2023 And Bitcoin: An Appraisal

Changpeng Zhao, CEO of Binance

If 2022 was the year that “broke bitcoin”, 2023 has been the year of trauma recovery. Bitcoin has bounced pluckily in the face of depressed crypto prices, low trading volumes and tough economic conditions. It even found a second wind in October following a midyear slump.

“We’ve had a nice recovery, but we’re just in the cusp of the new cycle,” said Kelvin Koh, co-founder and managing partner at investment firm Spartan Group.

Indeed, 2023 has been a surprisingly good year for bitcoin.

Changpeng Zhao, CEO of Binance
Changpeng Zhao, CEO of Binance

The king of cryptocurrencies has leapt 164% since 1 January and is trading above $40 000. It has outpaced traditional assets, including gold which has risen 10% and the S&P 500 which has gained 20%.

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Bitcoin also increased its share of the total cryptocurrency market, from 38% to above 50%, according to CoinGecko data. The overall crypto market cap has swelled to US$1.7-trillion from $871-billion at the end of 2022, with ether’s price jumping 95%.

Much of bitcoin’s gains came later in the year as a potential US spot bitcoin exchange-traded fund (ETF) and hopes of easier monetary policy renewed investor energy.

Trading volumes have picked back up, too, with the combined spot and derivatives trading volume on centralised exchanges hitting $3.6-trillion in November, up from about $2.9-trillion in January, according to CCData.

Stablecoins

Meanwhile, stablecoins — cryptocurrencies whose value is pegged to a real-world asset like the US dollar — have also grown. Tether, the largest such coin, has seen its market cap soar to an all-time high of more than $90-billion. After a torrid 2022 saw the downfall of FTX and Sam Bankman-Fried, 2023 has seen more crypto giants come a cropper.

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Binance chief Changpeng Zhao pleaded guilty to breaking US anti-money laundering laws, most notably, part of a multibillion-dollar settlement with regulators. The co-founder of Voyager Digital also found himself on the wrong end of American regulatory action, while Celsius founder Alex Mashinsky was arrested in the US in July, pleading not guilty to criminal counts including securities fraud.

And not forgetting SBF — after a whirlwind trial, the former industry poster child was convicted of fraud in November.

On a brighter note, Ripple’s XRP token clocked gains of 82% for the year after a key legal victory for the industry when a US judge ruled Ripple Labs’ sales of the token on public exchanges did not violate securities law.

Most of bitcoin’s 55% run in the fourth quarter has been attributed to bets that a spot bitcoin ETF will be approved in the US and pull in money from retail and institutional investors alike on the ease of gaining exposure to the digital asset on a regulated stock exchange.

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Asset management giants like BlackRock and Fidelity are among the 13 companies that have submitted applications to the US Securities and Exchange Commission for the multibillion-dollar product.

Such a fund is expected to pull in as much as $3-billion from investors in the first few days of trading and billions more thereafter.

Not everyone is as bullish though.

To some market watchers, it looks like the current bitcoin recovery is still in early stages

JPMorgan, which expects the crypto market recovery to continue through the expected approval in early 2024, however remains sceptical of the magnitude of success in adoption that broader market is pricing in.

JPMorgan expects the bitcoin ETFs to pull in assets in the low or low to mid-single digit percentage range of the $1.7-trillion crypto market compared to some optimistic outlooks of 10%.

If adoption falls short of investor expectations of around 10%, crypto markets could reverse their recent gains, it said. To some market watchers, though, it looks like the current bitcoin recovery is still in early stages.

Bitcoin profits

The net dollar-denominated realised profit locked in by bitcoin investors has reached $324-million/day, which remains an order of magnitude below the peaks experienced during the later stages of the 2021 bull market, which eclipsed $3-billion/day, according to analytics platform Glassnode.

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This suggests the large cryptocurrency’s current performance remains very much within the bounds of an early rather than a late-stage bull market, Glassnode said.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Huawei, Xiomi, Oppo Show Strong Grip on African Markets

smart phones

Mobile phone brands from China have consistently shown super grips on the African markets even as Apple and Samsung remain the most popular smartphone brands worldwide, with a combined market share of just over 56% in the first half of the year. In South Africa, however, Samsung dominates the market with 52.2% share followed by Apple in distant second place at 16.6% and Huawei at 15.4%, while the rest of Africa is increasingly being dominated by low-cost Chinese brands such as Itel and Tecno.

This is according to a new report by tech review and research website John’s Phones, which found that despite impressive growth of Chinese brands Huawei, Xiaomi and Oppo, sales figures for 2023 reveal the continued dominance of Apple and Samsung on the global stage.

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These two phone makers – one headquartered in California in the US and the other in Suwon in South Korea – were responsible for all of the 10 best-selling smartphones in the world in the first six months of this year, said the John’s Phones report.

smart phones
smart phones

The data shows Apple’s key markets include the US, Russia, Australia and Europe. Samsung, on the other hand, is the market leader in Africa, Eastern Europe, South America and parts of the Middle East. Rather than maintaining a proportionate share of each market, Chinese contenders such as Xiaomi, Tecno and Oppo tend to dominate specific markets or regions.

Oppo has taken off in parts of the Far East, holding the number-one spot in Indonesia, the Philippines and Singapore. Low-cost smartphone brand Tecno has a strong foothold in Nigeria, Uganda and the Democratic Republic of Congo.

Researcher IDC’s Worldwide Quarterly Mobile Phone Tracker report for the second quarter of 2023 shows similar trends. According to the company, worldwide smartphone shipments declined by 6.8% year on year in the second quarter.  

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Apple iPhone sales have been in steady decline since they peaked in the second quarter of 2022, while Samsung’s resurgence in the first quarter was offset by a decline in sales in the second quarter.

“There is a real concern about when volume picks up and what the horizon is for iPhone sales growth,” said Daniel Newman, CEO and principal analyst at research firm Futurum Group.

IDC, however, said manufacturers are optimistic about the market heading into the new year. “We are finally hearing optimism from key original equipment manufacturers and supply chains and expect the market to return to growth by the end of the year and into 2024,” said Nabil Popal, research director with IDC’s mobility and consumer device trackers, in a blog post. “As the market ramps back up, it is also an opportunity for newer vendors to gain share.”

Among the relative newcomers making a dent in the smartphone market is Shenzhen Transsion Holdings, which owns the Tecno, Itel and Infinix brands. In stark contrast to the sales declines experienced by other manufacturers in IDC’s data, Transsion sales rose 34% year on year in the second quarter and the company, which focuses on emerging markets, shipped 25.3 million units in the period.

IDC ranks Transsion as fifth-largest smartphone manufacturer in the world, with its share of the market estimated at 6.5%. “IDC expects a shift in the vendor rankings at the bottom of the stack, as we already see happening this quarter with Transsion entering the top five for the first time,” it said.

John’s Phones data shows that Transsion has made significant inroads into key African markets. Through its Tecno (26%) and Infinix (21%) brands, the company holds 45% of the Nigerian smart phone market.

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A similar picture presents itself in the DRC, where Transsion has more than 40% of the market through its Tecno and Itel brands. Transsion’s share of the Ugandan market at 26%, meanwhile, is outpacing Samsung’s 20%.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

CDG Invest Unveils Eight Promising Startups Selected for the 7th Edition of the 212 Founders Program

CDG Invest, through its investment arm 212 Founders, proudly announces the selection of eight innovative startups for the 7th edition of the renowned 212 Founders program. The investment committee meticulously reviewed nearly 300 applications, choosing companies operating in diverse sectors such as Fintech, DeepTech, BioTech, Afritech, and more. Notable among the selected startups are Premium Technology and Services, PCS Agri, Fungu’it, Tickie, AltBiotech, TrackLab, and Cryptr.

Nawfal Fassi Fihri, the Director of the 212 Founders program, highlighted the unique nature of this edition, emphasizing its position in supporting startups aspiring to grow in Morocco. Fihri stated, “This position reinforces our presence as a Moroccan support and investment program ready to support projects from the diaspora in Europe.” The selected startups will receive individualized mentoring, specialized training, and networking opportunities to connect with investors and partners.

Since its inception in 2019, the 212 Founders program has successfully realized 18 seed and Series A fundings, allocating a total of 97.2 million dirhams (MDH) (9.6 Million USD). Phase 1 (Seed) of the project is allocated 7 MDH, while phase 2 (Series A) is allocated 10 MDH.

In a strategic move to boost the global presence of Moroccan and African startups, 212 Founders pioneers an innovative program providing both guidance and financing. The program is open to high-potential individuals with at least a Minimum Viable Product (MVP) and emphasizes innovation, scalability, and a strong ambition for internationalization in Africa or the Middle East.

The program, financed by CDG Invest, operates on a non-profit basis with a mission to bring forth globally impactful startups tied to Morocco and Africa. During the incubation phase, startups can secure Seed funding ranging from €200k to €700k. As startups progress to acceleration, 212 Founders stands ready to co-invest up to €1M during a Series A funding round, collaborating with other venture capital funds.

The 212 Founders program unfolds in three distinct phases: Project Sourcing, Incubation (6 months), and Acceleration (12 months), focusing on large-scale deployment and preparing startups for a Series A funding round.

Historically based in Casablanca, Morocco, 212 Founders has expanded its reach to Paris, France, ensuring equal access to mentorship, support, and resources for startups in both locations. The program’s operations remain consistent, promoting entrepreneurship and innovation in the region.

Startups in the program have the opportunity to develop internationalization strategies towards MENA and Africa, leveraging the strategic advantages of Morocco, such as a pool of tech talents and development resources. This holistic approach aims to foster entrepreneurship and innovation, creating a thriving ecosystem for startups in both Casablanca and Paris.

CDG Invest 212 Founders

Julaya

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.  As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

Tingo Group in Crisis: CEO Faces SEC Fraud Charges Amidst Company’s Downfall

In a startling sequence of events, Tingo Group, a once-thriving fintech entity, is now caught in the throes of a deepening crisis. The latest blow comes as the company’s CEO, Dozy Mmobuosi, faces serious fraud charges filed by the US Securities and Exchange Commission (SEC). This development marks the culmination of a series of allegations, regulatory interventions, and market turbulence, spelling out a grim narrative for the embattled company.

The saga began on June 6, 2023, when Hindenburg Research, a reputable short seller, released a damning report that pierced through the veneer of Tingo Group’s success. The report alleged financial improprieties, casting doubt on the legitimacy of Tingo’s reported user base, pointing to licensing irregularities, and raising questions about the veracity of the company’s financial practices.

The aftermath of Hindenburg’s revelations was swift and brutal. Tingo Group’s stock prices plummeted by an alarming 60%, triggering a seismic shock in the market. Investors, once optimistic about the fintech giant’s future, found themselves facing unprecedented uncertainty, with growing concerns over the integrity of their investments.

In response to these grave allegations, Tingo Group’s independent directors took a proactive stance. On August 30, 2023, they initiated a comprehensive internal investigation, enlisting the expertise of independent counsel and a top-tier legal firm to scrutinize the claims made by Hindenburg Research. The company aimed to address the allegations head-on and provide clarity to stakeholders amid the escalating crisis.

However, matters took a decisive turn on November 14, 2023, when the US Securities and Exchange Commission (SEC) stepped in, suspending trading in Tingo Group and its subsidiary, Agri-Fintech Holdings. The SEC cited concerns regarding the adequacy and accuracy of publicly available information, casting a dark shadow over the company’s operations.

The climax of Tingo Group’s ordeal has now unfolded with the SEC filing charges of “massive fraud” against CEO Dozy Mmobuosi. The charges allege Mmobuosi orchestrated a scheme to fabricate financial statements and engage in fictitious transactions through Nigerian subsidiaries, totaling billions of dollars.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.  As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Remittance Flows Continue to Grow in 2023 Albeit at Slower Pace

Contactless Payments

A new report shows that remittances to low- and middle-income countries (LMICs) grew an estimated 3.8% in 2023, a moderation from the high gains of the previous two years. Of concern is the risk of decline in real income for migrants in 2024 in the face of global inflation and low growth prospects, according to the World Bank’s latest Migration and Development Brief released today.

In 2023, remittance flows to LMICs are estimated to have reached $669 billion as resilient labor markets in advanced economies and Gulf Cooperation Council (GCC) countries continue supporting migrants’ ability to send money home.

By region, remittance inflows grew for Latin America and the Caribbean (8%), South Asia (7.2%), East Asia and the Pacific (3%), and Sub-Saharan Africa (1.9%). Flows to the Middle East and North Africa fell for the second year, declining by 5.3% mainly due to a sharp drop in flows to Egypt. Remittances to Europe and Central Asia also fell by 1.4% after gaining more than 18% in 2022.

The United States continued to be the largest source of remittances. The top five remittance recipient countries in 2023 are India ($125 billion), Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion), and Egypt ($24 billion). Economies where remittance inflows represent substantial shares of gross domestic product (GDP) – highlighting the importance of remittances for funding current account and fiscal shortfalls – are Tajikistan (48%), Tonga (41%), Samoa (32%), Lebanon (28%), and Nicaragua (27%).

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Based on the trajectory of weaker global economic activity, growth of remittances to LMICs is expected to soften further to 3.1% in 2024. Driving the moderated forecast are a slowing economic growth and the prospect of weaker job markets in several high-income countries. Additional downside risks include volatile oil prices and currency exchange rates, and a deeper-than-expected economic downturn in high-income countries.

Contactless Payments
Contactless Payments

“During crises, migrants have weathered risks and shown resilience to support families back home. But high inflation and subdued global growth is affecting how much money they can send,” said Iffath Sharif, Global Director of the Social Protection and Jobs Global Practice at the World Bank. “Labor markets and social protection policies in host countries should be inclusive of migrants, whose remittances serve as a vital lifeline for developing countries.”

According to the Bank’s Remittances Prices Worldwide Database, remittance costs remain persistently high, costing 6.2% on average to send $200 as of the second quarter of 2023. Compared to a year ago, sending money to all regions was more expensive, with the Middle East and North Africa being the exception. Banks continue to be the costliest channel for sending remittances (with an average cost of 12.1%), followed by post offices (7%), money transfer operators (5.3%), and mobile operators (4.1%).

“Remittances are one of the few sources of private external finance that are expected to continue to grow in the coming decade. They must be leveraged for private capital mobilization to support development finance, especially via diaspora bonds,” said Dilip Ratha, lead economist and lead author of the report. “Remittance flows to developing countries have surpassed the sum of foreign direct investment and official development assistance in recent years, and the gap is increasing.”

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A special section of the Brief describes how diaspora finances can be mobilized for development and strengthening a country’s debt position. Diaspora bonds can be structured to directly tap diaspora savings held in foreign destinations. Many countries provide for nonresident deposits to attract diaspora savings. However, unlike diaspora bonds, such savings tend to be short-term and volatile. Future inflows of remittances can be used as collateral to lower the costs of international borrowings by developing countries. Due to their large size relative to other sources of foreign exchange, counter-cyclical nature and indirect contribution to public finances, remittances can also help improve a country’s sovereign ratings and its ability to repay debt. 

Regional Remittance Trends

Remittances to East Asia and the Pacific increased by an estimated 3% to reach $133 billion in 2023. Excluding China, remittances to the region grew an estimated 7% to $83 billion in 2023, supported by the sustained growth in remittance flows to the Philippines, which has migrants in a well-diversified set of host destinations across the world. The average cost of sending $200 to the region was 5.9% in the second quarter of 2023. In 2024, remittance growth to the region is estimated to be 2.4%.

Remittance flows to Europe and Central Asia are estimated to have declined by 1.4% to $78 billion in 2023. The subdued growth in 2023 is due mainly to an unusually high base level posted in 2022, driven by huge amounts of money transfers from Russia, and a lingering weakness in flows to Russia and Ukraine. Depreciation of the Russian ruble against the U.S. dollar has also decreased the value of money transfers from Russia. The average cost of sending $200 to the region was 6.9% in the second quarter of 2023 (excluding Russia). In 2024, remittances are projected to post a decline of 1.2%.

Remittance flows to Latin America and the Caribbean are expected to increase by 8% to reach $156 billion in 2023. The strong labor market in the United States positively impacted remittance flows. Remittances to Mexico, the region’s biggest recipient, are projected to increase by 9.7%. The growth of remittances is expected to be 45% in Nicaragua, 9% in Guatemala, and 7.5% in Colombia. The average cost of sending $200 to the region was 6.1% in the second quarter of 2023. Growth in remittances to the region is expected to slow to 4.4% in 2024.

Remittances to the Middle East and North Africa are expected to decline again in 2023, falling by about 5.3% to $61 billion in 2023, driven mainly by a sharp drop in flows to Egypt. For Egypt, a significant gap between the official exchange rate and the parallel market likely caused a large part of remittances to be unrecorded. Meanwhile, remittance flows to the Maghreb countries experienced a gain, offsetting some of the decline. Sending $200 to the region cost 5.9% on average in the second quarter of 2023. In 2024, remittance flows are projected to recover to a 2.1% gain based on an expected turnaround in flows to Egypt.

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Remittance flows to South Asia are estimated to have grown 7.2% in 2023 to reach $189 billion, tapering off from the over 12% increase in 2022. The increase is attributable entirely to remittance flows to India, which are expected to beat previous forecasts by $14 billion and reach $125 billion in 2023. The key drivers of remittance growth in 2023 are a historically tight labor market in the United States, high employment growth in Europe reflecting extensive leveraging of worker retention programs, and a dampening of inflation in high-income countries. Sending $200 to the region cost 4.3% on average in the second quarter of 2023. In 2024, growth in remittance flows is expected to fall to 5% due to projected weaker economic growth in the United States, the Euro Area, and GCC countries, major hosts of migrant workers from the region.

Remittance flows to Sub-Saharan Africa are expected to have increased by about 1.9% in 2023 to $54 billion, driven by strong remittance growth in Mozambique (48.5%), Rwanda (16.8%), and Ethiopia (16%). Remittances to Nigeria, accounting for 38% of remittance flows to the region, grew by about 2%, while two other major recipients, Ghana and Kenya, posted estimated gains of 5.6% and 3.8%, respectively. Fixed exchange rates and capital controls are diverting remittances to the region from official to unofficial channels. In 2024, remittance flows to the region are projected to increase by 2.5%. Sending $200 to the region cost 7.9% on average in the second quarter of 2023.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Egyptian Healthtech Chefaa Secures $5.25 Million Investment for Saudi Expansion

Egyptian healthtech Chefaa recently secured a $5.25 million investment in a funding round co-led by Newtown Partners (South Africa) and Global Brain (Japan). Other notable investors include GMS Capital Partners LLC (US), Verod-Kepple Africa Ventures (Nigeria), and M3, Inc. (Japan). Founded in 2017 by Rasha Rady and Doaa Aref, Chefaa is a female-led e-pharmacy platform that aims to provide an end-to-end healthcare experience.

The primary purpose of this substantial investment is to fuel Chefaa’s expansion, particularly in Saudi Arabia, where it has recently launched operations in eight cities. The funds will be utilized to strengthen its presence in the kingdom and scale various models designed to digitize the healthcare supply chain. The investment is strategic, aligning with Chefaa’s mission of leading the safe digital transformation of healthcare through a patient-centric and comprehensive approach.

Why The Investors Invested

Investors committed a significant amount to Chefaa based on its demonstrated success and growth in the challenging healthcare sector. The reasons for this investment are rooted in Chefaa’s ability to improve healthcare accessibility in Egypt and its successful entry into the Saudi market. Investors expressed confidence in Chefaa’s innovative strategies, citing its commitment to innovation, data leverage, and impactful partnerships with major pharmaceutical players.

Newtown Partners, represented by Managing Partner Llew Claasen, emphasized their conviction in the capabilities of Chefaa’s founders and the massive opportunity to improve healthcare access in the Gulf Cooperation Council (GCC) and Sub-Saharan Africa (SSA) through digitization.

Global Brain Corporation’s Director of Investment Group, Hiroto Sorita, acknowledged Chefaa’s growth in a challenging business climate, affirming the company’s position as a leading patient-centric service provider in the region. GMS Capital Partners LLC CEO Yezan Haddadin highlighted Chefaa’s commitment to innovation and its impact on reshaping the future of healthcare delivery in the region.

Verod-Kepple Africa Ventures Partner Ryosuke Yamawaki expressed the firm’s belief in Chefaa’s unique position to transform the retail pharmaceutical supply chain in Africa, underscoring its potential to become a critical business infrastructure in the broader Gulf region.

A Look at Chefaa

Founded in 2017 by Rasha Rady and Doaa Aref, Chefaa is an Egyptian healthtech startup specializing in e-pharmacy. The platform operates as a patient-centric pharmacy benefits platform, offering an end-to-end healthcare experience. Chefaa recently expanded its operations into Saudi Arabia, operating in eight cities.

Chefaa’s mission is to lead the safe digital transformation of healthcare by prioritizing market needs, overcoming continuous challenges, and designing new services and features aligned with its vision and mission. The startup has garnered investor confidence through its impactful strategies, commitment to innovation, and measured impact on healthcare accessibility. CEO Doaa Aref expressed gratitude for investor support, emphasizing their shared passion and belief in Chefaa’s vision and mission.

Julaya

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.  As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

Ghana’s Koa Secures $15M in Series B Funding to Transform Cocoa Industry Through Upcycling

Swiss-Ghanaian start-up Koa secured a substantial equity investment of US$15 million in its recent Series B funding round. The Land Degradation Neutrality (LDN) Fund from Mirova, along with the Regenerative Growth Fund 1 managed by Zebra Impact and Mirabaud, led the round with a notable US$9 million investment. The remaining funds were contributed by various new investors, complemented by continued support from existing shareholders, including Haltra, who led Koa’s Series A equity round in 2021.

The injection of funds is earmarked for scaling up Koa’s innovative cocoa upcycling strategy. This strategy involves leveraging a newly inaugurated cocoa fruit factory in Ghana to increase production tenfold, extending cocoa fruit upcycling, and promoting regenerative and climate-smart agricultural practices. Koa aims to share its upcycling technologies with an additional 10,000 cocoa smallholders, addressing the challenges of food waste and fostering sustainability within the cocoa industry.

Why The Investors Invested

The primary drivers behind the investors’ decision to commit significant funds to Koa are rooted in the transformative impact of the startup’s operations and its alignment with sustainable finance goals:

Mirova’s LDN Fund sees Koa as a catalyst for sustainable and fair economic development in emerging countries. The LDN Fund aims to address substantial investment needs in such regions, and Koa’s initiatives, reducing food waste and providing additional income to local producers, resonate with this ambition.

The Regenerative Growth Fund 1, managed by Zebra Impact and Mirabaud, focuses on investing in nature tech solutions. Recognizing the challenges posed by nature loss and climate change, the fund sees Koa as a strategic player in transforming the cocoa value chain, aligning with their broader goal of supporting innovative solutions to global environmental challenges.

A Look at Koa

Founded in 2017, Koa has emerged as a trailblazer in the cocoa industry, particularly in West Africa. The startup, with its Swiss-Ghanaian roots, has unlocked a new value chain by innovatively upcycling cocoa fruit, notably the previously discarded cocoa pulp. Collaborating with cocoa smallholders in Ghana, Koa simultaneously reduces on-farm food waste, generates additional income for farmers, and introduces unique ingredients to the food and beverage industry.

Factory Inauguration and Strategic Expansion: The recent inauguration of Koa’s new cocoa fruit factory in Ghana signifies a pivotal moment for the company. This facility serves as the cornerstone for scaling up production, cooperating with an additional 10,000 cocoa farmers, and intensifying regenerative agriculture practices. The Series B funding is crucial for Koa to facilitate these expansions, develop more cocoa fruit products, and broaden its marketing and distribution efforts.

Koa’s strategic expansion revolves around promoting sustainability in the cocoa value chain. By focusing on regenerative agriculture, the startup aims to enhance the resilience of cocoa farms, simultaneously addressing issues of soil fertility deterioration and the high carbon footprint associated with traditional cocoa farming in West Africa.

Koa’s endeavors align with broader industry trends, where sustainability in chocolate and cocoa ingredients is becoming increasingly prominent. The upcycling trend, rescuing ingredients that would otherwise go to waste, is a key aspect of Koa’s approach. Beyond cocoa, the company’s initiatives contribute to reducing waste in food value chains, addressing the global imperative for sustainable resource use in the production of food and beverage products.

Julaya

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.  As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

End the Mining-Only Mindset: How Africa Can Benefit from its Critical Minerals

By NJ Ayuk

To meet their green agendas, the European Union, United States, and China are engaged in the modern-day equivalent of a gold rush. This time, though, fortune seekers aren’t panning for shiny nuggets in Canada, America, or Australia. Instead, all eyes are on the critical minerals of Africa — cobalt, graphite, lithium, and others — raw materials essential to the production of clean technology, including electric vehicles (EV).

To say that Africa is generously endowed in this regard seems almost like an understatement. Africa holds more than half of the world’s reserves of cobalt, 46% of its manganese, and 21% of its graphite, all used in EV batteries, and about a quarter of its bauxite, which is required for solar photovoltaic technologies. Beyond reserves, mining and production are already in full swing in a number of countries: Nearly 70% of all cobalt produced globally comes from the Democratic Republic of Congo (DRC) and that country is tied with Peru as number two behind Chile in the mining of copper, a key component in electric wiring. Lithium, which has applications in everything from EV batteries to the lubricants that help wind turbines spin, is also being mined in the DRC, as well as in Zimbabwe and Namibia, while Ghana and Mali have lithium deposits that aren’t being exploited yet. Namibia is also the world’s second-largest producer of uranium, which is used in nuclear energy.

Given the urgency of the energy transition, it’s no surprise that the market for critical minerals and rare earth elements (a group of 17 light and heavy metals and alloys integral to the performance and efficiency of motors and turbines; there are 100 rare earth element deposit sites in Africa) is strong and growing. For example, the International Energy Agency (IEA) predicts that as the world moves away from fossil fuels manufacturers of clean energy technologies will require exponentially more critical minerals than they do today. Specifically, the IEA says that by 2040 demand for lithium will be more than 40 times what it is now; over the same period, the need for graphite and cobalt will be 20-25 times higher. As far as copper, the expected expansion of the electric grid over the next 17 years means demand will likely double.

In short, opportunity abounds for Africa, especially considering the shortage of critical minerals nearly everywhere else — if we can only harness it.

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This is a particularly timely topic as the 2023 United Nations Climate Change Conference (COP28) wraps up and voices around the globe continue to weigh in on what Africa should do (or not do) with its oil and gas.

If we’re going to be honest, we must admit that we don’t always have the best track record when it comes to turning resource wealth into actual wealth for our people. But I believe we can break away from that pattern.

Out of our hands

For too long, for lack of will and domestic policy, we’ve allowed our raw materials, including oil and natural gas, to be exported, meaning we’ve had no hand in the processes that happen next or the sale of finished goods.

As a result, we’ve missed out on the job creation, industrialization, and economic diversification that downstream development represents, not to mention the money that comes with it: It’s just an economic fact of life that processed materials command a premium price compared to raw materials.

Consider the DRC’s massive cobalt and copper mine, Tenke Fungurume, which has been in production since 2009 and is projected to have 32 years’ worth of reserves.

China Molybdenum Co. (CMOC), the world’s largest cobalt producer, owns 80% of the mine, with Gecamines, DCR’s state-owned mining firm, holding the remaining 20% stake.

As if controlling the mine’s output — some 125,387 tonnes of copper and 10,465 tonnes of cobalt in the first half of 2022 alone — wasn’t enough, CMOC also controls 72% of the refining capacity for the mine’s output. But CMOC doesn’t refine those minerals in Africa; instead, they transport unprocessed minerals to ports in Durban, South Africa, and Dar-es-Salaam, Tanzania, for overseas export.

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That’s a lot of potential revenue — a lot of potential, period — we’ve let leave our shores.

To take full advantage of the critical minerals beneath our feet, we must break free from our “mining-only” mindset. The value chain doesn’t have to stop with extraction. 

Yes, I understand the argument that minerals should be manufactured into products closer to where they will be used, and that Africa lacks, for example, both the manufacturing capacity to turn cobalt into EV batteries, and the market for EV cars. (Young African entrepreneurs have taken aim at this deficit, as you’ll see in a moment.).

But with sufficient investment and collaboration, we can build capabilities and catalyze the market.

The good news is that we’re seeing progress in that direction.

In April 2022, the DRC and Zambia signed a cooperation agreement to make EV batteries in Katanga province, the mineral-rich region where Tenke Fungurume is located. That was followed in December by the U.S. entering into a trilateral memorandum of understanding (MOU) with those countries to develop a complete value chain around EV batteries, “from extraction to the assembly line. To move the deal along, earlier this year, the African Export-Import Bank (Afreximbank) and the United Nations Economic Commission for Africa (UNECA) are helping the DRC and Zambia form special economic zones (SEZ) for the production of battery precursors, batteries, and EVs. According to the United Nations, “the Afreximbank and UNECA will play a central facilitating role, acting as the project’s financial and technical partners respectively. The two institutions will lead the establishment of an Operating Company (OpCo) in consortium with investors (both public and private) from DRC and Zambia, as well as international investors such as Afreximbank’s impact fund subsidiary, the Fund for Export Development in Africa (FEDA).”

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Both the DRC and Zambia, along with Mozambique, Namibia, and Tanzania, attended the recent Minerals Security Partnership (MSP) meeting to discuss how to improve mineral supply chains and ensure that countries can benefit economically from their critical mineral resources. The U.S., U.K., Australia, Canada, France, and Japan were among the MSP partners who participated in the event. The goals of the MSP are to attract public and private investment, increase transparency, and promote Environmental, Social, and Governance (ESG) standards in critical mineral supply chains.

In addition to Toyota setting up shop in Durban, South Africa, to assembly hybrid EVs from “semi-knocked down” imported vehicles and Uganda’s Kira Motors converting internal combustion engine-powered buses into EVs, a small industry of EV motorcycle manufacturers has cropped up in Rwanda, Nigeria, Uganda, Kenya, and South Africa, potentially accelerating the growth of a much-needed domestic market and circumventing the need for the expensive, grid-scale charging infrastructure four-wheeled vehicles require. These companies are building EV motorcycles from the ground up and subbing EV motors for conventional ones in existing bikes. As Dr. Marit Kitaw, interim director of the African Minerals Development Centre (AMDC), noted, this is evidence that “the continent’s technical and manufacturing capabilities can be scaled up with supportive policies, skill-building programs, infrastructure development, and a favorable investment climate.”

Speaking of the AMDC, the organization, which the African Union established in 2013, has developed the African Green Minerals Strategy (AGMS) to help African nations make the most of their extractive resources, participate more fully — and do it sustainably. According to Dr. Kitaw, the objectives of the AGMS are to accelerate local manufacturing of inputs for mining and processing strategic green minerals; build more processing facilities on the continent, which would enable African countries to capture a greater share of the value chain; and expand Africa’s technical expertise and to increase resources for research, development, and innovation.

This is what progress looks like.

Work to do

Still, obstacles remain. And we have to proceed with caution.

While agreements like those between DRC and Zambia are a start, our nations must collaborate more closely, especially when it comes to issues like establishing a common external tariff (CET). That would serve to avoid a patchwork approach to imports and make it easier for African countries to do business across borders.

We have to build up our energy infrastructure so we can support processing and refining.

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We have to ensure our governments are stable and our streets are not pocked with violence, which turn potential investors away in droves.

We must avoid the human rights violations that have plagued other extractive industries in Africa, ensuring workplaces are safe; indigenous people are not at risk; workers’ living conditions meet universally accepted standards; the physical environment is protected; and children are not put to work when they should be in school.  

As the world pivots to a low-carbon future, Africa has a chance to change where we sit on the critical minerals value chain and, in turn, to change our destiny. But there’s tremendous work to do, and it has to be done right. With the right partners and support, within our continent and worldwide, it will be.

NJ Ayuk, Executive Chairman, African Energy Chamber (www.EnergyChamber.org)

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Stakeholders Chart Sustainable Pathway to Universal Health Coverage in Nigeria

Professor Mohammed Ali Pate

The World Health Organization (WHO) in collaboration with its partners is supporting the government of Nigeria in finding evidence-based and sustainable solutions  towards the attainment of Universal Health Coverage (UHC) by 2030. 

This is to accelerate the ongoing effort of the government to ensure that all Nigerians irrespective of age, status, and geographic location, have access to the full range of quality health services they need, when and where they need them, without financial hardship.

Consequently, December 12 every year has been designated by the WHO for governments to renew their commitment while providing the unique opportunity for advocates to raise their voices in demand for efficient investments in health towards UHC. 

Addressing Journalists after the UHC commemorative walk in Abuja, the Coordinating Minister for Health and Social Welfare, Professor Mohammed Ali Pate said the President Tinubu-led administration is determined to improve the health of Nigerians through positive health transformation that will lead to the attainment of UHC. 

Professor Mohammed Ali Pate
Professor Mohammed Ali Pate

The 3.5-kilometre March tagged “Walk for Health” was part of the activities embarked upon to commemorate the Universal Health Coverage (UHC) Day in Abuja on 12 December 2023. 

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The Minister said that Health is a fundamental human right and the Federal Government through the Federal Ministry of Health remains committed to delivering equitable and optimal health outcomes for all Nigerians.

He noted that the National Health Insurance Authority had made it mandatory for everyone to be enrolled and access a package of essential health services free at the point of use. 

“This will bring about investment to expand the quality of healthcare services that Nigerians access through the primary healthcare systems and hospitals. We expect that states will complement the effort of the Federal Government to guarantee the participation of every stakeholder, to ensure that the society is healthier.

Good health is core to harnessing Nigeria’s greatest asset, its human capital, which is at the heart of our relentless efforts to ensure that all Nigerians are on the path to having access to improved quality health services without financial hardship” he said.
Professor Pate further advised Nigerians to take care of their health by engaging in exercises to keep fit and eat good food.

In his remark, the WHO Country Representative, Dr Walter Kazadi Mulombo said the walk was to create awareness and remind everyone that the world was lagging in providing Universal Health Coverage to the population. He expressed WHO’s commitment alongside other UN agencies and partners towards accelerating health for all, as this is the time for action.

 “WHO alongside other partners will support the country in finding solutions to most of its health challenges. It is an opportunity for us to rethink the way we do our business and associate towards universal coverage for everyone.

The new investment initiative provides the hope that will change the course of health in Nigeria because Nigeria matters.  If we can do it in Nigeria, it would influence Africa and also have a ripple effect globally,” he said.

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Other participants at the walk included the Minister of State for Health, Dr Tunji Alausa, the Permanent Secretary of the Ministry of Health, heads of agencies, CSOs, media and partners in the health sector.  

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Afreximbank Calls for Inclusive and Just Energy Actions

Prof Benedict Oramah, president Afriexim bank

Afreximbank Calls for Inclusive and Just Energy Actions The frican Export-Import Bank (“Afreximbank”) recently concluded its participation at COP28 in Dubai, the United Arab Emirates, where the Bank reiterated its commitment to advancing the continent’s climate goals and sustainable development agenda.

Against the backdrop of the official COP28 theme Transforming climate finance, by delivering on old promises and setting the framework for a new deal on finance; Putting nature, people, lives, and livelihoods at the heart of climate action“, Afreximbank worked to build on the progress made at COP27 in Egypt and the African Climate Summit 2023 in Kenya.

At COP27, Afreximbank spearheaded calls for Africa to assert its needs, challenges, and outlook, and most significantly to drive the continent’s position on a just energy transition and sustainable development. Similarly, at COP28, Afreximbank’s position aligned with the broader agenda of the African Union on Climate Change and Africa’s development as outlined in the Nairobi 2023 declaration during the Africa Climate Summit 2023.

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The Bank’s approach also incorporated elements from COP27, addressing the broader issues on financing climate interventions for climate adaptation and mitigation, loss and damage compensation for African states affected by climate-related hazards and potential challenges that  African states will face as they try to access the Loss and Damage Fund announced during COP28’s opening session.

Prof Benedict Oramah, president Afriexim bank
Prof Benedict Oramah, president Afriexim bank

Professor Benedict Oramah, President and Chairman, Afreximbank, said, “Amidst the pressing climate challenges faced by Africa, Afreximbank continues to advocate for an inclusive and just energy transition for Africa, in collaboration with the African Union, member states and partners, that will forge a new, green industrialized economy, advance the continent’s climate goals and development through strategic initiatives and expediting of the AfCFTA implementation. This will serve as a catalyst for economic development and a resilient future for Africa.
Led by its Executive Management, Afreximbank made substantial progress in critical areas.

Support the advancement of the goals articulated under the African Leaders Declaration on Climate Change in Nairobi 2023

At COP28, Afreximbank championed a robust pan-African narrative derived from the agreed Nairobi declaration at the inaugural African Climate Summit in Nairobi. Afreximbank supported interventions addressing the multidimensional impacts of climate change on the continent and promoting sustainable development in Africa.  In line with the Paris Agreement emission reduction goals, Afreximbank showcased African leaders’ aspirations to reduce emissions while actively contributing to the implementation of innovative solutions designed to address the existing climate finance in the continent. The Bank further advocated for the swift operationalization of the Loss and Damage Fund agreed upon at COP27, designed to provide financial assistance to countries that are most vulnerable and impacted by climate change, especially in Africa.

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Fostering and promoting inclusive partnerships for renewable energy and a just energy transition for sustainable development

Aligned with the AU Agenda 2063, Afreximbank’s commitment to financing and supporting renewable energy projects was sounded at COP28.  Specific focus was given to interventions seeking to increase capital to support the optimisation of Africa’s vast renewable energy potential and other initiatives buttressing the development of sustainable energy systems that guarantee increased energy access for Africans as an important catalyst for economic development. Indeed, Afreximbank used the COP28 opportunity to underscore the importance of planning renewable energy ventures on the continent to ensure their readiness for investment from private capital.
Afreximbank also urged for increased collaboration by public and private sector actors for a globally inclusive energy transition model. The Bank solidified its commitment to supporting Africa’s just-transition plans, taking into consideration the continent’s development priorities, mitigation of transition costs, timelines, and the criticality of its natural resources in financing development programmes designed to address existential challenges including improved energy access for its people.
Moreover, Afreximbank discussed the opportunity presented by Africa’s great reserves of critical energy transition materials. The Bank highlighted its collaboration with UNECA, alongside other partners, in progressing the DRC-Zambia Battery Value Chain Special Economic Zones, aimed at locally beneficiating the critical minerals necessary for the global energy transition.

Accelerating the Implementation of the AfCFTA for a Greener Africa

At COP28, Afreximbank, among other African institutions, was at the forefront of championing the AfCFTA, showcasing its ability to drive local industry growth and spearhead a continent-wide transition to net-zero emissions. The Bank prioritizes the mobilization of resources to foster collaborative efforts expediting AfCFTA implementation which will promote the localization of regional value chains, critical to reducing Africa’s carbon emissions. Notably, the Bank’s groundbreaking initiative, the AfCFTA Adjustment Fund, aims to address short-term disruptions and ensure retooling and reskilling within the private sector for sustainable development in Africa. At a side event, the Bank and other partners launched the SAFE Initiative, where its representatives made the case for the expansion and acceleration of the continent’s burgeoning EV industrial infrastructure.
Afreximbank engaged in crucial dialogues at COP28 and used the platform to advocate for climate action in Africa – highlighting at all times the AfCFTA’s pivotal role as an instrumental variable in achieving climate goals. Conference delegates heard from Afreximbank’s trade policy experts on the importance of a trade approach coordinated on a continental basis.

Deployment of innovative climate finance solutions

Afreximbank’s commitment to exploring and deploying innovative climate finance solutions was demonstrated at COP28. The Bank highlighted its climate-related initiatives such as the Climate Adaptation Finance Facility, early-stage project preparation facility and risk bearing instruments like guarantees, tailored for the Bank’s member states. Afreximbank aims to deploy initiatives designed to address the challenges inhibiting access to climate finance, and the need for increased private and public sector collaboration in financing of climate interventions across the continent.

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The Bank also articulated the urgency of channelling climate finance to Africa and the importance of crowding in private sector capital to climate-relevant projects, communicating to a broader international audience the imperative that, as well as a radical increase in the quantity of financing directed to continental ventures, the structure of finance flows to Africa must be revised to meet the demands of this unprecedented test.

Shaping a well-regulated carbon market for Africa’s future

Afreximbank acknowledges its position as a key player in shaping a well-regulated carbon market in Africa by 2030. With initiatives like the African Carbon Markets Initiative (ACMI), the Bank contributes to transparent and innovative solutions, aligning with COP28’s transformative climate finance theme. Afreximbank is committed to the implementation of Biodiversity Credits in Africa and the diversification of the continent’s participation in carbon credit markets, which could be converted into a critical funding tool to bridge Africa’s Infrastructure Finance Gap. 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry