Tag: South Africa

From Food to Tech: Where To Invest In Africa In 2024

Africa offers immense investment potential to achieve sustainable development while generating financial returns.

As outlined in the 2022 UNDP Africa Investment Insights Report, data from 10 African countries shows over 150 investment opportunities across diverse sectors.

These present strong multiplier effects towards poverty reduction and shared prosperity on the continent.

Food and beverages, infrastructure, healthcare, education, and renewable energy emerged as the top five sectors for investment opportunities in the report.

Together, they accounted for over 60% of identified prospects spanning Eastern, Western, and Southern Africa.

The Daba Intelligence team further explores five more sectors. Read on to discover where Africa’s hottest investment opportunities lie.

Where To Invest In Africa: Here Are The Top 10 Most Promising Sectors

1. Food and Agriculture

The food and agriculture sector plays an integral economic role across Africa.

Despite the growth of its middle class and a reduced reliance on agriculture, Africa continues to experience a rising population and an increasing demand for food.

As a result, the continent offers substantial investment prospects in the agriculture and agribusiness sectors. These opportunities encompass investments in various aspects of the agricultural value chain, including farmland, agricultural inputs, processing, and agritech innovations.

Sub-Saharan Africa, in particular, faces significant agricultural needs that extend beyond fundamental elements like fertilizer, seeds, and irrigation to include essential infrastructure improvements.

Companies involved in enhancing roads, storage facilities, ports, and power grids in the region can also thrive as they support and facilitate the growth of Sub-Saharan Africa’s thriving agricultural operations.

These investments not only offer potential financial returns but also contribute to addressing the food security challenges that the region faces.

Africa continues to experience a rising population and an increasing demand for food.

2. Infrastructure

Infrastructure needs remain critical for advancing socioeconomic outcomes. Requirements continue rising amidst rapid urbanization and industrialization.

While Africa’s infrastructure shortage is undeniable, it provides abundant investment opportunities – particularly for sectors like construction, telecommunications, energy, and transportation, to name a few.

The AfDB estimates that the continent needs up to $170 billion per year by 2025 to overhaul its infrastructure, with two-thirds of that being needed for entirely new infrastructure and the remaining one-third for maintenance.

Consequently, roads, housing, electricity, waste management, and other long-term projects signal strong public-private partnership potential.

3. Healthcare

The healthcare and prescription medicines sectors are estimated to have a combined worth of $3 billion, with innovator/patented medications contributing around $1.7 billion to this value. Over-the-counter medicines currently hold a value of $378 million.

Given the rise in pharmaceutical companies producing generic medicines, there’s a strong likelihood of increased investment in the nation’s healthcare sector.

This is particularly significant considering that 85% of Africa’s population depends on public health services.

It’s reasonable to anticipate that the public would readily embrace the National Health Insurance Plan, seeking access to more affordable medicines and treatment facilities.

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4. Education

Investing in education in Africa presents an opportunity to support the continent’s growth while yielding returns. Africa’s population is expected to double by 2050, driving demand for quality education.

Investment opportunities exist in building and running schools, educational technology, scholarships, and training programs. Private schools and higher education are particularly promising given the increasing demand for affordable, quality education.

Educational technology also provides a large-scale opportunity. With growing mobile and internet access, online platforms and apps can deliver affordable education in remote, underserved areas.

Investing in education in Africa presents an opportunity to support the continent’s growth while yielding returns.

Providing African students and professionals with scholarships and training is another impactful investment. Partnerships with organizations already active in this space provide ideal investment channels.

Africa’s expanding youth population and demand for quality education create an opportunity to spur development through investment and generate financial returns.

5. Renewable energy

Africa has abundant renewable energy resources that present major investment opportunities as the continent transitions to sustainable energy sources.

Solar and wind power are projected to see massive growth, with installed capacity increasing 100x for solar and 35x for wind by 2050. This will require billions in investment over the coming decades.

Morocco, South Africa, and North African countries will be key markets for solar and wind projects due to strong solar irradiation and wind resources, according to the World Economic Forum.

Hydroelectric power also offers substantial potential, with capacity expected to quadruple by 2050. Sub-Saharan African countries have the greatest remaining hydro resources to tap. Green hydrogen production is another area primed for major growth and exports, with projects already underway in Morocco, Namibia, and South Africa.

Cumulatively, nearly $3 trillion in capital expenditure on renewables and supporting infrastructure will be needed in Africa by 2050. Investing early can allow financial institutions to drive the transition and capitalize on long-term opportunities.

Africa’s CleanTech landscape is experiencing an unprecedented boom, fueled by a combination of abundant renewable resources.

6. Commodity markets

Many African nations rely extensively on the trade of commodities. Some of them navigate the ups and downs of commodity cycles, exemplified by major oil-exporting countries like Angola and Nigeria, as well as copper-producing nations such as the Democratic Republic of Congo and Zambia.

According to UN estimates, Africa holds over 30% of global mineral reserves, including more than half the world’s reserves of gold, chrome, and platinum, a significant proportion of global diamond reserves, and 5% of naturally occurring lithium ore reserves.

The continent is also home to leading global exporters of agricultural commodities like cocoa (Cote d’Ivoire and Ghana), coffee (Ethiopia and Uganda), tea (Kenya), and cotton (Benin, Burkina Faso, Egypt, Sudan, and Mali).

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7. Retail and e-commerce

Africa’s expanding middle class, which has surged from 313 million people over the past 30 years, presents enticing investment prospects in retail-focused sectors.

For context, telecom companies in Africa have added over 400 million subscribers—more than the entire US population—since 2000.

The growth of Africa’s middle class can be attributed mainly to robust economic expansion, a shift towards salaried employment, and a move away from agriculture. The general pace may have been slower than expected but the continent’s demographic makeup remains attractive.

Catering to this market is a rapidly growing e-commerce industry, helped by an increasing number of Internet users. By 2025, Africa is forecast to have over half a billion online shoppers, with a 40% penetration, and a 17% compound annual growth rate (CAGR).

8. Real estate and housing

Urbanization and population growth in numerous African countries have fueled a rising demand for both residential and commercial real estate.

This dynamic landscape offers compelling opportunities in real estate development projects, allowing investors to capitalize on the continent’s growth momentum to potentially profit from the appreciating property values.

Many of the proven investment techniques that have succeeded in the Western world, such as long-term rentals, real estate investment trusts (REITs), vacation rentals, and lease options, can yield comparable returns in the African market.

Investors who prefer a cautious approach can consider options like REITs and other real estate funds. These investment vehicles can provide exposure to the real estate market while diversifying risk and potentially offering more stable returns.

9. Financial services and fintech

Africa’s financial services landscape has evolved over the last two decades and will play a critical role in securing the continent’s future.

Without sustainable funding and commercial credit, project development in key areas such as infrastructure, healthcare, and energy projects remain concepts rather than reality.

Regulatory reforms, the emergence of an urban middle class, and technological advancements allow financial institutions access to funding mechanisms to mitigate risk and maximize returns.

Want to take the next step in tapping Africa’s investment potential? Head over to our website or download the Daba app now to start your journey.

Revenues in the financial services sector at large could grow at about 10% per annum to $230 billion by 2025.

The emergence of fintech-driven solutions particularly holds great promise for this sector. Africa’s fintech potential was around $150 billion in 2020, per a report by McKinsey, fueled by insurance, retail, and SME lending.

Going forward, the market is projected to grow by 10% per year to reach around $230 billion by 2025, with the blockchain, payments, and wallets sectors expected to grow fastest.

10. Technology and Innovation

Africa’s technology sector is experiencing rapid growth, with numerous innovative companies emerging to address real-world challenges and cater to consumer demands.

These African startups enjoy several advantages, including being early movers in the market and aligning with favorable demographic trends.

Despite the global economic slowdown experienced in 2022, African startups managed to secure record levels of funding from venture capitalists in the United States, Europe, and other regions.

Notably, the continent has even given rise to seven unicorns – startups valued at over $1 billion – further underlining the burgeoning potential and success of Africa’s tech industry.

Impact and Returns

Most opportunities are projected to generate a new positive outcome for underserved groups. This indicates they can meaningfully contribute to overcoming pressing sustainable development challenges.

They also offer attractive returns. About half forecast internal rates of return exceeding 20%, alongside high gross profit margins.

However, long investment horizons are common, especially in capital-intensive sectors like transportation and infrastructure where patience is key.

Financing and Implementation

Although some opportunities meet conditions for market-rate financing, most require blended public-private approaches.

These partnerships can address risks related to regulation, affordability, skills gaps, and enabling environment constraints.

Collaborations through regional bodies like the African Continental Free Trade Area also allow businesses to access larger markets, diversify portfolios, and share experiences. Additionally, they enable countries to focus interventions around their comparative advantages.

The Way Forward: Seize Africa’s Investment Opportunities Today

Africa provides abundant investment prospects to simultaneously deliver positive impact and financial gains over the medium to long term.

Institutional investors and development partners should continue working together to turn opportunities into reality in areas including agriculture, infrastructure, healthcare, education, and renewable energy.

And for retail investors, the good news is that the proliferation of investment platforms like Daba makes participating in investment opportunities in Africa’s emerging markets easier than ever.

For more content and analysis on economic trends and investment opportunities in Africa, get the Daba application today! And if you’re an institutional investor ready to explore opportunities tailored to your interests and objectives, fill out this interest form on the Daba website!

February 18, 2024
African Startups Rise to the Climate Challenge
Despite contributing only 3.8% of global greenhouse gas emissions, Africa faces the brunt of climate change’s wrath. Emerging VC-backed innovators aim to change the continent’s fortunes.

In 2022, climate-tech funding in Africa grew 3.5x to over $860m, making climate Africa’s most funded sector after fintech.

The funding was largely driven by clean energy technologies.

Broadly, the cleantech sector attracted the most foreign direct investment (FDI) flows into Africa, per the Africa Attractiveness Report by global consulting giant EY. (You can read our summary of the report here)

The timing of this surge in climate funding couldn’t be better.

Climate change comes to Africa

The scorching heat waves, drying water sources, and erratic weather patterns are no longer distant nightmares for Africa.

Climate change is here, and its impact is undeniable.

Despite contributing only 3.8% of global greenhouse gas emissions, Africa faces the brunt of climate change’s wrath.

For comparison, China, the United States, and the European Union account for 23%, 19%, and 13% respectively.

Yet in 2019, five of the ten countries most affected were African nations, bearing the consequences of devastating weather disasters.

Mozambique, Zimbabwe, Malawi, South Sudan, and Niger faced devastating weather disasters like Cyclone Idai, fueled by scorching temperatures that heated the Indian Ocean and led to heavy rainfall and flooding.

At least five countries in Africa were devastated by Cyclone Idai, one of the continent’s worst natural disasters on record.

In East Africa though, rising temperatures have disrupted the traditional rain patterns that make Ethiopia, Northern Kenya, and Somalia green.

The year 2022 marked a record fifth rainless season in a row, leading to severe drought and hunger for millions in the Horn of Africa, where the United Nations estimates that around 13m people are dealing with severe hunger.

By 2050, the continent’s iconic glaciers on Mount Kilimanjaro, Mount Kenya, and the Ruwenzori Mountains will vanish, a stark reminder of the warming planet.

But Africa isn’t sitting idly by.

The continent hosted its first-ever Africa Climate Change Summit in September, culminating in the historic “Nairobi Declaration.”

This declaration saw African leaders commit to combat climate change through increased investments, a carbon tax, and sustainable development goals.

However, the fight requires more than just declarations.

This is where climate-focused tech startups take center stage.

Africa’s first-ever Climate Change summit in Nairobi saw leaders commit to combating climate change through increased investments, a carbon tax, and SDGs.

African innovators to the rescue

Over 500 startups have emerged across Africa in the last 15 years, offering innovative solutions in agriculture, clean energy, sustainable materials, e-mobility, and nature-based solutions, per a 2022 report by Briter Bridges.

In Ethiopia, for instance, a booming urban population and single-use plastic have seen waste generation skyrocket from 9,700 tonnes/day in 2015 to 12,200 tonnes/day in 2020.

This trend is fueling environmental and health woes and projections warn this figure could double by 2030.

Enter Kubik.

Founded in 2021, the cleantech startup transforms hard-to-recycle plastic waste into low-carbon, affordable building materials.

Buildings account for up to 40% of total global carbon emissions.

This is because of how building materials are produced, what materials are used, and the properties’ energy efficiency once they’re up and running.

Kubik’s mission is to build clean and affordable living for all, solving Africa’s housing and waste crises simultaneously.

Its solution boasts several advantages:
- Cost-effective: Significantly cheaper than conventional materials
- Time-saving: Constructions are twice as fast as traditional methods
- Eco-friendly: Over 5 times less polluting than cement
In a recent oversubscribed seed round, Kubik secured $3.34 million to fuel its growth and expand its reach.

This investment affirms the potential of Kubik’s solution to tackle waste, improve housing, and protect the environment.

Buildings account for 40% of total global carbon emissions. Kubik’s mission is to build clean and affordable living for all.

A look at the types of solutions that populate the climate sector reveals that agriculture and energy—specifically pay-as-you-go solar scale-ups—dominate.

However, the space is getting broader with startups addressing a range of issues.

Here are some other startups leading the charge:
- Coliba: Specializing in the collection and recycling of plastic waste, which is converted into granules and then resold to various industries.
- Amini: Bridging the environmental data gap with AI-powered sensors that monitor air quality and water resources.
- Figorr: Tackling food waste through its AI-powered platform that connects farmers with buyers for unsold produce.
- Powerstove: Providing clean and efficient cookstoves that reduce reliance on firewood and improve health.
- Daystar Solar: Bringing affordable solar power to off-grid communities, empowering households and businesses.
- PEG Africa: Offering pay-as-you-go solar home systems, reaching over 1m customers across Ghana, Senegal, Mali, and Ivory Coast.
- M-Kopa: Another Kenyan champion, providing clean energy solutions to off-grid communities through its pay-as-you-go model.
- Solar Freeze: Empowering smallholder farmers with off-grid solar-powered refrigeration to preserve their produce.
- BasiGo: An electric bus company leasing vehicles to bus owners on a pay-as-you-drive model, facilitating the transition to clean mobility without high upfront costs.
The rise of these startups is fueled by a surge in investor backing.

Globally, climate tech ventures are attracting more capital, and Africa is no exception.

Out of the 500 identified climate-tech startups on the continent, 147 have secured funding since 2015.

More so, at least 230 deals over $1m have been signed in the climate-tech space since 2019, just over 20% of all the deals signed in Africa.

Around 73% of this funding went to energy startups.

Image credit: The Big Deal

This trend is set to be further bolstered by the launch of new climate-tech funds over the past year—despite the global VC funding cooldown.

Some of these include…
- Pan-African venture firm Novastar’s $200m Africa People + Planet fund for startups developing agriculture and climate solutions.
- VC firm Equator’s $40m fundraising to back seed and Series A startups in energy, agriculture, and mobility.
- Catalyst Fund’s new climate-focused $30m fund, now investing in its first cohort of startups.
- Satgana, a new climate tech firm launched in late 2022, with plans to allocate up to 40% of its funds to “planet-positive” startups in Africa.
- There’s the $250m AfricaGoGreen Fund (AAGF), which closed the second tranche of its fundraising in February and counts pay-as-you-go solar providers BBOXX and Solarise as part of its portfolio.
- Also, the Energy Entrepreneurs Growth Fund (EEGF), backed by Shell and Canadian investor FinDev, raised $110m for startups that increase access to clean and reliable energy for African households and businesses.
- E3 Capital (formerly Energy Access Ventures)’s Low Carbon Economy Fund for Africa (E3LCEF), hit its first close in May at $48m.
- Oxfam Novib and Goodwell also recently launched a new $22m Pepea fund to provide venture debt to startups in this space.
- Climate venture builder, Persistent Energy, recently closed a $10m Series C funding round to strengthen its team and scale climate activities in Africa.
- Also, the Climate Investment Funds (CIF), implemented by the AfDB, has supported the development of 39 investment plans across 27 African countries to unlock climate action.
PEG Africa offers pay-as-you-go solar home systems, reaching over 1m customers across Ghana, Senegal, Mali, and Ivory Coast.

These dedicated funds show a sustained commitment to supporting climate-tech innovation in Africa.

While the funding landscape is promising, challenges remain.

Africa still needs more financing for its countries to meet their climate goals by 2030.

Overall climate financing would need to grow from current levels of around $30bn a year to nearly $300bn to meet mitigation and adaptation needs.

Only 14% of total climate finance comes from the private sector, and with only 23 early-stage climate-focused funds in Africa, the pool of investors is limited.

Additionally, the low number of exits (10, all in energy) indicates a long road ahead for commercial capital to enter at scale.

M-Kopa provides clean energy solutions to off-grid communities through a pay-as-you-go model.

Still, the momentum is undeniable.

Climate-related startups in Africa have raised $3.4bn between 2019-2023, nearly 60% of the total funding volume invested in the much more mature fintech sector.

That, coupled with the emergence of innovative solutions and government-backed initiatives, demonstrates a commitment to tackling climate challenges.

Africa is not just facing the brunt of climate change; it is also becoming a breeding ground for innovative solutions that can inspire the world.
February 2, 2024
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.

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January 30, 2024
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!

January 30, 2024
Perspective pour 2024 : Une Année d’Élections en Afrique

Plus d’un tiers des 50 pays devant organiser des élections cette année se trouvent en Afrique.

Le président par intérim de l’armée du Burkina Faso, Ibrahim Traoré. Le pays touché par un coup d’État, ainsi que le Mali et le Tchad, devraient voter cette année si les dirigeants de la junte de ces pays restent fidèles à leur parole.

Cette année sera un record en termes d’élections.

Au niveau mondial, plus de 2 milliards d’électeurs dans 50 pays se rendront aux urnes, selon le Center for American Progress, un institut de politique américain.

Les États-Unis, l’Inde et le Mexique font partie des pays qui tiendront des élections nationales en 2024.

Plus d’un tiers de ces pays, soit plus de 300 millions de personnes, se trouvent en Afrique.

Les élections les plus attendues en Afrique auront lieu dans l’économie la plus industrialisée du continent et dans une nation majeure d’Afrique de l’Ouest.

Ces votes, en Afrique du Sud et au Sénégal, font partie des 19 élections prévues en Afrique cette année, représentant également plus d’un tiers du continent.

La liste inclut également les pays touchés par un coup d’État que sont le Mali, le Tchad et le Burkina Faso, si les dirigeants de la junte de ces pays restent fidèles à leur parole.

Nous donnons ci-dessous un bref aperçu des pays concernés et des enjeux pour certains d’entre eux.

1. Sénégal

Le Sénégal, une nation à l’extrémité ouest de l’Afrique, compte une population de 18 millions de personnes. L’élection présidentielle à venir, prévue pour le 25 février, suscite une attention considérable tant au niveau national qu’international.

Le président Macky Sall, qui a remporté sa première élection en 2012, s’est adressé à la nation lors de son discours du Nouvel An, soulignant la nécessité d’élections pacifiques après une année turbulente marquée par des violences politiques.

L’année précédente a été marquée par des manifestations d’opposition ferventes, avec le maire de Ziguinchor, Ousmane Sonko, faisant face à des défis juridiques ayant entraîné son emprisonnement en juillet.

Malgré les tentatives des autorités de contrecarrer la candidature de Sonko en interdisant une cérémonie de déclaration formelle, lui et ses partisans ont réussi à organiser un événement en ligne sur Facebook le 31 décembre.

Les observateurs internationaux et les analystes politiques africains expriment des inquiétudes, notant que le Sénégal, autrefois considéré comme un bastion de stabilité en Afrique de l’Ouest, semble naviguer sur un chemin précaire pour son avenir démocratique.

L’élection présidentielle au Sénégal, prévue pour le 25 février, suscite une attention considérable tant au niveau national qu’international. Crédit image : France24

2. Mali

Avec une population de 23,6 millions d’habitants, le Mali se prépare à des élections présidentielles prévues en février. Le pays a connu un coup d’État militaire en 2021, conduisant à la mise en place d’un gouvernement militaire engagé à rendre le pouvoir aux civils. Cependant, des retards répétés dans la programmation des élections présidentielles ont suscité des interrogations.

Initialement fixés aux 4 et 18 février, les scrutins ont connu des revers, attribués à des problèmes techniques et à un différend avec Idemia, une entreprise française responsable des passeports biométriques et des bases de données d’état civil. En juin, les électeurs ont approuvé une nouvelle constitution, une condition préalable à la tenue des élections. Néanmoins, des inquiétudes persistent parmi l’opposition et la société civile, craignant l’enracinement potentiel de l’influence militaire à travers la nouvelle constitution.

3. Afrique du Sud

Célébrant 30 ans de démocratie, l’Afrique du Sud, avec une population de 60,7 millions d’habitants, se prépare à des élections parlementaires prévues entre mai et août. Les élections de 2024 pourraient marquer un tournant significatif, car le Congrès national africain (ANC), le parti de Nelson Mandela, court le risque de perdre un vote national pour la première fois depuis la fin de l’apartheid.

Les vulnérabilités de l’ANC comprennent des défis économiques, un chômage élevé, des promesses d’infrastructures non tenues, un creusement des inégalités et des accusations de corruption. Le paysage politique devient plus concurrentiel, signalant un potentiel changement dans la dynamique politique du pays.

4. Rwanda

Le Rwanda, avec une population de 14,3 millions d’habitants, devrait organiser des élections présidentielles et parlementaires le 15 juillet. Le président actuel Paul Kagame, au pouvoir depuis trois décennies, cherche à prolonger son mandat.

La période de campagne électorale s’étend du 22 juin au 12 juillet, mais Kagame, historiquement réélu avec plus de 90% des voix, fait face à une concurrence minimale. Le chef du Parti vert, Frank Habineza, est le seul adversaire connu à ce jour.

Président Paul Kagame du Rwanda. Crédit image: Vanguard News

5. Tchad

Avec une population de 18,6 millions d’habitants, le Tchad prévoit une élection présidentielle en octobre. Suite à un récent référendum constitutionnel à la mi-décembre, le leader de la transition, Mahamat Idriss Déby Itno, a nommé Success Masra, un ancien chef de l’opposition, au poste de Premier ministre pour organiser les élections à venir.

Initialement engagé dans une transition de 18 mois vers des élections, le gouvernement de Déby a prolongé le délai jusqu’en 2024, lui permettant de se présenter à la présidence. Les groupes d’opposition avaient appelé au boycott du référendum, citant des préoccupations concernant l’influence de la junte sur le processus.

6. Tunisie

La Tunisie, qui compte 12,5 millions d’habitants, devrait organiser des élections présidentielles en octobre

Le président actuel Kais Saied, élu en 2021, a accru ses pouvoirs et est candidat à la réélection. Les élections locales en janvier, y compris la sélection d’un nouveau Conseil régional créé récemment, serviront de test pour l’opposition, qui revendique une marginalisation par le régime.

Bien que Saied soit prévu pour remporter la victoire, une crise économique croissante, marquée par l’inflation et le chômage, constitue un défi important pour sa campagne en vue d’un éventuel second mandat.

7. Ghana

Le Ghana, avec une population de 34,4 millions d’habitants, se prépare à des élections présidentielles et parlementaires le 7 décembre.

Le président sortant Nana Akufo-Addo, arrivant au terme de deux mandats, se retire, et le Parti patriotique national au pouvoir vise un troisième mandat consécutif sans précédent.

Le vice-président Mahamudu Bawumia a obtenu la nomination présidentielle du parti au pouvoir, préparant la scène pour une confrontation avec le candidat du Congrès démocratique national de l’opposition, l’ancien président John Dramani Mahama.

Les défis économiques, dont une dette substantielle, exacerbent l’incertitude entourant les élections au Ghana.

Au Ghana, le président sortant Nana Akufo-Addo, arrivant au terme de deux mandats, se retire, alors que les défis économiques, dont une dette substantielle, exacerbent l’incertitude entourant les élections. Crédit image : Vatican News

8. Algérie

L’Algérie, avec une population de 46 millions d’habitants, prévoit des élections présidentielles en décembre. Abdelmadjid Tebboune, au pouvoir depuis quatre ans, a succédé à Abdelaziz Bouteflika, destitué en avril 2019 suite à des manifestations contre sa candidature à un cinquième mandat. Le vote de 2019, lié à Bouteflika, a fait l’objet de boycotts généralisés.

Le mouvement du Hirak, instrumental dans la destitution de Bouteflika, a diminué depuis la période de la COVID-19. Malgré cela, l’Algérie affiche un taux de croissance de 4,2%, d’importantes réserves de change et d’impressionnantes exportations non pétrolières, contrecarrant la tendance plus large en Afrique.

9. Comores

Avec une population de 860 000 habitants, les Comores se préparent à des élections présidentielles le 14 janvier.

10. Togo

En anticipant des élections parlementaires début 2024, le Togo, avec une population de 9,2 millions d’habitants, est sur le point de vivre une transition politique.

11. Mauritanie

La Mauritanie, qui compte 4,9 millions d’habitants, devrait organiser des élections présidentielles le 22 juin. Le processus électoral jouera un rôle crucial dans la formation du paysage politique du pays.

Les élections togolaises devraient avoir lieu début 2024. Crédit image : EWN

12. Mozambique

Le Mozambique, avec une population de 34,4 millions d’habitants, est programmé pour les élections présidentielles et de l’Assemblée de la République le 9 octobre. Les résultats électoraux influenceront la gouvernance et l’orientation politique de la nation.

13. Botswana

Le Botswana, avec une population de 2,7 millions d’habitants, prévoit des élections parlementaires en octobre. Le paysage politique de cette nation stable d’Afrique australe est en attente de changements potentiels.

14. Soudan du Sud

Le Soudan du Sud, qui compte 11,2 millions d’habitants, prévoit des élections présidentielles et parlementaires en décembre. Les élections surviennent dans un contexte de défis, dont les troubles économiques et l’impact plus large de la pandémie mondiale et de la guerre Russie-Ukraine.

15. Madagascar

Madagascar, avec une population de 30,7 millions d’habitants, se prépare à des élections parlementaires prévues en mai. La dynamique politique de cette île de l’océan Indien sera scrutée pendant ce processus électoral.

Une personne tient une pancarte avec une photo du capitaine Ibrahim Traoré lors d’un rassemblement de partisans de la junte du Burkina Faso pour marquer le premier anniversaire du coup d’État ayant porté Traoré au pouvoir à Ouagadougou, au Burkina Faso. Crédit image : REUTERS/Yempabou Ouoba

Dates à annoncer :

16. Burkina Faso

Avec une population de 22 millions d’habitants, le Burkina Faso est sous la domination d’une junte dirigée par le capitaine Ibrahim Traoré depuis 2022. La junte promet un retour à la démocratie avec des élections présidentielles provisoirement prévues pour juillet 2024. Cependant, l’augmentation des attaques djihadistes peut remettre en question le calendrier, suscitant des incertitudes quant aux élections.

17. Maurice

Maurice, avec une population de 1,3 million d’habitants, se prépare à des élections parlementaires. Le paysage politique de cette île de l’océan Indien devrait connaître des changements à travers ce processus électoral.

18. Namibie

La Namibie, avec une population de 2,6 millions d’habitants, prévoit des élections présidentielles et parlementaires. Les résultats électoraux influenceront la gouvernance et les politiques de cette nation d’Afrique australe.

19. Guinée-Bissau

Avec une population de 2,2 millions d’habitants, la Guinée-Bissau se prépare à une élection présidentielle. Les développements politiques dans cette nation d’Afrique de l’Ouest seront étroitement surveillés tant sur le plan régional qu’international.

Malgré l’instabilité politique dans certaines régions de l’Afrique, le continent devrait être la deuxième région à la croissance la plus rapide en 2024, après l’Asie, selon l’Unité de renseignement économique de The Economist.

De plus, sept des dix économies connaissant la croissance la plus rapide au niveau mondial cette année, comme prédit par le FMI, se trouvent en Afrique.

January 12, 2024
2024 Outlook: A Year Of Elections In Africa

More than a third of 50 countries expected to hold elections this year are in Africa.

Burkina Faso’s military interim President Ibrahim Traore. The coup-hit country, along with Mali and Chad are expected to vote this year if the junta leaders in those countries stay true to their word.

This year will be a record-breaking one for elections.

Globally, more than 2 billion voters in 50 countries will head to the polls, according to The Center for American Progress, a US policy institute.

The United States, India, and Mexico are among the countries holding national elections in 2024.

More than a third of those countries – with over 300 million people – are in Africa.

The most anticipated elections in Africa will take place in the continent’s most industrialized economy and a major West African nation.

Those votes — in South Africa and Senegal — are among 19 polls scheduled in Africa this year, also over a third of the continent.

The list also includes coup-hit Mali, Chad, and Burkina Faso – if the junta leaders in those countries stay true to their word.

We provide a quick rundown of the countries below and what’s at stake in some.

1. Senegal

Senegal, a nation on the westernmost tip of Africa, boasts a population of 18 million people. The upcoming presidential election, scheduled for February 25, is generating significant attention both domestically and internationally.

President Macky Sall, who secured his initial election victory in 2012, addressed the nation in his New Year’s speech, emphasizing the need for peaceful elections in the wake of a turbulent year marked by political violence.

The preceding year witnessed fervent opposition protests, with Ziguinchor mayor Ousmane Sonko facing legal challenges that resulted in his imprisonment in July.

Despite authorities’ attempts to thwart Sonko’s candidacy by banning a formal declaration ceremony, he and his supporters managed to host an online event on Facebook on December 31.

International observers and African political analysts express concerns, noting that Senegal, once regarded as a bastion of stability in West Africa, appears to be navigating a precarious path for its democratic future.

Senegal’s presidential election, scheduled for February 25, is generating significant attention both domestically and internationally. Image credit: France24

2. Mali

With a population of 23.6 million, Mali is poised for a presidential election expected in February. The country underwent a military coup in 2021, leading to the establishment of a military government committed to transitioning power back to civilian rule. However, repeated delays in scheduling presidential elections have raised eyebrows.

Initially set for February 4 and 18, the polls faced setbacks, attributed to technical issues and a dispute with Idemia, a French company responsible for biometric passports and civil registry databases. In June, voters approved a new constitution, a prerequisite for conducting elections. Nonetheless, concerns linger among the opposition and civil society, fearing the potential entrenchment of military influence through the new constitution.

3. South Africa

Celebrating 30 years of democracy, South Africa, with a population of 60.7 million, is gearing up for parliamentary elections expected between May and August. The 2024 elections could mark a significant turning point, as the African National Congress (ANC), the party of Nelson Mandela, faces the risk of losing a national vote for the first time since the end of apartheid.

The ANC’s vulnerabilities include economic challenges, high unemployment, unfulfilled infrastructure promises, widening inequality, and accusations of corruption. The political landscape is becoming more competitive, signaling a potential shift in the country’s political dynamics.

4. Rwanda

Rwanda, with a population of 14.3 million, is set to hold presidential and parliamentary elections on July 15. Incumbent President Paul Kagame, in power for three decades, seeks to extend his tenure.

The electoral campaign window spans from June 22 to July 12, but Kagame, historically reelected with over 90% of the vote, faces minimal competition. Green Party leader Frank Habineza is the sole known challenger as of now.

President Paul Kagame of Rwanda. Image credit: Vanguard News

5. Chad

With a population of 18.6 million, Chad is anticipating a presidential election in October. Following a recent constitutional referendum in mid-December, transitional leader Mahamat Idriss Déby Itno appointed Success Masra, a former opposition leader, as prime minister to organize the upcoming elections.

Originally pledging an 18-month transition to elections, Déby’s government extended the timeline to 2024, enabling him to run for president. Opposition groups had called for a boycott of the referendum, citing concerns about the junta’s influence over the process.

6. Tunisia

Tunisia, home to 12.5 million people, is expected to hold presidential elections in October. Incumbent President Kais Saeid, elected in 2021, has increased his powers and is a declared candidate for reelection. Local elections in January, including the selection of a newly created Regional Council, will serve as a test for the opposition, which claims marginalization by the regime.

While Saeid is anticipated to secure victory, a growing economic crisis, marked by inflation and unemployment, poses a significant challenge to his campaign for a potential second term.

7. Ghana

Ghana, with a population of 34.4 million, is gearing up for both presidential and parliamentary elections on December 7.

Incumbent President Nana Akufo-Addo, completing two terms, steps down, and the ruling New Patriotic Party seeks an unprecedented third consecutive stint in power.

Vice-President Mahamudu Bawumia secured the ruling party’s presidential nomination, setting the stage for a face-off with the opposition’s National Democratic Congress candidate, ex-president John Dramani Mahama.

Economic challenges, including a substantial debt load, exacerbate the uncertainty surrounding the elections.

In Ghana, incumbent President Nana Akufo-Addo, completing two terms, steps down as economic challenges, including a substantial debt load, exacerbate the uncertainty surrounding the elections. Image credit: Vatican News

8. Algeria

Algeria, boasting a population of 46 million, is expecting presidential elections in December. Abdelmadjid Tebboune, in power for four years, succeeded Abdelaziz Bouteflika, ousted in April 2019 amid protests against his bid for a fifth term. The 2019 vote, linked to Bouteflika, faced widespread boycotts.

The Hirak movement, instrumental in Bouteflika’s ousting, has waned since the COVID-19 period. Despite this, Algeria exhibits a growth rate of 4.2%, substantial foreign exchange reserves, and impressive non-hydrocarbon exports, challenging the broader African trend.

9. Comoros

With a population of 860,000, Comoros is preparing for a presidential election on January 14.

10. Togo

Anticipating parliamentary elections in early 2024, Togo, with a population of 9.2 million, is poised for a political transition.

11. Mauritania

Mauritania, home to 4.9 million people, is set to hold presidential elections on June 22. The electoral process will play a crucial role in shaping the country’s political landscape.

Togolese elections are expected to be held in early 2024. Image credit: EWN

12. Mozambique

Mozambique, with a population of 34.4 million, is scheduled for both the presidential and Assembly of the Republic elections on October 9. The electoral outcome will influence the nation’s governance and policy direction.

13. Botswana

Botswana, with a population of 2.7 million, expects parliamentary elections in October. The political landscape in this stable Southern African nation is poised for potential shifts.

14. South Sudan

South Sudan, home to 11.2 million people, anticipates both presidential and parliamentary elections in December. The elections come amid challenges, including economic turmoil and the broader impact of the global pandemic and the Russia-Ukraine war.

15. Madagascar

Madagascar, with a population of 30.7 million, is preparing for parliamentary elections expected in May. The political dynamics in this Indian Ocean island nation will undergo scrutiny during this electoral process.

A person holds a sign with a picture of Captain Ibrahim Traore while attending a rally by supporters of Burkina Faso’s junta to mark the one-year anniversary of the coup that brought Traore to power in Ouagadougou, Burkina Faso. Image credit: REUTERS/ Yempabou Ouoba

Dates to be Announced:

16. Burkina Faso

With a population of 22 million, Burkina Faso has been under the rule of a junta led by Captain Ibrahim Traore since 2022. The junta promises a return to democracy with presidential elections tentatively set for July 2024. However, increasing jihadist attacks may challenge the timeline, raising uncertainties about the polls.

17. Mauritius

Mauritius, with a population of 1.3 million, is set for parliamentary elections. The political landscape of this Indian Ocean island nation is likely to witness changes through this electoral process.

18. Namibia

Namibia, with a population of 2.6 million, anticipates both presidential and parliamentary elections. The electoral outcome will influence the governance and policies of this Southern African nation.

19. Guinea Bissau

With a population of 2.2 million, Guinea Bissau is gearing up for a presidential election. The political developments in this West African nation will be closely monitored both regionally and internationally.

Despite political instability in some of Africa’s regions, the continent will be the second-fastest growing major region in 2024 after Asia according to the Economist Intelligence Unit.

In addition, seven out of the top 10 fastest-growing economies globally this year, as predicted by the IMF, are in Africa.

January 11, 2024
Qui remportera la CAN 2023 ? Un modèle d’intelligence artificielle fait des prédictions

La Coupe d’Afrique des Nations (CAN) 2023 débute ce samedi avec la Côte d’Ivoire en tant que pays hôte face à la Guinée-Bissau.

Malgré le fait que le tournoi soit officiellement désigné comme les finales de 2023, il se déroule en 2024.

Les champions en titre, le Sénégal, entrent dans la compétition en tant que favoris, cherchant à devenir la quatrième équipe à remporter consécutivement la CAN, un exploit réalisé pour la dernière fois par l’Égypte de 2006 à 2010.

Pour analyser les potentiels vainqueurs, BBC Sport et Opta utilisent un modèle de prédiction basé sur l’intelligence artificielle.

Sadio Mané tient le trophée de la CAN après que le Sénégal soit sorti victorieux lors de la dernière édition du tournoi. Crédit image : Eurosport

Ce modèle examine la probabilité des résultats des matchs – victoire, match nul ou défaite – en incorporant les cotes du marché des paris et les classements des équipes d’Opta, basés sur les performances historiques et récentes.

Il prend également en compte la force de l’adversaire et la difficulté du parcours jusqu’à la finale, en tenant compte de la composition des groupes et des éventuels affrontements en phase éliminatoire.

Selon le modèle de prédiction, le Sénégal émerge en tant que favori avec une probabilité de 12,8 % de remporter le trophée.

La Côte d’Ivoire suit de près avec une probabilité de 12,1 %, cherchant à remporter leur troisième titre de la CAN après leurs victoires en 1992 et 2015.

L’Égypte, pays hôte en 2006, reste le dernier pays hôte à avoir remporté le tournoi.

Le Maroc, cherchant son deuxième titre de la CAN depuis 1976, et l’Algérie complètent le top cinq avec des probabilités de 11,1 % et 9,7 %, respectivement.

L’Égypte, sept fois championne de la CAN, vise la rédemption après leur défaite déchirante face au Sénégal en finale en 2021.

Mohamed Salah, qui a connu la défaite en finale en 2017, est impatient de remporter son premier titre de la Coupe d’Afrique des Nations.

Le modèle de prédiction donne à l’Égypte une probabilité de 16 % d’atteindre une autre finale cette année, marquant un éventuel retour depuis leur dernier triomphe en 2010.

Les sept meilleures équipes selon le modèle de prédiction comprennent également le Nigeria et le Cameroun, tous deux des poids lourds du football africain.

Le Nigeria, trois fois champion de la CAN (1980, 1994 et 2013), a une probabilité de 8,1 % de remporter le trophée, avec Victor Osimhen, le Joueur de l’Année africain 2023, se démarquant comme un buteur redoutable.

Le Cameroun, cinq fois champion (1984, 1988, 2000, 2002 et 2017), a une probabilité de réussite de 7,5 %.

La performance impressionnante d’Osimhen lors des qualifications, où il a marqué 10 buts pour le Nigeria, met en avant la puissance de marquage des Super Eagles, avec 22 buts au total, soit sept de plus que toute autre équipe.

L’équilibre entre les réalisations historiques, les performances récentes des équipes et les contributions individuelles des joueurs façonne les prédictions, faisant de la CAN 2023 une perspective passionnante pour les fans et les passionnés de football.

En conclusion, alors que la Coupe d’Afrique des Nations 2023 se déroule en 2024, la compétition est sur le point de livrer des moments palpitants.

Le modèle de prédiction basé sur l’intelligence artificielle suggère que le Sénégal, la Côte d’Ivoire et l’Égypte sont les principaux prétendants, tandis que le Nigeria et le Cameroun, avec leur riche histoire du football, ajoutent une couche supplémentaire d’excitation au tournoi.

Le terrain est prêt pour une bataille intense alors que ces équipes luttent pour le titre prestigieux du football africain.

Divulgation : Ce blog a été sourcé à partir de Opta Analyst et régénéré à l’aide de l’IA.

January 11, 2024
Who Will Win Afcon 2023? An AI Model Predicts

The 2023 Africa Cup of Nations (Afcon) kicks off this Saturday with Ivory Coast hosting Guinea-Bissau.

Despite the tournament being officially labeled as the 2023 finals, they are taking place in 2024.

The reigning champions, Senegal, enter the competition as favorites, seeking to become the fourth team to win consecutive Afcons, a feat last achieved by Egypt from 2006 to 2010.

BBC Sport and Opta utilize an artificial intelligence prediction model to analyze the potential winners.

Sadio Mane holds the AFCON trophy after Senegal emerged victorious in the last edition of the tournament. Image credit: Eurosport

This model examines the probability of match outcomes—win, draw, or loss—by incorporating betting market odds and Opta’s team rankings, which are based on historical and recent performances.

It also considers opponent strength and the difficulty of the path to the final, factoring in group compositions and potential knockout stage match-ups.

Senegal emerges as the front-runner with a 12.8% chance of lifting the trophy.

Ivory Coast closely follows with a 12.1% probability, aiming for their third Afcon title after victories in 1992 and 2015.

Egypt, the host nation in 2006, remains the last host to win the tournament.

Morocco, seeking their second Afcon title since 1976, and Algeria round off the top five contenders with 11.1% and 9.7% chances, respectively.

Egypt, a seven-time Afcon champion, eyes redemption after their heartbreaking loss to Senegal in the 2021 final.

Mohamed Salah, who experienced defeat in the 2017 final, is eager to secure his first Africa Cup of Nations title.

The prediction model gives Egypt a 16% chance of reaching another final this year, marking a potential comeback since their last triumph in 2010.

The top seven teams in the predictor model include Nigeria and Cameroon, both heavyweights in African football.

Nigeria, three-time Afcon winners (1980, 1994, and 2013), have an 8.1% chance of lifting the trophy, with Victor Osimhen, the 2023 African Footballer of the Year, standing out as a potent goalscorer.

Cameroon, five-time champions (1984, 1988, 2000, 2002, and 2017), hold a 7.5% chance of success.

Osimhen’s impressive performance in the qualifiers, where he scored 10 goals for Nigeria, emphasizes the Super Eagles’ goal-scoring prowess, with 22 overall goals, seven more than any other side.

The balance between historical achievements, recent team performances, and individual player contributions shapes the predictions, making the 2023 Afcon an exciting prospect for fans and football enthusiasts alike.

In conclusion, as the 2023 Africa Cup of Nations unfolds in 2024, the competition is poised to deliver thrilling moments.

The AI prediction model suggests Senegal, Ivory Coast, and Egypt as the primary contenders. Nigeria and Cameroon, with their rich footballing history, add an extra layer of excitement to the tournament.

The stage is set for an intense battle as these teams vie for the prestigious title in African football.

Disclosure: This blog was sourced from Opta Analyst and re-generated using AI.

January 11, 2024
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!
December 31, 2023
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!

December 24, 2023