The State Of The Innovation Policy Environment In Nigeria
Learnings from the Nigerian Innovation Policy Dialogue by AfriLabs and UNDP Accelerator Labs by Amadou Sow (UNDP Accelerator Labs), Serge Ntamack (AfriLabs), Tessy Okolo (AfriLabs), Tayo Akinyemi (UNDP Accelerator Labs) and Joshua Omena .A. (AfriLabs). Currently, it is difficult to inventory policies in Africa, and as a result of this, we have fragmentation and siloing in policy development, analysis and understanding. This sets the stage for the relevant dialogues on our innovation policies. We need to know where we are in terms of the progress made in creating a supportive policy environment for startups. Discussing innovation policy is worthwhile given Africa’s potential, its ecosystem and its creativity that makes it resilient despite the enormous challenges the continent faces. The low inventory of policies creates a dissonance in enabling startups across Africa. While some African countries have implemented policies that aim to help startups, many have not. This presents an opportunity for alignment between stakeholders and increased support for innovation. In the presence of a thorough dialogue (or series of dialogues) between stakeholders in a country’s innovation ecosystem, the right policies will be an appropriate response, incisively dealing with the identified block roads. These opportunities for learning and improved support for the innovation ecosystem are glaring especially when we examine the macroeconomic outlook in Africa, alongside the booming startup industry. According to the World Bank, the economic fallout of the COVID-19 pandemic was predicted to slow growth in Sub-Saharan Africa by -3.3% in 2020, pushing the region into its first recession in 25 years. However, there will be a sluggish and multi-speed recovery with significant variation across countries partly owing to higher commodity prices and private consumption and investment as confidence strengthens and exports increase. Simultaneously, funding for Africa’s startups is at a record high, with Nigeria and Kenya serving as the hotspots for Venture Capital investments including $307 million and $305 million raised in 2020. Further, it is predicted that capital funding for African startups will reach a record of $2.25 billion and $2.8 billion in 2021. The role of policy in the recovery and sustainable growth of the innovation economy is crucial and worthy of interrogating conversations. The UNDP Accelerator Labs, through its network of 91 labs covering 115 countries around the world, including 35 in Africa, partnered with AfriLabs, the largest pan-African network of 347 technology and innovation hubs across 52 African countries and the diaspora. This partnership aims to advance the development agenda in Africa – through capacity development, linking policy and practice to advance innovation as a driver for development. To achieve the ambition of this partnership, both organisations identified national dialogues on innovation policies as a good first step. The first edition was held online in December 2021 and focused on Nigeria. The conversations attempted to address various issues around innovation policies in the West African country, through the eyes of the stakeholders on ground. The stakeholders that were present included Nigerian government representatives, local innovation hubs managers, startup founders, local investors, corporate bodies, development agencies and others. The dialogue on the innovation policies in Nigeria provided a space for an inclusive discussion and policy exchange among key and diverse stakeholders, on how innovation policy can best serve development and help achieve sustainable goals. It focused on the following priority areas: Innovation and SDGs Startups Policy framework and prospects Innovation and achieving the SDGs It was highlighted during the conversations that we need to improve how we communicate about the SDGs and what we are doing to achieve them. The conversations emphasized the role of collaboration and aligning of interests between private and public sectors, and the need for connecting the national role of the Innovation Support Network (ISN) and the continental role of AfriLabs. Stakeholders also suggested a seat for innovators at various levels of government and policy-making, both the regional and country level. To build an enabling environment for innovation and ideas that tackle the SDGs, an inclusive and bottom-up policy development approach should be encouraged. Sustainable and decentralized funding and infrastructure development should also be a must. Governments and other stakeholders should support local solutions, develop local talent and encourage youth engagement while integrating innovators into decision-making and technical regulatory and overseeing bodies. We ought to also prioritize measuring and demonstrating impact and reinforce the role of the R&D function within the ecosystem. Supporting startups’ sustainability The government needs to make more effort to understand the startup environment. In the words of one of the stakeholders during the dialogue: “The government uses the same hammer that it applies on the big companies, on the startups. They correct the baby with the same method as the adult”. We need to ease the bureaucracy for startups and support them with incentives. For example, the new postal tax on logistics companies (i.e. 2% of total revenue applied to transportation startups to help the national post office) is not how you encourage growth in the logistics startup scene. We also need to encourage the geographical distribution of the installation of hubs and innovation poles. This will help reduce the drainage of resources towards the large economic and political centres and give all towns and cities in the country a chance to grow their local innovation economy. Mobilization and diversification of funding sources We need more local funding opportunities. Another idea shared was that the state should play the role of a guarantor for access to credit to remove certain barriers such as requiring a track record of 3 to 5 years of activity. Emerging sectors, not just Fintech, need to be supported and focused on, especially sectors like agriculture, healthcare, transportation, trade, real estate and the creative industry. It was also noted that the evolution of skills is required for startup sustainability. Stakeholders were encouraged to embrace negotiation, diplomacy, and a single and united voice to engage the Government on the needs of startups. Policy framework and prospects We need to agree on common objectives. What is an inclusive policy
UNDP Accelerator Labs and AfriLabs Announce Powerful Partnership to Advance Innovation Policy in Africa
Abuja, Nigeria & New York, United States, 10 November 2021 – The United Nations Development Programme (UNDP) Accelerator Labs and AfriLabs held a hybrid live and virtual event hosted by AfriLabs as part of their 2021 Annual Gathering on 29 October 2021 to formally announce their partnership and path forward. Anna Ekeledo, AfriLabs Executive Director and William Tsuma, Senior Advisor and UNDP Nigeria Accelerator Lab Focal Point attended the in-person event at the ImpactCove Hub in Abuja, Nigeria. Ahunna Eziakonwa, Assistant Secretary-General and Director of UNDP’s Regional Bureau for Africa and Gina Lucarelli, UNDP Accelerator Labs Team Leader joined virtually. This partnership between two well-established actors in the African innovation ecosystem will focus on harnessing the knowledge of local innovators across the continent to close the gap towards the Sustainable Development Global Goals (SDGs). To date, Africa is only on track for Goal 14 (life below water), with a regression on Goals such as 16 (peace, justice and strong institutions), which is why we urgently need to mobilize the collective intelligence of more than 1 billion Africans to accelerate progress toward these Goals. While Africa is fueled by an incredibly innovative community of grassroots innovators, youth and members of the informal sector, governments do not yet fully utilize this incredible potential. With this partnership the UNDP Accelerator Lab Network and AfriLabs bet on the African innovation ecosystem to increase its contribution to solving the continent’s most pressing development challenges and advance innovation policy in Africa. Both partners’ scale and networks across the continent make them uniquely positioned to achieve that. The UNDP Accelerator Lab Network comprises 91 labs covering 115 countries among which 35 are located in Africa, and AfriLabs is the largest pan-African network, comprising 320 technology and innovation hubs across 51 African countries and the diaspora. “With our youth population projected to be over 500 million over the next 5 years, the importance of job creation cannot be understated, and innovation hubs act as a platform that build systems and businesses that create these jobs. We see this partnership as a powerful collaboration that can multiply the effect of our goals and we look forward to recording measurable impact tailored to revolutionize the innovation ecosystem in Africa,” Anna Ekeledo, Executive Director of AfriLabs said about the partnership. “Together, AfriLabs and the 35 UNDP Accelerator Labs in Africa will draw lessons from existing policies and develop a framework which will be shared as input for African leaders,” said Ahunna Eziakonwa, Assistant Secretary-General and Director of UNDP’s Regional Bureau for Africa. “This can shape inclusive innovation policies that will better address the complexity of current development challenges.” “Bottom-up innovation plays a critical role if we want to accelerate progress towards the Goals,” shared Gina Lucarelli, UNDP Accelerator Labs Team Leader. “We know there is power in the homegrown innovation happening across the continent and this partnership will help us tap into this potential. I am particularly excited about the upcoming national innovation policy dialogues we are co-organizing to surface what kind of innovation policies can unleash and enable all that power.” The signing ceremony has officially kickstarted this knowledge partnership for the African innovation and development ecosystem. Next up, the partners are organizing a panel series called the “Africa Innovation Policy Dialogues” which will take place in 2021 and 2022, starting in Nigeria and Kenya in November 2021, and will discuss how local innovations can contribute to accelerating progress towards the Sustainable Development Goals even, and especially, in times of COVID-19. About AfriLabs AfriLabs was founded in 2011 to build a community around rapidly emerging tech hubs―innovation spaces that serve as meeting points and communities for developers, entrepreneurs, and investors. They believe that supporting the development of the African technology and innovation ecosystem enables Africa to participate in the global knowledge and innovation market place thereby stimulating economic growth. Currently 320 member hubs strong across 51 African countries and the diaspora, AfriLabs vision is to build a thriving innovation economy in Africa, powered by their community. To learn more, visit afrilabs.com or follow @AfriLabs on social media. About UNDP Accelerator Labs The United Nations Development Programme (UNDP) Accelerator Lab is the world’s largest and fastest learning network on wicked sustainable development challenges. Co-built as a joint-venture with the Federal Ministry for Economic Cooperation and Development of Germany and the Qatar Fund for Development, the Network covers 115 countries, and taps into local innovations to create actionable insights and reimagine sustainable development for the 21st century. Learn more at acceleratorlabs.undp.org or follow us at @UNDPAccLabs For more information or media inquiries, please contact: Joshua Omena A., AfriLabs Communications, +234 7051243829, joshua@afrilabs.com Erika Antoine, UNDP Communications, +1 929 406 5348, erika.antoine@undp.org