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The standout in this issue of Africa Notes is clearly Kobo360 [NG] with their $20m Series A funding round led by Goldman Sachs + $10m in working capital, an epic funding win for an innovative company, and a further indicator of the continued growth in Nigerian startup funding.

Is MEST about to launch a VC fund? Long-standing “Pan-African entrepreneurial training program, seed fund, tech incubator and hub” MEST [GH] is growing their leadership team and increasing seed investments, with a new MD (Ashwin Ravichandran) and a total of $1.1mm in 11 new investments. Over the last few years MEST has grown their physical presence from their home base in Ghana into Nigeria, Kenya, and South Africa, and regarding a possible fund, MEST’s MD said “We have all the pieces in place right now, I think Jorn’s just figuring out the last steps before announcing it.”

Chinese-backed startup investment continues to grow in Africa: Transsion Future Hub, which is backed by Transsion [CN] (makers of Africa’s popular Tecno mobile devices) announced they are teaming up with Wapi Capital [KE] to invest in early-stage African fintech startups (ticket size up to $100k).

Industry and Ecosystem News

• MEST [GH] hires new MD Ashwin Ravichandran and invests $100k each in 11 startups from 2019 cohort link link2
  

• Transission Future Hub [KE] “the first China-Africa incubation platform” created by Transsion [CN] announces they are working with Wapi Capital [KE] to invest in African fintech startups link
  

• Flat6Labs Tunis [TN] and the IFC hold investor academy program to train a network of future Tunisian angel investors link
  

• Seedstars [CH] opens their second Seedspace hub in Lagos, Nigeria link
  

Deals, Startups, and More

• Cargo logistics marketplace Kobo360 [NG] raises $20m in Series A funding led by Goldman Sachs [US] and $10m in working capital from Nigerian banks link link2
  

• Low-cost security hardware startup Jonga [ZA] raises seed funding (terms undisclosed) from Savant Venture Fund [ZA] link
  

• Real estate co-funding startup Vistafront [NG] closes round of funding from real estate firm Landwey Investment [NG] for 25% stake (terms undisclosed) link
  

• Medication delivery subscription startup Chefaa [EG] closes seed funding round (terms undisclosed) from Flat6Labs [EG] and 500 Startups [US] link
  

• Low-cost Android smartphone startup BeepTool [NG] raises funding (terms undisclosed) from entrepreneur Ndubuisi Ekekwe [NG] link
  

• Micropayments app uKheshe [ZA] raises $500k seed funding from FiTech Ventures [ZA] and Ocean on 76 [ZA] link
  

• Alphacode [ZA] gives $130k in grant funding and $130k in support services to 8 startups through its AlphaCode Incubate program link
  

Welcome back dear readers: It’s been a little while since my last issue of Africa Notes! Since then, Africa has seen new world-class datacenters go online and more in progress, subsea Internet cables under construction, accelerators launched, and even more acquisitions and funding. And because as momentum increases it gets harder to track and understand the market, I’m keeping Africa Notes (notes.africa) as a simple, convenient newsletter to help you stay on top of it all.

As always, Africa Notes covers the last ~2 weeks of African tech startup news highlights, focusing on major ecosystem shifts, funding events, startup M&A, and other relevant items.

Looking at a few upcoming investment-related events in Africa, I see the Africa Early Stage Investor Summit (one of my favorite investor-focused events) is coming up again in Cape Town this November, and this week is the India Africa Entrepreneurship & Investment Summit in Mauritius.

Keeping an eye on the big picture, the Disrupt Africa Tech Startups Funding Report shows continued growth in African startup investment, with a year-over-year African startup fundraising increase of 71.5% (!) in 2018 for a total of $334m raised. (This reflects particularly strong YoY growth when you remember that 2017’s Africa investment numbers were already boosted by Andela’s relatively large $40mm Series C round.)

Chinese investment in African tech startups is rising, notably with the launch of ShakaVC / Shaka Ventures, a Chinese-backed VC firm based in Lagos and a pan-African investment thesis, who have made 6 investments in the 6 months since their launch.

News coverage on African tech startups is also increasing, notably TechCrunch’s Africa coverage (note the uptick on article tagged Africa over the last 12 months) alongside continued strong coverage from long-standing African tech news sites such as Ventureburn and Disrupt Africa.

Industry and Ecosystem News

• The World Bank launches the $75mm Tunisia Innovative Startups and SMEs project to support Tunisian startups and SMEs link

• 4Di Capital [ZA] and SA SME Fund [ZA] raised $8.5m fund for South African startup investment, 50% of investments to be focused on black founders link

• 10 more African countries working on local “Startup Acts” (see Tunisia’s 2018 Startup Act for an example) to support local startup ecosystems and entrepreneurs link

• Google [US] and ccHub [NG] announce PitchDrive II to take African startups on a tour of Asian investors link

• Startups raising funding on Uprise.Africa [ZA] will also be listing on the ZAR X [ZA] stock exchange link

• Senegal DER [SN] & GreenTech Capital Partners [DE] announce Francophone regional “Venture Building Center” in Dakar link, link2

• African tech hubs #s increase by 40% in 2019, according to GSMA Ecosystem Accelerator and Briter Bridges link

• Flutterwave [NG] partners with payments giant AliPay [CN] to enable African developers to receive AliPay payments link, link2

• Camtel [CM] and the University of Yaounde [CM] begin creation of a new AI training center link

• South Africa proposes amendments to the Income Tax Act which the 12J Association says would make it harder to both raise and invest 12J capital link

Deals, Startups, and More

• Mobile game studio Cryptyd [EG] raises “Pre-Series A” funding round (terms undisclosed) from Cairo Angels [EG] link

• Agritech startup Taimba [KE] raised $100k from Gray Matters CapitalcoLABS [US] link

• Consumer goods distribution startup Optimetriks [KE] raises $330k in debt financing from French banks link

• Healthcent [ZA] raises ~$530k funding from Umkhathi Wethu Ventures [ZA] and Allan Gray [ZA] link

• Sortd [ZA] raises funding round (terms undisclosed) from HAVAÍC [ZA] link

• Rent to Own [ZM] raises $1.13m funding from Dutch Good Growth Fund [NL] and other European investors link

• OPay [NO/CN/NG] raises $50m funding for African mobile payments, with focus on Nigeria link

• Canal+ [FR] acquires ROK studios from IROKOtv [NG] to expand their African film offerings link

• VertoFX [UK] raies $2m to focus on African + emerging markets currency trading and payments link

• Lulalend [ZA] raises $6.5m series A from IFC and Quona Capita [US] link

• Sports timing startup Mobii Systems [ZA] sells 26% stake to Blue Label Ventures [ZA] (terms undisclosed) link

• African space news and research agency Space in Africa [NG] raises seed funding round led by AC Ventures [US] (terms undisclosed) link

• MAX.NG [NG], a motorcycle hailing and delivery startup, raises $7.5mm funding round led by Novastar Ventures with Yamaha [JP] participating link

• SweepSouth [ZA] raises a $2.4m investment from Naspers Foundry [ZA] link

• PayFast [ZA] acquired by African payment processors DPO Group [KE] (exact terms undisclosed) link

• Middle Eastern matchmaking app Harmonica [EG] acquired by Match Group [US] (terms undisclosed) link

• Health diagnostics startup Ilara Health [KE] raises $735k seed funding from VC firms and angels link

• The Baobab Network invests $125k in African health startups Beblocky [ET], Dr Cadx [ZW], Kakbima [KE], Gladepay [NG] and Pennysmart [GH] link

• The Gambia Angel Investors Network (GAIN) launches with 10-12 local investors and target of funding 8-12 startups/year in The Gambia link

In July I had an epic expedition heading out from San Francisco through South Africa, Nigeria, and Kenya, meeting with entrepreneurs, VCs, and more, so this issue was delayed by a few weeks.I’ve kept my eye closely on the startup landscape in the meantime, so this issue should represent a full aggregation of the last 6 weeks of African startup and VC activity. (I’ve also heard your feedback about having an easier-to-remember URL for this blog – you can now find it easily at http://notes.africa, thanks to the new .africa TLD)

I’ve been enthused to see more public documentation covering the breadth of the African tech ecosystem: First, a new open project launched by TLcom to track early stage tech capital in Africa, available directly via an editable Google Sheet. In addition, the growth (and future) of mobile money in Africa was covered in detail by the GSMA, I recommend checking out their recent two-part series on this topic.

Finally, the interest continues to grow in regional-specific VOD offerings for Africa: Malaysia-based iflix [MY] raised $133mm (on top of the $90mm they raised earlier this year), part of which will go towards launching iflix Africa [ZA] in South Africa and 5 more African countries.

Industry and Ecosystem News

• Silvertree Internet Holdings [ZA] announces plans to invest $10mm over next 12 months into African tech startups

• Flat6Labs [EG] closes $5.6mm fund

• Startupbootcamp [ZA] announces the 10 startups selected for its first African accelerator program: Brownie Points [ZA], Dusu Pay [UG], Fo-Sho [ZA], Got Bot [ZA], Just Now [ZA], Khoyn [ZW], MOBicure [NG], Strider [ZA], Yethu [ZA]

• YEi Start in France [FR] accelerator opens up to applications from South Africa, their first African country for applicants

• Angola Cables [AO] announces launch of the South Atlantic Cable System (SACS), a 40 Tb/s undersea cable linking Brazil and Angola

• Alibaba [CN] announces $10m fund to invest in African online businesses, including selecting 200 African entrepreneurs for training in China

• ccHub [NG] and Google for Entrepreneurs [US] announce the 14 African startups chosen to participate in their PitchDrive fundraising tour: BitFinance [ZW], ClinicMaster [UG], Fashpa [NG], Firefly Media [SN], Gebeya [ET], Gloo [NG], GoMetro [ZA], Kudobuzz [GH], Lifebank [NG], Ongair [KE], Piggybank [NG], Prepclass [NG], Real Food [ZW], Tradedepot [NG]

• Early-stage investment firm Microtraction [NG] launches, targets investing in up to 1,000 startups per year with $65k early-stage investments

• VC fund Grotech [ZA] rebrands to Kalon Venture Partners, focusing on high growth technology companies

• Mastercard Foundation [CA] and Resolution Project [US] announce the 10 African winners of their Resolution Social Venture Challenge, who will receive seed funding and mentorship

• The 4th annual African Angel Investor Summit 2017 is coming up in Cape Town on November 16th and 17th

Deals, Startups, and More

• Mobile education platform and services startup Chalkboard Education [GH] raises $237k in funding from Jacobs Foundation [CH]

• Aerial data analytics startup Aerobotics [ZA] raises $602k seed round from 4Di Capital [ZA] and Savannah Fund [KE]

• IoT “smart tracker” startup Sensor Networks [ZA] raises new funding round from 4Di Capital [ZA], precise terms undisclosed

• African payments platform Flutterwave [NG] raises $10mm Series A round led by Greycroft Partners [US] and Green Visor Capital [US]

• Home-cooked meal delivery startup Mumm [EG] raises $200k funding from 500 Startups [US] MENA-focused 500 Falcons fund

• B2B vendor supply marketplace Twiga Foods [KE] raises $10.3mm in Series A funding led by Wamda Capital [AE] including Omidyar Network [US] among other investors, in addition to $2mm grant funding from USAID [US] and GSMA [UK]

• Agritech startup Releaf [NG] raises $120k seed funding from Y Combinator [US]

• Mobile e-commerce platform Sky.Garden [KE] raises $100k in funding from Katapult Accelerator [NO]

• Fintech startup InTouch [SN] partners with Total [FR] and Worldline [FR] to launch its Guichet Unique mobile payment system to 8 African countries

• Loyalty shopping app SnapnSave [ZA] raises $1mm funding round from Kalon Venture Partners [ZA] and Smollan Group [ZA]

• Pay-as-you-go software company Lumeter [US / KE] acquired by East African off-grid solar microlease startup Mobisol [DE / TZ / RW / KE], terms undisclosed

• Used car online marketplace getWorth [ZA] announced an additional funding round (terms undisclosed), raising their total amount invested to $1.4mm

• Mobile e-health startup hearX [ZA], maker of smartphone-based hearing, ear disease, and vision tests, raises $2.2mm investment funding and $500k grant funding

• Bus ridesharing startup Swvl [EG] raises $500k from Careem [AE]

• On-demand delivery startup Bosta [EG] raises new investment round from Cairo Angels [EG], terms undisclosed

• Mobile app & SMS education platform M-Shule [KE] raises funding from Engineers Without Borders Canada [CA], terms undisclosed

On the back of the Civic [US] recent (very) successful $33mm well-planned ICO (Initial Coin Offering), i have to wonder: is the ICO a future option for African tech startups to effectively fundraise from global markets without fighting with currency controls and exchange controls? I would love to see someone execute an African startup ICO with the same level (or higher!) of quality and transparency as Civic’s recent ICO.

Terms were finally disclosed on this month’s Tizeti [NG] funding round, where they raised $2.1mm to support continued growth of their Nigerian tower network, with a long-term goal of expanding their tower network across Sub-Saharan Africa. Another example of how post-Y Combinator startups are successful at raising larger grounds including investors from outside of Africa.

Finally, looking at the growth of mobile subscribers in Africa, the June 2017 Ericsson Mobility Report states that Nigeria added 9mm new mobile subscribers in Q1 2017, making it the fastest growing country in Africa, with a total of 985 million mobile subscribers on the continent. Looks like Africa will hit 1b mobile subscribers by the end of 2017… go Africa!

Industry and Ecosystem News

• Microsoft gives Affordable Access Initiative grants to Kukua Weather Services (UG), Solaris Offgrid (TZ), Standard Microgrid (ZM), SunCulture (KE), VisionNet (CD) and WrightGrid (CD)

• TLcom Capital [UK] raises $40mm for its TIDE Africa Fund, focused on Sub-Saharan Africa startups (ticket size ranges from $500k to $10mm)

• Digital Financial Services (DFS) Lab invests $250k in fintech startups focused on Africa: Inclusive [GH], Pezesha [KE], Pula [KE], Teller [US]

• Singularity University [US] coming to Johannesburg for its first Africa visit to run its SingularityU Summit on Aug 23 & 24

• LTE-A expansion continues in South Africa, with MWEB [ZA] launching LTE-A products via Rain’s LTE-A network

Deals, Startups, and More

• Accounting and legal business management SaaS startup Drive Revenue [ZA] raises $775k funding round from HAVAÍC [ZA]

• Domestly [ZA] raises funding round from the Industrial Development Corporation (IDC) (terms undisclosed)

• YC-funded African media network OMG Digital [GH] raised $1.1mm funding from int’l investors

• Indie game studio Polysmart [TN] raised $600k from CDC Gestion [TN]

• WhereIsMyTransport [ZA] raises an additional $810k from Goodwell Investments [NL] and Bomardier [CA]

• Mastercard announces partnership w/ NetPlus [NG] to developer Nigerian ecommerce payment solution

• Advertising technology startup Xineoh [ZA] raises $2mm from US and Canadian investors

As you can see from this issue’s “Industry and Ecosystem News” section, it’s been a busy last 4 weeks with African startup-related announcements from Google, GSMA, Microsoft, Orange, and more.

I’ve been impressed by the growth in funding reports from North African startups in this issue, especially the standout $3mm seed (!) round raised by Morocco’s WaysToCap. Given that the round closed soon after their graduation from US accelerator Y Combinator (recent YC Nigerian graduate Tizeti also closed a round of undisclosed size from US investors Zeno Ventures), it’s worth watching to see if the recent increase in African investments by US-based startup accelerator programs will result in more large funding rounds for the African startups coming out of these programs.

A few recent in-depth looks at South Africa which are worth checking out: since my last issue Ventureburn has published their thoughts on “Unpacking South Africa’s tech startup and scaleup investor landscape”, and Elevate Holdings released their 148-page report “Unicorns, Gazelles and Leapfrogs” on how to increase growth in the South African startup ecosystem.

Finally, for those of you watching the fintech sector in Africa, Disrupt Africa has released their “Finnovating for Africa” report focusing on the last 2.5 years of fintech startup activity in 20 countries across Africa, which Disrupt’s founder Tom Jackson describes in a recent interview.

Industry and Ecosystem News

• African talent accelerator Andela [NG] announces expansion into Uganda, its third country in Africa link link2

• CcHub [NG] and Google for Entrepreneurs have finished taking applications for PitchDrive, a 3 week, 5 country European tour of 15 African startups pitching for investment to over 300 investors, with a fundraising target of $22mm link link2

• The GSMA Ecosystem Accelerator Innovation Fund is taking applications from African and Asia Pacific startups for its second round of grants (from $129k to $322k), focusing on the “sharing economy” and MSMEs (Micro, Small, and Medium Enterprises) link link2

• Google announced that 6 African startups have been chosen to participate in their Launchpad Accelerator program: Delivery Science [NG], Flutterwave [NG], Paystack [NG], Gidimo [NG], Twiga Foods [KE], JUMO [ZA] link link2

• Microsoft 4Afrika is opening an AppFactory Academy in Ethiopia to provide 6-month internships to build “real-world software development projects”, starting with a healthcare focus link

• Multiply Group [ZA] and Capital Eye [ZA] launched Crossfin Technology Holdings to invest in fintech startups and hold existing investments link link2

• Orange [FR] invests ~$56mm into launching Orange Digital Ventures Africa [SN] investing in early stage startups focused on “new connectivities, FinTech, the Internet of Things, energy and e-health” link link2

• She Leads Africa has launched She Leads Africa Accelerator 2017, a 3-month accelerator for women-run startups in Nigeria, taking applications through June 25 link link2

• Traction Camp [KE], backed the World Bank and run by mLab East Africa [KE], has chosen 21 East African startups to participate in their 6-month acceleration program link

• Ventures Platform [NG] has selected 7 startups for the second cohort of their acceleration program, which includes seed funding and an investor demo day link

Deals, Startups, and More

• Microfinance banking and credit rating startup awamo [DE / UG] raised $1.7mm additional seed funding to continue growth in Uganda link link2

• Restaurant guide and reservation startup EatOut [KE] raised $500k from Craft Silicon [KE] to use for expanding into more countries and adding payments support link

• Restaurant guide startup elmenus [EG] raised $1.5mm Series A round from Algebra Ventures [EG] as it passes 1mm monthly users link link2

• Fintech security startup Entersekt [ZA] raised $1mm+ (specific #s not disclosed) funding round from ZA banks through their investment vehicles AlphaCode and BoE Private Equity Investments link

• Business expense management startup Expensya [TN] raised a $1.1mm funding round (investor names undisclosed) link

• Social video analytics dashboard Mintrics [EG] raised new investment (terms undisclosed) from Numu Capital [AE] link link2

• Tutor and babysitter service marketplace Orcas [EG] (formerly CairoSitters) raises round from Cairo Angels [EG], terms undisclosed link link2

• Solar-powered wifi provider Tizeti [NG] raised a new round (terms undisclosed) from Zeno Ventures [US] after graduating from Y Combinator link

• African B2B marketplace WaystoCap [MA] raised a ~$3mm seed round after graduating from Y Combinator, plans to use funds to expand into West Africa link

• Emerging market transport information service WhereIsMyTransport [ZA] raised $712k from the Global Innovation Fund [UK] link link2

Africa Notes just keeps on growing: as I send out issue #12, I wanted to share a few statistics with you on Africa Notes performance: this newsletter is growing ~7% every 2 weeks, with a 12.1% clickthrough rate (13x industry average, according to Mailchimp), and 54.6% open rate (4x industry average). Thanks to everyone reading this, I’ve appreciated all of your feedback and support!

Infrastructure investments continue to grow in Africa: Google / IFC / Convergence Partners / Mitisui announced they are co-investing up to $100minto CSquared to “build wholesale metro fibre optic networks and enable internet access in Africa”, and Microsoft has announced 2 upcoming new Microsoft Cloud regions in South Africa for a 2018 launch.

Developer training remains a key sector in Africa, with Telkom subsidiary BCX investing ~$4.4mm in WeThinkCode [ZA], a coding school in South Africa based on the French coding school 42’s curriculum. An important differentiator from other coding schools in Africa is that WeThinkCode is a full-time (8-10 hours per day) coding school with a 2-year course, making it the longest-term (as far as I’ve seen) coding school in South Africa.

Gloo.ng [NG] is launching actual, physical stores in Nigeria; Gloo Fresh appears to be a different model than Amazon Go, focused on market growth with new customers instead of reinventing the physical store checkout process.

Industry and Ecosystem News

• 500 Startups [US] successfully closes “500 Falcons” $15mm MENA fund, planning to invest in 100-150 startups link
  

• TechCrunch announces plans to bring Startup Battlefield competition to Nairobi on October 11 w/ sponsor Facebook link link2
  

• Microsoft announces plans to launch first Microsoft Cloud regions in two South African cities in 2018: Johannesburg and Cape Town link link2
  

• Google, Convergence Partners, International Finance Corporation (IFC), and Mitsui & Co. announced an investment of up to $100mm in CSquared, a “a wholesale broadband infrastructure project” link link2
  

• Opera Software [NO / CN] announces that it will be spending up to $100mm to “grow the African digital economy, opening Kenya & Nigeria offices link
  

• ccHub [NG] launched the Diaspora Challenge, searching for early stage startups, who will receive incubation + $15k funding from ccHub, and potential $250k seed-stage investment from Growth Capital [NG] link
  

Deals, Startups, and More

• SweepSouth [ZA] raises capital for African growth via “$1mm+” Series A round led by Smollan, along with DraperDarkFlow (DDF), Identity Development Fund Managers, CRE Venture Capital link

• BCX, a subsidiary of Telkom [ZA], invests ~$4.4m in WeThinkCode [ZA], a two-year developer training program for South Africa developers age 17-35 link
  

• CarZar [ZA] receives $1.5mm funding from Vostok New Ventures [SE] as part of their Series A funding round link link2
  

• Private equity firm Synergy Capital [NG] acquires the Nigerian and Ghanaian subsidiaries of Dimension Data [ZA], terms undisclosed link
  

• Health wearables startup Vitls [ZA] receives “six-figures” in funding from “New York-based angel investors” as part of a still-open round link
  

• E-commerce site Gloo.ng [NG] to launch 23 “Gloo Fresh” physical stores in Nigeria over the next 2 years link link2
  

• “Insurtech” startup AllLife [ZA] raises funding from Accion Frontier Inclusion Fund [US], terms undisclosed link link2
  

It’s been a busy few weeks for startup funding and acquisitions in Africa: The breakout acquisition that everyone has been talking about is the $100mm+ cash acquisition of GetSmarter [ZA] by 2U [US], followed by the smaller Computicket [ZA] acquisition of Entry Ninja [ZA]. Recent funding highlights include two significant $1mm+ Series A rounds: Cars45 [NG] raised $5mm from Frontier Car Group [US], and Mobenzi [ZA] raised $1.15mm from Vumela Fund [ZA].

Industry and Ecosystem News

• Portraz [ZW], Zimbabwe’s telecom regulator, has launched a $25mm tech fund and opened funding applications for startup innovators through May 30 link link2

• GSMA Ecosystem Accelerator Innovation Fund announced 7 African startups in their first round portfolio, each receiving up to £250k in funding: Kytabu [KE], Optimetriks [KE], Prepclass [NG], Raye 7 [EG], Safemotos [RW], Twiga Foods [KE], UX / Biscate [MZ] link link2 link3

• South Africa’s Cape Craft and Design Institute (CCDI) and Technology Innovation Agency (TIA) announced up to $37k seed funding each for 7 biotech and agtech projects link

• Mastercard [US] Center for Inclusive Growth announces $1mm grant over 3 years to Inkomoko Hub [RW] to support small businesses, including startups link link2

Deals, Startups, and More

• Education startup GetSmarter [ZA] sells to online university education platform 2U [US] for $103mm cash + $20mm cash earnout provision link link2

• Used car sales platform Cars45 [NG] raises $5mm Series A from Frontier Car Group [US] link

• Fintech startups Piggybank.ng [NG] and Olivine Technology [KE] raised $50k each from Village Capital [US] at conclusion of FinTech Africa 2017 link

• Mobenzi [ZA] closes ~$1.15mm Series A round from Vumela Fund [ZA] link

• Sports event ticketing startup Entry Ninja [ZA] acquired by Computicket [ZA] (terms undisclosed) link link2

• Grocery e-commerce startup GoodsMart [EG] raises $750k from Algebra Ventures [EG] link

• Identity protection startup Civic [US] to open Cape Town engineering office following recent relaxation of IP controls in South Africa link

Africa Tech Summit London 2017 finished up on April 20th: see the event writeup by African Business Review for details. I hadn’t planned on attending this year, but after reading the event’s writeup and seeing the speakers list (I see many people I know and respect on the list, and many more whom I’d like to meet/hear for the first time), so I’m adding attending the 2018 event to my plans for next year.

It’s going to be a busy spring/summer for startup accelerators in the “Mother City” (Cape Town): XL Africa is launching an acceleration program for African startups offering 20 startups up to $1.5mm funding, Startupbootcamp is launching in Cape Town and offering 10 startups up to €15k funding (demo day: November 30 2017), and Techstars Africa / Barclays Accelerator’s 13-week accelerator program (demo day: August 2 2017). Looking forward to checking these out in person!

American financial services giant Mastercard’s movements are increasingly visible in Africa, in what appears to be an increasing focus on African payment technologies and startups. In April, I’ve noted that that Mastercard is trialing their first fingerprint-reading credit card in South Africa (coming soon as an EMV global standard), and Mastercard Start Path Global 2017 class opening to global startups and being promoted through African tech news. And over the last few months, they’ve also invested in payments service Zoona (via their foundation) and launched MasterPass QR with merchant services startup Kopa Kopa.

As requested, I’ve now added North African startups to the 500 Startups tab of my Accelerator-Funded African Startup List, to ensure that I’m tracking startups from the entire African continent.

Industry and Ecosystem News

• World Bank and VC4A launch XL Africa, an acceleration program for African startups providing 20 startups with up to $1.5mm funding, a 2-week Cape Town residency in Nov 2017, and more link link2

• Startupbootcamp launches in Africa for the first time starting in Cape Town, with application deadline of July 9 and September kickoff link link2

• Seedstars World returns to Africa in May 2017, expanding from 20 to 23 African cities link

• South Africa’s Financial Services Board (FSB) announces that they will rule by June 30 on whether or not they will create equity crowdfunding rules for South Africa link

• Europe’s CrowdfundingHub releases a report on the potential for crowdfunding in Nigeria link

• MENA startup network RiseUp brought 6 startups on their RiseUp Explore tour of Silicon Valley to visit top companies and events, including Google, Facebook, 500 Startups link

• Innovate Ventures opens applications for startups in Somalia or Somaliland for Innovate Accelerator, a 12-week program offering up to $15k funding link link2

Deals, Startups, and More

• Barclays announced the 10 fintech companies participating in their 2017 Barclays Accelerator program in Cape Town run by Techstars: Flexpay [KE], Howler [ZA], Spatialedge [ZA], Abe.ai [US], The Sun Exchange [ZA], Byte Money [ZA], Avenews-GT [IL], FOMO Travel [ZA], Kapitalwise [US], eCOIDA [ZA] link link2

• Recruiting startup LinkdPro [ZA] launches Octopus, ZA’s “first talent platform” for financial services professionals link link2

• Electronics education hardware startup Seebox [ZA] expands into UK school system link link2

• Online African comic startup Comic Republic [NG] raised funding from Aviva [NG] and angel Tseyi Hammond (terms undisclosed) link link2

• 3D printing startup Metal Heart [ZA] raises $1.23mm from South Africa’s Industrial Development Corporation (IDC) to build ZA’s “first production-ready 3D metal printer” link

• Pay-as-you-go LPG cooking gas startup Paygo Energy [KE] raises $1.43mm for new smart meter development and growth link link2

• B2C E-commerce big data startup Datavora [TN] raises $425k to fund European and North American growth link link2

• South African E-commerce giant Takealot [ZA] raises $69.4mm round from Naspers [ZA] link link2

A few weeks ago, I had the opportunity to talk with the Geeks on a Plane and 500 Startups contingents on the South African leg of their Africa tour. I’m enthused to see the continued interest in Africa from top investors, and the growing connections between Silicon Valley and Africa.

Since 500 Startups is actively investing in Africa, I’ve started tracking their portfolio companies in Andy’s Accelerator-Funded African Startup List (see the “500 Startups” tab), in addition to adding a few more Y Combinator companies that were missing from my 2016 list. (Thanks to Monique from 500 Startups for providing the information on their African portfolio companies!)

According to a Venturebeat article from the start of this month, Africa is the next frontier for VCs… I agree with the sentiment, but is Africa the “next frontier” or specific African countries? After all, Africa is not a country, and the African Union has yet to enable the kind of single market that the European Union has been enjoying. (here’s an interesting recent report on the EU’s e-commerce “digital single market” if you’re up for reading more on how the single market has worked out for European e-commerce startups) The Disrupt Africa 2016 Tech Startup Funding Report points out that although 146 African startups raised over $129mm in funding during 2016, startups from just 3 countries (Kenya, Nigeria, and South Africa) raised nearly 75% of Africa’s 2016 startup funding.

That said, I liked the article overall: specific insights provided throughout, and it bears testimony to the ingenuity and persistence of successful entrepreneurs across Africa. It would be helpful to see an article analyzing the specific African startup geographic opportunities a bit more: ie. startups building for a specific country, startups building for a broader African region, or startups building for the global market. Each opportunity has different headwinds and tailwinds involved. Probably worth plotting that out in more detail sometime.

Finally, in the African energy tech sector, how about that off-grid solar? It’s been 4 years since I first reviewed M.KOPA in WIRED, and since then pay-as-you-go financed off-grid solar has been growing like crazy in Africa. Off-grid solar has the potential to be as disruptive to the energy markets as the cellphone was to the landline market (“the leapfrog infrastructure of the decade” according to the FT), and with the added potential to integrate wi-fi hotspots and cross-sell data & entertainment services, off-grid solar systems have the opportunity to be the data, entertainment, and energy hubs of emerging market homes.

Industry News

• Accion [US] Frontier Inclusion Fund has raised a $141mm fund to invest in emerging market fintech startups, fund to be managed by Quona Capital [US] link
  

• Twitter targets emerging markets through their <1mb “Twitter Lite” Progressive Web App including bandwidth savings and offline capability link link2
  

• Facebook continues their rollout of wifi hotspots, laying down fiber, and testing Aquila (solar-powered Internet access drones) across Africa to continue African user growth (up 42% since 2015, to 170mm African users) link
  

• Uber provides some details on how they adapt to local market conditions in the various African countries type operate in link
  

• Templeton Emerging Markets Group [US] has published a report on key issues in the South African economy (predating the recent credit downgrade) link
  

• Camscorp launches 3-month accelerator “upscale” program Camscorp Venture Lab [UK] for African startups, finishing with demo day in London link link2
  

• Lagos, Nigeria hits a milestone as their startup ecosystem is valued at $2b (!) by Startup Genome’s Global Startup Ecosystem Report (GSER), making it the highest-value ecosystem in Africa link link2
  

Deals, Startups, and More

• Online ticketing company Quicket [ZA] receives funding round from KNF Ventures / Knife Capital [ZA] (terms undisclosed) to expand into additional African countries link

• Edtech startup VeriCampus [NG] raises $60k from investment bank BPI France [FR] to expand into France and Francophone Africa link link2

• Developer training fellowship programs keep growing after the success of Andela [NG]: Northern Nigeria tech hub nHub [NG] launches their own 10-month fellowship developer training program link link2

• Mobile microloan startup Alternative Circle [KE] raised $1.1mm from Creditinfo Group [IS], plans Spring 2017 launch using Creditinfo’s credit risk profiling technology link

• Sendy [KE] partners with the Kenyan National Election Agency to allow ballot delivery and casting via drone (!) for the upcoming national election in August link

• SME credit scoring & financing startup Lidya [NG] has closed a $1.25mm seed round led by Accion Venture Lab [US] w/ Newid Capital [US] and unnamed angel investors link link2

• Serial entrepreneur Malan Joubert announces Root [ZA], a “fully programmable bank account and card for developers”, is in private beta with full rollout in June 2017 link link2

• Kopo Kopo [KE] launches Masterpass QR w/ Mastercard [US] in 11 countries link link2
  

  • Helpful context: These QR code solutions are growing in Africa (originally pioneered by Snapscan [ZA]) allowing customers to complete credit/debit card transactions by only requiring merchants to display a QR code to customers and a phone to receive payment confirmations (even a minimal cellphone can be used for this, since confirmation is usually via SMS), and customers to have a smartphone w/ camera, thereby removing the need for an expensive credit card point-of-sale (POS) terminal.

• Telemedicine startup ConnectMed [ZA], providing virtual doctor visits by fully licensed doctors, expands into Kenya link
  

I believe that that 2017 and 2018 will be when Nigeria becomes the #1 African country for tech startup growth & investment (more on this in the next issue of Africa Notes), and so I’m both pleased and not surprised to see 3 more Nigerian startups listed in the current (W17) Y Combinator class: Kangpe (instant professional medical advice), BuyPower (prepaid electricity sales), and Tizeti (low-cost public Internet access via solar-powered WiFi towers). I’ve also added them to my ongoing African startups in Y Combinator tracking spreadsheet.

I’ve received some feedback from readers who would like to see more North African coverage in this newsletter. While the primary focus of Africa Notes remains Sub-Saharan Africa, I’ll try adding relevant North Africa tech coverage as it hits my radar. I’ve also started marking startup names in bold to make this newsletter easier to scan.

Industry News

• 1,000 African entrepreneurs chosen for Tony Elumelu Entrepreneurship Programme (TEEP), receiving mentorship and up to $10k seed capital link link2

• Allan Gray Orbis Foundation [ZA] releases report studying South Africa’s entrepreneurial ecosystem, ranks ZA as #2 in Sub-Saharan Africa link link2

• Over 300 tech hubs now active across Africa according to GSMA link link2

• Accelerator Inkomoko [RW] partners with Bank of Kigali [RW] to launch Urumuri Initiative: 7 month tech incubator program offering pool of $73k of zero-interest loans for 8 qualifying mid-stage startups link link2

• Microsoft expands #Insiders4Good Fellowship (hardware & software credits, mentorship, & bootcamp for entrepreneurs who address social or economic issues) to applicants from 4 East African countries: KE, TZ, RW, UG link link2

Deals, Startups, and More

• African datacenter giant Teraco [ZA] raises $91mm from Barclay’s Africa [ZA] to continue their infrastructure growth on the continent, including a new eastern Johannesburg datacenter buildout in 2017 link
  

• Local package delivery startup Pargo [ZA] raises $1.2mm funding round led by SAAD Investment Holdings [ZA] with Tsing Capital [CN] and Johan Dekker [ZA] link

• “Talent accelerator” Andela [NG] fellowship program expands further into Africa, opening up in Uganda link link2

• Targeted music startup NicheStreem [ZA] raises funding by selling 10% equity to Media24 [ZA] (amount undisclosed) as part of their ongoing seed round fundraising link link2

• Ringier Africa [CH] exits Ringier Africa Deals Group JV, selling its stake in DealDey [NG] to Silvertree Holdings [ZA] link

• Fintech company 22seven [ZA] (think “Mint.com + online investing for South Africa”) to be fully absorbed into parent company Old Mutual [ZA], loses co-founders Christo Davel (CEO) and Kenny Inggs (CTO) link link2

• Spazapp [ZA] launches Android app to help spaza stores (informal local retailers) to save money by ordering supplies directly from large brands and suppliers link

• Travel insurance sales startup Hepstar [ZA] accepted into the Plug and Play [US] accelerator program in Silicon Valley link

• Mobile payments startup Paga [NG] announces that it has now reached over 6 million users in Nigeria link

• Financial service provider AI chatbot FinChatBot [ZA], incubated at Cape Town’s Far Ventures, raises $122k from angel Richard Marsden link

• Event professionals project quoting platform Eventerprise [ZA] raises funds from 3 additional angel investors link

• Courier startup Bosta [EG], whose main feature is being able to offer “instant delivery” within 2 hours, raises funding round (amount undisclosed) from Numu Capital [AE] link

• Jewelry e-commerce startup JewelHub [EG] raises seed funding (amount undisclosed) from investor Nada El Mosalamy [EG] link

African startups continue joining Y Combinator (with Ghana & Nigeria leading the pack) I’ve been tracking the number of African startups entering Y Combinator – very impressive to see the beyond-exponential growth from 2014 to 2016, hopefully that trend will continue through the end of 2017.

Fibre infrastructure in Africa expands with Facebook laying down 500 miles of fibre in Uganda, and African connectivity firm Liquid Telecoms is laying down twice that amount (1,000 miles!) of fibre infrastructure in Zimbabwe.

Industry News

• South Africa Reserve Bank (SARB) “relaxes” controls on sales, transfer and assignment of intellectual property from South Africa, but does not remove them link link2
  

• Google Launchpad Accelerator program now accepting applications for the first time from Sub-Saharan Africa startups in Kenya, Nigeria, and South Africa link
  

• .africa TLD (top level domain) continues moving forward towards a 4 July 2017 general availability launch link
  

• 12 Kenyan banks now accepting/issuing Verve cards (owned by Interswitch [NG], accepted in 19 African countries), further positioning Verve as a growing African Mastercard/Visa competitor link
  

• Facebook announces plans to 500 miles of fibre in Uganda in partnership with Airtel and BCS link
  

• African connectivity provider Liquid Telecom is rolling out a 1,000 mile fibre network at a cost of $14mm to connect 16 regions in southern and eastern Zimbabwe link
  

Deals, Startups, and More

• Scholarship search engine edtech startup ScholarX [NG] expands reach from Nigeria into Ghana link
  

• Smallholder farmer agritech startup GreenFingers Mobile [ZA] closes seed investment round (terms undisclosed) from Hivos Food and Lifestyle Fund link link2
  

• Reunert [ZA], a JSE-listed ICT firm, acquires 51% interest in South African startups Terra Firma Solutions (home solar PV systems and software) and Ryonic Robotics (robots to inspect pipelines and dangerous/confined areas) link
  

• African payments startup Zoona [ZA] raised an additional $1mm funding from the Partnership for Financial Inclusion, funded by the IFC (International Finance Corporation and Mastercard Foundation, to launch a new mobile wallet product and reach 300,000 new users link
  

• Business payments startup Yoco [ZA] has raised its Series A round (amount undisclosed) from Quona Capital [USA] and Velocity Capital [NL] link
  

• IoT platform startup IoT.nxt [ZA] raises R100mm in funding from Talent Holdings to launch their London office and grow into European markets link
  

• Transport data startup WhereIsMyTransport [ZA] announces completion of “world first” map of Cape Town’s formal and informal (minibus taxi) transport networks link
  

Dear readers: I’m trying a newer, lighter, significantly-easier-to-produce version of Africa Notes with this issue (also, Caps Lock). I’ll be continuing to experiment with different formats and categorization methods over the coming weeks, and seeing how they impact engagement. As always, your feedback is welcomed!

Looking back on last year: Disrupt Africa has published their 2016 African Funding Report, going into detail on last year’s funding landscape, including a nearly 17% growth in Africa tech startup funding last year. Notable points in the report include the near-parity levels of tech startup funding in South Africa and Nigeria, and the 77% drop (!) in Kenyan startup funding from 2015. (However, the presence or absence of relatively outsize funding deals [ie. Zoona in ZA, Andela in NG, and M-KOPA Solar in KE] are helping to create some of this apparent year-to-year funding volatility, but that’s a longer discussion.)

Industry News

• The South African Reserve Bank [ZA] (SARB) has stated that it is open to creating a national digital currency using blockchain or distributed ledger technology. link link2
  

• Geeks on a Plane / 500 Startups [US] planning their latest African startup tour for Ghana, Nigeria, and South Africa in March 2017 link
  

Deals, Startups, and More

• Startup accelerator Y Combinator [US] has chosen two African startups for their Winter 2017 class: payments-via-messaging startup Kudi [NG] and African marketplace Waystocap [MA] link
  

• B2B Startup Bamba [KE] closes a $1.1mm seed funding round including investments from Techstars Africa and Draper Associates link
  

• “Lending marketplace” startup RainFin [ZA] has sold 30% of its equity to LeBashe Investment Group at an undisclosed price link
  

• Agricultural credit rating fintech startup FarmDrive [KE], focused on smallholder farmers (a 50mm user market in Africa), has closed a new funding round (amount undisclosed) from Kenyan telco Safaricom’s Spark Venture Fund link link2
  

• Video streaming subscription service Showmax [ZA] launches in Poland, their first European country link
  

• Credit scoring and financial services startup Tala [US], already launched in East Africa and SE Asia, raises a $30mm Series B round for further market expansion link
  

• Universal basic income nonprofit GiveDirectly [US] is testing 2-year and 12-year basic income commitments for Kenyans in rural villages link link2
  

• ecosystem Facebook now estimates that Internet.org is reaching 40mm people link
  

• access Eutelsat will continue with 75gbps satellite Internet access for Africa in 2019, but without Facebook link
  

kenya and nigeria

• access Communications Authority of Kenya decides to allow TV signal broadcasters to issue licenses for use of analog TV spectrum “white spaces” to ISPs link
  

• access Safaricom connects over 7,000 Nairobi homes with fiber Internet as they roll out their fiber access pilot w/ Kenya Power link
  

• payments Equity Bank releases EazzyAPI money transfer developer API link
  

• payments startup Chura launches API to transfer money from PayPal to M-PESA link
  

• ecosystem carrier neutral datacenter provider Icolo.lo begins construction on new 27,000 sqft datacenter in Nairobi link
  

• ecosystem Ecobank Kenya closes 9 branches as their customers migrate to digital platforms link
  

• govt Kenya’s ICT cabinet secretary Joe Mucheru pledges to amend Kenya’s controversial “Film, Stage Plays and Publications Act 2016” act link
  

• govt Kenya’s Capital Markets Authority (CMA) and Australian Securities and Investments Commission (ASIC) launch fintech partnership to open up a “regulatory sandbox” for fintech startups link
  

• startups laundry and home cleaning startup Kisafi expands from Kenya into Nigeria and Uganda link
  

south africa

• startups Groupon South Africa shuts down operations link
  

• startups technology group Tritech Media acquires 30% of South African parking payment startup KaChing link
  

• govt Dept of Communications claims digital TV transition will be completed by end of 2018 (over 3 years later than originally scheduled) link
  

other sub-saharan countries

• invest Kosmos Innovation Center (KIC) invests $50k seed in Ghana-based Ghalani (farm management platform for agricultural aggregators to work with small-holding farmers) link
  

as October comes to a close, there’s been a lot happening in South Africa over the last 3 weeks in terms of investment and government policy:

investment: as i researched this 4th issue of Africa Notes, South Africa continues to see the highest # of tech startup investment deals in SSA. (AFAIK, since not all startup investment/acquisition deals are publicly announced)

policy: South Africa’s recently published National Integrated ICT Policy White Paper represents a potentially massive change to South Africa’s communications and Internet ecosystem, not to mention its postal system and beyond. i touched on this in the last issue of Africa Notes when i mentioned it had been tabled, and have spent some time reading over it since then – it’s an extremely wide-ranging document, and anyone tracking South Africa’s Internet or telecoms future should make time to read it over. (South African publishers are already reviewing some of the questions raised by the ICT White Paper)

When it comes to how it specifically the ICT White Paper could impact spectrum allocation, there is an evaluation by My Broadband which says “The paper calls for radical changes in the telecommunications market, including the creation of a Wireless Open Access Network (OAN). All unassigned high-demand spectrum – essentially LTE spectrum – will be set aside for the OAN.“ This would mark a huge change from South Africa’s current spectrum auction model.

as for where South Africa goes from here, according to an ITWeb interview with the CEO of ICASA, “there are a number of dynamics at play when one publishes a white paper. One of those dynamics is they must then decide, in the white paper, those issues that are going to be in the legislation. Unfortunately, in SA, legislation takes 18 months to two years to finalise. So, we have got a nice fight ahead of us in Parliament regarding the legislation that is going to be put in place.”

and finally, taking a look at Nigerian startups, i recently read two articles that i wanted to highlight: one describes the need for more Nigerian startups to announce their funding rounds (please! i only link to what’s actually been written about publicly) and Nigerian startups beyond Lagos. As the Nigerian startup ecosystem grows, i expect to see more focus on Nigerian tech beyond Lagos in the future (even during Y Combinator’s short visit to Nigeria they made sure to visit both Lagos and Abuja).

pan africa

• ecosystem GSMA estimates that African smartphone adoption will surpass 50% by 2020 as device costs drop link
  

kenya

• invest Safaricom’s Spark Venture Fund invests in mobile education startup Eneza Education link
  

• invest transport startup Magic Bus Ticketing (“Uber for buses, but offline”) wins Hult Prize for $1mm seed funding link
  

• startups finalists announced for Pivot East startup conference & pitch competition on Nov 15th in Nairobi link
  

• startups skills training and accelerator program GE Lagos Garage relaunching in Lagos in mid-November link
  

• startups CoLab innovation hub launches in Kaduna link
  

• startups Ingressive and Starta planning “High Growth Africa” startup workshop and pitching event in Lagos for mid-November link
  

• startups East African music streaming and download service Mdundo reaches over 1mm users link
  

• startups Naspers-owned VOD service ShowMax launches in Kenya with M-PESA payment support and low-bandwidth optimization link
  payments Twinpine releases their Kenya mobile trends report for 2016 link
  

• ecosystem Kenyan mobile phone subscribers grow 9.9% from April to June 2016, up to 39.7mm subscribers link
  

• govt #StopFilmBill trends as Kenya’s controversial “Film, Stage Plays and Publications Act 2016” proposes to regulate VoD, games, OTT services aka mobile apps, and more link link2 link3
  

• govt Kenya’s Kozna Techno City signs deal with Tel Aviv Global to create JV opportunities between Kenyan and Israeli startups link link2
  

nigeria

• startups Uber launching used vehicle loans available w/ low interest rates for top drivers link
  

• startups Netflix deploys their first West Africa streaming server in Lagos w/ Spectranet link
  

• payments KPMG is planning their FinTech Summit 2016 for Nov 22nd in Lagos link
  

• payments PayPal announces Nigeria is their 2nd largest market in Africa within 1 year of launch link
  

• payments Central Bank of Nigeria (CBN) blocks all foreign-currency transactions on credit cards denominated in Naira link
  

• hubs LeadSpace coworking space launched in Lagos by Passion Incubator link
  

• ecosystem Chinese emerging market smartphone company Tecno announces plan to start manufacturing devices in Nigeria link
  

• ecosystem Huawei launches $6mm innovation and training center in Lagos link
  

• ecosystem ROK Studios launching Nollywood-only DSTV satellite channel on Nov 1 link
  

• govt Nigerian Senate uses e-voting system for their first time to add transparency to voting link
  

• govt Minister of Communications sees ICT sector to employ 40+ million Nigerians, more important than oil & gas industry link
  

• govt National IT Developer Agency (NITDA) announces plan to train 60 million Nigerians in digital literacy within 3 years link
  

• govt Central Bank of Nigeria (CBN) updates guidelines to open up the Nigerian Inter-Bank Settlement System (NIBSS) to mobile money, payments and more link
  

south africa

• invest e-learning startup The Student Hub raises $300k from angel investors link

• invest used car marketplace CarZar raises funding from Silvertree Capital link

• invest TriTech Media purchases 20% stake in public transportation startup GoMetro link

• invest 51% of MiBRAND marketing app purchased by Universal Technology Holdings link

• invest lending startup LulaLend raises new funding round from Accion Venture Lab link

• payments payments startup Peach Payments expanding into Kenya, Nigeria, and Namibia link

• payments ABSA partners with mobile bill payment platform walletdoc link

• hubs Sw7 launches new coworking space in Rivonia, Johannesburg link link2

• hubs Bandwidth Barn launches new coworking space in Cape Town focused on “high-speed” (300mbps) access for customers link

• ecosystem Mobile operators giving free bandwidth to university students to access study materials link

• ecosystem Lenovo launching Motorola smartphones in South Africa (starting w/ Moto Z) link

• ecosystem Thomson Reuters Data and Innovation Lab launches in Cape Town link link2

other sub-saharan africa countries

• invest Kosmos Innovation Center (KIC) invests $50k seed in Ghana-based Ghalani (farm management platform for agricultural aggregators to work with thousands of small-holding farmers) link
  

• invest Kosmos Innovation Center (KIC) invests $50k seed in Ghana-based TroTro Tractor (mobile platform for farmers to request and prepay for tractor services) link
  

• invest business loyalty Ghanian startup Loystar wins NGN 1mm (USD $3k) seed funding from Arise investment syndicate link
  

• invest Innovate Ventures launches new Somali startup accelerator program, first 12 startups accepted link
  

• startups Rwanda begins testing of drones for delivery of blood to remote hospitals w/ US healthcare delivery-by-drone startup Zipline link

• govt Ethiopia bans use of social media during current state of emergency link
  

this issue i saw a number of interesting region-wide ecosystem moves occurring, with new investment coming from Capria and Merck, and new relevant tech released from Facebook, Google, and Microsoft.

South Africa has been extremely active on the internet access front in the last 2 weeks, with public hearings over the high price of mobile data, a major ICT white paper released covering spectrum licensing and net neutrality (and much more), continued fiber-to-the-home (FTTH) growth, a planned upcoming 5G rollout in 2016, while a major planned 4G/LTE spectrum auction may be canceled.

pan-africa

• invest Capria Accelerator Fund (based in San Francisco) raises new round to expand into Sub-Saharan Africa link
  

• startups African online education marketplace eLearnAfrica launched link
  

• startups Nairobi-based e-health accelerator program Merck Accelerate Africa (run by Nest Nairobi) launches second cohort with startups from Kenya, Ghana, and USA link
  

• startups online classifieds startup Afrimalin.com launches with free classifieds for Francophone Africa link
  

• ecosystem Facebook launches Messenger Lite, focused on emerging markets with slower connections and basic Android phones, 1st SSA launch country is Kenya link
  

• ecosystem Google announces Chrome mobile improvements: video compression and slow connections support for Chrome Data Saver, and downloading web content for offline viewing link
  

• ecosystem Microsoft’s online intellectual property registration system expanded to 17 countries and being released as open source link
  

• ecosystem Facebook’s Internet.org awards $500k across the winning 6 African startups from their Innovation Challenge in Africa link
  

nigeria

• invest property classifieds startup ToLet.com.ng raises $1.2mm Series A round led by Malaysia-based Frontier Digital Ventures link link2
  

• invest Y Combinator CEO Michael Seibel and COO Qasar Younis finish their week-long Nigeria developer tour link link2
  

• startups Nigerian job-hunting startup MyJobMag expands into Kenya with MyJobMag.co.ke link
  

• startups Nigerian local artistian e-commerce marketplace MadeInAba.Com.Ng launched link
  

• startups food delivery and B2B delivery startup Metro Africa Express (MAX) acquires food delivery startup Easyappetite link
  

• startups on-demand cooking gas (a $1.26b market) delivery startup QuickGas announces the results from their first 8 month pilot link
  

• ecosystem African developer network DevCenter releases results from their Nigerian developer ecosystem survey link
  

• ecosystem IDC announces that smartphone shipments to Nigeria dropped 6.8% in Q2 2016 link
  

• ecosystem Microsoft launches WINsiders4Good Nigerian startup mentorship and support initiative with ccHub in Lagos link
  

• access MTN Nigeria’s credit rating cut to junk status by S&P Global link
  

kenya

• startups off-grid solar startup d.light raises $22.5mm for Series D round for further growth from current 1.6mm Kenyan household install base link link2
  

• startups Strathmore University’s iLab releases WILD app to aid Kenya’s Sh87b elephant eco-tourism market by reducing elephant poaching and crop damage link
  

• payments payments processor Direct Pay Online Group acquires ZA’s PayGate for $7.3mm link
  

• access US gov’t OPIC finance institution loans $4.1mm to solar-powered wireless Internet access startup Mawingu Networks link

south africa

• invest parking fintech startup WizzPass receives investment from Barclays Seeker Fund link
  

• startups fintech startup Stokfella aims to move South Africa’s USD$1.8b stokvels over to mobile link1 link2
  

• startups UberEATS launches in Johannesburg (their first African city) link
  

• payments Gauteng province to launch cashless “e-ticket” payments for minibus taxi fares link
  

• access Vodacom announces their FTTH consumer pricing link
  

• access Wireless Business Solutions (WBS) to launch LTE-A (5G) network in 2016 link link1
  

• access FTTH connections increased 89.6% in 2015, while ADSL connections dropped 16.4% link
  

• access PwC projects that South Africa’s total Internet revenue will grow to R68.5b in 2020 (11.7% annual growth rate) link link2
  

• access Parliament continued hearings on #DataMustFall as consumers, gov’t and business protest the high cost of mobile data link link2 link3
  

• govt + access ICASA may be canceling planned LTE and 4G spectrum licensing auction due to court interdict from Dept of Communications link link2 link3
  

• govt + access Minister of Telecoms releases the Information and Communications Technology (ICT) Policy white paper, including “Open Access” and net neutrality policies for existing and future networks link link2 link3
  

• space Successful “first light” images are released from the MeerKAT radio telescope array (which will become part of the Square Kilometer Array (SKA) link
  

other sub-saharan africa countries

• payments Ugandan virtual banking product MoKash (with MTN Mobile Money and Commercial Bank of Africa) reaches 600k subscribers and 2k microloans/day within 2 months of launch link link2
  

while it’s been a quiet 2 weeks on the investment front (African VCs and Angels, please share more of your funding deals publicly!), there has been a wave of mobile payment services launching in Kenya, and some interesting gov’t and internet access moves in South Africa, and the access front was marked by the unfortunate loss of Facebook’s Internet access satellite at the beginning of September.

i’ll be visiting Nigeria this week, participating in Google Launchpad Build in Lagos, and joining Lagos’ first Startup Friday event on Sept 23rd to talk with startups and listen to them pitching Y Combinator. come find the tall American guy wearing the “g africa” t-shirt and say hi. :)

this issue of Africa Notes was powered by sparkling water, f.lux, and Frank Ocean’s awesome new album.

pan-africa

• access Facebook’s $195mm Internet access satellite for African users destroyed in SpaceX accident link
  

• invest Ghana investment firm Orios Capital raising $1mm fund to invest in West Africa startups link

• payments African fintech company MFS Africa acquires global airtime topup and fintech company Sochitel link

• startups Africa Internet Group (AIG) rebrands itself and all portfolio companies to the Jumia brand link

nigeria

• ecosystem Zinox Technologies receives $25mm from European Technology Trust Fund to build technology hubs across Nigeria link
  

• ecosystem Aso Villa demo day (successful NG startup pitch event) post-event reports available link
  

• invest first Startup Friday event happening in Lagos on Sept 23rd link
  

• invest S&P downgrades Nigeria one level to B (five levels below junk) due to weakened economy link

• startups digital bank & fintech platform startup Lidya launched w/ veteran entrepreneurs to disrupt African lending link link2
  

• startups Nigerian entertainment startup Iroko launches IrokoX platform for African content creators to create/distribute/monetize digital content link

• startups Andela to start investing in startups founded by Andela graduates link
  

• govt Nigerian gov’t continues push for local hosting of gov’t data link

kenya

• invest Capsule raises $100k angel round for its “Uber for ambulances” startup Flare link
  

• startups South African transport info startup WhereIsMyTransport expanding into Kenya link
  

• payments VISA joins w/ Kenyan banks to launch mVISA mobile payment service w/ developer API link

• payments M-TIBA mobile health wallet rolled out nationwide, lets customers save money for healthcare for themselves and others link link2

• payments KCB M-PESA mobile bank account has given Sh10.3 billion (~USD$100mm) in loans since launch 2 years ago link

• govt 12,000 primary school teachers to get Microsoft certification in ICT skills to support classroom laptop project link

• govt mobile-traded gov’t security M-Akiba (“the M-PESA bond”) to launch next month, assuming no further delays link

• govt Kenya Revenue Authority launches app to let consumers check for counterfeit products using tax stamp scanning link

south africa

• access contested gov’t spectrum auction for 700mhz, 800mhz, & 2.6ghz extended by 30 days link link2 link3

• access #datamustfall trends in South Africa as customers protest the high cost of mobile data and political parties join the protest link

• access cabinet sets up “war room” to monitor rollout of South Africa’s “SA Connect” broadband strategy link link2
  

• access ISP Afrihost to buyback shares and leave parent company MTN link
  

• ecosystem slowdown in set-top box production for South Africa’s digital TV transition in court battle over STB encryption link link2

• ecosystem Tshimologong Precinct startup & incubation precinct in Jo’burg launched by JCSE & Wits University link

• ecosystem Naspers reaches a $68b market cap on its JSE listing link
  

• startups Uber rolling out UberEATS in ZA by December, beginning in Jo’burg link

• payments MTN shuts down their mobile money product in ZA, following Vodacom ending M-PESA in ZA link
  

• payments Mastercard Africa w/ startup iKhokha trials cashless payment for informal township businesses link

• payments prepaid power meters increase payments in Soweto township by ZAR39mm/year link

• devices Vodacom launches branded Android smartphones at ZAR499 (USD$35) price point and up link
  

• govt protection of personal information (POPI) data privacy act rolls towards approval this year link
  

Welcome to the first issue of Africa Notes! This is my humble contribution to the growing Sub-Saharan Africa startup ecosystem: an aggregation of links and notes about what i’m tracking in our region, available to all who might be interested. I’ll be focusing on what seems most relevant/influential/unique to me, so I won’t be covering every single event/hackathon/contest happening in Africa (apologies in advance!).

As I put this together I’ve been impressed by how active our African ecosystem truly is – even this first edition covering the last 2 weeks describes a wave of deals completed, major Silicon Valley investors and execs coming to Africa, and strong startup/developer ecosystem growth.

If you see important deals that I haven’t listed here, please contribute information I’m missing through the “What am I missing?” link at the top of this page. Thanks to Josh’s excellent Vikarah newsletter for inspiring this project, and for sharing his publishing flow process.

And if you want to keep following my updates as they come out, don’t forget to sign up for the email version of Africa Notes on the right side of this page. Enjoy!

pan-africa

• invest $1mm Innovate Africa fund has opened to support projects that improve “audience engagement with African civic media” link
  

• startup Demo Africa’s 2016 winning startups announced (congrats all!) link
  

• ecosystem Zuck and Facebook’s Partnerships team visited tech hubs, startups, and gov’t in Nigeria and Kenya on a surprise Africa tour link

nigeria

• invest Y Combinator is coming to Nigeria (Lagos & Abuja) on Sept 23-27 link
  

• invest Events venue booking site ogaVenue raised a $45k seed round led by Spark and Hotels.ng link
  

• invest She Leads Africa (SLA) accepted the first 10 startups into their 2016 SLA Accelerator Program link
  

• invest Tech investment fund GreenHouse Capital launched by Venture Garden Group link
  

• startup Nollywood content hits Apple TV with NollyLand’s new app link
  

• startup Consumer healthcare app Kangpe wins Seedstars World Lagos link
  

• startup Healthcare clinic management startup Curcacel Health chosen for Startup-Up Chile’s S Factory accelerator program link
  

• payment Ecommerce giant Jumia launches JumiaPay in Nigeria, then 23 more countries link
  

• payments Mobile payment startup Paga reaches 5mm users in 4 years link
  

• access Nigeria now at 13% broadband penetration link

kenya

• invest Mobile survey company mSurvey raised $1mm round from Safaricom’s Spark Venture Fund link
  

• govt Bill requiring licensing of all “ICT practitioners” (!) rejected by Kenyan gov’t link
  

• govt US startup Fulcrum’s app used for Kenya’s tenBoma anti-poaching initiative link

south africa

• invest South African Business Angel Network (SABAN) launched at Demo Africa 2016 link

• invest Payments startup Zoona raised a $15mm Series B round led by IFC and including 4Di Capital link

• invest Anti-piracy startup Custos Media Technologies raised a ZAR 5.9mm investment from SA govt’s Technology Innovation Agency (TIA) link

• invest Transit information startup WhereIsMyTransport raises $1.536mm round led by Goodwell Investments link

• payments South African Reserve Bank “open to” considering blockchain and cryptocurrencies link

• access 1gbps fiber access continues to grow in Cape Town with Vumatel’s rollout link

• ecosystem IBM opens its second research lab in Africa at Wits University link

other sub-saharan africa countries

• invest off-grid solar Ugandan startup BBOXX raised a $20m Series C round link

• ecosystem “Silicon Accra” tech city project announced in Ghana for 2021 launch link