Investment News: HSBC backs Egypt's KarmSolar
3 min Read January 10, 2023 at 11:45 AM UTC
![Daba finance invest in Africa](https://daba-wp-bucket.s3.amazonaws.com/wp-files/54f3e135d05fa92.png)
Multinational banking giant HSBC backs Egypt’s KarmSolar
Highlights
- Egypt-based cleantech KarmSolar has received $3 million in debt financing from HSBC to finance the development of the Farafra Solar Grid, its second grid solution after the Marsa Alam Solar Grid in Egypt.
- Founded in 2011, KarmSolar provides several sectors in Egypt with renewable energy as part of its target to enlarge the private clean energy market.
- The project aims to provide 60% solar penetration, with a three-year goal to reach 100% when it becomes fully operational by Q3 2023.
Source: Wamda
Our Takeaway
Most businesses in Africa grapple with expensive electricity tariffs, frequent power outages, and load shedding. These issues limit production and increase operating and maintenance costs, thereby hindering growth. The decreasing costs of solar systems, relative to either grid or diesel generators, have helped solar solutions—provided by companies like KarmSolar—become economically viable alternatives for commercial and industrial use. Access to reliable power not only saves costs but also expands the number and variety of business and job opportunities available in an economy.
Ghana’s Jetstream raises $13m to grow cross-border commerce
Highlights
- Ghana-based Jetstream Africa, an e-logistics platform for Africa’s exporters and importers, has raised $13 million in a combination of debt and equity financing to help it expand.
- Jetstream‘s core product, pre-financed logistics, enables businesses to rapidly book and monitor door-to-door logistics, financing, insurance, and other trade support services online.
- The startup raised a $3 million seed round in 2021 and the new funds will be used to support Jetstream’s expansion into new countries and the continued development of its technology platform.
Source: Disrupt Africa
Our Takeaway
The market for cross-border logistics services in Africa is expected to hit revenues of $32 billion by 2025, with several companies vying for market share in the ever-growing competitive industry. Jetstream, which operates across 14 countries in the region, competes with the likes of Sote, SEND, One35 Port, and MVX. That hasn’t stopped it from growing its trade finance product from the $1 million debt it secured in mid-2021 to about $9 million in total loans disbursed so far.
Airtel Africa stock rallies over new spectrum acquisition
Highlights
- Positive sentiment witnessed on shares of Airtel Africa Plc resulted in investors of the company gaining about N300 billion ($667 million) on Monday.
- The stock rally followed the announcement that its Nigerian subsidiary, Airtel Networks Limited, had acquired 100 MHz of spectrum in the 3500MHz band and 2x5MHz of 2600MHz from the Nigerian Communications Commission (NCC).
- Reports by Nairametrics showed that the telecom stock gained 5.16% to close at N1, 630 per share from N1, 550 which was the opening figure at the beginning of day trading.
Source: Nairametrics
Our Takeaway
Airtel Africa is one of the largest companies listed on the Nigerian Exchange (NGX) by market capitalization. The news of the acquisition spurred investors’ appetite for the shares, which are among the most liquid since the company went public in Lagos a few years ago. Broadly, positive sentiment around blue-chip firms lifted market activities which resulted in other stocks like Nigerian Breweries Plc gaining +1.91% and FBNH, +0.45%.
This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.
Our weekly newsletters offer major news updates and insights on the African economy and markets
Next Frontier
![](/images/home/man.jpg)
![](/images/home/avatar2.jpg)
![](/images/home/avatar1.jpg)