Browsing: Investments in Africa

• Financing by Venture Capital Firms (VC) is the leading source for injecting capital into startups, accounting for 29 percent of the deals.
• Findings show that venture debt is becoming a crucial funding tool, especially for climate tech startups with limited access to traditional equity financing.
• The survey notes that to support this growth, investments in digital and energy infrastructure are essential.

Kenya is emerging as a leader in sourcing capital for its agricultural technology and food startups across the African continent. A large portion of capital for African startups still comes from foreign countries, with approximately 60 per cent, coming from international sources, primarily the United States and the United Kingdom.

On the continent, however, most investors are concentrated in Kenya, Nigeria, and South Africa, where innovation and funding activity are most prominent. Large-scale investments in solar energy solutions and precision agriculture partly drive Kenya’s dominance in the sector.

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• The pair have entered into their second, three-year agreement to scale and replicate successful Foreign Direct Investment partnership models.
• Agreement will set up mechanism to measure progress and results as well as joint marketing initiatives to strengthen cooperation and explore new investment opportunities.
• Both parties will carry out joint marketing efforts, training, and seminars to strengthen cooperation and explore new investment opportunities in Africa.

MIGA, the Multilateral Investment Guarantee Agency, has teamed up with African Trade and Investment Development Insurance (ATIDI), an insurance services provider, to accelerate the flow of foreign direct investments across Africa. As a key branch of the World Bank Group, MIGA specializes in offering guarantees, and this partnership aims to boost investor confidence throughout the continent.

The pair’s three-year partnership will be the second agreement between them aimed at maximizing development impact across economies in Africa, a continent that is grappling with a myriad of …

• Agriculture deals worth $25Mn will be struck next month as investors throng the Kenyan capital for the 6th edition of Africa Agri Expo (AAE) in February 2023. 
• Over 100 investors and potential business leads in the agriculture value chains from 35+ countries, are keen on setting up businesses and distribution set-ups in Kenya. 
• The agricultural 2-day event will happen on 8th February to 9th February at the Kenyatta International Convention Centre (KICC) and is designed to provide solutions to Farmers, Agribusiness professionals, Agronomists, Government representatives to improve their yields and revenue. 

Agriculture deals worth $25 million are expected to be struck next month as investors throng the Kenyan capital for the 6th edition of Africa Agri Expo (AAE) in February 2023. 

TAB Group Chief Executive Officer Tahir Bari said over 100 investors and potential business leads in the agriculture value chains from 35+ countries are keen on setting up businesses …

G7 Development finance institutions (DFIs) are collaborating with several multilateral partners to invest $80 billion in Africa’s private sector over the next five years.

The investments are aimed at supporting Africa’s economic recovery and growth. The project will boost support for long-term development objectives of the economies that have been affected by the pandemic.

The G7 Development finance institutions consist of the private sector arm of the African Development Bank (AfDB), the European Investment Bank (EIB), the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).

The institutions play a key role in helping to build markets, moderate risk and pave way for investors to enter new markets.

This project will make it the first program that the G7 DFIs have made a collective partnership commitment to the African continent.

According to the International Monetary Fund (IMF), Sub Saharan Africa will need $425 billion in additional …

Africa has boasted promising prospects for investors looking to invest in the continent’s untapped sectors and industries, attractive growth opportunities and an improving business environment.

Venture Capital in Africa has seen significant growth in recent years and as the entrepreneurial space on the continent matures it remains optimistic. In addition, once the African Continental Free Trade Area is fully implemented it will significantly shape the path of Venture Capital and Private Equity.

According to a report by the African Private Equity and Venture Capital Association (AVCA), the trends that will drive Private Equity and Venture Capital in Africa are in sectors such as Health Care, renewable energy, Agriculture and ICT and Digitalisation.

Health Care Sector

In the years leading to 2020, the health care sector in Africa was already experiencing significant growth and attracting private equity investments.

In 2020 H1, the health care sector accounted for the largest share …

Africa is one of the world’s fastest-growing economies with the continent expected to be home to nearly 1.7 billion people by 2030 and have a combined business and consumer spending of $6.7 trillion according to the Brookings Institute.

This potential in the economy has made Africa attractive for investors seeking high growth businesses with long-term impact. Because of this, Venture Capital (VC) and Private Equity (PE) have emerged as important drivers for directing capital into these businesses hence stimulating capacity building and economic growth across Africa.

According to a report from the African Private Equity and Venture Capital Association (AVCA), African companies which are backed by PE and VC firms are among the most innovative and pioneering firms in the world and attract more international and local investments.

According to the report, despite the effect of the pandemic on businesses, many businesses backed by the PE and VC firms especially …

The Italian Development Cooperation contributed more than €4.55 million to two United Nations Industrial Development Organization (UNIDO) projects in Egypt and Iraq.

A signing ceremony to launch the projects took place at the UNIDO headquarters.

The Egypt project was developed after an in-depth analysis of the Egyptian tomato value chain. Egypt is the world’s fifth-largest producer of tomatoes producing about eight million tonnes of fresh tomatoes per year. Suitable climate, dual seasonality and fertile lands attributed to the success of the crop. However, only three to four per cent of the tomato crop is processed, with the processing sector affected by lack of integration with the supply chain.

Also Read: Israel starts exporting natural gas to Egypt

The project will boost the linkages between supply and processing factories, improve the technical skills of workers and managers in the factories, improve the quality of production and processing of tomatoes and expand …

Ethiopia emerged as the largest recipient of Foreign Direct Investment (FDI) in East Africa, a new report released by financial consulting firm EY shows.

The 2019 survey carried out by EY Attractiveness showed that Ethiopia attracted foreign investments worth Ksh.726.6 billion last year compared to Kenya’s foreign investments, which stood at Ksh.207.6 billion in the same period.

Tanzania’s foreign investment stood at Ksh.103.8 billion.

According to the report, the FDI Ethiopia received translated to 16,000 jobs from 29 projects, while Kenya created 6,000 jobs from 64 projects and Tanzania created 3,000 jobs from 19 projects.

An expert said that Ethiopia’s “efficient” business environment has helped its much higher FDI flow compared to the rest of the region.

Mr Francis Kamau, a tax partner at audit and consultancy EY East Africa said,” “Ethiopia has affordable electricity supply and is served by an efficient airline”.

Mr Kamau also added that Ethiopia has …

Axis and Innpact have launched the first impact investing platform in Mauritius, the Mauritius Impact Finance Gateway to Africa (MIFGA). This innovative structure enables fund promoters to set-up and manage impact finance vehicles in an efficient and cost-effective manner while benefiting from the support of leading service providers in the industry.

AXIS is a leading service provider in Mauritius offering a full spectrum of corporate, fiduciary, tax & accounting and fund administration services to a diversified client base, including Development Finance Institutions, Angel Investors, Institutional Investors, Family Offices, GPs and Investment Managers.

MIFGA has been designed as a turnkey solution addressing the key challenges typically faced by new impact funds: complexity of blended finance structures, time to market and availability of resources, especially during the ramp-up phase.

Read also: Impact investor DOB Equity expansion in East Africa recognized by EAVCA

The platform leverages on the 10-year experience of Innpact in …