Africa Destiny: New Train of Life for Central and Southern African Mining Regions

– Contact author: Said El Mansour Cherkaoui, Ph.D.

– saidcherkaoui@triconsultingkyoto.com

To contact the Author for public speaking, advising, or consulting engagement, please send an email to: saidcherkaoui@triconsultingkyoto.com

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★ • Said El Mansour Cherkaoui Ph.D. ★•★ Said Cherkaoui Ph.D. – 2/25/2024

📯The Simandou mountains, after decades of anticipation, the stage is set for the world’s largest mining investment.

🇬🇧 Rio Tinto, a British mining company, and 🇨🇳 Chinese State-Owned Enterprises (SOEs) have joined forces to unlock the secrets hidden within Simandou’s ancient peaks.

Mining in Simandou will have a profound impact on Guinea’s economy:

Revenue Generation: Simandou’s iron ore reserves are estimated to be among the largest globally. Guinea will witness a surge in export revenues from iron ore sales.
The influx of foreign investment and royalties will bolster Guinea’s fiscal position.

Employment Opportunities: Mining projects like Simfer will create thousands of jobs—from skilled engineers to laborers. This employment boost will alleviate unemployment and enhance livelihoods.
Ancillary services, such as logistics, maintenance, and catering, will also generate employment.

Infrastructure Development: To support mining activities, Guinea will invest in infrastructure. Roads, railways, and ports will improve connectivity, benefiting other sectors as well.
Energy infrastructure will expand to meet the industry’s demands.

Foreign Direct Investment (FDI): Simandou’s allure will attract more FDI. International companies will invest in mining operations, technology, and equipment.
This injection of capital will stimulate economic growth beyond the mining sector.

Trade Balance and Currency Stability: Iron ore exports will contribute significantly to Guinea’s trade balance. Increased exports will offset imports, enhancing currency stability.
The Guinean franc (GNF) may strengthen against other currencies.

Local Supply Chain: The mining industry will create demand for local goods and services. Suppliers, contractors, and small businesses will benefit.
Local procurement will foster economic linkages.

Skills Development and Training: The mining sector will invest in skills development. Training programs will empower Guineans with technical expertise.

Knowledge transfer from international experts will enhance local capacity.
Social and Community Development: Responsible mining practices will include community development initiatives. Investments in education, healthcare, and infrastructure will uplift local communities.

Simandou’s success should translate into improved living standards for nearby residents.
Diversification and Economic Resilience: Guinea’s economy has been heavily reliant on agriculture. Mining diversification will reduce vulnerability to commodity price fluctuations.

A robust mining sector will contribute to overall economic resilience.
Challenges and Mitigation: Environmental and social impacts must be managed carefully. Sustainable practices and community engagement are crucial.

Revenue transparency and governance are essential to prevent resource curse.

Francesco Sassi •

📯🇬🇳Guinea will host the world’s largest mining investment.

After decades,🇬🇧UK-based Rio Tinto and 🇨🇳Chinese SOEs have decided to mine the Simandou mountains and finalize the Simfer and WCS projects.

Yet, tensions are increasing within the country and in Western Africa.

After 27 years of wrangling, twists, and turns, Rio Tinto’s board has committed to realizing the world’s largest mining project in Guinea, highlighting the importance of Africa as the meeting point of Western and Eastern energy geopolitics and transition strategies. Rio Tinto, with partners from all around the world, including 🇨🇳 China’s Chinalco, the world’s largest aluminum producer, and Baowu, the world’s biggest steel producer, is realizing a series of giant infrastructures.

By the end of the decade, mines, railways, freeways,s and ports will make it possible to connect the Simfer and WCS mines in the Simandou mountains, in south-eastern Guinea, and close to the border with🇨🇮Ivory Coast, to the Atlantic Coast.

From here, high-grade iron ore mined in Guinea, among the purest assets of this commodity available in the world, will be available to global markets and, in particular, to major steel and aluminum producers in China. They are desperate to lower the emissions from hundreds of plants across the country and ready to commit billions to the world’s largest project of this kind.

Energy transition and energy geopolitics meet once again in Guinea.

The government has long supported the implementation of these projects. The astonishing price tag is around $20 billion, larger than many world-class oil and gas projects discussed over the last two decades. The Chinese government is fully committed to sustaining such international infrastructures to decarbonize several industries, expanding the energy and mining diplomacy in Africa, while partnering with Western firms in such endeavors, absorbing critical know-how. Prices of critical raw materials have been very volatile over the last few years. Geopolitics and economic crises influenced such trends.

Partners of Guinea’s projects bet on growing demand, triggered by the energy transition, and lasting revenues. Nevertheless, since the 2021 Guinea coup by Mamady Doumbouya, the junta has grown in power and has isolated the country from its neighbors. The appointed government has just been dissolved without an explanation, while the regime has ordered to close the borders.

Free and democratic elections are expected in just 10 months…

Africa is Lightening the World and Building Trains To Extract the Treasures of the Lands

Africa Between the West and the East Sitting at Two Chairs at the Same Time?

Lobito corridor: Hoping to break China’s grip on African ore – DW – 02/08/2024

Congo, Angola, and Zambia are seeking to revive a trade route dating back to colonial times. Europe and the US. … Read more

The Lobito Corridor has become a focal point in the geopolitical and economic competition between the West and China in Africa.

Lobito Corridor vs. TAZARA (Tanzania-Zambia Railway Authority):
- The United States and the European Union are keen on constructing a 1,300-kilometer railway from the Port of Lobito in Angola to the border town of Lua, with an additional 400 kilometers extending into the Democratic Republic of Congo (DRC) to the mining town of Kolwezi.
- Meanwhile, China has plans to rehabilitate the TAZARA, which connects Tanzania and Zambia.
- These competing rail projects signify the start of President Joe Biden’s strategic competition with China on African soil.
- The West aims to use the Lobito Corridor to transport strategic minerals from the DRC and Zambia to the US and the EU, while China focuses on TAZARA.
- Citizens of these African countries should ensure watertight agreements to safeguard their interests, as both power blocks pursue their own goals¹.
China’s TAZARA Proposal:
- Chinese investors have proposed investing over $1 billion in the Tanzania-Zambia Railway Authority (TAZARA) under a public-private partnership model.
- China Civil Engineering Construction Corporation (CCECC) is negotiating the concession to operate the railway line.
- The revitalization of TAZARA is seen as an important project for freedom and peace in the new era, according to the Chinese Ambassador to Zambia¹.
Lobito Corridor and the West’s Interests:
- The West’s support for the Lobito Corridor is interpreted as a geopolitical move.
- By linking the Copper Belt to the Atlantic Ocean, the West aims to maintain a stake in the global value chain for critical energy transition minerals.
- These multi-billion-dollar investments are not benevolent; they serve the West’s interests in securing access to vital resources².
The New Great Game in Africa:
- The Lobito Corridor serves as the battleground where the US and China vie for influence and control.
- An intricate chessboard where nations strategically compete for dominance in infrastructure projects ³.

In this high-stakes game, the Lobito Corridor and TAZARA represent more than mere railways—they symbolize the struggle for power, resources, and influence on the African continent.

Washington is supporting the Lobito corridor, a $2.3 billion plan to upgrade an existing line that runs to the Atlantic port of Lobito from the Democratic Republic of Congo and build about 800 kilometers (500 miles) of new track into Zambia

In collaboration with the European Union, Washington is actively supporting the development of the Lobito Corridor. This transformative economic corridor aims to connect the southern Democratic Republic of the Congo and northwestern Zambia to regional and global trade markets via the Port of Lobito in Angola. Here are the key points:

Lobito Corridor Overview:

The Lobito Corridor is a critical infrastructure project from the Democratic Republic of the Congo (DRC) to the Atlantic Ocean.
It facilitates trade and connectivity by providing a direct route from the DRC to the Angolan port city of Lobito.
The corridor aims to enhance the regional circulation of goods and promote mobility for citizens.

U.S.-EU Partnership:

The United States and the European Union have joined forces to support the Lobito Corridor’s development.
They are launching feasibility studies for a new greenfield rail line expansion between Zambia and Angola.
This collaborative approach demonstrates the power of international partnerships in infrastructure development.

Economic Benefits:

Once fully operational, the corridor will enhance export possibilities for Zambia, Angola, and the DRC.
It will reduce logistics costs and the carbon footprint associated with exporting metals, agricultural goods, and other products.
Investments in digital access and agricultural value chains will increase regional competitiveness.

Immediate Next Steps:

Pre-feasibility studies will be conducted for the construction of the new Zambia-Lobito railway line from eastern Angola through northern Zambia.
This builds upon the initial U.S.-led support to refurbish the existing railway section from the Lobito port in Angola to the Democratic Republic of the Congo.

The Lobito Corridor and TAZARA represent not only infrastructure advancements but also geopolitical maneuvering in the quest for critical resources.

The modernization of the Tanzania-Zambia Railway (TAZARA) and the construction of the Lobito Corridor are indeed significant developments in Africa. Let’s delve into the context and implications:

Lobito Corridor:

The United States and the European Union are actively involved in constructing the 1,300 km railway that stretches from the Port of Lobito in Angola to the border town of Lua, with an additional 400 km extension to the mining town of Kolwezi in the Democratic Republic of Congo (DRC) ¹.
This ambitious project aims to enhance transportation infrastructure, facilitate trade, and boost economic connectivity in the region.
The Lobito Corridor is strategically positioned to link the Atlantic coast to the mineral-rich regions of central Africa.

Tanzania-Zambia Railway (TAZARA):

China has proposed a $1 billion investment in rehabilitating the TAZARA under a public-private partnership (PPP) model ¹.
The TAZARA railway, originally funded by Mao Zedong’s government in the 1970s, connects Tanzania and Zambia.
China’s involvement in revitalizing TAZARA signifies its continued interest in African infrastructure development and resource access ².

Geopolitical Rivalry and Critical Raw Materials (CRM):

These multi-billion-dollar railway investments are not purely benevolent gestures. Instead, they reflect the geopolitical and economic rivalry between major powers.
Both the West (represented by the US and the EU) and China are vying for access to critical raw materials (such as minerals) found in Africa.
The Lobito Corridor and TAZARA projects serve as conduits for transporting these valuable resources.
President Joe Biden’s announcement of the US Strategic Competition with China on African soil underscores the intensity of this rivalry ¹.
Senator Robert Menendez emphasized that China’s actions challenge the United States and the international community across various dimensions of power ¹.

Safeguarding African Interests:

African countries involved in these projects must negotiate watertight agreements to protect their interests.
While the infrastructure development benefits the region, it’s essential to recognize that both power blocs are pursuing their own strategic goals.

🌍EXPLORE⛏️💰FURTHER🌍

– Contact author:
– saidcherkaoui@triconsultingkyoto.com

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The following external articles are recommended to you by Said El Mansour Cherkaoui, Ph.D. the Author and Editor of • https://moroccodigitall.com •

Angola awards $333m Lobito rail project to Trafigura – … businesslive.co.za

CENTRAL AFRICA : Why Trafigura has positioned itself on the Lobito-Kolwezi corridor – … africaintelligence.com

Angola awards 30-year concession for Lobito corridor … railjournal.com

A fresh start: Lobito corridor concessionaire targets growth … railjournal.com

Nigeria’s Top 5 Railway Projects Gulp $26 Billion – Report …dmarketforces.com

Africa Destiny: Investing Malawi

Malawi is a landlocked country in southern Africa , sharing its borders with Mozambique, Zambia, and Tanzania. The country’s estimated population is 20.41 million (2022) with an annual growth rate of 2.6%, and a wealth of natural resources. However, Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

The government of Malawi has been actively promoting foreign investment and has implemented policies to make the investment process more efficient. In January 2021, the government launched the Malawi 2063 Vision that aims to transform Malawi into a wealthy, self-reliant, industrialized upper-middle-income country, through a focus on agriculture commercialization, industrialization, and urbanization. The first 10-year implementation plan anchors the World Bank’s Country Partnership Framework (CPF) FY21- FY25.

The country’s strategic location and access to the African market make it an attractive destination for investors looking to tap into the continent’s potential.

Investment opportunities in Malawi include the agriculture, mining, and tourism sectors. Agriculture is the mainstay of Malawi’s economy, with majority of the population relying on it for their livelihoods. There is a growing demand for food in the country and the region, making it an attractive sector for investors. The mining sector, although relatively small, has the potential to grow in the future with the discovery of coal and other minerals. The tourism sector is also a promising area of investment, with the country home to beautiful lakes, national parks, and a rich cultural heritage.

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Africa Digital – Morocco Digitall 🌍 Said El Mansour Cherkaoui Works and Publications Online on Africa / Afrique 🌍 For your perusal thought Morocco is […] Read more

Malawi is a landlocked country in southern Africa with a growing economy and a wealth of natural resources. The Malawi government actively encourages foreign investment and has implemented policies to make the investment process more efficient. The country’s strategic location and its access to the African market make it an attractive destination for investors seeking to exploit the continent’s potential.

Investment opportunities in Malawi include the agriculture, mining and tourism sectors. Agriculture is the mainstay of Malawi’s economy and the majority of the population depends on it for their livelihood. There is a growing demand for food products in the country and the region, making it an attractive sector for investors. The mining sector, although relatively small, has the potential to grow in the future through the discovery of coal and other minerals. The tourism sector is also a promising investment area, as the country is home to magnificent lakes, national parks and a rich cultural heritage.

Malawi: Buying and Selling

Malawi has been comparatively slow to embrace the internet and e-commerce in general as poor infrastructure and high taxes make internet access prohibitively expensive for the majority of Malawians, resulting in low access rates across the country.

Internet accessData from the International Telecommunication Union (ITU) shows that as of December 2017 Malawi had an internet penetration rate of 9.5%.

E-Commerce, Ecosystem and Market in Malawi

According to a 2017 report issued by the Collaboration on International ICT Policy for East and Southern Africa (Cipesa), Malawi, which has four operational telecommunication service providers, including Airtel and Telekom Networks Malawi (TNM), has the lowest penetration rate for mobile services in southern Africa, only 36%. The service offered can be unreliable, with a weak signal and daily congestion. Call rates are also among the highest in the region.

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Dr. Said El Mansour Cherkaoui 9/11/2020 – El Jadida – Morocco – Oakland – California What are the prominent hurdles and hindrances for the Integration of Africa through Ecommerce and Digital Business ★ Inadequate terrestrial broadband backbone ★ High costs of broadband access (last-mile) limit growth of the cloud-computing market ★ Poor quality of service…Continue Reading →

Africa Ecommerce

Continuously updated with new inputs and trends For Better or Worse Emergent Technologies Changing Africa! Are these efforts going to increase the use of Information Communication Technologies and develop broadband penetration in Africa? Will technology increase the divide or help to integrate Africa? What are the Destiny and the Reality of the Technology in the…Continue Reading →

A national fibre backbone is nearing completion, while the country recently gained access to international submarine fibre optic cables via a transit link from neighbouring countries.

The most popular web search engines in Malawi are Google (93.3%), Bing and Yahoo (5.5% and 1.6% respectively).E-commerce marketE-commerce is still in its infancy in Malawi, as the country lacks the ICT and online payment infrastructures necessary to boost this sector.

In UNCTAD’s 2018 B2C E-commerce Index, Malawi ranked 134th out of 151 economies worldwide in terms of e-commerce, and 31st out of 44 African countries.

Recently, banks and mobile network providers have been working to implement m-commerce applications including m-banking, m-shopping, mobile information services, m-marketing and m-health. However, the range of applications is being limited by a number of technical, business and policy challenges. For example, with TNM Mpamba or Airtel Money, Malawians are able to pay water bills, buy prepaid electricity tokens, pay television subscription and buy phone vouchers. Malawi’s e-commerce market offers a small range of goods and services, with Jumia.mw being the biggest marketplace.

Main social networks used in the country are Facebook (with an estimated 720,000 users as of December 2017, a 3.8% penetration rate), Pinterest, Twitter and YouTube; while Whatsapp is the main instant messaging app.

Digital Africa

African Development Bank Group

Malawi – Agricultural Infrastructure and Youth Agribusiness Project (Medium Scale Irrig & Youth Empowerment) – IPR Decembre 2023

https://www.afdb.org/en/documents/malawi-agricultural-infrastructure-and-youth-agribusiness-project-medium-scale-irrig-youth-empowerment-ipr-decembre-2023 – Published on 18-Jan-2024

More on the Investment by the ADB in Malawi can be found at this link: https://www.afdb.org/en/search/content/Malawi

On 10-Feb-2022, the African Development Fund signed a $14.2 million grant agreement with #Malawi to support #digitalization, #financialinclusion, and #competitiveness.

Malawi’s Minister of Finance and Economic Affairs, Sosten Alfred Gwengwe, said during the project will contribute to Malawi’s long-term objective of inclusive wealth creation supported by an inclusive financial system and digital economy.

The African Development Bank Country Manager for Malawi, Macmillan Anyanwu, said the signing was an important step towards promoting the use of electronic transactions in #Malawi to increase access to affordable financial services, particularly amongst women, youth, and rural dwellers. “The project will also enable more efficient business transactions, offering small businesses the opportunity to gain access to new markets,” he said.

https://www.afdb.org/en/news-and-events/press-releases/malawi-african-development-fund-signs-142-grant-agreement-financial-digitalization-initiative-49073

African Development Fund signs $14.2 grant agreement for financial digitalization initiativeafdb.org • 2 min read

It seems like Digitization of Africa is an exclusive space for the African Development Bank and the World Bank giving the major realizations are conducted and promoted by them in their respective presentation such as the following:

Digital investments and reforms are being scaled up significantly and will support African countries in accelerating their digital transformation. The three main priorities moving forward are: 

The World Bank is actively supporting digitalization initiatives in Sub-Saharan Africa, using both existing and future digital infrastructure to ensure that digital technologies better meet the needs of people, households, and firms, and strengthening a virtuous cycle of technology-led transformation.

Accelerating affordable broadband for all by closing the access gap through sector reforms and catalytic investments in connecting rural/remote areas, schools, clinics, and community centers, and addressing the usage and inclusion gaps to include affordability, devices, gender and inclusion, and digital literacy.
Scaling up inclusive and safe DPI through investments in digital ID, payment systems, and data sharing; strengthening trust and resilience through improved cloud services, data protection, and cybersecurity; and facilitating high-impact digital services (e.g., financial services, tax declaration, agriculture, e-health, and cash transfers)
Building in-demand digital job skills for digitally enabled industries and developing local information technology industry, content, and support services.

Sources consulted:

Invest in Malawi – Malawi Business Opportunities

The World Bank in Malawi

Digital Transformation Drives Development in Africa 

Why US tech giants need Africa

The companies are well positioned to benefit from the growth of Africa’s tech but they must address the needs of African users

Kampala, Uganda | THE INDEPENDENT | Last year, Google’s Equiano undersea cable began conveying terabytes of data per second to and from African shores. Valued at $1 billion, Equiano stretches from Western Europe to South Africa and has 20 times the capacity of the previous cables that served the continent. According to Google projections, the new cable has the potential to transform Africa’s economy by creating millions of jobs, reducing data costs by nearly 20%, and enabling a fivefold increase in internet speeds.

Other prominent US-based tech companies are also investing heavily in Africa. Amazon is in the midst of constructing its African headquarters in South Africa, while Microsoft recently launched an initiative to bring internet access to 100 million Africans by 2025. Meanwhile, Meta (formerly Facebook) is building 2Africa, an undersea cable expected to be the world’s longest when it is completed in 2024.

The impetus for these investments is the growing recognition that the future of America’s technology industry hinges on expanding its African customer base. Today, a little over a third of Africa’s 1.4 billion people use the internet, representing a small fraction of the world’s internet users. But the continent’s population is projected to reach 2.5 billion by 2050 one-quarter of the global total. The vast majority of Africans are expected to become internet users by then, offering tech companies opportunities that no other region can match.

Still, there is no guarantee that the investments made by Google and other US tech companies will pay off. In recent years, foreign competitors, particularly China-based firms, have also recognized Africa’s immense potential for the technology sector, leading to intense competition for market shares.

Currently, no single actor dominates African markets. Whereas Chinese companies lead in some sectors, such as telecommunications hardware, US companies prevail in software platforms, operating systems, and search. Meanwhile, African-owned fintech companies and startups are growing rapidly, and the continent’s undersea cables and data centers are managed by a diverse set of local and remote enterprises.

The most persistent challenge facing Big Tech firms in Africa is their ignorance of and disregard for Africans’ preferences and needs. For example, some US analysts have expressed concern about the rise of Chinese companies such as Transsion, which manufactures nearly half of Africa’s smartphones. But the main reason companies such as Apple and Google struggle to compete is that their products are priced as luxury goods and are ill-suited for consumers in low-income countries. The base price of the iPhone 14, the top-selling phone in the United States, is $799, nearly half of Sub-Saharan Africa’s GDP per capita. Transsion’s phones, by contrast, sell for as little as $20.

Likewise, data localization is widely supported by African governments, researchers, and citizens. But Big Tech companies vehemently oppose efforts to store data on African citizens within their countries of origin.

To be sure, data localization is not always cost-effective and could be used by governments to undermine civil rights. But studies commissioned by the Internet Society show that efforts to localize internet traffic in Nigeria and Kenya have reduced prices, decreased latency, and fueled the growth of the local tech ecosystem. Conversely, as Nima Elmi observed, Big Tech’s approach effectively perpetuates African countries’ status as consumers of “foreign tech innovations that are developed using their own data and then sold back to them.”

Big Tech firms’ labor and recruitment practices are another example of their disregard for Africa’s needs and interests. At the top end of the pay scale, African policymakers are concerned that tech giants’ tendency to poach top talent will undermine the growth of their domestic industries. Meanwhile, these companies face legal action for subjecting content moderators, many of whom are based in Nairobi, to traumatizing experiences and inadequate wages.

Moreover, the proliferation of disinformation and incitement on social media has severely eroded the reputation of US-based platforms like Facebook, which has fueled violent conflict in Ethiopia and provided fertile ground for extremist groups such as the al-Qaeda-backed al-Shabaab. For years, Facebook ignored organized criminal groups’ use of its platform to lure Africans into domestic servitude. The company finally acted only after Apple threatened to remove Facebook and Instagram from its app store.

Given Big Tech’s record of ignoring and neglecting Africans’ needs and concerns, it is no wonder that African governments have begun to explore alternatives. Nigeria, for example, imposed a seven-month ban on Twitter in 2021, lifting it only after the company agreed to open a local office, pay taxes, and cooperate with national-security agencies. Other countries, such as Kenya, have threatened similar bans.

With their unparalleled expertise and world-class technology, US companies are well positioned to benefit from the growth of Africa’s tech market. But to maximize this opportunity, they must address the needs of African users. Moreover, establishing stronger partnerships with the burgeoning African tech industry could greatly benefit these companies, enabling them to tailor their technologies to the preferences of underserved users and mitigate the impact of disinformation. By fostering relationships with Africa-based researchers and civil-society groups, US tech companies could support the creation of a healthy digital ecosystem that promotes prosperity, security, and accountability for all users.

Over the past few years, Big Tech firms’ failure to address privacy concerns and combat disinformation has prompted a growing debate about the apparent conflict between their professed values and their bottom lines. But to succeed in Africa, US-based tech companies must recognize the falseness of this dichotomy. While investing in African businesses may yield financial rewards, investing in African citizens is the key to unlocking the continent’s vast economic potential.

***** The Independent June 13, 2023 Business, In The Magazine – Source: Project Syndicate.

AFRICAFRIQUE TECH ECOSYSTEM

The Reality of Digital Network and Startup / Tech Hubs in Africa

During the first quarter of 2020, Africa has 522 million internet users representing 11.5% and was ranked third in the global tally. The first one wa Asia that accounts for more than half of the global internet users. Data gathered by Learnbonds indicates that during the first quarter of 2020, the Asian continent accounted for 2.3 billion users representing about 50.3% of the global users. From the same data, Europe has the second-highest number of internet users at 15.9% which represents 727 million users.

With 453 million users, Latin America and the Caribbean region comes fourth. The region accounts for 10.1% of the worldwide internet users. In fifth place is North America with 327 million users, which represents 7.8% followed by the Middle East at 175 million users (3.9%). Oceania and the Australian region account for the least global internet user globally at 29 million which represents 0.6%.

The rise of Africa is a confirmation of a trend that compared to all regions, the strongest growth has been reported in Africa, where the percentage of people using the Internet increased from 2.1 per cent in 2005 to 24.4 per cent in 2018, according to ITU data. … The theme, “Boosting Africa’s Digital Economy,” recognizes the key role of digital technologies in the modern economy. May 27, 2019

Africa Needs to Think Big and Think Fresh

According to certain indicators, Africa is hosting only 11% of the world’s Internet subscribers and only 35.2% of the African population are accessing the Internet and mainly trough the mobile phone.

In response, efforts were made by the African governments to increase the development of fiber optique as network. Taking the example on the American, European, Indian and Chinese markets, African regulators are trying to implement policies “that encourage network sharing and access to ducts, thus facilitating the roll out of networks and reducing deployment costs. This trend is actually happening in Kenya, Nigeria, Ghana, Tunisia and Nigeria.

However, some people in Africa have been abandoned along the way in recent years as technology and robotisation have reduced the wages of some communities “of workers, says Christine Lagarde, the director general of the IMF.

On the other hand, the Director of ITU’s Telecommunication Development Bureau, Doreen Bogdan-Martin said: “Africa cannot afford to think small or act slowly, and at the current rate of progress, hundreds of millions of African children will still be denied the opportunity to realize their potential. Without more rapid digital transformation, Africa will not succeed in creating the huge number of new jobs needed to match its population growth.”

Building a solid digital economy will require a focus in key areas, such as: digital infrastructure, digital literacy and skills, digital financial services, digital platforms, and digital entrepreneurship and innovation, says Ms Bogdan-Martin.

“Can we attain the goal of universal and affordable access to broadband for all Africans by 2030? Not without a paradigm shift,” says Ms Bogdan-Martin. “Africa’s digital transformation is going to need all hands on deck. We need to work together more effectively; engage old and new partners more effectively; innovate more effectively.”

“We need a coordinated effort to push forward the digital transformation of Africa through shared vision, policies and measures to support pan-African digital integration,” says Ms Bogdan-Martin. “Digital transformation will provide the springboard for a leap into the African Century. Africa’s youth are ready and waiting to make that leap. We must not let them down.”

Startup and Tech Trends in Africa

In a challenge to Uber’s (Dara Khosrowshahi) dominance in South Africa, Estonia-based ride-hailing app Bolt (Markus Villig) to double its service there after having raised more than $200 million from investors since its launch in 2013. Reuters

12 African startups to watch in 2020

0BY GABRIELLA MULLIGAN ON JANUARY 2, 2020

Ugandan investtech startup XENO raises $150k pre-seed funding round

Ugandan online investment advisory startup XENO has raised a US$150,000 pre-seed funding round to power its continued growth. Launched in… READ MORE

12 African startups to watch in 2020

For the Disrupt Africa team, it has been another fascinating year of conversations and meetings with many hundreds of inspiring,… READ MORE

While you’re at it, check these picks for 2016, 2017, 2018 and 2019.

For the Disrupt Africa team, it has been another fascinating year of conversations and meetings with many hundreds of inspiring, innovative African tech startups.

But which of these companies do we think have the brightest futures ahead of them? Here is our pick of the top 12 African startups to watch out for in 2020.

NORTH AFRICA

Trella

Egyptian trucking marketplace Trella is our first rising star of 2019, having raised more than US$600,000 in a pre-seed funding round; selected for Silicon Valley-based accelerator Y Combinator; and concluding the year by acquiring local competitor Trukt.

Founded last year, Trella operates a B2B trucking marketplace, connecting shippers with carriers in real-time, with the goal of making the entire supply chain faster and more reliable while reducing slack and exceptions.

This year’s impressive list of successes comes from a team that told Disrupt Africa they are taking growth “step-by-step”, and not making any hasty moves – so we’re eagerly anticipating the next set of well-planned moves the startup makes.

Eksab

Also from Egypt, we’re betting fantasy sports platform Eksab will keep up its winning streak in 2020.

Eksab is looking to tap into the MENA region’s love for football by providing users with exciting and engaging mobile games, with the aim of becoming the leading fantasy sports site in the region.

In its first year, the startup processed more than five million predictions, and in June secured a six-figure seed investment from 500 Startups to help it scale its product across the region.

With such a solid start to the startup’s growth plans, we’ll be keeping a keen eye on Eksab over the coming months.

Kaoun

Tunisian fintech Kaoun is tackling the epic question of financial inclusion. The company’s first product, Flouci, is a mobile and web app that allows users to create free bank accounts remotely; facilitating the process through an innovative Know Your Customer (KYC) system via smartphone.

A critical component to any startup’s success, the team behind Kaoun is top-notch: co-founders Nebras Jemel, Anis Kallel, and Rostom Bouazizi put their studies in the United States – at Harvard University, University of Rochester, and Columbia University respectively – on hold to come back to Tunisia and build a fintech startup.

Launched in 2018, Kaoun has already raised funding from two angel investors, and secured key partnerships with two Tunisian banks and the country’s National Digital Certification Agency. This startup is definitely worth watching.

SOUTHERN AFRICA

FlexClub

Here at Disrupt Africa, we’re interested to see how FlexClub fares in 2020, after a solid start since launching last year.

The South African startup allows users to purchase vehicles which are then matched with Uber drivers who pay a weekly rental charge to the investor.

With a solid founding team – including two former Uber employees; the startup raised US$1.2 million in a seed round led by CRE Venture Capital and also featuring Montegray Capital and Savannah Fund in March, amidst plans to grow its team and expand into new geographies.

Intergreatme

Regtech startup Intergreatme can be credited as one of the first crowdfunding successes of Southern Africa; securing a whirlwind ZAR32.436 million (US$2.19 million) from 406 investors via the Uprise.Africa platform in May. Within six days it had already raised ZAR28.5 million (US$1.98m), with the startup limiting the raise to ZAR32 million which it managed in 2 weeks. The raise was marred slightly by the fact the startup later decided to reject a bulk of it after some investors failed compliance processes.

The fact still stands the startup is an attractive proposition, however, and we get what all the hype is about. Intergreatme has developed a web and app platform that digitises verified personal information for over 25 million credit-active South Africans; for streamlined use across businesses and other organisations.

We can’t wait to see what the startup does next, as we’re sure 2020 is going to be an immense year.

Pineapple

Insurtech startup Pineapple is the third South African venture to make our watch list for 2020.

Founded in 2017, Pineapple allows users to get quotes and insurance on items with just the snap of a picture.

The startup has been going from strength to strength since launching, raising seed funding, and taking part in Google’s Launchpad Africa accelerator and the US-based Hartford Insurtech Hub’s accelerator.

Then in 2019, it won the single biggest prize at the annual VentureClash challenge in the United States (US), securing US$1.5 million from a US$5 million prize fund. With the milestones rolling in, we’re sure 2020 will be a stellar year for this startup.

EAST AFRICA

Exuus

Rwandan fintech Exuus has had an exciting year; in particular, it has been busy honing its pitch to perfection.

The startup is taking traditional savings groups online in a bid to smooth processes and help low income communities become more financially resilient.

In February, Exuus was one of 10 startups selected to pitch live to an audience of over 600 attendees at the annual Africa Startup Summit, held in Kigali; picked from more than 100 applicants from around the continent.

The startup was also named winner of Seedstars’ Rwandan event, securing a place in the global final, at which Exuus will pitch for up to US$500,000 in equity investment. We think they stand a good chance of coming out on top of the contest.

MPost

Launched in 2015, it has taken Kenya’s MPost a while to get going, but recently things have really started hotting up.

Simple but effective, MPost has developed a platform that enables the conversion of mobile numbers into official virtual addresses, which allows notifications to be sent to clients whenever they get mail through their postal addresses.

The startup participated in the Startupbootcamp AfriTech programme held in Cape Town in late 2018; and this year raised a US$1.9 million Series A funding round to finance its expansion and further development of its proprietary platform.

We’ll be keeping our ears glued to the ground for more news from this exciting venture.

RideSafe

Take motorbike taxis, affordable emergency response, and blockchain – mix them together with a bucket of innovation and you get RideSafe. The Kenyan startup offers an emergency response service for public motorcycle taxis, that utilises a micro-insurance financing model running on a decentralised blockchain application.

The startup has had quite the year – having raised US$100,000 in funding from æternity Ventures after taking part in the Bulgaria-based æternity Starfleet Incubator for blockchain startups; as well as being selected to pitch at the Africa Startup Summit in Rwanda in February.

We know we’ll be seeing big things from this company in 2020.

WEST AFRICA

OKO Finance

It’s not every day a startup from Mali makes the list of the continent’s top 12 startups to watch – but OKO Finance has.

Founded in 2017, OKO develops affordable mobile-based crop insurance products to provide smallholder farmers with the financial security they need, regardless of unstable climate trends.

The startup raised pre-seed funding of US$300,000; but is now looking to raise US$1.5 million in order to grow more quickly. We feel confident they’ll get the backing, and we’re looking forward to seeing them scale their solution to more farmers and more markets in 2020.

Yobante Express

At Disrupt Africa, we’re really excited about Senegalese startup Yobante Express, which has developed an innovative relay-based way of tackling last-mile deliveries.

Founded in November 2018, Yobante Express is an online marketplace that connects local couriers with local commerce; combining the gig economy and machine learning, to optimise domestic, cross-border and last mile delivery.

Already delivering over delivering 8,000 parcels and generating more than US$50,000 every month, Yobante Express expanded to South Africa in November, and we have a feeling this startup will be pan-African before long.

54Gene

Nigeria’s 54Gene means serious business: it is building the first African DNA biobank.

Just six months old, 54gene is a product of Stack Dx, which raised funding from early-stage VC firm Microtraction to develop the platform in January. Since then it has been selected to take part in the Y Combinator and Google Launchpad Africa accelerator programmes, and in July, raised a US$4.5 million seed round.

The startup is now positioned to build the largest database of genomic and phenotypic consented data of Africans. And for us, there’s no doubt that this startup merits a spot on our must-watch list for 2020.

Ahmed Benjas, MBA Finance Director | SAP | IFRS | SOX | US GAAP | Middle East & North Africa regions |

“When I see these figures, I wonder what makes us believe that we are a country where the economy moves.” -: studies overly paid by the State (McKinsey, Roland Berger …) and we do not have not got the thread to start yet? – Incubators that ultimately serve what? – too many startup events …. !!!! – CoWorking Spaces where we only display the signs of laid-back startups …. – business angels who are not ready to play the game … In my opinion the failure is total, and our ecosystem is unattractive ” end of the quote.

Raising Capital Funding for Start-up in Africa 2017 (in Millions of dollars)

Google launched a network of free Wi-Fi hotspots in Nigeria on Thursday August 9, 2018, part of its effort to increase its presence in Africa’s most populous nation.

The U.S. technology firm owned by Alphabet Inc has partnered with Nigerian fibre cable network provider 21st Century to provide its public Wi-Fi service, Google Station, in six places in the commercial capital Lagos, including the city’s airport.

Internet penetration is relatively low in Nigeria. Some 25.7 percent of the population made use of the internet in 2016, according to World Bank Data.

We are rolling out the service in Lagos today but the plan is to quickly expand to other locations.

The poor internet infrastructure is a major challenge for businesses operating in the country, which is Africa’s largest oil producer. Broadband services are either unreliable or unaffordable to many of Nigeria’s 190 million inhabitants.

“We are rolling out the service in Lagos today but the plan is to quickly expand to other locations,” Anjali Joshi, Google’s vice president for product management, told Reuters in Lagos.

The company said it aimed to collaborate with internet service providers to reach millions of Nigerians in 200 public spaces, across five cities by the end of 2019.

It said it would generate cash from the service in Nigeria by placing Google adverts in the login portal. Google did not disclose the amount invested in the new Nigeria service.

The technology firm said it planned to share revenues with its partners to help them maintain and deploy the Wi-Fi service but did not disclose the expected advertising revenue split.

Africa’s rapid population growth, falling data costs and heavy adoption of mobile phones has made it an attractive investment prospect for technology companies.

Nigeria is the fifth country to launch Google Station. Similar services have been launched in India, Indonesia, Mexico and Thailand.

The service is aimed at countries with rapidly expanding populations. The United Nations estimates Nigeria will be the world’s third most populous nation, after China and India, by 2050.

“A lot of people who found data to be too expensive for them to use, are using it,” said Joshi. “In India, we have tens of millions of users, and close to a million in Mexico.”

However, many do not disclose how profitable the continent’s markets are, or if they make the companies money at all.

Last year, Google announced plans to train 10 million Africans in online skills within five years. It also said it aimed to provide $3 million in equity-free support to African start-ups.

Nigerian Vice President Yemi Osinbajo visited Google’s Silicon Valley headquarters this month to meet the company’s chief executive, Sundar Pichai.

REUTERS

MAZAGÃO

For Startups : High Priority Should be given in Assembling Founding Team

While it is true that an entrepreneur need to be very discipline hence the 24 steps in Disciplined Entrepreneurship taught by Prof Bill Aulet is needed, I cannot hide my eureka moment when I become more and more convinced after conforming : the number one skill that an aspiring founder must prioritize is FOUNDING TEAM ASSEMBLY – choosing co founders, splitting equity, recruiting advisors, managing a board.

This is articulated by Thomas R. Eisenmann, Rob Howe and Beth Altringer in “What Does an Aspiring Founder Need to Know?“

Interestingly, Prof Matt Marx of MIT Sloan elaborated carefully in his class “Dilemmas in Founding New Ventures (a full semester in 80 minutes)”. In it he gave examples from Smartix, Segway, Wily Technology, Zipcar.com could have conducted better during the founding team assembly stage. He outlined some observations that Skills and Networks of the founders must be complementing each other, but Objective must be similar among the founders. Skills is easily observed. Networks is also rather easy if you probe. However, the raison d’être of co-founder is not observable.