<h1>Opportunity for Ethiopian Startups: NINJA Acceleration Program Returns!</h1>Startups play a pivotal role in tackling social issues and achieving the Sustainable Development Goals (SDGs). By driving innovation, solving persistent cross-sectoral problems, creating jobs and fostering economic development, startups can address pressing social challenges, including digital transformation, amidst growing populations and expanding markets.However, startups often face challenges such as navigating business environments, accessing finance and developing effective organizational structures and monitoring systems.Recognizing these opportunities and challenges, the Ministry of Innovation and Technology and JICA Startup Ecosystem Advisor have launched the 2024 NINJA Acceleration Program to support growth-stage startups in Ethiopia to enhance their business strategies, improve market penetration and promote investment readiness.<figure class="image"><img src="/uploads/Option_2_2a3f33168b.png" alt="Application banner for the NINJA Acceleration Program organized by JICA and Renew Capital, promoting opportunities for Ethiopian startups to enhance business strategies and investment readiness."></figure><h2>Growth Stage Startups</h2><ul><li>Have a proven product or service, established customer base and are generating revenue but are looking to expand further.</li></ul><h2>Who can apply?</h2><ul><li>Startups operating in Ethiopia with a valid business registration</li><li>Tech-enabled business models and/or products/services</li><li>Are post-revenue and looking to grow</li><li>Are led by a dedicated full-time founding team</li><li>In preferred sectors: Agri-tech, Manufacturing technology, Fintech, Health-tech, Tourism-tech, Mining-tech and digital and ICT are more preferable</li></ul>Application Window: June 26 and ends on July 12, 2024 by (12 @Noon) (6 Local Time).Eligible growth-stage startups in Ethiopia are invited to apply. Successful participants will have the chance to participate in the GITEX Dubai, UAE conference. Don’t miss this exciting opportunity to take your startup to the next level.&nbsp;<a href="https://share.hsforms.com/1ZsmBlcxaR4uOLoZpL_ko0gee4rj">Apply Now</a>.For more information, contact:&nbsp;<a href="mailto:connect@renewcapital.com">connect@renewcapital.com</a>

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Opportunity for Ethiopian Startups: NINJA Acceleration Program Returns!

<h1>Secrets of Nigeria's Momentum&nbsp;</h1>Context for the country’s current state and startup potentialWow! Nigeria is a big surprise for me. We arrived on a holiday weekend for Eid-el-Kabir. We experienced very little of the chaos that most people rant about their visit to Lagos. We arrived at the old terminal and while it is dated, it is fine. The road into the city&nbsp;on the&nbsp;<a href="https://en.wikipedia.org/wiki/Third_Mainland_Bridge">Third Mainland Bridge</a>&nbsp;is in good shape (currently free from construction). We are here to meet founders (<a href="https://venturelab.renewcapital.com/">apply here for Renew Venture Lab)</a>, get time with our team and understand the startup ecosystem.&nbsp;<figure class="image"><img src="/uploads/IMG_1426_2_2f4faebe67.jpg" alt="Skyline of high-rise buildings in Lagos, Nigeria, showcasing the city's modern architecture and urban landscape."></figure>Though in a bit of a downturn, Nigeria continues to be a major player in the global startup ecosystem. With its market potential, impressive capital raises, supportive policies and a mature fintech sector, the country offers fertile ground for innovation and growth.1. Massive Market Potential -&nbsp;Nigeria's population, at 219 million in 2022, is expected to nearly double to 377 million by 2050, making it the 3rd or 4th largest country in the world. Despite a GDP slowdown and challenging economic times, the IMF expects improvement, signaling a positive economic trajectory.2. Leading in Startup Investments -&nbsp;Nigeria has raised the highest amount of capital among African startup ecosystems over the past five years, totaling $4.65B. The country has attracted 29% of Africa's total startup investment since 2019 and Nigeria remains a top destination for venture capital, despite a recent slowdown. Nigeria boasts the third-highest number of startup exits in Africa since 2019, following South Africa and Egypt.3. Supportive Regulatory Environment -&nbsp;Enacted on October 19, 2022, the Nigeria Startup Act fosters a conducive environment for startups with provisions like the National Council for Digital Innovation and Entrepreneurship, a special startup legal designation and various incentives. Nigeria boasts more than 90 accelerators, incubators, coding bootcamps and tech hubs, complemented by the highest number of active angel networks on the continent.4. Maturing Fintech Sector -&nbsp;<ul><li>Fintech Dominance: Nigeria’s fintech sector constitutes one-third of Africa’s fintech market, leading the "Big Four" countries (Nigeria, South Africa, Kenya, and Egypt) with a&nbsp;<a href="https://gfmag.com/features/african-fintech-untapped-potential/#:~:text=Between%202021%20and%202023%2C%20this%20quartet%20often%20called%20the%20%E2%80%9CBig%20Four%E2%80%9D%20was%20home%20to%2077%25%20of%20the%20continent%E2%80%99s%20fintech%20companies%20and%20swallowed%20over%2090%25%20of%20funding.%20Over%20the%20same%20period%2C%20Nigeria%20topped%20all%20the%20charts%20with%20a%2032%25%20market%20share%2C%20over%20%241%20billion%20raised%20in%20venture%20capital%20and%20217%20established%20fintechs">32% market share</a> and over $1B in venture capital raised between 2021 and 2023.</li><li>Success Stories: Notable Nigerian fintech successes include Jumia, Flutterwave, Paystack, Interswitch and OPay, setting a foundation for future growth.</li><li>Second Generation Companies: New businesses are building on the infrastructure established by early successes and failures, enabling quicker launches and broader service offerings.</li></ul>5. Final thoughts…<ul><li>&nbsp;The fear of Nigeria is outdated and overhyped.&nbsp;Don’t be swayed by how outside people talk about Nigeria. Lagos is great. Get on a plane and come see.&nbsp;&nbsp;</li><li>There’s value in maturity. Fintech and the startup ecosystem in Nigeria is maturing. Sectors such as healthcare, agriculture, entertainment, etc. show great potential in Africa’s most populated country.&nbsp;</li></ul>Nigeria’s combination of market potential, investment potential, regulatory support and fintech prowess makes it an exciting hub for startups and investors alike.Go Deeper on Nigeria?<ul><li><a href="https://www.linkedin.com/posts/renew-capital_nigeria-in-12-photos-activity-7209806106326429696-o6fl?utm_source=share&amp;utm_medium=member_desktop">Lagos in 12 photos</a></li><li><a href="https://latest-api.renewcapital.com/uploads/Final_edited_Nigeria_Fact_Sheet_39dc514cf5.pdf">Nigeria’s Startup Ecosystem Factsheet</a></li><li><a href="https://www.google.com/maps/@/data=!3m1!4b1!4m2!11m1!2slcGMqW-Ny-nSfEHk1wn_-0avUL9orA">Lagos Startup Ecosystem Google Map</a></li></ul>

Discover Nigeria’s growing startup scene, its market potential, investment trends and the thriving fintech sector shaping its future.


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Secrets of Nigeria's Momentum 

<h1>Why We Invested in Badili: Charting a Sustainable Digital Future through Recommerce</h1><figure class="image"><img src="/uploads/Renew_Capital_March202024_1893_1_815d22e05f.jpg" alt="An image of Badili founder holding a refurbished smartphone with team members at the Nairobi office, showcasing the company’s sustainable technology."></figure>Africa has undergone a transformative mobile phone revolution, yet the momentum of&nbsp;<a href="https://www.trustonic.com/opinion/what-are-the-barriers-to-smartphone-expansion-across-africa/">smartphone access</a> on the continent is still catching up. Concurrently, the environmental toll of smartphone production has become a pressing global concern, with production and manufacturing accounting for a staggering 80% of a smartphone's total carbon footprint. Recognizing the urgency,&nbsp;<a href="https://www.gsma.com/solutions-and-impact/connectivity-for-good/external-affairs/wp-content/uploads/2023/02/Strategy-Paper-Circular-Economy-Mobile-Devices.pdf">GSMA Intelligence</a> highlights that extending the lifespan of smartphones by just one year could mitigate up to 21.4 million metric tons of CO2 annually by 2030. Immediate action is imperative, and in this context, recommerce emerges as a pivotal force.To tackle this challenge the refurbished mobile device market is set to exceed $140B by 2030, experiencing a remarkable surge from $50B&nbsp; in 2020 according to GSMA. Badili, an East Africa-based company is leading the recommerce revolution in Africa by providing a platform where people can buy used and refurbished smartphones safely and affordably. Most of their devices cost less than half their original price and all come with a 12-month warranty.Renew Capital invested in Badili because of its growth potential, strong founders and significant impact.<figure class="image"><img src="/uploads/Renew_Capital_March202024_1838_8c1f592f3b.jpg" alt="An image of the Badili smartphone warranty cover details, explaining coverage and benefits for refurbished devices."></figure><h2>Strong Founders</h2>Badili, at the forefront of Africa's recommerce movement, was founded in 2022 by&nbsp;<a href="https://ke.linkedin.com/in/rishabh-lawania-15a74159">Rishabh Lawania</a> and Keshu Dubey. Initially concentrating on establishing a reliable platform for buying and selling pre-owned smartphones in Kenya, Badili has expanded its reach to Uganda and Tanzania. The inspiration behind the establishment of Badili stemmed from Lawania's witnessing a colleague facing legal consequences for inadvertently purchasing a stolen phone. As a result, the company is committed to providing safe and reliable used phones in Africa.Both founders have a wealth of experience in the technology sector. Before Badili, Rishabh and Keshu co-founded WeeMedia, a content-as-a-service platform for Africa, which operates WeeTracker.com, Gadgets-Africa.com, AfriCo and Xeler8, a deal-sourcing research platform.<h2>Demonstrated Traction</h2>Badili has established refurbishing centers in Kenya, Tanzania and Uganda, and is rapidly becoming a major player in the mobile device industry through strategic partnerships.<ul><li><a href="https://badili.ke/">In Kenya</a>, they have partnered with major ecommerce platforms including Jumia, Kilimall, Jamboshoppe and Carrefour. They also have payment partnerships with Absa and LipaLater.</li><li>In November 2023,&nbsp;<a href="https://www.techafricanews.com/2023/11/22/airtel-uganda-partners-with-badili-africa-to-offer-affordable-refurbished-smartphones-boosting-accessibility/">Airtel Uganda</a>, one of the country’s leading telecom companies, announced a collaboration with Badili to accelerate smartphone adoption and improve internet access for Ugandans.</li><li>In the same year, Badili was recognized as one of the&nbsp;<a href="https://www.linkedin.com/posts/badili-commerce_great-way-to-end-the-year-badili-was-listed-activity-7144662100068524033-wL9s?utm_source=share&amp;utm_medium=member_desktop">top 100 most innovative startups</a> by MyStartupAfrica.</li></ul><h2>Orientation Towards Growth</h2>In January 2024, Badili announced that it had raised a seed round led by E3 Capital through E3 Capital’s Low Carbon Economy Fund. This funding will enable Badili to expand into new markets beyond the East African region, ultimately contributing to the enhancement of Africa’s digital infrastructure."We invested in Badili because we see a unique opportunity and a strong founder. Badili provides refurbished consumer electronics that are in high demand and the business model is built on principles of circular economy and climate sustainability making it an exciting investment for Renew Capital. By supporting Badili, we are contributing to a sustainable digital future for Africa through recommerce." — Laura Davis, Renew Capital founder and co-CEO.

In this blog, explore why Renew Capital invested in Badili, a leader in Africa’s refurbished smartphone market.

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Why We Invested in Badili: Charting a Sustainable Digital Future through Recommerce

<h1>Secrets of Egypt's Momentum&nbsp;</h1>Context for the country’s current state and startup potentialThe past few months have been full of exploration for Matt and I as we’ve traveled around Africa to meet founders and to better understand startup ecosystems on the continent. Today, you find me in Cairo, Egypt. Last week, we were in Casablanca, <a href="https://www.renewcapital.com/newsroom/secrets-of-moroccos-momentum" target="_blank" rel="noopener noreferrer">Morocco</a> and next week, we will be in Lagos, Nigeria.&nbsp;Side note: For those who are interested (and not familiar with the ecosystem), we are hosting a Zoom webinar on “Nigeria’s Startup Scene: How Does it Stack Up?” June 19th, 12:30 PM Eastern.&nbsp;<a href="https://us02web.zoom.us/webinar/register/WN_RfG8ycMnTnOh8tc4QQva6g">Register here</a>.&nbsp;Renew Capital has been exploring Egypt for about a year now, and we are currently sourcing startups for investments as part of Renew Venture Lab (<a href="https://venturelab.renewcapital.com/">apply here</a>). We have so much to learn, but these are some of our key takeaways on Cairo this week and our earlier trip in March.&nbsp;<figure class="image image_resized" style="width:100%;"><img src="/uploads/IMG_7314_832de261f0.JPG" alt="A beautiful photo of Cairo's skyline over the river, featuring modern buildings and historical architecture."></figure>Here are a few things we have learned:&nbsp;<ul><li>A startup leader in MENA - Cairo's startup ecosystem is a leading hub in the MENA region, driven by strong sectors such as fintech, e-commerce and logistics. The e-commerce sector seems to be growing rapidly due to a young population and increasing internet penetration. Cairo’s ecosystem benefits from a supportive environment with various active investors and other stakeholders. Cairo's strategic location and robust talent pool further enhance its appeal as a startup hub​​.</li><li>Cairo is a city of contrast - I’ve worked in frontier and emerging markets for 20 years. But in Cairo the contrast was unique. First, you have&nbsp;ancient and new -&nbsp;You’ll find the Pyramids of Giza 15 minutes from the center of town and then 30 minutes in the other direction you have New Cairo and the New Administrative Capital with giant IT parks, IKEA, beautiful malls, modern restaurants and the tallest building in Africa. The contrasts are almost overwhelming. Next, you have&nbsp;outside versus inside and day versus night&nbsp;- Cairo is dusty and dense and on the outside of buildings and during the day, the old city can look a bit run down. But, when you go inside it’s like a new world. You find beautiful old buildings with great architectural designs and finishing work. It’s clean and beautiful. In Cairo, you have to know where to look. Also, once the sun sets, the buildings are lit up and it’s absolutely breathtaking!</li><li>Cairo is surprisingly affordable - Granted, the currency devalued in March by almost 40%, but even before that, internationals who live here describe Cairo as a very affordable city. A Starbucks run in March for four people - lattes, cappuccinos, juice drinks and snacks ran us about $6.</li><li>Cairo is large! -&nbsp;Cairo is the&nbsp;<a href="https://citymonitor.ai/environment/infrastructure/what-are-the-largest-cities-in-the-middle-east#:~:text=It%20is%20the%20most%20populated%20%E2%80%98metropolitan%E2%80%99%20area%20in%20the%20Middle%20East">largest city</a> in the Arab world with a population of almost&nbsp;<a href="https://www.worldbank.org/en/country/egypt/overview">10 million</a> and the whole urban area being above&nbsp;<a href="https://populationstat.com/egypt/cairo">22 million</a>. Egypt has two of the continent’s <a href="https://africa.businessinsider.com/local/lifestyle/top-10-african-cities-with-the-highest-population/sz3n5pv" target="_blank" rel="noopener noreferrer">largest cities</a>, with the second being Alexandria. As many cities and populations in the developed world age and shrink, Egypt and Cairo are forecasted to grow with nearly 43% of Egyptians living in urban centers.&nbsp;</li><li>Egypt is wealthy, relative to other SSA countries -&nbsp;Cairo had Starbucks, McDonalds, Hardees (Carl’s Juniors), delivery services, Uber, IKEA, Carrefour and everything you could want. We all know this development in South Africa. But, prior to my first visit in March, I didn’t know I would also find it in Cairo. Its&nbsp;<a href="https://data.worldbank.org/indicator/NY.GDP.PCAP.CD#:~:text=6%2C391.3-,Egypt%2C%20Arab%20Rep.,-2022">GDP per capita</a> is more than $4,000, which is one of the wealthier countries in Africa.&nbsp;<a href="https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=A9&amp;most_recent_value_desc=true">10th</a> among the 54 countries on the continent and many believe the&nbsp;<a href="https://english.ahram.org.eg/News/520322.aspx">structural reforms</a> President Abdel Fattah el-Sisi is putting in place will help the country see higher GDP growth in the coming years.&nbsp;</li><li>Egypt (and Africa) may become the focal point of a shift in geopolitical power -&nbsp;​​From an Economist article titled “<a href="https://www.economist.com/middle-east-and-africa/2024/03/13/gulf-countries-are-becoming-major-players-in-africa">Gulf countries are becoming major players in Africa</a>”, “As African leaders seek alternatives to dwindling Chinese loans and Western aid, the Gulf’s rise is reshaping geopolitics on the continent, with effects good and bad.” Cairo - as the epicenter of Africa’s Arab cultural and economic influence - will be one to watch as this geopolitical reshuffle happens. For example, in November 2023 Saudi pledged to invest $25B in Africa by 2030.&nbsp;</li></ul><h2>Go Deeper on Egypt?</h2><ul><li><a href="https://www.linkedin.com/posts/renew-capital_egypt-in-12-photos-activity-7207270407031238657-zxwu?utm_source=share&amp;utm_medium=member_desktop" target="_blank" rel="noopener noreferrer">Cairo in 12 photos</a></li><li><a href="https://www.youtube.com/watch?v=XIbSkaTdvrg" target="_blank" rel="noopener noreferrer">Interview with Matt and Laura</a></li><li><a href="https://latest-api.renewcapital.com/uploads/Egypt_s_Startup_Ecosystem_Factsheet_07e3c034a1.pdf" target="_blank" rel="noopener noreferrer">Egypt Startup Ecosystem Factsheet</a></li><li><a href="https://maps.app.goo.gl/X5JctByrSorhGMUL7">Cairo Startup Ecosystem Google Map</a></li></ul>

Learn about Cairo's fast-growing startup scene, its role in the MENA region, the unique blend of ancient culture and modern growth shaping its business landscape.

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Secrets of Egypt's Momentum 

<h1>Press Release: Zuri Secures Investment: Poised to Transform Africa’s Beauty Industry</h1>Renew Capital Supports Zuri’s Rise in Africa’s Booming Beauty Industry<a href="https://latest-api.renewcapital.com/uploads/2024_11_6_FINAL_Zuri_Press_Release_39eb9c56c7.pdf" target="_blank" rel="noopener noreferrer">Download full press release</a>KINSHASA, DRC and KIGALI, Rwanda, June 11, 2024&nbsp;—&nbsp;Zuri (<a href="http://myzuri.com">myZuri.com</a>), a tech-enabled beauty company, seeks to transform the African beauty industry with high-end, beauty products designed by Africans.&nbsp;<figure class="image image-style-align-center image_resized" style="width:100%;"><img src="/uploads/1708699055330_8e252ca833.jpeg" alt="Founder of Zuri Luxury Hair poses with employees, showcasing teamwork and dedication to empowering women in Africa's beauty industry."></figure>Established in 2016, Zuri is a growing brand in the booming African beauty industry.&nbsp; Through a unique business model that integrates physical hair salons, an e-commerce platform and social media communication channels in 3 East African countries (Democratic Republic of Congo, Uganda and Rwanda), <a href="https://www.linkedin.com/company/zuribeauty/">Zuri</a> distributes its high-end products and services to the growing African consumer market. The company is also tapping into the growing demand in the African diaspora markets in Europe."Zuri's objective is to empower women, from all over the world, to become the best version of themselves. We have made it easy for our customers to access high-quality beauty products and services through all of our touchpoints," stated <a href="https://www.linkedin.com/in/gis%C3%A8la-van-houcke-1aa177159/">Gisèla Van Houcke</a>, the founder &amp; CEO of Zuri. “We are thrilled to welcome Renew Capital aboard as we look ahead to the next phase of Zuri's expansion journey.”The company has leveraged its innovative model to develop a proprietary platform, seamlessly integrating it into both its e-commerce app and physical salons, delivering tailored experiences to its customers from their home to the hair salons."Zuri's innovative approach, particularly their integration of technology to disrupt the beauty space, is truly exciting. Their growth trajectory is very promising, and we're thrilled to join forces with them on this journey," said <a href="https://www.linkedin.com/in/adamabate/?originalSubdomain=et">Adam Abate</a>, Renew Capital’s principal of investment management.Zuri's innovative business model and commitment to empowering women through beauty have made them a leader in the African beauty industry. With this new investment, the company is poised to take its mission to the next level and make a significant impact on the African beauty industry.*Ecosystem activation, pipeline development and capacity-building support provided to Renew Capital portfolio companies is generously supported by Global Affairs Canada.

Renew Capital invests in Zuri, a tech-enabled beauty startup to enhance Africa's beauty industry by integrating salons and e-commerce, empowering women across the continent.

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Press Release: Zuri Secures Investment: Poised to Transform Africa’s Beauty Industry

<h1>Secrets of Morocco's Momentum&nbsp;</h1>Context for the country’s growth and startup potentialMatt and I have been in Morocco for almost two weeks now, last week, attending&nbsp;<a href="https://gitexafrica.com/?utm_source=theafricabrief.beehiiv.com&amp;utm_medium=referral&amp;utm_campaign=africa-in-brief-may-31-2024">GITEX Africa</a>&nbsp;in Marrakesh hosted by the Dubai World Trade Center and this week exploring the startup ecosystem in Casablanca. Renew Capital has had a small presence in Morocco since January and we are currently sourcing startups for investments as part of Renew Venture Lab (<a href="https://venturelab.renewcapital.com/">apply here</a>). We have so much to learn still, but these are some of our key takeaways so far.&nbsp;<figure class="image"><img src="/uploads/Image_a4f058478e.png" alt="Collage of four photos: Renew Capital’s Co-CEO, Matt Davis, with the U.S. Ambassador to Morocco at a Moroccan startup demo, UNESCO World Heritage Site, Jenaa El Fnna Square in Marrakech, GITEX Africa event in Marrakesh, Morocco, May 2024, Moroccan seafood pastilla delicacy."></figure><ul><li>Taking Their "Game Up": The 2030 FIFA World Cup is a tri-country event with Portugal, Spain and Morocco set to play host. Moroccans are inspired (and perhaps a little nervous!) that they will be compared to the two other countries. Competition is good and we predict continued improvement in quality across the services sector, and a boom in real estate and services industries, along with the creation of new tech companies that Europeans are used to in their home country. Sidenote: The airline, Royal Air Maroc is&nbsp;<a href="https://simpleflying.com/royal-air-maroc-new-aircraft-fleet/">slated to quadruple</a>!&nbsp;</li><li>A Better Wall?: Morocco and other countries in Northern Africa will need to absorb a massive amount of migrants looking for a life - but being rejected entry - into Europe. We see huge potential (or problems if not done) for Europe to help build up factories and invest in job-absorbing industries in Northern Africa to minimize migration. Look for a boom in high job creation industries.</li><li>Windfall of Too Much Tourism: Spain received 85 million&nbsp;<a href="https://www.investinspain.org/content/icex-invest/en/noticias-main/2024/turismo-2023.html">tourists last year</a> and many want to move there. But some say Spain is now starting to burst at the seams. Morocco is a great country to absorb that spillover. Look for a big boom in the tourism industry!</li><li>Long Live the King: Moroccans LOVE and trust their King and they believe the monarch has a good plan to build their country. This also creates stability and focus - people work hard when they're not worried about politics. Given the factors above and the stability, look for GDP growth to beat forecasts.</li><li>Homeward Bound: Amid Europe's polarized migration debates, descendants of Moroccan immigrants are moving back to Morocco. Seeking better opportunities and reconnecting with their heritage, many find support through platforms like&nbsp;<a href="https://web.facebook.com/groups/277379784237975/?_rdc=1&amp;_rdr">"J’ai décidé de m’installer au Maroc"</a> on Facebook and "<a href="https://www.instagram.com/vivre_au_maroc/?hl=en">Vivre au Maroc</a>" on Instagram. Despite adjustment challenges, positive feedback highlights Morocco's appeal for social and economic advancement, with returning diaspora contributing to the nation's growth. There’s little to no brain drain problem in Morocco!&nbsp;</li></ul>Go Deeper on Morocco?<ul><li><a href="https://www.linkedin.com/posts/renew-capital_morocco-in-12-photos-activity-7204750404012675072-q5Wb?utm_source=share&amp;utm_medium=member_desktop" target="_blank" rel="noopener noreferrer">Morocco’s Momentum in 12 Photos</a></li><li><a href="https://latest-api.renewcapital.com//uploads/Morocco_Startup_Ecosyestem_Fact_Sheet_006a5a8686.pdf" target="_blank" rel="noopener noreferrer">Morocco’s Startup Ecosystem Factsheet</a></li><li><a href="https://www.google.com/maps/placelists/list/ET4sW5dcS_6HWsverJmwqA">Casablanca Startup Ecosystem Google Map</a></li></ul>

Explore Morocco's growing startup ecosystem with Renew Capital, fueled by tourism, returning diaspora and a stable economy.

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Secrets of Morocco's Momentum 

<h1>Why We Invested in Roam: Investing in Roam to Electrify Africa's Transport Sector</h1><figure class="image"><img src="/uploads/04_Roam_Charge_b552c764b5.jpg" alt="An image of a Roam electric bike owner at an EV charging station showing an electric motorcycle battery."></figure>Photo courtesy of Roam&nbsp;As a result of increasing urbanization and the subsequent reliance on fossil fuels,&nbsp;<a href="https://www.wilsoncenter.org/article/battle-earths-climate-will-be-fought-africa#:~:text=But%20Africa%E2%80%99s%20CO2%20output%20per%20person%20has%20been%20growing%20fast%E2%80%94much%20faster%20than%20its%20population.%C2%A0%C2%A0%20That%20is%20to%20be%20expected%20as%20increases%20in%20income%20and%20urbanization%20lead%20to%20higher%20per%20capita%20fuel%20and%20electric%20consumption.">Africa’s CO2 output</a> per person has been growing faster than its population. Furthermore, the risk of climate disasters disproportionately affects low-income countries. The need for clean transportation options to service Africa’s growing urban populations is therefore critical to mitigating the impact of climate change.&nbsp;Africa currently contributes&nbsp;<a href="https://tcc-gsr.com/wp-content/uploads/2023/08/2.1-Africa-Regional-Overview.pdf">less than 1%</a> to global vehicle production and heavily relies on used vehicle imports. The market for electric vehicles (EVs) on the continent has a promising growth potential. It is expected to reach&nbsp;<a href="https://www.fairplanet.org/story/africa-electric-vehicle-charging-station-startup/#:~:text=USD%2021.39%20billion%20by%202027%2C%20up%20from%20USD%2011.94%20billion%20in%202021.">$21.39B by 2027</a>, up from $11.94B in 2021 driven in part by the demand for electric buses and two and three-wheelers for public transport needs. However, the uptake of EVs has faced challenges due to underdeveloped infrastructure and electricity challenges in the region.&nbsp;To tackle these challenges, Roam Electric is building affordable and eco-friendly electric buses and motorcycles that are designed and manufactured in Africa. Furthermore, Roam Electric is building solar charging infrastructure in Kenya to address the electricity challenges.Renew Capital invested in Roam because of its strong founders, demonstrated traction and the company’s orientation towards growth.<figure class="image"><img src="/uploads/25_Roam_Rapid_1_4f43f34a83.jpg" alt="An image of a Roam Rapid electric bus that is cost-efficient and has zero tailpipe emissions."></figure>Photo courtesy of Roam&nbsp;<h2>Strong Founders</h2>Roam Electric, founded in 2017 by&nbsp;<a href="https://www.linkedin.com/in/filip-lovstrom?originalSubdomain=ke">Filip Lövström</a> and&nbsp;<a href="https://ke.linkedin.com/in/mikael-g%C3%A5nge-a7334317a">Mikael Gånge</a>, seasoned professionals in the energy industry, started as a research project at a Swedish university. Recognizing an opportunity in electric vehicles tailored for the African market, the company evolved its focus from&nbsp;<a href="https://techcrunch.com/2023/09/18/roam-move-ev-bus/#:~:text=Founded%20in%202017%20by%20Filip%20L%C3%B6vstr%C3%B6m%20and%20Mikael%20G%C3%A5nge%2C%20Roam%20previously%20specialized%20in%20auto%20conversions%2C%20before%20moving%20to%20electric%20vehicle%20production.">conversions</a>. After rigorous development, Roam Electric now produces electric motorcycles and buses, designed especially for emerging markets, with Kenya as its initial target.These vehicles offer significant carbon emission reductions, with electric motorcycles&nbsp;<a href="https://www.roam-electric.com/about">cutting emissions</a> by over 90% and electric buses by 80%. Roam Electric's commitment to sustainability garnered it recognition as a finalist for the prestigious&nbsp;<a href="https://earthshotprize.org/winners-finalists/roam/">Earthshot Prize</a> in 2022.The company's core mission is to provide sustainable transportation solutions for African markets, where reliance on public transportation is widespread.&nbsp;<h2>Demonstrated Traction</h2>Roam Electric has three main products designed to suit the East African market.&nbsp;<ul><li>The Roam Rapid Electric Bus has a range of over 360 kilometers (224 miles) and can seat up to 90 people. It is designed to carry passengers along major corridors and on routes such as airport transfers.&nbsp;</li><li>The Roam Move Electric Bus is a smaller bus designed to compete with the traditional&nbsp;Matatu.&nbsp;&nbsp;</li><li>The Roam Air is an electric motorcycle adapted for the local market, characterized by a dual battery with a 180 km (112 miles) range. It can be charged freely in any outlet where a phone can be charged, without infrastructure dependency. In July of 2023, Roam opened a plant in Nairobi with the capacity to produce&nbsp;<a href="https://cleantechnica.com/2023/07/25/president-of-kenya-william-ruto-inaugurates-roam-park-east-africas-largest-electric-motorcycle-assembly-plant/">50,000</a> bikes a year.</li><li>Roam Hub -&nbsp;Roam currently has&nbsp;<a href="https://cleantechnica.com/2024/04/18/roam-teams-up-with-quickmart-to-introduce-roam-hub-charging-stations-for-electric-motorcycles-in-kenya/">four active</a> Roam Hub charging stations spread out within Nairobi.</li></ul><h2>Orientation Towards Growth</h2>Roam raised $24M in a Series A round, including an up to $10 million debt commitment from the U.S. International Development Finance Corporation (DFC), to scale the production of electric motorcycles and buses. Equator, an Africa-focused climate tech venture capital fund, led the round. Other investors in the round include One Ventures, TES Ventures, The World We Want, One Small Planet and Renew Capital.Roam and County Bus Service are planning to introduce&nbsp;<a href="https://www.roam-electric.com/post/roam-and-county-bus-service-partner?s=09">10 CBS electric buses</a> by the end of 2024, and 200 CBS electric buses across Kenya by the end of 2026. Roam Electric has also partnered with various companies, including&nbsp;<a href="https://kenyanwallstreet.com/bolt-to-lease-motorbikes-from-roam-ampersand/">Bolt</a>, which offers ride-hailing, micromobility rental, food and grocery delivery, and car-sharing services. Bolt's courier riders can purchase an electric motorbike at an affordable rate through the financing company MKOPA.&nbsp;“We invested in Roam Electric because of its potential within the electric vehicle sector on the continent. Roam is focused on offering affordable EVs, but they have an eye for quality, which we found rare relative to alternatives. I, for one, love driving my Roam motorcycle around Kigali. Furthermore, the founders of Roam bring considerable experience from the energy industry to the table, and we are proud to support their vision.” — Matt Davis, founder and co-CEO of Renew Capital&nbsp;

Discover why Renew Capital invested in Roam to electrify Africa’s transport sector with affordable, eco-friendly buses and motorcycles.

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Why We Invested in Roam: Investing in Roam to Electrify Africa's Transport Sector

<h1>Renew Capital's 2023-2024 Impact Report</h1>With more than 25 investments and a presence spanning 14 dynamic countries, we have front-row seats to Africa's enterprising spirit and it is beginning to shine brighter than ever on the global stage.Take a look at our <a href="https://latest-api.renewcapital.com/uploads/FINAL_Renew_Capital_23_24_Impact_Report_70bcd837f3.pdf" target="_blank" rel="noopener noreferrer">2023-2024 Impact Report</a> &nbsp;for an overview of our investments and the promising trajectory ahead.<figure class="image"><a href="https://latest-api.renewcapital.com/uploads/FINAL_Renew_Capital_23_24_Impact_Report_70bcd837f3.pdf" target="_blank" rel="noopener noreferrer"><img src="/uploads/Renew_Capital_23_24_Impact_Report_r6_FINAL_pages_01_af47000b1c.png"></a></figure>

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Renew Capital's 2023-2024 Impact Report

Renew Capital has a presence in 14 African countries. We aim to provide insight into Africa's startup scene, along with the opportunities and challenges it presents through a series of blogs from our in-country team. If you share our passion for developing entrepreneurship in Africa, we invite you to check out our&nbsp;<a href="https://www.renewcapital.com/careers">open roles</a>.&nbsp;<h1>Nicholas Clerk on Supporting Entrepreneurs and Ghana's Unique Culture</h1>Q&amp;A with Renew Capital's Investment Ecosystem Development Manager in GhanaRenew Capital has made a significant leap into Ghana's burgeoning tech sector with its first investment&nbsp;<a href="https://www.renewcapital.com/newsroom/affinity-ghanas-trailblazing-digital-bank-continues-to-expand">Affinity</a>, highlighting its dynamic entrepreneurial landscape. During a recent trip to Ghana, our founder and co-CEO, Laura Davis, explored Accra’s tech scene and shared valuable insights into its&nbsp;<a href="https://www.renewcapital.com/newsroom/ghanas-entrepreneurial-pulse-my-perspective">unique vibrancy</a>.&nbsp;In this Q&amp;A, we feature Nicholas Clerk, Renew Capital's Investment Ecosystem Development Manager in Ghana, to discuss his efforts in nurturing entrepreneurs and spearheading investment and development within Ghana's thriving tech ecosystem.<figure class="image"><img src="/uploads/GIS_2024_dealroom_31e5966a35.jpg" alt="Photo of a Q&amp;A session with Renew Capital's Investment Ecosystem Development Manager in Ghana, discussing insights on investment opportunities and ecosystem development."></figure>Can you briefly explain your background in Ghana's innovation and startup ecosystem? Where did it all start?My adventure in the innovation and startup ecosystem in Ghana kicked off almost a decade ago during my undergrad years. Picture me as a student, knee-deep in coursework, trying to complete my final thesis, when I got my first freelance part-time job with a multinational tech startup looking to expand to West Africa. My job at the time was to analyze the market dynamics in each country and to inform the company’s regional expansion strategy. That sense of drive and responsibility to inform real-world decision-making! I loved it! Little did I know, this would be the spark that ignited my passion for startups.&nbsp;Since then, I’ve gone on to acquire an MBA in finance and worn many hats—finance, accounting, data analysis, project management and management consulting—across some incredible companies. Each role has been a thrilling chapter in my ongoing story, and I couldn’t be more grateful for the ride so far!Ghana is well known for its vibrant people and culture, full of celebration and color, etc. So, what’s the best thing about Ghana for you?For me, the best thing about Ghana is our incredible sense of hospitality and community. Ghanaians are always warm and excited to welcome anybody with a smile! Ghana is a truly unique and special place. From our diverse and yet unusually spicy food, bustling markets, unique music and dance (even though I can’t dance to save my life), serene countryside and stunning fauna and flora. There truly is no place like home.Can you give us a brief background about your role at Renew Capital? What has been the most exciting part for you?At Renew Capital, my role involves a diverse range of tasks aimed at establishing our presence in Ghana's dynamic ecosystem. From engaging with key stakeholders to sourcing investment opportunities and managing projects, every day brings something new and exciting. However, if I had to pick the most thrilling aspect, it would be engaging directly with founders and entrepreneurs. There's something incredibly rewarding about collaborating with them, witnessing their passion and vision, and supporting their journey to create positive change in their communities.&nbsp;What do you see as the biggest opportunities and challenges for startups in Ghana's current landscape?&nbsp;In Ghana, the startup landscape is buzzing with potential. Our young, dynamic population is eager for innovative solutions to pressing problems. The rise of the digital economy offers fertile ground for businesses to flourish.&nbsp;However, access to funding remains a significant challenge. I've witnessed firsthand how promising ventures need help to secure the necessary capital to fuel their growth. Despite innovative ideas, many startups face hurdles first in finding investment opportunities and then being investor-ready in an ecosystem that is fairly nascent in its development.Despite these obstacles, I've also seen the drive and determination of Ghanaian entrepreneurs to succeed. With the development of the Ghanaian ecosystem, fueled by sustainable support from the private sector, I believe Ghanaian startups are poised to transform the continent as a whole and solidify its position as the gateway to Africa!