DD
MM
YYYY

PAGES

DD
MM
YYYY

spot_img

PAGES

Home Blog Page 2745

Debt Financing And Climate Tech Emerge as Key Drivers of African Startup Funding in 2024

0

In a recent report by Africa: The Big Deal, Debt financing and Climate Tech have emerged as key drivers of African startup funding in 2024.

According to the report, African startups raised $636 million through $100k+ deals in the third quarter (Q3) of 2024, excluding exits. Of this total, 62% almost $400 million was raised in the form of equity, while 35% came from debt financing. The remaining 2.5% was secured through grants. Notably, the $176 million multi-currency facility raised by d.light accounted for nearly 80% of all debt raised in Q3 ($176 million out of $223 million).

The report further highlights that, for 2024 as a whole, two-thirds of all funding raised by African startups has been in equity, with one-third coming from debt. These figures are consistent with trends observed during the same period in 2023, marking a shift from prior years. The increase in debt financing is attributed to three main factors; (1) the increased offering in terms of debt capital for start-ups in Africa, (2) the maturity of an ecosystem where start-ups don’t always raise equity by default when what they need is debt, and (3) a greater propension for ventures to communicate about debt fundraising compared to previous years.

However, while debt funding is on the rise, equity funding in 2024 has lagged behind previous years. Startups have raised around $920 million in equity so far this year- comparable to the total equity raised in 2020, but significantly lower than the levels seen in 2021 and 2022. Equity fundraising is also down by 32% year-on-year compared to the first three quarters of 2023.

The report notes that nearly $800 million would need to be raised in Q4 for 2024 to match last year’s equity funding levels a challenging target, given that the ecosystem has not seen such high levels of quarterly equity fundraising since Q2 2022.

Climate Tech Attracts Significant Investment

The report highlights the growing importance of Climate Tech in the African startup ecosystem. In Q3 2024, around 35% of all investments were directed towards climate-related ventures, in line with year-to-date figures. Over half a billion dollars have been invested in Climate Tech in Africa so far this year, mirroring the proportion recorded in Q1-03 2023.

Fintech and Energy Lead Sectoral Funding

The report also reveals that the Fintech and Energy sectors dominated funding in Q3 2024, attracting nearly 90% of total investments. Fintech raised $363 million (57% of total funding), while Energy attracted $199 million (31%). The numbers were heavily influenced by two major deals: MNT-Halan’s $157.5 million raise in Fintech and d.light’s $176 million deal. Five other fintech companies Nala, FlapKap, Fido, valU, and Paymob also secured $20 million or more during the quarter.

Year-to-date, Fintech remains the leading sector, raising $600 million (43% of total funding), followed by Energy with $300 million (21%). Together, the two sectors account for 64% of all investment in African startups. Logistics and Transport came in third, largely due to major deals by Move ($110 million) and Spiro ($50 million) in the first half of the year.

As the funding landscape for African startups continues to evolve, the rise of debt financing and Climate Tech points to a more diversified ecosystem. While equity funding has seen a decline, the increased availability of debt capital and a focus on sustainability suggest that African startups are adapting to new financial realities in the rapidly growing market.

Egypt Certified Malaria-free: Nigeria And Others Not Close

0

The World Health Organization (WHO) has certified Egypt as malaria-free, marking the culmination of a nearly century-long effort to eradicate the ancient disease from the country.

The historic achievement was confirmed in a statement issued by the global health body on Sunday, with WHO Director-General Dr. Tedros Ghebreyesus praising Egypt’s commitment to eliminating a disease that dates back to the time of the pharaohs.

“Malaria is as old as Egyptian civilization itself, but the disease that plagued pharaohs now belongs to its history and not its future,” Dr. Ghebreyesus said. “This certification of Egypt as malaria-free is truly historic, and a testament to the commitment of the people and government of Egypt to rid themselves of this ancient scourge. I congratulate Egypt on this achievement, which is an inspiration to other countries in the region, and shows what’s possible with the right resources and the right tools.”

Egypt’s path to malaria elimination has been long and challenging, with efforts to combat the disease stretching back nearly 100 years. Malaria has had a profound historical presence in Egypt, affecting its population since ancient times. In modern times, the Egyptian government launched various initiatives to reduce transmission, including improvements in vector control, surveillance, and treatment methods.

Over the years, Egypt implemented comprehensive malaria control programs that included strategies for mosquito control, such as the use of insecticide-treated nets, indoor residual spraying, and effective treatment regimens. Additionally, robust surveillance systems were established to detect and respond swiftly to any cases of imported malaria, preventing the disease from regaining a foothold in the country.

A Milestone for the Eastern Mediterranean Region

Egypt is now the third country in the WHO Eastern Mediterranean Region to achieve malaria-free certification, joining the United Arab Emirates and Morocco. This certification also marks the first such achievement in the region since 2010, highlighting its significance. Globally, Egypt becomes the 45th entity (44 countries and one territory) to be declared malaria-free, underlining the international community’s ongoing efforts to eliminate the disease.

With this certification, Egypt has demonstrated that there has been no indigenous malaria transmission by Anopheles mosquitoes for at least three consecutive years, meeting WHO’s stringent criteria. Furthermore, the country has proven its capacity to prevent the re-establishment of transmission, a crucial aspect of maintaining the malaria-free status.

Egyptian Deputy Prime Minister Dr. Khaled Ghaffar emphasized that sustaining the malaria-free status requires continued vigilance.

“Receiving the malaria elimination certificate today is not the end of the journey but the beginning of a new phase. We must now work tirelessly and vigilantly to sustain our achievement through maintaining the highest standards for surveillance, diagnosis, and treatment, integrated vector management, and sustaining our effective and rapid response to imported cases,” he said.

Dr. Ghaffar also reiterated Egypt’s commitment to safeguarding public health, stating, “We will continue with determination and strong will to safeguard the health of all people in Egypt under the wise leadership’s guidance and proceed with enhancing our healthcare system, this will remain a cornerstone in protecting the lives of all people living in and visiting Egypt.”

WHO’s Certification Process

Malaria elimination certification by WHO is granted when a country can demonstrate, beyond any reasonable doubt, that indigenous transmission of malaria has been interrupted for at least three years. Additionally, a country must show it has the necessary mechanisms in place to prevent the reintroduction of the disease.

The certification process involves rigorous scrutiny by the Technical Advisory Group on Malaria Elimination and Certification, an independent body that reviews evidence from the country seeking certification. The final decision to award malaria-free status is made by the WHO Director-General, based on the group’s recommendation.

Malaria Elimination in Africa, Still A Long Walk

While Egypt’s certification as malaria-free is a significant victory, it underscores the stark disparity in malaria control efforts across Africa. For instance, Nigeria, the continent’s most populous country, remains deeply entrenched in the struggle against malaria.

The disease continues to be a major public health issue in Nigeria, accounting for a significant proportion of the country’s disease burden. According to the World Health Organization (WHO), Nigeria bears the highest malaria burden in the world, with an estimated 27% of global malaria cases and 23% of malaria deaths. The disease is endemic in all parts of Nigeria, and its transmission occurs year-round, with peaks during the rainy season. Vulnerable populations, especially children under five and pregnant women, suffer the most, facing high rates of morbidity and mortality due to the disease.

Despite being a signatory to the Roll Back Malaria initiative, which seeks to reduce malaria cases and deaths in Africa, Nigeria’s efforts have often been hampered by a lack of consistent funding, inadequate health infrastructure, and governance issues. The country has struggled to achieve widespread coverage of preventive measures such as insecticide-treated mosquito nets (ITNs) and indoor residual spraying (IRS), which are critical components of malaria control.

The Nigerian government’s approach to malaria control has often been characterized by sporadic interventions rather than sustained and coordinated efforts. While some progress has been made in recent years, such as increased distribution of mosquito nets and intermittent awareness campaigns, these efforts have not been sufficient to bring about a significant reduction in malaria prevalence.

One of the main obstacles to Nigeria’s malaria elimination efforts is inadequate funding. Malaria control programs in Nigeria are largely donor-funded, with the government contributing only a fraction of the resources needed to tackle the problem effectively. This reliance on external funding creates a situation where malaria control efforts can be inconsistent and may falter if donor support wanes.

Nigeria’s inability to significantly reduce malaria transmission poses a risk not only to its own population but also to neighboring countries. As the most populous nation in Africa, with extensive cross-border movement, Nigeria’s malaria burden can hinder regional efforts to eliminate the disease. Neighboring countries may experience reintroduction of malaria cases, complicating their elimination efforts.

The WHO emphasizes that for Africa to make substantial progress in the fight against malaria, countries like Nigeria must prioritize the disease in their public health agendas. This includes increasing domestic funding for malaria control, scaling up access to preventive measures such as ITNs and IRS, and ensuring that health systems can deliver timely and effective treatment.

Global Malaria Efforts: Still a Long Road Ahead

While Egypt’s malaria-free certification is a cause for celebration, the global fight against malaria is far from over. According to WHO’s latest reports, there were approximately 247 million malaria cases and 619,000 related deaths worldwide in 2021, with sub-Saharan Africa bearing the highest burden.

The global community has committed to eliminating malaria as a public health threat by 2030. However, achieving this target will be difficult if high-burden countries like Nigeria do not make substantial progress.

Efforts to eliminate malaria globally are complicated by issues such as insecticide resistance, drug resistance, and the socio-economic challenges faced by affected countries. Consequently, while progress is being made, the road to global malaria eradication remains long and complex.

Dangote Refinery Sues NNPCL, Other Petrol Importers, Seeking to Invalidate Their Import Licenses [updated]

0

Dangote Petroleum Refinery and Petrochemicals FZE has filed a legal suit at the Federal High Court in Abuja, seeking to invalidate import licenses granted to the Nigerian National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies.

The refinery argues that these licenses, which allow the importation of refined petroleum products, are unnecessary since Dangote Refinery is already producing sufficient quantities to meet Nigeria’s demand. Additionally, Dangote is demanding N100 billion in damages from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly issuing import licenses in contravention of regulations that stipulate imports should only be allowed when there is a shortfall in local supply.

The lawsuit, marked as suit number FHC/ABJ/CS/1324/2024, alleges that NMDPRA has breached Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import permits for products such as Automotive Gas Oil (AGO) and Jet Fuel, which the Dangote Refinery claims to produce in quantities exceeding Nigeria’s daily consumption needs. The refinery asserts that the issuance of these licenses undermines local refining efforts and cripples its business by reducing demand for its products.

According to an affidavit from Ahmed Hashem, Dangote Refinery’s Group General Manager of Government and Strategic Relations, the facility has invested billions of dollars in refining capacity, only to face reduced patronage due to these allegedly unjustified imports.

The plaintiff’s legal team also contends that NMDPRA is neglecting its statutory duty to promote the interests of local refineries, such as Dangote’s, in favor of other entities, including major international oil companies and domestic marketers, which continue to import refined products. Furthermore, Dangote Refinery claims that NMDPRA has sought to impose financial levies on transactions within Free Zones, including a 0.5% levy on wholesales and an additional 0.5% levy for the Midstream and Downstream Gas Infrastructure Fund (MDGIF), actions which the plaintiff argues are inconsistent with Free Zone regulations.

The refinery’s legal representatives are seeking several declarations and orders from the court. Among these, Dangote is requesting an injunction to prevent NMDPRA from issuing or renewing import licenses for petroleum products to the other companies involved in the case. The refinery also wants the court to mandate the withdrawal of all import licenses issued to these companies and others for importing refined petroleum products, contending that such licenses should be exclusive to local producers when domestic capacity meets or exceeds market requirements.

In addition to demanding the withdrawal of import licenses, Dangote seeks to halt the collection of any levies by NMDPRA that apply to the Free Zone, citing the Nigerian Export Processing Zone Act (NEPZA) and the Companies Income Tax Act as grounds for the refinery’s exemption from federal and state taxes and levies. The refinery argues that the imposition of levies contravenes legislative intent and jeopardizes the Free Zone’s goals of fostering competition and attracting foreign investment.

Claims of Conspiracy and Market Manipulation

Dangote Refinery’s court filing also alludes to a “grand conspiracy” orchestrated by international oil companies, regulatory authorities, and other vested interests that allegedly aim to suppress the refinery’s potential to alleviate Nigeria’s persistent energy challenges. The refinery claims this opposition is partly driven by discontent over the emergence of a local, privately owned refinery capable of solving the country’s fuel import dependency and boosting the economy. The refinery asserts that the alleged collusion is detrimental not only to its business interests but also to Nigeria’s broader economic aspirations, as the country remains heavily reliant on fuel imports despite possessing local refining capacity.

Settlement Talks in Court

During the court session, Justice Inyang Ekwo adjourned the case until January 20, 2025, after the plaintiff’s counsel, George Ibrahim SAN, disclosed that the parties involved were exploring the possibility of settling the dispute outside court. Ibrahim indicated that discussions had commenced between Dangote Refinery and the defendants following an attempt to serve the originating summons. The next court session is expected to provide updates on whether the matter will be settled amicably or continue to litigation.

Background to The Ongoing Dispute

This lawsuit is the latest development in a series of confrontations between Dangote Refinery and regulatory authorities over Nigeria’s petroleum market dynamics. Recently, Africa’s wealthiest man, Aliko Dangote, expressed frustration with regulatory challenges and hinted at selling the refinery to the state-owned NNPCL, a move that many interpreted as a response to escalating tensions and disputes over compliance and market practices.

The refinery has previously voiced concerns about the importation of substandard fuel products by other companies, arguing that such practices undermine local refining efforts and expose consumers to quality risks. Earlier, the federal government announced that marketers are now permitted to source petroleum products directly from the Dangote Refinery, following NNPCL’s withdrawal from its intermediary role, signaling attempts to balance market interests and resolve ongoing disputes.

What This Means for Nigeria’s Energy Sector

The lawsuit highlights longstanding issues in Nigeria’s energy sector, particularly regarding the regulation and promotion of local refining capacity. While Nigeria is Africa’s largest crude oil producer, its dependence on imported refined petroleum products has persisted for decades, primarily due to inadequate local refining infrastructure.

Thus, Dangote Refinery, with its large-scale investment in refining and petrochemicals, was seen as a potential game-changer that could significantly reduce the country’s reliance on imports. However, regulatory disputes and unexpected market conflicts have posed substantial hurdles.

Energy experts believe that the case has broader implications for Nigeria’s energy policies under the Petroleum Industry Act (PIA), which was enacted to reform the sector by encouraging private investment in local refining while also ensuring fair market competition. According to them, the outcome of this legal battle could influence future decisions regarding import licensing, local content policies, and the role of private players in Nigeria’s downstream petroleum market.

However, a large section of observers believe that this lawsuit by Dangote Refinery is part of the group’s attempt to monopolize the oil sector as it has done in the many other sectors in which it operates.

Editor’s Note: This has been debunked

Near Protocol Is “Far” From Being The Best Coin In The Market as DTX Exchange Surpasses Bittensor With $5.3M Presale

0

After crashing in 2022, Near Protocol (NEAR) has never been able to cross the $10 mark. Despite the bullish momentum in the market, it is trading 13% below the recent swing high. Meanwhile, DTX Exchange (DTX) is preparing to lead the exchange space after the listing in December. Its testnet has shaken crypto enthusiasts with record-breaking speed.

While Bittensor (TAO) is trading near its high, DTX Exchange is expected to surpass it with its unique offerings and real-world utilities. As we approach the bull market, institutional investors increase their positions in potential coins like DTX Exchange.

Near Protocol (NEAR) Hovering Near 200-Days Moving Average

Over the last 24 hours, Near Protocol (NEAR) has risen 3.37%, now trading at $4.94. This builds on a 2.14% gain over the past week, moving from $4.75 to its current price. After the recent rally Near Protocol (NEAR) is trading around the major moving average which shows the lacking momentum in the coin. The coin also forms a symmetrical triangle pattern, signaling a potential breakout that could push the price toward $6.

If Near Protocol (NEAR) fails to sustain the current level and breaks below the symmetrical triangle pattern, $4.4 and $3.8 are the two influential support levels.

Bittensor (TAO) Gains Momentum After Breakout

The prolonged correction in the market has also affected Bittensor (TAO); it decreased around 70% from the March high. However, the recent breakout from the $365 level has given great momentum to the TAO price, increasing 88% from the breakout level. Currently, it is consolidating in a range breakout that can push Bittensor (TAO) price higher.

Bittensor (TAO) powers a decentralized machine learning network where users can train and share AI models without depending on centralized systems. TAO is the native token that rewards users for contributing computing power and data to the network. Bittensor (TAO) may be earned and users may get involved in the AI model optimization process by doing the supply part.

DTX Exchange (DTX) Leads The Market Potential For Epic Profits

In the first week of the fourth stage, DTX Exchange has achieved a significant milestone raising $5.3 million in record time. It has broken the previous records and become the top market presale. According to expert traders, DTX has the potential to rise 6,300% after the launch in the various exchanges. $100 invested at the current level could turn into $6,400 in a few months.

DTX Exchange is set to revolutionize how trade is done on the Internet by fusing the power of centralized and decentralized exchanges. It will blend the two, offering access to more than 120,000 different classes of assets, including stocks, CFDs, and cryptocurrencies, as well as a complete privacy guarantee—no sign-up KYC checks are needed.

Users can improve their trading success by copying top traders, using trading bots, and receiving trading signals. The platform’s native token, DTX, built on Ethereum, grants access to the trading platform and includes voting power.

DTX Exchange also provides exclusive trade opportunities through its Real-World Applications (RWA) segment, where users can earn passive income. Additionally, DTX holders can stake their tokens to support liquidity and earn up to 15% APY.

According to industry experts, DTX Exchange is a golden opportunity for those who want low risk investment opportunity with high growth potential.

Learn more:

Buy Presale

Visit DTX Website

Join The DTX Community

Nigeria Proposes Bill to Impose 5% Excise Duty on Telecom, Gaming & Betting Services

0

The Nigerian government has taken steps towards increasing revenue collection by introducing a new bill that proposes a 5% excise duty on telecommunications, gaming, and betting services.

The measure is part of a broader initiative aimed at overhauling Nigeria’s tax framework, as outlined in the proposed “Nigeria Tax Act.” The bill, obtained from the National Assembly and dated October 4, 2024, seeks to consolidate and revise existing tax laws, targeting income, transactions, and various financial instruments across the nation.

According to the provisions of the bill, the excise duty will be applied to both postpaid and prepaid telecommunications services regulated by the Nigerian Communications Commission (NCC). This duty will extend to other sectors, including gaming, gambling, lotteries, and betting activities, which have grown significantly in Nigeria over the years.

The bill stipulates that all transactions within these services will attract the excise duty, as prescribed under the Tenth Schedule of the Act.

The text of the document clearly states, “Services, including telecommunications, gaming, gambling, betting, and lotteries however described, provided in Nigeria shall be charged with duties of excise at the rates specified under the Tenth Schedule to this Act in a manner as may be prescribed by the Service.”

This means that once the bill is passed into law, all services in the aforementioned categories will be subject to the excise duty, potentially leading to higher costs for consumers in sectors that are widely used across the country.

Currency Transactions and Exchange Regulations

The new bill also aims to regulate currency transactions by introducing a mechanism where any disparity between the Central Bank of Nigeria’s (CBN) official exchange rate and the actual rate used in transactions would attract excise duty. Under the proposed legislation, if the exchange rate in a currency transaction exceeds the CBN’s official rate, the excess amount will be considered an excise duty liability to be paid on a self-assessment basis.

The bill specifies: “Where an exchange of currency transaction involving the Naira is conducted within or outside Nigeria – (a) the transaction shall be conducted at an exchange rate not exceeding the prevailing exchange rate at the official market authorized by the Central Bank of Nigeria; and (b) where the exchange rate of the transaction exceeds the prevailing exchange rate at the official market authorized by the Central Bank of Nigeria, the excess shall be payable as excise duty by the seller on a self-assessment basis as provided in the Nigeria Tax Administration Act.”

Cultivating A New Tax Regime

As oil revenues continue to fluctuate, Nigeria has been seeking to expand its non-oil revenue sources to stabilize the economy. The government anticipates that implementing excise duties on sectors such as telecommunications and betting, which have shown rapid growth, will help increase the country’s tax revenue and strengthen the regulatory framework for currency transactions.

The decision to target these sectors is particularly significant given the expanding user base of telecommunications services and the rising popularity of gaming and betting. The telecom industry has experienced substantial growth in recent years, with millions of Nigerians relying on mobile networks for communication and internet access.

Similarly, the betting industry has seen increased participation, driven by digital platforms offering online gambling and lottery services. Reports indicate that approximately 60 million Nigerians aged 18-40 actively engage in sports betting, driving an industry that generates an estimated annual revenue of N730 billion.

By imposing a 5% excise duty on these popular services, the government aims to capitalize on their widespread usage to boost tax revenue. But this move is expected to significantly affect the cost of telecom services and betting activities, potentially leading to price hikes for consumers.

However, authorities remain optimistic that the revenue generated from these excise duties will help mitigate budgetary constraints and provide a more sustainable approach to fiscal management.

Concerns Over Potential Impact on Consumers

While the proposed tax reforms are aimed at increasing government revenue, there are concerns about the potential impact on consumers and businesses. Telecom services are essential for daily activities in Nigeria, from communication to mobile banking, and any increase in service costs could place additional financial burdens on citizens.

The telecom operators have made several attempts in recent times to increase internet and call tariffs, citing the rising cost of operation. The moves, though have been rejected by the NCC, underline the intense pressure the current economic downturn has placed on the telecom sector.

Many have argued that imposing additional taxes on essential services during a period of economic hardship may exacerbate existing financial pressures on consumers. With inflation remaining high and disposable income constrained, critics believe the excise duty could make telecommunications and internet services less affordable for many Nigerians, potentially widening the digital divide in the country.

While many see excise duties on betting and gaming services as a way to curb the growing gambling culture in the country, others warn that it could affect the revenue of companies in the sector, potentially leading to job losses in the industry.

The government’s broader strategy to enhance non-oil revenue collection comes at a time when fiscal pressures are mounting, with the country’s debt levels rising and public sector funding needs expanding. The new excise duty regime is expected to complement other tax measures, such as Value Added Tax (VAT) and corporate income tax.

The legislation also seeks to curb currency speculation and illicit financial flows by aligning currency exchange practices with the CBN’s official rates.