Good morning.

The UNDP and eight African countries last week unveiled Timbuktoo, a $1bn plan for startups in Africa. The timing couldn’t be better, given a persistent venture funding crunch that’s rocked the global startup industry.

In today’s newsletter:

• NGX hits new high as Bitcoin dips

• Microsoft’s new $1.5bn Africa deal

• Daba makes first Visa accelerator

• Latest on the African Nations’ Cup

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This week, we kick off with an exciting announcement from us! 🎉

Daba has been selected among 21 cutting-edge startups to participate in the inaugural cohort of the Visa Inclusive Fintech Accelerator. 

This is an immense milestone for our company as we continue on our mission to provide unified investment opportunities across Africa. 

But what is the Visa accelerator about? What does it mean for us and, most importantly, our users?

We answer these and other questions you might have for us in this blog. Check it out now!

Here are last week’s top stories

Bitcoin hangover

NGX records another historic week as Bitcoin ETF euphoria fades

Last week marked one of the highest-ever weekly gains for the NGX, with an impressive 13.8% appreciation, contributing to the exchange's year-to-date returns of 26.4%. By contrast, the BRVM continued its seasonal trend for January, maintaining a downward trajectory.

Bitcoin (BTC) closed the week in the red and has since fallen below $40,000 for the first time since December. This comes as selling overwhelms buying despite sizable inflows into the new spot exchange-traded funds that began trading on January 11, which temporarily sent the toke to near $50,000.

Oil prices are on the rise on concerns over global energy supplies and geopolitical tensions while gold remains depressed amid expectations that the US Fed will keep rates higher for longer.

Next generation

Telecom Egypt secures the country’s first 5G license for $150m

Egypt’s telecoms regulator (NTRA) last week awarded Telecom Egypt the country's first 5G license for mobile phones for $150 million, valid for 15 years.

Upon deployment, the North African nation would be joining an exclusive group of African countries where commercial 5G services have been launched.

These include Botswana, South Africa, Nigeria, Kenya, and Zambia while testing/pilot is ongoing in more than 10 others. Although affordability of compatible devices remains a concern.

AI push

Vodafone, Microsoft sign $1.5bn deal to boost AI, cloud in Africa

British multinational telco Vodafone has inked a deal with US giant Microsoft to invest up to $1.5bn over ten years towards boosting AI and cloud computing adoption in Africa.

As part of the agreement, Microsoft will leverage Vodafone's fixed and mobile connectivity services, currently present in eight African countries: DRC, Egypt, Ethiopia, Kenya, Lesotho, Mozambique, South Africa, and Tanzania.

The deal is the latest in a string of Big Tech partnerships targeting Africa, which is increasingly becoming a focal point for major technology companies seeking new opportunities in untapped markets.

Headline roundup

A summary of the major business, tech, and finance headlines of the past week.

Macro & Markets

• Nigeria’s inflation hits 28.9% amid rising food prices

• Ethiopia opens up to foreign banks before exchange launch

• AfCFTA to expand pan-African payment system to 31 nations

VC Funding & Startups

• Egyptian investment firm Ezdehar backs Yodawy with $10m

• Egyptian fintech Zeal secures $4m to expand in MENA market

• Canza Finance raises $2.3m to scale cross-border payments

Other Deals & Expansion

• Shell to sell its Nigeria onshore business for up to $2.4bn

• General Atlantic buys major investor in African data centers

• Convergence acquires Datacentrix in play for SA IT market

Funds & Accelerators

• IFC invests $50m in two Africa-focused infrastructure funds

• Former Andela, Flutterwave co-founder launches accelerator

• Seedstars Africa Ventures attracts $10.5m more from AfDB

Startup Opportunities

Discover funding and accelerator opportunities to boost your startup's growth.

• BlueInvest Africa 2024 (Jan 26)

• GSMA Innovation Fund (Feb 12)

AFCON Roundup

Which countries have qualified for the Round of 16 knockout stages? The group stage at the 2023 CAF Africa Cup of Nations being held in 2024 is almost over.

Which countries have qualified for the Round of 16 knockout stages? The group stage at the 2023 CAF Africa Cup of Nations being held in 2024 is almost over. 

16 of the 24 men's national football teams competing in Côte d'Ivoire, the host nation, will advance to the knockout stage. 

The top two finishers in each of the six groups, along with the four best third-place teams, will move on to the round of 16. The other eight teams will be eliminated after group play concludes. 

Some squads have already clinched advancement, but which ones?

1. Cape Verde (Group B winner)

2. Senegal (Group C winner)

3. Equatorial Guinea (Group A winner)

4. Nigeria (Group A runner-up)

5. Egypt (Group B runner-up)

6. Cameroon (Group C runner-up)

7. Angola (Group D winner)

8. Burkina Faso (Group D runner-up)

Follow Daba’s coverage of every game on our Instagram & X (Twitter) pages!

Our insight for the week

Get more context into events shaping Africa’s economic landscape.

The rise of climate-tech and cleantech in Africa: One of the standout trends in African tech last year was rising investments in climate-focused startups. 

Over 500 startups have emerged across Africa in the last 15 years, offering innovative solutions in agriculture, clean energy, sustainable materials, e-mobility, and nature-based solutions, per a 2022 report by Briter Bridges.

The rise of these startups is fueled by a surge in investor backing. 

For two consecutive years, climate-tech startups have attracted the most funding in Africa after fintech.

And over the past 12-18 months, several VC firms—among them big names Satgana, Catalyst Fund, Equator, and Nigeria-based EchoVC—have introduced funds to support startups in Africa's climate sector.

Why now and where are the opportunities?

In this edition of Pulse54, we delve into the cleantech sector in Africa, exploring the opportunity and active players—VCs and startups.

Tap the button below to check it out.

That’s it for this week. Next Frontier is sent once weekly. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here.

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Catch you next week!