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SEC Receives 11 Ethereum Futures ETF Applications in a Week

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The U.S. Securities and Exchange Commission (SEC) has received a surge of applications for Ethereum futures exchange-traded funds (ETFs) in the past week. According to the SEC website, 11 firms have filed for approval to launch ETFs that would track the performance of Ethereum futures contracts, which are derivatives that allow investors to bet on the future price of the second-largest cryptocurrency by market capitalization.

The applicants include well-known names such as VanEck, WisdomTree, Invesco, and ProShares. If approved, these ETFs would provide a new way for investors to gain exposure to the Ethereum market without having to buy or store the underlying asset. In the past week, 11 firms have filed their proposals with the regulator, hoping to launch the first ETF that tracks the price of Ether, the native cryptocurrency of the Ethereum network.

Ethereum futures ETFs are similar to Bitcoin futures ETFs, which were approved by the SEC in October 2021 and have attracted billions of dollars in inflows. These ETFs do not hold the underlying cryptocurrency directly, but instead invest in futures contracts that are traded on regulated exchanges such as the Chicago Mercantile Exchange (CME). Futures contracts are agreements to buy or sell an asset at a specified price and date in the future.

The advantage of futures ETFs is that they can provide exposure to the cryptocurrency market without the need to deal with the technical and regulatory challenges of custody, security, and taxation. However, they also come with some drawbacks, such as higher fees, tracking error, and contango. Contango is a situation where the futures price is higher than the spot price, which means that the ETF has to pay more to roll over its contracts and maintain its exposure.

The 11 firms that have filed for Ethereum futures ETFs are:

Volatility Shares LLC, which filed for the Ether Strategy ETF (ETHU) on July 28.

ProShares Trust, which filed for the ProShares Ether Strategy ETF and the ProShares Inverse Ether Strategy ETF on August 2.

VanEck Associates Corp., which filed for the VanEck Ethereum Strategy ETF on August 2.

Bitwise Asset Management LLC, which filed for the Bitwise Ethereum Strategy ETF on August 2.

Grayscale Investments LLC, which filed for the Grayscale Ethereum Futures ETF (ETHG) on August 2.

Roundhill Investments LLC, which filed for the Roundhill Ether Strategy ETF on August 2.

Direxion Investments LLC, which filed for the Direxion Bitcoin Ether Strategy ETF on August 2.

Galaxy Digital Capital Management LP, which filed for the Galaxy Ethereum Futures ETF on August 3.

Kryptoin Investment Advisors LLC, which filed for the Kryptoin Ethereum Futures Trust on August 3.

WisdomTree Trust, which filed for the WisdomTree Ethereum Futures Fund on August 3.

Valkyrie Investments Inc., which filed for the Valkyrie Ethereum Futures Trust on August 4.

The SEC has not yet approved any of these applications, and it has up to 75 days to review them and make a decision. The regulator has been cautious about approving cryptocurrency-related products, citing concerns about market manipulation, investor protection, and compliance with existing laws. However, some analysts believe that the approval of Bitcoin futures ETFs has opened the door for other cryptocurrency futures ETFs, especially those based on Ether, which is the second-largest cryptocurrency by market capitalization and has a more diversified use case than Bitcoin.

Ether is not only used as a medium of exchange and store of value, but also as a fuel for running decentralized applications (Dapps) and smart contracts on the Ethereum network. Ethereum is also undergoing a major upgrade known as Ethereum 2.0, which aims to improve its scalability, security, and energy efficiency by transitioning from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) one. This could potentially increase the demand and value of Ether in the long term.

Ether is trading at around $1,841 as of August 4, down more than 250% year-to-date. The total market capitalization of Ether is about $305 billion, accounting for about 18% of the total cryptocurrency market. The CME launched Ether futures contracts in February 2021, and they have seen a steady growth in volume and open interest since then. As of August 3, there were about 5,800 Ether futures contracts outstanding on the CME, representing about $15 million in notional value.

If the SEC approves any of the Ethereum futures ETF applications, it could boost the liquidity and adoption of Ether as an asset class and provide investors with more options to gain exposure to the cryptocurrency market. However, investors should also be aware of the risks and challenges involved in investing in such products, such as volatility, regulatory uncertainty, and operational complexity.

Ethereum’s Cancun Deneb Upgrades to Improve Scalability and Security

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Ethereum is a decentralized platform that enables users to create and run smart contracts, decentralized applications, and other innovations on a global network. Ethereum is constantly evolving and improving, and one of the most anticipated upgrades is the Cancun Deneb upgrade hard fork. This upgrade will introduce several enhancements and features that will make Ethereum more scalable, secure, and user-friendly.

The Cancun Deneb upgrade is the next planned upgrade to the Ethereum blockchain, following the recent activation of the Shanghai upgrade. The Cancun Deneb upgrade consists of two parts: Cancun and Deneb. Cancun represents an additional upgrade to Ethereum’s execution layer, which is responsible for processing transactions and smart contracts. Deneb represents the upgrade to Ethereum’s consensus layer, which is responsible for securing the network and reaching agreement on the state of the blockchain.

The Cancun Deneb upgrade will include several Ethereum Improvement Proposals (EIPs), which are documents that describe new features or changes to the Ethereum protocol. Some of the most notable EIPs that are expected to be included in the Cancun Deneb upgrade are:

EIP-4844: Proto-Danksharding. This EIP introduces a simplified version of sharding, which is a technique that aims to improve the scalability of the Ethereum network by dividing it into smaller partitions called shards. Each shard will operate independently, processing transactions and smart contracts in parallel, thereby increasing the network’s capacity to handle a higher transaction throughput. Proto-Danksharding will also increase data availability for rollups, which are a Layer 2 technology that bundles together transactions and processes them off-chain, reducing congestion and fees on the main chain.

EIP-2537: Precompile for BLS12-381 curve operations. This EIP adds a new precompiled contract that allows smart contracts to perform operations on a specific elliptic curve called BLS12-381. This curve is used for various cryptographic purposes, such as signature aggregation, verifiable random functions, and threshold signatures. By adding this precompile, smart contracts will be able to perform these operations more efficiently and securely, enabling new use cases and applications on Ethereum.

EIP-4788: Beacon state root in EVM. This EIP adds a new opcode that allows smart contracts to access the state root of the Beacon chain, which is the core component of Ethereum 2.0. The Beacon chain is responsible for coordinating the transition from Proof of Work (PoW) to Proof of Stake (PoS), as well as managing the sharding system. By accessing the Beacon state root, smart contracts will be able to verify cross-shard transactions and communicate with other shards, enhancing interoperability and functionality.

The Cancun Deneb upgrade is important because it will bring significant benefits and improvements to the Ethereum network and its users. Some of the main advantages of the Cancun Deneb upgrade are:

Scalability: The Cancun Deneb upgrade will increase the scalability of the Ethereum network by introducing Proto-Danksharding and enhancing data availability for rollups. This will result in reduced congestion and lower fees, making Ethereum more efficient and user-friendly.

Security: The Cancun Deneb upgrade will enhance the security of the Ethereum network by transitioning from PoW to PoS, as well as adding new cryptographic features such as BLS12-381 curve operations. PoS will ensure that malicious actors have more to lose if they attempt to disrupt the network, promoting a higher level of security and stability. BLS12-381 curve operations will enable new forms of cryptography that will improve privacy and verifiability on Ethereum.

Usability: The Cancun Deneb upgrade will improve the usability of the Ethereum network by simplifying the transaction fee mechanism with EIP-1559, as well as enabling new smart contract functionality with EIP-4788. EIP-1559 will make transaction fees more predictable and efficient for users, providing a better user experience. EIP-4788 will allow smart contracts to access the Beacon state root, enabling cross-shard communication and verification.

The exact date for the Cancun Deneb upgrade has not been announced yet, but it is anticipated to go live in the second half of 2023. The upgrade will require a hard fork, which means that all nodes on the network will have to update their software to be compatible with the new protocol rules. The developers are currently working on testing and finalizing the specifications for the upgrade, as well as coordinating with various stakeholders such as miners, validators, exchanges, wallets, and Dapp developers. The upgrade will be preceded by several TestNet deployments, which will allow the developers and the community to test the upgrade and identify any potential issues or bugs.

The upgrade will be mostly backward compatible, which means that most of the existing applications and transactions on Ethereum will continue to work as usual. However, you may want to keep an eye on the official announcements and updates from the Ethereum developers and community, as well as your preferred service providers such as exchanges, wallets, and Dapps. You may also want to monitor the network activity and performance before and after the upgrade, as there may be some fluctuations or disruptions during the transition.

If you are an Ethereum developer, you may want to familiarize yourself with the new features and changes that the Cancun Deneb upgrade will bring to the Ethereum protocol. You may also want to update your code and tools to be compatible with the new protocol rules, as well as test your applications on the testnets before the mainnet launch. You may also want to take advantage of the new opportunities and possibilities that the Cancun Deneb upgrade will enable for your applications and users.

The Cancun Deneb upgrade is a major milestone in the ongoing evolution of the Ethereum network. The upgrade will introduce several enhancements and features that will improve the scalability, security, and usability of the Ethereum network. The upgrade is expected to go live in the second half of 2023, following extensive testing and coordination. The upgrade will bring significant benefits and opportunities for both users and developers on Ethereum, advancing towards a brighter future for the decentralized space.

Tinubu Notifies Nigeria’s National Assembly of Sanctions, Military Action Against Niger

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President Bola Tinubu has formally informed the National Assembly regarding ECOWAS’ planned military intervention and additional sanctions against the military officials who recently executed a coup in Niger Republic.

This notification was conveyed through an official letter addressed to the Senate, which was presented during a plenary session by the President of the Senate, Godswill Akpabio, on Friday.

The move is coming despite warnings by Nigerians and several countries to Tinubu, not to sanction a military action against Niger.

The letter, which bears the caption, “Political situation in Niger” reads partly:

“Following the unfortunate political situation in Niger Republic culminating in the overthrow of its President, ECOWAS under my leadership condemned the coup in its entirety and resolved to seek the return of the democratically elected govt. in a bid to restore peace, ECOWAS convened a meeting and came out with a communiqué.

“Closure and monitoring of all land borders with Niger Republic and reactivating of the border drilling exercise.

“Cutting off Electricity supply to Niger Republic

“Mobilizing international support for the implementation of the provisions of the ECOWAS communiqué

“Preventing the operation of commercial and special flights into and from Niger Republic.

“Blockade of goods in transit to Niger especially from Lagos and eastern seaports.

“Embarking on sensitization of Nigerians and Nigeriens on the imperative of these actions particularly via social media

“Military buildup and deployment of personnel for military intervention to enforce compliance of the military junta in Niger should they remain recalcitrant.”

On July 26, 2023, a coup d’état unfolded in Niger, leading to the arrest of President Mohamed Bazoum and the establishment of General Abdourahamane Tchiani as the leader of a newly formed military junta.

This has resulted in a diplomatic row with many countries, including Niger neighbors Nigeria. Both the African Union and the Economic Committee of West African States (ECOWAS) have been engaging Niger in talks while exploring military options.

During their recent meeting on Sunday, regional leaders in West Africa imposed sanctions on the individuals behind the coup, and they granted the military junta a one-week ultimatum to relinquish control or potentially face a military intervention.

Niger has severed ties with Nigeria, Togo, France, and the United States in response to the sanctions announced by those countries.

Nigeria has been leading the way as pressure mounts on the coupists to restore the democratic elected president Bazoum. With the majority of Western countries in support of a military action in Niger, Tinubu, who had earlier warned that coup will no longer be tolerated in Africa, appears determined to remove the junta.

However, Nigerians are showing their displeasure over the move, which many see as a way Tinubu, who doubles as the AU Chairman, wants to receive recognition from the West. Tinubu’s election is being contested in the Presidential Election Tribunal (PEPT) due to allegations of rigging, and many world leaders have refused to recognize his presidency based on that.

Nigerians believe that the country already has enough to contend in its fight against terrorists that is far from being won. Starting a fresh conflict with Niger, amid the economic crisis currently rocking the nation, is not a move Nigerians want the president to make.

“The crisis in the Republic of Niger requires diplomatic engagements, and that must mean that the channels for dialogue should be well sustained,” former Vice President Atiku Abubakar said.

“While the world expects Nigeria to take a leading role in this process of peaceful conflict resolution, it must be clear to the military insurrectionists in the Republic of Niger that the world cannot afford to wait for too long before this crisis is resolved reasonably.”

Former Senator Shehu Sani said senators should weigh the implications and consequences of their decisions, especially those senators representing states along the Niger Border.

“The Nigerian Senate should NOT approve any military action against Niger Republic. This country should not be plunged into war and eventually stuck in war in the Sahel. President Tinubu shouldn’t allow himself to be misled by foreign powers. Saudi in Yemen, America in Afghanistan and now Russia in Ukraine should teach us a lesson that war doesn’t end in days, weeks or months,” he said.

Crafting Exceptional Out-of-Office Messages

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‘Tis the season for well-deserved breaks, family gatherings, and vacations. As professionals, we understand the significance of work-life balance, making it the perfect time to focus on crafting the ideal Out-of-Office (OOO) holiday message. Have you ever considered the impact your OOO message can have on your colleagues and clients? It’s time to unlock the true power of this often-overlooked communication tool and leave a lasting impression. In this article, we’ll delve into the art of crafting an OOO holiday message that not only sets the right expectations but also spreads warmth, fosters goodwill, and leaves a positive imprint on your professional relationships. Get ready to elevate your OOO game and make your absence a seamless experience for everyone involved.

Why a Thoughtful Out-of-Office Message Matters

In the professional world, work-life balance and professional etiquette are essential for maintaining a positive impression. Creating a thoughtful OOO message shows your colleagues, clients, and contacts that you value their time and understand the importance of clear communication. Transparency about your absence, such as dates, alternative connections, or potential response time delays, helps others manage their expectations. This professionalism and commitment to open communication sets the foundation for strong relationships.

A well-crafted OOO message also enhances your brand. It lets you showcase your unique personality and creativity, leaving a lasting impression on those who interact with your message. By incorporating warmth, gratitude, or humor, you can connect with others personally and demonstrate your approachability.

The Power of a Well-Crafted Subject Line

In today’s fast-paced email culture, the subject line holds tremendous power. It serves as the gateway to your OOO message, making it the first impression and setting the tone for your email. A well-crafted subject line does attract attention; it is important that you convey essential information about your absence and emphasize the significance of your message.

When you create your subject line, please consider its role as the primary attention-grabber. An intriguing, concise, and specific subject line can make all the difference in emails. By piquing curiosity or presenting a clear and enticing message, you increase the chances of your email being opened and read promptly.

Crafting a subject line that conveys the importance of your message is equally vital. Highlighting urgency or significance creates a sense of importance and encourages quick attention. However, balance is crucial to avoid sounding exaggerated. Authenticity and sincerity in your subject line build trust and leave a positive impression.

Lastly, could you maintain consistency between your subject line and the content of your email? This coherence builds trust and enhances your professional presence.

Greetings and warm wishes

The holiday season is a special time filled with joy, gratitude, and goodwill. It is an opportunity to bring the spirit of the holidays into your professional communications through your OOO message. Beyond letting others know of your absence, a well-crafted greeting and heartfelt wishes foster connection and leave a lasting impression.

Authenticity and warmth are key when crafting your holiday greeting. You can start by saying thank you for the recipient’s support, collaboration, or partnership throughout the year. This personalized touch shows that you appreciate and acknowledge its value to your professional life.

While maintaining professionalism, the holiday season allows you to show genuine care for your professional relationships. Please be sure to keep an appropriate tone and avoid overstepping boundaries. A warm and friendly manner can still be conveyed within professional communication.

You positively impact professional relationships by infusing your OOO message with holiday cheer. Your recipients will appreciate the thoughtfulness and sincerity behind your wishes, strengthening the bond between you. Spreading joy and goodwill contributes to a positive work environment and fosters camaraderie.

Effectively Informing Others About Your Absence

Please inform your colleagues and clients about your unavailability when you’re out of the office. A clear and concise OOO message ensures everyone understands your absence and can manage their expectations accordingly.

Prioritize clarity when crafting your OOO message. State the dates you will be away to clarify the duration of your absence. This information helps others plan and adjust their expectations.

To create a seamless experience, could you include instructions on handling urgent matters or questions? Could you give me alternative contact information or guidance on whether to wait until you get back? I would like to point out that offering direction addresses important issues promptly, and everything runs smoothly.

Specifying Your Time Off

Ensuring a smooth workflow and preventing delays requires specifying the dates and duration of your absence in your OOO message. By providing this information, you enable your colleagues and clients to plan accordingly.

Clearly state the specific dates of your absence, including the day you leave and return. Eliminate ambiguity and help others determine your availability accurately.

Please mention the duration of your absence, including weekends and holidays, if applicable. This information helps others understand your unavailable time.

You can use a consistent format to indicate the duration of your absence, such as the number of business days or calendar days. Consistency ensures clarity and prevents misinterpretation.

Providing Reliable Points of Contact

I want to ensure work continues smoothly during your absence, and I would appreciate it if you could provide reliable alternative contacts. By offering these contacts, you show your commitment to exceptional customer service and maintain trust in your professional relationships.

Could you identify trustworthy individuals who can serve as reliable points of contact? You’ll be able to select colleagues familiar with your projects, clients, and responsibilities.

Schedule a meeting or call with your alternative contacts before your absence. Discuss pending tasks, ongoing projects, and specific instructions or client preferences. Sharing insights and providing guidance helps them step into their roles confidently.

Maintain open lines of communication with your alternative contacts throughout your absence. Be available for support and clarification. Contributing to their success helps maintain consistency in client interactions and project management.

Setting Response Timeframes

Managing expectations regarding response times is crucial for you when you’re gone. Setting up a clear response timeframe in your OOO message would help your colleagues and clients.

Consider the nature of your work and your organization’s policies when determining response times. Reflect on prior commitments regarding response times.

Highlight urgency or significance in your OOO message to manage expectations effectively. Provide guidance on whom to contact for immediate assistance with critical matters.

For inquiries that may vary in response time, communicate this variability. Prioritize urgent or time-sensitive matters and mention that you will respond soon.

Follow through on your communicated response timeframes. If circumstances change or delays occur, notify the sender promptly. Demonstrating professionalism and accountability strengthens relationships.

Dealing with Emergencies

Setting up protocols for handling urgent matters during your absence is crucial. By communicating your approach to emergencies in your OOO message, you guide your colleagues and clients on how to proceed.

Outline steps for handling emergencies in your OOO message. Provide specific instructions on whom to contact for urgent matters.

Set up an urgency protocol that classifies emergencies and specifies appropriate actions. Communicate this protocol in your OOO message.

Provide alternative contact information for immediate action. Include phone numbers, instant messaging platforms, or other means of communication.

Please review and update your emergency handling protocols regularly to reflect changes. Ensure the information you provide remains accurate and up to date.

Expressing Gratitude

The holiday season is a time for gratitude and reflection. In your OOO message, please take a moment to thank your colleagues and clients for their support and collaboration. Craft heartfelt thank-you messages that leave a lasting impact and foster a culture of appreciation.

Incorporate warmth and holiday cheer into your thank-you message. Express gratitude and wish recipients joy and happiness.

Mention plans or intentions to reciprocate their kindness or support in the future. Demonstrate commitment to maintaining a mutually beneficial relationship.

Striking the Right Balance

I think finding the right tone for your OOO message is crucial. Balance professionalism and approachability to convey warmth without compromising clarity.

Maintain a professional tone throughout your message. Use polite and respectful language.

Infuse your message with a friendly and warm vibe. Convey kindness and approachability.

Proofread your message to ensure it is error-free and accurately conveys your intended tone. Review it critically, considering how the recipient might perceive it.

Sharing a personal note, if appropriate

Adding a personal touch to your OOO message can significantly impact your colleagues and clients. When appropriate, consider sharing a brief personal note that adds authenticity and strengthens your professional relationships.

Could you look at the nature of your relationship with the recipient to determine if a personal note is appropriate?

Keep personal notes brief and relevant to maintain professionalism. Choose a topic or experience appropriate for the workplace.

Communicating Your Return and Availability

Please let your colleagues and clients know about your return and availability. I’d like you to craft a message that eases worries and sets expectations for your return.

If applicable, could you share relevant updates or changes in your OOO message?

When you come back, please prioritize addressing pending questions or requests as soon as possible.

Suggesting Relevant Resources

Provide alternative resources to assist colleagues and clients in finding answers or resolving issues during your absence. Suggest resources that enable self-service support.

Could you identify common questions or issues and compile relevant resources?

Encourage colleagues and clients to explore these resources for self-service support.

Auto-Reply Setup

Configure your email client or out-of-office assistant to set up an auto-reply for your OOO message. Craft a clear and concise message that conveys necessary information.

Set up auto-reply settings, start and end dates, and specify recipients.

Adjusting Notifications and Updates

Manage your social media presence effectively by adjusting notifications and updating your profiles appropriately. Set boundaries and maintain a healthy digital presence during your absence.

Could you review social media notification settings and adjust them to minimize interruptions?

Could you update your social media profiles to indicate your absence and provide alternative contact information?

Maintaining Brand Consistency

Your OOO message reflects your professional identity. I’d like you to maintain brand consistency to leave a strong impression.

I’d appreciate it if you could craft a signature that aligns with your brand identity.

Could you make sure the formatting and styling align with your brand guidelines?

Ensuring Clarity and Professionalism

Please invest time in proofreading and polishing your OOO message. A well-crafted message free of errors portrays professionalism and attention to detail.

Please look over your message for spelling, grammar, and clarity.

You can just read your message aloud to check for awkward phrasing.

Tailoring Your Messages

Considering their needs and expectations, could you tailor your OOO message to each audience?

Identify recipient groups and craft separate messages for each group.

Please take a look over and update your messages based on your feedback.

The perfect OOO holiday message requires personalization, clarity, warmth, and professionalism. Adapt these tips to fit your workplace culture. Showcase your professionalism while adding a personal touch that resonates with your recipients. Make your absence a seamless experience that leaves a lasting impression.

Global Entrepreneurship Trends And How Africa Can Support Founders and Startups

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With the rise in the number of startups, it always makes for an interesting discussion when one begins to look at entrepreneurship trends in the Ecosystem. What is making some businesses survive and thrive? And what makes others get choked out of the space?

The Global Startup Ecosystem Report compiled by Startup Genome ranks various ecosystems to see their trends and changes year on year. The yearly report shows that the top five ecosystems have remained the same for the last few years, even though a couple of them swapped positions. One interesting data to consider is that while the top five ecosystems accounted for an Ecosystem Value of $3.8 trillion as of 2022, the next 25 (being #6 to #30) were worth $2.3 trillion in Ecosystem Value.

OPay’s $400 million Series C in August 2021 was the region’s biggest deal, while Flutterwave’s $250 million Series D in February 2022 saw its valuation increase to over $3 billion.

India’s ecosystem continued to show significant growth, with Delhi, Mumbai, Bangalore-Karnataka, and Pune collectively generating 25 unicorns between 2019 H2 and the end of 2021. Another remarkable finding is that while Silicon Valley remained the world’s leading ecosystem, its share of early-stage investment by dollar amount has declined in the last decade from 25% to 13%.

The implication of this trend in the early stage funding is that the rest of the world is catching up in terms of tech growth, and this would likely continue, going forward. One region continues to dominate the Global Rankings, with about 47% of the top 30 ecosystems in North America. Then, there’s Asia with 30%.

The big question now is – how can Africa join in the catching up and improve her numbers beyond what we have already?

Let’s look at the Global Entrepreneurship Index for some insights. The Global entrepreneurship monitor ranks countries by seeking answers to the questions below.

These questions basically seek to find out how easy it is for a business or startup to start, survive and thrive in a country. The more positive answers a country can provide to these questions, the better the ranking. More Yeses would mean that there are modalities in place to ease the startup journey overall. No wonder high-income economies perform better than middle and low-income economies on the scores.

  • No sub-Saharan ecosystems made it into the top 30 + runners-up ranking, but this doesn’t mean the region is without significant activity. Sub-Saharan Africa was up 227% in early-stage funding amount and up 43.8% in early-stage deal count from 2018 to 2022, highlighting the rapid development of the region’s tech startup scene.
  • Nairobi produced the region’s biggest exit and the second biggest deal also emerged from the Kenyan ecosystem: Payments startup DPO was acquired by Network International in 2021 for $2.9 million and Sun King, which sells, installs, and finances solar home systems, has raised $577 million over nine rounds, with its latest a April 2022 Series D round of $330 million. Nairobi’s Ecosystem’s Value is up an impressive 281% from from July 1, 2019–December 31, 2021 to July 1, 2020–December 31, 2022.
  • Lagos held its place in the 51–60 range of the Emerging Ecosystems ranking. OPay’s $400 million Series C in August 2021 was the region’s biggest deal, while Flutterwave’s $250 million Series D in February 2022 saw its valuation increase to over $3 billion.
  • Cape Town has entered the top 100 Emerging Ecosystems for the first time, in the 91–100 category and aided by a 23% increase in Ecosystem Value, a 26% growth in the count of early-stage deals, and 22 new Life Sciences disciplines.

The United Arab Emirates (UAE), with the highest score and a wide margin, emerged as the best place to start a new business in 2022, followed by the Netherlands, Finland, Saudi Arabia, and Lithuania. Keep in mind, that the UAE took intentional steps to improve in 11 of the 13 framework conditions since 2020.

And this is why I think Africa can step up.

Entrepreneurial funding

The governments of African countries need to start making more funds available, and easily accessible to startup founders.

Government Policy

By reducing the burdens of new businesses through tax reliefs and holidays, and providing them with adequate support and education, Africa could speed up the growth of its startup ecosystems.

Government Entrepreneurial Programs & Education

We need to put in place adequate entrepreneurial training and support programs in Africa. Introducing entrepreneurial education in schools at different levels can also help to start the transformation from a very young age. Entrepreneurship education and support programs will play a huge role in nurturing the next generation of global entrepreneurs.

Research and development transfers

Isn’t it high time we move the research findings from the library shelves in our institutions, and translate them into real-time businesses?

Ease of Entry

How easy is it to start a business? Are there regulations to encourage entry? Or are the regulations restricting entry? Is it possible to make it easier on new businesses, by having markets that are open and growing across the continent?

Infrastructure

Compared to other continents, Africa has to establish more infrastructures to be able to catch up. Importantly too, such infrastructure should be affordable to startup founders and entrepreneurs who need them to further their business. Even infrastructure such as stable power supply and internet penetration would make a major difference for entrepreneurship on the continent.

In conclusion

If Africa does not rise to the challenge, the continent will be playing catchup for a long time coming. A look at India and the United Arab Emirates shows that truly if the government pays the right kind of attention to these issues, the results can become visible within the next decade.

Some may argue that these challenges are in themselves, opportunities for entrepreneurs to jump on. However, there are limits to what entrepreneurs and investors can do, without the right regulatory environment.

Case Study on the Trend

See how the world has changed, using a US case study: “The entrepreneurship bug is going around. New business applications soared to more than 5 million in 2022, notching a 42% increase from pre-pandemic levels. Also encouraging: 1.7 million of those companies are considered “likely employers,” meaning they’re expected to join the more than 30 million small businesses that have created most of the country’s new jobs since 1995. In some ways, launching a business is easier than ever. E-commerce sites can be up and running in hours, and, as one South Carolina entrepreneur told Bloomberg, “99%” of what is taught in MBA programs is now “on YouTube for free.” Sure, but self-employment is not all smooth sailing right now. Loans are difficult to get and expensive as a result of interest-rate increases, consumers are scaling back on spending due to inflation, and a high demand for workers is inflating labor costs.”

For more on the report, go here.