African Entrepreneurship

  • Female-led and female-founded ventures attracted even less funding in 2022 than they had in 2021.
  • Female-led start-ups in Africa have raised $188m (4%) in 2022, while male-led ventures raised $4.6bn (96%).  
  • The number of $100k+ deals announced by female-led start-ups has also seen a YoY decrease, (128 in 2022 vs. 141 in 2021) and relatively (13% vs. 16%). 

Female-led and female-founded ventures attracted even less funding in 2022 than they had in 2021, latest data from Africa’s The Big Deal shows.

According to the report, female-led start-ups in Africa have raised $188m (4%) in 2022, while male-led ventures raised $4.6bn (96%). In other words, 25x times less funding has been invested in female-led start-ups in 2022, compared to their male-led counterparts. 

“Year-on-year, the amount of funding raised by female CEOs has decreased between 2021 and 2022, both in absolute ($188m in 2022 vs. $290m in 2021) and relative numbers (3.9

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The recent leaked Pandora papers have shown how African leaders have directed their investments towards other countries and kept the investments a secret to avoid taxation and hide their wealth.

Leaders exposed by the papers include Presidents Denis Sassou-Nguesso of DRC, Uhuru Kenyatta of Kenya, and Patrick Achi of Cote d’Ivoire, among 46 other politicians.

The papers showed that Sassou owned a company that controlled diamond mines. Seven members of the Kenyatta family were linked to at least seven offshore companies and foundations. Through Union Banque Privée (UBP), the Kenyatta's set up three foundations to avoid inheritance tax and hide their extensive wealth.

The foundations were suspended after failing to pay annual taxes, law firm Algocal says.…

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African Development Bank Group has approved two grants worth $83.6 million to boost cross-border trade in electricity between Ethiopia and Djibouti and to deepen integration in the Horn of Africa sub-region.

In a statement, the bank’s board said the funds comprise a $69.65 million grant to Ethiopia and a second grant of $13.93 million to Djibouti.

Both have been sourced from the African Development Fund, which is the African Development Bank’s concessional financing window.

The Ethiopia–Djibouti Second Power Interconnection project will entail the construction of nearly 300 km of interconnector line, 170 km of transmission lines, and new construction or renovation of substations in the two countries.

Commenting on the approval,  Bank’s Director of Power Systems Development Batchi Baldeh said the first interconnection line is reaching its power transfer capacity limit due to several developments in both countries, such as the industrial development in the eastern part of Ethiopia, the …

Kenya is one of the most diversified and fastest growing economies in Africa, with an average growth rate of 5.7%, inching closer by the day to its ambitious vision of becoming a middle-income country in the next decade. Central to this robust growth has been the invaluable contribution made by co-operatives, popularly known as Savings and Credit Co-operative Societies (SACCOS); which not only play a pivotal role towards the country’s Gross Domestic Product (GDP), but also leave an ineffaceable mark in the lives of millions of members, so much so that the country was recently selected in a series of country studies by the renowned international co-operative research group, the U.S Overseas Co-operative Development Council (OCDC).  …

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In 2013, Rio Tinto had to write down its Mozambican assets by US$3 billion as a result of failure to transport its coal to port for export. The company had invested huge sums of money based on assumptions of vast coking coal reserves that it would export. Upon the insurgence of extremist rebel groups, with escalating violent activities, the rail network was disrupted and there were increased security risks for normal operations to continue. 

The company suffered great loss as it failed to recoup its capital outlay and eventually failed to continue its operations. The high-security risks at a time when investment capital is yet to be recouped, have the potential to turn away more foreign capital injections in the gas-rich country. …

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The Grassroots Business Fund (GBF), a global impact organization that utilizes the power of blended capital to invest in traditionally under-financed businesses, has announced the spin-off of its Latin America team into a new fully-fledged unit operating as Andes Impact Partners – AIP with its headquarters in Lima, Peru and is planning on expanding its African operations from Nairobi.   

AIP launched APF-I in November 2020 with an initial focus on Peru and Colombia and a possibility to expand to other markets in the region. The fund targets inclusive businesses which incorporate underserved, vulnerable or low-income communities in their supply chains, helping to improve incomes and the quality of life of these communities. Target businesses must be committed to gender equity and to promoting equal opportunities. …

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For many businesses, 2020 would be a year they would not want to remember. The COVID-19 pandemic ravaged most of businesses globally with reduced sales, low cash flow, and restrictions to tame the spread of the pandemic. The situation was worse in the travel and tourism industry.

The United Nations World Tourism Organization estimates that global international tourist arrivals have decreased by 58 percent to 78 percent in 2020, leading to a potential loss of US$0.9 to 1.2 trillion in international tourism receipts. In many of the world’s cities, planned travel went down by

80 to 90 percent. More than 2.5 million Kenyans working in the tourism sector lost their jobs in the first half of 2020 due to COVID-19 related disruptions, according to the government. The travel industry in Kenya, which was equally affected by the COVID-19 disruption, is positioning itself on the recovery path as the country registers …

The power of music to unify can not be understated. South African hit song Jerusalema got the world on its feet providing much-needed relief amid a global pandemic, symbolizing hope and togetherness even amidst a crisis. 

If there is one thing common in Africa it’s music and dance. At weddings, Africans sing and dance. At funerals, there is song and dance. In fact, music and dance are the tools Africans use to express any emotion. It’s no wonder that the entertainment industry is making strides and gaining recognition on a global scale.

And it’s not just music, the African creative scene boasts of success in the film industry, visual, and performing arts among others. The power of art extends beyond entertainment and sentiment, it is also a lucrative arena with massive earning potential. In the US, the creative industry rakes in over 800 billion per year a simple testament to

Africa's tech habitude is on the rise. Internet usage has risen significantly on the continent. On top of that, the advent of the coronavirus pandemic accelerated the prospect of growth in the digital sphere. E-commerce is one such opportunity that affords businesses access to broader market opportunities in every arena. According to McKinsey, a worldwide consulting firm, the e-commerce industry in Africa is expected to grow to a $75 billion industry by 2025.

E-commerce is growing. It is accelerated by a growing and youthful population that is increasingly exposed and has an appetite for greater efficiency and improvement of business to first-world standards. The African diaspora has also contributed to this growing demand as people have become more exposed to what is going on around the world. Technology itself dissolves existing borders and opens up trade regionally and internationally.…

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