The fifth edition of the annual Lagos Startup Week will take place on September 23-28, showcasing the city’s startup community and connecting entrepreneurs with potential investors, customers and partners.
Lagos Startup Week takes place this year under the theme “Collaboration – Together We Can Achieve More”, and will host over 30 speakers. Targeting 4,000 participants, it will feature satellite events hosted by hubs and startups from around Nigeria.
The focus is on areas such as new communities, corporate innovation, ed-tech, and urban mobility, while the week will also include the Women who Launch Summit, promoting female leadership in tech.
“The collaboration between Lagos Startup Week and other stakeholders in the ecosystem is a great indicator of the interdisciplinary approach we’ve taken from the very beginning. By working together we are driving forward the inclusiveness and interconnectedness of various talents and encouraging communication and exchange that will lead to facilitating new developments and ideas,” said event co-organiser Olumide Olayinka.
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.
Celebrating NJ Ayuk, Africa’s Foremost Energy Attorney
It was all accolades, and commendations for one of Africa’s most celebrated Energy Attorney and business mogul NJ Ayuk who published a new book “Billions At Play The Future of African Energy to the U.S and Africa”focusing on Africa’s huge energy potential. In his new book, NJ Ayuk describes the steps he’d like Africans to take to realize the full potential of the continent’s vast petroleum resources. According to him, part of that process is the need for Africa to continue to make efforts towards keeping American oil and gas companies in Africa. Ayuk devoted Chapter 17 his book on America’s potential to bolster Africa’s journey to a brighter future. NJ Ayuk is founder and CEO of Pan-African corporate law conglomerate, Centurion Law Group Founder and Executive Chairman of the African Energy Chamber and co-author of Big Barrels: African Oil and Gas and the Quest for Prosperity (2017).
According to H. Daniel Hogan,“International oil and gas companies are sometimes associated with Africa’s so-called ‘resource curse,’ but in reality, they have a key part to play in helping Africa turn things around.” Mr. Hogan is an industry executive with over 38 years of experiences much of it in Cote d’Ivoire, Equatorial Guinea, Nigeria, Namibia, Egypt and Ghana. “They can do that by hiring from the extremely talented African labor market and procuring services from the local sectors and, even more so, by sharing information and technology,” added Hogan, who currently serves as CEO and General Manager of Lukoil International Upstream West, the Russian multinational energy corporation.
“NJ Ayuk is right to call upon African governments to do their share in making Africa appealing to American exploration and production companies.” Hogan noted that he also appreciates the book’s detailed analysis of the risks and rewards associated with exploration activities in Africa. “I hope American companies will see that Africa still has a lot to offer in terms of economic returns” he said.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
PwC Releases Africa’s Private Business Survey 2019
Foremost global consulting group PwC has released the findings of its private business survey which covered Europe, Middle East and Africa (EMEA). The survey which was conducted earlier this involved interviews with key decision makers from 2,993 private businesses with a turnover of at least €10m in 53 countries in Europe, the Middle East and Africa. Out of these number, 200 private businesses from nine sub-Saharan African countries participated in the survey. The conclusion for African businesses according to PwC is that it is time to act for African private business leaders.
This becomes imperative against the backdrop of prevailing business and economic environment in the continent. This is because overall, Africa’s economic performance is expected to improve this year and next. The World Bank predicts the continent will grow by 2.8% in 2019, from an estimated 2.3% in 2018 despite some countries continuing to face challenges with infrastructure and financial systems, for example and global headwinds, which may be slowing overall growth, according to The World Bank. There is also some uncertainty in the economic outlook for Africa, thanks in part to global headwinds. Overall, Africa’s economic performance is expected to improve this year and next, with the World Bank predicting the continent growing by 2.8% in 2019, from an estimated 2.3% in 2018.
Of the 200 private business leaders in nine sub-Saharan countries surveyed in the project to find out their views on the future the responses points to a very bright future, according to PwC. Eighty-three percent of these respondents expect their revenues to grow, while only 7% expect declines. However, PwC says that optimism may not be enough, that business leaders should act and one of the keys to action is digitalisation and the time to embrace it is now. About 81% are in agreement about digitalization, saying that they see digitalisation as highly relevant for the long-term viability of their business, compared to 65% in EU countries. This survey results show that African respondents also rate the relevance of some of the most significant digital technologies, like blockchain, Artificial Intelligence (AI), 3D printing and augmented reality (AR) more highly than do respondents in the EU countries we surveyed. And more than half of respondents say their organisations already have a digital strategy.
However, very imperative is the need and speed of transition, so says PwC noting that the time is now to move from strategy to implementation. There are several actions that private businesses can take to prepare their organisations. The stakes are significant: While there is untapped commercial potential in Africa, owners and managers who don’t act risk being unprepared for whatever future lies ahead. PwC says that the majority of African private business leaders surveyed believe their supervisory boards are suitably composed to support their digital strategies. In general, as a best practice, we encourage private businesses to take a second look at whether they have the right people in place to address the next level of digital change. One possible question to ask: is there a member of the next generation (so-called “next gen”) in the family on the board, one who is digitally native? Indeed, if there are next gens in the line of succession with digital expertise, now may be a good time to bring them on board, and also ensure the longevity of the company.
Another key challenge facing businesses in Africa is human capital. About 80 per cent of the business leaders surveyed say a lack of suitably skilled staff undercuts the ability to provide products and services, thereby causing a loss of revenue or unrealised revenue potential. More than half of survey respondents are seeking to make up for deficits in their in-house talent by obtaining external advice. This is why PwC is of the view that private business leaders should clearly distinguish between short-term and long-term hiring needs. It may be worth thinking afresh about how to satisfy short-term transformation needs. An option for quickly finding technical expertise may be to collaborate with start-ups to fill the gaps, much like many publicly-listed companies do. Interestingly, our survey found that a far greater percentage of companies appear to employ this strategy in Africa than do private businesses in Europe. While 48% of respondents across Africa say they will collaborate with start-ups to get access to digital skills, just 30% of respondents in the European Union said the same.
The Survey also found that one quarter of the African private businesses surveyed are planning to allocate more than 5% of their overall investments to digitalisation. Internal cash flow is the most popular source of funding for digital transformation efforts, followed by bank lending, in both Africa and across EMEA as a whole. Despite the vital role private businesses play in Africa, many could face financing shortfalls in the future that would inhibit their ability to make needed investments in innovation. One encouraging sign: Nearly a quarter of those surveyed say they would consider private equity or venture capital. Turning to private equity can provide funding, as well as management support and expertise.
PwC concludes that whichever strategies are employed, using digitalisation to drive growth is especially important now as competition grows and business models change, in Africa and all around the world. African private businesses have the opportunity to build on their awareness of the opportunities digitalisation offers and take the next steps towards achieving a true digital transformation. The time to act is now.
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.
We will Use Technology to Grow Human Capital- Ishmael Kebbay
Mr Ishmael Kebbay Jr, just one year in office as Managing Director of Sierra Leone Cable Limited (SALCAB), has transformed the SALCAB from a loss-making institution into a profit-oriented entity. What is more, Mr Kebbay and his team are pushing hard to take internet connectivity to every nook and cranny in Sierra Leone, in line with President Maada Bio’s vision to make provision for every Sierra Leonean to have access to internet connectivity. In this interview with Kelechi Deca, he speaks on the telecom’s vision of Sierra Leone.
Would you say that SALCAB is focused on fulfilling its mandate?
SALCAB is fully focused and committed to fulfilling its mandate. SALCAB’s primary mandate is to ensure fast and reliable internet connectivity throughout Sierra Leone at an affordable cost. I can confidently say that we are working on fulfilling our mandate. We have re-calibrated the business model which has reduced the price of wholesale data by 48%, increased data utilization/uptake by 100% from a monthly average of 8G to 16G, and increased monthly revenue by 32%. The 48% price reduction has directly impacted on the end-users as all the Mobile Network Operators (MNOs) have reduced data prices. This is one of the many steps we are taking to fulfill our mandate.
How would you assess SALCAB’s commitment to building a digital future for Sierra Leone?
SALCAB remains fully committed to building a digital future for Sierra Leone. One of our driving pillars is innovation and it has been manifested through two big projects we launched this year — the SALCAB tech Start-up Challenge and the School Connectivity Project. The SALCAB TECH start-up challenge is aimed at driving individuals to think outside-the-box and be innovative, and investing in our most valuable resource as a country, which is our human capital. The competition offers a seed capital prize of $5000 to the top three innovative tech start-up businesses and also a three-month incubation program to further develop their business models and make them investment-ready. We live in a digital world. H.E (Rtd) Brig. Julius Maada Bio (President of Sierra Leone) is extremely passionate about building a sustainable digital future for Sierra Leone which will subsequently ensure sustainable economic growth. We launched the School Connectivity Project which will be providing internet to schools and public libraries as a support to the President’s flagship School Connectivity Program and to also support the President’s priority of building a sustainable digital future for the country.
The School Connectivity Project is critical to the actualization of President Maada Bio’s Human Capital Development programme. To what extent would you say that SALCAB has gone in this regard?
Our School Connectivity Project fully supports the President’s Human Capital Development agenda. The School Connectivity Project will be connecting 500 government & government-assisted schools, and 16 public libraries by the end of 2019. A school management system will be deployed in 100 of the 500 schools, along with computer labs. 250,000 students will benefit from the first phase of the project. The project will further connect 1000 schools and all public hospitals and health centers across the country by 2023. Teachers and students will have access to fast and reliable internet which will further expose them to the digital world and drive them towards thinking outside the box.
We will be launching our Secondary school and university engagements on the use of the internet next year. The primary message we are trying to drive is the use of the internet beyond social media.
What level of feedback did you get from the Special Technical Audit Report on SALCAB and the Telecom Sector? How will that help you to deliver on your mandate?
The Special Technical Audit Report gave people real time data on the business portfolio we inherited. When my management took over operations of SALCAB in August 2018, we inherited a negative portfolio with a cumulative loss of SLE 3.8 billion from January to July 2018, a debt exposure of SLE 58 billion, with a less than 47% monthly revenue collection penetration. With this trend, the business would have gone into administration in three months; because the cash flow and liquidity position was not sufficient to sustain monthly operating expenditures, let alone to undertake any CAPEX outflows. In less than six months we were able to turn the company around with a profit of over SLE 10 billion by the end of 2018. This reinforced our commitment to fulfilling our mandate whilst maintaining our zero corruption and fair business practice policy.
SALCAB claims it has activated physical fiber point of presence in 28 cities (from Freetown to Guinea and Liberia borders respectively). How has this helped to provide access for operators to transport large amount of data cheaper, and faster?
We inherited a network that was in a terrible shape of design. The challenges included no spares to support service recovery in the event of a downtime, no national and International redundancy; the entire country only had one circuit going up north to Lisbon.
In less than six months, we deployed two international redundancies in Paris and Accra (added to Lisbon) that earned the business an uptime of 99.9999%. We have re-designed the terrestrial fibre network to help operators transport a large amount of data cheaper and faster. We activated a fibre point of presence in 28 provincial cities and townships that helped operators such as Qcell to roll out their network at the back of the fibre backbone. Qcell has the cheapest data rates in the market. We are also migrating existing operators such as Afcom, Orange, and Onlime to the terrestrial fibre.
What plans do you have to ensure you operate a resilient network, increase connectivity penetration and deliver +1 customer experience?
We would launch phase 2 of the National Fibre Backbone (NFB) soon. Phase 2 of the NFB will ensure direct fibre connectivity throughout the country which will enable operators to transport data cheaper and faster and will increase internet penetration. We are also working on creating other international and national redundancies, for example, Bintumani to Lungi to serve as a redundancy to Jui to Masiaka. These redundancies will make the network more robust and resilient; they’ll enable us to continue to deliver quality services to our clients which will subsequently be enjoyed by the end-users.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
The Tokyo International Conference on African Development (TICAD) 7 kicks off today in Yokohama, Japan. TICAD, which is the largest international conference to be held in Japan, brings together thousands of participants from around the world to Japan. This year’s event will kick off in Yokohama under the theme “Africa and Yokohama, Sharing Passion for the Future”. The event will run from 28th to 30th August 2019 at Pacifico Yokohama, Yokohama City, Japan. This is the third time TICAD is being held in Yokohama City, the first time was TICAD IV and TICAD V which were successfully held in the City in 2008 and 2013, TICAD will be coming back to Yokohama, and TICAD 7 will be held from August 28 through 30, 2019. TICAD is the largest international conference held in Japan. Several African presidents including President Buhari of Nigeria, President Abdul Fatten Al-Sisi of Egypt, President Paul Kagame of Rwanda, President Mohammed Farmajo of Somalia, President Emerson Mnangagwa of Zimbabwe, President Faure Gnasingba of Togo, President Mohamadou Issofor of Niger, President Nana Addo Akufo Addo of Ghana among others will be participating in TICAD 7.
Over the past seven events, the Tokyo International Conference on African Development (TICAD) has been the largest international conference led by the Japanese government and co-sponsored by the United Nations, the United Nations Development Programme (UNDP), the African Union Commission (AUC) and the World Bank.. TICAD V saw more than 4,500 participants – heads of state and government, representatives of international and regional organizations, civil societies, NGOs, and the private sector.
This year’s topics will include economic transformation and improvements in business environments through private investment and innovation. Promotion of resilient and sustainable society for human security and peace and stability (support for Africa’s own proactive efforts).
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.
Rwanda Set To Replace All Gas-Powered Motorcycle Taxis With Electric Motors
This will be a major turning point for startups focused on motorcycle taxis in Africa. They will have to begin to shift away from gas-powered motorcycles towards electric type ones to remain sustainable in the future. Nigeria’s MAX.ng may have seen the future here. Rwanda particularly is leading a campaign to eliminate all gas motorcycles in its taxi sector in favour of e-motos.
“We will find a way to replace the ones you have now. We urge taxi-moto operators to help us when the phase-out process comes,” Paul Kagame, Rwanda’s President was quoted as saying at a youth forum.
Here Is Thew Deal
Although Paul Kagame previewed the plan last week, the Director General for the Rwanda Utilities Regulatory Authority Patrick Nyirishema has confirmed Kagame’s comments were ahead of a national e-mobility plan in the works for the East African nation.
The national mobility plan will be a set of national policy-guidelines aimed at eliminating gas motorcycles in Rwanda’s taxi sector in favor of e-motos.
“The president’s announcement is exactly the policy direction we’re in…it’s about converting to electric motos…The policy is prepared, it’s yet to be passed..and is going through the approval process,” Nyirishema said in an interview.
This move is however just a speck of more to come. Rwanda’s strategy is to eliminate all gas-powered transport vehicles within the country. Nyirishema said the country will start with public transit operators, such as moto-taxis, and move to buses and automobiles.
“Once the policy is out, we’ll no longer permit any motorcycle that is not electric to be added to a fleet,” Nyirishema said, adding that the country’s regulators will need to create an appropriate transition period and program for taxi operators to move to e-motos.
According to The New Times estimates, there are 20 to 30 thousand motorcycles operating in the capital of Kigali.
A Look At How Gas-Powered Motorcycles Are Suddenly Sitting On The Edge of Disappearance in Africa
MAX.ng recently raised a $7 million funding round led by Novastar Ventures, with the participation of Japanese manufacturer Yamaha. Things are going to be interesting. Backed by the new funding MAX.ng is going for a shocker, a history-breaking feat: electric motorcycles. This could be a first in Africa’s growing motorcycle ride-hail market. The new funding will go into Electric Vehicles development.
“We’re piloting electric motorcycles in partnership with EV manufacturers and working with grid operators across Nigeria to deploy charging stations,” MAX.ng CFO Guy-Bertrand Njoya said.
Another startup that is going for electric vehicle is Ampersand. The Rwandan venture has already begun to pilot Electric Vehicles (EVs) and charging systems in Rwanda.
The company has worked with a feasibility study for implementing electric vehicles across Rwanda since last year, according to CEO Josh Whale.
“We’ve also got a grant from the government…and it’s been tied in really well with the feasibility study,” he said in an interview.
Ampersand has shaped its own e-motorcycle model, building the batteries and fitting them into new motorcycle chassis imported from Asia. To keep the taxi-moto riders consistently moving — vs. delayed while recharging — the startup has developed a battery swapping system and station.
Ampersand CEO Josh Wale sees electricity changing the micro-economics of motorcycle taxi markets. He estimates taxi riders in Rwanda spend $2000 a year on fuel and oil-charges for their gas machines.
“Looking at it from a driver point of view, from day one they are paying less for the bike and the battery by going electric,” he said.
One motorcycle ride-hail startup that has been testing Ampersand e-moto is Cango. Founded in 2015, the company has app-based, on-demand taxi-moto fleets in Rwanda and Congo.
“We intend to be among the first to switch our fleet, as the [Ampersand] bikes are ready,” Cango co-founder Barrett Nash said in a interview.
The motorcycle startup ecosystem has received a lot of attention from VCs in 2019.
Nigerian Lagos-based on-demand motorcycle taxi app Gokada recently proved to be up to the game. The startup raised US$5.3 million in Series A funding with a plan to expand the number of its motorbikes and available drivers, increase its daily ride numbers as well as grow its team.
This was closely followed by MAX.ng which raised a $7 million funding round led by Novastar Ventures, with the participation of Japanese manufacturer Yamaha. Breakthrough Energy Ventures, Zrosk Investment Management, and Alitheia Capital joined Novastar Ventures and Yamaha in the $7 million round. The new funding takes MAX’s total funding to $9 million.
OPay is just a year old in Nigeria, but the startup is already making waves. Nigerian road users would be familiar with the green livery motorbike hailing startup ORide, which is a part of the OPay business. Founded by Norwegian browser company Opera, OPay, the Africa-focused mobile payments startup also recently raised $50 million in new funding. OPay intends to use the capital (which wasn’t given a stage designation) primarily to grow its digital finance business in Nigeria — Africa’s most populous nation and largest economy. OPay will also support Opera’s growing commercial network in Nigeria, including its motorcycle ride-hail app ORide and OFood delivery service.
Another local moto-taxi venture — Uganda’s SafeBoda — received outside capital in a Series B round co-led by the venture arms of Germany’s Allianz and Indonesia’s Go-Jek.
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.
More Loans For Nigerian Businesses By October But Getting Any Just Got Harder
For businesses desiring to raise funds in Nigeria, October 2019 is the best time to begin to do so as more banks would be rushing after them. Recall that the Central Bank of Nigeria is now making it mandatory for money deposit bank in Nigeria to maintain loan to deposit ratio of 60% effective September 30, 2019.
However, that is going to come with a heavy burden.
From now on, once you are taking out any loans from any Nigerian bank, you are at same time permitting the bank to withdraw your deposits from other banks you may have accounts in, in order to repay the loan in the event of your failure to pay back the loan on time.
“If you don’t pay the loans you collected from a bank, we will use your deposits in other banks to service your loans,” MD of Nigeria’s largest bank by market cap Guaranty Trust Bank, Segun Agbaje said.
This formed part of a resolution at the 345th Bankers Committee meeting held in Lagos recently. (Bankers Committee in Nigeria is a committee of top officers of banks Nigeria)
Nigerian Bank lending to private sector
At the meeting, the bankers decided that bank borrowers would be made to sign an agreement that if there was a default, the bank would have a right to access the borrowers other accounts.
The bankers also decided that vital information should be demanded from bank borrowers such as Bank Verification Number, Tax Identification Number among other documents.
As A First Step Towards Enforcing This New Resolution, CBN Has Barred Financial Institutions In Nigeria From Giving Loans To Individuals Or Entities Without Nigeria’s Bank Verification Number or Tax Identification Number
This was contained in its latest exposure draft on the review of the Prudential Guidelines, PG, for commercial, merchant and non-interest banks.
Section 3.23 of the reviewed guidelines states that:
“On lending to customers, banks shall not lend to corporate entities without TIN and individuals without BVN or individuals with BVN that are not resident in Nigeria. Banks that have existing exposure to such entities are required to wind down such exposures within 24 months from the effective date of these Guidelines.’’
“A bank that lends to any corporate entity without TIN and individuals without BVN or non-resident individuals with BVN from the effective date of these guidelines or a bank that fails to fully wind down its existing exposures to such entities by the date allowed above is in contravention of this regulation.
Nigerian Bank lending to private sector declines
What Startups And Businesses Should Watch Out For
Next time signing loan agreements with any banks or financial institutions in Nigeria, startups or individuals should watch out for a clause in the loan agreement that permits the lender to use their deposits in other banks to service their loans. This is because currently, no law permits banks in Nigeria to breach the duty of confidence and good faith they owe their customers. However, expect argument as to whether this new move by the CBN is an extension of the powers of the Central Bank of Nigeria under Nigeria ’s Central Bank Act. In the meantime, the bankers Committee has decided that bank borrowers would be made to sign an agreement that if there was a default, the bank would have a right to access the borrowers other accounts. Hence, banks would be looking to rely on this clause in defence of any of their action.Therefore, it is advisable to consider the terms of loan instruments before appending signatures.
The Implication of The September 30 Timeline
From September 30, 2019 it is expected that Nigerian money deposit banks are going to loosen up money to Nigerians. For businesses desiring to raise funds, this is the best time to laugh as more banks would be rushing after them.
This is the first time the Central Bank of Nigeria is weighing in on minimum lending ratio. Previously, there Nigeria had no rule on minimum loan-to-deposit ratios.
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.
Cairo-based grocery delivery platform Trolley has raised $200,000 as seed funding. The investment came from a Kuwaiti individual investor.
Founded late last year by Mohamed Abbas, who comes with over ten years of experience in the FMCG industry, Trolley was launched in January earlier this year. The Cairo-based startup sells and delivers groceries all over Cairo and Giza through its web and mobile-based platform.
Mohamed Abbas, the founder and CEO, of Trolley said that they are using a hybrid model, owning and storing a part of their inventory in their own warehouse (and distribution center) and relying on small offline grocery chains for the rest of products. He said that they’re selling over 20,000 products (SKUs — Stock Keeping Units) with over 500 of these owned and stored in their own warehouse.
Trolley also has its own fleet that delivers groceries (including fruits and vegetables) to customers all in Cairo and Giza. The startup claims that it offers two-hour delivery in all parts of these two cities.
The startup is currently completing over 400 orders every month with 30 percent of products being fulfilled from Trolley’s own warehouse and the rest being sourced from its partners. Trolley, learning from its data, is also adding the more products that are being ordered on a frequent basis by customers to its own warehouse.
Mohamed said that they’re planning to expand to three more Egyptian governorates by mid-2020, starting with Alexandria. Trolley plans to use a large part of investment on its marketing efforts. The startup will also use the investment to further develop its website and apps and expand its team.
Trolley currently employs over 20 employees with most of them being part of its fleet team.
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.
Nine years down the line, South African startup Nomanini has added $4 million to its funding portfolio. With the new funding round led by Standard Bank of South Africa, the fintech startup would be looking to scale further across Africa. This is obviously a classic case of how corporate partnership with startups can go along way.
Here Is The Deal
The US$4 million funding round was led by Standard Bank, Africa’s largest bank, and was completed by Goodwell Investments, an Amsterdam-based investment firm.
With the new investment, the fintech startup would be looking to scale further across Africa.
Founded in 2010, Nomanini has developed a platform that enables informal merchants and micro-entrepreneurs in emerging markets to distribute digital goods such as airtime and prepaid electricity.
Nomanini, which with previous funding from Goodwell and Fundamo founder Hannes Van Rensburg has now raised over US$6 million, will now expand across Africa via a mobile application launched by Standard Bank.
The app provides access to new lines of business, credit and savings services for millions of informal merchants across 15 African countries, namely South Africa, Zambia, Mozambique, Uganda, Malawi, Angola, Zimbabwe, Namibia, Ghana, Nigeria, Kenya, Tanzania, eSwatini, Lesotho and Botswana.
Why Standard Bank Invested In The Startup
Standard Bank invested in the startup but most importantly will partner with it to scale its operations. Standard Bank will use the Nomanini platform to unearth previously unavailable data on the informal retail economy.
“The reality is, around 86 per cent of all employment in Sub-Saharan Africa is informal. Going to the bank and filling out forms for a loan is simply not viable — and can take days. In Nomanini, we’ve found a partner uniquely placed to help micro-merchants in Africa thrive, not just survive,” said Adrian Vermooten, head of digital in Africa Regions at Standard Bank.
“Our partnership and investment in Nomanini has helped us uncover simple, scalable opportunities while granting new and existing customers access to financial services for the first time. Previously, this type of information was unavailable to us but now our merchant customers can access banking services wherever they are and whenever it suits them.”
According to Nomanini’s founder and chief executive officer (CEO)Vahid Monadjem:
“This partnership with Standard Bank will be instrumental for Nomanini’s next wave of growth, while ensuring that millions of Africa’s underserved micro-entrepreneurs receive access to digital financial services for the first time. And this is just the beginning,”
The partnership also allows Nomanini to add merchant financing to its existing service offering, with the company planning to expand its portfolio of financial services to offer remittances, insurance and other products in the future.
“Nomanini’s interoperable wallet is a gateway to a whole range of digital banking services — loans and savings now but soon, remittances and insurance too. It’s only by bridging the divide between the digital and the physical cash that rules in these markets that we’ll be able to rewrite the rules of informal retail trade in Africa, ”said Vahid Monadjem.
What Nomanini Does
Nomanini enables informal merchants and micro-entrepreneurs in emerging markets to distribute digital goods such as airtime and prepaid electricity.
The startup also offers micro-loans to merchants and operates in markets such as Ghana and Mozambique.
Africa’s fintech companies have raised $320 million in funding since January 2015 and the ecosystem has surged 60% in the last two years.
Nigeria led the investments in 2018 with 58 startups raising $94,9 millions, followed by South Africa with 40 businesses that raised $59,9 millions, and Kenya was third.
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.
IATF will pave way for greater intra-African trade – Davies
Dr Rob Davies, South Africa’s Minister of Trade and Industry says South African business people should consider the continent as an extremely important market, especially for trade in value-added products.
Davies, who is the leader of South Africa’s delegation to the Intra-African Trade Fair says the Fair provides a platform for sharing trade, investment and market information and enabling buyers and sellers, investors and countries meet, discuss and conclude business deals.
While he commends the achievements of the last IATF in Cairo in 2018, describing it as an excellent opportunity for South Africa to grow its export volumes, especially into the rest of the continent and to promote the export of goods and services. He sees the next Fair coming up next year in Kigali Rwanda as a game changer. “When we look at trade with the continent from the South African point of view, there is an easy way of telling the big story. The story is that two-thirds of South Africa’s trade is with the world, whilst a third of the trade is with the African continent. Of the latter, two-thirds comprise trade in value-added products,” Davies notes.
What is more, even though total trade among African countries is still lower compared to other continents, Davies is optimistic that platforms such as the IATF will pave the way to increase trade in Africa. “We believe that during the course of the Intra-African Trade Fair, South African exhibitors will find trading partners with the Egyptian business community and hopefully, with other African countries too,” he says.
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.
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.
