A New Fund For Financial Services Startups Around The World From The Central Bank of South Africa
With this opportunity, South Africa’s central bank, the Reserve Bank of South Africa (Sarb) is calling on all financial services focused startups from around the world to pitch to it. To that effect, Sarb has launched a competition aimed at fintech firms that are developing innovative solutions to the challenges within the financial services industry.
Here Is The Deal
The call is contained in a statement recently issued by the Reserve Bank which states that the initiative — the Global Fintech Hackcelerator @Southern Africa — aims to create a platform for fintechs to demonstrate their innovative solutions to the complex financial challenges in the region.
What Startups Can Gain From The Programme
Shortlisted fintechs will be invited to showcase their solutions at the Southern African demo day on 29 October in Johannesburg.
At the event in South Africa, a panel of judges from the Reserve Bank and the Financial Sector Conduct Authority (FSCA) as well as local industry experts will select and announce two winning solutions.
An opportunity to pitch their solution live and engage with industry experts during the Hackcelerator Demo Day at the 2019 Singapore Fintech Festival where the top three winners will each receive a cash prize (the Reserve Bank did not specify how much this would be)
Funding to develop a contextualised proof of concept, to be deployed within a year from the demo day
Who Can Apply?
The competition, managed by fintech acceleration programme KPMG Matchi, is open to firms from around the world.
Winners of the Reserve Bank competition will receive a stipend to attend the 2019 Singapore Fintech Festival
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
This is a great funding opportunity for early stage Nigerian startups. Nigeria ‘s Sterling Bank Plc, has partnered with the Nigerian Economic Summit Group (NESG), Venture Capital for Africa, Verakki and GreenHouse Capital, to fund early-stage ventures with grants up to N10,000,000 at the #NES25 Startups Pitch holding on the 6th of October 2019 in Abuja.
Here Is The Deal
Sterling Bank Plc is leading the investment opportunity, supported by Nigerian Economic Summit Group (NESG), Venture Capital for Africa, Verakki and GreenHouse Capital
The funding opportunity is targeted at Nigeria ‘s early-stage ventures or startups.
These startups may get grants up to N10,000,000 ($ 27,646.46.)
Top three winners would win cash prizes ranging from ₦2.5 million to ₦10 million as well as on-going support from NESG and its partners through the NESG Innovation Fund. A ₦1 million audience choice prize would also be awarded at the venue.
Dapo Martins, Chief Marketing Officer at Sterling Bank disclosed that the shortlisted early-stage startups who make it to the final rounds and meet the pitching requirements will be invited to pitch before venture capitalists and investors at the summit.
Each startup will have five minutes to pitch to prospective investors and 10 minutes to answer questions from them and it is expected that the session will also connect 10 start-ups with venture capitalists and investors.
Participation in the #NES25 Start-ups Pitching Event holding on the 6th of October 2019 will be strictly on invitation and shall not be open to all summit participants.
Participation Criteria
Eligibility for application and participation include that the startups:
Must be registered in Nigeria with the Corporate Affairs Commission (CAC)
And must have been doing business for no more than five years.
Business focus are sectors of the economy that include ICT, manufacturing, renewable energy, Agribusiness, Creative, media and entertainment, Education, Financial services, Healthcare, Leisure and travel, Transport and logistics, Water, sanitation and hygiene
Each application must be accompanied by a business plan that should not be more than three pages.
For Nigeria ‘s startups to benefit from this funding opportunity, their applications should also contain a Pitch Deck.
The Nigerian Economic Summit Group (NESG) organises the Annual Nigerian Economic Summit in partnership with the Federal Government of Nigeria through the Federal Ministry of Budget and National Planning. It has become an annual dialogue and indeed the flagship event of NESG and the Federal Government that has provided a credible and widely recognised platform for top policymakers and corporate leaders.
In 2017, the NESG introduced a Startups Pitching Event as part of the annual Nigerian Economic Summit (NES). Many start-up entrepreneurs struggle to get the funds they need to grow their business and, in some cases, even require a mentorship, professional advisory services, among others.
Innovators and entrepreneurs from all over Nigeria would have an opportunity to pitch their start-ups and this is a platform for such businesses to collaborate and interact with individuals and organisations interested in promoting entrepreneurship and an opportunity to pitch to experienced investors and obtain great feedback and possibly capital.
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
Huge hope for startups in sub-Saharan Africa. Global consultancy firm Palladium has launched a US$40 million impact investment fund aimed at bridging the financing gap for small businesses in Sub-Saharan Africa.
Here Is The Deal
The Palladium Impact Fund I will provide capital for SMEs and startups in emerging markets, such as sub-Saharan Africa focusing on agribusiness value chains and off-grid clean energy in Nigeria, Ghana and Kenya. Palladium said it aims to alleviate poverty and economically empower over 500,000 rural households, creating at least 3,500 full-time jobs.
Investors will include foundations, family offices, pension funds, and institutional investors, while Palladium will manage the fund, anchored by a US$5 million investment of its own capital. The new fund will make debt and mezzanine investments of between US$250,000 and US$2 million into small companies.
“Fifty-four years of experience has taught Palladium that for an investment to have impact, it has to be sustainable, which means it needs to generate a financial return. For this first fund, we’ve chosen to invest in empowering African women, as women perform the majority of agricultural activities, own a third of all firms and are key to the welfare of their families. Gender equality and empowerment in the region can raise productive potential and boost the continent’s development,” said Andrew Tillery, head of impact investments at Palladium.
Sub-saharan African countries
Working with many of the world’s largest aid agencies — including USAID, DFID, and DFAT — with staff in 90 countries, Palladium has contributed to a significant pipeline of investment opportunities, local networks, and a strong sense of what real impact takes.
Palladium has already made two direct impact investments, in Naasakle, a mother and daughter-owned shea nut harvesting and processing business in Ghana, and PEG Africa, an off-grid solar energy project. The company has a further 10 investments under due diligence.
“Solar and clean energy technology is hugely important, particularly in rural Africa as it provides vital electricity to households. The social benefits are significant: for instance, 24-hour lighting enables more effective infant care and in turn can lower the infant mortality rate,” Tillery said.
“It’s also the catalyst for the development of small, growing businesses as the working day is longer and more productive. Clean energy can power enabling technology, such as irrigation for farmers, to mitigate many of the risks associated with primary production like adverse weather conditions.”
What Is Expected of Potential Startups
For an investment to have an impact, it has to be sustainable, which means it needs to generate a financial return.
“We want to transform how development is financed, bridging the gap between aid and impact investing.”
Palladium CEO Christopher Hirst believes that after three years of direct investing, now is the time to channel others’ capital to deliver the same impact — and the same returns.
“We’re ideally placed to use our extensive international development work and global reach to source ideas for potential, credible investment opportunities,” he says. “Ultimately we want to transform how development is financed, bridging the gap between aid and investing.”
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
Hence forth, construction companies and firms in Namibia which seek funding to construct environmentally friendly buildings can now have their project plans certified by new software, thereby enabling them to access funding.
A green building, also known as green construction or sustainable building, is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building’s life cycle.
The software is developed and created by the IFC, a member of the World Bank Group.
How Namibian Construction Companies Or Developers Can Go About This
Interested Namibian companies can:
VISIT the EDGE App on their mobile devices and LOG IN or SIGN UP.
CHOOSE the building type for their projects.
Fill in the Design tab with their details and click Save.
Enter their selections on the Energy, Water, and Materials tabs.
Click on the green Dashboard button on the EDGE platform.
Select their subprojects and click Merge.
Click on the Register Project button.
View the certifier(s) and their respective pricing.
Fill out the form and attach documentation, then click Submit.
Expect a follow-up email from the certifier with next steps.
By using Edge software and obtaining the required certification, developers can submit their finance proposals to the bank for funding under the green bond when it meets international standards for building green.
A example of a green building
After the software certification, to qualify for funding, third party certification is offered at a modest cost by Green Business Certification Inc in order to validate project achievement for financial and community stakeholders.
“As a free design tool, Edge presents hypothetical costs savings and payback periods for green building measures such as low-flow taps and solar connectors, helping developers and buildings make the business case for green building,” added Lenore Cairncross, who represents the green building lead for Africa at the IFC.
Projects will thus be considered as green projects if they achieve a 20% projected reduction in the use of energy, water and embodied energy in materials, compared to conventional buildings through Edge certification.
Ruan Bestbier, Bank Windhoek’s sales and sustainability analyst noted that the building certification system is introduced for emerging markets for clients and stakeholders in the construction industry who want to get funding through the green bond.
“Complementary Edge software tool for green buildings enables the user to determine the ideal technical solutions to reduce environmental impacts, while capturing upfront costs and projected operational savings within a local climate context. Within minutes, a building designer can determine the optimum combination of design strategies for the best return on investment,’’ Bestbier said.
The bank obtained additional sources of funding for its green lending activities by raising funds in the debt market through a local green bond issuance, of which the proceeds will be used solely to finance eligible green projects and assets throughout Namibia.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
Tanzanian startups have until today to apply to Seedstars Tanzania Accelerator Programme. Applications for the three-month acceleration programme close on Sunday (18 August, 2019). Successful applicants will each receive investments of $25 000. Applications are expected from startups in all sectors of the Tanzania economy.
Here Is All You Need To Know
The accelerator is an initiative of Seedstars and is supported by the Dutch Good Growth Fund’s (DGGF) Seed Capital and Business Development facility.
The programme will take place between 9 September and 30 November.
Applications for the Seedstars Accelerator Tanzania will close this Sunday (18 August)
Seedstars said in a post on Facebook yesterday (15 August) that between 10 and 12 startups will be selected for the programme.
The programme is driven by lean growth methodologies designed to help startups scale faster in addition to reaching their next investment milestones quicker.
Seedstars is looking for Tanzanian startups with a strong founding team, as well as regional and international stability.
In addition, to be selected for the accelerator, startups must be first time entrepreneurs between the ages of 20 and have a functional prototype or minimum viable product (MVP)
Startups selected for the programme will benefit from access to local and international mentors, guided workshops, one-on-one sesions, introductions to business and investor networks, as well as targeted training and assistance.
In addition, startups that take part in the accelerator will be provided with free office space at Seedspace Dar es Salaam for the duration of the programme.
Moreover, programme participants stand to benefit from increased investment readiness and the opportunity to receive funding from the accelerator’s partners.
Seedstars — the Swiss-based organisation that that assists tech startups in emerging markets — has put out a final call for startups to join its three-month Seedstars Accelerator Tanzania programme, which kicks off next month in Dar es Salaam.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
The presence of Indian investors in the African startup ecosystem is not often heard, but that trend is about to change. Mauritius is leading the change this week. The first India Africa Entrepreneurship & Investment Summit is scheduled to take place this month in Mauritius from August 16 to 18. It will be hosted by India-Africa Economic Forum in partnership with the India Angels Network (IAN) and the Africa Business Angels Network (ABAN) and with the support of the Economic Development Board of Mauritius.
“We are expecting at least 2 Angel/VC Funds to be announced at the Summit that will specifically target the India Africa corridor. The event will also mark the official launch of the Angel Investors of Mauritius (AIM),” said Baljinder Sharma, convener of the India Africa Economic Forum in Mauritius.
Sharma is a serial entrepreneur and an active investor in the India Africa corridor. He is presently an investor in four companies and a board member and advisor to several global private equity and venture capital funds.
Indian Startup Ecosystem
India-Africa Investment Corridor: Opportunities For Angel Investors
Inc42 reached out to IAN’s cofounder Padmaja Ruparel and Sharma to understand more about the similarities and synergy between the two startup ecosystems and the plans for the India-Africa Investment Corridor. Here is an edited excerpt of the same.
According to Ruparel, Africa today is possibly where India was 10 years ago in terms of its ecosystem with two significant differences. First, it has internet penetration rates matching those of India. Second, its population size and demography is also the same as India.
“This would provide a “Catch Up Dividend” for India and Africa to appropriate to each others’ benefit,” she added.
Ruparel further believes that the most number of opportunities exist in Africa at the angel level — including the opportunity to fund, support, mentor and bring startups to the late seed or Series A level. In some cases, it can also help existing successful and innovative Indian companies to sow the seeds for future acquisition.
“This is best achieved by travelling to each other’s geography, walking the streets and dipping your feet to the extent possible, but most importantly by developing trustworthy relationships,” she added.
Synergy Between The India And Africa Startup Ecosystems
The core idea behind an India-Africa investment corridor would be to take engineers and startups to Africa to help the ecosystem in the countries that have shown the most promise. Countries such as South Africa, Botswana, Rwanda, Kenya, Mauritius etc have taken tremendous strides in areas such as infrastructure, engineering, mobile money (MPesa) and in wildlife tourism etc.
“They face the same or similar challenges as India and learning from each other can only improve outcomes. Entrepreneurial connections can be magical in their impact,” said Sharma.
Moreover, Africa is fast adopting the latest technology. Africa leapfrogged straight into GSM unlike many other countries and does not have the baggage of legacy in many other sectors. Clearly as indicated before Africa is far behind India in many indicators, but the angel investments are growing rapidly from a low base.
“India and Africa are well poised to partner each other in their startup activities providing bilateral knowledge, funding and market opportunity to its early-stage enterprises, thereby strengthening existing efforts in increasing trade and development between the two economies,” added Sharma.
India-Africa Investment Corridor To Bust ‘Africa’ Myths
Pre-colonial Africa was known to be home to as many as 10,000 different states, each with their rulers and tribes. For long, the continent had been held by these disparate dynasties and the slavery practised by Western colonisers decimated the workforce in the 19th century. These factors create several hurdles in the development of this continent.
But it doesn’t mean things aren’t changing. As Ruparel said, there is a lot of misinformation about Africa.
“If you look at the continent closely there has been no single coup/conflict in the last three years — but the image of Africa as a risky place remains. People to people contact can only eliminate this,” she added.
African governments have realised that they do not have a choice other than promoting entrepreneurship and have supported a number of incubators and accelerators in partnership with the private sector and foreign governments. In an information-rich world, the possibilities to learn from each other are immense and the governments of African nations could take inspiration from what is happening in India and China.
“Most of the countries are open and welcoming as can be seen from the presence of diaspora — British and Dutch in South Africa and Indians in East Africa and Europeans in Nigeria and Ghana. Years of slavery and colonial rule meant exploitation of the native but it also allowed them to know each other in the process. There is a lot of intermixing and understanding of cultures these days,” added Sharma.
To conclude, India and Africa are both riding the wave of economic disruption and are counting heavily on their startup ecosystem. Startup disruption being one of the prominent factors in economic growth in a digital world, it’s essential that developing countries focus on creating a thriving environment for entrepreneurs to grow and expand. And the India-Africa Investment Corridor is the ideal opportunity to make this happen.
India’s lessons could very well be what Africa’s startups, founders, entrepreneurs and developers need from the India-Africa Investment Corridor. And with angel investors of both regions forging a bond to create the India-Africa investment corridor, the sleeping giant of a continent could finally be ready to wake up.
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
Kingson Capital, along with AKRO Accelerate, is offering a new opportunity for South African startups. The companies, from 28 August to 29 August 2019, will host an event where 20 pre-selected ‘Proudly South African’ startups will be given the opportunity to pitch their business ideas in order to stand a chance at being selected for a two-week boot camp in the United States. There, the startup owners will have a chance to learn how to redefine their business and sustain their venture.
Here Is All You Need To Know
Kingson Capital is a South African Venture Capital Company that is said to be committed to providing venture capital for High-Growth Tech and Black-Owned SME’s.
The company claims it is passionate about clearing financial hurdles for SME’s in order to maintain and sustain their startup momentum.
Kingson Capital is backed by international investors and corporations who have interests in investing in the South African tech industry. Kingson Capital pairs investment with business support through its investment structure.
Kingson Capital claims to have invested 400 million Rand in over 60 businesses.
“Although we see a substantial rise in South African startups,’ it is unfortunate that when it comes to them sustaining that startup momentum, many fall by the wayside due to lack of support. For us, it’s all about creating venture ecosystems across the venture investment landscape. In a South African context, we are looking to build on these ecosystems, and from that growth, all players will reap the long-term benefits,” says Gavin Reardon, founder of Kingson.
“This event speaks to what is so desperately needed in South Africa: giving an outlet to startups to be heard and to be taken seriously in early-stage development, by investors. A lot of startups and founders who are the real innovators in our society, get lost between the cracks of life, as they have no idea how to get market access and investment to kickstart and sustain their growth,” said Janine Basel from AKRO.
“We want to see startups that are innovative, backed by hard-working individuals that are committed to their startup. We want startups that are addressing our most pressing challenges, using technology to address this. We believe that the businesses that solve the biggest problems will have the biggest chances of scaling and being sustainable. For this reason, our focus is on tech or tech-enabled business” added Basel.
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
This is a huge opportunity for agri-startups and businesses in Ethiopia to grow and scale their businesses. The German Federal Ministry of Economic Cooperation and Development (BMZ), through its Green Innovation Centers project, and the Technical Center for Agricultural and Rural Cooperation ACP-EU (CTA), in partnership with iceaddis, officially launched the Green Innovation & Agritech Slam 2019 (GIAS) on August 7 at the Hyatt Regency hotel in Addis Abeba. GIAS is a nationwide agricultural business competition that aims to find innovative solutions to critical challenges of the agricultural sector.
All You Need To Know About The Competition
The competition supports Ethiopian agricultural entrepreneurs and is awarding 10 innovative and bright entrepreneurs or businesses, with over 1,000,000 Birr (roughly $35, 000) shared prize among winners.
“The winners will also receive extensive business development support; expert advice; mentorship; and an opportunity to travel to Germany for an exposure visit (for first prize winners only) in the field of their business idea. The business competition specifically encourages youth and women owned or co-owned companies to apply.’
“Disseminating agricultural innovations is essential to increase productivity and profitability of smallholder farmers in Ethiopia. By strengthening the private sector, up- and downstream enterprises, and promoting entrepreneurship directed towards challenges of the agricultural sector, the service provision for smallholder farmers can be improved,” said Laura de Guevara, GIZ supported Green Innovation Centers — Ethiopia
The nationwide business competition features 5 categories: nutrition & consumer market, agri-inputs & equipment, environmental protection & sustainability, idea stage digital businesses and post-revenue agri-tech startups.
Applications from all over the country will go through rigorous selection process to identify and award the final 10 winners at a grand award ceremony on November 14, 2019. The grand event will have a conference on digital agriculture in Ethiopia on November 15th, 2019.
Ken Lohento of CTA said:“Digital technologies have the potential to transform the agricultural sector. CTA is confident that a focus on digital solutions among youth in this regard will help to boost Ethiopia’s future food security and create jobs across the agricultural value chain.”
The innovations and ideas are expected to bring solutions to critical challenges of the wheat, legumes and honey value chains and digital needs of agricultural stakeholders in Ethiopia. These are believed to eventually contribute to job creation of youth and women entrepreneurs.
Markos Lemma, Co-founder & CEO of iceaddis on his part said that
“Agriculture is the cornerstone of the Ethiopian economy although lack of technology or fresh ideas has partly affected its full success. More than ever, iceaddis recognizes the need to bring innovation by young Ethiopians to the agriculture scene. It is time we support our smallholder farmers better with innovation and technology.”
The Green Innovation & Agritech Slam welcomes individuals, private businesses, higher learning institutes and governmental and non-governmental organizations with innovative ideas and businesses in the selected value chains, as well as young digital innovators offering digital services to the entire agricultural sector.
Funded by the European Union, the competition is organized in collaboration with the Ministry of Agriculture and the Ethiopian Agricultural Transformation Agency (ATA).
How To Apply
The competition categories of this year’s Green Innovation & Agritech Slam 2019 are as follows:
The Value Chain Challenge
Application Deadline:
October 1st, 2019
Do you run a business or have an idea to upscale your business in the food and agriculture value chains of wheat, legumes or honey?
Then apply in these categories
Nutrition & Consumer Market:
Organisers are looking for businesses that want to enter the market with new/ improved products or innovations in the food processing sector that aim at food security or healthy eating
Agri-Inputs & Equipments:
Does your business idea address challenges in the agri-input systems or proposes innovative products to increase productivity, ease maintenance or substitute imports?
Environmental Protection & Sustainability
Apply here, if you have an innovative idea on how to protect the environment or promote sustainability in the selected value chains
Pitch AgriHack Challenge
Application Deadline:
September 10th, 2019
Are you young entrepreneurs (aged between 18 to 35 years old) and do you have innovative digital solutions for the entire agriculture sector?
Then apply in these categories
Pre-revenue digital startups:
Organisers are looking for early stage digital solutions that can solve agricultural problems and support agricultural sector. However, you must have an existing prototype
Post-revenue digital startups:
Do you run a post-revenue digital business focusing on agriculture? Your solution must be already generating revenues, even if it is not yet profitable.
Criteria
Young and driven entrepreneurs
Resident in Ethiopia
Submit the application by the deadlines. For the Value Chain Challenge this is October 1st,2019, and for Pitch AgriHack Challenge, September 10th, 2019.
Mode of Application
Applications can be submitted through the organisers’ web form which is available at www.innovation-slam.com or submitted in printed format at selected regional institutions and partners. For more information about submissions, kindly contact the organisers directly.
Selection Process
The selection of winners is determined by an independent jury composed by the private sector, government ministries, development agencies and business consultants. The organizers do not influence the outcome of the jury’s decision.
This is a huge chance for agritech startups across Nigeria. The FCMB-Wennovation Agritech Incubation Programme, in conjunction with Wennovation Hub, has launched a bid to guide early-stage AgriTech Start-ups across Nigeria so that they can test and validate their ideas as well as gather their first set of customers or pivot if need be.
This will be done through a combination of financial support, guidance, and training. The secondary objective is to prepare these start-ups for acceleration.
Here Is All You Need To Know
The goal of the 2019 incubation is to:
Expose 10 teams across Nigeria to the root of the pre-defined problem statement by merging an in-depth problem definition strategy with an immersion process.
Support at least top 10 teams with a demonstrable Minimum Viable Product to build a sustainable business model by taking them through a design thinking workshop and subsequently a 3 weeks incubation program.
Support at least tops 2 Agritech startups in Nigeria with seed investments and grants.
Offer access to experienced mentors and a cohort structure that encourages peer learning and support.
Provide opportunities to connect with potential customers and investors.
What Are Expected of Prospective Applicants
Applications should focus on four problem statements, namely Input, Production, Processing and Storage, and Marketing and Sales, with Wennovation Hub looking for MVP-stage startups with some form of market validation.
The programme commences with a one-week immersion component where selected startups get to interact with community members through Wennovation Hub immersion partners. Startups who successfully complete the immersion programme and the required reporting commitments will be invited to a two-week Bootcamp in Lagos.
It all concludes with a demo day in September, with all successful startups to be taken into a six-month post-Bootcamp aftercare programme
At the end of calls for application, 10 Agritech start-ups will be selected for the incubation program.
The program will be concluded with a pitching competition at the demo day where 2 Agritech startups will win a total of N3million in Grants.
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
Despite the important contribution small-to-medium enterprises (SMEs) make to the economic growth of South Africa, the sector battles to access funding using traditional means.
And even though there are about 2.5 million SMEs in the country, the biggest stumbling blocks they encounter still revolve around the risk barriers and red tape associated with traditional funding products. The underwriting systems and financials required by institutions to finance small business simply do not provide a true reflection of operating conditions.
This has seen the emergence of fintech solutions and alternative funding products that have been steadily gaining momentum.
Yet most local SMEs are unaware of how and where to gain access to funding. For many, the only apparent path is to obtain funding via banks. By the time the business receives the funding (if ever), it is often too late and beyond the point where it can help the company turn things around.
However, funding entails so many different nuances beyond the traditional, and SME owners need to make themselves aware of what is available, and what will suit their specific requirements.
For their part, investors must adapt their digital strategies to engage differently with SMEs. For example, by using mobile as a platform for funding, the investor not only differentiates itself in the market, but the SME gains access to a real-time solution capable of addressing its unique needs.
This cannot happen on its own.
By partnering with a range of fintech organizations, the mobile-driven funding model provides SMEs with real-time, pre-approved offers based on turnover. And thanks to the availability of machine learning and artificial intelligence, these solutions will become more common. However, investors need to be viewed as more than just funders.
They can be true partners in working with SMEs and assisting them in positioning themselves in the market. Of course, the benefit of this is that they become part of a growing enterprise that has a direct impact on the economy of the country.
By incorporating electro-neural networks that enable the use of a sophisticated decision-making methodology requiring no human intervention, funders can more effectively identify where to invest their money. Invariably, the technology has built-in affordability metrics providing the SME with the peace of mind that funding received will not leave them over-indebted.
The graphic below shows the contribution to total turnover by all companies in South Africa in 2015, based on their size (sizes are determined by DTI, cut-offs and adjusted for Stats SA sampling purposes).
Behind-the-scenes, machine-learning algorithms have a deep understanding of business trading patterns and seasonality. This ensures the SME is unable to access more funding than what the business can afford. Such an affordability measurement is a great way to drive financial inclusion, irrespective of physical location, without leaving the SME over-indebted.
Using this sophisticated technology also enables funding to be done faster and more conveniently than before. Eliminating reams of paperwork and manual-intensive application process enable the owner to keep their focus on driving business growth.
And thanks to the ubiquity of mobile, SMEs can apply for funding irrespective of the time of day, using an environment that they are comfortable in. Funding requires no collateral, or security, and is completely unrestricted.
Depending on the funder, it is possible for SMEs to access funding with same-day pay-outs. However, for it to be truly inclusive, such a solution must be available to formal and informal businesses.
For our part, Retail Capital is driving this mobile focus very strongly to be the first to market with a platform that does exactly all of this. It is about delivering SMEs with an enabling environment to get funding using more innovative methods as quickly and effectively as possible. In fact, this smarter funding approach has resulted in mobile now representing more than 20% of the funding taken up at the organization.
Irrespective of the platform used, funding is the lifeblood of an SME. In these challenging market conditions, a multi-product approach that highlights how digital is changing access to working capital is necessary.
This creates a powerful platform for growth and the betterment of the economy, entrepreneurs and the country’s SME sector.
Miguel Da Silva is the Managing Director of Funding at Retail Capital.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
