Investors update: Africell rolls out mobile money product to millions of Angolans

Africell rolls out mobile money product to millions of Angolans

Highlights

• Africell Holding SAL is launching new financial services this weekend in Angola, a country that’s lagged behind as the rest of sub-Saharan Africa dominated the mobile payments market.
• The firm invested more than $150 million to build out its mobile phone network in Angola and has attracted 7 million customers since it started operating in the country in 2022.
• The Afrimoney product is now rolling out after being available via Africell in the Democratic Republic of Congo, Gambia, and Sierra Leonne.

Source: Bloomberg

Our Takeaway

Digital payments have rapidly gained traction in Africa over the years, particularly in countries where traditional banking is limited. In 2021, the continent accounted for 70% of the world’s $1 trillion mobile money value after mobile money transactions rose 39% to $701.4 billion from $495 billion in 2020. Platforms such as Safaricom-owned M-Pesa and MTN Mobile Money have transformed the way people access financial services but this rapid growth has been uneven, with some countries like Kenya and Ghana far ahead of their regional counterparts like Angola, Tanzania, or even Nigeria. That means lots of value still abound on the continent for interested operators to capture.

---

Altech Group raises $18m to expand access to energy in DRC

Highlights

• DRC-based Altech Group has raised $18 million in debt financing and grants to continue strengthening its market position and expand access to energy across the country.
• Founded in 2013, Altech has created a sales and distribution network with a national footprint, counting 4,500 employees and sales agents across 22 out of 26 provinces. It has reportedly sold over 350,000 solar energy products and impacted the lives of more than 1.7 million Congolese. 
• The growth capital will enable Altech to open more than 30 new sales outlets in rural areas and distribute solar products, to extend clean energy access to people.

Source: Disrupt Africa

Our Takeaway

Altech represents an innovative solution that addresses a critical global challenge, which is most prominent in Africa, where access to reliable and clean electricity remains far behind most other parts of the world. With an electrification rate of 46%, 590 million people are still without access to electricity. At the same time, the region has tremendous solar and wind potential and vast hydropower resources. Addressing this requires a reallocation of capital to support solutions that tap the vast natural resource to power mostly rural economies. 

---

ABAN launches 2 new sector-focused angel investor networks

Highlights

• The Africa Business Angel Network (ABAN) has launched two new thematic angel networks aimed at supporting startups that are building solutions in the smart cities and digital trade sectors on the continent. 
• Established in 2015, ABAN is the largest pan-African organization of angel investors, representing more than 65 business angel groups with a combined 1,400 across 35 African countries as well as the diaspora.
• The Smart Cities and Digital Trade angel networks will focus on curtailing issues faced by urban cities in Africa by investing in startups offering opportunities to resolve these issues. 

Source: Disrupt Africa

Our Takeaway

Africa is experiencing rapid urbanization, and smart city solutions can help address the challenges that come with it. The use of digital technologies can also help facilitate cross-border trade and increase economic growth. In addition, Africa’s large youth population and increasing internet penetration provide a vast market for digital products and services. Startups and investors can tap into these opportunities by developing innovative solutions and investing in digital infrastructure. However, they must also navigate challenges such as limited funding, inadequate digital infrastructure, and regulatory frameworks.