Category: Money

The Global Innovation Index saw Africa climb up the global tech ladder to join the rest of the world in running an economy driven by innovation.

Backed by a young, tech-enthusiastic population, the continent recorded its largest smartphone shipment, as 5G smartphone sales surpassed 4G ones for the first time.

In the last five years, young entrepreneurs and business leaders have realised the urgency of creating solutions around cloud computing uptake, blockchain development, and artificial intelligence.

As a result, the startup ecosystem is projected to reach its highest funding of $7 billion in 2022 as founders and innovators look for more ways to solve the continent’s challenges.

Increased access and connectivity will allow Africans to innovate, collaborate and create technological solutions for current problems.

In 2023, here are the five innovators to watch include Gregory Rockson, Co-founder and CEO of mPharma, Africa’s largest pharmacy-led primary care provider.

Recently named one of the 100 most pioneering technology startups globally by the World Economic Forum, mPharma currently serves over 400,000 patients in Ghana, Nigeria, Kenya, Zambia, Malawi, Rwanda, Ethiopia, Uganda and Gabon.

Since its seed round in 2015, mPharma has raised over $40 million. In 2019, the company acquired Kenya’s second-largest pharmacy chain, Haltons. In September 2022, the company acquired the majority stake at HealthPlus, one of Nigeria’s leading pharmacy chains. According to Crunchbase, the startup is funded by 28 investors and has raised $89.8 million in funding over 14 rounds (the latest funding was raised on Jan 5, 2022, from a Series D round).

Since the pandemic, the company has leveraged its partnership with several partners to deploy free COVID-19 tests and millions of COVID-19 test kits across government institutions, private labs, and organisations in eight African countries. Rockson believes working with a DFI with extensive government contacts across Africa would improve its appeal and help strengthen its corporate governance.

Gregory Rockson holds a Bachelor’s Degree in Political Science from Westminster College. A World Economic Forum Global Shaper, he was a Public Policy and International Affairs Fellow (PPIA) from Princeton University and a Rotary Scholar at the University of Copenhagen.

Oyewale Oyepeju is the co-founder and chief technology officer of Vendease Africa, a marketplace that lets African restaurants order directly from farms and food manufacturers. It allows food service business owners and managers to digitise, track, and automate their procurement and inventory management processes. It also provides businesses with analytics to improve profitability and eliminate waste.

A serial entrepreneur, innovator and IBM business partner who has delivered incredible technologies for global companies such as Sony Pictures & Entertainment and MTN, Wale Oyepeju has been critical to Vendease’s transformation from a procurement marketplace to a full-fledged data company. Founded in 2020, Vendease has raised a total of $43.3M in funding over four rounds, with the latest financing raised on Sep 26, 2022, from a Series A round, and has an estimated annual revenue of $19.2 million.

In a time when governments, private institutions, and agricultural experts are concerned about food security in Africa and creating and implementing new policies to address waste, Vendease’s technology innovation and current expansion strategy will be decisive by bringing transparency, convenience and financing into the food business value chain, and massively improving efficiency and business sustainability.

Wale possesses more than a decade of experience developing innovative enterprise solutions for businesses in the Telecoms, Oil and Gas, Banking and Finance, Media and Entertainment industries. He holds an MBA from Anglia Ruskin University, United Kingdom, a bachelor’s degree from Olabisi Onabanjo University, Ogun State, and is an IBM Certified Administrator.

Experts describe Onyekachi’s TradeDepot as the engine of retail distribution in Africa. But prior to that, he co-founded C2G Consulting, a technology consulting practice that has grown to become a leading SAP Partner in West Africa. In 2016, Onyekachi launched TradeDepot, a distribution and retail aggregator with a mission to consolidate Nigeria’s fragmented informal retail supply chain by connecting the world’s top consumer goods manufacturers to retailers in Africa.

In 2021, the company raised $110 million in an equity and debt funding round to support the delivery of Buy-Now-Pay-Later services to five million SME retailers and drive further expansion of its merchant platform across the continent. Over the past five years, the company has raised over $123 million over four rounds with IFC, Novastar, and CDC Group as its lead investors.

In the thick of the pandemic, TradeDepot’s core business has been building supply chains with technology and connecting merchants one after the other. The company now offers a full range of products to launch digital wallets and financial services, especially credit products or BNPL. This financing model, coupled with technology to support logistics operations, has led to a 200 per cent increase in transaction volumes for retail store owners.

Ahmad Wadi is the founder and CEO of MoneyFellows, one of the leading Egyptian fintech platforms in North Africa and the Middle East. He caught the attention of market giants such as Microsoft and Daimler when he first established his first project, an object-tracking software, and worked on several projects for both brands.

Founded in late 2016, MoneyFellows is digitising the concept of money circles (ROSCAs), commonly known as gam’eya, in Egypt and other Arab countries. It is the first to offer next-generation digital RoSCAs globally, where users can effectively manage and plan their financial obligations and achieve their financial goals through the platform. With hundreds of thousands of monthly active users and a solid 8x YoY growth, the company has become one of the favourite financial apps for Egyptians.

MoneyFellows offers the association model in its well-known form but with digital tools through a smartphone application, and the company has managed to attract about 4 million customers so far. It taps into a less technologically-literate sector of society that is either unbanked or underbanked.

So the usability of the MoneyFellows app is absolutely core to its success. The app currently counts over 150,000 active users since its launch and has since added over 200 corporate partners who offer salary deduction pay-in processes for their employees to join money circles through the app seamlessly.

Yanmo Omoregbe, Co-Founder & Chief Operating Officer at Bamboo

Before the cryptocurrency craze among young millennials and Gen Z in Nigeria, there was Bamboo – the app that has massively changed the approach to investment among millions of Nigerians and made it possible for an average African to become shareholders in global companies. The number of users on the platform has more than doubled from around 200,000 in 2021 to almost 500,000 in 2022.

Founded in 2020 by Yanmo Omorogbe and Richmond Bassey, Bamboo’s estimated annual revenue is currently pegged at $7.4 million. The company partners with DriveWealth LLC, a pioneer in global digital trading technology based in the United States; Lambeth Capital, a Nigerian stockbroking firm officially registered with the Securities and Exchange Commission (SEC); and Flutterwave, one of Africa’s leading payment systems, to ensure the safety of the capital of investors using the platform.

The startup raised $15 million in January 2022 and another $17.4 million in March 2022 and experienced an employment growth rate of 68 per cent. In September, the startup announced its official launch in Ghana. Yanmo Omoregbe graduated from the Imperial College of London and studied Chemical Engineering.

Lead Risk and Compliance, eTranzact International Plc, Edward Onyenweaku, has advocated the use of blockchain technology in the financial system to improve transparency and eliminate money laundering.

He made the call during a panel session tagged, ‘The Growing Threat of Money Laundering in the Financial Sector – Know Your Customer (KYC) and Anti-Money Laundering (AML) as a Disabler’ at the 2023 edition of AfricaNXT conference in Lagos.

Onyenweaku said blockchain technology increases the level of trust, security, transparency and traceability and security of shared data. He added that blockchain automates the process of fraud detection with the help of built-in algorithms.

According to him, transactions are continuously monitored as alerts of any suspicious activities are created.

“Blockchain maintains a complete history of past transactions within the network, which means that the user can track the data with full transparency.

“It also supports compliance automation by providing clean, accessible, real-time data, instead of asking people and third parties information on reviewers and auditors can verify transactions on blockchain records instantly, without contacting intermediaries,” he said.

Onyenweaku decried the impact of money laundering in the financial sector, saying it erodes profits due to sanctions by the regulators as well as low confidence in the market.

He listed other consequences, including loss of financial institutional reputation, credibility, revenue and investors’ confidence.

The Africa Fintech Summit is expected to drive major investment flows to Africa with over $4 billion capital to be represented, Lead Organiser & Content Director, Africa Fintech Summit, Andrew Barden announced Monday.

Speaking ahead of the summit holding on April 14, in Washington D.C, he said the programme is expected to bring issues, trends, and ideas revolutionizing the continental fintech ecosystem.

In a virtual interview with The Nation, Barden said the event is supported by an advisory board of thought leaders and fintech pioneers and remains a unique space where ideas are explored, investments mobilised, and collaborations formed across sectors and geographies.

“Twice a year, we bring the issues, entrepreneurs, and opportunities revolutionizing finance in Africa to the world’s stage. The AFTS takes place in Washington, D.C., every April during the spring meetings of the World Bank/IFC and every November in a different African city,” a report on the event website said.

The event, aside helping to gather a vibrant community of fintech entrepreneurs, investors, regulators, and everyone in between working together to solve the largest financial issues, also brings about new topics of conversation and new corporate partnerships.

Barden said major companies in the Silicon Valley which has interest in investing in Africa will be on ground for partnership and investment.

He said that top global financial institutions and Fintech companies, financial sector regulators use the summit as an opportunity to explore options in the finch space.

He said the currency redesign policy in Nigeria has popularized mobile money even as fintech will continue to bring transformation to the payment ecosystem.

He explained that with mobile money, it is easier to target populations where banks are not able to reach and bring financial services closer to the people.

Barden said agents of Fintechs are helping to democratize access to finance and loan extension to SMEs.

“What makes Africa Fintech Summit special is that we are not panel or exhibition focused, our focus in enacting change and fostering the one-on-one connections that change industry and build a better tomorrow. Panels place innovators, regulators, investors, and enablers together to focus on leading issues impacting Africa and the diaspora. Industry insight coming directly from the change makers themselves,” the organisers said.

MoneyMaster PSB, a payment services bank has unveiled ‘G-Kala’ to deepen the financial services accessibility and inclusion in the country.

Speaking at the product launch in Lagos,  MoneyMaster PSB Managing Director, Demola Elutilo, disclosed that ’G-kala’ was conceived to address the major problem of deepening financial inclusion in the country and also create employment opportunities for Nigerians.

The event, which had in attendance industry stakeholders, regulators, market and trade associations, student union representatives, trade partners, and members of the press among others, also marked the formal launch of the Payment Service Bank (PSB). 

Elutilo assured that ‘G-kala’ will “bring a huge number of the unbanked populace into the financial system of the country”. According to him, the operations of MoneyMaster PSB would empower many Nigerians financially and bring, most especially, people in the rural areas into the banking system by taking banking to them.

He revealed that the innovative features of G-kala, are set to revolutionize the Nigerian payment system while adding that it would promote the cashless initiative of the government.

“MoneyMaster PSB will bring convenience and inclusion across all our target segments of the population. With G-kala, your phone is your bank. Aside from the benefits to our customers, we are onboarding a very large number of agents for cash in and cash out, through which we are creating new jobs in our various communities, which is also a boost to the nation’s economy. This is the beginning of our journey to revolutionize the financial services landscape in the country”, he said.

The Nigeria Interbank Settlement Scheme (NIBSS) lauded MoneyMaster PSB for introducing G-kala into the Nigerian financial industry to serve the critical mass of people who have not been given the opportunity to enjoy banking services.  General Manager, Business Development, NIBSS, Samuel Oluyemi, disclosed that NIBSS had worked with MoneyMaster PSB from the beginning to ensure a seamless integration with the countrywide banking system. 

He added that the payment service bank is a great plus to promoting financial inclusion and widening the scope of service providers across the country,

He revealed that the unbanked population has so much expectation for the payment service banks such as MoneyMaster. He called on MoneyMaster PSB to seize the initiative of fast deployment of services to address the needs of that critical segment of the population.

• Rights issue records full subscription

Neimeth International Pharmaceuticals Plc has raised N3.67 billion from its existing shareholders after its rights orded full subscription.

Regulatory notice by Neimeth indicated that it had received regulatory approval to fully allot shares under its N3.67 billion rights issue.

Neimeth offered 2.374 billion ordinary shares of 50 kobo each to existing shareholders at N1.55 per share. The rights issue was pre-allotted to existing shareholders on the basis of five new shares for every four shares currently held. Application list for the rights issue opens on August 3, 2022.

Shareholders of the company had in March, 2022 at the 63rd annual general meeting (AGM) approved the creation of about 2.374 billion additional ordinary shares which would be allotted at the rate of five new shares for every  four shares currently held in the company.

Chairman, Neimeth International Pharmaceuticals Plc, Dr. Ambrosie Orjiako, said the company was raising funds two key reasons of constructing a world-class factory compliant to World Health Organisation (WHO) current Standards of Good Manufacturing Practice (cGMP)  at Amawbia in  Anambra State and to boost its working capital.

He said the projects will not only sustain the current upbeat performance of the company but will give it a quantum leap into the league of leading global health care commodities producers.

He noted that the fortune of Neimeth has taken an upward turn since 2018 when it returned to profitability after nearly a decade of predominantly losses.  From a loss of N404.9 million in 2017 the company made profit of N166.4 million in 2018, N304.4 million in 2019, N297.3 million in 2020 at the upsurge of COVID pandemic and N365.2 million in 2021.

Orjiako assured that the company is working to ensure that the growth trajectory is sustained.

Managing Director, Neimeth International Pharmaceuticals Plc, Pharm Matthew Azoji, had said the  capital market was the most viable and cheaper option to source long term  funds because of the high cost of funds through other sources.

“We cannot finance such long term project as the new plant in  Amawbia with short term funds from banks. That will not be expedient and cost effective,” Azoji said.

He recalled that in the immediate past year, shareholders had approved a two-pronged expansion plan, including the construction of a new plant in Anambra State and a facility upgrade of the Oregun plant.

He explained that the Oregun factory upgrade is already close to completion with funds from the Bank of Industry (BOI) and internal capital noting that on completion, the Oregun plant alone will add additional 300 per cent to the company’s production capacity.

Azoji expressed optimism that shareholders will take their rights and the offer will be fully subscribed.

He outlined that Neimeth has emerged from an era of constant losses to a period of steady growth in both turnover and profitability.

Investors seeking competitive returns in the year should focus on a mixed portfolio that includes the leading stocks at the equities market and high-yielding fixed-income securities.

Head of Investment Research, Parthian Securities, Oluwaseun Dosunmu and Head, Global Markets, Parthian Partners, Ronke Akinyemi yesterday advised investors to stay short and liquid,  take advantage of higher yields and invest in dollar assets – Eurobonds as well as dollar placements.

Speaking on the theme, “Assessing Nigeria’s Financial Sector and Outlook for the Economy in 2023″, they noted that asset diversification remains a major factor in attaining success in investment management.

Dosunmu said those with interest in equities market should focus on top-20 fundamentally strong stocks in terms of market capitalisation at the Nigerian Exchange; stocks that are liquid and those that pay good dividends.

He said the dominance of domestic investors in the Nigerian equities market is a good development because it shields the market from the impact of funds outflow from emerging markets and global headwinds.

On what to expect from the market that will guide investment decisions, Mrs. Akinyemi said there would be public-private partnerships to reduce pressure on budget funding, just as there would be debt issuances on the back of these partnerships and opportunities to invest in these issues.

“Uptick in interest rates is however anticipated in second quarter, resulting from a reduced level of liquidity and huge budget deficit.

“We expect the market to commence this year with some depression in yield, owing to expected liquidity elevation in first quarter,” Akinyemi said.

Generally, the investment expert noted that the market is expected to be choppy and largely driven by political transitioning, oil price fluctuations, trade wars, possibility of interest rate hikes by other economies and risk off or on sentiments.

According to her, the Monetary Policy Rate (MPR) is likely to increase and credit conditions may remain tight in first quarter 2023

Akinyemi had recalled that after the second quarter 2022 selloffs triggered by higher interest rate in the fixed income market, the stock market was volatile with many stocks trading at substantial discounts and delivering greater dividend yields than fixed income space.

As such, the stock market created a massive opportunity for bargain hunting from mid second quarter to fourth quarter 2022, pushing the 2022 year-to- date return to 19.98 per cent.

On a positive note, she said there was  improved growth level as the economy began to recover from the impact of the COVID-19 pandemic.

Nigeria became one of the first sovereigns to access funds from the international capital market since the start of the Russian-Ukraine war, when it raised about $1.25 billion on a 7-year paper at a yield of 8.375 percent.

Since issuance in March 2022, the yields on the Nigeria seven-year Eurobond issue have increased by 2.5 per cent points to 10.9 per cent as of June 30, 2022, from the 8.4 per cent recorded on March 18, 2022.

She said non-performing loans are likely to increase among lenders as high borrowing cost might raise default risks. PSB license might erode banks’ non-interest revenue.

“Regulatory blocks remain a risk for the industry, even as the sector will benefit from improved economic activities. High borrowing cost to weigh on business profits,” Akinyemi said.

They spoke at February 2023 forum of the Finance Correspondents Association of Nigeria ( FICAN).

Wema Bank Plc will be hosting its maiden Business Growth and Innovation Conference for small and medium-scale enterprises (SMEs) in Enugu. The programme will provide adequate knowledge and skills to boost SMEs businesses.

The conference, being organized in partnership with the Enugu SME Center, the Enugu State Government’s SME development agency, will hold on Wednesday, February 15th and Thursday, February 16th, 2023.

The Head, SME Banking at Wema Bank, Arthur Nkemeh, said that the two-day conference, which will cover key areas of business management, such as strategy and innovation, digital transformation, sales and marketing, and financial management, will up-skill business owners and managers and boost the capacity and growth of SMEs in Enugu.

“The Enugu Business Growth and Innovation Conference is intended to bridge the knowledge gap that exists in the SMEs space. It will equip attendees with best-in-class knowledge and skills in business management. The capacity building program will be delivered by world-class facilitators who are subject matter experts in various aspects of business management, in keeping to our position as the leading bank in the SME Advisory space in Nigeria.”

He noted that, being the leading bank in the SME banking segment in Nigeria, Wema Ban has been a champion of the growth of the SME sector in the country through its various financial and non-financial (business advisory) services for SMEs.

Startup accelerators and experts in startup business have highlighted major considerations by investors in financing, and mentoring startup businesses.

The experts in the technology industry listed criteria that startups should have when pitching their business to startup accelerators and potential investors. 

The insights came during Sidebrief’s panel discussion titled ‘Exploring Accelerators as a Catalyst for Your Startup Growth’,.

At the event,   participants educated on accelerators, and how they can be pivotal to the growth of early-stage startups. 

Some of the criteria listed were a solid team, who are willing to learn, passionate about the problem they set out to solve, have an innovative mind-set and who are also obsessed about the customers or people willing to pay for the products.

Speaking at the event, Regional Head at Hill Justice Accelerator, Kelechi Achinonu, said the passion and commitment of startups are always major considerations, including their ability to meet customers needs.

She said having an innovative mindset is also another criterion because they have seen situations where founders because of the success in fintech, keep trying to do the same thing repeatedly. “But within our space, if you are solving the problem, we will know.”

Managing Director at Techstars Lagos, Oyin Solebo, said having a learning mind-set is very important because as a founder nobody knows your business better than you, but that doesn’t mean that you cannot gain super valuable insights by being open, vulnerable, and sharing what is going on with a trusted advisor or mentor.

“Another area is traction and evidence that people are willing to pay for whatever the product you is selling. This is super important because a lot of startups and founders especially from Nigeria are technical, they rush straight to making awesome products and technology, but they have not proven that anyone will pay,” she added. 

Solebo also stated that if you don’t have the product or technology but that if you have an excel spreadsheet that contains the data that shows customers are paying for something, she would rather see that because it gives her the impression that you understand the customers, you are taking feedback.