VCs and ventures in Subsaharan Africa have begun to put more money into the continent Azevedotechcrunch. These include companies such as Pngme and Mention. In this series, we’ll explore how the tech landscape in this region is evolving.
Pngme is a fintech firm that is located in San Francisco and has operations in Africa. It offers APIs and services to financial institutions in Sub-Saharan Africa. The company’s products and services aim to increase customer lifetime value.
Pngme’s platform enables banks and other financial institutions to gather data at scale, with the goal of improving client retention and lowering defaults. Pngme’s solution has been successfully tested with tier one banks in South Africa and Nigeria. These customers have reported reductions in loan defaults from 20 percent to 21 percent.
Pngme’s infrastructure is able to handle billions of financial data points from thousands of African banks. These data points are then processed and unified. The end result is a comprehensive picture of a bank’s financial behavior. This enables Pngme’s financial intelligence to be used to create custom, data-driven solutions.
Mention is the name of the game when it comes to business etiquette in the workplace. As such, you are suckered into a cocktail or two. One of the most memorable of the lot was a recent convert. The rest of the crew was a little less than obliging. With this in mind, you need not scout around for hours on end to come up with the best possible solution. Hence the title of this post. Despite the aforementioned etiquette, you can still be in a state of oblivion for the remainder of this article. After all, if you are reading this, you are probably on a slamming, and your tee time is on the brain.
Cryptocurrency usage in Africa
Cryptocurrency usage in Africa has skyrocketed over the past year. Although the digital currency market is still small, it has become a growing force. Many Africans are using crypto to make everyday transactions.
While the crypto industry is growing, some countries are taking steps to curb its growth. The Nigerian Central Bank recently directed banks to stop providing services to cryptocurrency providers. Likewise, several African countries have turned to CBDCs (Central Bank Digital Currency) to stifle the emergence of digital assets.
A report from Chainalysis, a blockchain data platform, reveals that sub-Saharan Africa is one of the world’s most untapped markets for cryptocurrencies. In fact, the region has the lowest global transaction volume for crypto transactions.
While the crypto industry has become an increasingly popular source of income for many Africans, many countries are struggling to find a way to encourage widespread usage. Some are even attempting to pass laws that ban virtual currencies.
Invoices received by SMEs in Africa after several weeks or sometimes months
There is no doubt that SMEs play an important role in the global economy. In 2022, small-to-medium enterprises accounted for more than a quarter of the workforce, and were responsible for over one-third of South Africa’s GDP. Yet, despite their contributions, the small business sector remains underserved by mainstream lenders. That is largely thanks to the long payment cycles of SMEs, which creates a perfect storm for their customers.
Small to medium sized businesses are invariably the ones most susceptible to cash flow problems. This is not to say that larger organisations are immune to cash flow issues, but it’s an undeniable fact. The following is a list of best practices for small and medium sized businesses to follow for maximum cash flow and customer satisfaction.
First, don’t get stuck in a payment loop. Ensure that you have an optimum balance of current and historical receivables. A good rule of thumb is to ensure that all receivables are paid in full by the end of the month.
VCs putting more money in Africa
Venture capitalists have put more money into Africa in the past year. According to a new report, they are investing $3.9 million daily in African startups. In addition, Google announced plans to invest in the continent.
There are significant opportunities for Africans to make a dent in the startup economy. Innovations that solve major problems can lead to job creation and economic development. These innovations can also help reduce poverty.
Venture capital is a crucial source of funding for early stage start-ups. It is used to empower entrepreneurs and provide financial and human capital. However, it is not without its risks.
The “Big Four” countries dominate venture investment on the continent. Nigeria, Kenya, South Africa, and Egypt represent the top recipients of VC investments. But these countries face unique challenges. While their markets have grown rapidly, they are not yet fully developed.