Startups - The African Mirror

Apr

2024

Ethiopia looks to the Singapore model to lure startups in sweeping new reforms

ETHIOPIA has unveiled sweeping reforms to support a burgeoning startup industry and turn the country into a leading incubator of entrepreneurs. Notable changes include slashing a 30% capital-gains tax on the transfer and issuance of shares, according to Brook Taye, Director-General of the Ethiopian Capital Market Authority. The move, combined with an allowance for startups to retain all foreign currency earned from service exports, is expected to boost investor confidence, as Prime Minister Abiy Ahmed opens up what was once a tightly controlled socialist economy. In recent years, the Eastern African nation has incubated several successful startups, such as Ride,…

Apr

2024

By BONFACE ORUCHO, BIRD STORY AGENCY

Local manufacturing of drones is on the rise in Africa

NEWS

RISING demand for unmanned aerial vehicles used in various commercial applications is fueling the growth of the local drone manufacturing industry as startups and governments ramp up production within the continent. Following South Africa's successful test flight of the Milkor 380, a groundbreaking unmanned aerial vehicle (UAV) capable of carrying up to 1300 kilograms among other unique capabilities, the landscape is witnessing a proliferation of local manufacturing hubs, with recent developments emerging in Nigeria and Morocco. In February, a drone manufacturing facility was unveiled by TerraHaptix, a Nigerian technology and robotics startup. The 1,400 square meter facility in Abuja was…

Feb

2024

By CONRAD ONYANGO, BIRD STORY AGENCY

Women-led ventures sparkle in a tough funding year

NEWS

AFRICA’S women-led startups retained their sparkle through 2023, against the backdrop of one of the darkest periods for global startup funding, raising US$200 million, 7% growth over the previous year, according to a report from Africa: The Big Deal. In 2022, these female-founded ventures had grown by 4%. The amount remains significantly lower than the US$ 2.7 billion raised by their male counterparts but the almost doubling in growth during such a difficult time indicates a growing interest in women-led startups from investors. “Though it remained small, the absolute amount and share of funding going to female-led ventures did grow…

Jan

2024

By SETH ONYANGO, BIRD STORY AGENCY

1 in every 3 dollars invested into startups in Africa in 2023 went into climate tech

ENVIRONMENT

CLIMATE tech startups bucked the trend in Africa's venture capital space, actively notching up an impressive $1 billion amidst a broader funding fall-off in 2023. Data tracker, Africa: The Big Deal notes that around 1 in 3 dollars invested into startups on the continent in the forecast period went to climate tech startups. The strength of the sector according to the Deal, illustrates "both the potential of ‘green’ investments in Africa and the increased focus of investors in this space." "While energy and water start-ups took the lion’s share, agtech dominates the early-stage pipeline, also pointing to the need for…

Mar

2023

By The African Mirror

Ivory Coast eyes startups growth with new legislation to support the sector

BUSINESS

BIRD STORY AGENCY IVORY Coast is positioning itself as a significant player in Africa's startup ecosystem with the introduction of a new legislative framework designed to support the country's entrepreneurs. The Ivorian Council of Ministers recently gave the nod to the Startup Act, a framework awaiting parliamentary approval. The proposed bill promises to revolutionise the digital startup landscape by providing crucial financing and support terms to bolster vulnerable enterprises' resilience. Other benefits the Act guarantees include a Startup Act award providing grants. Startups will also benefit from training, promotion, and access to public contracts and international markets. According to Florence…

Mar

2023

By The African Mirror

Nigeria launches $618 million tech fund for young investors

NEWS

NIGERIA launched a $618 million fund to support tech and creative sectors for young investors who struggle to raise capital in Africa's largest economy. The fund - targeting 15 to 35-year-olds - comes at a time when there are concerns locally about the failure of U.S. startup-focused lender SVB Financial Group, which has supported startups in Nigeria. So far only Chipper Cash, a cross-border payments startup, has said it had $1 million in SVB. Some of the biggest startups, including e-commerce firm Jumia and Africa-focused fintech firm Flutterwave, told Reuters they had no exposure to the bank. Vice President Yemi Osinbajo…

Sep

2021

By The African Mirror

Startups in African logistics see fundraising boom

BUSINESS

CONRAD ONYANGO, BIRD AFRICA’S transport and logistics startups are on track to raise more growth funds this year, in deals that could help ignite intra-Africa trade. Since the outbreak of the COVID-19, there has been a rising shift towards tech-enabled transportation across the continent to overcome movement restrictions, improve efficiencies and grow food chain resilience. The wider growth of e-commerce in Africa during the COVID-19 pandemic has also created fresh demand in the logistics sector, sparking a rise in last-mile delivery apps for food and other goods. Baobab Network, a social impact technology accelerator, shows that the transport and logistics…