Africa’s tech start-up scene is
ALIVE AND KICKING MUHAMMAD NABIL AFRICA’S technology start-up scene is vibrant – and growing fast. There are currently more than 640 active technology hubs across the continent, and according to Partech Africa, start-ups raised $1.163 billion (R17bn) in equity funding in 2018 – a 108% yearon-year growth. In my work with Microsoft 4Afrika, I have had a front row seat to the innovation and creativity many African startups have employed to address pressing economic and social gaps and needs. African tech start-ups are renowned for building solutions to some of the most complex challenges. This often stems from having first-hand experience of the problem, and knowing best how to solve it. Whether it’s using agri-tech to improve crop yields, using technology to deliver finance solutions to the previously unbanked or pairing solar power and IoT to solve power reliability issues, African innovation is alive and thriving, and the Covid19 pandemic has only fanned these flames of ingenuity. Microsoft 4Afrika has a strong commitment to entrepreneurs and we actively engage with SMEs and start-ups, providing training on how to apply technology to their business and helping them understand how they can benefit from a broad range of available devices and services.
START-UPS ARE DRIVING DIGITAL AGRICULTURE
When it comes to investing in start-ups, we look for cloud-oriented solutions with growth potential in health care, agriculture, financial services, government services and education. We prioritise industries that promote economic development and societal impact, but have also invested in start-ups in areas including gaming, entertainment (a massive industry in Nigeria), transportation and energy. We are in a period of unprecedented challenges, but we’re also experiencing rapid technology advancement that is transforming our world. When people can use technology and create it, they can experience higher paying jobs.
INNOVATIONS in Africa MICHEL BERNHARDT
Muhammad Nabil
THE Covid-19 pandemic has been a boost for rapid digitisation globally. The shift to digital has also reached the agriculture and food sector in Africa. Foodtech and agritech are now fast growing sectors with start-ups from Africa driving change. The spread and growth of startups providing agritech and foodtech solutions promises dynamic growth and transformation of African agriculture. Linking technology to the agriculture sector can also make agriculture – an ageing
sector – more attractive to youth while making it a sustainable employment opportunity. Technology spans a broad usage spectrum: from e-commerce and supply chain management to precision farming, which monitors and tackles, among others, crop diseases and pests using sensors, drones, satellite images and artificial intelligence (AI). Fintechs make use of blockchain to do their part in reaching the unbanked population in rural areas. According to the Consumer Technology Association, almost 400 digital solutions have
been registered across sub-Saharan Africa, with an annual growth of 45% since 2012. Nevertheless, around 90% of the market for digital services remains untapped. In addition, many digital solutions are not scaled, giving away a lot of potential impact. Yet the sector still holds numerous business and investment opportunities! This is where Scaling Digital Agriculture Innovations through Start-ups comes in. The project has been implemented by the German Corporation for International Co-operation on behalf of the German Federal
Ministry for Economic Co-operation and Development. With our Investment Readiness Programme, we grow selected African start-ups in the agri-food sector, helping them to scale their digital solution. We want to harness the power of technology and entrepreneurs for positive social impact in Africa. All the innovations and start-ups we support have to have an impact on the income of those who use the innovations. Bernhardt is head of programme at the German Corporation for International Co-operation.
