GreenHouse Capital, a venture capital firm, has commenced the implementation process of investing $10million in 13 technology startups that have great solutions developed locally, but with global appeal and with the ability for global scale up.
Although the venture capital firm plans to invest the money in two tranches of $5 million each, it has already spent well over $3 million, spread across the 13 startups.
One of the founding partners of GreenHouse Capital, Mr. Bunmi Akinyemiju who made the disclosure, while showcasing the 13 startup companies at a technology show in Lagos, weekend, said “the future is about virtual technology and no longer oil and gas, and that is the reason we are investing in tech startups. We have invested over $3 million out of the $5 million that we planned to invest in the first tranche. In all, we plan to invest a total of $10 million in the next two years.”
Giving reasons behind the zeal to raise seed funds for tech startups, Akinyemiju said the VC firm decided to invest in them in order to support young entrepreneurs with brilliant ideas, who do not have the right funding to scale up.
The list of top global companies today by market capitalisation, is made up of technology companies like Google, Facebook, Amazon and Apple. Gone are the days when oil and gas companies used to top the list and that is the direction of the world today, so we need to guide and support Nigerian tech startups in that global direction, Akinyemiju said.
We are investing big in technology startups companies, because the financial gain is going to be exponential in the future. A VC firm like GreenHouse only needs about three successful startup companies, out of 20 sponsored companies to settle the amount of money spent promoting 20 tech companies, and still make huge turnover, Akinyemiju added.
Speaking on the vision and mission of GreenHouse Capital, its Managing Partner, Nichole Yembra said the mission is to promote and support tech entrepreneurs in Africa that have great talents but do not have the encouragement and funding to actualise their dreams.
Big entrepreneurs that are behind big brands like Uba, Google, Microsoft, among others, started as very small entrepreneurs and they got support to arrive at where they are today. So we want to replicate that kind of success out of Nigeria and Africa, Yembra said.
According to Akinyemiju, “We need to scale-up their business but all the money needed for scale-up will not come from Nigeria, because we will source for funds from outside Nigeria and Africa, from places like the US, UK, China, Hon Kong among others. But the money from these countries will not be made available unless African investors are able to support the initial funding and that is exactly what GreenHouse Capital is doing by investing in 13 technology startups.”
Among the 13 startups that were showcased at the Lagos technology show, some are into solar energy solution, financial solutions for banks, micro finance solutions, logistics solutions, and gifting solutions. The solutions were developed locally in Nigeria, but designed to scale globally.
It was however revealed that three out of the 13 tech companies that are being sponsored by GreenHouse Capital, have attracted international investors who are now investing in their solutions.
One of the tech startups, Chinedu Azodoh who manages Max Ventures with Tayo Bamiduro, said they provide logistics services for clients and help them to deliver items within three hours of purchase, using their network and locally designed technology solution.
Another startup, Ahmed Macaulay who runs AppZone, said they offer instant card issuance for banks, in order to reduce insider fraud and backlog of customers’ Automated Teller Machine (ATM) cards. SureGifts is another startup company on display, managed by Kehinde Olufunmilola and her team that provides convenience for clients and customers, by developing gift cards that could be used for shopping after funds are loaded into the cards.
British International Investment to Invest $1B in Nigerian Banks, Telecoms, and Other Key Sectors in the Economy
The British International Investment (BII), the UK Government’s Development Finance Institution (DFI), is investing $1 billion in Nigerian banks, infrastructure and power in the next five years.
The BII’s investment strategy was announced yesterday by the Chief Executive Officer, British International Investment, Nick O’Donohoe, at a briefing in Lagos.
He said the BII has invested $100 million in FirstBank; $75 million in Stanbic IBTC; $15 million in CardinalStone Capital Advisors and a $162.5 million syndicated loan package in Access Bank.
Azura Power also got $30 million in debt finance to support the construction of the 461 mega wats Azura-Edo power plant.
He said investments reflect BII’s focus on mobilising capital to build self-sufficiency and market resilience in Nigeria and improve access to inclusive economic opportunities while helping to catalyse Nigeria’s boundless entrepreneurial ambition.
O’Donohoe said: “Investing in the prosperity of Nigeria’s growing population requires innovative new partnerships that can leverage the country’s abundant capabilities and expertise.’’
He said investments in key segments of the economy are evaluated based on sustainability, inclusion and productivity.
“I am delighted that not only will BII’s investment help to create jobs and provide entrepreneurial self-starters with the means to own their vehicles,” he said.
British High Commissioner, Catriona Laing CB, said: “It’s a pleasure to be in Lagos to mark the launch of British International Investment. BII forms an important part of UK’s package of tools and expertise to help Nigeria build their pipeline for investment and scale up infrastructure investment, in particular, to achieve clean, green growth.”
Investment Opportunities on the Rise as Nigeria Steps up Efforts to Strengthen Health Sector
A new focus report, produced by Oxford Business Group (OBG), highlights the opportunities for investors to contribute to the development of Nigeria’s health sector by bridging funding shortfalls for planned infrastructure projects and supporting other segments with high growth potential.
Titled “Nigeria Health”, the report provides in-depth analysis of both the health sector and pharmaceutical industry in an easy-to-navigate and accessible format that includes key data and infographics. It also includes an interview with Mojisola Adeyeye, Director General, National Agency for Food and Drug Administration and Control, and contains in-depth case studies and viewpoints from key industry players, such as Fidson, Codix, GSK, Merck and Bayer.
The report explores the key role that public-private partnerships (PPPs) are expected to play in bringing a range of health care projects to fruition and helping Nigeria to achieve its ambitious goals for the sector, which include increasing the number of hospital beds to nearer the global average bed-to-population ratio of 2.7 per 1000 people.
It also considers the potential Nigeria has to boost local production capacity for consumable items, such as syringes, bandages and dressings, needles and catheters, and, in turn, reduce its import bill.
The opportunities emerging in medical technology are another focus. In this section, OBG provides in-depth coverage of the digital solutions disrupting health provision worldwide, which include extending care to underserved areas and facilitating remote diagnosis and treatments.
The report shines a spotlight on Nigeria’s pharmaceutical industry, tracking the growth stories of key companies with a presence in the country and featuring contributions from high-profile industry representatives.
With Nigeria’s reliance on China and India for pharmaceuticals evident at the start of the Covid-19 pandemic, OBG considers the scope for increasing local production capacity. It also notes the part that Nigeria’s Five Plus Five-Year Validity policy is expected to play in increasing partnerships between multinational pharmaceutical firms and local manufacturers.
In addition, the report examines the topical issue of counterfeit drugs, looking in detail at Nigeria’s efforts to address this and related challenges through monitoring and enforcement solutions.
Karine Loehman, OBG’s Managing Director for Africa, said that while Nigeria’s health sector continues to feel the knock-on effects of the Covid-19 pandemic and other, pre-existing challenges, the government had made notable progress in meeting key health indicators in recent years, while a successful PPP model bodes well for investors eyeing opportunities in infrastructure and other segments showing potential.
“Nigeria’s expanding population and underlying fundamentals make it an attractive proposition for the international investment community,” Loehman said. “With the pandemic having created new opportunities for expansion and innovation, and public funds limited, our report points to a health sector ripe for development, offering opportunities that range from capital projects to the provision of high-quality medical services at new and existing facilities.”
The report on Nigeria’s health sector forms part of a series of tailored studies that OBG is currently producing, which includes ESG Intelligence and Future Readiness reports, and other highly relevant, go-to research tools, such as country-specific Growth and Recovery Outlook articles and interviews.
Lagos Remains Top Destination for Investment Despite Drop in Capital Importation
Despite an overall 28.09 percent decrease in Capital Investment in Nigeria, Lagos State remains the number one destination for investments in Nigeria in the first quarter (Q1), 2022.
In the quarter under review, capital investment into Lagos state stood at $1,119.44m, representing 71.16 percent of total capital investment into the country in Q1 2022.
According to the report obtained by Investors King from the National Bureau of Statistics (NBS), the total value of capital importation into Nigeria in Q1 2022 stood at $1,573.14m from $2,187.63m in the preceding quarter, showing a decrease of 28.09 percent.
On a yearly basis, the capital importation decreased by 17.46 percent from $1,905.89m.
The report showed that the most significant amount of capital importation by type was received through Portfolio Investment, which accounted for 60.87 percent ($957.58m).
This was followed by Other Investment with 29.28 percent (US$460.59m), and Foreign Direct Investment (FDI) accounted for 9.85 percent ($154.97m) of total capital imported in Q1 2022.
Breaking down the number into sectors, capital importation into banking was the highest at $818.84 million in the first quarter, amounting to 52.05 percent of total capital imported.
Capital imported into the production sector came second at US$223.67 million (14.22 percent). The finance sector followed with $199.37m (12.67 percent).
Capital importation by country of origin shows that the United Kingdom ranked top as the source of capital imported into Nigeria in Q1 of 2022 with a value of $1.021.21m, accounting for 64.92 percent.
This was followed by the Republic of South Africa and the United States of America, valued at $117.50m (7.47 percent) and $82.07m (5.22 percent), respectively.
In terms of Destination of Investment, the Federal Capital Territory, Abuja, comes second after Lagos with a value of $446.81m, representing 28.40 percent.
Standard Chartered Bank of Nigeria imported the most fund at $543.20m (34.53 percent) while Citi Bank Nigeria Limited with $439.03m (27.91 percent) and Stanbic IBTC Bank Plc came third with $251.52 (15.99 percent).
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