1. Funding: Energy startups continue to lead funding
In October 2023, 27 African startups secured $144.3 million in funding through 27 fully disclosed investment rounds. This marks a 23.6% increase compared to the $116.7 million raised in September 2023.
It is, however, down 22.6% from 186.4 million in October 2022.
The three sectors with the highest funding are energy with $86.3 million in raises, fintech with $29 million, and health tech with a modest $8.6 million.
In terms of industry performance, several sectors—notably fintech—in the ecosystem have seen a decrease in funding compared to year-ago levels.
However, an interesting trend is emerging: the energy sector has consistently secured the lion’s share of funding since June 2023, accounting for a substantial 43.7% of total capital raised between June 2023 and October 2023.
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In October 2023, East African startups dominated the fundraising landscape, securing an impressive $79.1 million in investments. New African startups claimed second place with $36.8 million in funding, while West and North African counterparts followed closely behind, securing $18.9 million and $9.5 million, respectively.
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The top five deals of the month announced are:
- Kenyan startup M-Kopa’s $65 million debt round from IFC.
- South African fintech Stitch’s $25 million Series A expansion.
- Nigerian WATT’s cleantech $13 million increase.
- Kenya agritech One Acre Fund’s An increase of $7.5 million.
- Kenya Healthtech Maisha Meds $5 million increase.
*Note: This data only includes funding deals announced in October 2023. Increases are often announced later than when deals actually happen. This data also excludes estimated grants from accelerators.
2. Startups: Patricia announces that she plans to start making payments
In October, crypto startup Patricia announced plans to repay customer funds.
The startup, which suffered a $2 million hack in 2022, for the first time offered users with assets tied to the platform the chance to convert their funds into equity.
Patricia also announced that it will begin repaying customers’ funds in November. The startup had initially hired DLM Trust, an SEC-licensed trust company, to handle the repayment, but DLM Trust pulled out after disagreements between the two parties.
3. Layoffs: Dash and WhereIsMyTransport shut down and Majorel lays off 200 employees
Last month, Ghanaian fintech Dash announced its closure. Despite raising $86.1 million in five years, the company had to contend with mismanagement and poor reporting, issues for which the board suspended CEO Prince Boakye Boampong. The closure of Dash will result in the layoff of its 70+ employees.
New African startup Where Is My Transport also announced its closure in October after failing to raise new funding. The startup, which has raised more than $140 million since 2016, will lay off its 140 employees as it winds down.
Meanwhile, Majorel has revealed it will lay off 200 employees
from its subsidiary in Kenya. Sources say the layoffs are due to the court case involving the content management company with Meta and Sama.
4. M&As: Safaricom fully acquires M-Pesa Holdings, Writesea acquires CoverAI
October saw Safaricom complete its acquisition of M-Pesa Holding Company Limited from Vodafone BV. While the acquisition — which cost Safaricom just $1 — was initially announced in May, the telco had to get regulatory approvals before acquiring the corporate management company that holds all M-Pesa deposits.
Three-month-old Nigerian artificial intelligence startup CoverAI was also acquired in October. Writesea, a US-based company that provides services to other companies to help them build and manage their online recruitment platforms, has acquired the startup in a five-figure deal estimated at $50,000.
5. Telecom: Airtel Africa and MTN Nigeria record revenue growth
Just before the end of the month, Airtel Africa released its financial statements for the first nine months of the year. While the company posted a 19.7% increase in revenue, it reportedly took a $13 million after-tax loss due to currency issues.
A 21.76% increase was also recorded by MTN’s subsidiary in Nigeria. The telecommunications financial statements show that while revenues increased by 21.76% to ₦1.77 trillion ($2.1 billion) in the first nine months of 2023, profits fell 45.22% to ₦148 billion ($188 million).
MTN Nigeria also received disturbing news in October after a tax court ordered the telco to pay $72.6 million in back taxes for the years 2007–2017. The telco subsequently revealed that it would appeal the decision.
6. Economy: Nigeria announces plan to upskill 3 million people in technology
In October, Nigeria’s Minister of Communications, Innovation and Digital Economy, Bosun Tijani, announced plns to equip 3 million early to mid-career Nigerians with technology skills by 2027 as part of the ministry’s strategic plan.
At TechCabal’s Moonshot conference, Tijani explained that 3MTT—short for “3 million technical talent (3MTT) Program”—will be developed with a 1–10–100% model that will train 1% of the 3 million participants by February 2024.
7. Big Tech: Amazon Confirms 2024 South African Launch
E-commerce giant Amazon confirmed it launch of its online shopping service in South Africa in 2024. South Africa will become the second African country, after Egypt, to host a local Amazon shopping site.
The company’s launch in South Africa should have happened earlier, but faced a setback after a Western Cape High Court ordered construction to stop of its African headquarters. While the decision has now been overturned, Amazon still has local South African retail laws to comply with before it can begin operations in South Africa.
8. Corporates: Eskom posts R24 billion loss for FY 2022/23
Last month, South African power company Eskom published its financial report for the year 2022/23.
The company suffered losses of up to R24 billion ($1.2 billion), double the R11 billion ($588 million) in losses it recorded for the 2021/22 financial year. The company blames a reduction in its production capacity as well as increased municipal debt for the loss.
CEO Calib Cassim, however, says this is the last of such losses for Eskom.
9. Economy: South African Airways is back
South Africa’s national carrier returned in October.
After a three-year hiatus due to filing for bankruptcy in 2029, South African Airways (SAA) re-released October and announced a new route connecting Cape Town and Johannesburg to Sao Paulo, Brazil’s largest city.
10. Investments: Eight organizations for investments in various sectors
While funding may be low at the moment, in October several companies announced new funds that will be pumped into many businesses across the continent.
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