The United Nations Development Programme (UNDP) is spearheading a groundbreaking initiative to bolster the tech startup ecosystem across Africa. In collaboration with several African governments and key private sector players, the UNDP plans to raise $1 billion to establish a series of technology hubs designed to foster innovation and support young entrepreneurs on the continent.
Launch of the Timbuktoo Initiative
This ambitious plan, known as the Timbuktoo Initiative, will see the creation of 10 tech hubs across Africa, making it one of the world’s largest initiatives supporting tech startups. The first of these hubs is set to launch at the UNDP’s innovation centre in Lagos, Nigeria, in the coming days. This hub will serve as a beacon for technological advancement and startup growth in West Africa.
Following the Lagos launch, other hubs will be established throughout 2024 in strategic locations across the continent. These include an agritech hub in Accra, Ghana; a healthtech hub in Kigali, Rwanda; and a minetech hub in Lusaka, Zambia. Each hub will focus on specific sectors relevant to their regions, providing tailored support to startups in these fields.
University Innovation Pods
In addition to the tech hubs, the UNDP has initiated University Innovation Pods in 13 African cities. These pods are designed as centres for research and development, offering young innovators the resources and space needed to transform their ideas into viable products and profitable ventures. This initiative aims to harness the creative potential of Africa’s youth and drive forward the continent’s innovation agenda.
Supporting Youth-Led Startups
According to Ahunna Eziakonwa, Assistant Secretary-General and Director of the UNDP Africa Bureau, this initiative marks a significant milestone in the agency’s mission to ignite a startup revolution in Africa. The focus will be on the continent’s burgeoning youth population, with the $1 billion fund — sourced from both private and public institutions — set to support over 10,000 youth-led startups across various economic sectors.
A Boost for Africa’s Startup Ecosystem
The $1 billion fund is expected to provide a much-needed boost to African tech startups, particularly in light of the recent decline in venture capital inflows in 2023. Historically, about 83% of venture capital in Africa comes from outside the continent, with a significant portion directed towards Nigeria, Kenya, South Africa, and Egypt. These countries have seen substantial growth in the fintech sector, which accounts for approximately 60% of the total venture capital inflows.
On January 17, 2024, Techpoint Africa reported that the UNDP entered into a partnership with various African countries to launch the Timbuktoo Initiative. This partnership aims to raise and allocate $1 billion to create 10 million job opportunities and positively transform 100 million lives across the continent.
Africa’s Growing Market Potential
Africa is home to the world’s fastest-growing and most youthful population, positioning the continent as a lucrative market for finance, agriculture, and healthcare startups. This has already given rise to several unicorns — companies that have achieved a pre-market valuation of at least $1 billion — such as Interswitch, Flutterwave, and Jumia.
Conclusion
The UNDP’s $1 billion initiative represents a monumental effort to cultivate a thriving startup ecosystem in Africa. By providing the necessary infrastructure, resources, and support, this initiative aims to empower young entrepreneurs, stimulate economic growth, and transform millions of lives across the continent. As the world watches, Africa stands on the brink of a new era of innovation and opportunity.
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