Nigerian Legislators Probe into Polluted Fuel with Aliko Dangote, Africa’s Richest Man
The origin of the dispute between Nigerian authorities and Dangote, whose companies dominate various markets, remains unclear On Monday, Nigerian…
Africa News
Read More
Africa AI Council Established to Strengthen Continent’s Global AI Presence -ABN
Smart Africa, a coalition representing 40 African countries and over a billion people, has launched the Africa Artificial Intelligence (AI)…
Top 10 Takeaways from Africa’s 2025 Economic Outlook and Their Impact on Your Business
Africa’s 2025 economic outlook reveals a mix of challenges and opportunities for entrepreneurs, investors, and policymakers. From rising digital adoption…
Dangote’s Move to Be Sole ‘Importer’ of Doesn’t Prevent others to do same – Adesina
The president of the African Development Bank Group (AfDB), Akinwumi Adesina, has said the push by the president of Dangote…
Rising Tensions May Drive Up Borrowing Costs for Congo and Rwanda – ABN
S&P Global Ratings has warned that the escalating conflict between Rwanda and the Democratic Republic of Congo (DRC) may harm…
Erdoğan Reaffirms Türkiye’s Long-Term Economic and Strategic Commitment to Africa
President Recep Tayyip Erdoğan has reaffirmed Türkiye’s dedication to deepening its economic and strategic partnership with Africa, closing the 2025…
African Startup Funding Hits 240% in January 2025, Reaching $289 Million – ASJ
African startups, launched 2025 with remarkable momentum, as funding in the ecosystem surged by 240% year-on-year to reach $289 million in January, representing a significant jump from $85 million recorded in January 2024.
Despite the comparatively lower figures in 2024, that month still ranked as the second-best January for startup funding since 2019, only surpassed by January 2022 during the investment boom, according to Africa: The Big Deal, a leading funding tracker.
The report cited that equity financing dominated the funding landscape, accounting for over 90% of the total capital raised, equating to $262 million. This figure marks the second-highest amount raised through equity financing in any January over the past six years.
Furthermore, the four largest funding deals in January 2025 originated from Nigeria, Kenya, Egypt, and South Africa which collectively secured roughly 60% of the continent’s total capital for the month.
Some notable startups included;
PowerGen, an energy-focused startup, which raised over $50 million to develop a scalable platform for distributed renewable energy solutions across Africa.
LemFi, a fintech company, secured $53 million to fuel its expansion into Asia and Europe.
Naked, an insurtech firm, raised $38 million in a Series B round to enhance automation and broaden its product offerings.
Enko Education attracted $24 million to expand its network of schools throughout Africa.
The recent boost in funding shows more African startups are expanding beyond the continent. To spread the benefits, other African countries need better systems to support and retain successful businesses. The strong start in January 2025 is a good sign, especially after the tough investment climate in 2023 and 2024. Last year, African startups raised just $1.5 billion in equity, making up less than 1% of global funding.
Funke Akindele’s ‘Everybody Loves Jenifa’ Hits ₦1bn in 19 Days
Nollywood actress and producer Funke Akindele’s latest hit, “Everybody Loves Jenifa,” has taken the West African box office by storm,…
Africa Leaders Approves Financial Stability Fund to Tackle Debt Crises Before They Hit
African leaders have taken a major step toward securing the continent’s financial future with the approval of a new financial stability fund designed to prevent debt crises before they spiral out of control.
The African Development Bank (AfDB), which will host the fund, called the African Financial Stability Mechanism (AFSM), announced that it will have its own credit rating, allowing it to raise money from international capital markets. This means African nations struggling with mounting debt repayments may soon have a much-needed financial cushion.
The idea for the fund was first proposed in February 2022, when African leaders called on the AfDB to lay the groundwork for its creation. Following an African Union summit in Ethiopia over the weekend, the AfDB confirmed it is now pushing ahead with finalizing agreements and securing ratifications from member states.
Why This Matters
Many African economies are under serious financial pressure, juggling external commercial debt repayments, sluggish revenue growth, rising government spending, and even the growing impacts of climate change. Yet, unlike Europe and Asia, Africa has never had its own regional financial safety net—until now.
“If implemented as designed, the AFSM can save African sovereigns approximately $20 billion in debt servicing costs by 2035,” said Kevin Urama, AfDB vice president and chief economist, in an interview with Reuters.
How Will It Work?
Membership in the fund will be voluntary, open to any African Union member state that wants to participate. Interestingly, the AfDB has also made provisions for up to 20% of the fund’s membership to come from non-African countries, as long as African nations maintain majority control.
The new fund could be a game-changer for countries like Kenya and Gabon, which have faced investor concerns over their ability to repay international Eurobonds. These concerns led to a sharp depreciation of Kenya’s currency in 2023 and a Fitch rating downgrade for Gabon just last week.
The AFSM will not function as a bailout fund, but rather as a safeguard to help countries avoid debt crises before they escalate.
“The core of AFSM’s mandate is not to support the provision of bailouts to African states but to prevent them,” said AfDB.
Source: Reuters
