UNDP: Timbuktoo looks to raise $1bn to support 10,000 African startups

The United Nations Development Programme (UNDP) has taken a significant step towards driving innovation in Africa with the launch of the Timbuktoo Fintech hub in Lagos. This hub is the first of ten Pan-African thematic tech hubs that the UNDP plans to establish across the continent. The Regional Director for Africa at the UNDP, Ahunna Eziakonwa, shared insights about the ambitious plan to raise $1 billion to support 10,000 startups and scale about a thousand of them at the continental level. The primary focus of the Timbuktoo initiative is to foster the growth of startups and entrepreneurs in various sectors beyond just fintech. While fintech remains crucial due to its mature ecosystem and cross-cutting impact, the UNDP aims to create a more inclusive ecosystem that encompasses sectors like health, education, and agriculture. By broadening the scope of support, the UNDP hopes to address the current liquidity and funding challenges faced by startups in Africa. During a conversation with CNBC Africa, Eziakonwa emphasized the importance of scaling ventures to drive transformation. She highlighted the need for innovation to extend beyond FinTech to cover multiple sectors that align with the sustainable development goals. This approach aims to generate momentum and volume in various industries to attract more financial resources. Despite the substantial growth in e-commerce and the adoption of artificial intelligence in Africa, the UNDP recognizes Nigeria as a key player in driving innovation on the continent. Eziakonwa praised the creativity and resilience of Nigerians, foretelling that Nigeria could become a global hub for solutions and innovations. The UNDP's Timbuktoo initiative stands out for its multi-stakeholder approach, bringing together various investors, governments, and venture capitalists to support African startups. By creating a convergence point for stakeholders, the program aims to leverage global networks and country offices to propel startups to the next level. Additionally, the UNDP intends to align Timbuktoo with the goals of the African Continental Free Trade Area to facilitate borderless trade and address policy challenges that hinder startup growth. One of the key objectives of Timbuktoo is to encourage African investors to participate in funding startups within the continent. Currently, a significant portion of capital for sectors like fintech comes from outside Africa. By mobilizing homegrown capital, the UNDP aims to retain talent and ideas within the continent, ultimately fostering a thriving entrepreneurial environment. In conclusion, the launch of the Timbuktoo Fintech hub marks a pivotal moment in the UNDP's efforts to support African startups and drive innovation across various sectors. With a focus on scalability, inclusivity, and multi-sectoral collaboration, the initiative holds promise for transforming Africa's entrepreneurial landscape and attracting much-needed investment.