News Update: Recycled plastic bricks, continued e-mobility push with partnership of Bboxx & Spiro, $31mn funding for e-mobility platform MAX, and more
Industry and investment news
Hi all,
welcome to our update on industry and investment news in Sub-Saharan African economies. Our focus? All things related to the 9 priority areas identified by the African Union to combat climate change.
😍 Investment news we love:
Baobab secures a $47.5 million loan from IFC to foster MSME investment across six sub-Saharan African nations: Burkina Faso, Ivory Coast, Madagascar, Mali, DRC, and Senegal.
The African Water Facility is strategically mobilizing investors to establish a $500 million urban-sanitation fund as part of its expansion strategy, which encompasses the initiation of project lending.
South African firm Infra Impact Investment Managers has successfully surpassed its fundraising goal for the Infra Impact Mid-Market Infrastructure Fund 1, reaching its final target of R2.15 billion ($115 million).
👎 Why we need to keep pushing:
In the first half of 2023, African startup funding constituted less than 1% of the global total funding, underscoring the ongoing challenge the continent's startup ecosystem faces in securing substantial global investment.
News Update:
💡 Energy and infrastructure
South Africa/Nigeria: Starsight Energy and Solar Africa Energy merge, forming a premier pan-African clean energy platform for on- and off-site renewable solutions to commercial and industrial clients.
🚕 Mobility and transport systems
Benin: Data-driven platform Bboxx and African EV company Spiro have joined forces. The partnership utilizes Bboxx's asset financing model to expedite the distribution of electric motorcycles across East and West African markets.
Nigeria: E-mobility platform MAX has secured $31 million in funding to accelerate the production of electric two- and three-wheelers. Initially established in 2015 for motorcycle logistics, MAX expanded to offer passenger transportation, and is now preparing for another funding round to expand its role as a regional e-mobility provider.
🏭 Industrialisation
Kenya: CFAO Motors invests over 800k USD to locally assemble Toyota Fortuners, targeting an initial production of 350 vehicles in the first year, while also aiming to improve local sourcing of parts and expanding their assembled vehicle range after merging with DT Dobie.
Minerals exports: Booming lithium, cobalt and flake graphite supply. Some African countries are aiming to boost local value addition by banning unprocessed mineral exports, despite trade rule challenges.
🌆 Urban areas
Ethiopia/Kenya: Kidus Asfaw's startup Kubik transforms plastic waste into bricks for affordable housing, reducing environmental impact and reliance on carbon-intensive building materials. So does Constructive Plastics, who’s founder Joseph Kirumba gave an interesting interview this week.
Built using interlocking plastic blocks, Source: Nation Private developers and governments in Africa are investing over $514 billion in new city projects; North Africa leads with 88% of developments, followed by West Africa at 5.5% and East Africa at 3%. Key countries for new cities include Egypt, Nigeria, Mauritius, Ghana, and Kenya.
💧 Water systems
Kenya: South African mezzanine debt fund manager Vantage Capital invested $25 million in Aquasantec International, a Kenyan company manufacturing and distributing drinking water systems. The investment aims to enhance water security and sanitation access in the water-scarce East African sub-region.
💻 Digital transformation
Nigeria: Terragon, a data analytics company, secured a $9mn Series B funding round led by Orange Ventures, with participation from TLcom Capital and others, indicating strong investor confidence in its cloud analytics potential.
Do you have feedback for us? Please let us know! We’d love to hear from you!
Best,
Carolin
for the Exseede Team