80Eight, a dynamic public company based in Johannesburg, South Africa, is transforming the landscape for small and medium-sized enterprises (SMEs) across Africa by integrating cryptocurrency into their business operations. Established two years ago, 80Eight uses crypto not just as an investment tool but as a key business enabler, facilitating transactions, reducing costs, and connecting SMEs with global markets.

 

Key Financial Metrics:

Daily Transaction Volume: $1 million

OTC Clients: 180

 

80Eight’s unique approach harnesses the power of cryptocurrency to enhance business operations. Rather than viewing crypto solely as a financial asset, 80Eight integrates it into practical solutions for SMEs, offering:

Global Supplier Connectivity: By leveraging its extensive network, 80Eight helps SMEs connect with international suppliers, especially from regions like China, ensuring better pricing and favorable terms.

Rand Stablecoin [ZAR8]: This in-house stablecoin facilitates smooth transitions from traditional fiat currencies to the blockchain, simplifying transactions and cutting costs.

 

80Eight operates under two essential licenses:

FSB License: Authorizes transactions in forex and cryptocurrency.

RBSA License: Enables treasury facilitation services through authorized dealers.

These licenses support a variety of services, including:

Crypto Arbitrage

Over-the-Counter (OTC) Desk

Treasury Management

Forex Services

Robo Advisory

 

80Eight’s growth  is deeply rooted in its founders’ extensive history in the import and export trade. This background has been instrumental in building and maintaining valuable relationships with suppliers and traders. By leveraging these established connections, 80Eight offers its SME customers unparalleled access to better deals and trade finance options. This historical expertise ensures that their crypto solutions are not just innovative but also grounded in real-world business practices.

 

Faadil Moti, Founder and CEO of 80Eight, notes:

“Our legacy in import and export trade has been crucial in shaping our business. By nurturing relationships with diverse suppliers, we provide SMEs with better trade opportunities and financial solutions. Our use of cryptocurrency as a payment method allows businesses to engage in global trade more effectively and efficiently.”

 

80Eight’s services extend beyond traditional financial solutions, enabling SMEs to utilize crypto for payments and hedging against currency volatility. In markets like Asia, where crypto is increasingly accepted, stablecoins offer practical solutions for transaction settlements.

Conversely, in regions with less liquidity, such as Malawi, 80Eight’s expertise helps navigate higher premiums and market challenges.

Compliance is a cornerstone of 80Eight’s operations. The company actively engages with local regulators to ensure adherence to legal frameworks and adapt to evolving regulations. By applying insights from both South African and international regulations, 80Eight maintains a strong compliance posture across its operational regions.

80Eight envisions a future where digital currencies and traditional banking coexist, with Central Bank Digital Currencies (CBDCs) playing a significant role in financial transactions. Their commitment to integrating digital innovation with traditional financial practices aims to provide comprehensive solutions for businesses navigating a rapidly evolving economic landscape.

For SMEs in Africa, 80Eight represents a forward-thinking partner that merges cryptocurrency with established trade practices, driving growth and efficiency in today’s global market.

 

 

 

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Nigeria was the only African country that made it to the top 20 in Chainalysis’ latest 2024 Crypto Adoption Index.

The West African nation emerged 2nd in the index after India, boosted by strong performance in all categories measured by Chainalysis. In particular, Nigeria was 2nd globally for:

DeFi Value Received

Retail Centralized Service Value Received

The country has been an omnipresent in the analysis by Chainalysis whilst other  African countries drop off. In the 2023 report, Morocco in 20th position joined Nigeria as the only African representatives in the list.

REPORT | Nigeria and Morocco Make Top 20 of the Chainalysis 2023 Global Crypto Adoption Index

While Nigeria has been a mainstay in the top 20 of the Chainalysis’ Global Crypto Adoption index now in its 4th year, Morocco appeared in the list of top 20 countries for the… pic.twitter.com/dxovQoCMBh

— BitKE (@BitcoinKE) September 13, 2023

We are also seeing a drop-off  in developed economies whose influence in the index continues to wane. According to Chainalysis, in 2023 growth in crypto adoption was driven primarily by lower-middle income countries. This year [2024], however, crypto activity increased across countries of all income brackets, with a pullback in high-income countries since the beginning of 2024.

Central & Southern Asia and Oceania (CSAO) countries dominate the 2024 Index, with seven of the top 20 countries located in the region.

The 2024 Global Adoption Index |

The latest Chainalysis report shows Nigeria ranked second globally in DeFi activity and the only African country in the top 20. pic.twitter.com/ZpFYIE0wow

— BitKE (@BitcoinKE) September 13, 2024

“When we look at year-over-year growth in terms of types of services, we see that DeFi activity increased significantly in Sub-Saharan Africa, Latin America, and Eastern Europe. This growth likely drove an increase in altcoin activity in these regions, as shown in the above chart,” said Chainalysis.

It was also found that crypto activity is on the rise. Between Q4 2023 and Q1 2024, the total value of global crypto activity increased substantially, reaching higher levels than those of 2021 during the crypto bull market.

According to Chainalysis, the ETFs triggered an increase in total value of Bitcoin activity across all regions, with particularly strong year-over-year growth in institutional-sized transfers and in regions with higher-income countries, such as North America and Western Europe.

 

“On the contrary, year-over-year growth of stablecoins was higher among retail and professional-sized transfers, and is supporting real-world use cases in low-income and lower-middle income countries in regions such as Sub-Saharan Africa and Latin America, in particular.”

 

 

To access the full report, click here.

 

 

 

 

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Egyptian financial services provider, PayMob, has secured an additional $22 million in funding to its series B round.

The round was led by EBRD Venture Capital, with participation from:

Endeavor Catalyst

PayPal Ventures

BII

FMO

A15

Nclude, and

Helios Digital Ventures, and

all existing investors, also took part.

The extension comes on the heels of Paymob’s sustained profitability in its primary market, Egypt, where it has achieved a sixfold increase in revenue since the initial Series B funding in Q2 2022. With its strong financial standing and the additional capital from the Series B extension, the company is looking to continue executing its growth strategy across the MENA region.

Established in 2015, Paymob became the first fintech to obtain the Central Bank of Egypt’s (CBE) Payments Facilitator license in 2018. It entered the UAE market in 2022 and secured Saudi Payments PTSP certification in May 2023. In December 2023, Paymob became the first international fintech to receive Oman’s PSP license.

NORTH AFRICA | Egyptian Fintech, PayMob, Receives Inaugural International Fintech PSP License from the Central Bank of Oman

As reported by BitKE in 2020, Paymob had an extraordinary 85% market share of all mobile wallet transactions in Egypt at the time.… pic.twitter.com/DBN99xH8yU

— BitKE (@BitcoinKE) January 24, 2024

Paymob initially raised $50 million in its series B in 2022 led by Kora Capital, PayPal Ventures, and Clay Point which enabled the company to launch its app in 2023 and grow its merchant base across MENA by 3.5x to serve nearly 350,000 merchants.

Egypt’s Fintech, PayMob, an infrastructure enabler powering 85% of mobile wallet transactions in Egypt, raises $50 million from PayPal Ventures https://t.co/BWU0MxmjiA

— BitKE (@BitcoinKE) May 15, 2022

Since then, Paymob has expanded its payment acceptance suite to include 50 methods available through its gateway, POS terminals, and app, offering one of the most comprehensive solution in the market. Additionally, the company recently introduced embedded checkout experiences on e-commerce platforms such as Shopify and WooCommerce, further supporting its mission to drive SME growth across the region.

 

“We are very excited by our strong prospects in Egypt, where we hold a market-leading position, and the significant traction experienced in the UAE since launching operations there. This funding will help Paymob fully capitalise on the momentum in our established markets as we accelerate our GCC roll-out,” said Islam Shawky, Co-founder and CEO of Paymob.

“We remain committed to creating a cutting-edge infrastructure enabling SMEs across the region to thrive in the digital economy and are proud of our continued impact.”

 

The investors noted the fintech opportunity in the MENA region:

“The payments landscape in Egypt and the broader MENA region is hugely exciting and is seeing rapid growth as economies transition to non-cash payment methods. We are convinced that Paymob is uniquely positioned to capitalise on that trend with its advanced technology and strong management team,” said Bruno Lusic of EBRD Venture Capital.

“At Endeavor, we have witnessed fintech in the Middle East gain increasing global attention,” added Allen Taylor, Managing Partner at Endeavor Catalyst.

 

 

 

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Kenyan investment app, Hisa, has been acquired by Risevest, a similar but more established venture in Nigeria.

 

“Excited to share that Hisa has been acquired by Risevest,” announced Hisa Co-Founder Eric Asuma on Twitter.

“Eke Urum [Risevest CEO] and I share a vision of expanding investment opportunities for Africans. A huge thank you to our early investors – this milestone is as much yours as it is ours.”

 

The deal reportedly allows Risevest to operate in Kenya and is the second investment by the Nigerian company in less than a year. In September 2023, Risevest, acquired fellow Nigerian venture, digital trading company, Chaka.

 

According to Urum, Hisa will keep its name while the company’s brand and staff will also not be affected by the move.

“We like the Hisa name because it resonates well with Kenyans so we have no plans on changing it,” Rise CEO, Eke Urum, told journalist.

“We are not planning to make a lot of changes; it is time to understand the company, the culture, the context, and the market that we are coming into.”

 

According to reports, the current CEO of Hisa, Eric Jackson, will now become the CTO, a position he previously held before. Asuma, founder of business publication, Kenyan Wall Street, co-founded Hisa with Jackson in 2020 and will stay on as a strategy advisor.

 

Leah Njoroge, formerly an investment analyst at Kenyan Wall Street and finance associate at Hisa, has been appointed head of operations. She will oversee all seven Hisa employees while reporting directly to Urum who will now manage Hisa as part of his broader portfolio of startups.

Founded by Bosun Olanrewaju, Eke Urum, Tony Odiba, Risevest describes itself as a technology-driven finance company connecting everyday Africans with the best dollar-denominated investment opportunities around the world.

Investment fintechs have become popular, particularly among young urban Nigerians, allowing them to invest in foreign stocks and bonds, with experts saying they have increased financial inclusion in the country.

Risevest, which had its accounts frozen by the Central Bank of Nigeria in 2021 for suspected involvement with cryptocurrencies, says it has over 600,000 users with over $42 million in returns paid to investors across Nigeria, Ghana, the United States, Kenya, and Uganda who are leveraging its app to invest in the global stocks.

 

 

 

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The Nigeria Securities Exchange Commission (SEC Nigeria) Chief says the authority will be taking action on entities operating outside of its regulatory purview.

 

“We are certainly going to commence enforcement actions on anyone who wants to operate in this market without the intention of being regulated. For those that do not want to play by the books, we will not allow them to operate within our space,” said Dr. Emomotimi Agama Director-General of SEC Nigeria.

 

The announcement follows the recent move on August 29 2024 by the SEC to grant two digital asset exchanges ‘Approval-in-Principle’ to begin operations under the Accelerated Regulatory Incubation Program (ARIP).

REGULATION | Nigerian Crypto Exchange, Quidax, Receives Provisional Operating License from SEC Nigeria

With the license granted by the Nigerian SEC, Quidax is now able to collaborate with banks and other financial institutions, subject to the Central Bank of Nigeria’s… pic.twitter.com/4gPpLyJi4z

— BitKE (@BitcoinKE) August 29, 2024

ARIP itself was announced on June 21 2024, whereby the SEC stipulated a 30-day-window within which digital asset operators were required to apply to the program or risk enforcement action. Besides the 2 exchanges, 5 more operators were approved under the program while more applications continue to be considered on a case-by-case basis as they meet all SEC requirements.

REGULATION | Nigeria SEC Issues a Notice for Onboarding VASPs in 30 Days Due to ‘Current Realities’

Following the 30-day-period, the Commission indicated that it would commence enforcement action against any operating VASP that fails to comply with the directives.… pic.twitter.com/ThvMC4MwFQ

— BitKE (@BitcoinKE) June 22, 2024

According to Dr. Emomotimi, a self-confessed crypto enthusiast, the local cryptocurrency market is valued at over $400 million with 33.4% of Nigerians using or owning cryptocurrencies. Hence, the move to regulate the virtual assets sector is informed by this growing interest and the need to protect investors.

 

Dr. Emomotimi also says the sector requires monitoring so that it does not impede the Nigerian economy.

“All these we seek to do without hindering innovation because part of our primary responsibility as the SEC is market development,” Agama stated.

 

The regulatory action adopted by SEC Nigeria is reminiscent of the strategy adopted in South Africa where the Financial Sector Conduct Authority (FSCA) has been issuing licenses to virtual asset service providers on a case-by-case basis.

FCSA has so far granted operating licenses to some 138 firms and is running 30 investigations into unauthorized crypto-related financial services within the country.

 

“In the interest of protecting the public and in support of fairness in the industry, the FSCA will act decisively against unlawful CASPs. The FSCA will make the outcome of its investigations known and will publish warnings if it discovers unregistered crypto business.”

 

REGULATION | South African Regulator, FSCA, Pursuing 30 Crypto Firms Operating Without Licenses

According to current crypto regulations, entities that continue operations without applying for registration could face a fine of up to R10 million or even a criminal conviction… pic.twitter.com/ducTAf16Ev

— BitKE (@BitcoinKE) July 8, 2024

FCSA has warned that such platforms are facilitating scams with fraudsters using multiple accounts opened at banks at crypto exchanges as part of their fraudulent activities to avoid detection.

In the same vein, South Africa’s Revenue Service (SARS) has begun issuing tax notices to crypto traders using information obtained from some of the licensed crypto asset exchanges.

REGULATION | The South Africa Revenue Service (SARS) Begins Issuing Tax Notices to Crypto Traders

Failure to provide requested information could be deemed a criminal offense under the Tax Administration Act, the officers say. The national revenue authority has adopted a… pic.twitter.com/NZ5vJJlHZz

— BitKE (@BitcoinKE) September 9, 2024

 

 

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U.S-traded spot Ethereum (ETH) exchange-traded funds (ETFs) saw about $476 million in outflows during the first month of trading.

The ETFs, listed on July 23 2024, posted positive net inflows of $106.6 million on the first day but  Grayscale’s freshly-converted Ethereum Trust experienced $484.1 million in net outflows, a trend that would continue for the rest of the month. 

According to data from Soso Value, Grayscale’s ETHE shed nearly $2.6 billion in its first month.

Sport Ethereum ETFs weekly performance since launch on week of July 23. Only one week saw positive net inflows.

This performance stands in stark contrast to the $5 billion in inflows that Bitcoin ETFs attracted within a comparable period after their launch. This led Bloomberg ETF analyst to point out the “heroic” performance by the 9 BTC ETFs to stem the outflows from the unlock of Grayscale’s GBTC, regarded as the world’s largest Bitcoin ETF.

Although the inflows for other Ether ETFs weren’t enough to achieve a positive net flow for the month, the amount of money invested in these crypto products has still been substantial:

BlackRock’s ETHA saw over $1 billion in inflows, making it the seventh-largest ETF by year-to-date flows, according to shared data

Fidelity’s FETH also experienced notable inflows of approximately $393 million, ranking it as the 19th largest ETF in 2024

Bitwise’s ETHW is another US-traded Ethereum ETF, collecting over $300 million in inflows during its first year

Despite significant outflows from Grayscale’s ETHE, its Ethereum mini trust, ETH, managed to attract close to $240 million in inflows

If the total inflows of U.S-traded Ethereum ETFs were combined into one product, it would rank as the fourth-largest exchange-traded fund by 2024’s flows.

Cumulatively, the ETFs have registered a net negative $562.16 million in flows as of September 4 2024. Meanwhile, while the 8 other products have registered positive inflows in the hundreds of millions, Grayscales ETHE has $2.6 billion in outflows, dragging down the cumulative figure to negative.

 

 

 

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Startups in the Middle East and North Africa region (MENA) raised $83 million across 30 rounds in August 2024.

The figure represents a 76% month-on-month (MoM) decrease from the $355 million startups raised in July 2024, and a 24% decline year-on-year (YoY). On a positive note, equity financing dominated the investments, outpacing debt-financing which was responsible for 3% of the deals.

NORTH AFRICA | Egypt Leads in Startup Funding in MENA region in July 2024, Led by Fintech and Web3 Startups

There was a 260% YoY increase in funding within the MENA region. The Web3 sector had $85 million invested in two startups.

The majority of investment went to… pic.twitter.com/jNxudByXIR

— BitKE (@BitcoinKE) August 15, 2024

Egyptian startups, which led MENA investments in July 2024, saw a significant drop in August 2024, raising just $7.6 million through four deals. Most of the investment flowed to UAE-based startups, with 13 raising a total of $55.7 million. Saudi startups followed in second place, securing $16 million across nine deals.

When looking at the data from a sectoral perspective, the fintech sector remained dominant raising $54 million across eight deals. The sector is seeing somewhat of a boom in the MENA region in contrast to the rest of the world that struggled in 2023.

NORTH AFRICA | MENA Startups – From Underdogs to Leading Innovators in the Global Fintech Arena

Recent data indicates that #MENA valuations are either holding steady or increasing.

For instance, in 2023, the average EV/revenue multiple for SME lending fintechs in… pic.twitter.com/s5tH6D9Lqz

— BitKE (@BitcoinKE) August 30, 2024

MENA’s fintech sector is on an upward trajectory. In 2023, fintech startups from:

Saudi Arabia

Egypt

The UAE, and

Turkey

collectively raised nearly $2 billion in funding.

Web3 came second with startups there raising $13.5 million across 3 deals, a decline from the $85 million invested in two startups in July 2024.

Most investments in the month (August 2024) went to early-stage rounds with only 2 startups declaring late-stage Series A rounds. Startups raising in the seed stage received $15.6 million while over $34.5 million was undeclared.

Moreover, the B2B sector continues to be very attractive to investors investing in the MENA region. 13 B2B startups raised $46 million, while business-to-consumer (B2C) startups raised $15 million over 5 rounds, while the remainder went to startups operating in both areas.

When looking at the data from a gender lens, investments in female-led startups accounted for just 0.3% of total funding. 1 female-founded company, the U.A.E based Powder Beauty, raised an undisclosed pre-Series A round, while another undisclosed startup with a female co-founder received a $150,000 accelerator grant.

Male-founded startups dominated the rest of the funds.

 

 

 

 

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MANSA, a recently founded liquidity provider, has added blockchain payment platform, BitMama, as one of its clients to boost its business across Africa.

Bitmama started in 2017 as a P2P digital currency exchange and quickly grew into a platform to trade and manage cryptocurrencies and digital assets conveniently. Today the platform supports payments for individuals and businesses across more than 18 countries to send and receive payments in multiple currencies.

 

While Bitmama has developed a system for cross-border settlements, it needs liquidity in each country it operates in, according to MANSA.

“MANSA will provide Bitmama with the necessary liquidity to pre-fund accounts across these 18 countries, expanding consumer payment capabilities and supporting business trade across African borders through this partnership.

Our collaboration with Bitmama marks a key milestone for Mansa,” said Mouloukou Sanoh, CEO and Co-Founder of Mansa.

“By providing the liquidity needed to pre-fund accounts, we enable individuals and businesses to benefit from enhanced cross-border payment services. This partnership aligns with Mansa’s mission to close the liquidity gap that hampers entrepreneurs and businesses across Africa and other emerging markets.”

 

Sanoh, previously CEO at Cassava Network, an African Web3 platform specializing in rewards, entertainment, and art, founded MANSA in November 2023 with the goal of addressing ‘the significant funding gap in emerging markets.’

According to the company, it offers innovative liquidity solutions that support growth and foster financial inclusion in these regions.  It sources liquidity from institutional and accredited investors, then creates short-term financing products to companies in the export and payments sectors, guided by their credit scores.

MANSA runs liquidity pools on blockchains like Base, an Ethereum layer 2 solution.  The pools provide liquidity providers (LPs) with attractive yields and token rewards while borrowers benefit from lower interest rates and flexible financing options. These pools are used to provide liquidity to their clients such as Bitmama.

1/6 Mansa launches on @Base to enhance liquidity provision for businesses.

As we continue our mission to support global trade, we’re excited to launch a pool on Base to provide liquidity to exports and cross-border payments companies in emerging markets. pic.twitter.com/J0U1ivRFze

— Mansa Finance (@MansaFinance_co) July 29, 2024

MANSA’s technology partners also include Credora, which generates technology-driven credit ratings and analysis.

MANSA says it is now in operation across major markets throughout Africa.

 

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About Mansa Finance

MANSA is a decentralised finance (DeFi) platform dedicated to providing liquidity solutions to cross-border payment companies.  By sourcing capital from institutional and accredited investors, MANSA offers short-term financing to ensure payment providers have adequate funding to facilitate cross-border settlements for individuals and businesses, particularly in Africa and other emerging markets.

 

 

 

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TLcom Capital, one of Africa’s largest venture capital firms, has officially announced its 6th edition of the Africa Tech Female Founder Summit, which will be held on October 15 2024 in Nairobi, Kenya.

Themed ‘Transformative Leadership: Redefining Success in Tech,’ the 2024 Africa Tech Female Founder Summit is designed to unite, inspire, and empower female founders across Africa, offering a platform to learn from each other and establish supportive networks. The theme will also emphasise the importance of transformative leadership and strategic partnerships in scaling businesses within the tech industry.

This year’s event boasts an exciting lineup of speakers including female founders:

Nelly Chatue-Diop [Ejara]

Nneile Nkholise [Thola]

Rasha Rady [Chefaa] and

Sneha Mehta [Uncover]

who will hold a panel on ‘Scaling and Sustaining Growth.’

The Summit will also hold a series of workshops and mentoring sessions on topics including:

Budgeting and KPI Design by Daisy Liech, [TLcom], and

Growth Strategies and Scaling Successfully by Wandia Gichuru [Vivo]

Additionally, pre-selected startups will have the unique opportunity to pitch their companies and gather feedback from Africa’s leading investors such as Yemi Keri [Rising Tide Africa] and Joyce-Anne Wainai [Chui Ventures].

 

Speaking on the upcoming event, Omobola Johnson, Senior Partner at TLcom Capital, said:

“After navigating one of the toughest years for the tech ecosystem, founders now face a completely new landscape. Capital is still scarce and investors are increasingly pushing entrepreneurs to build, move to profitability faster and scale. But amidst all these demands, we’re missing a crucial discussion—what does it take to succeed in this context, especially as a woman?

This Summit will highlight the high-performance qualities that will empower female founders to rise to the forefront as industry leaders in this demanding environment.”

Over 500 African female tech entrepreneurs have attended previous editions of the Summit with 2023’s event in Lagos spotlighting:

Planet FWD’s Julia Collins, the first black woman to build a unicorn, as a headline speaker.

Previous speakers have also featured:

Julia Gillard, former Prime Minister of Australia and Chair of Andela, as well as

Meg Whitman, former CEO of eBay, Hewlett-Packard and current US Ambassador to Kenya, and

Funke Opeke, Founder and CEO of MainOne, a technology infrastructure company in Nigeria that successfully exited to one of the largest tech infrastructure companies on the continent.

 

Africa Tech Female Founder Summit 2023

Andreata Muforo, Partner at TLcom Capital, adds,

“As women leaders, we often find ourselves navigating uncharted territories where traditional models of success don’t always resonate with our values. This year’s Summit is about exploring what it truly means to lead from within. We’re focusing on the skills that shape our influence – how we hire, how we cultivate culture, and how we make decisions that are authentically our own.

The event will go far beyond business performance metrics; it’s about reconstructing leadership on our terms and inspiring the next generation to see themselves in these roles.”

TLcom is one of Africa’s largest early-stage investors and boasts of a leadership team which is 60% female. The firm has consistently demonstrated a strong commitment to female founders, supporting them through its annual summit and backing some of Africa’s most prominent female-led startups such as:

Okra

Andela

Kobo360, and

Pula

In 2022, TLcom reinforced its efforts to tackle the severe funding gap for Africa’s female tech entrepreneurs with a co-investment commitment to support the launch of FirstCheck Africa’s debut fund.

Currently, TLcom has approximately $300 million in assets under management invested across Africa, holding several startups in its portfolio including:

Andela

Ajua

Autochek

Educatly

Fairmoney

Ilara Health

ILLA

Kobo360

Littlefish

Okra

Pastel

Pula

Seamless HR

Shara

Talstack

Terragon Group

uLesson

Vendease and

Zone

 

With an exclusive focus on Africa, the firm invests across all stages of the venture capital cycle with a focus on Seed and Series A.

With an on-the-ground presence in Kenya and Nigeria as well as offices in the UK, TLcom also invests across a wide range of industries including:

Agriculture

Education

Fintech

Data analytics and

Logistics

targeting high-growth, tech-enabled startups across Africa.

The Summit has now opened applications for participants.

__________

About TLcom

With teams on the ground in Lagos and Nairobi, TLcom Capital is an Africa-focused venture capital investor managing over $300 million in AUM. The firm invests in critical sectors in Africa. Across two Africa-focused funds, TIDE Africa I and TIDE Africa II, TLcom’s portfolio companies include Andela, Autochek, Fairmoney, Illa, LittleFish, Pula, Shara, uLesson and Zone.

 

 

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Kwame Oppong, Head of Fintech and Innovation at the Bank of Ghana (BoG), has announced that the central bank of Ghana is ramping up its efforts to combat illegal lending applications operating within the country.

Oppong highlighted that these unauthorized apps present a serious risk to both consumers and the financial system. He explained that these apps often collect personal information and photos from users during registration. When borrowers fail to repay their loans, the apps misuse this data to threaten and intimidate them.

Disturbingly, there have been reports of borrowers facing such severe harassment that some have tragically taken their own lives.

Addressing the MoMo@15 Fintech Stakeholders’ Forum hosted by MobileMoney Limited (MTN MoMo), Oppong emphasized the BoG’s zero-tolerance policy towards unauthorized financial products that threaten the stability of the financial sector. He firmly stated that the central bank will persist in its crackdown on these exploitative apps.

 

“These actions are both unethical and illegal,” Oppong asserted.

“We will not permit unauthorized lending apps to exploit individuals and undermine the financial system.”

 

The Bank of Ghana’s heightened focus on these illegal apps is part of its broader commitment to safeguarding consumers and maintaining a secure and stable financial environment in Ghana.

The move follows a similar one by the Central Bank of Kenya which published official regulations to protect consumers from digital lenders following complains from Kenyans about some lending apps using their phone contacts to reach out to friends and family with the apps asking a defaulter’s contacts to remind him or her to pay his loans.

The Central Bank of Kenya Officially Publishes Regulations to Protect Consumers from Digital Lendershttps://t.co/5mKyhSelqB @CBKKenya @dlak_ke

— BitKE (@BitcoinKE) March 22, 2022

At that time [2022], the CBK listed the guidelines governing digital lenders as follows:

Lenders will not use obscene or profane language with the customer or the customer’s contacts for purposes of shaming them

Lenders will not use threat, violence, or other means to harm a customer, or his reputation or property if they do not settle their loans.

Lenders are barred from posting a customer’s personal or sensitive information online or on any other forum or medium for purposes of shaming them.

They will not engage in any other conduct whose consequence is to harass, oppress, or abuse any person in connection with the collection of a debt.

 

 

 

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On August 29 2024, the Nigeria’s Securities and Exchange Commission (SEC Nigeria) issued the country’s first crypto licenses to 2 local crypto exchanges and 5 digital aset offering platforms. This marks a new phase in Nigeria’s complex relationship with cryptocurrency, following earlier considerations by the SEC and the Central Bank of Nigeria (CBN) to regulate peer-to-peer transactions in early 2024.

REGULATION | Nigerian Crypto Exchange, Quidax, Receives Provisional Operating License from SEC Nigeria

With the license granted by the Nigerian SEC, Quidax is now able to collaborate with banks and other financial institutions, subject to the Central Bank of Nigeria’s… pic.twitter.com/4gPpLyJi4z

— BitKE (@BitcoinKE) August 29, 2024

Despite the CBN lifting its December 2023 directive that prohibited banks from ‘dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges,’ it began instructing banks to block the accounts of peer-to-peer traders by May 2024.

REGULATION | Central Bank of Nigeria Lifts 2021 Ban on 18 Companies for ‘Dealing in Crypto’ and Weakening the Naira

In 2021, in an affidavit, the Central Bank of Nigeria claimed that the platforms were violating Nigeria’s trading laws including dealing in cryptocurrency in… pic.twitter.com/LcMl6svklA

— BitKE (@BitcoinKE) August 7, 2023

On August 23 2024, a high court in Uyo, Nigeria, rejected a request to unfreeze Patrick Okon’s Kuda bank account, which had been restricted due to its involvement in crypto payments. In April 2024, the Economic and Financial Crimes Commission (EFCC) sought a court order to block over 1,000 bank accounts linked to cryptocurrencies.

REGULATION | Nigeria Freezes Crypto Accounts with Over $37 Million in $USDT Belonging to Suspected Protest Organizers

The wallet with the lion’s share of the assets has over $37 million in $USDT while another has over $400,000 in $USDT.https://t.co/RyifU23UB0 @Tether_to… pic.twitter.com/9U8pax0MP8

— BitKE (@BitcoinKE) August 14, 2024

The Long Road to Nigeria’s Crypto Licenses

In March 2024, Nigeria’s financial regulators halted prominent fintechs from onboarding new customers for five weeks amid a worsening currency crisis. The authorities acted against Binance, accusing the platform of manipulating the naira and detaining two of its executives.

REGULATION | Crypto Exchanges to Stop StableCoin Sales in Nigeria Amid Apparent Crackdown

“There was a meeting of crypto founders on Tuesday [February 27 2024] morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told a local… pic.twitter.com/iiYBuYrpOu

— BitKE (@BitcoinKE) February 29, 2024

As the legal battle involving Binance executive, Tigran Gambaryan continues, the CBN has required fintechs to block any accounts suspected of crypto trading. The SEC, which granted the recent crypto licenses, also suggested in May 2024 that exchanges should avoid peer-to-peer transactions as a patriotic measure.

REGULATION | Local Players Expect Nigeria to Ban Peer-to-Peer Crypto Trading Soon

Already, three Nigerian fintech startups – Moniepoint, Paga, and Palmpay – will block the accounts of customers dealing in cryptocurrency and report those transactions to law enforcement.… pic.twitter.com/2pk9AjrxWJ

— BitKE (@BitcoinKE) May 6, 2024

These inconsistent policies are likely to keep banks and fintechs at arm’s length from crypto-related activities.

 

“Crypto is still persona non grata. The CBN has not openly accepted it yet,” a bank executive, who preferred to remain anonymous, remarked.

 

Despite the SEC’s issuance of provisional licenses to Quidax and Busha, senior executives at major fintech startups report that banks are ignoring these licenses.

REGULATION | Nigerian Fintechs to Resume Customer Onboarding and Block Crypto Accounts After Central Bank Lifts Suspension

At the same time, the bank asked major fintechs including Moniepoint, Paga, and PalmPay to block the accounts of customers dealing in cryptocurrency and… pic.twitter.com/2XUl7mxozI

— BitKE (@BitcoinKE) June 14, 2024

Omotimi Agama, the SEC’s director-general, assured that ‘the CBN has lifted any ban.’

While Agama’s statement is accurate, banks and financial institutions remain cautious, choosing to err on the side of safety with the Central Bank.

 

“The devil is in the details,” a top fintech executive commented.

“The [guideline] is confusing, and the processes are challenging.”

 

Chike Okonkwo, Founder of blockchain startup, Gamic, which has been in discussions with the SEC since 2019, empathizes with the banks’ hesitation.

“If that circular [greenlighting] the banking of crypto firms is binding, why can’t retail traders freely add crypto to the description of their banking transactions?”

 

Busha, one of the new licensees, is more hopeful about improving relations between banks and crypto companies.

 

“The issuance of the crypto licenses is a critical step in maturing the industry. It means that users can engage with operators with increased confidence, which should generally deepen the market,” a Busha spokesperson said.

 

The company also states it is prepared for any ‘tight but effective regulations‘ deemed necessary by the CBN.

 

Until clarity is achieved, banks and fintechs will likely continue to tread cautiously to avoid potential conflicts with the CBN.

 

“Nigerian banking laws are not customer-friendly,” a high-level fintech executive noted, adding that “financial institutions [retain] the right to freeze any account they have reasonable suspicions about any infraction or illicit activity.”

 

Are crypto trades illegal?

Two new licenses and the CBN’s December 2023 directive suggest they are not.

 

However, an operations manager at a commercial bank stated,

“We can only acknowledge the license after receiving instructions from the CBN, our regulator.”

 

 

 

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The office of the Attorney General in the state of Kansas, United States, says it successfully thwarted an attempt by Bimbo Toyin Akinyemi of Nigeria to defraud a local of crypto.

According to the Kansas Attorney General’s Office, Akinyemi had promised the victim a large return for investing in cryptocurrency.

Court documents indicate Akinyemi entered into a contract with the unnamed victim on July 15 2023 where the victim was to purchase Bitcoin and deposit it into Akinyemi’s ‘investment wallet address’ for a return on investment between $500 to $1,240.

Akinyemi exploited the consumer’s lack of understanding about cryptocurrencies, misleading them by concealing that fund transfers could be traced and falsely claiming that depositing funds into a digital wallet would ‘activate’ it as an investment account.

After the deposits, Akinyemi transferred the funds into his own account.

Scams Are on the Rise and Make Up 95% of All Crypto Crimes in Africa, Says Latest Luno Report https://t.co/dVZfAZ81MJ @LunoGlobal

— BitKE (@BitcoinKE) February 2, 2022

Akinyemi then mailed the victim a fraudulent $1,000 check, which was never cashed. According to the Attorney General’s Office, the victim is entitled to a refund of the $250 investment and Akinyemi is responsible for $50,000 in civil penalties for five violations, $4,000 in investigation fees and expenses, as well as all court costs.

This provoked the Charities and Financial Scams unit of the Attorney General’s office to file a lawsuit against the perpetrator under the Kansas Consumer Protection Act. The authorities seized Akinyemi’s wallet which reportedly ‘contained half of a Bitcoin, valued at more than $28,900 and other digital currency valued at more than $4,000.’

A local judge issued a default judgment against Akinyemi after they failed to respond to the summons and petitions sent to their email address. In addition to the financial penalties, Akinyemi has been prohibited from engaging in consumer transactions within the state.

 

“Cryptocurrency is a borderless asset that allows international scammers to target and defraud Kansans from the comfort of a keyboard,” said First Assistant Attorney General, Nathanial Castillo.

“Scammers realize they have a better chance at getting away with fraud if they convince victims to send cryptocurrency. Kansans should always thoroughly scrutinize anyone they meet online before sending payment in cryptocurrency.”

 

The U.S. Department of Justice (DoJ) and the FBI were also part of the investigations on the matter, the AG’s Office said.

REPORT | Over 80% of All Investment Fraud Losses are Crypto Related, says Latest #FBI Report

In 2023, the losses reported due to Investment scams became the most of any crime type tracked by the Federal Bureau of Investigation, the organization said in a report.

When looking… pic.twitter.com/p1GW9sOmDx

— BitKE (@BitcoinKE) May 11, 2024

 

 

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The South Africa Revenue Service (SARS) is now issuing tax notices to crypto traders.

According to officers at local law firm, Webber Wentzel, these notices are based on information obtained from various crypto asset exchanges, signalling a significant escalation in SARS’ efforts to enforce tax compliance within the burgeoning crypto sector.

Failure to provide requested information could be deemed a criminal offense under the Tax Administration Act, the officers say. The national revenue authority has adopted a ‘leave no stone unturned’ policy in its pursuit of revenue collection by any means necessary, including taxable profits from crypto trading.

The South Africa Financial Sector Conduct Authority (FSCA) approved at least 138 license applications to cryptocurrency asset service providers in the country, and these entities are now required to provide certain information to regulators.

In addition, South Africa’s Financial Intelligence Centre (FIC) released a preliminary directive mandating cryptocurrency platforms in South Africa to share the identities of customers involved in cryptocurrency transactions.

Crypto asset service providers (CASPs) would be obligated to share a significant amount of personal data of cryptocurrency senders with recipient providers.

This data includes:

The sender’s full name

ID or passport number

Residential address

Date and place of birth, and

Wallet address

The officers also waded into the legality of trading digital assets, especially from the perspective of the South Africa Revenue Bank (SARB), which shares jurisdiction with the FCSA on the subject.

 

The officials say that SARB has clarified its stance on digital asset trading, effectively refusing to allow the trading of digital assets:

According to the South African Revenue Bank (SARB), neither the Currency and Exchanges Manual for Authorised Dealers, nor the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority, allow for cross-border or foreign exchange transfers for the explicit purpose of purchasing crypto assets.

From an exchange control perspective, the Financial Surveillance Department is unable to approve any transactions of this nature.

              – Webber Wentzel

 

But there remains a legal pathway for the trade of digital assets, the officers argue.

 

“SARB does allow individuals to use their single discretionary allowance (an allowance of up to an overall limit of R1 million per calendar year) or foreign capital allowance to acquire crypto assets.”

“This provides a legal pathway for South Africans to invest in cryptocurrencies within the boundaries of existing financial regulations, however, the Foreign Direct Investment dispensation does not permit investments in crypto assets. While this provides some clarity for natural persons, the position of juristic entities remains challenging.”

 

Given this regulatory environment, the lawyers advise that the era of flying under the radar is swiftly coming to an end, and traders must adapt to these regulatory changes to safeguard their financial interests.

 

 

 

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In a significant leap to open up financial services to the public in 8 West African nations, approximately 90 banks and financial institutions have adopted a groundbreaking instant payment system in the West African Economic and Monetary Union (WAEMU).

Launched in early August 2024, this initiative aims to provide round-the-clock payment processing across the 8 WAEMU countries:

Burkina Faso

Benin

Côte d’Ivoire

Guinea-Bissau

Mali

Niger

Senegal

Togo

EXPLAINER | A Look at the CFA Franc: How it Works, African Countries Involved, and Controversies

The CFA Franc, a currency used in 14 African nations, has garnered significant attention in recent weeks due to its mechanism, the countries involved in it, and the controversies it… pic.twitter.com/hwJEN5JwAO

— BitKE (@BitcoinKE) August 20, 2023

The IPS is set to enhance financial inclusion by enabling payments at any merchant using interoperable QR codes and by standardizing financial services for businesses. Currently, the WAEMU region has around 21 million bank accounts for a population of approximately 142 million. The new system aims to address the financial inclusion gap, with only 24.3% of adults in the region holding bank accounts as of 2022.

The IPS is expected to play a pivotal role in expanding financial access, particularly in underserved areas, and to foster greater economic participation and stability within the WAEMU region.

In 2022, only 24.3% of adults in the region had bank accounts:

Benin is the undisputed leader in terms of bank penetration, with an estimated 35.7%, followed by

Côte d’Ivoire and Togo (both close to 30%)

Mali (24%)

Senegal (22.5%), and

Niger at around 8.7%

REPORT | Africa to Have 12 Metropolises with Over 10 Million Each by 2040, Says Latest McKinsey Report

By the year 2040, Africa is expected to have a total of 12 metropolises, with populations surpassing 10 million each. This will occur as ten additional cities join the ranks… pic.twitter.com/rE19zalWEi

— BitKE (@BitcoinKE) August 6, 2023

The system’s interoperability covers the entire WAEMU zone, enabling smooth cross-border transactions between the eight member countries. Residents of the region can make instant and secure payments, whether for personal or commercial transactions, free from the restrictions of national borders.

The Central Bank of West African States (BCEAO) has initiated a pilot phase for the interoperable instant payment system (IPS). The first phase involved 25 financial institutions, including major players like:

Ecobank

MTN

Mansa Bank, and

Orabank

This testing phase allows for system adjustments and evaluations of effectiveness. A second cohort of 65 institutions, including nine electronic money institutions (EMIs) and 14 decentralized financial systems, joined the pilot on August 12 2024. Notable additions include:

Coris Bank

Cofina

Baobab

Moov

United Bank for Africa, and

Orange Finances Mobile

The IPS stands out for its interoperability, allowing seamless transactions between different types of accounts, whether from:

Traditional banks

EMIs, or

Fintech companies

LIST | Senegalese Fintech, Wave, is the Only African Company Among Y Combinator’s ‘Top 50 Highest-Earning Startups of 2024’

“Revenue is the clearest indicator of a startup’s success, and we’re excited to see so many different types of companies represented.” – CEO,… pic.twitter.com/rLyfJZDVQt

— BitKE (@BitcoinKE) May 9, 2024

According to Modou Sall, a digital banking and fintech strategy consultant and Vice President of operations at fintech KaliSpot, the system ensures broad and diversified participation by licensing all financial entities, including microfinance institutions and e-money issuers.

 

“Interoperability is at the heart of the IPS, enabling a fluid connection between the accounts of customers from different institutions – commercial banks, EMEs or fintechs,” says Sall.

“This total interoperability facilitates transactions between the various players in the financial system. Access to the IPS is universal for all players holding a licence issued by BCEAO.

This openness allows for broad and diversified participation within the system.”

 

Key benefits of the IPS include real-time processing of payments, which ensures immediate availability of funds upon transaction completion. This system enhances transaction fluidity, crucial for economic and financial activities.

The IPS facilitates transactions across various account operators, enabling customers to send and receive money instantly, irrespective of their financial service provider. This interoperability simplifies transactions for merchants and customers by overcoming compatibility issues between different payment systems.

The IPS also extends cross-border capabilities, allowing for smooth transactions between WAEMU member countries. This feature supports secure and instant payments for both personal and commercial purposes across national borders.

The new payment infrastructure operates 24/7 and supports transactions of any type, aiming to simplify everyday transactions and encourage financial innovation. Transaction costs are significantly reduced or even eliminated, benefiting low-income populations and promoting broader financial inclusion.

For small businesses and entrepreneurs, the IPS offers faster access to funds and financial services, enhancing their ability to manage operations efficiently and capitalize on market opportunities. This support is expected to boost local economic growth and entrepreneurship.

 

 

 

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In the ever-evolving world of venture capital, few stories are as compelling as Lexi Novitske’s journey into the African tech landscape. As the General Partner of Norrsken22, an African tech growth fund based in Lagos, Nigeria, and South Africa, Lexi has witnessed firsthand the dynamic growth of the continent’s technology sector. Her experience offers valuable lessons for anyone interested in understanding the current and future landscape of tech investment in Africa.

Norrsken22 list of successful investments in African tech startups includes:

NALA – A Tanzanian fintech which raised $40 million in 2024 following 10x revenue growth and ~500K in user growth

FUNDING | Tanzanian Fintech, Nala, Raises $40 Million in Series A Following 10x Revenue Growth and ~500K User Growth

“To the 200+ Mobile money, bank partners, regulators and investors, your support has been invaluable to us in enabling fast and secure payments cross border… pic.twitter.com/zYoYU243H5

— BitKE (@BitcoinKE) July 10, 2024

OneOrder – An Egyptian restaurant management tool which raised $16 million in Series A funding in 2024

https://www.oneorder.net/assets/videos/oneorder_en.mp4

Shara – A Nigerian app offering collateral-free loans to small and medium businesses and has raised over $6 million to date

Sabi – A Nigerian supply chain services provider which recently raised $6 million

We are excited to announce that @FastCompany has named Sabi as one of the most innovative companies in Europe, the Middle East, and Africa in 2023.

This recognition is based on our unwavering dedication to the Informal trade ecosystem…

1/2 pic.twitter.com/EhPHghOHJ3

— Sabi (@sabiam_africa) March 2, 2023

AutoChek – A Nigerian automotive app offering auto solutons such as loans, maintenance / after sales services, warranty solutions, marketplaces and has raised over $17 million so far

With Autochek, get the financial security you deserve. Visit our website to get started on your adventure right now. https://t.co/LLe6R6A3n1 #Cashloan #FinancialFreedom #freedom #autochek pic.twitter.com/MMiOUgofZ3

— Autochek Africa (@AutochekAfrica) May 22, 2024

Smile ID – An African-focussed leading ID verification service which raised $20 million and accounts for 4% of all digital ID checks with over 75 million ID verifications

‘Smile Identity now powers 4% of Africa.’ – CEO, @SmileIdentity pic.twitter.com/RVTXT1khxB

— BitKE (@BitcoinKE) April 21, 2023

TymeBank – The first digital bank to break even in Africa and having raised over $300 million and have a customer base of over 10 million in South Africa

South AfricanDigital Banking Platform, TymeBank, Raises Over $77 Million as it Onboards Over 300K Customers a Month

In South Africa, TymeBank has established partnerships with various physical retail locations. These partnerships serve as on-boarding points for customers… pic.twitter.com/cw1X4Bohlk

— BitKE (@BitcoinKE) June 1, 2023

Lexi’s path to venture capital in Africa wasn’t straightforward. Originally, she followed a traditional finance career path in the U.S., working in investment banking and then at a hedge fund. However, her decision to take a sabbatical to travel around Africa turned into a transformative experience. What began as a brief adventure evolved into a deep commitment to the continent.

Lexi’s story underscores the importance of being open to unexpected opportunities and how personal experiences can pivot professional careers in unforeseen ways.

When Lexi started her investment journey in Nigeria, the tech scene was vastly different from today’s vibrant landscape.

Back then, major tech success stories were limited to telecom companies and early players like Interswitch. This nascent stage of the tech ecosystem provided a unique opportunity for early-stage investments. Lexi’s move to angel investing was driven by the realization that while early-stage funding was available, there was a significant gap in Series A and beyond. This insight highlights the critical role of funding at different stages of a company’s growth and the need for investors to adapt their strategies as ecosystems evolve.

Norrsken22 was born out of a collaboration with:

Natalie Kolbe

Hans Otterling, and

Niklas Adalberth

inspired by their experiences in the Nordics.

The fund aims to address the gap in growth-stage investments, particularly from Series A onwards. This initiative reflects a strategic approach to investing, focusing on companies that are ready to scale and expand across Africa.

In November 2023, Norrsken22 announced the its first fund’s fundraising of $205 million and said it intends to make investments in approximately 20 startups across the continent, with individual investment sizes ranging from $10 million to $16 million.

FUNDING | Pan African VC, Norrsken22, Raises $205 Million in its Maiden Fund for Growth Stage Startups

Norrsken22 intends to make investments in approximately 20 startups across the continent, with individual investment sizes ranging from $10 million to $16 million.

The fund… pic.twitter.com/w05WxOY8qt

— BitKE (@BitcoinKE) November 8, 2023

Norrsken22’s connection with the Norrsken Foundation, which has been active in Africa, provides a solid foundation for creating a next-generation tech ecosystem on the continent.

Key Investment Focus Areas

Norrsken22 has targeted several critical sectors:

Fintech: The fund is particularly interested in payments and cross-border transactions, recognizing the inefficiencies in these areas and the potential for high-impact solutions

Supply Chain: Addressing inefficiencies in the supply chain sector offers both high margin opportunities and significant improvements in trade efficiency across Africa

Emerging Sectors: While still developing, sectors like ed-tech and e-health are on the radar for future investments as they mature

 

Understanding these focus areas can provide insights into the broader trends and opportunities within the African tech market.

Adding Value Beyond Capital

Norrsken22 doesn’t just invest money; it adds significant value through strategic guidance and operational support.

The fund’s team often takes board seats and collaborates closely with founders on strategy. Their presence in key tech hubs across Africa, like Cairo (Egypt), Lagos (Nigeria), Nairobi (Kenya), Cape Town, and Johannesburg (South Africa) allows them to assist with business development, regulatory issues, talent acquisition, and more. This approach highlights the importance of active engagement in the growth and success of portfolio companies.

Navigating Market Challenges and Future Outlook

Recent capital shortages and economic headwinds have impacted the African investment landscape.

REPORT | Funding to African Startups Declines Over 50% YoY to $780 Million in H1 2024

The decline in startup funding continues the downtrend witnessed in 2023 when Africa’s technology startups raised a total of $3.5 billion across 547 deals representing a 46% decline compared… pic.twitter.com/HDqRSX1Dep

— BitKE (@BitcoinKE) July 5, 2024

However, there’s a growing rebound for high-quality companies that demonstrate strong growth and profitability. Lexi’s optimism about Africa’s tech future reflects the continent’s vast potential and the significant opportunities that lie ahead. The median age in Africa and the rapid urbanization present a promising backdrop for tech innovation and investment.

REPORT | Lagos and Cairo Ranked Among the Top 100 Startup Cities in the World

The report presents the latest research on the global startup economy and includes rankings for 100 countries and 1,000 cities. It contains detailed information on the startup scene of 100… pic.twitter.com/UUekyOFq33

— BitKE (@BitcoinKE) June 14, 2024

Looking ahead, Norrsken22 plans to make several more investments by the end of the year, including both large and early-stage opportunities. This forward-looking strategy indicates the fund’s commitment to staying agile and responsive to market developments.

 

Lexi Novitske’s journey and insights offer a valuable perspective on the growing tech ecosystem in Africa.

“I’m investing in Africa because I think it is the most exciting market in the world, and I think we’re only at day one. I think the future of the world will be in Africa – the median age is 25, China for example is 39. And if we look at this picture in a couple of years time it is going to be even more dramatic,” she said.

“It is a great investment opportunity and a fantastic opportunity to make life better for the billions of people calling Africa home.”

 

Lexi’s experiences highlight the importance of being adaptable, understanding market needs, and actively contributing to the development of emerging sectors. As Africa continues to evolve as a tech hub, investors and entrepreneurs alike can draw inspiration from Lexi’s approach and the opportunities that lie ahead.

 

 

 

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In recent years, the venture capital (VC) scene in Africa has seen a notable shift, particularly in the fields of agritech and climate tech.

The journey of Rhea, a Kenyan agritech startup that focuses on soil health, illustrates this transformation vividly.

Founded in 2022 by Priscillah Wakerera and Soinato Leboo, Rhea initially struggled to attract investor interest. Back then, fintech and e-commerce startups were the main darlings of venture capitalists, while agritech and climate solutions received far less attention. However, this narrative is changing.

Rhea’s recent accolade at the AfricaArena climate summit, where it was named Best Climate Tech Startup, underscores the shifting focus towards climate and agricultural technology. This recognition comes as investments in these sectors are surging, reflecting a broader trend of increased interest and funding.

FUNDING | Egyptian Climate Tech, NoorNation, Secures Fuding to Scale Decentralized Infrastructure

Founded in 2021 by Ragy Ramadan, NoorNation specializes in providing decentralized energy and water infrastructure solutions to off-grid sectors across Egypt and Sub-Saharan… pic.twitter.com/zBNpdgv88k

— BitKE (@BitcoinKE) August 24, 2024

The investment landscape has evolved significantly.

EXPERT OPINION | Why the African Leapfrogging Narrative Has Failed Over a Decade Later

African leapfrogging hasn’t quite panned out quickly enough in key sectors as was originally envisioned by founders and investors in the early 2010s.

Instead, the opportunity in Africa… pic.twitter.com/DFcPgbegKC

— BitKE (@BitcoinKE) August 12, 2024

Since 2019, climate tech funding has seen impressive growth, with investments rising from $340 million to $1.1 billion in 2023. So far in 2024, climate tech startups have captured 45% ($325 million) of the total raised ($780 million) by African startups to date, signaling a strong shift towards sustainable and impact-driven solutions.

So far in 2024, climate tech has already overtaken fintech. Key areas of investment include:

Logistics and transport which received $215 million

Energy and water with $132 million in funding

REPORT | Funding to African Startups Declines Over 50% YoY to $780 Million in H1 2024

The decline in startup funding continues the downtrend witnessed in 2023 when Africa’s technology startups raised a total of $3.5 billion across 547 deals representing a 46% decline compared… pic.twitter.com/HDqRSX1Dep

— BitKE (@BitcoinKE) July 5, 2024

This reflects an expanding investor focus on climate resilience and sustainable infrastructure.

Climate tech funding has been growing in absolute numbers in the past 5 years:

$340 million in 2019

$344 million in 2020

$613 million in 2021

$959 million in 2022 and

$1.1 billion in 2023)

After its share of total investments reaching 36% in 2023, the sector seems on track to grow again in 2024 despite the fact that topping last year’s $1.1 billion invested in Climate tech seems unlikely at this stage.

Organizations like the Kenya Climate Innovation Centre (KCIC) are playing a crucial role in this shift. Since 2022, KCIC has secured over $150 million to support small enterprises in climate tech sectors, including solar energy, waste management, and reforestation. KCIC’s initiatives, such as the solar energy program in Kenya, Uganda, and Tanzania, are helping integrate sustainable practices into various industries.

The rising interest in agritech and climate tech is not just a passing trend.

According to Christophe Viarnaud, Founder and CEO of AfricArena, these sectors hold significant promise for the future of African tech.

Josh Romisher, CEO and Co-Founder of Holcene, echoes this sentiment, highlighting Africa’s potential to become a major player in global climate discussions.

With massive innovation opportunities on the horizon, the investment landscape for agritech and climate tech in Africa is set for continued growth. As the continent faces increasing climate challenges, the focus on sustainable and impactful solutions is more crucial than ever.

The evolving investment trends in Africa underscore a growing recognition of the potential for agritech and climate tech to drive both economic and environmental progress.

 

 

 

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The Central Bank of Egypt (CBE) has announced a notable turn-around with a net profit of Egyptian Pounds (EGP) 22.834 billion (~$470.7 million) for June 2024, marking its first profitable quarter in seven years. This is a significant recovery from the EGP 86.283 billion (~$1.78 billion) loss reported in June 2023.

Since November 2022, the CBE has stopped subsidizing interest rates for five key sectors:

Low-income housing

Middle-income housing

Industry

Tourism

Dual-fuel vehicle conversions

and others.

These responsibilities have been shifted to the Ministry of Finance following directives from Prime Minister, Mostafa Madbouly. This move was part of broader economic reforms aligned with the International Monetary Fund’s (IMF) economic reform program, easing the financial burden on the CBE.

According to a recent June 2024 report analysis published by BitKE, Egypt’s outstanding debt to the IMF now stands at over $260 million.

REPORT | Here Are the 3 #African Which Have Never Taken a Loan From the #IMF

48 African countries collectively owe $42.2 billion to the IMF. This is about one-third of the IMF’s total outstanding credit implying that the African continent is a major borrower of the IMF.… pic.twitter.com/2iHORiraPU

— BitKE (@BitcoinKE) June 21, 2024

The CBE’s profit from investments in subsidiary companies reached EGP 7.052 billion ($145.6 million) in June 2024, up from EGP 2.990 billion ($61.7 milion) in June 2023. Key contributors to this profit include:

$88.8 million from the Arab African International Bank

$34.5 million from the Arab International Bank

$392,220 from the Egyptian Mortgage Refinance Company

$9.6 million from Misr for Central Clearing, Depository and Registry (MCDR)

$598,652 from the Credit Guarantee Company

$536,722 from the Digital Financial Identity Company

$9.97 million from MCDR

$928,943 from EgyCash for technological cash solutions

$289,004 from Tiera Finance

The CBE’s total assets also saw a substantial increase, rising to EGP 6.057 trillion ($125 billion) in June 2024, up from EGP 4.480 trillion ($92.5 billion) in June 2023.

In terms of international financial investments:

The CBE’s capital contributions grew to EGP 22.641 billion in June 2024, from EGP 19.378 billion the previous year [June 2023]

The bank increased its stake in the Islamic Development Bank to EGP 7.071 billion, up from EGP 5.310 billion, and

Raised its investment in the African Export-Import Bank to EGP 9.334 billion, compared to EGP 8.515 billion

Additionally, its investment in the Africa Finance Corporation rose to EGP 3.121 billion, up from EGP 2.438 billion

Investments in subsidiaries and associated companies also climbed to EGP 75.844 billion in June 2024, up from EGP 45.644 billion the previous year.

The CBE’s gold reserves have also surged to EGP 454.925 billion ($9.4 billion) in the first half of 2024, up from EGP 238.6 billion  $4.9 billion) in June 2023.

 

 

 

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Startups in Africa announced $56 million in funding in August 2024, down from $443 million in July 2024 ~8x less) and $234 million in August 2023 (~4x less), making August 2024 the second slowest month in four years in terms of funding raised.

The worst month in funding raised over the last 4 years was June 2024 at only $42 million.

Only 27 startups announced funding in August 2024, way below the average established in the last 12 months of 40+.

According to August statistics by The Big Deal:

The majority of this funding was raised as equity (87%)

The rest was debt (9%), and

Grants (4%)

Fido, which operates in Ghana and Uganda, raised the largest deal in August 2024

Among the largest deals in August 2024 were:

$10 million Series B round by Ghanaian Fintech Fido

$9 million raise by Solarise Africa, an energy startup from South Africa, to expand renewable energy in the country

$8 million in funding byNigerian fintech, Waza (YC W23) after coming out of stealth mode

FINTECH AFRICA | #Nigerian Fintech, Waza, Secures $8 Million in Funding After Experiencing 20% Monthly Growth and Processing Over $700 in Business Payments

Waza achieved profitability in the fourth quarter of 2023 and has successfully sustained its profitability into 2024.… pic.twitter.com/ZZs47I6b4N

— BitKE (@BitcoinKE) August 21, 2024

No exits were recorded in the month of August 2024.

The really good performance of the ecosystem in July 2024, according to analysts, put a risk that this might not keep up in August 2024, and in fact, things turned out to be the case.

That said, the funding already announced in Q3 2024 is set to be higher than Q2 2024 and Q1 2024, according to the data.

 

“2024 keeps tracking below recent years (-40% YoY compared to 2023), but if we care to look on the bright side: despite the August [2024] lull, the ecosystem’s performance was so good in July [2024] that the funding raised in Q3 (with one month still to go) is already higher than in Q1 and Q2 [2024],” notes one funding analyst.

 

 

 

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In a landmark move to support financial technology innovation, the Bank of Tanzania has officially launched its Fintech Regulatory Sandbox, a significant development for the country’s startup ecosystem. This initiative is designed to provide fintech startups with a more flexible and less restrictive environment to test their products and navigate market entry with reduced regulatory burdens.

 

Key Takeaways

Regulatory Support for Fintech Innovation: The Bank of Tanzania’s new Fintech Regulatory Sandbox provides a structured, supportive environment for fintech startups to test their products and navigate market entry with reduced regulatory constraints

Economic Impact and Job Creation: The fintech sector, which constitutes 8.83% of the country’s startups and creates approximately 9,888 jobs, will benefit from the sandbox, potentially boosting innovation and growth in this important sector

Encouragement for Broader Sector Adoption: The Tanzania Startup Association (TSA) is advocating for the creation of sector-specific regulatory sandboxes in various industries, aiming to streamline regulatory processes and promote innovation across different fields

 

The introduction of the sandbox follows a collaborative effort that began with a Public-Private Dialogue hosted by the Tanzania Startup Association (TSA) in June 2021. The dialogue, led by then-Minister of Information, Communications, and Information Technology, Dr. Faustine Ndugulile, aimed to address key challenges facing startups, including regulatory compliance issues that hinder market access and stifle early-stage innovation.

To overcome these barriers, the Ministry of Information, Communications, and Information Technology (MICIT), in partnership with TSA and other stakeholders, developed a National Framework for Regulatory Sandboxes by March 2022. This framework has since been adopted by several sector regulators, including the Tanzania Communications Regulatory Authority (TCRA), benefiting numerous startups.

In 2023, the Bank of Tanzania began developing its own Fintech Regulatory Sandbox, which has now been formally approved by the Ministry of Finance. This new sandbox is expected to greatly enhance the fintech sector, which comprises 8.83% of the 842 startups in Tanzania and contributes approximately 9,888 jobs. The introduction of the sandbox aims to alleviate the extensive and costly regulatory requirements that many fintech startups face, particularly before they achieve product-market fit.

The Fintech Regulatory Sandbox Regulations 2024 offer a structured framework for fintech startups to pilot their products, services, or business models in a controlled environment. The regulations include:

Detailed criteria for eligibility

Application procedures

Financial solution requirements, and

Ongoing supervision by the Bank of Tanzania

This collaborative approach allows for real-time performance monitoring, risk evaluation, and feedback, ensuring that startups comply with regulatory standards before a full market launch.

The TSA has praised the Bank of Tanzania for its leadership in establishing the sandbox and acknowledged the Ministry of Finance’s crucial role in supporting this initiative. The TSA also expressed gratitude to MICIT for its role in the foundational dialogue that led to this progress.

Looking ahead, TSA urges other sector regulators to create similar regulatory sandboxes across industries such as health, agriculture, energy, insurance, transport, and telecommunications. Such sector-specific sandboxes could streamline regulatory processes, foster cross-sectoral innovation, and help address various challenges facing Tanzania.

TSA extends its appreciation to the Government of Tanzania, particularly under the leadership of President Dr. Samia Suluhu Hassan, for fostering an environment conducive to startup growth. The TSA anticipates continued collaboration to ensure that Tanzanian startups can thrive and contribute significantly to the nation’s socio-economic development.

 

 

 

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In the dynamic landscape of diaspora remittances to Kenya, Saudi Arabia is making significant strides, challenging the United Kingdom’s position as a leading contributor. However, both countries’ contributions remain dwarfed by the massive inflows from the United States.

In July 2024, remittances from:

The U.S. reached an impressive $216.6 million, far outpacing

The UK’s $30.2 million and

Saudi Arabia’s $37.4 million

This trend underscores the dominant role of the U.S. in supporting Kenya’s economy through remittances.

Data from the Central Bank of Kenya (CBK) reveals that from January to July 2024, the UK outperformed Saudi Arabia only in the first two months. By July, there were 310,266 Kenyans employed in Saudi Arabia, marking it as the top destination for Kenyan workers in the Gulf region.

M-PESA is the Preferred Remittance Channel for Kenyans Living Abroad, Says Latest Central Bank of Kenya Survey https://t.co/Hv3HlhlaVz @CBKKenya @SafaricomPLC

— BitKE (@BitcoinKE) January 24, 2022

The migration of Kenyans to the Gulf states over the past five years has markedly altered migration patterns and the associated remittances.

For instance, in 2019, remittances from the UK were $20.6 million compared to Saudi Arabia’s $3.3 million. This shift highlights the growing appeal of Gulf countries, driven by their expanding labor markets and more challenging migration conditions in European countries.

In July 2024, overall remittance inflows to Kenya totaled $414.3 million, up 9.6% from $378.1 million in July 2023. For the 12-month period ending in July 2024, cumulative inflows increased by 12.2% to $4,572 million, compared to $4,076 million in the previous year. According to CBK’s weekly bulletin, the U.S. remains the largest source of these remittances, contributing 52% of the total in July 2024.

In a bid to strengthen bilateral ties, Kenya and Saudi Arabia established the Joint Commission for Cooperation (JCC) in Riyadh in 2022, focusing on labor, consular affairs, ICT, transport, and development. However, challenges persist, including allegations of indentured servitude and a concerning number of Kenyan deaths in the Gulf. In July 2024, Prime CS and CS for Foreign Affairs, Musalia Mudavadi, reported 316 recorded deaths of Kenyans in the Gulf, with over half occurring in Saudi Arabia.

As the remittance landscape continues to evolve, the interplay between these key contributors highlights the shifting dynamics of international labor migration and economic support for Kenya.

 

 

 

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