#25: Week of June 10th Digest.
This week's digest dives into Africa's tech ecosystem: record funding in May, Starlink's arrival in Sierra Leone, Jumia's turnaround, and more!
👋🏾 Hello people!
Welcome to a new thing the team is piloting—the Weekly News Digest.
Starting this week, you’ll get a weekly digest that summarizes the major happenings in the ecosystem for the previous week. As usual, we’ll close out with some exciting fellowship and funding opportunities, as well as what the team has been reading and listening to this week.
Don’t worry, I’ll still be sending my monthly articles. I’m currently working on an article that I hope will help you better understand how lending [credit infrastructure] works. I've learned so much since I started writing it and can't wait to share it with you guys.
Anyway, we have a lot to cover, so let's get to it.
In May 2024, African startups received funding totaling $187 million.
In May, African startups hit the jackpot, scoring a whopping $187 million in funding, a jaw-dropping 149% jump from April's $75 million.
Per a report by 'Africa: The Big Deal,' a firm that tracks startup deals on the continent, 64 companies snagged at least $100,000, with 17 startups bagging over $1 million, showing how investors are warming up to African startups. Breaking it down, 4% came from grants, 31% from equity, and 65% from debt, showcasing the various investment strategies in play.
Notable deals included Kenyan fintech M-KOPA pulling in $51 million and electric vehicle maker Spiro scoring $50 million, proving that diverse sectors are attracting big bucks.
Starlink begins operations in Sierra Leone a year after receiving its license.
The launch in Sierra Leone marks the 100th country where Starlink's satellite Internet service is available globally and reportedly the 10th African country to have official Starlink connectivity. This follows the reversal of bans in several African countries, including Ghana and Botswana, which have now granted Starlink operational licenses.
African countries were urged to use the AfCFTA to boost their economies.
African countries have been encouraged to use the African Continental Free Trade Agreement to improve their economies and enhance food security in sub-Saharan Africa. Currently, Africa has the lowest inter-regional trade globally, at just 13% compared to Asia's 60%.
This was a resolution made during the Africa Economic Summit 2024, themed "Africa: Riding the Crest of Global Economic and Political Volatility." Dr. Sam Ohuabunwa and Dr. Brian Reuben, the summit's leaders, emphasized in a statement that African nations must adopt a global perspective and amass sufficient resources to compete with nations like the USA, China, and India.
Microsoft intends to remain in Nigeria.
Despite rumours circulating this past week about Microsoft leaving Nigeria, Microsoft has confirmed it has no plans to exit Nigeria. Olatomiwa Williams, Microsoft's country manager for Nigeria, has denied these claims during a meeting with the Minister of Finance.
Jumia's stock has risen 150% in the past year.
Jumia, the African e-commerce giant, has staged an impressive rally in 2024, with its shares soaring to $8.67, the highest level of the year. This turnaround can be attributed to the company's successful efforts to cut losses by 70% in Q1 2024 by trimming advertising and sales costs while increasing revenue by 18.5%. The positive results, achieved despite challenges like inflation and currency devaluation, have been well-received by investors.
The company's new CEO, Francis Dufay, has played a pivotal role in this transformation by implementing changes such as shutting down the loss-making Jumia Food vertical, relocating executives closer to active markets, and improving logistics capabilities through a new integrated warehouse in Lagos. Dufay's strategic decisions have put Jumia on a path to profitability and sustainable growth.
The $400 million iShares ETF from BlackRock is leaving Kenya and Nigeria
BlackRock, the world's largest asset manager, is closing its $400 million iShares Frontier ETF, which invests in stocks from frontier and select emerging markets like Nigeria and Kenya. This move reflects the ongoing withdrawal of foreign investors from these markets due to economic challenges, including weak local currencies.
The fund's board decided to liquidate it because of ongoing liquidity problems and difficulties in repatriating local currencies. The fund will stop trading on March 31, 2025, and during this time, iShares will sell its assets and hold the proceeds in cash.
Fibre Optic is Connecting Africa to the Internet
Tech companies such as Google and Facebook parent Meta are investing in new data highways and speeds for Africa.
The first Google Cloud data centre on the African continent has been up and running since January in Johannesburg, South Africa.
This move is projected to reduce data costs, create better and faster internet , and increase accessibility to internet usage.
FIRS removes the tax charges brought against the executives of Binance and names Exchange as the only defendant.
The Federal Inland Revenue Service (FIRS) has dropped tax charges against Binance executives Tigran Gambaryan, the crypto exchange's head of financial crime compliance, and Nadeem Anjarwalla, who fled. This comes after FIRS confirmed Ayodele Omotilewa as Binance's representative and filed a new charge, this time with the exchange as the sole defendant.
Earlier this year, in March 2024, FIRS filed tax evasion charges against Binance, alleging that the cryptocurrency platform violated four tax laws and naming Gambaryan and Anjarwalla as the second and third defendants, respectively. The authority accused Binance of failing to register with the authorities for tax purposes, violating the country's tax law.
Opportunities: Fellowships, Programs & Accelerators.
The United Nations Development Program is offering $25,000 in equity-free funding to selected African fintech startups through its Timbuktu Accelerator program. Startups must have a MVP leveraging technology in financial services and contribute to UN SDGs to be eligible. The application portal will be open from May 31 to June 21, 2024.
Tech Global Institute is seeking six fellows for 2024–25 to promote equity and accountability in technology design and governance for underserved global majority communities. Fellows receive a paid 6-month policy research project with mentorship and professional development opportunities. The application deadline is June 20, 2024.
The Community Engagement Exchange (CEE) Program is now accepting applications for its 2025 fellowship program that provides civil society leaders aged 21-27 with leadership training, a U.S. practicum, and support to implement a community project. The program covers expenses like travel, housing, and health benefits for the year-long program. Applications are due by July 2, 2024.
The HumAngle Foundation has launched the Technology and Civic Impact Fellowship to provide technology and innovation training to civil society professionals in Nigeria. The fellowship includes 5-day in-person training and a 3-month project period, covering expenses like travel and stipends. Applications are due by July 12, 2024.
Ecobank has opened applications for the 7th edition of its Fintech Challenge, inviting early-stage and mature fintech startups across Africa to partner and scale their solutions across Ecobank's 35 African markets. The challenge offers a grand prize of $50,000 and opportunity to join Ecobank's Fintech Fellowship program with access to Ecobank's pan-African network, sandbox, and venture capital partners. Applications are open until July 7, 2024.
The Hurford Youth Fellows Program brings emerging democracy activists under the age 30 to Washington, D.C., for a 3-month fellowship to expand their global network, learn from other movements, and contribute to the World Movement for Democracy initiatives. Fellows receive a monthly stipend, health insurance, and travel costs, and work full-time on research projects, online engagement, and presentations related to expanding civic space, countering disinformation, building accountability, and delivering democracy.
On an unrelated note:
Here are three of the Vizible team’s favourite reads and listens this week:
Signing Out:
Alright, folks! We’ve come to the end of this issue. I hope you found it valuable. If you did, please let me know in the comment section. I always love getting feedback from you guys.
Also, don’t hesitate to reach out [Dami Oludumila] if you have any questions, or if you just want to connect.
See you next week! ✌🏾