Francophone African nations are taking steps to enhance their startup ecosystems, but a unified regional approach remains elusive.In a hotel room in Abidjan, the economic hub of Côte d’Ivoire, Freddy Mpinda, an advisor to the digital minister of the Democratic Republic of Congo (DRC), shares the strides his country is making to establish a thriving startup ecosystem capable of competing with the continent’s leading players—Egypt, Kenya, Nigeria, and South Africa.These four countries dominate Africa’s startup metrics, from funding and the number of startups to IPOs and exits. According to data from Startup Blink, they consistently rank as the top startup ecosystems in Africa, alongside Mauritius. Historically, they attract the lion’s share of investment, accounting for more than half of the continent’s funding last year. In contrast, francophone countries rarely appear in these rankings.Mpinda remains optimistic about the potential of francophone Africa. He recounts the initiatives introduced under President Tshisekedi, including the launch of a national digital strategy, the establishment of a digital ministry, and the creation of a dedicated agency for developing the digital economy. The government also enacted a startup act in 2022.
“These reforms are making an impact,” Mpinda explains. “For instance, tax collection has improved through the use of technology, and e-learning solutions have proliferated since the pandemic began. If COVID-19 were to resurface, the DRC would be better prepared for online learning.”However, Mpinda acknowledges that government efforts alone cannot sustain an ecosystem. A cultural shift is needed to encourage entrepreneurship, as many young people in the region prefer public sector jobs over starting businesses. “We need our youth to embrace private enterprise and create wealth. Our goal is to inspire them to build successful businesses,” he adds.Signs of progress are emerging. Congolese fintech startups like Tuma, which raised $500,000 in June, and VaultPay, a Y Combinator Summer 2023 selection, illustrate the growing potential of the DRC’s startup scene.
Building Foundations in Benin.
In Benin, government efforts are centered on improving internet access and digitizing public services. The country has built a Tier 3 data center and plans to construct additional facilities to ensure secure, in-country data storage. Maximilien Kpodjedo, digital project manager for the president, highlights these advancements, noting how a new 3,000-kilometer fiber-optic network has increased internet penetration from 20% in 2016 to over 70% by 2022.To foster entrepreneurship, Benin offers tax incentives for startups during their formative years. Import duties on essential business equipment are also waived. An upcoming startup act is expected to further accelerate the development of the ecosystem.The government is also investing in talent. Ouanilo Medegan Fagla, a director within the country’s digital systems agency, describes initiatives like Hacker Lab, a national challenge that identifies and nurtures promising young tech talent. “We trust our youth and equip them with the skills they need to innovate,” he says.
Startup Acts and Regional Challenges.
Tunisia and Senegal have enacted Startup Acts, with Côte d’Ivoire set to follow. In Tunisia, additional programs provide grants to promising startups, reflecting a broader commitment to fostering innovation in francophone Africa.However, the journey is not without obstacles. Political interference, such as internet shutdowns in Senegal and Gabon, undermines progress. These shutdowns, often linked to political unrest, erode investor confidence and stifle innovation. Moustapha Ndoye, CEO of Senegalese logistics startup Chargel, describes these interruptions as damaging to the trust essential for ecosystem growth.
A Call for Collaboration.
For francophone Africa to emerge as a tech powerhouse, a more cohesive regional effort is necessary. The region’s shared language, currency, and cultural ties present a unique opportunity to build a unified ecosystem capable of rivaling Africa’s leading startup hubs. With stronger collaboration, francophone Africa could secure its place at the forefront of the continent’s digital revolution.
