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Big Cabal Media just turned 10.
It’s been a decade of redefining storytelling, shaping conversations that drive meaningful change, and spotlighting African innovation and culture across tech, business, and youth. Our CEO, Tomiwa Aladekomo, reflects on the journey, the milestones, and what’s next for BCM.
Read Tomiwa’s full note here.
The ‘Big 5’ take the lead in most private deal inflows to Africa
Nigeria expected to raise interest rates
Yellow Card secures crypto licence in South Africa
World Wide Web 3
Events
Funding
The ‘Big 5’ take the lead in most private deal inflows to Africa
When you think of startup funding in Africa, you think of the Big 4 —South Africa, Egypt, Nigeria, and Kenya. These were countries where all the private capital flowed into. Think private equity, debt, venture capital deals, and mergers and acquisitions (M&As). The Big 4 raised at least 80% of all the continent’s capital since 2021.
Slowly, another West African country has risen through the ranks. In 2024, Ghana has solidified its position as a new entrant in Africa’s “Big 5” private capital destinations. Startups like Fido, Kofa, and Complete Farmer have driven this growth, raising a combined $45 million in the third quarter of the year.
Beyond startup activity, Ghana has attracted interest in private equity and debt financing, with notable deals in renewable energy and agribusiness. The country’s consistent focus on policy reforms and financial sector innovation has made it an attractive destination for broader private capital opportunities. M&A activity has also increased, particularly in consumer goods and logistics, as businesses expand regional operations.
There were 73 private capital deals in Africa in Q3 2024, according to a report by Stears. Thirty-nine of these deals were worth $2.27 billion. The Big 5 claimed 85% of those deals, reinforcing their dominance.
Financial services led the pack, accounting for 33% of investments, while consumer services followed at 19%. Notably, 90% of consumer goods investments targeted e-commerce, a promising sign for Africa’s digital trade growth.
Yet, that’s not all. Rwanda, another tech ecosystem upstart continues to quietly grow. The East African country saw more private capital deals (15%) in Q3 2024 than Ghana (12%).
Could there be a Big 6 soon? With Rwanda’s emergence, it’s hard to bet against it.
After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges.
Economy
Nigeria expected to raise interest rates at next MPC meeting
Nigeria’s Central Bank is expected to raise interest rates on November 26 at its next Monetary Policy Committee (MPC) meeting. The MPC raised the interest rates five times this year to fight the country’s inflation rate.
Nigeria’s headline inflation quickened to 33.8% in October after a hike in fuel prices and floods in food-producing areas affected consumer prices. Analysts predict that the unrelenting inflation may cause the MPC to nudge interest rates up by 25–100 basis points.
The Central Bank governor, Olayemi Cardoso, said at the last MPC meeting that the regulator was committed to taming inflation and attracting foreign investment by implementing a positive real interest rate. While the governor has opted to continuously raise interest rates to tame inflation, analysts suggest that there might be a need for complementary fiscal measures.
“In the long run, I don’t think continuous hiking will tame inflation significantly. There are other areas we should look at as a nation and economy to manage our inflation,” one analyst told me.
Banks will be the biggest beneficiaries if the CBN raises interest rates. Four of Nigeria’s largest banks by market cap—Guaranty Trust Holding Co., Zenith Bank Plc, United Bank for Africa Plc, and FBN Holdings Plc—all reported that net interest income had more than doubled since the last time the CBN raised rates.
Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts.
Get this valuable, free resource today!
Startups
Yellow Card secures crypto licence in South Africa
One month after it raised $33 million from investors, Yellow Card, the stablecoin infrastructure company, has secured a crypto licence in South Africa. The licence will allow Yellow Card to offer financial services related to crypto assets that are not regarded as legal tender in South Africa.
Yellow Card joins over 138 other companies with crypto licences in South Africa as the country softens its stance on cryptocurrency after $26 billion flowed through crypto between June 2023 and 2024.
Yellow Card launched in South Africa in 2020 and operates as a payment rail across 20 African countries. The company enables users to send money using stablecoins pegged to the dollar. The startup does not charge transaction fees but makes money from FX spread during transactions. Since its inception in 2016, it claims to have facilitated over$3 billion in transactions.
While getting a licence is good news for Yellow Card, it may need to brace up for a stricter regulatory environment. The Financial Intelligence Centre (FIC), the country’s anti-money laundering regulator now mandates crypto platforms to verify the identities of both senders and recipients in cryptocurrency transactions. This is part of efforts to fight money laundering and terrorist financing since South Africa is on the FATF Greylist.
South African regulators may have welcomed crypto with open arms, but the scepticism on crypto remains.
Paystack merchants in Kenya can now send single and bulk transfers to any Kenyan bank or MPESA account (including customer wallets, Paybills, and Tills) Learn more →
CRYPTO TRACKER
The World Wide Web3
Source:
Coin Name
Current Value
Day
Month
$96,6266.03
+ 0.47%
+ 43.55%
$3,097.18
– 0.04%
+ 17.40%
$0.03414
+ 9.30%
+ 143.28%
$236-20
+ 1.24%
+ 41.79%
* Data as of 05:30 AM WAT, November 21, 2024.
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Events
The Africa Early Stage Investor Summit (AESIS2024), hosted by ABAN and VC4A, will take place on November 28–29, 2024, at Cape Town’s V&A Waterfront. Under the theme “Pioneering Pathways: Innovating Investment Mobilization in Africa,” the summit will gather investors, entrepreneurs, and key stakeholders to explore innovative financing mechanisms, inclusive growth, and strategies to strengthen Africa’s early-stage investment landscape. Pre-summit meetups were held in cities like Lagos, London, and Amsterdam to build connections and highlight investment opportunities. Get tickets here.
The Ibadan Startup Festival, scheduled for November 29-30, will gather founders, investors, and ecosystem leaders to discuss innovation and entrepreneurship in Africa. Supported by the Oyo State Government, it offers workshops, panels, and networking to drive sustainable tech growth across the continent. Register here.
Crane’s Bank Direct lets you receive your crypto earnings directly in your local bank account instantly. It’s perfect for businesses, freelancers, and pretty much everyone who wants to receive money from international clients. Activate it here.
