Issue 16 : Ethio Telecom Raises It's Authorized Capital To $ 10B

Hello, Welcome to this week's edition of Shega Weekly Newsletter ( Issue # 16 ).

Ethio Telecom First Half Fiscal Year Performance and The New Direction The Company is Taking

Last week, Ethio Telecom announced the first half fiscal year business performance report ( from 01 July to 31 December 2020 ).  Here is what you need to know :  The total revenue generated during this period has become 25.57 Billion ETB ( Close to $ 650 M based on the exchange rate as of Jan 25, 2020).  Total subscribers reached 50.7 Million while mobile voice subscribers reached 48.9 Million. Data and Internet users of Ethio Telecom are at 23.5 Million and Telecom density has reached 50%. With the amendment of Ethio telecom’s establishment regulation, the following changes are introduced : - The authorized capital of the state company is increased to 400 Billion ETB ( around $10B ) - Legal framework to engage in Mobile Money and related digital finance services- Permission to operate in other non-telecom services as well as forming an entity- Ability to make an equity investment in other firms both locally and internationallyThe report also mentions that  "Ethio telecom is undertaking a project to launch mobile money services within a short period of time". Ethio Telecom also announced that KPMG finalized the asset valuation of the company using International Finacial Reporting Standards (IFRS). This has reportedly increased the total asset value by 42%. The state giant has not specified the total value of the total asset.  Following that, KPMG's contract is extended to do Ethio Telecom's business valuation too. Read more here. 

Green Agro Solution Teams Up with CBE Birr

Green Agro Solution, a one-stop farming solution startup, has partnered with CBE Birr. CBE Birr will be a digital financial service provider for Green Agro Solution's app that provides a one-stop digital service for smallholder farmers. The platform called Lersha enables farmers to access farm inputs, hire mechanization services, and request dynamic agro-climate advice using technology.

According to The Capital, the application targets to assist 35,000 small holder farmers in Oromia and Amhara region, with 32 mechanization service providers. To make the operation smooth and support the farmers both in digitalization and banking, Green Agro Solution has prepared 145 Lersha agents and 10 farm service centers. Read more. 

Insuretech Startup That Operates Across Africa including Ethiopia Raises $6MPulla, a Kenyan based insurtech startup that provides Insurance for smallholder farmers, raised $6M in a Series A round.

The round was led by TLcom Capital and a nonprofit Women’s World Banking. The latest financing is expected to grow the operation's current existing 13 markets where Pula Operates. The market includes Kenya, Ethiopia, Senegal, Ghana, Mali, Nigeria, Madagascar, Tanzania, Rwanda, Uganda, Zambia, Malawi, and Mozambique. Read more.

Continental Tech Startup Funding Reports

As 2021 begins, various continental publications are releasing their tech and startup funding reports. 

Briter Bridges has recorded a $2.4 billion ( both disclosed and undisclosed deals ) investment and M&A activities in Africa. Download the report here. According to Disrupt Africa, African tech startup funding passes $700m in record-breaking 2020. The report counted 397 startups that raised  US$701.5 million in total funding. Disrupt Africa was able to track 5 startups from Ethiopia that raised in total  US$2,315,000.  Get Disrupt Africa report here.Shega has been tracking funding data of Ethiopian Startups and tech companies. We believe the number of startups that raised funding and the total raised amount in 2020 is higher than what has been tracked by the above Africa-wide publications. We hope to publish the details soon. 

Other things we are reading : Did 39.8 billion cyberattacks were exerted on Ethio Telecom?  Shaping up the future through codingWhat do the next 10 years look like for African entrepreneurs? Also, watch this Interview with Myriam Saïd about Ethiopia's Digital StrategyIf you are here because someone forwarded you this email, you can subscribe here to get future newsletters.