1. Funding: H2 is off to a gradual begin
In July 2023, 23 African tech startups raised $132.2 million from 25 absolutely disclosed* raises. Compared to July 2022’s $239.7 million complete increase, this represents a 44% YoY lower.
It is, nevertheless, a slight enhance—about 4.75%—from June 2023 when African startups raised $126.2 million in complete.
Per area, East African startups took the lead with 35.8% of the funding, $47.4 million throughout startups in Rwanda, Kenya and Uganda. Central Africa makes a uncommon second place with 30.2% of the July raises—$40 million raised by cleantech startup Nuru.
West Africa and North Africa are available in third and fourth with $35.7 million and $9.1 million raised respectively, whereas Southern Africa has just one absolutely disclosed increase in July 2023, a $100,000 spherical raised by South African edutech CatalyzU.
Per sector, cleantech startups retained the lead with 30.2% of the raises—as soon as once more, led by Nuru’s $40 million spherical. Last month, cleantech startups 41%, about $52.3 million, of the $126.3 million raised.
The different leading sectors for July 2023 are e-commerce/retail with $21.9 million raised, healthtech with $20.6 million raised, and fintech with $13.7 million in raises.
The high 5 disclosed offers of the month are:
- DRC’s cleantech startup Nuru’s $40 million Series B increase.
- Rwandan e-commerce startup Kasha’s $21 million Series B increase.
- Kenyan healthtech MyDawa’s $20 million increase.
- Nigerian startup Terragon’s $9 million increase.
- Nigerian logistics startup Moove’s $8 million increase.
*Note: This knowledge is inclusive solely of funding offers introduced in July 2023. Raises are sometimes introduced later than when the offers are literally made. This knowledge additionally excludes estimated grants from accelerators.
2. Legislation: Kenya Finance Act is free, Uganda to tax overseas corporations
In July, Kenya’s Court of Appeal lifted the freeze order on the implementation of the nation’s newly-enacted Finance Act. The raise got here after Kenya’s Treasury Cabinet Secretary, Njuguna Ndung’u revealed that the nation was dropping Ksh500 million ($3.5 million) for day by day the Act wasn’t enforced. Now, the nation will go on to generate Ksh211 billion ($1.4) from taxes created by the Act.
In extra information about taxes, Uganda has enacted a brand new regulation that may tax overseas corporations domiciled within the nation. The nation’s amended Income Tax Act now imposes a 5% tax on earnings earned by overseas corporations working within the nation.
3. Crypto: SA and Namibia say crypto platforms want licences
Last month, Namibia gave crypto a facet hug because the nation formally authorised the licensing of crypto platforms. It doesn’t imply crypto is authorized tender simply but, although. It simply means the Namibia Virtual Assets Act of 2023 now mandates all crypto platforms within the nation to carry a licence earlier than they will function.
South Africa bolstered comparable guidelines. Per the Financial Sector Conduct Authority (FSCA), all crypto change platforms within the nation should apply for licences by November 30 or face the regulation.
Nigeria, then again, confirmed that international crypto platform Binance was certainly working with out obligatory approvals within the nation. It additionally warned all crypto funding platforms in opposition to soliciting Nigerian buyers.
4. Internet: Starlink launches in Kenya and Malawi, Safaricom to launch satellite tv for pc web service
In July, Starlink launched in two new African international locations: Malawi and Kenya.
The service launched in Malawi a couple of week after it launched in Kenya. At least six African international locations together with Nigeria, Mauritius, Rwanda, and Mozambique, now have the satellite tv for pc web service. The service is ready to launch in 17 extra African international locations in 2023, together with Zambia and Angola.
Meanwhile, the service might even see some competitors in Kenya the place telecoms Safaricom has partnered with AST SpaceMobile to launch its personal satellite tv for pc web providers.
5. Telecoms: Airtel Africa and MTN Nigeria report losses
Nigeria’s shaky foreign exchange market is consuming into telecoms earnings.
In July, Airtel Africa revealed it recorded a $151 million loss in Q1 2023. The telecom blamed the loss on foreign money devaluation and overseas change points in Nigeria.
While one other telecom, MTN Nigeria, didn’t report a loss per se, it did report a lower in its earnings for H1. It recorded ₦128 billion ($165 million) in revenue for H1 2023, 29.14% shy of the ₦181 billion ($234 million) it recorded in H1 2022.
6. Internet ban: Senegal blocks web entry once more, Ethiopia ends ban
Senegal shut down its web once more in July. Per the federal government, the shutdown was enforced to scale back hateful messages circulating on-line following protests over the arrest of Ousmane Sonko who ran for president in Senegal’s 2019 election.
This follows occasions in June the place the federal government shut down the web twice for a similar cause.
Ethiopia, nevertheless, ended its five-month social media ban which it put in place after deliberate protests erupted throughout the nation.
7. Mergers, Acquisitions and Expansions: Access Bank acquires Stanchart, Safaricom expands to Asia
In large moves, British multinational financial institution Standard Chartered (StanChart) revealed, in July, that it had accomplished negotiations to have all its sub-Saharan African property acquired by Nigeria’s Access Bank.
The deal, which is ready for competitors in 2024, will see StanChart promote its subsidiaries in Angola, Cameroon, Gambia, and Sierra Leone, aside from StanChart’s Nigerian subsidy.
Safaricom, then again, is planning an enlargement into Asia with a partnership that may permit M-PESA prospects ship and obtain cash to over 200 million people in Bangladesh and Pakistan.
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8. Venture Capital: Safaricom incorporates two new subsidiaries
In extra information about Safaricom, the telecom is pushing deeper into Kenya’s enterprise capital area with the launch of two new subsidiaries.
In July, it arrange two new entities that may spend money on startups: one in seed-stage startups, and one other in growth-stage startups. The seed-stage subsidiary will complement Safaricom’s already present million-dollar fund, Spark Fund, whereas the growth-stage subsidiary will spend money on well-established startups that will probably be key to accelerating Safaricom’s journey towards turning into a “purpose-led tech company by 2025,” as per the telco’s CEO.
9. Layoffs: Medsaf and Copia Global shave numbers off
Last month, TechCabal revealed that Nigerian healthtech Medsaf had laid off all its full-time workers—about 30
folks—in March 2023. The firm can also be reportedly owing workers salaries.
Kenyan e-commerce startup Copia Global additionally enforced its third spherical of layoffs, slicing off 25% of its workers—350 members of its workforce.
10. Economy: Nigeria pledges $164 million to MSMEs and startups
To shut the month off, Nigeria’s new president introduced that the nation had earmarked ₦125 billion ($164 million) to “energise” the casual sector, particularly micro, small, and medium-sized enterprises (MSMEs).
About 1,300 MSMEs throughout the nation will obtain grants of ₦50,000 ($65) every whereas 100,000 MSMEs and startups will share a ₦75 billion fund ($98.6 million) from which they will apply for ₦500,000 ($657) to ₦1 million ($1,315) loans at a aggressive rate of interest of 9% each year.
…. to be continued
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