Business
Tech Startups, Venture Capitalists and the Race for Tech Solutions
Tech Startups, Venture Capitalists and the Race for Tech Solutions
August24news.com
Sponsored by: H&H
Strong acceleration of investment capital deals is helping tech startups in Africa innovate increasingly as well as break into the unicorn mound. Notwithstanding the fragmented impacts of the global health crisis, tech startups on the continent are seen as peak investment attractions. In the first half (H1) of 2021, African startups raised approximately $1.2 billion in venture capital funding, with 48% of the total investment fund going into tech startups.
The growth of these tech startups on the continent has remained on the rise primarily due to the continent’s huge youth population, increasing internet penetration, and high smartphone adoption. The inherent challenges bedeviling the continent, on the other hand, provide enormous opportunities for the tech startups to innovate and develop solutions that can improve access to healthcare, education, financial services, agricultural support, trading, logistics, etc.
The last decade has witnessed an exponential growth of these tech entrepreneurs and this growth has occasioned a high level of competition among the players. The fact that competing in the digital space does not require profound scientific expertise or huge capital investment, allows these nimble innovators to easily tap into the mass of talents and available digital knowledge to develop novel products, services, and business models.
However, sustaining and scaling their businesses require that they secure constant capital funding hence the frenzied race for the next bigger and better round of capital funding. While tech startups have remained attractive to investors globally, the Africa tech startups’ funding has shown constant growth. From 2015 to 2020, the Africa tech startups’ funding grew at 46% annually – six times faster than the global average.
Meanwhile, the growth in venture capital funding for tech startups on the continent isn’t unattached to the optimism surrounding the future of the market as a major consumption market considering its sprawling young population, increasing smartphone adoption, and internet connectivity penetration rates. Also, the vast pool of potential demand waiting to be funneled into these ecosystems keeps strengthening investors’ confidence in the various tech startups platform springing up across the continent.
Absa, a leading financial services provider on the continent, captured one of the key drivers of the attractiveness of the African tech space in its 2021 African Financial Market Index. The report states that using tech-based innovation to boost the local market and strengthen economic attractiveness is a key driver of the tech startup segment and the robust venture capital investment deals witnessed on the continent recently.
Charles Russon, the Chief Executive of Corporate and Investment Banking, Absa, put the growth tangent succinctly. He said, “We’ve seen a lot of positive progress in countries’ efforts to upgrade market infrastructure and regulatory support through the development of technology-based tools which will help future-proof Africa’s financial markets. With countries using innovation to boost local markets and build a broader investor base, there are plenty of reasons to be hopeful about the future of Africa’s macroeconomic landscape.”
The emergence and growth of these startups have driven up foreign direct investments, job creation, enhanced access to finance, healthcare, expanded revenue sources by supporting the growth of e-Commerce, logistics, etc. The lockdown guideline necessitated a new growth path for the various tech solutions as well. By closing various social, operational, and commercial touchpoints during the lockdown period, local and global tech startups tapped into the opportunity to create solutions that supported businesses and households to stay afloat while they grew their bottom line.
Due to the restrictions during the lockdown, many people could not shop, socialize and were even afraid to spend cash. e-Commerce, e-learning, digital conferencing, and non-cash payment options became safe alternatives.
For instance, Jumia, an e-commerce/ marketing logistic solution platform that operates in Africa, received a record 6.4 million orders in the first quarter of the year 2020 to revamp its dwindling fortunes. Microsoft had a record sale of over $6.8billion from its digital conference platform, Teams.
Precisely, the COVID-19 health crisis moved legacy businesses in the market to adopt digital solutions to stay afloat. Currently, the result is a thriving tech startup ecosystem that is seeing its attractiveness morph into stronger venture capital investment.
However, there are concerns that returns on investment on investors’ funds on the Africa continent are low compared to the returns on funds invested on other continents. ROI on Africa tech startups funding is less than 3% on average across the region over five years, compared with around 11% in Asia-Pacific and nearly 16% in Europe. This is primarily because most of the businesses rarely survive the series B funding stage.
While the barrier to entry is low, Africa startups face numerous obstacles in the course of doing business on the continent. Some of these are the low purchasing power of the consumers, inconsistent policy framework, fragmented geopolitical and economic activities, inadequate infrastructure to unfair competition from legacy companies.
It is therefore important to sustain the tech startup and capital investors ecosystem for continued growth and regional economic development. Startups will need to develop sustainable strategies. Investors, government, and legacy companies will need to work together to tackle the substantial obstacles confronting these startups.
Digital infrastructure development is important to maximize efficiency within the ecosystem. It is a powerful tool for removing age-long hurdles to financial inclusion, access to useful consumer information, and valuable networking opportunities. Little wonder why a strong digital ecosystem is becoming a priority in many countries in Africa.
South Africa, Kenya, Rwanda, and Nigeria are making great strides to scale their tech infrastructure. These efforts could facilitate the installation of efficiency-driven economic machinery that matches the rising demand for tech solutions in the finance, retailing, healthcare, mobility, logistics, travel, hospitality, and administrative segments.
Collaborations and partnerships are critical to sustaining the existence of the ecosystem. Partnerships between legacy companies and the startups, such that the startups provide a solution for the legacy company where everyone is a winner; legacy company, startup, and the customer. An example is Nigeria’s Interswitch partnering with Nigerian banks to provide digital payment solutions to the banks’ customers.
Collaborations can be in the form of revenue-sharing partnerships, joint ventures, or technological alliances, Legacy companies can also partner with startups to create external labs or incubators. There is a growing list of accelerator programmes, incubator projects, startup hubs, co-working spaces and broadband framework policies that are pushing the frontier of IT programming, stimulating fresh tech solutions to meet almost every market need on the continent.
No doubt, Africa is in the midst of a digital revolution with greater implications on the attractiveness of the tech startup landscape. To fast-track ongoing development in the field of digitalization, therefore, the governments on the continent need to continue to upgrade the policy frameworks and market infrastructure as indicated by Absa. This will deepen the innovation culture on the continent, attract further venture capital as well as create a robust service sector that would offset losses in other sectors of the economy.
Business
Access Bank Group, Aig-Imoukhuede Foundation Pledge $300m to Transform Africa’s Economic Landscape
“We can’t wait to be saved; Africans need to solve Africa’s problems. This $300 million commitment reflects this reality’’ – Aig-Imoukhuede
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
The Aig-Imoukhuede Foundation and Access Bank Group have pledged $300 million in charitable commitments over the next 20 years. Access Bank has committed $200 million and Aig-Imoukhuede Foundation committed $100 million.
President Paul Kagame, President of the Republic of Rwanda and Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC, at the Africa CEO Forum 2024 in Kigali…Thursday.
This will fund African government initiatives with a proven potential to transform national economic performance.
Speaking about the commitment, Aigboje Aig-Imoukhuede, Chairman, Access Holdings and Co-Founder, Aig-Imoukhuede Foundation, said, “We can’t wait to be saved, Africans need to solve Africa’s problems. This $300 million commitment reflects this reality.”
President Paul Kagame, President of the Republic of Rwanda and Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC, at the Africa CEO Forum 2024 in Kigali…Thursday.
Appropriately, this announcement was made at the Africa CEO Forum 2024 in Kigali, Rwanda, where the theme of this year’s event is ‘At the table or on the menu?’. At the event, CEOs from across the continent joined to discuss how Africa can demand a seat at the global table, rather than continuing to wait to be invited.
The fund will see the creation of an African-led Super NGO in partnership with academics, experts and philanthropists across the globe who are committed to closing the gap between Africa and the rest of the world. The NGO will work with African governments to provide the funding, governance and talent required to successfully execute game changing government reform programs, especially in the delivery of digital public infrastructure.
The development comes at a time when Ajay Banga, President of the World Bank, has warned wealthy countries that it would be short-sighted to “ignore” Africa. This landmark Africa-led initiative could not have been better timed.
Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC and Co-founder, Aig-Imoukhuede Foundation and Ofovwe Aig-Imoukhuede, Co-founder, Aig-Imoukhuede Foundation, on the sidelines of the Africa CEO Forum 2024 in Kigali…Thursday.
“We African leaders cannot sit back and watch the 4th Industrial Revolution transform the rest of the world while leaving Africa falling further behind. We have to create our own ‘table’ by using technology to unlock the power of our youth, giving Africa a greater voice in the world. It’s today’s leaders who will determine whether or not we grab this opportunity,” Aigboje Aig-Imoukhuede continued.
The availability of digital public infrastructure is a proven and cost-effective way for developing nations to break free of the status quo. It provides citizens with access to the same public goods and services available to citizens of advanced nations.
The India Stack has become a shining example of what can be achieved when visionary public and private sector leaders partner for development.
The Access Bank and Aig-Imoukhuede Foundation inspired NGO will make such partnerships a reality and delivering measurable improvements to the lives of Africans across the continent.
Notes to Editor:
For media inquiries, please contact:
communication@aigafrica.org or +234 808 5716 788
mediarelations@accessbankplc.com or +234 803 320 4315
ABOUT THE AIG-IMOUKHUEDE FOUNDATION
The Aig-Imoukhuede Foundation is a public sector-focused philanthropic organisation founded by Aigboje and Ofovwe Aig-Imoukhuede to improve the lives of Africans through transformed public service delivery and increased access to quality primary healthcare. The Aig-Imoukhuede Foundation accomplishes its mission by supporting the reform initiatives of public sector entities, providing financing, technical support, and capacity-building programmes and resources for the public sector workforce. The Foundation also provides funding and strategic support to drive the work of affiliate organisations such as Africa Business Coalition for Health (ABC Health), the Private Sector Health Alliance of Nigeria (PSHAN), the Nigerian Solidarity Support Fund (NSSF) and others.
For more information, please visit www.aigimoukhuedefoundation.org.
Business
AIGBOJE AIG-IMOUKHUEDE APPOINTED PRESIDENT OF FRANCE NIGERIA BUSINESS COUNCIL
AIGBOJE AIG-IMOUKHUEDE APPOINTED PRESIDENT OF FRANCE NIGERIA BUSINESS COUNCIL
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
At the esteemed Choose France Summit 2024, held on Monday, May 13, 2024, Aigboje Aig-Imoukhuede, the Chairman of Access Holdings PLC, was formally appointed as the President of the France Nigeria Business Council (FNBC) by the President of the French Republic, President Emmanuel Macron.
Aigboje Aig-Imoukhuede having a handshake and a tête-à-tête with President Macron at the Council’s meeting with the President, and Gilbert Chagoury looking on.
The France Nigeria Business Council (FNBC) stands as a pivotal coalition of Nigerian private sector business leaders, committed to enhancing bilateral relations between Nigeria and France. Its core objectives revolve around the facilitation of trade, investments, infrastructural development, job creation, and cultural integration between the two nations.
Since its establishment in June 2021 under the auspices of President Emmanuel Macron, the FNBC has diligently utilised its member network to champion investments across key business sectors, fostering cultural understanding and driving economic growth between Nigeria and France. Notably, it has catalysed Nigerian businesses’ ventures into investment opportunities within France.
Comprising 13 distinguished members, the Council boasts prominent figures including Aigboje Aig-Imoukhuede (President), Abdul Samad Rabiu, Gilbert Chagoury, Mike Adenuga, Aliko Dangote, Jim Ovia, Tony Elumelu, and John Coumantaros. Additionally, Kola Karim, Leo Stan Ekeh, Daisy Danjuma, Gbenga Agboola, and Jean Haas serve as integral members, with Jean Haas holding the position of Secretary.
Aig-Imoukhuede’s appointment follows the passing of Herbert Wigwe, the Council’s former President, in February 2024.
Aigboje Aig-Imoukhuede having a handshake and a tête-à-tête with President Macron at the Council’s meeting with the President, and Gilbert Chagoury looking on.
The Choose France Summit is an annual gathering that convenes business magnates, investors, and governmental dignitaries to explore investment prospects within France. The highlight of the Summit was the Presidential Dinner, characterised by high-level engagements and mutual commitments between participating parties.
Business
ACCESS BANK (SL) LTD STRENGTHENS LEADERSHIP TEAM WITH KEY BOARD APPOINTMENTS, NAMES NEW CHAIRMAN
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
Access Bank Sierra Leone Ltd (‘Access Bank (SL) Ltd’) has announced the appointment of new executives to its Board of Directors (‘the Board’), further strengthening its leadership team and advancing the implementation of its growth and transformation strategy.
These appointments also reflect the Bank’s commitment to fostering growth and development while maintaining the highest standards of governance and stewardship.
Joining the Board as Non-Executive Directors are Maurice Nathaniel Cole, Nsikak N. Usoro, Michala Mackay, Ibrahim Khalil Lamin, and Kolawole Augustine Ajimoko.
The appointees boast a wealth of expertise from diverse sectors, including banking, telecommunications, corporate governance, compliance, and finance. Their combined experience and vision will contribute to shaping the future trajectory of Access Bank (SL) Ltd.
Cole will serve as Chairman, following the exit of Alice Marie Onomake and will bring his experience to the fore as Access Bank (SL) Ltd works to consolidate its market position and deliver value for all its stakeholders.
“We are thrilled to welcome our new executives to Access Bank (SL) Ltd,” said Ganiyu Sanni, Country Managing Director, Access Bank Sierra Leone Ltd. “Their leadership and vision will be invaluable as we navigate through challenges and pursue sustained success. We extend our gratitude to outgoing Chairman, Alice Marie Onomake, and Non-Executive Director, Aminata B. Dumbuya, for their dedicated service and contributions to the Bank.”
Access Bank (SL) Ltd remains committed to excellence, transparency, and accountability as it embarks on this exciting new chapter. The Bank looks forward to leveraging the collective expertise of its leadership team to drive innovation, foster growth, and create lasting impact for its customers and communities.
-
News5 years agoBreaking: ‘Penalty’ Crooner Small Doctor Caught in Possession of Fire Arms
-
News5 years agoTiffany Trump Is Dating a Millionaire Michael Boulos From Nigeria
-
News5 years agoPDP Set To Cause Panic Days To Polls: FG
-
News5 years agoINEC Engages EFCC, FIU In Tracking Campaign Funding
-
News2 years ago
INEC Publish Final List of Candidates For 2022 Osun Governorship Poll
-
Politics5 years agoPDP Alleges Plot by APC, Presidency to Detain Its Leaders
-
Politics5 years agoOsinbajo Has Betrayed Yorubas, Says Afenifere
-
Politics5 years agoLagos Commissioner Decamps To PDP