Tag: invest in africa

  • Principales conclusions du Rapport Partech 2023 sur le capital-risque technologique en Afrique

    Principales conclusions du Rapport Partech 2023 sur le capital-risque technologique en Afrique

    Le rapport annuel de Partech sur le capital-risque technologique en Afrique offre des perspectives précieuses sur l’évolution de l’écosystème technologique africain.

    L’édition 2023 révèle un ralentissement significatif du financement, en accord avec les tendances mondiales du capital-risque, mais met en lumière des zones de résilience.

    Voici les principales conclusions.

    Diminution de moitié du financement reflète la conjoncture mondiale

    En 2023, les start-ups africaines ont levé 3,5 milliards de dollars, soit une baisse annuelle de 46 %, répartie sur 547 transactions (-28 %). Les fonds propres ont spécifiquement enregistré une diminution de financement de 50 %.

    Cela reflète la crise mondiale du financement du capital-risque alors que les investisseurs devenaient plus prudents. Cependant, l’Afrique a toujours attiré plus de 500 investisseurs, démontrant un intérêt continu et fort.

    Baisse observée à tous les stades de financement

    Le rapport montre des baisses à tous les stades de financement, la plus importante étant dans les tours de croissance (-31 % en moyenne). Les tours d’amorçage et de série A ont diminué modérément (8 à 16 %), tandis que la série B est restée stable.

    Cela indique que les investisseurs se sont concentrés sur le soutien aux entreprises existantes de leur portefeuille plutôt que sur de nouveaux investissements.

    Les 4 principaux marchés restent en tête, avec des changements

    Les quatre principaux marchés africains – l’Afrique du Sud, le Nigeria, l’Égypte et le Kenya – dominent toujours, sécurisant 79 % des transactions. Cependant, leur part de transactions a légèrement diminué (passant de 77 %), signalant une activité croissante sur tout le continent.

    L’Afrique du Sud a pris la première place en termes de fonds propres levés avec 548 millions de dollars. Cependant, le Kenya a capturé la première place pour le financement global avec 719 millions de dollars grâce à un financement important par la dette. Ainsi, ces deux nations sont actuellement en tête du financement technologique en Afrique.

    Le Nigeria est resté en première position en termes de nombre de transactions, malgré une division par deux de son financement en fonds propres. Pendant ce temps, l’Égypte a subi le plus gros impact parmi les quatre premiers, avec une chute de 58 % des transactions en fonds propres.

    Montée du francophone

    Encourageant, 52 % des pays africains ont bénéficié d’investissements technologiques, contre 46 % en 2022. L’Afrique francophone a connu une croissance substantielle, représentant 15 % des fonds propres (contre 11 %) dans 20 % des transactions. Cela indique une attention renforcée du capital-risque au-delà des quatre principaux hubs technologiques.

    La Fintech conserve la couronne du financement

    Comme les années précédentes, la fintech s’est classée première tant en nombre de transactions (113) qu’en financement total des fonds propres (852 millions de dollars).

    Le commerce électronique et les technologies propres se sont classés à égalité en deuxième position avec des parts de 13 % chacun. La domination de la fintech montre le besoin immense de l’Afrique en matière d’inclusion financière et de solutions de paiement.

    La croissance du financement pour les fondatrices

    Les start-ups fondées par des femmes ont levé 25 % des transactions en fonds propres, soit une augmentation de 3 points de pourcentage par rapport à 2022. Elles ont également obtenu 392 millions de dollars en fonds propres, représentant 17 % du total des fonds propres, contre 13 % l’année précédente. Bien que cela reste faible par rapport à la population, le soutien du capital-risque aux femmes leaders technologiques a gagné du terrain de manière significative.

    La dette émerge comme un complément aux fonds propres

    Le rapport met en avant la pertinence croissante de la dette, représentant 35 % du financement total contre seulement 24 % en 2022. Le Kenya a été en tête du financement par la dette avec une part de 32 %, axée principalement sur les entreprises de technologies propres et de fintech.

    Alors que les fonds propres se resserrent, la dette offre une alternative de capital viable pour les start-ups africaines en maturation.

    En résumé, bien que l’environnement de financement technologique en Afrique soit devenu nettement plus difficile en 2023, le secteur semble résister à la tempête.

    Les acteurs clés ont maintenu des niveaux de financement respectables compte tenu du contexte, les investisseurs ont continué à soutenir un éventail de marchés et de fondateurs, et la dette a contribué à atténuer le ralentissement des fonds propres.

    Le rapport de Partech suggère un optimisme prudent quant au retour de la croissance technologique en Afrique après la crise. Des métriques clés telles que le nombre de transactions et le financement des femmes soulignent l’élan sous-jacent de l’industrie.

    Vous souhaitez en savoir plus sur les tendances en matière d’investissement et accéder aux opportunités en Afrique ? Téléchargez l’application Daba depuis vos magasins d’applications dès aujourd’hui !

  • Partech 2023 Africa Tech VC Report: Key Takeaways

    Partech 2023 Africa Tech VC Report: Key Takeaways

    The annual Partech Africa Tech Venture Capital report offers valuable insights into the evolution of the African tech ecosystem. 

    The 2023 edition reveals a significant funding slowdown aligned with global VC trends, yet highlights areas of resilience.

    Here are the key takeaways.

    Halved Funding Reflects Global Downturn 

    In 2023, African startups raised $3.5B, a 46% annual drop, spread across 547 deals (-28%). Equity specifically saw a 50% funding decrease. 

    This mirrors the global VC funding crunch as investors became more cautious. However, Africa still captivated over 500 investors, proving continued strong interest.

    Drop Seen at All Funding Stages

    The report shows drops across all funding stages, but the largest was in growth rounds (-31% ticket average). Seed and Series A shrank moderately (8-16%), while Series B held steady. 

    This indicates investors focused on supporting existing portfolio companies rather than new investments.

    Top 4 Markets Still Lead, With Shifts

    The African “big four” markets —South Africa, Nigeria, Egypt, and Kenya—still dominate, securing 79% of deals. However, their deal share fell somewhat (from 77%), signaling increasing activity across the continent.

    South Africa took first place by total equity raised at $548M. Yet Kenya captured the top spot for overall funding at $719M thanks to major debt financing. So these two nations currently lead Africa’s tech funding.

    Nigeria persisted as #1 by deal count, despite its equity funding being halved. Meanwhile, Egypt took the biggest hit among the top four, with equity deals plummeting 58%.

    Francophone Rising  

    Encouragingly, 52% of African countries saw a tech investment, up from 46% in 2022. Francophone Africa enjoyed substantial growth taking 15% of equity (up from 11%) across 20% of deals. This indicates strengthened VC attention beyond the major four tech hubs.

    Also Read: Francophone Africa – An Emerging Startup Powerhouse

    Fintech Retains Funding Crown   

    As in previous years, fintech ranked first in both deals (113) and total equity funding ($852M).

    E-commerce and cleantech tied for second place with 13% shares each. Fintech’s dominance shows Africa’s immense need for financial inclusion and payment solutions.

    Funding to Women Founders Growing

    Startups with female founders raised 25% of equity deals, up 3 percentage points from 2022. They also secured $392M in equity, representing 17% of total equity versus 13% last year. While still low relative to the population, VC backing for women tech leaders gained meaningful ground.  

    Debt Emerges as Complement to Equity

    The report highlights debt’s increasing relevance, making up 35% of total funding versus just 24% in 2022.

    Kenya led debt financing with a 32% share, focused heavily on cleantech and fintech companies. 

    As equity tightens, debt provides a viable capital alternative for maturing African startups.

    In summary, while the Africa tech funding environment grew markedly more challenging in 2023, the sector appears to be weathering the storm. 

    Key players retained respectable funding levels given the climate, investors continued backing a breadth of markets and founders, and debt helped cushion the equity slowdown. 

    The Partech report suggests cautious optimism for African tech growth returning post-downturn. Key metrics like deal count and women’s funding underscore the industry’s underlying momentum.

    Want to learn more about investment trends and access opportunities in Africa? Download the Daba application from your app stores today!

  • 2023 Recap: Major Themes in African Tech

    2023 Recap: Major Themes in African Tech

    There are not many places to look but up in the new year for African tech stakeholders after what turned out to be a tough 2023 for startups globally.

    This year, budgets and valuations were cut, business models revised, layoffs were frequent, and some startups shuttered as the harsh realities of a funding downturn, mismanagement, and fraud took their toll on African tech.

    It’s time to take stock of the last 12 months in what’s been a rollercoaster year. Read on to discover the major themes in Africa’s tech ecosystem.

    The venture funding market shrinks

    The exuberance of 2022’s VC landscape gave way to a stark reality in 2023, with funding plummeting by around half globally in the first half of the year.

    This dramatic shift coincided with hikes in interest rates, which had a chilling effect on fundraising. For every 1% hike in interest rates, there was an alarming 3.2% decline in VC capital.

    This tightening environment not only reduced the pool of VC money available to startups but also made debt financing, a potential alternative, a less viable option due to higher borrowing costs.

    After a bullish 2022 in which Africa was the only continent to record growth in venture funding values, there was no escaping the downturn this year.

    The funding winter reached the continent in the H1 2023. Startup funding plunged to just over $1bn, a stark drop from $3.5bn the year before, per AVCA data. 

    Investors completed 263 deals – a 40% reduction in both deal volume and funding compared to the previous year. 

    Although African startups staged an impressive comeback in Q3 2023, with funding jumping by 28% compared to the year before. 

    The general slowdown prompted a reshuffle, with investor focus shifting towards nurturing young startups in their early stages or mature players nearing unicorn status.

    Most likely Africa’s VC funding figures fell far from 2022 levels. The final tally as of Q3 2023 to date, per AVCA, stood at $2.95bn – down from the $4.3bn that was raised by the same point last year. 

    That means Africa’s venture capital industry managed to attract two-thirds (69%) of the capital it accrued by September 2022, and a more disappointing 56% of the total funding last year.

    While VC funding is harder to come by, Development Finance Institutions (DFIs)—such as the IFC, BII, US DFC, and Proparco—are becoming more active in the tech startup landscape.

    Venture debt & hybrid rounds become more frequent

    2023’s funding scorecards are yet to roll out but available estimates suggest the continent’s startups still managed to attract more than $5bn. 

    Compared to previous years, a higher portion of the total funding is likely to be in the form of venture debt, which has become an alternative source of capital for African startups.

    Notable in startup fundraising announcements this year is the growing frequency of mixed equity and debt funding rounds.

    Examples include:

    • Okra Solar’s Series A round ($7.85m equity and $4.15m debt);
    • Complete Farmer’s pre-Series A funding round ($7m equity and $3.4m debt)
    • Wetility’s $50m fundraising included a $33m commercial debt package from a consortium of commercial and development banks

    While venture debt shines as a catalyst for early-stage ventures, providing crucial working capital to fuel their growth, it’s also increasingly powering expansion for more established startups.

    This is the case with:

    • Mobility FinTech startup Moove Africa. It has raised $325m to date ($150m in equity and over $175m in debt)
    • Kenyan solar home system provider d.Light’s $125m securitization facility. The company’s total securitized financing is $490m since 2020

    An uptick in startup shutdowns, pivots & downsizing

    With global macro headwinds seeing investors cut fewer checks and some reportedly renege on commitments, a slew of startups were forced to downsize, pivot, or in many cases, close up shop.

    At least 15 African startups shuttered this year, including those with once highly-celebrated status on the continent: 54 Gene, Dash, Sendy, WhereIsMyTransport, Lazerpay, Zumi, Zazuu, Hytch, Okada Books, Pivo, Vibra, Redbird, Bundle Africa, Spire, Qefira.

    Combined, these startups raised over $200m in disclosed VC funding while operational.

    Meanwhile, others like Copia, MarketForce, and Twiga Foods have had to change the way they operate. 

    It’s noteworthy that the funding slowdown has hit a certain type of African startups hardest—well-funded ventures chasing growth-at-all-costs strategies.

    Cleantech/climate-tech now as popular as fintech

    The tide is rising for climate tech (comprising innovations across agriculture, clean energy, sustainable materials, environmental sustainability, e-mobility, and nature-based solutions) in Africa.

    Last year, funding to the sector grew 3.5 times to over $860m, making it Africa’s most funded after fintech.

    It has maintained the second spot so far this year, per AVCA report. Data from Africa: The Big Deal shows the sector accounts for 32% of total VC funding as of Q3, behind fintech’s 35%.

    And over the past 12-18 months, several VC firms—among them Satgana, Catalyst Fund, Equator, and EchoVC—have introduced funds to support startups in the sector.

    The timing of this surge in climate funding couldn’t be better as Africa grapples with the increasingly severe impacts of climate change, we write in our Pulse54 newsletter, which explores climate tech in general and active players in the sector.

    Spotlight on fraud & founder misconduct

    Amidst the remarkable growth of Africa’s tech ecosystem, shadows loom over malpractices that impede the full potential and integrity of the continent’s startup landscape. 

    In 2023 alone, numerous unsettling reports emerged, depicting common themes such as financial misappropriation, deficient or corporate malfeasance, instances of sexual harassment, and the prevalence of toxic work cultures.

    Startups like Ghana’s Dash and Float, Egypt’s Capiter, South Africa’s Springleap, and Nigeria-based companies such as PayDay, 54Gene, and Patricia were implicated. 

    More recently, Tingo was charged by the US SEC, accused of engaging in a “massive fraud” involving “billions of dollars of fictitious transactions,” all under the leadership of CEO Dozy Mmobuosi.

    The lessons drawn from the challenges of 2023 underscore the critical need for regulatory clarity to eliminate grey areas in compliance.

    Furthermore, investors must prioritize ensuring proper governance to safeguard the integrity of the African startup ecosystem.

    Mergers & acquisitions become a survival strategy

    Mergers and acquisitions (M&A) have emerged as a primary exit strategy and, in the current depressed funding environment, a lifeline for African startup founders. 

    In Q1 2023 alone, seven M&A deals took place in the African startup ecosystem worth over $710m. Tunisia-based InstaDeep’s $682m acquisition in January by Germany’s BioNTech accounted for much of that.

    By the end of the year’s first half, there had been at least 16 M&A deals per Big Deal data. About half of them reportedly involve struggling startups.

    While this year’s total is likely to be some way off 2022’s 44 deals, one fact remains true: M&As have become a prominent feature of the African tech ecosystem.

    Limited funds and the fragmented nature of the African tech market are major drivers. 

    The presence of numerous small and medium-sized companies across various regions and sectors makes consolidation through M&As a strategic move. 

    This approach creates larger, more diversified startups that can better compete globally and attract investment.

    In addition, African startups are currently viewed as less liquid assets compared to other markets, primarily due to limited exit opportunities. 

    Thus, as the quest for a reliable path to liquidity in the African tech ecosystem grows, M&As become a viable option for venture capitalists and investors to explore.

    Other noteworthy moments and highlights of the year

    • Starlink, a satellite internet service of Elon Musk-owned SpaceX, became operational in 6 African countries
    • Nigeria lifted a ban on cryptocurrency imposed by the Central Bank almost 3 years ago
    • Egypt’s MNT-Halan raised $400m in an equity and debt round that saw it become Africa’s latest unicorn (a private company valued at $1bn or more).
    • Bosun Tijani, founder of CcHUB, was appointed as Nigeria’s minister of communications, innovation, and digital economy
    • Wasoko and MaxAB, Africa’s leading e-retailers from Kenya and Egypt, are exploring a possible deal that could lead to African tech’s largest merger
    • Jumia and Bolt shut down their food delivery businesses amid struggles that underscore the challenging nature of the industry
    • And digital infrastructure, especially data centers, continues to draw the attention and backing of investors—from telco giants to private equity firms.

    Closing Notes

    As 2023 hurtles to a close, the question on everyone’s mind is will 2024 be better?

    Perceptions of industry performance and expectations for the future vary.

    For one, many factors that kept VC activity subdued in the continent this year are still present going into the new year: inflationary pressure, currency volatility, debt worries, muted economic growth, high interest rates, and geopolitical tensions, among others.

    But even amidst the uncertainty, investors remain optimistic and Africa’s tech ecosystem is as resilient as ever.

    We’re down to the last hours of what’s been a rollercoaster year. Daba wishes you happy holidays and a prosperous new year ahead!

  • 2023 Recap: African Largest VC Rounds

    2023 Recap: African Largest VC Rounds

    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!

  • 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

  • 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

  • Faut-il épargner ou investir votre argent ?

    Faut-il épargner ou investir votre argent ?

    Quand il s’agit de gérer vos finances, il est crucial de comprendre la différence entre l’épargne et l’investissement. Les deux jouent des rôles importants dans la sécurisation de votre avenir financier, mais ils servent à des fins différentes.

    Nous expliquons les distinctions entre l’épargne et l’investissement, en fournissant des exemples concrets pour vous aider à comprendre facilement ces concepts.

    Qu’est-ce que l’épargne ?

    L’épargne consiste à mettre de l’argent de côté pour des objectifs à court terme et des urgences. Elle agit comme un filet de sécurité qui offre un accès immédiat à de l’argent lorsque vous en avez besoin.

    Généralement, les économies sont conservées dans des comptes peu risqués et facilement accessibles, tels que des comptes d’épargne réguliers ou des comptes d’épargne à rendement élevé.

    Exemples d’économies

    Fonds d’urgence : Imaginez que votre voiture tombe en panne de manière inattendue ou que vous soyez confronté à des dépenses médicales imprévues. Avoir un fonds d’urgence constitué peut vous aider à couvrir ces coûts imprévus sans vous endetter.

    Objectifs d’épargne à court terme : Disons que vous prévoyez des vacances ou que vous épargnez pour un acompte sur une nouvelle voiture. En mettant de l’argent de côté dans un compte d’épargne, vous pouvez accumuler progressivement les fonds dont vous avez besoin au fil du temps.

    Caractéristiques principales de l’épargne

    Liquidité : Les économies sont très liquides, ce qui signifie que vous pouvez rapidement les convertir en espèces sans subir de sanctions majeures ou de restrictions.

    Faible risque : Les comptes d’épargne sont considérés comme peu risqués car ils sont généralement assurés par le gouvernement jusqu’à une certaine limite, comme la couverture d’assurance de la FDIC aux États-Unis.

    Faible rendement : Bien que les comptes d’épargne offrent l’avantage de la sécurité, ils offrent généralement des rendements plus faibles par rapport aux investissements.

    Aussi à lire : Qu’est-ce qu’un fonds d’urgence ?

    Qu’est-ce que l’investissement ?

    L’investissement implique d’allouer de l’argent avec l’attente de générer un rendement à long terme.

    Contrairement à l’épargne, l’investissement vise à faire croître votre richesse et implique souvent de prendre un certain niveau de risque. Ils offrent la possibilité de rendements plus élevés, mais peuvent également comporter la possibilité de perdre de l’argent.

    Exemples d’investissements

    Actions : Investir dans des actions individuelles de sociétés vous permet de devenir un propriétaire partiel et de potentiellement bénéficier de la croissance et de la rentabilité de la société.

    Obligations : Les obligations sont des instruments de dette où vous prêtez de l’argent à des gouvernements ou des entreprises en échange de paiements d’intérêts réguliers et du remboursement de votre capital à l’échéance.

    Immobilier : L’achat de biens immobiliers dans le but de générer des revenus locatifs ou d’appréciation du capital est une autre forme d’investissement.

    Caractéristiques principales de l’investissement

    Potentiel de croissance : Les investissements ont le potentiel de faire croître votre richesse au fil du temps. En investissant dans des actifs qui augmentent de valeur ou qui génèrent des revenus, vous augmentez vos chances d’atteindre des objectifs financiers à long terme.

    Risque : Contrairement à l’épargne, les investissements comportent des degrés de risque variables. Les actions, par exemple, peuvent connaître de la volatilité, entraînant des pertes potentielles. Il est important de diversifier vos investissements pour atténuer les risques.

    Rendement de l’investissement : Les investissements offrent la possibilité de rendements plus élevés par rapport aux comptes d’épargne. Cependant, il est important de noter que des rendements plus élevés s’accompagnent souvent d’un risque accru.

    Trouver le bon équilibre

    La constitution d’un portefeuille financier sain implique de trouver le bon équilibre entre l’épargne et l’investissement.

    Tandis que l’épargne constitue un filet de sécurité et offre un accès immédiat à de l’argent, les investissements permettent à votre argent de croître à long terme.

    Une combinaison des deux peut vous aider à atteindre vos objectifs financiers, que ce soit l’achat d’une maison, une retraite confortable ou le financement de l’éducation de vos enfants.

    Aussi à lire : Comment investir sur les marchés boursiers africains

    Économiser ou investir ?

    Comprendre la distinction entre l’épargne et l’investissement est essentiel pour les débutants qui se lancent dans le monde des finances personnelles.

    En maintenant une base solide d’épargne et en prenant des décisions d’investissement éclairées, vous pouvez travailler à un avenir financier sûr et prospère.

    N’oubliez pas de consulter un conseiller financier ou de faire des recherches approfondies avant de prendre des décisions d’investissement pour vous assurer qu’elles sont en adéquation avec votre tolérance au risque et vos objectifs.

  • Should You Save or Invest Your Money?

    Should You Save or Invest Your Money?

    When it comes to managing your finances, it’s important to understand the difference between saving and investing.

    Both play important roles in securing your financial future, but they serve different purposes.

    We break down the distinctions between savings and investments, providing real-life examples to help you grasp these concepts easily.

    What is saving? 

    Saving refers to the act of setting money aside for short-term goals and emergencies. It acts as a safety net that provides immediate access to cash when you need it. 

    Typically, savings are kept in low-risk, easily accessible accounts, such as regular savings accounts or high-yield savings accounts.

    Examples of savings

    Emergency fund: Imagine your car unexpectedly breaks down, or you face an unexpected medical expense. Having an emergency fund saved up can help you cover these unforeseen costs without going into debt.

    Short-term saving goals: Let’s say you’re planning a vacation or saving up for a down payment on a new car. By setting aside money in a savings account, you can gradually accumulate the funds you need over time.

    Major features of savings

    Liquidity: Savings are highly liquid, meaning you can quickly convert them into cash without any major penalties or restrictions.

    Low risk: Savings accounts are considered low-risk because they are typically insured by the government up to a certain limit, such as the FDIC insurance coverage in the United States.

    Low return: While savings accounts offer the benefit of security, they usually provide lower returns compared to investments.

    Also Read: What is an emergency fund?

    What is investing? 

    Investing involves allocating money with the expectation of generating a return over the long term. 

    Unlike saving, investing is meant to grow your wealth and often involves taking on some level of risk. They offer the potential for higher returns but may also come with the possibility of losing money.

    Examples of investments

    Stocks: Investing in individual company stocks allows you to become a partial owner and potentially benefit from the company’s growth and profitability.

    Bonds: Bonds are debt instruments where you lend money to governments or corporations in exchange for regular interest payments and the return of your principal amount at maturity.

    Real Estate: Purchasing properties with the intention of generating rental income or capital appreciation is another form of investment.

    Also Read: What are stocks and why invest in them?

    Major features of investing

    Potential for growth: Investments have the potential to grow your wealth over time. By investing in assets that appreciate or generate income, you increase your chances of achieving long-term financial goals.

    Risk: Unlike savings, investments carry varying degrees of risk. Stocks, for instance, can experience volatility, leading to potential losses. It’s important to diversify your investments to mitigate risk.

    Return on investment: Investments offer the potential for higher returns compared to savings accounts. However, it’s important to note that higher returns often come with increased risk.

    Finding the right balance

    Achieving a healthy financial portfolio involves finding the right balance between savings and investments. 

    While savings provide a safety net and immediate access to cash, investments allow your money to grow over the long term. 

    A combination of both can help you achieve your financial goals, whether it’s buying a home, retiring comfortably, or funding your children’s education.

    Also Read: How to invest in African stock markets

    To save or to invest?

    Understanding the distinction between savings and investments is essential for beginners venturing into the world of personal finance. 

    By maintaining a strong savings foundation and making informed investment decisions, you can work towards a secure and prosperous financial future. 

    Remember, consult with a financial advisor or do thorough research before making any investment decisions to ensure they align with your risk tolerance and goals.