Rise of the East: Innovate, Disrupt, Thrive: The Abia Startup Story
A startup ecosystem refers to the network of individuals, organizations, and resources that support the growth and development of startups in a particular region or industry. This ecosystem provides the necessary environment for startups to flourish, innovate, and scale.
Key Components of a Startup Ecosystem are entrepreneurs and founders, mentors and coaches, investors (venture capitalists, angels, crowdfunding), incubators and accelerators, coworking spaces, universities and research institutions, government agencies and policies. Others are corporate partnerships, networking events and conferences, talent pool (developers, designers, marketers)
What’s the characteristics of a Thriving Startup Ecosystem? They are collaboration and Knowledge Sharing, Access to Funding and Resources, Talent Attraction and Retention, Regulatory Support, Innovation and Risk-Taking Culture, Diversity and Inclusivity, and Global Connectivity. These are the benefits of a Strong Startup Ecosystem. They are Job Creation, Economic Growth, Innovation and R&D, Increased Competitiveness, Improved Quality of Life, Attracting Foreign Investment, Fostering Entrepreneurial Spirit. Having listed the characteristics of successful startup ecosystems and their socio-economic benefits, let’s mention some examples of Successful Startup Ecosystems, they are Silicon Valley (USA), New York City (USA), London (UK), Berlin (Germany), Tel Aviv (Israel), Singapore, Bangalore (India).
Nigeria’s startup ecosystem is thriving, with the country ranking as one of the top startup ecosystems in Western Africa. The sector has seen significant growth, with Nigerian startups raising $94.9 million in funding in 2018, the highest in Africa that year. This growth is attributed to the country’s large population, access to technology, and a growing number of startup support organizations.
The key strengths of Nigeria’s Start-ups are:
- Large and Growing Market: Nigeria’s population provides a significant market for startups to tap into.
- Access to Technology: The widespread use of technology has enabled startups to reach a broader audience.
- Supportive Ecosystem: Various organizations, such as tech hubs, incubators, and accelerators, provide resources and mentorship to entrepreneurs.
Inspite of these glowing attributes, there are Challenges: such as
- Business Climate: Nigerian startups face challenges due to the country’s business climate, including regulatory hurdles and infrastructure issues.
- Funding: Despite growth in funding, Nigerian startups still face challenges in accessing capital, particularly for locally-owned businesses.
My readers would have been wondering: Are there true Nigerian brands in this space?
Notable Nigerian Startups are:
- Andela: A tech startup that connects African developers with global companies.
- Jumia: An e-commerce platform that has expanded across Africa.
- Flutterwave: A fintech startup providing payment solutions. Others are
- CcHub: A tech hub providing resources and mentorship to entrepreneurs.
- She Leads Africa: A women-led, women-focused community providing access to resources and training.
- Impact Hub Lagos: A coworking space and community for entrepreneurs.
The Southeast region of Nigeria, startup ecosystem is growing rapidly, with hubs in cities like:
- Aba (Abia State)
- Enugu (Enugu State)
- Owerri (Imo State)
- Awka (Anambra State)
- Umuahia (Abia State)
Notable Startups in Southeast Nigeria are:
- Innoson Motors (Nnewi, Anambra) – Nigeria’s first indigenous automobile manufacturer.
- ABC Transport (Aba, Abia) – A leading transportation company.
- Ekefinn Ltd (Aba, Abia) – A fully integrated agro-industrial company. Others are:
- Aba Hackathon (Aba, Abia) – A tech event promoting innovation.
- Enugu Startup Week (Enugu) – A conference connecting entrepreneurs.
- Owerri Tech Hub (Owerri, Imo) – A coworking space and incubator.
- Anambra Innovation Hub (Awka, Anambra) – A hub supporting entrepreneurship.
Overall, Southeast’s startup ecosystem is vibrant and full of potential, with opportunities for growth and innovation.
Abia State is rapidly emerging as a major hub for startups and technological innovation in Nigeria! Its strategic location, strong manufacturing legacy, and youthful, entrepreneurial workforce make it an ideal environment for new ventures to grow and thrive.
In his desire to place Abia State on the global map, Dr Alex Chioma Otti is intentionally driving Abia’s Startup Ecosystem in these ways:
- Strategic Geographic Location: During a presentation to a select group of investors in his country home, he reminded them that Abia State is centrally located in the southeastern region, providing easy access to markets like Port Harcourt and Onitsha.
- Strong Manufacturing Legacy: Aba, Dr Otti buttressed, is the state’s commercial capital, is known for its craftsmanship and manufacturing capabilities, earning it the nickname “Japan of Africa”.
- Youthful, Entrepreneurial Workforce: To drive home his assertation, His Excellency was quick to cite statistics that proved that 70% of Aba’s population is under 30, bringing modern skills, energy, and tech adoption to the startup scene.
- Government Support: With the lean resources available for all-sector-development in the state, Dr Otti insisted that Abia State government is actively promoting investment and upgrading infrastructure to support the startup ecosystem.
His Excellency during one of the high point of the meeting, pressed home some Growth Areas such as:
- Agritech and Food Processing: He insisted that Abia State is a major crop producer, and startups can apply technology to maximize yields and reduce waste.
- Logistics and Supply Chain: In his calm usual style, he sampled Aba’s manufacturing and trading economy creates opportunities for logistics and supply chain innovation.
- Consumer-Facing Startups: “The large local market and established retail networks make Aba an ideal hub for consumer-focused startups”, he concluded.
One may wonder, why is Dr Alex Chioma Otti, OFR is so infectiously passionate about Abia Startup ecosystem? Here are some possible reasons:
1. Locally Sponsored Startups (Indigenous Startups)
These startups are founded and funded by indigenous Abians or Nigerians. Examples include:
- Nwa Boys: Informal apprenticeship programs where young Igbo entrepreneurs learn trades like manufacturing, trading, and craftsmanship.
- South east-Based Startups: Companies like Innoson Motors, A.B.C. Transport, and Ekefinn Ltd., which have grown from local roots to become prominent players in their industries.
2. Federal/State Government Sponsored Startups
These startups receive funding, mentorship, or resources from government initiatives:
- Youth Entrepreneurship Development Program (YEDP): A CBN initiative providing loans and training for young entrepreneurs.
- National Information Technology Development Agency (NITDA): Supports tech startups through funding, training, and incubation.
- Abia State Entrepreneurship Development Program: Provides training, funding, and mentorship for Abia-based startups.
3. Foreign Sponsored Startups
These startups receive funding, expertise, or resources from international organizations or investors:
- Tony Elumelu Foundation Entrepreneurship Program: Provides funding, mentorship, and training for African entrepreneurs.
- World Bank’s Innovation and Entrepreneurship Program: Supports innovative startups in Nigeria.
- Google’s Impact Challenge: Funds and mentors innovative startups addressing social challenges.
In Abia State, examples of foreign-sponsored startups include:
- Aba Hackathon: A Google-sponsored event promoting tech innovation and entrepreneurship.
- Startup Nigeria: A program funded by the World Bank and Oxfam, supporting innovative startups in Abia and other Nigerian states.
To further develop Abia’s startup ecosystem, Dr Otti pressed his audience further by making a case for the following:
- Infrastructure Development: He explained that his strategic thinking of improving transportation routes is to encourage startups as well.
- Mentorship Programs: The governor explained that he’s nursing a policy to pair experienced entrepreneurs with startups.
- Funding Opportunities: Dr Otti revealed that he prefers private sector initiatives for providing access to loans, grants, and equity investments.
- Policy Support: He announced that he will be streamlining regulations and offering incentives for startups.
In my humble opinion as an independent observer of the governor’s activities, meetings, initiatives and policy thrusts, supporting these startup categories, Abia State can foster innovation, job creation, and economic growth.
Dr Chukwuemeka Ifegwu Eke writes from the University of Abuja Nigeria.
