Innovation in Africa
How It Works and What the World Can Learn
Though hindered by challenges, innovation in Africa is booming. James Nurton looks at the key growth sectors and the role that IP rights can play in promoting innovation.
Innovation in Africa is taking off, led by new products and businesses in industries including agritech, fintech, and telemedicine. According to a report by Partech Partners, venture capital funding in Africa grew by 8 percent to US $6.5 billion in 2022, despite the global economic crisis.
Much of this innovation is being driven by the need to address some specific challenges facing African leaders across the content. Chief among them are the impact of climate change, young and growing populations (Africa’s population is predicted to increase from 1.3 billion today to two billion by 2038), and the relative lack of infrastructure and manufacturing.
This is making Africa different from other parts of the world. As Lea Feghaly, Legal Consultant, Alyafi IP Group (Morocco), says: “Africa is leapfrogging in terms of innovation.” Many entrepreneurs and businesses must be creative to overcome obstacles such as limited transport links, widely dispersed populations, and poor health and hygiene facilities.
Mobile banking is a good example. Following the success of the M-PESA mobile-phone payment service, which was launched in Kenya in 2007, many other banking and finance services are now being developed for mobile phones. “There is a lot of investment by the financial services sector in building digital platforms. We’re seeing partnerships between banks and insurance companies on one hand and small fintech players with technology and knowhow on the other,” explains John Syekei, Partner, Bowmans (Kenya).
Other examples of areas where digital technology is driving innovation include:
· Healthcare and telemedicine, where investment has been spurred on by the COVID-19 pandemic: platforms such as tobba.tn in Tunisia, Innovarx Global Health in The Gambia, and Tulip Industries in Guinea (which has won several international awards) are improving medical services by developing platforms to connect patients and medical professionals digitally. · Retail, to promote supply-chain efficiency and improve food security: Kenya’s Twiga reaches 140,000 small retailers and has raised some US $100 million from investors including Juven, a Goldman Sachs-led fund. · Renewable energy: Morocco has one of the world’s largest solar energy projects, in Ouarzazate in the Sahara Desert, which uses solar energy to power turbines that produce power for 1.3 million people. The country also has one of Africa’s largest wind farms, located in Tarfaya. · Logistics and e-commerce: Jumia, an online multiproduct platform launched in Nigeria in 2012, is now present in 10 African countries, has 8.4 million active consumers, and handles a transaction every two seconds.
“Africa is leapfrogging in terms of innovation.”
- Lea Feghaly | Alyafi IP Group (Morocco)
Creating a Culture of Innovation
The importance of promoting research and innovation, especially among young people, is being recognized across Africa—and beyond. Earlier this month, the first Science, Technology and Innovation in Africa Day was held at the United Nations headquarters in New York, New York, USA. Its theme was “accelerating development and diffusion of emerging technologies for a green, inclusive, and resilient Africa.”
In Nigeria, the continent’s most populous country, Vice President Yemi Osinbajo recently announced a US $600 million Investment in Digital and Creative Enterprises (i-DICE) program for Nigerian entrepreneurs aged 15 to 35. “Sixty percent of Nigeria’s population are under 25 years old. It is important to help young creators to develop products and get funding,” says Tolu Olaloye, Partner, Jackson, Etti & Edu (Nigeria), who adds: “Government has also helped entrepreneurship courses at universities, so that when people leave school, they are keen to start businesses.”
Innovation hubs, such as Lagos Innovates and Wennovation in Nigeria, the Silicon Cape Initiative and SmartXchange in South Africa, MEST in Ghana, and Iceaddis in Ethiopia, are further promoting R&D, while the IP Hub Zambia, founded by 26-year-old Precious Gozwa, celebrates the benefits of intellectual property (IP)—in particular to young women entrepreneurs.
The private sector is also playing an important role, with many overseas companies setting up or expanding technology centers in Africa. For example, last year, Microsoft invested US $27 million in a new R&D software engineering hub in Nairobi, Kenya. Among other things, it will host the Microsoft Garage incubation hub. Meanwhile, during the COVID-19 pandemic, Germany’s BioNTech announced it would build plants to manufacture the mRNA vaccine in Rwanda and Senegal. In the creative sector, Netflix has invested US $175 million in Sub-Saharan Arica since 2016 while Warner Music Group and Canal+ have also made significant media investments in the continent.
This innovation story is set to be boosted by the African Continental Free Trade Area (AfCFTA), which became operational on January 1, 2021. With 54 signatories and 46 state parties as of April this year, it aims to boost income in Africa by US $450 billion by 2035 by creating a single market for goods and services.
Phase II of AfCFTA includes a Protocol on Intellectual Property Rights, which aims to “promote IP rules and standards that are calibrated to the continent’s level of industrialization and in line with the AfCFTA’s objectives,” according to a December 2020 article in WIPO Magazine.
“Sixty percent of Nigeria’s population are under 25 years old. It is important to help young creators to develop products and get funding.”
- Tolu Olaloye | Jackson, Etti & Edu (Nigeria)
IP’s Role in Driving Innovation
The inclusion of an IPR Protocol in AfCFTA illustrates the importance attached to promoting IP awareness and understanding to the African innovation ecosystem. In this context, there are a number of important national and regional initiatives.
In Egypt, for example, the government published the first National Intellectual Property Strategy in September 2022, which will lead to fundamental reforms over the next five years with the aim of promoting innovation and creativity, leading to greater prosperity and sustainable development. “The Strategy should raise awareness, consolidate services under one roof, and motivate national innovation,” says Dina Eldib, Partner, Eldib & Co (Egypt).
In Nigeria, the government recently passed the Business Facilitation Act 2023, which includes reforms to designs, patents, and trademarks (including the introduction of trademarks for services). In March this year, the Copyright Act 2022 also come into force. “This provides protections for the various forms of innovation in the creative industries, including audiovisual works, and introduces stricter criminal liability and anti-piracy measures, including the ability to block infringing content,” says Ms. Olaloye.
As manufacturing is relatively weak compared to agriculture in many African economies, innovation is often protected by other forms of IP. These can include copyright, design rights, and trademarks to protect innovative features of apps and digital services, as well as utility models where they are available (such as in Kenya), plant variety protection, and trade secrets. Geographical indications may also have an important role to play, particularly for the promotion of sustainable development: the EUIPO-funded AfrIPI project is supporting the implementation of a continental GI strategy, and a roundtable on the topic was held in February this year.
Patent filing is still dominated by overseas entities in most African countries, but a number of initiatives aim to make the patent system more accessible to local enterprises. These efforts include discounts or subsidies for individual inventors or small entities, simpler procedures, training, and awareness raising.
Leading these efforts are the regional organizations, the African Regional Intellectual Property Organization (ARIPO) and the Organisation Africaine de la Propriété Intellectuelle (OAPI).
Patent applications by nationals of OAPI Member States grew by 44 percent last year, driven by responses to the COVID-19 pandemic. OAPI is also seeing more applications in the energy sector, according to a spokesperson.
“Everything leads us to believe that this trend will become more pronounced over the coming decades, both for health and sanitary devices and for the development of the digital economy,” Outule Rapuleng, Head of the ARIPO Academy (Zimbabwe), highlighting the important role that patent databases can play: “Researchers are not aware that patent databases have up to 80 percent of all technical information, which means that they are often reinventing the wheel.”
ARIPO is working with universities, as well as international partners such as the European Patent Office and WIPO, to raise awareness and promote skills such as patent drafting. For example, researchers have access to over 300 patent libraries in Europe through the EPO’s PATLIB program.
In December last year, European Patent Office President António Campinos (Germany) completed a mission to Africa, which included meetings with ARIPO and OAPI, to build ties and promote cooperation. He also discussed a proposed Validation Agreement between OAPI and the EPO, which would enable European patents to be validated in OAPI Member States. The EPO already has validation agreements with Morocco and Tunisia.
Other important initiatives to promote IP awareness include a Judges’ Colloquium on Enforcement of Intellectual Property Rights in Africa, which was hosted by AfrIPI earlier this month in Swakopmund, Namibia. AfrIPI also created a pan-African database of IP rights case law in 2021.
“We try to demystify IP and remove it from being completely legal.”
- Outule Rapuleng | ARIPO (Zimbabwe)
Focus on Commercialization
While there is a wide range of exciting innovation happening in Africa, there is more to be done to facilitate commercialization as well as bridge the gap between the inventor and the market. To promote understanding of IP, ARIPO is working with universities in Ghana, Tanzania, and Zambia to deliver a Masters in IP program, which has already seen about 420 students graduate. “We try to demystify IP and remove it from being completely legal,” says Dr. Rapuleng.
The key now, says Ms. Feghaly, is to promote collaboration and technology transfer to transform ideas into commercial products: “The most important point is we need to increase access to funding. You can have a brilliant invention, but you need funding to bring it to life.” As an OAPI spokesperson said: “The major challenge in the next few years is to set up a sustainable mechanism for financing invention and technological innovation: an advanced process, intended to transform the patents that OAPI issues into new products and/or companies on the market.”
Facing challenges with creative thinking, infrastructure, investments, engagement with up-and-coming innovators, and the global IP community is a foundational start to what is already a flourishing creative ecosystem in a continent that is facing down obstacles and greeting them with solutions.