Off to a bad start💰
Issue #148: African tech had a not-so-great first quarter.
Hello Venturer,
The first time I heard about Emmanuel Njoku, the 19-year-old blockchain guru who built Lazerpay, was in 2022. Njoku was one year into building the crypto payment gateway for Africans and his innovation was getting a lot of praise, especially in the Twitter community. And rightly so - it was one of the few platforms simplifying the complexities of blockchain.
Fast forward to April 2023, Lazerpay announced its exit from the market. Why? Despite its tireless efforts, the startup couldn't get investors to throw in the cash. Lazerpay's exit from the market is the latest sore in Africa's dwindling tech funding. The continent’s startup ecosystem hasn’t had it this bad since 2020 when it was in the middle of a global pandemic.
But we can't draw the curtains on the tech space just yet. Amidst all these, Tunisian startup, InstaDeep, became Africa’s 2nd largest acquisition to date after Paystack following a $446 million buy by BioNTech. Maybe tech isn't losing its mojo- and investors are focusing on what they believe is the next best thing - AI. But that is a discussion for another week. This week we look at what the numbers say about African tech.
Suotunimi Orufa
Staff Writer
What’s new?
African tech had a not-so-great first quarter
Data from Disrupt Africa’s latest report showed that funding for African tech startups declined by 57% in Q1 of 2023. Deal volumes were not any less gloomy, as it recorded only 87 deals, half of the 175 from last year. The Big Deal also released its report recently, showing the same pattern — a 52% YoY decline. Read more
Weekly Economic Index: Palliative for fuel subsidy removal, Africa's gloomy forecast, and tech's slow funding
Last week, Nigeria announced its intention to utilize an $800 million loan it obtained from the World Bank as a form of palliative measure, as the nation gears up to gradually eliminate fuel subsidies. Read more.
South Africa might be the world’s most internet-addicted country
In an age where digital technology reigns supreme, it comes as no surprise that people around the world are spending more and more time online. However, a recent study conducted by Delaware-based virtual private network (VPN) platform Atlas VPN reveals that South Africans are leading the charge, spending an
average of 9.5 hours a day online – a staggering three hours more than the global average. Read more.
My pivot journal: How Temitayo Isiaka ditched a career in economics for human resources
Temitayo Isiaka is a people’s person. She loves to organize things and make people very comfortable. Her strong flair for calculations and analysis led her to study economics for her first degree. But while at it, Isiaka discovered what her true love was- Human Resources. Read her pivot journal.
Kenya’s tech ecosystem to experience rebound as the government eases ownership regulations.
In 2020, a tech policy in Kenya that sought to position it for global opportunities and gain global recognition for innovation, efficiency, and quality in public service delivery was created. But now, this rule has been reversed by President William Ruto at a regional business summit in Nairobi targeted at US investors. Why? Read more.
African platforms helping rebuild Africa’s tourism and travel industry
African entrepreneurs and innovators have leveraged technology to revive tourism on the continent, connecting travellers with unique experiences, and empowering local communities. From digital marketplaces to virtual tours, these platforms are not only helping to boost the tourism sector but also creating opportunities for sustainable economic growth and cultural exchange. Read more.
Africa’s Business Heroes
Africa's Business Heroes (ABH), an initiative of the Jack Ma Foundation and Alibaba Philanthropy, is calling for Africa's entrepreneurs to compete in its annual business challenge. The initiative seeks to identify, support, and inspire entrepreneurs who are making a positive impact in Africa while building a sustainable economy. Ten finalists will compete for a share of $1.5 million in grant money. Register Here!
Holiday Jollof
Read our special holiday issue on the events, businesses, people, and policies that impacted Africa in 2022. Click to read.
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