How to create JAMB profile for 2024 UTME
There are several updates for the JAMB 2024 you need to be aware of. Creating a JAMB profile is one of them. Creating a Joint Admissions and Matriculation Board (JAMB) profile is the initial step for prospective students in Nigeria to apply for tertiary education. We’ll walk you through the SMS or online registration to create a JAMB profile for 2024 UTME. The process is simple and accessible to all. 1. Create JAMB profile 2024 with SMS For individuals who prefer the convenience of SMS, initiating a JAMB profile can be achieved through a basic text message. Compose a message in the format: Surname First name Middle name from your personal mobile number to 55019. For instance, if your name is Adaeze (first name) Boluwatife (middle name) Chukwuma (surname), the SMS should read: Chukwuma Adaeze Boluwatife. Note: A one-time SMS charge of N50 applies, so ensure you have sufficient credit. 2. Create JAMB profile 2024 via online registration Alternatively, for those inclined towards online procedures, the process remains equally straightforward: Visit the Official Website: Access the official JAMB e-facility website at JAMB e-Facility. Provide information: Fill in all the required details as prompted by the registration form. Verification: Conclude the registration by clicking on the ‘Verify e-Mail’ button. Upon successful registration, checking the email address provided during this process is important. JAMB will dispatch a verification email containing crucial instructions for the subsequent steps. Important notes on creating your profile 2024 Creating a JAMB profile is the foundational step for students aspiring to pursue higher education in Nigeria. Whether opting for SMS or online registration, it’s essential to: Ensure accuracy: Double-check all information entered during registration to avoid errors. Confirm verification: Verify the provided email regularly for updates from JAMB. Keep credentials secured: Safeguard login details and profile information for future reference. By following these simple steps and recommendations, aspiring students can smoothly create their JAMB profiles and embark on their journey towards higher education.
Read MoreSurprise exit at Cellulant as CEO Akshay Grover departs after less than three years
Akshay Grover, who was named Group CEO of Cellulant, one of Africa’s most prominent payment companies, in July 2021, is stepping down this month to focus on personal matters. Cellulant confirmed his departure in an email to TechCabal and said, “The company is committed to maintaining its momentum and continuing its growth trajectory.” Peter O’Toole, the company’s CFO, has been named Acting CEO. According to the company’s communications, new names will be added to its leadership team in the coming months. Grover joined Cellulant in January 2021 as the chief financial officer (CFO). He was appointed Acting CEO in May 2021 after Cellulant’s longtime CEO and co-founder, Ken Njoroge, stepped down following a now-settled financial misconduct crisis that also led to the resignation of the company’s co-founder, Bolaji Akinboro. Cellulant has a storied history, and the tale of how its cofounders scribbled the original idea for the company on a napkin in 2003 is now lore. With an initial $3,000 investment from its cofounders, Cellulant began as a ringtone-selling platform. Its business model soon came under pressure after Safaricom, Kenya’s leading telco, began offering the same music service to customers for free. Cellulant then pivoted from its B2C model, connecting banks to the M-PESA payments ecosystem. It would later expand to Zambia, Ghana, and Botswana as it sealed payment partnerships with international partners such as StanChart. Before the 2020 COVID-19 pandemic, it had 13 offices across the continent and raised $1.5 million, $5.5 million, and $47.5 million across three funding rounds. In 2022, Cellulant was pursuing a $100 million series D round, but the raise was put on hold. Like most digital businesses in Africa, Cellulant was also affected by a challenging business environment in 2023. At the start of 2023, it laid off 27 staff members, and in August 2023, it fired 20% of its staff, consolidated some roles, and created new ones. These changes and trimmings were effected for “leaner and efficient operations,” per a statement shared with TechCabal at that time.
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👨🏿🚀TechCabal Daily – Nigeria to launch stablecoin
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Headlines are coming back to X (Twitter) soon. In November 2023, X CEO removed headlines from link cards because he thought it would make X look better, and while X did look cleaner, it also meant people couldn’t distinguish between link cards and images. The billionaire quickly learned that not all that glitters is gold, and reversed the decision after a month. Now, the new link cards—which will carry headlines in the bottom-left corner of feature images—are finally rolling out on Android, and will be available else everywhere soon. In today’s edition Nigeria to develop a stablecoin Egypt and Ethiopia join BRICS Sunil Taldar appointed as Airtel Africa CEO Starlink debuts direct-to-cell service T-vencubator: An Egyptian VC firm-incubator hybrid The World Wide Web3 Opportunities Crypto Nigeria to launch stablecoin later this month Image source: TechCabal Crypto transactions are back in Nigeria but with stricter rules and new twists. Nigeria’s Central Bank, on December 22, removed a two-year restriction on crypto transactions in the country. The apex bank had previously blocked crypto transactions in 2021, citing money laundering and terrorism financing concerns. Now, the apex bank has new ideas. What ideas? Aside from introducing stricter KYC rules for crypto transactions, which stakeholders say is a good place to start, CBN has asked Nigerian banks and other stakeholders—First Bank, Access Bank, Sterling Bank, and Providus Bank—to develop a stablecoin, a cryptocurrency pegged to the naira’s value. The stablecoin will be launched later this month. A stablecoin? Just like popular stablecoins Tether (USDT) and the USD Coin (USDC), Nigeria’s new stablecoin token, cNGN, is a digital currency that will carry the same value as the fiat currency, Naira. 1 cNGN equals one naira (₦1). While Nigerians can expect cross-border transactions through the new token, only time will tell if cNGN can navigate the rough waters that swallowed the eNaira, Nigeria’s embattled central bank digital currency (CBDC). Another failed crypto project? The eNaira was launched with much fanfare in October 2021 and was touted to be an alternative to the Naira. However, the project has been rocked by low adoption rates. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Economy Egypt and Ethiopia join BRICS Egyptian President Abdel Fattah al-Sisi and Ethiopian Prime Minister Abiy Ahmed in July 2023. Image Source: Reuters BRICS has more building blocks. The group of emerging markets nations has welcomed five new nations—Saudi Arabia, Iran, the United Arab Emirates, Ethiopia, and Egypt—to join its crew starting January 1. This expansion comes as part of the invitation extended by the current BRICS members—Brazil, Russia, India, China, and South Africa—to six other nations in August. Why the move? Founded in 2009, BRICS brings together some of the world’s biggest emerging economies, offering a platform for collaboration and economic influence. With these new members, the group gains enhanced cooperation and coordination among the BRICS nations, fostering economic and diplomatic ties on a global scale. Notably, the sixth country, Argentina, was the only nation to decline the invitation, with President Javier Milei reversing his predecessor’s membership bid after assuming office this month. Looking ahead, the expansion process will continue with the new members sending officials to a sherpa meeting scheduled in Moscow on January 30. Side bar: A sherpa meeting is a preparatory gathering where senior officials from member countries discuss and iron out the details of upcoming summits and other major initiatives. Thirty nations reportedly express interest in forming connections with the group. Per Bloomberg, Nigerian minister of foreign affairs Yusuf Tuggar has expressed the country’s interest in joining the other three African countries—Ethiopia, Egypt, and South Africa—who are part of BRICS, within the next two years. Telecom Sunil Taldar appointed as Airtel Africa CEO L-R: Sunil Taldar, Segun Ogunsanya. Image Source: Innovation Village Airtel Africa has a new CEO. The telecommunications company has announced Sunil Taldar as the new CEO of Airtel Africa who will succeed the retiring Segun Ogunsanya from July 1, 2024. Taldar, who joined Airtel Africa in October 2023 as Director for Transformation, will work alongside Ogunsanya for a smooth handover. Ogunsanya will also be available to advise the Chairman, CEO and the Airtel Africa board for 12 months. Ogunsanya who Joined Airtel Africa in 2012, has a remarkable career spanning over 12 years at the telecom company and played a pivotal role in leading the company’s Nigerian operations and mobile money division. Post-retirement, Ogunsanya will assume the role of Chairman for the Airtel Africa Charitable Foundation. This newly established foundation, operating independently of the Airtel Africa Group, aims to accelerate the company’s commitment to sustainability initiatives and charitable operations in Africa. Zoom out: With 15 years experience as a member of various management boards including Bharti Airtel, where he was Director of Market Operations, Cadbury China and Mondelez India and Indonesia, Taldar is expected to drive further growth and development for the Group which recorded a $151 million loss in the first quarter of 2023 caused by the devaluation of the naira in June. The company rebounded in October and disclosed a revenue growth of 19.7%. Secure payment gateway for your business Fincra payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through cards, bank transfers and PayAttitude. Create a free account and start collecting NGN payments with Fincra. Internet Starlink debuts direct-to-cell service Image source: Starlink Elon Musk’s Space X is redefining global mobile communication dynamics. The satellite company has launched six Starlink satellites with direct-to-cell capability to eliminate mobile dead zones. This means mobile phones can connect directly to the satellite, skipping the need for traditional cell towers. Instead of connecting to a nearby cell tower, your phone communicates directly with Starlink satellites orbiting in space. This makes it possible for mobile connectivity to work in remote areas and
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The world’s first AI film on climate change shows its impact on Africa
Climate change Created by Zain Verjee, a former CNN correspondent, and Matthew Cullen, a Grammy-winning director, Ndoto uses artificial intelligence to depict the effect of climate change in Africa. Floods in Nigeria and Mali. The Sahara’s descent into the Sahel. Drought in the Horn of Africa. Combined, they have caused severe loss of life, money, and property in the last three years. The drought in the Horn of Africa alone has displaced 1.5 million people and killed 13 million livestock. Zain Verjee, a former CNN correspondent, and Matthew Cullen, a Grammy award-winning director, want to change how you visualise these effects of climate change in Africa. The pair created Ndoto, the world’s first artificial intelligence (AI) film on climate change, to depict these effects in Africa in a way that is “not like standard stereotypes”. Africa contributes only 3% of greenhouse gas emissions, seven times less than China, but faces the most risk from climate change. “It is the most important topic of our generation and an existential threat to humanity,” Verjee told TechCabal. The film, which took a week to complete, combines a beautiful and devastating approach to showing the dangers of climate change. Images of children and scenery from Africa depict the gravity of climate change, but in a way that deviates from stereotypes about Africa. “I wanted to capture it in a way where we had fragility, beauty, and, most importantly, humanity central to the film,” Cullen said. An image from Ndoto The film was made using Runway ML, an AI video creator, and an in-house tool built by Mirada Studios, the studio co-founded by Cullen and Guillermo del Toro, the director of Pacific Rim and The Shape of Water. These AI tools created thousands of images, although only a few made it to Ndoto. Verjee told TechCabal that AI was preferred over the traditional filmmaking method because it allows Africans to tell creative stories in an accessible way. “We can create something that can be beautiful,” she said. With AI, Ndoto was created in minimal time and with almost no cost. “[Ndoto] felt almost like a proof of concept that you can do incredible work and overcome many challenges that typically exist with the precision of algorithms and the creativity of humans,” Verjee, who has visited more than two dozen African countries, said. An image from Ndoto. The choice to use artificial intelligence was influenced by the need to display the impact of climate change on Africa without approaching it from a doomsday angle, Verjee told TechCabal. Working on Ndoto is not the first time the pair has worked on a film to showcase Africa. They had earlier partnered on another film titled Unstoppable Africa, which was presented to the United Nations General Assembly and featured music from Grammy Award-winning musician, Angelique Kidjo, and Nigerian singer, Mr Eazi. Verjee is also working on Wanja, an AI chatbot built with data curated by The Rundown, a communications agency cofounded by Verjee. Wanja was built using retrieval augmented generation, a technique introduced by Meta AI researchers, and can give users accurate information on Africa. Although the chatbot is not yet available for public use, tests by TechCabal show that Wanja is knowledgeable about climate, sports, and the creative industry in Africa. “It’s our attempt to shape Africa’s storytelling using powerful, authentic, credible, and curated datasets of expertise that we are allowing a large language model to access,” Verjee said about Wanja.
Read MoreEcobank-backed Cameroonian fintech, Koree, closes $200k pre-seed round
Cameroonian fintech Koree has closed a pre-seed round of $200,000 which it plans to use to grow its merchant base. Koree, a Cameroonian fintech that allows customers to save spare cash (change) on their cards, has raised a $200,000 pre-seed round. The fund will be used to grow its network of merchants, scale its user base, and ultimately achieve product-market fit, according to Magalie Gauze-Sanga, founder of Koree. The round was backed by Tunde Akinnuwa, co-founder at Duplo, Cameroon Angels Network, Catalytic Africa, Digital Africa, and other private investors. Koree aims to solve the problem of spare change in cash-based economies by using a card and digital wallet that allows merchants to return their customers’ spare change. With Koree’s product, these merchants can also create loyalty programmes where customers can earn cashback rewards. To achieve its objective of raising the pre-seed fund, Koree is set to launch a new marketplace that will enable users to get rewards on their everyday purchases. “Consumers will now earn cash when they shop on the Koree app, across 14 categories ranging from bakery, supermarket, fast food, movies, pharmacy etc,” Gauze-Sanga told TechCabal. “They shop as usual and earn a certain percentage of the amount they have spent. The money Koree users earn in their wallet is hard cash, which they can redeem directly into their mobile money account.” Koree will work with customers’ referenced payment service providers for them to be able to redeem their cashback. Since its launch in 2022, Koree has registered more than 11,000 users and processed over 40,000 cash-based transactions worth $285,000. In that time, the fintech has also generated 22,000 private wallets. Its revenue source stems from charging merchants a subscription fee in addition to a commission on each transaction for its customers. In 2023, Koree won the Orange Fab Cameroon challenge. With the fintech’s aim to expand across the continent, especially within francophone Africa, the Orange Fab acceleration programme will provide resources targeted at expansion. Orange’s network of industry experts will provide mentorship for Koree’s strategic development plans. In October, Koree won the Ecobank Fintech Challenge, taking home $50,000 in non-dilutive funding. This funding is already being used to hire in business development and engineering roles. With Koree’s team spread across Cameroon, Côte d’Ivoire, Togo, Nigeria, and Senegal, Gauze-Sanga believes that having a physical office—which will be in Douala, Cameroon—would help the team bond and create a strong work culture.
Read MoreHow grants affect the African economy
Article contributed by Uzochukwu Mbamalu, Founder and CEO Palremit Grants play a crucial role in shaping economies and supporting academic pursuits worldwide. In the context of Africa, the impact of grants goes beyond individual aspirations, influencing the broader economic landscape and growth opportunities. This article explores the multifaceted influence of grants in Africa, highlighting their significance in both economic development and academic growth. Grants have a profound impact on Africa’s economic landscape by stimulating innovation, entrepreneurship, and job creation. They serve as catalysts for positive change. They provide essential financial injections into various sectors, fostering innovation, infrastructure development, and sustainable projects. In Africa, grants often target initiatives aimed at poverty alleviation, healthcare improvement, and fostering entrepreneurship. These funds contribute to the overall economic stability of nations, enabling them to address pressing societal challenges. Specifically, grants empower local businesses by fostering innovation and supporting small enterprises. Grants become instrumental in creating a robust economic foundation. The ripple effect of such financial backing is felt throughout communities and multi-sectors. In academia Grants contribute to the creation of a vibrant academic community. They enable the establishment of research centers, support faculty development, and facilitate international collaborations. The infusion of funds into academic institutions not only raises the standard of education but also positions African universities on the global stage. In Africa, where access to quality education can be a challenge, grants play a key role in expanding academic horizons. In local business In businesses, these financial injections provide crucial support for entrepreneurs and enterprises, enabling them to expand operations, invest in technology, and foster innovation. In a region where access to traditional financing can be challenging, grants are instrumental in unlocking the potential of businesses. Moreover, grants often come with a focus on sustainable and socially responsible business practices, contributing not only to economic prosperity but also to the overall well-being of communities. Grants play a pivotal role in shaping a vibrant and resilient business landscape across the diverse sectors of Africa. In fintech In fintech, grants provide financial backing for fostering African financial inclusion, ensuring that fintech solutions reach underserved populations; although; most African fintechs typically seek out funding from VC firms—like Ajim Capital, which has one of the largest portfolios of African fintech startups; equities, and angel investments. Ironically, grants don’t require founders to commit any business equities required by these VCs. However, there is a bigger gap in the funding which drives fintechs to VCs instead. Still, there are examples of grants and accelerators in Africa providing mentorship platforms to fintechs in Africa to run with their ideas and contribute to the evolution of fintech. These funds enable fintech startups to experiment with novel ideas, refine existing technologies, and navigate regulatory challenges. Top grants in the world for Africans Several prestigious grants open doors for Africans to access global opportunities. Some top grants programs available to Africans today include: Mastercard Foundation Scholars Program (Academics) The African Women in Agricultural Research and Development (AWARD) Fellowship (Agriculture Research and Academics) African Development Foundation Grant (Businesses) Tony Elumelu Foundation Grant (Businesses) I-Dice (Businesses) Shell LiveWire (Businesses) Anzisha Prize for African Teen Entrepreneurs (Businesses) Ugwumba Leadership Centre (Businesses) Google Hustle Academy SMB Fund (Businesses) Google for Startups Black Founders Fund (Businesses) MEST Seed Funding & Accelerators (Businesses) Catalyst Fund Inclusive Fintech Accelerator (Fintech) These grants and numerous others provide avenues for skill development, research initiatives, and entrepreneurship support. By tapping into these opportunities, individuals and organizations in Africa can contribute significantly to the continent’s growth and development. Tips for applying for a grant Applying to grants has a high barrier to entry. This is because it is typically highly competitive. Importantly, you should possess sharp grant-writing skills to get one leg up in any competition. Even after you’ve acquired this skill, there are still certain actions that aspiring founders must carry out to increase their chances of winning a grant for their businesses with no equity. Consider these strategies: Understand the specific requirements and objectives of the grant you are applying for. Craft a compelling and concise proposal outlining your objectives, methodology, and anticipated outcomes. Steal this tip when you write your grants. Judges are more impressed with businesses that have well-thought-out feasibility studies and plans for growth, backed by numbers. Clearly articulate how the grant will contribute to positive change in your community or field. Most grants give high priority to ESG factors. So think about ways your business plays in this ecosystem and sell it. Foster collaborations and partnerships to strengthen your application. Adhere to the application guidelines meticulously to avoid disqualification. Grants play a pivotal role in shaping the African economy and academic landscape. As catalysts for positive change, they empower individuals, businesses, and institutions to contribute meaningfully to societal progress. While the application process may pose challenges, the potential benefits far outweigh the cons. As Africa continues its journey towards economic prosperity and academic excellence, grants stand as beacons of hope, providing the necessary support for businesses in Africa.
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Funding reaches two-year decline as African startups raise $3.2 billion in 2023
In 2023, African startups secured $3.191 million in funding. This marks a sharp decline compared to the previous years. Per our friends at Africa: The Big Deal, a curated funding database, African startups raised $3.4 billion in 2023. At TechCabal, our number is at $3.2 billion because we define funding a bit differently. What’s important to note is that we’ve left out undisclosed funding and estimates in this. The ecosystem experienced a quarter-on-quarter decline from Q1 2023 when $1.2 billion was raised, to Q2 with $877.8 million and Q3 with $492.7 million. There was a slight uptick in Q4 which saw $551.2 million in raises. At $3.2 billion—or even $3.4 billion, what’s clear is that 2023 marks the lowest funding for African startups since 2020’s $2.1 billion. It’s a 36% decline from 2022’s ~$5 billion total. Image source: TechCabal/Timi Odueso The good news is, much like the plight of abandoned New Year resolutions, the decline in venture funding isn’t just an African affair—it’s a worldwide trend. Per Crunchbase, the once-mighty flow of VC funding has been on a steady downhill slide since January 2022, which was the last time global tech funding exceeded $60 billion per month. January 2023 marked a descent to just under $40 billion, which, compared to the modest $19.2 million raised in November 2023, almost feels like a glorious beacon of hope. The bad news—or as seers want us to believe—it’s only going to get steeper in 2024 with several forecasts finding investors being more cautious on whose mouth they put their monies. At least 10 of the 23 tech leaders we spoke to for our 2023 Wrapped article said as much, noting that 2024 will see more frugal investors, leaner startups and tougher economies…at least in the first half. Investors at global funds like Thomvest Ventures and QED who spoke to Business Insider also gave similar predictions. It might not always be sunny in tech, but there’s a silicon lining to this gloomy news. To quote Healthcap founder Ola Brown, “Some of the largest tech companies in the world, such as Apple, WhatsApp, Slack, Microsoft, Amazon, and Uber, were born during “venture capital winters”. Funding winters push companies towards sustainable growth and innovation. Regions: How did the Big 4 perform? Region-wise, North African startups led the way in 2023 with $1.074 billion in raises. This, of course, was pushed by Instadeep’s $680 million acquisition led by BioNTech. Image source: TechCabal/Timi Odueso Meanwhile, across Africa’s top quartet, funding streams shrunk as harsh economies surfaced. The Big 4—Nigeria, Egypt, Kenya and South Africa—used to refer to the four countries that receive the most attention from investors, raised $2.37 billion—about 74.9%— in total. Surprisingly, Nigeria sits at the bottom of the ladder this year with just $398.2 million while Kenya sits atop with $756.2 million. Image source: TechCabal/Timi Odueso This is a major decline (66% ) for the West African giant which has raised over $1 billion per year since 2021. Sectors: Big Energy While Nigeria’s tech ecosystem might have not been fully charged in 2023, the continent’s energy—or cleantech—sector certainly was. Don’t get it wrong, fintech is still king, accounting for about 45% of the total funding. But energy-led startups brought power to the industry, and new meaning to the phrase, more passion, more passion, more energy, more energy, more footwork… Between June 2023 and October 2023, the energy sector continuously dominated funding, with a significant 43.7% of the total capital raised during that period. Image source: TechCabal/Timi Odueso In April and May, energy startups were the second-highest performing sectors after fintech. That’s seven out of twelve months with energy in the leaderboard for the African tech ecosystem. The biggest deals from this sector are led by Kenyan cleantechs with SunKing’s $130 million securisation deal and Wetility’s $48 million mezzanine round, and Nuru’s—a DRC startup—$40 million Series B round. Funding: VC investment in 2023 In 2023, there was a lot of talk about how much funding startups raised or didn’t raise, but so little about the moneybags behind them. But hey, investors are people too, right? If you were wondering which new VC firms popped up last year and which old ones raised new funds? Here’s what you need to know. Exciting closes: Partech Africa took the crown with the close of its $263 million Africa Fund II, doubling their investment caps. Knife Capital also announced the close of its $50 million growth fund in the same month—August. And the party kept going with P1 Ventures, Verod-Kepple Africa Ventures, and others raising 8 figures in first closes, gearing to raise even more this year. The VC scene went green: Specialised climate funds blossomed across the continent. Novastar led the charge with its $200 million Africa People + Planet Fund, while E3 Capital and Lion’s Head joined forces with their $100 million Low Carbon Economy Fund. AfricaGoGreen added another $47 million to the mix, and local players like Echo VC chipped in with green-focused funds. Grovest, Sasol’s Venture, Gaia Energy, and others also announced climate-focused funds. New kids on the block: A number of fresh faces made big splashes. Accelerator Norrsken22 stormed into the year with a $250 million debut fund, while Black Ostrich Ventures and Seedstars Capital joined the continent’s party with their maiden Africa-focused funds. Even established players like Emkan Capital debuted a new $31 million fund for early-stage startups. Equator’s $40 million maiden fund also came in followed months later by Aduna Capital’s $20 million fund which focuses on under-funded regions like Northern Nigeria. Not so new kids: Established VCs doubled down in Q2: Ajim Capital, Oui Capital, Goodwell Investments and Alitheia Capital closed new funds, while Saviu Ventures neared its €32.8 million ($35 million) goal. Flat6Labs announced a $95 million seed fund to expand its investments to Nigeria, Ghana, Kenya, Morocco, and Senegal, and TLcom set sights on a $150–$180 million fund for the continent. We also saw angels: Right at the start of 2023, Kazana Fund launched Angel Syndicate with over
Read MoreTingo Founder Dozy Mmobuosi charged with securities fraud in the U.S
U.S. prosecutors have shared details of criminal charges brought against Odogwu Dozy Mmobuosi, the founder and CEO of Tingo Group, a Nasdaq-listed “agri-fintech” startup. Mmobuosi is accused of reporting hundreds of millions of dollars in fictitious revenues and assets for three companies he controls. He is charged with conspiracy, securities fraud and making false filings with the Securities and Exchange Commission. The three charges carry a maximum sentence of 45 years; prosecutors say Mmobuosi is at large. According to the indictment, Mmobuosi “orchestrated a scheme to enrich himself by falsely representing that Nigerian companies he founded, Tingo Mobile and Tingo Foods, were operational, profitable businesses generating hundreds of millions of dollars in revenue, respectively.” In 2022, Tingo Group reported that it had cash and cash equivalent of $461.7 million for the fiscal year. Investigations showed that its bank accounts held less than $50 in total. Mmobuosi propped up his businesses in interviews over the years and, in 2021, told one publication that Tingo had 12 million users and a valuation of $6.3 billion. He told several publications about plans to list on the New York Stock Exchange by 2021. In reality, Tingo was listed on the Nasdaq after a series of reverse mergers allegedly based on fake financials. Getting listed on the Nasdaq gave Mmobuosi and his companies access to US investors and capital. The U.S. prosecutors say he was able to siphon an estimated $16 million from Tingo Group. The house of cards, propped up by grand claims, was short-lived. A report by Hinderburg Research, the infamous American short seller, soon called Tingo’s financials and operations into question, branding it a fraud of massive proportions. On December 18, the SEC announced an investigation into the company, suspending trading in Tingo’s shares. Two days later, Dozy Mmobuosi temporarily stepped down.
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Five trends to watch out for in African tech in 2024
With 2023 now behind us, we look back on a year marked by strong economic headwinds and market upheavals. A cursory look at funding numbers shows that 2023 was a mixed bag. Venture capital (VC) funding fell by 41.7%, quarter-on-quarter, going from $916m in Q2 to $499m in Q3. In 2022, funding raised by African startups peaked at $5bn. As of November 30, 2023, this figure stood at $3.246bn, which, so far, shows a stark 36% dropoff from last year, highlighting the difficulty investors faced in raising funds in 2023. The number of $1m+ equity deals also waned significantly from a high of 125 in Q1 2021 to 42 in Q3 2023. Despite the low numbers, 2023 had some positives. Notably, a new African unicorn emerged in the shape of MNT-Halan, the Egyptian fintech startup. Firms like Partech—via its Africa II fund—and M-Kopa raised money above their expectations, exceeding $250m each. Flutterwave made strides towards its goal of an initial public offering (IPO) after being cleared of financial misconduct in Kenya, and Nigeria’s central bank shifted its posture on crypto to adopt a crypto-friendly policy stance. So, what trends should we look out for heading into 2024? Funding downturn and cost-cutting measures likely to remain In 2023, fintech, logistics, and e-commerce platforms, which traditionally attracted heavy funding, witnessed a slowdown marked by downsizing and, in some instances, shutdowns. In Q1 2024, startups will likely continue cost-cutting measures and refocus on unit economics in an uncertain funding environment. This could be anything from localizing costs and scaling back operations, raising funds in local currency, revising medium to long-term goals by prioritizing survival, and reducing exposure to markets susceptible to foreign exchange volatility. Recent trends point to this, as we have seen companies like Paystack scaling back its activities outside Africa and Jumia shutting down its food delivery business. Resilience will be the watchword. Consolidation via mergers and acquisitions Seven mergers and acquisitions deals (M&A) led the way in African tech at the beginning of 2023, valued at ~$710m, with Biontech the pacesetter by acquiring AI firm Instadeep for $680m. More recently, there have been merger talks by B2B platforms Kenya’s Wasoko and Egypt’s MaxAB, which, if finalized, would make it the largest merger within the e-commerce subsector. So far, there have been at least 29 such deals, although most have been for undisclosed amounts. Market dynamics, capital availability, and startup agility drive M&A in Africa, often initiated by larger companies looking to acquire earlier-stage companies on the path toward going public. The presence of numerous small and medium-sized companies operating across diverse regions and sectors creates a fragmented market. By coming together, they can be better equipped to compete in the global market and attract investments. Expect such collaborations in 2024. Artificial Intelligence to gain wider application Beyond its widespread use in large language models (LLMs), there will be more integration of artificial intelligence (AI) across diverse sectors ranging from payments to health infrastructure. However, digital commerce platforms are likely to adopt AI tools using surgical precision rather than implementing them on a sweeping scale. Africa’s AI market is projected to reach $6.9bn in 2024. Most of it will be powered by machine learning, natural language processing, and autonomous and sensor technology. African investors to maintain cautious optimism A survey by the AVCA on the expectations of 88 African investors, including Limited Partners (LPs) and General Partners (GPs), noted that 85% of LPs plan to increase their allocation to private capital in Africa over the next two years, with impact (77%) and investment mandate (68%) identified as their primary reasons. Data from our Founders’ Outlook Survey revealed that 65% of investors maintain an optimistic outlook for the African startup ecosystem in 2024. The optimism does not appear misplaced, as the Financial Derivatives Company projects that inflationary pressures will ease across Africa, falling from 18.6% in 2023 to 16.1% in 2024. The Economist Intelligence Unit (EIU) predicts that “Africa will be the second-fastest-growing major region in 2024, with most countries increasing economic growth compared with 2023. East Africa is expected to champion African growth.” However, the EIU also says many African countries will feel the weight of excessive debt and a heavy repayment burden in 2024. Possible shifts in regional preferences In 2024, investors could reevaluate their regional strategies in response to changing macroeconomic and political conditions. Per the EIU, fifteen African countries have elections next year, and investors will observe their outcomes keenly. Elections are fraught with risk, especially in regions where armed conflict is rampant. The EIU notes that elections in Algeria, Egypt, Ghana, and South Africa will add to political risk, which could have long-term implications on where investors put their money. The AVCA survey revealed that LPs favored investing in West Africa while GPs leaned towards East Africa. The data aligns with this: between 2019 and 2023, per The Big Deal, there were over 700 recorded deals worth $1m or more. West Africa led the pack with 246, East Africa with 175, Northern Africa with 160, Southern Africa with 147, and Central Africa with 14. Depending on the degree of confidence, the numbers could realign with investors becoming more risk-averse. It’s all “wait and see” going into 2024.
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