There are many cities around the world that would like to reproduce Silicon Valley’s economic model. This is the case for Lagos (capital of Nigeria) which, with its demographic and economic strengths, even arouses the greed of Facebook and Google, who hope to invest in its entrepreneurs. Should we expect to see a balanced partnership or an attempt at cybercolonisation?
From Africa to the Yabacon Valley
All demographic studies agree that Africa will play a major role in the coming decades, for a variety of reasons. These include a young population (60% under 24), a growing population (doubling by 2050 to reach 2.2 billion inhabitants), a connected population (there are more smartphones in Africa than in Europe), a fast-growing technology sector (442 high-technology hubs, compared to 10 in 2010). Of the countries in Africa, Nigeria stands out with the amount of funds raised (US $100 million in 2016) and its capital, the most populated in Africa and with the highest population growth on the continent. Despite its various social problems – related to access to water, electricity, education, health, etc. – the country is seeing young start-ups flourish, develop and specialize, particularly in the fields of innovation and high-technology development. This is where Yaba was established, the first business group to emerge in Nigeria, located in Lagos, near Lagos University and the Yaba College of Technology, in which the best teachers in the country teach. It is an ideal location for a future business-university partnership.
Balanced or biased partnership?
Mark Zuckerberg, founder of Facebook, was not indifferent to the characteristics of Lagos when he visited in 2016 and decided a year later to set up his first technology hub in Africa. Although his stated ambitions are sincere – to encourage innovation and entrepreneurship among African youth, training more than 50,000 individuals to provide them with digital skills – Facebook has been accused by certain international non-governmental organizations of cybercolonisation. By offering free access to Facebook, will Nigerians not be hog-tied to Zuckerberg? Will they not be constrained to abandon any desire to develop their own platform? Nigerian economic spheres think that not only can Nigerians break free from the GAFAs but that they also have the skills and determination to create their own start-ups to better meet their specific needs, to adapt existing models to their own problems, or even to create their own global models. Nigerian start-up entrepreneurs are investing mainly in the fields of energy (Pay-as-you-Go solar energy model), finance (mobile payment with FinTech) and e-commerce (investments rose close to 75% between 2016 and 2017).
Between the “intrusion” of the GAFAs to Nigeria and the 100% Nigerian development of start-ups – both of which have limitations and constraints – a third way might be beneficial. That is a partnership between Nigeria and a foreign player, such as the African Digital Alliance, which lets each party invest, develop and exchange on an equal footing.