Foreign investment in African countries has experienced significant growth and transformation in recent years, marked by dynamic trends, sectoral diversification, and evolving partnerships between African and foreign entities.

In 2020, Foreign Direct Investment (FDI) flows into Africa declined by 16% to $40 billion, primarily due to the COVID-19 pandemic, but a recovery was projected with a 5% growth in 2021 as investor interest renewed and Chinese investment slowed, opening opportunities for other nations .

By 2022, private equity and venture capital investments surged by 66% year-over-year to $7.70 billion, the highest in five years, driven by major deals such as the proposed acquisition of Mediclinic International PLC valued at over $5 billion .

The International Finance Corporation (IFC) aims to mobilize $10 billion of private sector investment annually into Africa by 2030, signaling a strong commitment to enhancing investment flows .

In 2023, global FDI increased by 3% to $1.37 trillion, with Africa’s risk rating classified as sensitive, reflecting a cautious but optimistic investment climate .

Analysts project Africa’s population to reach 2.53 billion by 2050, potentially generating $16.12 trillion in combined consumer and business spending, presenting substantial opportunities for foreign investment .

Geographically, investment has concentrated in specific regions and countries.

West Africa has emerged as a favored region, with 246 recorded deals worth $1 million or more between 2019 and 2023, followed by East Africa with 175 deals .

Key countries attracting major investments include South Africa, Nigeria, Ghana, Kenya, and Egypt, regarded as "beacon economies" for technology investments .

The UK held $65 billion in total FDI stock in Africa as of 2020, mainly in oil, gas, mining, and financial services, with minimal investment in clean energy .

Significant infrastructure investments include the £1.2 billion development of the new port of Ndayane in Senegal by DP World, expected to enhance Senegal’s role as a trade hub in West Africa, boosting trade and economic growth .

Ethiopia, Kenya, Nigeria, and Egypt are also recognized as powerhouse markets for private sector investments .

Sectorally, foreign investment in Africa is increasingly diversified.

The fintech sector is rapidly expanding, with revenues projected to reach $30 billion by 2025.

The number of tech startups tripled from 2020 to 2021, with fintech companies dominating the newly minted unicorns .

Venture capital is increasingly focused on tech sectors such as fintech, edtech, and meditech.

For example, Norrsken22, an Africa-focused venture capital firm, raised $205 million to invest in tech startups across the continent .

Healthcare is gaining prominence, especially post-pandemic, with increased attention on vaccine and therapeutic manufacturing capabilities.

Demand for vaccines in Africa is expected to double by 2040 .

The energy sector is a key focus, with expectations of a ten-fold increase in power generation capacity by 2065 to meet rising demand, driven by Africa’s abundant natural resources and renewable energy potential .

Infrastructure development remains a central theme, with the G7’s Partnership for Global Infrastructure Initiative (PGII) committing $600 billion to fund infrastructure projects in developing countries, with a particular focus on Africa.

Within this, the U.S.

plans to mobilize $200 billion over five years, including projects such as a $2 billion solar energy project in Angola and hospital construction in Côte d'Ivoire .

The European Commission announced an investment funding package for Africa worth EUR 150 billion in February 2022 under the EU Global Gateway Investment Scheme, aimed at addressing infrastructure needs .

In the agricultural sector, foreign investment has also been robust.

AFEX, a Lagos-based commodities exchange platform, has facilitated $320 million in agribusiness investments impacting 1.3 million farmers, with plans to raise this to $1 billion and reach 10 million people through expansion into 10 markets over the next few years .

The African Development Bank (AfDB) and the Canadian Government launched the Agri-food SME Catalytic Financing Mechanism, contributing CAD 100 million (approximately $73.5 million) to support small and medium-sized enterprises (SMEs) in agriculture .

The AfDB and partners are raising $520 million for the first phase of Nigeria’s Special Agro-industrial Processing Zones Programme (SAPZ), expected to generate 25,000 to 30,000 direct jobs in Nigeria alone .

The Global Agriculture and Food Security Program (GAFSP) announced $220 million in new agricultural investment grants to 15 national governments, including several African countries .

Major foreign companies and investors have played pivotal roles in Africa’s investment landscape.

Chinese investment has historically been significant, with $153 billion committed to public sector borrowers between 2000 and 2019.

However, new loan commitments from China dropped to $7 billion in 2019, indicating a shift in investment dynamics .

Chinese companies accounted for 31% of infrastructure contracts valued at $50 million or more in 2022, compared to 12% for Western firms, largely due to the Belt and Road Initiative .

Google has committed $1 billion to support digital transformation in Africa, aiming to enhance internet access and foster entrepreneurship .

American companies are increasing their presence, supported by agreements such as President Biden’s new trade deal to strengthen US-Africa economic ties .

The Cairo Angels Syndicate Fund (CASF) invested in Finclusion Group, marking its second investment outside Egypt and reflecting growing pan-African financial services interest .

Development Partners International (DPI) raised $900 million for its African Development Partners III Fund, focusing on innovation-led companies across various sectors .

U.S.-based Everstrong Capital is leading the construction of the Usahihi Expressway in Kenya, a $3.6 billion project aimed at improving transportation between Nairobi and Mombasa .

African entities have formed numerous partnerships with foreign companies to facilitate investment and development.

The African Development Bank (AfDB) actively encourages US investors to engage with Africa, highlighting the continent’s potential as a secure and profitable market.

Private equity deals increased from 230 in 2019 to 255 in 2020, indicating growing investor confidence .

Moroccan banks have expanded their investments across Africa, generating a significant portion of profits from operations outside Morocco, demonstrating regional integration and partnership growth .

The Alliance for Special Agro-Industrial Processing Zones, supported by the AfDB and other partners, aims to boost agro-industrial growth in Africa with a commitment of $3 billion .

The Africa CEO Forum, held in Kigali, Rwanda, brought together over 2,000 business leaders, investors, and policymakers to discuss the continent's development.

Access Holdings and the Aig-Imoukhuede Foundation announced a commitment of $300 million over 20 years to support African governments' initiatives, showcasing a significant partnership between African entities and foreign investors .

The Arab Bank for Development in Africa (BADEA) committed $300 million to support SMEs in Africa, with an additional $40 million allocated in 2022 .

Technology has become a central driver of foreign investment, with African economies encouraged to integrate more effectively into technology-intensive global supply chains .

The rapid penetration of mobile technology and internet access is transforming the African market, with the internet economy projected to reach 5.1% of GDP (approximately $185 billion) by 2025 .

The fintech sector is experiencing rapid growth, with revenues expected to reach $30 billion by 2025 .

The Nigerian government’s Digital and Creative Enterprises Programme (i-DICE) aims to attract approximately $695.80 million in investments from 2022 to 2026, with an expected creation of 6.1 million jobs .

The MultiChoice Africa Accelerator Programme has secured $16 million in funding for six emerging businesses in its first year and has since expanded to eight more African countries, aiming to equip startups with skills and access to transformative business funding .

The Norrsken Foundation launched a $200 million fund targeting technology companies in financial services, healthcare, and education .

The Norrsken22 fund specifically raised $205 million to invest in tech startups across South Africa, Nigeria, Ghana, Kenya, and Egypt .

Foreign investment in African infrastructure has also been robust, with commitments exceeding hundreds of billions of dollars from global initiatives like the G7’s PGII, the European Commission’s Global Gateway, and major financial institutions such as the AfDB and British International Investment Plc (BII), which aims to invest $60 billion in Africa over

Foreign investment in African countries has experienced significant growth and transformation in recent years, marked by dynamic trends, sectoral diversification, and evolving partnerships between African and foreign entities.

In 2020, Foreign Direct Investment (FDI) flows into Africa declined by 16% to $40 billion, primarily due to the COVID-19 pandemic, but a recovery was projected with a 5% growth in 2021 as investor interest renewed and Chinese investment slowed, opening opportunities for other nations .

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By multiplying the heavy infrastructure projects in Africa, China, and Russia aim to establish their influence in the countries of the continent, which risk their part to find themselves "trapped", warn experts.

Railway lines, and civil infrastructure: China is multiplying gigantic projects in cooperation with African states, of which it is becoming one of the main donors.

"One in three major infrastructure projects in Africa is built by Chinese state-owned companies, one in five is financed by a Chinese institutional bank," says Paul Nantulya, of the Africa Center for Strategic Studies, who report of the US Department of Defense.

Beijing is taking advantage of the void left by the withdrawal of Western countries, which are more hesitant to finance these projects. "The Chinese saw this void and decided to invest in infrastructure," remarks Mr. Nantulya.

But at what cost? Anna Borshchevskaya , of the Washington Institute, think tank, points to a "debt trap" for African countries. “China offers loans for expensive infrastructure projects” and “when a country cannot repay its loan, China takes control of its strategic assets,” she says.

During her visit to Senegal in January, U.S. Treasury Secretary Janet Yellen called on African countries to _"be careful about tempting deals."_These can "be opaque and ultimately fail to help the people they were meant to help," she said, referring to deals China has made in Africa.

Many of the poorest states are heading towards over-indebtedness, or even default, UN agencies said at the conference of least developed countries organized by the United Nations in Qatar in early March.

“China should be the last to be accused (of using) the debt trap,” Chinese Foreign Minister Qin Gang retorted on March 7 at a press conference. "China has worked hard to help troubled countries and is the main contributor to the G20 debt service suspension initiative," he added.

In Kenya, one of the gigantic projects carried out by China is the railway line linking the city of Mombasa to the Rift Valley, at a cost of five billion dollars, 90% financed by Beijing. China is Kenya's second-largest donor, after the World Bank.

Tanzania has signed a $2.2 billion contract with a Chinese company for a rail line linking the country's main port to its neighbors.

While some projects turn out to be profitable, the real benefit so far lies with Beijing, with maintenance contracts that can last up to 99 years, according to Mr Nantulya, who adds that the local impact is low because the employees are overwhelmingly Chinese.

The expert also recalls that the debt crisis of the 1990s in Africa was caused by the West and not by China or Russia.

The main country exporting arms to Africa, Russia, for its part, is strengthening its presence on the continent thanks in particular to mining projects granted to the private paramilitary group Wagner, suspected of abuses in Moscow's war against Ukraine.

In January, the United States accused Wagner of "widespread human rights violations and natural resource extortion" in Africa. Accusations reiterated by the European Union, which took sanctions against the group in February.

Mr Nantulya notes that the group operates in Mali, Sudan, and the Central African Republic, but not "in democratic environments", citing Ghana, Namibia, and Senegal. Experts have also denounced the environmental impact of Chinese and Russian projects on the continent.

Both countries are "notorious for greater negligence when carrying out their projects, compared to their Western counterparts" , underlines Ms. Borshchevskaya. "China is the world's largest emitter of greenhouse gases" and finances "coal power plants abroad", she adds.

And "Russia's mining projects ... have reportedly resulted in high levels of toxic metal compounds, pollution of groundwater resources, soils and vegetation."

In Liberia, these impacts are "serious", points out Davestus James, of the Liberia Center for Peacebuilding and Democracy. “Citizens are victims of their own resources,” he says. "The erosion caused by the mines pollutes drinking water (...), the resources are also monopolized and exported to the detriment of the citizens."

By 2022, private equity and venture capital investments surged by 66% year-over-year to $7.70 billion, the highest in five years, driven by major deals such as the proposed acquisition of Mediclinic International PLC valued at over $5 billion .

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Content: The African Development Bank (AFDB) and its partners plan to raise $520 million for the first phase of Nigeria’s Special Agro-industrial Processing Zones Programme (SAPZ). The Special Agro-industrial Processing is a flagship initiative of the Bank’s ‘Feed Africa’ strategic priority. The programme aims to provide end-to-end solutions and services that reduce the risk involved in the production, processing, and marketing operations of private sector actors as they boost manufacturing and transformation capacity in production areas. The result is improved livelihoods for millions in the rural areas as well as poverty reduction. Both Federal and State governments in the country have expressed overwhelming support for the initiative.

At a briefing session last week, Dr. Zainab Shamsuna Ahmed, Minister of Finance, Budget, and National Planning reaffirmed the federal government’s commitment to implement enabling policies and incentives to attract private sector investment in the zones. Ahmed explained that the government is committed to successfully implementing the programme to increase agricultural production, reduce poverty, and scale up job creation in the country. SAPZ could generate 25,000 to 30,000 direct jobs

The participants, representatives of the African Development Bank Group, the International Fund for Agricultural Development (IFAD), and the Islamic Development Bank (IsDB), provided progress updates on the scheme, following their consultations with key stakeholders within the public and private sectors. The programme will be launched in 18 African countries, including Nigeria, where the first phase is already underway. The Nigeria SAPZ programme consists of four mutually reinforcing components – infrastructure development and agro-industrial hubs management; agriculture productivity and production; policy and institutional development; and programme coordination and management.

The Director-General of the AFDB Nigeria Country Department, Lamin Barrow, said, “The Bank and its development partners are mobilizing $520 million to co-finance the first phase of the program in Nigeria, be implemented in phases across six geo-political zones.” All 36 States in Nigeria and the Federal Capital Territory would be eligible to participate in the SAPZ programme. In addition to the Federal Capital Territory and seven states – Kaduna, Kano, Kwara, Imo, Cross River, Ogun, and Oyo – participating in Phase 1, several other states have indicated an interest in the SAPZ programme. These include Bauchi, Lagos, Niger, Jigawa, Ekiti, Lagos, Taraba, Benue, Sokoto, Ondo, Nasarawa, Gombe, and Kogi.

Prof. Oyebanji Oyeleran-Oyeyinka, the Senior Adviser on Industrialization to the President of the AFDB, stated, “The zone model is an explicit industrialization strategy to transform poor rural spaces into zones of prosperity, stem rural-urban migration, end human insecurity caused by herder-farmer clashes, and provide employment to Nigerian youths.”

Minister of Industry, Trade and Investment, Otunba Richard Adebayo, commended the strategic initiative of the African Development Bank and its partners, saying, “Strong private sector participation will ensure that the project aligns with the federal government’s industrialization agenda.”

The AFDB’s Vice President for Agriculture, Human, and Social Development, Beth Dunford, emphasized that private sector investment, as well as having the right policies in place, are critical to the success of SAPZs. He promised that, as in other countries, SAPZ will create jobs, promote skills and agricultural value chain development in Nigeria.

IFAD’s Associate Vice President for Programme Management, Donald Brown, said, “This flagship project will enable us to take our relationship with the African Development Bank to another level. Our relationship started 43 years ago, and since then, we have worked together on 52 projects. But I think the Special Agro-industrial Processing Zones are the biggest and most high-profile project that IFAD and the Bank will work on together.”

Solomon Quaynor, African Development Bank’s Vice President for Private Sector, Infrastructure and Industrialization, noted, “The quality of industrial policies and design will influence the quality of private sector operators that can be attracted into the Special Agro-industrial Processing Zones.”

For ISDB, Mr. Ougfaly Badji, Senior Agricultural Economist, said the zones would enable producers, processors, and the entire agricultural value chain in Nigeria, become more functional and profitable.

 AfDB’s intervention funds in Nigeria

The AfDB is a financial provider to African governments and private companies investing in the regional member countries. The AfDB mission is to help reduce poverty, improve living conditions for Africans and mobilize resources for the continent’s economic and social development.

Combating poverty is at the heart of the continent’s efforts to attain sustainable economic growth. To achieve this, the Bank seeks to stimulate and mobilize internal and external resources to promote investments and provide its regional member countries with technical and financial assistance.

In 2020, the AFDB approved $300 million for the Federal Ministry of Agriculture and Rural Development to implement the Special Agro-Industrial Processing Zones (SAPZ) project in Nigeria. The sum of $250 million was also invested in the Federal Capital Territory (FCT) Abuja to improve technology, agriculture, water supply, and sanitation in satellite towns.

This year it approved a $50 million loan facility to First City Monument Bank (FCMB) to support local enterprises and women-led businesses in agribusiness, manufacturing, healthcare, and renewable energy. These are just a few of the numerous intervention funds offered by the Bank.

Written by Adekunle Agbetiloye

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What trends are emerging for African startups in 2022?

significant merger and acquisition activity

The International Finance Corporation (IFC) aims to mobilize $10 billion of private sector investment annually into Africa by 2030, signaling a strong commitment to enhancing investment flows .

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Content: News

November 13, 2023

We are building power house around investment in Africa – Adesina

AfDB President, Dr. Akinwumi Adesina

By Jimoh Babatunde

The President of the African Development Bank , Dr. Akinwumi Adesina, says the bank is building a formidable powerhouse around investments in Africa, that will deliver transformative impacts on the lives of people.
He made this known in the Moroccan city of Marrakech, weekend, at the close of the day global event, Africa Investment Forum’s 2023.

The Africa Investment Forum’s 2023, which drew over 1,000 delegates from more than 60 countries , generated $34.82 billion in investment interest for infrastructure, agriculture, health, and creative industry projects.
Speaking on the event with the theme “Unlocking African Value Chains,” Adesina said “We are building a formidable powerhouse around investments in Africa, that will deliver transformative impacts on the lives of people.
“That is the bottom line of the Africa Investment Forum: investing to improve lives.”
The African Development Bank Group President, and Chairperson of the Africa Investment Forum, Dr. Akinwumi Adesina,thanked Moroccan King Mohammed VI who placed the event under his high patronage.

“Morocco is the right choice. We have been treated to incredible hospitality. The decision of the Africa Investment Forum founding partners to hold the 2023 Market Days in Marrakech two months after September’s devastating earthquake, and the support and resilience of the Kingdom and government of Morocco is highly commendable.”

Morocco’s Minister of Economic Inclusion, Small Business, Employment and Skills Younes Sekkouri, said the Forum underlined the critical importance of South-South partnerships and the crucial issue of financing infrastructure.

“Africa is at the forefront of international attention as one of the most dynamic and promising markets in the world…The Africa Investment Forum has been a turning point to explore these opportunities, discuss challenges and solutions and strengthen the partnerships necessary to realise our aspirations,” Sekkouri said.

Among delegates were several African heads of state and government, including President Azali Assoumani of Comoros and current chair of the African Union, President Samia Suluhu Hassan of Tanzania, President Julius Maada Bio of Sierra Leone, Rwanda’s Prime Minister Eduoard Ngirente. Also in attendance was the Prime Minister of Barbados, Mia Mottley.

The Africa Investment Forum is a multi-stakeholder platform focused on continental dealmaking and project facilitation between project sponsors, policy makers and investors. With this edition, the Forum has attracted nearly $180 billion in investment interest since it was launched in 2018.

Deals covered several sectors including the Mtwara-Mbamba Bay standard Gauge railway line in Tanzania, and the Mangapwani II Integrated Port in Zanzibar. There were also deals in agri-business, renewable energy, creative industries and healthcare.
At the launch event of the Alliance for Special Agro-Industrial Processing Zones, the African Development Bank, the Africa Export-Import Bank, the United Nations Industrial Development Organization, committed $3 billion to the alliance.

Founding partners commend Market Days

The Chief Executive Officer of the Islamic Trade Finance Corporation Eng. Hani Salem Sonbol, representing the President of the Islamic Development Bank Dr. Muhammed Sulaiman Al Jasser, said Africa was a land of boundless possibilities and a dynamic engine of growth.

“As a founding partner of the Alliance for Special Agro-Industrial Processing Zones, IsDB committed $300 million to fuel Africa’s agro-industrial growth. We are ready to partner with investors, businesses, and development partners to unlock the full potential of the continent,” he said.

The Africa Investment Forum showcased several key side events including regional transport corridors, a roundtable with a Japanese business delegation, and a Mayor’s Forum on leveraging cities and municipalities to unleash growth and development.
The Mayoral event included mayors and governors from Lagos, Nairobi, Addis Ababa, Abidjan and ministerial representation from Rwanda.

What trends are emerging for African startups in 2022?

In 2023, global FDI increased by 3% to $1.37 trillion, with Africa’s risk rating classified as sensitive, reflecting a cautious but optimistic investment climate .

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Content:
BUSINESS DIPLOMACY AND AFRICA’S DEVELOPMENT

  The Africa CEO Forum provides opportunity for African businesses to deploy the art of business diplomacy to their advantage, writes ETIM ETIM

From May 16 to 17, over 2,000 of Africa’s business leaders, investors, policymakers and political leaders as well as their counterparts from around the world met in Kigali, Rwanda under the auspices of the Africa CEO Forum 2024 to discuss the continent’s development, opportunities and challenges. The Africa CEO Forum is the largest international meeting of the African private sector, and is typically two days of conferences, debates, panel discussions and high-level meetings dedicated to highlighting the driving role of the private sector in the development of the continent. Rwanda is hosting it for the second time since its maiden edition, held in Geneva, 10 years ago. Last year, it was held in Abidjan and next year, it is going to somewhere in North Africa. Nigeria has never hosted it, and that’s surprising. You can think of the Forum as our own equivalent of the World Economic Forum (WEF), which holds in Davos, Switzerland, every January. The 2024 CEO Forum in Kigali was the biggest since its inception, according to the Chief Executive of the Forum, Amir Ben Yahmed. The theme this year was ‘’At the Table or On the Menu? A Critical Moment to Shape a New Future for Africa.” President Paul Kagame and a few African Heads of States and Governments were there. In attendance were many notable Nigerian businesses and NGOs. Kagame gave a brief opening statement.

The phrase, ‘’At the Table or On the Menu’’ was popularised by the US Secretary of State Antony Blinken at the Munich Security Conference last November. Responding to the moderator’s question concerning tensions in the US-China relations, Blinken had said ‘’if you are not at the table at the international systems, you’re going to be on the menu’’. Blinken had also used the same phrase in 2022 to describe relations between the two superpowers. But he did not invent this coinage. As far back as 1993, this phrase was used in an article in an American Middle East Affairs journal, describing the situation in Lebanon at that time. At a time that our continent seems to be making little progress in the global stage, it was therefore apt that the Africa CEO Forum 2024 adopted this same phrase as its theme. It was also the central point of discussions among panel members on the opening day of the summit. The panelists were Group CEO of MTN, Ralph Mupita; Regional VP for Africa, IFC, Sergio Pimenta; Access Holdings Chairman, Aigboje Aig-Imoukhuede; Rwanda Minister of State in charge of Public Investments and Resource Mobilization, Jeanine Munyeshuli, and President of Arab Bank for Economic Development in Africa, Sidi Ould Tah.

It was a very enriching and profound discussion on the experiences and future of our continent. Aig-Imoukhuede opened his contributions by acknowledging that the theme was quite poignant given that this year marks the 140th anniversary of the Berlin Conference. ‘’At the Berlin Conference, Africa was at the table, but that’s where they had us for breakfast, lunch and dinner,” he said, eliciting applause and laughter. “But Africa has come a long way since then. Today, there are many tables across the world in IMF/World Bank (finance), WHO (health), WTO  (Trade), G20 (politics), etc., and it is important to note that Africans are CEOs of some international organisations in these areas,” he added. In as much as Africans are now at the table, he however wondered whether we are sitting on the right seats or low stools, eliciting another round of laughter and applause. The Access Holdings chairman elucidated further that Africans should create their own tables just like the Asians have done. ‘’Our big population, common markets and youths should give us a table for the future’’ he said. He noted that Africans have made considerable progress in finance, noting that foreign banks that have divested from the continent have been replaced by African banks.

 He illustrated: ‘’If an African investor, for example, goes to the Eurobond market, he should be ready to be dictated to by the regulators and the operators in that market; and they necessarily don’t have your interest in mind. But if an African investor goes to an Afrobond market to raise capital, chances are that the market will be sympathetic to Africa’s needs and nuances, but the standards and regulations should not be lower than what you have in the Eurobonds markets.” He called for partnership between the public and private sectors in the continent and announced that Access Holdings and the Aig-Imoukhuede Foundation are launching a Super NGO which will provide funding and talent for transformational government initiatives that delivers much needed value. The Aig-Imoukhuede Foundation and Access Bank Group have pledged $300 million over the next 20 years. Access Bank has committed $200 million and the Aig-Inoukhuede Foundation committed $100 million.

The African-led Super NGO will be established in partnership with academics, experts and philanthropists across the globe who are committed to closing the gap between Africa and the rest of the world. The NGO will work with African governments to provide the funding, governance and talent. He invited other businesses to join him in promoting the initiatives. The commitments, spread over 20 years, will fund African governments’ initiatives with proven potentials to transform national economic performance.

Said Aig-Imoukhuede: “African leaders cannot sit back and watch the 4th Industrial Revolution transform the rest of the world while leaving Africa falling further behind. We have to create our own ‘table’ by using technology to unlock the power of our youth, giving Africa a greater voice in the world. It’s today’s leaders who will determine whether or not we grab this opportunity.” The Africa CEO Forum and similar platforms provide ample opportunity for African businesses in general and Nigeria’s companies in particular to deploy the art of business diplomacy to their advantage and to the benefit of the continent.

Business diplomacy, according to specialists in that area, is the capacity to build and maintain strong relationships with several domestic and international stakeholders to shape and influence the environment and eventually create a favourable business environment and exploit new opportunities. It is an important business tool in today’s globalised markets, and its goal is to create and manage efficient networks of information that allow the company to influence the policy environments in their favour and predict future issues. This is why key African businesses and their partners have been the major sponsors of the CEO Forum, with the 2024 edition backed mainly by the MTN Group; IFC; Access Holdings; The Coronation Group and the Aig-Imoukhuede Foundation.

Etim is a Journalist

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Analysts project Africa’s population to reach 2.53 billion by 2050, potentially generating $16.12 trillion in combined consumer and business spending, presenting substantial opportunities for foreign investment .

What trends are emerging for African startups in 2022?

Geographically, investment has concentrated in specific regions and countries.

Geographically, investment has concentrated in specific regions and countries.

Geographically, investment has concentrated in specific regions and countries.

West Africa has emerged as a favored region, with 246 recorded deals worth $1 million or more between 2019 and 2023, followed by East Africa with 175 deals .

Title:

Content: British International Investment Plc (BII) aims to invest $60 billion in Africa over the coming five years, Bloomberg reported on July 27th.

The investments will be made in several fields including renewable power and digital infrastructure, along with supporting women-owned businesses.

BII will pay attention to the powerhouse markets in Ethiopia, Kenya, Nigeria, and Egypt, with the investments being focused on the private sector.

The support plan, which is a part of a global program worth $10 billion, covers a $76 million contribution to a $500 million fund being arranged by Old Mutual Ltd’s African Infrastructure Investment Managers.

For his part, BII’s CEO Nick O’Donohoe said in an interview that his fully-owned company by the UK has been a major investor in power, particularly renewable energy, in Africa over the past three or four years.

Copyright © 2022 Arab Finance Brokerage Company All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

What trends are emerging for African startups in 2022?

Key countries attracting major investments include South Africa, Nigeria, Ghana, Kenya, and Egypt, regarded as "beacon economies" for technology investments .

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Content: Africa SME Champions Forum partners commit over $40 million to support Africa’s SMEs

KAMPALA, UGANDA, 2022-Oct-17 — /EPR Network/ — The 7th edition of the Africa SME Champions Forum came to a successful close at Speke Resort Munyonyo, in Kampala, Uganda. The event, co-hosted by the Arab Bank for Development in Africa (BADEA) and empowered by AfricSearch, brought together more than 400 of Africa’s top SMEs, institutional funding organisations, venture capitalists, angel investors and ecosystem builders exceeding expected numbers.

The Forum discussed key mechanisms through which SMEs can be supported to grow and impact the African economy significantly. BADEA indicated that $300 million had been committed to SMEs during 2022 with $40 million more allocated to SMEs.

“Like many of you here today, BADEA realizes the transformative potential & the economic power of African SMEs in achieving #BADEA’s vision to promote Arab-Africa Economic cooperation.”- said H.E. Dr. Fahad Abdullah Al-Dossari, Chairman of BADEA’s Board.

Dr. Al-Dossari added that the BADEA’s 2030 strategy has dedicated a pillar on supporting SMEs with a special focus on women & youth and that BADEA supports the SME sector through a large span of products from bank multiple windows.

“SMEs play an important role in Africa’s economic development. They provide 70% of jobs created, over 40% of the continent’s GDP and they are an engine for transformation and innovation. Therefore, investing in them means we are investing in Africa’s future. Our partnership with the Arab Bank for Development in Africa (BADEA) will be a catalyst in accelerating the development of the SMEs across Africa,” said Mr. Didier Acouetey, Chairman of the Forum and Group President of AfricSearch.

The event saw commitments of support both financially and technically from other organizations across Africa and the world including the African Guarantee Fund (AGF), Uganda Development Bank (UDB), East Africa Development Bank, Smart Africa, the U.S. African Development Foundation and the U.S. International Development Finance Corporation among others.

“The guarantee product can play a huge role in de-risking the investment or the flow of money from the one who has access to money to those who need it,” commented Jules Ngankam, Group Chief Executive Officer of the African Guarantee Fund.

“This Forum has been a resounding success through the partnership engagement, financial commitments to SMEs and the capacity building opportunities. It isn’t enough to make funds available but SMEs need to be empowered to ensure that they are ready to scale and to take up the funding. Our role now is to make key strides over the next 12 months to achieve this,” said Mr. Didier Acouetey, the Forum’s founder and Chairman.

Awards were also given to winners across five categories, namely:

  • Women Entrepreneur of the year: Hadiatou Diallo Barry of Akiba Finance (Guinea)
  • SME of the year: Maryse Mbonyumutwa of Asantii (Rwanda)
  • Special recognition award winner: Ibrahima Cheick Diong, United Nations Assistant Secretary General and Group Director General · African Risk Capacity (ARC) Group
  • Startup of the Year: Sparkle Agro Brands – Miss Jovia Kisaakye (Uganda)
  • Financial Institution supporting SMEs: Centenary Rural Development Bank (Uganda)

Among the initiatives launched at the end of the forum:

– The SME investment fund project that will be sponsored by BADEA;

– The constitution of a league of African SME Champions who will constitute the spearhead of the economic partnerships that the African continent will establish with other continents or other countries; this initiative will be supported by the FSA (African Solidarity Fund);

– A partnership program between large companies and SMEs in order to strengthen the technical and organizational capacities of SMEs; this program would be done in partnership with the UNIDO United Nations Industrial Development Organization.

The Forum continues to find ways to institutionalize the support that it lends to SMEs across Africa to ensure that the support is made available all year round and has a lasting impact.

End.

ABOUT THE AFRICA SME CHAMPIONS FORUM

The AFRICA SME CHAMPIONS FORUM is the foremost gathering dedicated to supporting the growth of African SMEs. It brings together nearly 500 participants, including Business Leaders, financial institutions, a selection of start-ups and experts in SME development, in a 2-day exchange that fosters new bottom-up practical and operational solutions to the financing and growth challenges faced by SMEs in Africa.

The Africa SME Champions Forum has been running since 2014 with the objective of improving the SME landscape and providing growth support to SMEs – the engine of the African economies.

The Africa SME Champions Forum has been running since 2014 with the objective of improving the SME landscape and providing growth support to SMEs – the engine of the African economies

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What trends are emerging for African startups in 2022?

Which sectors are Chinese investments in Africa focusing on?

The UK held $65 billion in total FDI stock in Africa as of 2020, mainly in oil, gas, mining, and financial services, with minimal investment in clean energy .

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Content: Optimists talk about Africa as the next economic frontier

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BY DELIA DE VILLIERS

For years Africa has been shrouded in controversy when it comes to its future potential. The optimists talk about Africa as the next economic frontier, while the sceptics point to a low growth rate, poverty and conflict as key challenges standing in the way of notable development.

Yet, the continent has grown its economy by around 5 percent a year over the past decade, is as urbanised as China and has as many cities as Europe with a population of more than one million, according to Future Agenda.

The World Bank reports that sub-Saharan Africa is “home to more than 1 billion people, half of whom will be under 25 years old by 2050”, suggesting that the workforce of the future is based here. They go on to say that Africa is a “diverse continent offering human and natural resources that have the potential to yield inclusive growth and eradicate poverty”.

While potential is not a measure of performance, what is productive is to consider the motivations of businesses opting either to enter the African market or expand operations on the continent. And that’s notwithstanding the challenges, or as Shaw Mabuto, partner at private equity firm Spear Capital, puts it: “While there are undoubtedly risks in Africa, they are well known and understood. Investors can mitigate for them.”

Spear Capital is particularly excited about the opportunities in the ESG (environmental, social, governance) space in Africa. “There are many businesses that have been able to thrive in spite of the prevailing environment and lack of government support. With the right backing, companies across the continent can grow successfully while at the same time making the world a better place and providing returns to their investors,” Mabuto says.

Google’s recent announcement of plans to invest $1 billion (R15.6bn) to support digital transformation in Africa is another very positive indicator of the potential of the continent. The investment, which was announced in October 2021, will be used to enable affordable internet access and building helpful products, for investments in entrepreneurship and technology, as well as to empower businesses as they continue or embark on their digital transformation.

This positive sentiment about Africa’s potential is echoed by a number of businesses who have chosen to expand their operations on the continent.

Picking your next market is key

When SweepSouth decided to scale their business across the African continent in 2020, they chose Kenya as the first territory to launch their on-demand home services model outside of South Africa’s borders. Three months ago they started operations in Nigeria, and plans are now afoot to expand further into Africa.

“There are so many factors that go into choosing a new market, so we decided to look at countries where people experience the same sort of home-care needs South Africans required when SweepSouth was started,” says Aisha Pandor, SweepSouth chief executive.

Kenya and Nigeria were obvious choices, representing big-market regions with a high growth opportunity, ever-increasing internet penetration and digital literacy, and the potential for positive impact on employment, education and economic growth via smart, scalable technology solutions.

“Kenya appealed to us because it felt like an in-between in terms of culture, market segment and dynamics, and also smartphone and internet penetration when compared with West Africa. And Nigeria is a really exciting new venture that we hope will serve as a base for further expansion into the West African region,” says Pandor.

West Africa, too, is increasingly recognised as an area of economic and growth interest for businesses looking to get a foothold on the continent.

Integrated PR and marketing agency Irvine Partners recently opened an office in Ghana in response to an increasing number of their global clients needing support there. The agency already has wholly owned offices in South Africa, Kenya and Nigeria, and has realised the potential of this West African country.

“Most of our clients’ interest in the region stems from Ghana’s position as a tech hub within sub-Saharan Africa and its growing financial services industry, but we’re also seeing many other industries looking to invest in and expand into the country. Strategically, it makes a lot of sense for us to have a presence in the country and we’re optimistic about its potential,” says managing director Hayley van der Woude.

Beyond the obvious

Importantly, the interest in Africa extends beyond the traditionally popular economic areas such as Lagos, Nairobi and Accra, with Mauritius serving as a prime example of potential beyond the obvious. It is currently the top-ranked economy in sub-Saharan Africa, according to the World Bank’s Ease of Doing Index and is recognised for offering a sound political and economic environment that strongly encourages investment thanks to a sophisticated banking system, a favourable tax regime and low inflation.

These are among the main reasons.

The Business Exchange (TBE), a South African-launched serviced office offering, not only expanded operations to Mauritius but also designed an investment opportunity for others with their sectional title shared office investment that offers a safe and affordable way to get into this bustling market.

“Mauritius, in our view, is fast becoming one of the hottest investment hubs on the continent. Major international brands, including Samsung, Broll, Expedia and NBA (North America’s National Basketball Association), are based at our serviced office space there, which speaks to the interest in the location and offers an indication of its dynamism as a business destination,” says David Seinker, the founder and chief executive of TBE.

Embracing innovation

Lastly, but certainly very significantly, when it comes to businesses where customer-centricity is key, such as banking and telecoms, African players compete more effectively than their international counterparts, according to a finding in the Boston Consulting Group’s digital maturity index.

“It’s also hardly surprising that these are two sectors where Africa has led the world when it comes to technology-led innovation,” says Ngadi Job Goshi, the general manager at Liferay Africa. “Ultimately, while Africa may be less digitally mature than other markets, there can be no doubt that businesses on the continent are unafraid to embrace technology and innovation. And, in the customer-centric ways in which they’ve done so, despite facing adversity and strong headwinds, there are lessons for the rest of the world in the tenacity and ingenuity birthed and nurtured in the African soil.”

Delia de Villiers is the senior account manager, Irvine Partners.

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Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

Significant infrastructure investments include the £1.2 billion development of the new port of Ndayane in Senegal by DP World, expected to enhance Senegal’s role as a trade hub in West Africa, boosting trade and economic growth .

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Content: DON'T MISS : Talking Africa Podcast - Gates Foundation CEO: 'Stop stockpiling & deploy vaccines to Africa to avoid costly new variants'

Money talks in Morocco’s pivot to Africa

By Jon Marks and Alié Dior Ndour
Posted on Thursday, 27 January 2022 07:24

Morocco has reshaped its world view since the financial crisis. With increasing emphasis on anglophone economies, Rabat is looking to be a trans-continental player.

Morocco spent the decade following the global financial crisis making an increasing commitment – driven by King Mohammed VI – to building business and political links across Africa. This meant going far beyond the country’s traditional francophone links. Progress is such that “Morocco now plays a major role in Africa, which today has become its vital space”, according to a senior executive in a leading Casablanca bank.

Financial institutions led the way.

Attijariwafa Bank (AWB), BMCE Bank of Africa (BOA) and Banque Commercial Populaire (BCP) moved quickly to fill the growing vacuum left by the retreat of major Western banks. The big three Casablanca banks now make between a quarter and a third of their net consolidated profits in other African markets; BOA’s network has grown the African contribution to its overall profit to 35%; for BCP it is around 25% and for AWB 31%.

Such is the extent of the pivot to Africa, after years of greater focus on Europe and the Middle East, that the continent now represents more than 50% of Morocco’s foreign direct investment (FDI).

Ethiopia, Kenya, Nigeria, and Egypt are also recognized as powerhouse markets for private sector investments .

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Content: There were 167 press releases posted in the last 24 hours and 192,536 in the last 365 days.

DPI raises one of the largest Africa funds at US$900m to invest in innovation-led companies

Development Partners International (DPI) (www.DPI-llp.com), a premier investment firm focused on Africa, today announced that African Development Partners III Fund (ADP III), has exceeded its US$800 million target, and is set to hold a final close at US$900 million, with an additional US$250m of dedicated co-investment capital. This brings a total of US$1.15 billion for investments on the continent. The fundraising establishes ADP III as one of the largest funds dedicated to investing global capital in Africa.

ADP III will invest in established and growing companies in industries that benefit from Africa’s fast-growing middle class and the increasing digital transformation of the continent. All investments have the highest standards of impact and environmental, social and governance (“ESG”) work. In doing this work DPI is using its proprietary DPI Management System (“DPIMS”) toolkit to deliver impact in line with 10 of the UN Sustainable Development goals, as well as driving the highest standards of ESG.

Runa Alam, co-founder and Chief Executive of DPI commented: “Africa remains an exciting investment destination with positive demographics, rising adoption of technology, and rising consumer and business spending. Against this backdrop, DPI has continued to generate top quartile returns by leveraging our team’s deep-rooted local expertise across the African continent.

“As we look towards the future with our ADP III fund, we will focus on innovation-driven companies leading the digital transformation of the economies in which they operate. In addition, our deep integration of impact and ESG initiatives in the investment life cycle has been widely recognised and ensures we are known as a trusted partner.”

ADP III secured capital from a broad range of leading pension and sovereign wealth funds, development finance institutions, endowment and foundations, insurance companies, fund-of-funds, asset managers, and impact investors. The global investor base represents 20 countries across North America, Europe, Middle East and Africa. In addition to strong support from existing investors, DPI welcomed over 25 new LPs into its investor base. This is testament to DPI’s track record and ability to create institutional-grade investment opportunities in Africa, while continuing to deliver sustained environmental and economic impact.

Joanne Yoo, Managing Director at DPI, said, “The strong support for ADP III validates our strategic focus, creative approach and investment discipline. We are grateful for the trust that our investors have placed in DPI, and we are confident that our talented team will continue to deliver competitive returns and impact.”

ADP III has made four investments to date, including:

  • Channel VAS, a leading global fintech business providing mobile financial services;
  • SICAM, a leading Tunisian tomato producer, in one of the largest private equity transactions undertaken in the country;
  • Kelix Bio, a biopharmaceutical platform broadening access to speciality generic drugs across Africa; and
  • MNT-Halan, Egypt’s leading fintech ecosystem.

Additionally, DPI has a significant pipeline of investment opportunities across the continent, focused on key sectors of the economy such as financial services, healthcare, agri-business, education, and telecom infrastructure.

DPI places an emphasis on promoting best in class standards in ESG through its investments, with the aim of creating institutionalised high-performing companies at exit. Working with its portfolio companies, DPI seeks to contribute to the UN Sustainable Development Goals by implementing its proprietary Impact and ESG Management System based on three key impact themes: Job Quality, Climate Change, and Gender Balance.

ADP III was the first African fund signatory to the Operating Principles for Impact Management (“Impact Principles”), an international market standard for impact investing and the first to be granted 2x Flagship Fund status, as part of the 2x Challenge, a gender-lens initiative.

PJT Park Hill acted as advisor and placement agent for ADP III, and Debevoise & Plimpton LLP served as legal adviser for the Fund.

Distributed by APO Group on behalf of Development Partners International (DPI).

Media Contact: Edelman Email: DPI@edelman.com

London Alex Simmons / Olivia Adebo +44 7970 174 353 / +44 7787 284 441

Africa Kgomotso Moalusi / Chloe Payne +27 73 025 0216 / +27 72 673 0535

New York Tim Quinn +1 646 258 2308

About DPI: DPI is a premier investment firm focused on Africa, that has successfully advised funds through “up” and “down” cycles. Its first two funds, African Development Partners I and II (ADP I and ADP II), are ranked in the top quartile for performance by Cambridge Associates.

DPI has US$2.8bn in assets under management across its funds and committed co-investments.

The ADP funds’ strategy is to build a diversified pan-African portfolio of private equity investments in established and growing companies benefiting from the continent’s fast-growing middle class, innovation, and digital transformation.

Since DPI’s founding in 2007, its funds have invested in 23 portfolio companies across 29 African countries and 17 industries. ADP portfolio companies employ over 49,000 people. During DPI’s investment, 18,000 jobs have been created.

In 2020, ADP III became the first 2X Flagship Fund, as part of the global 2X Challenge (www.2xchallenge.org), committing to integrate a gender lens into its investment process, and reflecting DPI’s long-standing commitment to gender equity. DPI has a female co-founder and CEO, one-third of the partners are women, and 50% of the firm are women.

As a signatory to the UN Principles for Responsible Investment (PRI) and the Operating Principles for Impact Management, DPI promotes high ESG and Impact standards and seeks to contribute to the UN Sustainable Development Goals. This includes the development of an innovative Impact and ESG Management System focusing on the following key impact themes:

Job Quality: SDG 8 Climate Change: SDG 13 Gender Balance: SDG 5

Follow us on the web (www.DPI-llp.com) or LinkedIn (https://bit.ly/3DdPdcH).

What trends are emerging for African startups in 2022?

Sectorally, foreign investment in Africa is increasingly diversified.

Sectorally, foreign investment in Africa is increasingly diversified.

Sectorally, foreign investment in Africa is increasingly diversified.

The fintech sector is rapidly expanding, with revenues projected to reach $30 billion by 2025.

The fintech sector is rapidly expanding, with revenues projected to reach $30 billion by 2025.

The fintech sector is rapidly expanding, with revenues projected to reach $30 billion by 2025.

The number of tech startups tripled from 2020 to 2021, with fintech companies dominating the newly minted unicorns .

Venture capital is increasingly focused on tech sectors such as fintech, edtech, and meditech.

Venture capital is increasingly focused on tech sectors such as fintech, edtech, and meditech.

Venture capital is increasingly focused on tech sectors such as fintech, edtech, and meditech.

For example, Norrsken22, an Africa-focused venture capital firm, raised $205 million to invest in tech startups across the continent .

What trends are emerging for African startups in 2022?

Healthcare is gaining prominence, especially post-pandemic, with increased attention on vaccine and therapeutic manufacturing capabilities.

Healthcare is gaining prominence, especially post-pandemic, with increased attention on vaccine and therapeutic manufacturing capabilities.

Healthcare is gaining prominence, especially post-pandemic, with increased attention on vaccine and therapeutic manufacturing capabilities.

Demand for vaccines in Africa is expected to double by 2040 .

The energy sector is a key focus, with expectations of a ten-fold increase in power generation capacity by 2065 to meet rising demand, driven by Africa’s abundant natural resources and renewable energy potential .

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Navigating Investment Risks Across Latin America

(MENAFN- The Rio Times) In 2023, companies worldwide faced a global default risk that slightly exceeded level 2, categorizing it as Medium Risk, according to standardized risk assessment metrics.

Remarkably, this figure stayed consistent with the previous year and nearly mirrored the data from 2019, as reported by Allianz Trade's Country Risk Atla .

Significantly, Roberta Fortes, a senior economist at Allianz Trade , reveals that Latin America's country risk escalated from 2.45 in 2019 to 2.75 in 2023.

Consequently, this surge signals an elevated default risk compared to the times before the pandemic struck.

Notably, factors like inflation and declining external balances have majorly influenced this uptick.

Furthermore, Brazil's fiscal health has seen a downturn, with its debt-to-GDP ratio soaring to about 90%, well above the 60% benchmark for emerging markets.

In a pivotal move in 2023, Allianz Trade adjusted the risk ratings for 21 countries, impacting nearly 19% of global GDP.

They enhanced most ratings and downgraded just four, marking a distinct departure from 2022's more pessimistic adjustments.
Country Risk Classification by Allianz Trade
The Country Risk Classification by Allianz Trade meticulously evaluates economic, political, and business risks.

This crucial assessment supports economic agents, particularly foreign investors and exporters, in navigating their decision-making processes more effectively.

Against initial forecasts, global FDI experienced a 3% increase to $1.37 trillion in 2023, as documented by UNCTAD.

Impressively, Latin America and the Caribbean maintained stable FDI levels, buoyed by significant gains in Central America and a notable 21% surge in Mexico.

Brazil, however, saw a considerable declin in the same period. Risk assessments across regions show considerable variation.

Africa's risk rating stands above 3 (Sensitive), whereas Latin America, the Middle East, and Eastern Europe (including Russia) slightly fall below this threshold.

Meanwhile, the Asia-Pacific region marginally exceeds 2 (Medium), and Western Europe and North America edge closer to 1 (Low).

Uruguay stands out in Latin America as a low-risk market (BB1), thanks to its robust democracy, significant foreign reserves, and consistent FDI inflows.

Chile and Mexico, with medium risks (BB2), encounter challenges of potential policy-induced cost rises and market volatility influenced by domestic politics and external factors such as the U.S.

Brazil, the continent's heavyweight, contends with sensitive risk (B2), burdened by global commodity price sensitivities and fiscal dilemmas.
Brazil contends with sensitive risk
High-risk category countries (D4), including Venezuela, Ecuador, Bolivia, and Argentina, face unique challenges, with Argentina specifically battling high inflation and political instability.

Fortes emphasizes that countries facing crises, such as Argentina, exacerbate the overall global country risk.

Moreover, she points out that social unrest and political risks, highlighted by recent events across the region, will play a critical role in shaping the trajectory of country risk moving forward.

Allianz Trade identifies key risk factors for 2024:

  • high debt and interest rates,
  • subdued growth impacting profits,
  • an 8% uptick in corporate insolvencies,
  • global supply chain shifts, and
  • intensified geopolitics in an election-heavy year.

These considerations underscore the complex interplay of risks and opportunities in Latin America for discerning investors.

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Infrastructure development remains a central theme, with the G7’s Partnership for Global Infrastructure Initiative (PGII) committing $600 billion to fund infrastructure projects in developing countries, with a particular focus on Africa.

Within this, the U.S.

Within this, the U.S.

plans to mobilize $200 billion over five years, including projects such as a $2 billion solar energy project in Angola and hospital construction in Côte d'Ivoire .

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Content: Creating the framework to attract private investment into Africa

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By Omar Ben Yedder. Published on November 3, 2022

The International Finance Corporation (IFC) is on course to mobilise $10bn of private sector investment annually into Africa by 2030 says its vice president for Africa.

The European Commission announced an investment funding package for Africa worth EUR 150 billion in February 2022 under the EU Global Gateway Investment Scheme, aimed at addressing infrastructure needs .

What trends are emerging for African startups in 2022?

Which countries are actively investing in Africa besides China?

In the agricultural sector, foreign investment has also been robust.

In the agricultural sector, foreign investment has also been robust.

In the agricultural sector, foreign investment has also been robust.

AFEX, a Lagos-based commodities exchange platform, has facilitated $320 million in agribusiness investments impacting 1.3 million farmers, with plans to raise this to $1 billion and reach 10 million people through expansion into 10 markets over the next few years .

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Content: Multimillion-dollar boost for small business as more African countries join MultiChoice Africa Accelerator Programme

Johannesburg, Nov. 23, 2022 (GLOBE NEWSWIRE) — November 2022 – Following the success of the MultiChoice Africa Accelerator Programme, which secured $16 million (USD) of funding for six emerging businesses last year, the programme has been expanded to eight more countries across Africa.

Many more small businesses in Africa’s technology sector now have the chance to benefit from the 2023 programme, which provides the skills and opportunities needed to attract transformative business funding.

“We’re really excited to be expanding the MultiChoice Africa Accelerator Programme to more African countries,” said Calvo Mawela, MultiChoice Group CEO, announcing the launch. “It’s part of our long-term commitment to growing and multiplying Africa’s technology potential, which is critical to our future growth.”

The MultiChoice Africa Accelerator Programme, which kicked off during Global Entrepreneurship Week,  is aimed at established start-ups and small enterprises in specific technology sectors – healthtech, agritech, fintech, edutech, the circular economy and the creative industries.

“There is such incredible business talent across Africa,” said Mawela. “MultiChoice Africa Accelerator is an opportunity for investors and small enterprise to collaborate to multiply the impact of this talent and scale it across Africa.”

Having started in South Africa in 2021, the MultiChoice Africa Accelerator is expanding to Ivory Coast, Senegal, Nigeria, Ghana, Kenya, Zambia, Angola and Ethiopia. The initiative equips emerging entrepreneurs to secure funding and scale up their businesses, and also provides opportunities to pitch to international investors.

African Development Bank President Dr Akinwumi Adesina has previously noted that, “the private sector is Africa’s growth accelerator”, and several African nations have backed small-business development as part of their economic strategy. The MultiChoice Africa Accelerator dovetails with these development objectives.

The MultiChoice Africa Accelerator Programme is an initiative of the MultiChoice Innovation Fund, in collaboration with Dubai-based business incubator Companies Creating Change (C3), which gives entrepreneurs access to the tools, skills and financial support to grow their business. MultiChoice has also partnered with EOH, a tech services company who will bring their expertise to the table especially in terms of tech advisory, development sprint and technical support.

The first phase of the MultiChoice Africa Accelerator Programme sees public and private-sector partners in each country nominating businesses or entrepreneurs for the programme. From there, 29 of the start-ups embark on an intensive virtual training course. The initiative is aimed at established businesses that are already operating and looking to scale up by attracting further investment.

“Start-up founders get to learn everything from how to properly research your business sector and your market, to how to create a niche for your business,” says Boitumelo Monageng, of Swypa, one of last year’s finalists. “During the workshops we were encouraged to dig deeper and I realised that we have the potential to compete on a much larger scale.”

The virtual training course takes place over several weeks, teaching start-up owners media skills, how best to market their businesses to investors, how to create attractive business plans, and to know what investors are looking for.

Later, the entrepreneurs will come together at a finals event, where 11 start-ups will be selected for the final pitch phase. They will attend a dedicated C3 boot camp to learn how to shape their story for international investors, and to get “pitch ready” before their big presentations.

“We believe SMEs in the technology, sustainability and creative sectors will be fundamental to the next phase of Africa’s growth,” says Mawela. “The MultiChoice Africa Accelerator is geared to finding the most promising start-ups, and empowering them to play this critical role.”

Attachment

Elizabeth Ferreira
MultiChoice Group Ltd
0834825241
fourie_elizabeth@yahoo.com

GlobeNewswire Distribution ID 8702451

Which African countries are driving the venture capital ecosystem?

Which countries are preferred FDI destinations in Africa?

The African Development Bank (AfDB) and the Canadian Government launched the Agri-food SME Catalytic Financing Mechanism, contributing CAD 100 million (approximately $73.5 million) to support small and medium-sized enterprises (SMEs) in agriculture .

Title:

Content: Business

AfDB, Canada launch agri-food SME catalytic financing mechanism

To help Africa’s Small and Medium-sized Enterprises (SMEs) in the agricultural sector, the African Development Bank Group and the Canadian Government recently established the Agri-food SME Catalytic Financing Mechanism. This new agricultural development was made known by the organisations at a press briefing during the Dakar 2 Africa Food Summit.

The “Agri-food SME Catalytic Financing Mechanism” is a special fund with the mission to de-risk and catalyse investment for agriculture SMEs, strengthen agricultural value chains, and enhance food security across the continent. Speaking to the media, Dr. Beth Dunford, Vice President of the bank for agriculture, human, and social development, said: “At the Africa Food Summit, we have seen a strong commitment to addressing the financing gap for SMEs and creating an environment that encourages private sector investments in climate-smart, gender-oriented agricultural solutions.” She said that the Agri- Food SME Catalytic Financing Mechanism would open doors for these companies in Africa, particularly for women and young people.

“It should be noted that Canada contributed CAD100 million ($73.5 million) to fund the mechanism, which is hosted by the African Development Bank. Small and medium agri-businesses produce or transport around 65 per cent of Africa’s food, yet they face a financing gap of more than $180 million annually,” she added. The mechanism, as reported, will offer financial intermediaries, such as agribusinesses, microfinance organisations and impact funds, concessional financing and technical support. The funding and support are intended to give the intermediaries the ability to lend money to agri-SMEs that employ women and companies that increase their resilience to climate change.

The bank’s Affirmative Finance Action for Women in Africa (AFAWA) goal of bridging the $42 billion access to finance gap for women-led SMEs and accelerating their growth would be aided by the Agri- Food SME Catalytic Financing Mechanism. Similarly, the parliamentary secretary to Canada’s Minister of International Development, Anita Vandenbeld said: “The best way to build up food security in Africa is to work with small-and-medium-sized agriculture and food businesses. “

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The AfDB and partners are raising $520 million for the first phase of Nigeria’s Special Agro-industrial Processing Zones Programme (SAPZ), expected to generate 25,000 to 30,000 direct jobs in Nigeria alone .

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Content: (Bloomberg) -- Norrsken22, an Africa-focused venture capital firm, received the backing of more than 30 unicorn founders and institutions to raise $205 million for new tech investments on the continent.

The fund — which counts the likes of Skype’s Niklas Zennström, Delivery Hero’s Niklas Östberg, and Flutterwave’s Olugbenga Agboola among its investors — is seeking the next generation of “tech giants” on the continent in sectors such as fintech, edtech and meditech, said Norrsken22 managing partner Natalie Kolbe in an interview.

Investments will largely be focused on startups in South Africa, Nigeria, Ghana, Kenya and Egypt, she said.

“We have made five investments to date, including in Tyme Bank in South Africa,” said Kolbe. “We would like to build out a portfolio of about twenty investments in the beacon economies of Africa.”

Africa is home to the fastest growing and most youthful population in the world, with tech-savvy youngsters increasingly tapping their smart-phones for services from entertainment to banking.

Norrsken22 said it’s seeking to invest in the growth in tech businesses expected in Africa, that is fueled by investment in digital infrastructure and smartphone adoption on the continent, said Kolbe. In addition, urbanization and the growing need for financial and health services bring an opportunity for tech startups to scale, she said.

Other investors in the fund include Standard Bank Group Ltd., Norfund, British International Investment, he International Finance Corporation, and the US International Development Finance Corporation.

In line with the rest of the world, funding for startups in Africa has dwindled this year, in line with a slowdown globally. The continent attracted about $2.5 billion during the first half of the year, according to Briter Bridges. Another centure capitla fund, Partech, raised more than $260 million to deploy on the continent.

©2023 Bloomberg L.P.

The Global Agriculture and Food Security Program (GAFSP) announced $220 million in new agricultural investment grants to 15 national governments, including several African countries .

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Content: The sports category has moved to a new website.

Details emerge about U.S. firm bankrolling the Sh477B Nairobi-Mombasa Expressway

Kenyans will be paying toll fees to use the road for approximately 30 years

U.S.-based Everstrong Capital is spearheading the construction of the Usahihi Expressway, a major project set to transform transportation between Nairobi and Mombasa.

The $3.6 billion (Sh 477.9 billion) venture will introduce a 440-kilometre toll road designed to streamline travel and boost economic activities in the region.

The Usahihi Expressway will feature a 4-6 lane dual carriageway, promising to slash travel time between Nairobi and Mombasa from 10.5 hours to 4.5 hours.

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The Kenya National Highways Authority (KeNHA) signed the Sh477 billion deal with Everstrong Capital as President William Ruto was in the U.S. for state visit.

According to the company, construction of the road is scheduled to start in March 2025.

This ambitious project will be developed under a 30-year concession and is expected to be completed within 3-4 years.

Key elements of the expressway include rest stops, wildlife observation points, and electric vehicle charging stations powered by renewable energy.

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The expressway will be financed through a public-private partnership (PPP) model, with funding structured as 70% debt and 30% equity.

Everstrong Capital, along with a consortium of U.S. companies, is leading the charge, and the company is set to recoup the investment by charging motorists to use the road, a similar model applied on the Nairobi Expressway.

The Usahihi Expressway is projected to create hundreds of thousands of jobs, bolstering economic growth and improving connectivity within the region.

Everstrong Capital, established in 2015, has offices in the U.S., Kenya, and South Africa.

The firm’s investment portfolio spans energy, transportation, communication, healthcare, and housing sectors, with a notable emphasis on East Africa.

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One of its flagship initiatives, the Everstrong Kenya Infrastructure Fund (EKIF), is a $50 million fund dedicated to investing in the region’s infrastructure.

The company’s leadership includes prominent figures such as Philip Dyk, the founder, and Managing Partner, with over 30 years of experience in financial advisory and equity investments.

Kyle McCarter, the former U.S. Ambassador to Kenya, also serves as a senior advisor, bringing extensive expertise in manufacturing and asset management.

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  1. Everstrong Kenya Infrastructure Fund (EKIF): Everstrong is sponsoring a $50 million fund focused on investing in energy, transportation, communications, and social infrastructure projects in East Africa.
  2. Power generation: Through, Gulf Power, the company has a 20-year power purchase agreement (“PPA”) to sell electricity and generating capacity to Kenya Power. Everstrong became an investor in December 2018.
  3. Milele Energy: Milele Energy is a pan-Africa energy platform sponsored by Everstrong to develop and invest in renewable and clean energy projects in sub-Saharan Africa. The Salone Power Project in Sierra Leone, an 83.5MW gas power plant, secured a $217 million loan and $54 million political risk insurance from the US International Development Finance Corporation (US DFC).
  4. Dar es Salaam-Mombasa Pipeline: In collaboration with Cynergy Gas and Power Ltd, Everstrong Capital is developing a 480-kilometre natural gas pipeline from Dar es Salaam, Tanzania, to Mombasa, Kenya. This pipeline will enable industries to switch from coal and heavy fuel oil to natural gas, reducing pollution and energy costs.

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Major foreign companies and investors have played pivotal roles in Africa’s investment landscape.

Major foreign companies and investors have played pivotal roles in Africa’s investment landscape.

Major foreign companies and investors have played pivotal roles in Africa’s investment landscape.

Chinese investment has historically been significant, with $153 billion committed to public sector borrowers between 2000 and 2019.

Chinese investment has historically been significant, with $153 billion committed to public sector borrowers between 2000 and 2019.

Chinese investment has historically been significant, with $153 billion committed to public sector borrowers between 2000 and 2019.

However, new loan commitments from China dropped to $7 billion in 2019, indicating a shift in investment dynamics .

Chinese companies accounted for 31% of infrastructure contracts valued at $50 million or more in 2022, compared to 12% for Western firms, largely due to the Belt and Road Initiative .

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Content: WASHINGTON: President Joe Biden announced an agreement aimed at bolstering trade ties between the US and Africa yesterday after years in which the continent took a back seat to other US priorities as China made inroads with investments and trade.

“The US is ‘all in’ on Africa’s future,” Biden told African leaders attending a three-day summit in Washington.

Biden’s remarks, and the summit, aim to position the US as a partner to African countries amid its competition with China, which has sought to expand its influence by funding infrastructure projects on the continent and elsewhere.

Chinese trade with Africa is about four times that of the US, and Beijing has become an important creditor by offering loans with less stringent conditions than Western lenders.

Biden said a new US agreement with the African Continental Free Trade Area will give American companies access to 1.3 billion people and a market valued at US$3.4 trillion. He listed companies that had made deals at the summit, including General Electric and Cisco Systems.

“When Africa succeeds, the US succeeds. Quite frankly, the whole world succeeds as well,” the president said.

Delegations from 49 countries and the African Union, including 45 African national leaders, are attending the three-day summit, which began on Tuesday, the first and first of its kind since 2014.

Washington has offered US$55 billion in support for Africa under the Biden administration for food security, climate change, trade partnerships, and other issues.

After his remarks, Biden viewed some of the World Cup semifinal match between Morocco and France with Morocco’s prime minister, Aziz Akhannouch, and other leaders attending the summit, the White House said.

This afternoon, Biden will host leaders facing 2023 elections, including from Gabon and Liberia for a discussion on elections and democratic principles.

Then, Biden and his wife, Jill, will host African leaders and their spouses at a White House dinner with Vice-President Kamala Harris and her husband Doug Emhoff.

The summit is part of a renewed push to boost ties with a continent as China gains influence with trade, investment, and lending drives. Beijing has held its own high-level meetings with African leaders every three years for more than two decades.

Some US officials have been reluctant to frame the gathering as a battle for influence.

Biden did not mention China in his remarks, and Washington has toned down its criticism of Beijing’s lending practices and infrastructure projects.

Biden is expected to announce his support for the African Union’s joining the G20 group of the world’s largest economies as a permanent member during Thursday’s summit events.

US trade representative Katherine Tai told African counterparts on Tuesday she wants to improve the continent’s US trade preferences program to boost investment.

“We are not looking for a relationship that is transactional, that’s extractive, that is burdensome, or leaves various countries in a more fragile, poor state after a deal is done,” state department spokesman Ned Price told reporters on Monday.

On Wednesday, White House national security spokesman John Kirby highlighted the importance of US investments in Africa and helping countries there play a more active role in the global economy.

“It’s a two-way discussion that we want to have with Africa about trade, investment, and opportunities for economic growth,” he told reporters.

At an opening trade forum on Wednesday, African leaders called for more investment.

“Instead of exporting commodities, the US should find an opportunity in investing,” Kenyan president William Ruto said. “They have the machinery, they have the know-how, so that they can produce for the African continent in Africa.”

Ruto cited projections that Africa’s agribusiness sector will more than triple to US$1 trillion by 2030 and said US capital can help solve the continent’s physical infrastructure deficit to unlock this growth.

China-Africa trade

According to a Eurasia Group analysis, in 2021 China-Africa trade, at US$254 billion, greatly outstripped US-Africa trade, which stood at US$64.3 billion.

Those figures are up from US$12 billion and US$21 billion, respectively, in 2002.

Beijing’s lending to Africa has led to Western charges that China has mired African countries in debt.

Beijing’s ambassador to Washington rejected the idea ahead of the summit, citing a report that African countries owe three times more debt to Western institutions, while noting that Chinese-built hospitals, highways, airports, and stadiums are “everywhere” in Africa.

China remains the region’s largest bilateral investor, but its new loan commitments to Africa have declined in recent years.

It is not all about economic sway.

Washington has been alarmed by China’s efforts to establish a military foothold in Africa, including on the Atlantic coast in Equatorial Guinea.

For their part, many African leaders reject the idea that they need to choose between the US and China.

“The fact that both countries have different levels of relations with African countries makes them equally important for Africa’s development,” Ethiopia’s UN ambassador, Taye Atske Selassie Amde, told Reuters.

“However, it should be known each African country has the agency to determine their respective relationship and best interest.” - Reuters

Google has committed $1 billion to support digital transformation in Africa, aiming to enhance internet access and foster entrepreneurship .

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Content: In 2023, standards became higher than ever for global tech. Customers want to be able to buy something in two clicks but still need in-person customer service. Workers want to work digitally, ideally from a beach somewhere, while maintaining a connection with their colleagues. And the truth is these standards are unlikely to get lower soon.

In Africa, the tech scene hasn’t been any less dramatic. It was, in many ways, a market correction. Several startups shut down, while many others survived by bone-deep cost-cutting or mergers and acquisitions. Founders and investors have gone from chasing Silicon Valley-esque growth to seeking a balance with the African market. Between 2020 and 2023, African tech went from the “peak of inflated expectations” point to the “plateau of productivity” side of Gartner’s hype cycle.

Now, what’s next? That’s what everyone wants to know as we enter a new year. Predicting the future is hard and risky. But it’s even harder in the digital tech industry because, as we’ve seen in the past three years, things change fast and dramatically. However, 2023 gave several pointers to trends we should all pay attention to in the new year.

Crypto/Web3

2022 was a rough year for the crypto market. Everything went wrong, from Terra’s downfall to FTX’s scandal. But 2023 was a lot better as Bitcoin ended the year over 150% higher than where it started. The Solana blockchain also made a dramatic comeback, with its token rising over 1000%.

Why does this matter? Because price is still the main driver of the crypto ecosystem. Funding pours into startups when prices are high and dry up when prices are low. It also means the hype bubble will likely return because markets become irrational in the face of high prices.

Africa is the fastest-growing cryptocurrency market among developing economies, primarily because people seek to hedge against inflation. Young people are drawn to low-barrier opportunities to generate wealth, which is crypto’s biggest use case today.

Africa’s regulatory environment is also slowly buying into crypto. In December, Nigeria’s central bank lifted a ban on cryptocurrency transactions, saying global trends had shown a need to regulate such activities.

Artificial intelligence

AI has become the rave of the moment, thanks to OpenAI’s breakthrough with ChatGPT. The chances that an image or text you see on social media are products of generative AI are higher than ever. Every big tech player is in the race for AI dominance. Google launched Gemini in December, a few weeks after Elon Musk’s xAI launched Grok, another ChatGPT competitor.

One in every four dollars that went into the pocket of an American startup was related to AI, per Crunchbase data. According to McKinsey data, AI startups garnered over five times as much funding in the first half of 2023 as they did over the same period in 2022. Global demand for talent in this section also spiked in 2023. LinkedIn job postings that mention AI or generative AI have more than doubled since 2021.

In Africa, we are seeing more startups either focus on AI or apply it to their processes. For instance, OnePipe, a Nigerian fintech, uses artificial intelligence for fraud detection and prevention and biometric verification for customer KYC implementation. It also uses natural language processing for conversational transactions. Nokwary, a Ghanaian startup, uses speech recognition and conversational user interfaces to enable visually impaired people and those who can’t read and write to interact with banking apps and systems through spoken commands.

The biggest challenge to an AI boom in Africa is data. However, this poses a huge opportunity for research and data collection companies in the continent.

Mergers and Acquisitions

Many startups shut down between 2022 and 2023, either because they couldn’t raise more cash or because tough economic times got the better of them. But that wasn’t the only trend that emerged. Many others survive by getting acquired. Nearly 70 acquisitions have happened between 2022 and 2023, according to data from The Big Deal and BD Funding Tracker. Some notable deals were Risevest and Chaka, BioNTech and InstaDeep, Bitmama and PayDay, and FairMoney and PayForce.

Mergers and Acquisitions will likely remain a trend for as long as valuations are low. Over the last two years, startups have been more cautious about bloating their valuations, and investors have kept the same sentiment. It’s partially why we haven’t recorded new unicorns in a minute. MNT-Halan was the only new entrant in the last two years.

This also creates an opportunity for African startup marketplaces, which will replicate Acquire.com to make acquisition easy for startups with solid products but low clout.

International work for Africans

Many African countries saw their currencies devalued in 2023. Inflation rates have also spiked in many economies. This creates a stronger appeal for them to earn foreign currencies and an [almost worrisome] opening for Westerners to find cheap labour in Africa. This is crucial because wage rates are rising in China and India, making it increasingly expensive for companies to outsource services there.

Studies by Bloomberg show that China’s upper-middle class now dominates, with over 200 million urban households having disposable incomes of $16k — $34k. Meanwhile, many Sub-Saharan economies have seen their middle-class shrink in recent years.

Also, there aren’t enough opportunities for young people to work remotely in Africa. Ten to twelve million young Africans enter the labour market each year, and an estimated one-third of the 600 million young people entering the global market by 2030 will be young Africans.

This trend will create opportunities for new approaches to apprenticeship or employment matching. It also means startups focused on building tech talent will likely see growth in 2024.

New regional preferences

In 2024, investors could reevaluate their regional strategies in response to changing macroeconomic and political conditions. Per the EIU, fifteen African countries have elections next year, and investors will observe their outcomes keenly. Elections are fraught with risk, especially in regions where armed conflict is rampant. The EIU notes that elections in Algeria, Egypt, Ghana, and South Africa will add to political risk, which could have long-term implications on where investors put their money.

An AVCA survey revealed that LPs favoured investing in West Africa while GPs leaned towards East Africa. The data aligns with this: between 2019 and 2023, per The Big Deal, there were over 700 recorded deals worth $1m or more. West Africa led the pack with 246, East Africa with 175, Northern Africa with 160, Southern Africa with 147, and Central Africa with 14. Depending on the degree of confidence, the numbers could realign with investors becoming more risk-averse. It’s all “wait and see” going into 2024.

Elsewhere on Ventures

What trends are emerging for African startups in 2022?

Which countries are actively investing in Africa besides China?

American companies are increasing their presence, supported by agreements such as President Biden’s new trade deal to strengthen US-Africa economic ties .

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Content: Download our blog’s APP from Google Playstore using the link here>>>

Q&A – Timothy Nuy, Finclusion Group

i) First, can we discuss the significance of the recent Cairo Angels Syndicate Fund (CASF) investment in Finclusion Group, their second investment outside Egypt?

We are delighted to have secured an investment from the CASF. As only the second investment from the CASF in a company outside of Egypt, we feel that the growth we’ve made, and the goals we plan to achieve, were the driving factors behind this show of faith.

This investment means that the CASF will join our growing list of partners, shareholders, and investors. This is a significant step for Finclusion as our ambition is to build the first truly African neobank. As a result, we must start building solid pan-African relationships early in our journey. The team at CASF is of incredible stature and is the right business partner to help us move in that direction.

ii) Like so many other developing countries, Kenya has work to do to foster financial inclusion for all to date. What can be done to change this dynamic, and have others attempted to broker greater inclusivity wherein you believe Finclusion can be a game-changer in this regard?

Like many countries in Africa, Kenya is making many steps to become more financially inclusive. The opportunity for growth and scale is evident, both for people and their wealth and for companies and industries. We are seeing a lot more interest in the African fintech landscape from international investors, and African unicorns are becoming a much more frequent occurrence.

I believe Finclusion is well positioned to lead the way in this space as a full-service neobank. We are a credit-led neobank, offering products and services that meet our customers where they are and deliver value that traditional financial institutions dont, can’t, or choose not to.

We are constantly introducing new products into the market, such as TrustGroPay, a first of its kind mobile credit payments solution in Kenya. TrustGroPay is a USSD product similar to offering a credit card to M-PESA users. Users of TrustGroPay enjoy instant credit on any payments via their mobile phone while paying for their goods at the till – this is a game-changer.

iii) Nonetheless, formal access to the financial marketplace in Kenya rose from 83% (2019) to 84% (2021). What conditions do you believe allowed this growth to occur?

The recent access change is positive and we expect this number to increase. One such condition that contributed to this growth is M-PESA. The convenience and popularity of M-PESA mean that millions of unbanked Africans now have an accessible onramp into the financial marketplace. At Finclusion, we are looking to build products that deliver value for the underserved at scale – as M-PESA has done – by creating innovative fintech products that are simple, convenient and appropriate.

iv) Where on the continent does Finclusion Group look to expand in the years to come?

We currently operate in five countries – Kenya, South Africa, Tanzania, Eswatini and Namibia – and will soon be launching in Mozambique and Uganda. Our immediate focus is to grow our service offering in East Africa and beyond.

v) How can Finclusion Group serve as a proponent of greater foreign direct investment (FDI) or from within, intra-African trade in 2022?

The African fintech landscape saw over US$4bn in investment in 2021, but compared to global startup funding, its VC journey is just beginning. However, Africas many recent fintech success stories have put the continent in the sightline of international VCs, and we believe Africa is the last frontier for significant FDI.

The Finclusion Group will help facilitate this for our core operations and complementary investments through our established network of partners, shareholders, and investors. We also invest in early-stage African fintech startups. We have an exciting and diverse portfolio of companies that offer a range of services from AI risk-modelling to BNPL to personalised debt management, to name a few.

As the fintech startup space matures, we see lots of opportunities for companies to scale and attract more significant foreign investment, intra-African trade, and partnerships.

Download our blog’s APP from Google Playstore using the link here>>>

Which countries are actively investing in Africa besides China?

The Cairo Angels Syndicate Fund (CASF) invested in Finclusion Group, marking its second investment outside Egypt and reflecting growing pan-African financial services interest .

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African private equity activity surges to 5-year high in 2022

Private equity and venture capital investments in Africa soared 66% year over year in 2022 to $7.70 billion, the highest aggregate value for the region in the last five years, S&P Global Market Intelligence data shows.

The massive jump was mainly due to the proposed acquisition of hospital operator Mediclinic International PLC, which is valued at more than $5 billion.

Transaction volume, which includes M&A and rounds of funding, has steadily climbed in the region since 2018 and reached 404 deals in 2022. The continent saw a full-year increase in transaction volume even as activity slowed sharply in the final quarter of the year.

Investments with private equity involvement totaled $370 million in the fourth quarter of 2022, down 71% from $1.28 billion in the prior-year period. Deal volume declined 43% over the same time frame.

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Attractive valuations, young demographics

African technology companies offer appealing entry valuations and high growth rates of about 100% annually compared to peers in the U.S., according to Fope Adelowo, principal at Helios Investment Partners LLP, which invests in telecommunications, media and financial services across the region.

"The growth outlook for those sectors are not only quite positive, but they are also, in many ways, noncyclical," Adelowo said. "When you look at the global environment, whether that's people using more digital methods to make payments ... consumers consuming more data, we're really just in the early stages."

African economies are also buoyed by young populations that are "increasingly entrepreneurial and driven by technology-led innovation," Adelowo said. Money moved into venture capital in the region has grown about 10x in the last five years, largely due to that young population, which is "very digitally engaged." That is helping drive innovation to address inefficiencies in many sectors in Africa, Adelowo added.

Health, tech sectors drawing interest

Once the multibillion-dollar deal for Mediclinic closes, that transaction will become the largest private equity capital deployment in Africa in the last three years. Mediclinic's buyers include Remgro Ltd. and SAS Shipping Agencies Services SÀRL. The deal is expected to close in the first quarter.

The technology sector, particularly digital infrastructure, is also attracting investor interest, Adelowo said. There is an imbalance in the supply of data centers, for example, compared to growth expected from consumers that need more data and are spending more time online.

Africa's financial services and fintech sectors are also expected to continue to grow as many African countries increasingly move to a cashless society, Adelowo added.

What trends are emerging for African startups in 2022?

Which sectors received the most foreign investment?

Development Partners International (DPI) raised $900 million for its African Development Partners III Fund, focusing on innovation-led companies across various sectors .

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Content: Three years ago, during a roadshow that lasted three days, Nigeria’s Vice President, Professor Yemi Osibajo visited San Francisco’s Silicon Valley to meet with the executives of top tech companies, in order to attract investments to Nigeria’s thriving tech space. The VP, with newly inaugurated members of his Advisory Group on Technology and Creativity, met with Google CEO Sundar Pichai and LinkedIn co-founder Paul Allen before ending the trip at the entertainment centre of the world, Hollywood, where he met with representatives from Sony, Disney, 20th Century, and Imax.

During talks in the roadshow, some investors hinted that even though they are willing to invest in Nigeria, they want the government to have some skin in the tech ecosystem game. When they got back from the trip, the office of the Vice President contacted the African Development Bank (AfDB) to support Nigeria with funding.

The dividends of these efforts did not materialise until this year when the AfDB approved a loan of $170 million to finance the Digital and Creative Enterprises Programme (i-DICE), an initiative by the federal government of Nigeria to promote digital and creative industries in the country. The programme is co-financed by the Agence Française de Développement (AFD) and the Islamic Development Bank (IsDB)

“Governments have a much greater role than just policy making. They need to be innovative and create an enabling environment that includes infrastructure and de-risking to harness private sector investments in key growth sectors,” said African Development Bank President Akinwumi A. Adesina, speaking on AfDB’s investment.

The i-DICE programme is a first-of-its-kind programme that intends to boost innovation, encourage entrepreneurship, enhance social development, boost innovation, and achieve economic transformation by fostering growth in the technology and creative ecosystem. From 2022 to 2026, the programme seeks to attract approximately US$695.80 million to finance various programmatic interventions (US$227.80m) and ground-breaking investment in businesses in the technology and creative sector (US$468m).

This investment will stimulate 226 technology and creative startups and provide non-financial benefits to 451 digital technology and small and medium enterprises. The programme is also expected to help reduce the country’s growing unemployment rate by creating 6.1 million direct and indirect jobs. AfDB’s recent investment alone will support the creation of about 850,000 jobs. It is estimated that the entire added value of the programme to the Nigerian economy would be $6.4 billion.

The programme will support the digital and creative space across four pillars: human capital, enabling environment, finance, and infrastructure. i-DICE will engage in skill development to equip Nigerians from ages 15 to 34 with technology and creative skills to increase their employability, foster innovation in both ecosystems, and widen the pool of entrepreneurs in the country. One of the ways it aims to do this is by upgrading the physical infrastructure of selected tertiary institutions—universities and polytechnics—to satellite labs and innovation centres of excellence and digital entrepreneurship (ICEDE); and online infrastructure—by upgrading the selected online platform to host digital training content and other modules/features.

It will also support technology and creative enterprises by organising Hackathons, providing mentorship, launching a startup voucher programme that will support early-stage startups and entrepreneurs with access to workspace and hubs. It will also help these organisations cut cost by providing them with infrastructure like off-grid power solutions.

Through the Nigeria Entrepreneurship and Innovation Investment Fund, with an initial closing of $468 million, the programme will provide funding for early- and growth-stage businesses in the technology and creative industries in Nigeria. The Fund will invest in these businesses through three funding routes. It will do this by direct investments or debt financing of up to 85% in the Series A rounds of growth-stage startups and about 15-30% in the funding rounds of early-stage startups. Other ways it will also invest in these businesses is by subscribing to closed-end private funds as a Limited Partner of micro-venture capital firms and well-established venture capital firms and investing in listed private equity companies, funds, or other vehicles.

Need for a government-led fund for startups

The federal government discovered that while it has gotten relatively easier for Nigerian founders to raise money after series A, those in the early stage trying to raise some money to build an MVP or wanting to test their product and market find it much more difficult to raise money. So, the federal government is coming into the space to support investments in these early-stage startups.

In the process that led to the creation of this programme, a report Catalysing Growth through Innovation, funded by the UK’s Foreign, Commonwealth & Development Office (FCDO), was published by the federal government to map out the innovation going on in the country.

Ife Adebayo, Special Assistant to the Vice President on Innovation and Entrepreneurship, one of the brains behind the programme, explained that the government is involved in funding startups because it will help the ecosystem engage more confidently with investors, since the government is also actively involved in the ecosystem.

This is against the backdrop of the Nigerian Startup Bill (NSB), a bill that promises to create an enabling environment for Nigerian startups to thrive by resolving standing issues like the unfavourable regulatory environment, weak infrastructure, and lack of innovation incentives like tax breaks. The bill moved closer to being enacted into law when it was approved by the Federal Executive Council (FEC) just last week. This programme hopes to ensure the localisation of the bill when it is passed into law, across all the states of the country. It will serve as a framework to test how effective the bill will be in the ecosystem.

Another important reason for the government’s foray into the tech ecosystem is to invest outside the Lagos and Abuja bubble. The programme will be targeting states like Enugu and Kaduna where innovation activities are increasing, and some other parts of the country where it is at beginner level.

Sultan Quadri Staff Writer, TechCabal

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What trends are emerging for African startups in 2022?

U.S.-based Everstrong Capital is leading the construction of the Usahihi Expressway in Kenya, a $3.6 billion project aimed at improving transportation between Nairobi and Mombasa .

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Content: Africa Business World

Impact of G7’s multi-billion dollar plan on Africa’s infrastructure gap

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In late June 2022, it was announced at the G7 Summit in Germany that a USD 600 billion lending initiative, the Partnership for Global Infrastructure Initiative (PGII), would be launched to fund infrastructure projects in the developing world, with a particular focus on Africa.

The G7 countries – Canada, France, Germany, Italy, Japan, the United Kingdom (UK) and the United States (US) – explained the PGII would help address the infrastructure gap in developing countries.

The US

The US has recently renewed its focus on impact-building and financing strategic, long-term infrastructure projects in Africa, with the Export-Import Bank of the United States (EXIM) supporting infrastructure development on the continent. According to a 2020 report by McKinsey and Company – Solving Africa’s infrastructure paradox – the US accounts for 38% of global investors who have an appetite for African investment, by far the most of any country.

In 2021, the US launched a refreshed “Prosper Africa initiative”, focusing on improving reciprocal trade and investments that create jobs and build infrastructure between the two regions. In 2022, the US announced it would mobilise USD 200 billion over the next five years as part of the PGII, in the form of grants, financing and private sector investments. Some deals have already been announced, including, for example, a USD 2 billion solar energy project in Angola, and the building of multiple hospitals in Côte d’Ivoire.

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The EU

In February 2022, the European Commission announced investment funding for Africa worth EUR 150 billion. The funding package is part of the EU Global Gateway Investment Scheme and is said to be in the form of EU combined member funds, member state investments and capital from investment banks.

In early 2020, the European Commission published its Comprehensive Strategy with Africa, outlining the region’s plans for its new, stronger relationship with the continent. The strategy document laid out five top priorities for the EU in Africa: the green transition and improving access to energy; digital transformation; sustainable growth and jobs; peace and governance; and migration and mobility.

The UK

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The UK is also making a strong play for influence, investment and trade with Africa, post-Brexit. Further to key summits in 2020 and 2021, finance is being redirected into Africa from the UK. In 2022, UK development finance institution (DFI), British International Investment (formerly CDC Group), announced it had exceeded its pledge to invest GBP 2 billion in Africa over the last two years.

The UK’s Global Infrastructure Programme helps partner countries (including in the African continent) to build capacity to develop major infrastructure projects, setting up infrastructure projects for success and paving the way for UK companies to support these projects.

Further, in November 2021, it was announced that the governments of South Africa, France, Germany, the United Kingdom and the United States of America, along with the European Union, were in negotiations to form a long-term Just Energy Transition Partnership.

The partnership focuses on boosting the decarbonisation of the South African economy, with a commitment of USD 8.5 billion for first round financing. It is expected that 1-1.5 gigatonnes of emissions will be prevented over the next 20 years, assisting South Africa to accelerate its just transition. Discussions are also currently taking place to establish a similar partnership in Senegal.

African solutions

The African Development Bank noted in early 2022 that Africa’s infrastructure investment gap is estimated at more than USD 100 billion per year.

DFIs are increasingly anchoring the infrastructure ecosystem in Africa – serving a critical function for project finance as investment facilitator and a check on capital. DFIs can shoulder political risk and access government protections in a way that others cannot, enter markets others cannot and are uniquely capable of facilitating long-term lending.

The large amount of capital needed to fill the infrastructure gap, however, means that DFIs cannot bridge it alone. Private equity, local and regional banks, debt finance and specialist infrastructure funds are primed to enter the market, and multi-finance and blended solutions are expected to grow in popularity as a way to de-risk deals.

The African Union’s 55 member states have stated that their primary funding needs include support in terms of safety and security on the continent, as well help in implementing the African Continental Free Trade Agreement (AfCFTA) and the massive infrastructure investment it needs to be successful.

The development of supporting infrastructure is key to boosting AfCFTA’s free trade potential, especially in terms of transportation, energy provision, internet access and data services, education and healthcare infrastructure projects.

Infrastructure projects in Africa now also have a heightened focus on improving Africa’s capacity for green, low-carbon and sustainable development, via, for example, clean energy, community healthcare and support, green transport, sustainable water, wildlife protection and low-carbon development projects.

Funding such projects comes with responsibility –  projects must not only be bankable and yield attractive returns, but must also be sustainable and provide tangible benefits to local economies and communities. All of Africa’s major partners have noted they will prioritise projects that commit to Environmental, Social and Governance principles, and access to capital for large infrastructure projects is likely to contain sustainability requirements.

That the focus of the PGII is on the sustainability and the social impact of these projects in Africa is further evidenced in the White House briefing room statement issued at the launch in June 2022, where it was stated that the PGII will “mobilize hundreds of billions of dollars and deliver quality, sustainable infrastructure that makes a difference in people’s lives around the world…”

Author: Michael Foundethakis, Baker McKenzie’s Global Head of Projects and Trade & Export Finance, and Africa Steering Committee Chair

Sourced from Africa Feeds

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The African Development Bank (AfDB) actively encourages US investors to engage with Africa, highlighting the continent’s potential as a secure and profitable market.

The African Development Bank (AfDB) actively encourages US investors to engage with Africa, highlighting the continent’s potential as a secure and profitable market.

The African Development Bank (AfDB) actively encourages US investors to engage with Africa, highlighting the continent’s potential as a secure and profitable market.

Private equity deals increased from 230 in 2019 to 255 in 2020, indicating growing investor confidence .

Title:

Content: ‘Africa must substitute food imports by producing locally’

Sanne Steemers, president of Rest of Africa at AFEX, shares insights on addressing the continent's agricultural trade deficit, combating persistent food price inflation and promoting intra-African trade, as the company expands in Africa.

Conversation with

by

Sanne Steemers is the president of Rest of Africa at AFEX, a Lagos-based commodities exchange platform that operates in three markets across the continent: Nigeria, Kenya, and Uganda. Steemers is responsible for rolling out infrastructure, markets, and capital to smallholder farmers and working on the company’s expansion into 10 markets over the next few years.

Prior to joining AFEX, Steemers worked in several roles as a manager, independent advisor, and entrepreneur in agriculture-focused companies and institutions. During those years, she helped facilitate $320m of investments in agribusiness, reaching 1.3m farmers, according to her own assessment.

After joining AFEX earlier this year, Steemers has now raised her target to $1bn and 10m people. In this interview, she explains her ambitions, AFEX’s expansion into new markets, and the role of commodities exchanges in fighting Africa’s trade deficit in agricultural products.

African Business: What do you identify as the main challenge in your journey to facilitating $1bn in investments into agribusiness?

Sanne Steemers: I think that both in trade and in investments there exist large gaps in the size of the different actors. You have farmers needing small amounts, maybe 100 or $200, to buy the seeds and inputs they need for a season. And then you have people sitting on $1m or $10m who can’t be dealing with hundreds of thousands of farmers at a time. The difference in size is one of the major challenges in bringing investors and smallholders together.

Regarding trade, a similar dynamic exists. In Africa, most farmers operate on small plots of land, typically 1 or 2 hectares, and produce a few bags of grain. But large buyers require truckloads of grain daily. Transforming the small quantities produced by individual farmers into large quantities demanded by processors is another significant hurdle. Addressing these issues is crucial to achieving my goals.

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What are the main trends you are observing in agriculture this year?

One emerging trend gaining traction and significance is regional trade. Recent events, such as Covid, the Black Sea blockade, and trade imbalances impacting shipping costs, have highlighted the risks associated with relying heavily on international trade, especially for critical commodities like food. As a result, integrating regional markets to reduce dependency on the global market and enhance trade balance is becoming increasingly important.

Another noticeable trend is the growing interest from investors, both local and international, in generating positive impact through their investments. In the past, agriculture, particularly smallholder agriculture in Africa, was often overlooked. But in recent years investors have become more conscious of the need for impactful investments. This shift in investor mindset has led to increased investments in agriculture, which in turn supports improved productivity, local production, market access, and infrastructure.

You’ve mentioned the Black Sea blockade. Food prices are set to spike again on the continent after Russia’s withdrawal from the export deal. This comes after a year of tremendous inflation in many African countries. How is the agriculture futures market reacting to these challenges?

The prices of food have been very high globally. And I think a lot of African countries are hit even harder because their currencies aren’t as strong as some international currencies. What we see is that food prices are definitely higher than they’ve been in previous years and there’s a strong push for substituting imports with local supply because that at least takes the currency dynamic out of the equation.

We have a very strong focus on our commodities exchange, which provides price transparency. In the past, middlemen used to buy commodities as cheap as they could and sell them as expensive as they could to make a high margin and put that in their own pocket, without necessarily adding much value.

What we quite strongly believe in is that in order for countries to be food secure, we need to get price transparency. Farmers should know what their product is worth and buyers what’s available in the market. This would eventually improve the prices for farmers as well as for the buyers in the long term.

On top of that, building infrastructure is critical. Agriculture generally depends on seasonality. Rain determines when the harvest is happening and prices are generally low at that point of time. If you offer farmers an opportunity to store their product for three months, they tend to get a 30% better price for that same product, and their income spreads out throughout the year. That storage also makes sure that food is available for the population throughout the year and not just at harvest time. Addressing these dynamics helps respond to higher food prices, but more efforts are needed in this direction.

Africa suffers from a major trade imbalance in agriculture, mainly driven by large imports of cereals. How can this trend be reversed?

Indeed, trade imbalances in commodities such as rice, wheat, sorghum, and maize are prevalent. I believe reversing this trend involves three things: addressing productivity, reducing waste, and connecting small farmers to larger buyers.

Enhancing productivity is crucial, as many smallholder farmers currently achieve lower yields due to factors like insufficient knowledge, inadequate tools, and limited access to inputs. AFEX addresses this productivity gap, for example through providing inputs on credit, and that input can then be repaid at harvest time, either in cash or in crop, as the farmer prefers. And what we observe is that, on average, it triples the yields that the farmer would otherwise get.

Reducing waste in the value chain is equally essential. Farmers often hold back some of their harvest for personal use or urgent financial needs, resulting in storage under suboptimal conditions and subsequent loss of quality and quantity. Reducing waste along the value chain would help capture additional value for them.

Lastly, aggregating small volumes from farmers can facilitate transactions with larger buyers. For processors to function efficiently, they need consistent supplies in large quantities, which is challenging with a fragmented smallholder system. The idea of a commodities exchange is to aggregate these small volumes to ensure a steady and reliable supply for larger buyers.

To promote intra-African trade in agriculture, what measures need to be taken to re-route current trade routes inwards?

Cross-border trade within Africa hasn’t always necessarily been very easy. There’s a lot of paperwork involved. I know progress is being made as the African Continental Free Trade Agreement is slowly being implemented, and streamlining those cross-border processes is going to help.

I think Africa would also strongly benefit from having unity in quality requirements. For example, in our operations in Kenya, we only do domestic trade, but we’ve seen that Kenya in recent weeks has rejected imports from several other neighbouring countries.

Part of it is also to recognise the opportunity in Africa. I think historically a lot of people haven’t really tried to fix this issue. I do believe that there’s a major opportunity to substitute imports by sourcing locally and supporting the farmers in the country of operation. And, on top of that, I think there’s a lot that can be done with regional trade.

Also, if you look at complementary harvest seasons, for example, when one country is harvesting, there might be higher demand in a different country. Those are the things that we’re trying to solve with our commodities exchange platform. But it’s also a process that requires commitment and willingness.

As a commodities exchange, what are your expectations from financial regulators in the countries you operate in?

What we see is that various countries have a very different view on regulation. If you look at Côte d’Ivoire, for example, historically, there’s been much more regulation in place for the agricultural sector. If you look at Nigeria, there’s hardly been any in the past. So it’s not easy to answer that question on a generic level.

But in most African countries that we work in, a lot of the governments are pro-business in the sense that they allow the private sector to conclude transactions. They’re moving away from the government as a “value chain actor”, and closer to the government as an enabler.

In Kenya, we were the first company to be certified by the Warehouse Receipt System Council, which means that any farmer that produces to our warehouse gets issued a warehouse receipt which is then recognised by a bank. They can then get finance against that receipt, which gives them the flexibility and empowers them to decide what they want to sell their commodity.

We also see that some governments are setting up or powering commodities exchanges. In some of the countries, those are private exchanges that are regulated by the government, such as what we do in Nigeria, but we also have several relations with governments in a number of countries where they want to set up a public commodities exchange. Overall, those initiatives are more towards enabling trade rather than controlling it, which, I think, is a healthy development.

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Leo Komminoth

Leo is tech reporter for African Business, based in Dakar, and also works on data visualisations.

Moroccan banks have expanded their investments across Africa, generating a significant portion of profits from operations outside Morocco, demonstrating regional integration and partnership growth .

Title:

Content: When asked for his views on diversification as a strategy for portfolio management, Warren Buffett responded, “diversification is protection against ignorance”. Instead of a diversified portfolio, the Oracle of Omaha famously prefers a concentrated one, composed of a few sectors he has rigorously studied.

The UK’s investment strategy for the African continent is seemingly straight out of the Buffett playbook. As of 2020, the UK holds $65bn in total foreign direct investment (FDI) stock in Africa, second only to China. The vast majority of the portfolio is in oil, gas, mining and financial services.

In 2022 five new oil and gas deals worth £2.1bn were struck at the UK-Africa summit. In stark contrast, just £161m (8% of the total summit commitments) were invested in clean energy. One may agree with the UK’s strategy, suggesting that there aren’t many other high-yield investments to be made other than in oil majors, legacy miners and grey-haired banks. And besides, who would disagree with Buffett’s dictum? He is the sixth-wealthiest person in the world after all.

The truth of the matter is that Buffett would not be as wealthy as he is without adapting to changes in market trends, technologies and geopolitics. In May he sold his remaining stake in chip manufacturer TSMC due to geopolitical considerations (TSMC is based in Taiwan). A concentrated portfolio does not mean a stagnant one. It is this insight that the UK is overlooking, setting itself up to miss opportunities in those new industries rapidly taking shape across the world’s youngest and most promising continent.

Two trends are shaping markets across the continent. One of these is the adoption of financial technologies and the other is increased demand for healthcare, a consequence of Africa’s population boom and rising standards of living.

Fintech sector

McKinsey, a consultancy, estimated that revenues in the African fintech sector could surge eight times their current value to $30bn by 2025. Between 2020 and 2021 alone, the number of tech start-ups tripled to 5,200 companies. In 2021, seven of the 10 newly minted African unicorns (private companies valued over $1bn) are fintechs. As more Africans get connected and as digital identification verification models mature, fintechs will scale and profits will follow.

The second sector is pharmaceuticals. As Africa’s population grows and incomes rise, more money will be spent on healthcare. Within this sector, the Covid-19 pandemic laid bare the worrisome state of Africa’s vaccine and therapeutic manufacturing capabilities. Estimates vary, but some assessments forecast vaccine demand to double in volume from about 1-billion doses now to more than 2.7-billion doses by 2040. Industries adjacent to pharmaceuticals such as logistics, packaging and protective equipment are likely to cash in on increased private and public healthcare expenditure.

There are some positive signs that the newly revamped British International Investment (BII), formally the Commonwealth Development Corporation, is adjusting its investments because of these market trends. In 2020, the BII made a $150m investment in Kelix bio, a pan-African pharmaceutical platform focusing on manufacturing and marketing. It also executed a $20m, four-year structured credit deal with Moove, a fintech company that provides customers with cheaper access to vehicles.

Risk premium

These steps are positive but they are small. Inward FDI for Africa remains pitiful. Last year set a record for the continent, bringing in $83bn. To put this in context, the City of London in 2020 hit $831bn in FDI (10 times that of a continent of 54 countries), according to the Office of National Statistics.

What to make of this all? At least two insights. First, the UK should look to new sectors, taking bold bets in companies leading the fintech and pharmaceutical sectors. The second insight is that Africa’s risk premium is overpriced. There is opportunity beyond the industries of the 20th century; one just needs to look for them.

• Nott works for a venture facility for public benefit and is based in London. He writes in his personal capacity. You can follow his writing on Twitter @TheAfricaBrief.

Picture: 123RF

The Alliance for Special Agro-Industrial Processing Zones, supported by the AfDB and other partners, aims to boost agro-industrial growth in Africa with a commitment of $3 billion .

Title:

Content: Is Africa a good place to start a business?

Africa is experiencing a technology boom: the rapid penetration of Internet and mobile technologies make this region more and more interesting for IT entrepreneurs, despite the specificity and heterogeneity of the market.

IT in Africa

The African continent is a large market, as well as a source of direct access to a large audience with smartphones and a wide range of resources. The region is rich in coal, oil, ferrous metal ores, graphite, aluminum, and phosphate and consists of 54 countries, extremely diverse in terms of population, digitalization, economy, and purchasing power. Since January 2021, the continent has had a free trade zone between the countries of the African Union.

The market entry threshold is low, there is no fierce competition, and the potential for growth and demand for technology projects is enormous: the region has many problems that can be solved through innovation.

The continent has a crazy rate of Internet development and a native love of smartphones. You can buy bananas on the street and pay with your mobile account.

Students are often interested in starting their businesses. More often than not, students choose completely new locations and new startup ideas. We recommend that you consider Africa for your business because in a few years it will bring you success. But first, we recommend visiting Africa as a tourist to get a feel for the atmosphere. If you got carried away with preparing for a trip to Africa and forgot to write a research paper on time do not panic. After all, it’s no trouble, because a student service will always come to your aid. So if you’re wondering if you can pay someone to write my paper, always go to the WritingAPaper service. Its experts will help with any academic paper, and you will have time for exciting trips.

By 2025, experts predict Africa’s Internet economy should reach 5.1% of GDP – about $185 billion. FinTech, AgroTech, eCommerce, InsureTech, HealthTech, and CleanTech are considered the most in-demand areas.

According to research firm Briter Bridges, venture capital investment in African startups totaled $1.31 billion in 2021, most of which came from fintech projects. Kenya, Nigeria, and Egypt are considered to be the drivers of the region’s venture capital ecosystem: projects from these countries have received the most investment over the past few years compared with their neighbors on the continent. More than 30% of the continent’s technology hubs are concentrated here.

“The GDP of the entire region is $6.8 trillion. If Africa were a single country, it would be fourth in the world after China, the U.S., and India. Undoubtedly, the economic power of the region is still small, but in the next 30-50 years, it is predicted a stable growth in the range of 6-12% per year, and this process will be accompanied by the creation of new industries and businesses.

GDP per capita in terms of purchasing power parity in Africa is $5.2 thousand, for comparison, in the Russian Federation – $29.4 thousand, in the USA – $68.3 thousand, in Europe – about $41 thousand. However, in the top 20 fast-growing economies of the world, six lines are African countries: Benin, Ghana, Ethiopia, Tanzania, Rwanda, and Cote d’Ivoire. The main technological hubs on the continent are concentrated in South Africa, Nigeria, and Egypt.

The level of development of the IT market in Africa is 5-10 years behind other countries. Until now, only 28% of the continent’s population has access to the Internet, but in the last few years, the situation is gradually changing. Now the digital industry in Africa is actively developing, and the international market is noticing this trend.

African Accelerators & Incubators

There are more than 600 technology centers in Africa, among them incubators, gas pedals, and co-working spaces for companies. One of the most famous technology centers is the CcHUB. It is located in Yaba, Nigeria’s Silicon Valley. CcHUB boasts a rich network of 650 startups across Africa.

CcHUB partners with Amazon, and Google for Startups, Visa, and other international companies. The incubator focuses on projects in health, smart transportation infrastructure, fintech, education, and cybersecurity.

Another major center actively developing a technology and innovation startup environment is the MEST incubator in Ghana. Assistance from the Meltwater Foundation allows MEST to target startups from all over Africa at the earliest stages of development, train entrepreneurs for free, and help with product prototyping and hypothesis testing.

MEST is an educational program for IT entrepreneurs, an internal seed fund, and a network of incubators for technology startups in Africa. The hubs are located in Accra, Lagos, Cape Town, and Nairobi. The organization has been active since 2008, actively supporting programmers and engineers. One of the programs lasts a year, is designed for 60 start-ups, and is completely free. MEST has many famous partners, such as the acceleration program for fintech startups supported by the French bank Societe Generale.

In Ethiopia today, three private business incubators are systematically working with technology startups: BlueMoon, iceAddis, and iCog/Solve. The first has more AgriTech, the second has eCommerce startups, and the third has programming, including AI projects.

The iCog/Solve gas pedal hosts Ethiopia Hacks, a series of 12 hackathons in which 600 people have already participated. The project is funded by the U.S. Department of State and the U.S. Agency for International Development, with Google Developers Group (GDG) and the Center for Accelerated Women’s Economic Empowerment (CAWEE) as partners.

Here, with the support of Kenya’s Ministries of Health and Transport, the famous MSafari service was created to monitor the passenger flow of public transport.

The Cape Innovation and Technology Initiative (CiTi) is the oldest technology business incubator on the continent. Located in Cape Town and founded in 1999, it focuses on the development of IT projects. During its existence, it has helped three thousand entrepreneurs to create more than two thousand companies and continues to be actively involved in the Cape Town technology community.

iHub – each year the gas pedal supports 450 startups. The gas pedal has a wide range of programs for business startups. One of them is aimed at the development of IT projects run by women.

Startupbootcamp Afritech – runs several accelerator programs, including ASIP Accelerator Program and iNovo. Project recruitment happens all the time, and there is a virtual and offline passing format. The program is supported by Amazon, Nedbank, PwC, and other large companies. Participants have a chance to receive an investment of 15 thousand euros.

The most specialized technoparks are presented in South Africa – Technopark Stellenbosch, Highveld Techno Park, and The Innovation Hub. Notable technoparks exist in Senegal (Dakar Technopolis), Rwanda (Kigali ICT Park), Madagascar, and Zimbabwe at NUST University.

Africa, with a population of 1.35 billion, could overtake China and India in the next decade. McKinsey estimates that by 2025, the region will have 360 million smartphones and 240 million computers and laptops, and digitalization will increase GDP by $140-320 billion. Not surprisingly, such a large – and still technologically untapped – market is beginning to play an increasingly prominent role in the economic arena.

Thanks to the serious penetration of smartphones and the large percentage of the young population, the African market is becoming a convenient environment for launching and developing technological projects. A large number of fragmented states at different stages of economic development makes it difficult to create a unified startup industry in the region but does not prevent the effective functioning of individual technology hubs with which large international companies are willing to cooperate.

Localization of foreign projects in Africa is complicated by a large language group, corruption, and the specific mentality of the population, but the potential growth opportunities and lack of serious competition more than offset the possible risks.

We are committed to Africa

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The Africa CEO Forum, held in Kigali, Rwanda, brought together over 2,000 business leaders, investors, and policymakers to discuss the continent's development.

The Africa CEO Forum, held in Kigali, Rwanda, brought together over 2,000 business leaders, investors, and policymakers to discuss the continent's development.

The Africa CEO Forum, held in Kigali, Rwanda, brought together over 2,000 business leaders, investors, and policymakers to discuss the continent's development.

Access Holdings and the Aig-Imoukhuede Foundation announced a commitment of $300 million over 20 years to support African governments' initiatives, showcasing a significant partnership between African entities and foreign investors .

Title:

Content: Advertisement

Adesina Urges US Investors To Back Africa

Channels Television
Updated July 26, 2022

The President of the African Development Bank Group, Dr Akinwumi Adesina has given strong assurance to US investors that Africa is a secure, competitive and profitable market.

Speaking at the US-Africa Business Summit in Marrakech, Morocco, Dr Adesina wants American investors to see Africa as a logical investment destination and to engage with the continent in win-win partnerships.

READ ALSO: Global Recession May Be Imminent As Inflation Surge, IMF Warns

The AfDB boss said that despite the disruptions of the Covid-19 pandemic and its impact on economies, the number of private equity deals in Africa increased from 230 in 2019 to 255 by 2020.

He stressed that even in turbulent times, opportunities still abound in Africa.

What trends are emerging for African startups in 2022?

The Arab Bank for Development in Africa (BADEA) committed $300 million to support SMEs in Africa, with an additional $40 million allocated in 2022 .

Title:

Content: Home Business Africa: nine countries on the continent will benefit from millionaire subsidies for agriculture

Africa: nine countries on the continent will benefit from millionaire subsidies for agriculture

by admin

The Global Agriculture and Food Security Program (GAFSP), a global multilateral fund dedicated to reducing food insecurity and poverty in low-income countries, has announced the disbursement of 220 million dollars in new agricultural investment grants to 15 national governments. Among these many are African. More specifically, the countries involved are: Burkina Faso, Guinea Bissau, Haiti, Honduras, Laos, Lesotho, Madagascar, Malawi, Nepal, Nicaragua, Rwanda, Sierra Leone, South Sudan, Togo and Yemen.

The Gafsp works in close synergy with the Global Alliance on Food Security (Gafs), jointly convened by the German G7 Presidency and the World Bank Group. The Program serves as a key mechanism to strengthen food security dialogues in GAFS-focused countries, where GAFS grants can be a source of funding for priorities identified through these national dialogues.

“Food security is not a sprint, but a marathon that requires investments in long-term sustainable and resilient agriculture, such as those of the Gafsp, the new contributions represent a meaningful and sustainable multilateral response to the current food crisis,” he said Svenja Schulze, German Federal Minister for Economic Cooperation and Development.

Through the call for proposals, the Program received applications from 27 countries, with approximately 80% of the amount requested for investment in the African region. Demand for Gafsp funding remains high and underscores the need for low-income countries to receive support for their actions in response to the current food security crisis.

“Hundreds of thousands of farmers have already benefited from Gafsp grants. Building on this success, this new funding will provide critical support to communities suffering the aftershocks of multiple crises, helping them build their resilience to lift up their communities,” said Abdoul Salam Bello, Executive Director of Group Africa II, the Board of Directors of the World Bank Group. “We need the Gafsp more than ever – he added – with its flexible and unique structure to provide support to the most vulnerable communities”. [da Redazione InfoAfrica]

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What trends are emerging for African startups in 2022?

Technology has become a central driver of foreign investment, with African economies encouraged to integrate more effectively into technology-intensive global supply chains .

Title:

Content:
African economies should seize the opportunity to better integrate into technology-intensive global supply chains and boost prosperity, but this depends on their ability to harness key market and investment trends, the UN’s trade and development body UNCTAD said on Wednesday.

In a new reportUNCTAD shows that Africa can become a major exporter of higher value-added goods, creating growth and jobs, and fuelling a rise in productivity and wages.

Launching the report in Nairobi, UNCTAD Secretary-General Rebeca Grynspan insisted it would offer a better future for the continent’s economies.

Diversifying trade “builds resilience and enhances innovation”, Ms. Grynspan said, adding that diversifaction was “key” for private sector development and employment opportunities for Africa’s growing population.

Africa’s competitive advantage

Ms. Grynspan highlighted three factors driving the “huge” opportunity for the continent. From a geopolitical point of view, countries and businesses are seeking to diversify their suppliers and thus reduce risk. Africa is well placed to tap into this trend, Ms. Grynspan said, which together with the African Continental Free Trade Area offers “great synergies” for participating in global supply chains.

Africa also has a unique advantage amid the rise of the renewable energy market, as it is a vital source of raw materials for technology-intensive industries – for instance lithium, essential to the production of electric car batteries. It has the possibility to become a destination for manufacturing and should seek to export more complex finished goods rather than just commodities, Ms. Grynspan said.

As for demographics, Africa boasts not only a dynamic, young workforce, but also a “burgeoning” middle class offering local consumer markets for hi-tech goods.

‘Untapped potential’

The report analyses “untapped potential” for African countries to strengthen their position in the automobile, solar energy and pharmaceutical industries.

Encouragingly, Ms. Grynspan noted that Africa’s tech ecosystem growth has already proven impressive, as “hubs in artificial intelligence, 3D printing, blockchain, fintech [financial technology] and e-commerce are thriving” in countries such as Kenya, fostering innovation and strengthening Africa’s chance to capture technology-intensive global supply chains.

Higher wages and resilience

Creating an environment conducive to technology-intensive industries will raise wages, the UNCTAD chief said, underscoring that the average wage on the continent is $220 per month while in the Americas, in comparison, it is nearly $670.

According to UNCTAD, deeper integration into global supply chains would also diversify African economies, boosting their resilience to future shocks.

Attract investment

However, for this to happen, more investment will be needed, Ms. Grynspan said. The report highlights the fact that currently, only about two per cent of global investments in renewable energy go to Africa.

Paul Akiwumi, Director of UNCTAD’s Division on Africa, Least Developed Countries and Special Programmes, said that in order to drive more large-scale private investment, regulatory barriers will have to be removed and regional industrial development plans put in place.

Mr. Akiwumi cited the example of a regional agreement between the Democratic Republic of the Congo and Zambia, allowing for the creation of an industrial zone for the production of electric car batteries. He also highlighted the importance of product registration and intellectual property in order to attract investors.

Urgent debt relief needed

Ms. Grynspan stressed that in order for Africa to be able to seize its competitive advantage, the continent’s economies need debt relief to create fiscal space so that countries can invest in strengthening supply chains and in education for their workforce.

She recalled that African countries pay four times more for borrowing than the United States and eight times more than European nations, as shown in UNCTAD’s recent “World of Debt” report.

‘Change the rules’

“This must change if Africa is to achieve its full economic potential and be a major actor in global supply chains,” the UNCTAD chief insisted, pledging the UN’s unwavering support to nations across the continent.

Ms. Grynspan highlighted UN Secretary-General António Guterres’ advocacy to “change the rules that reproduce these asymmetries” and fix the “distorted” perception of risk which international investors hold in relation to developing economies.

Distributed by APO Group on behalf of UN News.

Which sectors are Chinese investments in Africa focusing on?

The rapid penetration of mobile technology and internet access is transforming the African market, with the internet economy projected to reach 5.1% of GDP (approximately $185 billion) by 2025 .

Title:

Content: R3bn fund for African tech start-ups launched

A new funding consortium plans to help start-ups accelerate their growth and enhance efficiencies in the company-consumer relationship

06 February 2022 - 00:00 By Thabiso Mochiko

A new start-up funding group has entered the African market with plans to help businesses accelerate their growth and enhance efficiencies in the company-consumer relationship.

The Norrsken Foundation of Sweden has teamed up with Hans Otterling, a partner at early-stage venture capital fund Northzone in Europe, and an investment team led by Natalie Kolbe, previous global head of private equity at Actis, to launch a $200m (R3bn) fund that will invest in technology companies operating in financial services (fintech), health care (medtech) and education (edtech), as well as “market-enabling solutions” — platforms that accelerate business-to-business (B2B) trade...

The fintech sector is experiencing rapid growth, with revenues expected to reach $30 billion by 2025 .

The Nigerian government’s Digital and Creative Enterprises Programme (i-DICE) aims to attract approximately $695.80 million in investments from 2022 to 2026, with an expected creation of 6.1 million jobs .

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Haley Zaremba

Haley Zaremba is a writer and journalist based in Mexico City. She has extensive experience writing and editing environmental features, travel pieces, local news in the…

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Africa's Green Energy Leapfrog

  • Sub-Saharan Africa's population is expected to double by 2050, leading to a predicted increase in energy demand by a third over the next decade and necessitating a ten-fold increase in power generation capacity by 2065.
  • Africa has abundant resources such as natural gas, sunshine, wind, and rare Earth minerals, creating significant potential for renewable energy growth.
  • The challenge lies in ensuring that Africa's renewable energy production capacity is harnessed to serve its own urgent energy needs, as well as achieving decarbonization goals.

Electrifying Africa is going to be one of the most significant challenges (and promising economic opportunities) of the global clean energy transition. The population of sub-Saharan Africa is the fastest growing in the world, expected to double by 2050. To put that in perspective, by midcentury one in four people on the planet will be in sub-Saharan Africa. Considering the significance of the African population on the global stage, and the need to connect those people to clean and reliable energy, the continent poses a significant challenge for climate goals on a global scale.

As sub-Saharan Africa grows and industrializes, African energy demand is expected to increase by a third over the next decade. Meeting this demand will require a ten-fold increase in power generation capacity by 2065. The problem is that in order to comply with decarbonization imperatives, Africa has to “leapfrog” over what is normally the next phase of development in a poor nation’s economic journey. Today, 600 million people across the African continent still lack access to energy. But while most economies had the good fortune of developing their economies in an era where there was no pushback for burning as many fossil fuels as suited them, African leaders are facing the necessary and virtually unprecedented necessity of skipping straight to cutting-edge (and comparatively expensive) green technologies.

The irony is that while Africa represents the greatest concentration of energy poverty in the world today, it also represents one of the most significant markets for renewable energy production growth potential. The continent is extremely rich in natural gas (considered to be a stepping stone away from dirtier fossil fuels like coal and oil), as well as abundant sunshine, wind, and highly sought-after rare Earth minerals such as lithium and cobalt which are essential components of renewable technologies including photovoltaic solar panels and lithium-ion batteries for electric vehicles and renewable energy storage.

Foreign investors are already flooding Africa in order to develop energy resources in order to shore up their own energy security. Russia and China have been investing in emerging African energy markets for years in a competition to establish dominance in the region, and European countries are increasingly pushing into Northern Africa to build mass-scale solar farms in the Sahara Desert. Now, after decades of decline, manufacturing in sub-Saharan Africa is on an upward trend, and solar panels built in Africa are already cost-competitive with those built in China.

While Africa is all but guaranteed to be the next big thing in global energy markets, however, there is no guarantee that this newfound renewable energy production capacity will meet the enormous and urgent demand of Africa’s own energy grids. Instead, renewable energy supply chains are being established by foreign countries in order to serve the needs of those foreign countries. It’s a dilemma. Africa direly needs the money offered through such contracts, but it also desperately needs all of the energy it can get. After all, half of the continent’s population lacks reliable access to energy – a fundamental barrier to development.

Furthermore, those renewable energy resources are an absolutely necessary piece of Africa’s ability to reach decarbonization goals and “leapfrog” fossil fuels – which is a net gain for the entire planet. But the issue, once again, is money. Rich countries have the money to develop those supply chains (for their own needs) – but for African leaders, it’s another story. A recent study published in the journal Scientific Reports calculates that the cheapest investment cost from all case scenarios that would achieve a renewable energy-powered grid in Africa would be $298 billion.

By Haley Zaremba for Oilprice.com

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What trends are emerging for African startups in 2022?

Which African countries are driving the venture capital ecosystem?

The MultiChoice Africa Accelerator Programme has secured $16 million in funding for six emerging businesses in its first year and has since expanded to eight more African countries, aiming to equip startups with skills and access to transformative business funding .

Title:

Content: Global investors waiting to pour in money in Africa to firewall China

By IANS | Published: August 2, 2021 02:09 PM2021-08-02T14:09:05+5:302021-08-02T14:25:34+5:30

New Delhi, Aug 2: After a tepid inflow of foreign direct investments (FDI) into Africa in 2020 amid the ...

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New Delhi, Aug 2: After a tepid inflow of foreign direct investments (FDI) into Africa in 2020 amid the Covid-19, investors are once again warming up to the continent. According to the United Nations Conference on Trade and Development (UNCTAD), FDI flows into Africa declined by 16 per cent in 2020 to $40 billion, from $47 billion in 2019.

China, the primary investor in the continent, has also slowed down its investments into the continent leaving an opportunity for other investors.

While the UNCTAD projected FDI inflow into Africa to grow this year, it said that the slow vaccine roll-out programme is a cause for concern. According to UNCTAD, FDI to the continent is projected to grow by only 5 per cent in 2021. But analysts said Africa as an investment destination has led to "an unprecedented curiosity" among other countries, which are now aggressively looking to mute China's dominance in the continent.

"Africa is critical in the new geopolitical and geo-economic contours. The continent, with its vast natural resources, offers a ready growth platform," an analyst told India Narrative.

According to a study published by Brookings Institution last week, Africa is home to 17 per cent of the world population. However, by 2050, it will have 26 per cent of the global population 2.53 billion people. "If Africa is not successfully integrated into the global economy, there could be a major threat to global prosperity and stability," the study said, adding that by 2050, the continent will be home to an estimated $16.12 trillion of combined consumer and business spending.

The African Continental Free Trade Area (AfCFTA) – the mega trade could give a push to intra-continental investment.

Touted as one of the biggest trade deals in the world, the AfCTA aims to create a single market comprising 1.3 billion people with a combined GDP of about $3.4 trillion.

Meanwhile, the US may have woken up late in recognising the potential of Africa but is making all attempts to make up for the lost time.

The Group of Seven or G7 has already decided to support US President Joe Biden's proposal of carving out a mega infrastructure plan under the "Build Back Better World" (B3W) initiative, expected to bring in transparency and sustainability. Besides, the initiative will be carried out only in consultation with local communities.

The G7 in its meeting in June also announced that it will increase its support to the Indo Pacific and Africa. "We resolve to collaborate with partners around the world, including in the Indo-Pacific and Africa, to actively promote these shared values for the good of all," said the statement.

India too has pressed the pedal on investments in the region. Sources said that the still-born Asia Africa Growth Corridor—the mega infrastructure project that was launched in 2017 to connect Asia and Africa must be revived.

Carnegie Endowment for International Peace noted that Chinese financiers committed $153 billion to African public sector borrowers between 2000 and 2019. "After rapid growth in the 2000s, annual lending commitments to Africa peaked in 2013, the year the BRI was launched. By 2019, though, new Chinese loan commitments amounted to only $7 billion to the continent, down 30 percent from $9.9 billion in 2018," it said.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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What trends are emerging for African startups in 2022?

The Norrsken Foundation launched a $200 million fund targeting technology companies in financial services, healthcare, and education .

Title:

Content: Photo: DP World

The new port of Ndayane may be DP World’s “largest” investment in Africa, but any hope of it helping unlock the continent’s economies depends on increasing intra-regional connectivity.

Construction of the £1.2bn deepwater port has recommenced after a year-long delay, after president Macky Sall said securing the government’s share of the financing had been resolved. Now there are surging expectations of what the port will do for Senegal’s economy, at least.

“The port of Ndayane and the associated economic zone will reinforce Senegal’s position as a major trade hub and gateway in West Africa,” a DP World spokesperson told The Loadstar.

“Dakar City is choked by over 1,000 trucks entering the port terminal each day. Expansion will support Senegal’s development in the decades to come and address regional disparities with greater infrastructure capacity.”

Working with DP World, British International Investment (BII) has suggested that the new port would enable additional trade, equivalent to 3% of the country’s GDP. This, a spokesperson said, would support a cumulative increase of $15bn in of national trade by 2035, with the port forecast that year to facilitate 18% of GDP and 36% of Senegalese trade.

“Trade enabled by the port will support 2.3m jobs in Senegal, of which 22,000 will be created through additional trade at Ndayane.

“The greatest benefit is expected to be felt by the agriculture and fishing sectors, which are crucial for local and export markets. More than 1,000 direct construction jobs are also expected to be created during construction.”

Sources, however, told The Loadstar that, while money poured into Africa to support raw material exports, not enough was being done to support African products or intra-regional trade.

IRU director of TIR and transit Tatiana Rey-Bellet stressed the need for “better” internal connectivity in Africa and an urgent demand for inland-to-port and cross-continental connections to bolster trade.

“This includes the ‘hardware’ of infrastructure, by which I mean borders, ports, and roads,” Ms Rey-Bellet told The Loadstar. “But more importantly, this requires the ‘software’ of trade to harmonise and improve border processes using international standards.

“In particular, there is an urgent need to facilitate customs procedures with a transit guarantee system such as TIR.”

Indeed, intra-continental trade in Africa is one of the lowest in the world, at 16%, with shippers and forwarders openly criticising what they consider punitive bureaucracy.

Ms Rey-Bellet reiterated that the removal of non-tariff barriers would have “an immediate and pronounced impact” on trade levels across the continent and likely lead to it doubling, if not tripling.

For its part, DP World appears cognisant of the difficulties surrounding intra-regional trade; the spokesperson said African products were often “uncompetitive” on global markets.

The company sees the African Continental Free Trade Area (AfCFTA) as working towards boosting intra-African trade, economic growth.

“Our investment in Rwanda is proof of this; we are eliminating barriers along the supply chain, bolstering global trade flows and removing unnecessary bottlenecks,” said the spokesperson. “We overcame Rwanda’s landlocked geography to help transform it.

“Our logistics hub in Kigali, with efficient access to two ports, has helped increase exports, allowing Rwanda’s agricultural products to reach markets in Europe, the US and Middle East.”

And the spokesperson said DP World’s investment in Senegal would serve another landlocked nation, Mali, which transits 70% of its trade through the congested Dakar terminal, while the authorities consider construction of a freight railway line.

“Collectively, we can develop and manage infrastructure that grows local economies, enabling international, regional and intra-African trade. Initiatives like these are just the first steps to unlocking Africa’s potential.”

The Norrsken22 fund specifically raised $205 million to invest in tech startups across South Africa, Nigeria, Ghana, Kenya, and Egypt .

What trends are emerging for African startups in 2022?

Foreign investment in African infrastructure has also been robust, with commitments exceeding hundreds of billions of dollars from global initiatives like the G7’s PGII, the European Commission’s Global Gateway, and major financial institutions such as the AfDB and British International Investment Plc (BII), which aims to invest $60 billion in Africa over