West Africa is becoming a hotbed for dynamic startups, increasingly contributing to the regional economy. These innovative companies are garnering the attention of foreign powers such as France, Morocco, the United States, China, and Russia, which aim to bolster their influence in the region through strategic investments.
The emergence of startups in West Africa
West Africa is witnessing an entrepreneurial boom, with startups revolutionizing key sectors from fintech to agritech. Cities like Abidjan and Lagos are emerging as innovation hubs, supported by incubators and accelerators such as the MEST Africa Challenge, which attract international venture capital funds.
In financial technologies (fintech), companies like Flutterwave in Nigeria facilitate online payments, enabling businesses and individuals to transact seamlessly and securely. Jumia, while primarily known for its e-commerce activities, also incorporates innovative payment solutions to enhance the regional digital ecosystem. In Senegal, Wave is transforming mobile financial services by offering accessible options, particularly for the unbanked population, thus promoting financial inclusion. These startups exemplify the significant transformation of the financial services landscape and open new avenues for the continent’s digital economy.
Agritech is a crucial sector for West Africa, where agriculture accounts for more than 30% of GDP. The region has historically low agricultural yields and is facing rapid population growth. Agricultural entrepreneurship can therefore provide innovative solutions to enhance efficiency, reduce costs, and strengthen the region’s food sovereignty. Companies like AgroCenta and Farmerline in Ghana exemplify this transformation. AgroCenta enhances the supply chain by directly connecting smallholder producers with buyers, thereby reducing post-harvest losses and increasing farmers’ income. Farmerline employs mobile technologies to provide crucial information, such as weather forecasts and practical advice, to optimize yields and improve productivity.
In this dynamic market, global and regional powers like the United States, China, France, and Morocco are forming strategic partnerships with local governments and private actors. These nations view such collaborations as a means to enhance their economic and geopolitical influence. Through these investments, they support local innovation while integrating African markets into global value chains.
The influence game of foreign powers
West African startups are at the heart of intense geopolitical competition, with each foreign actor adopting specific strategies to amplify its influence in critical sectors such as technology, infrastructure, and energy. This dynamic shapes local ecosystems and profoundly alters the African entrepreneurial landscape.
Morocco is establishing itself as a key player, leveraging its strategic geographic location and acting as a bridge between Europe and Africa. Through initiatives such as the Mohammed VI Fund for investment, the country is injecting millions of euros into the technology, health, and agriculture sectors. For instance, the Digital Morocco Fund has invested nearly 25 million euros in about twenty startups, positioning Morocco as a regional technology hub.
France, on the other hand, continues to leverage its historical ties with French-speaking Africa. Initiatives such as Digital Africa, supported by the French Development Agency (AFD), aim to bolster African startups across various fields like health and education. French companies like Orange and TotalEnergies are supporting young African businesses by significantly investing in digital infrastructure and promoting innovation in renewable energy.
The United States is primarily focusing on strategic technology and infrastructure sectors to enhance its influence in West Africa. American investments are often directed towards financial technologies (fintechs), supported by programs from USAID and by companies like Mastercard, which have invested in fintechs in African countries to enhance financial inclusion.
China is adopting a targeted approach by investing in the ecosystem surrounding startups rather than in them directly, which creates a concerning dependency. Chinese giants like ZTE and Huawei are developing telecommunications and 4G infrastructures in Ivory Coast. This situation imposes a foreign monopoly, rendering Yamoussoukro vulnerable to the rules dictated by Beijing.
Although less visible than other players on the economic stage, Russia is gradually increasing its involvement in West Africa, mainly in the field of renewable energies. A significant example is the project for the Sanankoroba solar power plant in Mali, in collaboration with the Russian company Nova Wind, a branch of Rosatom. This project, with a capacity of 200 megawatts, represents an investment of 120 billion CFA francs and will provide electricity to over 350,000 homes by 2025. This initiative underscores Russia’s growing interest in the regional ecosystem, offering an alternative to Western and Chinese models.
Future theater of economic war?
West African startups are evolving into strategic tools for foreign powers. Investments, whether from China, the United States, or Europe, present opportunities for growth and job creation, but they also unveil a concerning risk of economic dependence.
Without a strategic vision, states risk becoming pawns on the global stage. To maintain their sovereignty, it is crucial for regional decision-makers to view these startups as engines of innovation rather than merely as sources of capital. Otherwise, West Africa could find its economic future dictated by external interests, undermining any genuine prospects for lasting independence.
Oscar Lafay
To go further:
West African Startups: Innovation and Geopolitics
West Africa is becoming a hotbed of dynamic startups, playing an increasingly important role in the regional economy. These innovative companies are attracting the attention of foreign powers such as France, Morocco, the United States, China, and Russia, which seek to strengthen their influence in the region through strategic investments.
The Emergence of Startups in West Africa
West Africa is experiencing an entrepreneurial boom with startups transforming key sectors from fintech to agritech. Hubs such as Abidjan and Lagos are emerging, supporting innovation through incubators and accelerators like the MEST Africa Challenge, which attract international venture capital funds.
In financial technologies (fintech), companies like Flutterwave in Nigeria facilitate online payments, allowing businesses and individuals to transact seamlessly and securely. Jumia, although primarily known for its e-commerce activities, also integrates innovative payment solutions to strengthen the regional digital ecosystem. In Senegal, Wave revolutionizes mobile financial services by offering more accessible options, particularly for unbanked populations, thus contributing to financial inclusion. These startups perfectly illustrate the profound transformation of the financial services landscape and open up new perspectives for the continent’s digital economy.
Agritech is a strategic sector for West Africa, where agriculture represents more than 30% of GDP. The region has historically low agricultural yields and faces rapid population growth. Agricultural entrepreneurship is therefore capable of providing innovative solutions to improve efficiency, reduce costs, and strengthen the region’s food sovereignty. Companies like AgroCenta and Farmerline in Ghana illustrate this transformation. AgroCenta improves the supply chain by directly connecting smallholder producers with buyers, thereby reducing post-harvest losses and increasing farmers’ income. Farmerline uses mobile technologies to provide essential information, such as weather forecasts and practical advice, to optimize yields and improve productivity.
The Influence Game of Foreign Powers
West African start-ups find themselves at the heart of intense geopolitical competition, where each foreign actor adopts a specific strategy to increase its influence in key sectors such as technology, infrastructure, and energy. This dynamic shapes local ecosystems and profoundly transforms the African entrepreneurial landscape.
Morocco positions itself as a key player, capitalizing on its strategic geographic position and its role as a bridge between Europe and Africa. Through initiatives such as Fonds Mohammed VI for investment, the country is injecting millions of euros into the technology, health, and agriculture sectors. For example, the Digital Morocco Fund has invested nearly 25 million euros in around twenty startups, making Morocco a regional hub for technologies.
France, for its part, continues to rely on its historical links with French-speaking Africa. Initiatives such as Digital Africa, supported by the French Development Agency (AFD), aim to support African startups in various fields such as health and education. French companies such as Orange and TotalEnergies support young African businesses by investing heavily in digital infrastructure and promoting innovation in the field of renewable energy.
The United States is primarily focusing on strategic technology and infrastructure sectors to strengthen its influence in West Africa. American investments are often directed towards financial technologies (fintechs), supported by programs such as those of USAID and by companies like Mastercard, which invested in fintechs across African countries to improve financial inclusion.
China is adopting a targeted strategy by investing in the ecosystem surrounding startups, rather than in them directly, which creates a worrying dependency. Chinese giants ZTE and Huawei are developing all telecommunications and 4G infrastructures in Ivory Coast. This situation imposes a foreign monopoly, making Yamoussoukro vulnerable to the rules dictated by Beijing.
Although less visible than other players on the economic scene, Russia is gradually getting involved in West Africa, mainly in the field of renewable energies. A major example is the project of Sanankoroba solar power plant in Mali in collaboration with the Russian company Nova Wind, a branch of Rosatom. This project, with a capacity of 200 megawatts, represents an investment of 120 billion CFA francs and will provide electricity to more than 350,000 homes by 2025. This initiative underlines Russia’s growing interest in the regional ecosystem, while offering an alternative to Western and Chinese models.
Future Theater of Economic War?
West African startups are becoming strategic tools for foreign powers. Investments, whether from China, the United States, or Europe, offer prospects for growth and jobs but also reveal a worrying risk of economic dependence.
Without a strategic vision, states risk becoming pawns on the global stage. To preserve their sovereignty, it is essential that regional decision-makers see these startups as engines of innovation, and not merely as capital flows. Otherwise, West Africa could see its economic future dictated by external interests, compromising any possibility of lasting emancipation.
Oscar Lafay
To go further:
