What is the destination of mobile related business in Africa? 〜Ecosystem between start-up and major mobile company〜

What is the destination of mobile related business in Africa? 〜Ecosystem between start-up and major mobile company〜

At the end of 2016, there were 420 million unique mobile subscribers in Sub-Saharan Africa, equivalent to a penetration rate of 43%.

The region continues to grow faster than any other region; the CAGR of 6.1% over the five years to 2020 is around 50% higher than the global average.
The region will have more than half a billion unique mobile subscribers by 2020, by which time around half the population will subscribe to a mobile service.

Sub-Saharan Africa remains the fastest growing mobile market.
The GSMA Ecosystem Accelerator has announced 15 new investments by its Innovation Fund, with eight African startups receiving up to GB£250,000 (US$349,000 )in equity-free funding.

Disrupt Africa reported the GSMA Ecosystem Accelerator announced the launch of its Innovation Fund in July 2016, offering between GB£100,000 (US$139,650) and GB£250,000 (US$349,000) to startups leveraging mobile to achieve socio-economic impact in their local markets in Africa and Asia.

The first round of nine grantees was announced in April last year – Africa dominated the cohort with seven startups receiving backing.
A further 15 startups have now been selected to receive funding, eight of which are African startups.
In this article, we will pick up and introduce six of them.

Two grantees are from Uganda:
LipaMobile, which has created the mSomesa school fee management and payment system for parents; and Ensibuuko, with its cloud-based core banking software customised for savings and credit cooperatives.

A further two of the selected startups hail from Senegal.
MaTontine provides a solution to digitise traditional savings circles (‘tontines’) and facilitate access to credit and financial services; while SudPay has created a mobile solution for micro, small and medium enterprises (MSMEs) to pay taxes to municipal authorities transparently.

Kenya’s Lynk also made the list, with its digital platform connecting households and businesses with verified domestic workers, artisans and blue-collar professionals; as did Tanzanian mobile micro health insurance product, Jamii Africa.

The list of African grantees is completed by Nigeria’s Farmcrowdy – an online platform for individuals and businesses to invest in farming projects; and Zambia’s Musanga Logistics – a mobile platform to send parcels through a network of independent cyclists, riders and drivers.

“They [the grantees]cover more sectors, including health, insurance, and logisitics, and illustrate a wider range of areas in which local SMEs are using mobile innovation to help solve local problems.
Collectively they tackle thirteen of the 17 Sustainable Development Goals introduced by the United Nations and embraced by the mobile industry as a whole,” says Max Cuvellier, head of the GSMA Ecosystem Accelerator.
Invest in a wide range and extensive, first of all it seems to want to identify the investment destination that germinates.

******************************

GSMA has announced 15 new investments by its Innovation Fund, with eight African startups receiving up to GB£250,000 in equity-free funding.
The amount of investment per company is around $US43,000 and it isn’t so large.

The GSMA, through the Ecosystem Accelerator programme, actively supports the growth and
development of the tech start-up ecosystem through the GSMA Ecosystem Accelerator Innovation Fund and is facilitating partnerships and collaboration between start-ups and mobile operators.
Grantees receive up to £250,000 in funding and up to 15 months of support (mentorship, facilitation of relationships with mobile operators, and access to networks) from the Ecosystem Accelerator programme.

Why does GSMA have a large investment in Ecosystem for start-ups and mobile operators?
There are some merits for start-ups and mobile operators, and also for GSMA managing these players.

· To act as a platform for open innovation and lead to promotion of innovation of major mobile companies
· Each startup company gains transaction performance with major companies and leads to branding
· Exit destination of startup must be secured

It is expected that Africa’s mobile related business will further develop by building an organic network.

※ Reference : Disrupt Africa, GSMA report”The Mobile Economy”

Related post

Return Top