The United Nations Development Programme (UNDP) has launched a bold and ambitious “timbuktoo” initiative together with African countries to support the African startup ecosystem.
Promoted by the UNDP, timbuktoo aims to address critical gaps and work with African governments, investors, corporates, and universities, to support the African startup ecosystem.
The initiative was presented at a special session at the ongoing World Economic Forum in Davos, Switzerland.
President Paul Kagame of Rwanda, President Nana Akufo-Addo of Ghana, the Secretary General of the African Continental Free Trade Area Secretariat, HE Wamkele Mene and UNDP Administrator, Mr Achim Steiner, presented the initiative.
The initiative is positioned to be the world’s largest financing facility bringing catalytic and commercial capital together to support Africa’s startup ecosystem.
“We cannot accept that another generation of African young people do not have the tools to reach their full potential,” emphasised Kagame.
He announced an immediate contribution of 3 million dollars to start the timbuktoo Africa Innovation Fund which will be hosted in Kigali.
“With timbuktoo’s billion-dollar target, we can create more opportunities for Africa’s youth to put their talent and creativity to good use.
“For many African countries, our foremost challenge now is to ensure we put in place the right structures to enable young Africans to create innovative and compelling businesses that can contribute significantly to job creation and sustainable economic growth.
“I’m excited about the future of our continent. I look forward to seeing us create a future where innovation is encouraged, ingenuity is supported and prosperity is shared,” he said in a statement.
According to him, timbuktoo is a new model of development, saying, “we are gathering key actors to push on all fronts at the same time.
“From startup-friendly legislation, global-class startup building, and de-risking capital to increase investment, to the UniPods – University Innovation Pods – across Africa, we aim to fill critical gaps and support the startup ecosystem.
“This will enable innovations to grow and benefit people in Africa and elsewhere on the planet.”
Currently, Africa’s share of global startup value stands at just 0.2 per cent, compared to 2 per cent of global trade value.
The vast majority, 89 per cent, of venture capital coming into Africa is foreign capital and 83 percent is concentrated in four countries: Nigeria, Kenya, South Africa, and Egypt, with over 60 percent of capital flowing to one sector, fintech.
“A knowledge-driven African economy can transform the continent, far beyond even the wealth of the resources that lie beneath its ground and on its land.
“It is a true revolution,” emphasised Ms Ahunna Eziakonwa, UNDP’s Assistant Administrator and Regional Director for Africa.
She said timbuktoo would turn ideas and nascent innovations into meaningful scaling and disruptive pan-African enterprises.
This, she said, would attract global and local investment, generate wealth and wellbeing for millions of people in Africa and beyond.
“With an unparalleled surge in private venture capital investments, growing six times faster than the global average in 2022, a vibrant youthful population and rapidly expanding tech startups, Africa is a future tech powerhouse.
“Key African companies are already leading in some global digital technologies, such as mobile money, and millions of people are leapfrogging traditional development paths.
“Timbuktoo’s ambition is to mobilise and invest 1 billion dollars of catalytic and commercial capital to transform 100 million livelihoods and create 10 million dignified new jobs.
“What makes timbuktoo unique is its design, which blends commercial and catalytic capital to de-risk private investment, with a pan-African approach to supporting startups,” she explained.
