Month: May 2024

NAIROBI, Kenya — When Ademola Adesina founded a startup to provide solar and battery-based power subscription packages to individuals and businesses in Nigeria in 2015, it was a lot harder to raise money than it is today.

Climate tech was new in Africa, the continent was a fledgling destination for venture capital money, there were fewer funders to approach and less money was available, he said.

It took him a year of “running around and scouring” his networks to raise his first amount — just under $1 million — from VC firms and other sources. “Everything was a learning experience,” he said.

But the ecosystem has since changed, and Adesina’s Rensource Energy has raised about $30 million over the years, mostly from VC firms. 

Funding for climate tech startups in Africa from the private sector is growing, with businesses raising more than $3.4 billion since 2019. But there’s still a long way to go, with the continent requiring $277 billion annually to meet its climate goals for 2030.

Experts say to unlock financing and fill this gap, African countries need to address risks like currency instability that they say reduce investor appetite, while investors need to expand their scope of interest to more climate sectors like flood protection, disaster management and heat management, and to use diverse funding methods.

Still, the investment numbers for the climate tech sector — which includes businesses in renewable energy, carbon removal, land restoration and water and waste management — are compelling: Last year, climate tech startups on the continent raised $1.04 billion, a 9% increase from the previous year and triple what they raised in 2019, according to the funding database Africa: The Big Deal. That was despite a decline in the amount of money raised by all startups in total on the continent last year.

That matters because climate tech requires experimentation, and VC firms that provide money to nascent businesses are playing an essential role by giving climate tech startups risk capital, said Adesina. “In the climate space, a lot of things are uncertain,” he said.

The money raised by climate tech startups last year was more than a third of all funds raised by startups in Africa in 2023, placing climate tech second to fintech, a more mature sector.

Venture capital is typically given to businesses with substantial risk but great long-term growth potential. Startups use it to expand into new markets and to get products and services on the market.

Venture capitalists “can take risks that other people cannot take, because our business model is designed to have failures,” said Brian Odhiambo, a Lagos-based partner at Novastar Ventures, an Africa-focused investor. “Not everything has to succeed. But some will, and those that do will succeed in a massive way.”

That was the case for Adetayo Bamiduro, co-founder of MAX, formerly Metro Africa Xpress, which makes electric two- and three-wheelers and electric vehicle infrastructure in Nigeria and has raised just under $100 million since it was founded in 2015.

Adetayo said venture capitalists “are playing a catalytic role that is extremely essential.”

“We all know that in order to really decarbonize our economies, investments have to be made. And it’s not trivial investment,” he said.

The funds can also bridge the gap between traditional and non-traditional sectors, said Kidus Asfaw, co-founder and CEO of Kubik, a startup that turns difficult-to-recycle plastic waste into durable, low-carbon building material. His company, which operates in Kenya and Ethiopia, has raised around $5.2 million since it was launched in 2021.

He cites waste management and construction as examples of traditional sectors that can connect with startups like his.

“There’s so much innovation in these spaces that can transform them over time,” he said. “VCs are accelerating that pathway to transforming them.”

Besides venture capital, other investments by private equity firms, syndicates, venture builders, grant providers and other financial institutions are actively financing climate initiatives on the continent.

But private sector financing in general lags far behind that of public financing, which includes funds from governments, multilaterals and development finance institutions.

From 2019 to 2020, private sector financing represented only 14% of all of Africa’s climate finance, according to a report by the Climate Policy Initiative, much lower than in regions such as East Asia and Pacific at 39%, and Latin America and the Caribbean at 49%.

The low contribution in Africa is attributed to the investors putting money in areas they’re more familiar with, like renewable energy technology, with less funding coming in for more diverse initiatives, said Sandy Okoth, a capital market specialist for green finance at FSD Africa, one of the commissioners of the CPI study.

“The private sector feels this (renewable energy technology) is a more mature space,” he said. “They understand the funding models.”

Technology for adapting to climate change, on the other hand, is “more complex,” he said.

One startup working in renewable energy is the Johannesburg-based Wetility, which last year secured funding of $48 million — mostly from private equity — to expand its operations.

The startup provides solar panels for homes and businesses and a digital management system that allows users to remotely manage power usage, as it tries to solve the problems of energy access and reliability in southern Africa.

“Private sector financing in African climate is still rather low,” said founder and CEO Vincent Maposa. “But there’s visible growth. And I believe that over the next decade or so, you’ll start to see those shifts.”

Investors are also starting to understand the economic benefits of adapting to climate change and solutions as they have returns on investment, said Hetal Patel, Nairobi-based director of investments at Mercy Corps Ventures, an early-stage VC fund focused on startups building solutions for climate adaptation and financial resilience.

“We’re starting to build a very strong business case for adaptation investors and make sure that private capital flows start coming in,” he said.

Maelis Carraro, managing partner at Catalyst Fund, a Nairobi-based VC fund and accelerator that funds climate adaptation solutions, urged more diverse funding, such as that which blends private and public sector funding. The role of public financing, she said, should be to de-risk the private sector and attract more private sector capital into financing climate initiatives.

“We’re not gonna go far enough with just the public funding,” she said. “We need the private sector and the public sector to work together to unlock more financing. And in particular looking beyond just a few industries where the innovation is writ large.”
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EDWARDS AIR FORCE BASE, Calif. — With the midday sun blazing, an experimental orange and white F-16 fighter jet launched with a familiar roar that is a hallmark of U.S. airpower. But the aerial combat that followed was unlike any other: This F-16 was controlled by artificial intelligence, not a human pilot. And riding in the front seat was Air Force Secretary Frank Kendall.

AI marks one of the biggest advances in military aviation since the introduction of stealth in the early 1990s, and the Air Force has aggressively leaned in. Even though the technology is not fully developed, the service is planning for an AI-enabled fleet of more than 1,000 unmanned warplanes, the first of them operating by 2028.

It was fitting that the dogfight took place at Edwards Air Force Base, a vast desert facility where Chuck Yeager broke the speed of sound and the military has incubated its most secret aerospace advances. Inside classified simulators and buildings with layers of shielding against surveillance, a new test-pilot generation is training AI agents to fly in war. Kendall traveled here to see AI fly in real time and make a public statement of confidence in its future role in air combat.

“It’s a security risk not to have it. At this point, we have to have it,” Kendall said in an interview with The Associated Press after he landed. The AP and NBC were granted permission to witness the secret flight on the condition that it would not be reported until it was complete because of operational security concerns.

The AI-controlled F-16, called Vista, flew Kendall in lightning-fast maneuvers at more than 800 kph that put pressure on his body at five times the force of gravity. It went nearly nose to nose with a second human-piloted F-16 as both aircraft raced within 305 meters of each other, twisting and looping to try force their opponent into vulnerable positions.

At the end of the hour-long flight, Kendall said he’d seen enough to trust this still-learning AI to decide whether to launch weapons in war.

There’s a lot of opposition to that idea. Arms control experts and humanitarian groups are deeply concerned that AI one day might be able to autonomously drop bombs that kill people without further human consultation, and they are seeking greater restrictions on its use.

“There are widespread and serious concerns about ceding life-and-death decisions to sensors and software,” the International Committee of the Red Cross has warned. Autonomous weapons “are an immediate cause of concern and demand an urgent, international political response.”

Kendall said there will always be human oversight in the system when weapons are used.

The military’s shift to AI-enabled planes is driven by security, cost and strategic capability. If the U.S. and China should end up in conflict, for example, today’s Air Force fleet of expensive, manned fighters will be vulnerable because of gains on both sides in electronic warfare, space and air defense systems. China’s air force is on pace to outnumber the U.S. and it is also amassing a fleet of flying unmanned weapons.

Future war scenarios envision swarms of American unmanned aircraft providing an advance attack on enemy defenses to give the U.S. the ability to penetrate an airspace without high risk to pilot lives. But the shift is also driven by money. The Air Force is still hampered by production delays and cost overruns in the F-35 Joint Strike Fighter, which will cost an estimated of $1.7 trillion.

Smaller and cheaper AI-controlled unmanned jets are the way ahead, Kendall said.

Vista’s military operators say no other country in the world has an AI jet like it, where the software first learns on millions of data points in a simulator, then tests its conclusions during actual flights. That real-world performance data is then put back into the simulator where the AI then processes it to learn more.

China has AI, but there’s no indication it has found a way to run tests outside a simulator. And, like a junior officer first learning tactics, some lessons can only be learned in the air, Vista’s test pilots said.

Vista flew its first AI-controlled dogfight in September 2023, and there have only been about two dozen similar flights since. But the programs are learning so quickly from each engagement that some AI versions being tested on Vista are beating human pilots in air-to-air combat.

The pilots at this base are aware that in some respects, they may be training their replacements or shaping a future construct where fewer of them are needed.

But they also say they would not want to be up in the sky against an adversary that has AI-controlled aircraft if the U.S. does not also have its own fleet.

“We have to keep running. And we have to run fast,” Kendall said.
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omaha, nebraska — Warren Buffett cautioned the tens of thousands of shareholders who packed an arena for his annual meeting that artificial intelligence scams could become “the growth industry of all time.” 

Doubling down on his cautionary words from last year, Buffett told the throngs he recently came face to face with the downside of AI. Someone made a fake video of Buffett, apparently convincing enough that Buffett himself said he could imagine it tricking him into sending money overseas. 

The billionaire investing guru predicted scammers will seize on the technology and may do more harm with it than good. 

“It has enormous potential for good and enormous potential for harm and I just don’t know how that plays out,” he said. 

Earnings 

The day started early Saturday with Berkshire Hathaway announcing a steep drop in earnings as the paper value of its investments plummeted and it pared its Apple holdings. The company reported a $12.7 billion profit, or $8.825 per Class A share, in first the quarter, down 64% from $35.5 billion, or $24,377 per A share a year ago. 

But Buffett encourages investors to pay more attention to the conglomerate’s operating earnings from the companies it owns. Those jumped 39% to $11.222 billion, or $7,796.47 per Class A share, led by insurance companies’ performance. 

None of that got in the way of the fun. 

Throngs flooded the arena to buy up Squishmallow plush toys of Buffett and former Vice Chairman Charlie Munger, who died last fall. The event attracts investors from around the world and is unlike any other company meeting. 

“This is one of the best events in the world to learn about investing. To learn from the gods of the industry,” said Akshay Bhansali, who spent the better part of two days traveling from India to Omaha. 

A notable absence 

Devotees come for tidbits of wisdom from Buffett, who famously dubbed the meeting Woodstock for Capitalists. 

This was the first meeting since Munger died. 

The meeting opened with a video tribute highlighting some of his best-known quotes, including classics like “If people weren’t so often wrong, we wouldn’t be so rich.” The video also featured skits the investors made with Hollywood stars over the years, including a “Desperate Housewives” spoof where one of the women introduced Munger as her boyfriend and another in which actress Jaimie Lee Curtis swooned over him. 

As the video ended, the arena erupted in a prolonged standing ovation honoring Munger, whom Buffett called “the architect of Berkshire Hathaway.” 

Buffett said Munger remained curious about the world up until the end of his life at 99, hosting dinner parties, meeting with people and holding regular Zoom calls. 

For decades, Munger and Buffett functioned as a classic comedy duo, with Buffett offering lengthy setups to Munger’s witty one-liners. 

Together, the pair transformed Berkshire from a floundering textile mill into a massive conglomerate made up of a variety of interests, from insurance companies such as Geico to BNSF railroad to several major utilities and an assortment of other companies. 

Next Gen leaders 

Munger’s absence, however, created space for shareholders to get to know better the two executives who directly oversee Berkshire’s companies: Ajit Jain, who manages the insurance units; and Abel, who handles everything else and has been named Buffett’s successor. The two shared the main stage with Buffett this year. 

The first time Buffett kicked a question to Greg Abel, he mistakenly said “Charlie?” Abel shrugged off the mistake and dove into the challenges utilities face from the increased risk of wildfires and some regulators’ reluctance to let them collect a reasonable profit. 

Morningstar analyst Greggory Warren said he believes Abel spoke up more Saturday and let shareholders see some of the brilliance Berkshire executives talk about. 

A look to the future 

Buffett has made clear that Abel will be Berkshire’s next CEO, but said Saturday that he had changed his opinion on how the company’s investment portfolio should be handled. He had previously said it would fall to two investment managers who handle small chunks of the portfolio now. On Saturday, Buffett endorsed Abel for the gig, as well as overseeing the operating businesses and any acquisitions. 

“He understands businesses extremely well, and if you understand businesses, you understand common stocks,” Buffett said. Ultimately, it will be up to the board to decide, but the billionaire said he might come back and haunt them if they try to do it differently. 

Nevertheless, the best applause line of the day was Buffett’s closing remark: “I not only hope that you come next year but I hope that I come next year.” 
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DUESSELDORF, Germany — Herbert Rubinstein was 5 years old when he and his mother were taken from the Jewish ghetto of Chernivtsi and put on a cramped cattle wagon waiting to take them to their deaths. It was 1941, and Romanians collaborating with Germany’s Nazis were rounding up tens of thousands of Jews from his hometown in what is now southwestern Ukraine.

“It was nothing but a miracle that we survived,” Rubinstein told The Associated Press during a recent interview at his apartment in the western German city of Duesseldorf.

The 88-year-old Holocaust survivor is participating in a new digital campaign called #CancelHate. It was launched Thursday by the New York-based Conference on Jewish Material Claims Against Germany, also referred to as the Claims Conference.

It features videos of survivors from around the globe reading Holocaust denial posts from different social media platforms. Each post illustrates how denial and distortion can not only rewrite history but perpetuate antisemitic tropes and spread hate.

“I could never have imagined a day when Holocaust survivors would be confronting such a tremendous wave of Holocaust denial and distortion, but sadly, that day is here,” said Greg Schneider, executive vice president of the Claims Conference.

“We all saw what unchecked hatred led to — words of hate and antisemitism led to deportations, gas chambers and crematoria,” Schneider added. “Those who read these depraved posts are putting aside their own discomfort and trauma to ensure that current and future generations understand that unchecked hatred has no place in society.”

The Claims Conference’s new digital campaign comes at a time when antisemitic incidents, triggered by Hamas’ deadly attack on Israel on October 7 and Israel’s ensuing military campaign in Gaza, have increased from Europe to the U.S. and beyond, to levels not seen in decades, according to major Jewish organizations.

Hamas and other militants abducted around 250 people in the attack and killed around 1,200, mostly civilians. They are still believed to be holding around 100 hostages and the remains of some 30 others. The war has ground on with little end in sight: the Hamas-run Gaza health ministry says Israel’s offensive in Gaza has killed more than 34,000 Palestinians, displaced around 80% of the population and pushed hundreds of thousands of people to the brink of famine.

The war has inflamed tensions around the world and triggered pro-Palestinian protests, including at college campuses in the U.S. and elsewhere. Israel and its supporters have branded the protests as antisemitic, while critics of Israel say it uses such allegations to silence opponents.

The launch of the Claims Conference campaign also comes days before Yom HaShoah — Israel’s Holocaust Remembrance Day — on Monday.

In one of the videos, Rubinstein reads out a hate post — only to juxtapose it with his personal testimony about his family’s suffering during the Holocaust.

“‘We have all been cheated, lied to, and exploited. The Holocaust did not happen the way it is written in our history books,'” he reads and then says: “That is a lie. The Holocaust happened. Unfortunately, way too many members of my family died in the Holocaust.”

Rubinstein then continues to talk about his own persecution as a Jewish child during the Holocaust.

While forced into the ghetto of Cernisvtsi, his family managed to obtain forged Polish identity documents, which were the only reason he and his mother were taken off the cattle train in 1941.

They fled and hid in several eastern European countries until the war ended in 1945. After that, they briefly went back to his hometown, only to find out that his father, who had been forced into the Soviet Red Army during the war, had been killed. They moved on to Amsterdam, where his mother married again, and eventually settled in Duesseldorf.

“I lived through the Holocaust. Six million were murdered. Hate and Holocaust denial have returned to our society today. I am very, very sad about this and I am fighting it with all my might,” Rubinstein says at the end of the video. “Words matter. Our words are our power. Cancel hate. Stop the hate.”

Even at his old age, Rubinstein, who calls himself an optimist, says he will continue fighting antisemitism every single day. And he has a message, especially for the young generation of Jews.

“Don’t panic,” Rubinstein says. “The good will win. You just have to do something about it.”
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islamabad — Pakistan on Friday witnessed the launch of its first lunar satellite aboard China’s historic mission to retrieve samples from the little explored far side of the moon in a technologically collaborative mission that signals deepening ties between the countries.

China’s largest rocket, a Long March-5, blasted off from the Wencheng Space Launch Center on Hainan Island at 09:27 UTC, ferrying China’s 8-metric-ton Chang’e-6 probe.

If successful, the uncrewed mission will make China the first country to retrieve samples from the moon’s largely unexplored South Pole, also known as the “far side” of the moon that is not visible from Earth.

Chang’e-6 will spend 48 hours digging up 2 kilograms of surface samples before returning to a landing spot in Inner Mongolia.

In 2018, China achieved its first unmanned moon landing on the far side with the Chang’e-4 probe, which did not retrieve samples. India became the first country to land near the moon’s South Pole in August with its Chandrayaan-3.

Chang’e-6 is carrying cargo from Pakistan, Italy, France and the European Space Agency.

According to the Institute of Space Technology (IST) in Islamabad, Pakistan’s lunar cube satellite named ICUBE-Qamar (or ICUBE-Q for short) will be placed into lunar orbit within five days, circling the moon for three to six months, photographing the surface for research purposes.

IST engineers say ICUBE-Q is also designed to “obtain lunar magnetic field data; establish a lunar magnetic field model and lay the foundation for subsequent international cooperation on the moon.”

IST developed the iCUBE-Qamar satellite in collaboration with the country’s space agency SUPARCO and China’s Shanghai University. Qamar, which means moon in Urdu, is the nuclear-armed South Asian nation’s first mission in space.

The iCUBE-Q orbiter has two optical cameras that will gather images of the lunar surface.

‘Milestone’

The mission’s launch from China was carried live on Pakistan state television.

Calling it a “milestone,” Prime Minister Shehbaz Sharif said it would help the country build capacity in satellite communications and open new avenues for scientific research, economic development and national security, according to a statement issued by the Ministry of Information.

The Pakistan-China friendship, Sharif said, has “gone beyond borders to reach space,” according to the official statement.

Beijing is one of Islamabad’s closest allies. Pakistan is home to the China-Pakistan Economic Corridor, a multibillion-dollar development project that is part of Beijing’s Belt and Road global infrastructure initiative.

Pakistan’s navy in late April launched its first Hangor-class submarine, built jointly with China, with a ceremony in China’s Wuhan province.

According to the Washington-based U.S. Institute of Peace, Beijing is Islamabad’s leading supplier of conventional and strategic weapons platforms. China is also the dominant supplier of Pakistan’s higher-end offensive strike capabilities, the report found.

Some information for this report came from Reuters. 
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