Starlink’s mixed fortunes in Africa

It’s been a tale of wins and losses for the SpaceX-owned satellite internet service’s pan-African expansion + get free tickets to GITEX Africa.

Author

Anthony Miclet
May 22, 2024

Good day, and welcome to another Daba weekly newsletter!

Starlink, led by Elon Musk, was Nigeria’s third-largest internet service provider by subscriber count as of December—within less than a year of its launch in January 2023.

Its meteoric rise in Nigeria shows disruptive potential. Yet, hurdles persist elsewhere in nations like Zimbabwe, South Africa, and Ghana, highlighting its mixed fortunes and the challenges in expanding across a diverse continent.

In other top stories for the week:

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Exciting news! Daba is offering 50 free visitor passes for GITEX Africa in Marrakesh. 

If you're in Morocco from May 29th to 31st, you can attend this premier tech event at no cost, courtesy of Daba.

To claim your free pass, simply CLICK HERE to fill out a quick form or tap the button below. We'll send your pass a few days before the event. 

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Here are last week’s top stories

Upbeat markets

BRVM main index backtracks amid positive market sentiments

After returning to six-year high levels last week, the BRVM kicked off this week on a low under the weight of ETI's steep 5.88% discount, leading the market into negative territory. Setao, Uniwax, and Total SN were among the best performers, while Sicable, Bernabé, and Filitsac also suffered declines.

Bitcoin (BTC) soared above $71,000 early Tuesday, reaching its highest level since early April, as Ether jumped more than 19% to $3,700. Gold traded tightly above $2,400, consolidating prior losses before the Fed's May meeting minutes release.

Crude oil futures drifted lower but closed in the green Tuesday amid a lack of catalysts and concerns that elevated US inflation could keep interest rates higher for longer, weighing on fuel demand.

Amazon arrival

South African unit launches in play for $3bn e-commerce market

The US e-commerce giant has launched its e-commerce marketplace in South Africa, its first venture into sub-Saharan Africa. 

While expanding its global footprint, Amazon enters a $3bn annual market dominated by local players like Takealot, Makro, and bidorbuy—which have already tapped into the region's unique demands. 

Notably, Amazon's launch excludes its Prime membership program. As the e-commerce battle intensifies, Amazon must navigate stiff competition from entrenched rivals to gain a foothold in this lucrative market.

Climate action

Governments, DFIs, firms pledge $2.2bn to clean cooking in Africa

At a Paris conference, governments, multilateral lenders, and oil and gas companies pledged $2.2bn to promote clean cooking initiatives in Africa, addressing respiratory diseases, carbon emissions, and deforestation caused by traditional cooking methods. 

The African Development Bank, the European Union, and Vitol SA are key contributors. The International Energy Agency estimates that $4bn in annual investments is needed to phase out inefficient wood and charcoal fires and stoves by 2030. 

Separately, energy giants announced a task force led by Equinor, TotalEnergies, and others to promote access to liquefied petroleum gas for cooking in Africa, with plans to present at COP29.

Headline roundup

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

Macro & Markets

VC Funding & Startups

Other Deals & Expansion

Funds & Accelerators

Startup Opportunities

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

Our insight for the week

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

The last frontier for subscription video-on-demand: Africa's unique blend of increasing internet connectivity and smartphone usage, a youthful population, and a burgeoning middle class make it a hotspot for streaming services with immense growth potential. 

Projections indicate that video-on-demand subscribers on the continent will soar to 17 million by 2027, tripling revenues from $623m in 2021 to $2bn.

The continent has already attracted the likes of Netflix, Amazon Prime, and Disney+, all looking to capture new audiences as competition heats up in their home markets.

But the market in Africa is not without competition.

Per recent data from tech-based research firm Omdia, Showmax boasts around 40% market share with a presence across 40 African countries. 

The South Africa-based service capitalizes on the extensive market understanding and content catalog of its parent company MultiChoice.

Then there’s Canal+, which dominates the continent’s French-speaking region.

Wi-flix, one of Africa’s swiftly expanding streaming services currently listed on the Daba platform, recently made its debut in Zambia, its fourth country on the continent following Kenya, Ghana, and Nigeria.

The expansion aligns with the company's vision of becoming the foremost content provider across Africa.

However, Wi-flix's ambitions extend beyond catering solely to the African continent. It also aims to position itself as the premier streaming platform connecting the African diaspora to their roots.

The formula offers a compelling business case - diaspora viewers abroad generally have more disposable income than their counterparts at home, yet crave the authenticity of homegrown entertainment, we write in this edition of the Pulse54 newsletter on the African diaspora.

In addition to the competition, a few challenges also plague the African streaming market—such as access to stable, affordable internet. 

In one of our Pulse54 newsletters, we explore how operators are navigating the cutthroat industry, leveraging a playbook that requires them to customize services for African audiences.

Check it out here or tap the button below.

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