#26: Week of June 17th African Tech Digest.
This week's digest dives into Breega's new $75 million Africa fund, Sierra Leone and Rwanda’s innovation cities dreams, Eyowo’s bounce back and more!
👋🏾 Hello people!
Welcome to the second edition of our weekly African tech digest.
This week’s issue covers Breega's new $75 million Africa fund, Sierra Leone and Rwanda’s innovation city dreams, and Eyowo’s bounce back.
We’ll also be talking about Safaricom’s new mobile loan services, Flutterwave’s contribution to building a cybercrime research centre, and an app for checking soil health.
As always, we have a lot to cover, so let's get to it.
Visualization of the week:
Breega, a Paris-based venture capital firm, has closed the first round of a $75 million Africa fund to support pre-seed and seed stage startups.
Paris-based VC firm Breega has observed Africa’s tech ecosystem mature over the years. Now the VC wants to put some of its own money behind what it sees, with a $75 million fund to invest in early-stage startups in Africa. It’s secured commitments for around 70% of the capital in the first quarter.
Since entering the VC scene in 2015, Breega has fully raised four funds. In less than a decade, the French investor, with a portfolio of more than 100 startups across 15 countries, has reached $700 million in assets under management.
Breega plans to invest between $100,000 and $2 million in startups across the Big Four African markets—Nigeria, Egypt, South Africa, and Kenya—as well as Francophone African markets, including Morocco, Senegal, Ivory Coast, Cameroon, and the DRC. The Africa-focused VC firm has already backed nine startups, including Numida, Hohm Energy, Socium, Klasha, Kwara, Coachbit, and Sava, and aims to make at least 40 investments from this first fund.
Sierra Leone and Rwanda are betting on tech cities.
There seems to be a lot of activity in the smart city space. Sierra Leone is seeking to raise $150 million for a far-reaching digital innovation hub strategy centred around a new tech city. The 130-acre special economic zone in Tikonko aims to position the country as an incubation hub for innovators from across the sub-region. They're hoping to turn their small size into a quick-moving advantage, aiming to attract innovators from all over West Africa.
Meanwhile, Rwanda has partnered with Africa50 to develop the 61-hectare Kigali Innovation City (KIC). This smart city could bring in $150 million a year from tech exports and create over 50,000 jobs. Both initiatives focus on attracting talent, fostering innovation, and creating job opportunities in the tech sector.
Eyowo has obtained full reinstatement of their Central Bank of Nigeria's license.
Nigerian fintech company Eyowo has achieved a significant milestone with the full reinstatement of its license by the Central Bank of Nigeria (CBN). This development marks a turning point for the company, which has navigated considerable challenges in recent times.
Yomi Adedeji, CEO of Eyowo, shared the news on social media platform X, expressing gratitude and optimism for the future. He indicated that further details would be revealed in the coming weeks, emphasizing the company’s resilience with the phrase “Impossible is nothing!”
The license reinstatement enables Eyowo to resume offering its comprehensive suite of products, including digital banking, payment solutions, and financial management tools designed for individuals and businesses. This development is crucial for the company’s continued operations and growth in the competitive fintech landscape. I use Eyowo Bank, and I’m excited about this news.
Noki Noki, a Congolese logistics startup, has secured $3 million in seed funding to expand across Central Africa.
Noki Noki, a logistics startup from Congo that offers food delivery and supermarket shopping, has raised $3 million in seed funding. The startup works in six countries and will use the money to grow its business in these places and start working in new markets, including the Democratic Republic of the Congo (DRC).
Uma Ventures led the funding round, demonstrating that investors are still investing in Congolese startups. In 2023, Congo raised $62 million in venture capital, making it the biggest contributor to startup growth in Central Africa.
Carbon, a Nigerian Neobank, has shut down its debit card operations.
A Nigerian fintech company, Carbon, has shut down its debit card operations in Nigeria two years after its launch. Carbon’s co-founder and CEO, Ngozi Dozie, wrote about it on Wednesday in a Substack post.
While he did not specifically state the reasons for discontinuing the card service, Dozie’s post suggests that the company might have made the wrong decision in introducing cards.
Safaricom and Pezesha are launching a new loan service for small businesses.
Safaricom, Kenya's biggest mobile network, has chosen Pezesha, a digital lender, to give loans to small business owners. This will add to Safaricom's current loan services, like M-Shwari and Fuliza. The new product, called Mkopo wa Pochi, lets small business owners borrow money directly through their M-PESA business accounts.
Mkopo wa Pochi is now available through an update on Safaricom's M-PESA super app. This new loan service will work alongside Pochi la Biashara, Safaricom's business wallet for small business owners.
Flutterwave and the EFCC are working together to create a cybercrime research centre.
Flutterwave, a payment services provider, has announced a partnership with Nigeria's Economic and Financial Crimes Commission to build and equip a state-of-the-art cybercrime research centre to intensify the fight against internet crime and promote secure online transactions.
The Cybercrime Research Centre will be established at the new EFCC Academy to serve as a hub for advanced research, training, and capacity building in the fight against financial crimes.
Downforce Technologies has secured $4.2 million to develop soil fertility tools in Africa.
Downforce Technologies, a climate tech startup based in London, has secured $4.2 million to develop new products targeting Africa and to expand into additional markets. Equator VC, an early-stage venture firm with a focus on climate technology in Africa, was the leader of this funding round.
Launched in 2020, Downforce Technologies, under the leadership of Professor Jacquie McGlade, offers cost-effective remote sensing software that enables farmers to measure soil health quickly. The company also provides tools for planning and executing verified carbon projects, collecting and reporting farm emissions data, and implementing soil health improvement initiatives.
Paystack is transforming in-person payments by expanding virtual terminals throughout Africa.
Paystack, a prominent Nigerian fintech company, has extended its Virtual Terminal service to four additional African countries: Côte d’Ivoire, Ghana, Kenya, and South Africa. This expansion marks a significant step in streamlining in-person payment processes across the continent.
The Virtual Terminal allows merchants to generate unique QR codes for their employees, including cashiers, delivery riders, and sales agents. Customers can easily make payments by scanning these QR codes, choosing from various payment options such as mobile money, cards, or Apple Pay. The system then sends instant payment confirmations to the staff member’s WhatsApp.
Paystack’s solution offers flexibility and control to merchants. They can disable QR codes at any time, change the associated WhatsApp numbers, and set up multiple notification recipients for each transaction. This versatility enhances operational efficiency and security.
Opportunities: Fellowships, Programs & Accelerators.
F.I.T. Africa seeks a Program Analyst to support social impact initiatives. The role involves program management, proposal writing, and strategy development. Ideal candidates have strong analytical skills and passion for Africa's transformation. Remote work with occasional in-person meetings. Apply by July 5, 2024, for August start in Lagos.
ShowcaseHER, a 6-month online incubator by Afreximbank and ImpactHER, offers African women-led SMEs free export readiness training, trade finance access, and mentorship. Open to registered businesses in Africa and Caribbean, especially those in Nigeria, Ghana, South Africa, Kenya, and Egypt. Apply by June 30th, 2024.
UNIDO's Global Cleantech Innovation Programme 2024 supports cleantech startups and SMEs in developing countries. They offer business acceleration, mentorship, networking, and financing. They focus on energy, waste, water, green buildings, and transportation innovations. Deadline not specified.
The Hurford Youth Fellows Program offers under-30 democracy activists a 3-month, fully-funded experience in Washington D.C. to develop leadership skills and contribute to global democracy initiatives. Fellows conduct research, lead online discussions, and expand their networks. Deadline not specified.
On an unrelated note:
Here is what the Vizible team is currently reading:
Caleb is reading Søren Kierkegaard's Fear and Trembling
Pelumi is reading Mauborgne & Chan’s Blue Ocean Strategy
Dami is reading Jeffery Pfeffer’s 7 Rules of Power
Signing Out:
Alright, folks! We’ve come to the end of this issue. I hope you found it valuable. If you did, share it with your friends and leave a comment.
Also, don’t hesitate to reach out to me if you have any questions, or if you just want to connect.
See you next week ✌🏾