2 Executive Summary Driving innovation through a supportive policy environment
Africa is witnessing an explosion in its technology enterprises. Home to more than half the world's mobile-money users, the continent is pioneering opportunities for commercial innovation. Indeed, in 2021, African tech grew faster than any other region, with investments more than tripling in one year, reaching $5.2 billion. As we now enter a period of rapid take-off, increased activity in the policy and funding aspects must be stepped up for a sustained impact of innovation in the economic performance of the continent. Policymakers in some countries already appear to have taken cue and are now stepping up legislation to improve the business environment for innovators. More of these actions are required following the establishment of the African Continental Free Trade Area (AfCFTA), which makes the continent home to the world's largest free-trade area, with the power to boost its income by $450 billion by 2035 (a 7 per cent gain). A good portion of this additional income will come from innovations supporting sectors like manufacturing and agriculture and trade. Meanwhile, several African countries are deploying "Start-up Acts", an incentive framework to spur private sector investments, reduce regulatory burden, and promote entrepreneurship. But more needs to be done to address the numerous challenges that innovators and entrepreneurs on the continent face. An ambitious and comprehensive effort across multiple policy areas is especially required to ensure that innovation in Africa yields tangible results. Our 10 policy pathways thus summarise the priorities for entrepreneurs, startups, innovators, and hubs across Africa, which require urgent attention by policymakers, donors, investors and innovation partners.
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