In this letter, we explore:
- Kenya approves $907 million proposal from Adani amidst controversy
- AliExpress is set to enter Ethiopia
- China launches a new rival to Starlink
We also curated updates on startup funding in Africa, weekend reads, and several opportunities.
The big three!
Kenya approves $907 million proposal from Adani amidst controversy
Kenya’s electricity supply capacity is set to receive a major boost after it approved a $907 million proposal from Adani Energy Solutions to construct 371km of power lines and five substations. Kenya would use the public-private partnership (PPP) model to oversee the construction of this project in the country’s eastern and western regions.
But here’s the thing: while this power project sounds good, Kenyans are a bit worried. That’s because Adani is also in the middle of another deal to run Kenya’s main airport.
Questions have been raised about the deal’s transparency and potential financial implications. President William Ruto initially denied knowledge of the agreement, adding to the public’s scepticism.
The Adani Group, headed by one of Asia’s wealthiest individuals, Gautam Adani, has experienced recent turbulence with allegations of corporate fraud and market manipulation, leading to a sharp decline in stock value. However, a recent $1 billion equity sale suggests a rebound in investor confidence.
Context: Despite boasting about 87% renewable energy generation, Kenya experienced three major blackouts within three months last year.
While this project is a step in the right direction for Kenya, the performance of Adani Group would be closely watched by both the government and the public.
AliExpress is set to enter Ethiopia
AliExpress, a major online retail service owned by Alibaba group, is finally setting up shop in Ethiopia. This development follows years of collaboration between the Ethiopian government and Alibaba, marked by the signing of a Memorandum of Understanding (MoU) in 2019 to establish an Electronic World Trade Platform (eWTP).
Alibaba’s entry is a step in the right direction towards Ethiopia’s push for a digital economy. By providing a platform for both businesses and consumers, AliExpress can potentially boost the country’s export potential, create jobs and drive startup innovation. The Ethiopian government has been actively building a conducive environment for e-commerce by streamlining regulations and licensing processes.
This move aligns with Ethiopia’s broader strategy to attract foreign investment and modernise its economy.
Context: Alibaba has previously trained numerous Ethiopian entrepreneurs, and this training was instrumental in forming the association that spearheaded the initiative to bring the e-commerce giant to Ethiopia.
In 2022, the Alibaba group refuted claims of a partnership with Ethiopian entrepreneur Ermias Amelga to launch an e-commerce business in the country.
While the potential benefits of this move are substantial, the success of Alibaba’s venture will depend on factors such as internet infrastructure, logistics, and consumer trust.
E-commerce in Ethiopia is still expanding, with the market expected to reach $121.9 million by 2028. AliExpress will compete with established platforms like Jumia, Qefira.com, Sheger.net, and Mekina. Additionally, services like DHL Africa enable Ethiopians to shop from international stores and have their purchases delivered locally.
China launches a new rival to Starlink
China is the latest to challenge Starlink’s dominance in the satellite internet market. It has kicked off its “Thousand Sails Constellation” project by launching 18 satellites into low-earth orbit(LEO) through Shangai Spacecom Satellite Technology, a state-owned company in China.
China plans to deploy 648 satellites by 2025 as part of the first phase of its constellation buildout.
Context: In comparison, Starlink currently has about 5,500 LEO satellites and recently just launched 23 satellites to orbit from California.
This move also carries a geopolitical edge. The U.S., which is home to Starlink, has been seeking a space military advantage, and both countries view control of LEO satellites as having significant military implications.
China’s Satellite project would join the likes of Project Kupier and OneWeb in challenging Starlink’s market dominance.
💰 State of Funding in Africa
Here’s a roundup of African startups that secured funding last week:
- Egyptian Fintech Lucky ONE has raised $3 million in a convertible debt round. The facility was secured from existing backers, including Lorax partners, KEM, and DisrupTech Venture.s
- Cairo-based Fintech Qardy has raised a 7-figure Pre-Seed round in dollars from White Field Ventures and Vastly Valuable Ventures, among other Angel Investors.
📚 Weekend reads
- Nigeria’s economic crisis is fueling a stunt philanthropy boom
- What adults lost when kids stopped playing in the street
- Nigerian Founders vs Devs
🎥 Weekend watchlist
- Survive 100 days in nuclear bunker, win $500,000
- Guess the language: Africa Edition
- Teams game plan vs USA basketball team
💼 Opportunities
Jobs
We carefully curate open opportunities in Product & Design, Data & Engineering, and Admin & Growth every week.
Product & Design
- Hoarder — Mobile Designer, Lagos
- IvyPanda — Graphic Designer, Remote
- Sumsub — Product Marketing Manager, Remote
Data & Engineering
- Kuda — Backend Engineer, Lagos
- Code Signal — Software Engineer, Remote
Admin & Growth
- SocialPilot — Brand Marketing Manager, Remote
- Helium Health — Executive Assistant, Lagos
