Start-up businesses and innovation are soaring across Africa. With the world's second-largest continent looking towards the future, countries across the region are setting their sights on economic prosperity.
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00:00 Startups across Africa are booming,
00:03 but what are governments, CEOs,
00:05 and investors doing to bring together
00:08 the talent and technology of so many countries?
00:12 Welcome to The Exchange from our studio here in Doha.
00:18 Now, the countries and companies of
00:20 Africa's tech ecosystem are diverse,
00:23 but new ways are emerging for entrepreneurs to collaborate
00:27 across borders and capitalize on natural advantages
00:30 like demographics and network coverage.
00:33 Well, according to the United Nations,
00:35 Africa is the continent with the world's youngest population.
00:39 70% of people are under the age of 35,
00:43 40% are under 15, and that's the age group
00:47 that was born into the digital age.
00:50 Well, close to half a billion Africans
00:52 have a smartphone subscription.
00:54 That's higher than the US and UK combined.
00:58 Companies are capitalizing on these ultra-connected customers
01:02 and tech startups are emerging at a rapid rate,
01:05 so fast, in fact, that the growing ecosystem
01:08 of African tech firms is predicted
01:10 to be worth $712 billion by 2050.
01:15 So how are governments harnessing all this potential?
01:18 Well, over the last decade, Ethiopia has been one of Africa
01:21 and the world's fastest-growing economies.
01:24 Let's go to the capital, Addis Ababa,
01:26 and speak to the Minister of Labour and Skills,
01:28 Her Excellency, Mferahat Kamil.
01:31 Minister, what are you doing
01:32 to stimulate Ethiopian innovation,
01:34 and how is that impacting the rest of the continent?
01:37 Ethiopia is embarked upon
01:40 a very comprehensive reform agenda since 2018.
01:45 As part of the reform agenda,
01:50 investing on human capital has become a number one priority.
01:55 The government has taken several initiatives
01:59 following this commitment.
02:02 The first one is institutionalizing
02:05 the subject matter itself,
02:07 innovation and entrepreneurship.
02:10 Ethiopia believes that developing together
02:13 with its neighbours, so as our fates are together,
02:19 we are very much committed to work
02:23 with our sisterly and brotherly countries
02:27 in integrating in terms of infrastructure,
02:31 the free trade agreements,
02:33 and there are other regional integration as well.
02:36 Well, as we've heard from the minister there,
02:40 government strategies and free trade agreements
02:43 are helping to set the right conditions
02:45 for companies to grow.
02:47 But what about practical support on the ground
02:49 for smaller firms?
02:51 Our reporter, Deji Badmus, went to meet a tech entrepreneur
02:55 whose passion for supporting African retailers
02:58 has led to a $100 million investment.
03:01 Yes, Guy, informal stores or shops like the one behind me
03:06 account for most retail sales across Africa.
03:09 But there's one problem,
03:10 getting their supplies from manufacturers.
03:12 That's exactly where the B2B embedded
03:15 finance tech platform, Trade Depot, comes in,
03:17 serving as a bridge between manufacturers
03:20 and retailers using technology.
03:23 Driving the operation is CEO and co-founder,
03:26 Onyekachi Izukane.
03:27 He and his team are literally connecting consumer brands
03:30 in Africa directly to a target market
03:33 of retail outlets across the continent.
03:36 In Africa, the bulk of this retail doesn't happen
03:40 in the big supermarkets.
03:41 It happens in small neighbourhood stores.
03:44 And our thing is to create an e-commerce experience
03:49 for these retailers so they have a platform
03:51 that they can get everything they need from.
03:55 Today, Trade Depot stocks a wide range of inventories
03:59 of consumer goods in its warehouses.
04:01 It is from here that orders placed by retailers
04:04 are then distributed to their doorsteps.
04:07 You can simply just identify the items you want
04:11 and place a request on an app by calling a toll-free line,
04:15 by chatting over WhatsApp, whatever.
04:17 And then our job is to identify these items you want
04:21 and get them across to you by the next day.
04:25 The firm now serves a network of thousands
04:27 of retailers across Africa.
04:29 It also provides credit lines to enable these retailers
04:32 access inventory and pay in installments
04:35 as they sell on to their own customers.
04:37 75% of our user base is female-owned or female-led.
04:44 Now, a lot of these folks normally have no way
04:48 of getting access to credit.
04:51 In 2021, Trade Depot raised over $100 million
04:55 in equity and debt funding to scale its operations
04:58 and bring in more retailers into its platform.
05:01 The Nigerian-based company is one of the success stories
05:04 of tech startups on the continent.
05:08 Now, from one success story to an initiative
05:11 aiming to create thousands more.
05:14 The Global Startup Africa Awards and Fund
05:17 connects companies and investors across the continent.
05:20 I spoke to its founders about what
05:22 it takes to turn isolated examples of innovation
05:25 into pan-African prosperity.
05:29 The Global Innovation Initiative Group, our primary objective
05:33 is to find, fund, and grow globally relevant innovation
05:37 in Africa.
05:38 We have grown a pipeline, or have a growing pipeline,
05:42 of over 15,000 solutions, solving
05:45 some of the world's most critical challenges.
05:49 And together with that, we have a pan-African network
05:53 in order to connect and enable the different ecosystems
05:56 that we work in.
05:57 There are various studies that have been done.
06:00 The markets show the forecast up until 2075
06:03 that population demographics are one
06:06 of the fundamental key drivers of global growth.
06:09 There is only one young continent, and that is Africa.
06:15 Now it's time for our regular feature, Business in 60 Seconds.
06:19 Start the clock.
06:21 New York mega venue, Madison Square Garden,
06:23 will hold its AGM this month.
06:25 The venue has hosted some of the world's biggest acts
06:28 and sporting events this year, which
06:30 shareholders will be hoping will translate into good results.
06:34 With huge acts booked for 2024, it
06:36 could be an exciting year for concertgoers in the area.
06:40 Tech giant Microsoft will be hosting its AGM this month,
06:44 too.
06:44 Microsoft, in the last month, has announced
06:46 it will be launching a new chip product for upcoming AI
06:50 projects.
06:51 Shareholders will be hoping that this
06:53 will prove to be good news for the company's stock price.
06:57 And American wholesale chain Costco
06:59 will declare their quarterly results this month.
07:02 The huge company has grown from strength to strength
07:04 this year, with consumers looking
07:06 for more price-conscious deals as they shop.
07:09 The company has rolled out a new initiative,
07:12 offering members a free $40 voucher,
07:15 which they'll be hoping customers are quick to snap up.
07:21 So with a thriving business ecosystem,
07:24 companies across Africa are finding fresh ways
07:27 to connect and attract new customers.
07:31 If politicians and investors and CEOs
07:35 can continue to inspire Africa's youthful tech-savvy
07:38 populations, the future then looks
07:40 bright for the world's second biggest continent.
07:45 Well, that's all we have time for on this edition of the show.
07:48 Thanks for watching.
07:49 Please do check out euronews.com for all your latest business
07:52 news.
07:53 And join us again next time on The Exchange.
07:57 (upbeat music)