Start-up ecosystems beckon opportunity for universities

With an increase in the number of African countries included in the global top 100 start-up ecosystems, the continent’s universities should use this as an engine of job creation and economic growth, especially with the pandemic raging.

The rise of tech start-up ecosystems across the African continent was highlighted in the Global Startup Ecosystem Index 2021 report released on 17 June by StartupBlink, a global start-up ecosystem map and research centre.

The Global Startup Ecosystem Index (GSEI) measures ecosystems based on three metrics, including the number of start-ups (quantity), their quality, and their business environment.

Africa’s start-up ecosystem trajectory appears to be on the move.

The 14 African countries in the global top 100 start-up ecosystems include South Africa (48), Kenya (61), Nigeria (63), Rwanda (69), Egypt (70), Mauritius (73), Ghana (81), Tunisia (82), Cape Verde (87), Somalia (94), Morocco (95), Uganda (97), Namibia (99), and Ethiopia (100).

For the first time since this report has been published, an African country was included in the top 50, with South Africa increasing four spots, to be ranked 48th globally.

Other notable increases in Africa are Egypt, which climbed 11 spots to rank 70th, and Nigeria, which leapt five spots to now rank 63rd globally.

With its debut in the GSEI, Mauritius is now ranked in the 73rd position. Making the cut for the first time, Namibia is ranked 99th, and the vibrant seed ecosystem of Ethiopia 100th globally.

Somalia, in 94th position, is another example of innovation flourishing under tough economic circumstances, prompting the GSEI report to say: “We were inspired to see how the public sector and local entrepreneurs have worked hard to foster high-quality innovations aimed at solving some of the country’s biggest problems.”

And: “Very few would imagine that Somalia, with its challenging situation, could have such a growing and vibrant start-up ecosystem.”

When looking at cities, Lagos in Nigeria now commands the top spot in Africa in 122nd position after switching places with Nairobi, Kenya, which now ranks 136th. Egypt’s Cairo has had a significant increase of 21 spots to rank 180th globally.

While the Eastern, Northern, Southern and Western Africa sub-regions are represented in the index, Central Africa still has no representation in the rankings.

Four African countries, Kenya, South Africa, Nigeria and Uganda, also feature in the global coronavirus innovation map, which ranks countries based on innovations and solutions produced to combat the coronavirus.

The positive performance by a number of countries could be enhanced by the launch, on 22 June, of Centre of Excellence in Science, Technology and Innovation.

The African Union Development Agency (AUDA-NEPAD), in partnership with South Africa’s Council for Scientific and Industrial Research (CSIR) and Stellenbosch University (SU), has launched the centre to upscale and commercialise home-grown innovations on the continent.

Strengths and weaknesses

Fortune Chuku, a contributor to the GSEI report, told University World News that the higher ranking of African countries in the index reflects the growth that is being experienced across Africa’s start-up ecosystems.

Chuku is a research analyst at Briter, a UK-based think tank and research organisation focused on innovation and technology across emerging markets. He is also the founder of Techative, a research-focused tech and start-up portal based in Nigeria.

Further testimony to Africa’s emergence is that eight African start-ups, located in Ethiopia, Zimbabwe, Nigeria, Kenya, Ghana, and Kenya, have been named as technology pioneers of 2021 by the World Economic Forum.

“Although still nascent, a lot of great companies have emerged in the last five years from tech start-ups, and they are beginning to attract global investors who are making big bets on African companies,” Chuku said.

He said Africa’s start-up ecosystems are still maturing, which provides opportunities for good returns to be made by investors. Urbanisation, the youth of Africa’s population and increasing internet penetration rates add to the allure.

On the downside, reduced spending, poor infrastructure and unfavourable regulations still restrict growth, Chuku said.

Universities as builders of start-up ecosystems

Chuku noted that universities represent hubs where innovations can be nurtured, and that research from these institutions can influence and improve industry practice.

“In developed economies, universities, such as the Massachusetts Institute of Technology (MIT) in the US, power their local tech ecosystem by supplying knowledge and talent to meet business needs,” he said.

Similarly, Chuku said, African universities can provide support for their local start-up ecosystems by producing research, knowledge and talents that are influenced by the needs of society.

“However, poor funding is a major challenge, as most African universities depend on government grants, which are largely insufficient to fund research and development programmes.”

As a result, African universities still lag in helping to develop start-up ecosystems.

“With the realisation that government grants and student fees are insufficient to fund research efforts and entrepreneurship programmes at higher learning institutions, African universities must then seek non-government grants if they are to provide support for start-up ecosystems,” Chuku suggested.

“Additionally, African universities can develop intellectual property policies that would enable them to co-own inventions and share royalties with inventors that use their facilities or resources.”

Higher education expert Ahmed Atia, head of the department of advisory and research in the faculty of medical technology at the University of Tripoli in Libya, also welcomed the performance of the 14 African countries in the Global Top 100 Start-up Ecosystem Index.

“In the highly turbulent and unpredictable financial environment resulting from COVID-19, the appropriate response of African universities to support start-ups is to become entrepreneurial universities, where they act as knowledge-producers and disseminating institutions, as well as a driving force for economic growth, employment creation and competitiveness,” Atia told University World News.

The proposed African entrepreneurial university must move to cure itself from the isolation syndrome of traditional universities, and start providing a helping hand to local and regional start-ups through tech-specific initiatives such as incubators and accelerators, as well as practical entrepreneurship courses within the curriculum, Atia said.

A start-up alliance

Professor Juma Shabani, the director of the doctoral school at the University of Burundi and a former director of development, coordination, and monitoring of UNESCO programmes with a special focus on Africa, proposes an African university start-up alliance that could promote cooperation with regard to research, education and innovation, as well as boosting knowledge and technology transfer.

Such an alliance could act as a hub for connecting stakeholders such as entrepreneurs, investors, regulators, and corporate institutions, along with start-ups, tech parks, science cities, business incubators and African universities, Shabani told University World News.

The AUDA-NEPAD Centre of Excellence in Science, Technology and Innovation (AUDA-NEPAD CoE-STI) is a development that could promote the type of cooperation on the technology and innovation front in Africa that experts have been calling for.

It is one of five centres of excellence, which are the African Union’s instruments for advancing knowledge and science-backed innovations to support accelerated implementation of its Agenda 2063.

Under the tripartite partnership, the AUDA-NEPAD CoE-STI aims to leverage the research and science capabilities from the continent and connect this to policy and implementation efforts to respond to continental development priorities, according to a statement on the launch.

The AUDA-NEPAD CoE-STI also provides a continental platform for supporting and sourcing of funding and other resources for the up-scaling, dissemination and localisation of proven innovations from research and partner organisations.

The centre will connect African-driven knowledge and research hubs with other knowledge and research ecosystems across the continent. Furthermore, it will act as a platform for innovators to access alternative options regarding how to reach their clients when rolling out new solutions.

“The COVID-19 crisis has shown that science, technology and innovation play a vital role in fighting the devastating impact of the pandemic. The continent needs to look inwards to develop, strengthen and upscale innovations that could help fight the pandemic and build greater resilience in the post-COVID era.

“Through the CoE-STI partnership with CSIR and SU, AUDA-NEPAD is proud to act as a channel to connect African innovators to governments and clients to roll out and localise these home-grown solutions,” said Dr Ibrahim Mayaki, the CEO of AUDA-NEPAD.