Despite a funding slowdown in 2023, Africa's technology sector continues to attract investors, with a major company closing a new fund dedicated to the continent's burgeoning startups. 

Technology investment firm Partech has closed its second Africa-focused fund, Partech Africa 2, at 280 million euros (over 300 million USD), the company announced on Monday.

The fund, exceeding its initial target, received strong backing from existing investors, with nearly all participants from Fund I reinvesting and some increasing their commitments. Partech also attracted new strategic investors from the US, Middle East, and Africa, marking their first foray into the continent's tech scene.

Partech Africa 2 will target investments ranging from $1 million to $15 million across various stages, from seed rounds to Series C fundraising. The firm aims to support approximately 20 startups across the continent.

"We are grateful for the support and commitment of our investors: almost all Fund I investors reinvested and some, more than doubled their commitment. [...] We are also honored to get the support from a new set of strategic investors from the US, the Middle East, and Africa, and for some of whom, this marks their first commitment in African Tech," said Cyril Collon, General Partner at Partech.

This announcement comes despite a 54% decline in VC funding for African startups in 2023, according to Partech Africa's "2023 Africa Tech Venture Capital" report released in January 2024. However, the firm emphasizes that the sector's attractiveness remains undimmed, citing consistently high investment amounts and the influx of new players like themselves.

Partech has also opened a new office in Lagos, Nigeria, to deepen its African presence, joining its existing locations in Dakar, Senegal, and Nairobi, Kenya. The new fund has already invested in three startups: a real estate platform in Egypt, a payment orchestration firm in South Africa, and an e-commerce platform in Senegal.

Adoni Conrad Quenum

The COVID-19 pandemic's disruptions exposed the need for robust digital infrastructure and skills across Africa, sparking a surge in initiatives aiming to bridge the digital divide and accelerate economic transformation.

The United Nations Economic Commission for Africa (ECA) and Google signed a Memorandum of Understanding (MoU) today at the Africa Business Forum in Addis Ababa, Ethiopia, to boost digital transformation across the continent.

Commenting on the merits of the initiative, Claver Gatete (photo, right), Executive Secretary of the ECA, said it had the potential to deliver significant results in addressing digital challenges and bridging the digital divide in Africa. He also emphasized Google's central role in improving connectivity in Africa, supporting African innovators and entrepreneurs, and building digital capacity.

As part of this partnership, the two parties will collaborate in three key areas. Firstly, they will focus on start-up development, to enable 1 million start-ups to generate $100 billion in revenues by 2033. Secondly, they will focus on training young people in ICT, with plans to train 5,000 young African students and 200 teachers in computer science and robotics. This training will support their participation in global competitions, such as the Robotics Olympiad, and increase Africa's representation in this field.

Finally, both partners will work to strengthen cybersecurity in the region. This will be done through dialogues with government officials, training workshops, collaborative research, and the sharing of best practices in cybersecurity. Ultimately, these initiatives will help bridge the digital divide in Africa by promoting infrastructure development and affordability, a sound regulatory environment, and fostering digital skills.

Samira Njoya

Technological advancements offer African countries grappling with rising crime rates an opportunity to leverage this tool for enhanced law enforcement. In Africa, technology supports crime-fighting endeavors by enabling real-time tracking and monitoring of criminal activities, leading to faster response times and improved resource allocation for law enforcement agencies.

Lagos State Commissioner of Police, Ayoade Fayoade, in an interview on Friday, February 16, 2024, announced the reactivation of the police force’s tracking device to tackle kidnapping and other crimes in the state. This reactivation comes in response to rising kidnapping cases reported in the country.

Measures have been intensified to address residents’ concerns about kidnapping in various parts of the state. Fayoade stated, “We have reactivated our tracking devices and deployed personnel in identified kidnap-prone areas such as Igbogbo, Ijede, and Idimu.”

In Nigeria, kidnapping has become a profitable criminal enterprise, attracting new perpetrators who hold victims hostage in exchange for ransom. In 2018, Nigeria had the highest number of kidnapping for ransom cases worldwide, as reported by the International Centre for Investigative Report in their article titled “The Cost of Getting Kidnapped in Nigeria.” The incidents of kidnapping started to rise in 2014, with 897 victims recorded, and peaked in 2021, with 5,287 victims, the report further revealed, placing the country “among the Costelli Kidnap Ransom Top Ten Countries for Kidnapping Foreign Citizens in 2022.”

The reactivation of the tracking device and collaborative initiatives demonstrate the proactive approach of the Lagos State Police Command in safeguarding residents against the menace of kidnapping and associated crimes.

Hikmatu Bilali

Despite progress, nearly half of Nigeria's population remains offline, underscoring the country's persistent digital divide. This gap is largely attributed to the lack of internet infrastructure in rural areas. The government is aiming to bridge this divide by launching new initiatives, but challenges remain.

Nigeria's Communications, Innovation, and Digital Economy Minister, Bosun Tijani, announced on Monday the launch of the "Project 774 LG Connectivity" to address limited Internet and digital access by connecting all 774 local government secretariats in the country to the Internet.

The initiative aims to foster inclusive development and access to digital public infrastructure in government offices across Nigeria, including remote areas that may have been previously underserved or unserved. Co-financed by Nigerian Communications Satellite Limited (NIGCOMSAT) and Galaxy Backbone, it is placed under the supervision of the Federal Ministry of Communications, Innovation, and Digital Economy.

The project aligns with President Bola Ahmed Tinubu's "Renewed Hope" program and the Ministry's strategic plan. It will provide local governments with reliable and affordable Internet access, promoting efficient public services and transparency. As the foundation of governance at the local level, local government secretariats will play a more crucial role in shaping the country's socio-economic landscape.

The initiative will also contribute to digital inclusion in the country, creating at least 300 direct jobs as the project is rolled out nationwide, and potentially more indirect jobs through increased digital access.

Samira Njoya