Africa’s tech hubs are really growing according to Briter Bridge’s and AfriLabs report. They are moving on well as the continent looks to create privately held startup companies valued at over $1 billion. The report from Briter Bridges and AfriLabs notes that as of October, many hubs were identified across the continent of Africa, and this includes co-working spaces, incubators, accelerators and hybrid innovation hubs affiliated with government, universities or corporates. The founder for Briter Bridges says that inspire of having growing hubs in Africa, 25% of those hubs only offer co – working facilities and no specific business support programme for startups and entrepreneurs, but the majority – almost 500 of the hubs – provide some degree of in- kind or cash support
According to the report, Nigeria has the most hubs per country, with 90, which is followed by South Africa’s 78, Egypt 56, Kenya 50. Some leading hubs in South Africa include the Innovation Hub, Silicon Cape, AlphaCode, JoziHub, Impact Amplifier and Cape Innovation and Technology Initiative Hub, among others. The survey was put in place to more than 600 Hub managers, based on Briter Bridges’ latest data on innovation hubs in Africa. The latest data on innovation hubs in Africa. The respondents differ by type, legal structure, location, and support criteria such as sectors of preference. Ninety ,- two responses represent 15% of the total number of identified, eligible ,organisations.
The respondents include a division between private, for – profit organisations and a mix of non profit, academic institutions, programmes and associations and were distributed across 34 countries. Because almost 59% of the existing hubs consist of non profit organisations or donor funded organisations, the discussion around financing received and the allocation of funds has been crucial, based on what the report says. Active funders for these hubs across Africa are corporate sponsors, philanthropic organisations and NGOs, who have proven to be the best funders, while it notes that 60% of all respondents claimed to receive external funding and the majority of hubs surveyed claimed to have received less than $100 000 in funding from various sources.
The founder for Briter Bridges, says that several hubs also partner with their local government or international subsidiaries to get support for their activities according to the surveyed hubs, the majority of funding received is largely used to cover operational costs and programmes. He also adds that wages and facilities still present the highest costs on average, while energy and rent – related costs vary respectively depending on whether the hubs are located in areas with unreliable access to electricity or in costly neighbourhoods.