Economy
How to Raise Funds for Your Startup Despite Coronavirus
By Damilola Faustino
With the coronavirus pandemic, you would think venture capitalists and angel investors would stop scouting for African startups to invest. This is wrong.
In the past few months, African startups in different sectors have raised significant dollars and more are still coming as the coronavirus lockdown is gradually being eased across Africa.
African startups that recently raised funds
1.) Tomato Jos: Tomato Jos, an agro-processing company focused on the local production of high-quality tomato paste for the African market announced that it had completed a €3.9 million ($4.2 million) Series A round.
2.) BusyMed, a South African healthtech startup raised undisclosed funding from LionPride, a Venture Capital Investor. The investment was facilitated by HAVAIC.
3.) 54gene, a Nigerian genomic startup, raised a $15 million investment led by Adjuvant Capital to allow the company to scale operations in support of generating novel insights from human genetics research.
4.) uLesson, a Nigerian-based education technology startup, has announced participation in its seed funding round by Founder Collective, a marquee seed-stage venture capital fund.
5.) Brimore, an Egyptian direct end-to-end distribution Startup has closed $3.5 million pre-Series A round led by Algebra Ventures.
6.) Finnfund invested $1 million in Kasha, a Rwandan-based e-commerce platform improving women’s access to genuine health, hygiene, and self-care products in East Africa.
7.) East Africa Fruits Co., a Tanzanian company addressing food distribution challenges to improve efficiencies in the farm-to-market sector, announced that it closed Series A equity funding totalling $3.1 million.
8.) Flutterwave, an African fintech startup raised a $35 million Series B funding round co-led by Grey Croft & eVentures. The round was joined by CRE Ventures, FIS, Visa, Green Visor, and Endeavor.
As a founder, you too can raise funds…here is how
There is no doubt that it is difficult to raise funds during this coronavirus pandemic. So far, in the WeeTracker Q1 funding report, 86 deals were announced. They estimate that total funding from these disclosed deals totalled $245.13 million.
Regardless this should not deter you. In fact, it should be a morale booster because even Venture Capitalists are setting up venture funds and raising huge sums to support African startups.
Novastar announced that it closed its Novastar Ventures Africa Fund II at $108 million to support startups in both East and West Africa.
Harambe Entrepreneur got $1 million from Cisco Systems Inc. and a foundation of South African businessman Jonathan Oppenheimer to support African technology startups and help kick-start the return of venture capital to the continent following the coronavirus outbreak.
Raising funds:
1.) Find tech ways to run your business and do not stop innovating
The new normal is working from home. The question you should ask yourself is how do I run my business despite the coronavirus? The simple answer is technology. Deploy an affordable tech strategy to make your customers know you are still existing.
2.) Apply for funding and join accelerators
There are unlimited funding opportunities out there for African startups. You have to apply for these them. Also, apply to join accelerators.
3.) Disclose your funding needs to your network
If you need funding, reach out to friends and network. They may connect you to an investor especially if you have a solid pitch and scalable product to back up your funding claims.
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
