Sunday, April 21

Money Deals

cryptocurrency investments
  • A key component of successful cryptocurrency investment is utilizing cryptocurrency exchanges effectively.
  • The USDT/SOL exchange pair refers to the trading of Tether (USDT) against Solana (SOL) on a cryptocurrency exchange.
  • Solana, on the other hand, is a blockchain platform designed for decentralized applications and crypto-native projects.

Cryptocurrency investments have gained significant popularity in recent years, providing individuals with opportunities to grow their capital in the digital asset space. One of the key components of successful cryptocurrency investment is utilizing cryptocurrency exchanges effectively. In this blog, we will explore the concept of using exchanges to grow your capital, with a specific focus on the USDT/SOL exchange pair.

What is the USDT/SOL exchange pair?

The USDT/SOL exchange pair refers to the trading of Tether (USDT) against Solana (SOL) on a cryptocurrency exchange. Tether is a stablecoin pegged to the value of the US dollar, providing investors with a stable and reliable cryptocurrency

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African startups
  • 121 African startups secured $466M, marking a 27 per cent drop from the previous quarter; women-led startups got 6.5 per cent of the capital.
  • About 87 per cent of startup funding in the three months to March went to entities in Nigeria, Kenya, Egypt, and South Africa.
  • Gender imbalance persists as only 6.5 per cent of the financing went to female-led startups in Africa.

The big four economies of Nigeria, South Africa, Kenya, and Egypt continue to attract the highest share of funding going to startups in Africa, even as the ecosystem suffered a 27 per cent drop in financing to $466 million in the three months to March 2024.

The latest analysis from Africa: The Big Deal shows that 87 per cent of startup funding in the three months to March went to upcoming entities in Nigeria, Kenya, Egypt and South Africa.

Attracting $160 million, Nigeria’s economy accounted for …

insurtech innovation
  • mTek, an insurtech innovation platform, has secured a $1.25 million investment from Verod-Kepple Africa Ventures and Founders Factory Africa to fuel its expansion across East Africa.
  • The firm aims to streamline the insurance process, enhance customer experiences, and improve operational efficiency.
  • This investment and expansion plans underscore mTek’s commitment to making insurance more accessible and affordable.

The insurance sector across East Africa is poised to experience intense activity following plans by the digital platform mTek to revamp the industry. mTek, a pioneering digital insurance platform, has secured $1.25 million (approximately Sh167.8 million) in funding from Verod-Kepple Africa Ventures (VKAV) and Founders Factory Africa (FFA) to spearheaded this investment, which is poised to catalyze its strategic expansion across East African region.

This capital infusion will strengthen mTek’s position as a leader in insurtech innovation, using state-of-the-art technology to revolutionize the uptake of cover services.

At the heart of mTek’s mission is …

West African Eurobond
  • Experts project that Côte d’Ivoire seeks to sell its Eurobond and around 8.50 per cent to 8.75 per cent for a ticket size of between US$1 billion to US$1.25 billion.
  • Ghana, Senegal, Nigeria, and Côte d’Ivoire have been key players, with the values of their Eurobond issuances typically ranging from $200 million to $1 billion.
  • The annual value of Eurobonds issued by West African governments witnessed a remarkable surge, increasing from $200 million in 2007 to $2.25 billion in 2014.

As the markets open in the new year, all eyes turn to Côte d’Ivoire, which has announced a plan to lead the continent in issuing a Eurobond—the first in Africa after a nearly two-year break.

Positioned on the verge of economic resurgence in 2024, Côte d’Ivoire is poised to become the first sub-Saharan African nation to issue a Eurobond as the global financial markets ease following a period of high …

fixed-income securities
  • Rising volatility in Kenya’s Fixed Income Market derives from a combination of global and domestic factors.
  • The yield curve soared fastest at the head and upper belly of the curve, rising by a cumulative 661bps on the three-month treasury bill.
  • There is hope as it is anticipated, that a rebound in trading activity will happen in 2024.

The Kenyan Fixed Income Market displayed remarkable flexibility last year to experience one of the most rapid annual increases in yields resulting in a notable inversion of the effective yield curve.

According to financial experts, the rising volatility in the fixed income space derives from a combination of global and domestic factors.

On the external front, the rapid monetary policy tightening in 2022 and 2023 led investors to price-in bearish capital gain expectations for bonds.

On the domestic front, the rising concerns around fiscal sustainability indicators, coupled with an elevated inflationary regime in …

IFC
  • International Finance Corporation targets specific projects in Côte d’Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa.
  • IFC’s $30 million (Sh4.8 billion), own-account investment will help Africa Infrastructure Investment Fund 4 Partnership (AIIF4) exceed its final close target of $500 million (Sh80.4 billion).
  • A pan-African infrastructure private equity firm called the Africa50 Infrastructure Acceleration firm I is raising up to $500 million for investments

Kenya is among six African countries that International Finance Corporation (IFC) will pump $30 million (about KSh4.8 billion) equity investment to fund works on essential infrastructure.

The fund, managed by Africa Infrastructure Investment Managers (AIIM), part of the Old Mutual Group, will support projects in the telecoms, renewable energy, and transport sectors across Africa but with a specific focus on Côte d’Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa.

In the telecoms sector, the fund will focus on financing data centers, fiber networks, and communications towers. In …

food security in Africa
  • The IMF’s support fund refers to the designated Special Drawing Right (SDR), which serves as an international reserve asset to supplement the official reserves of its member nations.
  • It represents a potential claim on the members’ freely usable currencies, primarily intended to provide liquidity to a nation in the event of an economic crisis.
  • As of September, Kenya’s SDR quota at the IMF stood at US$542.8 million, equivalent to KSh91.8 billion.

Leaders from developing countries continue to pursue the implementation of the proposed re-channeling of the IMF’s support fund through development banks, aiming for affordability and increased impact scale.

This was evident on the sidelines of the recent COP28 summit, where African leaders emphasized the acceleration of the process towards realizing the proposal. The summit took place between November 30 and December 12 last year in Dubai.

Proposal: IMF’s support fund to come through AfDB

African Development Bank (AfDB) Group …

venture capital
  • In East Africa, Kenya’s venture capital share grew from 86 percent in 2022 to 91 percent in 2023.
  • Eastern Africa’s largest economy attracted $880 million (Sh139.9 billion) in 2023, representing 31 percent of all startup investments on the continent.
  • Africa: The Big Deal report shows that startups in Kenya that raised $100,000 (Sh16 million) and above stood at 93.

Kenyan startups secured an impressive $800 million in venture capital funding in 2023, surpassing Egypt, Nigeria, and South Africa to emerge as the leading recipient of investments on the continent.

The latest findings from Africa: The Big Deal, a platform specializing in startup deals, reveal that Kenya’s share accounted for 28 percent of the total funds raised across Africa.

The report highlights that Egypt, which took the lead in 2022, secured the second position with $640 million in capital funding. South Africa followed closely with $600 million, while Nigeria …

MIGA energy security DRC
  • The International Solar Alliance (ISA) is setting up a 15MW project under its Global Solar Facility (GSF) backed by the World Bank’s Multilateral Investment Guarantee Agency (MIGA).
  • In collaboration with solar power firm Nuru, the project will be spread across three provinces in the Eastern DRC.
  • Nuru plans to deploy an additional 39MW in subsequent phases, aiming to provide power to up to 5 million people by 2025.

Nuru, a pioneering solar power company, has embarked on an ambitious project with the mission of constructing a 15-megawatt (MW) solar metro grid capacity in the Democratic Republic of Congo (DRC).

This groundbreaking initiative is set to unfold across three provinces in Eastern Congo, where the abundant availability of solar energy will be harnessed not only as a power source but also as a beacon of hope for a region often shrouded in the shadows of energy poverty.

In the face of …

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