Top 3 tech, startup and sustainability stories of the week, 10th

This week’s stories come from France, South Africa and the UK, covering tech, startup and sustainability

1-French tech start-up bankruptcies to go up

A survey published on Tuesday reveals that bankruptcies in France’s tech start-up industry to increase, which could challenge President Emmanuel Macron’s vision of Paris as a leading tech hub in Europe and a key driver of the country’s economy. During his first term, Macron highlighted Station F in Paris as a symbol of France’s growing tech industry, and France’s AI summit in February secured 110 billion Euros in investment pledges.(By the way, I have a story here about France’s startup efforts using La French Tech)

However, research firm ScaleX Invest reported that French tech start-ups are increasingly facing bankruptcy, amid concerns over a global economic slowdown impacting financial markets. I read this story at Reuters and the survey found that 10.4% of the 1,487 start-ups analyzed were at high risk of insolvency, with the number of bankruptcies and insolvency procedures surpassing the total of new Series A funding rounds. One example is Ynsect, which filed for a safeguard plan last year and uses robotics to produce insect-based ingredients.

ScaleX Invest’s COO, Edouard Thibaut, pointed out that insolvency is increasingly affecting more established companies. On average, companies in insolvency had raised 32.5 million euros ($35.4 million), twice as much as previous years, but still failed. Thibaut explained that tighter funding conditions and decreasing valuations are making it harder for even well-funded scale-ups to access capital.

French tech start-up bankruptcies to go up

2-South Africa removes luxury tax on entry level smartphones

South Africa plans to eliminate the luxury tax on smartphones priced below 2,500 rand ($136.37) starting April 1, aiming to boost digital access for low-income households, the National Treasury announced.

Currently, smartphones are subject to a 9% ad valorem excise duty. However, from April 1, 2025, this tax will only apply to devices costing more than 2,500 rand at the time of import, according to the treasury’s budget statement.

The government expects this change to make smartphones more affordable for lower-income consumers and promote digital inclusion, according to story at Reuters.

The decision complies with South Africa’s strategy to phase out 2G and 3G networks by December 31, 2027, to allocate more bandwidth to faster 4G LTE and 5G services. Critics have warned that shutting down older networks could deepen the digital divide, as many low-income individuals, particularly in remote areas, may struggle to afford newer smartphones.

Communications Minister Solly Malatsi previously told Reuters that the excise duty contributes to the high cost of smart devices and that he had been in discussions with the treasury to reduce these costs.

South Africa removes luxury tax on entry level smartphones

3-Liverpool FC to counteract product carbon footprint with carbon removal credits

Liverpool Football Club (LFC) teams up with 1PointFive, a subsidiary of Occidental (Oxy) specializing in Direct Air Capture (DAC), to introduce fan merchandise whose carbon footprint is offset through DAC-based carbon credits.

I read this story at ESGtoday and LFC stated that this initiative aligns with its sustainability strategy, The Red Way, launched in 2021 to reduce the club’s environmental impact. The strategy sets ambitious targets, including cutting operational carbon emissions by 50% by 2030, achieving net zero by 2040, and ensuring carbon-neutral merchandising from 2030 onward.

As part of this collaboration, LFC will assess the total emissions generated from product manufacturing to distribution and purchase an equivalent amount of carbon dioxide removal (CDR) credits from 1PointFive.

Ben Latty, LFC’s Chief Commercial Officer, emphasized the club’s commitment to sustainability:
“Partnering with 1PointFive enables us to explore cutting-edge carbon removal solutions, leveraging expertise to support our goal of halving operational emissions by 2030 and reaching net zero by 2040.”

DAC technology, recognized by the International Energy Agency (IEA) as a crucial carbon removal solution for achieving net-zero emissions, extracts CO2 from the atmosphere for use or permanent storage. According to the Intergovernmental Panel on Climate Change (IPCC), limiting global warming to 1.5°C will require large-scale carbon removal, with DAC projected to play a major role in this effort.