Blog - Afrikan Heroes

From Hangzhou to Rwanda: how Jack Ma brought Chinese e-commerce to Africa

September 6, 2019

When Alibaba’s founder, Jack Ma, first visited Africa a couple of years ago, he discovered many similarities between Africa now and China when he founded Alibaba. Inspired by the passion and energy of the continent’s young entrepreneurs, he saw an opportunity to share in Africa what Alibaba had learned in building the world’s largest retail economy in China. In his mind, what may have seemed like a disadvantage — youth unemployment, lack of infrastructure etc. — were actually significant opportunities in the digital era: Africa could leapfrog, instead of battle, entrenched outdated systems, power structures and models.

Jack founded Alibaba back in 1999 after discovering the internet and realizing the potential it had to connect all the small businesses in his region of Zhejiang province, to customers around the world. Early on, he understood the power of technology to level the playing field to allow more people to start, run and grow businesses. Twenty years later, Alibaba has evolved into an ecosystem through which it created over 40 million job opportunities in 2018 directly and indirectly; there are 10 million SMEs and start-ups on Taobao alone, Alibaba’s C2C e-commerce platform, and about half of online entrepreneurs are women. In 2018, e-commerce revenue in rural areas of China enabled by Alibaba has exceeded 700 billion RMB (approximately $97.6 billion), which led to over 6.83 million new job opportunities.

This is all possible in Africa as all the ingredients exist for the same possibilities to happen. Africa stands at an unprecedented moment in history where it has the opportunity to leverage its critical mass of youth to leapfrog legacy systems in exchange for inclusive growth into a new digital economy.

What is necessary for Africa to take advantage of the digital era?

This task is not something a single sector in society can solve, but rather it requires the alignment, cooperation and participation of all sectors: namely, government leaders, entrepreneurs and educational institutions. In addition, Africa must develop new models of development by learning from what has worked in other emerging markets. Traditional development philosophies no longer apply in the digital era with all the opportunities it holds for inclusive growth.

A shared vision and belief in the positive impact of technology across governments, private sector and educational systems is necessary. Yes, there are risks. And yes, there are fears and unintended consequences to technology. But the biggest risk is to miss out on the opportunity altogether. All sectors must work together to encourage innovation and entrepreneurism.

In addition, each sector must play their part in enabling this transformation. For example, government should create policies and regulations that encourage innovation and investment in the digital economy; entrepreneurs should be left to actually build and operate the platforms that will make digital tools cost-effective and accessible for small businesses to adopt; and educational institutions should be training youth to acquire the relevant skills and perspectives for the new economy.

A new empowerment model for Africa

Leveraging 20 years of collective Alibaba Group knowledge and resources, at Alibaba Business School we have developed a new empowerment model to help governments, entrepreneurs, youth and women to reap the benefits of the digital economy.

The new empowerment model aims to promote greater understanding of and alignment around the digital economy and what is needed to encourage digital transformation across the public and private sectors.

For this model to work, dedicated training is needed, using targeted curriculum for governments, ecosystem builders (entrepreneurs, SMEs) and students. A wide range of partnerships with venture capitalists and incubators, multilateral organizations, government agencies, universities, industry associations are necessary to create a true ecosystem that can support the development of a digital economy. And through these initiatives, we help align and connect different sectors so that they can work together towards a common goal guided by a shared vision.

Here’s how we are applying the model at a country level in Rwanda:

• Government officials have tremendous power to foster a policy and regulatory environment that enables entrepreneurism to thrive. We held a New Economy Workshop for Rwandan high-ranking government officials to discuss obstacles to the development of a digital ecosystem, and policy actions that can enable and facilitate private sector development. As a result, the Rwandan Utility and Regulation Association made further investments in fibre infrastructure across the country, estimated to be 3,400km now. The Rwanda Development Board (RDB), which spearheads the digital transformation in Rwanda, is also working with the National Post Office to improve the local postal service, which is key to the logistics of e-commerce.

• Rwandan entrepreneurs and SMEs are the digital infrastructure builders and key players of the digital ecosystem. We established the eFounders Fellowship, in partnership with UNCTAD, to cultivate young digital entrepreneurs and the Netpreneur programme, in partnership with RDB, to train SMEs who aspire to digitize their businesses.

To date, 40 Rwandan entrepreneurs have received Alibaba training. For example:

1. Rwanda eFounder fellow Clarisse Iribagiza is CEO of DMM.HeHe, a leading tech company that serves more than 1 million users across the African continent through its various tech solutions. As a result of the Alibaba programs, the company partnered with three Netpreneurs and helped put them online and provided digital solutions.

2. Seven SMEs set up an agriculture and tourism company focusing on bringing Alibaba’s rural development model to Rwanda. They are choosing villages with signature agriculture products and internet service as trial locations and working with RDB to develop these projects.

3. Rwandan coffee-makers (many of whom have graduated from Netpreneurs training) have successfully connected their businesses to China’s 700+ million consumers through Tmall Global, our cross-border B2C platform and increased sales of high-quality Rwandan coffee to China by 700%.

• Rwandan students are the talent source that will power the digital economy forward. To prepare them with the relevant tools, we provided skills training on e-commerce to a local Rwandan faculty to support the creation of a new digital economy curriculum. In addition, 22 students from Rwanda will soon start a new four-year undergraduate course on cross-border e-commerce in September 2019 at the Alibaba Business School in Hangzhou, China.

• Cross-sector synergy and public-private collaborations have been cultivated through the respective programs and will continue to drive actions towards the goal of an inclusive digital economy. The RDB, for example, holds frequent meet-ups among entrepreneurs and government in sharing and discussing policy for building digital economy. Moreover, entrepreneurs can advise policy-makers on how the two should work more closely together.

Of course, no one country is the same. But a common success factor is an entrepreneurial mindset that enables resilience, flexibility and innovation. These traits can be nurtured through training, supportive policies, education and community building.

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Brian A Wong, Vice President, Global Initiatives, Alibaba Group & Roger Yong Zhang, Senior Lead, International Corporate Affairs, Alibaba Group

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Seme Border Shutdown Threatens Economic Growth of West African Region in 2019

September 5, 2019

The protracted closure of Nigeria’s borders with the Republic of Benin which governments on both sides of the divide have kept mute on likely date of opening is causing untold hardships to businesses in both countries. What is more worrying however is the negative impact of the unilateral action the Nigerian government took last month on the economy of the West African region. Many goods worth billions of naira have been trapped at both border posts since the closure while demurrage has been mounting to the tune of hundreds of millions of naira. Also, there are indications that costs of Rice and frozen foods have also skyrocketed in Nigeria, while importers in Benin Republic have been counting their losses as their goods were trapped in the melee.

The government of Nigeria said that the border was closed to checkmate huge influx of smuggled Rice into Nigeria from Benin Republic, which according to government sources, is hurting efforts being made to grow local rice production in Nigeria. The decision however, is affecting many other businesses and even socio-cultural activities as the closure has made it impossible for many people and families that traverse the border so often to do so. When the Border was shut down on the 21^st of August 2019, many travelers were left stranded on both sides of the Border because the action was impromptu. Some had to return back while those on return journey had no option that to remain within the Border posts of both countries. This decision according to our investigations was informed by the fact that many of the travelers were from third party countries such as Togo, Ghana, Cote d’Ivoire among others and as tension built up, officials fearing altercations may arise leading to riots appealed to higher authorities to allow such travelers access through the border to douse tension, and also minimize the human traffic buildup at both sides of the Border.

It was after concerted efforts by relatives and colleagues of people stranded at the border posts that it was agreed that all travelers with genuine travel documents should be allowed to go through the border. This came as huge relief for many who otherwise, would have remained locked out at the border.

While sources from the Nigerian government say that the closure was due to a joint military/para-military exercise code-named ‘Ex-Swift Response’ put together at the instance of the Office of the National Security Adviser (ONSA) aimed at addressing some of the security challenges facing the nation, some Customs officials speaking under anonymity maintained that the closure was basically to curb the influx of smuggled Rice and other banned goods from Benin Republic to Nigeria. The exercise therefore was in response to the need to keep in check the unbridled imports of such goods that have become a threat to the country’s efforts to industrialization and agricultural revolution.

Babagana Monguno, National Security Adviser

The Public Relations Officer of the Nigeria Customs Service (NCS) and Deputy Comptroller Joseph Attah was quoted as saying that the exercise was part of measures aimed at securing Nigeria’s land and maritime borders, pointing out that the Ex-Swift Response is a joint operation which involved the armed forces, made up of the Army, Navy, and Air Force on one hand, and the Nigeria Customs Service (NCS), the Nigerian Immigration Service (NIS), the Nigeria Police Force (NPF) and other security and intelligence agencies. Enumerating the challenges which the ongoing measures are meant to combat, the Customs Spokesperson said they are kidnapping, arms smuggling, terrorism, banditry, proliferation of small arms and light weapons, crude oil theft and human trafficking.

He added that the Exercise would hold in four geopolitical zones – South-south, South-west, North-central and North-west, those that share Border States with Nigeria’s neighbouring countries, and that it would definitely affect movement of personnel, vehicles and equipment within the affected parts of the country. He therefore admonished members of the public not to panic while going about their normal duties. The overall objective he concluded is for the good of the country, and is aimed at ensuring a peaceful and secure country in the interest of our national security.

Inspite of these clarifications members of the public especially business people have been agitated by the action. This is because the cumulative costs of that action on businesses and the economy in general have remained high. A source from the Ministry of Development and Planning of the Republic of Benin was quoted as saying that the overall impact of the border post closure will have a negative effect on the country’s economic growth projections.

This is because Nigeria is Benin Republic’s biggest trading partner and neighbor with goods worth millions of dollars traversing between both countries on daily basis, thus any act that disrupts this movement will have untold consequences not only to the economies of Benin Republic and that of Nigeria but also other neighbouring countries in the sub region such as Togo, Ghana, and Cote d’Ivoire because the region’s economic growth is dependent to a large extent, on the Economic Community of West African States treaty on free movement of goods and services, moreso, the borders of both country play a very important role on the Lagos-Dakar Corridor.

Responding to the above assertion, a top official of the Federal Ministry of Finance, Abuja who would not want to be mentioned because he does not have the authority to speak on such matters told this Correspondent that there are outstanding issues between the government of Nigeria, and the government of Benin, adding that that was reason behind the meeting between President Mohammadu Buhari and his Beninese counterpart President Patrice Talon in Japan during the just concluded Tokyo International Conference on Africa’s Development (TICAD) in Japan. He pointed out that the Government of Benin Republic has refused to honour all the trade agreements entered into by both countries, giving example with the Beninese Customs that has refused to adhere to the recently introduced interconnectivity agreement meant to facilitate seamless trade at the border.

This agreement he noted was initiated to eradicate smuggling, wrong declaration of cargo and other anti-economic vices, and to facilitate trade between Nigeria and Benin, but the Beninese government has been foot-dragging of signing that agreement, he said. Continuing, he said that this agreement, which is in line with the ECOWAS Protocole on movement of goods, would have offered Customs officials from both countries unhindered access to electronic data on goods transiting the border and the duty paid on them. He concluded that the only plausible explanation to their refusal to sign the agreement is that they are gaining from the criminal activities going on at the borders while Nigeria has been at the losing end for the last 30 years. Time has come to address this anomaly, he said.

Collaborating the above views, a Customs Official who has very good knowledge of both Seme and Idiroko Borders told this Correspondent that the Beninese authorities are also frustrating efforts by the Nigeria government to clean up activities at the Border by pulling the plug on smuggling while creating ease of movement to genuine goods from both countries, this however, is yet to materialize as the Beninese frustrates the movement legitimately made-in-Nigeria goods into their country by throwing in clogs in the wheel of existing bilateral and multilateral agreements. If Nigeria’s effort at growing local production and reindustrialization must be fruitful, how the country manages its relationship with Benin Republic should be of priority, analysts say. A Lecturer at the Lagos State University, Ojo who spoke on the issues warned that if not properly handled, it may be counterproductive as basic food items may become out of reach to many people leading to food inflation.

Lending his voice to the issue, the Director-General of the Lagos Chamber of Commerce and Industry, Mr. Muda Yusuff has condemned the decision to shut down the Border as being inimical to efforts by different multilateral organizations in the continent such as the African Union, ECOWAS, and the African Export and Import Bank (Afreximbank) to boost inter-state trade, commerce and investment within the continent. “It is very unfair and not good for business. Those doing business at the borders should have been adequately informed and given prior notice before the closure,” he added.

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.

Business Leaders Highlight Growing Uncertainty in Africa

Uncertainty over the global economy seems to be the most disconcerting to business leaders across Africa, than any other issue. This is contained in the Report launched on the eve of the ongoing World Economic Forum in Cape Town South Africa, The Africa Business Agenda Report gives inkling into the emerging patterns African business trends is likely for follow in the short to medium term. The Report highlights the thoughts of CEO’s across the continent pointing to their less than satisfactory view of the strength of the global economy and their organisations’ ability to grow revenues in both the short and medium term than they were a year ago. A quarter of African CEOs (25%) believe that the global economy will decline over the next 12 months.

According to this Report the unease about global economic growth is also dampening CEOs’ confidence about their own companies’ outlook in the short term, with 27% of CEOs stating they are ‘very confident’ in their own companies’ prospects for revenue growth over the next 12 months. Furthermore, only 39% are ‘very confident’ about their organisations’ growth prospects over the next three years. Speaking on the findings of the Report, the CEO of PwC Africa Dion Shango, said that as they look forward to the year ahead, African CEOs are less confident about the prospects for the global economy than they were a year ago. The same is true when they consider the prospects for their own organisation’s growth.

Dion Shango, CEO, PwC Africa

“In Africa, economic and policy uncertainty, among other issues, have cast some doubt upon business leaders’ hopes for immediate and future growth. Although there is a drop in optimism, African business leaders do see some opportunities on the continent – but overall, they are playing it safe.”

The Agenda compiles results from a survey of 83 CEOs across 19 African countries. The results are benchmarked against the findings of PwC’s 22nd Annual Global CEO survey of more than 1 300 CEOs, conducted during the 4th quarter of 2018. The Agenda provides an in-depth analysis and insights into how businesses are adapting to meet the challenges of operating in Africa.

Notwithstanding the current economic climate and other challenges, there is notable optimism among business leaders about the potential to unlock more growth on the continent. While the US, China and the UK continue to be the most dominant traditional markets for growth opportunities, it is notable that 20% of African CEOs ‘don’t know’ where else to look for growth and 5% say there is ‘no other country’ they would look to. The report suggests this may reflect the current economic and political climate.

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.

Trouble Looms for Football Betting Business in Afric

There are palpable fears that operators of sports betting firms across Africa may be in for a shock if the developments in East Africa—Kenya and Uganda in particular is allowed to spread to other parts of the continent. Analysts say that the fast growing African sports betting business may face the sledge hammer which will most likely cut short the gaming market spreading in mostly South Africa, Nigeria, Kenya, Uganda and Tanzania.

This is against the backdrop of the recent order from the President of Uganda, Yoweri Museveni who directed the State Minister for Finance David Bahati to stop licensing sports betting, gaming and gambling companies in the country. As if this was not bad enough, the directive equally hold that for those already registered, there would be no renewal of licenses when they expire, signifying a stoppage for the industry which many see as an escape for many young unemployed people. The President according to source with knowledge of the issue took the decision to divert the attention of the youth away from sports betting and its harmful social impact. Moreso, the President is said to be uncomfortable with a situation where foreign-owned companies repatriating profits rather than re-investing them in Uganda. But critics say that instead of an outright ban, a review of the tax system to curtail repatriation of profits should have been considered. This is against the backdrop of the large number of young people whose daily activities revolve round sports betting.

President of Uganda, Yoweri Museveni

In a similar vein, Kenya followed the Ugandan example but while not an outright ban, the country gaming authority, the Kenyan Betting Control and Licensing Board (BCLB) tried to follow some of the lined towed by European countries by focusing on the widespread levels of advertising. According to the BCL, “outdoor advertising of gambling, advertising of gambling on all social media platforms, advertising gambling between 6am and 10pm, [and] endorsement of gambling operations by celebrities” would be banned. Even at that, this development led to an outcry in the country leading to a suspension of the ban as the legislators are currently considering policy amendments which would overhaul current state gambling laws by imposing significantly higher costs on licensed operators. Advertising of gambling seem to be one of the highest paying across Africa especially for radio and television, and the time space in question is regarded as prime by advertisers.

With these developments there are fears across the continent that politicians and government officials may start tinkering with ways of either squeezing more money from these firms, or an outright ban altogether, a move analysts believe may be popular with conservative religious groups that view gambling as unwholesome. And politicians forever playing to the gallery for political gains would easily latch onto such openings to gain favour and acceptance.

These conditions, intertwined with a youthful and growing middle class that has a ferocious passion for sports, has made the 2nd most populous continent on the globe an attractive opportunity for gaming operators looking to expand beyond existing mainstream and, often, saturated markets. However, after consistent year on year growth in a number of markets in the sub-Saharan region, the problems affecting their European counterparts have emerged in the promising market.

However, the moves from two of the significant sub-Saharan markets have led to many in the industry questioning both the severity and, more importantly, the effectiveness of the rulings. With regulated gaming prohibited, there is a high risk that white markets will be replaced by grey and black jurisdictions, threatening even greater risks to the punter.

.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

African Renewable Energy Startups Get A New Fund

It appears renewable energy startups in Africa may have found the perfect square peg in a square hole with Accion Venture Lab Fund and other VCs launching funds to tackle one of Africa’s greatest problems — electricity .

Thanks to Evolution II, a closed-end sub-Saharan Africa fund, there is now a new investment fund worth USD 216 Mn for startups in Africa’s renewable energy sector. Investment in the fund came from several international investors.

Here Is The Deal

The main investors in the new fund included: European Investment Bank (EIB), Commonwealth Development Corporation (CDC Group), the UK Government’s Development Finance Agency and KLP Norfund Investments of the Norwegian Government.
A number of private investors also took part in the funding round for the ten-year closed-end fund.
The fund belongs to Inspired Evolution, an Africa-focused investment advisory firm that specializes in the clean energy sector. The company planned the fundraising through its platform.

“Investing in clean energy is a key priority for CDC Group and investing in the Evolution II fund will improve access to renewable energy in sub-Saharan Africa, thus contributing to the fight against climate change. We look forward to a collaborative and productive partnership,” said Setor Lassey, Director of CDC Group’s Investment Funds and Partnerships Team for Africa.

The Impact of Evolution II Fund So Far

The impact of Evolution II in energy sector investment in Africa are many. In February 2019, the fund invested USD 7.47 Mn in Commercial Energy South Africa which is an affiliate of SolarAfrica. The platform provides funding solutions for long-term private commercial and industrial (C&I) solar PV customers, through SolarAfrica’s network of EPC contractor partners.

Although Africa has not taken maximum advantage of its renewable energy resources, the continent has increased its renewable energy capacity. As of 2014, the continent had 1.8 gigawatts of renewable energy capacity, this is according to a report by Bloomberg New Energy Finance.
Thanks to renewable energy, millions of people are accessing electricity for the first time as the continent moves to leverage renewable energy to increase generation capacity.

The sector has received a major financial injection which will be channelled to finance renewable energy companies and projects across Africa.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

South Africa And Nigeria Top Africa’s Startup Fundraising Chart In Eight Months

Just in the last 8 months, January to August 2019, African startups have succeeded in raising close to $225 million in funding. While South Africa had a 33.3 per cent share of the fundraising deals, Nigeria’s startup fundraising deals represented 24% of all startup fund raising in Africa this year so far.

Here Is How It Happened

According to the data curated by Maxime Bayen, GSMA Ecosystem Accelerator’s Insights Director, a total of 44 start-ups from nine African countries were analysed.
Out of the 44, 10 Nigerian startups made the list. At a time when a majority of African startups i are struggling to remain afloat due to financial constraints, this statistics on African startups funding is significant in many ways.
South Africa had a 33.3 per cent share of the fundraising deals. The South African ecosystem raised about $97.3million.
The list was mainly dominated by startups from South Africa, Nigeria, and Kenya. While South Africa saw a record number of 15 startups on the list, 10 startups were from Nigeria while 8 were from Kenya. Uganda got three, Ghana and Egypt got two, while Mauritius, Zimbabwe and Zambia one each.
Percentage African startup fundraising by sector Jan-August 2019

A Look At The Nigerian Startups That Secured The Funding

From Nigeria, Andela led the start-ups, followed by TeamApt, OneFi, Farmcrowdy, Kudi, mDaas, Gokada, Arnergy, Max, Opay, 54gene, Kobo360, TechAdvance.
These were in the education, fintech, agriculture, healthcare and the logistics and travels sector.
Out of the top five in Africa, Andela, which led others, raised $100million, follow by OPay, which raised $50 million, and Kobo360 raised $30 million.

Read Also: How International Organisations Are Helping Startups In Africa

Gender Diversity

Eight of the African startups were founded or managed by women including Angela (Nigeria), PayItUp, InstaDeep (Tunisia), BitPesa (Kenya), SweepSouth (South Africa), Neopenda (Uganda), Framcrowdy (Nigeria) and MdaaS Global (Nigeria).

Performance By Sectors

Dominating the list are fintechs. The increase in investment in fintechs is a reflection of the growing financial services industry and the need to deepen inclusion.
They accounted for 34 per cent at $156.4million, followed by the logistics and transport that took 13 per cent at $94.9 million, then energy for 11.1 per cent at $72 million; healthtech 11.1 per cent at $24.5 million; jobs ($4 million), and agritech ($8 million) at 5.6 per cent both, among others.
Percentage African startup fundraising by sector Jan-August 2019

The Indispensability of Technology Startups Towards Driving SDGs

Meanwhile, the Global System for Mobile telecommunications Association (GSMA) has said that technology startups will play crucial role in achieving the Sustainable Development Goals (SDGs). It stressed that low-tech mobile tools will meet this need and beyond. Several mobile innovations reaching scale today in Africa and Asia Pacific that are driving impact on the lives of low-income mobile users are driven by low-tech, offline solutions. Even in the age of smartphones, low-tech solutions are indispensable to addressing the SDGs.

Mobile operators play an important role in granting start-ups and third parties access to lowtech mobile channels, such as APIs and USSD, for deploying life-enhancing services with a direct impact on the SDGs.
For example, in November 2018, SMS-based weather forecasting service, Iska, launched in Nigeria with 9mobile, while MTN Uganda launched its mobile money API, enabling developer access to MTN Mobile Money’s proprietary software platform.
Meanwhile, Orange runs the platform #303# My Store that enables developers to plug into a standardised USSD API. #303# My Store is active in Côte d’Ivoire, Cameroon and DRC, with around 50 third-party services accessible on the platform.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Johannesburg Stock Exchange Is Feeling The Pain of Attacks on Foreigners in South Africa

As some South Africans go up in arms against African nationals living in that country, the energy is being felt on the Johannesburg Stock Exchange, Africa’s largest stock exchange.

Here Is All You Need To Know

MTN Group Ltd., Africa’s largest mobile phone operator, fell as much as 2%, after the company closed its offices in Nigeria following attacks on its premises in three cities.
Shoprite Holdings Ltd., Africa ’s largest food retailer, dropped after its stores were attacked in Lagos.
The benchmark South African index was 0.2% higher as of 2:27 p.m. after climbing as much as 0.7%. The MSCI Emerging Marketz Index rose 1.5%.

“It’s exactly the reason why local retailers and stocks like MTN who have African exposure are losing ground today,” said Henre Herselman, a derivatives trader at Johannesburg-based Anchor Private Clients, which oversees 38 billion rand ($2.6 billion) for clients.

“I have seen several announcements from companies stating they have closed shops out of a fear a retaliation.”

Muhammadu Buhari✔@MBuhari I am sending a Special Envoy to President Ramaphosa to share our deep concern about the security of Nigerian lives and property in South Africa, and to ensure that the South African Government is doing everything within its power in this regard.

4:38 PM — Sep 3, 2019

Attacks broke out in Johannesburg, South Africa on Sunday and saw the destruction of more than 50 shops and business premises mainly owned by Africans from countries in the rest of the continent. Cars and properties were torched and widespread looting took place. The violence against African nationals may be a reaction to extra competition for jobs and services in Africa’s most-industrialized economy.

*SOUTH AFRICA’S DEPORTATION RATES OF FOREIGN NATIONALS, 2014/15*

”From footage I’ve seen, it most definitely will hit Shoprite hard because it goes beyond lost sales, but also cost of repairs and restoring the damage,” said Nolwandle Mthombeni, an analyst at Mergence Investment Managers in Cape Town. “I don’t think this is a permanent deterrent from expanding into rest of continent, but it does mean any short term plans may be pushed out till the attacks are well in the rear-view.”

Source: Bloomberg

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

New Accion Venture Lab’s $23M Inclusive Fund For African Startups

September 4, 2019

More fintech startups in Africa now have a new chance at funding.

Accion Venture Lab — the seed-stage investment arm of non-profit Accion — has raised $23 million for a new inclusive fintech startup fund.

Here Is All You Need To Know

The new fund was raised with capital contributions from a number of participants, including the Ford Foundation, Visa Inc. and Proparco — the development finance institution of the French government.
The additional $23 million brings Accion Venture Lab‘s total capital under management to $42 million.
The Accion Venture Lab Limited Partnership, as its called, will make seed-stage investments in inclusive fintech startups, defined as ventures that “that leverage technology to increase the reach, quality, and affordability of financial services for the under-served at scale,” per a company release.
The new LP fund will consider startups from any geography, as along as they meet specific criteria. Overall, Accion Venture Lab doesn’t have regional investment quotas, but does look to allocate roughly 25 to 30 percent of its funds to Africa, Accion Venture Lab Managing Director Tahira Dosani said.
The Ford Foundation contributed $2 million, according to an email from Christine Looney, Deputy Director, Mission Investments. Visa didn’t disclose its capital contribution, but said it will play a role in governance through its participation in a Limited Partners Advisory Committee for the new fund.

“We want to continue to focus on Latin-America, on Sub-Saharan Africa, on Southeast Asia as well as in the U.S. It really is about…where we see the need and the opportunity across the markets that we’re in,” she said.

In line with Accion’s mandate to boost financial inclusion globally, Accion Venture Lab already has a portfolio of 36 fintech startup investments across 5 continents — including 9 in the U.S., 8 in Latin America, and 8 in India.

“Our goal is to really be the that first institutional investor in the companies we invest in. That’s were we see the biggest capital gap. And it’s where we build capability and expertise,” Dosani said. In 2018, Accion Venture Lab successfully exited Indian fintech company Aye Finance, following exits in 2017 and 2016.

Support So Far

This year Accion Venture Lab supported a $6.5 million Series A investment in Lulalend, a South African startup that uses internal credit metrics to provide short-term loans to SMEs that are often unable to obtain working capital.

Tahira Dosani, Managing Director, Accion VentureL

The New Fund Is Targeting With The New Fund

Accion’s new LP fund will follow past practice and make investments typically in the $500,000 range. It will start sourcing startups immediately through its investment leads around the world and already made its first seed financing to U.S. venture Joust — a fintech platform for gig economy workers

Accion Venture Lab’s LP fund is the first time the organization has pooled third-party investment capital, according to a spokesperson.

On the appeal for those contributing, Dosani named Accion’s geographic reach and experience.

“We think that’s our strength, because we’re able to invest in similar business models across different markets. And we’re able to bring that knowledge from one market to another,” she said.

As a point of observation, Accion Venture Lab stands out as a fund for giving an equal pitch footing to fintech ventures across frontier, emerging, and developed markets from Lagos to London.

Accion’s new LP fund — along with the organization’s commitment to make nearly a third of its investments in Africa — means more capital to digital finance startups on the continent. By a number of estimates, Africa’s 1.2 billion people still represent the largest share of the world’s unbanked and underbanked population.

Counting the Loss: South African Government Assures Business Community

As part of efforts aimed at restoring confidence after a devastating xenophobic attacks that led to destruction of business outlets across over four South African cities, the South African government has kick started a campaign to seek the understanding of the business community aimed at providing assurances, and calming frayed nerves. This is coming against the calls by business leaders urging the government and the ruling African National Congress (ANC) to work towards progress especially with the prosecution of people suspected of corruption, for confidence to be restored in the country.

President Cyril Ramaphosa on the other hand addressed business leaders on the country’s attractiveness as an investment destination in an atmosphere weighed down by the violent crime sweeping the country. A move many see as face saving, judging from the negative impact the attacks have had on the World Economic Forum which kicks off today in Cape Town, South Africa.

Brand SA used the present national mood in South Africa as opportunity to host an impromptu meeting between the President and business leaders from across the country on the sidelines of the World Economic Forum (WEF) in Cape Town. The President used the opportunity to comment on the negative news that has pervaded the country in recent times, especially that of women who were murdered by some men and also those who died during the xenophobic attacks.

Speaking yesterday evening, President Ramaphosa said that it is most unfortunate to meet at a time when the country is going through a spate of horrible news. He harped that the nation is in deep mourning; “we are all deeply disturbed by the killings of women. … It calls on us as men to rise up and say this should never happen in our name. As men we should stand up and say that we are going to bring an end to the abuse of women and children,” he added.

Continuing, the President said that South Africa is facing a challenge of people taking laws into their hands, “as much as they have certain grievances I have said that taking action against people from other nations should never be allowed. SA is a home for all. We are not the only country that has become home for people who are fleeing their own countries,” he said. Making references to reports of residents who took part in co-ordinated attacks, looting foreign-owned businesses in Tembisa, Alexandra, Hillbrow, Cleveland, Jeppestown and the Johannesburg CBD since Sunday. The violence continued on Tuesday, spreading to other areas including Germiston on the East Rand. Similar violence also took place in the Pretoria CBD last week.

President Ramaphosa of South Africa

Ramaphosa provided business leaders with a report back on the government’s progress in improving SA as an investment destination. On coming into office Ramaphosa set a target to achieve a top 50 status in the World Bank’s ease of doing business index. SA is rated 82 out of 190 countries. He said demonstrable progress had been made on reforming the visa regime; decreasing rail and port tariffs; improving policy certainty in mining; and on the drafting of an oil and gas bill. He said the Integrated Resource Plan — SA’s long-term plan for meeting SA’s energy needs — was “close to being finalised”.

But in the panel discussion following Ramaphosa’s speech, business leaders said they needed to see more demonstrable progress, in particular with the prosecution of people suspected of corruption, for confidence to be restored. The Chairman of Absa Wendy Lucas-Bull said that the biggest frustration for South Africa at the moment is [not] seeing action in our plans. “We are very good at coming up with plans but we have not delivered with the speed that the circumstances demand. We are in a turnaround situation and a turnaround situation needs very visible leadership and very consistent leadership.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

An Opportunity For Startups In North Africa To Pitch by the Pyramids

This is a chance for startups in North Africa to pitch for funding RiseUp’s Pitch by the Pyramids event.

Building on the successes of past startup competitions and RiseUp’s extensive reach in MENA’s startup ecosystem, RiseUp is launching the region’s greatest pitch competition yet, Pitch by the Pyramids. Startups from across the Middle East and Africa are invited to join by participating in their local country qualifiers hosted by our regional partners in Cairo, Dubai, Tunis, Beirut, Riyadh, Amman, Baghdad and Ramallah.

Here Is All You Need To Know

Finalists will get to Pitch by the Pyramids at the grand final event at the Pyramids of Giza, in Egypt. Among the hundreds that will be in attendance are local and international media heavyweights, renowned investors, and industry leaders waiting to hear what MENA’s got to offer this year!

Who can apply?

Purpose driven startups
Startups with disruptive business ideas
Startups between 0–3 years of operation
Scalable business model.

How To Apply

Submit your application by September 21st.

About Pitch By The Pyramids

For thousands of generations, Egypt’s pyramids have stood as a symbol of innovation for Egypt and the region. According to the organizers, today, the pyramids stand as a reminder for the world’s youth that the impossible can be built.

That’s why RiseUp is inviting MENA’s most inspiring youth to participate in Pitch by the Pyramids, and get the chance to stand where history’s greatest once stood and tell a story that could one day change the future.

This is not just a competition for startups to showcase their ideas, but also a program that provides the startups with relevant webinars, mentor-ship and coaching that would help them develop as individuals and as an entity, the organisers noted.

RiseUp is a North African organisation with focus on assisting startups raise funds for their businesses.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.