Peers around the world: Driving socio-economic growth in Africa through innovation

Join us for a conversation with Dr. McLean Sibanda, IASP’s former Africa Division president, and a leading intellectual property, innovation, and entrepreneurship expert in Africa. In this edition of "Peers Around the World", we explore his perspectives on the impact of public-private partnerships, the challenges faced by African startups, and his advice for new science parks. 

You’re on the Steering Committee for the IASP World Conference in Nairobi, the first in Africa since 2008. How important is this event for you, and what discussions do you hope it sparks?

The upcoming IASP World Conference in Africa, the first in over a decade, is highly significant due to the continent’s growing youth population and shift towards knowledge-based economies. Having collaborated with African science parks for nearly 15 years and witnessed Konza Technopolis’s development, I am very pleased it will host the 2024 conference. I hope the event addresses critical issues like borderless collaboration enabled by digital technologies, job creation for Africa’s youth, and improving the quality of life for aging populations. Discussions on ethical AI use, remote working, future industries, and decentralised supply chains are essential. Kenya, with its burgeoning tech startups, innovative multinationals, and government focus on innovation, is an ideal host. The conference should inspire African governments to recognise the benefits of innovation and commit to long-term investment in developing science parks as catalysts for socio-economic growth and transformation across the continent.

You've seen big changes in Africa's innovation landscape over the past two decades. What are the most critical shifts, and were there any missed opportunities?

Over the past two decades, Africa's innovation landscape has experienced significant shifts. The mobile industry's rise, driven initially by Nokia and Blackberry, and later by Microsoft and Android players, spurred digital innovations and the emergence of tech hubs. Notably, Kenya's M-PESA mobile payment platform revolutionised payments and enabled numerous businesses. The youthful population, facing limited job opportunities, has fuelled entrepreneurial activity, leading to a surge in tech startups and venture capital, particularly in South Africa, Egypt, Nigeria, Kenya, and Ghana. The African Union's call for increased R&D investment, targeting 1% of GDP, has pushed member states to prioritise research. Intellectual property awareness has grown, with WIPO partnering with regional bodies to enhance IP integration in business. Universities now focus on research that addresses local challenges and commercialises results. Additionally, urbanisation and a rising middle class have driven demand for innovative solutions and increased spending power, further propelling the innovation ecosystem.

As the former CEO of The Innovation Hub in South Africa, what key advice would you offer to new science parks and innovation areas in Africa looking to establish themselves and drive sustainable local development?

My advice for new science parks and innovation areas in Africa is to align their projects with national or regional strategic priorities and provide necessary support to act as catalysts for regional economic development. Focus on strengthening entrepreneurial and innovation initiatives to foster high-growth tech startups that will locate at the parks. While government support is crucial, the most successful parks operate with minimal government interference in management, ensuring alignment with national priorities and adequate resources. Tailor the science park to the specific developmental context of each country, while maintaining key success factors: a multi-skilled and effective management team, sufficient funding for programmes, strong integration within the innovation ecosystem, scalable infrastructure, and incentives to attract technology and innovative companies. 

The entrepreneurial challenges are similar globally, but the scale and environment differ. Core challenges include funding, market access, talent acquisition, policy issues, and support structures like incubators and accelerators. In Africa, government plays a critical role in the success of small companies, whereas, in developed regions, private sector and market forces are more influential. Africa faces a shortage of venture capital and angel investors, and opportunity entrepreneurship is underdeveloped due to an education system historically focused on job preparation rather than job creation. Additional challenges include policy uncertainties, a weak industrial base, markets dominated by large players, limited access to appropriate technologies, expensive internet connectivity, and underinvestment in innovation by governments, all impacting the growth and scalability of businesses in Africa.

As an expert on public-private partnerships (PPPs), how do you see these strategies impacting socio-economic development in Africa, and what role can they play in boosting the innovation ecosystem?

PPPs are essential for delivering infrastructure in countries with limited government budgets, allowing risk transfer to the private sector, which invests in exchange for value over a concession period. This approach can enhance service delivery. In innovation, PPPs can involve private investment in infrastructure like science parks, in return for rental income or commercialisation rights. They can also take the form of innovation or venture capital funds, where governments and private parties collaborate to fund innovative projects. PPPs in ICT or broadband infrastructure are particularly impactful, as they can drive socioeconomic development by enabling digital technologies, with the private sector investing and recouping through user fees. Despite their potential, the challenge in Africa is the lack of large private sector players with the necessary patient capital for such investments.

If you could meet young McLean on his graduation day, what advice would you give him? What question would you ask, and why?