E-mobility in Africa must be expedited – Alp Tilev

E-mobility in Africa must be expedited – Alp Tilev

Co-Founder and CTO of Ampersand, Alp Tilev, says the transition to e-mobility in Africa must be expedited. He shares more on why there is an opportunity to drive the adoption of electrically powered motorcycles that produce less pollution in Africa. Talking about the financial and environmental advantages of electric motorcycles for drivers and the environment.

Co-Founder and CTO of Ampersand, Alp Tilev

Historically, Asia has been the birthplace of motorcycles. China, India, Indonesia, and Vietnam are the world’s four largest motorcycle markets. The continent is home to roughly 58% of all motorcycles in the world.

Africa is quickly catching up. According to a report by AMEND and the FIA Foundation, motorcycle usage in Africa has increased from less than 5 million in 2010 to an estimated 27 million in 2022. Because of Africa’s entrepreneurial spirit, 80% of the continent’s motorcycles are used for commercial purposes such as taxis or delivery services.

Although Africa’s contribution to global greenhouse gas emissions is negligible at under four percent, these petrol-powered two-wheelers contribute a significant amount of carbon emissions. As Africa joins the rest of the world in the drive to reduce pollution, there is an opportunity to drive the adoption of electrically powered motorcycles that produce less pollution.  

Electric motorcycles are hardly a new concept, but they are relatively new to Africa where they are starting to gain momentum by firmly making their way into the cultural and economic zeitgeist while inching the continent’s travelers towards a lower carbon future.

Ampersand e-mobility in Africa using electric motorcycles

Adoption of electric motorcycles in Africa has its challenges, the issue of charging batteries being one. Given that a significant proportion of motorcycles on African roads are used for commercial purposes, riders rarely have time to wait for their batteries to charge.

However, there are innovative solutions that can be deployed to address the challenge, and technology is rapidly advancing, providing opportunities for innovators to create long-term solutions to the continent’s most pressing challenges.

On the back of this, we created Ampersand, an electric motorcycle and transportation energy solutions provider that allows riders to stay on the road while their batteries charge. To make this possible, we built a network of charging stations where riders can swap out depleted batteries for fully charged ones in only 2 minutes, saving them over $500 per year by reducing downtime.

Furthermore, each battery has a range of 60-90 km and needs to be replaced less frequently than drivers typically refuel with petrol. This solution not only saves drivers money but also ensures that they have a constant source of power, making electric motorcycles a more viable transportation option.

As the business grew from the initial 20 drivers to the current 800+ vehicles in Kigali and Nairobi, one of the challenges we encountered was keeping track of the batteries and their condition. With hundreds of drivers swapping out batteries every day, being able to track them and ensure they are in good condition is critical to our ability to support more drivers. Consequently, we built AmperOps, an adaptive cloud solution built on Microsoft’s Azure platform that allows the collection of over 15,000 data points and the execution of multiple transactions per second. The system also enables seamless management of battery packs through customizable parameters such as state of health analysis and geofenced alarms for increased security.

Furthermore, the system includes smart maintenance systems that automatically notify the team of required battery or vehicle repairs before they occur. With this level of customization and real-time response, we can gain a thorough understanding of the performance of each swap station, driver, and battery.

In the long run, the advantages of electric motorcycles extend beyond financial savings for drivers and environmental advantages. As Africa continues to industrialize, so will the capacity for designing, building, and assembling motorcycle components. This demonstrates an opportunity for green job growth throughout the value chain, from design to delivery and maintenance. Given that Ampersand users travel over 1.9 million kilometers per month, there is a clear opportunity for electric motorcycles to impact Africa’s transportation industry and for electric motorcycles to become the sustainable lifeblood of public transport systems In fact, we have set an ambitious goal of electrifying all motorcycles in East Africa by 2030, and earlier in Rwanda by 2027.

Without a doubt, electric motorcycles have the potential to be a viable mode of transportation for millions of Africans. Technology will drive change by enabling innovators to create solutions to niche challenges in the adoption of e-mobility. With the right investment, Africa’s transportation industry could be transformed while also creating job opportunities, reducing pollution, and saving drivers money.

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5 African fintech startups to watch in 2023

5 African fintech startups to watch in 2023

Fintech is one of the most dynamic and innovative sectors in Africa, with hundreds of startups offering solutions for payments, lending, banking, insurance and more. In 2022, African fintech startups raised over $1.4 billion in funding, according to Disrupt Africa, and attracted global attention with acquisitions and partnerships.

Africa is a continent with immense potential for innovation and growth in the financial sector. According to the World Bank, more than 60% of the population in sub-Saharan Africa is unbanked, meaning they lack access to formal financial services such as savings, credit, insurance and payments. However, thanks to the rapid adoption of mobile phones and internet connectivity, many African entrepreneurs are developing innovative solutions to address this gap and provide affordable and convenient financial services to millions of people.

In this blog post, we will highlight five African fintech startups that are making waves in the industry and have the potential to scale up and impact millions of lives in 2023 and beyond.

Okra

Okra is a Nigerian startup that provides an API platform for connecting bank accounts to third-party applications. Founded in 2019, Okra has secured partnerships with major players like Access Bank, Interswitch and uLesson, and raised $10 million in a seed round led by TLcom Capital and Accenture Ventures. Okra enables businesses to access real-time financial data, initiate payments, verify identity and perform direct debits from customers’ bank accounts.

Moove

Moove is a Nigerian mobility fintech that provides revenue-based vehicle financing to drivers and transport entrepreneurs across Africa. Launched in 2019, Moove has facilitated over $200 million in loans for more than 10,000 drivers on platforms like Uber and Bolt. Moove leverages data and technology to assess credit risk and offer flexible repayment terms based on drivers’ earnings. Moove raised $68.5 million in a Series A round led by Speedinvest and Left Lane Capital.

Tabby

Tabby is an Egyptian startup that offers a buy now, pay later (BNPL) service for online and offline shoppers in the Middle East and North Africa. Founded in 2019, Tabby allows customers to split their purchases into four interest-free installments or pay after 14 days with no fees. Tabby partners with over 2,000 merchants across various sectors, including fashion, electronics, beauty and travel. Tabby raised $50 million in a Series B round led by Global Founders Capital and STV.

Wave

Wave is a Senegalese startup that provides a mobile money service that allows users to send and receive money instantly and securely via their phones. Founded in 2018, Wave aims to make mobile money more accessible and affordable by charging no fees for transactions and offering competitive exchange rates. Wave operates in Senegal, Uganda, Gambia, Mali, Burkina Faso and Ivory Coast, where it claims to have over 5 million active users and process over $2.5 billion in annualized payment volume. Wave raised $200 million in a Series A round led by Sequoia Heritage and Stripe.

JUMO

JUMO is a South African startup that operates a technology platform for building and running financial services for emerging markets. Founded in 2014, JUMO partners with banks, mobile network operators and fintech companies to offer credit, savings and insurance products to underserved customers. JUMO has served over 20 million customers and disbursed over $3 billion in loans across 15 markets in Africa and Asia. JUMO raised $55 million in a funding round led by Goldman Sachs.

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3 ways blockchain technology lets small businesses in Africa overcome barriers and unlock new opportunities

3 ways blockchain technology lets small businesses in Africa overcome barriers and unlock new opportunities

Blockchain technology is a platform for designing financial services that can bridge many gaps in today’s virtual market system. It allows for data to be synchronized across multiple, independent stakeholders, enabling greater transparency, efficiency, and security. Blockchain technology can have a significant impact on small businesses in Africa, especially in the areas of payment solutions, access to finance, and operational improvement.

Payment solutions

Blockchain technology can facilitate low-cost, real-time, and cross-border payments for small businesses in Africa. This can help them overcome the challenges of high fees, slow transactions, and currency fluctuations that often hamper their trade with local and international partners. For example, Stellar is a blockchain network that connects payment systems, banks, and people around the world, allowing for fast and cheap money transfers. Stellar has partnered with several African fintech companies, such as Flutterwave, Cowrie, and ClickPesa, to provide blockchain-based payment solutions for small businesses in Nigeria, Ghana, Kenya, and Tanzania.

A small businesses owner in Africa using a laptop to work

Access to finance

Blockchain technology can also help small businesses in Africa access more funding opportunities and build a credit history. Many small businesses in Africa face difficulties in obtaining loans from traditional financial institutions due to a lack of collateral, documentation, and credit scores. Blockchain technology can enable alternative lending platforms that use smart contracts, digital assets, and peer-to-peer networks to provide loans to small businesses based on their transaction history, reputation, and social capital. For example, Bitbond is a blockchain-based lending platform that connects borrowers and lenders globally, offering loans to small businesses in Africa without intermediaries or credit checks.

Operational improvement

Blockchain technology can also enhance the operational efficiency and productivity of small businesses in Africa by automating processes, reducing fraud, and improving supply chain management. It can enable smart contracts that execute automatically based on predefined conditions, eliminating the need for manual intervention and verification. Blockchain technology can also provide a secure and immutable record of transactions and data, reducing the risk of tampering, corruption, and theft. Blockchain technology can also improve the traceability and transparency of supply chains, allowing small businesses to verify the origin, quality, and delivery of their products. For example, Bext360 is a blockchain-based platform that tracks the journey of coffee beans from farmers to consumers, ensuring fair trade and quality control.

In conclusion, blockchain technology can have a positive impact on small businesses in Africa by providing them with more efficient, affordable, and accessible financial services and business solutions. Blockchain technology can help small businesses overcome some of the barriers they face in today’s market system and unlock new opportunities for growth and development.

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Microsoft to train and support Moroccan student developers, startups, SMEs

Microsoft to train and support Moroccan student developers, startups, SMEs

Microsoft is partnering with the Mohammed VI Polytechnic University (UM6P) to provide Moroccan student developers, startups, and Small and Medium Enterprises (SMEs) with training, resources, and technology.

Microsoft and UM6P will develop a curriculum to skill up Moroccan student developers to prepare them for the job market. Startups incubated at the UM6P startup campus will get access to technology, markets, and investors. Morocco-based startups will also get access to the Microsoft for Startup Founders Hub and the Microsoft Entrepreneurship for Positive Impact program.

The partnership, UM6P says “will provide multiple audiences with stronger access to technology and upskill startups and SMEs with valuable digitization skills“.

Moroccan student developers

Looking forward to the positive impact that we jointly can and will deliver to learners, jobseekers, SMEs, and startups“, says Salima Amira, Microsoft Morocco General Manager, speaking about the partnership.

We are convinced that by increasing the number of qualified young professionals and empowering startups and SMEs to achieve sustainable growth, we will contribute positively to the growth of the digital economy in Morocco and across Africa.”

Salima Amira

UM6P will also identify and enroll SMEs in need of digitization support as well as provide them with access to independent software vendors (ISVs) and Microsoft’s Airband initiative.

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Microsoft hosts Startups Summit in Cape Town

Microsoft hosts Startups Summit in Cape Town

Microsoft South Africa is hosting a Microsoft for Startups Summit – Cape Town meetup targetting founders, entrepreneurs, developers, venture capitals (VCs), accelerators, and their teams. The free event is in-person and will take place on December 1st. At the Innovation City Darter Studio, Longkloof, Gardens, Cape Town, South Africa.

The Microsoft Startups Summit – Cape Town event will offer attendees access to best practices and practical tools to evolve their venture and grow. It will enable networking opportunities and conversations among ecosystem players. As well as help accelerate innovation for first-time founders, serial entrepreneurs, or technical founders.

The invitation reads:

Every founder and startup is unique. Yet, there are common challenges that all founders face at different stages of their business journey, from validating ideas, accelerating the time to market to geo expansion, and gaining access to funding.

We are excited to present the Microsoft for Startups Meet-up Cape Town.

announcement details inviting start founders, developers VC to Microsoft Startups Summit - Cape Town event

This year, Microsoft announced new initiatives to accelerate the growth of 10,000 African startups and fast-track investment in Africa’s startup ecosystem over the next five years. Launching the Startups Founders Hub in Africa and partnering with accelerators and incubators to provide startups with access to markets, technical skills, and funding.

The startup summit agenda includes keynotes, fireside chats, breakout, networking, and cocktails sessions. There will also be a session on the startup journey with Microsoft from Founders Hub to Azure Marketplace. Speakers include Will Green Tech Founder- Grindstone, Ajay Lalu Co-Founder Q-HOP and David Rogers Founder and CEO, BancX.

Click to find out more details about the event and register to participate.

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Microsoft targets lack of investment, affordable access to finance in a new AfDB partnership

Microsoft targets lack of investment, affordable access to finance in a new AfDB partnership

Microsoft is announcing that it is expanding its partnership with the African Development Bank (AfDB) to support Africa’s young entrepreneurs facing a lack of investment and affordable access to finance under the bank’s Youth Entrepreneurship Investment Banks (YEIB) Initiative.

The expanded partnership seeks to support the establishment of national-level institutions through a public-private collaboration model to scale up technical and financial support for youth entrepreneurs and build their capacity. Through its African Transformation Office (ATO), Microsoft will work with the bank to develop youth entrepreneurship ecosystems, create jobs, and scale impact in Africa through digital inclusion.

Youth entrepreneurship, Microsoft notes will go a long way to solving the employment challenge. But admits a lack of investment, affordable access to finance, and quality business development services still present significant hurdles. The Youth Entrepreneurship Investment Bank is a unique value proposition set up by the African Development Bank that anchors and integrates efforts to develop entrepreneurship ecosystems in Africa.

affordable access to finance Microsoft AfDB

We believe much can be done to help foster youth entrepreneurship by collaborating with the African Development Bank, driving greater economic inclusion for this key segment of the population, and ultimately building a more prosperous society,” says the General Manager of Microsoft Africa Regional Cluster Wael Elkabbany. “Already we’ve seen considerable success partnering on initiatives such as Coding for Employment, which aims to equip millions of African youth with employable skills, ultimately creating broadscale employment“, he adds.

Through this initiative, the AfDB will bring together all relevant financial and non-financial parties and partners to play their respective roles in supporting youth entrepreneurs through mentorship, coaching, knowledge and experience sharing, and more.

The African Development Bank Vice President for Private Sector, Infrastructure, and Industrialization Solomon Quaynor says: “The strengthening of our partnership with Microsoft on the Youth Entrepreneurship Investment Banks (YEIB) is an important development in our journey towards harnessing Africa’s demographic dividend and facilitating the creation of millions of jobs for young Africans by 2025. The initiative places much-needed focus on youth entrepreneurship, which is key to achieving our ambitious employment targets.”

Collaborating with both private sectors and partners, the Youth Entrepreneurship Investment Bank will establish a funding scheme, credit guarantee scheme, and technical assistance programs to strengthen providers of services to entrepreneurs. In terms of policy support, it will advocate to governments for the business-enabling environment reforms needed to catalyse youth entrepreneurship.

Microsoft says it will also leverage its partner ecosystem, which covers 54 countries across the continent, to act on crucial technology solutions across four key areas. These include skilling, connectivity, small-to-medium enterprise (SME) digitization, and hardware:

Skilling
To connect youth to economic opportunity and employability skills, the partnership will provide them with career pathways and learning content. This includes the use of existing e-learning platforms such as Coding for Employment. The initiative also aims to build the capacity of Enterprise Services Organizations, benefitting youth through training trainers.

Connectivity
By leveraging successful connectivity solutions such as Microsoft Airband, the partnership will develop effective infrastructure models to help bridge the digital divide. At the same time, it will support other innovative solutions on the market either through direct or indirect investment.

Small and Medium Enterprise (SME) digitization
The partnership also aims to improve SME digital literacy and business skills by creating access to curated learning content, certifications, business solutions, business skills, and specialized digital skills. This will be driven in partnership with LinkedIn and through skilling programs such as MS Learn and the Cloud Academy. Access to finance for digitally enabled SMEs will also be facilitated through Microsoft partnerships.

Hardware
SME access to bundled hardware solutions will be created by Microsoft and its partners. SMEs will also be able to purchase Microsoft technology at discounted prices.
The partnership also forms an important part of Microsoft ATO’s mission to empower 10 million SMEs through access to skilling initiatives and investments, and to generate the capacity needed to scale and provide digital skills to 30 million Africans.

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