Rwanda’s tech ecosystem shows growth potential in Q1 2024 

In the midst of the challenging global environment for startups, TechGyant can authoritatively analyze that Rwanda’s tech ecosystem demonstrated resilience in the first quarter of the year. While the overall funding landscape for the continent’s tech sector saw a decline in Q1 2024, there were still pockets of growth and exciting developments that positioned the country as a rising innovation hub in Africa.

TechGyant presents the notable events and trends of Q1 2024 and looks into the major, leading moves that defined the Rwandan tech ecosystem during this recently concluded quarter.

2023: A Year of Growth in Investor Participation

To recall, according to a report by Partech, in 2023, Rwanda saw the highest growth in investor participation among the top 10 busiest startup ecosystems in Africa. In contrast, Africa as a whole experienced a 50% decline in active investors during the same year. Rwanda, on the other hand, saw a 113% increase in investor participation, underscoring the country’s growing appeal as an investment destination.

Electric Mobility Accelerates in Rwanda: BasiGo and OX Delivers at the forefront.

• Rwanda emerged as a hub for electric mobility with the expansion of companies like BasiGo and OX Delivers.
• BasiGo, an electric bus startup, launched operations in Rwanda in partnership with local bus operators Kigali Bus Service, Royal Express, and Volcano Express.
• OX Delivers received a $1.5 million grant from the Energy Catalyst program to roll out its all-electric OX4 trucks in Rwanda, further boosting the country’s transition towards sustainable transportation.
• These developments align with Rwanda’s broader push for decarbonization, with the government offering incentives like capping electricity tariffs for charging stations and exempting EVs, spare parts, and charging equipment from import and excise duties.
• In a related development, BasiGo raised $3 million in equity funding from CFAO Group to expand its electric bus production in Kenya and Rwanda.

Nurturing the Next Generation: Rwanda Invests in Innovation and STEM Education

• The National Robotics Program, a collaboration between the Ministry of Education and GIZ Rwanda, was launched to integrate robotics and innovation into the country’s education system.
• The second edition of the First Lego League championship in Rwanda celebrated the achievements of young innovators, showcasing the country’s strong focus on nurturing STEM skills and a culture of creativity.
• The CMU Africa Innovation Summit, hosted by Carnegie Mellon University Africa, brought together academia, industry, and government to empower the next generation of African entrepreneurs and problem-solvers.

Kigali Named Headquarters of Timbuktoo, a $1 Billion Pan-African Innovation Initiative

• Rwanda made a significant mark on the continental innovation landscape by being selected as the official headquarters for the Timbuktoo Africa Innovation Foundation, a pan-African initiative to support the startup ecosystem.
• Timbuktoo aims to unlock a $1 billion investment powerhouse and create 10 million jobs, further cementing Rwanda’s position as a hub for innovation and entrepreneurship in Africa.
• The announcement was made during a dedicated session at the 2024 World Economic Forum in Davos, Switzerland. Rwanda’s President Paul Kagame pledged an immediate contribution of $3 million to start the Timbuktoo Africa Innovation Fund.

Ecosystem Expansion: Tech Giants Flock to Rwanda as Bboxx and MPost Relocate to Kigali

• Bboxx, the off-grid solar energy provider, announced the relocation of its global headquarters from London to Kigali, underscoring Rwanda’s growing appeal as a destination for technology companies.
• As part of the move, Bboxx committed to investing $100 million in Rwanda and training 500 Rwandans over the next five years, showcasing the country’s potential to attract and nurture tech talent.
• Recalling other notable relocations like the Kenyan digital addressing startup MPost, which moved its office to Kigali’s Norrsken entrepreneurship hub in late 2023.

Founders Friday Series Showcases Rwanda’s Thriving Ecosystem

• The monthly Founders Friday event series hosted by the Rwanda ICT Chamber, Ministry of ICT and Innovation, and Norrsken House Kigali continued to shine a spotlight on different aspects of the Rwandan tech landscape.
• In Q1 2024, the 5th edition focused on “Sexual Reproductive Health Innovations in Rwanda” featured a panel of experts sharing insights on the latest innovations in the $40 billion global sexual and reproductive healthcare market.
• Four local startups JoCare, Luna, Kosomotive, and Dope Initiatives took the stage for pitch presentations, showcasing their solutions in this space.
• The events provide a platform for entrepreneurs, investors, and ecosystem stakeholders to connect, share insights, and explore emerging opportunities.

A look at Africa’s funding landscape in Q1 2024

• According to The Big Deal, African startups raised a total of $370 million+ across 120+ deals in Q1 2024, a 61% decline from the same period in 2023.
• However, most deals (50%) were in the $1-$50 million range, indicating investors’ focus on quality over quantity.
• Fintech startups still accounted for the most deals, though their share declined to 1 in 5.
• Agtech and health/biotech startups accounted for 12% and 11% of deals, respectively.
• The funding was primarily driven by a single $100 million+ mega-deal into Nigerian mobility fintech Moove, highlighting the continued appetite for high-potential startups.
• Interestingly, local African impact investors like Catalyst Fund (9 deals), Digital Africa (7 deals), and GSMA Innovation Fund (6 deals) were among the most active, underscoring the ecosystem’s growing maturity.
• Nigeria was the top-funded market in Q1 2024, driven mainly by the Moove mega-deal, followed by Kenya and South Africa. Ethiopia also emerged as one of the top 5 funded markets.

Despite the continent-wide challenges, Rwanda’s tech ecosystem demonstrated its resilience and growth potential in Q1 2024. The country’s focus on electric mobility, talent development, and state-sponsored innovation, coupled with establishing the Timbuktoo headquarters, positions Rwanda as a rising star in the African tech ecosystem.

As the ecosystem continues to evolve in 2024, expert sources in TechGyant’s network believe the stage is set for further growth and impact in the subsequent quarters of the year.