Investors update: January 17 2023

Telecel gets regulatory nod to acquire Vodafone Ghana

Highlights

• Ghana has granted Vodafone International Holdings approval to sell its 70% stake in Vodafone Ghana to Telecel Group, currently, the second-largest mobile phone network in Zimbabwe which is owned by French business tycoon Hugues Mulliez.
• The National Communications Authority (NCA) approved the sale after Telecel submitted a revised financial and technical proposal in December.
• In a statement, the Authority revealed that the revised proposal from the Buyer meets the regulatory threshold; and hence has granted conditional approval for the transfer of shares to the buyer.

Source: The Africa Report

Our Takeaway

Across Africa, we’re seeing advancements in the telecom industry driven by massive investments by local and foreign operators. As part of its acquisition of Vodafone’s operations and assets, for instance, Telecel intends to spend $500 million over a three-year period to refinance the network infrastructure across Ghana as well as committed to driving some changes in the area of financial technology (fintech) as part of the takeover. Per GSMA, total telecom operator revenues in sub-Saharan Africa will reach $57.4 billion by 2025, from $46.6 billion in 2021.

---

Proparco, Investec set up $80m climate fund in South Africa

Highlights

• Proparco and Investec Bank are collaborating to implement the Transforming Financial Systems for Climate (TFSC) program in South Africa, with a package comprising a long-term senior credit facility and technical assistance program.
• This transaction aims to support Investec in its efforts to expand climate-related financing in South Africa, thanks to an $80 million fund. This operation is also Investec’s first cooperation with a development finance institution such as Proparco.
• South Africa has set an ambitious goal of reducing carbon emissions by 42% by 2025 and diversifying its electricity production away from coal by 2050.

Source: ABC

Our Takeaway

Climate change affects Africa more than other continents but at the same time, nowhere promises bigger opportunities than in Africa. The continent offers a massive investment opportunity given the need to reinvent all sectors, and we’re already seeing new value chains and business models created – from sustainable agribusiness to renewable energy, driven by a young and rapidly-growing population increasingly tackling big challenges and creating new markets. These present an ever-increasing pipeline of climate-related investment opportunities.

---

Forbes opens $500k program for early-stage North African startups

Highlights

• Forbes and the Aviram Foundation have launched a $500,000 competition to identify new businesses committed to driving significant, profound positive change through technological innovation.
• The event looks for original products or services that will result in positive social, environmental, or human impact and is open to startups based in Algeria, Egypt, and Morocco, as well as Middle East countries.
• Businesses are eligible to apply if they are at the pre-seed or seed phase and must not have exceeded $5 million in total investment.

Source: Disrupt Africa

Our Takeaway

As Africa catches up with the developed world in terms of technological progress, accelerators, incubators, and pitch competitions help to bridge this gap by providing crucial access to capital and mentorship to startups. Forbes’ joint program is even more crucial for the North African ecosystem, which, apart from Egypt, does not see a lot of early-stage startup funding flows.