Tag: Startups

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.

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 !

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
Comment les Startups en Phase Initiale Peuvent Gagner en Visibilité et Attirer les Investisseurs

Gagner en visibilité et attirer l’attention des investisseurs est essentiel pour les startups en phase initiale qui recherchent des financements. Pourtant, de nombreux fondateurs ont du mal à créer de la traction et à attirer l’attention des investisseurs.

Avec une multitude de nouvelles entreprises émergentes chaque jour, élaborer une approche stratégique pour accroître la visibilité peut faire toute la différence et démarquer votre startup de la foule.

Voici quelques tactiques éprouvées pour aider les startups à gagner la visibilité nécessaire et à attirer l’attention des investisseurs potentiels.

Concevoir un récit captivant

Chaque startup a une histoire, et c’est souvent le récit qui résonne avec les investisseurs. Élaborer une histoire captivante aide votre public à se connecter émotionnellement avec votre mission et votre vision.

Votre récit devrait mettre en avant le problème que vous résolvez, l’écart sur le marché que vous comblez et l’approche unique que vous adoptez.

Tirer parti de la puissance des médias sociaux

Les médias sociaux sont un outil puissant pour la visibilité des startups. Des plateformes comme LinkedIn, Twitter et Instagram offrent une avenue pour mettre en valeur la culture de votre entreprise, vos jalons et votre leadership éclairé.

Partagez régulièrement des mises à jour, engagez-vous avec votre public et participez à des conversations pertinentes pour amplifier la portée de votre startup.

Construire une présence en ligne robuste

Les investisseurs effectuent souvent des recherches approfondies en ligne avant de considérer une startup. Assurez-vous que votre site web n’est pas simplement un espace réservé, mais une représentation convaincante de votre marque.

Optimisez-le pour les moteurs de recherche (SEO) pour accroître la visibilité. Un site web bien conçu avec un message clair, un design convivial et un contenu pertinent peut laisser une impression durable sur les investisseurs potentiels.

S’engager dans le leadership éclairé

Établir votre startup en tant que leader d’opinion dans votre industrie peut attirer à la fois des clients et des investisseurs.

Rédigez des articles de blog perspicaces, contribuez à des publications de l’industrie et participez à des webinaires ou des podcasts.

En fournissant régulièrement des idées précieuses, vous positionnez votre startup en tant qu’autorité, la rendant plus attrayante pour les investisseurs à la recherche d’une expertise sectorielle.

Réseauter efficacement

Le réseautage est un pilier du succès des startups.

Participez à des conférences de l’industrie, rejoignez des incubateurs de startups et connectez-vous avec des influenceurs et des partenaires potentiels.

Construire un réseau solide augmente non seulement la visibilité de votre startup, mais ouvre également des portes à des investisseurs potentiels qui font confiance aux recommandations de leur réseau.

Préparez vos supports

Optimisez votre présentation, votre résumé exécutif et autres documents de votre startup. Articulez clairement et de manière concise votre proposition de valeur, les caractéristiques de votre produit, votre stratégie de mise sur le marché et l’opportunité de marché adressable.

Quantifiez votre traction à ce jour avec des métriques et des KPI qui mettent en évidence la croissance. Ces supports devraient susciter l’intérêt des investisseurs et présenter votre startup comme une opportunité d’investissement attrayante.

Gagner en visibilité et attirer des investisseurs pour les startups en phase initiale nécessite une approche pluridimensionnelle.

N’oubliez pas, le parcours d’une startup ne concerne pas seulement le produit ou le service ; il s’agit de raconter une histoire qui captive le public et laisse une impression durable sur les investisseurs potentiels.

Daba propose diverses opportunités pour stimuler la croissance de votre start-up. Découvrez comment.

En mettant en œuvre ces stratégies, votre startup peut naviguer avec confiance dans le paysage concurrentiel, attirer l’attention qu’elle mérite et élargir les perspectives de financement potentielles et les relations avec les VC et les investisseurs providentiels.

Êtes-vous un fondateur de startup cherchant à accroître votre visibilité auprès de la communauté des investisseurs ? Découvrez comment Daba peut vous aider à atteindre vos objectifs de collecte de fonds. Cliquez ici pour commencer.

January 21, 2024
How Early-Stage Startups Can Gain Visibility and Attract Investors

Gaining investor visibility and attention is a must for early-stage startups seeking funding. Yet many founders struggle to create traction and get on investors’ radars.

With a multitude of new ventures emerging daily, crafting a strategic approach to increasing visibility can make a big difference and set your startup apart from the crowd.

Here are some proven tactics to help startups gain the visibility they need and capture the attention of potential investors.

Craft a compelling narrative

Every startup has a story, and it’s the narrative that often resonates with investors. Crafting a compelling story helps your audience connect emotionally with your mission and vision.

Your narrative should highlight the problem you’re solving, the market gap you’re filling, and the unique approach you’re taking.

Leverage the power of social media

Social media is a potent tool for startup visibility. Platforms like LinkedIn, Twitter, and Instagram provide an avenue to showcase your company culture, milestones, and thought leadership.

Regularly share updates, engage with your audience, and participate in relevant conversations to amplify your startup’s reach.

Daba offers diverse avenues to fuel your startup growth. Find out how

Build a robust online presence

Investors often conduct thorough online research before considering a startup. Ensure your website is not just a placeholder but a compelling representation of your brand.

Optimize it for search engines (SEO) to increase visibility. A well-crafted website with clear messaging, user-friendly design, and relevant content can make a lasting impression on potential investors.

Engage in thought leadership

Establishing your startup as a thought leader in your industry can attract both customers and investors.

Write insightful blog posts, contribute to industry publications, and participate in webinars or podcasts.

By consistently providing valuable insights, you position your startup as an authority, making it more attractive to investors seeking industry expertise.

Network effectively

Networking is a cornerstone of startup success.

Attend industry conferences, join startup incubators, and connect with influencers and potential partners.

Building a strong network not only increases your startup’s visibility but also opens doors to potential investors who trust recommendations from their network.

Prepare your collateral

Optimize your pitch deck, executive summary, and other startup materials. Clearly and concisely articulate your value proposition, product features, go-to-market strategy, and addressable market opportunity.

Quantify your traction to date with metrics and KPIs that highlight growth. These materials should spark investor interest and paint your startup as an attractive investment opportunity.

Gaining visibility and attracting investors for early-stage startups requires a multifaceted approach.

Remember, the startup journey is not just about the product or service; it’s about telling a story that captivates the audience and leaves a lasting impression on potential investors.

Daba offers diverse avenues to fuel your startup growth. Find out how

By implementing these strategies, your startup can navigate the competitive landscape with confidence, attract the attention it deserves, and expand potential funding prospects and relationships with VCs and angels.

Are you a startup founder looking to boost your visibility in the investor community? Find out how Daba can help you achieve your fundraising goals. Tap here to get started.

January 21, 2024
Daba Makes Inaugural Cohort of Visa Inclusive Fintech Accelerator

We are thrilled to announce that Daba Finance has been selected among 21 cutting-edge startups to participate in the inaugural cohort of the Visa Inclusive Fintech Accelerator.

This is an immense milestone for our company as we continue on our mission to provide unified investment opportunities across Africa.

What is the Visa Inclusive Fintech Accelerator?

The Visa Inclusive Fintech Accelerator is a program launched in September 2023 by Visa in collaboration with Plug and Play, one of the world’s largest global innovation platforms. It aims to promote diversity and inclusion in the fintech industry by supporting and empowering diverse founders in the tech industry.

Through this accelerator, Visa and Plug and Play are creating an inclusive platform to help diverse founders overcome unique challenges in the tech startup space. The program provides strategic guidance, access to Visa’s products and insights, mentorship, industry connections, and customized support to selected startups.

Why is this significant for Daba?

Being selected for the inaugural cohort is a huge validation of Daba Finance’s business model and impact. As a startup expanding access to financial products across Africa, this accelerator is perfectly aligned with our goals.

Participating in the program will allow us to tap into Visa’s vast payments expertise and Plug and Play’s global network. We look forward to collaborating with Visa executives to evolve our product.

What does this mean for our users?

For Daba Finance users, our participation in the Visa Inclusive Fintech Accelerator translates to an enhanced product experience.

By integrating Visa’s capabilities, we can offer more seamless and secure payment methods for investing, transferring funds, and accessing financial services through our platform.

The expertise and support we gain through the program will help us accelerate our product development roadmap. We plan to leverage insights from Visa to build more user-centric features that simplify investing and finances for our users.

The Road Ahead

We are honored to be working alongside respected institutions such as Visa and Plug and Play. The learnings from this experience will be invaluable as we fulfill our mission of democratizing investing across Africa.

January 21, 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