Blog - Afrikan Heroes

Egypt’s Fawry Partners with MoneyHash to Unleash Digital Payment Innovation

November 6, 2023

Fawry, Egypt’s leading provider of electronic payment and digital financial services, has joined forces with ‘MoneyHash,’ a comprehensive payment and revenue operations platform serving the Middle East and Africa. This partnership simplifies the complex process of establishing, optimizing, and expanding payment infrastructure, tailor-made to the unique payment landscape of these regions. The collaboration offers significant growth opportunities for businesses at various stages of development.

By harnessing MoneyHash’s innovative payment orchestration capabilities and Fawry’s established expertise in payment gateways, merchants can expedite their market entry strategies, reduce losses from fraudulent transactions, and improve their checkout processes to boost conversion rates.

Customers will also have the opportunity to streamline and automate their payment procedures, resulting in enhanced user experiences, fewer payment failures, and more effective risk management.

Together, ‘Fawry’ and ‘MoneyHash’ will provide premium technical support services delivered by a team of experts. Furthermore, users can take advantage of exclusive discounts when using “Fawry” electronic payment channels through MoneyHash.

Mohamed Kamel, Head of Acceptance and Business Development at ‘Fawry,’ expressed his enthusiasm about collaborating with ‘MoneyHash,’ emphasizing that this partnership adds significant value to the electronic payments market and the field of banking technology. He affirmed that this cooperation will accelerate the pace of digital transformation and promote financial inclusion in the Egyptian market by offering advanced digital services and payment solutions.

Nader Abdel Razek, CEO of ‘MoneyHash,’ shared his excitement about working with the Fawry team to deliver the best payment experience to merchants in Egypt and around the world. He noted that this featured integration will offer special rates, premium support, and coordinated technical innovation. This collaboration with a market leader like Fawry underscores both companies’ dedication to modernizing payment infrastructure in emerging markets.

Fawry is Egypt’s largest e-payment platform, serving both banked and unbanked populations. The platform facilitates electronic bill payments, mobile top-ups, and various other digital services, including e-ticketing and cable TV. Fawry enables corporations and SMEs to accept electronic payments through various platforms such as websites, mobile phones, and POS terminals. With a network of 36 member banks, over 310,000 agents, and a mobile platform, Fawry processes an average of 4 million transactions daily, serving an estimated customer base of 50 million users quarterly.

MoneyHash is the Middle East and Africa’s first all-in-one flexible payments and revenue operations platform, catering to all your payment needs. Their mission is to empower businesses in emerging markets by simplifying the complexity of building and maintaining payment infrastructure, flows, and operations.

The platform equips businesses with the tools and microservices to connect with payment service providers, create payment features, establish and manage transaction routing and recovery rules, and centralize reporting with no need for complex coding or operations.

South Africa’s Xpand IT Invests in Future Growth with Majority Stake in Premier IT Solutions

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

My Victory Will be a Victory for the New Patriotic Party (NPP) – Bawumia

The Ghanian Vice President Dr. Mahamudu Bawumia says his anticipated victory in Saturday’s NPP flagbearership contest, will be a victory for the entire NPP party. The NPP brings a hot contest, which started with 10 people, to a close on Saturday, with 4 people left in the race.

Vice President Bawumia is widely tipped to emerge victorious with a wide margin, and ahead of the elections, he said it will be a victory for all because it is an internal election to choose a leader for the party.

“Throughout my campaign, dear friends, I also stressed on the need for a decent campaign devoid of rancour, in order to preserve the unity of our party. I demonstrated this value, by embarking on a campaign devoid of insults and personality attacks. As I stressed throughout my interactions with delegates across the country, I am committed to the unity of the NPP, and I as the party’s flagbearer, will bring everybody on board,” Dr. Bawumia said.

“We are a party of different people from different backgrounds with different preferences. But in our differences we are indivisible. With this in mind, I have been presenting a message that fosters unity, inspires hope and confidence, and positions the NPP as the best to lead Ghana.”

After an intense campaign, which took him to constituencies across the country, he expressed optimism that he will be victorious on Saturday – a victory he said “will be for the NPP.”

“Throughout the process, I have come to know the party people even better. There are many fond memories of this journey that will go a long way to deepen the respect, love and harmony between me and the party people.”

“Having put up a spirited campaign backed by a dedicated team of brilliant and hardworking young men and women across the country, I have nothing but absolute confidence that I will be victorious on Saturday, November 4th. And my victory will be the victory for the NPP.”

Dr. Bawumia used the occasion to express gratitude to NPP delegates and all party stakeholders across the country for their warm welcome during his interactions with them at their various constituencies.

He also thanked the media for their professional coverage of his campaign since he announced his candidature.

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

World Food Programme Makes Urgent Plea for Safe, Expanded Humanitarian Access to Gaza

The United Nations World Food Programme (WFP) Executive Director, Cindy McCain issued an urgent plea from the Rafah border crossing for safe, expanded humanitarian access to Gaza as humanitarian needs skyrocket and critical food supplies reach dangerously low levels.

For the past few weeks, entry points into Gaza have been virtually sealed except through the Rafah border crossing point. While there has been a steady increase in aid entering Gaza, it is nowhere near enough to meet the exponentially growing needs.

“Right now, parents in Gaza do not know whether they can feed their children today and whether they will even survive to see tomorrow. The suffering just meters away is unfathomable standing on this side of the border,” said Cindy McCain as she returned from the Rafah border crossing in Egypt.

“Today, I’m making an urgent plea for the millions of people whose lives are being torn apart by this crisis,” she added.

McCain is concluding a two-day visit to Egypt, during which she met with Egypt’s President Abdel Fattah El-Sisi, senior government officials, and visited the Egyptian Red Crescent’s humanitarian staging hub in Al Arish. She also inspected the rapid expansion of logistical operations and monitoring systems at the Rafah border crossing, which are crucial for providing vital assistance to people within Gaza.

“We appreciate all efforts to facilitate a steady flow of humanitarian supplies through its border with Gaza, and the work of the Egyptian Red Crescent is remarkable. We need to continue to work together to get safe and sustained access to Gaza at a scale that aligns with the catastrophic conditions facing families there,” McCain noted.

During her visit, McCain explored opportunities for WFP to leverage its extensive expertise in logistics during emergencies to further strengthen collaboration with partners such as the Egyptian Red Crescent to scale up the delivery of humanitarian aid into Gaza. She applauded the efforts of their volunteers who have worked tirelessly to get lifesaving assistance to their neighbours.

“The crisis in Gaza is not just a local tragedy, it’s a stark reminder that our global food crisis is worsening. Not only does this crisis threaten regional peace and stability, it undermines our collective efforts to combat hunger worldwide,” McCain noted.

WFP is scaling up to reach more than one million people with urgent food assistance in the next few weeks. More than 650,000 people in Gaza and the West Bank have received food and cash assistance from WFP since 07 October. WFP is distributing fresh bread, date bars, and canned food to families in UN shelters every day, and food parcels to displaced families in host communities. WFP continues to provide cash-based transfers to people residing in communities so they can buy the food available in shops that are still open.

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

“432kms of Roads Constructed in Volta Region Unprecedented” – President Akufo-Addo

The President of Ghana, Nana Addo Dankwa Akufo-Addo

The President of the Republic of Ghana Nana Addo Dankwa Akufo-Addo, has disclosed that his Government, since assuming office in January 2017, has constructed an four hundred and thirty-two kilometres of roads, a feat he describes as unprecedented.

The roads include, amongst others, the completion of the dualization of the 22km Ho main road, the 30km Have to Kpando road, the upgrading of the Golokwati -Wli road, resealing of the 15km Asikuma junction to Ho road, regravelling of the 30km Frankadua to Adidome road and the surfacing of the 17.8km Matse-Klave and Lume Atsiame-Avetokoe roads.

Some of the others are the asphaltic overlay on 15km of town roads in Hohoe; bitumen surfacing of the 15.6km Akwetey-Adaklu-Waya feeder road; bitumen surfacing of Bume-Danyigba-Anfoega road; Danyigba Town Roads, Dra-Sabadu road, and Bume-Agata road; bitumen surfacing of the 12km Yorkitikpo-Kpoviadzi-Trepe road; as well as the bitumen surfacing of the 9.7km Mafi-Adadepo, Wute/Yorkitikpo and Kpoviadzi feeder roads; bitumen surfacing of the 9.7km Liati Agbonyira-Fodome-Ahor road; and the upgrading of 2.5 km Klefe town roads.

President Akufo-Addo made this known when he joined the Chiefs and people of the Anlo Stateat a grand durbar to mark the celebration of the 2023 edition of the historic Hogbetsotso festival, on Saturday, 4th November 2023, at Anloga in the Volta region.

According to President Akufo-Addo, work is also steadily ongoing on the 5.3km Ho By-Pass dualisation project which stands at 37% complete, as is work on the upgrading of 8km of selected roads in Ketu South, which is 48% complete.

Touching on the Eastern Corridor Roads, the President noted that the work that has been undertaken are in sharp contrast to what had been done at the end of 2016, which saw only 135km of Eastern Corridor Roads, representing 27%, in good condition before he came into office.

“As at the end of 2022, 366 kilometres, that is 74% of the Corridor had improved from poor to good state. This has had a positive impact on the movement of goods and people along the corridor,” he added.

The President noted further Government has cancelled the contracts awarded to contractors working on the Aflao – Denu – Dzodze – Ave Afiadenyigba – Ave Dakpa – Ho Road; Denu – Havedzi – Keta road; Srogbe – Anyanui road; Agortoe Junction – Tregbui – Adutor road; Anyako – Seva road; and the Weta – Metsrikasa road.

He explained that “most of the contractors, however, failed to carry out the works. The Ministry of Roads and Highways has, thus, decided to terminate the current contracts and re-package them for award. In the short term, the mobile maintenance unit of the Ghana Highway Authority will be deployed to undertake emergency maintenance of the very critical sections of these roads.”

In addition to these, President Akufo-Addo told the gathering that government has also secured funding of US$89 million from the African Development Bank towards the construction of the 29.35 km Asutsuare Junction – Volivo road, the 39.2 km Dufor Adidome- Asikuma Junction Road, the 23.9km Asutsuare Junction – Aveyime road, and two (2) Interchanges at Dufor Adidome and Asikuma Junction.

Procurement processes, he explained, are currently on-going and work expected to start by the first quarter of 2024.

Kelechi Deca

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

South Africa’s Xpand IT Invests in Future Growth with Majority Stake in Premier IT Solutions

November 5, 2023

Xpand IT, a company specializing in IT managed services with its headquarters located north of Johannesburg, has successfully acquired Premier IT Solutions, an IT support firm situated in the East Rand region. The financial details of this acquisition remain undisclosed.

In a recent statement, Xpand IT announced the acquisition of a majority stake in Premier IT Solutions, marking a significant step towards Xpand IT’s future growth objectives and reaffirming its commitment to enhancing the overall customer experience. Brett Scott, Managing Director of Xpand IT, explained, “While our main office is based in the northern part of Johannesburg, our intention was to expand our presence to the east of the city. This strategic move aligns perfectly with our overarching business strategy, which aims to expand our national footprint and provide broader customer coverage through the establishment of multiple branches, both domestically and internationally.”

Brett Scott, Managing Director of Xpand IT

With over a decade of experience and strong local relationships in the East Rand area, Premier IT Solutions brings a valuable dimension to Xpand IT’s positioning in the market, according to Scott. Neil Sears, the owner of Premier IT Solutions, expressed his enthusiasm about the partnership: “We are excited to join forces with Xpand IT, a company renowned for its expertise in support and cybersecurity. This collaboration enables us to enhance our existing client relationships and offer a wider range of services.”

Xpand IT anticipates that this acquisition will benefit both its existing and potential clients. The expanded geographical footprint is expected to enhance service accessibility. The company aims to leverage its strengths to bring additional services and operational efficiencies to Premier IT Solutions’ client base.

Looking ahead, Xpand IT has ambitious growth plans and is actively seeking partnerships in various locations, including Bloemfontein, Kimberley, Mbombela (Nelspruit), Paarl (Winelands), Polokwane (Pietersburg), Rustenburg, Gqeberha (PE), Gaborone, and Windhoek.

Norrsken22 Debut Fund Surpasses Expectations, Secures $205M for African Tech 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

Quenching a Thirst – Beverages in Africa

November 4, 2023

Africa has a vibrant beverage culture that is evolving at pace. On the one hand, offering a wider selection of drinks that cater to new shopping behaviours, and on the other opening up exciting opportunities for local producers, entrepreneurs, and multinational beverage companies looking to tap into this diverse marketplace.

Smollan representing some of the world’s most loved FMCG and commerce brands dips into the types of distribution channels for beverages in Africa, and a few of the challenges and opportunities that keeps the industry on its toes.

As retailers explore the intricacies of beverage distribution in Africa, this space has experienced significant changes and growth in recent years. To give one a sense of direction, if one looks purely at the alcoholic drinks market in Africa, according to Statista, revenue is set to amount to US$93.24bn in 2023 and expected to grow annually by 7.32% between 2023 and 2027.

Leading up to this, the most notable shifts have been seen in the rise of modern retail formats, such as supermarkets and convenience stores, which have become increasingly popular in urban areas. These retailers offer a wide range of beverage options, including both local and international brands to meet the demands of a diverse consumer base. So too, ecommerce has taken off gaining traction in Africa, enabling shoppers to order beverages online especially beneficial in areas with limited access to physical stores.

Furthermore, there has been a rise in specialised beverage stores and cafes that focus on specific types of drinks from coffee shops offering artisanal brews or traditional teas. It’s all about connecting with customers in new ways by creating unique experiences where enthusiasts can explore different tastes and sensory pleasures and appreciate different beverage cultures.

So how do these new moves to quench a thirst in Africa relate in terms of distribution and the supply chain and what are some of the opportunities and challenges faced within this evolving space?

Warren Brett Cluster Executive, SEA Region, Smollan said, “First and foremost, kudos must go to the wholesalers and distributors, who are the amazing unsung heroes of beverage distribution in Africa. Intermediaries responsible for getting the job done well within the context of fragmented retails networks and complex marketplaces. Working with infrastructure issues, logistics, inadequate cold chain facilities and red tape, they enable and unlock exciting opportunities for growth in this sector.”

Within this unique at times fragile African context understanding the nuances of distribution channels is key to unlocking growth and establishing a strong market presence.

Traditional distribution channels

These markets play a vital role, especially in regions with limited access to modern retail outlets. The variety at roadside vendors and in village marketplaces, in most instances can be eye-opening – offering locally produced drinks such as palm wine and sorghum beer to bottled water, soft drinks, and alcohol. Where smaller-scale entrepreneurs compete alongside more established multinational brands, making these markets a significant part of the informal economy.

Modern distribution channels

Supermarkets and hypermarkets have grown significantly, primarily due to urbanisation and evolving customer preferences. These urban retail powerhouses have become a fixture in large cities offering a broad selection that includes soft drinks, bottled water, fruit juices and alcohol plus, premium imported brands. Making these outlets key for global brands to reach consumers. In addition, the convenience of air-conditioned shopping spaces, a guarantee of quality and multiple payment options makes for an attractive shopping experience.

Digital distribution channels

As access to the internet improves and smartphone penetration grows on the daily, ecommerce and mobile commerce are gaining traction in Africa. These digital platforms offer extensive product selections that are convenient and cater to busy urban lifestyles. Local retails and manufacturers partner with online marketplaces and delivery services to offer fast, reliable fulfilment for consumers plus, payment options from mobile money to credit and debit cards and cash on delivery.

CHALLENGES THAT BECOME OPPORTUNITIES

Right now, global beverage brands and local and regional producers are making significant inroads in various African markets by blending distribution channels to connect with consumers. Furthermore, local players are often keen to invest in local production to create an advantage in price and route to market. Overcoming the challenges to leverage penetration is key for success. If we look at traditional markets, hygiene, quality control and infrastructure are the most common stumbling blocks. While the growth of modern distribution channels has led to increased competition among beverage brands, making price sensitivity a key factor in purchasing decisions. Alongside this, ecommerce channels need to work around issues such as logistics, infrastructure limitations, and trust-related issues in term of payments, delivery, and accessibility.

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

Africa Finance Corporation Exits Stake in Ghana’s Takoradi Port to Yilport Holding

Banji Fehintola, Senior Director & Treasurer of AFC

Africa Finance Corporation (AFC) (www.AfricaFC.org), the continent’s leading infrastructure solutions provider, has exited its 35% equity investment in Atlantic Terminal Services Limited (ATSL), the concessionaire for the expansion of Ghana’s Takoradi Port, to the global ports and container terminals operator Yilport Holding. This is testament to the Corporation’s ability to attract international 3rd party capital and exit strategic infrastructure assets built by derisking through AFC’s unique project development and construction offering.

In 2019, AFC committed to invest up to US$138 million in equity and debt for the Takoradi Port Expansion Project. The project, which is approaching the operational phase, reduces the cost of imports and exports to and from the western and central regions of Ghana and neighbouring landlocked countries by modernising a container and multipurpose terminal under a 25-year concession for its design, engineering, financing and construction. Through this transaction, AFC exits its shareholding, while Ibistek and Ghana Ports & Harbours Authority remain as shareholders in the project. AFC will continue to be lender to the project, fully committing to ensuring its success

A vital seaport in Ghana’s Western Region, Takoradi plays a crucial role in the nation’s economic growth and regional connectivity. It offers shorter and less-congested links to west and central Ghana, including the Takoradi region, which boasts of substantial agricultural activity including 50% of Ghana’s cocoa production, as well as manufacturing, industrial and business parks, and a growing natural resources sector. The port is also well suited to provide linkages to neighbouring landlocked countries. The project forms part of the country’s national development plan to revitalize and industrialize the western region and enhance Ghana’s overall efficiency and competitiveness by reducing the cost of imports and exports, building local capacity and generating direct employment opportunities.

Samaila Zubairu, President & CEO of Africa Finance Corporation said, “This exit marks a significant milestone for AFC’s impact on the continent and we take pride in our pivotal role in driving the implementation and de-risking of the Takoradi Port Expansion. The project is reshaping West Africa’s economic landscape and partnering with a reputable investor like Yilport Holding aligns with our mandate to catalyse the inﬂow of global investment into Africa to transform supply chains, create local jobs and enable resource beneficiation.”

Yilport Holding, a subsidiary of Amsterdam and Istanbul-based Yildirim Group, has been building world-class, multipurpose port facilities since 2004, with a target to become a top 10 global port operator by 2030. Investment in Takoradi represents an ideal entry point into Africa for Yilport, which plans to transform the port and its adjacent area into a logistics and trading hub, ensuring high volumes of traffic.

“The acquisition of a stake in the Atlantic Terminal Services through AFC’s valued partnership marks a momentous occasion for Yilport Holding,” said Robert Yuksel Yildirim, Chairman and CEO of Yilport Holding. “This serves as a strategic gateway for us to establish our presence in the African market, and it aligns seamlessly with our commitment to fostering world-class logistics and trading hubs on an international scale.”

AFC is focused on developing long term infrastructure solutions that improve the resilience and sustainability of cost-efficient supply chain logistics. In the past year, the Corporation has completed construction of two new ports, Terminal à Conteneurs De Nouakchott (TCN) and the San Pedro (TIPSP) Multipurpose Industrial Terminal in Côte d’Ivoire.

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

Revenue Service Lesotho (RSL) Announces New Requirements for South African Tax Invoice Declaration

The Revenue Service Lesotho (RSL) has announced updated requirements for the declaration of tax invoices from the Republic of South Africa (RSA). Addressing the media at the press conference held in Maseru on Wednesday, the acting Commissioner Client Services, Dr Tseko Nyesemane said the new process aims to enhance transparency and compliance in cross-border tax matters.

Dr Nyesemane said the RSA Tax Invoice Declaration is an essential component of Lesotho’s tax collection system, saying It is designed to ensure that businesses and individuals accurately report and pay their taxes on goods and services imported from South Africa.

Also speaking, the Deputy Commissioner Customs Northern Region, Mr. Tebello Makhechane during the press conference explained the updated requirements for declaring RSA tax invoices. He highlighted the importance of these changes in simplifying the declaration process while maintaining high accuracy and transparency.

Mr. Makhechane said the requirements are terms and conditions that a claim when submitted should have, noting that the announced changes have been there but by agreement between RSL and the South African Revenue Service (SARS) were not enforced since risks of tax fraud did not warrant for them to apply.

He said regarding individual claims amounting to over M250, a person claiming must provide a photocopy of a passport and a copy of entry and departure from South Africa.

He further mentioned that car claims should be registered in Lesotho and have certificates so that they attach a copy of those to the claims.

Moreover, Mr. Makhechane said regarding the commercial, the person who would fill the claim on behalf of the business owner must attach the authorisation letter clearly stating that they are representing that business and are claiming on behalf of the Business.

In conclusion, he noted that these added requirements are to ensure that they curb tax fraught from both countries and those involved in cross-border trade with South Africa, it is essential to familiarise themselves with the updated requirements.

The Revenue Service Lesotho has committed to making this transition as smooth as possible, and its staff will be available to answer questions and provide guidance throughout the process.

The Revenue Service Lesotho’s recent announcement regarding RSA tax invoice declarations represents a significant step towards modernizing the tax system, increasing transparency, and enhancing Lesotho’s revenue collection.

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

Norrsken22 Debut Fund Surpasses Expectations, Secures $205M for African Tech Startups

November 3, 2023

In a significant development for growth-stage investment in Africa, Norrsken22, a Pan-African venture capital firm, has successfully closed its debut fund, surpassing its initial target and raising a total of $205 million. This achievement underscores the strong interest from institutional investors in supporting African startups at a critical juncture in their growth journey.

Established by five individuals with extensive experience in venture capital and private equity, Norrsken22 boasts a distinguished team of founders and partners. The firm’s leadership includes founding partners Niklas Adalberth and Hans Otterling, along with managing partner Natalie Kolbe and general partners Ngetha Waithaka and Lexi Novitske. Operating for nearly two years, Norrsken22 has established operational teams in Nigeria, South Africa, Kenya, and Ghana.

The Norrsken22 African Tech Growth Fund was launched in January the previous year and achieved its first close at $110 million. Notably, approximately 59% of the funding came from a consortium of 30 unicorn founders worldwide, including prominent figures like Olugbenga Agboola, CEO of Flutterwave, Niklas Zennström, co-founder of Skype, Jacob de Geer, co-founder of iZettle, and Niklas Östberg, co-founder of Delivery Hero.

The timing of Norrsken22’s fundraising coincided with a surge in capital inflow into the tech sector. Initially, the firm intended to reach its final close by the end of 2022, engaging in discussions with development finance institutions (DFIs) and family offices, which are typically necessary for raising substantial funds in Africa. However, the global tech investment landscape experienced a pullback, affecting fundraising efforts across the board, including from institutional investors. In 2022, venture capital activity in Africa amounted to $5 billion to $6 billion. In 2023, the figure has decreased to a range between $2.5 billion and $3.4 billion, reflecting the overall decline in VC activity.

Despite the prevailing challenges, Norrsken22 successfully achieved its final close, albeit with a one-year delay. This accomplishment is significant given the obstacles faced by many VC firms, both local and global, in raising or closing their funds. The oversubscription of the growth fund is a remarkable feat, attributed by managing partner Kolbe to a renewed fundraising momentum observed in early 2023. The extensive experience of Norrsken22’s founding team in African investments, combined with the backing of other limited partners, particularly founders of unicorn startups, played a crucial role in garnering interest and support for the fund.

Following the initial fund close, which received support from SEB Pension Foundation and a few family offices, Norrsken22 attracted new limited partners such as British International Investment (BII), International Finance Corporation (IFC), U.S. International Development Finance Corporation (DFC), Standard Bank, and Norfund.

Investment Focus on Series A and B Rounds

In the African investment landscape, international funds typically lead most large deals, while local investors primarily focus on pre-seed to Series A rounds with smaller to medium-sized funds. Large Africa-focused funds like Norrsken22 aim to bridge the gap between growth and late-stage investments. Around 50% of Norrsken22’s capital will be allocated to building its portfolio with Series A and B companies, with the remainder reserved for follow-on investments, primarily in the B and C rounds, according to Kolbe.

The firm’s investment focus centers on entrepreneurs developing fintech, edtech, medtech (health tech), and market-enabling solutions that promise strong returns and positive impacts across Africa. To date, Norrsken22 has made five investments, including TymeBank, Sabi, Smile Identity, Autochek, and Shara.

Norrsken22’s objective is to invest in approximately 20 startups, with an average investment ticket size of around $10 million. However, in select portfolio companies, it may go as high as $16 million for follow-on rounds, as discussed by the partners in a previous interview.

Strategic Exits

Like several other growth-stage firms, Norrsken22 is keen on preparing its portfolio companies for successful exits. The firm conducts rigorous evaluations of potential exit scenarios, including identifying potential buyers and assessing valuations at the end of the investment period. According to Kolbe, this diligence is crucial, and the firm has declined investments where a compelling exit case was not evident.

Norrsken22 is exploring exit opportunities through international strategic buyers, consolidation with local industry leaders, and potential acquisitions by large multinational corporations in Africa. These corporations often seek innovation by acquiring tech businesses, which can be integrated into their operations or operate as separate entities under a different brand. Norrsken22’s debut fund is supported by an advisory council comprising business leaders in banking, telecommunications, agriculture, and real estate.

Japanese VC Giant SBI Holdings Commits $40 Million to Fuel African 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

Group Calls for Improved Jobs for Youth in Africa

Africa should improve the quality of basic education to ensure a skilled workforce that will create more and better jobs to drive economic transformation on the continent. Economic Commission for Africa (ECA) acting Director of the Gender, Poverty and Social Policy division (GPSPD), Sweta Saxena, said creating suitable jobs for its youth is one of the biggest challenges facing policymakers in Africa, highlighting that growing young and working-age population requires jobs if Africa is to benefit from a demographic dividend and meet its development aspirations.

Speaking at the Opening Session of the Expert Group Meeting of the Social Policy Section, organized by GPSPD, Ms. Saxena said Africa is challenged in terms of providing jobs for the youth. She cited the lack of adequate skills by the young population in Africa.

Data shows that nearly a quarter of the children enrolled at the primary level do not complete primary education while less than 50% of young boys and girls complete lower secondary education, compared to around 80% in South Asia and Latin American countries. Worse still the tertiary level enrollment rate is less than 10%.

“The quality of education is also very low, and so as a result, young people in Africa enter the formal labour market with few employable skills,” Ms. Saxena said, commenting that it was no wonder that nearly 90% of the youth start their working life in informal employment and almost a quarter of businesses name lack of skilled workers as among the main constraints.

Economic Commission for Africa (ECA) acting Director of the Gender, Poverty and Social Policy division (GPSPD), Sweta Saxena

Another big challenge for Africa was having significant numbers of their trained people ending up unemployed and working in areas unrelated to their training or emmigrating to other countries, which is a misallocation and waste of resources that these countries can ill afford.

The two-day Expert Group Meeting has drawn technical experts from 16 countries including experts from government, academia, think tanks, and the United Nations system to review the key findings of the draft report, Jobs in Africa or Jobs for Africans. The report aims to inform and stimulate debate, contribute to better policies, facilitate further research, and identify prominent knowledge and data gaps.

The meeting provides an opportunity to discuss questions related to the issues of demography, education and skills migration in an integrated way so as to accelerate national and regional-level actions for increasing employment opportunities for young Africans.

The ECA supports Member States through the convening function, which supports the identification of key collective challenges facing the continent along with appropriate responses. The Commission also functions as a think tank which includes conducting interdisciplinary research and analysis of key challenges facing Member States and Africa as a whole, as well as the promotion of peer learning and development. Furthermore, the ECA provides direct policy advice and support to Member States and this usually comes about from meetings and interactions such as the Experts Group Meeting.

Ms. Saxena said expert group meetings were important for the ECA as they contributed to the Commission fulfilling its core mandate of promoting economic and social development among our member States.

In a globalized world with ease of movement of capital, goods and services, the mobility of skilled workers across international borders was a natural consequence of global integration and orderly migration. It brought many benefits, including remittances, investment, and trade linkages with countries of destination but the situation was different in Africa.

She lamented that the “loss of skills is worrisome for countries in Africa that already suffer from low human capital. As tertiary and professional education is financed from severely limited public education budgets, in effect poor African countries implicitly subsidize rich countries through migration of highly skilled labour.”

Properly managed migration presents an immense opportunity for alleviating the challenge of job shortages for skilled workers in Africa with development benefits for all parties.

“Creating a skilled workforce requires improvements in both access to, and quality of, basic education,” Ms. Saxena said, urging for rethinking education under a New Social contract.

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