Blog - Afrikan Heroes

Orange Middle East and Africa Partners Spotify to Promote African Talents

November 20, 2023

Brelotte Ba, Deputy CEO of Orange Middle East and Africa

With a worldwide community of over 551 million monthly active listeners, including 220 million subscribers, Spotify provides a wide range of African and international artists with a library including over 82 million tracks. Thus from today, in the Democratic Republic of Congo, Madagascar, and Mali and very soon in Guinea, millions of mobile users will enjoy music for free on Spotify platform when subscribing to an Orange mobile offer; The new partnership between Orange Middle East & Africa (www.Orange.com) and Spotify will bring a new music journey to mobile users, thanks to a vast music catalog and a user-friendly interface.

Orange, operating in 18 countries across Africa and the Middle East, has recently partnered with Spotify, the world’s leading music streaming platform, to offer all mobile customers an exciting music experience. By offering complimentary data bonuses to access to Spotify’s service, Orange strengthens its position as an all-in-one entertainment service provider.

With a worldwide community of over 551 million monthly active listeners, including 220 million subscribers, Spotify provides a wide range of African and international artists with a library including over 82 million tracks. Orange customers can now enjoy this personalized and enriching musical experience by creating for instance their own playlists.

Jocelyne Muhutu-Remy, Managing Director for Spotify in Sub-Saharan Africa, said “We are excited to partner with Orange Middle East & Africa to offer data bonuses to our customers in Democratic Republic of Congo, Guinea, Madagascar, and Mali, allowing them to enjoy our vast music library of over 100 million songs, without worrying about data. We are aware that data costs continue to be a hindrance for people who would like to stream music, that’s why we are actively working at Spotify SSA on partnerships like this one.”

Brelotte Ba, Deputy CEO of Orange Middle East and Africa, said: “We are pleased to partner with Spotify to bring a new experience to our customers in Africa and the Middle East. As a multi-service operator on the continent, we want to provide our customers with easier access to the rich musical culture in Africa and to the promotion of local talents. The deployment of this service in the countries where we are present will greatly facilitate access to an incomparable musical experience for all communities and thus contribute to the acceleration of digital inclusion on the continent.”

Music stands as the primary source of entertainment across the African continent. The vast community of Orange mobile users in several countries will enable Spotify to promote local talents and introduce them to a larger audience. This strategic partnership will constitute for Orange a substantial progression towards enhancing the musical experience across the African landscape, fostering a deeper connection to cultural and entertainment elements. Orange is exploring opportunities to expand the offer in other countries

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

South Africa Earmarks $12.5 billion to Expand National Grid

South Africa’s national energy firm, Eskom will use a portion of $12.5-billion in multilateral loans to deliver power to areas where the grid is overloaded.

Eskom will use a portion of US$12.5-billion (R229-billion) in multilateral loans to deliver power to areas where the grid is overloaded and stymying the transition to renewable sources, according to electricity minister Kgosientsho Ramokgopa.

Expanding the nation’s transmission grid will significantly contribute to stopping power cuts and is crucial to bringing renewable projects online, Ramokgopa said Sunday.

“We know now that the transmission capacity has been exhausted in those areas,” he said in a media briefing. “And that undermines our ability to connect the renewable energy projects. This pool of money will help us to access that.”

We know now that the transmission capacity has been exhausted in those areas

South Africa needs an estimated R390-billion to strengthen its transmission capacity and connect renewable energy projects in parts of the Northern, Eastern and Western Cape to the national grid, the minister said.

Eskom’s performance has steadily worsened in recent years, leading President Cyril Ramaphosa to declare an energy crisis, step up the purchase of power from private producers and appoint an electricity minister for the first time in March.

Due to transmission constraints, many renewable energy firms have included options to raise money for grid expansion into their business models, Ramokgopa said in response to questions. “There is an insatiable appetite,” he 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

Could Cape Town become Africa’s Silicon Valley?

By Daniel Novitzkas

Last month, the City of Cape Town hosted an innovation summit aimed at curating discussions about how the city could be transformed into a thriving start-up ecosystem – how it could become the Silicon Valley of Africa.

Some may argue that this will remain a pipe dream for many years to come, as South Africa continues to lag the rest of the world in its capacity to adopt the latest technological advancements.

Others would argue that this perceived lag actually opens up a broader range of opportunities for South African businesses. These conversations aim to focus on the fact that we could use this lag as an opportunity to expand the horizon of possibilities available to us, as we aim to build better systems, improve productivity and increase long-term profits.

There are three fundamental skills every founder should cultivate when building a business in South Africa

Drawing inspiration from the Silicon Valley model, where innovation thrives and entrepreneurs turn ground-breaking ideas into billion-dollar enterprises, South Africa’s start-up ecosystem holds great promise. A generation of young South Africans, including myself, embarked on an educational tour of Silicon Valley just over a decade ago. The experience offered a glimpse of Google’s cutting-edge innovations years before they hit the market. It left us inspired, because it proved that passionate young minds don’t need vast resources, experience or a huge network to create disruptive start-ups. They merely needed problems to solve, and South Africa has no shortage of those.

Today South Africa is more than just an observer; it’s a participant in the global tech arena. Thousands of innovators are determined to grow this country and its cities into the tech powerhouses of tomorrow. We’re not just dreaming of Silicon Valley’s success; we’re forging our own path here in Southern Africa, a journey that will offer a beacon of hope for the rest of Africa as well.

Ecosystem

To ensure that this vision materialises sustainably, we must establish a well-developed start-up ecosystem that supports continuous technological development, job creation and constant innovation. This will remain a critical undertaking if we want to drive growth and investment into our economy and people.

There are several challenges that keep South African entrepreneurs awake at night. To build a thriving business or start-up in South Africa, one must embrace a level of responsibility and commitment that surpasses even the highest expectations of a traditional founder or CEO.

That said, there are three fundamental skills every founder should cultivate when building a business in South Africa: a problem-solving approach, a customer-centric approach and effective storytelling can offer invaluable assets to any South African start-up.

Effective problem solving is the lifeblood of start-ups, particularly in South Africa. Launching and growing a start-up is often akin to piecing together a complex puzzle with numerous pathways to the desired outcome, yet with countless opportunities to veer off course. Founders must come to terms with the reality that there is no definitive manual or mentor to guide them. Instead, they must absorb knowledge from diverse sources, experiment and adapt based on feedback loops and success indicators.

The challenges facing South African start-ups are distinct from those in other markets and include navigating intricate regulatory environments and meeting specific market needs. Problem solving is not just about finding solutions, it’s also about discerning the right problems to solve. In a diverse nation like South Africa, understanding the requirements of different communities, urban and rural, is paramount. The ability to adapt and pivot in response to unforeseen obstacles distinguishes successful founders.

A customer-centric approach is equally essential. While entrepreneurial literature frequently underscores the importance of customer obsession, it’s a skill that may not come naturally to all founders. It’s easy to get side-tracked by personal aspirations when building a business. However, the most successful ventures stem from an unwavering commitment to meeting the needs and desires of customers. Founders who excel at extracting insights from their clients and persistently strive to meet their demands will invariably grow their businesses.

South Africa is a nation with diverse consumer preferences and needs, from bustling urban centres to rural communities. Understanding what your customers truly value is a challenging yet essential task. This goes beyond offering products or services that address their needs; it entails nurturing deep trust and loyalty.

The dream of turning Cape Town into the Silicon Valley of Africa is not far-fetched

Effective storytelling is an often-understated skill that every founder must acquire. Whether it’s recruiting top talent, securing investors or convincing customers to invest in a product or service that has yet fully to materialise, founders are essentially painting a vivid picture of the future and the possibilities their vision offers.

In South Africa, where the entrepreneurial landscape is still evolving, effective storytelling can be the bridge that connects your start-up’s vision with potential stakeholders. It’s about creating a narrative that captures the essence of your mission, the impact you aim to make and the value you bring to the market.

Honing these three essential skills – problem solving, customer centricity and storytelling – provides founders with a robust foundation on which to build. The journey can be arduous, but the most successful founders are those who strive persistently to master these skills.

read all The Caribbean Community (CARICOM) Central Banks Adopt Pan-African Payment and Settlement System (PAPSS)

The dream of turning Cape Town into the Silicon Valley of Africa is not far-fetched. South Africa, with its unique blend of challenges and opportunities, has the potential to nurture a vibrant and thriving start-up ecosystem.

Daniel Novitzkas, is CEO at Specno

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

African Startups Continue Acquisition Spree in Expansion Drive Amid Funding Drought

In a dynamic landscape where African startups navigate the challenges of funding scarcity, two notable acquisitions have recently unfolded, underscoring the resilience and ambition of the continent’s entrepreneurial spirit.

Neighbourgood’s Merger with Local Knowledge:

South African proptech startup Neighbourgood has made headlines with its acquisition of Cape Town-based traveltech startup Local Knowledge in a cash and equity deal valued at $1.5 million. Describing the move as more than a merger, Neighbourgood envisions a union of two visionary missions to redefine urban living and travel experiences.

The acquisition coincides with the launch of a viral tourism ad featuring comedian Trevor Noah, in partnership with the Tourism Business Council of South Africa (TBCSA). With a bold target of attracting 21 million visitors by 2035, TBCSA CEO Tshifhiwa Tshivhengwa aims to build on last year’s 5.8 million inbound international tourists.

Neighbourgood, established in 2020, currently provides around 1000 living and workspaces for tourists, predominantly in South Africa, and plans to deploy an additional 650 next year. Leveraging Local Knowledge’s expertise in connecting travelers with local communities, Neighbourgood aims to create The Experience Vertical — a platform offering personalized suggestions and exclusive insights into city life, curated by knowledgeable locals.

Murray Clark, Neighbourgood CEO, sees this acquisition as a significant milestone in the travel and hospitality industry, envisioning a future where travel is about building friendships and communities. Neighbourgood’s ambitious plans extend beyond Cape Town, with an expansion into California slated for next year.

Chimoney’s Strategic Move in Fintech:

On another front, Nigerian fintech startup Chimoney has quietly sealed an undisclosed deal to acquire Scrim App, a social payment app catering to Gen Z. Founded by Pleasant Balogun two years ago, Scrim App enables users to send payments via social handles and direct messages.

Uchi Uchibeke, Chimoney CEO, commends the brilliance behind Scrim’s concept and expresses confidence in its growth potential. The Scrim App is set to be relaunched in December 2023, powered by Chimoney’s API and Wallet as a Service (WaaS).

The relaunched Scrim App promises enhanced features, including earning opportunities, shopping with Scrim wallet balance, and global real-time payments. Users will have flexible withdrawal options, including transfers to bank accounts in over 100 countries, mobile money wallets in 17 countries, and engaging in cryptocurrencies across seven blockchains.

Uchibeke emphasizes the seamless integration of Scrim with Chimoney’s API, ensuring greater stability and reliability while preserving the Scrim name and brand. The collaboration is positioned to elevate Scrim to new heights, offering users a diverse range of financial options.

These acquisitions highlight the strategic efforts of African startups to expand their reach, diversify their offerings, and overcome funding challenges, signaling a promising trajectory for the continent’s entrepreneurial ecosystem. As these ventures unfold, the African startup landscape continues to be a focal point for innovation and growth.

Lessons Learned as Africa-focused FinTech Zazuu Shuts Down After Raising $2M

Charles Rapulu Udoh

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

After a Major Exit in 2021, Investors Plot a Comeback in Morocco’s Cash Plus

In a strategic move signaling a comeback to the Moroccan financial landscape, investment fund Mediterrania Capital Partners, in collaboration with a consortium of investors, is eyeing a return to the capital of Cash Plus, a prominent payment institution in Morocco.

Mediterrania Capital Partners, known for its focus on SMEs and medium-sized enterprises in Africa, had previously entered the capital of Cash Plus in 2014, acquiring a significant 49% stake. However, the private equity firm exited its investment in February 2021. Now, it aims to re-establish its presence by jointly acquiring a majority stake in Cash Plus, according to an announcement made by the Competition Council of Morocco on Thursday, November 16.

The proposed acquisition involves a consortium of notable entities, including the International Finance Corporation (IFC), the FMO, and five other private entities. The specific share allocations for each participant have not been disclosed. The formation of a new company, MC IV Money, has been confirmed for the sole purpose of facilitating this investment in Cash Plus.

Mediterrania’s return to Cash Plus had been under speculation since early November, and the recent announcement confirms their intention to rejoin the shareholding structure. The private equity firm had previously sold its shares in Cash Plus in February 2021, following which it had hinted at potential reinvestment.

This investment initiative aligns with Mediterrania’s recent activities, including a €15 million investment from its latest fund, MC IV Fund. The fund has already seen successful investments in pharmaceutical company Laprophan and, notably, in Cash Plus. These moves underscore Mediterrania’s commitment to bolstering the financial landscape in Morocco.

Cash Plus, founded in 2004 and currently owned by the Tazi and Amar families, operates as a leading payment institution in Morocco. Offering a range of financial and para-financial services, from money transfer to bill payments, Cash Plus has been a significant player in the local financial market for nearly two decades.

The success of this proposed acquisition could reshape the ownership structure of Cash Plus and potentially enhance its capacity to expand and innovate within the dynamic financial services sector.

Senegalese Agtech Startup Tolbi Raises Funding to Drive AI-Powered Precision Agriculture

Charles Rapulu Udoh

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

South Africa Calls for Balance to Ensure Sustainability of Regular Force Medical Continuation Fund

November 19, 2023

The South African Joint Standing Committee on Defence has called on current South African National Defence Force members to reconsider their resistance to the increase in their contributions to ensure that the Regular Force Medical Continuation Fund (RFMCF) remains viable and sustainable. The committee is concerned that the sustained low contribution model will have dire consequences for members when they retire. The envisioned balance will ensure quality medical services upon retirement.

“While the committee acknowledges that the RFMCF is a private entity, it is important to ensure the viability of the fund because it ensures the wellbeing of members after retirement. The welfare of our members, active or retired, is important,” said Mr Cyril Xaba, the co-Chairperson of the committee.

While the committee welcomed the fund’s improved financial management and governance, it emphasised that its funding model should be reconsidered in the light of the cost of healthcare, which is above inflation in most cases.

The committee also highlighted the consequences of weaknesses within the South African Military Health Service (SAMHS), which directly impacts on the fund’s viability and which has resulted in the increased use of the private sector. A functional SAMHS should be providing quality healthcare to all its members, both active and retired. “We have been emphatic about the need to resolve challenges facing the SAMHS to ensure that it is enabled to provide adequate support to all members and also save the fiscus excessively high private medical costs,” said Mr Mamagase Nchabeleng, the co-Chairperson of the committee.

Meanwhile, the committee unanimously supported the President’s decision to deploy 3 300 South African National Defence Force (SANDF) members for service in cooperation with the South African Police Service (SAPS) to combat crime and maintain and preserve law and order under Operation Prosper. The SANDF deployment is part of the security cluster’s efforts to address the prevailing high level of brazen organised crime and illicit mining.

While the committee supports the deployment, it is concerned that the unfunded mandate will have an impact on the Department of Defence’s baseline budget, especially in light of further budget cuts. Despite this, the committee acknowledged that illegal mining is a serious challenge and requires the active participation of all to defeat it.

The committee further highlighted that the SANDF deployment is a short-term solution and that broader solutions must be developed to deal with this crime.

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

FIFA Secretary General Wins Choiseul Grand Prix Award

Fatma Samoura, FIFA Secretary General has been honoured in recognition of her achievements as Secretary General; Progress in women’s football and development schemes central themes of speech; Vows to continue work against discrimination after stepping down at the end of the year.

Fatma Samoura has received the Choiseul Grand Prix award at a ceremony in Casablanca, Morocco, in recognition of her achievements during more than seven years as FIFA Secretary General.

Appointed in 2016 and the first female, African and Muslim Secretary General in over a century of FIFA history, Ms Samoura has since worked tirelessly alongside President Gianni Infantino to rehabilitate FIFA’s image and increase transparency.

She has also been a staunch advocate for women’s football, and her tenure has seen a major increase in the number of girls and women playing the game as FIFA work towards the goal of 60 million female players in organised football by 2026.

In her acceptance speech, Ms Samoura highlighted the success of the expanded FIFA Women’s World Cup 2023, which saw nearly two million fans attend matches in Australia and Aotearoa New Zealand, and noted the significant impact the tournament would have not only on the women’s game, but also society.

“As my journey with FIFA draws to a close, I have had some time to look back on the last seven-and-a-half years and see just how far we have come. FIFA itself has changed significantly. When I stepped into the role in June 2016, it was basically a toxic brand due to all the corruption scandals. So along with President Infantino, I had to take a leading role in cleaning up the organisation, inside and out. Today FIFA is a more accountable, better governed and more transparent organisation that puts football in the center of its activities, and I am hugely proud to have contributed in some small way to creating that.” said Ms Samoura at the event organised by Institut Choiseul, an independent, non-partisan and non-profit thinktank focused on finding solutions to economic challenges in Africa.

Ms Samoura has also contributed to changing the face of FIFA. Since the founding of the Women’s Football Division in 2016, the FIFA Council now features seven female members, including one FIFA Vice-President, while over 40 percent of FIFA employees are female.

But she has also been a driving force behind development schemes such as the FIFA Football for Schools programme (www.FootballForSchools.FIFA.com), this week attending the launch in Ethiopia as the East African nation became the 102nd of FIFA’s 211 Member Associations (MAs) to join the initiative, which aims to give children around the world skills for life as well as football.

She also highlighted the benefits of the Talent Development Scheme, which provides the most promising young players a pathway to fully exploit their potential, and the FIFA Forward programme, which funds MAs’ football-related development projects and has seen a seven-fold increase in support since 2016.

The FIFA Talent Development Scheme helps raise the standards of national-team football around the world for both men and women. The scheme supports MAs in making the most of the talent available to them with FIFA approved a funding allocation of USD 200 million. FIFA’s ambition is that by 2026, all MAs will have at least one high-performance centre of excellence for players between the ages of 12 and 16.

Ms Samoura was also a driving force behind FIFA’s partnership with Agence Française de Développement (AFD). The partnership has seen projects to mitigate Covid 19 effects, projects on mental health co-financed with the GIZ (the German Development Cooperation), and the Championnes programme. The Championnes programme is an important project that promotes leadership among girls and promotes gender equality in Africa through football.

The most recent co-financed FIFA/AFD initiative– with Play International and Diambars as implementation agencies – is an inclusive football academy programme launched in Djibouti, Malawi and Mauritania.

The benefits of these programmes in Africa can already been seen in recent FIFA tournaments including the FIFA Women’s World Cup™️ which saw an increase to four African teams qualify for the finals, with a record three of them – Morocco, Nigeria and South Africa – reaching the knockout rounds. African nations have also impressed in the FIFA U-17 World Cup™️, currently being held in Indonesia. Three out of the four CAF nations – Morocco, Mali and Senegal – have qualified for the knockout rounds with Morrocco finishing top of their group.

The Football Unites the World campaign, and the wide range of social issues given greater visibility at the FIFA World Cup last year in Qatar and this year’s FIFA Women’s World Cup, such as gender equality and education for all, have all been causes close to Ms Samoura’s heart during her time in office. She said she intends to keep promoting those issues when she steps down as FIFA Secretary General at the end of the year.

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

Algeria named host of fourth Intra-African Trade Fair

Chief Olusegun Obasanjo, former president of the federal republic of Nigeria

Algeria has been selected to host the fourth Intra-African Trade Fair (IATF2025) scheduled to take place in 2025, Chief Olusegun Obasanjo, Chairman of the Advisory Council of the Intra-African Trade Fair and former President of Nigeria, has announced.

Speaking in Cairo during the Presidential Summit of the third Intra-African Trade Fair (IATF2023), Chief Obasanjo said that the selection followed a rigorous review of bids received by the Advisory Council for the hosting of the continental event.

“We congratulate the government and people of Algeria for winning this bid,” he said, adding, “We look forward to converging in Algiers in 2025”.

With the selection, Algeria will become the third country to host the IATF after Egypt hosted the inaugural edition in Cairo in 2018 and the second edition was held in Durban, South Africa, in 2021. The trade fair returned to Cairo for the 2023 edition.

Speaking at the ceremony held today to hand over the IATF flag to the Algerian authorities, President Obasanjo said that the trade fair had established a tradition of each edition being better than the previous one and expressed a strong conviction that Algeria would maintain that tradition.

He said that with the selection of Algeria as host, the job of the IATF2023 Advisory Council was coming to an end, adding, “from tomorrow, it will be IATF2025 Algiers.”

Abdelaziz Benali Cherif, the Algerian Ambassador to Egypt, who received the IATF flag on behalf of the Algerian Government, said that with the new investment law implemented in his country, Algeria had introduced a lot of economic reforms empowering the private sector to become the engine of growth in the economy.

The country was now open for partners to participate in a win-win situation in the economy, he said, adding that all Africans were welcome to become part of the new dynamics.

The ambassador expressed gratitude to the IATF Advisory Council for its decision to award the hosting of the next IATF to Algeria and pledged the country’s commitment to ensuring a successful event.

“IATF2025 in Algiers will be a true platform for networking and collaboration,” he said, adding that participants should use the event to explore new opportunities.

Kanayo Awani, Executive Vice President, Intra-African Trade Bank, Afreximbank, said that it was necessary to start early to prepare for the trade fair as the event entailed a lot of work. The CANEX WKND, normally hosted in the year preceding the IATF, served as a dry run for the IATF, she added.

Wamkele Mene, Secretary-General of the African Continental Free Trade Area Secretariat, noted that many Africans looked forward to participating in IATF and said that was critical to ensure that those Africans who wished to attend were not held back by issues like visa and duty on goods coming into host country temporarily for the trade fair.

Albert Muchanga, African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, also addressed the ceremony and commended Algeria for winning the bid.

Organised by the African Export-Import Bank, in collaboration with the African Union Commission and the African Continental Free Trade Area (AfCFTA) Secretariat, the IATF provides a unique platform for facilitating trade and investment information exchange in support of increased intra-African trade and investment, especially in the context of implementing the AfCFTA. It is Africa’s largest trade and investment event, attracting thousands of exhibitors, visitors and buyers and generating trade and investment deals running into tens of billions of dollars. Attendees include buyers, sellers, importers, exporters, investors, manufacturers, captains of industry, senior government ministers, trade finance and advisory specialists, trade and economic organisations, senior executives from corporates and multinationals and innovative entrepreneurs from across Africa and beyond.

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

Nigeria’s Pricepally Secures $1.3M Seed Funding to Fuel Expansion and Group Buying Revival

Pricepally, a Nigerian online grocery store specializing in fresh produce and packaged food, has successfully secured $1.3 million in seed funding. This funding round was supported by various investors, including Samurai Incubate, a Japanese VC that had also participated in the startup’s 2021 pre-seed round, along with contributions from SOSV, ELEA, Hi2 Global, Chui Ventures, and ex-Unilever executive David Mureithi. Pricepally plans to utilize the funds to expand its operations beyond the three cities it currently serves in Nigeria and to reintroduce group buying, aligning with its commitment to providing affordable food options for consumers.

Pricepally’s business model involves sourcing fresh produce directly from farmers, some of whom are under contract, and obtaining packaged food from manufacturers. The negotiation of prices, combined with short supply chains, allows the startup to maintain affordable supplies. Luther Lawoyin, the CEO, emphasizes the importance of transparency in their operations, stating that the company’s growth and customer retention, with existing buyers contributing over 80% of revenues, are indicative of the value proposition.

The startup, founded in 2019 by Luther Lawoyin, Deepak Bansal, Mosun Lawoyin, and Jummai Abalaka, facilitates same- or next-day delivery through its digital channels, including an app and WhatsApp chatbot. While Pricepally outsources delivery services, it operates a network of fulfillment centers within the cities it serves.

Investors have chosen to inject funds into Pricepally for several compelling reasons. The startup’s commitment to reducing the cost of food, ensuring availability, and maintaining predictable prices aligns with the pressing issue of food insecurity in Nigeria. By eliminating numerous layers of middlemen, Pricepally maintains control over the quality and supply of its products, offering fairer prices to consumers.

Furthermore, the strategic decision to reintroduce group buying is seen as a catalyst for growth. This approach allows retail customers to join forces, unlocking wholesale prices and potentially accelerating Pricepally’s market expansion. The startup’s emphasis on transparency has resulted in steady customer growth and high retention rates, showcasing its ability to address challenges in the Nigerian e-commerce landscape and build trust with consumers.

A Look at Pricepally:

Founded in 2019, Pricepally operates in Nigeria, with its founders being Luther Lawoyin (CEO), Deepak Bansal (CTO), Mosun Lawoyin (CXO), and Jummai Abalaka (COO). The startup focuses on three primary cities but aims to expand its reach with the recent funding. Pricepally’s core mission is to provide affordable, fresh produce and packaged food, sourced directly from farmers and manufacturers.

The startup’s unique selling points include a commitment to transparency, visible in its pricing strategies and supply chain management. By leveraging its sourcing strength and negotiating prices with farmers, Pricepally aims to contribute to solving Nigeria’s significant challenge of food insecurity. With a customer base primarily composed of retail buyers, the startup anticipates accelerated growth through the reintroduction of online group buying and the launch of April, a WhatsApp chatbot targeting the mass market in Nigeria. Rena Yoneyama of Samurai Incubate commended Pricepally’s execution ability, emphasizing the company’s success in navigating the challenges of e-commerce in Nigeria through improved service quality and customer trust.

Senegalese Agtech Startup Tolbi Raises Funding to Drive AI-Powered Precision Agriculture

Charles Rapulu Udoh

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

Lessons Learned as Africa-focused FinTech Zazuu Shuts Down After Raising $2M

November 18, 2023

In a startling turn of events, Zazuu, the Africa-focused remittance aggregator, has announced its closure, sending shockwaves through the African financial technology sector. Founded in 2018 with a mission to empower African immigrants in navigating the intricate landscape of international money transfers, Zazuu managed to secure $2 million in a 2022 funding round. However, despite its valiant efforts, the company has succumbed to the relentless challenges posed by a formidable funding climate.

A Mission Unraveled by Financial Realities

Zazuu’s inception was marked by an admirable commitment to addressing the financial impediments faced by African immigrants, particularly those residing in the U.S. and the U.K. Operating in an environment where traditional financial systems often present formidable obstacles, Zazuu sought to provide transparency and choice in remittance options.

The reality, however, proved harsh as Zazuu grappled with the daunting task of securing growth funding to propel its mission forward. Despite achieving significant milestones such as obtaining regulatory approvals and establishing a diverse portfolio of remittance options, the unforgiving funding landscape emerged as the principal catalyst for Zazuu’s demise.

Navigating a Crowded Landscape

Zazuu entered a remittance space that has progressively become saturated and fragmented. The emergence of digital disruptors like NALA, Lemonade Finance, and Chipper Cash, alongside established players such as WorldRemit and Remitly, created a highly competitive environment. Zazuu attempted to carve a niche for itself by offering a comprehensive aggregator service, allowing users to discern rates and fees from over 17 service providers across multiple corridors.

The initial success of Zazuu as a chatbot, disseminating daily remittance rates on social media platforms, evolved into a full-scale aggregator. CEO Kay Akinwunmi underscored the company’s commitment to providing users with a transparent and unbiased view of their remittance options, aiming to shift power away from traditional financial institutions.

Challenges and the Harsh Reality of Closure

Despite Zazuu’s reported 2.3 times growth in its user base during Q1 2022 compared to the entire previous year, the platform grappled with challenges in a fiercely competitive market. While it aimed to alleviate pain points for service providers, such as high customer acquisition costs and churn, the company’s closure emphasizes the uphill battle faced by fintechs in balancing user growth and sustainable operations.

Zazuu’s closure prompts a reflective examination of the volatile funding climate within the fintech space. Despite raising a commendable $2 million in 2022, the company found itself unable to secure the necessary funding for sustained operations. This underscores the capricious and competitive nature of the landscape that even promising startups must navigate.

Lessons Learned from Zazuu’s Demise

Fintech Challenges in Bridging Financial Disparities

Zazuu’s closure shines a spotlight on the arduous terrain of the remittance landscape, particularly in sub-Saharan Africa. Despite the increasing inflow of remittances, the World Bank reports that the region remains the most expensive for sending and receiving money, with an average cost of 8% for a $200 transfer compared to the global average of 6%. Zazuu’s demise underscores the persistent difficulties in devising effective solutions to address these challenges.

The Struggle for Transparency in Remittance Services

While Zazuu entered the scene as a transparent aggregator, aiming to empower users by providing a comprehensive view of remittance options, its closure suggests that achieving transparency and altering consumer behavior in the remittance space remains an uphill battle. Analysts from the World Bank’s Remittance Prices Worldwide emphasize the vital role of transparency in reducing remittance costs.

Market Fragmentation and Fintech Competition

Zazuu’s experience in a highly fragmented remittance market, teeming with both digital upstarts and established players, highlights the significance of sustainable strategies for fintechs entering such crowded domains. The company’s initial success as a chatbot informing users of daily remittance rates underscores the challenges posed by fierce competition.

In all, Zazuu’s closure serves as a stark reminder of the ruthless realities faced by fintech startups, navigating a complex landscape fraught with challenges. The lessons learned from Zazuu’s demise will undoubtedly reverberate throughout the industry, prompting a reevaluation of strategies and a heightened awareness of the delicate balance between user growth and sustainable operations.

Zazuu Shuts Down Zazuu Shuts Down Zazuu Shuts Down

African Fintech Zazuu Raises $2M For Its Cross-border Payment Marketplace

Charles Rapulu Udoh

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