Microsoft to support 10,000 African start-ups in 5 years

Under the remit of its recently established Africa Transformation Office (ATO), Microsoft has announced new initiatives to accelerate the growth of 10,000 African startups and fast-track investment in Africa’s startup ecosystem over the next five years.

 

The company is also creating new partnerships with accelerators and incubators across Africa, including Grindstone, Greenhouse, FlapMax and Seedstars to provide industrybased startups with access to markets, technical skills and funding opportunities.

These partnerships will provide Africa startups with access to skilling programmes, access to markets, including opportunities to co-sell with Microsoft, and access to technology, with support from the company’s engineering and product teams for co-innovation opportunities.

 

To enable startups to rapidly scale using investment funding, Microsoft disclosed in a statement that it is establishing industry alliances and partnerships with venture capital investors that will facilitate access to $500 million in potential funding for African startups.

 

This funding will come from a network of venture capital investors, who will dedicate a portion of their financial support to startups in the Microsoft network.

 

This is coming as the company has already established partnerships with several key venture capital investors, including Banque Misr, Global Venture Capital and Get Funded Africa, and the intention is to grow this network of venture capital investors in the next five years to increase funding and enable them to scale up and drive economic growth.

 

It noted that the vibrant African startup market is well placed to become a cornerstone of the continent’s digital economy, supporting local innovation through relevant solutions to societal challenges.

“Investments into Africa’s startup ecosystem are growing at an exciting pace. According to the Organisation for Economic Co-operation and Development (OECD), there are more than 640 active tech hubs across Africa, accelerating innovation and creating employment, particularly among the youth,” says Wael Elkabbany, Managing Director, Microsoft Africa Transformation Office.

 

“However, currently the African startup market represents less than one per cent of total investments worldwide. This needs to change,” Elkabbany said.