What Defines An African Startup?

Back in Episode 3 of the African Tech Round-up we asked the question: “What is a startup?” A lively discussion ensued— inspired by an eloquent piece written by David Adamo Jr, a Nigerian Computer Science PhD student at the University of North Texas.

Since then Founder & CEO of Hotels.ng, Mark Essien, and Project Isizwe Founder & CEO, Alan Knott-Craig Jr, have both since penned articles (When Startups In Nigeria Suddenly Got Serious and Venture Capital In Africa Is Hard) which contribute to answering a more pointed question we’re asking in this week’s show:

“What defines an African startup?”

Can African tech startups be defined in the same terms as those currently being born and raised in Silicon Valley?

Are there certain universal standards (i.e. minimum levels of traction in the form user onboarding, cash flow, etc.) that must be met in order for a business owner to claim the coveted title of “startup founder”?

Tefo Mohapi and I’s discussion this week adds to a debate that we hope everyone in Africa’s tech eco-system will continue to jump in on.

Also, catch up on all the week’s biggest tech, digital and innovation news from across Africa:

• Safaricom poised to start charging banks for bank-to-M-Pesa transfers,
• Google Transit launches in Kenya and attempts to aid users of public transport,
• Nest VC establishes a presence in South Africa through a partnership with Cape Town Garage,
• Android One’s Infinix Hot 2 smartphone selling like hotcakes in Nigeria,
• Google announces that they have reached a 10 million user milestone in Nigeria,
• South African mobile network, Cell C, discontinues free WhatsApp promotion, and
• South African airline FlySafair server crash following slash price ticket campaign.

Does Africa Need More Cheap Smartphones?

For many recently married couples, the diamond engagement ring is one of their biggest assets— albeit an emotional asset, symbolising love and lifelong commitment. In financial terms it isn’t an asset at all, considering the fact that it loses at least 50% of it’s retail value the moment you leave the jewellery store. Rough, isn’t it?

And yet still we feel compelled to buy diamonds for our loved ones, and continue to fuel a global billion-dollar industry. One has to admire the ingenious marketing strategy drafted and executed by the N.W. Ayer ad agency in the early 1900s for their client, De Beers, which resulted in the world attaching value to a commodity that’s not nearly as rare (or as necessary) as we were led to believe.

In this week’s African Tech Round-up, Tefo Mohapi and I discuss the the implications of low-cost smartphone penetration on the continent. The increase in internet use via mobile devices has undoubtedly delivered certain advantages. But when you consider how issues like the prevalence of preventable diseases, hunger and limited access to basic education continue to be a daily reality faced by many Africans, the importance of whether or not you have a smartphone might be in question.

So, just how important and necessary is this so-called “mass exodus” from feature phones to smartphones, and could the Android-brigade (led by Google and its mobile device manufacturing homies) be stimulating the demand for the smartphone the way De Beers did for diamonds near the turn of the century?

Also in this week’s episode, all the biggest digital, tech and innovation news from across Africa:

• Vodacom South Africa rolls out voice-over-WiFi calling,
• The Nigerian Communications Commission poised to deactivate 10.7 million mobile lines over various networks,
• Kenyan banks are finally getting in on the mobile money craze in a big way,
• Uber Kenya sees their user numbers triple following the introduction of Uber Cash,
• The embattled Passenger Rail Agency of South Africa is reeling following a train crash,
• Thousands of South Africans reportedly implicated in the Ashley Madison data dump, and
• Google rolls out its Android One programme is Nigeria, Ghana, Ivory Coast, Kenya, Egypt, and Morocco.

Scary Software Upgrades

Microsoft certainly got millions of people excited a while ago when they announced that their latest version of Windows would be free.

However, Windows users in most of Africa have begun to balk at the “not-so-free” implications of this recent innovation – which by the way, is essentially a compulsory upgrade.

Internet access is still relatively limited in most parts of the continent, and there’s plenty of data showing that most people primarily connect to the web via mobile networks which deliver data at a premium.

In this week’s discussion, Tefo Mohapi and I talk about how it appears tech companies like Microsoft seem unmoved by how forced software upgrades will negatively impact African consumers who must pay dearly for the privilege of staying up to date.

Also in this episode of the African Tech Round-up– all the week’s biggest digital, tech and innovation news:

• Find out why two of Vodafone’s biggest subsidiaries in Africa are in hot water for two very different reasons,
• Discover how the Hacking Team security breach has inspired advocacy group Paradigm Initiative Nigeria to write a strong letter to Nigerian President Muhammadu Buhari,
• Learn how South African JSE-listed giant Naspers is plotting to pre-empt Netflix’s imminent entry into the South African market with a video-on-demand service of its own,
• Get the low-low on which South African travel crowdfunding startup is calling it a day, and
• Hear all about how the Square Kilometre Array (SKA) Africa project is desperately seeking data scientists.

Importance Of Accurate Data For Africa

There is no doubt that “wherever there is chaos, there is opportunity”. A popular conspiracy theory suggests that the lack of quality data on the African continent suits devious corporate and government interests who are looking to maintain the status quo which enables them to continue making hay in the proverbial darkness.

In this week’s African Tech Round-up, we share the exciting news of the launch of a platform called Accur8Africa— which aims to improve the accuracy of data on the continent, and provide global policy-makers with reliable data leading up to the adoption of the Sustainable Development Goals (SDGs) in New York at the 70th United Nation General Assembly next month.

Tefo Mohapi and I discuss the irksome consequences of Africa’s current dearth of credible data, and why competent data analysis must accompany data cleaning efforts in order for Africa to reap any meaningful benefit from data accuracy initiatives such at Accur8Africa.

Also in this week’s show– all the biggest digital, tech and innovation news from across the African continent:

• Discover which African country is now officially the world’s fastest growing telecoms market,
• Hear how hip-hop musician turned philanthropist, Akon and his business partners intend to harness the traction they are making through their Akon Lighting Up Africa initiative to promote education on the continent,
• Get the latest on Safaricom’s readiness to allow “selected partners and developers” to use M-Pesa’s API,
• Find out what impressive innovation at Facebook has been described by our content producer, Peter Peele, as Internet.org on steroids,
• Learn more about the seven-day ultimatum the Nigerian Communications Commission (NCC) has served that country’s network providers to deactivate all pre-registered SIM cards, and
• Get to grips with why the embarrassing .Africa dispute is likely far from over.

From Punk Rocker To Tech VC With Brandon Doyle

After manning the helm of Africa’s largest Technology, Media, and Telecommunications (TMT) sector focused fund manager for nearly a decade, Brandon Doyle seems to have thoroughly shed any visible trace of his punk rock past.

Since co-founding Convergence Partners in 2006, Brandon and his team (many of whom are Charted Accountant types) have built an impressive track record of developing new investment opportunities and adding value to existing investments across the entire life cycle of ICT assets in Africa.

In the latest instalment of African Tech Conversations, the Convergence Partners CEO shares some highlights from his stellar career in finance— which features lengthy stints at firms like Nedbank and Anglo American. He also hints at elements of the “secret sauce” that’s allowed his company to lay claim to the title of “impact investor”, and be widely considered a leading player within Africa’s ICT infrastructure venture capital scene.

Brandon also gives us an update on how well Convergence Partners’ legacy business portfolio is doing— which includes hugely successful investments like SEACOM and Dimension Data, and talks about how he’s planning to invest the $200 million Convergence Partners has managed to woo into its recently-closed Communication Infrastructure Fund.

Hackathon Hype Or Help?

You know it’s a slow news week when the week’s biggest news involves the CEO and the CFO of South African telecoms firm, Neotel, going on leave. Granted, it’s “special leave”.

Be that as it may, broadly speaking I’m totally digging the prevailing positive sentiment I’m sensing in Africa’s tech scene. Following the “let’s launch an incubator” trend that we’ve observed on the continent in recent months, the “let’s host a hackathon” craze is increasing momentum— fueled by a number of companies and organisations looking to harness the growing public interest in all things nerdy, particularly coding.

In this week’s discussion iAfrikan Executive Editor, Tefo Mohapi and I ask whether coding competitions, such as one hosted by Hotels.ng this past week, actually contribute to improving the standard of professional coding skills in our eco-system.

Also in the news this week is the fact that Kenya is reportedly set to be the first African territory where Uber will test an innovation that will allow drivers who are either deaf or hard of hearing to make a living as taxi drivers.