TechCabal Each day – It’s a giant deal 🤝🏿

14 DECEMBER, 2021

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What’s up? ☀

Spotify has information. Don’t fear, it’s not one other Wrapped announcement. 

The platform has appointed Jocelyne Muhutu-Remy as its new Managing Director for SSA. Jocely beforehand labored for Fb Meta because the Supervisor for Strategic Media Partnerships for SSA, and Disney because the Head of Content material Distribution for Africa. 

If it’s about various African content material and audiences, it looks like Jocelyn is the go-to hyperlink.

In immediately’s version

  • How can African startups construct multi-million-dollar partnerships?
  • Kenya’s provide chain disaster
  • Zuri Well being powers up and expands to Senegal

HOW CAN AFRICAN STARTUPS BUILD MULTI-MILLION-DOLLAR PARTNERSHIPS

Timi: They should do frequent giveaways in order that clients will like them. 🌚

Kelechi: It is a critical problem, Timi. Please focus. 

Timi: Who says I’m kidding? Don’t overlook, when the shoppers glow, you develop.

Kelechi: 🤦🏿♂

The 12 months 2021 has set many new requirements for Africa’s tech ecosystem. It’s the 12 months African startups normalised $100 million rounds. It’s the 12 months francophone Africa produced its first unicorn, Wave. It’s additionally the 12 months of mergers and acquisitions, with over 333 M&A offers value $51 billion completed within the first half of the 12 months alone, a 567% improve in deal worth from 2020’s $8 billion. 

One of many greatest acquisition offers of 2021 is MFS Africa’s cope with Capricorn. In October, MFS Africa—the biggest fintech interoperability hub in Africa—signed a deal to amass Capricorn Digital, considered one of Nigeria’s largest digital options and distribution firms. Whereas the quantity is undisclosed, each events confirmed that the deal is Nigeria’s “second-largest” fintech acquisition deal, second solely to Paystack’s $200 million acquisition cope with Stripe.

However how do hundred-million-dollar offers get made? And why are extra startups hitching their wagons collectively? On December 3, we spoke to Dare Okoudjou, MFS Africa CEO, and Degbola Abudu, co-founder of Capricorn. Listed below are the teachings they needed to share:

  • Huge offers begin out small. Based on Dare Okoudjou—who has led MFS Africa’s progress in 35 African international locations—huge offers are completed over time, and typically, they begin off as minority funding talks which evolve into acquisition talks. 
  • Recognising strategic partnerships is a obligatory talent. MFS has made six minority investments. Capricorn is MFS Africa’s third acquisition. It beforehand acquired Beyonic and Sochitel, and each acquisitions began off with a number of conversations on strategic partnerships.
  • Belief…and reveal. Degbola Abudu believes that belief is a obligatory ingredient to any huge deal. “Hiding issues gained’t enable you in the long term,” he stated. “With belief, you may even work in the direction of fixing a few of these essential factors collectively.”

Zoom out: Notable M&As inside the ecosystem have occurred this 12 months. From Flutterwave’s acquisition of Disha, MaxAB’s acquisition of Morocco’s WaystoCap, and even Piggyvest’s acquisition of Savi, firms within the ecosystem are consolidating to resolve a few of the continent’s taxing points. 

KENYA’S SUPPLY CHAIN CRISIS

Yep, we’re lastly speaking a few chain that’s not blockchain! 

In April, the price of bread in Kenya elevated by $.044 for the primary time in 4 years and is about to extend but once more. The Cereal Millers Affiliation (CMA) factors to decrease international wheat shares, marine freight points, and the rising value of gas to its highest ranges previously 10 years because the causes of the worth improve. 

Why does bread value extra dough?

Properly, Kenya—identical to the US, UK, and different international locations all through the world—can also be feeling the impression of a COVID-19-induced provide chain scarcity.

In Kenya, it started with a lockdown. 

The beginning of the pandemic led to a gridlock in Kenya’s transport business that had a direct impression on the nation itself and the area as an entire. 

Industries with markets outdoors of the East African neighborhood have been among the many hardest hit. East Africa’s flower business, for instance, which ships contemporary flowers by way of air to European international locations, suffered an estimated $1 billion in losses when European international locations sealed their borders. Ethiopia, Africa’s second-largest flower exporter, additionally reported an 80% discount in flower export quantity. 

On account of restricted sea and air routes, imports to Kenya decreased by 23%, however the permission of choose land transport that allowed items to circulate by land between borders meant that “different international locations within the East African neighborhood benefited,” stated Manaseh Otieno, Commerce and Coverage Supervisor on the Kenya Affiliation of Producers (KAM). For instance, commerce between Kenya, an exporter of palm oil, petroleum oil, and salt, and Uganda, an exporter of milk, tobacco, cane, and vitality, elevated by 11.3%. 

However transport by land between the international locations was nonetheless gradual and prohibitively costly. 

Alexandria Williams has extra in Can Kenya get out of the provision chain disaster?

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ZURI HEALTH POWERS UP WITH EXPRESSO IN ITS MOVE INTO SENEGAL

This 12 months, we’ve gotten wholesome information on Africa’s eHealth startups. There have been important raises, particularly Shamiri’s institute’s $1 million spherical to assist psychological well being in East Africa. There have additionally been expansions and Zuri Well being is taking this path. 

The startup just lately introduced its growth into Senegal and its partnering with Expresso Senegal to assist revolutionise eHealth in Senegal within the nation.

Remind me, what does Zuri Well being do?

Zuri Well being is a cellular software that permits sufferers to talk with docs, purchase medicine from pharmacies, e-book labs and diagnostic exams or have docs go to them at house. The startup is giving docs a aspect hustle, and sufferers easy accessibility to healthcare. It’s like Tinder on for medication and well being. With the app, you may seek for docs in your neighborhood, and have interaction their companies. 

The corporate formally launched in Kenya earlier this 12 months and goals to supply inexpensive and accessible healthcare options by way of cellular know-how with devoted apps, wap, and SMS companies. Since then, they’ve engaged the companies of 250 docs throughout the nation up to now.

How Expresso is powering up Zuri Well being’s transfer

Expresso Senegal, a subsidiary of the Expresso Telecom group is a telecommunications operator in Senegal that gives companies tailored to web, calls and SMS with the 4G know-how and enterprise and roaming options.

With Expresso, Zuri Well being will present worth throughout your entire chain by merging know-how and healthcare. An Expresso subscriber in Senegal merely sends a key phrase to 28008 to subscribe to the service and begins to talk and seek the advice of with a health care provider by way of SMS. The sufferers will get real-time and dependable responses from licensed docs, inexpensive healthcare, and safe and guarded non-public well being info.

Solely 46% of Senegal’s inhabitants has entry to web companies in 2021, and Zuri Well being’s growth finds a method to bypass this. Customers in Senegal who might not have entry to internet-enabled gadgets or smartphones can have the chance to obtain first-level medical session from certified medical professionals by way of the SMS platform.

ACCESS CRYPTO WITH QUIDAX

Quidax

Quidax is an African-founded cryptocurrency change that makes it simple so that you can entry Bitcoin and different cryptocurrencies. Additionally they make it doable for Fintech firms to supply cryptocurrency companies to their clients. 

Study extra.


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OPPORTUNITIES

  • Purposes are open for the African Union Civic Tech Fund 2022. Civic tech initiatives which have the potential to champion citizen-led motion throughout Africa can stand up to $22,000. Test it out.
  • The Making Extra Well being Enterprise Accelerator Programme is now open to functions from human or animal healthcare enterprises working in Ghana, Kenya, Nigeria, Uganda and Rwanda. Every enterprise can stand up to $56,000 in funding in addition to entry to an impactful community. See if you’re eligible.
  • The Udacity/Entry Financial institution Advance Africa Scholarship Programme is open, giving 2,000 nanodegree programme scholarships to Africans fascinated by constructing sensible, in-demand tech abilities like enterprise analytics, intro to programming and digital advertising. Discover out extra.

What else we’re studying

  • Subsequent Wave: African companies want greater than credit score to thrive. 
  • The #NairaLife of a Mechanic Barely Surviving Lagos.
  • Apple is gearing up to tackle Android within the mass market.
  • 8 key ideas for startups planning partnerships with corporates.

GIFT #TCDAILY TO YOUR NETWORK

Written by – Timi Odueso

Edited by – Kelechi Njoku

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