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Reasons for Newest Startup Hubs Expansion in Africa

Hubs in Africa

The technological reforms such as increased use of smartphones and the low-cost internet have attracted most investors in the continent. The most famous multinational companies like Google and Facebook officials have visited the continent. These prominent entrepreneurs have traveled across Africa looking for new business opportunities market for their products The last year’s funding investment was $560 million which represent about 53% annual growth rate.

Early this week, Google listed 12 startups which will take part in Launchpad Accelerator Africa class. This event will follow the Silicon Valley world program. On the other hand, Facebook will launch a tech hub in Nigeria in the course of this year. The MTN mobile operators in partnership with Barclays bank have also supported Yello & Rise startups. The two institutions are looking forward to tapping markets in Senegal and Cameroon in future.  There are nearly 130 tech hubs that operate in Africa since 2016. This has indicated remarkable improvement in local markets and entrepreneurship ecosystem in the continent.

According to GSM Association which is a global telecoms industry body, there are 442 accelerators, active incubators and co-working in Africa. This denotes an increase in the number of members as compared to 2016 which was 314 in average. The rise in the hub has necessitated opening of local markets in Côte d’Ivoire, Senegal, and Ghana. Based on countries wise, Zimbabwe had 13 hubs, Uganda 15 and Nigeria had 55 startups. The Nigerian case is quite unique since it added 22 more hubs as compared to 23 in 2016.

The senior insights manager for GSMA, Maxime Bayen noted further that Africa startup landscape clearly indicates positive signs. He added that in less than one year, several startups have embraced science and technology in their operations. As evidenced in Kenya and Nigeria, tech hubs are sprouting outside capital cities in the continent. There are many startups emerging from Mombassa, Kisumu, Machakos, Voi and Aba city for the case of Nigeria.

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Written by Denis Opudo

Am an engineer who's a tech blogger, hit me up on dennis@techinafrica.com and we base our discussion on technology in Africa and the rest of the world.
Denis the Tech guru

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