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African Development Bank And Partners Support Nigeria’s Digital And Creative Industries With $618 Million

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Start-up - Investors King

The African Development Bank (AFDB) and its partners have launched a $618 million investment in the Digital and Creative Enterprises (iDiCE) program to support Nigeria’s digital and creative industries.

The $618 million fund is made up of $170 million from the African Development Bank (AFDB), and $100 million from the Agence Française de Dévelopment, a public financial institution that implements policy defined by the French Government, while the Islamic Development Bank (IsDB) will provide $70 million in co-financing.

Also, the Federal government of Nigeria through the Bank of Industry (BOI) which will lead the iDiCE program, will back the fund with $45 million as a counterpart contribution to be availed through loans for qualifying startups and $271 million from the private sector and institutional investors.

Speaking at the launch of the event at the state capital Abuja on Tuesday, Nigeria’s Vice President Prof. Yemi Osinbajo lauded the inflow of capital to tech startups in the country which he stated has contributed significantly to Nigeria’s GDP.

In his words, “This influx of private capital has enabled start-ups to expand operations and create new jobs while contributing significantly towards our GDP growth. It is now imperative to commence a coordinated approach towards innovation on the continent, bringing together all stakeholders to coordinate efforts at scaling up investments and building programs that provide the right enabling environment and produce talent pipelines that support the growth of innovation on the continent”.

Also speaking at the event is African Development Bank President Akinwunmi Adesina who emphasized the need to leverage the huge potential of iDiCE for sustainable job creation and economic transformation.

He said, “we are retooling Nigeria to be more competitive in an increasingly digital world. We are creating hope for a new Nigeria, driven by the power of the youth”.

Mr. Adesina further disclosed that the iDiCE fund will create 6.1 million direct and indirect jobs and equip more than 175,000 young people with technology startups, 226 creative enterprises, and 75 enterprise support organizations will be supported by the fund.

The i-DiCE model will be rolled out in other regional member countries through AFDB’s Youth Entrepreneurship Investment Bank Initiative, which will be designed to create a financial and non-financial services ecosystem to support startups run by young Africans and to create jobs.

It is also set to improve regulatory policy frameworks, including the 2022 start-up act, and establish a DICE fund, a venture capital fund managed independently to provide access to financing.

Investors King understands that Nigeria is the most popular tech startup investment destination in Africa. Between 2015 and 2022, 383 tech startups raised a combined US$2,068,709,445. The country also attracts the highest number of investors more than any other African country.

Hence, it is not far-fetched to say that the continuous influx of investments in Nigerian startups will no doubt solidify the country’s position as the premier hub for young entrepreneurs and start-up investments in Africa.

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African Startup Funding Shrinks to from $1.8bn to $780m in H1 2024

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Funding to African startups contracted to $780 million in the first half of 2024 from the $1.8 billion recorded during the same period in 2023.

Despite the overall downturn, Nigeria emerged as a beacon of resilience, managing to sustain its funding inflows amidst the widespread decline.

According to Africa: The Big Deal, a platform that tracks startup funding, Nigeria has maintained a steady flow of investment, setting it apart from its counterparts.

By mid-2024, startup investments across Africa had surpassed the $1 billion mark, buoyed by two major deals: d.light’s new $176 million securitization facility and MNT-Halan’s $157.5 million raise to fuel their expansion.

These significant transactions, along with NALA’s $40 million Series A in July, contributed to making July 2024 the most successful month for African startup fundraising in over a year, exceeding the total raised in the entire second quarter of 2024.

The “big four” economies—Nigeria, Egypt, Kenya, and South Africa—typically attract the highest funding on the continent.

However, this trend shifted in the first half of 2024, with Nigeria being the only country among them to maintain its funding levels.

Max Cuvellier Giacomelli, a presenter during the Africa Startup Funding Round-Up 2024 mid-year edition, highlighted this anomaly.

He noted that while funding to Kenya, Egypt, and South Africa saw significant reductions, Nigeria held steady, showcasing its strong investment appeal amidst global economic challenges.

“There has been significant shrinkage in the amount of funding invested on the continent, affecting mostly three of the big four—Kenya, Egypt, and South Africa. Nigeria, however, is holding steady,” Giacomelli said.

He further pointed out the growing share of funding raised in Western Africa, outside of Nigeria, indicating a broader regional resilience.

In terms of sector performance, logistics and transport led the way, capturing 28% of total funding and surpassing the historically dominant fintech sector, which accounted for 23%.

This shift was driven by notable deals such as Moove’s $100 million investment by Uber, propelling its valuation to $750 million.

Energy and water followed, securing 17% of the funding, with agriculture and food receiving just below 10%.

Maxime Bayen, another expert during the review, provided further insights into the funding landscape.

He projected that total funding for African startups by the end of 2024 would range between $1.5 billion and $2 billion, significantly below the levels seen in 2023 and far from the $3.2 billion raised by mid-2022.

This forecast underscores the ongoing economic adjustments and the cautious approach of investors in the current climate.

Despite the overall decline, there were positive signs. The number of startups raising over $1 million remained comparable to previous years, excluding the exceptional 2022 figures.

Also, there was a notable increase in the share of debt raised by startups, reflecting a shift in financing strategies amidst tighter equity markets.

The African startup ecosystem, while facing significant funding challenges, continues to adapt and evolve. With Nigeria leading the charge, there is cautious optimism that targeted investments and strategic innovations will help navigate these turbulent times and lay the groundwork for future growth and stability.

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Google Leads $250 Million Funding Round for Glance

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A logo is pictured at Google's European Engineering Center in Zurich

Google is leading a $250 million funding round for Glance, a mobile content provider.

This infusion of capital aims to expand Glance’s reach and solidify its market position amidst growing competition.

Glance, a subsidiary of InMobi Group, offers a unique service that delivers news, entertainment, and other content directly to users’ mobile screens without unlocking their devices.

With a user base exceeding 300 million across India, the US, Japan, and Indonesia, the startup has gained significant traction since its inception in 2019.

The funding round, expected to close in the coming weeks, marks a continued partnership between Google and Glance.

Google initially invested in the company in 2020, and this latest round will further enhance Glance’s capabilities to innovate and reach new audiences.

This investment reflects Google’s strategic interest in India, the world’s most populous nation, where it competes with tech giants like Microsoft, Meta, and Amazon.

With India’s rapidly growing middle class and increasing smartphone adoption, the market presents vast opportunities for digital expansion.

The support from Google comes on the heels of a previous $200 million investment by Mukesh Ambani, Asia’s wealthiest individual, which valued Glance at over $1 billion.

The startup’s largest stakeholder, InMobi, continues to thrive as a pioneer in mobile advertising, with Glance benefiting from its expertise and resources.

As Glance prepares for this new phase of growth, it stands poised to redefine how content is consumed on mobile devices worldwide.

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Former Konga CEO Nick Imudia Dies by Suicide in Lagos Home

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Nick Imudia

The Nigerian business community was rocked by tragedy as Nick Imudia, former CEO of e-commerce giant Konga and current CEO of solar energy solutions innovator D.light, died by suicide in his Lekki apartment.

Imudia’s death, confirmed on the night of Tuesday, June 25, has left friends, family, and colleagues in a state of shock and sorrow.

According to sources, Imudia reportedly took his own life by jumping from the balcony of his home. In the moments leading up to the tragic incident, he made a series of distressing phone calls.

He reached out to his brother in the United States, giving detailed instructions on how to distribute his wealth should anything happen to him.

Imudia also spoke to his young daughter from a previous relationship, offering her comforting words and telling her to look to the sky to see him.

Imudia’s sudden death has raised many questions among those who knew him. Described by colleagues as a visionary leader, Imudia was instrumental in the growth of Konga, one of Nigeria’s largest e-commerce platforms.

After his tenure at Konga, he continued to make significant contributions to the tech industry as the CEO of D.light, a company known for its innovative residential solar energy solutions.

Imudia hailed from Ika South Local Government Area of Delta State and had a young daughter from a previous marriage that ended due to irreconcilable differences.

Despite the end of his marriage, those close to him said he maintained a strong bond with his daughter, often expressing his deep affection for her.

The reasons behind Imudia’s decision to end his life remain unclear. As news of his death spread, messages of condolence and tributes poured in from friends, family, and business associates.

Many have expressed their profound sadness and confusion as Imudia was widely seen as a successful and driven individual.

“Nick was a brilliant mind and a compassionate leader,” said a former colleague. “His death is a huge loss to the tech community in Nigeria and beyond. We are all struggling to understand why this happened.”

Authorities are investigating the circumstances surrounding Imudia’s death. Meanwhile, his family has asked for privacy as they navigate this difficult time.

Nick Imudia’s death is a stark reminder of the unseen struggles many face, even those who appear successful and accomplished.

His passing has sparked conversations about mental health awareness, urging individuals to seek help and support when needed.

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