{"id":12661,"date":"2016-03-22T21:54:47","date_gmt":"2016-03-22T21:54:47","guid":{"rendered":"http:\/\/www.francinebeleyi.com\/?p=12661"},"modified":"2025-04-23T19:09:56","modified_gmt":"2025-04-23T19:09:56","slug":"techafrica-how-fast-the-first-african-unicorn-can-produce-local-offspring","status":"publish","type":"post","link":"https:\/\/francinebeleyi.com\/techafrica-how-fast-the-first-african-unicorn-can-produce-local-offspring\/","title":{"rendered":"TechAfrica: How Fast The First African Unicorn Can Produce Local Offspring?"},"content":{"rendered":"
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\u201cI will see within the next 5 to 10 years\u2019 African start-ups that are going be Unicorns.\u201d<\/p>\n<\/blockquote>\n

Why? \u201cLook at our market, we have a market that is just economically pre-disposed to be consumers. We have everything that it takes to have unicorns in Africa or African-tech start-ups becoming unicorns because of the products they are offering to the world.\u201d<\/p>\n

These are the words of one of the tech entrepreneurs that I\u2019ve interviewed in Cotonou, during my African tech tour<\/a><\/span> at the beginning of the year. Senam Beheton<\/a>, co-founder of TEKXL<\/a>,<\/span> a combination of incubation, acceleration and venture investment, predicted that the next African unicorns, those enterprises valued at $1bn or more, could even appear in the next couple of years.<\/p>\n

Then, in March, less than two months later, African Internet Group, AIG, has joined the club of global Unicorns on CBInsights<\/a>\u00a0<\/span>list, with a valuation of $1.04 bn<\/a>.<\/span> The first African unicorn was born.<\/p>\n

AIG is the mother company behind Jumia,<\/a><\/span> an ecommerce site which is booming in Nigeria and in 10 other African countries. The internet company has raised an additional \u20ac300 million ($327 million) from four investors, the US investment bank Goldman Sachs, African telecom giant MTN, the French insurer Axa and German-based Rocket Internet.<\/p>\n

Senam identifies three pre-requisites to accelerate the birth of African unicorns: \u201cWhat is most important is connection, investment and trust,\u201d he says. \u201cIf you take UBER or any unicorn right now, first of all these valuations are based on a system of mentoring, on a system of network, and on a system of investment.\u201d<\/p>\n

\u201cWhat we need to do is work towards this combination, so the day that African start-ups are going to have access to serious investment, good networking and perfect mentoring, then that is the foundation for good unicorns really soon.\u201d<\/p>\n

As an Economist, he analyses data, looks at metrics which show that what it takes is to combine those three factors that have propelled AIG to the top. The founder of AIG, Jeremy Hodara<\/a><\/span>, ex McKinsey, is a well-connected man and has access to mentors who have been there before; he has a powerful network with corporations that have deep pockets to back the start-up and trust him to execute his project successfully.<\/p>\n

While it\u2019s good news to see Africa join the rank of unicorns, the next step is to ensure that the tech revolution truly benefits the continent and solve real problems rather than becoming a race to bigger valuation and large market shares owned by foreign investors.<\/p>\n

African tech entrepreneurship need to be encouraged, incubated, accelerated with access to optimal infrastructures and ecosystems needed to thrive and fulfil the continent\u2019s potential.<\/p>\n

There are\u00a0rumours that other \u2018Made in Africa\u2019 baby unicorns are coming very soon.<\/p>\n

Watch<\/a><\/span> the full interview with Senam Beheton to find out:<\/p>\n