Funding: How Nigerian Crypto Startups Fared In 2021 Despite CBN Ban

cryptocurrency

Crypto startups in Nigeria may be summed up in one word: resilient. Despite the Central Bank of Nigeria scything off their financial operations with Nigerian commercial banks in the wee hours of February this year, the year still proved eventful for the bulk of them, both in terms of funding and the transaction volumes handled.

For instance, according to Paxful and LocalBitcoins data, Bitcoin’s P2P transaction volume in Nigeria would have surpassed $38 million in June 2021, up 8.7% from May. This volume might really be larger, according to the sources, because it excludes transactions from other major platforms like Binance and Remitano.

cryptocurrency
cryptocurrency

Also during this period, Nigeria was, once again, rated the second country most interested in bitcoin just behind El Salvador, according to data from Google trends

Read also: Central Bank Of Nigeria Closes Crypto Bank Accounts. What Does This Mean For Nigerian Crypto Startups?

But how did the startups catering to this hunger to own or trade in cryptocurrency fare in terms of funding in the West African country? Below is a table showing which crypto startups raised funds (reported) in 2021.

S/NNAMEDESCRIPTIONCOUNTRYYEAR FOUNDEDAMOUNT RAISEDINVESTORS
 
1BushaCrypto exchange and investment managementNigeria2018$4.2mCadenza Ventures, Blockwall Capital, CMT Digital, Greenhouse Capital, Raba Capital, etc.
2Yellow CardCrypto exchangeNigeria2016$15mValar Ventures, Third Prime, Castle Island Ventures, Square, Blockchain.com Ventures, Coinbase Ventures, Polychain Capital, BlockFi, Fabric Ventures, Raba Partnership, MoonPay, GreenHouse Capital, etc.
3African Blockchain LabBlockchain technology firm and the developer of the African crypto app VIBRANigeria2021$6mLateral Frontiers VC, CRE Venture Capital, and Musha Ventures, as well as international blockchain investors Dragonfly Capital, Hashkey Capital, SNZ Capital, Fenbushi, Cadenza Capital, Head & Shoulder X, LeadBlock, Hash Global, Bonfire, Krypital, Despace, etc.
4PayourseDevelops user-friendly products and solutions to help Africans accept cryptocurrencyNigeria2019$600kMicheal Ugwu, one of Africa’s largest NFT collectors, Flori Ventures, Olumide Soyombo’s Voltron Capital, and Allegory Capital; CELO co-founders Marek Olszewski and Rene Reinsberg, Kola Aina of Ventures Platform, Angel Touch Holdings, and Oluwatobi Anisere, etc.
5WicryptBlockchain-based WiFi sharing networkNigeria2018$1.5mPolygon creator Sandeep Nailwal, Cardano’s Occam, Inclusion Capital, Outlier Ventures, Chain Capital, Pluto Digital Assets, Onega Ventures, N7 Labs, and PolkaFoundary, etc.
6BitmamaProvides a secure blockchain infrastructure that allows users from all around Africa to conduct cryptocurrency transactions.Nigeria2019$350kFlori Ventures, Emergence Capital, Fedha Capital, etc.
7Lazerpay“Stripe” for crypto paymentsNigeria2021UndisclosedNestcoin, etc.
8NestcoinBuilds, operates and invests in crypto native products for everyday peopleNigeria2021UndisclosedUndisclosed
9AFEN GroupUses blockchain technologies, specifically the Binance smart chain network, to provide solutions.Nigeria2021$1mVia NFT
10Xend FinanceDecentralized finance (DeFi) platform for credit unions and cooperatives.Nigeria2020$500kNGC Ventures and HashKey.
  
  
  

Nigerian crypto startups funding Nigerian crypto startups funding

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

South Africa Top On The List Of Countries With The Most Acquired Startups In Africa

The country with the most acquired startups in Africa is still South Africa. While other African countries are catching up, particularly with the recent multimillion-dollar acquisitions in Nigeria, South Africa has seen a bigger number of acquisitions over the years. The table below provides some insight into how acquisitions have been made on the continent during the last few years. This data is updated on a half-yearly basis.

S/N NAME OF STARTUP SECTOR OF STARTUP PRIMARY COUNTRY OF OPERATIONS YEAR FOUNDED YEAR ACQUIRED NAME OF ACQUIRER PRIMARY COUNTRY OF ACQUIRER NATURE/DESCRIPTION OF ACQUIS
 
1GetSmarterEdtechSouth Africa200720172UUnited StatesSold for $103-million plus $20-million in cash.
2Kapa BiosystemsLife ScienceSouth Africa20062016RocheSwitzerlandAcquired for for $445-million
3Fundamo CityFintech (Mobile financial services)South Africa19992011VisaUnited StatesAcquired for $110 million
4NimbulaEnterprise (Cloud computing)South Africa20082013OracleUnited StatesAcquired for $110 million
5GyftMobile Gift CardSouth Africa20122014FirstDataUnited StatesAcquired for $54m
6WooCommerceOpen source ecommerce pluginSouth Africa20112015WordPressUnited StatesAcquisition estimated to be worth over $30 million
7Quirk (Mirum)Digital agencySouth Africa19992016WPPLondon, United KingdomAcquired for a reported R350 million to R400-million ($35million to $39 million) at the time of the sale.
8Buni.tvEntertainmentKenya20092016Trace TvNigeriaUndisclosed
9BaxiFintech (Digital agent network)Nigeria20142021MFS AfricaSouth AfricaUndisclosed
10DevcorpEnterpriseMorocco20142021ABA Technology GroupMoroccoUndisclosed
11PicupLogisticsSouth Africa20142021KaroooooSingaporeAcquired for $4.8m
12FwRunEcommerceEgypt20192021DiggipacksSaudi ArabiaUndisclosed
13WaystoCapB2B EcommerceMorocco20172021MaxABEgyptUndisclosed
14CallPayFintechSouth Africa20142021UndisclosedUndisclosedAcquired at a valuation of ($6.8m)
15EventtusEvents managementEgypt20122021BevyUnited StatesUndisclosed
16Cars45Car-listing marketplaceNigeria20162017;2020; 2021Frontier Car Group; OLX Group; JIJIGermany; Netherlands; Nigeria (respectively)Undisclosed
17GiraffeRecruitmentSouth Africa20152021Harambee Youth Employment AcceleratorSouth AfricaUndisclosed
18WizzPassVisitor ManagementSouth Africa20152021FM:SystemsUnited StatesUndisclosed
19TareeqiBus trackingEgypt20182021eMushrifOmanUndisclosed
20DigidukaFintechKenya20192021MarketForceKenyaUndisclosed
21DabaDoce-HealthMorocco20142021Orange MEA; AXA CIMAMoroccoUndisclosed
22WayaWayaAI and Machine LearningKenya20162021AjuaKenyaUndisclosed
23LawtrustIT securitySouth Africa20062021AltronSouth AfricaAcquired for $17m
24Ubusha TechnologiesIdentity Security SolutionsSouth Africa20032019AltronSouth AfricaUndisclosed
25MangweeFintech (Mobile payments)Zambia20182021ZeepayGhanaUndisclosed
26ParceNinjaEcommerce logisticsSouth Africa20132021Imperial LogisticsSouth AfricaUndisclosed
27SurebetBetting/GamingKenya20192021TransAtlantic CapitalUnited StatesUndisclosed
28DelivroumFood deliveryTogo20182020GozemTogoUndisclosed
29LunoBlockchainSouth Africa20132020Digital Currency Group (DCG)United StatesUndisclosed
30DPO GroupEcommerceKenya20062020Network International Holdings plcUnited Arab EmiratesUndisclosed
31BeyonicFintech (Payments)Uganda20062020MFS AfricaSouth AfricaUndisclosed
32ConversioDigital MarketingSouth Africa20142020CM GroupUnited StatesUndisclosed
33HarmonicaDatingEgypt20172020Match GroupUnited StatesUndisclosed
34Shago PaymentsEcommerce payments solutionsNigeria20192021AlerzoNigeriaUndisclosed
35PaystackFintech (Payments)Nigeria20162020StripeUnited StatesAcquired for over $200m
36Sa3arAuto tech (car assessment)Egypt20192021Contactcars.comEgyptUndisclosed
37Cheki (Nigeria, Uganda, Kenya)Auto techNigeria, Uganda, Kenya20102021AutochekNigeriaUndisclosed
38Savi.ngFintech (Wealth management)Nigeria20182021PiggyVestNigeriaUndisclosed
39Exchange4FreeFintech (Cross-border payments)South Africa20082021AZA FinanceKenyaUndisclosed
40eLimuEdtechKenya20122020CcHubNigeriaUndisclosed
41Bottles AppLogistics (on-demand Delivery)South Africa20162020Pick n PaySouth AfricaUndisclosed
42SendwaveFintech (Cross-border payments)Kenya20142020WorldRemitUnited KingdomAcquired for $500m
43AppositEnterprise (Software development)Ethiopia20172020PagaNigeriaUndisclosed
44StarterHubCommunityEgypt20152019RiseUpEgyptUndisclosed
45MobisolOff-grid energyKenya20112019EngieKenyaUndisclosed
46iHubInnovation HubKenya20102019CcHubNigeriaUndisclosed
47Surf KenyaWi-fiKenya20152019BRCKKenyaUndisclosed
48AmplifyFintechNigeria20162019OneFiNigeriaUndisclosed
49OLX AfricaClassifiedsNigeria20122019JiJiNigeriaUndisclosed
50KongaEcommerceNigeria20122018ZinoxNigeria$10m (Reportedly)
51KngineAIEgypt20082018Samsung ElectronicsSouth KoreaUndisclosed
52QuickHelpAI (chatbot)Nigeria201520181001 Squared Artificial IntelligenceCanadaUndisclosed
53Cape NetworksSaaSSouth Africa20132018HPUnited StatesUndisclosed
54WezartArts marketplaceSouth Africa20162020African Fashion InternationalSouth AfricaUndisclosed
55TopCheckEcommerceNigeria20152018SilvertreeNigeriaUndisclosed
56StabusMobilityGhana20192021Treepz (Formerly Plentywaka)NigeriaUndisclosed
57Okuhle MediaDigital mediaSouth Africa20032021TraceFranceUndisclosed
58FundallFintechNigeria20192021Emerging Africa GroupNigeriaUndisclosed
59QuickCashFintechCôte d’ivoire20102021E-SettlementNigeriaUndisclosed
60DishaOne no-code tool for content creatorNigeria20192021InterswitchNigeriaDisha planned to shut down on December 31, 2021, save for the acquisition. Deal amount undisclosed.
61NafhamSocial startup for free crowdsourced educational contentEgypt20122021TyroEgyptUndisclosed
62FarmTrustBlockchain-enabled ecommerceTunisia20182021LAMMATunisiaUndisclosed
63QuenchEcommerce and last-mile delivery serviceSouth Africa20162021The Foschini GroupSouth AfricaUndisclosed.
64SwitchPayFintech providing alternative payments options to merchants and retailers.South Africa20182021AdumoSouth AfricaUndisclosed
65CrossfinCard and mobile-enabled payment transactionsSouth Africa20172021The EMMF I and ARC consortiumSouth Africa$94.3m
66MainOneData center infrastructureNigeria20102021EquinixUnited States$320m
67FilkhedmaHomes servicesEgypt20142021SweepSouthEgyptUndisclosed
68ThawteSSL and code signing certificatesSouth Africa19951999VerisignUnited StatesUS $575 million
69ClaimSyncEnd-to-end claims processing platformGhana20112013GenKey SolutionsNetherlandsUndisclosed
70SayaDeveloper of mobile messaging apps for feature phonesGhana20112014KirusaUnited StatesUndisclosed
71Paynet GroupMulti-institutional payments provider.Kenya20032014InterswitchNigeriaUndisclosed
72JobbermanRecruitmentNigeria20092015Ringier One Africa Media (ROAM)South AfricaUndisclosed
73NgCareers.comRecruitmentNigeria20092020JobbermanNigeriaUndisclosed
74Weza TeleFinancial products, including mobile loans and retail credit cards.Kenya20112015AFBGhana$1.7 million
75FawryFinancial services backed by techEgypt20082015Egyptian-American Enterprise fund, Helios Investment Partners and the MENA Long-Term Value FundEgypt; United Kingdom$100m
76VansoMobile and security-focused financial technology providerNigeria20052016InterswitchNigeriaUndisclosed
77One Africa MediaOnline marketplaces in the employment, auto, property and travel sectors.South Africa20122016RingierSwitzerlandUndisclosed
78Popcorn TrainingCybersecurity awareness training providerSouth Africa20122018KnowBe4United StatesUndisclosed
793elagiOn-demand Pharmacy deliveryEgypt20172020Ibnsina PharmaEgyptUndisclosed
80Oltio (formally MTN Mobile Money South Africa)Pioneered and patented several mobile payments and banking solutions,South Africa20042018MastercardUnited StatesUndisclosed
81Teacha!Online media hub for teachersSouth Africa20162020SnapplifySouth AfricaUndisclosed
82Simulation Engineering TechnologiesCreating computer simulation models of complex systems.South Africa200420184Sight HoldingsSouth AfricaUndisclosed
83RetailTowerEcommerce product that helps online merchants sell across multiple shopping enginesGhana20102018KudobuzzGhanaUndisclosed
84AccTech SystemsA professional services firm specializing in Microsoft ERP & CRM and Sage ERP & CRM business solutions.South Africa199420184SightSouth AfricaUndisclosed
85Dynamics Africa ServicesAn ISV Partner focusing on Microsoft Dynamics NAV and GP Enterprise solutions.South Africa201420184SightSouth AfricaUndisclosed
86Media WorksOnline-based Adult Education and Training (AET) providerSouth Africa19962018FutureLearn Pty Ltd.South AfricaUndisclosed
87Teranga SolutionsA mobile and cloud-based platform for hospitality firmsSenegal20132018HotelOnlineKenyaUndisclosed
88MubawabA free to use real estate ad site in arab countriesMorocco20132018Emerging Markets Property Group (EMPG)Dubai, UAEUndisclosed
89OrderTalkDevelops online ordering software and solutions for the restaurant, takeout, and hospitality industry.South Africa19982018Uber EatsUnited StatesUndisclosed
90VTN CommunicationsA provider of voice solutionsSouth Africa20112018HeroTelSouth AfricaUndisclosed
91Smart IntegrationAn integrated automation company.South Africa20042018Ulwembu Business ServicesSouth AfricaUndisclosed
92iSPartnersBusiness intelligenceSouth Africa20012018AltronSouth Africa$16 million
93Takealot.comOnline shoppingSouth Africa20102018NaspersSouth AfricaUndisclosed
94PropSysProperty management solutions for the real estate industry on hosted and on-premises platformsSouth Africa20032018MRI SoftwareUnited StatesUndisclosed
95MacroLanInternet Service Provider that delivers dedicated fibre broadband connectivity.South Africa19972018SEACOMMauritiusUndisclosed
96Eazi.comProptechSouth Africa20172018Pam Golding Property groupSouth AfricaUndisclosed
97Bamba GroupA real-time data gathering platform that engages and access the 1.5B people in the emerging markets via mobile feature phonesaKenya20132018Maximeyes GroupUnited KingdomUndisclosed
98Clarotech ConsultingAn Information and Communications Technology (ICT for short) company offering consulting, products and support servicesSouth Africa20012018 LogicalisSouth AfricaUndisclosed
99Open ConnectProvider of carrier, redundant light and last mile dark fibre services to leading Mobile Operators, ISP’sMalawi20162018Harith General PartnersSouth AfricaUndisclosed
100SteepleLow-commission digital agency for property salesSouth Africa20122018PropertyFoxSouth AfricaUndisclosed
101TPAY MOBILEEnd to end mobile payments platform that maximizes conversions and minimizes riskEgypt20142018Helios Investment PartnersUnited KingdomUndisclosed
102DCBEgyptDirect carrier billing service providerEgypt20142017TPay MobileEgyptUndisclosed
103WeBuyCarsOffers free online valuations and sale of carsSouth Africa20012018Transaction CapitalSouth Africa$116m
104CrossgatePayment solutionsSouth Africa20072018CrossfinSouth AfricaUndisclosed
105Magnetic SoftwareAgency Management PlatformSouth Africa20122018SilversoftSouth AfricaUndisclosed
106Conor SolutionsCustomer solutions providerSouth Africa  20072018Adapt IT Holdings Limited (Adapt IT)South Africa 
107FibreCoOpen access dark fibre network, providing infrastructure, connectivity and servicesSouth Africa20092018SEACOMMauritiusUndisclosed
108Medco PlastPackaging and containers company.Egypt20112018Indorama VenturesThailandUndisclosed
109Simfy AfricaMusic StreamingSouth Africa20102018MTNSouth AfricaUndisclosed
110BadrData solutions and web development companyEgypt20062018IncortaUnited StatesUndisclosed
111CompuscanProvides consumer and commercial credit informationSouth Africa19942018Experian SASouth AfricaUndisclosed
112Interpay AfricaA payment processor that connects merchants in Ghana to local and international paymentGhana20142018Emergent Technology Holdings LPUnited StatesUndisclosed
113FounaEcommerceTunisia20122018Magasin GénéralTunisiaUndisclosed
114Fintec LabB2B technology provider to major banking and insurance enterprises in South AfricaSouth Africa20152018ABSA BankSouth AfricaUndisclosed
115TouchsidesUses technology and big data insights to help brands and retailers win and retain loyal customers in high-growth marketsSouth Africa20142019HeinekenNetherlandsUndisclosed
116Teraco Data EnvironmentsA carrier, cloud and vendor neutral data centre providerSouth Africa20082019Berkshire PartnersUnited StatesUndisclosed
117DotModusCloud computing, data analytics and machine learning.South Africa20102019Dynamic TechnologiesSouth AfricaUndisclosed
118TravelCarMobility solutions platformTunisia20122019PSAFranceUndisclosed
119MediaMarkInformation services solutionsSouth Africa19962019Kagiso MediaSouth AfricaUndisclosed
120ConnectMedE-healthKenya20162019MerckGermanyUndisclosed
121ArqamFCSports dataEgypt20172019StasBombEnglandUndisclosed
122IoT.NXTInternet of thingsSouth Africa20152019VodacomSouth AfricaUndisclosed
123SureSwipeDelivers a simple, accessible and secure solution to payment acceptanceSouth Africa20082019Crossfin, Apis Growth Fund ISouth AfricaUndisclosed
124CompareGuruIndependent insurance comparison platformSouth Africa20132019SureStartSouth AfricaUndisclosed
125Heartbeat AdventuresTravelKenya20142019Cloud9xPKenyaUndisclosed
126Empty TripsDigital freight marketplaceSouth Africa20022019RCL FoodsSouth AfricaUndisclosed
127ROK Film StudiosProduction studioNigeria20132019Canal+ GroupFranceUndisclosed
128eClat HealthcareHospital management solutionsNigeria20122019Gulf CapitalDubai, UAEUndisclosed
129YuppiechefOnline retailer of kitchen and homeware productsSouth Africa20062021Mr. Price GroupSouth AfricaUndisclosed
130MENABytesMediaEgypt20172019RiseUpEgyptUndisclosed
131Daily DishDeliverySouth Africa20122019TCapitalNorwayUndisclosed
         
         

acquired startups Africa acquired startups Africa acquired startups Africa acquired startups Africa acquired startups Africa acquired startups Africa

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

Nigerian And South African Startups Expanded The Most In Africa In 2021

WemTech

African startups are continuing to expand across the continent and beyond. According to the table below, more Nigerian and South African startups are expanding than their counterparts in other African countries, with Ethiopia becoming the newest market of interest for startups. Fintech and mobility are the two major sectors that are recording the most expansions. 

S/N AFRICAN STARTUP SECTOR BASE COUNTRY OF OPERATIONS COUNTRY EXPANDED INTO IN 2021 (AS AT DECEMBER 9TH)
1mPharmaHealthtechGhanaEthiopia; Uganda
2Aza FinanceFintechKenyaSouth Africa
3GozemRide-hailingTogoGabon; Cameroon
4AndelaEdtechNew York, USALatin, South America
5SWVLRide-hailingEgyptSaudi Arabia; Europe, Latin America, and the Asia-Pacific region (through Shotl acquisition); Latin America (through ViaPool acquisition)
6GOMYCODEEdtechTunisiaMorocco; Senegal
7FairMoneyFintechNigeriaIndia
8AutochekCar listingNigeriaGhana; Kenya; Uganda (Via acquisition of the Cheki brand)
9Daystar PowerSolar energyNigeriaTogo
10ZeePayFintechGhanaZambia
11CatchRide-hailingEthiopiaKenya
12AURASecuritySouth AfricaKenya
13PaystackFintechNigeriaSouth Africa
14FlutterwaveFintechNigeriaEthiopia
15TermiiCommunications-as-a-serviceNigeriaCote D’ivoire
16Little CabRide-hailingKenyaEthiopia
17Helium HealthHealthtechNigeriaKenya; Middle East (Via Meddy’s acquisition)
18M-KOPAPAYG solar/ asset financingKenyaNigeria
19Nawah ScientificLife ScienceEgyptJordan
20SweepSouthCleaning servicesSouth AfricaNigeria; Kenya
21Moov AfricaMobilityNigeriaSouth Africa
22Chipper CashFintechGhana/USASouth Africa
23MarketForceB2B Retail DistributionKenyaNigeria; Ethiopia, Ghana, Tanzania, Rwanda, and Uganda
24SendyLogisticsKenyaIvory Coast (through Kamtar investment)
25UkhesheFintechSouth AfricaAsia-Pacific
26BznsBuilderBusiness Relation ManagementEgyptIndonesia
27TymeBankDigital bankSouth AfricaPhilippines
28VezeetaHealth techEgyptNigeria, Ghana, Kenya
29AutocheckAuto techNigeriaUganda, Kenya (through Cheki acquisitions)
30Copia GlobalEcommerceKenyaUganda
31Treepz  (Formerly Plentywaka)MobilityNigeriaGhana (through Stabus); Uganda (via Ugabus)
32FlutterwaveFintechNigeriaEthiopia; East Africa (through partnership with Amole and Airtel)
33BentoDigital payroll platformNigeriaKenya, Rwanda, Ghana
34ImapliPayFinancial health platform for gig economyKenyaSouth Africa
35HomzartFurniture marketplaceEgyptSaudi Arabia
36CapiterFintechEgyptDubai, UAE
37AmpersandMobilityRwandaKenya
38MEDE-healthTunisiaMorocco
39StitchFintech APISouth AfricaNigeria
40JUMOFintechSouth AfricaTanzania
41MooveMobility FintechNigeriaSouth Africa
42FlowProp-techSouth AfricaAustralia
43SabiB2B marketplaceNigeriaKenya
44WorkPayHR Payroll solutionsKenyaNigeria
45Peach PaymentsFintechSouth AfricaMauritius
46KlashaEcommerceNigeriaGhana
47BboxxSolar EnergyTogoNigeria
48MFS AfricaFintechSouth AfricaNigeria
     
     
Based on reported expansions.
Startups Africa 2021
The most popular expansion destinations for startups in Africa.
African startups expanded mostly from Nigeria and South Africa in 2021.

The Patterns Behind The Expansion

  • The majority of African startups’ expansions this year were accomplished through acquisitions in other countries. Mobility startups across the continent were most likely to expand through acquisition (Autochek; SWVL; Treepz, among others).
  • Nigerian startups, unlike those in other African countries, were more diverse in their regional expansions, expanding across western, eastern, southern, and even outside Africa.
  • Expansions from Sub-Saharan Africa to North Africa, and vice versa, were rare, with both regions preferring to expand towards the Middle East rather than into each other’s.
  • While Kenya and Uganda are the most popular destinations for expanding startups in East Africa, Nigeria and Ghana are the most popular destinations in West Africa, and South Africa is the most popular destination in Southern Africa.
  • The majority of the expansions are driven by startups in mobility, fintech, solar energy, and e-health.

Startups Africa 2021 Startups Africa 2021

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

New Visa Cards, Cheap Internet Data: Inside The First Startup Funding Deal In Sudan In 27 Years

Sudan has returned to the African startup funding table after 27 years of international economic isolation, mostly sponsored by the US. Fawry, Egypt’s top financial services company, became the first venture investment company to set up shop in the Northeast African country a week ago, leading a $5 million investment round in Asloug.com, a classifieds and marketplace startup.

Fawry’s investment followed a major agreement, last year, by the country to pay $335m to the victims of the 1998 bombings of the US embassies in Kenya and Tanzania, which were carried out by al-Qaeda. The agreement had as one of its objectives, to remove Sudan from the list of state sponsors of terrorism. This invariably allowed the country to rejoin the global financial system after nearly three decades as a pariah.

But the first sign that Sudan has truly been reintegrated into the global financial system is the issuance, in April this year, of the country’s first local Visa card by the United Capital Bank (UCB). 

Read also Kenya’s Tala Expands Its Fintech Offering To Crypto After A Record $145m Funding Round

Visa, which has its headquarters in San Francisco, is going even further, with plans to open a local presence in Sudan as the country’s transitional government works to digitize and reintegrate the economy.

“We are pleased to be part of Sudan’s growth journey in the global economy, and we have been working closely with our partner, UCB, to provide their Visa cardholders with a reliable, convenient, and secure payment option that is accepted globally,” Ahmed Gaber, Visa’s General Manager for North Africa, said, at the issuance of the first visa card. “Sudan is a promising market that is witnessing many positive economic developments, and we look forward to continue bringing Visa’s world class payment technology to support our partners and the Sudanese government in their drive towards achieving financial inclusion and economic growth for Sudan,”

Investment In asloug.com Is The First Telltale Of Sudan’s Gradual Economic Comeback; And Represents An Early Mover Advantage For Investors 

For a country with the cheapest internet data rate in Africa — about ₦27 ($0.068) to access 1GB of data for 30 days, if you are in Nigeria —investment in asloug.com by Fawry and a host of other investors was relatively a less difficult one, for obvious reasons. 

Sudan has over 30% of its 44 million population (representing about 13.70 million people) using the internet. Although with a meagre GDP per capita of $595, the country’s economic growth is largely predicated on its booming youth population. The average age in Sudan is 20, with 63% of the population being just under 24 years of age. 

These indices help to explain why alsoug, a platform where sellers can list everything from real estate and autos to services and commodities, has already garnered over two million downloads since its launch in 2016.

Therefore, the fact that Fawry, which had previously focused on Egyptian startups such as delivery platform Bosta, fast-growing F&B platform Elmenus, and social commerce marketplace Brimore, has chosen Sudan as its first international investment destination speaks to the post-Pariah hope for economic certainty.

“I hope this investment is the first of many and that the huge potential of the tech sector in Sudan is fully realized in the coming years,” Alsoug co-founder and CEO Tarneem (Nina) Saeed said, about the investment. 

However, it must be noted that the investment by Fawry and other investors is all shades of economic and political strategies and calculations. The company which is one of the pioneers in digital payments in Egypt is looking to replicate its Egyptian success in Sudan. Although it presently runs a payments app through Sudan’s Faisal Islamic Bank, Fawry plans to engineer the expansion of asloug.com’s products beyond its current constitution — classifieds and marketplace — to payments via the Cashi payments infrastructure.

“Fawry’s strategic partnership with alsoug leaves it ideally placed to help guide the platform’s rollout of a countrywide payments system, a feat which Fawry has already managed through a scalable, robust, and best-in-class technology platform,” Fawry’s CEO Ashraf Sabry was quoted as saying. 

Sudanese fintech Alsoug raises $5m, first VC investment into the country in  31 years
Tarneem (Nina) Saeed is the founder and CEO of asloug.com. Credits: Saeed Group

Another interesting insight into Fawry’s strategic entry into Sudan could be gleaned from its choice of team to invest in. Asloug is led by a well-connected female founder, Nina Saeed. Saeed is the CEO of the Saeed Industrial & Commercial Group, one of Sudan’s oldest and most reputable industrial conglomerates. She was previously a lawyer with Allen & Overy LLP’s Projects, Energy and Infrastructure Group and a graduate of the London School of Economics and Political Science. Saeed has also provided advice to a number of international institutions, including the World Bank. She is also the executive director of the US-Sudan Business Council, a non-profit private sector organization dedicated to enhancing and encouraging meaningful engagement and exchange between business and civil society in Sudan and the United States.

 A New Investment Law May Make The Ultimate Difference

Although the gradual rebirth and liberalization of the Sudanese economy is essentially premised on its commitment to a $56bn debt relief program agreed with the IMF in June this year, Sudan’s latest investment law enacted this year and which replaced the old investment act of 2013, may make the ultimate difference. 

Read also Africa’s Transporters Adopt Cellulant’s Technology in Bid to Digitize the Sector

What Does The New Investment Law Provide? 

The new investment law, among other things, provides that: 

  •  All the investments established in the Sudan, shall enjoy just and fair treatment. 
  • Sudan shall ensure to the foreign investors a treatment similar to that of the national investors. 
  • Invested funds shall not be subject to any arbitrary measures, or any discriminatory decisions. 
  • In collaboration with the competent agencies, investment projects will be exempted from customs tariffs on capital equipment imports.
  • The investment project will be excluded from business profits tax for a period of not more than five years from the start of commercial production, unless the regulations stipulate otherwise.
  • The value added tax exemption for investment project capital equipment will be based on a list approved by the Ministry.
  • Non-Sudanese investors will be granted residency for the length of the project, subject to the terms of the laws governing it and any rules that may be enacted.
  • Administrative fees or returns on investment projects will not be imposed unless the country’s Ministry of Investment and International Cooperation approves them.

The investment law has the potential to significantly improve the economic climate in the Northeast African country. Sudan was ranked 171st out of 190 economies in the World Bank’s Doing Business 2020 report, which rates countries based on their ability to provide a business-friendly environment. Rwanda is placed 38th, with Ethiopia coming in at 159th.

Where Does The Future Go From Here? 

Whether or not the future remains bright for other startups founded by less-connected Sudanese locals would be left for time to test. Nazar Arabi, a co-founder of GO Digital Services and a former MTN Sudan employee, feels that this future is possible.

“Sudan has the potential to become the start-up hub of Africa,” Arabi was quoted as saying. “Today, 35 million Sudanese (77%) use mobile phones, including 8.5 million smartphones, and 34% of the country has 4G coverage. South African telecoms giant MTN, which is present in the country, had nearly 9.8 million subscribers at the end of March 2021. However, Kuwait’s Zain is in first place with 16.6 million subscribers in 2021, ahead of Sudatel (also present in Senegal), which is majority state-owned.” 

startup funding Sudan startup funding Sudan startup funding Sudan

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

How Toyota Tsusho Makes Investments In African Startups Through Mobility 54

Mobility 54, a corporate venture capital firm owned by Toyota Tsusho, the trading arm of Japan’s Toyota Group, is steadily establishing itself as a force to be reckoned with in the African startup investing environment. The VC, which is just two years old, has made roughly eight investments in African firms and has recently committed over $12 million to Samurai Incubate, another Japanese venture capital company set up in 2020 to invest in African startups. 

Investment in Samurai Incubate is a rare, bold move by Mobility 54 towards diversifying its portfolio, to cover startups in other sectors outside of mobility.

With locations in Paris, France; Tokyo, Japan; and Nairobi, Kenya, Mobility 54, which was established through a partnership between Toyota Tsusho Corporation (“TTC”) and its subsidiary CFAO SAS (“CFAO”), is going to be a great force in the coming years as the Toyota Group changes its investment strategies in Africa.

How Toyota Tsusho Invests In African Startups

According to Richard Bielle, Toyota Tsusho’s Division Chief Executive Officer Africa Division, Toyota’s investment pattern in Africa through Mobility 54 is to invest in startups in the African MaaS field, and to support the development of industries centered on mobility.

Read also Toyota Tsusho Comes For Healthcare And Retail Startups, Invests In Africa-focused VC Samurai Incubate

But that pattern has expanded with time as other sectors outside of mobility continue to draw the firm’s attention. 

Recently, it entered into investment partnership with Samurai Incubate to expand its original investment mandate. 

Through the partnership, Toyota Tsusho —via Mobility 54 — invested about $12 million in Samurai Incubate.

The partnership will target startups raising Pre-Series A rounds in Nigeria, Kenya, South Africa, Egypt, among other countries. The average ticket size for investments will range between 100k to $735k for startups developing solutions in the finance & insurance, logistics, medical & healthcare, retail and e-commerce, energy, agriculture, transportation and mobility, and entertainment sectors. 

“In line with the “WITH AFRICA FOR AFRICA” philosophy, the Africa Division will contribute to Africa’s economic growth and industrialization, and respond to its expanding middle class, with the goal of establishing the №1 presence in Africa,” Bielle said.

Toyota Tsusho Invests Mostly Through Convertible Notes

Generally, Toyota Tsusho usually prefers to invest in African startups through convertible notes. Consequently, a majority of its previous investments had been carried out under a convertible bond/note structure. 

Read also Africa’s Transporters Adopt Cellulant’s Technology in Bid to Digitize the Sector

A convertible bond is a form of borrowing by a company in which the borrowing company pays the lender fixed amount of interests or dividends until the borrowed amount is due for repayment. It is convertible because both the dividends/interests and the total amount borrowed can be converted into common stock or equity shares in the company, in this case Data Integrated. This conversion from the bond to stock happens at specified times during the life of the bond and is usually at the discretion of the bondholder, in this case Toyota Tsusho.

Toyota Tsusho Mobility 54
Toyota Tsusho’s investments in Africa. Source: Toyota Tsusho

Partnership With CFAO Ensures Toyota’s Investments Reaches Africa’s 54 Countries, Including More Than Ever Before, The French-speaking Areas

Toyota’s ownership of 97.4% stake in CFAO S.A., a French-listed distribution company, has ensured that it is able to explore Africa’s length and breadth, no matter the language spoken. 

“Through the alliance between Toyota Tsusho, which has created a network based on the automobile distributor business, primarily in southeast Africa, and CFAO, which has a history of more than a century and a solid presence in western and Francophone Africa, we will conduct efficient and strategic business throughout the continent,” Toyota Tsusho Group noted in a statement. 

This partnership has ensured that Mobility 54 has most recently made sustained investments in startups located in Francophone Africa, such as Senegal’s Kai Senegal, Ivory Coast’s Moja Ride, among others.

S/NStartups/Companies Invested IntoCountry of InvestmentYear Startup Was founded  Sector/Description of StartupsYear Of InvestmentAmount of Investment
1AiCareKenya2020InsurTech/Provider of telematics insurance system for insurance companies in Kenya.May, 2021Undisclosed
2Data IntegratedKenya2012Mobility/Provides operation management systems for bus operators in KenyaOctober, 2020Undisclosed
3Samurai IncubateJapan2008; Began investing in Africa in 2018. Africa-focused Japanese early stage investor. Fund will target healthcare and retail, MaaS startups raising Pre-Series A rounds in Nigeria, Kenya, South Africa, Egypt, among other countries.April, 2021$12m
4TugendeUganda 2012A  technology-enabled asset finance companyOctober, 2020Lead investor in $6.3m Series A round. Toyota Tsusho invested $4m out of the sum
5SendyKenya2019Mobility/Sendy allows its users to move almost anything from point A to B at the touch of a button.January, 2020 
6YEEG SAS (Kai Senegal)Senegal2018Mobility/Ride-haling/Fleet management/ vehicle finance schemeAugust, 2021Undisclosed
7InTouchSenegal2014Fintech/ A solution that offers more than 230 digital services (mobile money, agency banking, money transfer, purchase of telephone credit, etc.) and accepts all forms of payments.June, 2021Undisclosed
8Moja RideIvory CoastRenamed Moja Ride in 2020. Operated as Moja Wallet since 2017.Mobility/ Allows commuters to schedule and pay for trips online while also allowing independent transportation providers to manage their fleet, routes, and payment methods.March and June, 2021Undisclosed
9WhereIsMyTransportSouth Africa2016Mobility/ a big data platform for sustainable mobility in emerging markets, which connects and collects data and integrates this information on its open data platform.March, 2020Part of a $7.5m round
     
       
       
       
       
       
       
       

How To Reach Out To Mobility 54

Mobility 54’s African key persons include: 

  • Kiyohisa Imada: Deputy CEO, Mobility 54 
  • Kei Ozawa: Manager, Mobility 54 (English-speaking Africa)
  • Arisa Sakurai: Manager, Mobility 54 (English-speaking Africa)
  • Octave Habert, Investment Manager, Mobility 54 (French-speaking Africa) 

To know more click here

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

Here Are The Top Ten Most Innovative Countries in Africa In 2021

The World Intellectual Property Organization (WIPO) has released the 2021 edition of the global innovation index (PDF.). As usual, Mauritius ranks 1st in Africa and 52nd in the world, maintaining its previous global position in 2020. The 2021 edition which presented the worldwide innovation landscape and annual performance rankings of some 130 economies, found that governments and enterprises in many parts of the world have scaled up their investments in innovation during the COVID-19 pandemic.

“It is likely that innovation divides will be accentuated in the coming years, across economies, sectors and companies. Innovation ecosystems in many emerging economies have become fragile and will need to be supported by targeted policies. While sectors such as ICT, software and pharmaceuticals have increased spending on R&D in 2020, others such as hospitality and automobiles, have reduced their R&D investments over the same period. This imbalance will need to be corrected as the future winners in all sectors will have to be innovative in terms of both new technologies and business models,” the report noted. 

The ranking of innovation results is based on 80 indicators in several sectors, including business development, political environment, infrastructure, etc. 

What are the most innovative countries in the world? | World Economic Forum

In Africa, the following countries are the most innovative. 

Mauritius

The report ranked Mauritius 52nd in the world and 1st in Africa. According to the report, while institutions in Mauritius— covering political and operational stability; government effectiveness; regulatory quality; rule of law; ease of doing business — rank 21st in the world in terms of innovation, the sophistication of the Mauritian markets — covering ease of access to credit; venture capital deals; domestic industry diversification; market capital capitalisation — is ranked the 29th in the world. In fact in terms of market sophistication, Mauritius is only second to South Africa which ranks 23rd in the world.

Read also South Africa Braces for Petrol Price Hike as Crude Oil Hits 3-Year High

However, the country ranks low — 111st in the world — in terms of the sophistication of the businesses — that is, as regards the quality of its knowledge workers; innovation linkages, research talent in businesses, etc. South Africa ranks 51st in the world in this regard. 

The East African country also ranks 71st in the world in terms of human capital and research — which covers education; tertiary education; research and development (R&D), etc. Tunisia is the highest in Africa at 35th in this regard. 

South Africa

South Africa ranks 61st in the world and 2nd in Africa. The country’s institutions are the 55th most innovative in the world. At 23rd, its markets are also the most sophisticated in Africa. In terms of human capital and research, the country is the 67th in the world and 3rd in Africa, behind Tunisia and Namibia (which is ranked 57th in the world).

Read also Truecaller Crosses 500 Customer Milestone for its Business Offering

The country’s worst performance is the area of infrastructure where it is ranked 83rd in the world. Mauritius is the best performer in Africa— 65th in the world — in terms of the innovativeness of its infrastructure, which covers ICT access; ICT use; government’s online service; e-participation; electricity output; logistics performance; environmental sustainability, among others. Mauritius is followed by Cape Verde.

Tunisia

Following South Africa is Tunisia which is ranked 71st in the world and 3rd in Africa. The country’s human capital and research sector Africa’s number 1, ranking only 35th in the world, ahead of countries like Luxembourg, Malaysia or India. The human capital and research sector covers Tunisia’s expenditure on education; government funding to its pupil, secondary schools; school life expectancy, years; reading, maths and science; pupil-teacher ratio, secondary; tertiary enrolment; graduates in science and engineering; tertiary inbound mobility; researchers; gross expenditure on R&D; global corporate R&D investors; university ranking, etc. 

The country also ranks 1st in Africa and 55th in the world in terms of knowledge and technology outputs, which covers patents; scientific and technical articles; labor productivity growth; new businesses; software spending; ISO 9001 quality certificates; high-tech manufacturing; intellectual property receipts; production and export complexity; high-tech exports; ICT services exports, etc. 

Read also:Africa’s Transporters Adopt Cellulant’s Technology in Bid to Digitize the Sector

At 75th, the country’s institutions are also innovative. However, its worst performance is in the area of the sophistication of its businesses in which it ranked 114th in the world. This is closely followed by the sophistication of its markets which is ranked 98th globally. 

Morocco

Morocco is ranked 77th in the world and 4th in Africa. The country’s best performance is in the area of knowledge and technology outputs, where it is ranked 67th in the world and 4th in Africa, behind Tunisia, South Africa and Kenya. 

However, its worst performance is in the area of the sophistication of its businesses in which it ranks 105th globally. This is followed by the sophistication of its markets which is ranked 91st worldwide. 

Kenya

Ranked 76th in the world and 5th in Africa. Kenya’s strengths are in the area of market sophistication where it ranks 54th in the world and 3rd in Africa, behind South Africa and Mauritius; and knowledge and technology outputs, where it is ranked 65th in the world. 

Its worst performance is, however, in the area of infrastructure where it is ranked 114th in the world. In terms of human capital and research, the country also performed badly, ranking 92nd in the world. 

Cape Verde

Cape Verde is 89th in the world and 6th in Africa. The country is the second best performer in Africa — 66th in the world — in terms of the innovativeness of its infrastructure, which covers ICT access; ICT use; government’s online service; e-participation; electricity output; logistics performance; environmental sustainability, among others. 

The country also ranks 59th in the world and third in Africa in terms of creative output, which covers trademarks by origin; global brand value; industrial designs by origin; ICTs and organizational model creation; cultural and creative services exports; national feature films; entertainment and media market; printing and other media; manufacturing; creative goods exports; online creativity etc.

The country’s worst areas of performance are in the sophistication of its market, where it is ranked 128th in the world. It also performed badly in the area of knowledge and technology outputs, ranking 122nd in that regard. 

Tanzania

The United Republic of Tanzania is the 7th in Africa and 90th in the world. Tanzania is a star in Africa in terms of its creative outputs, ranking 44th globally and second in Africa, behind just Mauritius. 

Its worst performance areas are in human capital and research, where it ranks 125th in the world; as well as in the area of business sophistication, where it ranks 119th in the world. 

The remaining three in Africa’s top ten are: 

Egypt — 94th in the world and 8th in Africa

Namibia — 100th in the world and 9th in Africa

Rwanda — 102th in the world and 10th in Africa. 

Africa’s most populous country Nigeria ranks 118th in the world and 19th in Africa, behind Senegal, Botswana, Malawi, Madagascar, Ghana, Zimbabwe, Cote d’ivoire, Burkina Faso, in that order. 

Read also:Cellulant Partners Gainde 2000 to Digitise Payments for Governments and Companies

Below is a tabular representation of the ranking across all the performance indicators. 

S/NAfrican CountryOverall global rankingInstitutionsHuman capital and researchInfrastructureMarket SophisticationBusiness sophisticationKnowledge and technology outputsCreative outputs
   
1Mauritius52217165291119331
2South Africa6155678323516179
3Tunisia71753589981145580
4Morocco77748284911056770
5Kenya85809211454776595
6Cape Verde898895661287412259
7Tanzania9010312510510911910044
8Egypt9411493929610670104
9Namibia100735711292112119105
10Rwanda10254114101938296117

most innovative countries Africa 2021 most innovative countries Africa 2021 most innovative countries Africa 2021 most innovative countries Africa 2021

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

Togo Is The Number One In Africa In DeFi Adoption — Chainalysis

Stacked cryptocurrency coins

Togo is Africa’s king of crypto and decentralized finance (Decentralized Finance or DeFi). The Chainalysis organization, which is known for its global indices in the field, has disclosed this in its latest report. The West African country has shone once more in the DeFi study, after being ranked third in Africa and ninth globally in the 2021 Chainalysis Crypto Adoption Index.

It is, in fact, the only African country among the top 20. It is also one of the few representatives of emerging markets, with established economies such as the United States, China, and Russia dominating the rankings. A situation that contrasts with the one in which these great nations are lagging behind on crypto adoption.

Togo Africa DeFi

The 2021 Chainalysis DeFi Adoption Index calculates metrics based on on-chain cryptocurrency value received by PPP-weighted DeFi platforms per population, total retail value received by DeFi platforms, and individual DeFi platform deposits. The index also reflects the growing importance of institutional investors in the DeFi market.

The DeFi Adoption Index, like its 2021 crypto adoption index, is intended to emphasize countries with the strongest grassroots adoption by individuals rather than those sending the biggest raw value of cash.

Read also:How Wave Attracted Largest Series A Funding for an African FinTech at $200-Million

Emerging markets are driving cryptocurrency adoption, according to Chainalysis, with individuals resorting to them out of necessity.

DeFi adoption, on the other hand, has been predominantly driven by experienced cryptocurrency traders and investors looking for fresh sources of alpha, despite the fact that the index is weighted to encourage grassroots adoption.

DeFi Africa Togo DeFi Africa Togo

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

Cracked Down In China, Ride-hailing Startup DiDi Begins African Exploration With Egypt And South Africa

After being cracked down by Chinese authorities over allegations of breach of data privacy rules, China’s leading ride-hailing platform, Didi, has aggressively started its expansion mission in Africa. 

Read also:Omidyar Network Leads Pre-seed Funding Round In Ugandan E-logistics Startup, Ridelink

“We are bringing a global experience and the best technology to ensure safety for our passengers and drivers. Our innovative features include facial recognition for drivers, SOS buttons for riders and drivers linked to the local police, 24/7 support via a dedicated safety hotline, preview information for riders and drivers, and safety training for drivers, among others,” Carina Smith-Allin, DiDi head of public relations and communications for Sub-Saharan Africa said. 

DiDi
DiDi

Here Is What You Need To Know

  • DiDi was launched in South Africa on August 23 in three Gauteng cities: Johannesburg, Ekurhuleni, and Pretoria. The Gauteng expansion follows the opening of offices in Cape Town and Gqeberha (Port Elizabeth) earlier this year by the Uber and Bolt competitor, which is sponsored by Softbank.
  • DiDi made its Middle East and North Africa debut last Sunday, beginning in Egypt. 
  • Following the recent introduction of Russian-owned e-hailing startup InDriver in Egypt, which competes with Bolt and Uber, the company’s entry into the market is likely to increase competition.
  • DiDi offers three services in South Africa: DiDi Go, a low-cost option for budget-conscious riders; DiDi Express, a standard service for those seeking a mix of price and comfort; and DiDi XL, with a capacity of up to seven seats, for those who require more space.
  • The DiDi Express has an R15 base cost and a R10 per kilometer distance rate. The service will compete with Uber’s standard rate, which begins at R7.50/km, and Bolt’s standard rate, which begins at R6.00/km.
  • The cost of DiDi Go varies depending on the province.
  • DiDi’s user onboarding process involves a thorough verification process that links the user’s app profile to their social media presence.
  • Uber owns a 12.5% interest in Didi, putting it the company’s second-largest shareholder behind SoftBank.
  • Didi is one of China’s largest firms, and the Beijing government is attempting to keep it under control by investing in state-owned enterprises.
  • In Egypt, drivers will receive a financial reward if they make 10 trips during the first week of registration starting from September, 13, 2020, and the driver will receive a reward of £25 for each successful new user invitation, plus a system of tiered rewards that the “Captain” receives when he reaches a certain number of invites (150 pounds coupon).

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

Australia’s Zip Acquires South Africa’s Fintech Startup Payflex

Paul Behrmann, founder and chief executive officer (CEO) of Payflex

The need to expand into the African market as part of its global expansion agenda has led to the acquisition of South African buy now pay later fintech startup Payflex by Australia Securities Exchange (ASX)-listed Zip. Payflex was founded in 2018 with the objective to help consumers to shop now and pay later, interest-free. It launched with Superbalist.com in 2019 and is now offered at over 1,000 online merchants.

Zip, for its part, is a leading player in the digital retail finance and payments industry. The company offers point-of-sale credit and digital payment services to the retail, home, health, automotive and travel industries.

Paul Behrmann, founder and chief executive officer (CEO) of Payflex
Paul Behrmann, founder and chief executive officer (CEO) of Payflex

With a presence in 12 markets across five continents, Zip plans to grow the South African business and expand into other African markets with sizable underbanked, digitally savvy populations that will benefit from innovative payment solutions. With that in mind, it has announced its intention to fully acquire Payflex.

Read also:Cellulant Partners Gainde 2000 to Digitise Payments for Governments and Companies

“The growth of Payflex over the past few years has demonstrated the demand for buy now, pay later in South Africa. Zip’s acquisition will boost the speed and scale of Payflex’s expansion and allow merchants and shoppers to benefit from Zip’s world-class products, platform and global reach. It is also a significant vote of confidence in the all-South African Payflex team, which will remain unchanged and focused on growing the business,” said Paul Behrmann, founder and chief executive officer (CEO) of Payflex.

Larry Diamond, Zip managing director and CEO, said the last year had been “truly transformational” for Zip as it continued to deliver, despite the most exceptional global economic conditions.

“We started the year with a clear strategy for global expansion, and we have seen record growth, ending the year with US$5.8 billion in total transaction volume, and more than 7.3 million customers and 51,000 merchants around the world,” he said.

Read also:Arab Bank Launches Fintech-Focused Accelerator in Egypt

“The shift away from the unfriendly world of credit cards that was the genesis of Zip’s Australian business, and its proven to be a global phenomenon. Millennial and Gen Z customers are consistently demonstrating their appetite for the simpler, fairer payment options that Zip is providing. This global play supporting customers and global retailers alike provides a real point of difference as we strive to become the first payment choice and a trusted and innovative, global payments brand.”

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

WhatsApp Is The Most Used Social Network For Ecommerce Transactions In Cameroon — GSMA

In their report on electronic commerce in the ECCAS (Cameroon, Central African Republic, Congo, Gabon, Chad, Equatorial Guinea, Sao Tome, DR Congo, Rwanda, Burundi, and Angola) for 2021, the GSMA (global body that brings together telecom operators) and the Economic Commission for Africa (ECA), have provided some data on social commerce (the use of social media for e-commerce transactions) in Cameroon.

whatsapp
whatsapp

“The importance of social commerce is particularly evident in emerging electronic commerce markets (…) where it represents the bulk of electronic commerce activity. A survey conducted in Cameroon found that 88% of those surveyed had purchased items through WhatsApp, while 68% had purchased through Facebook,” the report says.

According to the same source, social commerce allows SMEs to formalize some aspects of their business while operating in markets that lack some of the regulatory and infrastructure features associated with electronic commerce. This can provide more value to participants in the informal sector, which is estimated to number roughly 2 billion people globally.

Read also:WhatsApp Plans App for iPad and Android Tablets

“Research by the GSMA has found that more than a third of social commerce providers target women, rural or low-income groups as their primary user base,” the report says.

One of the major limits of social commerce, according to the report, is that most platforms are not yet intended to conduct end-to-end transactions. As a result, they’ll need more help with logistics, delivery, and payments, which might cause friction in the online shopping experience for both merchants and customers.

Read also:Moroccan Ecommerce Startup, Chari.ma, Acquires Mobile Credit Solution Karny

WhatsApp’s supremacy in social commerce in Cameroon contrasts with Facebook’s popularity. Indeed, according to the findings of a research published on March 1, 2018 by Médiamétrie, the French leader in media studies, 64.6 percent of those polled choose Facebook, which always comes first, followed by Google+, Instagram, and Twitter.

Whatsapp Cameroon Whatsapp Cameroon

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