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When a factory in Rwanda’s capital of Kigali debuted Africa’s first made-in-Africa mobile phones in October, their provenance wasn’t the only surprise: The devices also came loaded with higher-end features like fingerprint sensors for unlocking the screen that many rival phones used across the continent lack. It wasn’t just a push for African tech but also African quality.
The factory, owned by Rwandan company Mara Group, was a significant milestone for Kigali, which has spent a generation emerging from the ashes of the nation’s genocide in 1994 by refashioning itself as a tech hub. Already, the city is home to several tech incubators, a Carnegie Mellon University engineering campus, and local startups that produce such items as drones and cashless payment systems. Another noteworthy initiative is the establishment of Rwanda university in the city of Butare, which hosts the Rwandan National Institute of Scientific Research. “It boils down to our turbulent past, being left with nothing, and using ashes as a construction tool for unity,” says Paula Ingabire, Rwanda’s tech minister.
Hamstrung by poverty and the legacies of the slave trade and colonialism, Africa had, until recently, been mainly left behind by the global tech boom. But increasingly, it’s having success nurturing tech startups and attracting major foreign tech companies. In November 2019, Visa invested $200 million in Nigerian payments firm Interswitch at around the same time that OPay, a Norwegian-owned but Lagos-based mobile payment service, raised $120 million from high-profile investors including Sequoia Capital China and SoftBank Ventures Asia. Meanwhile, in May, Microsoft opened offices in Kenya and Nigeria for engineers working on artificial intelligence, machine learning, and mixed reality. A month earlier, Google opened an A.I. lab in Ghana. In another sign of Africa’s growing tech buzz, Jack Dorsey, CEO of Twitter and payment-terminal maker Square, tweeted in November that he would spend up to six months in 2020 living on the continent. “Africa will define the future,” he said.
Still, Africa’s growing tech scene remains small and, in many ways, limited by some very stark realities on the ground. Nearly 600 million Africans lack electricity, including as many as two-thirds of sub-Saharans, and 85% of the continent’s residents live on less than $5.50 a day. Such challenges are compounded by the inevitable operational problems that all startups face, regardless of their location. For example, Nigerian online retailer Jumia Technologies, which in April became Africa’s first tech company to hold an initial public offering on the New York Stock Exchange, recently shuttered its e-commerce operations in Tanzania and Cameroon, along with its food delivery service in Rwanda. As of mid-December, its shares had plummeted nearly 87% from their peak.
On the bright side, access to venture capital is growing. Investors poured $1.2 billion into African startups in 2018, more than triple the amount of two years earlier. Of all the African countries pushing into tech, Rwanda stands out. A hilly nation of 12 million that’s similar in size to Maryland, its effort is centred on Kigali, named “world’s cleanest city” by the World Economic Forum. The drive has already attracted Co-Creation Hub, a design lab from Lagos; Norrsken, a coworking space and investment fund from Stockholm; and Carnegie Mellon University, which opened its campus for 300 graduate students in 2011 and upgraded to a new campus in November.