 2021 to $50m in 2022.
What does the future hold for “the French” in Africa?
Several trends indicate a change in the tech venture fortunes of French-speaking Africa.
For one, the region boasts some of the highest mobile phone adoption rates, which is fueling the rise of even more tech-driven startups. Some of these are:
Julaya (Côte d’Ivoire): provides African businesses with digital accounts to make payments, and disburse mobile money transactions to their employees and suppliers.
Gozem (Togo): a super app that offers a host of services – including transport, e-commerce, and financial services – across several countries in francophone Africa.
Daba (pan-African): enables people, primarily in francophone Africa, access a wide range of investment products, from stocks listed on the regional exchange BRVM, bonds, and mutual funds to early-stage ventures, all through a mobile application.
Jambo (DRC): focused on bringing Web3 to African markets with a mission to onboard the next billion African users.
Hub2 (Côte d’Ivoire): a leading fintech startup in interoperability and payment infrastructure in Francophone Africa, present in 14 countries.
Djamo (Côte d’Ivoire): offers digital banking solutions to people excluded financially.
Auto24 (Côte d’Ivoire): a direct-to-consumer used car company that provides new, innovative solutions to ensure transparent and secure transactions.
Bizao (Côte d’Ivoire): digitizes payments for local and international companies. Since 2019, Bizao has signed over 30 partnerships with telecom operators, banks, and mobile money operators in Africa.
Oko (Mali): develops affordable mobile-based crop insurance products to provide smallholder farmers with the financial security they need, regardless of unstable climate trends. The startup operates in Mali and Uganda and has brought insurance to more than 15,000 farmers.
Paps (Senegal): is a technology-driven transportation and logistics company that offers end-to-end services for customer satisfaction.
BioNTech bought InstaDeep for $684m.
The region also has a more conducive policy environment for innovation while offering startups a relatively easy regional expansion route due to shared culture, language, regulations, and currency.
Fourteen countries use the CFA franc, regulated by the West African Monetary and Economic Union and the Central African Economic and Monetary Community.
The currency is pegged to the Euro and does not fluctuate, providing the kind of foreign exchange stability that’s not available elsewhere on the continent.
Both unions represent 14% of Africa’s total population and 12% of its GDP.
In addition, the region is home to six out of the seven fastest-growing economies in sub-Saharan, per the IMF
French VC investors like Saviu, Orange Ventures, Newfund Capital, Proparco, CFAO, and AfricInvest are also increasingly backing startups in the region.
The presence of a robust early-stage support system in the form of competitions, incubators, accelerators, technological hubs, and venture studios is also contributing to entrepreneurship growth in the region.
Mstudio, for instance, supports early-stage entrepreneurs, and in terms of competitions, tech incubator Hadina RIMTI organizes the Entrepreneur’s Marathon in Mauritania.
For entrepreneurship training in Mali, workshops have been designed and conducted by local incubators CREATEAM and Impact Hub.
Jambar Tech Lab and Traction Camp meanwhile, are getting entrepreneurs in Senegal and Kenya ready to scale their businesses by partnering with incubators on the ground, CTIC Dakar & iHub.
And, open innovation programs like the Mali-based hackathon organized by DoniLab, CREATEAM, Jokkolabs, Teteliso & Impact Hub led to the design of a new urban mobility app for a large local firm.
The 400-million-population-strong francophone African market offers a distinctive opportunity as its tech ecosystem unfolds, and startups attract more attention and capital from regional and global investors.
While readiness for digital services varies across countries, recent successes like Wave and InstaDeep illustrate the region’s collective potential.
From Senegal’s tech hubs to Cote d’Ivoire’s fintech advancements, exciting tech developments are shaping the future of business and services in francophone Africa as much as they are in the more “popular” region.
Lorsqu’il s’agit d’options d’investissement, les obligations sont souvent considérées comme un composant fondamental d’un portefeuille bien diversifié. Elles offrent stabilité, revenu, et un niveau de risque relativement plus faible par rapport à d’autres voies d’investissement.
Dans ce blog, nous plongeons dans le monde des obligations, en explorant ce qu’elles sont, les différents types d’obligations disponibles, comment elles fonctionnent, et comment les investisseurs peuvent gagner de l’argent avec elles.
Qu’est-ce que sont les obligations ?
Les obligations sont des titres à revenu fixe qui représentent un prêt fait par un investisseur à un emprunteur, généralement une entreprise, une collectivité locale ou une entité gouvernementale.
Essentiellement, lorsque vous investissez dans une obligation, vous prêtez de l’argent à l’émetteur pour une période déterminée à un taux d’intérêt prédéterminé, appelé le taux de coupon.
L’émetteur s’engage à rembourser le montant principal, également appelé la valeur nominale ou valeur faciale, à l’échéance.
Quels sont les types d’obligations ?
Obligations gouvernementales : Ce sont émises par les gouvernements nationaux pour financer les dépenses publiques et gérer leurs politiques fiscales. Les obligations du Trésor, également connues sous le nom de T-bonds, en sont des exemples. Elles sont considérées comme la forme la plus sûre d’obligations car elles sont garanties par la pleine foi et crédit du gouvernement.
Obligations d’entreprise : Les entreprises émettent des obligations d’entreprise pour lever des capitaux à diverses fins, telles que l’expansion des activités, l’acquisition d’actifs ou le refinancement de la dette existante. Les obligations d’entreprise offrent des rendements plus élevés par rapport aux obligations gouvernementales, mais elles comportent également un niveau de risque plus élevé. La solvabilité de l’entreprise émettrice de l’obligation joue un rôle important dans la détermination de son taux d’intérêt.
Obligations municipales : Les obligations municipales, ou munis, sont émises par des gouvernements locaux ou régionaux pour financer des projets publics tels que des écoles, des hôpitaux ou le développement de l’infrastructure. Ces obligations sont souvent exemptes d’impôts fédéraux et peuvent également offrir des avantages fiscaux au niveau de l’État et local.
Comment fonctionnent les obligations ?
Lorsque vous achetez une obligation, vous devenez essentiellement créancier de l’émetteur. La valeur nominale de l’obligation représente le montant que vous recevrez à l’échéance. L’émetteur effectue des paiements d’intérêts périodiques, généralement semestriels, basés sur le taux de coupon. Les paiements d’intérêts sont fixes, fournissant un flux de revenus prévisible.
Supposons que vous décidiez d’investir dans une obligation gouvernementale. Vous achetez une obligation de 5 ans d’une valeur nominale de 1 000 $ avec un taux de coupon de 3 %. Cela signifie que l’émetteur gouvernemental vous versera 30 $ par an (3 % de 1 000 $) en tant que revenu d’intérêts. L’obligation a une échéance de 5 ans.
Chaque année, vous recevez un paiement d’intérêts de 30 $, généralement versé semestriellement (15 $ tous les six mois). À la fin de la période de 5 ans, lorsque l’obligation arrive à échéance, l’émetteur gouvernemental vous remboursera la valeur nominale de 1 000 $.
Ainsi, dans cet exemple, sur la période de 5 ans, vous recevriez un total de 150 $ en paiements d’intérêts (30 $ par an) et la valeur nominale de 1 000 $ à l’échéance. En investissant dans cette obligation gouvernementale, vous percevez un flux de revenus fixe et récupérerez finalement le montant principal que vous avez initialement investi.
Les obligations ont également un marché secondaire où elles peuvent être achetées et vendues avant l’échéance. Le prix de marché d’une obligation peut fluctuer en fonction de divers facteurs tels que les variations des taux d’intérêt, la solvabilité de l’émetteur et les conditions du marché. Si vous vendez une obligation avant sa date d’échéance, vous pouvez recevoir plus ou moins que la valeur nominale en fonction des taux de marché en vigueur.
Comment gagner de l’argent avec les obligations
Paiements de coupons : En tant que détenteur d’obligations, vous gagnez un revenu grâce aux paiements de coupons périodiques effectués par l’émetteur. Le taux de coupon, exprimé en pourcentage de la valeur nominale de l’obligation, détermine le montant que vous recevrez. Par exemple, si vous détenez une obligation de 10 000 $ avec un taux de coupon de 5 %, vous recevrez 500 $ par an.
Plus-value en capital : Si les taux d’intérêt diminuent après votre achat d’une obligation, sa valeur sur le marché secondaire peut augmenter. Les investisseurs sont prêts à payer une prime pour des obligations à rendement plus élevé, faisant monter leur prix. Dans ce cas, vous pouvez vendre l’obligation à un prix supérieur à ce que vous avez initialement payé, réalisant un gain en capital.
Échelonnement des obligations : En investissant dans des obligations de différentes échéances, vous pouvez créer une échelle d’obligations. Cette stratégie aide à gérer le risque lié aux taux d’intérêt et fournit des flux de trésorerie réguliers. À mesure que chaque obligation arrive à échéance, vous réinvestissez le principal dans une nouvelle obligation à plus long terme, bénéficiant éventuellement de taux d’intérêt plus élevés.
Pour un investisseur, les obligations fonctionnent en fournissant un flux de revenus fixe à travers des paiements d’intérêts périodiques et en restituant le montant principal à l’échéance. Vous pouvez gagner de l’argent avec les obligations grâce aux paiements de coupons, à l’appréciation en capital si la valeur de l’obligation sur le marché secondaire augmente, et grâce à diverses stratégies telles que l’échelonnement d’obligations.
En général, les obligations offrent stabilité et peuvent être une option d’investissement attrayante pour ceux qui recherchent un revenu régulier et un risque moindre par rapport à d’autres investissements.
Africa is not only rich in cultural heritage and breathtaking landscapes but also offers incredible investment opportunities.
But investing in the continent requires patience as strategies that succeed in one country may not work in others.
In this post, we explore five compelling reasons why you should consider investing in Africa, even if you reside outside the continent.
A young and fast-growing market
Africa has over 1.3 billion people and is the world’s youngest region, with almost 60% of its population under 25 years old while the median age is 19.
The continent also boasts a rapidly growing population and an expanding middle class. According to the World Economic Forum, by 2030, over 40% of Africans will belong to the middle or upper classes, and there will be a higher demand for goods and services.
By that time, household consumption is expected to reach $2.5 trillion, more than double that of 2015 at $1.1 trillion.
With increasing urbanization and rising disposable incomes, it presents an untapped market ready for investors to tap into a vast consumer base, which offers tremendous growth potential across various sectors.
Innovation and entrepreneurship
Africa is witnessing a remarkable surge in innovation and entrepreneurship. From fintech startups to renewable energy solutions, African entrepreneurs are harnessing technology to solve local challenges and create scalable businesses.
The continent has produced at least seven unicorns—private companies worth $1 billion or more.
One such startup is Flutterwave, a Nigerian fintech unicorn revolutionizing digital payments across the continent. Another standout is Andela, a pan-African company connecting skilled software developers with global companies.
These innovative startups demonstrate Africa’s increasing prominence in the global tech landscape, fueling economic growth and driving technological advancements across the continent.
By investing in African startups and venture capital funds, you can support these innovative minds while potentially benefiting from their future successes.
Rapid digital transformation
Africa has witnessed a rapid digital transformation in recent years, revolutionizing various sectors.
With increasing internet penetration, mobile connectivity, and innovative solutions, the continent has embraced technology in all facets of life.
More so, the contribution of the mobile industry to its GDP will grow to almost $155 billion.
From mobile banking to e-commerce platforms, Africa’s digital revolution is empowering individuals, bridging the digital divide, and creating opportunities for socio-economic development across the continent.
The abundance of natural resources
Africa is blessed with an abundance of natural resources that contribute significantly to its economic potential.
With vast mineral deposits, the continent holds a substantial share of the world’s reserves of gold, diamonds, platinum, and other precious metals. It is also rich in oil and gas resources, with countries like Nigeria, Angola, and Algeria being major producers.
Additionally, Africa possesses extensive reserves of timber, fertile agricultural land, and a diverse range of flora and fauna.
These resources present immense opportunities for economic growth, industrial development, and foreign investment.
With the right investment strategy, you can benefit from the continent’s rich resources and contribute to its sustainable development.
Stronger and more dynamic economies
Africa is experiencing a remarkable shift towards diverse and stronger economies. With a focus on innovation, entrepreneurship, and sustainable development, several African nations are making significant strides.
The continent has witnessed a surge in technological advancements, fostering digital transformation and leapfrogging traditional infrastructure barriers.
Countries like Nigeria, Kenya, and South Africa have emerged as tech hubs, attracting global investments and nurturing homegrown startups. African governments are also supporting sectors like agriculture, renewable energy, and manufacturing to stimulate economic growth and reduce dependency on commodities.
Regional collaborations, such as the African Continental Free Trade Area (AfCFTA), are promoting intra-African trade, opening up new markets, and encouraging economic integration.
Africa’s total exports are projected to reach approximately $952 billion by 2035, driven by the growth of regional trade and enhanced connectivity, according to a new report by Standard Chartered.
This momentum towards diverse and stronger economies is poised to unleash Africa’s immense potential, empowering its people and offering investors exciting opportunities across the continent.
Investing in Africa presents a world of opportunities for those outside the continent.
With an untapped market, abundant resources, growing infrastructure, a vibrant entrepreneurial ecosystem, and favorable policies, Africa is poised for economic growth and development.
Disclaimer:This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients.
A rapidly growing digital economy in Africa is drawing investments from the world’s biggest tech companies into the continent’s data center market, which is largely untapped.
For over a decade, Africa has been experiencing a massive boom in mobile internet adoption, outpacing other regions globally.
This fast-growing mobile economy has enabled the emergence of several mobile-led tech solutions on the continent, such as mobile money and online shopping.
And the startups providing these services have drawn attention, and billions of dollars in venture funding, from the world’s biggest tech companies and investors.
In 2022 alone, African startups secured $6.5 billion in venture funding, an 8% increase from the previous year, while global VC investments declined -35%.
But it’s not just startups and software solutions pulling investments in Africa’s digital economy.
Foreign capital has also flown into digital, hardware infrastructure, especially data centers.
Oracle, Microsoft, Amazon, Equinix, and Huawei are some big names building or buying data centers across Africa.
Regional operators such as MainOne, Africa Data Centers, Raxio, Icolo.Io (Digital Realty), and IXAfrica as well as the likes of Telecom Egypt, NTT Global Data Centers, Paratus Namibia, Rack Centre, Teraco Data Environments (Digital Realty), and Wingu are also big players in the space.
In 2022, the market also witnessed the entry of investors like Vantage Data Centers, Airtel Nigeria, Cloudoon, Open Access Data Centres, and Kasi Cloud.
For instance, Open Access Data Centres opened more than 20 data center facilities in South Africa and Nigeria.
Together, they’ve invested well over $4 billionin data center projects across Africa since 2021 at least.
But, what exactly are data centers, and why are big tech players racing to build them in Africa?
US-based Equinix acquired West African data center and connectivity solutions provider, MainOne, for $320 million in 2022. Image credit: The Guardian Nigeria
The backbone of the digital world
The first things that come to mind when we hear words like “online”, “digital”, “digital world” or “technology” are probably the internet, social media, mobile apps, business software, etc.
But have you ever wondered where all the information on the internet we access through smartphones or computers is stored?
Well, data centers are like giant warehouses that store and protect all the data we see online.
They’re super crucial for the internet to work smoothly and are the major enablers of online services—think digital banking, social media, streaming services, video calls, and about everything we do online.
Just as a library stores and organizes books for easy access, data centers store and manage an immense amount of digital information.
And with the increasing amount of information and data to store as the digital economy continues to grow rapidly, they have become even more critical.
How does this concern Africa?
There’s a massive opportunity to build these data centers on the continent and make lots of money from it!
Nairobi-based East Africa data center, a subsidiary of Liquid Telecom Kenya. Image credit: ESI Africa
The data center opportunity in Africa
Emerging technologies such as AI, IoT, or cloud computing are not new in Africa.
But there has been a recent surge in the adoption of such enterprise digital solutions, especially among mid-to-large businesses across several sectors—a trend mainly induced by the Covid-19 pandemic.
In South Africa alone, the use of cloud computing is expected to grow 25%, generating up to $1.5 billion by 2024.
And seeing this growth, global cloud services providers such as Amazon Web Services, Microsoft, IBM, and Oracle are expanding their presence in Africa with new cloud regions being set up.
Be it enabling consumers to buy food or clothes online or make money transfers via mobile apps, these activities generate huge volumes of data that need to be stored adequately.
This, in turn, creates a higher demand for data centers.
For investors, this presents a great opportunity to fill significant gaps, as most of Africa’s data is currently stored outside the continent.
That leads to slower connections and data privacy concerns.
Messages sent from the continent’s southern tip to Europe and back can take as long as 180 milliseconds, causing frustration for individuals trading stocks or playing video games, per The Economist.
But significant multi-billion dollar investments in data centers are set to change this scenario.
These investments will significantly reduce internet latency and bring it much closer to African users, paving the way for a remarkable advancement in the continent’s digital economy.
More so, African governments are keen to build their data centers to ensure data sovereignty and stay competitive in the increasingly AI-powered world.
How a data center looks from the inside. Image credit: CIO
Investments in data centers skyrocket
As investors increasingly realize the opportunity in Africa’s data center market, the continent has seen a flurry of activities in the space over the last few years.
This ranges from the launch of new or expansion of data centers to millions of foreign investments pouring into operators.
Data from ReportLinker, an AI-driven market intelligence platform, indicate the sector recorded up to $2.6 billion in investments in 2021, including $200 million in debt and equity raised by WIOCC.
Around $5.4 billion is expected to be invested in the next four to five years alone but going by investment trends last year, the continent might smash those estimates!
In 2022, Vantage launched a $1 billion campus in Johannesburg to house three data centers.
And in April, Raxio Data Centres secured up to $170 million—from Proparco and the Emerging Africa Infrastructure Fund—for data center projects across multiple African countries.
Acquisitions are also growing…
Alongside huge capital raises, Africa’s data center market has also been seeing major investments in the form of mergers and acquisitions.
One such example is the $320 million acquisition of West Africa operator MainOne by US-based Equinix in 2021.
In the same year, Digital Realty bought Nigeria-based Medallion Data Centers and South Africa’s Teraco Data Environments.
Meanwhile, African Infrastructure Investment Managers (AIIM), a private equity firm, acquired Ngoya Etix Data Centers, all for undisclosed sums.
Most of these deals go unnoticed as digital infrastructure such as submarine cables, fiber optics, telecom towers, and data centers belong in the not-so-shiny segment of the tech ecosystem.
But they’re crucial to the continued functioning of the digital world as most people know it.
Impressive figures, but not nearly enough
Despite the investment deals and figures, Africa still needs way more data centers to match other continents than is currently being built.
Currently, Africa has 17% of the global population but only about 2% of all colocation data centers globally—quite a gap!
For a better perspective, the continent has only 0.1 data centers per million internet users, far behind the global average of 0.9.
And as of last year, it only had five more data centers than the Indian city of Mumbai alone.
To reach the global average, Africa needs around 450 more data centers and 1,500 more to match North America or Europe.
In addition to the growing demand for cloud-based services among businesses, more of these facilities are needed to support Africa’s growing digital population.
The existing data centers on the continent are also very much concentrated in a few African countries.
For instance, Nigeria, Kenya, and South Africa together host about 60% of sub-Saharan Africa’s commercial data centers.
The latter alone has the most data centers in the region and is expected to account for the bulk of Africa’s $5 billion data center market by 2026.
The major data center markets will continue to attract the lion’s share of investment into the sector.
But the good news is that smaller economies such as Ethiopia, Morocco, Algeria, Ghana, Cote d’Ivoire, Zambia, DRC, Namibia, and Rwanda are starting to attract noticeable funding.
They’ve received up to $700 million of capital investment annually for two years now, per research firm Xalam Analytics, which closely monitors the industry.
Big tech’s increasing investments in Africa’s data center capacity expansions indicate significant growth potential for the market.
And it comes as Africa’s digital revolution needs more capacity to support its growing smartphone and internet users, 4G expansion, and 5G rollout.
The increasing number of data centers across the continent also creates new opportunities for telecom players.
It’s a huge opportunity for investors that big tech companies are moving fast to capture, as the numbers show.
An exciting future
Amid a rapidly growing digital economy, we can expect more data center capacity expansion across various countries in Africa.
And as large numbers of data centers along with large power capacities come up, Africa can be called—and rightly so—the next frontier of the data center industry.
Daba, a ground-breaking mobile investment app in Africa, has changed the African investment landscape, particularly for retail investors. Its recent achievement of enabling individuals to participate in the December 2022 initial public offering (IPO) of Orange CI underscores Daba’s commitment to democratizing access to African investment opportunities.
The Orange IPO, a milestone in the African telecommunications sector, seemed initially exclusive to institutional investors. However, Daba, a leading African investment platform, bridged this gap. Through our user-friendly mobile investment app, retail investors effortlessly connected with the IPO. This access to private company investing in Africa promises rewarding dividends from the renowned telecom operator.
Users found navigating the IPO process on Daba’s mobile investment app a breeze. From registering interest to purchasing Orange shares, the simplified process negated complexities usually linked with such investments. As such, investing in African companies, particularly tech and fintech companies, has become more accessible.
“I couldn’t have participated in the Orange Cote d’Ivoire IPO if it weren’t for Daba. They offer unique African investment strategies and opportunities, and I am excited for more,” one user said. Another added, “As an Ivorian, Daba allowed me to invest safely and easily in one of my favorite companies before it went public.”
Now, with the announcement of dividends, retail investors who trusted Daba’s solution are anticipating substantial African investment returns. After realizing a profit dividend of 153.485 billion FCFA in 2022, Orange CI decided to offer 126 billion FCFA to shareholders. This allocation represents 82% of the group’s profit, promising each Orange CI share a net dividend of 752.76 FCFA. Given the share price of 9,575 FCFA on May 31, that’s a yield of 7.86%.
Daba’s transformative impact on the African investment landscape is significant. By democratizing access to IPOs, this innovative startup has leveled the playing field in African capital markets. It’s broken down barriers and opened a world of opportunities for those previously excluded from such ventures.
As dividends roll in, Daba continues to pave the way for retail investors in emerging African markets. Our platform allows anyone with a smartphone to capitalize on lucrative African investment trends and secure a brighter financial future.
Ready to join the future of investing in Africa? Download Daba, your gateway to investment opportunities in Africa, and start your investment journey today!
