Taking place in Cape Town on Wednesday, November 26, 2025, the competition will see one startup walk away with a $50,000 equity investment and access to a global network of mentors and investors.

The announcement follows two days of rigorous semi-final pitches held on October 28 and 29, where young innovators from eight African countries showcased products bolstering financial technology across the continent. 

Ten startups stood out for their creativity, impact potential, and market readiness.

The finalists include:

1. mystocks.africa (Botswana);
2. Credify Africa Inc (Uganda);
3. Logistify AI (Kenya)
4. Kutana Technologies Ltd (Ghana);
5. Investa Farm (Kenya);
6. Black Swan (Mauritius);
7. Mighty Finance Solution Inc (Zambia);
8. Devdraft AI (Zambia);
9. Kanzu Finance Ltd (Uganda); and
10. Farmsky (Kenya).

According to Ashwin Ravichandran, Portfolio Advisor and MAC lead at MEST Africa, this year’s cohort represents a new phase of African innovation. “Each year, the Challenge grows not only in reach but in the depth of innovation it attracts. We’re seeing founders build financial systems that are inclusive, intelligent, and unmistakably African. The Top 10 exemplify the kind of purposeful innovation driving Africa’s next wave of growth.”

Now in its seventh year, the MEST Africa Challenge focuses on FinTech ventures and startups embedding financial solutions into technology systems. 

The 2025 edition covers eight of Absa’s nine priority markets, which include Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, Uganda, and Zambia, targeting businesses that enhance financial inclusion and digital transformation.

For Absa, the partnership shows its drive to enhance banking through technology. “Our ambition is to reimagine financial services through technology, and the innovations presented by these FinTechs showcase what’s possible,” said Tamu Dutuma, head of Strategy and Transformation for Technology at Absa Regional Operations (ARO). 

“Many of the solutions are directly relevant to our business, with the potential to enhance customer experience, drive efficiency, and accelerate transformation. We’re excited about the opportunity to turn some of these ideas into meaningful partnerships that deliver value at scale.”

MEST Africa’s long-standing focus on entrepreneurship development has impacted the continent’s tech sector since 2008, having trained over 2,000 entrepreneurs and invested in more than 90 startups.

“What stands out in the Top 10 is how digital innovation is being applied to real market challenges,” said Tawanda Chatikobo, head of Digital – ARO RBB. “From AI-driven insights to seamless payments, these solutions demonstrate how technology can unlock access, efficiency, and financial inclusion. Digital solutions are no longer a luxury – they have become an imperative for the financial sector.”

The 2025 MEST Africa Challenge finale will support the organisation’s mission to enable scalable African ventures, helping them transform industries and drive inclusive growth across the continent.

The competition recognises some of the continent’s most innovative startups in financial technology and other high-impact solutions that address Africa’s financial sector.

Now in its seventh edition, the challenge centres on the theme, “You Build, We Scale,” and seeks to empower founders ensuring access to finance across Absa’s eight key markets which include Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, Uganda, and Zambia.

The selected startups are developing solutions that cut across payments, credit access, cross-border trade, agri-fintech, and financial literacy, all aimed at rethinking how money moves and works for Africans.

Ashwin Ravichandran, portfolio advisor at MEST Africa and MAC Lead, described the semi-finalists as visionary entrepreneurs whose ideas merge technology with community-focused problem-solving. 

“Each of these founders represents a unique path toward reimagining how finance works for Africans,” he said. “Their ideas pair technology with empathy, proving that lasting change comes from solving real problems within their own communities. We’re proud to provide a platform that connects them with investors, mentors, and global opportunities.”

Absa’s collaboration with MEST emphasises its focus on driving digital inclusion and innovation across Africa’s financial ecosystem. 

Speaking on the announcement, Tawanda Chatikobo, head of Digital for Absa Regional Operations (ARO), Retail and Business Banking, said: “Congratulations to the top 20 finalists and to all applicants. The quality of submissions has been exceptional, showcasing the depth of innovation and entrepreneurial drive across Africa. These startups are not only solving real challenges; they’re building the foundation for inclusive growth and lasting impact. 

“Our partnership with MEST and our active participation in the MEST Africa Challenge 2025 reflect our commitment to open collaboration within the FinTech ecosystem. At Absa, we see ourselves as partners in this journey, guided by a purpose to make banking simpler, more accessible, and more relevant for our customers.”

The 20 startups, selected from hundreds of applications, include:

Botswana:

• mystock.africa – A retail investing platform offering Africans access to stocks, ETFs, and alternative assets.

Ghana:

• Brydge – Simplifying cross-border trade for African businesses.
• Kutana Technologies Limited – Enabling B2B payments and trade using stablecoins and AI-powered credit scoring.

Kenya:

• Logistify AI – Optimising procurement and supply chains for SMEs and cooperatives.
• Farmsky Ventures – Providing digital lending and crop insurance for smallholder farmers.
• Investa Farm – Offering voucher-backed loans for climate-resilient farm inputs.

Mauritius:

• Black Swan – Building credit scores for Africa’s unbanked using AI and alternative data.

Mozambique:

• Simulador Bancário – A platform for financial planning and loan simulations.

Uganda:

• Paytota – Simplifying fragmented digital payments through a unified payment gateway.
• Xzerra – Facilitating cashless transactions with biometric fingerprint technology.
• Kanzu Finance Limited – Providing digital banking solutions for cooperatives and microfinance institutions.
• Axiom Zorn – Enabling smallholder farmers’ access to finance and markets through data innovation.
• Credify Africa, Inc. – Bridging Africa’s SME finance gap with trade finance and logistics solutions.
• eMaisha Pay – Promoting financial inclusion for agro-traders and small businesses.

Zambia:

• Ebusaka Green Technology Limited – Turning waste to value through digitised recycling incentives.
• KreativBox Technology – Offering salary-backed loans to civil servants.
• Mighty Finance Solution Inc – Providing embedded digital loans for SMEs and women entrepreneurs.
• Devdraft AI – Supporting freelancers with cross-border payments using stablecoin wallets.
• Homer Price Agency Solutions Limited – Operating a digital banking network of over 550 agents nationwide.

Seychelles:

• Fusepay – A licensed Payment Service Provider building a digital finance hub for frontier markets.

The semi-finalists will present their pitches virtually in the week of October 27, 2025. Only 10 startups will proceed to the final round in Cape Town, South Africa, scheduled for 26 November 2025. 

The overall winner will secure a $50,000 equity investment, gain access to MEST Africa’s global mentorship network, and explore pilot opportunities with Absa’s business divisions.

Tamu Dutuma, head of Strategy and Transformation for ARO Technology, said the competition unearths ideas capable of accelerating digital transformation across the continent. 

“Through this challenge, we’re seeing solutions that are not only innovative but strategically aligned with Africa’s evolving technology landscape. Some of these ideas have the potential to accelerate digital transformation and unlock new value for our customers,” she said.

Since its founding in 2008, MEST Africa has supported more than 2,000 entrepreneurs and invested in over 90 startups. The MEST Africa Challenge is a key platform for identifying, nurturing, and scaling promising technology-driven ventures that are building Africa’s economy sustainably.

The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company managed by Ninety One, has successfully raised $325 million in new debt facilities, bringing recent commitments to $620 million and exceeding the Fund’s $500 million target ahead of schedule.

The debt raise cements EAAIF’s position as the go-to partner for investors to access scalable, and untapped opportunities in the emerging market infrastructure debt asset class, through an A2 rated (Moody’s) lending platform.

Allianz Global Investors (AGI) led the financing on behalf of Allianz Group, one of the world’s leading insurers and asset managers, committing €100 million to EAAIF.

One of South Africa’s largest financial services organisations, ABSA, provided $75 million.

Standard Bank, Africa’s largest lender by assets, contributed an additional $50 million to facilities already provided.

Japanese multinational bank Sumitomo Mitsui Banking Corporation (SMBC) extended a $50 million credit facility, while Swedfund, Sweden’s development finance institution, allocated €40 million. The new debt package builds on EAAIF’s $294 million capital raise secured in 2024.

This demonstrates the Fund’s ability to mobilise a global community of public and private investors united by a shared purpose of channeling capital, innovation, and expertise to expand infrastructure debt markets in Africa and Asia.

The new debt finance package will support EAAIF’s ambition to generate sustainable development impact and deliver positive returns.

The financing will enable $1 billion of investment by the Fund in next-generation infrastructure across Africa and Asia by 2028. EAAIF’s investment strategy targets assets that advance digital economies, scale transition infrastructure, and reshape power markets.

The successful debt raise comes at a critical time. The Asia-Pacific region alone faces a shortfall of at least $800 billion in climate financing, while just c.23% of Africa’s climate finance needs are currently met.

Action on climate is at the heart of PIDG’s strategy, which aims to improve economic resilience and climate opportunities for 100 million people by 2030.

As one of Africa’s longest-serving infrastructure debt providers, EAAIF draws on the Group’s whole life-cycle approach – spanning project development, financing, and long-term sustainability – to transform economies and improve lives, while delivering meaningful action on climate adaptation, resilience, and mitigation.

Since its inception in 2001, EAAIF has committed over $3 billion to more than 125 infrastructure projects across 25+ countries and 10 sectors in Africa and Asia.

In 2024, Moody’s reaffirmed the Fund’s foreign currency long-term issuer rating of A2 with a stable outlook and minimal default rate, reinforcing its position as a leading instrument for investors seeking investment protection, returns, and exposure to Africa and Asia’s growing infrastructure asset class.

Martijn Proos, co-head of EM alternative Credit at Ninety One and Managing Director for EAAIF, said:

“These successful subsequent debt raises highlight global investors’ confidence in EAAIF’s ability to create attractive investment solutions that seize untapped opportunities in fast-growth markets. By strengthening our capital base and diversifying our funding sources, we are favourably positioned to drive business growth and economic transformation through private infrastructure debt investment in pioneering infrastructure. We thank Allianz, ABSA, Standard Bank, SMBC, and SwedFund for their continued support.”

Philippe Valahu, CEO of PIDG, said:

“As a PIDG company, EAAIF is driven by a vision of delivering essential infrastructure that unlocks economic opportunities in the markets where we invest. This milestone is a significant step forward for PIDG, which aims to deliver $9 billion in new commitments for infrastructure and mobilise $25 billion in additional finance by 2030. We look forward to continuing this journey alongside our partners as we develop innovative mobilisation strategies across the project lifecycle to deliver progress in the regions where we operate.”

Maria Håkansson, CEO of Swedfund, Sweden’s development finance institution, said:

“The EAAIF has a critical role to play in financing high-impact infrastructure projects across Africa, while challenging risk perceptions around African infrastructure investment and mobilising private capital. This is essential to closing the financing gap and building capital markets to achieve better environmental and social impact.”

Neha Bantha, executive vice president for Leveraged Finance at Standard Bank Corporate & Investment Banking said:

“We are proud to be part of this consortium which will enable funding for strategic infrastructure projects that underline our broader purpose, to drive Africa’s growth. This transaction forms a cog in our broader wheel of innovative financing and objective to deliver structured capital solutions that help our partners and clients deliver for the continent and we look forward to future partnership opportunities that leverage Africa’s immense potential”.

Nisrin Abouelezz, managing director and Head of Africa Group of SMBC said:

“SMBC is pleased to partner with EAAIF in this year’s debt raise which aligns well with SMBC’s own strategy for sustainability and social value creation. SMBC continues to support our clients as they further global energy transition, while supporting social infrastructure and value creation on the African and Asian continent”.

Shyam Ganda, director – Global Finance, ABSA, said:

“As a Pan-African bank, Absa is proud to partner with EAAIF in supporting projects which will accelerate infrastructure development for lasting impact –  bridging Africa and Asia’s long-term financing gap, whilst supporting economic growth and renewable energy expansion”.

Awaiting regulatory approval, the goal is to tap into the increasing flow of trade and investment between Africa and the Middle East.

Yasmin Masithela, CEO of Absa’s corporate and investment banking division, confirmed the plan. “We’re setting up a Dubai office in the first quarter of 2026,” she stated during an interview in Johannesburg. “We’re just waiting for regulatory approval.”

For Absa, the decision goes beyond expanding its footprint, to staying competitive. Several South African banks, including Investec, Standard Bank, Rand Merchant Bank, and Nedbank, already have a presence in Dubai, positioning themselves to benefit from the region’s economic growth. Absa is now making its move to ensure it doesn’t fall behind.

The Middle East has become highly important in Africa’s economic sector, with Gulf countries investing over $100 billion on the continent since 2014. The UAE’s trade with sub-Saharan Africa has surged by more than 30%, and Saudi-Africa trade has multiplied twelvefold in the same period. 

The UAE’s trade deal with Kenya and Saudi companies like Jameel Motors expanding into South Africa are just recent examples of this growing engagement.

With the establishment of a base in Dubai, Absa aims to connect African businesses with Gulf investors and vice versa. Infrastructure development is a key part of this strategy. “You want to be closest to the clients that are driving the businesses that are aligned to your strategy, and infrastructure development has always been one of our strategic objectives,” Masithela explained.

This expansion builds on Absa’s existing international presence in the UK, the US, and a recently launched unit in China. However, while the bank expects moderate earnings growth this year, the impact of the Dubai office will be seen over time. 

In 2021, sustainable bonds surged past $1 trillion in assets under management (AUM)—a win for climate-conscious investors and impact-driven financiers back then. 

However, gender bonds, which directly target economic empowerment for half of the world’s population, are still a rounding error in global capital flows.

Women own 30% of registered businesses in Africa but receive less than 10% of commercial bank financing. Meanwhile, female-led funds are statistically proven to outperform the male-led, yet the investment gap stubbornly continues. 

The irony? The very financial sector that prides itself on numbers is seemingly ignoring some of the most obvious ones.

Hence, the Gender Bonds Toolkit Dissemination Workshop, held on 27th and 28th January 2025 at the Radisson Blu Anchorage Hotel in Lagos sought to address these issues. 

Hosted by FSD Africa in partnership with UN Women, the event assembled financial sector stakeholders to discuss how gender bonds could finally become a mainstream instrument in Africa’s capital markets.

Gender Bonds Toolkit: Experts Call for Inclusive Finance as Only 6% SDGs on Track for 2030

With panel sessions and a fireside chat, the Gender Bonds Toolkit Dissemination Workshop touched on the challenges, opportunities, and strategies required to close the gender financing gap.

Including regulatory frameworks and investor engagement, the discussions revealed a mix of cautious positivity and hard-hitting facts about why capital markets remain sluggish in embracing gender finance—and what needs to change.

These challenges formed the foundation for deep discussions at the workshop, starting with an in-depth look at the Nigerian market.

Thematic Bonds in Nigeria: Market Insights and Opportunities

Panel: Exploring the Opportunity for Thematic Bonds in Nigeria

The discussion kicked off with an overview of Nigeria’s dynamic capital market, where thematic bonds—especially green and gender bonds—are gaining interest. Experts from Renaissance Capital Africa, Cygnum Capital Group, Securities and Investment Services Department (SEC Nigeria) and London Stock Exchange Group (LSEG) delivered insights into the regulatory sector and the role of financial institutions in driving sustainable investment.

Key Takeaways:

• Financial institutions have so far led thematic bond issuance, leveraging development finance institutions (DFIs) and impact investors.
• Nigeria’s SEC has been indispensable in establishing frameworks for green, social, and gender bonds, ensuring compliance with global standards to attract investors.
• Sovereign and corporate issuances in Nigeria, including green sukuks—a new climate finance instrument (green Islamic bond) that has the potential to channel the $2 trillion Islamic Finance market to fund green and sustainable investment projects—and gender-focused programs reveal the country’s growing participation in the sustainable finance ecosystem.
• Challenges remain in investor awareness and ensuring sustained adoption of gender bonds beyond donor-driven incentives.

Alternative Capital Mobilization: Structures, Impact & Lessons Learned

Fireside Chat: Scaling Gender Bonds through Innovative Financial Structures

At the Gender Bonds Toolkit Dissemination Workshop, Panellists from InfraCredit, Aruwa Capital Management, and Symbiotics discussed alternative funding models for gender bonds, emphasizing private capital mobilization and blended finance structures.

Key Takeaways:

• Women-led funds are three times more likely to invest in female CEOs and twice as likely to fund female founders.
• Aruwa Capital has deployed $40 million in assets under management (AUM), with 70% of its portfolio comprising female-led businesses.
• Infracredit’s blended facility has unlocked financing for clean energy projects, benefiting communities without electricity.
• Microfinance institutions (MFIs) are important in gender-focused investing, often serving 100% female clients, showing a clear business case for gender bonds.

From Strategy to Issuance: Strengthening Gender Finance Ecosystems

Panel: Defining Gender Goals, Data Quality & Investor Engagement

This session examined how institutions are structuring gender bonds, focusing on data-driven strategies, investor confidence, and regulatory compliance. Panelists from Access Bank, Absa, and the West African Development Bank (BOAD) shared best practices.

Key Takeaways:

• Access Bank’s “W Initiative” has driven financial inclusion through targeted women-focused banking programs.
• Absa has mobilized $350 million to support women-owned businesses and is leveraging UN Women’s Women Empowerment Principles (WEPs) to shape its gender strategy.
• BOAD’s gender strategy follows a three-pillar approach: (1) Institutionalizing gender in financial planning, (2) Economic empowerment, and (3) Job creation and market access.
• Gender data is necessary: Accurate disaggregation of financial data allows institutions to track the real impact of gender-focused investments.

Lessons from Issuers: Challenges, Innovations & Future Prospects

Panel: Insights from an Issuer’s Perspective

Issuers shared first-hand experiences on scaling through the bond market, engaging investors, and overcoming regulatory limitations. The session featured representatives from FSD Africa, BII (British International Investment), and private-sector issuers.

Key Takeaways:

• Gender bonds require “sweeteners”: Partial or full guarantees, blended financing, and development finance institution (DFI) backing have been essential in securing investor confidence and ensuring successful issuances.
• Credit rating challenges persist: Many issuers struggle with low credit ratings, making it difficult to attract institutional investors without guarantees or risk mitigation mechanisms.
• Investor education is key: While thematic bonds are gaining interest, many local investors still prioritise traditional instruments. Awareness campaigns and engagement strategies are important to promoting demand.
• Thematic bond structuring must ensure targeted impact: Funds raised must be transparently allocated to gender-inclusive businesses and female entrepreneurs, avoiding the risk of “gender-washing.”
• Local currency issuances are essential for market development: Issuing gender bonds in local currency can help mitigate foreign exchange risks and attract domestic investors.

Scaling Up Gender Bonds: The Road Ahead

Panel: Telling the Impact narrative – Impact monitoring and reporting simplified

This session focused on how financial institutions, regulatory bodies, and development organisations can scale gender bonds as a mainstream financing tool in Africa. Key discussions included insights from the London Stock Exchange’s Sustainable Bond Market, African Development Bank (AfDB), and Nigeria’s SEC.

Key Takeaways:

• The London Stock Exchange’s Sustainable Bond Market (SBM) provides a credible listing platform for green, social, and gender bonds. Annual due diligence ensures transparency and credibility, reducing the risk of misallocated funds.
• Multilateral institutions like AfDB play important roles by providing technical assistance, first-loss guarantees, and de-risking mechanisms to encourage more issuances.
• Investor participation needs to expand beyond DFIs: Encouraging local institutional investors, pension funds, and asset managers to integrate gender bonds into their portfolios will be critical to long-term market growth.
• Regulatory clarity and incentives can drive adoption: Policymakers must ensure that frameworks are in place to support issuers while incentivising investors to prioritise gender-focused investments.
• Blended finance and public-private partnerships (PPPs) can accelerate adoption: Combining concessional financing from DFIs with private sector capital can help scale gender bond issuances and create a more sustainable market.

Finally: A Sustainable Future for Gender Finance

The Gender Bonds Toolkit Dissemination Workshop reiterated the need for a well-structured approach to scaling gender bonds in Nigeria and Africa. While there are still challenges—ranging from regulatory issues to investor reluctance—there is an obvious momentum in the market.

Gender bonds go beyond impacting investment tools, they are viable financial instruments that can drive inclusive economic growth. 

With continued collaboration among financial institutions, regulators, and development partners, gender bonds can transition from a niche product to a mainstream funding mechanism, bringing about billions in capital for women-led enterprises and gender-inclusive projects across Africa.

The key to success lies in regulatory support, strong market education, investor engagement, and innovative financing structures. In embedding gender finance into mainstream capital market strategies, Nigeria and Africa can fully leverage sustainable finance to drive economic empowerment and financial inclusion.

BII is the UK’s Development Finance Institution (DFI) and impact investor, focused on providing patient capital to foster productive, sustainable, and inclusive economies.

Absa, as the borrower in this transaction, will utilise the funds to support this objective, with a specific focus on the African continent.

“Our unyielding commitment to the success of the continent continues to drive us to find solutions to serve our customers by addressing Africa’s trade finance gap, focusing on sustainable funding,” said Mosa Tshabalala, head of FI Trade Sales (International), Risk Distribution, and Syndication at Absa CIB. “Our role as a Pan-African bank is to channel the funds to reach our client base across our chosen markets. We continue to forge partnerships with DFIs, insurance companies, other commercial banks (locally, regionally, and globally), ECAs, and institutional investors to drive market access and provide the funding necessary to support our customers’ growth ambitions.”

Africa’s trade finance gap is estimated to be between $100 billion and $120 billion. By partnering with BII, Absa is making strides in advancing the efforts of the African Continental Free Trade Area (AfCFTA) agreement, which aims, among other objectives, to reduce the continent’s trade finance gap.

In addition, this transaction enables Absa to extend liquidity to clients across various geographies and trade product sets that are in high demand.

These funds are ringfenced for financing trade transactions, with a focus on sustainable funding. This includes, but is not limited to, supporting small and midsize enterprises (SMEs) founded by youth and women engaged in intra-African and global trade.

This aligns with Absa’s goal of concluding R100 billion in sustainability-related transactions by 2025.

“Our extensive presence across the continent, combined with our global reach, enables us to facilitate the flow of capital and trade finance that African businesses need to scale and compete internationally. By leveraging our cross-border expertise and strategic partnerships, we are driving sustainable growth and creating new opportunities in emerging markets, contributing to the broader development of Africa’s economic ecosystem,” said Charles Russon, interim group chief executive officer at Absa.

Absa’s long-standing partnership with BII reflects the depth of their relationship and shared vision for driving growth in emerging markets.

Since 2019, the partnership has provided much-needed trade liquidity in countries such as Ghana, Nigeria, Kenya, Uganda, Tanzania, and Mozambique – supporting over $1 billion in trade volumes, including over the course of the COVID-19 pandemic, which severely strained trade liquidity in Africa.

Anneliese Dodds, the UK’s Development Minister, said,

“I am happy to see BII support Absa through this important facility, which is part of a long-standing partnership to help fill Africa’s estimated $100bn to $120bn trade financing gap. Today’s signing demonstrates BII and Absa’s continued commitment to addressing that pressing challenge together, focusing on sustainable and inclusive economic growth.”

Admir Imami, director, Head of Trade & Supply Chain Finance, BII added

“We are delighted to continue our partnership with Absa which is based on a shared ambition to progress inclusive and economic development, particularly for underserved groups including SMEs and women. The facility combines BII’s long history of support in Africa with Absa’s cross-border expertise, which will help to make trade finance more accessible to African businesses and improve the vital flow of essential goods including food.”

They will meet government stakeholders, institutional investors, private financiers, service, and technology providers from across the U.S., to discuss Africa’s energy challenges and new investment opportunities.

High-level boardroom sessions will explore challenges and themes including lowering Africa’s cost of debt, the Sovereign Guarantee Impasse, and a more suitable future finance roadmap.

Summit sponsor and PAS24 co-host, Power Africa will help to drive much of the collaborative discussion.

The organization has allocated more than $575 million to strategic investments in the energy sector since its inception. Investments have since surpassed $25 billion, generating more than 14,000MW on the continent.

“PAS24 will provide our organization with the chance to expand our connections with both public and private sectors. Since 2013, we have harnessed the collective resources of 12 U.S. government agencies and over 200 public and private sector partners to end energy poverty in sub-Saharan Africa, helping to deliver new or improved electricity services to nearly 200 million people across that region,” Power Africa Deputy Coordinator Chris Foley said.

“However,  African countries will need $200 billion annually until 2030 toto achieve their energy-related development goals , which is far more than the funding available from African governments and foreign donors,” Foley said. “With this in mind, and in line with the event’s theme, one of our main goals this year is to explore more innovative financing models to help the more than 590 million people in sub-Saharan who live without access to electricity. ”

Other speakers include Abebe Selassie, director, African Department, International Monetary Fund (IMF), who will make opening remarks at a key ministerial roundtable.

From the private sector, companies including Marathon Digital Holdings, Absa, ACWA Power, Three Cairns Group and Sun Africa will also host boardroom sessions and discussions.

“Sun Africa is dedicated to shaping the future of sustainable power in Africa, and PAS24 will be an important catalyst for transformative discussions on energy innovation and policy on the continent,” added Sun Africa’s CEO, Adam Cortese.

This year’s Powering Africa Summit will build on progress made in 2022by Power Africa initiatives, like the U.S.-Africa Clean Tech Energy Network (CTEN).

Now a PAS24 sponsor, the initiative, that is facilitating an ecosystem of cleantech companies, innovators, and researchers, is fully active, identifying trade and business opportunities, as well as market analysis, to facilitate around £350 million in deals in its first five years.

British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, and Stanbic Bank Kenya (“Stanbic”), a member of the Standard Bank Group, have made commitment to Sun King, a leading off-grid solar energy company, through a $130 million funding round and a joint $20 million working capital facility.

Targeting further expansion, Sun King is backed by prominent DFIs and commercial lenders, including Absa, BII, FMO, Norfund, Stanbic Bank Kenya, the Trade and Development Bank (TDB), and Citi.

These two complementary commitments will enable the purchase of more inventory such as solar home systems and solar lanterns, and facilitate customers’ access to new solar products via credit, securitised and funded by investors – catalysing company growth.

To date, Sun King has powered the lives of over 100 million people. These investments will accelerate Sun King’s ability to equip more Kenyan households and businesses with green, reliable and modern energy.

The entirely Kenyan-Shilling-denominated securitisation deal provides a $130 million capital boost to Kenya’s off-grid solar energy sector and leverages Sun King’s share of the market – extending access to pay-as-you-go solar home systems and energy efficient equipment for underserved customers across the country.

Approximately half of Sun King’s registered pay-as-you-go customers in Kenya are women, most of whom access formal financing products for the first time.

Providing an additional $20 million working capital facility to support Sun King, BII and Stanbic maximise the company’s capacity to deliver more high-quality affordable products to an underserved market with rising demand.

Sun King designs, distributes, installs and finances modern solar energy solutions for individuals, households and businesses who cannot access, rely on, or afford traditional electric grid connections.

In Kenya, three out of every ten Kenyans live without access to electricity. The facility will allow Kenyan households and businesses to transition to clean, reliable and affordable solar energy and appliances.

Growing with early-stage funding provided by DFIs, including BII, Sun King is the world’s largest off-grid solar energy company.

In 2022, the company closed a $330 million Series D equity round of funding, with participation from private equity investors General Atlantic, M&G and Leapfrog.

Over the years, as Sun King’s reach has expanded, BII and Stanbic Bank Kenya’s financing has evolved in tandem, adopting a flexible, patient, and long-term approach to lending.

Anish Thakkar, Co-Founder, Sun King said: “For many years, British International Investment and Stanbic have been invaluable partners in Sun King’s mission to equip underserved consumers with clean, renewable energy. Today, one in five Kenyans use Sun King products for light and power. British International Investment and Stanbic’s investment propels us forward, allowing Sun King to meet the ever-evolving energy demands of Kenyan customers and to better serve those overlooked by traditional energy systems.”

Geoffrey Manley, Head of Energy Access and Efficiency, BII, said: 

“Once again, we are proud to support Sun King and are delighted to participate in BII’s third funding round to the company. Alongside other investors, we reinforce our shared commitment to mobilise climate finance, boost energy access and improve the quality of life of Kenyan households. These complimentary commitments bring more solar home systems to those living with no or limited access to traditional energy sources – supplying energy efficient solutions while unlocking more commercial capital to advance the development of the market.”

Rentia van Tonder, Global Head of Power, Standard Bank said: 

“Africa is well positioned to benefit from the green economy, and we are proud to have partnered with Sun King to facilitate this landmark transaction. It is another demonstration of the Standard Bank Group’s ongoing commitment to drive sustainable growth in Africa’s renewable energy sector. Our clients are looking at transitioning to net zero and fast-tracking renewable energy as a key value proposition, and as such we have prioritised sustainable finance as a way to unlock growth across African economies. As the largest bank on the continent, we have the local knowledge and a good opportunity to play a leading role to realise the possibilities presented by Africa’s longer-term structural trends.”

The joint commitment contributes to several of the United Nations’ Sustainable Development Goals (SDGs), including Affordable and Clean Energy (SDG 7), Climate Action (SDG 13) Decent Work and Economic Growth (SDG 8), Social Inclusion (SDG 10) and qualifies as part of BII’s contribution to the 2X Challenge.

Watch:

Absa’s advice follows the increasing trend of data dependence in capital market participation and decision making.

Globally, there is an increase in the reliance of market data as a tool for making sound financial decisions, and the Nigerian case is no different.  

A study carried out by Refinitiv in 2020 shows that, 57 percent of capital markets professionals expect to spend more time analysing data, and 74 percent believe data analysis to be the most important skill that will be required to work on the future trading desk.

According to Akinkunmi Majaro, the Chief Executive Officer (CEO) of Absa Securities, “market data is a valuable recourse for portfolio investors during a challenging cycle. Hence, capital market data is designed to provide market participants with in-depth knowledge of market conditions.  Considering the various challenges besetting the global economy, these investors need accurate data to make informed investment decisions to avoid unfavourable market moves.”

The importance of data for improved participation at the NGX was highlighted by the Chief Executive Officer, NGX, Temi Popoola, (CFA) at an earlier workshop where he stated that the NGX continues to promote a high level of market transparency by enabling easy access to quality real time market data to all market participants including regulators.

He emphasized that market data such as transaction prices, bids/offers and other trading information becomes the bedrock for price discovery and investment strategies.

In line with Absa’s commitment to improving performance in the capital market, the bank has created an online interactive platform where updates on price movements, different investment portfolio options, data on global stock market as well as exchange-traded funds are shared to help investors make informed trading and investment decisions and manage their financial future.

This comes on the heels of the NGX and MTN Nigeria Communications Plc (MTNN) signing a Memorandum of Understanding (MoU) to further promote financial literacy and enhance retail participation in the Nigerian capital market.

The Absa online interactive platform and other initiatives such as the NGX and MTNN collaborative efforts will further entrench the deployment of technology as technology as-a-service to develop capital market solutions, enhance capacity development, and ultimately promote the use of date to improve participation in the capital market.

Absa, offers investment banking and market products through its various Nigerian registered subsidiaries, namely Absa Representative Office Nigeria Limited, Absa Capital Markets Nigeria Limited, and Absa Securities Nigeria Limited.

Currently, large, medium, and small businesses are sourcing for funds to get their businesses back on track and pursue their growth mandate as markets open gradually.

Absa, which offers investment banking and market products through various Nigerian registered subsidiaries, namely Absa Representative Office Nigeria Limited, Absa Capital Markets Nigeria Limited, and Absa Securities Nigeria Limited, advised local businesses to tap into the ample pool of retail and institutional investors on the stock exchange to drive their growth aspirations.

According to Akinkunmi Majaro, the Head of Absa Securities Nigeria Limited, “Businesses consistently strive to grow. Therefore, continued access to cash flow and other investment resources are crucial for businesses aiming to build the competitive edge necessary to drive growth. Meanwhile, the global health crisis and its fallout are strong indications that access to long-term financing with fewer stringent demands is critical to staying resilient in an austere operating environment.”

He added, “The Nigeria Stock Exchange, especially, provides access to long and medium terms finance for structured businesses. Absa Capital Markets Nigeria Limited is positioned to help multinational and local businesses and a wide range of investors gain an overriding view of the capital market as well as guide investors and businesses in making wise investment and finance choices.”

Businesses would need long-term access to finance to strengthen operating cash flow, drive product development initiatives, enhance logistics, expand product promotion coverage, penetrate new markets as well as scale operating capacity to the pre-COVID-19 levels.

The ability of these businesses to access funds readily would positively rub off on economic growth. It would revamp the employment generating capacity of the organised private sector and subsequently impact the gross domestic product level.

Many businesses default to bank loans when they are squeezed financially. But the stringent requirements by the banks and the high interest rate on such loans remain a big challenge that small and medium businesses sometimes find hard to surmount.

Fluctuating currency exchange rates and inflation trends have further compounded SMEs’ ability to access cheap funding for their operations. It has therefore become apparent that businesses look beyond the commercial banks for their funding needs.

Traditionally, across the globe, capital markets offer an interesting opportunity for businesses that are looking to raise capital for medium to long term financing of their activities. The stock exchange serves as a financial intermediary between investors and businesses listed on its floor.

It is regarded as a trading crucible that links businesses to a large pool of local and foreign investors who are constantly searching for interesting investment opportunities.

These investors are anxious to boost their ROI and will put their monies in stocks that have favourable profit projections. The advantage for businesses on an exchange is that they can access large capital at lower cost.

Businesses listed on the country’s stock exchange, like Stanbic IBTC, MTN Nigeria, and BUA Foods, among others have an advantage in terms of access to low cost capital to expand their operations.

BUA Foods Plc’s 18 billion shares, for instance, were recently listed on the exchange at N40. The listing on the stock exchange provided a lever for the BUA Foods business to raise capital and deepen its operating capacity in the pasta, edible oil, sugar, and flour segments of the local food value chain as well as drive its export capabilities. While this move lifted the NGX Exchange (NGX’s) market capitalisation to N720 billion, it yielded a capital gain of 33 per cent for investors in the first week.

MTN Nigeria had a similar remarkable run in the first month of listing. Its shares appreciated from N99 to N129.45, yielding massive gains for investors while mopping up funds for the telecommunications giant to drive its network and mobile money expansion agenda.

Meanwhile, the finance opportunities available at the stock exchange are not restricted to large businesses. Structured small-medium enterprises need funding to navigate the teething challenges in the early growth stages.

Considering how the economy is holding up and the cautious approach of traditional lenders to small businesses, it is time for the segment to explore the capital market in a bid to access long-term finance to take advantage of emerging market opportunities. This is crucial for the survival of the segment.

In fact, there are tailored platforms that meet the capital needs of the SME segment on the floor of the stock exchange.

The Growth Board on the NGX provides an alternative route for well structured small businesses with potential for growth to list on the stock exchange.

Businesses of all sizes can list on the stock exchange to access cheap and long term tenured equity or capital from the capital market.

As businesses reopen fully for economic activities, and the Africa Continental Free Trade Agreement gathers pace, there is hardly a better time for businesses to access the opportunities available on the stock exchange to raise cheap long-term capital for their operations.