African Tech Weekly Recap: December 19 to December 23, 2022

Welcome to our weekly recap where we share the most important news of the African Tech Ecosystem 🌍

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Africa attracts $11bn investment commitment at US summit

Highlights

• At the US-Africa Business Forum, the United States International Development Finance Corporation (DFC) announced active commitments across Africa totaling more than $11 billion. 
• That includes $369 million of new active commitments announced as part of the US-Africa Leaders Summit.
• In line with the Joe Biden Administration’s commitment to expanding and modernizing the U.S. partnership with Africa, DFC invests with the private sector in projects that support economic growth.

Source: ABC

Our Takeaway

At the US-Africa Leaders Summit, the DFC highlighted a number of active commitments on the continent, spanning energy security, high-quality and affordable healthcare, infrastructure, and agriculture. Despite all its challenges, Africa remains a key geopolitical player with an undeniably huge economic potential that can’t be ignored by the developed world and investors alike. The continent is essential to unlocking the potential of the next couple of decades. It is widely expected to shape the future, not just of its people, but of the world.

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Kenyan e-health startup MyHealth Africa raises $1m seed

Highlights

• Nairobi-based e-health startup MyHealth Africa has raised a $1 million round of seed funding to fuel its expansion across Africa and beyond. 
• Founded in 2017, MyHealth Africa is a full-service integrated healthcare platform, that connects patients with local and international health specialists and hospitals.
• The company plans to use the funds to fuel its expansion across Africa, with new market entries in the Middle East and South Asia also planned for 2023.

Source: TechCabal

Our Takeaway

Across Africa, technology and innovation are having a real impact on the health and wellness of Africans through a number of startups that have emerged over the past few years. These startups are increasingly attracting venture capital funding as well, a good sign for the continent, which continues to face significant challenges with universal healthcare access. My Health’s solution seeks to solve inefficiencies, improve upon sub-standard services, and contribute to the development of patient-centric care in emerging market healthcare systems.

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IMF clears $447m for Kenya to address debt, reforms

Highlights

• The International Monetary Fund has agreed to lend Kenya about $447 million to help shore up its finances and boost its dwindling reserves.
• That’s according to a statement from the Washington-based lender released Monday after the executive board completed a review of its loan programs.
• The money includes an augmentation of about $216 million and brings the cumulative disbursements to Kenya under existing arrangements to about $2.4 billion. 

Source: Bloomberg

Our Takeaway

Prior to the latest IMF loan, Kenya’s public debt had begun to “level off” due to fiscal consolidation progress. President William Ruto’s government, which took over in September, plans to cut expensive commercial borrowing in favor of cheaper sources like the World Bank to reduce the debt servicing pressure on revenue. In June, the government canceled the planned issuance of a Eurobond due to a surge in bond yields. Kenya’s economy is expected to expand by 5.3% this year.

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Mobility solutions provider Zeda Limited lists on JSE

Highlights

• Integrated mobility solutions provider, Zeda Limited, listed its shares on the main board of the Johannesburg Stock Exchange (JSE) on Monday.
• Zeda has long-term license agreements to operate the leading car rental brands Avis and Budget, with a presence in 11 African markets.
• The company is listed on the JSE as the only provider of tailored short-, medium- and long-term car rental and vehicle fleet leasing services from within one service provider. Its listing gives investors an opportunity to add to their portfolios a regional mobility leader.

Source: ABC

Our Takeaway

Zeda’s listing has increased the number of listed companies on the bourse to 305 with an overall market capitalization of over R21.84 trillion (US$1.2 trillion). After the JSE introduced a raft of amendments to its listing regulations to cut red tape and improve efficiency, the bourse has seen a significant increase in the number of issuers that have listed securities such as equities, Exchange Traded Funds (ETFs), and sustainability bonds. Meanwhile, Zeda operates in Botswana, Ghana, Lesotho, Mozambique, Namibia, Zambia, and South Africa, its home market.

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Egypt-based healthtech CheckMe acquires DoctorOnline

Highlights

• Egyptian healthtech platform CheckMe has acquired a majority stake in DoctorOnline, a doctor appointment booking app.
• The deal was facilitated through Exists.Me, an acquisitions and mergers (M&A) advisory firm, and brings CheckMe’s valuation to $20 million.
• Founded in 2020, CheckMe provides on-demand medical lab services. Meanwhile, DoctorOnline is a telemedicine platform that enables users to consult doctors via video conferencing or a call.

Source: Wamda

Our Takeaway

The CheckMe-DoctorOnline deal is an indication of the continued growth of healthtech in Africa, especially in telemedicine, r-pharmacy, and e-diagnostic, which have rapidly increased since the outbreak of Covid-19. With the post-pandemic ushering increasing attention to health and physical well-being, and a widespread adaption of healthtech in several sectors, Healthtech companies in the Middle East and North Africa region specifically have reached a combined value of $1.5 billion, a 22x increase since 2016.

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Kenya-based Solarise Africa bags further $3m funding 

Highlights

• Solarise Africa was awarded $3 million by EDFI ElectriFI to provide tailored financing solutions for decentralized energy solutions to selected commercial and industrial (C&I) customers across Africa.
• The funding comes less than a month after a $33.4 million debt raise by the Kenya-based startup, which also has operations across South Africa, Uganda, and Rwanda.
• The company, which provides smart financing via a selected group of partners, is already well-capitalized and has now secured successive funding to help it grow. It plans to expand its portfolio in Kenya and other selected African countries. 

Source: ABC

Our Takeaway

The significance of Solarise’s funding lies in two major points. Firstly, an increasing number of African startups are turning to debt financing after more than $700 million in debt was raised last year. And secondly, financiers, who were skeptical about funding ventures in the renewable energy space, are increasingly funding the continent’s leading solar providers. Similar companies like CrossBoundary, Sun King, Daystar Power, and Havenhill have attracted significant funding in the past year, suggesting the perception toward the renewable energy opportunity in Africa could be changing.

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World Bank approves $311m for West African solar project 

Highlights

• The World Bank approved $311 million for the new Regional Emergency Solar Power Intervention Project (RESPITE) this week. 
• RESPITE is aimed at increasing the grid-connected renewable energy capacity of the participating West African countries—Chad, Liberia, Sierra Leone, and Togo.
• The project also includes a $20 million grant to help facilitate future regional power trade and strengthen the institutional and technical capacities of the West Africa Power Pool.

Source: World Bank

Our Takeaway

West Africa has one of the lowest electrification rates and some of the highest electricity costs in Sub-Saharan Africa. Furthermore, rising oil prices have increased the liabilities of electricity utilities and countries are staring at an acute power supply crisis that threatens to upend their economic growth. The World Bank financing is expected to support reforms in power distribution and transmission across the four nations by funding the installation and operation of 106MW worth of solar photovoltaic battery and storage systems and 41MW worth of hydroelectric capacity growth.

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MSC Group completes acquisition of Bolloré Africa Logistics

Highlights

• MSC Group has confirmed that its wholly owned subsidiary SAS Shipping Agencies Services has completed the acquisition of Bolloré Africa Logistics after the transaction was approved by all applicable regulatory authorities.
• The deal strengthens MSC’s longstanding ties with Africa and reinforces its commitment to the continent’s growth, says MSC Group President Diego Aponte.
• The Group plans to operate Bolloré Africa Logistics Group as an autonomous entity with its portfolio of diversified partners, under a new brand to be unveiled in 2023.

Source: ABC

Our Takeaway

The acquisition of Bolloré Africa Logistics SAS and its affiliates, Bolloré Africa Logistics Group, by MSC—a foremost player in the continent’s shipping industry—reflects its interest in harnessing opportunities within the African supply chains and infrastructure while supporting the needs of clients of both businesses. Meanwhile, the Group’s financial strength and operational expertise should enable Bolloré Africa Logistics to meet all its commitments to governments, particularly regarding port concessions.

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Kenya’s Cellulant anticipates $30bn in payments processed this year

Highlights

• In 2021, Cellulant, a pan-African payments company, processed approximately 214 million transactions totaling $12.3 billion across 35 African markets and for over 200 million Africans.
• The Kenya-born company anticipates that figure to hit $30 billion, making it one of the continent’s foremost payment companies alongside Nigerian giants Flutterwave and Interswitch.
• Cellulant offers a unique set of capabilities to serve as the one-stop payment platform for companies. Its flagship Tingg platform helps businesses address the problems associated with collections and payouts.

Source: Prox Weekly

Our Takeaway

In Africa, digital payments continue to take root, but the uptick differs depending on the country. Up to 70% of the global total value of mobile money transactions is conducted in Africa, according to GSMA.  Digital payments in Africa is already a +$400 billion industry, with more opportunities for future growth, however. Africa has more than 500 million underbanked or unbanked, less than 50% of the continent’s adult population have made or received digital payments and more than 40 million merchants do not accept digital payments

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Fintech Galaxy acquires Egypt’s open banking platform Underlie

Highlights

• UAE-based Fintech Galaxy, which provides access to customer data from partner banks while allowing developers to build new apps and services, has acquired Underlie, an Egyptian counterpart, for an undisclosed sum. 
• Underlie was founded in 2021 by Akram Abdouby and offers API-based solutions to improve the integration of online apps from banks and fintech companies.
• Egypt is Fintech Galaxy’s sixth market after the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, and Moldova.

Source: Wamda

Our Takeaway

Across Africa, open banking has seen considerable traction in recent years with several startups enabling developers to build for the continent with ease and quickly. Commercial banks and other financial institutions also partner up with API startups to provide digital financial services. The future of financial services in the region rests on interoperability across several players and services. As the fintech startup ecosystem matures, we expect to see infrastructure-focused startups seek growth opportunities in new markets, supported by increased venture capital backing and consolidation.

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Norsad and TLG launch $400m African credit platform for SMEs

Highlights

• Impact investor Norsad Capital and TLG Capital have partnered to build a $400 million private credit platform for medium-sized companies across sub-Saharan Africa. 
• Their partnership will involve sharing, presenting, and co-investing in well-structured credit investment opportunities with strong layers of downside protection and equity upsides embedded.
• Both companies plan to further promote syndication opportunities and platforms, risk participation structures, jointly offer larger ticket sizes, and provide a balanced capital offering with a mix of senior and subordinated debt.

Source: Ventureburn

Our Takeaway

Along with other kinds of investments such as FDI, FPI, and venture capital, impact investing—financing for companies with the intention to generate social and environmental impact alongside a financial return—is a growing phenomenon in Africa, complementing domestic resources to plug Africa’s huge investment needs. Norsad has invested over $500 million into over 160 companies over its 32-year history while TLG has completed over 30 investments to date, exiting more than 20 (notably, all with positive IRRs ranging from 6% to 35%).