General News
Jetstream, a Ghanaian e-logistics platform Raises $13M Debt, Equity Funding
The market for cross-border logistics services is said to hit revenues of $32 billion by 2025, with several companies vying for market share in the ever-growing competitive industry. Ghanaian e-logistics startup Jetstream Africa is on the list, and today, it’s announcing that it has secured $13 million in equity and debt pre-Series A financing.
Fintech lender and private equity firm Cauris and French development institution Proparco, through its bridge fund, provided the debt financing while the equity investors include Octerra, Wuri Ventures, Seed9, The MBA Fund and ASCVC, a venture fund founded by executives of the supply chain visibility platform Project44. Existing investors Alitheia IDF and Golden Palm participated as well.
The round is coming about 18 months after the Tema-based cross-border logistics platform announced a $3 million seed round (including $1 million in debt). Jetstream says this new investment will allow it to expand into new countries — it’s currently in 29 (12 in Africa) countries — and continue to develop its technology platform, which vertically aggregates fragmented logistics and financing vendors in the world of African trade.
At the time of its seed round, Jetstream Africa had two business lines: one providing logistics services to cargo owners dealing with import and export and another distributing financing to freight forwarders. However, Jetstream has bundled both products over the past couple of months to serve only cargo owners. According to the startup’s chief executive Miishe Addy, Jetstream achieved product-market fit correspondingly.
“Running those two lines side by side, we observed that the import or export business controls the supply chain,” she said on the pivot. “Although the cargo owners and freight forwarders have a lot of information asymmetry, the importer and exporter can put pressure on the freight forwarder to digitize the supply chain. We simplified our business into just the import-export product line by working directly with them with a combination of trade financing and logistics.”
Jetstream’s new business model has shifted to that of a freight forwarder. The company now involves itself in the end-to-end movement of shippers’ cargo (both import and export), charges a fee and, most importantly, supplies finance to those who need it. Typically, the traditional method for most cargo owners when they want to take out a loan to run their businesses is to go to banks to secure a letter of credit. Whether they get it or not depends on the bank of their counterparty. To elucidate: Say a Ghanaian importer is making a transaction with a Chinese exporter — the bank in Ghana collects cedi and interacts with the exporter’s bank in China, which, upon vouching for the cargo owner, dispenses the yuan.
It’s a time-consuming process that can take several weeks. And for cargo owners on both sides of the transaction who want access to faster credit, the letter of credit system isn’t efficient, leaving them to find other sources of capital that require some form of collateral for their loans. Jetstream essentially provides them with working capital backed by actual shipment. According to Addy, the four-year-old startup takes a security interest in the cargo. Rather than handling the letter of credit itself, Jetstream underwrites loans — to be paid back within 15-90 days — through its banking partners and disburses the loan proceeds to every vendor in the supply chain.
“If you’re importing 10 containers, in addition to paying for the actual good, importers have to pay the shipping line, customs broker on both sides, truck drivers on both sides, you have to pay a warehouse operator in some cases, or container terminal. There’s a minimum of nine different vendors you have to pay,” noted Addy, who co-founded Jetstream with COO Solomon Torgbor in 2018.
“And when someone applies for a Jetstream loan, they’re not just saying give me $50,000 but enough money to fund this entire shipment and pay these nine vendors. Also, we don’t give the money to the cargo owners but to the nine vendors directly.”
Jetstream has grown its trade finance product from the $1 million debt it secured in mid-2021 to about $9 million in total loans disbursed so far. Its projection is to increase that amount fivefold by the end of this year, Addy said. The chief executive also mentioned that Jetstream has scaled from disbursing one loan per month to up to 50 loans per month after switching its business model, thus becoming EBITDA positive. Also, revenue has grown by 48% and active customers by 102% within the past year, according to a statement shared by the e-logistics startup, which handles shipments consisting of 47% air freight, 44% ocean freight and 9% ground transport.
The 44-man team, which competes with the likes of Sote, SEND, One35 Port and MVX among others, has been able to strike several essential partnerships for its next growth phase, including multinational banks like Societe Generale and startups such as Lami and MFS Africa. Tokunboh Ishmael, co-founder and principal partner at Alitheia IDF, one of Jetstream’s investors, says this round of funding, which supports the startup’s expansion to new markets, will see it capitalize on trade policies like AfCFTA, “enabling richer inter-continental trade which is needed to support inclusive economic development and unleash the continent’s full potential.”
Socio-Economic Rights and Accountability Project (SERAP) has urged Godswill Akpabio, Senate president, and Tajudeen Abbas, speaker of the House of Representatives, “to immediately withdraw the oppressive bill which contains repressive provisions to jail any Nigerian of voting age for six months and/or impose a fine of N100,000 on them if they fail to vote in national and state elections.”
SERAP urged Akpabio and Abbas to instead “amend the Nigerian Constitution 1999 [as amended] and the Electoral Act 2022 to remove constitutional immunity for state governors and their deputies who commit electoral offences, including vote-buying, to facilitate the investigation and prosecution of perpetrators.”
SERAP also urged Akpabio and Abbas “to amend the Nigerian Constitution and the Electoral Act to explicitly prohibit the appointment of members of any political party as resident electoral commissioners (RECs) of the Independent National Electoral Commission (INEC).”
There is currently in the National Assembly a ‘Bill for an Act to Amend the Electoral Act 2022 to Make It Mandatory for All Nigerians of Majority Age to Vote in All National and State Elections and for Related Matters.’ The bill seeks to make voting compulsory and prescribes a six-month jail term or a fine of N100,000 or both for non-compliance.
In the letter signed by Kolawole Oluwadare, deputy director, SERAP at the weekend, the organisation said: “Jailing eligible Nigerians for deciding not to vote would be entirely inconsistent and incompatible with the letter and spirit of the Nigerian Constitution and the country’s international human rights obligations.”
SERAP said, “Rather than proposing bills that would severely punish Nigerians who may decide not to exercise their right to vote, the National Assembly ought to propose bills to remove constitutional immunity for governors and their deputies who commit electoral offences and undermine the integrity of the electoral process.”
According to SERAP, “The most effective way to solve the perennial voter apathy is to create a safe and conducive environment, combat the impunity of high-ranking politicians who commit electoral offences, and generally improve the electoral process to encourage the citizens to come out to vote, and not to send them to jail.”
The letter, read in part: “Should the National Assembly fails to drop the bill prescribing a six-month jail term for eligible Nigerians who decide not to vote in national and state elections, and should any such bill be assented to by President Bola Tinubu, SERAP would consider appropriate legal action to challenge the legality of any such law and ensure they are never implemented.”
“The idea of compulsory voting and jailing citizens for not voting is impracticable, unnecessary and unlawful. The right to vote is part of citizens’ right to participate in their own government and the choice of whether to exercise it is personal.”
“The right to vote includes the right not to vote. If the right to participation is a right of the citizen, she/he must be free to decide whether or not to exercise it.”
“Because the notion of a democracy exists by virtue of the consent of the citizens, voters must get to choose how they exercise consent, not be forced to the polls like ‘cattle to the slaughter.’”
“The National Assembly ought to propose bills to reduce the influence of money in politics, and encourage and not compel the exercise of the right to participation.”
“The proposed bill is a blatant violation of the right to political participation, which is guaranteed under section 14(1)(c) of the Nigerian Constitution, article 25 of the International Covenant on Civil and Political Rights and article 13 of the African Charter on Human and Peoples’ Rights to which Nigeria is a state party.”
“SERAP also urges you to amend the Nigerian Constitution and the Electoral Act to include explicit mandatory provisions on internet voter registration, and the use of modern technology, including in casting and counting, voter registration and systems for reporting results.”
“Amending the Nigerian Constitution and the Electoral Act to explicitly include the right of eligible Nigerians to vote and to vote securely would enhance the effective enjoyment of their right political participation and representative democracy.”
“It would rebuild public confidence in the ability of the National Assembly to effectively perform its constitutional responsibilities.”
“Any amendment of the Nigerian Constitution and the Electoral Act must include bills to address and punish governors and their deputies and their agents who commit electoral offences including voter suppression, voter intimidation and the destruction of polling units or theft of election materials.”
“It is important for the National Assembly to introduce and pass bills that would effectively rein politicians who continue to abuse the electoral rules to distort and undermine the right to participation with almost absolute impunity.”
“Removing constitutional immunity for governors and their deputies who commit electoral offences would address the brazen impunity for electoral and human rights crimes which frequently characterise the country’s elections.”
“The major problem facing the country’s democracy is the lack of respect for Nigerians’ right to participation and the concomitant lack of trust in election results. If citizens do not believe in the election process, then the entire system of democratic government becomes a questionable enterprise.”
“The crisis confronting Nigerian elections and lack of public trust and confidence in the electoral process can be addressed if the right of Nigerians to vote and to vote securely is explicitly recognized in the constitution as justiciable right.”
“Nigerians do not currently enjoy explicit right to vote and to vote securely. Although the Nigerian Constitution 1999 [as amended] provides in Section 14(1)(c) that, “the participation by the people in their government shall be ensured in accordance with the provisions of this Constitution”, this is not recognized as legally enforceable human right.”
“Nigerian election laws ought to be such that would give effect to the electorate’s will and uphold the popular mandate through clean, fair, and honest elections. The right to vote in a democracy is important because so many other matters depend upon its exercise.”
Dr. Bosun Tijani, minister of Communication, Innovation, and Digital Economy, has annunced plans to elevate Enugu Tech Festival (ETF), to a national event.
Enugu Tech Festival is scheduled for May this year,
The minister during a working visit to Enugu State, disclosed plans to personally attend the festival and ensure its expansion to attract tech professionals from across the country.
The Enugu Tech Festival would help to strengthen the ongoing collaboration between the state and the federal government in advancing technological innovation, digital infrastructure, and entrepreneurship in the southeast region.
Commending the leadership of Governor Peter Mbah, Tijani praised his vision for fostering innovation and technological development in Enugu.
He lauded the governor’s achievements in critical sectors such as infrastructure, education, and industry, highlighting how the advancements lay the foundation for a vibrant digital economy that will empower the state’s youth.
The minister outlined a series of groundbreaking initiatives aimed at further transforming Enugu’s technological landscape.
One of the most significant announcements was the launch of the Project 774 Connectivity Initiative, a project designed to bring internet access to all 17 local government secretariats across the state.
Powered by Galaxy Backbone and NIGCOMSAT, the initiative will ensure seamless connectivity for government offices and the public, facilitating efficient governance and service delivery.
The collaboration between Galaxy Backbone and Enugu State will lead to the establishment of a Digital Innovation Complex.
The complex will serve as a hub for technological growth, digital innovation, training, and entrepreneurial support.
It will also connect over 200 state-owned institutions, including schools, healthcare centers, and government offices, to reliable internet services, further enhancing the state’s digital infrastructure.
Tijani announced the federal government’s plan to extend internet access to underserved areas in the state through the Universal Service Provision Fund (USPF).
“This effort will include the installation of a new base station and the laying of 15 kilometers of fiber optic cable to provide high-speed internet.
“As part of this initiative, computer laboratories will be set up in one secondary school and one tertiary institution in Enugu,” he said.
He also announced plans to establish an Artificial Intelligence (AI) Regional Centre at the University of Nigeria, Nsukka.
“This centre will become a focal point for AI research and development in the South East, offering state-of-the-art facilities to foster innovation in artificial intelligence”, he added.
“As part of this initiative, we plan to train 100 cybersecurity professionals in Enugu, boosting the state’s cybersecurity capabilities as part of a nationwide effort.
“The Digital Literacy for All (DL4ALL) initiative, will train 1.155 million Enugu residents in essential digital skills by 2027.
“This program will prioritise underserved groups, including artisans, market women, civil servants, and students, ensuring that everyone has the opportunity to engage with the digital economy,” he said.
The minister also expressed satisfaction with the success of the 3MTT Programme in Enugu, which has already received over 14,000 applications, adding that the program aims to empower the youth by equipping them with the skills necessary to thrive in the digital economy, to train over 150,000 fellows in the state.
Other key projects unveiled included the establishment of a Tier III Data Centre, a Co-working Space for tech entrepreneurs and SMEs, and an Incubation Hub to support innovation and provide mentorship and funding to tech startups.
Nigeria Customs Service (NCS) is set to introduce an electronic declaration system to streamline and enhance compliance for travelers carrying cash into or out of Nigeria.
Speaking in an interview with the News Agency of Nigeria (NAN) in Abuja, Abdullahi Maiwada, NCS spokesperson, emphasized that the initiative aligns with efforts to strengthen Nigeria’s anti-money laundering framework and reinforce financial regulations.
“The Nigeria Customs Service (NCS) has announced the deployment of an Electronic-Currency (E-Currency) declaration form as part of its anti-money laundering measures for travelers carrying cash into and out of Nigeria,” NAN reported. The system will require travelers carrying amounts exceeding the legal threshold to declare them before arrival or departure.
Maiwada further explained the process, stating, “We have developed a system where, even before leaving your point of origin, you can scan a QR code, access the form, fill it out, and we will be able to see it from here.”
He noted that the initiative, set for rollout soon, will enhance monitoring and facilitate information sharing with relevant authorities.
Under the Anti-Money Laundering (Prevention and Prohibition) Act 2022 and the NCS Act 2023, travelers carrying over $10,000 (about N15.4 million) or its equivalent in negotiable instruments must declare the funds to Customs authorities.
To boost awareness, the NCS is working with airline operators to inform travelers through onboard announcements and plans to reinstate signage at airports and border points in English and French.
The move comes as part of broader efforts to tighten financial controls following a recent case at the Murtala Muhammed International Airport (MMIA), where Customs officials seized $578,000 from a passenger attempting to evade currency declaration regulations.
SERAP Asks National Assembly to Drop Bill to Jail Nigerians who Fail to Vote
Nigeria Gets Fresh $500m World Bank Loan for Economic Stimulus Programme
Uninsured Depositors of Heritage Bank to Receive Liquidation Dividends In April – NDIC
SystemSpecs’s Subsidiary Deelaa Becomes Whatadeal
MTN, Lynk Global Make Africa’s First Satellite-to-Mobile Call
Telecom3 days agoIHS Nigeria Hosts Telecom Industry Stakeholders to Discuss Protection of Critical National Infrastructure in Lagos State
E-Financial3 days agoTitan Trust Bank Selects Oracle FSS for Core and Digital Banking Technology
General News3 days agoNCS to Launch Electronic System for Cash Declarations at Airports
News3 days agoSanwo-Olu Hails Jumia for Giant Strides in Growing Nigeria’s E-Commerce Sector
Telecom3 days agoMTN Champs Continental Relays: Over 1,000 Athletes Gear Up for Lagos Showcase
E-Financial3 days agoIMF Appoints Elumelu, Nigerian Businessman to Advisory Council
General News3 days agoAquaterra Energy Secures Multi-million-dollar well Intervention Contract with Intrepid Energy in Nigeria
Telecom24 hours agoSmart Treasure Investment Team’s Initiatives Eradicate Poverty, Says Aminu