Innovation is the key word for “Made in Africa” projects
Powered by the explosion of the mobile, the African continent invents new uses and innovative concepts
Investments are preponderant
The event brings together, over two days, some of the main investors in Silicon Valley and African-American entrepreneurs. Friday and Saturday, at a hotel in Santa Clara, California, the master of ceremonies, Ron Conway, veteran business angel star who has invested in Google, Facebook, Twitter or Airbnb, will present guests with investment opportunities in Africa. A symbol of the new interest in the tech world for this continent.
Several clues indeed demonstrate its rise. African start-ups have never raised so much money. Last year, they raised $ 185.7 million, according to VC4Africa and CB Insights. A drop of water on a global scale since it represents only 0.14% of the funds raised on the planet, but the growth is there, driven by the rise of the mobile. The pace of business creation has accelerated. Several success stories, such as the e-merchant Jumia or the mobile payment solution M-Pesa, show the way for young entrepreneurs, hubs are forming in Nigeria, Kenya, or even in South Africa and initiatives are multiplying .
The diaspora invests
“The behavior of the diaspora is always a good indicator and, in Africa, particularly in Nigeria, the diaspora is coming back and investing in new technologies,” notes Alisée de Tonnac, founder of the event Speedstars World, which brings together the start-ups the most promising in emerging markets. She herself moved to Lagos last year and, since this year, has organized an event in Casablanca dedicated to African start-ups.
Gathered this week, the winners of this competition, representing 16 countries, will be presented this weekend. “This kind of event is not just about networking,” explains Alisée de Tonnac. The idea is also to move forward on concrete ideas, to put together start-ups, large groups, investors so that they lift certain barriers together. Across Africa, moreover, there are weekend start-ups and other pitch contests. And, last year, at Seedstars World, two of the three award-winning start-ups came from sub-Saharan Africa.
Nigeria and Kenya leaders more than ever
Considerable differences exist, however, from country to country. English-speaking Africa is, in general, more dynamic and more mature, with outlets to the United States and larger domestic markets: Nigeria today reaches 180 million inhabitants and should be the third most populated the planet by 2050. A potential that attracts the attention of investors.
As for Kenya, it benefits from good infrastructure which has enabled the emergence of an interesting fabric of start-ups. One of them, M-Kopa, which markets solar energy kits, raised two funds last year for more than $ 31 million. The biggest total on the continent. The South African ecosystem is already very integrated, with in particular the presence of several Anglo-Saxon funds. Finally, a country like Rwanda has implemented a proactive policy: last year the state released almost $ 100 million in funds to help projects related to innovation. As for French-speaking countries, if some countries are doing well, such as Cameroon, Senegal or Côte d’Ivoire, the amounts invested there are lower.
The problem of funding in Africa is far from being resolved, however. Local investors still tend to favor real estate and few international technology funds have tried their luck on the continent. A weakness barely compensated for by a few scattered initiatives, such as those of Intel, which is investing via its Intel Capital fund, German Rocket Internet or Orange, which are preparing specific devices for the continent.
Source: http://www.financeafrique.com/meilleurs-hubs-innovation-afrique/
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