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    Cape Town’s Havaíc Hits $30m Milestone for Third Fund as Institutional Interest Hardens

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    Cape Town’s Havaíc Hits $30m Milestone for Third Fund as Institutional Interest Hardens

    In a climate where African venture capital has shifted from “growth at all costs” to a hunt for sustainable exits, Cape Town-based Havaíc has secured a third close for its African Innovation Fund 3 (AIF3). The firm announced today that it has surpassed $30m in commitments, moving closer to its final $50m target.

    The latest capital injection comes from E Squared Investments, joining a roster of hard-hitting institutional backers including Sanlam Multi-Manager, Fireball Capital, and the government-backed SA SME Fund.

    While the broader African tech ecosystem has spent the last two years navigating a “funding winter,” Havaíc’s ability to draw in local institutional money — traditionally cautious about venture — signals a maturing of the asset class in South Africa.

    The Numbers

    • Fund Target: $50m
    • Current Commitments: $30m+
    • Deployment to Date: $10m across eight companies
    • Final Close Target: August 2026
    • Total Portfolio: 22 companies across three funds

    Moving Beyond the “Hype” Phase

    Havaíc’s strategy remains focused on post-revenue, early-stage (Seed to Series B) startups. Unlike funds that bet on pre-revenue ideas, Havaíc requires “born-in-Africa” businesses to demonstrate local product-market fit before providing the capital to scale into international markets.

    “Our due diligence showed that Havaíc has an extensive track record of successfully investing in the local tech space,” says Sanan Pillay, head of private markets at Sanlam Multi-Manager. The entry of Sanlam — one of South Africa’s largest financial services groups — marks a significant pivot. It is one of the firm’s first-ever allocations to the domestic VC industry, suggesting that institutional LPs (Limited Partners) are finally finding the risk-return profile of tech companies acceptable.

    The Proof of Concept: Exits

    What is likely loosening the purse strings of institutional investors is Havaíc’s recent track record of liquidity — a rarity in a market often criticised for being “paper-rich but cash-poor.”

    Over the past 12 months, the firm has seen two notable exits:

    1. RapidDeploy: The safety-tech startup, backed by Havaíc in 2022, was acquired by the US-listed Motorola Solutions in early 2025.
    2. hearX: The health-tech group merged with US hearing-aid maker Eargo to form LXE Hearing, following a $100m capital raise.

    These exits validate the “global-from-day-one” thesis. RapidDeploy, for instance, operates out of Cape Town but powers 911 response centres across the United States.

    Where the Money is Going

    Since its launch in 2023, Fund 3 has already deployed $10m. The portfolio is becoming increasingly fintech and data-heavy, reflecting the sub-sectors where African B2B startups have found the most traction.

    Key investments include:

    • SAPay: A $1m investment in a platform digitising payments for the South African taxi industry.
    • Entersekt: A veteran in the authentication and mobile security space.
    • Sportable: A sports data analytics firm currently expanding in the UK and US markets.
    • SwiftVEE: A livestock trading platform aimed at digitising agricultural supply chains.

    As Havaíc marches toward its final close in August 2026, the challenge will be maintaining this exit momentum. While the firm has proven it can pick winners that appeal to American acquirers, the broader African VC landscape still faces hurdles in secondary markets and local IPO paths.

    For now, the focus is on the remaining $20m and the final seven spots in the fund’s 15-company target. In an era of disciplined capital, Havaíc is betting that “boring” fundamentals — revenue, international scalability, and institutional-grade management — will be what defines the next decade of African tech.

    DPI Targets $1bn for Fourth Africa Fund as Proparco Chips in $42m

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    DPI Targets $1bn for Fourth Africa Fund as Proparco Chips in $42m

    In the world of African private equity, few names carry as much weight as London-based Development Partners International (DPI). As the firm moves toward its ambitious $1bn target for its fourth flagship fund, African Development Partners IV (ADP IV), it has secured a crucial $42m commitment from Proparco, the French development finance institution (DFI).

    The investment, part of the fund’s first closing, signals a continued reliance on DFI “anchor” capital to stabilize the African PE landscape. However, the real test for DPI — and the wider ecosystem — is whether this DFI backing can successfully “crowd in” the private institutional investors who have historically been wary of the continent’s macro volatility.

    While much of the venture capital hype in Africa focuses on seed-stage fintech, DPI plays in a different league. ADP IV is targeting mid-to-large cap companies. These are established businesses that form the backbone of the “real economy.”

    DPI’s thesis is built on three inescapable trends:

    1. Urbanization: Africa’s cities are growing faster than anywhere else on earth.
    2. Digitalization: The leapfrogging of traditional infrastructure via mobile tech.
    3. The Middle Class: A growing demographic with disposable income and a demand for better services.

    Rather than spreading bets thin, the fund plans to build a concentrated portfolio of roughly one dozen companies across North and Sub-Saharan Africa. The focus is on “defensive” yet high-growth sectors: healthcare, education, financial services, and FMCG (Fast-Moving Consumer Goods).

    The “Crowding-In” Conundrum

    For Proparco, this isn’t just about the $42m check. The goal of DFIs is to act as a “de-risker.” By conducting rigorous due diligence and committing early, they provide a stamp of approval intended to make pension funds and commercial banks more comfortable.

    “Our role is about mobilizing private capital,” says Tibor Asboth, Head of Private Equity for Africa and the Mediterranean at Proparco. “This investment reflects confidence in DPI’s ability to back high-growth companies while supporting the expansion of the African middle class.”

    However, the “crowding-in” effect remains a challenge. While DPI has a formidable track record — boasting over $3bn in Assets Under Management (AUM) since its founding in 2007 by Miles Morland and Runa Alam — the broader African PE market has seen a dip in private participation over the last 24 months due to currency fluctuations and global interest rate hikes.

    It isn’t just about the bottom line. As a condition of DFI participation, ADP IV adheres to strict ESG (Environmental, Social, and Governance) standards.

    A key highlight of this fund is its alignment with the 2X Challenge — a set of criteria designed to promote gender-smart investing. This means DPI isn’t just looking for profitability; it’s looking for companies that:

    • Have women in leadership roles.
    • Provide products or services that specifically benefit women.
    • Implement gender-equitable workplace policies.

    ADP IV: The Vital Statistics

    FeatureDetails
    Target Size$1 Billion
    Focus GeographyPan-African (North & Sub-Saharan)
    Investment StageMid-to-large cap growth equity
    Key SectorsFintech, Healthtech, Education, Retail, Logistics
    Lead InvestorsProparco, IFC, DEG, and various private LPs

    The Bottom Line

    DPI’s fourth fund is a litmus test for the “African Growth” narrative. If a firm with DPI’s pedigree can successfully deploy $1bn into the continent’s mid-market, it will prove that Africa is more than just a playground for early-stage startups — it’s a viable destination for massive, institutional-grade scale.

    The presence of Proparco provides the safety net, but the growth of Africa’s middle class will be the ultimate engine for the fund’s exit strategy.

    Temu’s 13m-User Milestone in Nigeria Triggers a ‘Data Sovereignty’ Showdown

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    Temu’s 13m-User Milestone in Nigeria Triggers a ‘Data Sovereignty’ Showdown

    On Monday (February 16), the Nigeria Data Protection Commission (NDPC) ordered an immediate investigation into Temu, citing potential violations of the country’s 2023 Data Protection Act.

    The move by Abuja opens a second major regulatory front against the ecommerce duopoly on the continent, coinciding with the final stages of a high-stakes investigation in South Africa.

    For years, platforms like Temu and Shein have operated in African markets with relative impunity, leveraging direct-to-consumer logistics to bypass local infrastructure costs. Now, however, the continent’s two largest economies appear to be shifting from observation to enforcement.

    The Lagos Probe: Surveillance and Data Mining

    The investigation in Nigeria, announced by Dr. Vincent Olatunji, the NDPC’s National Commissioner, focuses squarely on data privacy rather than trade mechanics.

    According to preliminary findings released by the Commission, Temu processes the personal information of approximately 12.7m data subjects in Nigeria alone. The investigation was triggered by concerns regarding:

    • Online Surveillance: Allegations of excessive personal data collection.
    • Cross-border Transfer: How Nigerian user data is moved and stored internationally.
    • Data Minimisation: Whether the platform collects more data than is necessary for its function.

    Dr. Olatunji issued a stark warning to local processors acting on behalf of foreign controllers, noting they could face liability if they fail to verify compliance with the Nigeria Data Protection Act.

    This pivots the scrutiny of Temu from purely economic concerns to issues of digital sovereignty and user privacy — a regulatory angle that European watchdogs have also recently explored.

    While Nigeria focuses on data, South Africa is tackling the market distortion caused by these platforms.

    The National Consumer Commission (NCC) in South Africa is currently wrapping up an investigation into both Shein and Temu for alleged violations of the Consumer Protection Act (CPA). The probe, which began in late 2024, is scheduled to conclude by February 28, 2026 — just days from now.

    “The two companies have been alerted, and both have undertaken to cooperate,” said Prudence Moilwa, head of complaints and investigations at the NCC.

    The stakes are significant. If found in violation, the platforms face administrative penalties of up to R1m ($55,000) or 10% of their annual turnover in South Africa. Given the estimated transaction volumes, the 10% figure would represent a massive financial penalty.

    Mogo Kenya Raises $6.2m in Syndicated Deal With I&M Bank and Ecobank

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    Mogo Kenya Raises $6.2m in Syndicated Deal With I&M Bank and Ecobank

    Fintech lender Mogo Kenya has secured Ksh 800m ($6.2m) in local debt financing from a syndicate led by I&M Bank and Ecobank. The deal marks a strategic pivot for the asset financier as it swaps foreign exchange volatility for local currency stability.

    The facility is the first tranche of a broader Ksh 1.5bn ($11.6m) two-year bond programme arranged by Dry Associates Investment Bank. While the capital will fuel Mogo’s core business — financing motorcycles (boda bodas), tuk-tuks, and smartphones — the real story lies in the balance sheet.

    By tapping into Kenyan institutional capital, Mogo has shifted its funding mix to 60% local and 40% international, with more than 80% of its total liabilities now denominated in Kenyan shillings (KES). In an era of unpredictable frontier market currencies, this move significantly reduces the “currency mismatch” risk that has historically crippled African fintechs borrowing in USD or EUR to lend in local denominations.

    The Deal Structure

    The bond programme is a “credit-enhanced” play. It is backed by Mogo’s underlying loan collateral and carries a guarantee from its European parent, Eleving Group.

    FeatureDetails
    Total Programme TargetKsh 1.5 billion ($11.6m)
    Current TrancheKsh 800 million ($6.2m)
    ArrangerDry Associates Investment Bank
    Participating BanksI&M Bank Ltd, Ecobank Transnational Inc.
    GuarantorEleving Group (Latvia/Luxembourg)

    Eleving Group, which listed on the Frankfurt and Riga stock exchanges in late 2024, provides a layer of institutional comfort that allowed Mogo to secure terms from traditional commercial banks — a feat often out of reach for smaller, purely digital lenders.

    Scaling the Informal Sector

    The fresh capital is earmarked for Kenya’s informal economy, specifically the boda boda sector. According to data from Viffa Consult, the industry contributes roughly 4.4% of Kenya’s GDP and employs over 2.5 million people.

    “We see a clear shift from rental models to ownership,” says Branton Mutea, Mogo Kenya’s Deputy Country Manager. “Riders want to build equity in their assets.”

    By providing logbook and asset-backed loans, Mogo is positioning itself as the bridge for the “unbankable.” However, this niche is becoming crowded. Competitors like M-Kopa and Watu Credit are also vying for the same “productive asset” pie, forcing lenders to compete on interest rates and speed of disbursement.

    The Regulatory Reality Check

    While the funding signals investor confidence, Mogo’s expansion comes with baggage. In late 2024, the Competition Authority of Kenya (CAK) slapped the lender with a Ksh 10.8m fine for “unconscionable conduct.”

    The regulator found that Mogo had misleadingly indexed KES-disbursed loans to the US dollar without clear disclosure, causing borrowers’ repayments to spike as the shilling depreciated. As part of its 2026 growth strategy, Mogo has had to overhaul its consumer protection protocols and transparency standards to satisfy both the CAK and its new institutional backers at I&M and Ecobank.

    The “Bank-Fintech” Symbiosis

    For the banks involved, the deal is less about direct lending and more about outsourcing risk. I&M and Ecobank have struggled to lend directly to the informal sector due to high operational costs and “know-your-customer” (KYC) hurdles.

    By lending to Mogo, the banks gain exposure to the high-yield SME market through a regulated intermediary, while Mogo gains the “cheap” liquidity required to stay competitive against the dozens of unregulated digital loan apps saturating the Kenyan market.

    As Kenya moves toward a more “structured oversight” regime in 2026, the success of this bond programme will serve as a litmus test for whether local capital markets can finally replace the dwindling flow of international VC equity in the African fintech space.

    Breadfast Raises $50M Pre-Series C as Novastar Leads Rare Late-Stage Bet in Egypt

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    Breadfast Raises $50M Pre-Series C as Novastar Leads Rare Late-Stage Bet in Egypt

    Egypt’s quick-commerce and logistics platform Breadfast has closed a $50m pre-Series C funding round led by Novastar Ventures through its People and Planet Fund III (NVIII), positioning the company as a rare bright spot in a North African tech ecosystem that has struggled with devaluations and downrounds over the last 18 months.

    The round was backed by heavyweights including Mubadala, The Olayan Group, SBI Investment, Asia Africa Investment & Consulting, Y Combinator, IFC — International Finance Corporation, EBRD, and 4DX Ventures, alongside a prominent Saudi family office. The fresh capital is intended to bridge the gap to a larger Series C round projected for the first half of 2026, which the company says will precede a potential global IPO.

    While many African startups have spent the last year cutting costs and facing valuation haircuts, Breadfast has managed to grow its valuation. According to portfolio data from Swedish investment firm VNV Global, the company is now valued at approximately $403m — up 31% from the start of 2025.

    For VNV, which holds a 7.5% stake in Breadfast (originally purchased for $16.9m and now valued at $30.2m), the grocery platform has become the anchor of its African strategy, accounting for two-thirds of the firm’s exposure on the continent.

    Bet on Infrastructure

    Founded in 2017 by Mostafa Amin, Muhammad Habib, and Abdallah Nofal, Breadfast initially launched as a simple fresh bread delivery service. Its survival, however, is largely attributed to a pivot away from the asset-light models favored by VCs during the 2020–2021 boom.

    Instead, the company built a capital-intensive vertical supply chain. Breadfast now operates:

    • 47 fulfilment centres across Egypt.
    • 7 production facilities for bakery and fresh goods.
    • 35 branded coffee shops, blending digital and physical retail.

    This infrastructure appears to have insulated the company from Egypt’s volatile inflation, which has historically squeezed margins for pure-play marketplaces that rely on third-party suppliers.

    The Private Label Play

    The primary driver of Breadfast’s unit economics is its aggressive push into private-label goods. The company currently lists over 1,000 private-label products among its 7,000 SKUs.

    Management reports that these own-brand items now account for 40% of grocery sales. By controlling production, Breadfast can manage input costs more effectively than competitors reselling CPG brands, a crucial advantage in an import-restricted economy. The company claims the majority of its fulfillment centers are operating profitably — a metric that has become the primary litmus test for late-stage investors.

    Fintech and Future Expansion

    The $50m injection will be used to scale this infrastructure further and explore expansion into new African markets, though specific targets have not been disclosed.

    Beyond logistics, Breadfast is attempting to replicate the “super app” trajectory seen in other emerging markets — drawing comparisons to Latin America’s Mercado Libre or Kazakhstan’s Kaspi. The vehicle for this is Breadfast Pay, a fintech arm launched in partnership with Visa and Abu Dhabi Islamic Bank.

    By layering financial services on top of high-frequency grocery transactions, Breadfast aims to capture higher-margin revenue from Egypt’s large unbanked population.

    Institutional Validation

    The round follows a quiet accumulation of debt and equity financing from development finance institutions (DFIs), who typically conduct more rigorous due diligence than standard venture firms.

    In 2025, the company secured $10m from the European Bank for Reconstruction and Development (EBRD) and has a planned $13m investment from the International Finance Corporation (IFC).

    The company has set a target of capturing 3% of Egypt’s estimated $100bn grocery market within the next three years. With a $403m valuation validated by operational metrics rather than speculative growth, Breadfast is inching closer to the IPO exit door — a milestone that the Egyptian ecosystem desperately needs.

    Zero Fees vs. High Inflation: Why Cisco Is Doubling Down on Affinity Africa’s ‘Freemium’ Math

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    Zero Fees vs. High Inflation: Why Cisco Is Doubling Down on Affinity Africa’s ‘Freemium’ Math

    The Ghanaian fintech space is witnessing a rare alignment between Silicon Valley corporate philanthropy and boots-on-the-ground digital banking. Affinity Africa, a digital bank targeting the informal sector, has secured its second round of support from the Cisco Foundation and FINCA Ventures.

    The funding — the exact amount of which remains undisclosed — is structured to accelerate financial literacy and expand credit access in a market where traditional banking often stops at the gates of the formal economy.

    The Strategy: Cracking the “Informal” Nut

    For most digital banks in West Africa, the “unbanked” are a difficult demographic to monetize due to lack of formal documentation and volatile income streams. Affinity, founded by Tarek Mouganie, is attempting to bridge this by utilizing proprietary underwriting technology and a branchless, low-cost operating model.

    The startup’s value proposition hinges on two technical milestones:

    1. eKYC: The first fully digital onboarding process approved in Ghana.
    2. Data-Driven Lending: Using non-traditional data points to assess the creditworthiness of informal workers who lack standard credit histories.

    Key Performance Indicators (KPIs)

    MetricDetail
    Total Funding to DateUS$13 million
    Customer Base125,000+
    Unbanked Ratio65% of total users
    Gender Split60% Female
    Regulatory StatusSavings & Loans license (Bank of Ghana)

    Why This Matters for the Ghanaian Market

    Ghana’s central bank has historically been conservative with licensing. When Affinity received its Savings and Loans license in 2022, it was the first such permit granted in over a decade. This regulatory clearance allows Affinity to operate more like a traditional bank — taking deposits and offering a full suite of services — while maintaining the lean overhead of a tech startup.

    The collaboration with the Cisco Foundation highlights a shift in how global tech giants approach African fintech. Rather than pure venture plays, these partnerships often focus on “social enterprises” that can demonstrate tangible progress in “closing the opportunity gap.”

    “Affinity Africa’s success in reaching the unbanked — particularly women and informal workers — demonstrates the power of inclusive technology,” says Charu Adesnik, Executive Director of the Cisco Foundation. 

    The Road to Scale

    Despite the momentum, the path forward is not without friction. Ghana has faced significant macroeconomic headwinds, including currency fluctuations and high inflation, which put pressure on both digital lenders and their customers’ ability to repay.

    Affinity’s response has been a “zero-fee” approach. The platform charges no monthly maintenance fees or transaction costs, betting instead on the volume of its lending products and interest on deposits. This “freemium” banking model requires massive scale to reach profitability.

    With US$13 million in total capital raised, including an US$8 million Seed round, Affinity is now focused on deepening its footprint within Ghana before eyeing regional expansion. The current grant will specifically fund “capacity building,” which in startup terms means hiring, refining the credit algorithms, and scaling the educational outreach needed to convert cash-reliant workers into digital bank users.

    The Competition

    Affinity isn’t alone in the race. It competes with:

    • Mobile Money (MoMo) Giants: MTN and Vodafone dominate the payment landscape.
    • Traditional Banks: Many are now launching “lite” versions of their apps.
    • Neo-banks: Regional players like Kuda (Nigeria) and TymeBank (South Africa) have set high benchmarks for digital-first banking on the continent.

    By securing the Cisco Foundation’s backing for a second time, Affinity has validated its impact-first model. However, the true test will be whether its proprietary underwriting can keep default rates low in a volatile economy while maintaining its “no-fee” promise.

    One Month, Two Rounds: Nigeria’s Terra Industries Hits $34m as Investors Eye ‘Faster-Than-Expected’ Traction

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    One Month, Two Rounds: Nigeria’s Terra Industries Hits $34m as Investors Eye ‘Faster-Than-Expected’ Traction

    Just one month after securing an $11.75 million round led by Joe Lonsdale’s 8VC, the Lagos-born defense-tech startup Terra Industries has closed an additional $22 million extension led by Lux Capital. The round also drew participation from 8VC, Nova Global, and Resiliience17 Capital, a fund set up by Flutterwave CEO Olugbenga Agboola.

    The fresh capital brings the total funding for the two-year-old company to $34 million, a figure that underscores a rare but aggressive entry of American defense-tech venture capital into the African market. Founded in 2024 by Nathan Nwachuku (22) and Maxwell Maduka (24), Terra Industries is positioning itself as the continent’s first “defense prime,” mirroring the vertically integrated models of Western unicorns like Anduril and Shield AI.

    The sovereignty play

    For decades, African defense procurement has been a tug-of-war between foreign state-backed entities. Hardware and intelligence systems from China, Russia, and Europe dominate the landscape, ranging from border surveillance drones to maritime monitoring.

    Terra Industries is pitching a reversal of this dependency. The company argues that reliance on foreign vendors has left African governments with fragmented, “black box” systems that cannot be serviced locally, creating significant vulnerabilities regarding data sovereignty.

    “Before Terra, governments and operators across Africa were often forced to rely on foreign defense systems from China, Europe, and elsewhere,” says Maxwell Maduka, co-founder and CTO.

    By offering tighter hardware-software integration, Terra ensures that sensitive security data remains within the jurisdiction of the client nation — a pitch that helped the company secure its first federal contract in Nigeria earlier this year.

    Scaling a ‘Defense Prime’

    Terra’s strategy is built on vertical integration. Rather than acting as a niche drone vendor, it aims to own the entire “kill chain” of infrastructure protection.

    The centerpiece of their technology is ArtemisOS, a unified software platform designed to orchestrate large-scale security operations. It integrates data from a diverse fleet of hardware, including:

    • Archer VTOL & Iroko UAV: Long- and mid-range drones for aerial surveillance.
    • Druma: Autonomous ground-based robotic systems.
    • Sentry Towers: Autonomous surveillance towers for perimeter geofencing.

    The company claims its systems are already protecting assets valued at approximately $11 billion across the energy and mineral resource sectors. CEO Nathan Nwachuku noted that Terra has already generated more than $2.5 million in commercial revenue, primarily from securing high-value industrial sites like power plants and mines.

    Geopolitical expansion: From Abuja to Riyadh

    The extension round was reportedly driven by “faster-than-expected traction” in international partnerships. Most notably, Terra recently signed a joint venture with AIC Steel, one of the Middle East’s largest infrastructure contractors.

    The deal involves establishing a manufacturing facility in Saudi Arabia to produce surveillance infrastructure and security systems. While Africa remains the primary focus, the Saudi expansion signals Terra’s intent to target “allied” emerging markets facing similar threats to critical infrastructure.

    The investor view: A competitive landscape

    The involvement of Lux Capital and 8VC (the latter having backed Western defense heavyweights) suggests a growing appetite for “allied” defense technology to counter non-Western influence in the Global South.

    However, compared to its Western counterparts, Terra is operating on a fraction of the capital:

    CompanyTotal Funding (Approx.)Focus Area
    Anduril$2.5bn+Multi-domain defense (US/Allies)
    Shield AI$1bn+Autonomous flight software
    Saronic$830mAutonomous naval vessels
    Terra Industries$34mInfrastructure & Sovereign Defense (Africa/Emerging Markets)

    Challenges ahead

    Displacing entrenched relationships between African governments and state-owned suppliers like China’s DJI or Russian state firms remains a steep climb. Defense procurement is as much about diplomacy as it is about technology, and Terra will need to prove its hardware can survive the high-stakes, harsh environments of the Sahel and sub-Saharan regions over the long term.

    For now, with $34 million in the bank and a manufacturing foothold in the Gulf, Terra has the resources to attempt a significant restructuring of how African nations secure their borders and resources.

    African Startup Deal Tracker — Newest Deals

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    African Startup Deal Tracker — Newest Deals

    While the spotlight often shines on headline-grabbing mega-rounds, the bedrock of Africa’s rapidly growing startup ecosystem lies in the consistent flow of smaller (or missed bigger rounds), yet equally vital, investments. This month’s edition of the African Startup Deal Tracker delves into these under-the-radar transactions, encompassing pre-seed funding, angel investments, and strategic acquisitions that collectively paint a picture of sustained growth and investor confidence across the continent. These deals, spanning diverse sectors from agri-tech to legal tech, highlight the ingenuity of African startup founders and the breadth of opportunities being seized.

    Here’s a closer look at the notable under-the-radar investment activity we’re tracking this month:

    Yongeza Capital

    • Investment: Undisclosed (Seed investment).
    • Investor(s): Holocene.
    • Sector/Focus: E-Mobility / Energy Infrastructure. Building a comprehensive electric two-wheeler swapping network. The model replaces traditional downtime-heavy charging with “swap stations” where riders exchange depleted batteries for charged ones in seconds.
    • Country of Operation: Uganda.
    • Purpose: To scale clean, accessible mobility infrastructure across Uganda and expand operations into the rest of Africa. The startup leverages a founding team with deep experience in scaling telecom and energy infrastructure (e.g., American Tower Corporation) to manage uptime-critical systems at scale.

    Spiro Mobility

    • Investment: $7 million senior debt working capital facility.
    • Investor(s): Nithio, through its FAIR (Facility for Adaptation, Inclusion and Resilience) fund.
    • Sector/Focus: E-Mobility / Clean Energy. Africa’s largest electric vehicle platform, deploying electric motorcycles and a massive battery-swapping network. The platform uses a “State of Charge” (SoC) monitoring system and smart energy IoT to optimize battery lifespans.
    • Country of Operation: Currently active in 7+ countries, including Benin, Togo, Rwanda, Kenya, Uganda, Nigeria, and Ghana.
    • Purpose: To expand its electric motorcycle fleet (currently 80,000+ units) and battery swapping network (2,500+ stations), while strengthening the company’s working capital as it scales to meet regional demand for low-carbon commercial transport.

    Arc Ride

    • Investment: Up to $5 million (Proposed equity investment as part of a larger Series A round).
    • Investor(s): International Finance Corporation (IFC). Other strategic backers include Mirova, British International Investment (BII), Musashi Seimitsu Industry, and Novastar Ventures.
    • Sector/Focus: E-Mobility / Battery-as-a-Service (BaaS). Develops IoT-enabled electric two-wheelers and proprietary tech infrastructure for managing fleet and battery swap facilities.
    • Country of Operation: Kenya (HQ in Nairobi).
    • Purpose: To finance the company’s Series A expansion and growth. The funds will support the large-scale deployment of electric bikes (Boda Bodas) and the rollout of hundreds of battery-swapping cabinets to create a seamless, low-carbon transport network across East Africa.

    Talk360

    • Investment: $1.4 million (Secondary Investment).
    • Investor(s): Led by HAVAÍC (lead investor since 2022) with support from Universum Wealth (a limited partner in HAVAÍC’s African Innovation Fund 3).
    • Sector/Focus: Fintech / Global Communications. A cross-border calling platform specifically designed for diaspora communities, international travelers, and businesses, offering savings of up to 90% on international calls.
    • Country of Operation: Headquarters in South Africa and the Netherlands, with major operations in Nigeria and India; serves over 6 million users in 180+ countries.
    • Purpose: To fund the next phase of product development, including the expansion of Shop360 — a feature allowing users to send mobile airtime, data bundles, and top-ups globally. The secondary nature of the deal also provided partial liquidity to early angel investors who have backed the company since 2016, realizing up to 5x returns.

    Ollo Africa

    • Investment: $1.8 million (Capital increase from 68 million CFA to 1 billion CFA).
    • Investor(s): Togolese and American business angels (including Sophia Boyer).
    • Sector/Focus: Fintech / Digital Social Savings. Digitizes traditional Rotating Savings and Credit Associations (ROSCAs), commonly known as tontines, through its proprietary Ohana Africa platform.
    • Country of Operation: Togo (with ambitions to expand across the WAEMU region).
    • Purpose: To launch a major customer acquisition campaign in Togo and technologically enhance the Ohana Africa platform. The funds will also support strategic partnerships with microfinance institutions and community organizations, building on its existing partnership with Ecobank and its BCEAO license to provide secure, traceable collective savings.

    Tactful AI

    • Investment: $1 million Pre-Series A round.
    • Investor(s): Jointly led by Foras AI and M Empire, with participation from prominent deep-tech angel investors.
    • Sector/Focus: SaaS / Agentic AI / Customer Experience (CX). A platform that enables organizations to move beyond simple chatbots to “Agentic AI” — autonomous agents capable of handling complex customer requests from end-to-end within defined operational controls.
    • Country of Operation: Egypt (HQ) with a presence in Europe and the Middle East.
    • Purpose: To accelerate growth within the Egyptian market, explore and test new regional markets across the EMEA region, and continue R&D for its proprietary agent-based execution technology.

    The Funding Desert: Why Algerian Startups Are Being Pushed Toward the Public Markets

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    The Funding Desert: Why Algerian Startups Are Being Pushed Toward the Public Markets

    For years, the Algiers Stock Exchange (SGBV) has functioned more like a quiet monument to state-led industry than a high-octane engine of capital. Its trading floor, dominated by a handful of state-backed giants, rarely saw the kind of volatility or volume associated with emerging markets in Cairo or Casablanca.

    But as 2026 begins, the Algerian government is attempting an audacious pivot. By the end of this year, at least five startups and “scale-ups” are expected to list on the Algiers Stock Exchange to raise development funds. It is a move born of necessity as much as vision — a high-stakes experiment to see if a frontier market can bypass the traditional venture capital “funding desert” and head straight for the public.

    The Pilot: A Sobering Post-Game Analysis

    The blueprint for this transition was laid in late 2024 by Moustachir SPA, a digital-first consulting firm. It was the first “labeled” startup to seek growth capital through the local bourse. The offering was modest: 125,000 shares priced at 760 Algerian dinars (DA), roughly $5.70 per share, aiming to raise $707,000.

    While the listing was hailed as a milestone by the Commission for the Organization and Oversight of Stock Exchange Operations (COSOB), the subsequent two years have provided a reality check. Recent disclosures suggest Moustachir’s market capitalization for its listed shares has dwindled to approximately 800,000 DA.

    Whether this figure represents a catastrophic loss of value, extreme liquidity constraints, or a reporting anomaly, it serves as a cautionary tale for the 2026 cohort. For a startup, being “public” is meaningless if there is no one on the other side of the trade to buy the shares.

    The 2026 Pipeline

    Despite the uneven performance of the first mover, the Ministry of Knowledge Economy and Startups is doubling down. Chems Eddine Benmousset, the ministry’s Director of Support Structures, recently confirmed that several applications are under review for 2026. The target sectors are:

    • Agritech: Looking to digitize Algeria’s vast but traditional farming sector.
    • Healthtech: Seeking to fill gaps in a public-heavy healthcare system.
    • AI and E-commerce: Attempting to modernize a consumer market still heavily reliant on cash and informal trade.

    To grease the wheels, the Ministry of Finance has removed one of the biggest hurdles: IPO fees. By exempting small firms from these costs, the government hopes to lower the barrier to entry for the 16 “scale-ups” it aims to groom this year.

    Why the Road is “Hard to Crack”

    The challenge for Algeria is not a lack of entrepreneurs. Since the labeling committee was established in 2020, over 1,100 startups have been officially recognized. The problem is the bridge between a “label” and “liquidity.”

    ChallengeImpact on Startups
    The “Funding Desert”Local banks demand physical collateral (buildings, equipment) that tech firms don’t have.
    Retail SkepticismAlgerian households traditionally prefer real estate or gold over digital shares in an AI firm.
    Institutional RigidityPension funds and insurance giants remain risk-averse, favoring government bonds over high-growth tech.
    Compliance OverheadThe shift to “dematerialized” electronic securities requires a level of transparency many young firms struggle to maintain.

    “When the government says ‘use the stock exchange,’ it sounds innovative,” noted one local entrepreneur who requested anonymity to speak candidly about the ecosystem. “But the reality is that a public listing requires a level of financial maturity that few three-year-old companies possess.”

    Symbolic Gestures vs. Market Infrastructure

    Beyond the financial mechanics, the government is leaning into cultural incentives. A new President of the Republic’s Prize for Best Startup will be awarded this November during Global Entrepreneurship Week. Simultaneously, the “Algeria Disrupt” conference series is returning to the provinces to drum up interest.

    However, prestige and prizes are no substitute for market depth. For the Algiers Stock Exchange to become a viable path, it needs more than just five listings; it needs an active investor base like its neighbours Morocco and Egypt. Without a “critical mass” of successful exits, the exchange risks becoming a “well-intentioned detour” rather than a true financing alternative.

    The Outlook

    Algeria’s push to public markets reflects a genuine policy dilemma. With international venture capital largely bypassing the country due to currency controls and regulatory complexity, the stock exchange is an option chosen by elimination.

    If the 2026 cohort — spanning agritech to AI — can prove that a public listing leads to actual growth rather than just “illiquid prestige,” it could fundamentally rewrite the North African economic playbook. If they fail to attract buyers, the road for Algerian startups will remain as hard to crack as ever.

    The Graduation Gap: Mapping Africa’s Current High-Liquidity Post-Seed Corridors

    Staff Writer
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    The Graduation Gap: Mapping Africa’s Current High-Liquidity Post-Seed Corridors

    The era of the “unbridled pre-seed” in Africa has given way to a more disciplined, metric-driven scaling phase. As venture capital enters a structural reset, the ability to bridge the gap between a seed round and a significant Series A or growth round has become the ultimate test of a market’s maturity. Approximately 5% to 21% of African seed-stage startups successfully secure Series A funding, significantly lower than the global average of roughly 33%.

    Based on an analysis of several post-seed transactions — defined as Series A through Series C, growth equity, and institutional debt — recorded by Launch Base Africa between 2025 and 2026, a new hierarchy is forming. The data reveals that scaling is no longer a continental trend but a concentrated phenomenon within five high-liquidity corridors.

    The North-East Dominance: Egypt and Kenya

    In the current cycle, Egypt and Kenya have emerged as the primary engines of post-seed activity, each controlling 19% of the scaling deals. Despite their identical share, their methods of graduation differ fundamentally.

    • Egypt’s Balance Sheet Play: Cairo is currently the continent’s laboratory for diverse financing. Beyond equity, Egyptian startups are leveraging debt and strategic corporate investment to scale.
    • Notable Activity: Several of MNT-Halan’s securitized securitized bonds signal that Egypt’s fintech sector has matured enough to tap into public debt markets.
    • Sector Depth: Scaling is not limited to finance; Nawah Scientific ($23m Series A) and Tagaddod ($26.3m Series A) show institutional appetite for healthtech and renewable energy.
    • Kenya’s Infrastructure Anchor: Nairobi remains the destination for “real economy” scaling — logistics, connectivity, and energy.
    • Notable Activity: Mawingu’s $20m Series C and Cold Solutions’ $19m infrastructure investment illustrate a preference for asset-heavy technology.
    • Strategic Handoff: The data shows a high frequency of “Patient Capital” from DFIs and infrastructure funds (like Mirova) taking over from early-stage VCs.

    South Africa: The Industrial and Green-Tech Moat

    Accounting for 11.9% of post-seed transactions, South Africa maintains the highest average check size according to our data. While it may see fewer deals than Cairo, the deals it does see are often larger and more industrially integrated.

    The South African scaling story is now defined by the energy transition. Transactions such as Solar Saver’s $60m equity round and Maxwell+Spark’s $15m Series B demonstrate a clear path for hardware and green-tech companies. These rounds are increasingly led by global strategic players (Chevron, Alantra, Klima) rather than generalist tech VCs.

    The Challenger and the Reset

    Both Morocco and Nigeria currently hold a 9.5% share of the post-seed market, though they represent two very different trajectories.

    • Morocco’s Logistics Bridge: Morocco is the fastest-ascending market in the North. High-value rounds for Yakeey ($15m Series A) and Chari ($12m Series A) suggest that Morocco is successfully positioning itself as a B2B and mobility hub for the Maghreb and Southern Europe.
    • Nigeria’s Pivot to Credit: Nigeria’s scaling phase is undergoing a transformation. While equity Series A volume has slowed, the market leads in massive credit facilities. The $100m facility for LagRide and $24m for MAX indicate that Nigerian mobility and fintech firms are bypassing equity dilution in favor of high-ceiling debt to fund expansion.

    The Rise of the “Debt Revolution”

    Perhaps the most significant finding in the data is that 25% — exactly one-quarter — of all post-seed capital is now being deployed through Debt, Bonds, or Senior Credit Facilities.

    This shift is a sign of sector graduation. Startups in fintech, mobility, and energy are no longer just selling a vision; they are using their balance sheets to borrow against revenue. This professionalization is most visible in Egypt and Nigeria, where “strategic debt” is replacing the traditional Series B.

    The Scale-Up Verdict

    The data confirms a multi-polar reality. The “Big Five” (Egypt, Kenya, SA, Nigeria, and Morocco) now control 70% of all post-seed activity.

    For the broader ecosystem, this creates a geographical bottleneck. While angel investors are active in dozens of countries, the institutional “handoff” is concentrated. For a founder, graduating from “seed” to “scale” in 2026 is increasingly dependent on being in — or expanding to — one of these five liquidity hubs.

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