News (1576)
Limited access to financing remains a critical hurdle for startups, especially in Africa and the Middle East. Bolstering these startups fosters innovation, creates jobs, and energizes the regional digital economy.
Orange Ventures, the investment arm of telecoms giant Orange Group, and Digital Africa, a pan-African initiative supporting early-stage businesses, joined forces on Thursday to co-invest in startups across the Orange Digital Centers (ODC) network in Africa and the Middle East.
The partnership, announced on the sidelines of the Vivatech technology fair in Paris, underscores both organizations' commitment to fostering innovation and growth within the region's burgeoning digital economy.
"Orange Digital Centers are true catalysts for innovation, where ideas take shape and dreams become reality," said Asma Ennaifer (pictured left), Executive Director of CSR, Communication, and the Orange Digital Center program for Orange Africa and the Middle East . "By joining forces with Orange Ventures and Digital Africa, we're giving African startups the means to thrive and make their mark in a rapidly expanding digital world."
This initiative builds upon a strategic agreement signed between Orange and Digital Africa in June 2023 to streamline financing and support for ODC network startups. Under the new collaboration, the partners can leverage Fuzé, an investment scheme implemented by Digital Africa, to potentially double the funding offered to individual startups through joint application review and co-investment.
This enhanced partnership marks a significant step towards bolstering support for African entrepreneurs within the ODC network. In its first year, the previous collaboration provided funding of up to €50,000 to five startups through the Fuzé program. With Orange Ventures now on board, the initiative is expected to empower a growing number of African entrepreneurs from the early stages of their ventures by offering comprehensive financial and strategic backing.
Samira Njoya
Investing in digital infrastructure is a significant step for African development as it is crucial in enhancing government efficiency, improving data management, and fostering economic growth. By integrating advanced technology, Nigeria sets a precedent for other African nations to modernize their operations, support digital transformation, and boost overall development.
Nigeria will launch a state-of-the-art data center with a storage capacity of 1.4 petabytes before May 29, 2024, to house critical national information, including citizens' bio-data. The Minister of Interior Dr. Olubunmi Tunji-Ojo announced this during a meeting with the National Union of Nigerian Associations in Italy (NUNAI) on May 20, a statement from the Interior Ministry dated the same day revealed.
Dr. Olubunmi Tunji-Ojo emphasized that adopting advanced technology would enhance efficiency and accountability across national operations, the statement read.
In its 2019 publication titled “Nigeria Digital Economy Diagnostic: A Plan for Building Nigeria’s Inclusive Digital Future,” the World Bank assessed that “Nigeria is capturing only a fraction of its digital economic potential and will need to make strategic investments to develop a dynamic, transformative digital economy.” In line with this, in 2015, the Nigeria Communications Commission proposed transitioning the economy into a digital economy through investments in digital infrastructure.
The launch of this data center directly addresses this assessment, marking a strategic investment in Nigeria's digital infrastructure. This move is expected to unlock more of Nigeria's digital economic potential, promoting an inclusive and robust digital economy.
Hikmatu Bilali
In September 2023, Kenyan President William Ruto visited Silicon Valley to meet with several tech company leaders. Since then, many of these companies have announced investments in this East African country.
Microsoft and G42, a United Arab Emirates-based firm specializing in artificial intelligence and cloud computing, have announced plans to invest $1 billion in Kenya's digital sector. The announcement was made through a press release issued by Microsoft on Wednesday, May 22.
The investment will be directed towards the construction of a data center in Olkaria, which will be powered entirely by renewable geothermal energy. G42 and its partners will oversee the development of this infrastructure to utilize Microsoft Azure in a new cloud region in East Africa. The data center is projected to be operational within 24 months after the signing of definitive agreements, scheduled to take place on Friday, May 24, in Washington, D.C.
“A letter of intent formalizing the relationship will be signed on Friday as part of Kenyan President William Ruto’s state visit to the United States of America, the first state visit to Washington, D.C., by a sitting African head of state in nearly two decades. The letter of intent will be signed between Microsoft, G42 and Kenya’s Ministry of Information, Communications and the Digital Economy, and was crafted with the assistance of the governments of the United States and the United Arab Emirates,” the statement read.
This initiative builds upon a memorandum of understanding signed between Kenya and Microsoft last September, focusing on integrating the cloud services of the Redmond-based company to enhance public service delivery through a cloud-first approach. Kenya aims to position itself as the digital hub of the region, attracting investments from various tech giants. In addition to Microsoft, Oracle is preparing to establish its second data center in Africa in Nairobi.
The investment will also involve the development of four key pillars in collaboration with local stakeholders. These pillars include creating AI models in local languages and related research, establishing an innovation lab in East Africa, providing extensive digital skills training in AI, investing in international and local connectivity, and working with the Kenyan government to promote cloud services across East Africa.
Despite having a promising startup ecosystem, Kenya currently ranks 19th with a score of 54.2 out of 100 in the 2023 ICT Development Index for African countries, as reported in the "Measuring Digital Development: The ICT Development Index 2023" by the International Telecommunication Union (ITU).
Adoni Conrad Quenum
The horticultural sector in Ethiopia is experiencing remarkable growth. To achieve even impressive results, various digital initiatives are being implemented.
On Tuesday, May 21, the Ethiopian Horticulture Producer Exporters Association (EHPEA) and Trade Mark Africa, an African trade assistance organization, signed a partnership agreement in Addis Ababa. This initiative aims to develop comprehensive online learning and knowledge management systems in Ethiopia's horticulture sector.
Tewodros Zewdie (photo, center), Executive Director of EHPEA, highlighted the importance of this partnership, emphasizing that the project will help maintain competitiveness in the country's dynamic horticulture sector. "Through this project, we are investing not just in technology but in the future of Ethiopia’s horticulture sector. Our partnership with TradeMark Africa will enable us to equip our members with the necessary resources to thrive in an increasingly digital marketplace," he stated.
The partnership will benefit from a €139,000 grant from the European Union, provided through the French Development Agency (AFD). This financial support will facilitate the implementation of the learning platform, offering access to valuable resources, training materials, and interactive modules to enhance skills and knowledge sharing in horticultural production and export practices.
This collaboration is part of a broader program focusing on the Ethiopia-Djibouti corridor. It comes at a time when the Ethiopian horticulture sector has seen significant growth in recent years, becoming a fundamental pillar of the national economy. According to official data, the sector contributes 86% to the agricultural GDP.
The adoption of digital health tools represents a significant opportunity for African economic development. By improving healthcare access and efficiency, these innovations can drive broader socioeconomic progress and help bridge the development gap with other regions.
The African Export-Import Bank (Afreximbank) and MobiHealthCare Limited (MobiHealth) have signed a $1.5 million agreement to expand MobiHealth's telemedicine services in Nigeria and explore feasibility in Egypt, Ghana, Kenya, and Côte d'Ivoire, Afreximbank announced May 21.
For Mrs. Kanayo Awani, Executive Vice President of Afreximbank, “This initiative will reshape healthcare delivery across the continent and improve equitable access to quality, affordable healthcare.”
The bank will finance activities to leverage MobiHealth’s telemedicine platform, initially piloted in Nigeria, aiming to establish a network of telemedicine clinics across Africa. The $1.5 million facility is expected to advance the project to bankability, unlocking further investments estimated at $65 million. This initiative will enhance access, efficiency, and quality of healthcare, leveraging local and diaspora medical professionals for remote diagnosis and prescriptions, benefiting underserved communities.
Afreximbank will also lead senior debt syndication and support bankable studies for the project's advancement. Supported by the Africa Investment Forum (AIF) and a $1 million grant from the United States Trade and Development Agency (USTDA), this initiative marks a significant step forward.
In its 2023 “How digital tools could boost efficiency in African health systems” report, market consultancy firm McKinsey reveals that though digital health is still in its early stages in many African regions, advancements in smartphone connectivity, data management policies, and data infrastructure are beginning to reshape the landscape of healthcare. These innovations are not just improving the delivery of health services but are also poised to enhance the efficiency of health systems significantly. It further projects that by 2030, the expanded use of digital health tools could yield up to a 15 percent increase in efficiency for African health systems. The financial savings from these efficiency gains could then be reinvested to further improve healthcare access and outcomes.
Hikmatu Bilali
The Moroccan government has pledged to extend high-speed connectivity across the country. The goal is to provide everyone with quality and affordable internet.
Morocco announced a new program on Monday to bring internet access to 1,800 rural areas in the coming months, marking a significant step in its National Plan for the Development of High and Very High Speed Broadband.
Digital Transition and Administrative Reform Minister Ghita Mezzour (photo) unveiled the initiative, which builds on the ongoing first phase of the plan that aims to cover 10,740 previously unconnected rural areas.
This program aligns with Morocco's soon-to-be-launched National Digital Development Strategy 2030. The strategy also includes the introduction of 5G technology, expected to play a key role in the country's modernization. By embracing digital tools, Morocco seeks to boost economic growth, improve public services, and foster broader digital inclusion.
The internet access program is projected to improve the lives of millions in rural areas. Residents will gain access to various online public services through the government's established network of 600 digital platforms, offering essential services like healthcare appointments and administrative procedures.
Improved internet connectivity is expected to have a positive impact on education, healthcare, and entrepreneurship. Students will benefit from online learning resources, patients will have the possibility of remote consultations, and local businesses will have the opportunity to expand their reach through e-commerce.
Morocco's commitment to digital transformation demonstrates its resolve to bridge the digital divide and integrate all regions of the country into the global digital economy.
Samira Njoya
Commerce and distribution are cornerstones of Morocco's economy, playing a significant role in driving both GDP and job creation. Embracing new technologies in this sector is crucial to boost its efficiency and sharpen its competitive edge.
Global digital advertising firm Aleph and Morocco's Ministry of Industry and Commerce signed a framework partnership agreement on Monday, May 20, in Rabat. The initiative aims to propel the digital transformation of the commerce sector and enhance merchant competitiveness.
"Our 'Digital Ad Expert' program is specifically designed to educate and empower our partners to leverage digital technologies," stated Mohamed Megahed, General Manager at Aleph Group, ensuring "a smooth transition to modern, efficient business models."
Under this partnership, Aleph will provide merchants with educational resources through the Digital Ad Expert platform and offer local support from Google-certified experts. The company will also organize training sessions and innovative workshops to effectively integrate digital advertising into their marketing strategies. The Ministry of Commerce will implement a joint action plan, mobilizing chambers of commerce and other entities to support the digitization of SMEs and organizing events to encourage the use of new technologies.
This partnership aligns with the government's trade recovery plan, which emphasizes sector modernization and job creation. The commerce and distribution sector, representing 10.8% of GDP and employing over 15.4% of the workforce (according to official figures), is a key target for this digitization push.
The Aleph-Ministry alliance is expected to assist businesses in digitizing services, ensuring their competitiveness in the increasingly digital commercial landscape. This collaboration is seen as a crucial step in fostering innovation, technology adoption, and ultimately, the growth of Morocco's digital economy.
Samira Njoya
To enhance administrative efficiency and optimize data management, African governments are increasingly digitizing public services. The ambitious initiative is expected to significantly improve citizens' lives.
Burkina Faso's Ministry of Environment, Water, and Sanitation unveiled a new digital platform on Friday, May 17, to simplify the application process for users. Accessible at www.eservices.envieau.gov.bf, the platform currently streamlines ten environmental procedures.
"This portal will make it easier for our citizens to access these services and improve our ministry's efficiency in responding to user requests," said Aminata Zerbo/Sabane (photo, center), Minister of Digital Transition, Posts, and Electronic Communications, at the launch event.
The ten procedures digitized by the Ministry of Environment include the issuance of technical opinions for the importation of chemical products, certification for biodegradable plastic packaging and bags, exemption certificates for non-biodegradable plastic packaging and bags, and authorization for solid waste management. They also cover permits for the transportation and cutting of wood and charcoal, ecotourism permits, wild animal possession, hunting licenses, and technical approvals in the water and sanitation sector.
The launch of this portal is part of the 2021-2025 National Strategy for the Modernization of Public Administration (SNMAP). This strategy aims to provide Burkina Faso with an excellent public administration serving users by 2025. In the coming months, other ministries will also launch their own platforms, to facilitate interaction between users and the administration while reducing the need for in-person visits.
This extensive project marks a significant step towards the modernization and digitization of administrative services in Burkina Faso, thereby improving the quality and accessibility of public services for citizens. It reflects the Burkinabe government's commitment to using digital technologies to optimize interactions between citizens and the administration, track requests in real-time, generate statistics on processed applications, facilitate file archiving, and reduce paper usage.
Samira Njoya
By improving payment systems and enhancing the trustworthiness of credentials, African SMEs can engage more effectively in international trade. This fosters economic inclusivity, drives innovation, and opens new markets, ultimately contributing to sustainable economic development across the continent.
Director of Fintech and Innovation at the Bank of Ghana, Kwame Oppong, announced the successful completion of a cross-border transaction using Ghana’s eCedi and a Singaporean stablecoin. This was during the just ended 3i Africa summit held from 13-15 May in Accra. It marks the first proof of concept for Project DESFT (Digital Economy Semi-Fungible Token).
Project DESFT aims to support African SMEs in global trade by addressing trust and payment challenges. “.. we have rigorously tested a cross-border payment solution built upon the principles of Purpose Bound Money (PBM) and conducted real trade experiments which fully align with our predetermined objectives,” Oppong stated
According to the IMF “Central Bank Digital Currency's Role in Promoting Financial Inclusion” 2023 report, Central Bank Digital Currencies (CBDCs) can enhance financial inclusion by enabling households to efficiently transfer funds and access savings, insurance, and credit. This improved access supports financial wellness, reduces poverty, and promotes shared prosperity. The World Bank highlights financial inclusion as crucial for reducing poverty and boosting prosperity, by fostering entrepreneurship, investment, and productivity, and studies show a strong link between digital financial inclusion and economic growth.
The eCedi is set to enhance Ghana’s payment ecosystem by promoting growth, innovation, and improved consumer experiences. Its compatibility with the DESFT system and verifiable credentials can facilitate international trade for Ghanaian MSMEs.
Hikmatu Bilali
Despite their crucial role in the entrepreneurial landscape and their potential to drive economic development, small and medium-sized enterprises (SMEs) in sub-Saharan Africa face limited access to financing.
Singapore-based fintech company Proxtera announced a partnership with Ghana's Development Bank of Ghana (DBG) on Wednesday, May 15, during the 3iAfrica Summit in Accra. The collaboration aims to establish a digital platform offering $100 million in loans to Ghanaian small and medium-sized enterprises (SMEs).
Kwamina Duker, CEO of DBG, highlighted the platform's potential to streamline the loan application process and reduce borrowing costs for SMEs over time. “If today, it takes about three to six months to get a loan, with a huge amount of documentation, and we can cut that down to turnaround of literally a real time of 24 hours… then we can appreciate the benefits of digitalization,” he stated.
Through the partnership, DBG will leverage Proxtera's digital platform to provide loans for SME growth and expansion. Eligible businesses must be Ghanaian-owned and operating within the country, with a sound financial plan. Priority will be given to SMEs in key sectors like agriculture, manufacturing, information and communication technology (ICT), and other high-value-added industries.
This collaboration marks a significant step towards digital financial inclusion in Ghana. By facilitating access to financing for SMEs, the partnership is expected to stimulate economic growth, create jobs, and strengthen the country's economic fabric. It aligns with Ghana's national financial inclusion and development strategy, developed in collaboration with the World Bank, which aims to increase financial inclusion from 58% in 2020 to 85% by 2023.
Samira Njoya
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Algeria aims to position itself as a regional leader in technology and innovation. To achieve this ambition, the country is partnering with more advanced players in the field.
Algeria and China have signed a memorandum of cooperation to bolster collaboration in the fields of digitization and the digital economy, according to a May 16 statement from Algeria's High Commission for Digitization.
The agreement, formalized during a visit to China by a delegation led by High Commissioner Meriem Benmouloud (pictured, left), underscores the commitment to digital cooperation between Algerian President Abdelmadjid Tebboune and his Chinese counterpart.
This new partnership aligns with the High Commission's digitization action plan, which is currently shaping Algeria's national digital transformation strategy for 2024-2029. It follows a similar agreement signed earlier this year between the High Commission and Huawei, aimed at accelerating the country's digital transition.
The Algeria-China collaboration will explore avenues for cooperation across various digital domains. Training programs and expertise transfer will be implemented to enhance local digital skills and foster technological innovation. This collaboration will allow Algeria to leverage China's experience and knowledge in information technology, facilitating the government's goals of economic development and modernization.
Beyond the focus on training and technology transfer, potential projects could encompass developing advanced digital infrastructure, digitizing public services to improve efficiency, and creating an environment conducive to technological innovation and digital entrepreneurship. These initiatives aim to position Algeria as a prominent player in the digital economy within Africa and beyond.
Samira Njoya
Djibouti currently has only one operational data center. Known as the Djibouti Data Center (DDC), it is a Tier 3 facility that was commissioned in 2013.
Pan-African data center specialist PAIX Data Centres announced a joint venture with the Djibouti Sovereign Fund (FSD) on Tuesday, May 14. The partnership aims to build a cloud-neutral and carrier-neutral data center in Djibouti to address the growing demand for connectivity, content delivery networks, social media, and cloud computing services.
Dubbed JIB1, the new facility will boast roughly 50,000 square feet (approximately 4,645 square meters) of usable space up to 5 megawatts of computing capacity. The first phase of the project is slated for completion by 2026.
JIB1 will bolster Djibouti's telecommunications infrastructure as the nation undergoes a rapid digital transformation. Djibouti boasts connections to ten submarine cables, with three more under construction. However, the country currently has only one data center, the Djibouti Data Center (DDC), a Tier 3 facility launched in 2013.
"As the heart of Africa's digital economy, Djibouti plays a strategic role in facilitating connectivity between Africa, the Middle East, and Asia, PAIX Djibouti will serve as a catalyst for digital inclusion and economic development, empowering businesses to unlock new opportunities and realize their full potential in the digital age," said Jean-André Gbarssin, CEO of the FSD.
Isaac K. Kassouwi
As African governments increasingly embrace digitalization to drive economic growth, international collaborations are essential for achieving this goal. These initiatives also help bridge the gap between African and global tech hubs, ensuring the continent remains competitive in the global digital economy.
The Federal Executive Council (FEC) has approved the conversion of a Federal Government property in San Francisco into the Nigerian Digital Technology Exchange Program Hub, also known as the Nigeria Startup House, Minister of Communications, Innovation and Digital Economy Bosun Tijani announced May 14 on X (formerly Twitter). This initiative aims to enhance Nigeria's global tech presence, attract foreign investment, and boost the visibility of Nigeria's startup ecosystem.
“As we work towards achieving key elements of our Trade and IEC Strategic Blueprint Pillars, the Nigerian Startup House will play a critical role in promoting Nigeria’s economic interest, attracting Foreign Direct Investment and improving the visibility and positioning of Nigeria’s Startup Ecosystem to attract funding and expertise from global markets and organisations represented in the San Francisco Bay Area and beyond,” said the Minister.
The hub in the San Francisco Bay Area - a major center for startup funding and innovation - will help Nigerian startups access capital, expertise, and market opportunities.
Ownership of the Nigeria Startup House will remain with the Federal Government, represented by the Federal Ministry of Communications, Innovation, and Digital Economy (FMCIDE) and the Ministry of Foreign Affairs (MFA). It will be managed by a consortium of Nigerian tech companies, which will fund its operations.
As part of its strategy to foster a robust startup ecosystem, the Nigerian government has launched various initiatives. The Digital and Creative Enterprise (IDICE) program stands out, with a $618 million investment to promote entrepreneurship and innovation in the digital technology and creative industries, particularly for youth employment. According to the "Ecosystem Report: Nigerian Startup Scene 2023," this initiative is expected to contribute $6.4 billion to the Nigerian economy.
The report also highlights the Three Million Tech Talents (3MTT) program, which seeks to equip young individuals with essential tech skills while positioning Nigeria as a talent exporter. Additionally, the Nigerian Startup Act, passed in October 2022, underscores the government's commitment to establishing the digital economy as a fundamental component of its economic framework. These initiatives reflect Nigeria's growing support for the startup ecosystem and digitalization.
Hikmatu Bilali
Djibouti has embarked on an ambitious effort to digitize its public services. This initiative aims to allow the country to reap the full benefits of the digital economy.
The Djiboutian government announced the upcoming launch of two new digital services: e-Cabinet and e-Building Permit. Unveiled at the 8th Council of Ministers session on Tuesday, May 14th, these initiatives aim to modernize governance, enhance administrative efficiency, and offer a digital solution for building permits.
Developed by the Ministry of Digital Economy and Innovation with technical support from the National Agency for State Information Systems (ANSIE), e-Cabinet expands the government's document management capabilities. This platform caters to high-level decision-making by providing advanced features for managing proposals, agendas, reference documents, and legal texts throughout their lifecycle. Additionally, it ensures seamless interaction between various government systems, centralizing document management and fostering secure communication.
As for the e-Building Permit platform, it will replace the current building permit issuance system which is now considered outdated. This new solution includes an online portal offering significant advantages for all stakeholders involved in the building permit issuance process. Key features include simplified permit submission, online payments, and real-time tracking of applications.
The deployment of these platforms is part of the "Djibouti Fondement Numérique," a project that also includes the development of national broadband infrastructure, the promotion of e-learning, and the improvement of the quality of telecommunications services at affordable prices.
These digital solutions are expected to digitize government decision-making processes, facilitate secure communication and document sharing between ministries and government entities, and significantly save time in processing services.
Samira Njoya