Start-ups: Africa gets $1bn boost as Timbuktoo fintech hub debuts in Nigeria

The United Nations Development Programme (UNDP), African governments and the private sector plan to raise $1 billion to kick-start start-up innovation in the continent received a huge boost as Timbuktoo fintech hub center was unveiled in Lagos yesterday.

The hub in Lagos, which is being spearheaded by the UNDP, is the first of a series of technology centers planned for 13 African countries, including Kigali, Cairo, Cape Town, Accra, Casablanca, Dakar, and Nairobi.

Speaking during the unveiling, the Immediate Past Vice President, Professor Yemi Osinbajo, highlighted the potential of Africa’s young population to drive innovation and economic progress.

Osinbajo noted that Nigerian unicorns like Flutterwave and Interswitch were founded by entrepreneurs under 30, showcasing the region’s capacity for technological advancement and prosperity despite the unemployment statistics sitting somewhere around 50% in the country.

He said, “In recent times, we have seen the dramatic proof of the power of innovation to bring amazing prosperity. In Nigeria we have at least five unicorns including Flutterwave valued at over $3 billion today, Interswitch, over $1 billion, Opay valued at $2 billion among others. All the founders of these unicorns were under 30 when they founded these unicorns.

You can imagine what we are going to see in the coming years. So it is this energy, the spirit of innovation, that will power Nigeria and indeed the Africa of our dreams. This is why the vision, “Timbuktoo” of the African innovation fund is so vital for the continent’s innovation system. We will have 13 unicorn hubs all in universities of different countries and 8-9 innovation hubs scattered across the continent. Hence the Lagos fintech hub is one hub that will create job opportunities and this will go a long way to reducing the unemployment rate”.

He added that Africa is really bursting with young talents and expressed confidence that the talents will be phenomenal in driving growth and innovation in the continent.

Representing Lagos State Governor, Babajide Sanwo-Olu, the Honourable Commissioner of Innovation, Science, and Technology, Olatunbosun Alake, underscored the importance of collaboration between the government and policy makers in driving this development.

“Innovation cannot happen without government support. Lagos State government has been a pivotal part of this development, providing robust infrastructure and fostering an environment conducive to innovation. We will engage with lawmakers and policy makers to drive positive policy outflows that will further enhance and sustain this transformative journey,” he promised.

He added that the creation of this fintech hub is in line with the Federal Government’s quest to achieve the Sustainable Development Goals by 2030.

UNDP Resident Representative, Elsie Attafuah also underscored the significance of this moment. “We are here to witness the birth of a new era in innovation and financial inclusion positioning Lagos as “the fintech capital of Africa.”

On her part, UN Assistant-Secretary General and Director of UNDP’s Regional Bureau for Africa, Ahunna Eziakonwa added that Timbuktu aims to change the way that development works by reshaping market forces to favour impactful investments.

She noted that the program has potential to prevent conflicts and foster economic growth through innovation.