Welcome to the fourth edition of our weekly African tech digest.
Can you believe we're already halfway through the year? I hope the second half of the year is treating you well.
At Vizible, we've been hard at work these past six months, developing new features and improvements to enhance your experience on our platform. We're excited to share these updates with you in the coming days, so stay tuned 😉
Now, to the matter at hand; the digest. In this issue, we cover Okra's expansion into cloud infrastructure, Nala's impressive $40 million Series A funding, and Kenya's leading position in African startup investments for H1 2024. We also highlight new initiatives like the Timbuktoo fintech hub in Lagos and the Mastercard Foundation's focus on edtech in Africa.
Additionally, we have a selection of exciting opportunities for entrepreneurs and innovators across the continent.
As always, we have a lot to cover, so let's get to it.
Visualization of the week:
Latest Launches:
Okra, known for its open banking APIs enabling financial data access, announced plans for a cloud infrastructure service to compete with AWS and Azure. The new offering will allow businesses to host data and run workloads, aiming to provide a cheaper, more reliable alternative for Nigerian companies.
Payaza, known for its payment solutions for African MSMEs, announced a major rebrand to support global expansion, and new products: EventPort, a global ticketing platform, and Stride, a tuition payment solution for international students.
AltSchool has launched its Cybersecurity Diploma Program, a 12-month course designed for beginners to enter the cybersecurity field without prior experience or degrees. The program covers practical skills in network security, threat detection, risk assessment, and incident response.
NeuRaL AI, a Nigeria-based artificial intelligence solutions company, has launched REACTOR, an AI platform designed to help businesses integrate Generative AI into their operations. The platform allows companies to host custom AI models trained on their own data. Pricing starts at ₦99,000 per month (excluding VAT) for developers and software companies looking to build AI applications.
Kenya attracts the most funding among African nations in H1 2024:
Kenya emerged as a leading recipient of start-up investment in Africa for the first half of 2024, securing a third of the continent’s total venture funding despite an overall decline in investments.
According to Africa: The Big Deal, African start-ups raised $780 million in the first six months of the year, with 79% of this funding going to the ‘Big Four’ start-up ecosystems of Kenya, Nigeria, Egypt, and South Africa.
Kenyan start-ups received $244 million, representing 32% of the continent's total, followed by Nigeria with $172 million, Egypt with $101 million, and South Africa with $85 million.
Despite Kenya's leading position, the report highlighted a challenging period for African start-ups, with the $780 million raised marking a 31% decrease from the latter half of 2023 and a significant 57% decline from the first half of 2023. This period was noted as the quietest for African start-up funding since late 2020.
The funding was predominantly in the form of equity (66%, $513 million) and debt (33%, $254 million). The transport and logistics sectors attracted the most funding, followed by fintech, and start-ups in energy and water.
Tanzanian Fintech, Nala, raises $40 million Series A to build B2B payments platform and scale remittance:
Nala, a remittance startup expanding into the B2B payments space, has raised $40 million in one of Africa's largest Series A deals. Acrew Capital served as the round's lead investor, and other investors included DST Global, Norrsken22, Amplo, and NYCA Partners, who were already investors.
The funding will support Nala’s plans to scale its remittance business to Asia and Latin America and further develop its B2B platform, Rafiki, which integrates with banks and mobile money providers to ensure reliable and cost-effective services.
Nala's consumer app currently enables users in the EU, UK, and US to send money to 11 African markets, leveraging integrations with mobile money services like Kenya's M-Pesa. Benjamin Fernandes, the Founder and CEO, stated that the decision to add payment capabilities was driven by user demand for comprehensive financial control.
Nala aims to enhance its infrastructure and expand its offerings to new markets, addressing the high costs of cross-border transactions and meeting growing demand for remittance services as predicted by the World Bank.
Innovate Africa launches a $2.5 Million fund to support early-stage African startups:
Innovate Africa, an angel investment fund focused on early-stage African startups, has launched with an initial $2.5 million fund. The fund aims to support up to 20 startups in its first year, addressing challenges such as insecurity, unemployment, and poverty through technological innovations.
Despite a 43% decrease in equity funding for African startups in 2023, recent data shows a resurgence, with $187 million raised in May 2024, a 149% increase from April. Innovate Africa aims to provide strategic capital to help founders navigate from ideation to market fit, accelerating product development and establishing a robust market presence.
The fund will provide an average of $50,000 per startup, offering comprehensive support across finance, governance, public relations, and strategy. Startups will benefit from the Product Leadership Accelerator and connections with skilled professionals through an extensive partner network.
Co-founded by Kristin Wilson and Christian Idiodi, the Innovate Africa Fund prioritizes founders and aims to empower African entrepreneurs with impactful technology solutions.
The Timbuktoo Initiative debuts their Lagos fintech hub:
The United Nations Development Programme (UNDP), African governments, and the private sector's initiative to raise $1 billion for start-up innovation in Africa received a significant boost with the launch of the Timbuktoo fintech hub in Lagos, Nigeria.
This hub, the first in a series planned for 13 African countries; including Kigali, Cairo, Cape Town, Accra, Casablanca, Dakar, and Nairobi, aims to harness the continent's young population's potential to drive technological advancement and economic progress.
Former Vice President Professor Yemi Osinbajo highlighted the dramatic impact of innovation on economic prosperity, noting that Nigeria is home to several unicorns, including Flutterwave, valued at over $3 billion, Interswitch at over $1 billion, and Opay at $2 billion.
He pointed out that the founders of these companies were all under 30, underscoring the energy and spirit of innovation that will drive Africa's future. The Timbuktoo project plans to establish 13 unicorn hubs in universities across various countries and 8–9 innovation hubs across the continent.
Mastercard Foundation conference spotlights Africa’s edtech startups:
Investor interest in African education technology (edtech) has waned since the end of the COVID-19 pandemic lockdowns, yet the need for a continent full of young people to focus on education and technology remains critical.
This premise underpins the Mastercard Foundation Edtech Conference, which commenced in Abuja on Monday, July 8th. The event drew hundreds of participants from 13 African countries, and brought together edtech startups, government officials, and investors to discuss the industry’s unique challenges.
Joseph Nsengimana of the Mastercard Foundation emphasized the importance of collaboration among stakeholders to address the education sector’s issues in Africa.
Despite past funding struggles, with edtech accounting for only 0.7% of total tech funding in 2023, the conference aimed to foster dialogue on making edtech services both profitable and affordable.
OPay receives court approval to freeze customer accounts over ₦714 Million system glitch:
In an effort to recover ₦714 million that customers unintentionally received as a result of a system error, OPay has obtained permission from a Federal High Court in Lagos to freeze customer bank accounts across thirty banks.
The error, occurring between December 10, 2023, and March 4, 2024, resulted from a malfunction in OPay’s transaction processing system, managed by the switching company Interswitch. This glitch caused pending transactions to be marked as successful, allowing customers to receive funds without corresponding debits from their accounts.
Once OPay identified the issue, the company began contacting affected customers, especially those who received amounts exceeding ₦500,000, through emails and phone calls, urging them to fund their accounts to rectify the incorrect credits.
Despite these efforts, only 10% of the total amount was recovered, prompting OPay to seek legal intervention. On June 28, 2024, the court granted orders to freeze the accounts of non-compliant customers, enabling OPay to instruct the thirty banks involved to restrict these accounts and recover the erroneously credited funds.
Nasdaq Entrepreneurial Center seeks mid-stage entrepreneurs for Milestone Makers, a 3-month program supporting UN SDGs. Participants receive mentorship, coaching, and media exposure to achieve critical business goals. Apply by July 29, 2024.
Global Center on Adaptation invites applications for Local Adaptation Champions Awards in water security, food security, urban adaptation, and local entrepreneurship. Various organizations addressing climate impacts can apply. Apply by August 11, 2024.
The Enterprise African Network invites applications for its Fellowship Programme. This 12-month initiative enhances export readiness for African small businesses and MSMEs through training, mentorship, and AfCFTA support. Apply by July 26, 2024.
The Founders Factory Entrepreneur Academy program invites early-stage SMEs for a 12-week business growth initiative in Kenya, South Africa, and Nigeria. Participants receive training, mentorship, and a $5,000 grant. Apply by July 26 2024 for Nigeria cohort.
Microsoft for Startups Middle East launches GrowthX Accelerator's 5th cohort for AI startups. The 8-week program offers mentorship, tech support, and up to $150,000 in Azure credits. Apply by September 2, 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:
Alright, folks! We’ve come to the end of this issue.
As we wrap up, if you feel like we missed any big news or insights this week, please let us know what they are in the comments. I’m sure the community would benefit a lot from it!
Here’s something to think about: Did you know that M-Pesa, the mobile money service that revolutionized financial inclusion in Kenya, now processes over 1.7 billion transactions per year? That's more than 50 transactions every second.
It's amazing to see how much of an impact these homegrown solutions have. I take it as a reminder of the potential in our ecosystem.
It also serves as a reminder that identifying unmet needs in our communities is often the source of innovation. So keep your eyes open, be curious, and don't be afraid to question the status quo.
A big shouout to the creators of these homegrown solutions and you too, dear writer for always bringing information like this to my knowledge