Investors update: March 7 2023 - Egypt becomes the first North African shareholder in AFC

Egypt becomes the first North African shareholder in AFC

Highlights

• Egypt has joined Africa Finance Corporation (AFC), the continent’s infrastructure solutions provider, as the first North African sovereign shareholder, further diversifying the corporation’s expanding equity investor base.
• As the largest North African economy, Egypt’s investment leads the way for other countries and investors from the region to join AFC’s shareholders and use its platform to boost regional trade and co-investment opportunities.
• With a membership of 39 countries now and total investments of $11.5 billion over 16 years, the Corporation continues to support economic growth and development in Africa.

Source: ABC

Our Takeaway

AFC focuses on developing and financing sustainable investments in core sectors with a strategy of adding value to exports and creating jobs through the development of industrial ecosystems. In Egypt, the firm has already identified an immediate project pipeline worth over $1 billion in critical infrastructure, in addition to $265 million of existing investments. By becoming a shareholder, Egypt not only gets to contribute to the development of critical infrastructure and projects across Africa but also stands to benefit from the economic growth and regional integration that the AFC promotes through its investments and partnerships.

---

EchoVC launches $8m pilot blockchain-focused seed fund

Highlights

• Lagos-based EchoVC, a tech-focused early-stage VC firm investing in underrepresented founders and underserved markets, has launched EchoVC Chain, an $8 million “pilot” blockchain-focused seed fund.
• The fund focuses on investing in founders and startups that span EchoVC’s specific areas of interest, particularly blockchain.
• EchoVC aims to be “the Sequoia Capital for underestimated founders and markets” and has invested in almost 40 companies across various markets worldwide, with its first in the blockchain segment in 2021.

Source: Disrupt Africa

Our Takeaway

In Africa, blockchain is being used in many innovative ways and in essential industries from tech, agriculture, mining, and remittances to inclusion, identity, and property, to name a few. However, a report by CV VC finds that African blockchain investment is still a fraction of global capital poured into the technology. Africa is the fastest-adopting crypto continent globally, yet it has only a 0.5% share of total global blockchain venture funding, which stands at $25.2 billion. This indicates a massive gap in funding and the need for funds targeting blockchain ventures on the continent.

---

Binance doubles down on Africa with more local currencies

Highlights

• Binance has added support for five more African currencies: the Liberian Dollar, Sierra Leonean Leone, Gambian Dalasi, Mauritanian Ouguiya, and Cape Verdean Escudo.
• This expansion of product offerings aims to bolster its presence on the continent and enable users in these regions to make direct cryptocurrency transactions with other users in their preferred payment method.
• Users can now trade and post advertisements in these fiat currencies or directly trade BTC, USDT, ETH, BNB, and BUSD with other users using these fiat currencies.

Source: Ventureburn

Our Takeaway
The move by Binance is the latest in its string of efforts to drive crypto and blockchain technology adoption in Africa. Recently, the company launched an education hub in Cameroon to provide resources and training for young people across francophone Africa while also holding meetups around the region. Despite the hostile reception African governments have given cryptocurrencies, ordinary citizens on the continent continue to interact with crypto in very different ways. In fact, Africa accounts for some of the most important use cases and opportunities for digital currencies, and Binance hopes to build on this.