Rwanda : a Digital Hub ?
In the heart of East Africa, Rwanda is positioning itself as a key player in the technology sector. With ambitious initiatives such as Kigali Innovation City, Norrsken, and Rwanda Finance Limited, the country aims to become a center of technological excellence in Africa. But it's not alone in pursuing this ambition...
In mid-June, Norrsken House, « the largest tech hub in Africa », located in downtown Kigali, inaugurated its new buildings. An expansion that reflects the interest and success of the concept.
With the hosting of 1,200 entrepreneurs, Norrsken House Kigali has indeed delivered on its promises. The establishment is managed by the Swedish foundation Norrsken, a global non-profit organization founded in 2016, whose mission is to help entrepreneurs solve the world’s challenges. Including in Africa. And it’s Kigali that it chose to set up its first hub on the continent.
Built during the pandemic, on the site of the former Belgian school, it started its activities at the end of 2021. The establishment is built around different workspaces, both open and closed. Its architecture blends wood, metals, and plants. A diversity reflecting its occupants: entrepreneurs as well as investors and structures intended to support them. In total, this house brings together a community of 1,200 members. In less than a year, the first African hub of the Norrsken foundation has thus delivered on its promises: to host over a thousand members.
Rwanda has proven to be an excellent testing ground and we hope to make it a gateway to expand our activities to other regions across Africa
« At the launch of Norrsken in 2016, the goal was to highlight the networks and capital that contribute to economic growth and end inequalities in various sectors, » recalled Niklas Adalberth, founder of Norrsken and, moreover, the originator of the Swedish fintech unicorn, Klarna, during the official inauguration of the site. Convinced that « Africa has a role to play in the world’s major challenges, » he continues: « In Kigali, where we are right now, there is a conducive environment because we have access to good coffee, good connectivity, and over a thousand entrepreneurs with whom you can exchange, interact, while also having the opportunity to access capital, either through the accelerators we have here, in the house, or directly through our foundation. »
In this regard, the foundation has invested 205 million euros in African companies through the Norrsken22 technology growth fund. The latter has reached a significant milestone by exceeding the initial target of 200 million dollars for Africa, at the close of its first exercise. Norrsken22 has already invested in five promising companies: the South African challenger bank TymeBank, the inter-enterprise digital commerce platform Sabi, the identity verification solution Smile ID, and the auto financing platform Autochek. « Rwanda has proven to be an excellent testing ground and we hope to make it a gateway to expand our activities to other regions across Africa. »
In Rwanda, we offer a very prospective political and regulatory environment, oriented towards the future, especially for startups, investors, and innovators
These ambitions align with those of Rwanda. The country seeks to position itself as the hub of technological innovation in Africa. This involves welcoming investments, unwavering stability, and institutions such as Rwanda Finance Limited, aimed at Africa.
« Africa has over 700 active tech centers, Norrsken House Kigali is one of them, » recalls Paula Ingabire, Rwandan Minister of ICT and Innovation. « In Rwanda, we offer a very prospective political and regulatory environment, oriented towards the future, especially for startups, investors, and innovators. » And she assures: « In Rwanda, we are committed, not to picking winners, but to producing winners. » With Norrsken House Kigali as the factory for producing these future African champions.
Technology at the heart of its development model
Indeed, the country, often dubbed the « Switzerland of Africa » for its mountainous landscape or even « Singapore of Africa » for its rapid economic development, also emerges as a major player in the technology field on the African continent. With a strong commitment to placing technology at the heart of its development model, the Rwandan government has launched a series of initiatives aimed at making the country a regional hub of innovation. At the center of this strategy is the flagship project: Kigali Innovation City.
Announced in 2019, this ambitious project aims to create a complete technological ecosystem, bringing together technology companies, research institutions, startup incubators, and training centers, all in an environment conducive to innovation and collaboration. With an area of 70 hectares and an investment of nearly 2 billion dollars, Kigali Innovation City aims to attract leading technology companies to Kigali and position Rwanda as a center of technological excellence in Africa.
The site hosts, among others, Carnegie Mellon University Africa. In 2011, at the invitation of the Government of Rwanda (GoR), Carnegie Mellon and the GoR signed an agreement to establish a new CMU site in Kigali, Rwanda. This ambitious and innovative partnership was designed to address the critical shortage of high-quality engineering talent needed to harness Africa’s enormous potential, home to the world’s fastest-growing workforce. CMU-Africa, located at Kigali Innovation City, is a regional center of excellence in ICT that trains a diverse composition of future leaders from across Africa, who will use their skills and practical knowledge to advance technological innovation and develop businesses.
In the field of finance, Rwanda Finance Limited has launched a venture capital fund dedicated to fintech, aimed at supporting innovative startups in the financial sector. This fund, endowed with 100 million dollars, aims to encourage innovation in financial services and strengthen Rwanda’s role as a regional financial center. These initiatives have already begun to bear fruit, with a significant increase in the number of technology startups and innovative companies established in Kigali. More and more local and international entrepreneurs are turning to Rwanda to develop their ideas and projects, attracted by an environment conducive to innovation, strong government support, and modern infrastructure.
Technical skills, financing, and inclusiveness: the challenges of the « Rwandan model »
However, challenges remain, particularly in terms of training and developing technical skills, access to financing for startups in the growth phase, and creating an inclusive ecosystem that benefits all Rwandans. To address these challenges, the Rwandan government is working closely with the private sector, academic institutions, and civil society to develop training programs, startup incubators, and innovation-friendly public policies. Because while the Rwandan technology ecosystem is thriving, with real, enormous potential to become a regional hub of innovation, it is still behind other ecosystems, more mature _ if one refers to the required triptych namely the levels of available skills, the presence of technological companies, and the ability to mobilize financing, particularly venture capital _ Accra, Cairo, Cape Town, Johannesburg, Lagos, Nairobi, and Tunis.
In the meantime, with the digitization of all administrative services through Irembo, the implementation of Rwanda Smart Classrooms, and the establishment of the C4IR, Rwanda is well positioned to establish itself as a hub of innovation and a destination of choice for global tech talent. One of the peculiarities of Norrsken House is that it hosts entrepreneurs from Uganda, Kenya, and even South Africa, evidence of its attractiveness that extends far beyond the borders of the « small country. »
