Promoting African start-ups
for the continent’s urban future

Africa has the highest urbanisation rate in the world. By 2030, 50 per cent of Africa's population is expected to live in cities. In Rwanda, according to the government's Vision 2050, the urban population is even expected to reach 70 per cent – a drastic increase from 17.3 per cent in 2019.

According to the World Bank, increasing urbanisation holds a lot of potential for the continent. It can strengthen economic growth and increase prosperity. At the same time, however, there is a risk that existing social inequality and urban poverty will be exacerbated by urbanisation. To prevent this and promote sustainable development in African countries, concrete measures are needed to steer Africa's urban transformation in line with the Sustainable Development Goals (SDGs).

According to Rwanda's Vision 2050, smart cities “integrate shared information and communication technology (ICT), infrastructure and services into management and provision of critical public utilities”. As such, smart cities use digital technologies to drive a city's operational efficiency, promote economic growth or improve the quality of government services. This can include areas such as infrastructure, environmental measures, transport and mobility, citizen well-being, urban planning and much more.

Rwanda serves as a flagship country for smart cities and communities in the Smart Africa Alliance – a coalition of African heads of state and government, international organisations and private sector partners committed to accelerating socio-economic development across the continent through ICT and establishing a knowledge economy. Rwanda has set itself the goal of establishing the country as a Pan-African hub for digital innovation, specifically as a pioneer in the field of smart cities. The country offers itself as both a starting platform for young entrepreneurs and an anchor point for cooperation with the private sector.

In collaboration with the Rwandan government, Invest for Jobs and the Tech-Entrepreneurship Initiative “Make-IT in Africa” officially launched the Smart Cities Innovation Programme (SCIP) in September 2021 to accelerate the growth of tech start-ups with smart city solutions and build sustainable innovation ecosystems.

The SCIP aimed to strengthen innovation and provided a platform for Rwandan and other African start-ups to network with international business partners and investors. To this end, the programme supported companies with scalable solutions and innovative business models in the fields of smart mobility, smart housing and fintech for smart cities in Rwanda and other African countries.

A high-level, international jury selected a total of 31 tech start-ups by June 2021 to participate in the programme. To further develop their business and their products and services, the selected start-ups benefited from specialised training and capacity building, individual coaching and mentoring, as well as intensive networking and matchmaking with potential business partners and investors.

The programme was implemented in partnership with stakeholders from the private sector and other partners – VW, Siemens and African Business Angel Network (ABAN) among others – to bring in highly specialised technical expertise as well as to build the start-ups’ networks. This collaboration with international and African business partners and investors helped the start-ups scale their smart city innovations. Ultimately, the programme aimed to strengthen the start-ups within the African ecosystem, increasing their market reach and company growth, thereby creating opportunities for business expansion in Rwanda and beyond.

A total of 31 start-ups took part in the nine-month accelerator programme that included online and offline trainings and exchanges. In November 2021, over 50 founders from the selected start-ups across the three tracks of smart mobility, smart housing & cleantech and fintech gathered in Kigali for a week-long boot camp with industry experts, mentors, and coaches.

Following this intense on-site training, the start-ups continued to receive support in through continuous, in-depth coaching and mentoring to grow their businesses. The programme concluded with a virtual demo day in June 2022, during which 22 start-ups pitched their businesses to investors, showcasing the progress they made during the SCIP. One company, for instance, focused on building a digital ticketing solution enabling passengers to book transport services in a safer and more convenient way.

Several start-ups that participated in the SCIP saw an increase in investment and partnerships, spurring continuous growth of their businesses in cities across the African continent. For others the focus was primarily on refining their business ideas, plans, and products. Some start-ups made their debut in the Rwandan market, launching their goods or services in Kigali. After the conclusion of the SCIP, a selection of the most investment-ready start-ups received continued support from Make-IT in Africa. To learn more about their following journey, visit their website.
 

The Smart Cities Innovation Programme was implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in the context of Invest for Jobs and the Tech-Entrepreneurship Initiative “Make-IT in Africa” on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).