Tech (695)
Despite the ongoing funding challenges in the African technological landscape, the platform 'Africa: The Big Deal' maintains an optimistic outlook for a resurgence in the near future.
Equity funding mobilized by startups in Africa accounted for less than 1% of all funds raised globally in the first quarter of 2024. This was reported by Africa: The Big Deal, the database that tracks over $100,000 deals captured by African startups, on Tuesday, April 23.
The total funding for these startups was $332 million, compared to the global startup funding of approximately $58.4 billion during the same period. This represents a 47% decrease in funding for Africa compared to the same period in 2023, while a global decrease of 21% was also noted. All regions, except Europe, experienced a decline.
"If we compare Q1 2024 funding to the funding heatwave peak (in late 2021/early 2022), start-ups are currently raising 5x times less quarterly than they were when fundraising peaked in Q3 2021. This is a more serious contraction than the global average (3.1x), which is very much influenced by Europe and US numbers (2.7x). It is in line with the Asian trend though, and much less dramatic than the gap registered in Latin America (14x)," explains Africa: The Big Deal.
Despite the challenging performance of African startups, ‘Africa: The Big Deal’ remains hopeful for the upcoming months. The platform notes: "...We have seen in the past that the trends observed in the US and Europe usually take a couple of quarters before they impact Africa." It anticipates that the recent resurgence of funding in the United States and Europe will eventually ripple through to Africa.
Adoni Conrad Quenum
The Algerian government adopted a pharmaceutical and industrial policy aimed at making this sector a strategic pillar of the economy, capable of generating wealth. To achieve its ambitions in that sector, it implemented several initiatives.
Algeria’s Health Minister, Abdelhak Saihi, announced on Monday, April 22, the country’s plans to launch a digital platform dedicated to managing community pharmacies nationwide in the coming months. The announcement was made during the opening ceremony of the 17th national symposium of the Algerian National Union of Community Pharmacists (SNAPO).
According to Saihi, the platform “will establish a new, modern, efficient, and transparent mode of managing all aspects related to community pharmacies, thus contributing to the prevention of self-medication and the control of the traceability of psychotropic drugs, while anticipating shortages and stockouts of pharmaceutical products.”
The development of this platform is being supervised by a committee that includes the General Directorate of Pharmacy and Equipment of the Ministry of Health, the Order of Pharmacists, and SNAPO. This initiative is part of the Health Sector Digitization Strategy, which aims to digitize all its aspects, including pharmacy management.
The platform will act as a dashboard for managing pharmacy activities across the country, facilitating the digital management of drug availability, duty rosters, and the traceability of psychotropics and antibiotics. It will also help anticipate shortages and stockouts of pharmaceutical products, thereby ensuring better access to medications for the population. The platform will also enable authorities to identify pharmacists who are practicing unlawfully.
According to the latest figures from SNAPO, there are currently 12,500 community pharmacies distributed across the country, equating to one pharmacy per 3,000 inhabitants.
Samira Njoya
In 2023, there was a noticeable downturn in fundraising for African startups compared to the previous year. However, to counter this trend and foster recovery, various supportive initiatives for these businesses are currently being implemented.
Egypt venture capital firm Beltone Holding, announced a partnership agreement between its subsidiary, Beltone Venture Capital (BVC), and CI Venture Capital, a subsidiary of Abu Dhabi-based investment management company Citadel International Holdings, on Wednesday, April 17.
The collaboration aims to manage a $30 million fund dedicated to investing in promising startups in the Middle East and North Africa (MENA) region. “The Fund will typically invest in pre-seed and seed funding rounds and will continue to support the best-performing portfolio companies in follow-up rounds; in addition to potentially investing in attractive opportunities at different funding stages,” said Ali Mokhtar, CEO of Beltone Venture Capital.
The launch of the fund aligns with the shared ambitions of the two companies to support the expansion of startups and stimulate innovation in the MENA region, with a focus on high-margin sectors and exponential growth driven by technology.
The fund is expected to bolster support for young businesses in the region. In recent months, the fund has started investing in leading startups such as Bosta, Trella, Qlub, and Ariika. According to data from the specialized platform Africa the Big Deal, startups in the MENA region raised $254 million in March, bringing the total for the first quarter to $429 million.
Samira Njoya
For many African countries, digitizing administration is the key to unlocking good governance, efficiency, and a more prosperous future.
Guinea’s progress in digitizing its public administration has been sluggish, a situation lamented by Prime Minister Bah Oury during a workshop on Saturday, April 20. The workshop, attended by several government officials, focused on streamlining the digitization of public services and enhancing communication between the administration’s digital platforms.
Oury attributed Guinea’s lag in part to a lack of cognizance of the swift advancements in the field. He pointed to underutilized past investments, such as a $10 million optical fiber project along the Guinean coast, as an example.
According to the latest United Nations report, "E-Government Survey 2022: The Future of Digital Government," Guinea ranks 162nd out of 193 countries worldwide in terms of e-government administration. The country, with an index of 0.2955, falls into the group of nations with an average e-government development index. Guinea is still below the global average index of 0.6102. In 2020, the country ranked 158th, marking a regression of four places.
In response to these deficiencies, The Prime Minister called for the removal of all obstacles hindering efficient computer systems in public administration, according to a statement from the Prime Minister's office.
On the technical front, the Ministry of Posts, Telecommunications, and Digital Economy is already making strides towards the swift modernization of public administration. The Republic of Guinea’s digitalization strategy, spearheaded by the national digitization agency, ANDE, is currently in the drafting stage. By 2026, it aims to digitally transform the Guinean administration, ensuring the sustainable development of digital technology that yields social and economic benefits for citizens and both the private and public sectors.
Samira Njoya
Over the past two decades, Niger and China have built strong bilateral relations across various sectors. This collaboration has recently gained momentum in the digital domain.
The People’s Republic of China is ready to partner with Niger in the digital sector, indicated Jiang Feng, China’s ambassador to Niger, during a meeting with Brigadier General Abdouramane Tiani, the president of Niger’s National Council for the Safeguard of the Homeland (CNSP), on April 18.
Jiang Feng was joined by Zhou Jian, the Director General of China’s Emergency Cyber Response Team for Industrial Control Systems and a special representative of the Chinese Minister of Industry and Information Technology. The Chinese diplomat highlighted China’s position as the largest developing country with a highly advanced digital economy and its intent to closely collaborate with Niger, a fraternal nation, to foster its growth in the digital domain.
“China, as the largest developing country with a highly developed digital economy, intends to conduct very close cooperation with Niger, a brotherly country, to develop it in the digital field in order to promote the already excellent bilateral cooperation to a new level for the benefit of our two nations,” he said.
The meeting between the two politicians was held on the sidelines of the first edition of Semaine du numérique (Senum24) organized by Niger under the theme “le numérique et la souveraineté ( Digital and Sovereignty)”. The event aims to discuss mechanisms, solutions, and initiatives to address challenges related to digital transformation in the country.
During the meeting, Jiang Feng expressed his satisfaction with this theme, which he considers a demonstration of the CNSP's will and determination to give paramount importance to this sector in the socio-economic development of the country.
Samira Njoya
Africa remains the region of the world where health challenges are most critical. Thus, e-health represents an opportunity for the development of the sector, particularly due to the high mobile phone penetration rate on the continent and its widespread use.
On Thursday, April 18, the International Committee of Digital Health Experts in Africa (CEISNA) announced a partnership with the Higher Institute of Medical Techniques of Lubumbashi (ISTM) in the Democratic Republic of Congo. This agreement aims to promote digital health in Africa.
"This agreement marks a decisive step in the promotion of digital health in Africa, by uniting the efforts of CEISNA and the Higher Institute of Medical Techniques to improve healthcare access through cutting-edge technologies," CEISNA stated in a press release.
As part of this partnership, CEISNA will bring its international expertise in digital health to enhance the capabilities of the Higher Institute of Medical Techniques in the areas of training, research, and implementation of innovative health solutions.
This collaboration is part of CEISNA's efforts to promote e-health education in African universities. Earlier in April, the committee also announced a partnership with the Higher Institute of Public Health in Bamako aimed at improving health systems in Mali through digital technology.
These partnerships come at a time when African governments are increasingly looking to leverage innovative technologies in the healthcare sector. It is becoming urgent for Africa to massively develop systems incorporating artificial intelligence techniques to significantly improve care and provide effective responses to some difficult and rare diseases. According to a report by Fortune Business Insights, the global digital health market is expected to reach $559.52 billion by 2027.
Samira Njoya
The government aims to transform Cameroon into an emerging country by 2035. To accelerate the achievement of that goal, the executive is focused on developing information and communication technologies.
On Tuesday, April 16, in Yaoundé, the construction of the Digital Transformation Center of the Ministry of External Relations (CTDM-MINREX) was officially initiated by the Cameroonian Minister of External Relations, Lejeune Mbella Mbella. This center, slated to be fully operational within a year, is designed to digitize and secure consular data.
The CTDM will be housed in a four-story, eco-friendly building, outfitted with cutting-edge technologies. It will encompass an ICT laboratory, a management unit for the procurement, storage, and distribution of consular materials, a training room, a round-the-clock call center, and a data storage unit, among other facilities.
The establishment of this center is a key component of a wider modernization initiative undertaken by the Ministry of External Relations. This initiative encompasses the roll-out of a digital platform for managing consular services, the equipping and operationalizing of diplomatic and consular posts, and the enhancement of consular officers’ skills.
In executing these projects, Cameroon is backed by Impact Palmarès R&D SAS, an Ivorian firm specializing in biometric solutions. Headquartered in Abidjan, this company was a technical ally to Cameroon in the successful deployment of e-visas a year prior. As per MINREX, from April 30, 2023, to March 30, 2024, Cameroon welcomed 158,000 visitors.
Once operational, the CTDM-MINREX is expected to improve the quality of Cameroon’s consular services to meet international standards. The center will also streamline consular procedures and speed up the process, enabling applicants to receive their electronic visas within 24 to 48 hours.
Samira Njoya
Since its inception in 2022, the AfricaTech Awards have awarded a dozen startups for the tangible impact of their activities on society. For its third edition, the event organizers continue to pursue the same goal.
Viva Technology, or VivaTech, an annual exhibition dedicated to technological innovation, announced on Wednesday, April 17, the 45 African startups selected for the finals of the third edition of the AfricaTech Awards. This Pan-African initiative aims to identify and support impactful innovative startups across the continent. The event will take place on May 24 in Paris, alongside VivaTech.
The 45 finalists were chosen from 310 applications following an evaluation conducted by VivaTech and its knowledge partner, Deloitte. These startups hail from 37 African countries, with Kenya, Nigeria, and Egypt having the highest participation since 2022. The finalists are divided into three categories: e-commerce & FinTech (15), Climate Tech (15), and Health Tech (15).
Following a second evaluation by a panel of experts consisting of C-Level partners, investors, and CEOs of incubators, the top three startups from each category will have the opportunity to participate in the 2024 edition of Viva Technology, which will be held from May 22 to 25 in Paris.
According to VivaTech's press release, among the 45 selected startups, 42% are founded or co-founded by women, and nearly 90% have at least one woman on their board of directors. They were selected for the concrete impact of their activities on society or the environment, the creation of remarkable innovation, the scalability of their business in the African market, and the formation of a diverse and experienced team.
"In this new shortlist for the AfricaTech Awards, Africa demonstrates all the richness and dynamism of its startup ecosystem and positions itself as the continent to watch for tech and digital innovation. Viva Technology is delighted to make this African reality known to the whole world and to connect it to the stakeholders who will enable it to reach its full potential. This has been one of VivaTech's commitments since its inception, and this year it will once again be one of the key themes of our event," stated François Bitouzet, Managing Director of Viva Technology.
Samira Njoya
Since October 2022, Nigeria has embarked on the development of a regulatory framework designed to foster the growth of innovative startups. A series of initiatives have been rolled out to support young companies and stimulate the local tech scene.
On Monday, April 15, Nigeria’s Minister of Communication, Innovation, and Digital Economy, Bosun Tijani, officially inaugurated the national startup portal. The initiative is designed to stimulate the growth of startups and nurture tech talent in Nigeria.
Bosun Tijani, speaking about this initiative, stated, “The platform will also facilitate a consultative forum where issues affecting startups can be discussed and properly defined for action by the government and other stakeholders.”
The digital platform, which can be accessed at startup.gov.ng, offers numerous benefits to local startups. These include registration and labeling, as well as access to valuable knowledge and information resources crucial for their growth and success. Registering on the platform also opens up opportunities for young companies to receive financial support and tax breaks, among other benefits.
The launch of this platform aligns with the objectives of the Nigeria Startup Act, which was enacted in October 2022. This act stipulates the creation of an annual fund of 10 billion naira (approximately $8.6 million) to finance labeled startups through seed funds, grants, or loans.
Official figures reveal that since its inception in November, the new platform has registered 12,948 companies, 912 venture capital investors, 1,735 angel investors, and 925 incubators, accelerators, and hubs.
Samira Njoya
The ongoing digital transformation across the continent has already revolutionized everyday practices and instigated profound societal changes. Notably, the education sector, which holds significant importance, is also experiencing substantial reforms.
On April 15, in Algiers, Kamel Baddari, the Algerian Minister of Higher Education and Scientific Research, unveiled plans for a new digital platform. This platform, designed to guide recent high school graduates, will leverage artificial intelligence to help students choose their future educational paths based on their academic records.
Baddari explained, “Graduates from the June 2024 session will have access to a digital platform designed to identify the fields and specialties that best align with their abilities and grades. This will be achieved using artificial intelligence techniques and data analysis.”
The new platform is part of a broader series of digital reforms recently initiated by the Ministry of Higher Education. These reforms have led to significant savings for the ministry, approximately 72 billion DA (around $53.4 million) in university catering costs and 640 million DA in university transportation from October to last March. The digitization process has thus allowed the ministry to streamline expenses and enhance service quality.
The Algerian government’s investment in this new guidance platform aims to reduce dropout rates, reorientation needs, and student dissatisfaction. The artificial intelligence incorporated into the platform will aid young people in making informed decisions about their university courses. The ultimate goal is to transform student life through precise post-baccalaureate guidance and the selection of a professional, customized curriculum. This will enable students to contribute to wealth creation and job opportunities, thereby adding value to the national economy.
Samira Njoya
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Digital transformation is at the core of the Burkinabe government's development programs. Ouagadougou is seeking the World Bank's assistance to meet the objectives of its digital strategy in the coming years.
Burkina Faso is seeking parliamentary approval for a $150 million loan from the International Development Association (IDA) to fund the Digital Transformation Acceleration Project (PACTDIGITAL). The cabinet, meeting on Thursday, April 11 in Ouagadougou, authorized this bill's submission to the Transitional Legislative Assembly for ratification.
PACTDIGITAL aims to enhance access to infrastructure, public services, and digital skills in Burkina Faso. It follows the recently concluded West African Regional Communications Infrastructure Project (PRICAO-BF) and the e-Burkina project. It will build on their achievements to develop a foundation for further digital initiatives.
The funding provided by the IDA, a World Bank institution, will be used to expand broadband access in underserved and poorly served areas, improve the availability and accessibility of digital public services, and enhance the digital skills of project beneficiaries (new digital public services in targeted sectors such as education, health, employment, etc.).
The primary beneficiaries include women, youth, people with disabilities, displaced persons, host communities, public employees (civil servants, teachers, and trainers), private businesses, formal and informal training institutes, local incubators, and associations.
The decisions made during the cabinet meeting underscore the transitional government's commitment to steering Burkina Faso toward sustainable and inclusive development.
Samira Njoya
The Mauritian government has unveiled a series of ambitious measures aimed at fast-tracking the country's digital integration and development. The initiative seeks to boost socio-economic growth by focusing on key sectors such as education.
In Mauritius, secondary schools will the Google Classroom learning platform starting the next second term, the Ministry of Education, Higher Education, Science, and Technology recently announced. The move is part of an effort to enhance the online teaching experience and practices within the nation's schools.
"Google Classroom will be rolled out from the second term of the 2024 academic year. A comprehensive briefing session will be held for headmasters, and clear protocols and guidelines will be established. Training sessions will also be arranged for educators to optimize the use of Google Classroom," the ministry stated.
This initiative is a key component of the national "Digital Mauritius 2030" strategy, which aims to digitize the country's key sectors, including education. The strategy also includes providing internet connectivity in primary and secondary schools, introducing children to computers, and specifically coding, from an early age. To support this, the government launched a tablet distribution project in 2014.
For the implementation of Google Classroom, Google accounts will be created for both students and their parents. Teachers will be able to create engaging learning experiences that they can customize, manage, and assess. The entirely free application will also help manage classroom assignments, organize homework, enhance collaboration, and improve communication.
Samira Njoya
Financial inclusion has become a key priority for governments and financial regulators across Africa, with a particular emphasis on central banks. Initiatives are being implemented to improve access to financial services for a greater number of people.
Algeria's mobile payment interoperability project is nearing completion and should be activated this year, according to Assia Benchabla Queiroz, administrator of the payment systems group GIE Monetique. She recently spoke to Algérie Presse Service, Algeria’s state-owned news agency, about the project’s goal to ease transactions between users of various mobile money operators and enhance access to financial services.
“We are well advanced in the deployment of mobile payment (m-payment). The GIE monétique has specified its operating scheme, and each bank is expected to acquire its solution,” Queiroz stated.
To achieve that goal, mobile payment stakeholders will need to collaborate closely to establish common standards and protocols. They will also need to connect to a switch crucial for the smooth management of mobile payment flow across a platform. This initiative will allow users to conduct transactions even between customers of different banks, thereby promoting the widespread adoption of mobile payments for purchases and account-to-account transfers.
The project is part of the government's action plan to modernize the banking and financial system and increase its attractiveness and efficiency to enhance its contribution to economic recovery. Its implementation is expected to enable seamless communication among various payment service providers, paving the way for transparent transactions across different platforms, irrespective of the service provider used.
This progress will ease the use of mobile payment, particularly for making purchases using QR codes and conducting account-to-account transfers.
Samira Njoya
The COVID-19 pandemic highlighted the importance of institutions and businesses adopting new technologies to improve their efficiency and competitiveness. However, many challenges remain, and not all countries are progressing at the same pace.
Despite an 8.21% growth, sub-Saharan Africa continues to be one of the regions with the lowest business digitalization rates worldwide. As of December 2022, only 27.65% of businesses had adopted digital solutions to enhance their efficiency, a slight increase from 19.44% in August 2020. In stark contrast, East Asia witnessed the most significant growth, with its digitalization rate soaring from 13% in 2020 to 54% in 2022, marking a 41% increase.
The World Bank, in its report “Global Digitalization in 10 Charts” published on March 5, attributed the slow adoption of digital solutions in sub-Saharan Africa, particularly among small and medium-sized enterprises (SMEs), to the low usage of computers and the internet. The report further highlighted the lack of skills, poor adherence to stringent cybersecurity and data protection regulations, and inadequate awareness of digitalization challenges among businesses as contributing factors.
The World Bank and the International Finance Corporation (IFC) disclosed that less than 7% of micro-businesses in sub-Saharan Africa use digital technologies, such as smartphones and computers, for their operations, while 71% believe they are unnecessary.
A study conducted in seven African countries and published in April 2023 revealed that of these 71%, approximately 35% claimed they lacked the knowledge to use these technologies. This underscores a digital skills gap that needs to be addressed or the need for digital entrepreneurs to develop technologies that align with existing skill levels. The remaining 35% cited cost as a barrier to technology adoption.
As African countries progressively step into the fourth industrial revolution, businesses must integrate digital solutions into their core strategies. Digital skills have become vital to nurture and maintain business activities in a rapidly evolving competitive landscape. This vision aligns with the African Union’s Agenda 2063, which emphasizes that accelerating digital transformation must infiltrate all economic sectors to sustainably bolster the growth of African countries.
Samira Njoya