- July 10 2024
Tanzania’s Amsons offers $182.89m to acquire Kenya’s Bamburi Cement from Swiss firm
Tanzania’s Amsons Group, a family-owned conglomerate with interests across various sectors, has made a $182.89 million (KES23.59 billion) offer to buy a 100% stake in Kenya’s Bamburi Cement from Holcim, a Swiss multinational. The acquisition could see the local cement manufacturer delist from the Nairobi Securities Exchange (NSE). On Wednesday, the Tanzanian firm launched a take-over bid through its Kenyan subsidiary Amsons Industries (K) Ltd, offering shareholders $0.51 (KES65) per share. Amsons’ bid will offer the cement manufacturer’s shareholders a 44.44% premium on the share closing price on Wednesday. “The proposed investment will not only cement a Tanzanian company’s place as one of East Africa’s largest takeover deals but also promises substantial growth potential for Kenya through foreign direct investment,” Amsons said in a statement. Bamburi is the largest cement maker in Kenya, controlling about 30% market share. Edha Nahdi, Amsons managing director, said the acquisition is part of the company’s plans to expand into East Africa’s largest economy. “We have great plans to deepen our investment in Kenya and Bamburi. It is part of our market expansion plan and will mark the formal entry into the Kenyan market. We plan to invest in other industries in the coming months,” said Edha Nahdi, Amsons managing director. Founded in 2006, Tanzania’s Amsons has interests in cement, real estate, oil and gas, and wheat flour across Malawi, Zambia, Mozambique, Burundi, and the Democratic Republic of Congo. The company has an annual turnover of over $1 billion. In November 2023, Holcim sold its 65% stake in Mbeya Cement Company, a Tanzania subsidiary, to Amsons. The latest bid could signal the Swiss firm’s divesture from the East African market which it holds two investment arms, Kencem Holding Limited and Fincem Holding Limited. The acquisition bid comes four months after Bamburi Cement exited the Ugandan market by selling its stake in Hima Cement to Uganda’s Sarrai Group and Rwimi Holdings.
Read More- July 10 2024
Digital economy bill will unlock EdTech investment, Nigeria’s tech minister says
A proposed bill on National Digital Economy and e-Governance will drive EdTech investment in Nigeria, according to the country’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani. The proposed legislation passed its first reading in the National Assembly on Monday. The bill aims to improve digital literacy and skill development, a key enabler of EdTech adoption. It was sponsored by Adedeji Olajide, Chairman of the House Committee on Digital and Information Technology. The bill’s key provisions include maintaining a National Digital Skills Register, providing an enabling environment for exchanges of digital services, and digital and capacity-building initiatives for young Nigerians. “This bill is far superior to a mere policy,” Tijani said during the Mastercard Foundation EdTech Conference held in Abuja on Tuesday. “Its passage by the National Assembly will empower EdTech startups to design solutions with scalability in mind. I’ll be addressing a conference soon about the digital economy bill for Nigeria.” Half of Nigeria’s population lacks digital skills. The country has set an ambitious goal of attaining 95% digital literacy by 2030, with the support of the country’s tech regulator, the National Information Technology Development Agency (NITDA). If enacted, the Digital Economy Bill will join the list of landmark policies targeted at supporting Nigeria’s tech ecosystem. In October 2022, then-President Muhammadu Buhari signed the Nigeria Startup Act into law. In May 2023, Nigeria approved a National Blockchain Policy. The tech minister strongly believes in creating local laws to improve technological innovation in Nigeria. “Let’s move away from the approach that a startup is building solutions in a few schools, hoping it will scale. It does not scale because we are not engaging at the level that should make it scale.” He tasked ecosystem players to stop building in silos and put hands together to push more laws that can grow the sector.
Read More- July 10 2024
Nigerian cloud provider hit with ransomware attack as government agency works to “swiftly resolve incident”
At least one local cloud service provider has been hit by a Phobos ransomware attack as ngCERT works to resolve the incident. Nigeria’s Computer Emergency Response Team (ngCERT) is “working with vulnerable and affected organizations to swiftly resolve incidents and prevent further escalation” after it detected an increase in ransomware attacks on local cloud service providers. According to ngCERT’s statement on Monday, there was a rise in the use of Phobos, a ransomware-as-a-service that hackers use to gain access to a company’s infrastructure and encrypt their information. Once that information is encrypted, the hackers then begin extorting the company. At least one Nigerian cloud provider has been hit with the Phobos ransomware, said one person at a government agency with direct knowledge of the matter, declining to name the company. Hackers took over the company’s infrastructure and encrypted their files, the same person said, declining to provide a timeline for the ransomware attack because he was not authorised to comment. Phobos attackers gain entry into vulnerable networks through phishing emails or using IP scanning tools to identify susceptible Remote Desktop Protocol (RDP) ports. When successful, such attacks lead to system compromise, ransom payment, data loss, financial losses, and fraudulent activity, ngCERT said. For Nigerian cloud providers, the increase in ransomware attacks is bad business. These companies have positioned themselves as cheaper and more reliable alternatives to AWS and Microsoft Azure as more startups consider reducing cloud costs. Some Nigerian cloud providers have also lobbied the government to become their preferred choice for hosting sensitive government data. *This is a developing story TLcom-backed Okra expands into cloud services
Read More- July 10 2024
“Our vision is now global,” says Nigeria’s Access Holdings as it begins $233 million capital raise
Access Holdings Plc, the parent company of Nigeria’s biggest bank by assets, will raise ₦351 billion ($233 million) from existing shareholders to finance its goal of becoming “the world’s most respected African bank.” Access Holdings will offer 17.7 billion new ordinary shares at ₦19.75 each. On Tuesday, the 35-year-old lender valued at ₦696.69 billion shared its expansion plans in a presentation to shareholders and other stakeholders at the Nigeria Exchange Limited (NGX). “When you are the largest bank in Nigeria and one of the largest banks in Africa, where do you go from here?’ Our vision is now global, very, very global,” Aigboje Aig-Imoukhuede, Access Holdings Plc Chairman said in his presentation on Tuesday. With over 60 million customers and a presence in three continents, Access will expand into new markets including the United States, and set up a trade booking office in Malta. “We are very selective in the markets we invest in. We are chasing the money. It isn’t a return on ego. We are focused on where the money is,” Roosevelt Ogbonna, Access Bank MD/CEO said. What will Access use the money for? Access will invest ₦223.00 billion (65% of the proceeds from the rights issue) to grow its loan book to offer more lending services across corporate and commercial business, retail business, and SME segments. It will also spend ₦68.62 billion (20%) to upgrade and develop its infrastructure upgrades. 15% of the proceeds (₦51.46 billion) will be invested in distribution and product channels, including new branches in Lagos, Port Harcourt, and Abuja over the next 24 months. With the fresh capital, Access hopes to “become the world’s first truly African global brand in the financial sector.” Since its acquisition by Aigboje Aig-Imoukhuede and his late partner Herbert Wigwe in 2002, Access has grown aggressively through a strategy focused on local and foreign acquisitions to build a presence in 18 countries. In 2021, it merged with Intercontinental Bank, and seven years later completed a merger with Diamond Bank. In 2023, it acquired majority shares in Standard Chartered Bank’s subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone. In June 2024, Access acquired African Banking Corporation of Tanzania (ABCT) Limited. “There is no Nigerian bank that was our size in 2002 that is still alive today. Some of the banks that analysts now compare us with, you couldn’t mention Access beside those banks in 2002. It’d have been an insult to those institutions,” Ogbonna said.
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- July 10 2024
TechCabal Daily – Okra blends into the cloud
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Here’s another reminder to move TC Daily to your Primary/Main folder so you don’t miss any of our coverage. In today’s edition Kenya is now a credit-risky nation for investors Nigerian lawmakers want to fight inflation with gold UNDP to raise $1 billion dollars to build tech hubs in Africa Okra moves into the cloud The World Wide Web3 Job openings Economy Kenya is now a credit-risky nation for investors Moody’s, a leading credit rating agency, has downgraded Kenya’s sovereign rating to be substantially “credit risky”, citing the government’s decision to withdraw a controversial tax bill that would have raised much-needed revenue. The downgrade from B1 to Caa1 reflects Kenya’s diminished capacity to manage its increasing debt and fund critical development programs. What happened? The scrapped 2024 Finance Bill contained measures to raise an additional $2.5 billion in consumer taxes, but widespread protests forced President William Ruto to backtrack on the proposed tax hikes. Moody’s warned that the government’s shift away from revenue-based fiscal consolidation and reliance on expenditure cuts will slow the pace of deficit reduction, leading to weaker debt affordability for the East African nation. This credit rating downgrade comes as Kenya struggles to meet its tax collection targets, missing the mark by $2 billion in the last fiscal year. Kenn Abuya reported for TechCabal that, “High operational costs including energy prices and the weakening of the Kenyan shilling against the dollar were some of the factors behind the economic slowdown.” The country’s fiscal woes are exacerbated by the government’s inability to implement unpopular but necessary revenue-raising measures.The Kenyan government’s decision to prioritise political stability over fiscal prudence in the face of public backlash shows the delicate balance that leaders must strike between appeasing citizens and ensuring the long-term financial health of their countries. The way ahead for Kenya: Speaking after his 3-hour X (Twitter) space last Friday, Kenya’s President, William Ruto says its administration will aim to listen to Kenyans more and lead with more empathy. As the East African economic powerhouse navigates this turbulent period, it will need to find innovative ways to boost revenue and restore investor confidence without further burdening its citizens. Process payments smoothly with Moniepoint And we’ll have processed almost 5,000 more by the time you’re done reading this. Your business payments can be one of them. Click here to sign up. Economy Nigerian lawmakers want to fight inflation with gold Zimbabwe achieved an important feat this year. After 15 years of purse-biting inflation and 5 different currencies, it now has a currency, the gold-backed ZiG, that has held its value since it was released in April. Some critics say the new currency is stable because it’s backed by a fiat resource, but others, say the ZiG is only stable because it, like Davido, is unavailable. Regardless, the currency is stable and shiny. Nigerian lawmakers are now looking to do something with gold too. The lawmakers are pushing a bill that would give the central bank more muscle to buy up gold and stash it as reserves. Gold presently accounts for 4% of Nigeria’s reserves, and the bill, if passed, would push this number up to 30% by making the central bank the exclusive buyer of all domestically produced gold. Right now, Nigeria’s gold mining scene is a bit wild, dominated by informal operations. The bill aims to bring this industry into the fold, potentially boosting its contribution to the national coffers. A crude telling: Nigeria has been battling crippling inflation since fuel subsidies were removed last year. Food inflation surged to 40.66% in May, while headline inflation is at 33.95%. Nigeria’s dependence on oil and gas for foreign exchange is a double-edged sword. Vandalism and dwindling investment have choked production, pushing the government towards economic diversification. With mining, a sector boasting a 6.3% growth rate, analysts predict gold is a potential game-changer. This proposal faces an uncertain future as President Tinubu, who’s keen on revamping Nigeria’s mining sector, has plans to revamp the country’s mining sector, but with a focus on lithium as opposed to gold. Issue USD and Euro accounts with Fincra Create and manage USD & Euro accounts from anywhere. Fincra allows you to issue accounts to your users, partners & customers to collect payments without the stress of setting up and operating a local account. Get started today. Funding UNDP to raise $1 billion dollars to build African tech hubs Tech hubs in Lagos, Nairobi, and Cape Town have flourished through collaborative efforts. These hubs have significantly contributed to Africa’s “Silicon Valley” dream. Kenya’s iHub, for example, has contributed to over 450+ startups that raised $40 million in funding. It’s a modern hunter-gatherer system: With tech hubs that were absent over two decades ago now proliferating in Africa, it’s just a different kind of hunter-gatherer system. Mentors coach, and builders collaborate to build solutions addressing Africa’s pressing issues—all to survive. Now, they’re getting more support. The United Nations Development Programme (UNDP), in collaboration with African governments and the private sector, plans to raise $1 billion to open a string of tech hubs (called Project “Timbuktoo”) across major nascent cities in Africa, starting with an innovation centre in Lagos, Nigeria this year. The initiative will also build a healthtech hub in Kigali, Rwanda, an agritech hub in Accra, Ghana, and a minetech hub in Lusaka, Zambia that will support more than 10,000 youth-led founders. Catching them young: University Innovation Pods (UniPods), another UNDP project, commenced in universities like Malawi and Kenya to provide young tech entrepreneurs with infrastructure to build businesses that not only survive the future of tech but also thrive. Perhaps, Africa’s “Silicon Valley” dream isn’t dead yet. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog → Startups
Read More- July 9 2024
EdTech funding decline takes centerstage at Mastercard Foundation conference
A paltry 1.4% – that’s the amount EdTech startups managed to secure of the continent’s 2023 Venture Capital (VC) funding. This sharp drop from a funding peak in 2021 has left founders with a harsh reality: smaller deal sizes and a dearth of exits. This issue became a central focus at a panel discussion during the Mastercard Foundation’s EdTech Conference in Abuja. The funding gap follows a broader trend in the venture capital world. Investors burned by inflated valuations in the past are writing fewer checks, and mega-deals in the EdTech space are no longer getting done. Data from Disrupt Africa confirms this shift—not a single EdTech company has secured a $100 million or more venture round in 2023, a contrast to such deals witnessed on the continent in 2021 . “Securing exits for EdTech startups is practically non-existent,” said Isaac Nyolongo, Co-Founder and CEO of Zeraki, a Kenyan EdTech startup. “If you raise money from angels networks, it will be at a lower valuation, and lower than what people get in more mature sectors.” Despite boasting of over 200 startups, Africa’s EdTech sector is still nascent. Funding, a key driver of growth, remains a significant roadblock. Deal sizes are typically small, and only one exit has been recorded—the acquisition of Egyptian edtech Orcas by Baim, a middle-eastern EdTech startup for an undisclosed amount. With VC funding drying up, EdTech startups now rely on grants. Challenges limiting EdTech funding in Africa can be linked to the lack of infrastructure. Others include low internet speeds, high cost of data and low smartphone penetration, according to this 2023 UNESCO report. “Broadband, mobile penetration and power are the major challenges to increasing Edtech funding,” said Tochukwu Ezeukwu, Regional Director, African Venture Philanthropy Alliance (AVPA) . “In Nigeria, the universal access to power is 53%, compared to Ghana’s 72%, illustrating the stark competitive disadvantage some countries face.” Another challenge is low deal sizes compared to their FinTech peers, who often attract more investments, Ezeukwu said. All panellists agreed that EdTech requires “patient capital” and investors must be willing to prioritise long-term impact over immediate returns. The Mastercard Foundation is tackling the funding problem by providing access to equity free funding for growth stage startups, primarily in Africa. Through equity free funding, 144 EdTech startups have been supported to date as part of the solution to raising venture capital. “Sustainable business models are crucial,” said Ruth Wairimu, an Investment Manager at Acumen Fund, an impact investor. “B2B models offer superior scalability compared to B2C, especially considering limited disposable income across much of Africa.” The consensus is that it’s still early days for Africa’s EdTech sector. “Foundations, family offices, and grants will likely play a vital role in bridging the funding gap,” concluded Wairimu. While EdTech holds immense potential to transform education in Africa, a significant uptick in funding is necessary to unlock its full potential.
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- July 9 2024
Correction of JAMB CAPS O’Level errors in upload 2024
Uploading your O’Level results to JAMB CAPS is an important step in the Nigerian tertiary institution admission process. However, mistakes can happen, leading to errors like incorrect grades or exam types being uploaded. This guide outlines the necessary actions to rectify such errors during JAMB CAPS O’Level correction in 2024. Identifying errors in your JAMB CAPS O’Level uploads Before initiating the correction process, you need to confirm the existence of errors. Here’s how: Access JAMB eFacility portal: Visit the JAMB eFacility portal at https://efacility.jamb.gov.ng/login and log in using your JAMB Registration Number and password. Navigate to “Check Admission Status” section: Locate the “Check Admission Status” section on the dashboard. Access JAMB CAPS: Click on “Access my CAPS” to be redirected to the JAMB CAPS portal. Review O’Level details: Carefully examine the uploaded O’Level subjects and grades displayed in your admission profile. Look for discrepancies between your actual results and what’s reflected in JAMB CAPS. Common errors include: Incorrect grades: The uploaded grades might not match your original O’Level results. Wrong exam type: The exam body might be incorrectly listed (e.g., “NECK” instead of “WAEC”). Missing subjects: Some subjects you passed might be missing from the uploaded results. Steps for JAMB CAPS OLevel correction Once you’ve identified errors, it’s time to initiate the correction process: Visit a JAMB CBT Centre: As of 2024, correcting O’Level upload errors in JAMB CAPS cannot be done through the eFacility Portal. You must visit an accredited JAMB CBT centre. Needed documents: Carry the following documents to the JAMB CBT centre: Your original O’Level result slip. A printed copy of your JAMB registration slip. Any proof (e.g., email confirmation) you may have received regarding the initial upload error (if available). Inform staff and submit documents: Clearly explain the JAMB CAPS O’Level correction you require to the JAMB CBT centre staff. Submit your original documents for verification. Pay correction fee: There might be a processing fee associated with correcting your O’Level upload. Inquire about the fee at the JAMB CBT centre and make the necessary payment. Staff assistance: The JAMB CBT centre staff will assist you in initiating the correction process electronically.They may require you to provide a written request for the correction. Final thoughts on correcting CAPS O’Level errors in upload 2024 JAMB might have a specific timeframe for requesting JAMB CAPS O’Level correction. Ensure you address the errors within the designated period. Also, while JAMB CBT centres typically handle corrections efficiently, processing times can vary. Be patient and follow up with the centre if there are delays. Ultimately, keep copies of all documents submitted for the correction process for your records.
Read More- July 9 2024
As Cholera cases mount in Nigeria, this website wants to keep you safe
53. That’s the number of people who have lost their lives to Cholera in Nigeria in the most recent outbreak which began in June. It’s the second cholera outbreak in three years, with 1,598 suspected cases. Cholerafacts, an online resource, hopes to fight the spread of the disease by providing information about prevention and symptom detection. Launched by Yahaya Hassan and Dipo Ayoola in June 2024 shortly after Cholera cases in Nigeria began to pick up, Cholerafacts aggregates useful information about the prevention and early detection of the bacterial disease on its website. “We wondered what if there was a single free forever one-stop-resource that you can always access when there’s a cholera outbreak in Nigeria and that was the primary inspiration for the idea,” Yahaya told TechCabal. The nine-page user-friendly website aggregates information about cholera, with dedicated sections describing the disease, its symptoms, how it spreads, prevention tips, and resources for treatment. The microsite also provides contact information for relevant health agencies, enabling users to promptly report concerns and escalate issues in cases of emergencies or suspected exposure. While prevention is often better than cure, Cholerafacts provides information on how to get a care kit to treat early symptoms. It also provides access to a list of pharmacies across the country where users can get a cholera vaccine in the case of a suspected exposure. Cholerafact comes at a time when government and private institutions are ramping up awareness campaigns about the spread of cholera. The website which mirrors resources like the COVID-19 tracker and Ebola Facts, which were used during the COVID-19 pandemic and the Ebola Virus outbreak, can be easily referenced as a crucial resource to help curb the spread of the bacterial disease. So far, Nigeria has recorded 1,598 suspected cases and 53 deaths as a result of the disease which is prominent in areas with poor sanitation and limited access to clean water. Cholerafacts also tracks this data and updates it regularly. The website also offers information about previous outbreaks of cholera in Nigeria, including the deadly 2021 outbreak which claimed over 2000 lives. “We hope that in the future, Cholerafacts can serve as a single source of truth for anything cholera,” Hassan concluded.
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- July 9 2024
How to upload your O’Level results to JAMB CAPS in 2024
Previously, uploading O’Level results to the JAMB Central Admissions Processing System (CAPS) could be done through the JAMB eFacility Portal, this option is no longer available in 2024. This guide focuses on the current method to successfully upload your O’Level results to JAMB CAPS for consideration during the admission process. Uploading through an accredited JAMB CBT centre As of 2024, the sole method for uploading your O’Level results to JAMB CAPS is by visiting an accredited JAMB CBT center. Here’s what you need to do: Locate a JAMB accredited centre: Visit the JAMB website or inquire about any JAMB CBT center near you. Get required documents: Have your original O’Level result slip and a printed copy of your JAMB registration slip readily available. Visit the JAMB CBT centre: Proceed to the accredited JAMB CBT center and inform the staff that you want to upload your O’Level results to JAMB CAPS. Submit documents and pay fee: Present your original O’Level result slip and JAMB registration slip to the staff. Pay the processing fee, which may range between ₦1000-₦3000. Staff assistance: The JAMB CBT center staff will upload your O’Level results electronically on your behalf. Verifying your O’Level upload status Once you’ve uploaded your O’Level results at a JAMB CBT center, you can verify their successful upload through the JAMB eFacility Portal: Access the JAMB eFacility Portal: Visit the JAMB eFacility portal at https://efacility.jamb.gov.ng/login. Login with credentials: Enter your JAMB Registration Number and password to log in. Navigate to “Check Admission Status” Section: Locate the “Check Admission Status” section on the dashboard. Click on “Access my CAPS”: Click on “Access my CAPS” to be redirected to the JAMB CAPS portal. View O’Level details: Under your admission profile, you should see a section displaying your uploaded O’Level subjects and grades. If the upload was successful, you’ll see your grades listed. If it’s still pending, you might see “A/R” (Awaiting Result) next to your subjects. Important reminders: Double-check the scanned copy of your O’Level results for clarity before uploading (applicable if the center requires a scanned copy). If you notice any errors in your results uploaded, take immediate steps to correct your uploaded O’level results on JAMB CAPS. Keep a copy of your upload confirmation slip (if provided by the center) for future reference. Final thoughts on how to upload your O’Level results to JAMB CAPS in 2024 Please note that timely submission and accurate upload of your O’Level results are crucial for securing your spot at your desired tertiary institution.
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- July 9 2024
Côte d’Ivoire doesn’t need to reinvent the wheel
This article was contributed to TechCabal by Leslie Ossete, through The Realistic Optimist. A tale of two cities Africa has seen a schism between its francophone and anglophone startup ecosystems. The latter have vastly outperformed the former, carried by Nigeria and Kenya. Francophone Africa has had a late start to the race, despite ecosystems like Tunisia becoming legislative pioneers in the field. Multiple factors explain the dichotomy, each of them linked. First, anglophone Africa implemented foundational infrastructure such as mobile money earlier than its francophone counterparts. M-Pesa, widely recognized as mobile money’s paragon, hails from Kenya. Mobile money has been the cornerstone of many African startups’ strategies, representing a convenient halfway between burdensome but prevalent cash and efficient but rare online payments. This infrastructure fomented startup creation, putting pressure on the local job market to form startup-ready talent, such as developers. This gave rise to companies like Nigeria’s Andela, tasked with pumping out that tech-literate workforce. A similar trend is picking up pace in francophone Africa through companies like GoMyCode, but the initial infrastructure delay has retarded subsequent steps. This initial lag domino-affected VC funding. In Africa, a group of countries known as the “Big Four” (Egypt, Kenya, Nigeria, and South Africa) received over 75% of the continent’s 2022 VC funding. As the astute observer will note, anglophone Africa boasts three members in that group, compared to francophone Africa’s zero. These three linked reasons explain the logical, visible reasons for the lag. More subtle differences may have contributed as well. Anglophone African countries tend to enjoy a more entrepreneurial culture compared to Francophone ones, owing to divergences between English and French economic dogma (laissez-faire vs dirigisme). With an important fraction of African VC funding coming from the United States, francophone founders also face a substantial linguistic challenge when pitching in their second or third language. This overarching anglophone business culture led to the launch, as early as 2010, of formative tech hubs such as iHub and Co-Creation Hub in Nairobi and Lagos respectively. These encouraged knowledge sharing and skill building, crucial to exposing local talent to startups’ intricacies. Trade is also easier in anglophone regions. Anglophone East Africa is a more auspicious cross-border expansion environment than francophone West Africa, for example. Cultural uniformity plays a role, with West Africa’s religious mix making it hard for an Ivorian fintech founder to onboard Muslim (and thus usury-free) users in neighbouring Mali. Trade agreements in East Africa also hold more weight than the ones in West Africa. As for Nigeria, its crown as Africa’s most populous nation gives founders ample space to scale before even thinking of foreign forays. According to QZ, 39% of African countries are francophone.Graph source: Partech Ivory Coast: A smaller, francophone Nigeria? Despite the challenges, the past couple of years have seen francophone ecosystems pick up speed and the jury is out for its most promising contenders. Ivory Coast ranks high on the list. Compared to state-led peers such as Senegal, Côte d’Ivoire’s startup ecosystem was trail-blazed by the private sector. The CI20, a collective made up of early Ivorian founders, was instrumental in materializing an otherwise free-flowing ecosystem, including the implementation of the country’s Startup Act. Côte d’Ivoire’s founders operate in an unequal albeit booming economy, clocking in Africa’s highest 2024 GDP growth forecast. Compared to some of its anglophone neighbours, Côte d’Ivoire enjoys a sturdier currency by virtue of its peg to the euro. The digitalization of this growing economy is where the Ivorian startup opportunity lies. While the country’s ecosystem has witnessed an “Anglo-style” private-sector-led development, the country’s founders still face perennial “francophone” Africa problems. This includes a lack of familiarity with the lingo, codes, and other quirks of the VC-backed startup world. As a result, many promising Ivorian companies end up as stable digital SMEs rather than the fast-growing startups they could aspire to be. This is less of a problem in anglophone Lagos, where startup culture is more widespread. While orders of magnitude smaller than Nigeria (28 vs. 219 million people), parallels can be drawn between both ecosystems. Bottom-up development, a booming economy, and many industries to be tech-disrupted breed great potential. To attain the next level, the Ivorian ecosystem could benefit from what made Nigeria tick: an inflow of returning diaspora talent, bringing with them capital and startup savviness. Investors should view Côte d’Ivoire as a gateway to the 140 million people-strong francophone West Africa region, a vast and untapped greenfield for tech innovators. No need to reinvent the wheel One might wonder which business ideas Ivorian startups should pursue. The answer is not as complicated as many make it out to be. So far, many African startup successes have been built on the back of an existing business model, something that had worked elsewhere but not on the continent. Think online payment gateways, peer-to-peer fintech, e-commerce marketplaces and ride-hailing. Where Africans can claim a pioneer position are mobile-money-related innovations. The point is the following: if a business model is working in a socio-economically similar market to X African country, there’s an honest business case to launch it locally. This is especially true for startups digitizing the informal sector, a field where African founders can look to LATAM or South East Asia for inspiration. While geographically distant, these continents share the similarity of having a large informal sector and all the challenges (and opportunities) that it brings. LATAM and Southeast Asia are a few steps ahead of Africa economically, so observing what worked there could be insightful. For example, the thesis behind Frubana, a B2B marketplace connecting small restaurant owners to local producers, might’ve originated in Colombia but is pertinent to many African markets. With the right localization tweaks, such as enabling mobile money payments, the idea has the merit of at least being tested. Sourcing startup business models from slightly more advanced markets is akin to a crystal ball, conferring the ability to predict what startups might or might not work locally. As African founders search for the next big idea,
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