News - Afrikan Heroes

Kenyan Solar Startup d.light Secures $65 Million Debt Funding From Solar Frontier Capital

June 14, 2020

Solar Frontier Capital Limited and solar energy startup d.light, a leading global innovator of solar energy products, have jointly announced the establishment of a KSh6.5 billion ($65 million)financing vehicle to be known as Brighter Life Kenya 1 (BLKI) Limited.

“We are excited to announce this innovative funding structure in partnership with SFC,” said d.light CEO Ned Tozun.

“BLK1 provides us with the flexible local currency receivable financing we need to make our Kenyan business sustainably cash flow positive, which is an important milestone for sustainability for d.light and the off-grid energy industry as a whole.”

Here Is What You Need To Know

The off-balance sheet financing vehicle is dedicated to acquiring pay-as-you-go solar home system accounts receivables from d.light’s Kenyan subsidiary to provide the company with flexible, working capital to finance its continued growth.
BLK1 is expected to finance the provision of improved energy access to 1.2 million people in Kenya, coming on the heels of d.light celebrating its 100 millionth customer.
Part of BLK1 is being financed by a Sh2 billion ($18.7 million)senior debt commitment from US International Development Finance Corporation (DFC).
SFC, a wholly-owned subsidiary of African Frontier Capital (AFC, Mauritius), acts as the subordinated lender and the master servicer under the transaction.
The project has been structured to provide d.light Kenya with local currency financing over a two-year commitment period and is intended as the first in a series of vehicles designed to provide d.light with continuing access to sustainable and affordable local currency receivable financing.

Why The Investors Invested

Eric De Moudt, founder and CEO of AFC, said:

“We have been very impressed with d.light as a leading innovator in the distributed energy access sector, and SFC is delighted to be partnering with them on this high impact receivables financing structure. We are greatly looking forward to supporting d.light with on-going access to affordable and sustainable financing to continue impacting so many lives in Kenya and around the world.”

“DFC is proud to team up with d.light and AFC to expand affordable energy to more than a million Kenyans living in off-grid communities,” said DFC Managing Director for Africa Worku Gachou. “This innovative collaboration will deliver reliable electricity access that individuals depend on to live, cook and learn and businesses require growing, investing, and creating jobs.”

d.Light At A Glance

Although started by the Americans Sam Goldman and Ned Tozun, the Kenya-based startup provides solar-powered solutions — ranging from lights, phone chargers, radios, and even televisions — which are sold in over 60 countries.
In April, it opened a regional office and service center in Eldoret, Kenya as part of the company’s expansion strategy to reach and impact 100 million lives globally by 2020.
The center offers sales services and after-sales services for d.Light’s products including solar home systems and portable solar powered lanterns.
In 2019, the startup received up to $18 million capital injection from a consortium of lenders to help accelerate its growth in Africa.

What Does Receivable Financing Mean In Startup Funding?

According to Velotrade, receivables financing takes place when a business receives funding based on purchases that have been made but haven’t been paid for by the clients (accounts receivable).

“A business sells kitchen equipment. They receive a big purchase order by a national restaurant chain (the client). The client is interested in buying equipment worth $400,000. However, even though the restaurant chain needs the equipment right now, it can only make the full payment in the next 4 months. The supplier accepts the terms, delivers the kitchen equipment, and issues an invoice for $400,000 due in 4 months.

Understandably, if this type of purchase is repeated by several other clients, the supplier might run into a cash flow shortage while waiting for payments to be made, jeopardising the company’s ability to function.

The supplier, who wants to avoid cash flow issues, decides to sell the invoice to an invoice factoring company. After checking, among other things, the creditworthiness of the debtor and the length of the commercial relationship, both parties agree terms. The invoice factoring company will advance them $316,000 on the same day the supplier sells the invoice. Then, when the client pays off the full amount due, the invoice factoring company will release the remaining $84,000 minus a factoring free.
Read also:https://afrikanheroes.com/2020/03/18/a-new-160m-energy-inclusion-fund-launched-for-solar-energy-startups-in-africa/

By doing this, the supplier gets access to cash immediately after the purchase, the client gets the equipment it needs and gets to pay later, and the factoring company profits from the factoring fees. It’s a win-win situation,” Velotrade illustrates.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.

International Criminal Court Reacts to Claims by the United States

June 13, 2020

The International Criminal Court (ICC) has reacted to claims by the United States on its planned withdrawal from the global body pointing out that it stands firmly by its staff and officials and remains unwavering in its commitment to discharging, independently and impartially, the mandate bestowed upon it by the Rome Statute and the States that are party to it.

The World Court expresses profound regret at the announcement by the United States that it will withdraw from membership of the Court if the Court goes ahead to hear cases of human rights abuses brought about against some of her soldiers in Afghanistan. It added that further threats and coercive actions, including financial measures, against the Court and its officials, made earlier by the Government of the United States is unacceptable.

Read also:https://afrikanheroes.com/2020/06/05/sexual-harassment-accusations-rock-the-nigerian-tech-community/

The ICC notes that it will continue to firmly stand by its staff and officials and remains unwavering in its commitment to discharging, independently and impartially, the mandate bestowed upon it by the Rome Statute and the States that are party to it. These are the latest in a series of unprecedented attacks on the ICC, an independent international judicial institution, as well as on the Rome Statute system of international criminal justice, which reflects the commitment and cooperation of the ICC’s 123 States Parties, representing all regions of the world.

These attacks constitute an escalation and an unacceptable attempt to interfere with the rule of law and the Court’s judicial proceedings. They are announced with the declared aim of influencing the actions of ICC officials in the context of the Court’s independent and objective investigations and impartial judicial proceedings. An attack on the ICC also represents an attack against the interests of victims of atrocity crimes, for many of whom the Court represents the last hope for justice.

As it continues to meet its mandated responsibilities, the Court relies on the staunch support and cooperation of its States Parties. The Court wishes to recall, in this context, yesterday’s joint statement from the ten ICC States Parties members of the UN Security Council, reconfirming their “unwavering support for the Court as an independent and impartial judicial institution,” as well as the press statement issued earlier today by the President of the Assembly of States Parties.

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

African Business Leaders Urged to Treat Asset Protection as an Investment

African business leaders have agreed on the need for the continent to start treating asset protection as an investment in line with what obtains elsewhere in the world. This was the summary of the communiqué at the end of a webinar which took place yesterday in Cape Town, South Africa on the theme, the ‘Navigating Risk: Increasing Threats in the African Energy Market Under COVID-19’ hosted by Africa Oil & Power and the Africa Energy Chamber, tackled current threats to physical and cyber security of oil and gas assets on Friday; Panelists included Dr. Sara Vakhshouri, Founder & President of SVB Energy International; Shawn Robert Duthie, Managing Director of Inyani Intelligence; and C. Derek Campbell, CEO of Energy & Natural Resource Security, Inc.

C. Derek Campbell, CEO of Energy & Natural Resource Security, Inc.

Leaders in African energy risk management united in a webinar on Friday under the theme, ‘Navigating Risk: Increasing Threats in the African Energy Market Under COVID-19,’ to put forth strategies for mitigating physical, cyber and security risks, with a view toward protecting employees and assets. From regulatory uncertainty to political unrest to physical and cyber security attacks, the risk of investment in several African countries has been heightened by the onset of COVID-19, not least of which has been the threat to stable energy demand.

“Global lockdowns have had a severe impact on both prices and demand. This double shock – in which both prices and demand collapsed – has implications for both oil producer and consumer countries,” said Dr. Sara Vakhshouri, Founder & President of SVB Energy International. “African countries are facing challenges to security of demand, since global consumption has been significantly hit. There are expectations that by the end of this year, demand will increase further and countries will start racking up their exports. But in the case of major African producers like Nigeria, we are seeing that they have not yet complied with OPEC production cuts.”

“The big impact of COVID-19 has been government-imposed lockdowns. It is the economic hit that increases risk for all businesses,” said Shawn Robert Duthie, Managing Director of Inyani Intelligence. “Lack of money means a lack of money for social services and social delivery. This could lead to social conflict. In South Africa, we haven’t seen much protest, but underneath it all, there is a growing social tension about how the government’s lockdown has affected people’s livelihoods and jobs.”

Reduced government revenues from crude oil exports due to a drop in demand could also lead to changes in tax and regulatory frameworks that govern oil-producing countries. “Looking at a more macroeconomic level, we might see new regulations that increase taxes or financial burdens, especially on foreign companies and large multinationals,” Duthie added. “This is a risk for a lot of places, especially high-risk countries such as Democratic Republic of Congo and Burkina Faso that do have natural resources.” When it comes to the increased threat to asset protection faced by companies during COVID-19, the question remains whether the crisis has only shed light on, rather than created, existing breaches in security.

“With a situation like COVID-19 coupled with depressed prices, your assets are exposed,” said C. Derek Campbell, CEO of Energy & Natural Resource Security, Inc. “You have human terrains gaps, cyber security gaps and indications and warnings of extremist groups looking at ways to attack infrastructure. As you have reduced manpower and lack of risk identification methods, you have invasion of sites. That’s at a tactical level.” He highlighted that to mitigate potential threats to on-the-ground risk and security, regular risk assessment programs must be conducted to identify weaknesses and prevent breaches in security from affecting returns on project investments.

“Companies need to ensure that they have a consistent review and assessment program using global standards,” said Campbell. “In addition to an initial assessment, it needs to be done periodically. As an operator, you need to be able to ensure resiliency so that you can maintain continuity of operations. If you cannot do that, then you cannot optimize and monetize the asset. And that is what is at risk – capital investments in upstream, midstream and downstream projects. That is impacted by depressed prices because your posture is down and you are not concerned about protecting from physical and cyber risk, which ultimately impacts the financial risk.”

Sub-Saharan Africa has seen several physical and cyber-attacks in recent months, from pirates and vandals to militants, suggesting a need to prioritize investment into the security of projects in the region. “There are a number of recent attacks offshore Equatorial Guinea, in Algeria around 2011 and 2012 and consistent threats that happen in Nigeria to operational networks in oil and gas, onshore and offshore,” Campbell noted. “When investors come in, they squeeze projects, charging a high rate of return. In order to mitigate financial risk, they squeeze the project and expect to get their returns in three years. But then the operator cannot mature the project because they don’t have the cash. To mitigate that financial interplay between owners and operator, I recommend not looking at security of your asset as a cost, whether it’s a new Greenfield or ongoing activity. It is an investment that will help you mature that asset and make it grow.”

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

Raise Launches End-to-End Fundraising Platform for African Startups

June 12, 2020

As part of efforts aimed at curbing rising youth unemployment across Africa, a Kenyan firm is living up to its name by launching an end-to-end fundraising platform that allows founders and investors to open a private virtual deal room, run fundraising simulations, and issue compliant electronic share and convertible certificates. Established two years ago by Marvin Coleby and Eugene Mutai, Raise launched its alpha in 2019 at the Africa Tech Summit in Kigali and silently launched its private beta to a waitlist of companies in January of this year. The beta programme which is presently public provides startups with fundraising solutions via a digital platform, designed to simplify the fundraising process and make it easier to track and close deals remotely in Africa.

Since the beginning of this year, Raise has transacted a volume of over US$20 million and is used by startups and venture capital firms in Kenya and Nigeria. Notable partners and customers include Helium Health, which recently raised a US$10 million Series A round, and venture capital firms Microtraction and Chrysalis Capital.

Marvin Coleby, co-founder and CEO said that “At Raise, we’re founders – and we’re here to support founders. We’re releasing the public beta to support the ecosystem’s transition to the new norm of remote investing. At Raise, our mission is to bring security, transparency and simplicity to the African VC space – and really make the fundraising process easier and simpler for everyone,” said Coleby, Raise’s chief executive officer (CEO).

Nichole Yembra, managing director of Chrysalis Capital, which manages fundraises for startups like Helium Health and Flutterwave, said Raise helps African companies inspire trust with the global tech ecosystem.

“We’ve seen the data about how it takes African startups 400+ days to raise funding and a lot of the delays come in the due diligence process. With Raise, companies can proactively load all the data investors usually want to see, cap tables, formation documents, metrics, etc, which simply inspires more confidence and simplifies the fundraising process,” she 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

Amid Crisis, AfDB’s Vice President Quits

Vice President for Agriculture, Human and Social Development, Dr. Jennifer Blanke

Still mired in the crisis dodging its President, Dr. Akinwunmi Adesina, the African Development Bank is once again grappling with the sudden resignation of its Vice President for Agriculture, Human and Social Development, Dr. Jennifer Blanke, who suddenly put in her resignation and will be leaving the Bank effective July 4, 2020. Blanke joined the Bank in early 2017 and has overseen a number of the Bank’s key programs.

Giving reasons why she is leaving, Dr. Blanke said that she expresses gratitude to President Akinwumi Adesina for his strong leadership, guidance and support which have undoubtedly motivated and helped my team and I to play a key role in the transformation of the Bank. “I feel privileged to have been given an opportunity to contribute to the Bank’s agenda for accelerating Africa’s social and economic transformation,” Blanke said, adding that “I am leaving purely for family reasons to rejoin my family in Switzerland, after a very fulfilling time at the Bank. I will miss the Bank and the excellent team we have built. I will continue to strongly support the Bank from wherever I am.”

Responding to the news, the Bank’s President, Akinwumi Adesina said that “I have been delighted to work with Dr. Jennifer Blanke over the past three and a half years. She has demonstrated genuine leadership skills and moved the needles on so many fronts, especially in the areas of food security, women’s financial empowerment, and job creation. I wish her all the best and look forward to continued partnerships and engagement with Jennifer.”

It could be recalled that Dr. Adesina has been mired in series of investigations after a group of whistleblowers’ wrote to the Bank’s Board of Directors calling for investigations into what they termed as official infractions by the Bank’s President. The President responded to the allegations calling it a hatchet job by elements who are working against Africa’s development. The initial investigations by the Board were rejected by the United States Government forcing the Bank to invite an external investigator to look into the earlier submission. However, African leaders, and many African institutions have thrown their weights behind Adesina.

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

Morocco’s Economic Growth Slowed to 2.5% in 2019

Morocco has recorded a setback in its economic growth, estimating a 2.5% increase in 2019 compared to 3.1% in 2018. A new report from the High Commission for Planning (HCP) showed on June 6 that the net growth slowed down in 2019 due to two main factors. One is a 5.8% decline in volume of added value in the agriculture sector after an increase of 3.7% in 2018. The other is a 3.8% increase in the added value of non-agricultural activity, compared to 2.9% in 2018. The growth rate of gross domestic product (GDP) rose from 3.1% in 2018 to 3.5% in 2019 due to a 2% increase in net taxes of subsidies on products, compared to 4.6% in 2018.

The GDP at current prices increased by 3.9% in 2019 after 4.3% in 2018. The GDP generated an increase in the general price level of 1.3%, compared to 1.1% the previous year. The country’s domestic demand increased by 1.8% in volume last year after seeing a 4% increase in 2018, contributing to national economic growth by 2 points compared to 4.4 points. Household consumption expenditure also increased by 1.8% instead of 3.4% in 2018 with a contribution to growth with one point instead of two points. Spendings of public institutions recorded a growth rate of 4.7% in 2019 instead of 2.7% a year earlier, with a contribution to growth of 0.9 instead of 0.5 points.

Gross investment registered a marked slowdown in its growth, moving from 5.8% in 2018 to 0.1% in 2019. Foreign trade in goods and services was beneficial to the country’s growth, standing at 0.5 points instead of -1.2 points in 2018. Exports of goods and services recorded an increase of 5.5% compared to 6% a year earlier, with a contribution to growth of 2.1 points instead of 2.2 points. Imports of goods and services, however, slowed to 3.3% after slowing to 7.4% the previous year, with a negative contribution of -1.6 points in 2019 instead of -3.5 points in 2018.

The HCP shows that gross national disposable income increased only 3.6% in 2019 after 3.1% in 2018 to stand at MAD 1,203 billion (approximately $120 billion). This is the result of a 3.9% increase in the country’s 2019 GDP compared to 4.3% the previous year, and a 1.5% decrease in the rate of increase in net income received from the rest of the world compared to a rate decrease of 16.9% in 2018.

National reserves stabilized at 27.8% of the GDP, with a 3.5% increase in national final consumption in value instead of 4.4% recorded a year earlier. Gross investment (GFCF and inventory change) represented 32.2% of GDP compared to 33.4% a year earlier, the HCP concluded.

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

Youth Unemployment Costs Africa $79 Billion Loss Annually

June 11, 2020

Dr. Vera Songwe, UN Under Secretary General and Executive Secretary of ECA

With one of the youngest populations in the world, the African continent also suffers from the middle bulge which leads to having one of the highest unemployment rates in the world. As a result, Africa loses $79 billion annually due to youth unemployment. This was the submission of the Executive Secretary of the UN Economic Commission for Africa (UNECA), Vera Songwe during a global online webinar recently. According to her, approximately 34% of African population is aged 15 to 34, but most of Africa’s youth are unemployed, Songwe added at the videoconference discussion about African youth leaders which took place during the week.

“We are not a continent that can afford to lose $79 billion a year, so we need to find a way to employ ourselves and to harness the incredible innovation of African youth,” she said noting that “during this COVID-19 crisis, we are asking the rest of the world to give Africa $100 billion for recovery. But if we all had jobs, we would have even more resources than what we need.”

She then urged young Africans to be bold and seek solutions to the challenges facing Africa, expressing her pride in the innovation that Africans have shown during the COVID-19 pandemic. The virtual discussion focused on the specific challenges that face young Africans amid the COVID-19 pandemic and the efforts of youth to respond to the health crisis, as well as the themes of education, innovation, employment, health, and civic engagement.

Using Morocco as example, she pointed out that as of the first quarter of 2020, Morocco’s unemployment rate stands at 10.5%, increasing from 9.1% during the same period in 2019, in one year, the number of unemployed people in Morocco increased by 208,000, bringing the total count of unemployed Moroccans to 1,292,000. The unemployment rate increased the most among young people aged 15 to 24, with a 3.9% increase, followed by 25- to 34-year-olds (2.3%). According to the latest figures, more than one quarter of Moroccans aged 15 to 24 (26.8%) are unemployed.

The figures, issued by Morocco’s High Commission for Planning in March, do not account for the increase in unemployment due to the COVID-19 pandemic. In late April, a report revealed that approximately 726,000 employees in Morocco’s formal sector have lost their jobs, either temporarily or definitively, due to the COVID-19 crisis. The figure represents 20% of the country’s manpower in the formal sector. As for the informal sector, more than 4.3 million workers have declared losing their job because of the nationwide lockdown and applied for financial aid.

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

Peponi Gruppe Launches App as it Ventures into Ghana’s Tech Industry

As part of efforts aimed at expanding its operations to other sectors of the Ghanaian economy, and be buffered from the dislocations occasioned by the Covid-19 pandemic and crash in commodity prices, Ghana’s leading property development and maintenance company Peponi Gruppe has successfully morphed into a tech company by developing an on-demand mobile application for maintenance services that is seeing strong monthly growth.

Peponi Gruppe which was established as an infrastructure and property management services in 2017 diversified with the launch of PEPs, an Android and iOS mobile app that allows people to connect with plumbing, electrical, and cleaning services and have providers at their doorsteps in less than 45 minutes.

According to the co-founder and Chief Operating Officer (COO) of Peponi Gruppe, Frank Agyemang “the app is a practical solution to an age-old and everyday problem – finding highly-skilled, reliable and effective professionals for common household and office maintenance services,” adding that “even though there are road-side technicians or individual providers, most people are not able or reluctant to hire them due to their unpredictable pricing, delays in getting requested services, and the unreliability of these providers. They also do not provide a one-stop-shop of services.”

PEPs does, and uptake has been strong from the off. It already has around 100 monthly active users, with numbers increasing by 20 per cent month-on-month. While users have greater convenience, service professionals are also provided with a whole new way of reaching customers. With the initial market response so positive, Peponi Gruppe now wants to take advantage. Agyemang said the company is in talks with a number of venture capital firms as it looks to raise US$500,000 by the close of this year to expand its operations to three more cities and a whole new market. “PEPs has managed to gain grounds in Accra and Tema, and plans are far advanced to expand our services to Takoradi and Kumasi this year and Nairobi, Kenya, in the second quarter of next year,” Agyemang said.

Revenue is generated from the mobile app by service providers paying Peponi Gruppe 25 per cent of the amount charged for the job they receive from the mobile platform. “Revenue has been encouraging and we are about breaking even,” said Agyemang.

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

DHL Reshuffles Management in West Africa and Morocco for Bigger Impacts

June 10, 2020

Global logistics giants DHL Global Forwarding has embarked on efforts aimed at sharpening its focus on West Africa and Morocco with three new executive strategic leadership appointments. DHL Global Forwarding which is the leading international provider of air, ocean and road freight solutions has strengthened its leadership teams in Burkina Faso, Cote d’Ivoire, Senegal and Morocco with new country manager appointments. In the West Africa region, Gisele Bambara will now lead a team made up of almost 80% women in Burkina Faso, where they have grown the business exponentially in the past 14 months to establish DHL Global Forwarding as the preferred logistics provider of choice among its customers.

Serigne Ndanck Mbaye, CEO, DHL Global Forwarding, West Africa

Lamine Junior Cisse will assume the dual role of country manager for Senegal as well as the region’s Industrial Projects commercial manager. He joined DHL from an international energy firm and takes over the country manager position from Elhadji Galaye Ndaw while Ndaw has been tapped for his expertise in business development, sales and marketing to advance the business in Cote d’Ivoire for the company. All three executives will report directly to Serigne Ndanck Mbaye, CEO, DHL Global Forwarding, West Africa.

Tina Manoukian, an industry veteran who has been with DHL for 22 years, has been appointed to manage DHL Global Forwarding’s growing presence in Morocco, reporting directly to Pramod Bagalwadi, CEO, DHL Global Forwarding, Sub-Saharan Africa. DHL has been expanding its automotive portfolio in the past few years as the country emerges as one of the continent’s largest motor industries.

Bagalwadi is excited about the North African country prospects. “Morocco is really buzzing at the moment, thanks to the government’s efforts to invest substantially on rail and road infrastructure as part of its economic strategy. We have seen an influx of foreign direct investments, especially in its automotive industry, due to the numerous automotive free trade agreements with the European Union and the United States. I’m confident that Tina will help raise the bar further for our business in Morocco,” said Bagalwadi.

Speaking on the new strategic leadership changes, Mr. Mbaye notes that “the economic outlook for West Africa remains positive, and we are especially upbeat about the opportunities present in these three countries, which are among the continent’s top ten economies. With these new country heads, I am convinced that we are now better equipped to advance our market leading position in the forwarding business,” said Mbaye.

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

Two Nigerian Startups Get $200,000 Investment from Harambe Entrepreneur Alliance

Irrespective of the gloomy cloud that envelopes the business world as a result of the disruptions caused by the Covid-19 pandemic across the world, some businesses seem inured to its overall impacts as investors are busy identifying opportunities within the startup ecosystem, and picking up cherries that suit their expectations. In a move close watchers describe as encouraging, Harambe Entrepreneur Alliance has announced an investment of $200,000 in two Nigerian startups; MAX and Releaf Group. This follows the earlier announcement by Harambe Entrepreneur Alliance that it has raised $1 million through the Harambeans Prosperity Fund to support its African portfolio companies affected by the economic challenges of the Covid-19 pandemic.

Adetayo Bamiduro, co-founder, Metro Africa Xpress (MAX)

Company sources say that The Harambeans Prosperity Fund will invest between $25,000 and $100,000 in startups founded by the Alliance’s members, called Harambeans within this period by adopting a rules-based co-investment model and it has since invested $200,000 in two companies operating on the continent. It invested $100,000 equity financing in Metro Africa Xpress (MAX), the Nigerian mobility company which was co-founded by Adetayo Bamiduro who became a Harambean in 2015.

It also invested $100,000 debt funding in Releaf Group, a Nigerian agritech company that is using technology to address supply chain challenges in the agriculture industry. The startup was co-founded by two Harambeans, Emmanuel Udotong and Ikenna Nzewi. Speaking on the development, Okendo Lewis-Gayle, Chairman of Harambe notes that “what we suspect is 70% to 80% of non-VC backed startups could vanish over the next three to six months,” adding that “what this moment requires us to do is to begin to reimagine our business model [and] repurpose our assets.” He opined that as innovators, “this is what we do and now have to do so with an added sense of urgency”.

Founded in 2008 by Okendo Lewis-Gayle, Harambe Entrepreneur Alliance supports innovators developing solutions to problems on the African continent. He describes it as an ecosystem that enables founders to learn from each other and grow together. “One of the challenges of the African entrepreneurial ecosystem is that it is still in its early days,” Lewis-Gayle told TechCabal. “Therefore, we don’t quite have enough investors, enough experienced talent for the different parts of the venture.”

By joining Harambe, he explained, members can leverage the experience and network of each other to grow. During this pandemic, Harambeans have organised virtual knowledge transfer sessions on building high performance teams raising funds and serving customers. Harambe is backed by a number of partners including US Company, Cisco Systems, and the Oppenheimer Generations, a foundation of South Africa’s Nicky and Jonathan Oppenheimer.

Since 2008, Harambean-founded companies have raised over $500 million and created over 3,000 jobs. Notable investors include TLCom Capital, Google Ventures, YCombinator, Breakthrough Energy Ventures, Chan Zuckerberg Initiative and Alibaba. According to a recent press release, this “stellar track” funding record by its members has further unlocked as much as $9,000,000 in additional capital for the Harambeans Prosperity Fund.

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