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Egypt: Food-tech Startup Yumamia Raises $1.5 million For Expansion to Saudi     |     MTN Nigeria Lists On The Nigerian Stock Exchange Today     |     Amazon Launches More Robots, Offers Employees $10,000 To Resign     |     Airtel Africa Set To Offer $1bn Shares To The Public On The London Stock Exchange     |     Kenyan e-Health Startup Raises $3m For Expansion     |     South Africa Begins Oil Exploration In South Sudan     |     US Embassy In Kenya Suspends E-Passport Requirement     |     MTN Nigeria Prepares To List On The Nigerian Stock Exchange, Converts To A Public Company     |     Ghanaian Startup mPharma Acquires Kenyan Second-largest Pharmacy Chain     |     Dangote Refinery Plans To Reduce The West African Crude Oil Importation With 650, 000 Barrels Per Day     |    
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Egypt: Food-tech Startup Yumamia Raises $1.5 million For Expansion to Saudi

May 23, 2019

More and more startups in Africa are finding more funding for their businesses. The latest in town is the Cairo-based foodtech startup, Yumamia, which has raised $1.5 million in its Pre-Series A funding round.

Saudi Arabia-based boutique consulting firm, Pure Consulting, is providing the funding for the startup. The funding round would take Yumamia’s total investment raised so far to $2.8 million. This would make it one of the best-funded startups in Egypt.

The startup has already decided on what it is going to do with its latest funding: expand to Saudi by launching in Riyadh later this year and accelerate growth in Egypt.

Image result for Egypt Startup ecosystem funding

Yumamia Food At A Glance

The startup was founded in 2014 by Belal El Borno. What Yumamia does is to deliver junk-free (wholesome) food prepared by professional chefs using premium ingredients and top hygiene standards to customers in Cairo. It has also recently expanded into corporate catering, with an additional business-to-business (B2B) solution.

Image result for Egypt Startup ecosystem funding

Yumamia’s Strategies

  • To make the startup stand out, it partners with Food & Beverages outlets to assist them in making money out of their underutilized resources. They do this by outsourcing their entire food preparation operations.
  • Yumamia relies on a franchise-like model that allows these F&B outlets to operate using existing resources while following operating rules and recipes of Yumamia.

  • Yumamia takes the food and sells it to companies through its corporate catering solutions. 

  • With its ordering platform for offices, employees of companies (that partner with Yumamia) may order food (lunch) on a daily basis. The platform comes with a dashboard for HR/Operations to manage the invoices.

  • Yumamia charges the companies who can either provide the food for free to their employees or charge them perhaps by deducting the monthly invoices from their payroll.

Also Read: Egypt Establishes Seven More New Free Trade Zones

  • Yumamia also has a food delivery platform for consumers (B2C), although over eighty percent (80%) of its revenue comes from its B2B platform.
Image result for Egypt Startup ecosystem funding

Charles Rapulu Udoh

Charles Rapulu Udoh, 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 organisations 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/

MTN Nigeria Lists On The Nigerian Stock Exchange Today

May 16, 2019
MTN

MTN Nigeria is expected to sound the gong and begin trading on the Nigerian Stock today. Barring any unforeseen circumstances, MTN Nigerian would be listing a total of 20,354,513,050 shares at N90 per share today.

When listed at N90 per share, MTN Nigeria would emerge the second largest company on the Nigerian Stock Exchange after Dangote Cement, with a market capitalisation of N1.83tn. So investors should get their money handy.

A shopper walks past an MTN shop at a mall in Johannesburg, South Africa, March 2, 2017. REUTERS/Siphiwe Sibeko

Key Things To Note About This Listing By MTN Nigeria

  • The company, also, recently announced aN48.4 billion Profit After Tax, PAT, for its first quarter, Q1, ended March 31, 2019, representing 50.2 percent increase compared to N32.2 billion recorded in the corresponding period in 2018.
  • MTN claims it can pay up to 80% of its earnings after tax as dividends.
  • MTN said the proposed listing on the NSE would create a new telecoms asset class for investors and provide a wider group of Nigerians with a chance to participate in the MTN investment opportunity.
  • The listing on the NSE is one of the conditions reached in the resolution of the N330bn fine placed on the telco by the Nigerian Communications Commission for its inability to disconnect improperly registered SIM cards.

Related: MTN Nigeria Prepares To List On the Nigerian Stocxk Exchange, Converts To A Public Company

  • MTN is not going to list through IPO, but by introduction in the first half of 2019. Listing by introduction means MTN is not offering its shares fully to the public yet.

Listing by Introduction

  • To be able to list by introduction, the company would usually have raised capital prior to applying to list, and also must meet the listing requirements — including a minimum number of public shareholders (300 to list on the Main Board; 51 to list on the Alternative Securities Market (ASeM) and minimum public float (20% for the Main Board; 15% for ASeM). ASeM provides a platform for small and mid-sized fast growth companies to raise critical long term capital at relatively low cost to realize their business potential.

What does this mean? 

“It means that we will list the company in the initial phases without any public offer or sell-down or initial public offering. I think this will enable us to get the company listed whilst the market still digests the implications of what has happened over the last few months,” The President/Chief Executive Officer, MTN Group, Mr. Rob Shuter, disclosed at the MTN Group’s investor update conference call in February.

“We will in phase two be doing a project to increase the Nigerian participation in MTN Nigeria, targeting more a free float of around 35 per cent than the free float we have today which is around 20 per cent. So, we aim to conclude at least the listing by introduction in the first half of 2019, pretty much as soon as we can, and then subject to market conditions, appetite and demand we would in phase two do the sell-down.’’

Can You Invest In MTN Nigeria’s Shares Now?

  • By the NSE’s Rules, MTN would need at least a minimum number of 300 public shareholders to able to list on the Main Board of the NSE where it is listing by introduction.
  • Since MTN is going by way of introduction, it may not able to open a larger portion of its shares for subscription as we have noted above. What is going to happen today is that MTN Nigeria would simply introduce the shares privately owned by its shareholders while it was still a private company on the Main Board of the NSE.
  • However, it would need at least 300 public shareholders to be able to fully comply with the NSE rules. What to watch out for is that a few of its private shareholders may get to sell their shares if the share prices are favourable to them, to keep the excitement on.
Operational and financial performance review, 2010

How To Prepare Yourself Better for MTN Nigeria’s Listing 

Once there is a willing seller for MTN Nigeria’s shares today who is ready to accept your offer price, then you have got a deal.

However, to participate in MTN’s shares, or other shares of companies you need to do the following:

  • Open stock brokerage account with a stockbroker registered in Nigeria. Here is a link to some of the stock brokerage firms in Nigeria;
  • Have any amount of money as you want deposited into your stock brokerage account.
  • Then notify your stockbroker to purchase shares for you at a price you quote.
  • However, if you operate an online trading account on the same online stock brokerage account, then without wasting much time, place an online bid for the shares and hope that an offer is available for you at the right price.
  • There you have it! A deal is sealed once your bid is accepted. 
  • A email notification alarms you of the transaction. 

Charles Rapulu Udoh

Charles Rapulu Udoh, 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 organisations 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/

Amazon Launches More Robots, Offers Employees $10,000 To Resign

May 14, 2019


Jobs are going, and are gone for some of Amazon’s workers. The company is bent on making profit. Human costs are being eliminated, and that includes anything that has a human touch to it. The company is rolling out machines that would be boxing up customers’ orders.

Amazon’s strategy is to install automated machines at warehouses which would kill at least job 24 roles previously done by humans at each warehouse. Everything being equal, more than 1,300 job cuts across 55 U.S. warehouses are expected. Amazon expects to recover the costs of installing these machines in these warehouses in two years, at $1 million per machine.

“We are piloting this new technology with the goal of increasing safety, speeding up delivery times and adding efficiency across our network,” an Amazon spokeswoman said in a statement. “We expect the efficiency savings will be re-invested in new services for customers, where new jobs will continue to be created.”

The New Machines Can Pack Four To Five Times Faster Than Humans 

Called the CartonWrap and manufactured by the Italian firm CMC Srl, the new machines can pack 600 to 700 boxes per hour making it four to five times faster than humans. All that is needed is one person who loads customer orders and another person who stocks cardboard and glue and a technician who fixes jams on occasion.

Completely Replacing Its Workforce?

Amazon does not have a plan of laying off all its workforce now. However, the game is that one day it will stop recruiting people to package its ordered goods for customers. In fact, Amazon has more workers than Microsoft, Google, and its employee base is one of the largest in the United States, with ranging from an average of $58,578 to $147,825 a year. 

Amazon also maintains some hiring deals with governments which often favours it. For instance, for the 1,500 jobs Amazon announced last year in Alabama, the state promised the company $48.7 million over 10 years, its department of commerce said.

Amazon is also asking employees to quit and is offering them help starting their own delivery businesses. Amazon said it would cover up to $10,000 in startup costs, as well as three months’ salary, for employees accepted into the program. So, in many ways, it is still retaining the human touch, but gradually gnawing at its human workforce.

In A Battle To Eliminate Losses And Boost Profit, E-Commerce Companies In The US Are Turning To Automation.

American companies such as JD.com Inc and Shutterfly Inc have also tested the automation machines. 

Walmart started 3.5 years ago and has since installed the machines in several U.S. locations.

The boxing machines are already proving helpful to Amazon. The company has installed them in busy warehouses that are driving distance from Seattle, Frankfurt, Milan, Amsterdam, Manchester and elsewhere.

Source: Amazon financial reports and Digital Commerce 360
  • Interest in boxing technology sheds light on how the e-commerce companies are approaching one of the major problems in the logistics industry today: finding a robotic hand that can grasp diverse items without breaking them.
  • These machines are not without flaws. The machines can only box so many per year. However, they need a technician on site who can fix problems as they arise, a requirement Amazon would rather go for.

Charles Rapulu Udoh

Charles Rapulu Udoh, 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 organisations 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.

Airtel Africa Set To Offer $1bn Shares To The Public On The London Stock Exchange

May 12, 2019

Any time from June, Airtel Africa is going to the London Stock Exchange to list its shares for subscription. A total of $1bn worth of shares would be open for subscription. The IPO would be one of London’s biggest this year.

A Breakdown Of Facts

  • Airtel Africa is made up of Airtel Chad;Airtel DRC; Airtel Gabon; AirtelTigo Ghana; Airtel Kenya; Airtel Madagascar; Airtel Malawi; Airtel Niger; Airtel Nigeria; Airtel Congo; Airtel Rwanda; Airtel Seychelles; Airtel Tanzania; Airtel Uganda; Airtel Zambia);

  • The company had a net profit of $83mn in the fourth quarter of the 2018–19 year to March, driven by its Airtel Money platform, after a loss of $49mn in the year-earlier quarter.
  • Investors including Warburg Pincus, Temasek, Singtel, SoftBank and the Qatar Investment Authority (QIA) have invested $1.45b in Airtel Africa through primary equity issuance, with the proceeds being used to reduce debt.
  • India’s Bharti Airtel established its presence in Africa by buying Kuwait-based Zain’s Africa operations for $10.7 billion in 2010. The company has grown to become Africa’s second-largest telecoms company, with over 94 million customers, and is in the top two carriers in most of the countries where it operates.
  • According to Ovum’s Africa Digital Outlook 2019, mobile revenue in Africa will increase from $54.9b in 2017 to $68b in 2022. Non-SMS mobile data revenue — from mobile broadband access and mobile digital services — is expected to more than double to $32.1bn over that period.

Going On IPO Despite Citron’s Claims Against Jumia

  • Although market appetite shown for Africa e-commerce company Jumia in its New York IPO in April may mean that the time is right, a report from Citron Research has, however, put a big stain on Jumia’s IPO filing. This is not however expected to affect Airtel’s credibility. Unlike Jumia, Airtel Africa is a profit-making company.

Related: Behold Jumia, The German Company That Became A Nigerian Fraud

‘‘In theory, the Jumia IPO should not affect demand for Airtel Africa shares because they have different business models,’’ argues Andrew Sekandi, an investment adviser at Alpha Sierra in London.
‘‘Airtel Africa, deserves to be judged on its own merits. But capital markets being what they are, Jumia’s success may draw in some retail investors and maybe even some institutions that would not previously have considered betting on an Africa-focused stock. Some investors will see the Jumia and Airtel IPOs as essentially a bet on the growth of African consumer markets and the middle class, so this could help Airtel,” Sekandi says.

‘‘Airtel Was Saved by Exapansion Into The African Market.’’

Image result for Airtel Africa revenue chart

Airtel was “Saved by Africa” in the face of falling profit margins in India, according to October 2018 research from Bond Critic published on Smart Karma. Bond Critic argued that Airtel’s expansion into Africa has been credit positive. Motilal Oswal, which rates Bharti Airtel, says the Africa business has been playing a key part in overall growth for the Indian company.

Strong momentum in Africa should continue on the back of potential to increase revenue share in some markets and growth in the use of Airtel Money, Motilal Oswal says.

Charles Rapulu Udoh

Charles Rapulu Udoh, 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 organisations 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.

Kenyan e-Health Startup Raises $3m For Expansion

May 8, 2019

An e-health Startup in Kenya, MYDAWA,founded in 2017, which enables consumers to conveniently purchase authentic high-quality medicines, health and wellness products through partnerships with healthcare practitioners and suppliers has raised US$3 million in funding from the Africa HealthCare Master Fund for accelerating a planned expansion into the Kenyan market. The startup has over 80,000 registered users.

KEY HIGHLIGHTS

  • With this, the startup has now completed its first round of external funding from the Africa HealthCare Master Fund, also established in 2017 and which is an investor in healthcare and related sectors across the continent.
  • The US$3 million round is expected to assist MYDAWA in expanding across Kenya, and further advancing its vision of providing access to affordable, genuine and high-quality medicine and healthcare products.
  • MYDAWA users are assured of genuine medicines and products as the application has secured the entire supply chain by getting medicines and other products directly from manufacturers and branded drugs that are made by World Health Organisation (WHO) approved centers, tackling the counterfeit issue in the market. 

Also See: Ghanaian Startup mPharma Acquires Kenyan Second Largest Pharmacy Chain

  • A unique track and trace mechanism have also been put in place to allow users to authenticate products through the app with a QR code or SMS to verify its source and genuineness. All products and medicines are secured with tamper-proof seals that contain the scratch to reveal authentication code.
  • Kenya is seen as a leader in innovation, and with solutions such as MYDAWA, the future of healthcare in Kenya and Africa is set for transformation where access to affordable and safe healthcare products will be experienced by all, MYDAWA managing director Tony Wood.
  • The startup has also partnered with a number of Insurance companies to ensure that medical policy holders also benefit from the solution, giving longevity to their insurance cover since prescription medicines are on average 20 per cent cheaper. Insurance companies are also beneficiaries as there are less fraudulent and illegitimate claims.

“ It was very important that a new partner shared this goal which is inspired by the Kenyan aim of improving access to healthcare for all. I am delighted to add the Africa HealthCare Fund to the team which brings expertise and international reach as well as funds,” said Neil O’Leary founder and chairman of MYDAWA.


Africa HealthCare Master Fund director Susumu Tsubaki said it was commendable that startups such as MYDAWA were leveraging on the power of new technologies to disrupt the healthcare industry to tackle the region’s challenges of access, quality and affordability of healthcare.

“Our mission has always been to support healthcare related initiatives in Africa to help them accelerate their operations towards a healthy continent,” he said.

Charles Rapulu Udoh

Charles Rapulu Udoh 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 organisations 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.

South Africa Begins Oil Exploration In South Sudan

May 6, 2019

South African is expanding its investment on the continent. Its latest deal is with South Sudan. It would be investing over USD 1 billion investment in South Sudan’s struggling oil industry, through its state-owned oil company, Strategic Fuel Fund (SFF).

The Nature of the Deal

  • Both Strategic Fuel Fund and South Sudan’s Nile Petroleum Corporation, will explore an area of 31,000 square kilometres (12,000 square miles) known as “Block B2”
  • Exploration takes immediate effect from today, and will continue for six years.
  • The $1billion investment will go into building a refinery and pipelines as well as oil exploration and training of workers and engineers in South Sudan. 

KEY FACTS:

  • South Sudan has the third-largest oil reserves in sub-Saharan Africa, according to the ministry.
  • South Sudan’s oil sector is currently being dominated by Chinese and Malaysian oil companies, while companies from Russia and Nigeria have also signed deals to explore new oil blocks.
  • At its peak, oil production in South Sudan was at 350,000 barrels a day, however production has been crippled, with oil fields severely damaged by almost six years of war.
  • South Sudan achieved independence from Sudan in 2011, but remained heavily dependent on its northern neighbour’s oil infrastructure — refineries and pipelines — for exports.

Charles Rapulu Udoh

Charles Rapulu Udoh 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 organisations 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.

US Embassy In Kenya Suspends E-Passport Requirement

May 3, 2019

The US Embassy in Kenya has put on hold a requirement that would have compelled all new US visa applicants to acquire the new e-passport.

The US embassy made the announcement on their Twitter handle saying that Visa applicants may now apply for a US visa with a non-digital Kenyan passport and that they would place a US visa in a non-digital passport until further notice.

US Embassy in Kenya

Holders of Current US Visas Have Been Advised Not to Take Any Action.

UPDATE: Visa applicants may apply for a US visa with a non-digital Kenyan passport. We will place a US visa in a non-digital passport until further notice. Holders of current US visas do not need to take any action.— U.S. Embassy Nairobi (@USEmbassyKenya) May 1, 2019

The announcement came barely 24 hours after the US embassy issued a notice informing all new visa applicants that they would only be granted the travel permit on the new e-passport.

The US embassy had made the announcement on Twitter handle stating that travellers with a valid US visa may travel with their current visa in the old passport but must also have the new e-passport to be allowed entry.

New Visa Applicants

The embassy had further stated that new US visa applicants must first possess the new passport before being issued with the US visa.

“Travelers with a valid US visa may travel with their current visa in the old passport but must also have a new e-passport for entry. It is not necessary to apply for a new visa,” the embassy had said.

Clarification:

US visas & non-digital Kenyan passports: U.S. visa applicants may make an appointment using old Kenyan passport but must have new e-passport before the US visa can be issued. Passports must be valid for 6 months upon entry & non-digital passports expire Aug 31, 2019.

— U.S. Embassy Nairobi (@USEmbassyKenya) April 30, 2019

Stringent Requirement

“US visa applicants may make an appointment using old Kenyan passport but must have new e-passport before the visa can be issued. Passports must be valid for 6 months upon entry & non-digital passports expire Aug 31, 2019,” the embassy had further said.

These developments have all come with the deadline for acquiring the new e-passport fast approaching.

Also See: World Bank Approves $250 Million Loan For Kenya’s Affordable Housing Project

The Immigration Department has however been under scrutiny from Kenyans over the perceived stringent requirements set out to applicants of the new e-passports.

Passport Application

The requirements for applying for the e-passport include a birth certificate and copies of parents’ Identification Cards.

Holders of the old generation passports must acquire the e-passport before August 31, 2019. All the old generation passports will be deemed invalid thereafter.

Applicants are required to start the application process for their passport on the eCitizen platform.

Thereafter they will be required to visit an immigration office in Nairobi, Mombasa, and Kisumu for collection of fingerprints, digital photo and signature and also to drop required documents.

Charles Rapulu Udoh

Charles Rapulu Udoh 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 organisations 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.

MTN Nigeria Prepares To List On The Nigerian Stock Exchange, Converts To A Public Company

April 24, 2019
MTN

Investors should get their money ready as MTN Nigeria has finally converted from a private to a public company and is now ready to invite members of the public to subscribe to its shares. The conversion is to fulfill the requirement of the Nigerian Stock Exchange whose guidelines say that to be qualified to list in Nigeria, a company must be registered as a public limited company with no restrictions on the transfer of fully paid shares; have a minimum of three (3) years’ operating track record; have a pre-tax profit from continuing operation of not less than N300million cumulatively for the last three (3) fiscal years and a minimum of N100 million in two (2) of these years.

A Look At The New MTN Nigeria Plc

  • In March 2019, MTN announced its earnings for the 2018 financial year, recording growth above inflation in full service revenue of 17.2 per cent and the addition of nearly six million new subscribers to the network.
  • The company announced Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of N453.1bn and expanded EBITDA margins to 43.6 per cent (excluding the CBN resolution amount).
  • The company also added 4.5 million active data customers in 2018, delivering data revenue growth of 39.3 per cent and expanding to 18.7 million the number of people that it connects to the possibilities that the Internet provides.
  • The company just acquired more 607,462 new internet users in February, increasing MTN’s data subscription to 46,538,633 as against 45,931,171 in January.
  • MTN said the proposed listing on the NSE would create a new telecoms asset class for investors and provide a wider group of Nigerians with a chance to participate in the MTN investment opportunity.
  • MTN is not going to list through IPO, but by introduction in the first half of 2019. Listing by introduction means MTN is not offering its shares to the public yet. 
  • The President/Chief Executive Officer, MTN Group, Mr. Rob Shuter, disclosed at the MTN Group’s investor update conference call in February of what listing by introduction means.

“It means that we will list the company in the initial phases without any public offer or sell-down or initial public offering. I think this will enable us to get the company listed whilst the market still digests the implications of what has happened over the last few months,”

He added, “We will in phase two be doing a project to increase the Nigerian participation in MTN Nigeria, targeting more a free float of around 35 per cent than the free float we have today which is around 20 per cent. So, we aim to conclude at least the listing by introduction in the first half of 2019, pretty much as soon as we can, and then subject to market conditions, appetite and demand we would in phase two do the sell-down.”

See Also: Dangote Refinery Plans To Reduce The West African Crude Oil Importation With 650,000 Barrels Per Day

After the phase one, which would be completed by the first half of 2019, the shares would be open to Nigerian investors as part of the second phase of the listing.

The upcoming listing is a key milestone for the MTN Group and is part of its commitment to localisation in the markets in which it operates.
MTN Nigeria has previously been a registered private company in Nigeria. This listing would mean that much more information about the company would now be open to the public. 

  • Listing by Introduction
  • To be able to list by introduction, the company would usually have raised capital prior to applying to list, and also must meet the listing requirements — including a minimum number of public shareholders (300 to list on the Main Board; 51 to list on the Alternative Securities Market (ASeM) and minimum public float (20% for the Main Board; 15% for ASeM). ASeM provides a platform for small and mid-sized fast growth companies to raise critical long term capital at relatively low cost to realize their business potential.
Charles Rapulu Udoh

Charles Rapulu Udoh 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 organisations 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.

Ghanaian Startup mPharma Acquires Kenyan Second-largest Pharmacy Chain

April 23, 2019

Barely six years old, Ghanaian pharmacy start-up mPharma, which manages prescription drug inventory for pharmacies and their suppliers, is sealing a deal on Kenyaan second-largest pharmacy chain, Haltons.

With this transaction, mPharma is entering the East African regional market for the first time, meaning that the young Ghanaian company will now control 20 Haltons stores spread across Kenya’s capital Nairobi and the second most populated coastal city of Mombasa. Baring any last minutes changes and subject to Kenya’s Capital Markets Authority’s approval, the deal would be sealed for a whopping a $12 million Series B funding round led by 4DX Ventures, an Accra/San Francisco venture capital firm, and Nairobi-based Novastar Ventures.

Greg Rockson of mPharma

So far, the sum of $9.7 million has been paid and the full round is expected to be completed in a couple of weeks with other investors including Unbound Ventures, the VC arm of India’s Bharti Mittal Family office, early Facebook investor Jim Breyer and former Novartis chief executive Daniel Vasella, who has joined MPharma’s board. 

Key Facts To Note About The Deal

  • The startup raised $6.6 million in Nov 2017 after raising a seed round of $5 million in 2015.
  • MPharma was founded by Greg Rockson to primarily improve the efficiency of pharmaceutical supply chains in African countries. 
  • Its proprietary Vendor Management Inventory (VMI) system is already being used in over 250 pharmacies in Ghana, Nigeria, Zambia and Zimbabwe.
  • Rockson said the unusual deal came about as part of conversations to market its VMI platform to the chain, but realized there was an opportunity to prove just how much the efficiencies of managing both front end and back end could help African pharmacies drive down their biggest costs: inventory.
  • The startup is taking control of Haltons from Fanisi Capital, a Mauritius-based private equity firm, but senior management at Haltons will retain a stake in the business.
  • Last year, Haltons raked in $1.5 million in revenue, Mary Ngige, Haltons’ managing director said.
  • mPharma is expected to meet a tough game in Kenya from the much bigger Goodlife Pharmacy which has 47 stores and is owned by South African investor Leapfrog Investments, which invested $22 million in 2016.
  • At one point in its history, Haltons was the biggest pharmacy chain in the whole of Kenya with more than 50 stores but slimmed down, closing unprofitable stores and working on improving its service delivery. 
  • Ngige says the aim is for its new ownership and better systems to work on methods to bring back to Haltons’ past glory.
  • Ngige also says Haltons was attracted to the deal because the pharmacy desires to improve efficiency within its supply chain using better inventory management software which ultimately aligned with Halton’s own mission to improve drug accessibility and affordability. Consequently, they hope on mPharma’s business and their technology to help Haltons fine-tune their model and improve competitively.
  • In the short term, mPharma’s team is focused on expanding its VMI and QualityRx platforms to over 14,000 community pharmacies in Ghana, Nigeria and Kenya, using those platforms to leverage more market power with pharmaceutical companies and also use its “‘just-in-time” inventory management to lower prices for its retail customers. 
  • mPharma is also preparing to partner with African governments in order to help improve drug availability through better centralized systems, in the long term.

Rockson Is Using the QualityRx Franchise Model.

Using the QualityRx franchise model, which replicates similar features seen with co-operative retailers in the US and Europe, employing common branding, inventory systems and collective purchasing, mPharma is attempting to shake the market up a bit.

Also See: South African Real Estate Startups Shock Other African Startups With This New Move

“We’ve not always been able to control the customer experience and fully address the issue of drug affordability with our pharmacy clients particularly because they manage their profit margins,” says Greg Rockson.

“Through our QualityRx service, we’re starting to invest in improving the customer experience and pricing that patients get from pharmacies. Haltons will serve as testing ground for us to develop patient-centered services we can provide to our franchise pharmacies. This way we can encourage lower margins and pass the savings on to the customers.”

Charles Rapulu Udoh

Charles Rapulu Udoh 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 organisations 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.

Dangote Refinery Plans To Reduce The West African Crude Oil Importation With 650, 000 Barrels Per Day

April 22, 2019


The Organisation of Petroleum Exporting Countries (OPEC) has noted in its World Oil Outlook that the Dangote Refinery project could refine as much as 650,000 barrels of crude oil per day at full capacity upon completion. This, according to it, is expected to reduce the need for fuel imports in West Africa. This would mean that at that rate, Dangote Refinery when fully in operation, would refine close to 237.3 million barrels per year. Nigeria, alone, imported 22.5387 billion litres of petroleum products worth over N3.24 trillion from refineries abroad in 2017.

According to OPEC, in Africa, there are 50 refining projects, which, if all built, would add nearly five million barrels per day (bpd of new refining capacity to the continent.

The Group Executive Director, Strategy, Portfolio Development and Capital Projects, Dangote Industries Limited, Mr Devakumar Edwin, said OPEC was correct in its estimation, adding that all hands were on deck to deliver the refinery on time.

Key Facts To Note:

  • Dangote Group’s ongoing refining and petrochemicals project can meet 100 per cent of the domestic demand for petroleum products (petrol, diesel, kerosene and aviation fuel), in Nigeria leaving the surplus for export in line with OPEC’s expectation -Dangote Group said.
  •  This year, the outlook represents a significant reversal from recent history. For the first time in many years, projected firm additions at 1.1 million bpd exceed West African regional demand growth for 2018 to 2023 at 0.7 million bpd.
  • This change relates primarily to one project in Nigeria now under construction, which is the Dangote Refinery. 
  • Since the project is in West Africa, its implementation does not necessarily alter the situations in North and East/South Africa. What should happen, especially in West Africa, is a reduction in the need and opportunity for product imports.”
  • Last year’s World Oil Outlook hinted that, in Africa, ‘new projects could improve the situation somewhat toward the end of the period.’ This year, increasing confidence that the Dangote project in Nigeria will go ahead is indeed changing the picture.
  • Allowing for some uncertainty in the project’s start-up timetable, incremental potential in Africa is expected to continue to lag incremental demand-based requirements through 2020, after which the potential is for a balance or excess requirements.
  • A deficit of around 0.2 million barrels per day in 2019 to 2020 is estimated to swing to an excess of around 0.3 million bpd by 2022 to 2023.
  • It must be borne in mind that this regional outlook is unusual in that it hinges largely on a single project.”
  • The Dangote Refinery is expected to be finished in 2019, with production set to commence in 2020.
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Charles Rapulu Udoh

Charles Rapulu Udoh 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 organisations 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.

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