Other tech hubs, such as an agritech hub in Accra, Ghana; a healthtech hub in Kigali, Rwanda; and a minetech hub in Lusaka, Zambia, are expected to open around the continent later in 2024, according to the UNDP. According to the UN agency, University Innovation Pods have been established in 13 African cities as centers for research and development as part of the program, which aims to provide young innovators with a platform to convert their ideas into commercial companies and products.
According to an email statement from UNDP Africa Bureau Director and Assistant Secretary-General Ahunna Eziakonwa, the project marks a significant advancement in the agency’s goal of igniting an African startup revolution. With over 10,000 youth-led companies throughout the continent’s economic sectors supported by the hubs and a $1 billion fund raised from private and public institutions, the agency intends to concentrate this project on the youth population in Africa.
The UNDP and African nations partnered to start the Timbuktoo Initiative on January 17, 2024, according to Techpoint Africa. The initiative aims to raise and allocate $1 billion to create 10 million job opportunities and impact 100 million lives. With the youngest and fastest-growing population in the world, the continent has positioned itself as a profitable market for startups in the banking, agricultural, and healthcare sectors. Due to this, there are already unicorns, or businesses that are valued at least $1 billion before going public, including Interswitch, Flutterwave, and Jumia.
African digital entrepreneurs will benefit greatly from the $1 billion fund, especially in light of the sharp drop in venture capital inflows expected in 2023. Eighty-three percent of venture capital in Africa originates from outside the continent; most of it goes to nations like South Africa, Nigeria, Kenya, and Egypt, while sixty percent of the total is accounted for by the fintech sector.
