$18 Billion Initiative Aims To Establish 10 Tech Hubs Across Africa

$18 billion tech hubs initiative in Africa: The United Nations Development Programme (UNDP), in collaboration with African governments and the private sector, has announced a groundbreaking $18 billion initiative to establish a network of 10 technology hubs across the continent. 

The first of these hubs will open this week at the UNDP’s innovation center in Lagos, Nigeria, marking a crucial milestone in the agency’s mission to ignite a startup revolution in Africa. 

Ahunna Eziakonwa, the Assistant Secretary-General and Director of the UNDP Africa Bureau, described this initiative as “a key milestone in the journey towards sparking a start-up revolution on the continent.” 

Diverse Hubs Across Africa

The ambitious plan will see the launch of additional tech hubs in various African countries throughout 2024. 

These include a Healthtech hub in Kigali, Rwanda, an Agritech hub in Accra, Ghana, and a Minetech hub in Lusaka, Zambia. 

The $1 billion facility, to be raised from private and public institutions, will support more than 10,000 youth-led tech firms and startups across the continent’s economic sectors. 

$18 Billion Tech Hubs Initiative in Africa: Taapping into Africa’s Youthful Population

Africa is home to the fastest-growing and most youthful population in the world, with tech-savvy young people increasingly using mobile technology to bridge gaps in services. 

This has created a lucrative and rapidly expanding space for startups in sectors such as finance, agriculture, and healthcare, giving rise to several African “unicorns” – companies that have achieved a pre-market valuation of at least $1 billion, including Interswitch, Flutterwave, and Jumia Technologies. 

Boosting Startup Innovation

The $18 billion initiative is a significant boost for African technology and startup firms, particularly after a decline in venture capital inflows in 2023. 

According to a report by the London-based African Private Capital Association, venture capital investments in Africa fell by 31% in 2023 to $4.5 billion, as investors abandoned African economies struggling with high inflation and weakening local currencies. 

Read More: Timbuktoo in a Move to Assist African Startups

University Innovation Pods

In addition to the tech hubs, the UNDP initiative has also launched University Innovation Pods in 13 African cities, serving as centers for research and development and offering young innovators the space to transform their ideas into viable products and profitable ventures. 

The Timbuktoo Initiative, as it is called, is a testament to the UNDP’s commitment to fostering a thriving startup ecosystem in Africa and unlocking the continent’s immense potential. 

With the $18 billion investment and the establishment of these strategic tech hubs, Africa’s entrepreneurs and innovators are poised to drive transformative change across the region.

Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @Siliconafricatech, or Facebook @SiliconAfrica.