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Disclaimer :
The information and opinions presented during the webinar are for general informational purposes only and should not be construed as financial, investment, legal, or tax advice. The views and opinions expressed by the speakers, including any guest speakers, are their own and do not necessarily reflect the views of Zambezi Capital or its affiliates. Any action taken based on the information provided during this webinar is at the owner's risk. We encourage you to consult with a financial advisor before making any investment decisions. Zambezi Capital is not responsible for any losses, damages, or claims that may result from your reliance on the information or opinions presented in this webinar. 
Zambezi Capital's 4th Quarterly Market Update, hosted by Malanga Mposha on February 17th, 2024 provided a comprehensive exploration of nearly all market sectors. The discussions delved into areas of Venture Capital (VC) Funding, the nuances between Gold and Silver, technological advancements in Zambia’s ride-hailing market, and exploring Zambia's potential in the Electric Vehicles (EVs) production market. Let's delve into the Q&A insights shared during the discussion:
Venture Capital(VC) Funding in Africa:
Haggai highlighted the various stages of VC funding, including seed funding, series A, and series B, explaining that startups typically raise funds based on their concept and milestone achievements. He emphasized the importance of VC funding for startups to access infrastructure, develop new products and services, and increase market share. Additionally, he discussed the stages beyond series B, such as mergers and acquisitions (M&A) and initial public offerings (IPOs), as well as the different exit pathways for companies, including IPOs, acquisition by private equity firms, or being bought by strategic buyers.
Recently, challenges in the African startup ecosystem have impacted VC funding for growth-stage companies. Startups, such as WhereIsMyTransport and Sendy in South Africa, faced closures and layoffs due to the scarcity of funding. The overall decrease in VC funding across Africa has led to a market correction, with investors prioritizing profitability. Despite these challenges, some companies like Chipper Cash and Cellulant managed to secure funding rounds. However, there is a growing recognition of the systemic challenges in the ecosystem, including gender disparities in funding allocation. Efforts are needed to address these issues and promote inclusivity in VC funding.
Gold vs. Silver Dynamics:
In 2024, the precious metals market could see projections of gold reaching new all-time highs, while silver prices are expected to average around $30 per ounce. Tafara highlighted that despite silver's lower price compared to gold, investors need to consider various factors such as volatility, industrial demand, and historical performance when deciding between the two metals. Gold has traditionally been viewed as a store of value, while silver has industrial applications beyond its role as a precious metal. Tafara also pointed out that the gold market is generally more liquid than the silver market, which can affect trading volumes and volatility. Overall, he provided insights to help investors make informed decisions based on their individual or company circumstances and investment objectives.
Tech and Innovative Developments :
Fad highlighted the recent developments in the ride-hailing industry in Zambia, the introduction of apps like Ulendo, Yango, and Bolt. He mentioned Ulendo, Zambia's first ride-hailing app, which introduced innovative features such as "girls drive girls" taxis and business-class transportation. In 2022, Yango, an international player, entered the market with new features and has since become a prominent player in urban mobility. However, the recent introduction of Bolt in 2023 has intensified competition in the market, offering consumers more options and driving innovation in service delivery.
The discussion also addressed global innovations like Neuralink. Fad provided insights into emerging technologies like Neuralink and its potential impact on various aspects of society. He emphasized the importance of understanding both the promises and risks associated with such innovations, highlighting the need for cautious consideration before widespread implementation.
Implications of the Electric Vehicle Market for Zambia:
Daniel focused on the implications of electric vehicles (EVs) for countries rich in copper resources like Zambia and the Democratic Republic of Congo (DRC). Zambia is the sixth-largest copper producer globally and with significant cobalt reserves, is strategically positioned to benefit from the growing electric vehicles (EVs) market. The demand for EVs is driving the need for copper, which is essential for EV batteries, solar panels, and many technologies. The Zambian government's plans to boost mining and refine cobalt locally align with the global shift towards sustainable energy and EV adoption. Daniel emphasized that by capitalizing on their copper resources, Zambia could play a significant role in the production supply chain of EV batteries and promote green technology to support the global efforts to achieve net-zero emissions goals.
Kindly find our attached webinar presentation for insightful recap into the discussions and key takeaways.
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