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TowerCo gets $30m from UK agency for telco towers in Tanzania

TowerCo gets $30m from UK agency for telco towers in Tanzania

TowerCo of Africa (ToA) Tanzania, a subsidiary of the Pan-African telecom service provider Axian Telecom, ...

  • 2 May 2022
  • Tanzania

ECOWAS Introduces New Digital Tax Regulations for Cross-Border E-commerce

ECOWAS introduces new digital tax regulations for cross-border e-commerce, impacting digital transactions across West Africa ...
  • 14 April 2022
  • Business
Freight Forwarding

Top 10 Freight Forwarding Companies to Use in Nigeria

Freight forwarding is essential for businesses involved in international trade, ensuring goods are efficiently transported ...

  • 12 April 2022
  • Business

Nigerian Startup Paga Expands Digital Payments to Gambia

Nigerian startup Paga announces the expansion of its digital payments platform to Gambia, aiming to ...
  • 5 April 2022
  • Startups and Innovation
Africa is facing a significant drop in new investments due to tough market conditions and growing uncertainty among investors. As a result, fund managers are stepping back from large deals, according to a new study. The report by the African Private Equity and Venture Capital Association (AVCA) highlights the state of private investment activity in Africa for the first half of 2024, ending on June 30. It reveals that large deals worth $100 million or more have been particularly affected by this ongoing capital crunch. Even the financial sector, which usually attracts a lot of investor interest, has seen a major downturn. The report states, “The current tight market conditions and increased investor uncertainty continue to affect the availability of capital for fund managers focused on Africa, ultimately impacting deal volume and value in the first half of 2024.” For the second year in a row, the value of deals around the $100 million mark has decreased, with those exceeding $100 million experiencing a staggering 91% drop compared to last year. To keep investment activity alive, fund managers are now concentrating on smaller deals. During the first half of 2024, a remarkable 88% of investment value in Africa was directed towards deals under $50 million. This is the first time since 2018 that such smaller deals have made up more than 50% of the total investment value on the continent. African economies faced another tough period in the first half of 2024, continuing a global trend that has persisted in recent years. Despite inflation stabilizing in major economies like Kenya and South Africa, the economic growth and recovery projections for this period did not materialize. The private capital sector in Africa faced significant challenges, recording 182 deals with a total value of $900 million. This marks a 17% drop in the number of deals and a 66% decrease in value compared to last year. The financial sector remains the largest area for investment in Africa, attracting 24% of deal volume and 39% of investment value. However, deal volumes in this sector fell by 4% year-on-year, while deal values dropped by 64%. This decline is largely due to a decrease in venture capital funding, which has particularly impacted the fintech industry. Since 2023, the venture capital sector has seen a slowdown, characterized by limited capital availability and many startups shutting down. Although there is still strong investor interest in financial services, the ongoing reduction in venture capital funding has created significant challenges within the sector. This trend is not unique to Africa but reflects a global volatility in venture capital. In this challenging investment climate, East and West Africa showed some resilience. East Africa maintained the same volume of deals (45) as in the first half of 2023, despite a continent-wide decline in deal volumes. This performance allowed East Africa and West Africa to capture the largest share of deal volumes, each region accounting for 25%. Both regions also attracted the highest share of deal values, at 30%. While other regions faced declines, West Africa was the only one to see a slight increase in deal values, rising by 3% year-on-year. The study notes that for the third consecutive year, fund managers focused on Africa raised about $1 billion in closed funds during the first half of the year. However, fundraising strategies have shifted, with venture capital and buyouts now making up nearly half of the fundraising efforts. Interim fundraising has struggled, securing only $300 million in commitments, a decline of 80% compared to last year. The report highlights that the first half of 2024 was particularly difficult for first-time fund managers seeking final closes. In contrast to the trends in the first half of 2023, these managers did not achieve any final closes in 2024. With capital becoming increasingly scarce and investors exercising more caution, it remains uncertain if any first-time fund managers will close funds in the second half of 2024. Fund Managers in Africa Shift Focus Amid Investment Decline

Fund Managers in Africa Shift Focus Amid Investment Decline

Africa is facing a significant drop in new investments due to tough market conditions and ...

  • 3 April 2022
  • Africa
Salaam Somali Bank solidify its growth in Somalia banking sector

Salaam Somali Bank solidify its growth in Somalia banking sector

Salaam Somali Bank (SSB), based in Mogadishu, Somalia’s capital, is recognized as the country’s oldest ...

  • 2 April 2022
  • Africa

Ivory Coast Expands Cocoa Production, Aims to Strengthen Global Market Position

Ivory Coast boosts cocoa production to enhance its global market position, aiming to remain a ...
  • 25 March 2022
  • Business
A former Kenyan permanent representative to the UN has expressed his disapproval of a recent statement from the US government regarding governance issues, even though the Kenyan administration largely concurs with its sentiments. The focus of the discussion pertains to the ongoing vetting process for nominated Cabinet secretaries, particularly those alleged to have integrity concerns. The US Embassy issued a statement urging Kenyan MPs to reject nominees with compromised integrity, following protests that led President William Ruto to dismiss his entire Cabinet. “As Kenyans prepare for the vetting of Cabinet nominees starting today, we acknowledge the importance of integrity in public service and the National Assembly’s crucial role in enforcing Chapter Six of Kenya’s Constitution,” the Embassy stated on August 1, without naming specific individuals. However, Martin Kimani, who served as Kenya’s permanent representative to the UN until April, viewed the US comments as unwelcome lecturing. He suggested that this criticism distracts from America's own shortcomings on the global stage, citing issues like the ongoing conflict in Gaza where a ceasefire remains elusive. “Since my former colleagues at the Ministry of Foreign Affairs are bound by diplomatic norms, I’ll address this unwarranted lecture from a US grappling with political violence and declining trust in its electoral systems,” Dr. Kimani, now at a think tank in New York, wrote on X. “Less lecturing, more focus on renewing US democracy, and achieving a ceasefire in Gaza.” On the following day, the Kenyan government opted not to publicly rebut the US Embassy’s remarks, despite agreeing on the importance of prioritizing integrity. Dr. Korir Sing’oei, Kenya’s Principal Secretary for Foreign Affairs, stated, “The statement reflects a view shared by many Kenyans and aligns with our Constitution. We have no serious issue with it.” The decision to dissolve the Cabinet was largely influenced by pressure from youth protesters, who initially demanded the withdrawal of a controversial finance bill. The US government had initially refrained from commenting on the protests but later warned Nairobi against using excessive force and emphasized the need to respect civil liberties. The new Cabinet nominees include some opposition figures, as well as individuals facing legal challenges over alleged misappropriation of funds. Critics pointed out that the US found itself in a delicate position as protests erupted in June, suggesting it had overlooked the controversial tax laws being proposed by Nairobi. Kenya ex-envoy lays into US over integrity call as Nairobi sees, hears no evil

Kenya ex-envoy lays into US over integrity call as Nairobi sees, hears no evil

A former Kenyan permanent representative to the UN has expressed his disapproval of a recent ...

  • 22 March 2022
  • Kenya
MTN Group

MTN Group Predicts Steep Earnings Decline, Shocking Investors

MTN Group, one of Africa’s largest telecom companies, recently announced an expected 140-150% decline in ...

  • 21 March 2022
  • Business
Cocoa Production

Agriculture: Côte d’Ivoire’s Role as the Global Leader in Cocoa Production

Côte d’Ivoire, often called the world’s cocoa capital, plays a vital role in the global ...

  • 17 March 2022
  • Côte d'Ivoire (Ivory Coast)
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Today in History

January 21st is the day in 2008 that Black Monday in worldwide stock markets.

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