E-Financial
Nigeria Leads as Africa’s Tech Start-ups Attract $2bn Investment
In 2019, 243 African tech start-ups raised a total of $2.02 billion in equity through 250 rounds, representing a 74% growth year-on-year that saw Nigeria attracting the highest.
This is according to Partech Africa, which published its annual report on venture capital (VC) funding for African start-ups.
The report shows 2019 was another year of breaking records and achieving new milestones for the dynamic and fast-growing tech investment ecosystem in Africa.
The report, which is the fourth the team has produced, is based on the same methodology as the previous years – it covers equity deals in the tech and digital spaces, as well as funding rounds higher than $200 000. It covers both disclosed and undisclosed deals.
The Partech Africa report tracked 250 rounds raised by 234 start-ups compared to 164 rounds by 146 start-ups the year before, representing 52% growth year-on-year in deal count.
“We noticed a massive densification of early stage rounds with 206 transactions (57% year-on-year) in seed and series A investments, which confirms investors’ confidence in taking early bets in Africa,” says Cyril Collon, general partner at Partech.
“Africa’s tech ecosystem has moved into the mainstream, transforming economies considerably, and while there are certain ups and downs to be expected in the future, this new reality is also redefining the scope of private equity on the continent, with venture capital on the way to becoming the number one asset class in Africa.”
The report says 70 investors made two or more transactions in 2019, compared with 20 investors in 2017.
It adds the top five most active investors have each done about seven deals.
It states Nigeria attracted a record high of $747 million in tech VC investment (37% of all funding), but only takes fourth place, behind Egypt, in deal count.
Meanwhile, Egypt broke into the top three both in terms of deal count (147% year-on-year) and deal volume (215% year-on-year).
Partech notes the regional landscape has now been redrawn, with 85% of the total funding ($1.7 billion) going to the top four countries – Nigeria, Kenya, Egypt and SA.
According to the report, South Africa has slowed down compared to Kenya and Nigeria in terms of total funding, with $205 million (18% year-on-year) but remains the undisputed number one in deal count with 66 deals (78% year-on-year) thanks to its maturing early stage ecosystem growing faster (28% of all seed and series A transactions).
In SA, 11 start-ups raised 11 rounds equal to or higher than $5 million.
It points out there were 18 countries with at least one equity tech deal above $200 000 in 2019, compared to 19 countries in 2018.
With total funding of $294 million (53%) raised over 47 deals (24% year-on-year), the rest of the continent (excluding the top four countries) is absorbing 15% of total investment across the continent.
Regarding French-speaking Africa, Senegal confirms again its position as the leading hub, with $16 million raised in six deals, the firm says.
Driven by fintech, financial inclusion remains the main investment sector on the continent, attracting 54.5% of the total funding, it says.
However, the online and mobile consumer services sector has witnessed a steep increase to 29.3% of total funding (versus 19.6% in 2018) while B2B and tech adoption represents only 16.1% of total deals (versus 30.4% in 2018).
“Fintech is clearly exploding on the continent, with more and more digital players enabling start-ups to serve the segment,” says Tidjane Deme, general partner at Partech.
“This is one of the reasons that VC investors now have a much larger pool to play with than the traditional private equity investors did before. We’re seeing the latter come in into smaller tickets and into the tech space, trying to find interesting opportunities.”
Sofri, Powered by Links Microfinance Bank plans a massive rollout of Point of Sale, PoS terminals for merchants and agency banking in the third quarter of this year.
This is coming against the backdrop of the banks revamp of its digital platforms to support better customer experience.
Paul Adebayo, managing director, Sofri, said the bank is technology and purpose-driven, with focus on financial inclusion and sustainability. As well with the determination of making banking simpler, inclusive, and impactful.
He said that the revamped mobile app features, faster onboarding, cleaner interface, real-time alerts, enhanced security and seamless loan applications.
“Our corporate internet banking Launched for SMEs and institutional clients features, secure payments, transfers, account management and enhances business banking experience.
“Laying the groundwork for greater reliability, product innovation and operational efficiency is our new core banking infrastructure. This change enables us to scale faster and serve customers better.
“Our Terminal Management System (TMS) improves the performance, uptime, and remote monitoring of our POS terminals. This ensures merchants and field agents enjoy better stability, quicker settlements, and stronger support,” he added.
On sustainability impact, Adebayo, added that Sofri is embedding ESG principles into its lending and operational models — from offering green financing options, to supporting waste-to-wealth entrepreneurs, and making inclusive finance part of Nigeria’s circular economy.
Sofri is a trademark of Links Microfinance Limited (Links Mfb). Links Mfb is licensed and regulated by Central Bank of Nigeria (CBN) and deposits insured by the Nigeria Deposit Insurance Corporation (NDIC). Links Mfb is a member of DLM Capital Group, owners of DLM Asset Management as regulated by the Securities and Exchange Commission (SEC).
Current market research has confirmed that buyside investors are increasingly focused on high-growth sectors such as small businesses and consumer lending— sectors that fuel both the demand and supply sides of the economy.
However, capital allocation to these areas requires robust risk mitigation frameworks to preserve principal and ensure returns that are not just economically viable but outpace inflation.
Against the backdrop that DLM Capital Group has developed an innovative solution – the Sovereign Bond Backed Composite Notes (SBCNs) to meet this critical economy needs.
According to Sonnie Babatunde Ayere, the Group CEO of DLM Capital Group, “We believe that the consistent issuance of SBCNs by qualified entities will play a key role in de-risking corporate bond portfolios.
“By blending sovereign-backed security with enhanced yield exposure, portfolio managers gain a rare opportunity to simultaneously increase portfolio safety and performance”.
The first of its kind fixed income product combines the security of direct sovereign bond-backed principal protection, such as FGN Bonds, with the enhanced yield potential of corporate and consumer lending cash flows. This hybrid structure, the first of its kind in the local market, merges public-sector credit safety with private-sector income generation.
The instrument is designed as such that the private sector credit tranche will be secured by the FGN-bonds, which will be the senior tranche.
The N30 billion Sovereign Bond Backed Composite Notes issued by DLM Funding SPV Plc is being packaged as a AAA-rated note. With a held-to-maturity yield of 49.9 percent, the notes are designed to be attractive to institutional investors seeking a balance between capital preservation and superior returns.
Sonnie Babatunde Ayere, noted about the SBCN, “For asset managers, it enhances portfolio quality, improves credit profiles, supports diversification, and delivers competitive returns.
In a media parley describing the instrument, Ayere highlighted the role of the instrument in driving credit expansion to the underserved private sector. He highlighted how the note could help drive institutional capital into sectors that were previously considered too risky.
“By channeling domestic capital into these critical but underserved sectors without exposing investors to excessive risk, it becomes possible to mobilize funding for parts of the economy that have long been neglected.” He added.
E-Financial
Fidelity MD,Onyeali-Ikpe Champions Lifelong Learning and Sisterhood for Women’s Career Growth
Dr. Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer of Fidelity Bank Plc, has encouraged women professionals to embrace continuous learning, courage, and collaboration as key habits for achieving long-term career success and breaking through professional barriers.
Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, OON, (Middle) flanked by participants of a Women’s Roundtable themed, “Mentorship with Dr. Nneka Onyeali-Ikpe” hosted by the bank over the weekend at the Fidelity SME Hub, Gbagada, Lagos recently.
She gave the charge during a Women’s Roundtable hosted by the bank over the weekend at the Fidelity SME Hub in Gbagada, Lagos. Themed “Mentorship with Dr. Nneka Onyeali-Ikpe”, the event drew female professionals from various sectors and was held under the Recognition and Networking arm of the bank’s HerFidelity Proposition—a flagship initiative designed to empower women entrepreneurs and professionals across Nigeria.
Explaining the vision behind HerFidelity, Dr. Onyeali-Ikpe noted that the initiative was born out of a strong need to provide women with holistic support beyond access to finance.
“In my engagements with women across different industries, I’ve seen first-hand that while talent and ambition abound, many still lack access to capital, skills development, health support, and networks,” she said.
“HerFidelity was created to bridge that gap by focusing on four key pillars: access to capital, capacity building, wellness for work-life balance, and entrepreneurship support. It’s one of the initiatives I’m most proud of, because when women thrive, communities prosper and economies flourish.”
The interactive mentorship session, held in a Q&A format, offered participants an opportunity to learn directly from the trailblazing CEO, who shared personal experiences and career insights.
Advising young women aspiring to leadership, she said: “Believe in yourself, be ready to work hard, and never shy away from taking smart risks. Seek out mentors, invest in meaningful relationships, and above all, collaborate—because no one truly succeeds alone.”
The event also featured fun competitions and giveaways, with attendees winning exciting gifts courtesy of Fidelity Bank.
Dr. Onyeali-Ikpe’s session left participants inspired, reinforcing Fidelity Bank’s position as a champion for gender empowerment and a leading supporter of women’s advancement in business and leadership.
MTN Says New N6.98 USSD Charge Won’t Affect Airtime Recharge
Sofri Rejigs Digital Platforms for Better Customer Experience
DLM Group Unveils Innovative Sovereign Bond Backed Composite Notes
Study Reveals 7% of Industrial Organizations Tackle Vulnerabilities Only When Necessary
NITDA, NCFRMI Forge Strategic Alliance for Inclusive Digital Transformation of Displaced Nigerians
General News2 days agoNASRDA, Galaxy Space Firm Sign MoU on Satellite Connectivity
Telecom2 days agoOver 1m Nigerians Reached through MTN Staff’s Digital and Community Outreach
Telecom2 days agoMafab Gets 0724 Number Series, Launches Mcom 5G Brand
News2 days agoDBN Awards N13m in Grants to Tech Startups
Telecom2 days agoNCC to Name, Shame Telecom Infrastructure Vandals
News2 days agoFCCPC Shuts France, Belgium, and Italy Visa Centres in Abuja Over Alleged Consumer Rights Violations
Telecom2 days agoWSIS Review: Nigerian ICT Leaders Urged to Shape Global Digital Future
E-Financial2 days agoBank Customers Petition CBN over Illegal Deductions, Demand Action