Rwanda is unarguably Africa’s leading tech destination with a new $1bn innovation hub
With Timbuktu, the home of the United Nations Development Programme’s (UNDP) new innovation funding hub, Rwanda is quickly becoming Africa’s first significant digital hub.
The UNDP’s goal for the new hub is to jumpstart Africa’s startup boom. It also seeks to debate early-stage risk capital gaps, as well as cultivate global-class entrepreneurs and create the ‘One Africa market.’
According to The New Times, the program seeks to invest $1 billion in incentive and commercial capital over the next ten years with the goal of building an innovation network that is evenly distributed throughout eight pan African centers located in various ecosystems across the continent.
More than 1,000 startups from all continents will benefit from this new project strategy.
Following a meeting between Rwandan President Paul Kagame and UNDP delegates, including Ahunna Eziakonwa, Assistant Secretary-General and Director of UNDP-Africa, it was agreed that UNDP would indirectly fund the venture building of each of the eight hubs, and UNDP is currently mobilizing funds for this purpose.
Each hub’s fund will be invested in subsidiary funds. These hubs will also be privately operated and will have to cooperate closely with talent centers, institutions, corporations, and the rest of the ecosystem.
After investing the eight hubs, the Parent Fund, UNDP, will equip them with subsidiary venture funds that will attract private co-investors. With a professional, experienced, yet private hub manager, each hub will become a global center for innovative brilliance.
Fintech, logistics, creatives, and agri-tech are among the targeted industries.
Rwanda, the lovely bride
Despite hurdles and economic difficulties, Africa’s technology sector is rapidly expanding. Its IT startups have thrived throughout the years, with Rwanda playing a significant role in this development.
While other African countries have larger digital businesses, Rwanda stands out because of its quick development.
Rwanda already has a tech ecosystem that attracts both international investors and start-up entrepreneurs on the continent. The building of Kigali Innovation City, as part of the government’s Vision 2020 project, has aided this reputation.
Rwanda’s capital, Kigali, has hosted some of the world’s most prestigious tech events, including the Africa Tech Summit and the GSMA Mobile 360 Africa. Andela built an office in Kigali in 2018, with the Rwandan government’s approval, to hire and train Rwandans.
The country also owns the Mara Phone, Africa’s first smartphone, which was released in 2020. In a statement to CNN, the company’s CEO, Ashish Thakkar, underlined the significance of this creation as a supporting key.
Now, it will host the Timbuktu fund.
