In recent years, Africa has struggled to attract the necessary capital to strengthen its technology sector. However, upcoming investments are expected to further bridge the digital divide across the continent.
U.S. payments giant Mastercard (MA.N) and the African Development Bank (AfDB) announced a wide-ranging partnership on Friday to bring digital access to 100 million people and businesses across Africa over the next decade.
The initiative, dubbed the Mobilizing Access to the Digital Economy (MADE) Alliance: Africa, was unveiled during the U.S.-Africa Business Forum hosted by the U.S. Chamber of Commerce.
"Across Africa, people are driving new growth and opportunity, and Mastercard wants to support their success," said Michael Miebach, Mastercard CEO. "This Alliance builds on the innovations and investments we are already making with partners in 45 countries to enhance Africa’s digital infrastructure and accelerate inclusive growth."
The AfDB will dedicate $300 million to support the alliance's programs. These funds will be used to bolster digital infrastructure and incentivize ecosystem players to improve digital access. Mastercard, in turn, will focus on registering 15 million users on its Community Pass platform within five years. To achieve this, they will develop interoperable digital infrastructure to facilitate participation from various stakeholders within the digital ecosystem.
The initial phase of the project will prioritize the agricultural sector and empower women. A pilot program launching this year will target three million farmers in Kenya, Tanzania, and Nigeria. Working with local banks, the program will provide these farmers with digital identities and access to high-quality seeds and agricultural inputs. The alliance plans to expand its reach to Uganda, Ethiopia, Ghana, and other African regions.
This project aligns with the digital innovation investments announced by U.S. Vice President Kamala Harris during the forum. These initiatives aim to provide large-scale digital access across Africa, a move that comes amidst a decline in foreign investment on the continent. According to the United Nations, foreign direct investment in Africa dropped from $80 billion in 2021 to $45 billion in 2022.
Samira Njoya
The solution was developed to revolutionize the African e-commerce sector and help platforms reach their full potential.
Dukka is a fintech solution developed by a Nigerian startup. It allows users to automate daily operations through its web and mobile platforms. Founded in 2020 by Keturah Ovio and based in Lagos, the startup has raised $1.5 million to support its growth.
The solution offers an app available on iOS and Android, which has already been downloaded over 50,000 times according to Play Store data. Upon installation, users can create an account and gain access to a suite of services.These include inventory management, generating electronic invoices and receipts, accepting any form of digital payment chosen by customers, and accessing simple accounting tools.
"Be it a solopreneur, or a mid-size business with staff and multiple locations, Dukka’s technology turns anyone into a merchant. [...] Our ecosystem allows anyone to pay and be paid, manage inventory, track sales and expenses across one or multiple locations, gain micro insights on business performance, and sell online. Consumers are able to securely discover, shop, and spend on vetted merchants," Keturah Ovio told Disrupt Africa in February 2024.
Dukka aims to establish an entire ecosystem to facilitate the growth of e-commerce. This goal aligns with broader trends across the African continent, where startups are increasingly thriving. According to Partech Africa data, e-commerce startups attracted $298 million in equity funding through 79 deals in 2023. Notably, this figure ranks second only to the fintech segment, which raised an impressive $852 million across 113 deals.
"We’ve seen over 100,000 users onboarded onto our platform, with over 90,000 users of our software in Nigeria. We beta-launched our payments infrastructure solution in the second half of 2023 to a couple of hundred customers who really helped us define and figure out our pricing model and refine our monetisation strategy," added Keturah Ovio.
Adoni Conrad Quenum
Bien qu’elle ait passé de nombreuses années aux Etats-Unis, elle reste très attachée à son pays, le Nigeria. Elle souhaite contribuer au développement de l’Afrique en créant des solutions technologiques qui facilitent l’accès aux services financiers pour tous sur le continent.
Fara Ashiru Jituboh (photo) est une informaticienne et une entrepreneure nigériane. Elle est la fondatrice et la présidente-directrice générale d’Okra, une start-up financière ouverte qui permet aux entreprises et aux développeurs du continent africain de créer des solutions financières innovantes.
Créée en 2020, Okra facilite l’interconnexion des comptes financiers des particuliers avec leurs applications préférées, tout en offrant aux entreprises un accès sécurisé aux données financières et aux paiements grâce à une intégration unique. Cette plateforme regroupe diverses institutions financières, y compris des banques.
La start-up sert de pont entre les entreprises, les institutions financières et les utilisateurs au sein d’un écosystème financier unifié et inclusif. L’objectif de l’entrepreneure et de son associé David Peterside, à travers cette entreprise, est de numériser les services financiers en Afrique.
Fara Ashiru Jituboh a grandi aux Etats-Unis. Elle est diplômée de la North Carolina Agricultural and Technical State University où elle a obtenu en 2010 un bachelor en informatique. En 2014, elle a cofondé la start-up Shixels Studios, une entreprise de développement de logiciels, dont elle a été la directrice technique jusqu’en 2019.
Après l’obtention de son diplôme, Fara a travaillé comme analyste et développeuse d’applications chez JP Morgan Chase de février à juin 2011. Elle a également été ingénieure logicielle pour diverses entreprises, dont ImageQuix, GottaPark, Digital Additive, Dorsata et Pexels. En 2019, elle a travaillé comme consultante chez Canva qui venait d’acquérir Pexels.
Melchior Koba
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Zimbabwe has granted Starlink a license to operate in the country, President Emmerson Mnangagwa announced on May 25.
The move aligns with Zimbabwe's Vision 2030, focusing on innovation, science, and technology.
The license aims to enhance internet access and support Zimbabwe's technological and economic goals.
As an experienced entrepreneur, he has demonstrated his skills and expertise in the information technology and services sector. He has led ambitious projects and provides innovative solutions to the current challenges facing Africa.
Chisepo Chirwa (photo) is a Zambian computer scientist and entrepreneur. He is the co-founder and CEO of Bosso, a startup leveraging technology to facilitate construction.
Founded in 2022, Bosso offers an online platform where future homeowners can find all the products and services needed to build their homes. By partnering with manufacturers, hardware stores, developers, and contractors, Bosso aims to make housing more affordable in Africa.
The company also collaborates with financial institutions to help clients secure funding. It provides several options, including "buy now, pay later," traditional mortgages, and a "save now, build later" approach.
Before Bosso, Chirwa co-founded the mobile application Z’POS in 2016, which allows users to record their business transactions to easily track their company's performance. Initially the startup's COO, he served as CEO from 2018 to 2019.
Chisepo Chirwa holds a bachelor's degree in computer science from the University of Greenwich, London, earned in 2012. He was awarded the Mandela Washington Fellowship in 2021, completing business management training at Clark Atlanta University.
Between 2012 and 2015, Chirwa was a network marketing professional with Forever Living Products International Company. There, he established distribution and sales teams across Southern Africa for various health and beauty industry products.
Melchior Koba
Investment commitments in the digital sector are crucial for African development. With its vast underserved population, Africa can greatly benefit from enhanced digital connectivity. These investments address critical barriers like affordability and adoption, fostering an inclusive digital society.
The International Telecommunication Union (ITU) announced, on May 27, $4.8 billion in new investment commitments to boost global connectivity. This brings total pledges through its Partner2Connect Digital Coalition (P2C) to $50.96 billion, nearing its $100 billion target for 2026.
The announcements were made at the World Summit on the Information Society (WSIS)+20 Forum in Geneva. The new pledges leverage artificial intelligence (AI) to enhance digital access and inclusion.
"Closing the digital divide requires a team effort, and today we scored a huge win for global connectivity," said ITU Secretary-General Doreen Bogdan-Martin.
Key commitments include $106 million from Elle International to improve digital connectivity for 20 million women and girls in South Africa and a new pledge from Microsoft to prioritize AI projects that include people with disabilities, among others.
According to the ITU, approximately 5.4 billion people (67 percent of the world’s population) were using the Internet as of 2023, leaving 2.6 billion people still offline. This statistic underscores the significance of ongoing investments in digital connectivity, particularly in regions like Africa. With a substantial portion of the global population still disconnected, initiatives aimed at increasing digital inclusion are crucial for fostering a more inclusive digital society.
Hikmatu Bilali
Bilateral relations between Italy and Tunisia date back to the 1980s. Over time and with the evolving global context, the two countries have successfully expanded their exchanges in various fields. They now aim to extend this cooperation to the fourth industrial revolution.
On Monday, May 27, Italy and Tunisia declared their commitment to intensifying collaboration in the digital realm. This new phase emphasizes the promotion of economic and industrial collaboration initiatives in artificial intelligence (AI) and digital transition research. A memorandum of intent was inked by Adolfo Urso, Italy’s Ministry of Enterprises and Made in Italy (Mimit), and Nizar Ben Néji, Tunisia’s Minister of Communication Technologies.
According to the Tunisian Ministry of Communication Technologies, this announcement mirrors a mutual aspiration to bolster economic and industrial cooperation initiatives, boost investments, and foster joint ventures between Tunisian and Italian firms via business forums, seminars, and workshops. These events are organized with the participation of governmental institutions and the backing of associations and organizations representing entrepreneurs.
The ministry further explained that this new phase stems from a mutual interest in fostering bilateral cooperation for technology transfer. This is achieved through the exchange of experiences and knowledge in research, innovation, and skill development. The shared goal is to facilitate and implement projects in the public, private, and joint sectors, incorporating stakeholders from both nations in the context of applying AI to industry and related research sectors.
This new commitment for digital cooperation follows a previous agreement on September 29, 2023. On that day, the two nations, represented by Tunisia’s National Cybersecurity Agency (ANCS) and its Italian equivalent, signed a memorandum of understanding on bilateral cooperation in cybersecurity and digital trust services. This agreement aimed to intensify the exchange of experiences and expertise between the two institutions, develop specialized skills to safeguard cyberspace, ensure digital sovereignty, and enhance response speed and vigilance levels to effectively identify and address cyber risks.
Italian Minister Adolfo Urso also announced the establishment of a center dedicated to sustainable development in Tunisia, in partnership with Italy and the United Nations Development Programme (UNDP). He described the center as an opportunity to draw in expertise and investment, contributing to inclusive growth and enhancing the quality of services provided to institutions and citizens. According to Urso, this multilateral platform can serve as a catalyst for the development of AI technology and its multiple applications at both national and cross-border levels.
To assist African entrepreneurs in developing their businesses on the continent, both legally and administratively, two tech entrepreneurs have developed a tailored solution.
Legafrik is a legaltech solution developed by an Ivorian startup, providing users in several countries across the continent access to legal services via its web platform. The startup, based in Abidjan, was founded in 2017 by Youssouf Ballo and Daouda Diallo.
"Our goal is to make basic legal services accessible to as many people as possible in the OHADA [Organisation for the Harmonization of Business Law in Africa] countries. Today, there is a lot of talk about financial inclusion, but I think it's also important to talk about legal inclusion. Our mission is to allow everyone to access legal services at very affordable rates," the startup explains.
Legafrik does not have a mobile application. Users need to access the startup's website through a browser. They must then click on the "client access" button in the upper right corner to reach the login page and then sign up.
Once the account is created, users have access to a workspace from which they can kick-start various services and track their progress. Legafrik offers services including company creation in several African countries, assistance with opening bank accounts, debt recovery, company domiciliation, as well as license and administrative approvals.
Since its launch, the startup has supported more than 7,000 entrepreneurs and completed over 20,000 legal and administrative formalities. In addition to Côte d'Ivoire, Legafrik operates in Benin, Morocco, Senegal, DRC, Burkina Faso, Guinea, Togo, and Cameroon.
Adoni Conrad Quenum
Boasting a youthful population, Africa is experiencing a boom in its startup industry. Digital innovations are flourishing, with countries like Nigeria and Kenya at the forefront of this new economic driver. This has fostered a technically advanced environment, albeit one with some lingering weaknesses.
Africa's innovative ecosystem has seen explosive growth over the past decade, according to the International Trade Center (ITC). In 2010, the continent had just a handful of tech hubs, essential support structures for young, resource-constrained businesses. By 2021, that number skyrocketed to 1,031, a 60% increase from the 643 hubs recorded in 2019. The ITC attributes this boom, at least in part, to the COVID-19 pandemic, which accelerated digitization across Africa.
Nigeria, South Africa, and Kenya Lead the Way
The report, "Tech Hubs in Africa, accelerating start-ups for resilient growth" (3rd edition), reveals that Nigeria leads the continent with 164 tech hubs, followed by South Africa (96) and Kenya (90). Interestingly, 53% of African tech hubs prioritize community building, while only 45% offer business support programs.
Eight Models of Support
The ITC categorizes tech hubs into eight distinct models based on their business models and services. Accelerators provide intensive, cohort-based programs with mentorship. Incubators offer early-stage startups resources like training, mentoring, and sometimes funding. Innovation centers foster creative ideas and help entrepreneurs build their businesses.
For hands-on creation and testing, hackerspaces, makerspaces, and fab labs offer access to equipment, tools, and skills development. Coworking spaces provide physical workspaces that boost productivity, collaboration, and networking. Venture builders help high-growth companies access resources for rapid expansion. Tech parks cluster tech companies to stimulate innovation and interaction. Finally, venture capital firms offer capital, mentorship, and access to new technologies.
Spécificités
Among the various hub types, incubators are the most prevalent. However, access to local venture capital remains a significant hurdle.
Source : ITC
Training and networking events are the most commonly offered services, with financing being a weaker area.
Source : ITC
Specialization for Impact
Many tech hubs are moving away from a one-size-fits-all approach. By specializing in specific demographics or sectors, they can optimize their support. Over half (52%) of hubs target specific sectors in their programs, with agriculture (22%), fintech (17%), and e-commerce (11%) leading the pack. These sectors are not only highly active in terms of investment and startups, but also offer immense opportunities for social impact.
Gender Focus
Many hubs also prioritize supporting specific populations. While many cater to various groups, young people and students are the most common targets, followed by female founders and women in general.
Source : ITC
Challenges and the Road Ahead
The COVID-19 pandemic forced 73% of tech hubs to close their physical locations in 2020. While the remaining 27% adapted with strict safety protocols, the closure significantly impacted platform revenue, leading to the closure of 8% of hubs. Many transitioned to remote training models, but financing remains the biggest challenge. The ITC report emphasizes the need for sustainable funding models, potentially through grants or external support. Additionally, favorable policies that attract investors and encourage innovation are crucial for the continued growth of Africa's dynamic tech hub ecosystem.
Muriel Edjo
The National Information Technology Development Agency (NITDA) unveiled the 'Digital Literacy for All' initiative on May 26, aiming to narrow Nigeria's digital gap and promote inclusive growth.
The program, set to achieve a 70% literacy rate by 2027, seeks to provide universal access to digital literacy. It empowers citizens with critical digital skills such as online resource utilization, cybersecurity awareness, effective communication, and proficiency in digital tools.
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Statistics Botswana announced on May 16 that it will conduct the 2024 Botswana Information and Communication Technology (ICT) Household Survey from June to August 2024, collecting data from selected households nationwide.
The survey aims to produce indicators for evaluating ICT development goals, provide benchmarks for international comparisons, monitor progress towards building an information society, and offer critical data to enhance digital economy growth.
Data will encompass household ICT access, online safety, e-waste awareness, individual device usage, digital skills, e-education, e-commerce, e-government, security, privacy, and media habits.
A fervent believer in the potential of artificial intelligence (AI) and robotics to propel growth for businesses and institutions across Africa and beyond, he has channeled this passion into his startup, eWaati.
Fousseyni Dembele (photo) is a Malian entrepreneur and artificial intelligence and robotics expert. He is the co-founder and CEO of eWaati, a startup specializing in AI and robotics technologies. His mission, as stated on his LinkedIn profile, is "to create smart and interconnected solutions that promote the growth of private enterprises across all sectors globally."
Founded in 2019, eWaati offers facial recognition and data analysis technologies for various sectors, including public security, business management, finance, education, and marketing. The company aims to transform the daily operations of businesses, institutions, and public services in Mali and Africa.
eWaati's flagship solution is a digital system for managing employee attendance and work hours, equipped with facial recognition technology. This device, bearing the startup's name, aims to improve punctuality and security within companies and institutions. Additionally, eWaati offers eSchool, a comprehensive digital solution for school management.
Before eWaati, Fousseyni Dembele founded Heat Decision in 2018, a startup focused on providing IT solutions to help business leaders and managers make informed decisions.
Fousseyni Dembele holds a master's degree in computer applications, obtained in 2017 from Djillali Liabes University in Sidi Bel Abbès, Algeria. Before venturing into entrepreneurship, he worked from 2017 to 2019 at NG System Technology, a company developing web and mobile solutions, where he held the position of software developer.
Melchior Koba
Benin has set its sights on becoming the digital hub of West Africa since President Patrice Talon took office in 2016. The country has pursued this goal by digitizing numerous services, with a significant acceleration following the COVID-19 pandemic in 2021.
Benin's Directorate General of Taxes (DGI) unveiled new online services on Thursday, May 23rd, aimed at streamlining tax payment procedures for small businesses and property owners in Cotonou. The initiative, with plans for a nationwide expansion, leverages technology to improve efficiency and convenience for taxpayers.
"We live in an era where information and communication technologies play a crucial role in all aspects of our lives, and the tax domain is no exception. [...] We are providing micro and small businesses and property owners with modern tools to secure and facilitate the fulfillment of their tax obligations. This platform significantly reduces the cost of tax compliance and the time required," said Nicolas Yenoussi, Director General of Taxes.
Building on Benin's 2017 launch of the "e-services.impots.bj" portal, which marked the beginning of tax administration digitization, the DGI has implemented a phased rollout, adding functionalities over time. The introduction of these new services aligns with this strategy.
The DGI underscores the initiative's goal of creating a more modern, transparent, and user-friendly tax environment. They report that the gradual digitization of services has contributed to a 13.1% increase in tax revenue between 2017 and 2021, compared to a 5.7% increase over the previous five-year period (2012-2016).
Adoni Conrad Quenum
A logistics professional by training, he aims to facilitate the transport of goods in Africa. After accumulating several years of experience with various companies and transport organizations, he founded his own startup, Buur Logistics.
Amadou Dieng (photo) is a Senegalese logistics professional and entrepreneur. He is the founder and CEO of Buur Logistics, a startup operating in the transport and logistics sector.
Founded in 2019, Buur Logistics provides services for connecting and optimizing the transport of goods across North and West Africa. The company collaborates with over 3,000 African service providers and offers a tracking system that allows real-time location of trucks and goods.
Buur Logistics boasts a fleet of over 3,500 geolocatable trucks that can be mobilized at any time. The company also owns certified warehouses for goods storage and handles cargo for its clients. To date, it has served 3,200 clients across 120 different areas.
In 2021, Amadou Dieng was a laureate of the Orange Corners program and received support from the Orange Fab accelerator in Senegal in 2022. He will participate in GITEX AFRICA, held from May 29 to 31, 2024, in Marrakech, Morocco.
Amadou Dieng graduated from the Conservatoire National des Arts et Métiers, where he earned a higher technician diploma in logistics and port management in 2018, followed by a bachelor's degree in international trade and logistics development in 2019. He began his professional career in March 2018 at the Senegalese Consortium of Maritime Activities (COSAMA) as a port agent.
In November 2018, he joined DHL Global Forwarding, which provides air, sea, and land freight services, as a customs agent. In 2019, he joined Kemtar, a digital platform facilitating connections between transporters and professional or individual clients in West Africa, where he was the logistics operations manager.
Melchior Koba