Investors update: Tanzania’s coal exports surge to $224m amid Europe’s energy crisis

Tanzania’s coal exports hit a record $224m amid Europe’s energy crisis

Highlights

• Europe’s energy crisis caused by the invasion of Ukraine by Russia has seen Tanzania coal exports record a seven-fold jump in the year to March due to high demand, the latest central bank data show.
• Tanzania, which has 1.9 billion coal reserves of which 25% are proven, saw its exports of fossil fuel surge to $223.8 million from $31.9 million in April.
• Exports of coal edged up, induced by rising demand for alternative energy, amid supply challenges caused by the war in Ukraine, per Bank of Tanzania’s April Economic Review.

Source: Zawya

Our Takeaway

The exponential increase in Tanzania’s coal exports indicates a significant economic opportunity for not just the country but Africa at large. This increase in demand could result in a boost in Tanzania’s economy, particularly in the coal industry. Additionally, it could signal an opportunity for other African countries to expand their energy exports and potentially benefit from the European energy crisis. But, it is essential to consider the environmental impact of increased coal production and consumption, as it could hinder efforts to transition towards cleaner sources of energy.

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Network operators in Africa are still developing their models around 4G

Highlights

• Despite the recent successive 5G rollouts by mobile network operators across African countries, the recently released Nokia MEA Mobile Broadband Index finds that the Middle East is far ahead of Africa in terms of 5G adoption.
• In Africa, many operators are still developing their business models around 4G while voice traffic still relies on 2G and 3G networks in many parts of the region.
• In both regions, however, 4G networks account for 79% of overall data traffic currently, and by 2027, 4G and 5G will together account for 90% of data traffic.

Source: Nokia report

Our Takeaway

Reliable 4G and 5G networks are critical for bridging the digital divide in MEA, in addition to supporting data-intensive applications for communities and businesses. However, the region is a diverse one with many countries at different stages of development, which is reflected in the Nokia report. An important finding to note, regardless, is that data consumption with high-speed networks is increasing exponentially across the MEA market in both urban and rural areas, translating to more revenue for operators. By 2027, annual revenue per user (ARPU) is estimated to increase to $3.4.

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Egypt-based remittance fintech Balad gets funding from Acasia and others 

Highlights

• Egypt-based fintech Balad has raised a seven-figure pre-seed round led by Acasia Ventures. Other investors in the round included Launch Africa, Future Africa, V&R, Magic Fund, First Circle, Sunny Side, and several family offices.
• Founded in 2022, Balad is a remittance-driven financial service provider that offers reduced transfer fees and instant delivery of inward remittances via its prepaid cards. 
• The investment will be used to launch Balad’s remittance platform, develop its technology, hire new team members, obtain required licenses, and complete integrations with its banking partner.

Source: Wamda

Our Takeaway

Egypt is the fifth-largest country in terms of remittance inflows, and many of its underbanked population rely on these transfers as their primary income source. However, transfer fees can be as high as 11% and funds may take over a week to reach recipients. In addition, migrants and families often lack access to basic financial services like credit, savings, and insurance. Like many other startups looking to tap into the $700 billion global remittance market, Balad aims to make it simpler for people to access remittance funds with lower fees while also providing access to basic financial services.