Africa, with its young population and entrepreneurial spirit, holds great promise. High-growth startups, especially in technology, aim to create quality jobs while addressing local needs. However, major obstacles limit their progress, including gaps in information and skills, difficulties in accessing funding, and inadequate infrastructure. This is where tech hubs make a difference.

Tech hubs : Growing ecosystem

The technological innovation landscape in Africa is rapidly expanding. In 2010, only a few hubs existed on the continent. Today, Africa boasts 1,031 tech hubs, according to the International Trade Center (ITC). These hubs support young businesses with limited resources. The health crisis has accelerated this trend, boosting digitalization. In 2019, Africa had 643 tech hubs, and this number increased by 60 % in just two years.

The ITC study « Tech Hubs in Africa, Accelerating Start-ups for Resilient Growth 3rd Edition 2024 » highlights Nigeria, which stands out with 164 hubs. South Africa comes second with 96 centers, followed by Kenya with 90 tech hubs. Across the continent, 53 % of these hubs focus on community development, while 45 % also provide direct support to businesses.

Pandemic’s impact on hubs

The health crisis has deeply affected the activities of African tech hubs. About 73 % had to temporarily close their premises. Those that remained open enforced strict measures. Despite these efforts, physical closures had immediate financial consequences. Approximately 8 % of the hubs shut down permanently.

Financing, already a challenge, has become an even greater obstacle. Moreover, the need for financial resources is growing more urgent. Many hubs are forced to rethink their business models and now offer more online training to adapt to current constraints. According to the ITC, most of these hubs cannot survive solely on their revenues. They also rely on external funding, such as grants and government incentives to attract investors.

Categories and specialties of African tech hubs

African tech hubs fall into eight main categories, each playing a distinct role in the entrepreneurial ecosystem. This diversity stems from different business models and services offered. Some hubs specialize in tailored programs for specific sectors. Common services include training, mentoring, and networking events. However, few offer direct access to funding.

Among the different categories, accelerators, incubators, and innovation centers are key players. Accelerators provide structured guidance to help businesses grow quickly. Incubators offer mentorship and essential resources, sometimes with financial support. Innovation centers focus on creating and developing innovative projects.

Other structures, like hackerspaces, maker spaces, and fab labs, play a more marginal role. These offer tools for prototyping digital products. Coworking spaces, meanwhile, encourage collaboration and productivity through shared resources.

Venture builders and tech parks foster rapid growth, while venture capital firms provide crucial funding access. However, these firms remain scarce across the continent, making it difficult for startups to secure capital.

Target sectors for African tech hubs

African tech hubs mainly target three sectors:

• Agriculture
• Financial technology (fintech)
• E-commerce

Agri-tech accounts for 22 % of hub activities, followed by fintech with 17 %, and e-commerce at 11 %. These sectors are the most dynamic and attract numerous startups, benefiting from solid investments. Additionally, these key areas offer entrepreneurs a unique opportunity to create significant social impact in line with digitalization and sustainable development goals.