AFRICA: FERTILE GROUND

FOR INNOVATION AND

OPPORTUNITY

Pioneering in Africa to meet the global innovation agenda

 A SHIFT FROM BRICK AND
MORTAR INDUSTRIALISATION
TO INNOVATION AND
SUSTAINABLE DEVELOPMENT

“Innovation is changing the business landscape across Africa and

any entity that fails to adapt will eventually be phased out “

Dr Jesper Vasell, KTH Royal Institute of Technology in Stockholm

ANDREAS GIALLOURAKIS

Market Area Director Africa and Swedish

Trade & Invest Commissioner to Kenya

[email protected]

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AT A GLANCE
Africa has demonstrated immense potential in its economic prospects in the past
decade. It is currently home to half of the 40 fastest-growing emerging and developing
countries and the continent is undergoing rapid technological evolution with vibrant
startup communities at the forefront of the Fourth Industrial Revolution. Innovation is
imperative to solving the majority of Africa’s most pressing needs. For instance, the
World Economic Forum projects that 18 million jobs per year until 2035 are needed to
absorb youths entering the labour force and startups could contribute to solving this
problem.

Africa is closely anticipated as the next big frontier. There are many reasons for
optimism: the African continent is home to some of the youngest populations in the
world, it promises to be a major consumption market over the next three decades, and
it is increasingly mobile phone enabled. An emerging digital ecosystem is a
particularly crucial multiplier for that growth, since access to smart phones and other
devices enhances consumer information, networking, job-creation, resources, and
financial inclusion.

Since 2019, Business Sweden has been exploring innovation and new business models
in Africa. This year, we conducted 30+ interviews with various stakeholders from
academia, public & private sector as well as entrepreneurs and investors to gather a
holistic view of the innovation agenda on the continent. This study has enabled us to
establish an in-depth understanding of the innovation landscape in Africa. Our
findings drive us to conclude that innovation is not limited to product improvement
but also looks at solving problems to address market needs and create sustainable
societal, financial, operational, cultural and economic impact.

Our findings further reveal that Africa provides a conducive environment for foreign
investment. Around USD 2.4 billion worth of capital was deployed in African startups
in 2020. Thirty per cent of the companies that closed the top 10 deals by size across
the continent are incorporated outside Africa. In 2019, eight among the top 10
African-based startups that received the highest amount of venture capital in the
continent were led by foreigners. In the same year, the market capitalisation for mega
investment deals couped by non-African founders in Nigeria and South Africa was at
around 45 per cent, while in Kenya, 94 per cent of startups that received more than
USD 1 million were led by non-Africans, The Guardian reports. Our assessment
concludes that the most consistently profitable businesses demonstrate a higher
tolerance for risk, are eager to tailor their products, production and distribution to
African consumer needs and commit to investing and building their businesses for the
long-term.

This report analyses markets and sectors that have the heaviest financial flows in
investments channelled towards them to spearhead innovation, identifies key market
gaps, and provides a winning formula for foreign investors intending to explore and
innovate on the African continent.

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“The four major countries in the Innovation Quadrangle in Africa come
with unique advantages. Kenya boasts of a highly skilled and diverse
workforce, Egypt is the MENA capital, Nigeria is the most populous
country on the continent and South Africa is the center of
sophisticated technological inventions.”

– Eugene Awori – Stanford MBA and Investment

Professional, Africa50 Fund

The pandemic, though detrimental to humans, has been a catalyst to innovation. Global
broadband traffic in 2021 sky-rocketed by 51 per cent over the previous year as Global
VC investments registered tremendous improvement. While venture funding
worldwide was USD 148 billion in the first half of 2020, Crunchbase reports that it had
soared by 95 per cent to USD 288 billion, with increases at every stage, in the first half
of 2021.

Startups across the globe, are reaping extensively from new investment vehicles such as
Special Purchase Acquisition Companies (SPACS) and crowdfunding. As of August
2021, there were more than 800 startups with valuations of USD 1 billion, a clear
demonstration that the word unicorn – a rarity, is morphing into cliché. Sweden and
Stockholm – homes to Klarna, Skype and Spotify are continuing to rise-up the global
technology and innovation rankings 1. Although this information presents the
innovation ecosystem in positive light, the mere fact that Africa receives less than a
three per cent of global VC flows buttresses our narrative that Africa is being
overlooked 2.

Massive quality gaps exist among tech hubs in Africa, and this presents investors with
formidable opportunities for expansion and development. Tech hubs are spaces created
for the purpose of making resources easily accessible to entrepreneurs. It could either
be a stand-alone entity or a collection of startups, incubators, VCs, accelerators, and
corporates under one roof. Nigeria and South Africa remain the most
advanced ecosystems with more than 80 tech hubs. Kenya establishes itself as the East
African giant with almost 50 hubs while Egypt positions itself as the northern star with
a total of 56 active hubs.

1 The Global Startup Ecosystem Report GSER 2021 by Startup Genome

2 The Global Startup Ecosystem Report GSER 2021 by Startup Genome

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Recent developments demonstrate that those who analyse markets, understand their
users, provide them with well-developed solutions and then proceed to exploit
unconventional and untapped opportunities are likely to win big time. Wave, a US
headquartered and Senegal-based mobile money service, is a classic example. In
September 2021, Wave received the largest ever Series A funding in Africa of USD 200
million bolstering it to a valuation of USD 1.7 billion. Rwanda also presents itself as
East Africa’s rising phoenix. It is home to Norrsken Foundation’s next
establishment – Norrsken House – East Africa’s largest hub for entrepreneurship
and innovation. Norrsken House Kigali curates a delicate mix of startups, incubators,
VCs, accelerators, and corporates under a one-stop shop that will enable
entrepreneurs tackle the Africa’s most pressing problems.

The first half of 2021 was promising with startups on the continent raising USD 1.19
billion3. The Africa Private Equity & Venture Capital Association reports that although
funding dipped at the start of 2020, startups raised USD 1.1 billion – an amount more
than double the funding raised in 2019. The African Continental Free Trade Area 4 and
the wave of startup legislation sweeping across the continent also signal a promising
business environment. Albeit these indicators point towards a bright future,
scalability remains a pertinent challenge. There are only seven unicorns and less than
20 startups with a valuation above USD 200 million on the continent. The issues
above reiterate the business case for the existence of massive untapped potential
which investors should take advantage of with agility.

INNOVATION IN THE HEALTHCARE SECTOR

Innovation in healthcare has tremendously evolved over the last few years. This has
been fuelled by digital technologies, public partnerships and ensuring the right
knowledge, skills and resources get to where they are needed. Egypt, South Africa,
Algeria, Tunisia, Kenya, and Rwanda are some of the countries at the forefront of
using innovation in the healthcare sector. Innovation trends that will improve
healthcare in 2021 and beyond, include artificial intelligence, telemedicine, and
mobile health, just to name a few. This is ground-breaking work for the healthcare
sector, which is continuously in need of new innovative ideas to improve access to
affordable and quality healthcare.

Rwanda is a pioneer in digital health based on their use of artificial intelligence,

doctors using telemedicine to consult and blood delivery by use of drones. The
Government of Rwanda has partnered with the company Zipline for its national
drone delivery program to deliver blood between 25 clinics and hospitals. These
drones fly up 150 kms roundtrip and carry 1.5 kgs of blood necessary to save a
person’s life.

3 BFA Global
4
The African Continental Free Trade Area (AfCFTA) brings together 54 out of 55 nations under one free trade
agreement, commencing in January 2021, aims to boost productivity and growth and reduce poverty and inequality

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INNOVATION IN THE ENERGY SECTOR
Various energy innovations have been adopted across countries such as Tanzania,
Rwanda, Nigeria, and Ivory Coast. Some successful innovations include sustainable
off-grid energy solutions that have been adapted to address energy access in Africa.

Zola Electric is a Silicon Valley solar startup that pioneered pay-as-you-go finance
to deliver off-grid electricity in Africa, responsible for building distributed solutions
that provides power to homes and businesses. This off-grid company is located across
different regions including Tanzania, Nigeria, Rwanda, Ghana, and Ivory Coast. They
have powered just over 1 million homes with more than 300,000 energy systems
installed and managed to raise USD 250 million in funding. Zola Electric partnered
with a Dutch entrepreneurial development bank, FMO, a Dutch development bank
based in the Hague to provide technical assistance to Zola to put a credit scoring
system in place. By powering the homes of their customers, Zola Electric provides a
platform in which their customers can pay to use their products at a price that anyone
can afford, which contributes to creating a credit score for individuals. This credit
score bridges the gap between the customers and their ability to obtain finances.
Drop Access, a Kenyan based cleantech startup that provides solar energy solutions
for water, food, and health, has recently innovated an Efficient Cooling (E-Cool)
system that locally manufactures portable solar-powered fridges that can be used in
the healthcare cold chain industry and for food storage. In July 2021, they launched a
pilot program, solar vacciboxes, that provide cold storage facilities for healthcare
facilities in rural Kenya.

INNOVATION IN THE FINTECH SECTOR

Fintech startups are on the rise in Africa. African Tech Ecosystems of The Future
2021/22 indicated that South Africa is at the forefront of fintech startups. The sector
is moving more towards seamless digital payments, growth of digital platforms,
financial inclusion, and the growth of B2B players among others.

As earlier mentioned, USD 200 million was invested by Sequoia Heritage, Stripe and
other investors into an African fintech Wave valued at USD 1.7 billion. What is even
more unique about Wave is its strong focus on unconventional and untapped
markets in the neglected Francophone Africa and East Africa (Ivory Coast, Senegal,
and Uganda). Norrsken backed Kwara, a Nairobi and Berlin based startup, is
another rising star in FinTech, on a mission to enable the world’s three billion
underserved population to become financially healthy by converting credit unions
into modern digital banks. Their offering provides credit and digital banking solutions
to small holder farmers and credit unions.

INNOVATION IN THE MASS MEDIA MARKET

In an age where data and information are the new oil, mass media is experiencing
steady growth as demand for constant on-the-go affordable and contextualised
content continues to grow. Steered by increased need for access to information, Africa
remains untapped even though it is the fastest growing digital market with 1.3 billion
people. The mass media segment has less than 10 players offering local and
contextualised content, and this is definitely a good solution for potential investors.

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The Swedish firm Addstep launched its music streaming application service
Jumamo in Nigeria, completely adapted to that market but with the aim to continue
targeting emerging markets. The founders recognised the potential in Nigeria since it
is a mature market in telecommunication and mobile usage, with a large and vibrant
music scene. Nonetheless, most of the music produced in the country is not prepared
for music streaming. There are plenty of files and CDs available, however it lacks
necessary components and information needed for streaming to the consumers e.g.,
artist, genre, artwork etc. and administration information such as copyright owners.
Addstep gather all this information to ensure a smooth experience for the end-
consumer and payments to the right stakeholders. The mobile application is free of
charge for the end-consumer, and revenue is derived from in-app advertisements.

The Addstep team is “creating a diamond from a piece of coal” by having found a way
for local artists and songwriters to capitalise on their existing information.
Additionally, the firm will have unique music content as they are collecting data not
only from the largest cities, but also from the rural communities.

Afripods is a pan-African podcasting platform with a vision of building the largest

library of African stories. While podcasting has existed for a long time, it has rapidly
evolved in the last five years and insider intelligence estimates that by 2025 there will
be more than 144 million monthly podcast listeners globally.

“A large corporation in our field told us that they know

how to succeed and earn money in USA and Europe but
has no clue how to do it in Africa.”

– Richard Lindberg, Founder & CEO, AddStep

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HOW TO SUCCEED IN AFRICA

“One of the greatest challenges facing entrepreneurs on the African

continent is lack of trust from investors. During fundraising, the courtship
period between investors and African founders takes far longer in
comparison to that experienced by Non-African founders.”

– Norah Magero, Founder Drop Access & Cynthia Wandia,

Co-Founder Kwara

There are 54 countries in Africa, all with diverse languages, religions, as well as business
cultures. It is essential to do your homework before entering a new market to approach the
location in an appropriate manner. Business Sweden proposes a six-point approach to
crack the code in Africa:

1. Take time to invest in long-term relationships should not be underestimated, as it can be

very beneficial for companies to achieve your long-term goals in the markets. It is important
from both parties’ perspectives to gain trust from stakeholders and decision makers.
2. Dare to explore the unexplored. The degrees of matureness differ greatly between markets,
regions, and sectors. By venturing out to the nascent stages of an industry, weighing the risks
versus gains, one can take a market leader position and make a tremendous impact.
3. Strive towards having presence in several geographical regions and markets to avoid risks
of putting all eggs in one basket, as the nations have notable differences in political ruling and
financial stability. There can be swift changes and it’s crucial to spread the risk across the
continent.
4. Target the mass market needs. If you manage to develop a product or service that serves the
larger population in a market, convinces, and attracts the end users and have the needed supply
chain, then you can become a long-term success in the markets.
5. Share information and collaborate with customers, competitors, and other stakeholders to
innovate and address the market needs, hence engage in open process innovation.
6. Digital technologies are here to stay, and mobile connectivity and internet penetration are
rapidly improving across the continent. This opens many doors for investors to enter new
markets in ways that was challenging before. Find ways to access relevant and unique data
to ride the digital transformation wave and the fourth industrial revolution.

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1. INVEST IN RELATIONSHIPS TO SUCCEED “THE POWER OF PARITY”
Developing long-term strategies is necessary for creation of partnerships to create
sustainable impact. Many of our interviewees refer to challenges such as lack of private
sector involvement in the innovation area, trust between stakeholders as well as
networking and mentoring opportunities. Some universities in Africa are creating stronger
ties with enterprises, but overall, it is still unusual for academia to interact with the private
sector. Every year, African governments are faced with the challenge of creating 12-15
million jobs and smaller and medium-size enterprises (SMEs) play a critical role in in
solving this problem. The World Bank reports that SMEs are responsible for 77 per cent of
all jobs in Africa and 50 per cent of the GDP in some markets, while 80 per cent of the
labour force (age 15 to 25) do not have the required skills to meet the market demands.

In this regard, Ericsson collaborates with the largest universities in Morocco. They
operate on the premise that there is an urgent need to create an enabling environment and
networks that bring different stakeholders together in an efficient way. Private sector and
academia partnerships are a necessary catalyst for upskilling. To crack this code, investors
can leverage on the triple or quadruple helix 5 approach in a new market context – a
concept well tested in Sweden.

“African markets demand long-term commitment. Do not expect to come here

and “sell and run” but to continue to win trust from different players in the
markets and to continuously invest in the society and individuals.”
– Nora Wahby, Country Manager Morocco
and Head of West Africa, Ericsson

Opibus, a Swedish/Kenyan firm implementing electric transport in emerging markets,

chose to put its headquarters in Kenya as it is one of the fastest-growing markets in Sub-
Saharan Africa with a growing amount of used vehicle imports. The firm launched in 2017
and entered the market knowing that there was immense potential there. However,
Kenyan authorities had limited knowledge about electric vehicles (EV) at the time. Opibus
collaborated with the Nairobi City County Government, the minibus owners’ association,
and the National Transport & Safety Authority to have Opibus convert minibuses and
motorcycles to EVs. Hence, the county government lobbied for EVs as part of their
advocacy work and demonstrated how this is aligned with the nation’s green transition and
climate goals.

“Africa is the largest untapped market in the world. There is an amazing

potential here which Swedish companies have not yet exploited to full
potential – compared to other European companies that are quite
aggressive on the continent.”
– Filip Gardler, CEO, Opibus

5 The triple helix model recognises three stakeholders in a relationship of innovation: universities, industries, and governments.
The quadruple helix recognises four major actors in the innovation system: science, policy, industry, and society

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2. GO OUTSIDE YOUR COMFORT ZONE TO WIN - “CONSIDER RISK
AND GROWTH IN TANDEM”
Companies have a golden opportunity to capitalise on untapped areas and unexplored
market needs. Targeting up-and-coming growth markets in Africa instead of the already
developed markets presents investors with a wide variety of opportunities. Evaluate options
of entering growth markets which may be high risk at first can pay off with persistence and
a long-term strategy built on a first mover advantage.

The mining sector in Africa is an example of how market maturity levels differ across the
continent. Africa is a major producer of key mineral commodities across the continent and
some major hubs are South Africa, Tanzania, Botswana, Democratic Republic of Congo, and
Guinea. These markets are however mature, and many international powerhouses are
already well-established in the markets. Other markets are projected to experience a
stronger exponential growth, becoming Africa’s next mining territory, such as Nigeria that
is increasingly attracting foreign investments and gaining importance by the Government
with the release of Strategic Roadmaps. Moreover, Mali opened the world’s first fully
autonomous underground gold mine in recent years. Hence, even these somewhat
traditional industries are everchanging and international firms can have an impact when
entering early-stage growth markets, especially within sustainable transformation.

Investors should factor in risk and return. A firm doesn’t want to develop products that are
not scalable, and the possibility to scale and calculate return on investment is difficult when
the needs are so different across the African continent. It is essential to assess decision-
making based on real business cases and to calculate a best-case and worst-case scenario
and to truly understand and take the worst-case scenario into account.

Navigating operations from a foreign office or afar can be challenging. Investors are
therefore advised to go for local presence. There is large potential with access to skilled local
labour force, excellent access to good raw materials, shorter lead times to the markets,
reduced operational costs and developing a local/regional chain of suppliers for production.

“We would not have been successful without developing local resources on
the African continent. Find local solutions to local problems and develop
services from Africa to Africa.”

– Sebastian McKinlay, Executive Chairman, Moringa School & former Board

Chair, Twiga Foods

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3. DIVERSIFY YOUR PORTFOLIO SPREAD YOUR
RISK ACROSS MULTIPLE GEOGRAPHIES
Each country on the continent is distinct in terms of economy, population, and geography
hence a “one-size-fits-all” approach in any African market is unwise. There are large cost
differences between countries for starting a business, ranging from Rwanda where
registering a company is free, to Equatorial Guinea where the same procedure costs USD
2,321. Other affordable markets to start a business in is Egypt and South Africa, both
having a cost below USD 15. It is important to note that the company registration cost is
just a smaller share of the total cost of setting up a business in a foreign country, however
the cost of setting up business also seems to correlate with ease of doing business in the
country. Countries in Africa have varying degrees of attracting foreign investors based on
several factors. There are countries such as Rwanda that have proven to provide conducive
environments such as legislative requirements that are attractive to investors. The process
of registering a company in Rwanda would take a day and makes it one of the most
attractive countries for foreign investors. Politics can play a big role in determining
business fortunes, such as political instability in South Sudan and sudden changes in
governments in Sudan which was recently lifted off the World Bank blacklist. It is therefore
critical for businesses to adopt a rigorous approach to evaluate and manage political risk,
such as trends in government management and policy, and how it can impact the
investment. One method to mitigate volatility and aforementioned risks is to spread
investments across several geographies and different tier countries. International firms
tend to launch in Tier 1 markets in Africa, where competition already is fierce. A suggestion
is to try and have cross border offices in both Tier 2 and Tier 3 markets to spread the risk
and perhaps enjoy less competition. Entering and investing early in a market can pay off in
Africa as it is dubbed the fastest growing continent in the world.

RWANDA IS THE COUNTRY WITH THE LOWEST COST

OF STARTING A BUSINESS IN AFRICA

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4. ADDRESS MASS MARKET NEEDS THAT WILL MAKE YOU A WINNER
“TARGET THE 600+ MILLION POPULATION LIVING IN THE RURAL AREAS”
Current companies and future investors have the opportunity to cash in on Africa’s
demographic dividend. For example, Covid-19 was the catalyst for the migration to digital
payments and e-commerce resulting in increase in the number of users and value of
transactions processed by some of Africa’s unicorns Fawry, Interswitch, Jumia and
Flutterwave. Three of these startups are in Africa’s most populous country – Nigeria.

Population in Africa is forecast to double by 2050, leading to strong urbanisation growth

influencing new rising hotspots and megacities on the continent. By 2100, Nigeria’s
population is projected to exceed 800 million people while the DRC, Egypt, and Ethiopia
will have grown their populations by 205 per cent, 117 per cent and 106 per cent
respectively. Equity Bank of Kenya has already seized the opportunity by setting base in
Kinshasa – DRC, a city of about nine million people which is almost three times larger than
Nairobi’s population.

An essential tip is to address solutions to local challenges through increased collaborations,

which is common among local startups. Either bringing services ‘from Africa to Africa’ or
to fully design the product for the African markets. A successful product in Africa may also
generate sales abroad. Electrolux is developing their kitchen utilities to the local markets
in Africa, with the idea that they can become relevant in their developing markets too
because of changed ways of living. Similarly, Koko Networks, produces affordable
biofuel stoves designed particularly for the Kenyan market which has unintentionally
become a success in developed markets as an efficient and practical camping stove.

“When business is going well for a Swedish company,

dare to try out African markets! For us it was a ‘blue ocean’
– but no one could do what we could, so it was easy to meet clients.”

– Tomas Svidén, International Key Account Manager, Telenor

Retail in many parts of Africa is informal, fragmented, and enormous with over 10 million
informal shops selling over USD 180 billion worth of goods each year. However, these
shops face challenges such as stock-outs, limited access to vital business infrastructure and
financial services. Kenyan based company Sokowatch connects the informal retail sector
in Eastern Africa to the digital economy by enabling shopkeepers to order products via
SMS or mobile app and receive freely on the same day and the delivery is done directly to
their shop. Sokowatch has built a credit scoring model, powered by historic purchasing
data, where users accumulate a credit worthiness that can be used towards access to credit
and financial services.

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 “Africa is a huge market. There is a demand in all African markets almost
regardless of product segment and do not judge the market before getting
to know it. Dare to trust yourself and follow your gut feeling that it will be
possible to distribute products on the market(s).”

– Johann Carstens, Carican Group

Companies that adapt their business models to low margins and high volume can make
themselves relevant to the 85 per cent of Africans living below USD 5.5 per day. It may
require more investigation, effort, and creative thinking than to offer more traditional
services to the urbanised populations. Nonetheless, a company may enjoy less competition
and a strong first-mover advantage, building trust among the local communities and
creating awareness among the large populations which is a promising foundation for
further development.

“Understand the market, speak the language of the people. Ensure that you
are reaching the big mass with solutions targeting the whole population.
Try to reach the young population.”

– Chukwuemeka Fred Agbata, Co-founder of Techbuild, Africa

and Partner, Pacer Ventures

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5. WINNING THE OPEN PROCESS INNOVATION -
“ADAPT COOPETITION”
Firms desiring to win in Africa may benefit by the concept of coopetition (cooperation
between competing companies). Businesses have proven to gain advantage by using a
judicious mixture of cooperation with suppliers, customers and firms producing
complimentary or related products. The Cape Town-Stockholm connect is one such
initiative. It is an internationalisation project and co-creation platform running from 2020-
2023, with the overall aim of strengthening ties between the tech industry in Sweden and
South Africa.

Ericsson plans to create an open innovation platform in Nigeria called Automation Hub
(announced in 2021), inspired by lean startup methodology where the company works
closely together with customers, users and partners to discuss key areas for digital
products (including 5G, IoT and support systems) to foster the digital transformation in
Africa.

“Small companies in Africa are more innovative as R&D is not in the big
players. For corporate startup collaboration to be successful we need to
pair up organisations with similar synergies and vertical alignment.”

– Sheilah Birgen, Country Lead KTN Global & CEO, The Cord

Entrepreneurs and startups may even serve African needs better than the international
giants, and new ventures tend to have sustainability as part of its core DNA from the start.
It is said that a good innovation should be both sustainable and cost effective. A
sustainable business model considers how economic, social, environmental, and
educational aspects can be part of the innovation to improve both the business and society.

“Sustainability relates to anything that gives people meaningful living,

social security and stability. We need to move away from textbook
definitions of sustainability being related to clean energy
or plant-based living. It could be as simple as automating
processes to make production cheaper.”

– Pascal Murasira, Managing Director, Norrsken East Africa

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6. RIDE ON THE DIGITAL TRANSFORMATION WAVE
Digital transformation and economy play central roles in the sustainable development of
Africa and can help to eradicate poverty, reduce inequalities and ensure free movement of
goods and services. Boosting connectivity through increasing access and affordability is
essential for disruptive development in Africa. Mobile connectivity is advancing and whilst
credit cards are still quite uncommon, mobile banking are becoming more widespread in
Africa – including in rural areas where a visit to the nearest bank could be days away of
walking distance. Kenya has one of the highest rates of financial inclusion in Africa, where
75 per cent of the population has a mobile money account compared to 43 per cent in
Uganda (very impressive considering only 11 per cent of Ugandans have a bank account).

“Africa failed the first, second and third industrial revolution.

We are in the fourth now and we do not want Africa to fail this one too.
Africa is still a raw material exporter but now we are in a digital
time and digital technology is a must, as many things are
happening digitally and not physically. For example,
people who can’t read and write can still use mobile phones.”

– Mammo Muchie, Professor at Tswane University

of Technology, Pretoria

E-commerce in Africa has been growing fast in recent years and the trend is predicted to
continue. Drone technology and 3D printing have helped some African nations to bypass
infrastructure challenges and improve access to markets that weren’t reachable before.
This has been the case in Nigeria which is Africa’s biggest e-commerce market with 76
million online shoppers.

“Fantastic marketing opportunity for Swedish technology. Swedish

companies are strong in digital sales strategy. Implementation in an
African context can be considered advanced. Use your digital knowledge
and presence to push sales.”

– Filip Gardler, CEO, Opibus

Internet usage across the continent is growing at a rapid pace as more individuals have
access to smart technology and social media, however the availability still lags behind the
mobile connectivity.

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Norwegian firm DataDrivenFinance (DD Finance) offer low-cost insurance for low-
income populations globally, with its first start in Kenya. DD Finance has its product
portfolio based on perceived risks by low-income households. These risks include:

• main income-earner passing on

• hospitalisation
• fire in residence, and
• outpatient care

At a cost as low as USD 2 per year, a member can obtain an income loss insurance cover
which amounts to a daily pay-out of USD 5 in case of hospitalisation and a payout of USD
100 in the event of a loss of life. The company’s model is based on the fact that the poor and
excluded populations of emerging economies belong to informal networks which operate
on the basis of trust and reputation between individuals within a group and between
groups. Hence the company delivers an affordable insurance solution among financially
excluded populations. By working directly with the communities, the company can obtain
primary data from millions of their clients which is eventually going to be a critical factor
when it comes to commercialisation. This data can help inform future predictions, market
segmentation, pricing models, complementary offerings, and other valuable information.

“Data is the new oil. Invest in infrastructure that collects the data.”

– Sebekedi Motlhabane Koloi, Portfolio Manager Technology at Wesgro and

Cape Town Stockholm Connect

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ABOUT BUSINESS SWEDEN
Business Sweden's purpose is to help Swedish companies grow global sales and
international companies invest and expand in Sweden. Swedish companies can trust us to
shorten time to market, find new revenue streams, and minimise risks.

We offer strategic advice and hands-on support in more than 44 markets. Business Sweden
is owned by the Swedish Government and industry, a partnership that provides access to
contacts and networks on all levels.

Business Sweden has three dedicated

teams in Africa supporting Swedish
companies realise their global growth
ambitions. Our teams have cross sector
local knowledge and global expertise
and can help to assess your readiness
level for market entry, provide market
analysis and strategic guidance, and
help your company pursue
opportunities.

OUR OFFICES IN AFRICA

1. Casablanca, Morocco
2. Nairobi, Kenya
3. Johannesburg, South Africa

OUR TEAM IN AFRICA

RUPA THAKRAR ANDREAS ZAKARIA BENABDELJALIL ANTHONIA

BAGOON GIALLOURAKIS SJÖBERG ADENAYA HUARD

Market Area Director, Country Manager, Morocco, Head of West Africa

Acting Country Manager,
South Africa Africa and Trade and Regional Manager,
Commissioner, Kenya North and West Africa

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ACKNOWLEDGEMENT
Business Sweden wishes to acknowledge the contributions made by the entire Africa team
with insights from prominent key opinion leaders listed below:

- Chukwuemeka Fred Agbata, Co-founder, Techbuild Africa

- Cynthia Wandia, Cofounder, Kwara
- Dr Jesper Vasell, Professor, KTH Royal Institute of Technology
- Emmaunel Kweyu, Professor, Strathmore University
- Eugene Awori, Investment Professional, Africa50 Infrastructure Fund
- Felix Nyström, Head of Section for Economic and
Cultural Affairs, Embassy of Sweden Cairo.
- Filip Gardler, CEO, Opibus
- George Kosimbei, Director in the Directorate of Innovation Incubation,
Chandaria Business & Incubation Center/Kenyatta University
- Johan Carstens, Director Business Development & Projects, Carican Group
- Mohamed Amin, Business & Trade Pomotion Officer, Embassy of Sweden Cairo
- Mouna Akefli, Customer Marketing Manager Morocco & West Africa, Ericsson
- Nneka Ukay, Executive Secretary, Innovation Support Network Hubs
- Nora Wahby, Country Manager Morocco & Head of West Africa, Ericsson
- Norah Magero, Cofounder, Drop Access
- Pascal Murasira, Managing Director, Norrsken East Africa
- Professor Emmanuel Kweyu
- Professor Mammo Muchie, Tshwane University of Technology
- Professor Olayinka David-West, Lagos Business School
- Rahel Belete, Co-Founder & Managing Director, Kilimanjaro Innovation Hub
- Richard Lindberg, Co-Founder, AddStep
- Sandy Lowitt, Researcher
- Sebastian McKinlay, Executive Chairman, Moringa School
- Sebekedi Motlhabane Koloi, Portfolio Manager – Tech, Wesgro Silicon Cape
- Sheilah Birgen, CEO, The Cord
- Tomas Svidén, International Key Account Manager, Telenor
- Wangoru Kihara, Entrepreneur Badili Innovations
- Jan Martin Hunderi, Founder & CEO, DataDrivenFinance

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