The return of Titanic bags? 💰

#158: A comeback for African tech?

Jun 23, 2023

Hello Venturer,

Being on the internet over the last few weeks has been an emotional rollercoaster. One minute, you're feeling inspired by stories of world record breakers and scientific breakthroughs. The next minute, you're feeling heartbroken by the news of natural disasters, wars, and other tragedies. It's hard to know what to expect when I get on the internet these days.

Thankfully, African tech is giving us something to be optimistic about. After an exceptionally quiet March and April, African startups raised $645m in May, signaling a much better turn for the sector. According to “Africa: the Big Deal", this was the best May ever for African tech funding. There were at least 50 $100k+ deals and the volume was more than four times what the ecosystem recorded in April. This is a welcome relief after a few months of downturns in the sector. It's a reminder that even in the midst of difficult times, there are still reasons to be hopeful.

Could this be the comeback of the African tech funding market? Or is this just wishful thinking? This week we explore the answers to these questions and more.

Suotunimi Orufa

Writer, Ventures Africa.

What’s new?

Is the African tech funding market making a comeback?

2023 started with a lot of uncertainty for the tech industry. Many companies have struggled to find their rhythm since the economic downturn in 2022. As a result, we’ve seen a lot of layoffs, shutdowns, valuation cuts, and expansion halts in the last one year. But in May, things looked much better. Read more.

Bill Gates speaks on youth, education, innovation, and gender inclusion at the Lagos Business School

Recently, the Pan-African Youth Innovation Forum, put together by the Lagos Business School, Co-Creation Hub, and the Centre for Communication and Social Impact hosted Bill Gates, Co-Chair of the Bill and Melinda Gates Foundation, to a hybrid event themed Unleashing the Power of Youth and Innovation at the Lagos Business School. Read more.

Pulling the plug on fuel subsidies is sparking an overhaul of consumer habits

For the over 200 million people living in Nigeria, the removal of fuel subsidies in Nigeria is having significant implications for their living conditions. Fuel prices have increased astronomically by more than 160 percent, leading to higher transportation costs, and a hike in the prices of goods and services across various sectors of the economy. Read more.

My Pivot Journal: How Victoria Alli Johnson spent two years deciding if product design was her next career path

Victoria’s decision to switch careers came after she would spend long hours commuting the streets of Lagos working a low-income job. What she did not see coming was that her newly decided career in customer service would unintentionally lead to an interest in design. After two years of deciding what to do with her new interest, she found her path in tech. Read more.

RedCloud surpasses half a billion dollars in trading volume in Nigeria in 12 months

RedCloud, has today announced a major milestone. In just 12 months, it has passed a trading volume of $500m in a single territory – Nigeria. Known for its mission to enable commerce everywhere, RedCloud seeks to support emerging markets by digitally connecting FMCG brands, distributors, and merchants, providing them with the technology they need to drive economic growth. Read more.

Finding the business opportunities in Nigeria’s economic problems

Japa Syndrome in Nigeria dates back more than three decades ago when the country began to record an increase in migration of its health workers to Europe and America. But the term Japa wasn’t associated with migration until early 2020 when the country gradually started to experience partial, and eventually, full-blown migration of talents, especially young people in tech and health workers. Read more.

Watergen: Uncovering a sustainable solution to Nigeria’s water crisis

Nigeria’s water crisis is a complex narrative of contrasts. While the country boasts of vast water bodies such as the Niger River and Lake Chad, a significant portion of the population struggles to access safe drinking water. It has been reported that Nigeria has approximately 60 million of its population living without access to basic drinking water, and 29 per cent of its children (approx. 26.5 million) experiencing high or extremely high-water vulnerability. Read more.

#VivaTech: Tony Elumelu calls on African entrepreneurs to embrace technology as he discusses Africapitalism

Africa has recorded significant growth in internet penetration in the last 12 months. However, better access to the internet has yet to translate into comparable rises in the use of digital technologies by small businesses in Africa, states a report by IFC-World Bank research. Less than 7 per cent of microenterprises use smartphones and computers for business, while 71 per cent of these small businesses see no need for them. Read more.

Weekly Economic Index: Naira afloat, student loan for Nigerians, and President Ruto’s de-dollarization campaign.

Last Monday, President Bola Tinubu enacted a bill that introduces interest-free education loans for Nigerian individuals who are interested in pursuing tertiary education. The Access to Higher Education Act of 2023, also referred to as the Students Loan Act, establishes an Education Loan Fund aimed at assisting Nigerians in financing their higher education. Read more.

Share VA's Newsletter

LinkedIn Audio Event

Privatization is the process of transferring state-owned enterprises or public services to private individuals or companies. It involves selling or leasing government-owned assets, shares, or operational rights. The advantages of privatization, as highlighted by Investopedia, include improved efficiency, cost savings, and the presence of profit incentives. Critics, on the other hand, argue that certain essential services like education and utilities should not be governed by market forces and profit motives. Can privatization improve Nigeria’s economy?

Join us on Tuesday, the 27th of June, at Ventures Africa’s LinkedIn audio event to discuss. Speakers include Kelvin Emmanuel: CEO of Dairy Hills Limited, Alikor Victor: Economist Policy Analyst, Nextier, Gbemisola Joel-Osoba: Economist Global Policy, One Campaign.

https://www.linkedin.com/events/canprivatizationimprovenigeria-7076547928508502016/