{"id":30841,"date":"2022-02-24T14:12:56","date_gmt":"2022-02-24T14:12:56","guid":{"rendered":"https:\/\/www.elixirr.com\/?p=30841"},"modified":"2025-10-31T10:46:01","modified_gmt":"2025-10-31T10:46:01","slug":"can-africa-build-a-digital-wakanda-by-2030","status":"publish","type":"post","link":"https:\/\/www.elixirr.com\/en-gb\/can-africa-build-a-digital-wakanda-by-2030\/","title":{"rendered":"Can Africa build a &#8216;Digital Wakanda&#8217; by 2030?"},"content":{"rendered":"\n<p>With <a href=\"https:\/\/partechpartners.com\/2021-africa-tech-venture-capital-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">$6bn<\/a> in total disclosed funding in 2021, Africa is seeing record-breaking levels of investment \u2013 an encouraging sign of things to come. There are, however, well-known hurdles that face the continent, such as mobile connectivity, lagging physical infrastructure and regulatory issues. All of which act as barriers to a &#8216;Digital Wakanda&#8217; [<a href=\"https:\/\/marvel.fandom.com\/wiki\/Wakanda\" target=\"_blank\" rel=\"noreferrer noopener\">&#8216;Wakanda&#8217;<\/a>&nbsp;<em>a fictional African country that has advanced and futuristic technology that&#8217;s home to Marvel superhero Black Panther<\/em>].<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-digital-wakanda\"><strong>Digital Wakanda:<\/strong><\/h2>\n\n\n\n<p>The term Digital Wakanda was coined in November 2021 by <a href=\"https:\/\/edition.cnn.com\/2021\/11\/22\/tech\/lacina-kon-smart-africa-spc-intl\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">Lacina Kon\u00e9<\/a>, \u2018Smart Africa\u2019s\u2019 CEO.&nbsp;<a href=\"https:\/\/smartafrica.org\" target=\"_blank\" rel=\"noreferrer noopener\">&#8216;Smart Africa&#8217;<\/a>, a partnership of 32 African countries, The World Bank and the African Union, is tasked with developing the continents&#8217; digital infrastructure. In order to achieve a more digitally connected Africa, the organisation supports countries launching flagship projects, such as Rwanda aiming to build a Smart City, South Africa developing AI and Blockchain and C\u00f4te d&#8217;Ivoire investing in Cybersecurity. By co-ordinating laws and supporting the scaling of pilots, Smart Africa hopes to build an attractive regulatory environment for technology investors by 2030. But how likely is this?&nbsp;<\/p>\n\n\n\n<p>Over this two-part series, we\u2019ll explore the pragmatic enablers and blockers to realising a &#8216;Digital Wakanda&#8217;.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-landscape\"><strong>The landscape<\/strong><\/h2>\n\n\n\n<p>In order to understand whether a Digital Wakanda is likely, let\u2019s first look at this topic more broadly.&nbsp;<\/p>\n\n\n\n<p>Africa\u2019s powerful economic growth since 2000 has been well documented \u2013 sitting at <a href=\"https:\/\/www.afdb.org\/en\/documents\/african-economic-outlook-2021\" target=\"_blank\" rel=\"noreferrer noopener\">5%<\/a> in GDP year on year (far above the global average of 2%). A key reason for their success? The flow of foreign direct investment (FDI) into the continent. This trendline, like so many others, was intrinsically linked to welfare of the Chinese economy &#8211; <a href=\"https:\/\/www.afdb.org\/en\/documents\/african-economic-outlook-2021\" target=\"_blank\" rel=\"noreferrer noopener\">China<\/a> are a major investor in African physical infrastructure &#8211; and saw a responsive dip in 2015 when China&#8217;s manufacturing trade industry slowed. This was exacerbated by the COVID-19 pandemic, following which GDP shrunk by <a href=\"https:\/\/www.afdb.org\/en\/documents\/african-economic-outlook-2021\" target=\"_blank\" rel=\"noreferrer noopener\">2.1%.<\/a> That being said, Africa&#8217;s Real GDP growth rate is soon expected to surpass that of Europe and North America. This is, in part, due to the relatively modest fatality rate in relation to other world regions, as well as China&#8217;s economy recovering.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-so-what-s-the-big-deal\"><strong>So, what&#8217;s the big&nbsp;<em>deal<\/em>?<\/strong><strong><\/strong><\/h2>\n\n\n\n<p>This deals landscape suggests that Africa could, in fact, realise a &#8216;Digital Wakanda&#8217; by their 2030 milestone. But, is the rate of deal acceleration sufficient? One such indicator is investment into the private sector and <a href=\"https:\/\/briterbridges.com\/briterintelligence\" target=\"_blank\" rel=\"noreferrer noopener\">venture capitalism (VC)<\/a>. There is a strong case to invest in Africa, who now boast nine unicorns including Francophone Africa&#8217;s first unicorn, <a href=\"https:\/\/www.wave.com\/en\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8216;Wave\u2019<\/a>. This is a mobile money platform without account management fees, currently based in Senegal and C\u00f4te d&#8217;Ivoire. Let\u2019s also consider the $6bn of disclosed funding reported across Africa in 2021. This record level is <a href=\"https:\/\/partechpartners.com\/2021-africa-tech-venture-capital-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">over triple <\/a>what was seen in 2020, and yet <a href=\"https:\/\/briterbridges.com\/africainvestmentreport2021\" target=\"_blank\" rel=\"noreferrer noopener\">65%<\/a> of the total investment amount can be attributed to just 4% of deals made on the continent. Other notable companies raising Africa&#8217;s investment profile are the success stories of <a href=\"https:\/\/www.opayweb.com\" target=\"_blank\" rel=\"noreferrer noopener\">OPay<\/a> (Mobile Money Service), <a href=\"https:\/\/chippercash.com\" target=\"_blank\" rel=\"noreferrer noopener\">Chipper<\/a> (African payments service backed by Jeff Bezos), <a href=\"https:\/\/jumo.world\" target=\"_blank\" rel=\"noreferrer noopener\">Jumo<\/a> (Financial services suite) and <a href=\"https:\/\/flutterwave.com\/gb\/\" target=\"_blank\" rel=\"noreferrer noopener\">Flutterwave<\/a> (Payment infrastructure provision). As demonstrated, most of the investment (63%) is headed for <a href=\"https:\/\/partechpartners.com\/2021-africa-tech-venture-capital-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">FinTech, <\/a>followed at a distance by <a href=\"https:\/\/partechpartners.com\/2021-africa-tech-venture-capital-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">Logistics<\/a> (7%) and <a href=\"https:\/\/partechpartners.com\/2021-africa-tech-venture-capital-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">EdTech<\/a> (6%). An example of where an investment in an African FinTech can be worth the risk is &#8216;<a href=\"https:\/\/www.jumia.com.ng\/\" target=\"_blank\" rel=\"noreferrer noopener\">Jumia&#8217; <\/a>(dubbed the Amazon of Africa) \u2013 Africa&#8217;s first unicorn to list on the <a href=\"https:\/\/www.nyse.com\/quote\/XNYS:JMIA\" target=\"_blank\" rel=\"noreferrer noopener\">New York Stock Exchange<\/a>. In early 2021 it was trading between $40 and $60 with 6.8m active customers in the last quarter of 2020, up from 6.1m in the corresponding quarter of the previous year. Perhaps most promising of all is that some experts predict that in the next 12-18 months we could see 40+ African companies (&#8216;Soonicorns&#8217;, i.e. potential Unicorns) raising above <a href=\"https:\/\/briterbridges.com\/africainvestmentreport2021?ss_source=sscampaigns&amp;ss_campaign_id=61d33bc577968247f12f85f3&amp;ss_email_id=61d3793cc8cfeb2907708fc6&amp;ss_campaign_name=Briter+Bridges\u2019+Africa+Investment+Report+2021+is+out%21&amp;ss_campaign_sent_date=2022-01-03T22%3A31%3A53Z\" target=\"_blank\" rel=\"noreferrer noopener\">$50bn<\/a> of investment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-does-this-all-mean\"><strong>What does this all mean\u2026<\/strong><\/h2>\n\n\n\n<p>This <a href=\"https:\/\/africa.businessinsider.com\/local\/markets\/china-ranks-ahead-of-america-as-the-largest-investor-in-africa-since-2010\/62532rh\" target=\"_blank\" rel=\"noreferrer noopener\">investment<\/a> comes from a blend of governments (USA, UK, France, South Africa, Japan and Canada), and corporates (Softbank, Tencent and Toyota). Most notably perhaps? A 5-year investment of <a href=\"https:\/\/blog.google\/around-the-globe\/google-africa\/google-for-africa\/\" target=\"_blank\" rel=\"noreferrer noopener\">$1bn<\/a> from global behemoth Google \u2013 a clear mark of confidence. This is primarily to focus on internet connectivity, helping entrepreneurs and small businesses succeed using the internet and a renewal of investment for non-profit initiatives across the continent. Google also announced a $50 Africa Investment Fund in November 2021, aimed at state start-ups.&nbsp;<\/p>\n\n\n\n<p>Investment in the continent on this level is not just encouraging. It seems to suggest that Smart Africa\u2019s vision for a Digital Wakanda might just become a reality\u2026&nbsp;<\/p>\n\n\n\n<p>Read part II to understand more, and to find out what factors stand in its way.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With $6bn in total disclosed funding in 2021, Africa is seeing record-breaking levels of investment \u2013 an encouraging sign of things to come. There are, however, well-known hurdles that face&hellip;<\/p>\n","protected":false},"author":1,"featured_media":30871,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[116],"tags":[172],"related_service":[],"related_industry":[438],"class_list":["post-30841","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-digital-transformation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Can Africa build a &#039;Digital Wakanda&#039; by 2030? - Elixirr<\/title>\n<meta name=\"description\" content=\"Assessing the deals landscape in Africa, the level of investment suggests that it can build a Digital Wakanda by 2030.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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               <p class=\"wp-component-card__eyebrow\">\n                Articles            <\/p>\n                <a href='https:\/\/www.elixirr.com\/en-gb\/can-africa-build-a-digital-wakanda-by-2030\/' class='wp-component-card__title'>\n            <h2>\n                Can Africa build a &#8216;Digital Wakanda&#8217; by 2030?\n            <\/h2>\n        <\/a>                                    <div class=\"wp-component-card__description\">\n                    With $6bn in total disclosed funding in 2021, Africa is seeing record-breaking levels of investment \u2013 an encouraging sign of things to come. There are, however, well-known hurdles that face&hellip;                <\/div>\n                                                    <div class=\"wp-component-card__meta\">\n                                            <p class=\"wp-component-card__date\">\n                            24 February 2022                        <\/p>\n                                                                <div class=\"wp-component-card__terms\">\n                                                                                                                                                    <div class=\"wp-component-tags edwp-component\">\n                        <div class=\"wp-component-tags__tag\">\n                Telecommunications            <\/div>\n                <\/div>\n                        <\/div>\n                                    <\/div>\n                                                    <div class=\"wp-component-card__button-wrapper\">\n                    <button class=\"btn btn--link arrow wp-component-card__button\">\n                                                                            Read more                                                                            <span class='edwp-svg '><svg width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g id=\"Lg\">\n<path id=\"Vector\" d=\"M1.12509 9.50162H15.8648L9.43259 3.06941C9.374 3.0113 9.3275 2.94216 9.29576 2.86599C9.26403 2.78981 9.24769 2.70811 9.24769 2.62559C9.24769 2.54307 9.26403 2.46137 9.29576 2.38519C9.3275 2.30902 9.374 2.23988 9.43259 2.18177C9.54971 2.06535 9.70814 2 9.87328 2C10.0384 2 10.1969 2.06535 10.314 2.18177L17.8151 9.6829C17.8737 9.74101 17.9202 9.81014 17.9519 9.88632C17.9837 9.96249 18 10.0442 18 10.1267C18 10.2092 17.9837 10.2909 17.9519 10.3671C17.9202 10.4433 17.8737 10.5124 17.8151 10.5705L10.314 18.0717C10.1975 18.1871 10.0404 18.2522 9.87641 18.2529C9.79414 18.2534 9.71259 18.2376 9.63643 18.2065C9.56027 18.1754 9.491 18.1296 9.43259 18.0717C9.374 18.0135 9.3275 17.9444 9.29576 17.8682C9.26403 17.7921 9.24769 17.7104 9.24769 17.6278C9.24769 17.5453 9.26403 17.4636 9.29576 17.3874C9.3275 17.3113 9.374 17.2421 9.43259 17.184L15.8711 10.7518H1.12509C0.959309 10.7518 0.800312 10.686 0.683084 10.5687C0.565857 10.4515 0.5 10.2925 0.5 10.1267C0.5 9.96093 0.565857 9.80193 0.683084 9.68471C0.800312 9.56748 0.959309 9.50162 1.12509 9.50162Z\" fill=\"#1D0F25\"\/>\n<\/g>\n<\/svg>\n<\/span>                                            <\/button>\n                <\/div>\n                                            <\/div>\n<\/article>\n","_links":{"self":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts\/30841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/comments?post=30841"}],"version-history":[{"count":2,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts\/30841\/revisions"}],"predecessor-version":[{"id":58473,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts\/30841\/revisions\/58473"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/media\/30871"}],"wp:attachment":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/media?parent=30841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/categories?post=30841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/tags?post=30841"},{"taxonomy":"related_service","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/related_service?post=30841"},{"taxonomy":"related_industry","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/related_industry?post=30841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}