#28: Week of July 1st African Tech Digest.
This week's digest covers H1 2024's funding dip, crypto startup drama, and exciting developments in precision farming, digital payments, and sustainability.
👋🏾 Hello people!
Welcome to the third edition of our weekly African tech digest.
This week's issue dives into Africa's tech funding landscape, the challenges faced by crypto startups, and some exciting developments in agrictech and fintech. We'll be covering everything from the funding dip to South African farms embracing drone technology.
We've also got updates on mergers in the identity verification space, sustainability funding for African startups, and the Nigerian government's plans to support emerging tech.
As always, we have a lot to cover, so let's get to it.
Visualization of the week:
Africa's tech funding falls to $780 million—the lowest amount in four years:
African tech startups received $780 million in funding during the first half of the fiscal year ending June 30, 2024, the lowest amount since late 2020. According to Africa: The Big Deal's analysis, this total represents a 31% decrease from H2 2023 and a 57% decline from H1 2023, highlighting the challenging funding environment.
"Geographically, the "Big Four"—Nigeria, South Africa, Kenya, and Egypt—continued to dominate the funding landscape, attracting four of every five investment dollars. Within this group, Kenya emerged as the frontrunner, receiving one-third of the total funding. Although the concentration of funds in these key markets is high, it is slightly lower than the peak of 92% seen in H1 2023.
The "African Women in Tech and AI Program" holds its second summer camp in Rabat:
The in-person training/summer camp for the second cohort of the "African Women in Tech and AI" project, which aims to strengthen African women entrepreneurs' capacities in artificial intelligence (AI) and AI-applied leadership, will take place at Rabat's International Artificial Intelligence Centre from July 1 to 13, 2024.
At the end of the summer camp, participants will have the opportunity to pitch their entrepreneurial ideas to a panel of experts from the AI Movement, the OCP Foundation, and UNESCO. This panel will choose the projects that will receive incubation and financial support from the OCP Foundation, with approximately 15 projects selected for the 2024 cohort.
Mara, a $23 million Coinbase-backed crypto startup, shuts down after $16 million loss:
Chinyere "Chi" Nnadi and others founded Mara, a pan-African cryptocurrency exchange, in 2021 and initially raised $23 million from illustrious investors like Alameda Research and Coinbase Ventures. Despite a promising start and claims of 4 million verified users for its Mara Wallet, the company faced significant challenges. It burned through cash rapidly, losing $15.9 million in 2022 with high expenses on salaries and marketing. The crypto winter of 2023 and the departure of three co-founders made it difficult for Mara to secure additional funding, leading to financial troubles and debts to vendors.
In early 2024, Nnadi registered a new company called Jara, effectively replacing Mara. This move has sparked controversy, with former executives claiming it's an attempt to avoid Mara's liabilities. Questions have been raised about Mara's financial management, including Nnadi's salary and a $500,000 donation to Mara Foundation. The transition to Jara, presented as a fresh start with a non-custodial crypto wallet, has been met with skepticism from former team members who allege mismanagement and potential fraud in Mara's operations, including claims that 75% of Mara Wallet's reported users were fraudulent accounts.
After failing to raise funds, cash-strapped Copia goes into liquidation:
Copia Global, a Kenya-based B2C e-commerce startup founded in 2013, has decided to liquidate its assets and pay creditors after failing to revive its business following its entry into administration on May 24. The company, which served rural and peri-urban areas with household goods, will lay off all employees and sell assets including delivery trucks, warehouses, and office equipment.
Despite attempts to maintain operations on a reduced scale to attract new investment, these efforts were unsuccessful. This liquidation follows a series of financial struggles, including failed investment talks in June 2024 and the laying off of 1,060 employees in an attempt to reduce costs. Copia's closure reflects broader challenges faced by African e-commerce companies amid worsening economic conditions.
Peleza and Prembly merge to form a Pan-African identity verification powerhouse:
In a strategic move to dominate the African identity verification market, Kenyan startup Peleza has merged with YC-backed Prembly to create the Prembly Group. While financial details weren't disclosed, the merger combines Peleza's background check expertise and East African partnerships with Prembly's identity verification technology.
The newly formed group aims to expand its services across Africa and globally, with Prembly's CEO Lanre Ogungbe leading as CEO and Peleza's founder Marita Mutemi taking on CFO duties. The merger brings together about 100 employees, though ten roles may be eliminated due to overlap. Both companies plan to integrate their KYC/B platforms, leveraging Prembly's brand recognition in compliance and digital security solutions.
South African farms go high-tech with drones:
South African farmers are increasingly adopting drones for precision farming, boosting efficiency and sustainability in agriculture. Drones assist in various tasks, from soil sampling to pesticide application, offering more precise and cost-effective solutions than traditional methods.
The technology enables farmers to make data-driven decisions, optimize resource management, and improve crop health monitoring. South Africa leads the continent in drone usage, with the market expected to reach R2.5 billion by 2025.
Beyond commercial benefits, drones contribute to sustainable farming practices, supporting water conservation and regenerative agriculture. Major retailers like Woolworths are encouraging suppliers to use drone technology for better resource management and crop resilience in the face of climate change.
Ten African startups to get funding for sustainability solutions:
BFA Global, FSD Africa, and IUCN have selected 10 innovative African startups for their Africa Blue Wave and Regen Wave initiatives, each receiving $55,000 in funding. These startups from seven African countries tackle environmental and climate challenges in areas like sustainable fishing, waste management, renewable energy, and eco-friendly products. Half are women-led.
The initiatives, run by TECA with support from OceanHub Africa and funding from FSD Africa and the Canadian Government, aim to boost Africa's blue and green economies. Selected startups will get venture-building support and investor connections to scale their solutions, driving positive change while promoting environmental sustainability.
Minka, backed by Tiger Global, is the latest Latin American fintech to expand into Africa:
Along with other Latin American fintechs entering Africa's expanding digital payments market, Minka, a Colombian fintech with backing from Tiger Global, has launched in East Africa. Minka builds payment networks for seamless money transfers between financial institutions.
The company aims to address similar financial inclusion challenges in Africa and Latin America, where many adults lack access to formal banking. Minka's expansion follows EBANX and dLocal's earlier moves into African markets. These fintechs offer solutions for Africans to access global products using local payment methods.
On Tuesday, Minka launched in East Africa, setting up shop in Kenya, Tanzania, Uganda, and Ethiopia. The company plans to expand to Mozambique, Zambia, and Malawi in southern Africa.
The Federal Government to support Nigerian startups that are developing novel technologies:
The National Information Technology Development Agency (NITDA) of Nigeria has announced plans to support startups developing products in emerging technologies like AI, IoT, and blockchain. NITDA's director-general, Kashifu Inuwa, revealed plans to establish innovation sandboxes and research centres across Nigeria's six geopolitical zones.
These initiatives aim to empower young innovators, build a strong digital economy, and ensure inclusive development. The announcement was made during the IoT West Africa Conference in Lagos, co-located with the Africa Data Centre and Cloud Expo Africa. Event organizers chose Nigeria as the host due to its potential as 'Africa's next Silicon Valley', citing its large youth population and vibrant startup ecosystem.
Opportunities: Fellowships, Jobs & Accelerators.
The Westerwelle Young Founders Programme (YFP) is a six-month fellowship for 25 leaders in emerging markets. It includes a digital kick-off in September 2024, six months of remote support, and a Berlin conference in June 2025 for the top ten participants. Ideal candidates are founders of scalable, disruptive for-profit companies. Apply by August 11, 2024.
Partech Africa seeks an Investment Analyst starting October 2024 in Dakar or Nairobi. Responsibilities include sourcing investment opportunities, managing deal flow, and conducting market research. The role offers exposure to African tech investments and development of investment skills. Apply via the application form; reviews are on a rolling basis.
The Ireland Fellows Programme offers early to mid-career professionals from eligible African countries a fully funded one-year master’s degree in Ireland, covering tuition, flights, accommodation, and living costs. Eligible courses span various fields, including agriculture, health, education, and more.
Wiki Loves Earth 2024 in Nigeria is running a contest where you can submit photos of natural heritage sites and get prizes. The contest runs until July 31, 2024, with prizes including NGN 150,000 for first place, NGN 100,000 for second, and NGN 50,000 for third.
The Africa Matters Initiative is running a four-month virtual program for young African women (ages 16-29) focusing on leadership, climate advocacy, and personal development. Eligible countries include Ghana, South Africa, Nigeria and Zimbabwe. Apply by July 14, 2024.
The iF SOCIAL IMPACT PRIZE supports projects improving society and achieving UN Sustainable Development Goals. Registration is free and open until September 13, 2024. Winners share a EUR 100,000 prize, have their projects published on the iF Design website, and are introduced to a global design community.
On an unrelated note:
Here are some of my favourite listens of the week:
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 ✌🏾
I commend your efforts in keeping us abreast on African Tech happenings and also providing awareness for life-changing opportunities. Take your flowers 💐💐