Ronnie Washington

The Finance Bill 2024 is a DISASTER for our tech ecosystem. From crippling digital asset taxes to punitive measures on startups, this bill is nothing short of an attack on Kenya's digital future. I've just published a detailed breakdown of how this bill will strangle innovation, kill startups, and set our tech scene back by years. If you're in tech, this affects YOU. Read, share, and let's fight back. We can't let bureaucrats who don't understand technology destroy what we've built. It's time to stand up for Kenyan innovation. Read the full blog post here and join the resistance! 👉🏾 https://lnkd.in/dRHnMB4N #RejectFinanceBill2024

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I'm thrilled to highlight the incredible contributions of my good friend,Kola A. to the entrepreneurial ecosystem. Kola, through his fund Ventures Platform Fund has been a pivotal figure in the evolution of the VC landscape in Nigeria, being at the forefront since the early days. Like me, Kola relocated from America to Africa around 14 years ago. Witnessing his journey and the impact he's made since then has been nothing short of inspiring. In 2010, (which was the same year that I founded Venture Garden Group) both of us took a leap of faith into what was then a nascent ecosystem, and the strides we've made since are a testament to what's possible with dedication and resilience. He started first by building companies from scratch, with his Emerging Platform company, like we did. I still believe that Africa entreprneurs need VCs with that type of experience. Before he moved on to setup the fund, Ventures Platform Fund . The way, we also moved on to setup Greenhouse Capital following the brutal journey of building Venture Garden Group - our Venture Studio/ Venture Holding company. From building companies from scratch and scaling operations in some of the world’s most challenging markets, to raising capital in fluctuating economic climates and supporting other founders…and then on to creating an institutional Fund, Kola’s journey deserves to be shared. This story must be told. So that other entrepreneurs, investors, corporates from all over the world, that want to do business in Africa- can learn from our successes, failures, and everything in between. Maybe it even evolves into various forms of documenting this experience: like a podcast, a book, or even a movie. Who knows? Congratulations, Kola! I’m so proud to see all that you have achieved and the paths you are paving for future entrepreneurs, emerging venture capitalists, and business leaders!

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Eye opener: Open Letter from #Kenya Tech workers (#AIDataLabellers) of US AI companies to US President - Joe Biden The Kenyan tech workers' main complaint is that US Big Tech firms like Facebook ScaleAI and OpenAI are exploiting and abusing African workers through local outsourcing companies. They allege violations of labour laws, undermining Kenya's justice system, and subjecting them to modern-day slavery conditions. Their key demands to President Biden are: 1. Engage them in any US-Kenya trade negotiations and publish draft texts. 2. Ensure trade agreements prevent union-busting, require #ILO compliance, and have enforcement mechanisms. 3. Hold US tech companies accountable in US courts for rights violations abroad. 4. Respect Kenya's #sovereignty in trade partnership negotiations. They highlight low wages under $2/hour, lack of #mentalhealth support despite disturbing content exposure, union-busting, ignoring court orders, and abrupt terminations without notice or pay. The workers seek dignity, fair conditions, and the ability to have good tech jobs without sacrificing wellbeing for Big Tech profits. #ContentModeration #AIModeration #MentalHealth #FairTrade

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Four and a half years ago, I collaborated with Tayo Akinyemi and Osarumen Osamuyi to publish one of the most comprehensive research reports on the state of African VC: Chasing Outliers, Why Context Matters for Early-Stage Investing in Africa. We interviewed 100 GPs, LPs, and entrepreneurs in the African VC ecosystem and published the report in Jan 2020, arguably the peak of the frothy VC bubble worldwide. I re-read the report again recently, and what we concluded then seems even more true today. As is becoming increasingly clear, VC has a number of underlying assumptions baked in that hasn't always been well-understood. I describe VC as a racecar. It takes you from point A to point B really fast, but it assumes that: (1) you have smooth road; (2) you have a pit crew; (3) you have race organizers who've set and will reinforce mutually-agreed-upon rules; (4) you're wearing a helmet and you've been training for the G-forces on those turns ;). But what if there isn't even a road yet -- let alone a smooth one? Why are we spending so much time talking about high-performance tires? VC is really a very specific financial instrument for a very specific set of circumstances, and all too often, is too broadly applied beyond its designed use. I'm not hating on VC - I'm actually someone who launched an African VC fund last year as I believe African fintech, post-froth post-flavor-of-the-month, is one sector that is well suited for VC. I'm just saying don't put a racecar in an off-road safari race... or a Nairobi rush-hour race. And on some occasions, the VC opportunity is to build the road. Still true today: Build out the right team working on the right strategy - and then utilize the right funding structure to align with it. Product-market fit is critical, but so is strategy-funding fit. We at Verdant Frontiers have raised and deployed $100M+ of project financing, bank debt, mezzanine debt, holding company permanent capital, and venture capital into Africa. Each instrument serves its designed purpose. I'd venture to say the report is just as relevant today as it was in 2020 - read the executive summary of the report in the link below.

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This Ethiopian investor founded a $120 million fund at 27 in the 90s. Led the $3.4 billion sale of Celtel to Zain Group in 2005. And manages money for Sudanese billionaire,Mo Ibrahim. Meet Tsega Gebreyes The Trail Blazer. Tsega paved the way for African investors. Breaking the bias before it was the norm. Born in Ethiopia. She grew up in an entrepreneurial family. During the Mengistu era. But due to changes in politics . 13-year-old Tsega and family fled to Switzerland. Leaving Ethiopia  on 2 days notice. They moved to the U.S. soon after.  Where Tsega began making her mark. Tsega wanted to build and finance businesses. So, when she joined Rhodes College. As a newly arrived immigrant. She had to work 10X as hard. Because access was an issue. She wanted to get a job in a big bank. But had no one to call to get an interview. So, she made a plan. With 3 other students. They started a student-managed fund. Convincing the college board. To invest their endowment in the fund. She soon had the attention of the board. Joined the board as the first student representative. And started organizing events for the school. Using the school’s network to invite leading CEOs as panelists. When the time came for her to apply for jobs. She had CEOs making calls on her behalf. Because of the networks she’d built. She landed a job at Citi After her thesis came to the attention of the CEO. At Citi, she worked as an associate. Starting in the special projects arm. Then corporate finance and restructuring. Before moving on to the Capital markets. Where she structured investments for a $1 billion fund. She left Citi in 1994. To do an M.B.A. at Harvard Business School.  In her quest to find something with more impact. In her 2nd year at H.B.S. Tsega hit the road. Raising money for her African-focused Private Equity fund. She went back to Citi. Convinced them to be an anchor investor.  Eventually raising a $120 million fund. In 1996, The New Africa Opportunity Fund made its 1st investment. Investing in Celtel International B.V.. A mobile telecommunications company started by Mo Ibrahim. She joined the Celtel board. As the only woman on the board. And the youngest by a mile. 5 years later, Tsega left the fund to join Celtel. Working on its Pan-African expansion. Leading $1.6 billion in acquisitions. And the $3.4 billion sale of Celtel to Zain Group in 2005. She left Celtel in 2007 to start Satya Capital. And today Satya is an investment titan.  With  📈 Portfolio of  20+ companies across 25+ African countries 💰Investments of over $800 million in African businesses 👑 Billionaires like  Mo Ibrahim as investors Satya has invested in TRACE, Guaranty Trust, Cellulant, Wilderness and more Tsega sits on the board of LSEG (London Stock Exchange Group), Mastercard Foundation, airtel Africa. What are your thoughts on Tsega’s story? Let me know in the comments. 👇 Join my newsletter for more stories on business, markets and investing. 

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The news of Copia shutting down after raising over $100M in VC funds has sent shockwaves through the African tech community. Despite this, I haven't given up on the Copia model, particularly the rural B2C last-mile retail logistics. Here’s why I believe Copia failed: 1. Slow Rural Economic Growth and Low Household Expenditure : The rural economy grows slowly, and average household expenditure is low, leading to thin margins and poor unit economics. 2. Poor Road Networks : Deliveries are slower and fleet maintenance costs are high due to poor road conditions, resulting in heavy logistics expenses. 3. Wide Drop-off Zones: Rural homes are spread out, with an average gap of up to 2 km in Kenya, as compared to urban areas. This increases the cost per drop-off. 4. Low Internet Penetration and Literacy Rates: This necessitates hiring sales agents to place orders on behalf of last-mile customers, adding another cost layer and complicating customer onboarding and retention. 5. Credit Dependency: Rural customers heavily rely on credit, as they are often employed in farms or run small businesses with low cash flow. Offering credit to a large customer base increases the risk of defaults, making the business model even more challenging. Overall, I believe there is a significant opportunity in rural retail and last-mile deliveries. However, for the model to work and be sustainable, all these factors must come together effectively. Thoughts? #Africa #Tech #Logistics

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I’ve seen several, like Victor Asemota, Ola Brown, MFR, and Maya Horgan Famodu, mention that FemTech is a huge opportunity. But we wanted details: how big and where/how do VCs make money? In our latest, Onabikoa and I examined Venture Backable FemTech Models in Africa. Our analysis uncovered a $136bn industry with whitespace in oncology and geographic whitespace in several markets. We analyzed verticals and companies building for: -Menstrual health -Contraception -Gyn and pelvic testing -Oncology -Maternal health And discovered a few guiding principles to create solutions that drive venture-scale returns. Here’s a preview of what we learned: 👩🏾‍🦰 Menstrual Health (⚠️ potentially venture-scale) At $4bn, 99% of Africa’s menstrual hygiene sales occur offline. All companies in this space are e-comm (B2B & B2C). Since most sales are offline, B2B models work best. A 50x return is only plausible if one invests VERY early and requires a company to either: 1. Unlock offline distribution 2. Participate in manufacturing Or diversify across verticals, which most companies do (image 1). 🥼 Contraception (❌ not venture-scale) Here, we looked at male condoms, emergency contraceptives, and contraceptive apps. The market for condoms, at $330m, is eroded by the availability of free and socially marketed condoms (image 2). The market for ECs ($10m) and contraceptive apps ($22m) were both too small. Therefore, most FemTechs with contraceptive components have diversified offerings (3). 🧪 Gyn and pelvic testing (⚠️ potentially venture-scale) At $1bn just for women, most FemTechs also serve men and provide testing services beyond STIs. Moreover, most play in several verticals (4). 💊 Oncology (✅ venture-scale) At potentially $52bn just for women, the market for oncology in Africa is huge and expands to $90bn including men. However, this market is grossly underserved with limited access to diagnosis and treatment; revenue in Africa sits at less than $6bn today (5). We’d love to see more founders take this space on (6)! 🤰🏾 Maternal health (✅ venture-scale) At $41bn, this industry has the largest concentration of founders (7). 🤞🏾 Putting it all together Above we detailed where founders are active and highlighted oncology as a whitespace. More gaps exist (8). The most diversified companies receive the most financing, e.g.: - Kasha Global, Inc. - Susu Or they’re not only serving a female population: - Healthtracka Taking it a step further, we looked at geographic needs to build (9). The good news is FemTech is gaining traction (10). We wrote this piece to help you think critically about how to exploit this opportunity. Finally, we’d like to give a special shoutout to David Saunders, Mariam Adeoti, and the team at Briter for providing us access to their data. We'd love your feedback. Feel free to read the whole piece below: https://lnkd.in/d6YJZUrW

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Full article on M-PESA ecosystem and approach to alliances v competition....

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As we adjust fully into the 2nd quarter of 2024, I’m energized by the impactful steps we’ve taken in Q1 and excited to carry on with that momentum within my role at BellaNaija and in my personal projects. My commitment as always is increasing the quality of our efforts  and making effective and strategic decisions to amplify the impact and reach of BellaNaija across our diverse platforms and projects. On the personal front, as with every year, Q1 is a time for me to redouble my efforts in advocating for greater female empowerment and focus on driving digital innovation through strategic partnerships on our projects and campaigns. Key Wins: - 400 Million Views: We smashed our estimated goal with over 400 million views on our original content across BN platforms in just 3 months! - We proudly partnered with TikTok for the 2024 #AfricanInnovators campaign, perfectly aligning with our goals to celebrate exceptional African talent, creativity, and achievements. - We ventured into new territory with diverse content like #NaijaXplorers, while amplifying existing series like "BN Meet The Star," "Doing Life With," etc. These editorial efforts ensure we amplify important stories and news from across Africa. - Our BNers, BellaStylistas, contributors, and collaborators across all platforms (Instagram, Twitter, TikTok, Facebook, and websites) keep us motivated to deliver engaging and interactive content. Key Projects: One of our most inspiring Q1 projects is the BellaNaija Style Women's Month, which recently concluded. As the initiator and focal lead for this impactful month-long digital festival, I'm incredibly proud of the impact we made this year. We touched lives and celebrated women in a truly remarkable way. Partnership & Reach: This year, we partnered with the global personal care brand #NIVEA, marking the 5th year of #BNSWomensMonth with even greater reach. Between January and March, we've worked with an impressive range of partners on a lot successful campaigns, projects and events. We're incredibly grateful for all our partners and sponsors, and we're open to exploring new partnerships throughout 2024. I'm looking forward to yet another phenomenal quarter. If you have any ideas or partnership opportunities, let's connect! #Q1Roundup #StrategicLeadership #ContentInnovation #MediaStrategy #WomenEmpowerment

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🚨HELP BUILDING ETHIOPIA 🇪🇹 TLDR: I'm bringing three leading Ethiopian companies to Bangalore from May 8-14 for collaboration and p2p knowledge sharing in fintech and e-commerce. Seeking connections from leaderships of Companies interested in the African market to maximize this opportunity. If you’re a management or if you know someone from these or similar company: Zerodha, Flipkart, Myntra, Groww, Razorpay, Jupiter, Consumer Startups. Help then connect, Thanks! LONG FORM: I am closely working with sequa gGmbH in Ethiopia 🇪🇹 for helping build SMEs in this country! This country is quite similar to India in terms of market, due to it’s past political instability the country has not been able to grow to it’s Potential. The companies here, don’t have valuation because companies never raised or been able to raise, moreover there’s a company that handles 5 Million+ users in fintech market in Africa (26 apps & 36 employees) So, Ethiopia is right now at a stable position and is a part of BRICS. We are building blockchain infrastructure for this country & there is 1000x growth. I’m bringing 3 Ethiopian Companies to India: 1. EagleLion System Technology (Fintech) 2. Afra Import and Export PLC - Buy2Go (E-commerce) 3. Ashewa Technology solution s.c (Solutions & Fintech ) These are some biggest Companies on their specific field in Africa. We’re coming to Bangalore, India on 8th May, will be staying till 14th May. We want to have as many meetings, Knowledge sharing, potential collaboration in Africa. Looking for P2P meetings that can help in building Ethiopia & get insights on how to penetrate into the African Market, build Consumer Applications here. 👉 Please Comment below if you know someone for helping these companies get the most out of this collaboration, thankyou! This is entirely hosted by German NGO, where sequa gGmbH with joint collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH helping build SMEs in Ethiopia

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✨ Today In Tech #048 - June 26th 2024✨ 💡Topics💡 1️⃣ Politics => Kenya Faces Major Internet Disruption Amid Protests Against New Tax Bill, NetBlocks Reports 2️⃣ Company => Waymo Opens San Francisco Robotaxi Service to All Customers, Eliminates Waitlist 1️⃣ Politics => Kenya Faces Major Internet Disruption Amid Protests Against New Tax Bill, NetBlocks Reports 🛈 Source : https://lnkd.in/ghc6jwjz London-based internet rights monitoring group NetBlocks has reported a major internet disruption in Kenya following a wave of demonstrations against a government bill to hike taxes. The outage comes as the country's ICT regulator, the Communications Authority, stated that it had no plans to shut down or interfere with the internet today. Users have reported interrupted or slow internet connections, and the outage has affected neighboring countries Uganda and Burundi. NetBlocks confirmed that the ongoing internet disruption has impacted Kenya as well as neighboring countries including Uganda and Burundi, likely limiting coverage of events on the ground where protests are held. Protestors have been using platforms such as X (Twitter) and TikTok to publicize their concerns over the high cost of living, taxation, unwarranted debt accumulation, and the rampant misuse of public resources by the political class. The protestors stormed parliament moments after lawmakers voted to adopt the bill, resulting in several fatalities and scores of people with injuries. The internet started to fall over, and Safaricom claimed that the interruption is due to problems with the subsea cable. However, others are reporting that Airtel is working, which would not be the case if the cable was down. NetBlocks Director of Research Isik Mater suggested that the outage might be due to "unscheduled maintenance." The observed impact and timings indicate that the outage affects multiple countries, but this outage has much higher impact to Kenya than past confirmed major subsea cable cuts. The other affected countries are downstream to Kenya, so likely affected by the situation in Kenya rather than the other way around.

Currently considering an innovation hub in The Hague, Netherlands 🇳🇱, for entrepreneurs in the African diaspora - and anyone building innovative solutions to Africa’s biggest challenges. Any ideas who i should speak to about this? The hub would embrace a hybrid model (physical space and digital platforms) to serve entrepreneurs anywhere in the world, including within Africa. Note: This does not affect ongoing discussions for local hubs in various African cities. Terrible idea or worth pursuing further? We can build this together, the same way we built Norrsken East Africa from scratch. Your thoughts are needed 💡💡💡 Gert van Veldhuisen David van Dijk #diaspora #entrepreneurship #africa #agenda2063 Africa Cities Fund

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So we started Cohort 3 of the Immerse Africa VC Fellowship by Immerse Africa VC Academy last weekend. It was a diverse class with people from different backgrounds. This cohort has a fine blend of startup CFOs who want to know how to navigate the VC landscape for the benefit of their company and VC Professionals who just want to get better at their job. As always, we started this cohort with the VC Business Model. Understanding how VCs think about deals and then we built our VC Fund Return Model and the Management Company Model. As always, we saw that VCs are looking for outsized returns. 3x returns are good, but what you're looking for is 30x or 50x. So the challenge for our VC professionals is that how do they identify the 30x return startups and more importantly founders or founding teams? The question for our startup CFOs - Is your startup the 30x return startup? On Sunday, we went in full time on the the language of finance - Accounting. This is as we prepare to start building our startup financial models from next weekend. Excited about this cohort... already. If you still want to join this cohort, this might be your time before the next class.

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Transform Your Finances, Together. To go fast, go alone. To go far, go together. Founded on the principles of collective savings and community growth, StokFella began as an ambitious idea and has grown into a revolutionary platform. We stand at the intersection of technology, finance, and community-based economics, committed to transforming how South Africans save and build wealth collectively. Ever felt alone on your financial journey? It's time to change that. Join StokFella and experience the incredible impact of collective savings. No more financial isolation—your community is here for you. #CollectiveCapital #AccelerateAndConnect #SharedOwnership

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DR. JAMES MWANGI,THE BUSINESS MAGNET... I won't pretend to have known Equity Group's CEOs better,but he is well known figure in Kenya,Africa and the globe. Dr. Mwangi's DNA is in Equity Group. He branded the institution as the Movement or the Cause. Founded in in 1984 as Equity Buliding Society (EBS) with the aim of providing morgage loans to rural farmers in Mt. Kenya region,Equity has evolved to a financial power house...thanks to Dr. Mwangi. He joined Equity in 1994 when it was on the brink of collapsing and Central Bank of Kenya (CBK) had ruled out its possibility of reviving. In 1993,the bank was KES 33m in losses,coupled with 54% Non-Performing Loans (NPLs). I dob't think any financial institution can survive with such performance even Hustler fund hasn't reached that level. The institution was breathing its last. It was dead. Nobody wanted anything to do with the village bank. But CBK still saw the impact the institution had to its customers. And with Dr. Mwangi's involvement there were some 'hopes' for its revival. Today, Equity Group boast of 21m customers. It's now a global brand. Its balance sheet is now in excess of US $13 billion ( KES 1.54 trillion) in assets. Equity group generated KES 181.7 billion in revenue (2023) being 25% growth from KES 145.9 billion in 2022. The group's profit after tax as at 31st December,2023 was KES 43.7 billion. It is the most profitable bank in Kenya. It's also the second largest bank in the region after KCB Bank Group (KES 1.8 trillion in assets). But KCB Bank is over 100years old. Equity Group has now diversified its services. It is in the insurance sector,technology, health et cetera. Wow! What a transformation! Equity is the largest bank in Africa in terms of customer base (21m). So what makes Equity that power house? In the research done by Pan African University in April 2009,some of the reasons that made Equity Group evolve faster are: customers loyalty, team work,humility,professionalism and the branding of the bank. Dr. Mwangi values autonomy. He is ready to be challenged based on facts. In 2013 while I was a student at Kenyatta University,I went to pay my university fees at Githurai 45. One of the feared informal sectors in Nairobi/Kiambu. And to my surprise,even street children were queuing to go deposit money into their accounts. Well,I'm sure even up todate other local banks don't have street urchins as part of their customers. That is Equity Group and hence the numbers. Equity Group's business model is high volume,low margin. This allows any customer to open bank accounts without necessarily having to deposit funds instantly. Equity champions financial inclusion for all. Equity Banking group has very few branches in high end premises. It's mostly in the unwanted spaces where the poor resides and work. Can Kenya produce another Equity?Are we the young entrepreneurs ready for the challenge? Nothing is impossible as shown by Dr. James Mwangi. #banking #finance #growth

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#Ethiopia! The Mastercard Foundation and Kifiya Financial Technology PLC have launched the $100 million SAFEE Program to revolutionize access to finance for #MSMEs. With a focus on uncollateralized digital lending, this initiative aims to unlock the potential of thousands of entrepreneurs and drive economic growth. The program called Sustainable Access to Finance to Enable Entrepreneurship (SAFEE), is a $100 million initiative, that aims to make uncollateralized digital lending the new normal for micro, small, and medium enterprises (MSMEs) in Ethiopia. The program, running for five years, will develop and launch digital financial products, provide technical assistance for financial institutions, and support system-level changes to enable uncollateralized digital credit for #MSMEs. It is expected to unlock $300 million from six banks, with a target to reach around 477,800 MSMEs. Additionally, the program will provide an opportunity for 425,000 women to own smartphones through device financing. SAFEE aims to create job opportunities for 2.18 million young people, 80 percent of whom are women, and enable 3.65 million young people to access credit. #SAFEEProgram #FinancialInclusion #EthiopiaDevelopment #digitallending #digitaltransformation #Digitalethiopia https://lnkd.in/eGRJXq_W

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