In Africa, digital transformation is accelerating the rise of innovative startups that leverage technology to meet the needs of local populations. However, these young companies face several challenges.

Angola's National Institute for the Support of Small and Medium-Sized Enterprises (INAPEM) and the National Institute for the Promotion of the Information Society (INFOSI) signed a memorandum of understanding on Friday, March 14, to support startup development.

The agreement aims to establish a collaborative framework to bolster INFOSI's DIGITAL.AO incubation program, with both agencies committing to joint actions to assist Angolan startups and digital entrepreneurs, fostering innovation. INAPEM will provide institutional and technical support to DIGITAL.AO.

"The objectives of the partnership include identifying and selecting startups and entrepreneurs participating in the program, providing physical incubation spaces, organizing training sessions and capacity-building workshops, offering mentorship and specialized consulting services, and facilitating access to investor networks and potential partners," INAPEM said in a statement.

An International Finance Corporation (IFC) "Assessment of the Angolan Startup Ecosystem," published in November 2023, found the ecosystem is in its nascent stage, characterized by a low number of startups, approximately 125, and resource limitations. The IFC noted no Angolan startup has yet achieved an exit event.

The IFC believes supporting startups, innovation, and entrepreneurship can diversify Angola's oil-dependent economy and create jobs, particularly for youth and women.

However, the IFC recommends Angolan authorities prioritize a startup law to improve the policy environment for young enterprises across multiple areas. This includes strengthening early-stage financing by direct government involvement in creating, investing in, and maintaining startup funding mechanisms. The financial institution also emphasizes integrating entrepreneurship, digital skills, and coding into the national education system, and establishing more vocational training schools to enhance the talent pool.

By Isaac K. Kassouwi,

Editing by Sèna D. B. de Sodji