GTBank loses commercial bank status after Bank of Uganda downgrade
The Bank of Uganda (BoU), Uganda’s apex bank, has downgraded Guaranty Trust Bank (GTBank) from a Tier I commercial bank to a Tier II credit institution. The bank, alongside two others, had applied to be downgraded following anticipated failure to meet the new capital buffer requirements. The other banks affected are Kenya’s ABC Capital Bank and Opportunity Bank. The downgrade means the three banks can only accept customer deposits and hold savings accounts. However, they will not be able to open current accounts for customers or trade in foreign currency. “The change of the status of the three commercial banks to credit institutions follows decisions by the respective boards of directors, to adopt a strategic shift and reposition these institutions to serve their core customer base,” BoU announced in a statement on Wednesday. In 2023, Uganda’s finance ministry passed regulations requiring commercial banks operating in the country to have at least $38.6 million as a capital buffer, up from $6.4 million. The three lenders, fearing they could not meet the June 30, 2024 deadline, applied to be downgraded. “These three institutions have been granted a transition period of three (3) months, starting from April 1, 2024, to June 30, 2024, during which they will make adequate arrangements to phase out products and processes that require a Tier I License,” BoU said. The central bank added that GTBank, ABC Capital Bank and Opportunity Bank meet the capital requirements for a Tier II license. Under the new regulations, the minimum capital requirement for a Tier II license is $6.4 million from $275,802. Other financial institutions affected by the new directives include microfinance deposit-taking institutions, which will now have to raise $2.5 million, and foreign exchange bureaus. Overall, about seven banks have yet to meet the new capital requirements ahead of the deadline.
Read MoreAccess Holdings’ Hydrogen posts first profit in two years
Hydrogen, the fintech arm of Access Corporation, holding company of Nigeria’s biggest bank by assets, declared profits of ₦161 million at the end of 2023. This is the first time Hydrogen will be posting profits since its launch in 2022, according to Access Corporation’s full-year financial statements. The two-year-old payments company closed December 2023 with an operating income of ₦2.08 billion. This “reflects the culmination of our strategic investments and diligent efforts in building a sustainable and resilient business model,” a company spokesperson from Hydrogen told TechCabal via email. Launched in 2022, the company fully commenced operations in 2023. Hydrogen has big ambitions: it wants to build Africa’s most powerful payment business network. It competes with other fintech players such as GTCO’s Squad, Flutterwave, Moniepoint, Stanbic IBTC’s Zest, and Paystack. While it acknowledges the saturated payments market, Hydrogen believes that its approach is different, relying on “a combination of strategic partnerships, technological prowess, and a deep understanding of the market dynamics”. Hydrogen offers products and services that include InstantPay, Payment Gateway, POS, Card, and Switch services. The fintech hopes to serve a clientele that cuts across the private and public sectors. The company claims to have processed approximately ₦15 trillion in transactions across its different channels in 2023. It also launched eight payments products in the same year.
Read MoreCAF president Patrice Motsepe to join Canal+’s bid for MultiChoice
Patrice Motsepe, president of the Confederation of African Football and South Africa’s richest black man, is in talks to join Canal+’s bid for MultiChoice, according to reporting by Bloomberg. The report further states that the discussions are still at an early stage and that there is no guarantee that an agreement will be reached. Motsepe, worth $2.4 billion according to Forbes, is the founder and chairman of Ubuntu-Botho Investments and African Rainbow Capital (ARC). Some of the companies’ investments include mobile network operator Rain and neobank TymeBank. Motsepe also has mining interests through Africa Rainbow Minerals (ARM). Earlier this month, Canal+ made an offer of R125 per share for the pan-African broadcaster, a 20% increase from the initial offer of R105 per share submitted in early February. The offer valued MultiChoice at about $2.9 billion. Since 2020, the French company has increased its stake in MultiChoice from 20.1% to 35.01% when the first offer was made in February 2023. Since Canal+’s flirtations, experts have pointed out the regulatory complexities that the deal to acquire MultiChoice might incur. Motsepe’s involvement in the deal may be able to address some of these complexities, which include the fact that foreign companies are not allowed to have more than 20% voting rights in South African broadcasting companies. “With its roots in South Africa, the coming onboard by [Motsepe] would ensure Multichoice remains in South Africa and meets the threshold of local ownership required by authorities,” said Mpumelelo Ndiweni, CEO of Colmin Group, an African markets advisory and investment company.
Read MoreKenya Airways cuts losses, records first operating profit in years
Kenya Airways (KQ) has cut its net loss for the year ended December 31, 2023. The national carrier recorded the first operating profit in nearly seven years on the back of higher revenues after passenger traffic grew 35% year-on-year. KQ, listed on the Nairobi Securities Exchange (NSE), reported a net loss of $171.9 million, down 47%—even though its revenues improved by 53% to $1.35 billion. The loss-making airline flew 5 million passengers in 2023, about 36% of Ethiopian Airlines’ (ET) passenger traffic in the 2022/23 financial year. ET is the carrier’s main competitor in the region. “In the near term, the focus is on completing the capital restructuring plan whose main objectives are to reduce the Group’s financial leverage, fund growth, and increase liquidity to ensure the company can operate at optimal levels,” Allan Kilavuka, KQ Group CEO told investors on Tuesday during the release of 2023 financial results in Nairobi. KQ, which has been in the red since 2012, promised investors that they are looking to return to profitability for the first time in more than a decade this year. Accumulated losses over the years have seen Kenya’s flagship carrier dip into negative equity, making it technically insolvent with the government pumping billions in bailout. Last year, the company tapped US advisory firm Seabury Consulting to help it restructure the business and develop a revival plan to wean it off state bailouts that have cost Kenyan taxpayers billions. The carrier is currently in the process of hiring another consultant to help find an equity investor amid a new push to revive the business. “Our focus is on completing the capital restructuring plan to reduce the Group’s financial leverage and increase liquidity to ensure the company can operate at optimal levels. The aim is to place Kenya Airways on a stronger footing and provide a stable base for long-term growth,” Group CFO Hellen Mathuka said during the release of the results.
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2024 NYSC updates and answers to major questions
The National Youth Services Corps (NYSC) scheme is one of the most prominent programs for Nigerian graduates of tertiary institutions. For every NYSC stream mobilisation, there are usually similar questions bugging the minds of potential corps members. As such, we have taken time to curate such major questions and answers that address concerns that may arise for NYSC batches in 2024 and the future: 1. What are the age requirements for 2024 NYSC registration Answer: You must be between 18 and 35 years old at the time of registration. 2. What if I missed the registration deadline for NYSC? Answer: You’ll likely have to wait for the next registration period announced by NYSC. 3. Can I choose the specific location of my 2024 NYSC service? Answer: You can indicate your preference, but the final deployment decision rests with NYSC based on national needs. 4. What happens if I have a health condition that might affect my NYSC service? Answer: Disclose any health conditions during registration and provide necessary medical documentation. NYSC might assign you to a service role that accommodates your condition. 5. What are the consequences of not registering for NYSC when eligible? Answer: You might face restrictions from applying for certain jobs or further education in Nigeria. 6. Is there financial assistance available for 2024 NYSC members? Answer: Yes, NYSC provides corps members with a monthly allowance. 7. What are my clothing options during the 2024 NYSC camp period? Answer: The dress code typically involves comfortable white tops and knickers and the NYSC uniform. 8. Can I use my phone and access the internet during NYSC camp? Answer: Yes, you’ll likely have access to your phone and internet, but there might be regulations regarding usage during specific times. 9. What happens after the NYSC camp orientation? You’ll be posted to your designated place of primary assignment (PPA) to commence your national service. 10. What are the different types of NYSC Place of Primary Assignment (PPA)? Answer: PPAs can be schools, hospitals, government institutions, or private organisations approved by NYSC. 11. Can I request a change in my PPA if I’m facing challenges? Answer: You can submit a request to NYSC officials, but approval is not guaranteed. 12. What are some safety tips to follow during the NYSC service year? Answer: Be aware of your surroundings, maintain good personal security practices, and inform trusted individuals of your movements. 13. What are some ways to make the most of my NYSC service year? Be proactive, participate actively in your assigned duties, and network with fellow corps members and professionals. 14. What are the benefits of completing the NYSC program? Answer: NYSC provides valuable work experience, leadership skills development, and the opportunity to contribute to national development. 15. Is there a certificate awarded upon completion of NYSC service? Answer: Yes, you’ll receive a Discharge Certificate upon successful completion of the program. 16. What are some career options to consider after NYSC? Answer: The skills and experience gained during NYSC can be applied to various fields, depending on your initial qualifications and the service you performed. 17. Can I travel within or outside Nigeria during my 2024 NYSC service year? Answer: Permission from NYSC officials is required for any interstate or international travel during your service year. 18. What happens if I get sick or require medical attention during 2024 NYSC service? Answer: You’ll have access to healthcare facilities approved by NYSC. 19. What are some resources available to support NYSC members? Answer: The NYSC website, social media channels, and designated officials can provide guidance and support. 20. How can I stay connected with fellow NYSC members after the service year? Answer: Utilise online alumni groups and social media, or maintain personal connections established during your service. 21. Will there be a mobilisation for NYSC Stream B 2024? Answer: Yes, NYSC will likely hold a mobilisation for Stream B later in the year. Keep an eye on the NYSC website and social media for announcements. 22. When can I expect the registration for NYSC Stream B 2024 to open? Answer: There’s no official date yet, but based on past trends, registration for Stream B might occur sometime in July or August 2024. 23. What documents do I need to upload during online registration for NYSC? Answer: You’ll typically need scanned copies of your final year ID card, statement of results, passport photograph, medical certificate, and any additional documents specific to your field (e.g., for medical students). 24. How much does it cost to register for NYSC 2024? Answer: The registration fee is usually around ₦2,786.24, payable through the Remita platform integrated within the NYSC portal. 25. Can I use a proxy to register for NYSC online? Answer: No, registering by proxy is strictly prohibited by NYSC. You must register yourself using your details. 26. What happens if I make a mistake during NYSC 2024 online registration? Answer: There might be limited options to edit information after submission. Contact NYSC officials if you discover a critical error. 27. What are some medical conditions that might affect NYSC service placement? Severe chronic illnesses, disabilities requiring special accommodations, or mental health conditions that could impede service might be considered during deployment. 28. Is it mandatory to participate in all NYSC camp activities? Answer: Yes, active participation in camp activities like lectures, drills, and community service projects is generally expected from corps members. 29. What are some acceptable reasons for missing NYSC camp registration? Answer: Valid reasons might include severe illness with documented proof of national emergencies preventing travel. Approval from NYSC is necessary. 30. What are the consequences of absconding from NYSC camp? Answer: Absconding from camp can lead to serious repercussions, including extension of service and potential legal actions. 31. Can I use social media freely during NYSC camp? Answer: While social media usage might be allowed, there might be restrictions on specific platforms, content posted, or excessive usage during designated times. 32. What are some things to pack for NYSC 2024 camp
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How to easily do your 2024 NYSC Biometrics online yourself
As a prospective NYSC corps member (PCM) in 2024 and beyond, completing your biometrics is a vital step in the NYSC registration process. Here, we’ll show you through the process clearly and concisely. Important Note: The option to capture fingerprints directly through your web browser is no longer supported. Here’s what you’ll need to carry out the NYSC Biometrics: A computer with internet access. A Digital Persona 4500 fingerprint scanner as you can see below: Step 1: Download and install the Biometric Client Visit the NYSC Biometric Client download page (https://nysc.org.ng/biometricclient/launch.htm). Carefully follow the on-page instructions to install the Biometric Client software. Remember: No license or additional software is required for registration and fingerprint capture. Step 2: Capture your fingerprints Once the Biometric Client is installed, launch the program. The software will guide you through the fingerprint-capturing process. Make sure to follow the on-screen instructions carefully. Step 3: Complete your NYSC online registration and biometrics Pro Tip: Ensure you have a valid passport photograph that meets the NYSC specifications before proceeding. Proceed with the online registration process on the NYSC portal. During registration, you’ll be prompted to complete the NYSC biometrics section. The Biometric Client software will seamlessly integrate with the registration portal to capture your fingerprints electronically. Troubleshooting: If you encounter an “Update Required” message, simply uninstall the current Biometric Client software and reinstall the latest version from the NYSC website. Final thoughts on how to easily do your 2024 NYSC Biometrics online yourself By following these steps, you’ll successfully complete your NYSC biometrics and be one step closer to embarking on your service year. Remember, completing your biometrics is mandatory for all PCMs. If you have any further questions, you can read our online directory of well-curated NYSC-related questions and answers and refer to the NYSC portal for additional information.
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2024 NYSC registration procedures for all batches and streams
The National Youth Service Corps (NYSC) program is a mandatory one-year service for all Nigerian graduates of tertiary institutions within the eligible age bracket and in the right physiological and psychological conditions. This guide helps all prospective corps members with the online NYSC registration 2024 processes, ensuring a smooth transition into this vital chapter. Before NYSC Registration 2024 Before diving into the NYSC registration 2024 process, ensure you have the following in order: Functional Email and Phone Number: NYSC will use these for communication, so ensure they are active and accessible. Valid means of Identification: This is mandatory for all applicants. Your NIN, International passport or voter’s card should suffice. Academic Credentials: Originals and photocopies of your final year ID card, statement of results (B.Sc. or HND) endorsed by an authorized officer, and any additional certificates required for your field of study (applicable to medical students, etc.). First things to note before you start the registration process for NYSC 2024 Here are some things to note before you get into the processes for the 2024 NYSC mobilisation: 1. Check the NYSC mobilization timetable The NYSC publishes their official timetable on their website. This timetable outlines the entire mobilization process for each service year batch. Here’s the link to access the latest timetable: http://www.nysc.gov.ng/mobtable.html 2. Review NYSC registration requirements Familiarize yourself with the specific requirements for NYSC registration 2024. The NYSC website has a dedicated section outlining all the necessary documents and procedures: http://www.nysc.gov.ng/mobreq.html Pre-registration checks for NYSC Let’s walk through the NYSC pre-registration checks for 2024. 1. Senate list verification (locally trained graduates) This step is crucial. Ensure your details are uploaded correctly on the NYSC portal. Only graduates whose names appear on the Senate/Academic Board Approved Result lists submitted by their institutions will be able to register. Verify your information on the NYSC verification portal using your matriculation number. 2. Get a functional email address If you don’t already have one, create a functional email address for registration purposes. During NYSC Registration 2024 Here are the steps for registering for the NYSC 2024: 1. Create an Account Head to the NYSC registration portal https://portal.nysc.org.ng/ and create an account using your functional email address. 2. Activate Your Account Check your email for the activation link and click on it to activate your newly created account. 3. Fill Out Your Details & Capture Biometrics Proceed to fill out your details on the portal. This includes capturing your biometrics. Important Note: Biometric capturing cannot be done by proxy. You may need to visit a public registration centre if you do not have the apparatus to carry out the biometrics. Also the following will be required of you: You’ll need to provide basic details like your name, date of birth, email address, phone number, state of origin, local government area (LGA), and institution attended. You’ll then enter your Matriculation Number to allow the portal to verify your degree with your institution during NYSC registration 2024. Ensure your name appears on the Senate/Academic Board Approved Result list submitted by your school. Upload a clear, passport-sized photograph with a clean, off-white background. 4. NYSC State Selection You’ll be required to choose your preferred state of service for the NYSC program. You may want to consider factors like proximity to family, job opportunities, and climate when making your selection. Be aware that your request might be subject to approval based on national needs. 5. Payment Make the registration fee payment using the Remita platform integrated into the portal. The cost of NYSC registration is typically around ₦2,786.24. Other transactional charges may apply during payment. Follow the instructions carefully to ensure successful payment during NYSC registration 2024. Final steps Preview your registration form to ensure all details are accurate and: Agree to the registration terms and conditions. Upload your scanned signature or use a digital signature scanner to sign electronically. Click submit and keep your login details safe for future use. Next steps after registration 1. Online Verification: After completing all steps and submitting your application for online verification during NYSC registration 2024, NYSC will review your details and documents 2. Call-up Letter: Once your NYSC registration 2024 is verified, you’ll be able to download your NYSC Call-up Letter from the portal at the appropriate time when you are mobilized. This letter will contain your state of deployment, camp location reporting date, and other important details. More important details on NYSC registration 2024 Additional information you may want to know includes the following: Concessional Posting: During NYSC registration 2024, you can apply for concessional posting based on marital or health grounds. The NYSC website provides detailed information on the required documents for each type of concessional posting. Part-Time Graduates: Register on the NYSC portal during the designated registration period. This will allow you to access and print your Exclusion Letter through your dashboard. After NYSC Registration The NYSC portal offers various self-service options for registered prospective corps members. These include: Printing call-up, exclusion, and relocation letters (after approval). Applying for leave approvals. Procedures for Corrections (if required) The NYSC portal allows corrections for various details after registration. Here’s a summary of the procedures for some common corrections: Name Spelling Mistakes/Rearrangement: Login to your dashboard and follow the on-screen instructions for applying for a name correction. Important Note: NYSC does not approve name additions or removals. If this is necessary, contact your institution to officially request the change from NYSC. Other Correction Options The NYSC portal also allows you to request corrections for: Date of Birth Course of Study Class of Degree Qualification (approval strictly by your Institution’s Student Affairs Officer) Procedures for these corrections typically involve logging into your dashboard and following the specific instructions for each request. Registration of foreign graduates NYSC 2024 The registration process for foreign-trained Nigerian graduates differs slightly. You’ll need to upload additional documents like travel documents and confirmation of results from the examination body or institution. Refer to the NYSC website for specific requirements for foreign graduates. Final thoughts Ensure
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👨🏿🚀TechCabal Daily – To Affinity and beyond
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We’re here once again to remind you to move TC Daily into your Main or Primary folders. If this email came in the Promotions folder or—heavens forbid—Spam, please drag and drop the email into your Main/Primary folder if you’re on desktop, or click the menu button at the top corner of your screen if you’re on mobile. In today’s edition Nigerian Islamic policing authority bans TikToker from social media BasiGo gets $3 million in funding SA fines TransUnion Canva acquires Affinity to compete with Adobe The World Wide Web3 Opportunities Social Media Nigerian Islamic policing authority bans TikToker from social media From perfectly-timed lip-syncs to outrageous dance challenges, content creators push the boundaries of creativity (and cringe) on TikTok, a social media app known for short-form videos, especially popular with youths and their relentless pursuit of viral fame. But for Murja Ibrahim Kunya, a popular TikToker known for her controversial content on social media, the quest for online glory took an unexpected turn. Kunya was arrested on February 12, 2024, by the Kano State Hisbah Board, an Islamic policing authority, and was accused of sharing inappropriate and un-Islamic content on the platform. She was arraigned in a Sharia court, a court that follows Islamic law to settle civil—and sometimes criminal—matters, and was held in custody. The court also mandated that she undergo a mental evaluation at a government hospital due to suspected drug influence. Jail break: Yesterday, a Kano State High Court presided over by Justice Nasiru Saminu, granted Kunya bail at ₦500,000 ($358) with two sureties. However, the court banned her from using social media until the next hearing scheduled for May 16, 2024. Violating this ban will lead to her re-arrest. Kano is one of many Muslim-majority states in northern Nigeria where Islamic law is practised alongside secular laws. Similar incidents globally: In July 2020, Egyptian authorities reportedly apprehended Manar Samy, a popular content creator on TikTok and Instagram with over 250,000 followers. This action followed a hisbah complaint alleging that she had been sharing sexually suggestive videos on TikTok. She was subsequently sentenced to three years in prison and fined 300,000 EGP ($6,273). In March of last year, Iranian teenage girls were arrested after posting a TikTok video that showed them singing and dancing to a popular song. According to authorities, the video broke Iranian laws that forbid women from dancing in public and require them to wear a hijab. The big picture: In Nigeria, Hisbah operates in some northern states, aiming to uphold Islamic morality and resolve disputes based on Sharia law. However, its authority, particularly regarding arrests, remains unclear legally. This lack of definition exists despite the agency reportedly having official backing, as shown by their uniforms, vehicles, and government-funded offices. Some states directly support Hisbah, while others claim they are volunteers. It is unknown, at this time, what offence Kunya will be charged with. Experience fast and reliable personal banking with Moniepoint Give it a shot like she did . Click here to experience fast and reliable personal banking with Moniepoint. Funding BasiGo secures $3 million in funding from CFAO Group Launched in 2021, BasiGo, a Kenyan electric bus startup, began with a pilot programme in Nairobi and has since been making waves in East Africa. In November 2022, BasiGo secured $6.6 million in equity funding, led by Africa-focused VC firm, Novastar. Its momentum continued in late 2023 with a $1.5 million grant from USAID in November 2023, which bolstered its expansion into Rwanda, and a $5 million debt financing deal in December 2023, with British International Investment to manufacture 100 electric buses specifically designed for the Kenyan market. And now: BasiGo has secured another $3 million from CFAO Group, owners of Africa’s largest automotive distribution network. The investment is split between CFAO Kenya and Mobility54, the corporate venture capital arm of CFAO. This funding will scale up BasiGo’s assembly and delivery of electric buses in Kenya and Rwanda. A greener future: BasiGo currently operates 19 electric buses in Nairobi with plans to reach 1,000 electric buses across Kenya within the next three years. Their innovative “Pay-As-You-Drive” financing model reduces upfront costs for operators, making electric buses more accessible. The company has already received over 500 reservations from bus operators in Nairobi and an additional 100 reservations from bus operators in Kigali, Rwanda. Another competitor, Roam, a Swedish-Kenyan electric vehicle firm which designs, develops, and deploys electric motorcycles and buses also secured a $24 million debt and equity financing in February 2024, to scale production. Regulation South Africa’s regulator fines TransUnion Data breaches in Africa in recent times have been on a surge. Angola’s apex bank narrowly escaped an attempted hack on January 6, 2024. Lockbit, a cyberterrorist group, in November last year attacked Fawry, a leading provider of e-payments and digital finance solutions in Egypt. The ransomware group encrypted files and also allegedly exfiltrated data from the e-payment provider. When these breaches happen, regulators often express concerns for users’ data and take various actions, which include financial penalties, on breached companies. A case in point is South Africa‘s Information regulator enforcement notice on TransUnion, a South African division of a US-based consumer credit bureau, which suffered a ransomware hack in 2022. An enforcement notice: Shortly after TransUnion suffered a breach that affected about 5 million of its users, the Information Regulator said TransUnion had not met the Protection of Personal Information Act requirements. The regulator has now slapped the credit bureau with an enforcement notice stating six areas where the company had defaulted, while also giving recommendations it must implement. The Information Regulator has set a deadline of May 26, 2024, for TransUnion to submit proof that all corrective actions have been implemented. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when
Read MoreTanzania will sell US dollars to commercial banks to address foreign currency shortages
The Bank of Tanzania will begin selling US dollars to commercial banks to tackle shortages that have plagued the country since 2022, according to a statement by the bank. “The initiative aims to ensure adequate foreign currency liquidity in the market. In addition, it intends to ensure customers’ demands for foreign currency are met through licensed financial institutions at the prevailing market prices,” the statement read. Traditionally, the central bank buys dollars, but with this announcement, it has changed tactics to sell dollars and looks forward to boosting market liquidity. The bank hopes to push individuals and businesses hoarding dollars to release and eliminate a parallel market (black market), which has worsened the dollar crisis in the East African country. In 2023, the Bank of Tanzania reported a drop in foreign exchange reserves, decreasing from $5.5 billion in May 2022 to $4.9 billion in May 2023. However, the bank maintained that the situation was not dire. The bank noted that this decline was attributed to various global factors such as the COVID-19 pandemic, the Russia-Ukraine conflict, increased US interest rates, and climate change. These global challenges have disrupted supply chains, leading to higher commodity prices worldwide. As a result, more US dollars are needed to import the same volume of goods as previously. In February 2024, the Bank of Tanzania launched a new series of treasury bond auctions to manage domestic debt and enhance money supply amidst foreign currency shortages. The bank reintroduced treasury bonds with maturities of 10, 15, 20, and 25 years by the close of the 2023/2024 fiscal year. The auction started with a 20-year bond on February 21, offering a 15.49% interest rate. Later, a 25-year bond at 15.95% interest was reissued on March 6. Tanzania is among several African nations struggling with foreign currency shortages alongside Kenya, Egypt, Zimbabwe, Nigeria, Ghana, and Zambia. Given the dollar’s predominant role in global transactions, these countries heavily depend on it to settle foreign debts and pay for essential goods and services.
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IWD2024: Driving digital gender inclusion in Africa
…As African female-led startups raised >>> $200m between 2019 and 2023In the dynamic and rapidly evolving African tech ecosystem, a wave of trailblazing female founders is making remarkable strides, breaking barriers, and leaving an indelible mark. Despite numerous challenges, African female founders are defying the odds and securing substantial funding to fuel their innovative ventures. According to a recent report by TechCabal Insights, female-led startups in Africa raised over $200 million in funding between 2019 and 2023, a significant achievement that underscores the growing recognition and support for women-led businesses. According to Disrupt Africa, 40% of venture capitalists (VC) investing in African startups between January 2022 and April 2023 had at least one female founder, partner, general partner, or managing partner. Among the Africa-based VCs active, this number goes up slightly to 47.8%. While the funding figure represents only 1.54% of the total funding raised by startups during the same period, it highlights the immense potential and untapped opportunities for female entrepreneurs on the continent. The fintech sector emerged as the most funded area for female-led startups, accounting for 27% of the total funding received. This trend reflects the growing demand for digital financial services and the innovative solutions these startups provide to address the continent’s unique challenges. Geographically, East Africa has emerged as a hub for female-led startups, with Kenya leading the pack, attracting over $92 million in funding between 2019 and 2023. Nigeria, Tanzania, and Egypt also stand out as countries where female founders have secured significant investments, collectively accounting for nearly 80% of the total funding raised by women-led startups during the same period. Notable startups led by female founders have made remarkable strides, raising substantial funds to scale their operations. Anu Adasolum’s B2B e-commerce platform, Sabi, secured $59 million, while Lesley Marincola’s software startup in Kenya, Angaza, raised $29.5 million. Other notable female-led ventures include Aisha Pandor’s home services platform SweepSouth ($20 million), Miishe Addy’s logistics startup Jetstream ($16 million), and Hilda Moraa’s fintech company Pezesha ($12.6 million). Despite these remarkable achievements, the report highlights the persisting funding gap faced by female founders, particularly in certain regions like Central Africa, which received only 0.7% of the total funding during the period under review. As Maya Horgan Famodu, Founder and Managing Director of Ingressive Capital, aptly stated, “The most important work that investors and stakeholders can do is to stop focusing on women as a group that needs to be helped, aided, or in some way considered incompetent… If we just focused on performance metrics and removed all other distractions, it would be a lot more of an egalitarian and equitable investing, entrepreneurial, and hiring ecosystem.”The African tech ecosystem stands at a pivotal juncture where embracing diversity and fostering an inclusive environment for female founders is not only a moral imperative but also a strategic business decision. By championing and investing in these trailblazers, the continent can unlock its full potential, drive innovation, and create a more equitable and prosperous future for all. As we continue celebrating African women, TechCabal Insights invites you to a live event on Wednesday, March 27, where we discuss ways to drive digital gender inclusion in Africa. You can preregister for the event by visiting this link. See you soon!
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