Tech (1050)
Morocco, in its pursuit of a digital transition program, recognizes the critical need for a digitally skilled workforce. The country has strategically partnered with experienced partners to address this challenge.
Morocco’s Ministry of Digital Transition and Administrative Reform on Tuesday announced a program contract with Maroc Numeric Cluster (MNC), a public-private entity, to enhance digital innovation. The contract was signed by Ghita Mezzour, Minister Delegate for Digital Transition and Administrative Reform, and Mehdi Kettani, President of MNC.
The program aims to bolster digital innovation by nurturing talent and aiding startups and SMEs. “This contract reflects the desire of both parties to strengthen the digital innovation ecosystem through several lines of action, including training and integration of talent, content production, dissemination of the culture of innovation, collaboration, and digital entrepreneurship, and support for the emergence of digital innovation projects in various economic sectors,” the Ministry stated.
Under this contract, MNC will undertake a pivotal role in training youth in ICT skills to ease their professional integration. The pilot phase targets 1,000 beneficiaries, with 734 already graduated and an anticipated integration rate of 72%.
The partnership will also promote startups via events, training, and collaboration with incubators, accelerators, professional associations, and partnerships. Regular monitoring, analysis, and studies will be conducted to identify trends and invigorate the sector.
These initiatives are part of Morocco’s new digital strategy, “Maroc Digital 2030”, succeeding the previous strategy that aimed to position Morocco as a leading digital and technology hub in Africa by 2025. The new strategy underscores the importance of talented, creative youth.
Samira Njoya
As 2023 concluded, numerous specialized companies and platforms are evaluating the capital invested in diverse ecosystems. This data holds crucial significance for the growth of the digital economy, particularly in the African tech ecosystem.
African fintech startups raised $852 million in 2023, a 56% decline from the record $1.9 billion secured in 2022, according to the 2023 edition of Partech Africa's Africa Tech Venture Capital report, published in January 2024. The number of deals also dropped by 48%, falling from 217 in 2022 to 113 last year.
Despite the decrease, fintech remains the most attractive sector for investors in Africa, accounting for 37% of all equity financing on the continent in 2023 and 24% of all deals. This is attributed to the sector's strong track record and continued relevance in addressing under-banking and promoting financial inclusion. Of the eight unicorns on the continent, seven operate in the sector, with only Jumia being in the e-commerce sector.
"Fintech plays a critical role in addressing infrastructural challenges in Africa. Beyond just being payment applications, these solutions are essential in enabling a wide range of ventures," the report said. "By establishing both local and cross-border solutions, and fostering key connections between individuals, businesses, and financial institutions, Fintech’s role remains integral to the ecosystem."
Despite the overall funding slowdown, the healthtech and agritech sectors saw growth in 2023. Healthtech funding rose 17% to $212 million, while agritech investments jumped 67% to $144 million compared to 2022.
Adoni Conrad Quenum
After numerous declarations, global tech giants are gradually deploying their investments in Africa. This time Google is investing in the development of top-tier infrastructure.
U.S. technology giant Google on Wednesday announced the opening of its first data center in Africa, located in Johannesburg, South Africa.
The facility, part of Google's $1 billion investment to boost Africa's digital transformation, is designed to support businesses on the continent with cloud computing resources needed to "evolve, innovate and compete in the global marketplace," according to a company press release.
"This marks our 40th cloud region globally, connecting Johannesburg to our secure global network," the release said, adding the center would offer Google Cloud services to businesses across Africa.
Google estimates Africa's internet economy could reach $180 billion by 2025, representing 5.2% of the continent's GDP. However, Google faces competition in the growing African cloud market. Rivals like Oracle, Amazon Web Services, and Microsoft already have a presence, while local players like Africa Data Centres are also vying for market share.
Adoni Conrad Quenum
Nigeria, like many other countries, faces persistent challenges when it comes to electronic fraud, particularly bank card fraud. To counter this threat to the economy, initiatives are currently being rolled out across the country.
The Central Bank of Nigeria (CBN), in partnership with the Nigerian Electronic Fraud Forum (NeFF) and the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN), is set to introduce a new feature aimed at improving the detection of potentially fraudulent transactions. This initiative, a response to the country’s increasing fraud incidents, will necessitate specific Know Your Customer (KYC) details for validating certain transactions.
Fasasi Sarafadeen Atanda, AMMBAN’s Chairman, stated that the technological development of this feature is nearing completion, with its activation slated for the first quarter of this year. Point-of-service terminals nationwide will prominently display this new feature, enabling the identification, reporting, and cancellation of suspicious transactions.
This measure is a reaction to a significant surge in fraud, as evidenced by data from the Financial Institutions Training Center (FITC). In the second quarter of 2023, Nigerian deposit banks reported fraud-related losses of 9.75 billion naira ($10.8 million), marking a 276% increase from the same period in 2022, when losses totaled 5.79 billion naira.
The ultimate objective of this innovation is to foster a more secure, transparent, and regulated financial ecosystem in Nigeria. By bolstering consumer trust in electronic financial services, it aims to stimulate healthy and robust sector growth.
Samira Njoya
Liberia's incoming president, Joseph Boakai, will prioritize youth when building on outgoing leader George Weah's digital technology initiatives to power economic growth, officials said. Weah, a former soccer star, launched projects during his term to leverage technology and promote entrepreneurship. The incoming president intends to take these efforts further, with a focus on empowering young Liberians through tech-driven opportunities.
Liberia’s newly inaugurated President, Joseph Boakai (photo), pledged to enhance the digital skills of over 10,000 young Liberians during his first address to the nation on Monday, January 29, at the Capitol Building. “In our quest to expand the economy, we will leverage Information Communication Technology (ICT) in creating jobs, especially for our youth. To achieve this, my Administration will train up to 10,000 young people in various digital skills in the first half of 2024. The Liberian middle-class goal must be a reality in the next 6 years,” Boakai declared.
This ambitious initiative aims to prepare young people for the digital age by bridging the country’s existing technology gap and ensuring that Liberians are competitive in the global marketplace. This project continues the digital initiatives of former President George Weah, which included the establishment of a national digital transformation project in partnership with the Liberia Telecommunications Authority (LTA), the construction of a national fiber optic network with Kenyan company CSquared, and the digitization of public services and modernization of the Post Office.
It’s worth noting that Liberia significantly lags in the digital field in Africa. According to the latest statistics from DataReportal, as of the start of 2023, the country had 1.80 million Internet users, a penetration rate of 33.6% for a population of 5.36 million. Additionally, the number of social media users was 642,100 in January, representing 12.0% of the total population. In terms of mobile connectivity, Liberia recorded a total of 4.20 million active cellular mobile connections at the start of 2023, equivalent to 78.4% of the total population.
Samira Njoya
Plagued by high youth unemployment, Kenya is turning to innovative technology solutions to equip its young workforce and bridge the skills gap. The challenge remains daunting, however, reflecting the complexities of the Kenyan labor market.
Kenya launched the National Skills Inventory (NSI) on Monday, January 29, in a government-led initiative to combat youth unemployment and connect young people with relevant jobs, both locally and internationally.
Backed by the Ministry of Labor and Social Welfare, the NSI aims to create a comprehensive digital database of skills available across the country. This data will be used to match unemployed young people with job opportunities that align with their qualifications and market needs.
"The digital skills database will support the government's skills migration agenda that is geared to ensure that surplus labor is henceforth exported to enhance the inflow of diaspora remittances," said Shadrack Mwadime, Labour and Skills Development Principal Secretary at the Ministry of Labor and Social Protection.
The NSI launch follows the formation of an Inter-Ministerial Committee dedicated to its development and ongoing management. This committee aims to establish a comprehensive framework for capturing and utilizing individual skill sets, contributing to the national target of reducing unemployment, which the International Labour Organization put at 4.9% in 2022.
Bilateral agreements signed with several European and Middle Eastern countries over recent years pave the way for smoother job placement and migration for skilled Kenyans. The ambitious goal is to export at least one million workers annually over the next five years.
By providing youth with a platform to showcase their skills and access international opportunities, the NSI is a significant step towards tackling Kenya's unemployment challenge. The initiative's potential to boost remittances and stimulate the national economy further strengthens its importance.
Samira Njoya
Fueled by tech ambitions, Nigeria rolls out initiatives with private partners to revitalize its economy and boost citizen empowerment.
Tech4Dev, a social enterprise promoting digital inclusivity in Africa, has launched "DigitalForAllChallenge 2.0," aiming to train two million Nigerians in basic and intermediate digital skills. Backed by the UK's Foreign, Commonwealth and Development Office (FCDO) and Nigeria's National Information Technology Development Agency (NITDA), the initiative targets youth, young adults, and civil servants across all 36 states and the Federal Capital Territory.
"The Digital for All Challenge is a free digital skill-building competition and program to increase digital literacy in Nigeria and ignite interest in obtaining digital skills and certifications using online platforms," stated NITDA.
The challenge unfolds in two stages: training followed by a competitive track. Participants need to pass a post-training assessment to enter the competition, consisting of national, regional, and a grand final stage. Over 150 million naira ($166,657) in cash prizes, laptops, tablets, and other rewards await winners.
DigitalForAllChallenge aligns with the Nigerian government's push for digital literacy, aiming to achieve a 70% rate by 2027 and cultivate three million tech talents. As Kashifu Abdullahi, NITDA Director General, highlighted, this initiative seeks to address both domestic and global talent needs, contributing to the global value chain.
Starting February 5, the program offers three tracks: young learners (8-15), young adults (16-45), and civil servants. This comprehensive approach aims to equip diverse cohorts with essential digital skills, empowering them to participate in the nation's digital future.
Samira Njoya
Nigeria is pushing ahead with plans to eliminate paper from its civil service by 2030, but the ambitious digitalization drive faces a major hurdle: a lack of necessary skills among government employees.
The Aig-Imoukhuede Foundation, a Nigerian organization championing public sector transformation, has partnered with Microsoft to bolster the digital skills of civil servants across the country.
Formalized on January 19 through the Wootlab Foundation, the collaboration supports Nigeria's ambitious goal of a tech-savvy public sector ready for the digital age.
"This partnership signifies our joint commitment to crafting impactful training programs that bridge the digital divide and drive positive transformations," said the Wootlab Foundation. "Together, we are embarking on an extensive training initiative that will redefine skill development and ensure a workforce well-equipped for the digital future."
This recent collaboration is part of a strategic initiative by OHCSF to ready the public sector workforce for the digital era. The initiative follows the implementation of an enterprise content management solution (ECMS), supported by the Aig-Imoukhuede Foundation, aimed at empowering all work processes. The partnership aligns with the federal government’s goal to train all civil servants in the country in digital skills.
Under this cooperation, the Wootlab Foundation will facilitate the provision of on-demand digital skills for government employees, enabling them to contribute to the digitization of vital public services and stimulate ongoing innovation within the civil service.
It’s noteworthy that Nigeria, through this initiative and others, aims to rank its civil service among the world’s top 20 by 2025 and achieve complete digitization by 2030.
Samira Njoya
In recent years, the Egyptian government has made significant investments in the digital sector. This substantial commitment testifies to the crucial importance of outsourcing in stimulating Egypt's digital exports and fostering its economic growth.
Egypt’s digital services export sector saw a significant increase in revenues in 2023, reaching $6.2 billion, a 26.5% rise from the previous year’s $4.9 billion, according to the country’s Minister of Telecommunications and Information Technology, Amr Talaat.
Speaking to the Egyptian Senate on Monday, Talaat attributed the growth to recent foreign investments, including agreements with 74 international and local firms to hire 60,000 outsourcing experts since November 2022. The government’s efforts to boost the number of self-employed workers in the outsourcing industry to 550,000 also contributed to the positive figures.
The investments are part of the Digital Strategy for the Outsourcing Industry 2022-2026, a government initiative launched in February 2022. The strategy targets four key areas: IT services, business process services, knowledge services, and engineering and R&D.
The initiative aims to triple digital export revenues to nearly $9 billion by 2026 and create over 34,000 jobs by 2025, aligning with the sector’s impressive performance. The sector recorded digital exports of $4.9 billion in fiscal year 2021/2022, a significant increase from the $3.6 billion in fiscal year 2018/2019.
Samira Njoya
Across Africa, concerns over slowing economic growth and over-reliance on commodities are driving a renewed focus on diversification. Governments are recognizing the urgency of implementing supportive policies, training programs, and financing initiatives to catalyze innovation and unlock new avenues for growth.
Chad Innovation Hub (CIH), a youth entrepreneurship incubator, and the National Agency for Investments and Exports (ANIE) have formalized a partnership aimed at fostering innovation, entrepreneurship, and sustainable development in Chad.
The strategic alliance, announced on Tuesday, January 23, seeks to enhance Chad's entrepreneurial ecosystem by promoting open innovation and stimulating projects in digital technology, the circular economy, corporate social responsibility, and green business models. The partnership will also focus on empowering women and young people, particularly in rural areas, ANIE said in a statement.
The memorandum of understanding between ANIE and CIH includes provisions for the effective implementation of the Sustainable Development Goals (SDGs) and the establishment of a close collaborative relationship to mutually promote the private sector and diversify the economy.
The collaboration aligns with the government's policy to support entrepreneurship in Chad, which recently led to the creation of an FCFA30 billion ($49.6 million) fund. The fund is designed to provide credit guarantees for entrepreneurs and finance key projects in sectors such as agriculture, livestock, and new technologies.
The agreement signals the start of a promising alliance that positions Chad on the international innovation stage. CIH, an award-winning organization, strengthens the belief that innovation and entrepreneurship are key drivers for a prosperous and sustainable future for Chad.
Samira Njoya
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Since 2020, African technology entrepreneurs have been struggling to access funds. The growth recorded since 2018 has been slowing down and investors are becoming more cautious.
African technology startups secured $1.8 billion in funding in 2023, a 40% decline from $3 billion in 2022, according to data from CB Insights' "State of Venture" report published January 4. The total represents 486 deals, down nearly 49% from 709 in 2022.
Africa's 2023 funding figure falls nearly as low as 2020's $1 billion (493 deals), a year heavily impacted by the COVID-19 pandemic. This decline reflects the relative underperformance of major tech ecosystems like Nigeria, Kenya, and Egypt, which typically attract the most investment and drive overall figures.
Nigeria, for instance, saw a sharp drop, with startups raising $224 million in 2023 compared to $531 million in 2022 and over $1 billion in 2021. This trend aligns with a global slowdown in startup funding, driven by rising interest rates at central banks worldwide.
"In the past 18 to 24 months, particularly due to rising interest rates in the United States and Europe, capital for African startups has significantly diminished. This has led to a scarcity of funds for these startups, many of which relied on this capital for growth and ongoing development. As a result, these startups have found themselves in precarious positions, necessitating cost structure reductions and subsequent staff layoffs," said Tamim El Zein, founder of Seedstars Africa Ventures, in an interview with RFI in November 2023.
Africa's 40% decline is lower than those seen in other regions with the global trend remaining concerning. Latin America saw a 56% drop to $3.3 billion, Europe a 45.25% decline to $48.4 billion, and Asia a 49.48% fall to $53.4 billion.
Adoni Conrad Quenum
Across Africa, a digital revolution is sweeping through, reshaping the aspirations and opportunities for a generation. Driving this transformation is the critical need for young people to be equipped with the skills and knowledge to thrive in the digital age.
The Congolese government officially initiated the construction of “Caria Tech Village,” a technology park, on Wednesday, January 17, in Kintélé. The park is envisioned as a hub for learning and development activities for young incubators and startups in Congo.
Léon Juste Ibombo, Minister of Posts, Telecommunications, and the Digital Economy, emphasized the project’s strategic significance in a world where the digital economy is central. He stated that Caria Tech Village would house the entire digital ecosystem and be built on the site of the former Union Africaine des Postes et Télécommunication.
The park, to be constructed over 2024 by Phone Control, a Tunisian company specializing in digital infrastructure, will be supervised by the Ministry of Digital Affairs and the Ministry of Scientific Research.
Upon completion, Caria Tech Village will provide high-quality training courses for young people, ranging from bachelor’s degrees to doctorates. It will also serve as a space for industry professionals to enhance their skills in innovative technologies. Beyond its training programs, the park will act as a dynamic platform for start-ups, aiding them in fully developing their projects and creating added value.
The project aligns with a government program dedicated to learning and practicing development activities for young incubators. This initiative aligns with President Denis Sassou N’Guesso’s vision: he declared 2024 as the year of youth in Congo.
Samira Njoya
The South African online marketplace Zandaux is eying the entire continent but, its initial expansion efforts are targeted towards an East African nation.
South African e-commerce platform Zandaux announced its entry into Kenya on Wednesday, marking its first step in a broader expansion across the African continent. The company aims to connect African suppliers with a vast regional market, fostering business development and unlocking growth opportunities.
"Anything that has a market in Kenya will have a market on the entire African continent," remarked Zandaux CEO Franck Obambi Ngatse. "On Zandaux, you can buy something from a factory in Mombasa and have it shipped to Kinshasa. The payment is only released to the seller after the product has arrived, and we have a robust tracking system in place for products from seller to buyer."
This expansion coincides with Zandaux's current pursuit of 3 billion Kenyan shillings ($18.5 million) in funding to fuel its continental operations. Kenya is seen as a strategic gateway to other African markets, capitalizing on its established e-commerce infrastructure and growing consumer base. Statista projects the number of e-commerce users in Africa to reach 520 million by 2024, highlighting the immense potential for platform growth.
"The future is there, but all the actors need to come together. The fintech brings payment solutions, and the governments make sure that the e-commerce is complete perfectly or even drop down some barriers, especially when it comes to input," Obambi Ngatse emphasized.
Adoni Conrad Quenum
Nigeria: Aboyeji teams up with Koschitzky-Kimani to launch $750,000 accelerator for African startups
The lack of access to finance continues to be a significant hurdle for Africa's burgeoning startup ecosystem, hindering the continent's economic development potential. Despite a vibrant and growing entrepreneurial landscape, many promising startups struggle to secure the investments they need to scale up and thrive.
Nigerian tech entrepreneur Iyinoluwa Aboyeji (photo, left), co-founder of Andela and Flutterwave, has joined forces with Mia von Koschitzky-Kimani (photo), another experienced technology player, to launch Accelerate Africa, a new initiative aimed at fueling the growth of startups across the continent. The announcement was made in an exclusive interview with Techcabal.
The project, backed by a $750,000 grant from the United States Agency for International Development (USAID), will provide support to startups in all 54 African countries. The first cohort, consisting of ten pre-seed and early-stage companies from various sectors, will participate in an intensive eight-week program.
Combining elements of business development, technology integration, financing, and community building, the acceleration program will take place in both Lagos and Nairobi. Its goal is to empower African start-ups to scale faster and more sustainably.
At the program's culmination, the participating ventures will have the opportunity to pitch their projects to investors, including angel investors with the capacity to inject up to $500,000 into promising initiatives.
Aboyeji and von Koschitzky-Kimani's vision for Accelerate Africa is ambitious. They hope to unlock the vast potential of Africa's entrepreneurial spirit and support a significant number of promising start-ups, particularly at a time when international accelerator support is waning.
"The big idea is to become the Y Combinator (YC) of Africa," Aboyeji said, referring to the renowned American accelerator. "We are looking for founders with great ideas and massive market opportunities. The impressive ones who would have gotten into YC but can't because YC is closing their doors to Africa, so to speak."
Samira Njoya