Choosing Africa: France’s commitment to the continent’s startups.
Last week I visited Paris to attend Total’s Startup of the Year awards as a guest of Patrick Pouyanne, Chairman and CEO of Total. The company is a French multinational integrated oil, gas, solar and renewable energies company founded in 1924 and one of the world’s seven “Supermajor” oil companies.
The Startup of the Year is an initiative to support startups in the countries where Total has a presence, especially in Africa. It looks at startups that are solving today’s social challenges in their communities and most applicants were from Nigeria, Uganda and South Africa. Pouyanne reiterated just how important it is for Total to invest in the communities in which they operate. This includes supporting these social entrepreneurs with mentorship, coaching and seed grants to help them scale their businesses. The grand prize winners were from Nigeria, with one winner from Uganda and one from South Africa.
It was my third visit to Paris and the city’s entrepreneurial ecosystem remains inspirational to me. It might not be perfect, but it’s something to experience and absorb where the active stakeholders and the coordination that exists among them is strong. My visit was not without controversies as the yellow vest movement protested all over Paris seeking economic justice for the middle- and low-income class. That’s discussion for another day!
Paris also boasts Station F, the world’s largest startup campus, while organisations such as Paris & Co, Jokkolabs led by Karim SY that provide incubation and help build startups are also worth noting. Karim also seats on the French Presidential Advisory Council for African startups. In addition, the French Development Agency (AFD) and Proparco are always eager to look at new initiatives and high impact startups to fund, with the spotlight specifically on Africa.
The French President Emmanuel Macron is a leader that recognises that Africa is the new frontier and he’s launched an initiative called Choose Africa to accelerate the growth of MSMEs and entrepreneurship on the continent. The initiative aims to commit over €2.5 billion to financing MSMEs and entrepreneurs by 2022. This is divided as €1.5 billion in credit lines and guarantees to local financial institutions dedicated to MSME financing, or guarantees to banks to share the risk on MSME lending and €1billion in private equity, either through direct investments in companies or indirectly, via private equity MSME-focused funds. He has frequented Africa since his Presidency and has even accelerated visits to the non-francophone African countries with visits just last two weeks to Djibouti, Ethiopia and Kenya where he announced an estimated 3 billion euros worth of deals to the East African powerhouse.
It also provides venture capital equity investment into innovative high-potential start-ups, ranging from seed capital to Series C funding. Examples include Lynk Job Ltd, a Kenyan start-up that is transforming the informal sector, which received an indirect equity investment via the Novastar fund of US$ 5.5 million. Launched in 2016, the start-up has developed an online services platform that connects skilled workers in the informal sector with individuals or companies.
The initiative also supports the capacity development of incubators, accelerators, and investment readiness programmes. France is now really flexing its strategic muscle as a prominent partner to Africa’s development, with the focus on high-impact startups.
All I can say is Vive la France!
We are excited to announce that one of our Fintech startups, Maxicash App, is amongst the 5 African countries to have been selected to pitch at the Migration Challenge Startup Competition in Ecuador. The International Organisation of Employers (IOE) and Seedstars competition is targeted at the most promising HR, Fintech, Civitech and EdTech startups with solution-orientated products to improve migration systems that respond to the labour market.
Under the auspices of South Korea’s Ministry of Foreign Affairs, I was invited to visit the East Asian country last week by the Korea-Africa foundation to discuss and engage on sustainable ways to build a stronger Korea-Africa relationship, which was established last year.
This past weekend, the annual Geekulcha hackathon (GKHack19) took place at 22 on Sloane startup campus. Led by Mixo Ngoveni, it focuses on boosting and sustaining a strong geek culture in South Africa.