Investors update: Africa Mobile Networks secures $20m to extend connectivity.

Africa Mobile Networks secures $20m to extend connectivity

Highlights

• Africa Mobile Networks has reached financial close on its $20 million senior secured loan facility, provided by BlueOrchard Sustainable Assets Fund (BOSAF) and the OP Finnfund Global Impact Fund I.
• The news follows a successful equity investment of $36 million announced in 2021 from a consortium of mostly DFI investors. 
• The new financing package is expected to help deliver long-term benefits and fund a rollout of mobile communications towers in rural and ultra-rural Africa.

Source: ABC

Our Takeaway

Sub-Saharan Africa is home to 1.3 billion people, one-seventh of the global population, 62% of which is classified as rural. It is not only the fastest-growing region in the world but also has the world’s largest population percentage that does not have mobile coverage. An estimated 300 million+ people in the region live in villages without usable mobile network service. AMN is going after this glaring market opportunity while aiming to be the leading rural telecom provider in Africa, with over 10,000 base stations targeted across 20 countries.

---

Nigerian neobank Payday raises $3m in seed round

Highlights

• Payday, a neobank issuing global accounts to Africans, has raised $3 million to fuel its “future of work” initiative through borderless payment alternatives in major currencies. 
• The oversubscribed seed investment was led by Moniepoint Inc. (formerly TeamApt Inc), the U.S. entity that houses Moniepoint Microfinance Bank and TeamApt Nigeria with the participation of other investors.
• Currently, African remote workers and freelancers, particularly in Nigeria and Rwanda, can send and receive money in USD, GBP, and EUR, as well as 20 other currencies.

Source: TechCrunch

Our Takeaway

The changing workforce dynamics in Africa—particularly the surge in the number of remote workers—offer a huge opportunity for fintech startups like Payday. Already, an estimated 38% of African developers work for at least one company based outside of the continent, and the global demand for software engineers is expected to grow by 22% between 2020 and 2030. At the same time, Africa is one of the most difficult and expensive regions to send money to. Digital platforms that are able to capitalize on this opportunity—offering a better experience and lower rates to Africans looking to receive foreign currencies—stand to win big.

---

Yellow to power its Africa expansion with Series B round

Highlights

• Yellow, a company that provides affordable and reliable energy and internet connectivity in Africa, has announced the successful first close of its Series B equity round.
• Yellow claims to have served over 360,000 customers in Malawi, Rwanda, Uganda, Zambia, and Madagascar, achieving revenue growth of over 250% compound annual growth rate.
• The capital raised through a partnership with Energy Entrepreneurs Growth Fund (EEGF) will allow Yellow to continue its expansion and provide accessible and affordable clean energy and internet connectivity products to hard-to-reach customers.

Source: Ventureburn

Our Takeaway

One of the major causes of slow digitization in Africa is the lack of affordable internet and electricity. As of December 2020, only 29% of Africans had access to the internet (per A4AI report), which often comes at a high price and further broadens the existing digital divide between Africa and developed regions. More so, the bulk of Africa’s internet-excluded populations resides in remote areas. Meeting this demand presents an opportunity for companies to tap into a large, underserved market while simultaneously helping to drive economic development and improve living standards.