Over the last two years, global telecommunications group Telecel’s Africa Startup Initiative Programme (Asip), which is powered by startup accelerator Startupbootcamp Afritech, has contributed more than R15-million to the growth of African startups in the agricultural technology, supply chain, Internet of Things and connectivity, machine learning and data analytics, cybersecurity, clean technology and regulatory technology sectors.
Since its inception, Asip has prepared numerous entrepreneurs to win their first clients through mentorship and developing pilot projects, as well as providing access to investment.
This is achieved with the help of partners such as technology giants Google and Amazon, as well as Senegalese governmental organisation DER/FJ.
The programme scales early-stage startups through intensive coaching and opportunities for pilots and proof-of-concept projects that open the doors for longer-term commercial agreements.
With nearly 2 300 applicants vying for one of ten positions in the three-month accelerator, a strict and competitive selection process is in place.
“Since we started this programme, the number of startups applying and the problems that they are solving are immense. We believe that many of these startups will be playing vital roles in the growth of the continent,” Telecel Mobile CEO Malek Atrissi said in Ghana earlier this month.
According to research organisation Statista, about 500 financial technology (fintech) startups are currently headquartered in Africa, showing a growth rate of more than 17% over two years.
Most startups in Africa are focused on fintech – about 62% – and this sector has captured the largest share of funding on the continent. Almost two-thirds of the total funding into technology companies in Africa went to fintech startups.
Moreover, the failure rate for startups in Africa was estimated to be about 50%, mainly owing to a lack of access to funding, mentoring and markets.
About 88% of the startups in Asip, however, are still operating and scaling, with about half becoming self-sustaining on commercial contracts.