In a good development for Tunisia’s fintech scene, Konnect, the innovative player revolutionizing financial services, has announced its exclusive selection as the sole Tunisian representative in the prestigious Visa Accelerator Program for Africa. The announcement came on the 13th of November, 2023.
Chosen amidst fierce competition from 1044 African startups, Konnect is set to be a driving force in this transformative initiative led by Visa and Plug and Play, aimed at reshaping the financial landscape across the region.
Visa’s CEO emphasized the dynamism of the African market, particularly noting the emergence of the first digital-native generation. Konnect’s acceptance into the Visa Accelerator program underscores its distinctive and innovative role within Tunisia’s financial ecosystem.
Amin Ben Abderrahmen, Founder and CEO of Konnect
Renowned for its rapid and secure payment link and API service, facilitating payments for individuals, SMEs, and large corporations within Tunisia and beyond, Konnect stood out from the extensive pool of contenders. Now, armed with this recognition, Konnect is poised to leverage the resources and opportunities offered by the Visa Accelerator Program to expand its influence and revolutionize the fintech sector in the region.
The Visa Accelerator Program promises to be a catalyst for Konnect’s growth by providing a unique platform with opportunities for one-on-one mentoring, cutting-edge training resources, and investment prospects. These elements are expected to amplify Konnect’s innovative capabilities and further solidify its position in the fintech sector.
Amin Ben Abderrahmen, Founder and CEO of Konnect, expressed his pride, stating, “This acceptance into the Visa Accelerator Program is a testament to our unwavering commitment to innovation and transformation in Tunisia’s fintech landscape. It marks a significant milestone for Konnect, and we are honored to be part of this innovative journey.”
The Visa Accelerator Program not only opens doors for Konnect to expand its presence and launch new payment products but also positions it to accelerate its expansion in North Africa and extend its reach and impact throughout the continent and beyond.
Konnect stands at the forefront of reshaping Tunisia’s financial landscape, offering an online payment solution dedicated to empowering individuals and businesses with innovative payment solutions. With a vision to break financial barriers and foster universal prosperity, Konnect is committed to building an inclusive financial future where opportunities know no boundaries.
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
The African continent presents huge potential for growth and the recently introduced African Continental Free Trade Area (AfCFTA) agreement promises to underpin trade facilitation and economic expansion with be the largest free trade area since the formation of the World Trade Organization in 1995.
The longest journey starts with a single step. Government, public bodies, private institutions, and investors are having conversations with a pointed focus on compliance standards, verification of conformities and regulatory alignment to encourage import and export in a safe manner.
Africa’s current population of 1.5 billion people, expected to increase to 2.5 billion by 2050, demands the need for goods and services for domestic consumption and international trade to achieve sustainable economic growth and improve living standards. The forecast for Africa estimates the fastest urban growth rate globally according to the Organization for Economic Cooperation and Development (OECD), with cities touted to become home to some additional 950 million people. With most of this happening in small and medium-sized towns, great opportunities are envisaged and with this comes the need for food protection, much needed infrastructure development and essential services, all wrapped up in a green environment that is sustainable and transparent.
Hailed as a game changer for import and export
The AfCFTA has been hailed as a ‘game changer’ to intra-African trade, pivotal to boosting the economy because of its unification and solidifying of all the African countries into one binding agreement, making it historic and a first of its kind. The agreement is expected to change the face of the import and export landscape, already making an impact since it was brokered and signed in 2018.
As the AfCFTA becomes a part of the daily business environment, governments and businesses need to be aware of product standards and regulations to protect traders and society. The necessity for a safe environment for the export of goods within countries in Africa; and the regulatory and compliance alignment required for promoting “made in Africa” goods for export to international markets, have spurred on the recent collaboration between Afreximbank and the world leader in testing, inspection and certification, the independent entity Bureau Veritas, to launch the African Quality Assurance Centre (AQAC) in Ogun State, Nigeria.
AfCFTA Secretariat
The state-of-the-art testing facility ensures standards of final products for export comply with global standards across all sectors of the market, including the food chain; therefore, also serving as a health and safety benefit for the predicated urban growth. Aligned to international compliance regulations, the laboratory, through testing, ensures that “made in Africa” products are accepted internationally. Addressing the trade imbalance between import and export, the facility is making consistent inroads at balancing the playing fields.
According to Ohioze Unuigbe, Sales Director for Government Services, Africa for Bureau Veritas, and an instrumental player in the development of AQAC with Afreximbank: “Nigeria and more globally Africa have a razor-sharp focus on conformity and compliance of goods, which is helping to accelerate safe and secure trade with Nigeria and between countries in Africa and indeed to the rest of the world. We are in a very exciting phase in the maturation of the African trading landscape, and we just need to ensure we have the right regulations in place to drive compliance. Our collaboration with Afreximbank has resulted in a one-of-a-kind, modern testing facility which is going to bear great fruits for the protection and facilitation of intra-African and export trade with the continent and globally.” AQAC has also sparked the need for training and building local technical knowledge, further boosting skills, enhancing prosperity, and encouraging job creation. It is expected that further AQAC laboratories will be rolled out in due course which in turn will ensure ease of logistics and quality control across regions.
Bureau Veritas plays a key role in facilitating intra-African trade, helping support their clients to achieve market access for the made-in-Africa products, whilst also facilitating and promoting relationships with International Financial Institutions, including Afreximbank. With recent investments into laboratories to ensure compliance standards and the pre-Export Verification of Conformity programs in place, Bureau Veritas, together with its stakeholders, is determined to enhance inter-country exporting within Africa and is taking the lead on this very important topic.
Powerful influence of SONCAP on the economy
In 2005, the Nigerian government introduced the Standards Organization of Nigeria Conformity Assessment Program (SONCAP), a pre-shipment verification of conformity to standards for imported products. The program addresses the concern of unsafe products entering the country and the subsequent risks to public health and safety. SONCAP provides a level playing field in terms of quality for both regulated and locally manufactured products to prevent unfair competition. Products arriving at Nigerian entry points; ports, airports, or land borders without a SONCAP Certificate are rejected at the entry point and the Customs release will be refused. “To date the program has made a positive impact on products being regulated and importers are being held accountable for their goods, thereby improving the quality of products currently reaching the country,” adds Unuigbe.
“It is of vital importance that we view compliance holistically as a continent rather than through the lens of one nation. The European Union is strong because they collaborate on standards and compliance regulations. Bureau Veritas runs verification of compliance programs globally and so we can play a pivotal role in supporting any nation comparing their programs to best practice or refining their regulations. The recently launched TIC Council Africa with Bertrand Martin, SVP Africa Bureau Veritas will not only serve as a catalyst to shaping the African trade landscape but will also, ensure an eagle eye is kept on conformance and compliance across Africa,” he asserts.
The impact of standardization on the economy
Harmonization of standards and regulatory compliance are essential to unlocking the Nigerian and African economies, whilst also serving as an inhibitor of sub-standard product importation. Currently 45% of expired drugs end up in Africa due to lack of standards regulations, which in turn negatively impacts public health and safety. Standardization of products will alleviate many of these challenges in the long term, thus reducing the impact on weighty health budgets.
The African Quality Assurance Centre will further support the Nigerian economy by ensuring the correct pricing of commodities is obtained based on the quality of the goods, which is achievable only by testing. As a country rich in raw materials that are currently being exported for processing, this will make a positive dent on the economy and Gross Domestic Product.
Governments need to create an enabling environment for investors, which becomes more attractive to foreign direct investment if harmonization of standards exists. The Nigerian market is an import-driven market highlighting the need for strong regulations to protect consumers. The need for an independent testing, inspections, and certifications body to ensure compliance with a harmonized regulatory system and international standards is essential to creating an environment of trust and transparency; where government, businesses, investors, and consumers all benefit in a safe manner.
A new Trade Supermarket for Africa
Afreximbank plays a unique and pivotal role in intra-African trade and the African economy. Their positive impact on trade has been well documented, as already witnessed by much interest from companies for funding to process raw materials from natural resources prior to export.
Afreximbank, has strategically championed the progress of trade and are now perceived as the “Trade Supermarket for Africa”, boosting the economy, and acting as a “one-stop-shop” for financial needs for the continent whilst also supporting regional integration on the continent. Proposing a pan-African solution of international finance that will benefit every country on the continent.
In its drive to promote infrastructural development, Bureau Veritas certifications, testing and inspection certificates of quality are recognized and readily accepted internationally, making them an indispensable player in the relationships between Afreximbank, Africa and the AfCFTA. Afreximbank and Bureau Veritas together bring trust to the entire process, further encouraging much needed foreign direct investment to the continent.
Key drivers of the economy and regional integration
Many countries on the continent are in dire need of coverage of key infrastructures such as transport, energy, ICT, energy, infrastructure, and transboundary water resources.
One of the critical areas in the spotlight for the Nigerian government is food security. With an economy offering huge potential for growth AfCFTA and AQAC play a pivotal role in the Agricultural sector, one of the fastest growing areas of the market. Quality testing and conformance will further enhance food security, which is also dependent on infrastructure development as an essential driver for progress and has the potential to be an enabler of sustainable and inclusive economic growth. The African economy demands reliable infrastructure to connect supply chains and transport goods and services effectively across borders via regional corridors, central to successful intra-African trade.
The need for regional integration is core to the success of the AfCFTA in Africa, which will help create a new ecosystem for trade. As this gains momentum, an enabling environment for the private sector to invest on the continent will be created which will further boost economic success.
Sustainability, going green, conformity and compliance
Africa currently enjoys one of the lowest contributors to green-house emissions and has contributed the least to global warming. As and when much-needed infrastructural development is rolled out, sustainable green solutions that are inclusive and resilient are being implemented to address the infrastructure deficit.
Africa’s rich natural resources and the world’s largest free trade area, incorporating seamless regional corridors and harmonious compliance regulations, will set the stage for positive growth in intra-Africa trade.
One must think global and act local.
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
Health startup Kena shone so bright at the 12th annual MTN Business App of the Year awards which took place at gala event in Sandton City, South Africa. As it took the night’s top honours.
“We are incredibly honoured to be recognized by MTN Business as the overall App of the Year 2023 as well as the health category winner. Awards like this help us take a step closer to our vision of changing health-care systems in South Africa and across the continent,” said Kena Health chief technology officer Pheello Maboea.
The Kena Health app seeks to break financial barriers to quality health care. It offers patients access to a doctor, nurse or mental health professional for R185/consultation. The consultations are done virtually, minimising waiting times and travel costs for consumers.
Founded by Saul Kornik in 2021, the young start-up had to muscle past more experienced industry rivals such as Discovery Health as well as an array of digital businesses in fintech, agriculture, gaming, biomedicine and online shopping to claim the top spot.
MTN Business marketing head Kholofelo Magagane with Marilyn Dutlow Munga, Pheello Maboea and Saul Kornik from Kena Health
The category winners are:
Best consumer solution: Discovery Bank
Best enterprise solution: Medsol Breast AI
Best hackathon solution: Future DX – Thutofy
Best gaming solution: Fruit-Full 3
Best health solution: Kena Health
Best agricultural solution: Broiler Operations Management
Best educational solution: Angula
Best Campus Cup solution: CPF Method
Best breakthrough developer: University Qualifications
People’s Choice award: TymeBank
Best financial solution: iKhokha
Most innovative solution: Eyerus
Best Huawei AppGallery category: Pick n Pay asap!
One of the most coveted awards of the night, the People’s Choice award, went to the digital-only bank TymeBank. The digital bank, in which Patriece Motsepe’s African Rainbow Capital is majority shareholder, recently topped eight million clients and joins the ranks of previous crowd favourites Afrihost, Afrikaans mobile dating app Koer and EskomSePush.
“This year’s winners have shown how technology can help transform traditional business models, streamline operations and enhance productivity. By harnessing technology to address critical business and societal challenges, they will inspire others to adapt, evolve and thrive in a rapidly changing environment,” said MTN Business marketing head Kholofelo Magagane.
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
The African Export-Import Bank (Afreximbank) has presented an intra-African Engineering, Procurement and Construction (EPC) platform designed to empower African contractors to successfully bid for contracts by allowing for the seamless posting of key infrastructure projects within the EPC space in Africa for bidding by EPC companies.
The presentation, which took place during a workshop organised on the sidelines of the third Intra-African Trade Fair (IATF2023), also covered various products, programmes and initiatives developed by Afreximbank to support local companies engaged in infrastructure contract bidding.
Addressing the workshop, Kanayo Awani, Executive Vice President, Intra-African Trade Bank at Afreximbank, said that the objective of the workshop was to promote African participation in large scale African infrastructure projects and to promote the award of EPC contracts to African entities.
Mrs. Kanayo Awani, Executive Vice President, Intra-Africa Trade Bank, Afreximbank
“It is our belief that this specialized capacity building programme will enable African contractors to successfully bid for construction projects on the continent and beyond,” she said.
The workshop was held to share the results of a survey conducted on challenges faced by African contractors and to also share the critical success factors in winning projects. It also featured presentation of success stories from companies that previously received support from Afreximbank, including Mota Engil, Elsewedy and Hassan Allam.
The company representatives, in their presentations, highlighted the need for African countries to allow for the movement of labour across borders so that EPC contractors could bring in workers from other African counties where expertise existed. They also said that including local content requirement in EPC contracts would help to encourage the use of local contractors and enhance capacity building.
The workshop was capped off with the signing of facility agreements valued at US$200 million with Hassan Allam; US$30 million with Grainer Angola; US$50 million with DOTT Services; US$200 million with Arab Contractors; US$200 million with FDI; and US$300 million with Elsewedy.
IATF2023, Africa’s largest trade and investment fair, opened on November 9 and will run till November 15.
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
President Abdel Fattah al Sisi of Egypt, participating in the third Intra-African Trade Fair (IATF2023) in Cairo today, called on countries across the continent to consolidate their efforts and promote intra-African trade.
In an address at the Presidential Summit of the trade fair, the President said that Africa’s huge natural resources and its agricultural, educational and mineral potential should be leveraged to drive intra-African trade, adding that there was need for African nations to cooperate positively towards mutual growth.
“As you can see, the capabilities exist and the possibilities exist, but there may be some obstacles and problems that hinder this work,” he said. “Therefore, we in Egypt should always build, develop, rebuild and cooperate in these fields, and nothing less.”
President Abdel Fattah al Sisi
The President expressed the hope that IATF2023 would contribute to the growth of local economies and help overcome existing challenges by fostering regional partnerships, saying that such events were crucial to elevate intra-African trade to the desired level.
Earlier, Prof. Benedict Oramah, President and Chairman of the Board of Directors of the African Export-Import Bank (Afreximbank), said that, working with the African Union Commission and the African Continental Free Trade Area (AfCFTA) Secretariat, Afreximbank had supported the delivery of critical AfCFTA-enabling instruments, including the Pan-African Payment and Settlement System (PAPSS) which was making intra-African payments quicker, cheaper, more efficient and in African currencies.
“Afreximbank supports PAPSS with a settlement and clearing fund of US$3 billion,” said, adding that the African Collaborative Transit Guarantee Scheme had also commenced operations in the COMESA Region with Afreximbank as the regional guarantor, making the movement of goods across Africa’s 110 multiple borders easier, faster, and cheaper.
“In combination with the PAPSS, the Transit Scheme will reduce the foreign currency cost of paying for transit bonds,” Prof. Oramah said.
He added that the AfCFTA Adjustment Fund had also been established and would be operational by early next year on US$1 billion which Afreximbank approved in its support.
It could be recalled that former President of Nigeria, Chief Olusegun Obasanjo, Chairman of the IATF2023 Advisory Council and former President of Nigeria, said that the IATF had been a success to date, recording significant milestones, including the introduction of the African Buyers Programme, in the thrust to promote greater trade among African nations. He thanked the Government and people of Egypt for agreeing to host the event at short notice.
“When I look at what has been achieved since November 9, when this edition of our trade fair got off to a start, the word that comes to my mind is outstanding,” Chief Obasanjo said, commending participants for the large number of deals signed and initiatives introduced for the benefit of Africa.
Also speaking, Wamkele Mene, Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, praised Egypt for hosting the IATF for the second time and for supporting the implementation of the AfCFTA. He noted that Egypt had taken the lead in establishing the AfCFTA Trading Company which aimed to strengthen ties among the member countries of the AfCFTA.
Mr. Mene announced that a protocol for investment was in place and that efforts were being made to establish an investment protocol which would assist in the development of the Pan-African Trade Investment Agency to facilitate investments across the continent and support economic growth.
In his own remarks, Albert Muchanga, African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, said that intra-African trade and the AfCFTA were the gateway to prosperity for the countries of Africa.
IATF2023, Africa’s largest trade and investment fair started on 9 November and runs until November 15. It is expected to attract over 1,600 exhibitors and 35,000 visitors, with trade and investment deals worth US$43 billion projected to be concluded during the event.
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
The African Export-Import Bank (Afreximbank) has launched a new initiative that will open doors, allowing African contractors to capitalise on various infrastructure investments available across the continent. The launching took place today at the ongoing Intra-African Trade Fair (IATF) in Cairo, Egypt.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, joined by Rania Al-Mashat, Minister of International Cooperation of Egypt, launched the Afreximbank Intra-African Engineering, Procurement and Construction (EPC) Contract Promotion Programme during the Presidential Summit of the Intra-African Trade Fair 2023 (IATF2023).
Prof. Oramah told guests that the programme was one of the Bank’s initiatives to support the implementation of the African Continental Free Trade Area (AfCFTA), saying that it aimed to enable African companies to successfully bid for, win and execute infrastructure contracts in Africa through capacity building, twinning, market access opportunities, financing, guarantees and technology solutions.
“The EPC initiative will help African contractors to participate in the US$60 billion annual infrastructure investments within Africa, unlike the current practice where most of the contracts go to non-African entities,” he said.
Ms. Al-Mashat said that the launch of the programme would have a positive impact on Africa’s agenda for sustainable development.
“It enhances the participation of African companies in infrastructure projects, provides more investment opportunities and facilitates the exchange of information in order to expand partnerships and twinning agreements to drive growth in the engineering, construction and procurement sector,” she said.
Minister Al-Mashat described the platform as a strategic and effective solution to tackle three significant challenges preventing Africa from reaching its potential, including lack of funding, insufficient information and a skills gap. Addressing those challenges was especially crucial to tackling the infrastructure funding gap in the continent, estimated at US$170 billion annually, which could be fixed by promoting international cooperation and attracting investment in infrastructure.
She recommended promoting transparent communication between governments and the private sector to bridge information gaps and tackling skills gaps by providing technical support, capacity building and skills development to build a skilled workforce.
The Minister said that Egypt was eager to boost private sector involvement in development endeavours and to link it to all funding and investment opportunities and technical support provided by multilateral and bilateral development partners, adding, “in order to promote these efforts, I have the honour to announce to you that the platform we are launching today will be linked to the Ministry of International Cooperation’s portal for private sector participation.”
She commended Afreximbank for leading the initiative and providing support to EPC companies in Africa through contracts worth over US$12 billion in the past five years and appealed to international development partners to do more in supporting African companies by providing affordable and low-cost development finance. They should also provide more innovative mechanisms and technical support necessary for implementing infrastructure and green projects in Africa.
Attending the Presidential Summit was host President Abdel Fatah El Sisi of Egypt who was joined by Presidents Emmerson Mnangagwa of Zimbabwe and Lazarus Chakwera of Malawi. Also present were Prime Minister Mostafa Madbouly of Egypt and former President Olusegun Obasanjo of Nigeria, along with several former African vice presidents, serving ministers, other political and business leaders.
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
Bolt Food, the renowned food delivery arm of the ride-hailing giant Bolt, is poised to conclude its operations in South Africa and Nigeria by December 7, citing intensified competition within the online food delivery landscape.
A spokesperson for Bolt conveyed that the decision to discontinue food delivery services in South Africa stems from complex but essential business considerations. The move is aimed at optimizing resources and improving overall operational efficiency. Effective December 8, users will no longer be able to place Bolt Food orders through the app.
Bolt Food Country Manager, Edgar Kipngetich Kitur
While making an exit from the food delivery sector, Bolt reassures its steadfast commitment to other verticals in both countries, prioritizing the delivery of top-notch services to its clientele.
Having commenced operations in South Africa in June 2021 and in Nigeria in October 2021, Bolt Food SA currently serves customers in Cape Town and Johannesburg, while in Nigeria, it operates in Lagos.
In anticipation of market shifts, Bolt Food SA had previously outlined plans to unveil Bolt Market on its platform, transitioning into an online marketplace, as disclosed by Tafadzwa Samushonga, the country manager for Bolt Food SA.
As Bolt Food bids farewell to the South African food delivery scene, new entrants are making their mark in a landscape already dominated by major players such as Mr D Food and Uber Eats. Nevertheless, the industry grapples with challenges stemming from escalating petrol prices, inflation, and economic downturn, impacting the overall food delivery market.
The South African online delivery sector has faced scrutiny since the initiation of the Competition Commission’s (CompCom’s) Online Platforms Market Inquiry in 2020. Following extensive investigation and hearings, the CompCom unearthed evidence of anti-competitive behavior by major players like Mr D Food and Uber Eats, posing obstacles to fair competition in the industry.
The inquiry underscored the hurdles faced by new and smaller local players attempting to enter the market, owing to incentives offered to restaurant partners and the contractual agreements with food establishments. Additionally, dominant food delivery platforms were found to rely on exorbitant restaurant commission fees and substantial promotions, resulting in customers bearing significant surcharges on meal prices.
In response, the commission advocated for increased transparency, specifically urging the disclosure of menu surcharges for each restaurant and the transparent sharing of meal payment between the delivery platform and the restaurant.
Similarly, in Nigeria, the online food delivery market has witnessed remarkable growth, propelled by surging demand for convenience and a diverse array of food choices. According to estimates from IMARC Group, the Nigerian online food delivery market reached a value of $834.7 million in 2022, with projections indicating a compound annual growth rate of 12.2% from 2023 to 2028, reaching $1,719.4 million. Key competitors for Bolt Food in this expanding market include Glovo, Chowdeck, Buyfood, and Jumia Food. Glovo’s recent collaboration with Chicken Republic signifies a notable shift in partnerships within the food delivery industry.
Despite the industry’s growth, the food delivery sector in Nigeria faces multifaceted challenges, encompassing the management of customer expectations, issues related to food handling, market price fluctuations, and logistical obstacles. Nonetheless, the ingrained culture of dining out in Nigeria remains a driving force, continually drawing new customers to food delivery services and contributing to the industry’s sustained expansion.
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
AltSchool Africa, a Nigerian edtech startup positioning itself as the African counterpart to the U.S. coding bootcamp BloomTech, is gearing up for its next growth phase with the support of Intellecap, an advisory firm focused on Asia and Africa. The fully-funded program, facilitated by the Rwandan Innovation Fund, aims to strategically guide AltSchool in planning its expansion.
In April 2023, AltSchool successfully raised $3 million, with Angaza Capital, a venture capital firm co-managing the Rwandan Innovation Fund, participating in the round, according to data from Pitchbook. This investment, previously undisclosed, was a significant milestone for AltSchool. While Adewale Yusuf, AltSchool’s CEO, acknowledged the startup’s funding from the innovation fund, specific financial details remained confidential.
Adewale Yusuf, AltSchool’s CEO
Established in 2021 with a $30 million loan from the African Development Bank, the Rwandan Innovation Fund plays a pivotal role in positioning Rwanda as a technology hub in Africa. Yusuf expressed gratitude for the Rwandan government’s support in a LinkedIn post, highlighting their instrumental role in AltSchool’s success since entering the market.
AltSchool’s presence in Rwanda has grown, with an office at the Norrsken hub and four staff members in the country. The company is actively hiring for additional roles. This move aligns with a broader trend of African companies being drawn to Rwanda, with Flutterwave and Paystack also expanding their operations in the region.
Beyond the initial $30 million AfDB loan, the Rwandan Innovation Fund aims to attract an additional $30 million from private investors, with an $8.6 million contribution from the government. The fund targets investments in 150 tech-enabled companies, ten incubators and accelerators, and 20 early-stage growth opportunities across Africa.
AltSchool distinguishes itself by offering online-only learning with a comprehensive curriculum covering business, data, engineering, media, and the creative economy. The startup adopts a unique pricing model, charging $20-$50 per month for its courses and utilizing the income-sharing agreement (ISA) common among online edtech startups like ALX. AltSchool connects learners to internships, aiming to ensure their successful entry into the job market.
Having supported approximately 20,000 learners across eight African countries, AltSchool remains committed to equipping young Africans with the knowledge and skills necessary for sustainable careers. In a region grappling with persistent youth unemployment, AltSchool and similar edtech platforms play a crucial role in addressing the skills gap and empowering young people to meet global demands.
This recent funding round marks AltSchool’s second, following a $1 million pre-seed funding announcement in 2022, which included participation from VCs such as Voltron Capital and Obda VC, as well as notable figures like Paystack’s Sola Akinlade and Nigerian musician Folarin “Falz” Falana.
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
Pineapple, a South African InsurTech startup, has successfully concluded a groundbreaking funding round, securing a total investment of R400 million ($21.5M). The investment round marks a significant milestone as the largest insurtech fundraising effort on the African continent to date. Leading the investment were new backers Futuregrowth, Talent10, and MIC, alongside continued support from existing investors such as Old Mutual ESD, Lireas Holdings, ASISA ESD Fund, and E4E Africa.
This sizable investment comes on the heels of Pineapple’s robust growth and sustainable claims ratios, surpassing industry standards for a newer insurance portfolio. Pineapple’s co-founder and CEO, Marnus van Heerden, attributes the success of the funding round to their tech and AI-powered operating model, which enables the company’s mission to provide affordable and comprehensive insurance to all South Africans. Notably, Pineapple claims that their technology allows them to serve customers at only 20% of the cost incurred by traditional insurance providers, facilitating significant cost savings in insurance premiums for customers and contributing to accelerated growth.
Investors were drawn to Pineapple for several compelling reasons. The startup’s innovative approach to insurance, powered by technology and artificial intelligence, aligns seamlessly with the investment philosophy of Futuregrowth, one of the lead investors. Pineapple’s exceptional growth and customer-centric model are seen as a potent combination of technological prowess and deep market understanding. Amrish Narrandes, head of Futuregrowth Asset Management’s Private Equity/Venture Capital, emphasized the alignment of Pineapple’s mission with their investment philosophy. With a R100 million investment, they aim to support Pineapple in redefining the insurance landscape.
The co-founder of Pineapple, Ndabenhle Ngulube, highlights the company’s foundation on the principle of customer-centricity. The success of putting customers at the center of every decision has been a pivotal factor in attracting investor confidence. Pineapple’s ability to provide insurance services at a fraction of the cost of traditional providers and the resulting positive impact on premiums further solidifies its attractiveness to investors.
Credits: Pineapple
A Look at Pineapple:
Founded in 2018, Pineapple is a South African InsurTech startup that has garnered significant attention and accolades since its inception. Recognized both locally and internationally, the company has received awards such as the MTN Consumer App of the Year and the Stanford Startup Award. Notably, Pineapple is the first InsurTech to be accepted into Google’s Launchpad Accelerator Program.
The startup entered the South African market in 2018 with a focus on addressing issues of insurance trust. Pineapple’s innovative approach involves underwriting insurance products through Old Mutual Insure, while Hannover-Re, Pineapple’s early innovation partner, continues to serve as a reinsurer and strategic partner. Pineapple has gained recognition as the best-rated insurance company, boasting an average score of 4.7/5, surpassing competitors with a 0.4-star lead. This success positions Pineapple as a trailblazer in showcasing the potential of South African talent, funding, leadership, and mentorship in establishing itself as a hub for globally scalable technology.
Pineapple insurance South Africa Pineapple insurance South Africa
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’s Technology Innovation Agency (TIA) and the UK government’s national innovation agency Innovate UK have established a R16-million (USD 854,000)fund to support collaborative research, development, and commercial partnerships between South African and UK water utilities. The focus is on innovations in water management, distribution, and treatment.
The UK-SA Water Innovation Lead Customer Programme fund aims to forge partnerships between South African and UK water utilities and innovators with proven solutions, enabling greater access to clean water and sanitation. This initiative addresses water security challenges faced by South Africa and the UK, including water shortages, capacity constraints on investing in new infrastructure, and maintenance of existing facilities.
“Innovate UK and TIA share common issues such as droughts, ageing infrastructure, and the ever-growing needs of expanding populations. This initiative is an opportunity for us to build stronger linkages between our two countries. By combining the resources, talent, expertise, and experiences of our respective water sectors, we can work together to solve our collective challenges,” said Innovate UK Global Alliance head Dr. Nee-Joo Teh.
The new initiative provides an opportunity for innovators to engage with their global counterparts, explore new environments, and create value for both markets and their communities.
“This partnership with Innovate UK ties in with TIA’s mandate and mission to harness technological innovation and knowledge for the betterment of all South Africans. By stimulating and supporting collaborative water innovation, we can promote economic growth and improve our citizens’ quality of life,” added TIA natural resources and energy business unit head Dayanandan Naidoo.
Of the R16-million in funding available, R5-million is being provided by TIA for South African organizations, while Innovate UK is providing £500,000 (about R11.4-million) for their UK partners. Eligible entries must propose a partnership between at least one South Africa- and one UK-based organization.
Innovate UK’s Global Alliance Africa project will manage the fund, which is divided into two streams based on Technology Readiness Levels (TRL).
South African organizations with projects at TRL 4 to 6 can receive grants up to R500,000, and their UK partners up to £25,000. For projects at TRL 6 to 8, South African entities are awarded up to R1-million, with UK partners eligible for up to £100,000.
Additionally, Global Alliance Africa and TIA will offer technical support and assist in finding and connecting South African and UK partners.
Applicants with innovative, tested proof-of-concept solutions that address key challenges will be prioritized. These challenges fall into two thematic areas, one of which is digitalization, focusing on water resource management, leak detection and reduction, data-driven decision-making, improved water quality monitoring, enhanced water treatment, better water distribution and access, water billing and revenue management, and remote monitoring of rural water infrastructure.
The second theme is effective waste management in the fields of wastewater treatment efficiency, water reuse and recycling, energy recovery, and nutrient recovery.
South African startups, small, medium-sized, and microenterprises, as well as large organizations, are encouraged to participate in this collaborative initiative.
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
