Investors update: May 3 2023

African companies stayed afloat while businesses cratered amid Covid-19

Highlights

• The Financial Times, and research company, Statista have released a report on Africa’s fastest-growing companies in 2023. 
• The list highlights how the top 100 African businesses from across different sectors—fintech, renewable energy, healthcare, commodities, and agriculture—kept their businesses afloat while most of the world’s businesses shut down.
• The report ranks the top 100 companies according to the highest compound annual growth (CAGR) in revenues between 2018 and 2021.

Source: Financial Times

Our Takeaway

Fintech and IT/software were highly represented in the FT list, along with a diversity of corporate sectors, with names like Nigerian-based Afex Commodities Exchange and Moniepoint and Kenya’s Wasoko making up the top three. Overall, the list reflects how the Covid-19 pandemic peak in Africa saw a surge in the adoption of digital services. With lockdowns and restrictions limiting physical interactions, many turned to digital platforms for various needs, with a notable increase in e-commerce, digital banking, and telemedicine. This trend has continued even after the crisis, as more Africans recognize the convenience and accessibility of digital solutions.

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Tanzania’s NovFeed wins $1m grant from Milken Institute & Motsepe Foundation

Highlights

• Tanzania biotech startup NovFeed has been announced as the first-prize winner of the “Milken-Motsepe prize in Agritech”, getting a $1 million prize for their success. 
• A $300,000 award for second place was presented to Karpolax, a Uganda-based company. The startup’s nanotechnology solution that helps fruits and vegetables stay fresh longer without losing nutritional value earned it the prize. 
• Meanwhile,  IRRI-AfricaRice came third for its biotech innovation to help rice farmers protect their crops from flooding, winning $150,000.

Source: TechCabal

Our Takeaway

Modern farming is evolving rapidly and the potential for biotechnology to transform agriculture in Africa is immense, making for a promising avenue for the continent to strengthen its agriculture sector and address the challenges of feeding a growing population. For instance, introducing genetic modifications in crops with biotech can enhance crop productivity, disease resistance, and nutrient content. The Milken-Motsepe prize in agritech is the first of a series of multiyear, multimillion-dollar innovation competitions and programs to advance technological progress toward the UN SDGs.

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Opportunik launches global fund targeting retail investors in Africa, diaspora

Highlights

• Opportunik, a private wealth fund giving Africans and Diasporans access to global investments, has announced the launch of its licensed fund. 
• Driven by an in-house team of fund managers located across Africa (South Africa, Nigeria, Kenya, and Zambia), the fund will work alongside Mauritius-based Accuvise Administrators, which has over $216m in Assets Under Administration (AUM).
• The fund aims to offer a diverse mix of asset classes enabling investors to create wealth with minimal currency or political risk.

Source: ABC

Our Takeaway

Henley & Partners’ Africa Wealth Report estimates that a total of $2.4 trillion total investable wealth is held on the continent, with South Africa, Egypt, Nigeria, Kenya, and Morocco accounting for more than half of Africa’s high-net-worth individuals. More so, the region’s wealth management market is estimated to grow by 60% in the next decade, driven by strong AUM growth in most major markets. This presents a good opportunity for middle-class Africans if given access to the same wealth management options made available to high-net-worth individuals.