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Africa Fintech Summit

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Ajim Capital

Plans by Kenya’s Assets Recovery Agency (ARA) to withdraw its second case against African fintech giant Flutterwave have been shot down by the High Court, Kenya’s third highest court. In August last year, the agency had frozen $3 million belonging to Flutterwave, Hupesi Solutions, and Adguru Technology Limited on suspicion of money laundering and fraud. The funds seizure happened two months after the ARA froze another $52.5 million belonging to Flutterwave and six other companies. The ARA filed a suit after each seizure, the first of which was withdrawn formally in March this year.

Kenya's Assets Recovery Agency (ARA) had plans to withdraw its second case against African fintech giant Flutterwave, which involved the freezing of $3 million on suspicion of money laundering and fraud. However, the High Court rejected the request for withdrawal. The judge noted that the ARA, being a public-funded body, failed to provide reasons for the withdrawal, including details of any negotiations or settlements. The agency had accused Flutterwave's bank accounts of being used for money laundering, but the judge questioned the lack of evidence for the alleged crime. The ruling may further delay Flutterwave's prospects of obtaining a license to operate in Kenya. Flutterwave, a cross-border payment facilitator, has faced several controversies, including claims of harassment, misappropriation of funds, and mismanagement.
 
Read more on <a href="https://techcrunch.com/2023/07/24/blow-for-flutterwave-as-kenyan-court-declines-request-to-withdraw-case/">TechCrunch</a>

Blow for Flutterwave as Kenyan court declines request to withdraw case

WazoPlus

Africa's leading avocado producer and exporter is on a roll, following a 2022 entry into the lucrative China market. The first shipment of Kenyan avocados into India means Kenya has tapped two key world markets amid surging global demand for the fruit. 

Bonface Orucho, bird story agency&nbsp;
 
Kenya has successfully made its first avocado exports to India, tapping into a promising 1.4 billion consumer market, according to reports by Kenya's state broadcaster, KBC.
 
In an interview on KBC, Harsama Kello, the Permanent Secretary in the State Department for Crop Development, described the shipment as a "big win" for Kenya because many of its farmers have begun producing the fruit because of the lucrative business opportunity they present.
 
Kenya has been steadily emerging as a global player in avocado supply, earning recognition from the UN FAO as one of the top 15 leading avocado exporting nations.
 
In this ranking, Kenya stands top in Africa with production averaging 417,000 and at an impressive 6th position globally.
 
Within the African continent, countries like Ethiopia, South Africa, Malawi, Morocco, Cameroon, Congo, Côte d'Ivoire, and Madagascar have also established themselves as significant players in avocado production, according to the UN FAO.
 
Global demand for avocados has exhibited consistent growth. The Observatory of Economic Complexity, a tool for visualizing international trade data, reported a notable 15.3% increase in the export value of fresh or dried avocados, rising from US$6.71 billion in 2020 to US$7.73 billion in 2021.
 
Asian countries, led by China, have emerged as prominent markets, prompting African producers, notably Kenya and South Africa, to actively engage in these burgeoning markets, with South Africa, once Africa's largest exporter, signing an export agreement with China on August 23.
 
Over the past five years, Kenya has effectively doubled its avocado production, beginning this surge in 2016. In 2020 it overtook South Africa to become the continent's largest exporter.
 
With the product contributing an average of over US$100 million (equivalent to Sh15 billion) annually to export earnings, Kenya is well-positioned for a continued rise in export values, fuelled by its successes in new markets.
 
The European Union, with a focus on nations like the Netherlands, France, Spain, the UK, and Germany, remains a key destination for Kenyan avocados. Additionally, Kenya has successfully expanded its avocado exports to the UAE, Saudi Arabia, Turkey, Egypt, Qatar, the Russian Federation, Ukraine, Kazakhstan, and Georgia.
 
Kenya first made a breakthrough in exporting avocados to China, almost exactly a year before South Africa signed an agreement in August 2022. Despite intense competition from global producers, the Chinese market has proven highly lucrative for Kenya, with exports to Beijing reaching an impressive US$64 million in the three months from May 2023.
 
This success can be attributed, in part, to an increase in licensed exporters to China, which rose from 25 in 2022 to 78.&nbsp;
 
Reports also indicate that other Asian markets, including Malaysia, are expressing keen interest in procuring Kenyan avocados. A Malaysian delegation conducted a pest risk analysis in Kenya last year, according to Kenya's Business Daily.
 
Even as Kenya actively seeks international markets, it continues to enhance efforts that will bolster local production and sustain these new markets. The Kenya Crops and Dairy Market Systems aim to provide 100,000 avocado seedlings to farmers in western Kenya by November 2023.
 
Trends in other African markets are equally promising, further reinforcing the promising future avocados hold for the continent’s economy.
 
Morocco, for instance, is expecting an all-time high yield this year, with preliminary assessments showing the improvement could hit 60000 metric tons, a 20% increment from 2022. This is according to Abdellah El Yamlahi, president of the Moroccan Avocado Association.
 
In an interview with FreshPlaza, a fresh produce news platform, El Yamlahi attributed the projected growth to, among other things, an increase in cultivation land by at least 15%.
 
Similar strides are gaining ground in South Africa, which has most recently been allowed access to the Chinese market, as revealed by Derek Donkin from the South African Avocado Growers Association (SAAGA), in an interview on FreshPlaza.
 
South Africa’s production in 2022 grew by 157%, with this year’s export volumes from the first season expected to be 80,000 tons, up 23% from last year.
 
According to East Fruit, an information and analytics platform specializing in horticulture, global avocado production is projected to soar to 12 million metric tons by 2030, tripling the figures from 2010. Of this volume, up to 3.9 million metric tons are anticipated to be exported, surpassing the exports of pineapples and mangoes.
 
The "Agricultural Outlook 2021–2030," jointly published by the Organization for Economic Cooperation and Development (OECD) and the Food and Agriculture Organization of the United Nations (FAO), forecasts that avocados are poised to become the most traded fruit by 2030.
 
Kenya is positioning itself to be part of that growth, aiming to increase the area under avocados from the current 26,000 hectares to more than 50,000 hectares by 2030.
 
bird story agency
 
Useful links:&nbsp;
https://east-fruit.com/en/news/avocado-harvest-in-morocco-expected-to-be-20-higher-than-last-year/
https://www.freshplaza.com/africa/article/9520386/south-african-avocado-exports-to-increase-by-23-this-season/
https://www.youtube.com/watch?v=mv_6iS4NUzw&amp;t=53s

India is the latest target for Africa's leading avocado exporter - Kenya 🥑🥑 🇮🇳 🇰🇪

Africa's crypto surges to $117.1 billion in 12 months marked by a strong retail wave as Nigeria, Kenya, Ghana and South Africa dominate the market.

Seth Onyango, bird story agency
 
Africa accounted for US$117.1 billion in cryptocurrency transactions in the year to June 2023, constituting 2.3% of the global transaction volume.&nbsp;
 
Centralised exchanges in this period, proved to be the go-to platforms, channeling over half of the region's digital asset volume, according to blockchain analysis firm, Chainalysis.
 
In a notable deviation from global trends, Africa's digital coin market leaned heavily on retail investors. The bulk of the transactions were pegged under the US$1 million mark, illustrating a distinct retail-driven trend compared to other regions.&nbsp;
 
Though historically one of the smaller players in the crypto arena, Africa's in-depth data paints a story of deep market penetration and a significant shift in the financial habits of its residents.
 
Nigeria, entrenching its crypto engagement, secured the second spot on the Global Crypto Adoption Index.&nbsp;
 
Notably, it outperformed other regional counterparts in raw transaction volume. Kenya, Ghana, and South Africa also made their presence felt, ranking 21st, 29th, and 31st respectively on the same index.
 
Chainalysis notes that the African market's affinity for Bitcoin remains one of the strongest of any region.
 
"In no region is Bitcoin more dominant than Africa, as the world’s first cryptocurrency makes up a bigger share of transaction volume there than in any other region," reads its analysis in part.
 
Chainalysis, launched in 2014, is the first start-up company dedicated to the business of Bitcoin tracing
 
"Many countries in the region have struggled with rising inflation and debt, making cryptocurrency an attractive means of storing value, preserving savings, and attaining greater financial freedom," it notes.
 
For instance, Ghana grappled with a spiralling inflation rate of 29.8% in June 2022, its highest in two decades.&nbsp;
 
With limited traditional financial avenues, many Ghanaians have pivoted to Bitcoin with parallel narratives echoing in Nigeria, Kenya, and South Africa, all showcasing remarkable grassroots crypto adoption.
 
Still, some market players have shifted their preference from Bitcoin to stablecoins recently, as these tend to experience fewer price fluctuations than Bitcoin, whose value is far below its peak levels.
 
"When Busha gained popularity around 2019 and 2020, there was a big frenzy for Bitcoin. A lot of people were not initially keen on stablecoins. Now that Bitcoin has lost a lot of its value, there is a desire for diversification between Bitcoin and stablecoins," Moyo Sodipo, Co-Founder and CPO of Nigeria-based cryptocurrency exchange Busha told Chainalysis.
 
"However, market shifts aren’t dampening activity. People are constantly looking for opportunities to hedge against the devaluation of the Naira and the persistent economic decline since COVID-19.&nbsp;
 
Tellingly, Nigeria stands out with its vast population and the region's leading economy.&nbsp;
 
Significantly, it also dominates in its cryptocurrency economy. Notably, despite market fluctuations, Nigeria's crypto landscape has expanded steadily.&nbsp;
 
Among the top 50 global nations, only six witnessed a growth in crypto transaction volume year-over-year in our study's timeframe. Nigeria, with a 9.0% growth rate, ranks third among them.
 
Facing two major recessions since 2016, due to political instability, the COVID-19 pandemic, and plummeting oil prices, Nigeria's economic strife has led over 20 million people to seek employment in 2021.&nbsp;
 
Crypto emerges as a potential solution for these challenges, as many Nigerians also consider relocation.
 
bird story agency&nbsp;

Retail investors fuel Africa's 12-month crypto surge to $117 million

In 2020, Kauffman Fellows (KF), a renowned venture education program, embarked on a journey to enhance diversity within its board, emphasizing diversity's importance within its fellowship cohort.

🚀 KF aims to promote an inclusive venture capital sector through annual summits that facilitate cross-border investments in tech markets globally. This year, KF's summit landed in Nairobi, Kenya, uniting 300+ investors from 45+ countries.
 
💼 Several factors fuel investor enthusiasm in Africa: rapid growth of the digital economy, a surge in venture funding, emergence of unicorns, and promising markets like Nigeria, Egypt, South Africa, Kenya, Ghana, Senegal, Rwanda, Ivory Coast, and Morocco.
 
📊 TechCrunch interviewed seven international investors at the summit, discussing their perceptions of Africa's startup and VC scene, exciting sectors, and potential overhyped areas.
 
🌟 Key insights from these investors:
 
&nbsp;&nbsp;&nbsp;- African startup ecosystem showcases immense talent and entrepreneurial spirit, with a youthful demographic and rapid unicorn growth.
&nbsp;&nbsp;&nbsp;- Africa's startup valuation and capital requirements differ significantly from the U.S., with startups often prioritizing profitability.
&nbsp;&nbsp;&nbsp;- Africa's exit paths often involve mergers and acquisitions (M&amp;A), reflecting strategic partnerships for scale.
&nbsp;&nbsp;&nbsp;- Sectors of interest include fintech, health, and commerce.
&nbsp;&nbsp;&nbsp;- The African VC landscape has a growing number of female investors and startups with women CEOs.
&nbsp;&nbsp;&nbsp;- The market opportunity for VC-backed edtech companies in Africa is developing.
&nbsp;&nbsp;&nbsp;- African markets present unique challenges but also vast opportunities for innovation and entrepreneurship.
 
📈 As active investors in their regions, these experts see potential in Africa and plan to deepen their involvement, exploring more opportunities to invest in African VC funds and startups in the future.
 
#AfricaTech #StartupInvesting #VentureCapital #InnovationInAfrica&nbsp;
 
 
Read more on <a href="https://techcrunch.com/2023/09/21/7-global-investors-discuss-african-tech-post-kauffman-fellows-first-summit-on-the-continent/">TechCrunch</a>

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Blow for Flutterwave as Kenyan court declines request to withdraw case

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