Rwanda is fast becoming the first Africa’s major tech hubs with the new one billion dollars hub project as it is set to host Timbuktu, the headquarters of the United Nations Development Programme’s (UNDP) new innovation financing hub.
This new hub is part of the UNDP’s goal to kickstart Africa’s startup revolution. It aims at discussing the gaps of early-stage risk capital while also striving to grow global-class entrepreneurs and open the ‘One Africa market.’
The programme hopes to invest $1 billion in incentive and commercial capital with a goal of developing an innovation network evenly among eight pan African hubs located in specific ecosystems across the continent.
With this new project plan, over 1,000 startups from all over the continents will be beneficiaries.
Following a discussion between the President of Rwanda, Paul Kagame and UNDP delegates including Ahunna Eziakonwa, Assistant Secretary-General and Director of UNDP-Africa, it was agreed that the financial support for the venture building of each of the eight hubs will be sponsored indirectly by UNDP and it is currently mobilizing funds for this financing.
The fund will be invested in subsidiary funds for each hub and these hubs will be privately managed and will have to work closely in collaboration with talent centres, colleges, corporations, and other ecosystem.
The plan is that the Parent Fund, UNDP after funding the eight hubs will then provide them with subsidiary venture funds that will attract private co-investors.
This is to make each hub a global centre for innovative excellence with a professional, experienced but private hub manager.
While other African countries boast of larger tech startups, Rwanda is unique for its rapid growth in the technology sector