Investors update: June 20 2023 - African climate startups have raised $2.8bn since 2019

African climate startups have raised $2.8bn since 2019

Highlights

• A total of $2.8 billion in funding have been invested in climate-related start-ups in Africa since 2019, which represents 21% of all the funding raised by startups on the continent over the period (excluding exits).
• In addition, at least 230 deals over $1 million have been signed in the space over the same period, just over 20% of all the deals signed on the continent.
• And in 2023 so far (Jan-May), the percentage is significantly higher (33%), the second-highest half-year after H2 2020. 

Source: The Big Deal

Our Takeaway

The benefits of increasing climate-focused funds targeting Africa are profound. Per a UN report, Africa will need between $50 and $100 billion annually by 2050 to adapt to the effects of climate change. It’s a positive thing thus that across the continent, lenders are racing ahead to fill the climate funding gap; a recent survey showed that banks are becoming more aware of the need to address risks posed by climate change. Several climate-focused African venture funds have also launched recently, boasting capital of between $40 million to $200 million to deploy. 

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Airtel rolls out commercial 5G network in Nigeria

Highlights

• Airtel Nigeria has launched its 5G network in four states including Lagos, Ogun, Abuja, and Rivers, joining the race towards 5G deployment in the country.
• The company, a subsidiary of India-based Bharti Airtel, currently holds a market share of 27.01% of the nation’s subscribers, trailing behind MTN and Globacom.
• In January, Airtel acquired a 5G spectrum and additional spectrum for its 4G network for $316.7 million from the Nigeria Communication Commission (NCC), the telecom regulator.

Source: Nairametrics

Our Takeaway

Across Africa, the rollout of the 5G network is accelerating – driven by massive investments by telecom operators and greater clarity around spectrum licensing and issuance. Although affordability of 5G devices remains a major roadblock to adoption. For Airtel, the additional spectrum it purchased recently will support its investments in network expansion for mobile data and fixed wireless home broadband capability, including 5G rollout while also providing significant capacity to accommodate its continued growth in data services in the country. 

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Ecobank and Dashen Bank launch remittance app for Ethiopians

Highlights

• Ecobank has partnered with Dashen Bank to enable Ethiopians living in the diaspora to send money instantly to any Dashen Bank account, other local bank accounts, mobile money wallet, and cash pick-up using Ecobank’s Rapidtransfer International app (RTI).
• The cross-border remittance solution app, which is available in the rest of Ecobank’s 33 countries, enables the African diaspora residing in Europe to remit funds back to Ecobank countries in Africa.
• Users of RTI will reportedly be able to send money back home at an average fee of 1.5% of the funds being remitted.

Source: ABC

Our Takeaway

In 2017, it was estimated that the Ethiopian diaspora comprised a significant population of at least two million individuals, primarily residing in Europe and North America. According to Knomad, the global knowledge partnership on migration and development, remittance inflows into Ethiopia amounted to $436 million in 2021 and an estimated $327 million in 2022 – a figure that the partnership between Ecobank and Dashen Bank seeks to tap into by rolling out the Rapidtransfer International App.