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African B2B Auto Marketplace Shekel Mobility Attracts $7M Investment from Leading VCs for Expansion

November 14, 2023

Shekel Mobility, a B2B marketplace for auto dealers in Africa, has successfully raised $7 million in funding. The investment comprises $3.2 million in equity and over $4 million in debt. Ventures Platform and MaC Venture Capital led the funding round, co-leading the seed round along with other investors from the previous pre-seed round, such as Y Combinator, Rebel Fund, Unpopular Ventures, Maiora Capital, PageOne Lab Inc., Phoenix Investment Club, Heirloom VC, Pioneer Ventures, and several angel investors. The debt component was provided by Zedvance, VFD Microfinance Bank, Zenith Bank, and Fluna, among others.

The funds are intended to be a catalyst for Shekel Mobility’s growth, aiming to quadruple its current Annual Recurring Revenue (ARR) of slightly over $2 million. The startup plans to leverage this financial infusion to propel itself toward its next priced round. The co-founder, Benjamen Oladokun, revealed in an interview that the strategic deployment of these funds is crucial for the startup’s expansion and positioning within the rapidly evolving African automotive market.

Founded by Benjamen Oladokun and Sanmi Olukanmi, Shekel Mobility — Benjamen Oladokun and Sanmi Olukanmi, Shekel Mobility founders

Why the Investors Invested:

Ventures Platform and MaC Venture Capital, among others, invested in Shekel Mobility due to the critical role it plays in addressing the unique challenges faced by small auto dealers in Africa. The primary drivers behind their investment are:

Proven Traction: Shekel Mobility, in its 20 months of operation, has demonstrated substantial traction. The startup has facilitated over $56 million in auto dealer transactions, empowering and supporting the growth of more than 1,400 dealers across 7,000 cars. This proven track record showcases the effectiveness of Shekel Mobility’s platform in driving real-world transactions within the African used car market.

Zero Default Rate: A pivotal factor contributing to investor confidence is Shekel Mobility’s meticulous control of the end-to-end process of buying and selling cars through dealerships. The startup boasts a 0% default rate, a testament to the efficacy of its financing model and risk management strategies. This exceptional performance enhances Shekel Mobility’s appeal to investors seeking reliability and stability in their investment portfolios.

Financial Efficiency: The startup’s flagship product, Shekel Credit, offering auto dealers immediate access to financing with credit limits up to $200,000, has not only facilitated transactions but has done so with financial efficiency. The financing model, where the dealer contributes 30% of the total cost, ensures a streamlined process with the remaining 70% provided as a loan by Shekel Mobility. This financial efficiency aligns with investor expectations of sound fiscal management and responsible lending practices.

Strategic Expansion Plans: Investors are drawn to Shekel Mobility’s proactive approach to growth. The startup plans to utilize the newly acquired funds to quadruple its current Annual Recurring Revenue (ARR) of slightly over $2 million. This growth-oriented strategy, coupled with the intention to introduce new offerings like Shekel Business, showcases a well-defined roadmap for scaling operations and further penetrating the African automotive market.

Generally, the investors see Shekel Mobility as a market-creating innovation with the potential to transform and ignite the automotive industry in Africa. Kola Aina, the founding partner at Ventures Platform, emphasizes the importance of Shekel’s innovation in expanding Nigeria and Africa’s automotive industry. Marlon Nichols, founder and managing partner at MaC Venture Capital, underscores the startup’s role in empowering small businesses and facilitating the movement of millions of dollars through the Nigerian economy.

A Look at Shekel Mobility:

Founded by Benjamen Oladokun and Sanmi Olukanmi, Shekel Mobility is a YC-backed B2B auto dealers marketplace focused on the $30 billion African used car market. The founders bring significant expertise from their involvement in Eazypapers Technologies, a digital vehicle documentation platform catering to FMCG, mobility, and logistics companies.

Shekel Mobility’s primary goal is to become the premier platform for launching and growing car dealerships in Africa, with a target of reaching transactions amounting to $10 billion annually by 2025. The startup, operating for the last 20 months, has already facilitated over $56 million in auto dealer transactions, supporting the growth of more than 1,400 dealers across 7,000 cars.

At the core of Shekel Mobility’s success is its flagship product, Shekel Credit, providing auto dealers with immediate financing access, with credit limits up to $200,000 for vehicle purchases. The startup controls the end-to-end process of buying and selling cars through dealerships, ensuring a 0% default rate. Looking ahead, Shekel Mobility plans to introduce new offerings, including Shekel Business, designed to digitize informal trading processes within the auto dealership vertical and further streamline sales and structuring processes for dealers.

Kenyan President Says Saudi Arabia is an Important Partner in Energy and Trade

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

Afreximbank Records Deals Worth US$1Billion at Intra-African Trade Fair (IATF2023)

November 13, 2023

As the Intra-African Trade Fair (IATF2023) enters its 5^th day, there has been an upsurge in number of deals and signing of financing and other agreements valued in excess of one billion dollars between the African Export-Import Bank (Afreximbank) (www.Afreximbank.com) and several leading business entities from across the continent.

United Bank for Africa PLC – US$ 150 million

The Bank also signed a US$150-million trade finance facility agreement with United Bank for Africa (UBA) PLC, under the Ukraine Crisis Adjustment Trade Financing Programme for Africa, to be utilized to finance trade and trade-related transactions in support of UBA clients to facilitate increased financing of trade businesses in various sectors of the Nigerian economy to mitigate the adverse effects of the Russia-Ukraine crisis.

Signed by Denys Denya, Executive Vice President, Finance, Administration and Banking Services, Afreximbank, and Oliver Alawuba, Managing Director of UBA PLC, the facility is expected to enhance confidence in the settlement of international trade transactions for strategic imports.

FDH Bank Malawi -ATEX – USD10M

Another facility agreement, for US$10 million, was signed with FDH Bank Malawi to support trade finance in Malawi. Gwen Mwaba, Director, Trade Finance, signed for Afreximbank while George Chitera, Deputy Managing Director, signed for FDH Bank Malawi.

Banque Commerciale du Burundi (BANCOBU) – USD 55 Million

Under a facility agreement with Banque Commerciale du Burundi (BANCOBU), Afreximbank will provide US$55-million trade facilitation limits to BANCOBU to support importation of essential commodities, such as petroleum products, which are important for the Burundi’s trade and manufacturing sector.

Rene Awambeng, Global Head, Client Relations, signed for Afreximbank while Sylvere Bankimbaga, Deputy Managing Director, signed on behalf of BANCOBU during a ceremony witnessed by Audace Niyonzima, Minister of Finance, Budget and Economic Planning, of Burundi.

Banque de Credit de Bujumbura – US$40 Million

Afreximbank also signed an agreement under which it will provide a US$40-million AFTRAF facility to Banque de Credit de Bujumbura (BCB) to support trade finance in Burundi. Signers were Rene Awambeng, Global Head, Client Relations, for Afreximbank and Roger Guy Ghislain Ntwungeye, Managing Director, for BCB.

Exodus and Company – USD141 Million

A term Sheet for a US$141-million intra-African investment finance facility was signed with Exodus and Company. Denys Denya, Executive Vice President, Finance, Administration and Banking Services, signed for Afreximbank while Progress Mambo, Chief Executive Officer, signed for Exodus and Company.

Ora SPV/Vista Group – Eur 140 million

Another term sheet for an EUR140-million intra-African trade investment facility was signed with Ora SPV/Vista Group for funds to be deployed in Burkina Faso. Kanayo Awani, Executive Vice President, Intra-African Trade Bank, signed for Afreximbank while Simon Tiemtore, Chairman of Lilium Capital, signed for Ora SPV/Vista Group.

ADI SPV/Vista Bank – EUR113 million

The Bank also signed a term sheet with ADI SPV/Vista Bank for a EUR113-million facility to be deployed in Burkina Faso. The term sheet was signed by Kanayo Awani, Executive Vice President, Intra-African Trade Bank, for Afreximbank, and Simon Tiemtore, Chairman of Lilium Capital, for ADI SPV/Vista Bank.

Lilium Gold – US$75 Million

Another term sheet signed during the day was with Lilium Gold for a US$75-million senior debt facility for a strategic investment that will significantly enhance Burkina Faso’s mining infrastructure through the acquisition of the Boungou and Wahgnion gold mines. Helen Brume, Director, Project and Asset Based Finance, signed for Afreximbank while Simon Tiemtore, Chairman of Lilium Capital, signed for Lilium Gold.

Sapro Mayoko – US$96 million

The Bank also signed a term sheet with Sapro Mayoko for a US$96-million iron ore mine development facility in Congo. The document was signed by Kanayo Awani, Executive Vice President, Intra-African Trade Bank, for Afreximbank and Paul Obambi, Chief Executive Officer, for Sapro Mayoko.

International Centre for Regional Integration and Trade Research (ICRITR) – MoU

An additional document inked during the day was a memorandum of understanding with the International Centre for Regional Integration and Trade Research (ICRITR) signed by Kanayo Awani, Executive Vice President, Intra-African Trade Bank, for Afreximbank and Prof. Charles Okechukwu Esimone, Vice Chancellor, Nnamdi Azikiwe University, Awka, Nigeria, for ICRITR.

Anambra State – US$200 Million

Earlier on the second day of the trade fair, Afreximbank had signed a mandate letter to provide capital raise financial advisory services to the Anambra State Government of Nigeria for an estimated US$200-million facility to support the development of three major projects in the state, covering the Ikenga Mixed-Use Industrial City Project, the Anambra Export Emporium and the Akwaihedi Unubi Uga Automotive Industrial Park.

The Bank also signed an agreement to provide the state government with financial advisory services for the development of operational and governance framework for the Anambra Diaspora Fund, including capital raise financial advisory services for the Anambra Intra-City Rail Master Plan project and the Anambra Diaspora Fund. Kanayo Awani, Executive Vice President, Intra-African Trade Bank, signed for Afreximbank while Mark Okoye, Chief Executive Officer, Anambra State Investment Promotion and Protection Agency, signed for the state government.

Central Africa Building Society – US$40 Million

Afreximbank also signed an agreement with Central Africa Building Society (CABS), Zimbabwe’s largest building society, to provide a US$40 million line of credit to help build capacity among hundreds of small and medium enterprises (SMEs). Signed by Denys Denya, Executive Vice President, Finance, Administration and Banking Services, Afreximbank, and Mehluli Mpofu, Managing Director of CABS, the agreement is for three years and is aimed at fostering the growth of the SME sector by supporting productive sectors, such as agriculture, manufacturing and mining.

Arise Integrated Industrial Platforms (ARISE IIP) – Heads of Terms

The Bank signed a heads of terms agreement with Arise IIP for the implementation of African Quality Assurance Centres (AQAC) projects in Benin and Gabon. Under the heads of terms, Afreximbank will develop AQACs to offer conformity assessment services such as testing, inspection and certification services in Benin, Gabon and, possibly, other African countries in collaboration with Arise IIP within industrial parks developed by Arise to support park tenants and other industries outside to enable them meet local and export market requirements. The AQAC initiative was created by Afreximbank to support African countries to improve their capacity in complying with international standards and technical regulations so as to promote exports and facilitate intra- and extra-African trade while ensuring the safety of products for consumption in Africa.

Gagan Gupta, Founder and CEO of Arise IIP, signed for the company while Oluranti Doherty, Director of Export Development, signed for Afreximbank.

Cooperation Agreements

The Bank also announced the conclusion of cooperation agreements with the Comoros National Investment Promotion Agency (ANPI – Invest in Comoros), the Kenya Private Sector Alliance (KEPSA) and the Kenya Association of Manufacturers (KAM), aimed at accelerating intra-African trade and investment.

The agreements, signed seek to deepen collaboration with the institutions through sharing of ideas, exchange of business-oriented information to facilitate trade and investment, business matchmaking, grants, training, technical assistance and capacity building, inter-institutional cooperation and other agreed activities.

They are intended to increase the impact of Afreximbank’s TRADAR Club, a member-driven network set up to empower international businesses and executives to transform trade and investments in Africa through trusted trade intelligence and advisory services.

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

Winners of Africa Women Innovation and Entrepreneurship Forum (AWIEF) Awards 2023 Announced

The Africa Women Innovation and Entrepreneurship Forum (AWIEF) (www.AWIEForum.org) has announced the winners of the 2023 AWIEF Awards during a glamorous awards ceremony that took place on Friday night in Kigali, Rwanda.

Many inspirational and outstanding African women entrepreneurs excelled this year in creating opportunities and positively impacting lives and communities, driving growth for Africa. Out of the 24 powerful women founders and entrepreneurs selected in September as top finalists by an international and independent panel of judges, 8 winners were announced at the awards ceremony that took place at Kigali Convention Centre, Kigali. The 24 top finalists represented women founders operating in a diverse range of sectors from 14 African countries: Cameroon, Egypt, Ethiopia, Kenya, Morocco, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Tunisia, Uganda, Zambia, and Zimbabwe.

The AWIEF Awards ceremony and gala dinner was a culmination of a highly successful two-day AWIEF2023 Conference that attracted more than 500 delegates from over 50 countries, 41 of them African countries. Each year the AWIEF Awards recognise, honour, and celebrate outstanding women entrepreneurs and business owners in Africa and across industry sectors, for their economic performance and contribution to Africa’s growth and social development.

This year’s event unveiled the inaugural AWIEF Lifetime Leadership Award. This award was bestowed on Fatma Samoura, FIFA Secretary General, in recognition of her outstanding leadership and contributions to the world of sports. It was also a tribute to her inspiring impact and accomplishments on a global scale, as the first non-European, the first African and first-ever female to lead FIFA as Secretary General in its 116-year history.

“What an honour to receive the inaugural AWIEF Lifetime Leadership Award. This award is not just for me, but all the people who have dedicated their lives to our game and helped us transform women’s football over the last few years. They have created a beautiful legacy – a FIFA that is focused on football and is respected by international organisations, and a sport that captures the hearts and minds of boys and girls around the world and brings them joy and happiness,” said Ms Samoura.

“We have given more girls and women the chance to play football, even in countries where it would have been considered almost impossible only a few years ago.” Going further in her acceptance speech, Ms Samoura urged women to “invest in African football” as it offers a huge untapped potential.

She said, “Then of course, you women need to invest in football. I will be retiring peacefully in my beautiful country Senegal if at least I got a phone call, by the next Women’s World Cup from many of you saying: ‘Madam, because we saw you in Rwanda and decided to invest in football, today we are club owners.’ So, the ball is in your court, make it happen because you have many talents.”

“Remember one thing: football is the future for Africa, football is the future for building peace across the world. Football is a universal message, football is something that transmits love that gives mind that also transcends borders and brings people together.”

Irene Ochem, AWIEF Founder and CEO, in her AWIEF Awards 2023 ceremony and gala dinner opening remarks said, “Fatma Samoura has shown exceptional leadership in such a male-dominated sector as sports, and in particular, football. She is an inspirational role model for us other women, and we are truly excited about honouring and celebrating her tonight.”

The Winners of AWIEF Awards 2023 are:

YOUNG ENTREPRENEUR AWARD

Salamba Diene, CEO, Biosene Sarl, Senegal

TECH ENTREPRENEUR AWARD

Kidist Tesfaye, Founder & CEO, YeneHealth, Ethiopia

AGRI ENTREPRENEUR AWARD

Nonopa Tenza, Founder & MD, Kevinot Farming, South Africa

ENERGY ENTREPRENEUR AWARD

Ifeoma Malo, Co-Founder & CEO, Clean Technology Hub, Nigeria

CREATIVE INDUSTRY AWARD

Yasmina Belahsen, Founder, MayaDigital, Morocco

SOCIAL ENTREPRENEUR AWARD

Mundih Noelar Njohjam, Medical Doctor, Epilepsy Awareness, Aid & Research Association, Cameroon

EMPOWERMENT AWARD

Zulfat Makarubega, Founder, University of Tourism, Technology & Business Studies, Rwanda.

LIFETIME ACHIEVEMENT AWARD

Dalia Ibrahim, CEO, Nahdet Misr Publishing House, Egypt.

Ecobank was AWIEF Awards 2023 sponsor for the Empowerment Award category.

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

“Inequality Breeds Poverty And Threatens Peace”

The President of Ghana, Nana Addo Dankwa Akufo-Addo

– President Akufo-Addo

The President Ghana, Nana Addo Dankwa Akufo-Addo, has urged global leaders help ensure that the progress of the West does not occur at the perpetual expense of Africa and other poor parts of the world. He made this known while speaking at the sixth edition of the Paris Peace Forum on Friday, 10th November, 2023, in France, President Akufo-Addo, in pointing out the unjust situation asked, to a resounding applause, if it necessary for prosperity in Europe, and in the West, including parts of Asia, to be predicated on poverty in the rest of the world; in Africa and other parts.

He solicited the minds of the gathering to consider the necessity of living side by side, where “we can contemplate a world whereby all of us can live together on this planet in relative comfort, and that some people will not live in super comfort and other people in super poverty,” and said “that challenge to the thinking and the mindset of people, is something that in our generation we have to address.”

Continuing, he said “is it possible for us to create a world where all of us live together on this planet in relative ease? The resources of the world are there, never has there been a time where there has been greater abundance of technology, of wealth; development that we are seeing in many parts of the world, do they have to be restricted to those parts of the world or they can be made in a universal and a global phenomenon?

President Akufo-Addo implied that, with the pursuit of peace primarily premised on shaping age-old imbalances across the world, “these are some of the matters that we are going to have to look at, because if we are going to solve these multifaceted problems, and put ourselves in a position to hand over to the next generation and succeeding generations, a more constructive and better world, we have to deal with these questions.”

He noted further that the multiplicity of the issues confronting the world also requires a multiplicity of responses, stressing that at the heart of all of these responses is a very simple, ancient issue, money.

“It doesn’t change, from century to century, generation to generation, access to capital and to money, and I think that a lot of our energies we are looking at, is how we can frame a new arrangement where the multilateral institutions like the Bank, like the Fund, can play in the process of mobilising the greater resources that the world needs for its development,” he said.

The President has been discussing a wide range on issues including climate action where he defended the constrained position of Africa after being told that some of Africa’s most important resources can no longer be deployed for her development.

He said, “if, indeed, we are being told that these resources that have helped develop other parts of the world are no longer going to be available for our development, how then do we make the transition to the new source of power and development? That our oil, our gas resources which are there in abundance, can no longer be deployed because of its impact on climate change, is a critical issue we have to look at.”

Making a case for innovative, eco-friendly deployment of these resources in a concerted approach to the climate question, President Akufo-Addo indicated that, in respect of whatever reasons are being advanced for this move, the resources for African states, “are not just there, so we have to address the issue of financing the resources for the climate transition in our parts of the world. And even if it is going to be a just and equitable transition, some position has to be found for the manner in which we can then maximumly utilize the resources that we do have.”

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

AfCTA Can Help Africa Break Colonial Trade Legacies Says Okra

A former president of African Export and Import Bank, Afreximbank, Mr. Jean Louis Ekra has said that the African Continental Free Trade Area (AfCFTA) can break Africa’s colonial legacy of exporting raw materials and importing finished goods. Mr. Ekra who is presently the Deputy Chairperson of the Intra-African Trade Fair (IATF2023) Advisory Council said today as the Trade and Investment Conference of IATF2023 began in Cairo. Mr. Ekra, who was delivering an opening statement, pointed out the unsustainability of African economies relying on natural resources and commodities, saying that this dependence made them vulnerable to adverse trade shocks, liquidity constraints and macroeconomic management challenges. Arguing that the situation needed to be addressed urgently, especially as it had worsened the effects of the COVID-19 pandemic, geopolitical tensions and climate change, he said that “AfCFTA cannot fail, especially given that intra-African trade is estimated at 16 per cent” which was a level of trade that compared unfavourably with other regions. Mr. Ekra said that the low level of intra-African trade was explained by constraints such as limited trade and infrastructure including payments and settlement systems, lack of access to relevant market information, limited knowledge about business, sustained investment opportunities and limited platforms to connect buyers and sellers.

He urged African countries to recognise that the AfCFTA was the missing link the continent needed and that it presented many trade and investment opportunities in manufacturing, export development, SME promotion and trade in services.
Also speaking, Ali Basha, Minister Plenipotentiary from Egypt, welcomed guests to the conference and said that the panels hosted as part of the conference should not be missed. He urged all African nations to “work hand-in-hand to address the challenges of trade integration.”
The ceremony showcased a hologram of Kwame Nkrumah, a former President of Ghana and a major advocate for African unity.

In subsequent panels discussions, attendees heard contributions on a wide range of topics, including energy transition and industrialisation in Africa, transforming the manufacturing sector and promoting diversification of African trade. During a panel on energy transition and industrialisation in Africa, Dr. Ainojie Irune, Chief Operating Officer of Oando Energy Resources, emphasised the need for African leaders to be more impatient about developing the continent, arguing that energy was crucial to Africa’s development and the transition should benefit Africa where 40 per cent of the population live without electricity.Ms. Helen Brume, Afreximbank’s Director of Projects and Asset Based Finance, said that any discussion about transitioning to cleaner energy sources must consider that 600 million Africans still lacked access to electricity while 900 million do not have access to clean energy sources for cooking.
During a panel on transforming Africa’s manufacturing sector, Olukayode Pitan, former CEO and Managing Director of Bank of Industry, Gagan Gupta, Founder and CEO of ARISE Integrated Industrial Platform, Manuel Mota, Deputy CEO of Mota-Engil, and Brian Deaver, CEO of the African Medical Center of Excellence, deliberated on the importance of establishing connectivity in Africa’s supply chains. They agreed that such a transformation would significantly improve the lives of Africa’s 1.5 billion inhabitants.

According to them, with the key to a thriving manufacturing sector being dependent on African talent, investing in their education and training was crucial.
A highlight of the day was the launch of the impact evaluation report of the US$19-billion Dangote Refinery and Petrochemical Complex in Nigeria by Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank. Emeka Uzoigwe, Acting Director of Strategy and Innovation at Afreximbank, who noted that the complex was launched in 2018, emphasised the importance of the project’s insights for other African businesses as it had the potential to transform not only Nigeria but the entire West Africa.
The Trade and Investment Conference is a component of IATF2023, Africa’s largest trade and investment fair. It aims to optimise access to Africa’s connected markets through the AfCFTA. The trade fair 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

Afreximbank’s Executive Vice President, Mrs. Kanayo Awani, Elected to FCI Executive Committee (EXCOM)

Mrs. Kanayo Awani, Managing Director of Afreximbank’s Intra African Trade Initiative

Afreximbank’s Executive Vice President in charge of Intra-African Trade Bank, Mrs. Kanayo Awani, has been elected to the Executive Committee (EXCOM) of FCI, the global representative body for the factoring, invoice financing and asset-based lending industry. Mrs. Awani was unanimously elected at FCI’s 55th Annual Meeting in Marrakech, Morocco on 2nd of November 2023 to represent FCI’s Affiliate Members.

Mrs. Awani, whose candidacy was supported by Afreximbank was selected alongside Ms. Doaa Hafez, General Manager and Head of Technical Functions at Egypt Factors, making this the second time two delegates from Africa are voted into the FCI Executive Committee. Their election strengthens Africa’s position in the world’s leading factoring body and is a recognition of the increasingly important African market. “I’m honoured to contribute in shaping FCI’s strategy for the increasingly important African market; serve as a valuable resource for FCI Members seeking to enter the African market; provide the trust and confidence emerging African Factors require at the early stages of factoring and thereby continue to help boost the overall FCI global influence and membership,” said Mrs. Kanayo Awani.Mrs. Awani’s election is also a recognition of Afreximbank’s efforts in promoting factoring in Africa.

Prof. Benedict Oramah, President of the African Export-import Bank

Over the years, the Bank has built a strong bond with FCI, supporting the growth of factoring in Africa, nurturing the Africa Chapter and significantly increasing its membership. Afreximbank has initiated innovative programmes to promote factoring in Africa, including the development and promotion of a factoring model law, which has now been adopted by six countries and is now being considered by the parliaments of several African countries including Senegal and Nigeria. In addition, Afreximbank has supported factoring transactions of up to USD 100 million in the last five years and has leveraged its influences to attract grant capacity from the African Development Bank (AfDB) and other partners towards capacity building of African Factors.

With more than 400 members in 90 countries, FCI offers various solutions for cross-border receivables finance as well as a unique network for cooperation in international factoring. It helps its members to develop international trade and finance business. Transactions by FCI members represent nearly 90% of the world’s factoring volume.

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

Kenyan President Says Saudi Arabia is an Important Partner in Energy and Trade

President William Ruto has called for enhanced collaboration between Saudi Arabia and Africa in the development and sustainable exploitation of clean energy.

The President observed that the combined hydrocarbon and green energy resources of Africa and Saudi Arabia hold enough promise to meet current and future global energy demands.

“If we work together, we can provide the world with effective solutions to the global climate crisis,” added.

He made the remarks at the in Riyadh, Saudi Arabia.

The Head of State said Africa is keen on forging a stronger trade and investment partnership with Arab nations to foster regional and global stability.

He appealed to Arab nations to explore investment opportunities in the African Continental Free Trade Area agreement and make Kenya their gateway.

“This emerging market is hungry for development and abounds with attractive investment opportunities,” he added.

To cultivate skilled workers, promote sustained productivity and competitiveness, the President underscored the need for partnership in education, training and human capital development.

He proposed that Africa and Saudi Arabia work together to confront contemporary security threats and outbreaks of conflict and war in neighbouring states.

“I see great potential for us to strengthen our complementarity in this sphere and institute a vast belt of peace, security, stability and prosperity covering the Middle East and Africa,” he said.

Present were Saudi Arabia’s King Salman bin Abdulaziz al Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, Comoros President and Chairperson of the African Union Azali Assoumani, Secretary-General of the Arab League Ahmed Aboul Gheit and Chairperson of the African Union Commission Moussa Faki.

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 EdTech AKHDAR Gains Major Investment Boost from Saudi Venture Studio

Egyptian edtech startup AKHDAR has successfully secured a six-figure USD funding round from the Saudi Arabia-based venture studio “Value Maker Studio (VMS)” to facilitate its expansion into the Kingdom.

AKHDAR, a prominent edtech startup, specializes in providing a unique service through Arabic audiobook summaries. What originated as a YouTube channel in 2016 swiftly transformed into a robust entrepreneurial venture, culminating in the launch of its independent platform in 2020. Since then, AKHDAR has achieved significant traction, boasting over 2 million app installations and a user base comprising 1.5 million individuals hailing from 174 different countries.

Mohamed Osama, co-founder and CEO of AKHDAR

Through the AKHDAR platform, users can access concise 15-minute audio summaries of their favorite books, offering a convenient and time-efficient means of consuming educational content. The extensive library includes over 2500 audio materials, such as book summaries, short casts, and book reviews.

Meanwhile, VMS is a venture studio that amalgamates diverse talents, resources, and ideas to transform innovative concepts into flourishing businesses. Its mission is to actively empower exceptional entrepreneurs, drive technological innovation, foster job creation, and establish a strategic foothold within the Saudi market. The company is set to launch its “Bridge Programme” early next year, designed to assist Egyptian tech startups in seamlessly expanding into Saudi Arabia. It is within this framework that VMS has invested a six-figure sum in AKHDAR.

Mohamed Osama, co-founder and CEO of AKHDAR, expressed enthusiasm about the successful completion of their bridge round investment, led by VMS under the ownership of Moatz Abo Onuq. He highlighted the strategic partnership’s significant support for their expansion plans in the GCC region, with a specific focus on Saudi Arabia. Additionally, the investment will enable them to fuel their growth and enhance their technology to effectively address challenges faced by today’s learners.

Moatz Abonouq, CEO and Founder of VMS, emphasized that AKHDAR’s vision aligns with their commitment to advancing education. He expressed excitement about supporting AKHDAR’s strategic expansion, enhancing technological capabilities, and fostering partnerships in Saudi Arabia and the GCC. Empowering learners through innovative edtech solutions, he stated, is a shared goal, and they look forward to the transformative impact ahead.

Shady Ahmed, co-founder and CCO, outlined the primary objectives for this investment round, emphasizing the pursuit of strategic expansion opportunities, the strengthening of their presence, and the establishment of partnerships in Saudi Arabia and the GCC. He reiterated their commitment to continuous technological advancements to enhance the platform’s features and capabilities, ensuring an immersive and personalized learning experience for users. Moving forward, AKHDAR remains dedicated to empowering learners, providing them with a transformative edtech solution that facilitates knowledge acquisition and personal growth.

Inside Spark Accelerator: A New Startup Accelerator Program Backed by Safaricom

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

Navigating Debt Funding: African Founder Shares Important Insights for Finding the Right Funder

November 12, 2023

As an increasing number of African startups turn to loans when equity funding becomes challenging to secure, there is often limited discussion about the terms that founders encounter during negotiations. A recent case shed light on the nature of these loan agreements when WiSolar, a leading green digital utility startup, turned down a $1.5 million loan from the Industrial Development Corporation (IDC) of South Africa. WiSolar voiced concerns about terms that could hinder their growth and compromise their objectives.

WiSolar, led by its founder and CEO, Tonye Irims, took a stand against terms that raised concerns about potential hindrances to their growth and compromise of their objectives. The loan, issued under the Energy Resilience Scheme, featured terms such as a terminal drawing date of March 31, 2025, monthly annuity installment repayments from the draw date, and a ten-year term.

Irims emphasized the need for founders to negotiate debt funding agreements more favorably. In this report, he shares insights into what constitutes a well-negotiated agreement and outlines key considerations for founders navigating the complex terrain of debt financing.

Mission Alignment as Non-Negotiable: Irims firmly states that while “lack of funding continues to be the biggest reason for talent flight and unhygienic job creation in Africa,” the criticality of mission alignment when seeking debt financing cannot be overemphasized. To this effect, he stresses the need for founders to scrutinize funding offers, rejecting any that could compromise the core mission of their companies, thereby safeguarding long-term sustainability and impact.

Building Respectful Partnerships: Addressing a patronizing relationship with funders, Irims suggests founders seek respect in their dealings. This recommendation implies a call for collaborative partnerships where both parties value and respect each other’s perspectives. Building respectful relationships is foundational for fostering a positive and conducive environment for growth.

Balancing Transparency and Confidentiality: Irims emphasizes the importance of funding aligned with the company’s objectives while cautioning against unnecessary exposure of sensitive information. Founders can interpret this as an indirect recommendation to carefully negotiate terms that strike a balance between transparency and confidentiality, safeguarding the startup’s competitive edge.

Value-Added Investments: Criticizing the IDC’s approach as merely providing funding without added value, Irims advocates for more comprehensive partnerships. Founders are encouraged to seek lenders who bring strategic insights, industry expertise, and networks to the table, enhancing the startup’s growth potential beyond financial backing.

Simplifying Interest Structures: While not directly advising, Irims critiques the complex interest structure, suggesting a preference for clarity. Founders can infer the importance of negotiating for straightforward interest rates and fee structures to ensure financial transparency and mitigate potential challenges in financial management.

Critical Evaluation of Additional Agreements Incorporated by Reference into the Main Agreement: Irims underscores the need for founders to meticulously assess any additional agreements referenced within the main loan agreement. By critically evaluating these components, founders can ensure a comprehensive understanding of all terms and potential implications for their business.

Incorporation of Local Law Requirements: Irims raised concerns about potential drawbacks of incorporating local law requirements, such as local component or local content requirements, implying that founders should critically assess the impact on operations. He recommends negotiation for terms that support compliance with local laws without compromising operational flexibility.

Flexible Fund Withdrawals: Voicing concerns about restrictive fund withdrawal conditions, Irims implies the necessity for flexibility. Founders are suggested to negotiate withdrawal conditions that are reasonable and align with the company’s operational needs, ensuring timely access to funds when necessary.

Post-Term Planning: The absence of information on post-term scenarios is highlighted by Irims as a concern. Founders are indirectly urged to negotiate for clarity on what happens after the loan term ends, enabling effective long-term strategic planning and avoiding uncertainties in the post-loan period.

WiSolar, founded in 2016, is a South African-based on-demand digital solar company. It operates uniquely as the only company offering prepaid solar for residential use in South Africa. Employing a Power Purchase Agreement (PPA) business model, WiSolar installs and maintains solar systems on customers’ homes, selling power through an app based on consumption. This model allows property owners to adopt solar without upfront costs. WiSolar’s innovative approach is available in South Africa and Nigeria, with plans for expansion into Zimbabwe and Rwanda.

Loans African Startups Loans African Startups Loans African Startups

Group Commits $3 Billion Investment to Boost African Agriculture and Food Production

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

Inside Spark Accelerator: A New Startup Accelerator Program Backed by Safaricom

November 11, 2023

African-tech-startup-funding-rises-51-to-195M-in-2017

In a strategic move to foster innovation and address the funding gap in Kenya’s burgeoning startup ecosystem, Safaricom, Kenya’s largest telecommunications carrier, has announced the launch of Spark Accelerator. This initiative, a collaboration between Safaricom, Sumitomo Corporation, and Vodafone, is specifically designed to accelerate startups in the fintech field, leveraging the strengths of the three companies to create a new digital economic zone in Africa.

Objectives of Spark Accelerator:

Identifying and Supporting Startups: With over 1,000 startups emerging annually in Kenya, particularly in fintech, Spark Accelerator aims to discover and support promising ventures. The accelerator program focuses on creating a conducive environment for the growth of innovative fintech solutions that can address the challenges in Africa’s financial services landscape.

Collaboration for Innovation: The program seeks to combine Safaricom’s extensive telecommunications network, Sumitomo Corporation’s business experience, and Vodafone’s global expertise to collaboratively create innovative businesses. The focus areas include e-commerce, insurance, education, and entertainment, with the goal of expanding digital financial services across Africa.

Building a Digital Economic Zone: Through Spark Accelerator, the three companies envision the establishment of a new digital economic zone in Africa. The initiative aims to contribute to the overall development of the African economy, human resource development, and improving the quality of life for people.

Payment Situation in Africa:

The initiative recognizes the challenges in Africa’s financial landscape, including limited banking networks and low payment convenience. Through the use of fintech, particularly mobile money services like M-PESA, the program aims to provide access to financial services, including installment sales, and contribute to the economic growth of the region.

Strategic Partnerships and Collaborations:

Sumitomo Corporation and Vodafone Collaboration: The collaboration between Sumitomo Corporation and Vodafone, initiated in November 2020, has expanded into Africa, focusing on telecommunications and fintech. Notably, Safaricom Ethiopia and investments in companies like DABCO and M-KOPA highlight the commitment to advancing digital and financial solutions.

Continued Collaboration: Spark Accelerator marks the third collaboration with Vodafone, emphasizing ongoing efforts to leverage business bases and knowledge in Europe and Africa. The goal is to address social issues and contribute to local community and economic development.

Venture Capital Firms and Safaricom’s Strategic Moves:

Formation of Venture Capital Firms: Safaricom’s recent announcement of two venture capital firms signals a shift from its existing Spark Fund grant. The firms, focusing on both seed-stage and growth-stage startups, aim to address the funding shortage that has led to startup closures in Kenya.

Financial Support for Startups: The incorporation of a company limited by guarantee for seed-stage startups and a private limited company for growth-stage startups demonstrates Safaricom’s commitment to supporting technology entrepreneurs. The proposed subsidiaries aim to generate financial returns, with profits being reinvested into Safaricom PLC.

Spark Accelerator, backed by Safaricom, Sumitomo Corporation, and Vodafone, presents a comprehensive approach to foster innovation in Africa’s fintech sector. The initiative not only aims to support startups but also envisions the creation of a new digital economic zone, contributing to the economic development and improved quality of life in the region. Additionally, Safaricom’s strategic moves with the formation of venture capital firms reflect a commitment to addressing the funding gap and nurturing the growth of technology startups in Kenya’s dynamic ecosystem.

Kenyan Telco Safaricom Establishes Two VC Arms to Invest in Local Startups

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