Emerging Tech Scene in Africa

Intro

Leading the Way in Mobile, AI, and Investment Models"

Africa has always been known for its vibrant culture, incredible landscapes, and unique wildlife.

But in recent years, it’s become increasingly apparent that the continent is also home to a thriving tech scene.

From Kenya’s Silicon Savannah to Nigeria’s burgeoning startup ecosystem, there’s a lot happening in Africa when it comes to emerging technology.

Let’s take a look at some of the latest innovations and trends that are driving this exciting development.

The Growth of Silicon Savannah

Kenya’s Silicon Savannah has been making waves for quite some time now.

In fact, it’s been dubbed the “Silicon Valley of Africa” by some experts.

Located in the capital city, Nairobi, it’s a hub of tech startups, investors, and entrepreneurs.

The ecosystem has grown significantly in recent years, with startups like M-Kopa, BitPesa, and Ushahidi leading the way.

These companies are now household names in Kenya and beyond, and they’ve proven that African startups can compete on a global stage.

One of the key drivers of Silicon Savannah’s success is its focus on mobile technology.

With a high rate of mobile phone penetration (over 80% of Kenyans have access to a mobile phone), many Kenyan startups have developed innovative mobile solutions, particularly in the fintech and e-commerce sectors.

The success of companies like M-Pesa (which now serves over 40 million customers) has also inspired a new generation of entrepreneurs to explore mobile technology as a business opportunity.

AI Innovation

Artificial intelligence (AI) is becoming increasingly important in many industries, and Africa is no exception.

In fact, AI innovation is rapidly emerging as a key focus of the continent’s tech scene.

African startups are leveraging AI to solve problems in areas like healthcare, agriculture, and education.

For example, South African startup hearX Group has developed an AI-powered screening tool for hearing loss,

while Nigerian startup mPharma is using AI to improve supply chain management for pharmaceuticals.

AI is also being used to address some of Africa’s biggest challenges, such as food security.

The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) is using AI to develop climate-resilient crops that can withstand drought and other extreme weather conditions.

This technology has the potential to transform agriculture in Africa and beyond, ensuring that farmers can produce enough food to feed their communities.

The Role of Investors

Of course, none of this would be possible without investment. In recent years, Africa has seen a surge in venture capital funding,

with investors from around the world recognising the potential of the continent’s tech scene.

According to a report by Partech Ventures, African startups raised nearly $1.5 billion in funding in 2019, up from just $200 million in 2015.

The report also highlighted the diversity of the African tech ecosystem, with startups operating in sectors ranging from fintech to healthcare to e-commerce. Investors are also becoming more sophisticated in their approach to African startups.

They recognise that the challenges facing these companies are unique, and that traditional investment models may not be appropriate.

As a result, we’re seeing new types of investment vehicles, such as impact funds and collaborative investment platforms, emerge to support African startups.

The mobile technology revolution in Africa has been enabled by the widespread adoption of smartphones, which are becoming increasingly affordable.

This has helped to bridge the digital divide in a continent where many people lack access to traditional computers and fixed-line internet.

However, there are still challenges to overcome, such as poor network coverage in rural areas and high data costs.

The GSMA, a mobile industry association, has compiled a range of resources on mobile connectivity in Africa.

The use of AI in agriculture is a growing trend across the world, as farmers seek to increase yields and improve sustainability.

In Africa, ICRISAT is leading the way in developing climate-smart crops that can withstand drought and other challenges.

Other initiatives include the African Agri-Tech Innovation Challenge, which aims to support innovative solutions for smallholder farmers.

The African Development Bank has also launched a programme to accelerate the adoption of new technologies in agriculture.

The surge in venture capital funding for African startups is driven by a combination of factors, including the growth of the tech ecosystem, the rise of mobile money and e-commerce, and increased awareness of the potential of the continent.

However, there are still challenges to overcome, such as a lack of early-stage investment and a shortage of skilled talent.

The African Business Angel Network is a useful resource for investors looking to connect with startups in the region.

The emergence of impact funds and other alternative investment models reflects a growing recognition of the unique challenges facing African startups.

These funds often focus on social and environmental impact, as well as financial returns, and may offer a lower-risk approach for investors.

For example, the ImpactTech Incubator provides funding and support to startups working on solutions for sustainable development in Africa.

The African Startup Ecosystem has also compiled a list of investment opportunities for entrepreneurs and investors.

GSMA resources on mobile connectivity in Africa: https://www.gsma.com/mobilefordevelopment/programme/digital-inclusion/mobile-connectivity-africa/

In conclusion

Africa’s emerging tech scene is one of the most exciting developments on the global stage.

With a focus on mobile technology, AI innovation, and innovative investment models, the continent is well positioned to lead the way in many areas of emerging technology.

As investors and entrepreneurs continue to recognise Africa’s potential, we can expect to see even more groundbreaking startups emerge in the years to come.

Some additional details and outbound links to further resources:

ICRISAT's climate-smart crops:

https://www.icrisat.org/climate-smart-crops-for-smallholder-farmers-in-dryland-tropics/

African Agri-Tech Innovation Challenge:

https://africaagritech.org/

African Development Bank programme to accelerate adoption of new technologies in agriculture: https://www.afdb.org/en/news-and-events/afdb-launches-programme-accelerate-adoption-new-agri-tech-financing-models-africa-29420/

African Business Angel Network: https://abanangels.org/

ImpactTech Incubator: https://www.impacttechinc.com/

African Startup Ecosystem's list of investment opportunities: https://africastartupecosystem.com/investment-opportunities/