Impact of Innovation Hubs in Africa (A Literature Review)

Innovation hubs according to Friederici (2017) are small organizations that are into supplying co-working spaces and noted for putting together capacity building support for entrepreneurs in the form of training, mentorship, networking, and hackathons. The number of innovation hubs on the continent grew from a handful in 2010 to about 90 in 2013 to 117 in late 2015 and finally to 173 in June 2016 BongoHive (2013), Firestone (2016).

 Africa is the most populous continent after Asia with an average population of 1.3 billion people as of 2018, this accounts for 16% of the world’s human population (National Geography 2002). Africa has been noted for having the youngest population amongst all the continents with a median age of 19.7 as of the year 2012 compared to the world's median age of 30.4. Olivier and Croteau-Chonka (2019). In as much as the country is endowed with a wealth of natural resources, it records the least capital which has been attributed to European colonization. Pakenham (1991)

 The continent is currently experiencing an astronomical growth in technology and entrepreneurship. The continent has been earmarked to experience rapid socioeconomic growth only if she is able to reach out to grassroots entrepreneurs. In Africa’s bid to make use of the incoming growth, she has literally started building cities for tech firms Saraswathi (2014) and Vourlias (2015). At the core of this growth has been the rise of innovation hubs across the continent Friederici (2017). This essay would consider arguments that speak to the impact of tech hubs in Africa, it would essentially focus on their role in propelling the technological gains of Africa.

Kelly and Firestone (2016) in their 2016 world bank report present some interesting assertions. They count close to 117 innovation hubs in Africa, most of which were created between the years 2013 and 2016. The write up, highlights how Innovation hubs in Africa have consistently made incredible strides in their effort to bring tech business to the grassroots level. They further expand their argument by stating that, these Innovation hubs have created sustainable pathways of employment and created new firms. They were quick to add that, these Innovation hubs have also demonstrated high failure rates and varying levels of success (Kelly and Firestone 2016, p. 4.) Their inability to maximize efforts in spreading inclusion, efficiency, and innovation which in turn propels digital technology advancements, is greatly tied to the ideologies that underpin their existences. Kelly and Firestone have categorically labeled these ideologies as, academic institution-led, governments led, and civil society-led (Kelly and Firestone 2016, p. 4.). They argue that over-reliance on each of these facets would gradually see a dwindling impact of Innovation hubs in their communities, they recommend a hybrid model that effectively combines all these categories.

 Hvas (2015) makes some valuable insight into the hypothesis under discussion. In the author’s effort to indicate the impact of innovation hubs in Africa, he profiles iHub in Kenyan. iHub, one of the first hubs in Africa has a new innovative approach to driving growth in Keyan. Three additions to their initiatives are iHub Research and iHub Research UX lab. These among others have propelled innovations and businesses and generated income for the Tech Hub. In their bid to continually stay relevant, they organize local hackathons where members get together to ultimately hack solutions. The innovation has since its inception birth startups such as Sprint'Interactive, founded in 2010 focused on mobile and web development with an international market and close to 9 employed full-time staff. (iHub 2015). Over the three years following iHub’s launch, it incubated over 100 startups and was seeking further expansion at the Bishop Magua Centre, by then dubbed the “mecca for African ICT (information and communication technology) entrepreneurs (Solés 2013). The launch of iHub is considered by many as a key factor that positioned and transformed Kenya’s capital, Nairobi, into a center for startups, technology, and innovation. According to a GSM (Groupe Speciale Media) Association (GSMA) study, Kenyan entrepreneurs outside Nairobi (e.g., those located in Mombasa or Kisumu) tend to relocate closer to the Bishop Magua Centre and Ngong Road once their startups gain traction. (Moime 2016) 

 In 2014, the Vodafone Institute for Society and Communications in their bid to recommend additional coworking spaces, incubators, and accelerators, they highlighted the work that Innovation hubs are already doing in Nairobi. They juxtapose Silicon valley’s impact on what Innovation hubs are doing here in Africa. They add that in order to sustain their relevance, networking and community events should be driven into the very culture of all innovation spaces. (Manske, 2014, p. 252)

Furthermore, Friederici (2017) presents a valuable and promising addition to African technology entrepreneurship, he recommends that it is prudent they focus on loopholes such as the lack of effectiveness, exclusionary tendencies, and wastefulness. He adds that, in an empirical inquiry, the research reaffirmed Innovation hubs as the “future of Africa” (Oxford and Jeffries, 2013; Wakoba, 2014) is certainly overblown. As iHub and the Hub London have over the years proven that hubs can be instrumental in transforming Africa. He recommends that the expectations from Innovation hubs should be managed because they are facilitators and not creators of Interactive, collaborative, and collective entrepreneurial value creation. (Friederici 2017 p. 15). Innovation hubs have also seen growth in Africa because they have been noted to facilitate grassroots innovation supporting tech startups to scale up. They have brought to limelight some locally developed mobile and software applications Friederici (2017). The identity and essence of innovation hubs have not been fully accepted by most people. They are often misunderstood as business incubators or accelerators. In as much as the distinction between the two doesn't uniquely stand out, it should be noted that Innovation hubs are beyond what we expect and if given the needed support, they would propel Africa’s inclusion in the technological revolution worldwide. (Kelly and Firestone 2016).

 In conclusion, with my experience working with innovative spaces in some parts of Africa, I am impressed with the ray of hope they present to most young people across the continent and how they have garnered support from donors to amplify their efforts to facilitate grassroots innovation. I strongly assert that innovative spaces across the continent should go by the title “innovation”, they should focus on how they can amplify the efforts of already existing ideas, and technologies like mobile money, fintech, and Agri-tech. 

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