Lagos is set to pass Nairobi as Africa's startup capital

As Africa’s tech startups and their founders go about formulating disrupting industries or, in some cases, building new ones, they’ve typically tended to fungus opposite 3 vital ecosystems: Nairobi, Cape Town and Lagos.

But over a past year, Lagos’ explain as a continent’s startup epicenter has gained currency. For starters, it’s a continent’s most profitable ecosystem with a startups typically lifting distant some-more in early-stage funding. It’s also home to e-commerce heavyweights such as Jumia and Konga and has birthed some of a continent’s best famous startups including Andela, iROKO and Flutterwave that have all captivated vital tellurian financier interest. Hence, it’s not startling a world’s biggest tech companies have been profitable some courtesy and, now, they’re subsidy that adult with action.

Lagos, being Africa’s largest city and a blurb core of one Africa’s largest economy, has seen a ecosystem grow fast time mostly interjection to work that’s been finished to build a a “Yabacon Valley.” That work is profitable off: final year, Nigeria captivated some-more investment than any other startup ecosystem in Africa.

Last week, Facebook pronounced it will open a tech heart in Lagos—it’s initial in Africa—”early subsequent year.” The heart is in partnership with Co-Creation Hub, one of Nigeria’s many distinguished startup hubs, and will have incubation programs for startups and developers. The amicable network hulk will also run training programs for 50,000 Nigerians as partial of a digital skills training program. Facebook’s preference to lower a operations in Nigeria comes a small over a year after Mark Zuckerberg, a CEO, chose Lagos for his initial revisit to Africa.

But it follows on a heels of a identical pierce by Google. In July, while on his initial revisit to Lagos, Sundar Pichai, CEO of Google, announced a company’s skeleton to open a initial Google Launchpad Space outward a United States in Lagos. Earlier this month, it hosted a initial ever Google Developers Launchpad Start, a one week prolonged boot-camp, for early theatre startups in Lagos.

Facebook and Google are expected drawn by aligning factors that could boost their business in Africa’s largest economy: increasing smartphone adoption and descending internet costs. But crucially, a intensity distance of a marketplace can simply not be ignored. Nigeria stays Facebook’s biggest marketplace in Africa and Google’s Maps use user numbers in Nigeria have doubled in a past year.

For Meltwater Entrepreneurial School of Technology (MEST), an businessman training module with roots in Ghana, a marketplace distance in Nigeria has also proven a vital pull as it non-stop a initial incubator in Lagos on Nov. 21. MEST has invested some-more than $20 million in African entrepreneurs so far. Last year, it kicked off skeleton to build a pan-African presence and Lagos, “the largest marketplace by far,” was a apparent choice says Aaron Fu, handling director, MEST.

The incubator skeleton to horde 12 companies a initial year in Lagos. Fu says a a “quality” of Nigerian entrepreneurs that have formerly participated in MEST’s Accra module has been a pointer to a possibilities in Lagos.

That’s a perspective common by Bertil outpost Vugt, business growth lead for VC4Africa, a height that connects entrepreneurs with resources and funding. “What has altered over a final dual or 3 years is that from a peculiarity we saw in a beginning, we’re now unequivocally starting to see a peculiarity [of Nigerian start-ups],” outpost Vugt pronounced during a MEST Lagos launch. “I spent some time in Nairobi a integrate years behind when it was unequivocally a start-up collateral of Africa though we’ve seen this start-up collateral standing change to Lagos.”

Much of Kenya’s repute as a heading startup ecosystem in Africa has been down to a pioneering use of mobile income technology, quite by a Safaricom-owned M-Pesa, and a impact on typical Kenyans and a internal economy. It’s also turn obvious for a thoroughness of amicable craving start-ups that have perceived attention—and millions of investment dollars—globally. One of such is M-Kopa, a startup that helps business in East Africa stay connected to electricity regulating low cost pay-as-you-use solar systems.

Sign adult for a Quartz Africa Weekly Brief — a many critical and engaging news from opposite a continent, in your inbox.

You must be logged in to post a comment Login

Widgetized Section

Go to Admin » appearance » Widgets » and move a widget into Advertise Widget Zone