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16 Startups Selected to Join Visa’s Diverse Second Cohort for Africa Fintech Accelerator Program

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16 Startups Selected to Join Visa's Diverse Second Cohort for Africa Fintech Accelerator Program

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Visa has unveiled the African startups selected to join the second round of its continent-wide Fintech Accelerator program.
 
The program offers a concentrated 12-week period of personalized training and one-on-one mentorship for seed and Series A startups.
 
Participants gain exclusive access to resources, development opportunities, and potential funding.

This year’s cohort boasts a wider geographical reach, with startups from 28 African countries participating.
 
This signifies a significant increase from the inaugural program, which included representatives from 18 nations.
 
Another noteworthy aspect is the rise in female leadership within the chosen startups.  The percentage of female-led companies jumped from 43% in the first edition to a commendable 65% in the second.

The selected startups tackle a variety of challenges and opportunities in the African fintech landscape.
 
Their solutions span neo-banking, merchant payments, credit scoring, risk and identity management, embedded finance, social commerce, and escrow services, to name a few.

“Visa is committed to fostering innovation while promoting financial inclusion and accessibility across the ecosystem,” said Aida Diarra, Visa’s Vice President and Head of Sub-Saharan Africa. 

Launched in June 2023, the Visa Fintech Accelerator program aligns with Visa’s ongoing commitment to propel Africa’s digital economy. This commitment includes a $1 billion investment pledge by 2027 to revolutionize the continent’s payments landscape.

The virtual program culminates in a live Demo Day where startups showcase their innovations to key players in the ecosystem, potential investors, angel investors, and venture capitalists.
 
Below are the selected startups:
 
  • AzamPay (Tanzania): A B2B marketplace facilitating smoother transactions for businesses.
  • Beem (Tanzania): Engaged in social commerce, Beem is enhancing how businesses interact with their consumers through social media platforms.
  • Aku (Nigeria): A neo-banking platform providing innovative banking solutions.
  • Cleva (Nigeria): Focuses on efficient money movement solutions to enhance financial transactions.
  • Curacel (Nigeria): An insurance management startup that leverages technology to streamline claims and reduce fraud.
  • E-doc Online (Nigeria): Specializing in open banking, they facilitate secure sharing of financial information.
  • Raenest (Nigeria): Enhances money movement capabilities with their financial technology solutions.
  • Bridgecard (Nigeria): Provides infrastructure to enable various financial services.
  • Truzo (South Africa): Offers escrow services to secure transactions and enhance trust between parties.
  • Bizao (Ivory Coast): A merchant payments solution aimed at simplifying the payment processes for businesses.
  • Hub2 (Ivory Coast): Focuses on providing essential infrastructure to enable various fintech services.
  • Chapa (Ethiopia): Provides merchant solutions to enhance business transactions.
  • Vaultpay (Democratic Republic of Congo): Focuses on merchant payments to aid businesses in financial transactions.
  • Iwomi Technologies (Cameroon): Specializes in money movement to facilitate better transaction processes.
  • Proboutik (Cameroon): Another merchant payments solution aimed at improving business transactions.

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Congo to Build Central Africa’s  First Fibre Data Center for $72.8 Million

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Congo to Build Central Africa’s  First Fibre Data Center for $72.8 Million

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The Republic of Congo has embarked on a major project to construct a national data center in the Bacongo district of Brazzaville.
 

This three-story facility will store and process the country’s digital data, marking a significant step forward in the nation’s digital transformation.

The project is funded with a total of $72.8 million, with the African Development Bank (AfDB) contributing $57 million and the Congolese government providing $15.8 million.

Construction will include the installation of a 600-kilometre fibre optic cable network connecting Congo to neighboring Cameroon and the Central African Republic.

The data center, expected to be operational by December 2024, will feature dedicated server rooms, monitoring and supervision spaces, conference areas, and essential energy and air-conditioning equipment.

This initiative positions the Republic of Congo to become the first Central African nation with a sovereign data center.

“We will finally be able to host video conferences and store our data locally, eliminating reliance on servers in Europe or elsewhere,” stated Michael Ngakala, coordinator of the Central Africa Fibre-Optic Backbone Project.

Previously, Congolese data was often stored outside the country, leading to the use of domain name extensions like “.fr” or “.com” instead of the nation’s “.cg” designation.

The new data center will enable Congo to host all public data domestically, while also offering data storage and backup solutions for telecommunication companies, banks, insurance firms, and other private businesses.

This development is seen as a major step towards advancing Congo’s digital economy and bolstering its digital security through increased control over its data.

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Secha Capital Launches Training Initiative to Cultivate Business Leaders in Africa

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Secha Capital Launches Training Initiative to Cultivate Business Leaders in Africa

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African impact investor Secha Capital has announced the launch of the Junior Operator-Investor Network (JOIN) program.
 

This initiative aims to bridge the gap between academic knowledge and practical experience in business management, operations, and investment.

“We are proud to launch the JOIN program to develop a new generation of operator-investors in Africa,” said Tebogo Masekwameng, a principal at Secha Capital.

The program leverages the expertise of Secha’s network of investors, entrepreneurs, and operators to provide participants with real-world skills needed to excel in the green and tech-driven African economy.

JOIN targets individuals seeking careers that combine hands-on business experience with investment knowledge.

Secha Capital is a black, female-founded growth equity firm focused on Southern African companies transitioning towards a sustainable, technology-enabled future.

Applications for the inaugural JOIN cohort, starting in June 2024, are now open.
http://bit.ly/SechaJOIN0624Cohort

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EV Company Spiro Revs Up Africa Expansion with $50 Million Afreximbank Loan

New Investments

EV Company Spiro Revs Up Africa Expansion with $50 Million Afreximbank Loan

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African electric vehicle (EV) leader Spiro announced a significant boost to its expansion plans with a $50 million debt financing agreement signed with Afreximbank, the pan-African multilateral financial institution.

The funds will fuel Spiro’s growth in Cameroon and Morocco this year, according to Afreximbank.

They will be used to expand the company’s network of automated battery-swapping stations and introduce new electric bike models, making eco-friendly transportation more accessible across the continent.

“This debt facility is a game-changer for Spiro,” said Kaushik Burman, CEO of Spiro. “It strengthens our operational capabilities and allows us to reach new African markets.”

Kanayo Awani, Executive Vice President at Afreximbank, expressed enthusiasm for the partnership. “We’re proud to support Spiro’s growth. This collaboration accelerates EV adoption and enhances transportation across Africa,” Awani said, highlighting Afreximbank’s commitment to innovation and sustainable development.

This agreement follows Afreximbank’s partnership with Max, a startup that facilitates car ownership, further solidifying their commitment to Africa’s sustainable mobility future.

Spiro currently boasts a fleet exceeding 14,000 electric bikes and operates in six African nations: Nigeria, Ghana, Kenya, Uganda, Togo, and Benin.

Their vision is to create a comprehensive EV ecosystem for Africa, promoting environmental responsibility and improved urban mobility.

This vision includes collaboration with various stakeholders and the development of a robust charging infrastructure offering both battery swapping and direct charging options.

Notably, in February 2024, Spiro partnered with Nigeria’s Ogun State government to establish electric motorcycle battery-swapping stations.

Additionally, last year, the company secured a $63 million loan to expand its operations in Benin and Togo.

With this latest investment, Spiro appears poised to accelerate its mission of making electric transportation a reality across Africa.

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“We are delighted to partner with ISA to support the development of solar energy in Africa,” said Alain Ebobissé, CEO of Africa50. “This partnership will help to accelerate the deployment of solar energy in Africa and improve the lives of millions of Africans,” he added.

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New VC Firm OpenseedVC Announces First Close of $10 Million Fund to Back Early-Stage African Operators

New Investments

New VC Firm OpenseedVC Announces First Close of $10 Million Fund to Back Early-Stage African Operators

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OpenseedVC, a recently launched venture capital firm, has secured an initial closing for its $10 million early-stage fund.

The fund will focus on backing startups in Africa and Europe founded by experienced technology operators.

OpenseedVC’s unique approach prioritizes founders with deep industry knowledge who are transitioning from operational roles to launch their own ventures.

“We understand the challenges faced by operators who are making the leap into entrepreneurship,” said Maria Rotilu, General Partner at OpenseedVC. “Our goal is to provide them with the capital, guidance, and network needed to succeed.”

OpenseedVC offers more than just funding. The firm boasts a network of over 50 experienced operators across software engineering, product development, go-to-market strategies, and talent acquisition. This network will serve as a valuable resource for portfolio companies.

The fund’s investors themselves are a diverse group, including founders, professionals from established businesses, and high-net-worth individuals from Africa, Europe, and the United States.

Over the next five years, OpenseedVC plans to invest in over 60 startups with a focus on B2B software, AI applications in fintech, productivity tools, and digital health solutions.

The firm will typically invest up to $150,000 in each company and has established an open application process, allowing founders to apply directly without needing an introduction.

OpenseedVC has already invested in two companies, including a speech-to-text technology solution designed specifically for under-represented African accents.

Looking forward, the firm is committed to building a diverse portfolio that includes a strong representation of female founders.

“We recognize the importance of portfolio diversification,” said Rotilu. “Our focus is on geographic spread, industry sector representation, and achieving a 50/50 gender balance among co-founding teams.”

OpenseedVC’s emphasis on operator-led ventures and its commitment to diversity position the firm as a unique player in the African and European early-stage investment landscape.

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“We are delighted to partner with ISA to support the development of solar energy in Africa,” said Alain Ebobissé, CEO of Africa50. “This partnership will help to accelerate the deployment of solar energy in Africa and improve the lives of millions of Africans,” he added.

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Nigeria to Build 90,000km of Terrestrial Fibre-Optic

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Nigeria to Build 90,000km of Terrestrial Fibre-Optic

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Nigeria’s government has launched a series of ambitious initiatives aimed at transforming the country’s digital landscape, according to Communication, Innovation and Digital Economy Minister Bosun Tijani.
 

A critical component of the plan involves the establishment of a Special Purpose Vehicle (SPV) tasked with overseeing the deployment of an additional 90,000 kilometers of fiber optic cabling.

This substantial investment will significantly bolster Nigeria’s national internet backbone, paving the way for nationwide internet access.

The announcement builds on a collaboration between the Nigerian government and the World Bank, previously revealed in March by Tijani, to secure $3 billion in funding for network expansion. Specific details regarding additional project funding were not disclosed.

Upon completion, Nigeria’s total fiber optic coverage is expected to jump from its current 35,000 kilometers to a minimum of 125,000 kilometers.

This expansion will solidify Nigeria’s position as Africa’s third-largest holder of terrestrial fiber optic backbone infrastructure, following Egypt and South Africa.

The enhanced network capacity is anticipated to unlock the full potential of Nigeria’s existing eight submarine cables.

With only 10% of their data capacity currently being utilized, this project is expected to significantly increase data utilization across the country.

Leveraging its existing partnership with the Broadband Alliance, improved internet connectivity will specifically target educational institutions, healthcare facilities, and social organizations, according to Tijani.

Over 200,000 such entities are expected to be connected, ensuring a wider segment of Nigerian society benefits from internet access.

Addressing the high cost of RoW is crucial to ensuring equitable access to essential broadband services for all Nigerians, particularly those in remote areas.

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