South Africa remains the best African start-up ecosystem, ahead of Mauritius, Kenya, Nigeria, and Egypt. Lagos is the only African city in the Top 100 of "start-up friendly" cities worldwide.
Fifteen African countries feature in the top 100 ecosystems conducive to the emergence and development of ecosystems worldwide, according to a report published by startup ecosystem map last May 30. To establish this ranking, the research firm focused on more than 30 indicators divided into three main categories.
The first category is quantity, which uses indicators like the number of start-ups, coworking spaces, accelerators, start-up-related meetings, etc. The second is quality, using indicators like total investment in start-ups, number, and size of unicorns, presence of R&D centers set up by major international technology companies, the presence of subsidiaries of multinationals, etc. The last category is the business environment, which is measured using indicators like Internet speed, R&D spending, tax rates applied to start-ups, availability of various technological services such as electronic payment and cryptocurrencies, level of corruption, etc.
The report, entitled "Global Startup Ecosystem Index 2023", reveals that South Africa (53rd in the world) has the best startup ecosystem in Africa, despite falling four places in the global ranking compared with 2022. The Republic of Mauritius (61st worldwide) occupies second place in Africa, ahead of Kenya (62nd worldwide), Nigeria (64th worldwide), and Egypt (67th worldwide).
They are followed by Ghana, Cape Verde, Senegal, Namibia, and Tunisia, closing the African top 10. The report also points out that five African countries have improved their overall ranking. Mauritius and Senegal made the strongest progress compared with the 2022 edition, gaining 10 places each. The two countries entered the Top 100 best start-up ecosystems in 2021 and 2022 respectively.
The biggest declines were recorded by Morocco, which dropped 14 places compared with 2022 to 93rd position worldwide this year, and Rwanda (-11 places). Uganda is the only African country to re-enter the index in 2023 after it dropped out of it in 2022.
The report also ranked 1,000 startup cities worldwide. Lagos (82nd worldwide) is the only African city in the Top 100. The Nigerian economic hub owes its ranking to its highly dynamic ecosystem, with over 400 start-ups, including unicorns Jumia and Flutterwave, and 35 active incubators.
The best-represented countries in the ranking of the 1,000 cities with the best start-up ecosystems in the world are Nigeria (5 cities), South Africa (4 cities), and Kenya (2 cities). Victoria (Seychelles) made the greatest progress, moving up 592 places to the 232nd position. It was followed by Port-Louis (+269), Dakar (+155), Tunis (+57), Cairo (+36), and Accra (+28).
Cassava is one of the most widely consumed foods in sub-Saharan Africa. It is easy to cultivate and can be processed into many things. It nevertheless faces threats that can be overcome with technology.
On Tuesday, June 6, smart farm management software provider FarmERP announced the deployment of its FarmGyan platform based on AI, machine learning (ML), and computer vision in Nigeria.
According to the provider’s release, the platform aims to boost cassava cultivation in the country to improve productivity, profitability, and predictability.
"FarmERP [...] brings a specialized focus on helping Cassava farmers by extending the crop life [...] in Cassava plantations up by 40% through its tech-enabled platform," the release said.
Nigeria's cassava industry is the largest in Africa. For several years, the country has been the world's leading producer of cassava, accounting for 21% of global output. However, cassava plantations face several challenges, including the proliferation of pests, the presence of diseases, and extreme weather conditions.
To solve these problems, the FarmGyan platform will digitize the growth path. It will also monitor plants and quickly identify weed infestation by using drone images and AI models.
The platform will also be able to detect crop and soil moisture, crop water requirements and irrigation, and manage diseases through satellite-based crop health monitoring tools. Overall, FarmGyan will contribute to effective and efficient crop management.
After Nigeria, the company will extend its services to other African countries, notably Angola and Ghana. The aim is to help as many stakeholders as possible to practice Agriculture 4.0 to achieve profitable and sustainable agribusiness.
Samira Njoya
The agreement was signed on the sidelines of the digital summit GITEX Africa, which gave several companies the opportunity to bag agreements.
On Wednesday, May 31, Hicham El Habti, President of Université Mohammed VI Polytechnique (UM6P), and Safia Faraj, CEO of French company Atos signed a collaboration agreement on the sidelines of digital summit Gitex Africa in Marrakech. The agreement aims to strengthen collaboration in the fields of research, innovation, and education, and to support the development of digital talents in Morocco and Africa.
"The two institutions will collaborate on research and development projects, as well as on the organization of scientific conferences or seminars, or the sharing of material and human resources [...] Atos will organize events, open houses, and training courses for UM6P students. It will also connect them with Internship and recruitment opportunities. Similarly, Atos employees will be welcomed at UM6P for engineering and management training courses," reads the press release issued on June 1.
The Moroccan university is multiplying its partnerships to establish itself as a reference in fields relating to digital transformation. With its Stargate incubator, the institution facilitates the emergence of start-ups in the country. In that context, thanks to this new partnership with Atos, it can help the Moroccan tech sector address the tech skills and talent gap.
Let’s note that during GITEX Africa, Atos, a leading digital transformation player in Africa, also signed agreements with Togo to implement a national electronic identification system.
Adoni Conrad Quenum
To grow and compete with their counterparts around the world, African businesses need stable, low-latency connectivity and digital tools to optimize their activities. Projects are being implemented to enable access to what they need.
Liquid Dataport, a subsidiary of connectivity company Liquid Intelligent Technologies, announced on Wednesday, May 31 the launch of its new fiber optic route linking Mombasa, Kenya, to Muanda in the Democratic Republic of Congo (DRC) via Uganda and Rwanda.
According to the release announcing the launch, this is the shortest route between East and West Africa and will reduce data transmission latency by 20 milliseconds.
“We have a significant number of wholesale, enterprise, and hyperscale customers along this route, and we fully support them in operating their global networks. The availability of our latest and shortest East to West route brings many proven economic and social benefits – from providing access to online educational resources to creating more jobs and driving the adoption of new technologies,” said David Eurin, CEO of Liquid Dataport.
This latest fiber optic route complements Liquid's previous achievement, completed in 2019, linking Dar es Salaam to Muanda on the west coast of the DRC via Zambia. It will bring more reliable and affordable broadband connectivity to over 40 million people who live and work in all the major cities along the route.
The partnership is part of Liquid Intelligent Technologies' "One Broadband Africa" initiative. The company is pursuing its strategy of conquering the African and global markets for broadband connectivity and digital services. In recent months, it has strengthened its presence in Africa by expanding into Nigeria, Egypt, and Algeria. On Thursday, May 25, the company signed an agreement with satellite telecom services provider Viasat to provide high-speed Internet connectivity services in West Africa.
According to Hardy Pemhiwa, CEO of Liquid Intelligent Technologies, this east-west axis will promote digital inclusion by bringing global traffic to the continent, but also by reducing the cost of broadband Internet access across the continent.
Samira Njoya
Nigeria, with its 218 million population, needs 363,000 doctors to reach the WHO’s recommended one doctor for every 600 residents. With the ratio becoming less attainable, authorities have decided to leverage the power of tech tools.
Last week, the Nigerian Federal government inaugurated NigComHealth, an e-health solution. The solution was developed in partnership with NigComSat, a Nigerian ICT and telecommunications company, Sawtrax, a Nigerian software company, and Ethnomet, a Canadian health technology start-up. The aim is to provide people, especially those in rural and remote areas, with better access to health care.
“The doctor-patient ratio in the country is getting worse, with a physician attending to more than 5,000 patients. This represents a stark contrast with WHO’s recommendation of one doctor to 600 patients. With 218 million people to cater to, Nigeria requires at least 363,000 additional doctors to meet this target,” which NigComHealth is expected to achieve, according to Professor Salahu Junaidu, the Chief of Staff to the Minister of Communications and Digital Economy.
For several years now, the country has been the hotspot for the tech revolution in Africa. In the health sector, the number of healthtech solutions is multiplying and increasingly becoming a viable alternative to people with low or no access to health services. The solutions contribute to the achievement of the third sustainable development goal, which aims to ensure health and well-being for all by guaranteeing, among other things, universal access to medical coverage and health services.
However, despite the efforts, e-health solutions are not yet accessible to most rural populations. According to the GSMA, Sub-Saharan Africa had a 28% internet penetration rate in 2020. In addition, Nigeria particularly has the highest internet exclusion index in the world, according to a study published by World Data Lab in 2022. According to the same source, about 103 million people (out of a population of about 218 million) are "Internet poor," meaning they cannot afford the minimin Internet bundle.
In that context, if no additional measures are taken, NigComHealth, seen by politicians as the tool to resolve the desperate health access issue, may be just another healthtech solution in the Nigerian tech landscape.
Adoni Conrad Quenum
In the digital era, data generated by internet users are raw materials for various multinationals. Restricting its misuse is a security issue, particularly in Africa where regulations are somewhat lax.
The Irish Data Protection Commission (DPC) announced on Monday (May 22), a €1.2 billion fine against Meta Platforms Ireland Limited. The fine was imposed over the violation of Article 46 (1) of the General Data Protection Regulation (GDPR) in relation to the unlawful processing and storage of European Facebook users’ data in the U.S.
Meta Platforms Ireland Limited is allowed five months to "suspend any future transfer of personal data to the United States," six months to stop "the unlawful processing, including storage, in the United States" of the transferred EU personal data. The Irish CPO's decision comes in the week marking the fifth anniversary of the GDPR, which became effective on May 25, 2018.
The decision issued Monday by the Irish regulator is the umpteenth in a series of fines that stems from a multitude of complaints filed, since 2011, by privacy activist Max Schrems.
It calls on African authorities to regulate the management of African users’ private data by multinationals such as Facebook, Amazon, and Google ... whose services are used by hundreds of millions of people on the continent.
The African Union Convention on Cybersecurity and the Protection of Personal Data adopted on June 27, 2014, which aims to protect personal data is yet to become effective. As of April 11, 2023, it was ratified by 14 countries. The last country to ratify it was Côte d'Ivoire, on March 8, 2023. As per Article 36, one more ratification is needed for the text to officially become effective.
Muriel Edjo
The digital economy is already disrupting the labor market in Africa, where a significant lack of basic, intermediate, and advanced digital skills still exists. To address this skills gap, educational institutions are exploring the educational segment. Additionally, some other companies are also getting involved, albeit for different purposes.
Since its inauguration in October 2021, Orange Digital Center (ODC) has trained 1,900 individuals, including 60% women, in digital skills in Madagascar, according to Frédéric Debord (photo), CEO of telecom operator Orange Madagascar. More than 600 of the learners from this digital skills acquisition center were professionally inserted, we learn. According to Frédéric Debord, the Malagasy-based ODC is the only one in the 15 similar centers across Africa to have achieved such performance.
The executive made those comments at the 12th edition of the Conference on Digital Transformation in Africa (ATDA), held on May 19-20, 2023 under the theme "Human Capital: Catalyst for a successful African digital ecosystem.” During this international meeting, Frédéric Debord called on African digital actors to invest in training nearly 650 million individuals in digital skills on the continent by 2030.
According to the International Finance Corporation (IFC), more than 230 million jobs will require digital skills by 2030 in sub-Saharan Africa, which will translate into nearly 650 million training opportunities. The institution points out that digital skills will be among the seven most important skills in the future. Yet the current workforce does not have an adequate supply of these skills, and the gap between supply and demand, which is larger in sub-Saharan Africa than in other regions, is likely to grow.
For now, African education systems are not being reformed fast enough to take those realities into account. However, private training organizations are already moving to meet the needs with fee-based training. Sometimes, the trainings are free, thanks to investments made by companies as part of their social commitment.
For instance, under its corporate responsibility, Orange has deployed 42 women digital centers, in addition to its ODCs. The centers have helped train more than 10,000 unqualified and unemployed women in digital skills. The group has also deployed 240 Digital Schools in Madagascar, and more than 400,000 students and teachers are benefiting from the program, which aims to improve the quality of education, promote equal access to digital education and encourage the use of digital tools in schools.
Over the past five years, Kenya has made significant progress in the ICT field. The country is now a digital hub attracting several multinationals. It still wants to consolidate that position.
On Wednesday, May 10, Kenya signed a partnership agreement with Venom Foundation, a foundation specializing in crypto development and licensed by Abu Dhabi Global Market (ADGM), an international financial center and free zone located on Al Maryah Island, Abu Dhabi, United Arab Emirates. Under the agreement, a state-of-the-art hub dedicated to the creation of new blockchain and Web3 applications in Africa will be established in Nairobi.
"The Kenya Blockchain Hub will provide essential tools and resources to support African nations in building a robust foundation for digital transformation. By implementing blockchain-based solutions, we aim to promote transparency, efficiency, and trust throughout the continent. [...] The benefits of this partnership will extend both nationally and globally, improving lives and unlocking potential," the Venom Foundation tweeted.
Blockchain is a storage technology that keeps track of a set of transactions in a decentralized, secure, and transparent manner. It offers high standards of transparency and security, as it operates without a central control body. It can be used in various sectors, including finance. This partnership demonstrates the growing interest that blockchain and related technologies are gaining in Kenya. Global cryptocurrency exchange Binance reports that about 8.5% of Kenya's population (4.25 million people) own digital currencies. This growing craze is currently driving the government's desire to introduce a 3% tax on digital assets in the next fiscal year.
Although there is no national strategy on blockchain and related services yet, the market is growing and changing. The Kenyan government, aware that it cannot curb people's adoption of new technologies because it still lacks the right regulatory framework, has taken security measures by developing a Sandbox through which new technologies, software, and other services can be tested in a safe environment before being made available for consumption.
Before the public initiative with Venom Foundation, an almost similar private initiative had already taken shape in October 2022. That month, the Swiss-based nonprofit NEAR Foundation announced the launch of the Regional Blockchain Hub in Kenya in partnership with Sankore, a NEAR Foundation guild based in Kenya. The Kenya Regional Hub's mission is to accelerate blockchain innovation, education, and talent development across Africa.
Samira Njoya
Competition is intensifying in Africa's rapidly growing data center market. Both local and foreign companies are increasing their investments in infrastructure to meet the rising demand for cloud services across the continent.
An agreement was signed on Monday, May 8, to secure land for the construction of a large-scale data center in Egypt. Khazna Data Centers, a company specializing in data center construction and operations based in Abu Dhabi, has partnered with the Egyptian ICT company, Benya Group, to carry out the project. The agreement was signed by Ahmed Mekky, CEO of Benya Group, Hassan Al Naqbi, CEO of Khazna Data Centers, and Amr Aboualam, chairman of Maadi Technology Park.
Under the agreement, Khazna Data Centers and Benya Group will build a $250 million data center at Maadi Technology Park in Cairo. The center will have a capacity of 25 megawatts (MW) that is expected to double to 50 MW as expansion plans are implemented. The goal is to meet the region's underserved data markets. Construction works are expected to begin later this year and be completed within three years.
The new agreement marks Khazna’s entrance into the Egyptian market. The company plans to expand into three other MENA markets, including Saudi Arabia, Kuwait, and Morocco.
According to Ahmed Mekky, Khazna's expansion in Egypt "will contribute to attracting more investments for business sectors involving intensive operations, supporting cloud computing and content system operators” and “encourage major commercial companies to join these giant digital clusters that rely on the latest cloud computing applications, digital technology, and big data."
Samira Njoya
Lillian Barnard has been the managing director of Microsoft South Africa since 2019. Kalane Rampai will replace her.
Microsoft appointed South African Lillian Barnard (photo) as president of Microsoft Africa. The US tech giant announced on May 2.
Barnard has been working in the ICT industry for more than 25 years. She has held local and international leadership positions at companies such as IBM and Vodacom before becoming the CEO of Microsoft South Africa in 2019. She held the position since and will now be replaced by Kalane Rampai.
The appointments align with Microsoft's digital transformation efforts in Africa. The tech behemoth opened its Africa Transformation Office (ATO) in November 2021 and put it under the leadership of Nigerian Kunle Awosika. Microsoft's investments in Africa include digital infrastructure, connectivity, training, cybersecurity, cloud, small and medium enterprises (SMEs), and startups. According to an International Data Corporation (IDC), Microsoft and its partner ecosystem will spend about $3.7 billion in Africa on services and products over the next three years.
“As African organizations of all sizes, and across every sector, pivot and adapt to changing business and customer needs, they are looking for partners who can accelerate their agility, flexibility, and competitiveness, while also cutting costs and driving efficiencies. I am deeply passionate about unlocking the growth potential, using technology to deliver real impact for businesses, communities, and economies across the continent,” says Barnard.
Isaac K. Kassouwi
He has over 12 years of experience in various fields such as humanitarian aid, finance, and entrepreneurship. With Naledi Services, he supports SMEs and start-ups in their digitization process.
Patrice Binwa Aganze (photo) is a Congolese entrepreneur who graduated from the University of Goma in 2011 with a degree in finance and financial management services. He also holds certificates of Professional Competence from Trust Merchant Bank and HavardX. He is renowned as the founder and CEO of tech company Naledi Services.
The company was founded in DR, in 2014. It develops custom web and mobile apps, and offers and maintains security systems, among other things, to help entrepreneurs in their management tasks.
"Naledi Services was created to provide solutions that improve the management of SMEs and startups. Our slogan says it best: “Think IT, Get IT”. We have noticed that many people start their businesses with the buzz around entrepreneurship, but the vast majority of Congolese SMEs do not have management tools adapted to their business," said Patrice Binwa Aganze on what prompted him to create the company, during an interview with TechCabal on May 2, 2023.
The digital solutions he provides SMEs and startups include Reflet, a store management software that offers the possibility to create loyalty programs to reward customers when they visit points of sale. There is also Akiba, a savings management software designed for microfinance institutions and establishments.
Naledi Services is also a communications agency that offers its clients advertising, media, print, marketing, press, and public relations management. It also manages professional and leisure events. To date, Naledi Services has 2,351 active users and has worked with over 375 SMEs and NGOs.
Its founder, Patrice Binwa Aganze, is a UN Capital Development Fund Business Development Support Expert since 2020. He entered the professional world, in 2009, by joining Radio Kivu One as a columnist. At the same time, he was working for APROFIME (Action pour la promotion de la fille-mère) as a senior accountant. He was also a customer service agent for Trust Merchant Bank from 2013 to 2014.
Melchior Koba
In recent months, various accusations have been leveled against social media giants in Africa. This could take another turn with the birth of an African union of moderators.
On the sidelines of labor day, last May 1, more than one hundred and fifty employees of subcontractors of Meta, OpenAI, or ByteDance met in Nairobi, pledging to create the first African union of content moderators, several media outlets reported.
The new union aims to address issues that these workers regularly complain about, including poor working conditions, pay that is sometimes less than $2 an hour, and the impacts of content moderation on their mental health.
"There have never been more of us. Our cause is right, our way is just, and we shall prevail. I couldn’t be more proud of today’s decision to register the Content Moderators Union," said Daniel Motaung, a former content moderator who was fired after he decided to register a content moderators’ union.
The unionization efforts began three years ago after several contested terminations, including that of Daniel Motaung employed by Sama, the company responsible for Facebook content moderation in East and South Africa since 2019.
Another issue that led to the creation of the union is the low budget dedicated to “the rest of the world.” In 2021, a Wall Street Journal investigation found that Meta's Facebook was spending 87 percent of its disinformation resources in the United States and Western Europe at the time, leaving the rest of the world vulnerable to the dangers of misinformation.
By setting up the African Union of Moderators, the professionals who work or have worked for Facebook, TikTok, or ChatGPT hope to give workers more bargaining power, which can translate into higher wages, better working conditions, and more benefits.
Samira Njoya
In Africa, the lack of financial resources is not the only factor that affects access to education. The social environment can sometimes also be an obstacle. In those conditions, the well-directed use of ICT tools can address the issue.
ICT tools can be beneficial in many ways for children’s education, according to the World Bank. The international institution makes this assumption based on the experiment it facilitated, between 2018 and 2020, in the States of Kano and Jigawa, in Northwest Nigeria. The experiment involved 9393 rural households whose children aged 6 to 9 and their parents were subjected to two digital learning approaches. The approaches led to a 42% drop in the nonenrolment rate.
The baseline sample selected by the World Bank included 2,335 households in 32 communities that received only aspirational videos for parents to change their mindset and wish for better for their children. Also, 2,345 households in 32 communities received aspirational videos, and 40% of them also received a smartphone with educational content. 4,713 households in 64 communities served as a control group.
The results, documented in the “Improving Enrollment and Learning through Videos and Mobiles Experimental Evidence from Northern Nigeria” policy research paper demonstrate that aspirational videos alone reduced girls' aspirations to marry at the ages of 15 to 18. The videos had the greatest impact on the girls' parents. In households that received the aspirational videos and the smartphone, children's literacy and numeracy skills improved by 0.46 points and 0.63 points, respectively, compared to the control group.
According to the World Bank, no evidence of heterogeneous effects by gender was found overall, "highlighting the potential of edtech to also effectively reach girls in conservative settings, where girls' seclusion or a strong bias towards boys’ education may prevent girls from accessing formal schooling."
"Our heterogeneous analysis by gender shows that the interventions worked for both girls and boys and that the magnitude of treatment effects across gender were generally similar for the main outcomes (school enrollment, and literacy/numeracy skills),” the research paper informs.
Social pressure, a barrier to education
The research reveals that since smartphones are often used by multiple household members in low-resource settings, the resources provided for the experiment improved the literacy and numeracy skills of older, non-targeted siblings, reduced early parenthood among adolescents living in targeted households, and reduced early labor market entry.
For the World Bank, this is bonanza. In its 2019 Reading and Access Research Activity report, the institution revealed that northern Nigeria was significantly behind the national average in terms of education. Less than 3 percent of second graders in public elementary schools could read Hausa text with 80 percent or better comprehension. In the northwest, only 29 percent of women aged 15-49 and 59 percent of men were literate. Only 40 percent of 30-34-year-olds were educated in the northeast and northwest zones, compared to 90 percent in the southeast and southwest regions of the country.
The study believes the situation in the northwest is due to the strong adherence of the population to traditional norms. The formal legal institution of Sharia law, which applies in most northern states and covers social, civil, and criminal matters, has reinforced social norms that encourage early marriage among adolescents and thus early pregnancy. All of this represents additional barriers to education. The emergence of the militant terrorist group Boko Haram, which translates to: "Western education is forbidden," has created an additional barrier to school enrollment and attendance in the north of the country.
According to the World Values Survey 2017-2021 cited by the World Bank, 42 percent of respondents in Nigeria believe that college is more important for a boy than a girl and 41 percent believe that preschoolers suffer when mothers are employed. These norms contrast with those observed in other countries such as Kenya, where the proportions of the population holding these views are 18% and 23% respectively.
Over the past five years, financial support for African technology startups has increased. Confidence in local innovators continues to grow and attract investors who are aware of the opportunities in the African digital economy.
Launch Africa is one of the most active investors in the African startup ecosystem, according to Africa: The Big Deal. Since launching operations in mid-2020, the pan-African venture capital fund has invested more than $31 million in 133 deals, averaging more than one deal per week. The check size of most of its deals ranges between $100,000 and $300,000, with a median check of $250,000.
So far, it has focused on 22 countries. Startups in four countries in particular Nigeria, South Africa, Kenya, and Egypt have alone attracted $21 million of its overall investments (in 89 deals).
Five other markets have attracted more than $1 million. They are namely Ghana, Senegal, and Côte d’Ivoire (in West Africa) as well as Tanzania and Tunisia. The investment team also went off the beaten path by identifying investments in often overlooked countries such as Togo, Sudan, and Angola.
Fintech was the sector in which Launch Africa invested the most with 42 deals (32%) valued at $11 million (36% of its overall investments) across 13 markets. In Nigeria, fintech attracted 13 deals.
Other sectors that attracted heavy Launch Africa’s investments were marketplaces, logistics, big data, and healthtech, each of which attracted between $3 million to $4 million in 15 to 20 deals. Transactions in marketplaces, logistics, and big data were made in about 10 markets. On the other hand, support for healthtech focused on 5 markets, with 7 transactions in South Africa.
Muriel Edjo