TechPression

Tag: Sub-Saharan Africa

  • SC Ventures, Yabx invest $10 million in Furaha to finance education in Sub-Saharan Africa

    SC Ventures, Yabx invest $10 million in Furaha to finance education in Sub-Saharan Africa

    Furaha, a DIFC-based loan platform specialising in financing education in Sub-Saharan Africa, has received a $10 million investment from SC Ventures, Standard Chartered’s innovation, fintech investment and ventures arm, and Yabx Technologies, Tech Mahindra’s subsidiary, a leading global provider of technology consulting and digital solutions to enterprises across industries.

    According to the announcement which was made on Friday, Yabx contributed $3 million in technology transfer, and SC Ventures contributed $7 million.

    Founded by Yustus Aribariho and Ian Fernandes, Furaha was incubated by SC Ventures and is headquartered in the Dubai International Financial Centre (DIFC). Its first focus is on education financing, starting with Uganda, where it aims to address the region’s financing challenges.

    Read also: Mastercard, KCB Bank partner to introduce multi-currency prepaid card in Kenya

    Partnership to enhance purpose-driven financing in Africa 

    “We are glad to partner with like-minded innovators like Yabx and Tech Mahindra who share our vision of increasing financial inclusion and access. The partnership will help enhance purpose-driven financing in Africa and supports our work to rewire the DNA in banking,” said Alex Manson, CEO, SC Ventures.

    “The transformative power of purpose-driven financing lies in its ability to bridge gaps in access and opportunity, particularly in regions like Africa. This strategic partnership aims to make financial solutions more inclusive and impactful. It’s indeed an exciting beginning, and we look forward to collaborating with SC Ventures on many such initiatives that redefine financial empowerment and drive innovation globally,” said Mohit Joshi, CEO and Managing Director, Tech Mahindra.

    Furaha lowers the cost of delivering purpose-driven lending products and expands financial inclusion across underserved segments of Africa by combining SC Ventures’ extensive knowledge of banking and risk management with Yabx’s agile, future-ready platform with AI-driven alternate lending capabilities.

    “This partnership with SC Ventures is a big moment for Yabx. It marks our first step into the education financing space. The long-term impact of a partnership like this is huge, and we’re excited to work with Furaha as they positively impact education outcomes in Uganda and other African countries in the coming months,” said Rajat Dayal, CEO, Yabx.

    Read also: Kenya scraps electronic travel authorisation for 52 African countries

    Challenges of African parents financing their children’s education in Africa 

    The cost of providing their children with a high-quality education is one of the largest expenses that families must consider.

    The majority of parents frequently struggle to make on-time school fee payments because they lack sufficient cash or access to short-term borrowing tools like credit cards or reasonably priced digital loans.

    Children who have unpaid or delayed school fees are frequently unable to finish their education, which affects not only their future chances but also the growth of the community and nation. For parents who make less than $500 a month, the difficulty is particularly severe.

    Furaha, which has begun offering loan products in Uganda with partners like Opportunity Bank, SchPay, and MTN MoMo, and has plans to expand to other African countries, provides a much-needed solution for parents and schools by establishing a rich ecosystem of data for credit scoring and allowing commercial banks to channel affordable credit towards financing education.

  • Proparco fuels African climate innovation with $5M fund investment

    Proparco fuels African climate innovation with $5M fund investment

    Proparco announced a significant $5 million investment in the Equator Africa Fund on Monday, aimed at enhancing climate innovation across Sub-Saharan Africa.

    Equator Africa Fund, founded by Nijhad Jamal, focuses on early-stage startups addressing urgent climate challenges through renewable energy, sustainable agriculture, and green mobility solutions.

    Read also: Namibian minister calls for urgent investment in Africa’s energy sector

    Investment impact

    This funding is crucial for building climate resilience in a region that is particularly vulnerable to the impacts of climate change.

    Proparco’s Fabrice Perez stated, “Through this investment, we aim to support ventures addressing the urgent climate challenges in sub-Saharan Africa”.

    The Equator Africa Fund has previously backed innovative companies like Kenya’s SunCulture and electric mobility firm Roam, which exemplify the potential for sustainable growth in the continent’s climate tech sector.

    Nijhad Jamal expressed pride in Proparco’s involvement, emphasising the importance of providing capital and support to startups at crucial stages of their development. 

    He noted, “We are extremely proud to have Proparco participate in our fund…to provide much-needed capital and active hands-on support”.

    This partnership aims to bridge the funding gap and catalyse further investments in climate tech initiatives, unlocking economic potential while addressing environmental challenges.

    Read also: Osinbajo advocates for human investment over technology in Africa’s climate crisis

    Broader context

    The investment aligns with a growing trend of increased financial backing for African climate startups. In 2024 alone, these startups have attracted $325 million, reflecting a significant rise from previous years.

    However, experts warn that this amount still falls short of the estimated $300 billion needed annually to meet Africa’s climate adaptation and mitigation goals by 2030.

    Proparco’s engagement with the Equator Africa Fund highlights a commitment to sustainable development that balances economic growth with environmental stewardship. 

    As Perez remarked, “We believe these ventures hold promise for a sustainable future”. The fund’s strategic focus on innovative solutions is essential for enhancing energy access and promoting sustainable agricultural practices across the continent.

  • Rwanda, UNEP, Others Secure Funding For Eco-Friendly Fridges, Air Conditioners

    Rwanda, UNEP, Others Secure Funding For Eco-Friendly Fridges, Air Conditioners

    Rwanda, the United Nations Environment Programme (UNEP), the University of Birmingham, and other project partners will share £4 million in order to eliminate dangerous emissions from aged air conditioning, refrigeration, and cold supply networks.

    The environmentally beneficial funding was revealed on April 20, with the goal of preserving the ozone layer, which protects the world from UV radiation.

    Funding will be awarded in May of this year as part of Defra’s Sustainable Cooling and Cold Chain Solutions programme.

    Thérèse Coffey, the United Kingdom’s secretary of state for the environment, stated, “This funding will help developing countries play their part in tackling climate change and communities around the world with more efficient food and medicine storage – as well as support farmers to increase their productivity.”

    The investment will also help to improve the management of the refrigerated chain for fruits and vegetables.

    Read also: Nigeria, UNIDO, GEF Partner To Meet Clean Energy, Climate Action SDGs

    How Poor Cold-Chain Management Is Affecting Food Production

    Small-holder farmers produce 80 percent of the food produced in Sub-Saharan Africa; around 37 percent of all food is wasted between production and consumption, and nearly 50 percent of fruits and vegetables are lost owing to poor cold-chain management.

    Currently, in developing economies, a lack of adequate cold storage and refrigerated transport vehicles contributes to over 1.5 million vaccine-preventable deaths per year.

    According to estimates, 25% of vaccinations arrive at their destination with impaired efficacy, owing mostly to breaks in cold chains.

    Officials from Rwanda’s Ministry of Environment confirmed the country’s commitment to establishing the Africa Centre of Excellence for Sustainable Cooling and Cold-chain (ACES) headquarters in Kigali, which is set to open in late 2023.

    Cold Economy Professor at the University of Birmingham and Heriot-Watt University, Professor Toby Peters, is leading the collaboration of UK universities supporting this project in Africa and India.

    “Sustainable and equitable cooling and cold-chain infrastructure is now more critical than ever in a warming world,” he said. Food preservation is just as vital as food production.

    For the first time, this plan provides an integrated approach that includes on-the-ground training and support for subsistence farmers and their communities, viable business models, and a network of qualified engineers to assist with equipment installation and maintenance.”

    Professor Peters explained that doing so will allow ACES to address multiple global challenges at the same time, including “mitigating climate change and the environmental impacts of meeting new cooling demand; reducing food loss and converting it into increased farmer incomes, food security, and consumer affordability; and designing the next generation of efficient, resilient, responsive, and sustainable vaccine cold-chains.”

    In addition to financing pledges from the United Kingdom, the Rwandan government is overseeing the building of critical campus infrastructure to support the Centre.

    The University of Birmingham, Heriot-Watt University, Cranfield University, and London South Bank University are leading a consortium of Rwandan and UK universities in developing the Centre’s teaching and research programmes, which will provide a pipeline of skills, expertise, and innovation in cooling technology solutions, systems, and models.

    The UK’s ACES funding is assisting in the construction of Specialised Outreach and information Establishments (SPOKEs) to transfer information and implement solutions across Africa, with the first of these being established in Kenya, as well as giving technical help to duplicate the model in Telangana and Haryana, India.

    Defra has allocated an additional £1.2 million to project partners to support the development of roadmaps and digital tools to help developing countries design equitable, resilient, and cost-effective approaches, quantify the full economic, environmental, and societal impact, and understand the policy landscape required to implement new approaches.

    KarmSolar Launches a New Minority Stake Round

    Rwanda’s Plans For Ozone-Safe Electronic Appliances

    Rwanda is contemplating a new mechanism to facilitate access to inexpensive, ozone-safe refrigerators and air conditioners that do not contribute to climate change.

    According to information provided by the Rwanda Environment Management Authority, there is a programme called ” A green on-wage financing mechanism ” that aims to make energy-efficient and climate-friendly refrigerators and air conditioners more affordable.

    The programme is part of the Rwanda Cooling Finance Initiative (R-COOL FI), which aims to promote energy-efficient and climate-friendly cooling and the recycling of inefficient existing systems.

    By 2024, the initiative hopes to generate $4 million in financing to support the procurement of 12,500 climate-friendly and energy-efficient cooling products in Rwanda.

    She stated that energy-efficient and eco-friendly refrigerators and air conditioners are available at a discount through credit.

    As part of implementing the Montreal Protocols, Rwanda reduced by 54% by the year 2020 its importation of ozone-depleting hydro-chlorofluorocarbons (HCFCs).