Diamond Trust Bank has partnered with Network International to accelerate digital payment transformation in Kenya. This strategic collaboration aims to support DTB's digital-first strategy by leveraging Network International's advanced processing platform. The partnership will enable DTB to offer a range of payment products, including debit, credit, and prepaid cards, while also enhancing security through features like card fraud prevention and 3D Secure authentication.

Both DTB and Network International emphasize the importance of this partnership in promoting financial inclusion and meeting the growing demand for digital banking services in Kenya.

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In a Nutshell...

Funding Rounds:💰

• d.light: Secured a $176 million financing facility to expand renewable energy access in East Africa.

• TerraPay: Raised $95 million in debt financing to enhance remittance services across Africa.

• MNT-Halan: Egypt's first fintech unicorn secured $157.5 million for regional expansion.

• Bio-Logical: Secures $1.3 Million to Boost Biochar Technology.

• Uncover closes oversubscribed $1.4m funding round.

Acquisitions:🤝

• Peach Payments: Acquired Operativa to boost digital payment solutions.

• LULA: Acquired Zeelo's South African subsidiary to expand ride-sharing services.

Partnerships:🤝

• Global Center on Adaptation and African Development Bank: Launched CRAFT project in South Sudan for climate-resilient agriculture.

• GCA and African Development Bank Partner to Launch Climate Resilience Project in South Sudan.

• Jumia's Share Price Surge.

And more.

Bio-Logical, a Kenyan climate startup, has successfully raised $1.3 million in funding to expand its biochar production facility near Mount Kenya. This funding round was led by CrossBoundary, Redshaw Advisors, and the Steyn Group, among others. The investment aims to increase production capacity and improve the livelihoods of smallholder farmers in Kenya.

Founded in 2022 by Rory Buckworth and Philip Hunter , Bio-Logical focuses on sequestering carbon from agricultural waste and converting it into a climate-resilient fertilizer. The startup plans to establish three new sites across Kenya within the next 18 months, scaling up their operations to support 1 million smallholder farmers and sequester 1 million tonnes of carbon dioxide annually by 2030.

In November 2023, Bio-Logical secured $1 million in seed funding for its inaugural site. The recent funding will help accelerate their efforts to combat climate change and enhance agricultural productivity. Philip Hunter emphasized that their technology not only sequesters carbon but also produces affordable, soil-regenerating fertilizer, which is crucial for smallholder farmers who are disproportionately affected by climate change.

Louis Redshaw , CEO of Redshaw Advisors Ltd , expressed satisfaction with the investment, highlighting its dual benefits of creating high-integrity carbon removal credits and providing climate resilience solutions for farmers.

Kenya leads Africa in climate tech startup funding, accounting for 53% of the continent's total. This trend is part of a broader increase in climate tech investments across Africa, which rose from $340 million in 2019 to $1.1 billion in 2023.

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Peach Payments, a leading South African digital payments service provider, has acquired Operativa , a customer software development firm, as part of its expansion strategy following a US$31 million Series A funding round led by Apis Growth Fund II. This acquisition integrates Operativa's team and expertise into Peach Payments, with co-founders Dayne Olivier and Ben Janecke taking on Principal Engineer roles.

Operativa has been a key partner for Peach Payments since 2022, developing crucial payment systems and solutions that have supported the company's rapid growth. The move is expected to accelerate Peach Payments' product development and expansion across Africa, leveraging Operativa's specialized skills and knowledge of Peach Payments' systems.

This strategic acquisition aims to solidify Peach Payments' position as a leading payments provider in Africa, enhancing its ability to deliver innovative solutions in the digital payments sector.

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The Dutch development finance institution FMO has announced a $7 million investment in the LoftyInc Capital Alpha Fund, a pan-African early-stage venture capital fund managed by LoftyInc Capital Management. This fund targets startups from Seed to Series A stages, focusing on tech-enabled solutions for the everyday economy with high growth potential. LoftyInc operates out of Nigeria, Egypt, and Kenya.

FMO's investment aligns with its goals of empowering entrepreneurs, fostering innovation, and promoting sustainable economic development in emerging markets. The fund, classified with an E&S risk rating of B, will invest in early-stage technology companies, which typically have low environmental and social risks due to their small size and limited environmental impact.

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The U.S. Department of State reports that Kenya maintains an attractive investment climate for international firms seeking a location for local, regional, or pan-African operations. The Ruto administration is focused on attracting more foreign direct investment and implementing policies favorable to U.S. investment.

Kenya's strategic location, membership in regional trade blocs, and robust infrastructure make it an appealing hub for investors. Recent reforms include tax changes and initiatives to improve the business environment, although challenges such as bureaucratic processes and corruption persist. Kenya's economy grew by over 5% in 2023, with strong potential in sectors like agro-processing, renewable energy, and technology.

The country's commitment to clean energy development and low-carbon initiatives further enhances its appeal to international investors. Ongoing negotiations for the Strategic Trade and Investment Partnership with the U.S. aim to strengthen bilateral economic ties.

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Uncover , a Kenyan tech-enabled beauty startup, has raised $1.4 million in an oversubscribed seed II funding round. Founded in 2021, the company creates data-driven skincare products for women of color, with a focus on melanin-rich skin. Uncover has built a digital community of over 200,000 women across Kenya, Nigeria, and the diaspora, and has seen a tenfold increase in revenue over the past two years.

The funding round was co-led by EQ2 Ventures and IgniteXL Ventures, with participation from Chui Ventures, Samata Capital, and Altree Capital. Uncover plans to use the funds to enhance its tech platform, launch new products, and expand into new markets, including North America. The company has already expanded into Uganda and Ghana.

Uncover's co-founders, Sneha Mehta and Jade Oyateru, emphasize the brand's mission to prioritize women of color in the beauty industry. They aim to leverage data and technology to provide personalized skincare solutions and build a leading African beauty brand. Investors have praised Uncover's clear vision and execution, expressing confidence in the team's ability to capitalize on the growing African beauty market.

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Microsoft has decided to reduce its office space in the Kings Tower building in Ikoyi, Nigeria, from six floors to two following the layoff of half its workforce in the country. This reduction in office space suggests a scaling back of its Nigerian operations. The company may not renew its tenancy in 2025 when the current lease expires. Despite these changes, Microsoft maintains that it is committed to Africa's growth and development.

The sales team, which was largely unaffected by the layoffs, will occupy the remaining two floors for the next year. The layoffs in May and July 2024 primarily impacted the engineering team in Nigeria, following the closure of the African Development Centre in Lagos. Remaining engineers have been asked to relocate to Kenya to join new projects.

Microsoft emphasizes that closing the ADC in Nigeria does not reduce its commitment to the country or the region. The company asserts its ongoing support for Nigeria’s transformation objectives and its dedication to providing digital solutions, fostering innovation, and empowering local talent.

In contrast, Microsoft has chosen to invest $1 billion in geothermal data centers in Kenya and will establish an engineering team there to manage these investments. This decision has raised concerns in Nigeria, especially after the company's Nigerian Managing Director, Olatomiwa Williams, met with Finance Minister Wale Edun to reiterate Microsoft's commitment to Nigeria.

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Grey, a B2C cross-border payments startup founded in 2020 and a Y Combinator alum, is expanding its services to Latin America (LATAM) and Southeast Asia (SEA). This expansion aims to tap into the growing digital payments markets in these regions and cater to a broader audience of location-independent individuals. Grey has already established itself in Africa by facilitating global money transfers through foreign bank accounts and has raised $2 million in seed funding, serving nearly 1 million users.

On July 16, 2024, Grey announced its official entry into LATAM and SEA, along with additional payout support options across its network of over 80 countries, including USDC payouts via the Ethereum and TRON networks. This move aims to enhance financial inclusion, especially in LATAM, where 70% of the population remains unbanked. CEO Idorenyin Obong emphasized the goal of revolutionizing the market with more open, digital, and inclusive products.

Grey's services include multi-currency accounts, low-cost international money transfers, a Mastercard virtual USD card, and robust security measures. The company aims to drive financial inclusion and economic empowerment for digital nomads globally.

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dopay , a fintech startup founded in 2014 by Frans van Eersel and Ahmed Nassef, has closed a $13.5 million Series A extension round led by Argentem Creek Partners, with participation from existing investors. This funding follows a previous $18 million Series A round raised in 2021. Dopay provides a digital payroll and payments platform for unbanked and underbanked workers in emerging markets, primarily focusing on Egypt. The platform digitizes cash payments from employers to workers and other beneficiaries, offering accounts equipped with prepaid debit cards in partnership with Mastercard, which allow 24/7 access to funds via ATM withdrawal.

The new funding will enable Dopay to accelerate its expansion in Egypt, launch new financial services, and extend its multi-bank, multi-country platform to other markets. Dopay's platform aims to provide secure, cashless payroll systems and instant banking access for employees, promoting financial inclusion. The company also plans to leverage deposited funds to create a self-financing lending model, enhancing its financial ecosystem.

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Nigeria's Federal Competition and Consumer Protection Commission fined Meta and WhatsApp $220 million for data privacy violations. The fine follows a three-year investigation into claims of non-consensual data collection. Meta plans to appeal the decision.

The Nigeria Data Protection Commission is investigating OPay, Meta, and DHL for potential data privacy breaches. If found guilty, these companies could face fines up to 2% of their 2022 gross revenues. OPay faces accusations of opening accounts without consent.

The NDPC is currently examining 17 priority data breach cases across various sectors. This increased scrutiny reflects Nigeria's commitment to strengthening data protection and privacy compliance.

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The Central Bank of Kenya is facing significant challenges in licensing Digital Credit Providers (DCPs) under new regulations implemented in March 2022. Despite a mandate to process applications within 60 days, the CBK has issued only 58 licenses out of over 500 applications, with none meeting the intended timeframe.

Joseph Githaiga highlights several key issues contributing to these delays:

1. Unclear guidelines and evaluation criteria, leading to frequent re-submissions and additional queries.

2. Lack of transparency in the licensing process, causing uncertainty for DCPs.

3. Adverse impacts on DCPs' fundraising efforts due to licensing delays.

To address these challenges, Githaiga proposes several solutions:

1. Publishing comprehensive guidelines detailing specific requirements and evaluation criteria.

2. Increasing the CBK's capacity to handle applications more efficiently.

3. Implementing a sandbox approach to licensing, allowing conditional approvals with a set timeframe for addressing pending issues.

4. Considering sharing the supervisory mandate with other regulatory agencies like the Competition Authority of Kenya and the Office of the Data Protection Commissioner.

These recommendations aim to streamline the licensing process, improve transparency, and foster a more collaborative approach between the CBK and the digital credit sector.

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Matia Ategeka, a 27-year-old graduate of Makerere University with a Bachelor of Science in Water and Irrigation Engineering, developed an innovative off-grid water pump irrigation system. Despite being an orphan and facing financial challenges, Matia was determined to solve the irrigation issues in his community in Fort Portal, Uganda. His early attempts at creating irrigation pumps were unsuccessful, but he persevered and eventually invented a spiral water wheel pump that uses kinetic energy from flowing water to pump 15 liters of water per minute, up to 30 meters high and over 2 kilometers horizontally.

This invention, supported by the Makerere University Innovation Pod-UniPod and the United Nations Development Programme (UNDP), has been patented and led to the establishment of his company, Mat Water Solutions. Matia's pumps are now installed in communities in Uganda and Rwanda, with plans to expand to Mozambique and South Africa. His innovation has been recognized by the United Nations Department of Economic and Social Affairs and will be showcased at the 9th Science Technology and Innovation Forum in New York.

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d.light, a global provider of solar-powered products for low-income households, has secured a $176 million financing facility from African Frontier Capital. This multi-currency facility will enable d.light to expand its PayGo consumer finance offering in Kenya, Tanzania, and Uganda, making solar-powered products more accessible to underserved communities. The company aims to provide reliable, renewable energy to an estimated six million people across these three countries over the next three years.

This new facility builds on d.light's track record of using securitized finance to support its operations in sub-Saharan Africa. Since 2020, the company has established four similar facilities, including two in Kenya and one each in Nigeria and Tanzania. The total value of these facilities, including the new one, amounts to $718 million.

d.light has a significant impact in the off-grid solar sector, having sold nearly 30 million products and improved the lives of over 150 million people. The company's product range includes solar lanterns, solar home systems, TVs, radios, and smartphones. Earlier this year, d.light's $110 million securitization facility in Kenya successfully repaid its entire senior debt ahead of schedule, demonstrating the viability of its financial model.

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TerraPay , an Africa-focused digital payments provider, has secured $95 million in debt financing to enhance its remittance services across Africa. The funding round was led by the International Finance Corporation, which provided a $75 million loan, and British International Investment (BII), which contributed a $20 million senior secured loan. This investment will be used to improve transaction speed and reliability, expand partnerships with global money transfer operators, and reduce the cost and complexity of remittance transfers.

The company plans to leverage this funding to strengthen its infrastructure, expand its network, and develop innovative solutions for its users across Africa. TerraPay has recently partnered with enza and Safaricom PLC , allowing over 32 million M-PESA users to send and receive money internationally. With this significant financial backing and strategic vision, TerraPay is positioned to play a crucial role in shaping the future of digital payments and remittance services in Africa, potentially unlocking new opportunities for individuals, businesses, and economies across the continent.

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Louis-Gillis, a 35-year-old innovator, has been recognized as one of News24's Young Mandelas in the innovation category for his creation of the African Grower, a vertical, hybrid-hydroponic irrigation system that operates without electricity or running water.

This invention is revolutionizing small-scale farming in South Africa by enabling individuals to grow vegetables on minimal land, fostering self-sufficiency. Beyond his invention, Louis-Gillis is involved with the Mr Price Foundation's HandPicked agri-skills development program, aiming to decentralize and democratize the African food system.

He has established farming hubs in five South African provinces, empowered 45 home growers, contributed to eight community projects, and trained over 100 individuals, leading to the creation of nine horticultural businesses.

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Egypt's first fintech unicorn has secured $157.5 million in a recent funding round. The International Finance Corporation contributed $40 million, with additional investments from Development Partners International (DPI) , Lorax Capital Partners, funds managed by Apis Partners , Lunate , and GB Corp. This round follows previous raises totaling $520 million over the last two years, highlighting MNT-Halan 's strong position for regional expansion.

Founded in 2018, MNT-Halan has grown rapidly, now serving over seven million users and disbursing over $4.4 billion in loans. Its digital platform, the Halan app, offers various financial services, including loans, pre-paid cards, e-wallets, e-commerce, gold, and money market fund investments, with plans for additional features. The company's strategic direction focuses on expanding access to financial services beyond Egypt, leveraging technology and industry expertise. Legal and financial advice for the transaction was provided by Maatouk Bassiouny & Hennawy, Van Campen Liem , Hogan Lovells, Freshfields Bruckhaus Deringer , Gibson Dunn , and Arqaam Capital .

Users will be able to access the feature through the 'Manage storage' menu once it's launched in future updates.

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A global tech outage that affected Microsoft platforms disrupted banks, card payment systems, airlines, retailers, and other essential services. The issue, traced to a faulty software update from the cybersecurity firm CrowdStrike, caused Windows systems to crash with the "blue screen of death" and enter a restarting loop. CrowdStrike 's CEO, George Kurtz , clarified that this was not a cyberattack but a defect in a single content update, which was subsequently identified, isolated, and fixed.

The outage began around 22:00 EAT on July 18, impacting banks like Lloyds in the UK and Capitec in South Africa, as well as retailers such as Waterstones, Waitrose, and Wetherspoons. The London Stock Exchange's regulatory news service was also affected, disrupting trading for firms like JP Morgan and UBS. Additionally, payroll software access issues raised concerns about potential delays in payroll processing.

Airlines, including Ryanair, American Airlines, KLM, Qantas, and Air New Zealand, experienced significant delays, leading to widespread airport disruptions. Other affected entities included Allianz, the NHS, BBC, and Sky News. The incident caused declines in the stock prices of both Microsoft and CrowdStrike.

Experts emphasized the need for rigorous testing and quality assurance in cybersecurity updates to prevent such widespread failures. The outage highlighted the vulnerabilities of interconnected digital systems and the importance of resilient IT infrastructure. The incident served as a reminder of the critical role of Big Tech in daily operations and the necessity for robust cybersecurity measures.

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The outage has significantly impacted CrowdStrike's stock price, which fell nearly 30%. In contrast, stocks of competitors like SentinelOne and Palo Alto Networks rose by up to 10%. CrowdStrike, with a 14.74% share of the global security software market, faces stiff competition from companies like Microsoft, Trellix, and others.

Experts suggest that while some organizations may switch to alternatives, the overall market share shift might be minimal. The incident underscores the importance of rigorous testing and quality assurance in cybersecurity updates. It also highlights the vulnerabilities in the global IT infrastructure and the critical need for resilient and reliable cybersecurity solutions.

What to learn:

• Implement thorough testing and quality assurance for software updates to prevent widespread failures.

• Develop and maintain robust IT infrastructure to handle unexpected disruptions.

• Avoid reliance on a few companies for essential services to reduce vulnerability.

• Adhere to regulatory standards to ensure operational resilience and security.

• Establish and practice comprehensive crisis management strategies to quickly respond to outages.

• Use sophisticated threat detection and response systems, such as AI-driven solutions, to identify and mitigate risks.

• Implement uninterruptible power supply systems and backup generators to maintain operations during power outages.

• Integrate cloud-based solutions for data storage and operations to enhance resilience and recovery capabilities.

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The Financial Stability Board (FSB) Chair Klaas Knot has called for increased regulation of the "shadow banking" sector, also known as non-bank financial institutions. In a letter to finance ministers and central bank governors, Knot highlighted recent market stress and liquidity strains that demonstrate how NBFIs can cause or exacerbate systemic risks to the broader financial system. He emphasized that many underlying vulnerabilities remain in place, leaving the global financial system susceptible to further shocks.

NBFIs, which include hedge funds and private credit providers, held assets worth $218 trillion in 2022, representing nearly half of the world's financial assets. In the European Union, NBFI assets totaled $46 trillion last year, surpassing traditional banks' $41.1 trillion. Given this significant market presence, Knot stressed the critical need to finalize NBFI reforms and ensure their full and timely implementation to enhance global financial system resilience.

The FSB plans to publish a consultation report with proposed policy solutions by the end of the year. This call for increased oversight aligns with other regulators' concerns, including the European Banking Authority and the U.S. Office of the Comptroller of the Currency. As regulators focus more on the NBFI sector, traditional financial institutions are reportedly adopting practices similar to neobanks, particularly in the context of open banking developments in the United States.

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Jumia Group's share price surged 55% over five days, closing at $12.08 on Friday, which lifted its market value to $1.32 billion. This represents a 252.3% increase since the start of the year, signaling renewed investor confidence.

The company's fortunes have improved under the leadership of new CEO Francis Dufay, who implemented drastic restructuring measures. These include laying off 43% of employees, scaling back operations in underperforming markets, and shuttering the food delivery business. As a result, Jumia reduced its operating losses by 71% in Q1 2024 and grew revenue by 18.5%, despite challenging macroeconomic conditions in key markets like Nigeria.

Jumia's strategic shift towards third-party sellers is proving successful, with over 52% of sales now coming from this segment. This has helped reduce costs and increase platform revenue, with merchant commissions jumping 78% to $17.3 million in Q1 2024. However, the company faces increasing competition from social selling platforms and major retailers like Amazon expanding into its key markets.

Despite these challenges, Jumia's focus on stabilizing the business and improving efficiency appears to be payi

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LULA, a ride-sharing platform for office workers, has acquired the South African subsidiary of the US-based staff bus-sharing startup Zeelo for an undisclosed amount. Zeelo, which launched in South Africa in 2019 and raised $33 million, is exiting the country to focus on its US, UK, and Ireland markets. Before its exit, Zeelo completed over 2 million rides annually in South Africa. LULA plans to use Zeelo’s network of over 18,000 riders to expand its presence across the country. Transportation is the largest work-related expense for South Africans, with workers spending an average of R2,180 ($121) monthly when using cars and R960 ($53) when using taxis.

Platforms like Uber for Business, MoveInSynch, and LULA help reduce these costs for employees. Founded in 2018, LULA operates in five South African cities and has completed 700,000 rides for over 380 companies, partnering with individual drivers and shuttle fleet operators for a commission. The acquisition is expected to make LULA cashflow positive, allowing it to scale sustainably. Sam Ryan , founder and CEO of Zeelo, expressed support for the transition of their customers and suppliers to the LULA platform.

The Summit will take place on May 21^st - 22^nd 2024.

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South Sudan's National Communications Authority granted SpaceX's Starlink a license to operate in the country, aiming to improve the current 12.1% internet penetration and extend services to rural and underdeveloped areas. Customers will register and pay in South Sudanese pounds, equivalent to US dollar rates.

Starlink will offer four pricing plans ranging from $38.19 to $5,005.40 monthly, with equipment costs set at $296.67 for the Standard Kit and $2,502.70 for the Flat High-Performance Kit. These tariffs, compliant with the National Communications Act and 2016 tariff regulations, have been approved by the NCA.

Starlink will also appoint local distributors to manage service delivery, and importing equipment through unauthorized distributors is prohibited. This expansion aligns with broader efforts to enhance digital connectivity in South Sudan, which has one of the lowest rates of mobile access and connectivity globally.

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The Financial Sector Conduct Authority, South Africa’s financial institutions market conduct regulator, will monitor financial influencers on social media over the next year to protect consumers from potential harm. This initiative, detailed in the FSCA's latest annual regulatory actions report, aims to address the influence of "finfluencers"—individuals who post financial and investment-related content and promote financial products.

While acknowledging that these influencers have improved financial literacy and market participation, the FSCA is concerned that the public increasingly bases financial decisions on social media content rather than authorized financial advisers' recommendations. The FSCA has observed instances of misinformation and scams perpetuated by finfluencers, presenting a clear risk to the public. The agency also highlighted other internet-related concerns, including deepfake frauds and impersonation of licensed financial service providers and regulators. The FSCA has improved its enforcement methods to adapt to these growing online threats.

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Ghana's Cyber Security Authority has taken a significant step in bolstering the nation's cybersecurity defenses by granting licenses and accreditation to 51 industry players. This move makes Ghana the first African country and second globally, after Singapore, to implement a comprehensive regulatory framework for cybersecurity.

The licensed entities include prominent cybersecurity service providers, establishments, and professionals. These licenses, valid for two years for service providers and establishments and renewable annually for professionals, aim to ensure that cybersecurity services in Ghana meet approved standards and procedures.

CSA Director-General Dr Albert Antwi-Boasiako emphasized the authority's commitment to enforcing cybersecurity rules, warning of severe consequences for non-compliance, including fines and criminal charges. This regulatory action comes in response to Ghana's concerning cybersecurity landscape, with the country ranking ninth among African nations for data breaches in 2024 and experiencing a 997% increase in breaches in the first quarter of 2024 compared to the previous quarter.

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UsPlus , a fintech company founded in 2015, offers working capital solutions to small and medium-sized enterprises in South Africa. SMEs often struggle to secure funding from mainstream banks due to perceived high risks and low returns. UsPlus addresses this gap by providing immediate payment for invoices through a process called discounting, where they pay the invoice amount upfront and then collect from the debtor, charging a percentage fee for the service. This allows SMEs to maintain cash flow, pay employees, and prepare for future business activities without waiting for invoice payments.

Since its inception, UsPlus has advanced $188 million to SMEs, helping them avoid the financial strain of unpaid invoices and enabling growth and stability. The company serves various sectors, including agriculture, manufacturing, and film production, and excludes industries with negative environmental or social impacts. UsPlus' services have been crucial in a market where it can take up to a year for larger companies to pay invoices, which can be devastating for startups. The fintech firm has a proven track record and continues to scale up, supported by investments from entities like Triodos Investment Management.

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Huawei recently hosted its first regional "Seeds for the Future" program in Essaouira, Morocco, aimed at developing young ICT talent across Africa. The program brought together over 150 young enthusiasts from 15 African countries for a week of intensive training and cultural exchange. A standout project from an Egyptian team featured a web-based dashboard that uses satellite and meteorological data to help farmers optimize irrigation and crop yields, developed using Python.

Huawei's Northern Africa Executive Vice President, Jeremy Lin, highlighted the importance of investing in youth for the continent's future. The program focuses on introducing participants to Huawei's latest technologies and equipping them with entrepreneurship and innovation skills. Teams from Ethiopia and Morocco won the regional competition and will represent Africa at the global Tech4Good finals in China.

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Avanti Communication successfully conducted a satellite connectivity test with BankservAfrica and Capitec Bank, demonstrating the reliability and stability of their GEO Ka HTS satellite link for financial transactions. This test is crucial for enhancing transactional security in South Africa, where financial institutions face challenges such as power grid instabilities and undersea cable malfunctions. The satellite link efficiently managed high transaction volumes, proving its capability to handle mission-critical applications during disruptions of terrestrial links.

Gamze Aydın, Avanti's Senior Vice President of Sales and South Africa Country Manager, highlighted that this initiative reduces reliance on local infrastructure and strengthens the resilience of financial services across Africa.

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African startup investment is approaching $1 billion, driven by new deals in Egypt, South Africa, and Kenya. Despite a global funding slowdown, Kenya saw a 17% increase in startup investments, raising $673.78 million in 2023, up from $574.8 million in 2022. This growth contrasts with Nigeria and Egypt, which experienced declines in funding due to global economic challenges. Kenya's success is largely attributed to significant investments in energy startups. Overall, Africa's startup ecosystem saw a 28% drop in total funding to $2.4 billion in 2023, down from $3.3 billion in 2022, reflecting broader global investment trends.

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The African Union , in collaboration with partners including Google and Africa Practice, has launched the AU Startup Policy Framework and Model Law to drive innovation and entrepreneurship across Africa. This initiative aims to address challenges faced by startups, such as complex regulations, limited funding, and a scarcity of skilled labor, by providing guidelines for AU Member States to develop or update their national startup legislative frameworks. The framework, developed under a Memorandum of Understanding with Google, seeks to harmonize approaches to enabling startups and innovation in line with the AU’s broader objectives.

AU Commissioner H.E. Albert M. Muchanga highlighted the importance of this initiative for economic and social development, noting that startups are crucial for job creation and economic growth. The framework is expected to help Africa's startup ecosystem grow to USD 10 billion by 2056. Google’s Charles Murito emphasized the need for diverse funding flows and support for startups led by women and youth. The initiative represents a significant step towards fostering a conducive environment for startups in Africa, promoting sustainable development, technological growth, and enhanced research capabilities.

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Stanbic IBTC Bank has partnered with the Lagos State Water Regulatory Commission to host the fifth Lagos International Water and Sanitation Conference 2024. The conference aims to explore innovative funding solutions for water and sanitation infrastructure in Lagos. Governor Babajide Sanwo-Olu emphasized the importance of international alliances for resource pooling, expertise sharing, and community involvement to improve the sector. Stanbic IBTC executives highlighted the bank's role in developing sustainable funding models to enhance water and sanitation systems, thereby boosting the quality of life and economic activities in Lagos. The event included discussions on bridging the financing gap in the sector and the impact of a supportive regulatory environment.

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The Ecosystems, Finance and Health initiative, a groundbreaking pan-African collaboration, aims to address the financing of environmental and health improvements in 21st-century African landscapes. Co-organized by James Hassell of the Smithsonian's National Zoo and Conservation Biology Institute and Yale School of Public Health, the initiative brought together experts from various fields for a workshop exploring innovative financing mechanisms. The project focuses on proactively managing health consequences of climate change and biodiversity loss, recognizing the interconnectedness of environmental factors and diseases in African contexts.

The workshop, held at the Namunyak Wildlife Conservancy, involved local Samburu community members to incorporate their unique insights into resilience-building strategies. EFH aims to create a community of practice dedicated to making co-management of ecosystems, food systems, and public health systems financially viable. The initiative has garnered support from various institutions and seeks to empower local communities, particularly women, as environmental custodians while addressing pressing health challenges.

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Starlink, SpaceX's satellite internet service, has officially launched operations in South Sudan after receiving approval from the National Communications Authority (NCA). This move is expected to significantly boost internet connectivity in a country where only 12.1% of the population currently has access to the internet.

The NCA has approved Starlink's tariff proposals, which include four pricing plans ranging from $38.19 to $5,005.40 per month. Equipment costs are set at $296.67 for the Standard Kit and $2,502.70 for the Flat High-Performance Kit. Customers will be required to register and make payments in South Sudanese pounds, equivalent to the agreed US dollar rates.

Starlink plans to appoint local distributors to manage service and equipment distribution throughout the country. The NCA has warned against importing Starlink equipment through unauthorized channels, as it violates national communication laws.

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The Global Center on Adaptation has partnered with the African Development Bank to implement the South Sudan Climate Resilient Food Security and Agricultural Transformation Project (CRAFT). This five-year initiative aims to transform South Sudan's agricultural sector by addressing climate change impacts on food production and livelihoods. The project focuses on enhancing climate-adaptive production systems, strengthening value chains, and implementing digital solutions for farmers.

GCA will contribute by conducting climate risk assessments, analyzing markets for climate-resilient seeds, and developing digital climate advisory services. The collaboration, part of the Africa Adaptation Acceleration Program, seeks to empower local communities, especially women and youth, while promoting sustainable agricultural practices in one of the world's most climate-vulnerable regions.

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Vodafone Business Germany and sustainability reporting specialist Envória . have introduced the ESG Navigator, an all-in-one solution to help EU companies meet the upcoming Corporate Sustainability Reporting Directive - CSRD requirements. Set to take effect in 2025, the CSRD mandates comprehensive ESG reporting for many EU companies. The ESG Navigator centralizes data collection from various sources, facilitates analysis, and generates CSRD-compliant reports with clear visualizations. Vodafone is also offering workshops and training to support companies in using the software effectively. This initiative addresses the challenges many businesses face with unfamiliar ESG concepts and reporting requirements, helping them avoid potential reputational damage and fines associated with non-compliance.

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The Federal Government of Nigeria has introduced a comprehensive strategy to spearhead Africa's digital trade revolution under the African Continental Free Trade Agreement. Vice-President Kashim Shettima outlined the plan at a Stakeholders Summit in Abuja, emphasizing Nigeria's unique position as Africa's largest ICT hub.

The strategy aims to leverage trade for economic growth and continental unity, focusing on implementing AfCFTA's Digital Trade Protocol, developing technical talent hubs, and boosting investments in digital infrastructure. Key initiatives include training three million technical talents and the Investment in Digital and Creative Enterprises. The plan calls for strong public-private sector collaboration to advance digital technologies across all sectors, ensuring sustainable development and economic resilience.

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Applications open for Just Transition Innovation Programme

The Green Innovation Hub (GiH) at the African Centre for a Green Economy has announced the Just Transition Innovation Programme (JTIP), targeting innovative green enterprises to drive Africa's climate action and low-carbon transition. The program offers formal business development training, personalized coaching, and enhanced visibility to help entrepreneurs scale their businesses, create jobs, and support climate adaptation and mitigation goals. By fostering collaboration and networking, JTIP aims to connect entrepreneurs with investors and opportunities beyond their borders.

Applications are open until July 31

Weekly Global Economic Snapshot

United States

The US economy is showing signs of cooling inflation, potentially paving the way for monetary policy easing:

• Consumer Price Index rose by 3% in June year-over-year, the smallest increase in 12 months

• Core inflation (excluding food and energy) increased by 3.3% annually, the lowest since April 2021

• Durable goods prices continued to decline, falling 4.1% compared to last year

• Services prices remain elevated, up 5% year-over-year

• Federal Reserve Chair Jerome Powell indicated progress in fighting inflation and signaled a potential shift towards considering economic risks of sustained high interest rates

China

China's economy faces challenges with weak domestic demand and deflationary pressures:

• Consumer prices increased by only 0.2% in June year-over-year, down from 0.3% in April and May

• Producer prices (factory gate prices) fell 0.8% annually in June

• Bank lending growth slowed to a record low of 8.1% year-over-year in June

• Exports surged by 8.6% in June compared to last year, the fastest growth in 21 months

• Imports declined by 2.3% in June year-over-year, potentially indicating weak domestic demand

Global Trade Dynamics

Shifting trade patterns are emerging due to geopolitical tensions and policy changes:

• Chinese exports to Southeast Asia and Latin America grew by 10.7% and 11.3% respectively in the first half of 2024

• Exports to traditional markets like the US, EU, and Japan showed mixed results

• Protectionist measures against Chinese exports, particularly in high-tech sectors, are increasing from Western countries

• Global supply chains are adjusting, with more companies reducing exposure to China and diversifying to other locations, especially in Southeast Asia

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