search.noResults

search.searching

saml.title
dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
OPINION AFRICAN TECHECOSYSTEMS OF THE FUTURE 2021/22


The under-exploredtrends in Africa’s rising tech ecosystems


COMPANIES IN AFRICA’S SECOND-TIER TECH ECOSYSTEMS ARE SHOWING ENCOURAGING SIGNS OF GROWTH, WRITE LISA WITH AND DARIOGIULIANI


D


espite the relatively nascent stage of start-up ecosystems across Africa,more than $2bn


has been raised over the past two years. While the burgeoning capital availability across Africa is positive news, funding remains heavily skewed towards just four countries: Nigeria, Egypt, Kenya and South Africa. This clustering has shown a propensity to channel the attention away fromthe rest of the continent; despite this, several notable develop- ments have been happening in other African countries.


Second-tier ecosystemsona steady rise A new tier of less well funded tech ecosystems is now experiencing an increase in funding facilities and interest — especially in Morocco, Senegal, Ghana, Ethiopia and Uganda, with companies such as Mubawab, Paps, Redbird Health, mPharma, ArifPay and Kasha mak- ing strides in their respective verti- cals. From a regulatory perspective, countries in north Africa are gearing up to become ICT hubs as Gulf-based investors begin broadening their interest in the continent.


Capturing francophoneAfrica’s potential Despite only capturing a fraction of the total funding, and presenting more contained technology scenes than other regions, francophone west Africa is quickly taking centre stage, with the arrival of global play- ers such as Glovo, Heetch and Uber. From Partech Partners to Orange Ventures, funding facilities with a focus on the region are ramping up their portfolios. Money is being made available


for decentralised energy — with com- panies such as SolarX, Oolu, Baobab+ and Daystar Power raising multi-mil- lion dollar rounds — and the rapidly growing transport and logistics space, fromMali’s Teliman to Ivorian MojaRide. Most recently, Côte


38


d’Ivoire’s fintech Djamowas the first company in the region to make it into global accelerator Y Combinator in several years.


Growth-stage funding’s positive knock-on effect Companies headquartered in Africa are starting to build for amore global audience, targeting both emerging and mature markets for expansion, including names such as Migo, Aella, SWVL, Skynamo and Aerobotics. Growth-stage funding rounds into companies based in Nigeria, Egypt, Kenya and South Africa are also indi- rectly boosting adjacent ecosystems, as companies such as Sendy, Sokowatch and Twiga Foods expand to their neighbouring countries.


Growthanddiversification of Africa start-up support landscape Several support organisations and a new generation of investors joining the race are facilitating the advance- ments of the continent’s comparably under-explored ecosystems. Following the global corporate


innovation wave, large brands are setting up venture capital funds or innovation arms to support, set up, partner with or acquire start-ups. In the payment space, giants such as Visa, Mastercard and Stripe have been establishing partnerships with fintechs and e-commerce platforms in order to accelerate the conti- nent’s financial integration in the global market. Female founder-focused funds


and facilities, such as Enygma Ventures and Alitheia Capital IDF, are enabling more targeted and active participation of women in the tech ecosystem, and a growing num- ber of impact funds are investing in innovation to drive the sustainable development goals forward. There has also been major growth in early- stage supporters providing different investment vehicles, from interna- tional start-up support veterans, such as Founders Factory, Startup


Bootcamp and Y Combinator, all the way to foundationsanddevelopment- focused programmes, including Mastercard Foundation and GSMA.


Looking to the future Start-up ecosystems across Africa are beginning to play a vital role in determining the attractiveness of the continent by attracting global brands, talent and a diverse pool of investors. Although several chal- lenges remain, especially those caused by infrastructural inade- quacy and premature markets, a growing number of success stories involving digital and impact-focused businesses are driving investor engagement and start-up support.■


Dario Giuliani is founder and director of research company Briter Bridges. Lisa With is head of research and operations at Briter Bridges.


FRANCOPHONE WEST AFRICA IS QUICKLY TAKING CENTRE STAGE, WITH THE ARRIVAL OF GLOBAL PLAYERS


April/May 2021


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96