Technology Innovation Hubs

Galvanising and Supporting Tech Communities

Dr Loren Treisman-Executive Indigo Trust

• The Indigo Trust is a UK based grant making foundation that funds technology-driven projects to bring about social change in Africa

• The Trust focuses mainly on innovation, transparency and citizen empowerment

• We also support innovative tech-driven projects which support development outcomes in any social sector including the health, education, human rights and agricultural spheres

• We believe that if people have the ability to access, share and create information, then they are empowered to make positive changes in their own lives and communities

So Why Do We Support Tech Hubs?

• The best solutions to Africa's challenges will be devised by those affected by them

• Hubs galvanise the tech community, provide high speed internet, host events & provide training & mentorship to aspiring entrepreneurs

• Hubs have a catalytic effect on the number and quality of successful projects and products which can be developed in-country

Ideas aren’t realised in isolation….

• Collaborate, share, partner up• Learn from others• Obtain support, mentorship and training• Access state of the art facilities• Get exposure• Bring together techies and social activists/civil society• Stimulate both economic growth and social change• Attract other investors and supporters• Brand association

Events and Training

Hubs are springing up across the continent

East Africa

West Africa

Southern Africa

And some are cropping up in unexpected places….

Can Tech Hubs Achieve Financial Sustainability?

• This Sector is still in its infancy and we have to be patient

• But some business models are emerging……..

iHub-Nairobi, Kenya

• iHub research• Memberships fees• Renting out the space• Corporate sponsorship and events• Consultancy• Jobs Board-biggest in East Africa• Government and private sector contracts• User experience lab

The Role of Foundations in Supporting Hubs

• Identifying potential groups-setting up new hubs• Establishing partnerships between techies and

activists• Core support for early stage hubs• Making connections • Providing consultancy & support• Leveraging support from others• Supporting collaboration between hubs• Supporting a new model for development-more sustainable, private-public-charity

The Role of Foundations in Supporting Projects Coming Out of Hubs

• Providing small, high risk grants to not-for-profit & social enterprises which contribute towards social change at the early stages

• Enable entrepreneurs to pilot new ideas, with room for trial & error

• Invest in ‘public goods and services’, a category of projects that have traditionally not attracted private investment due to market failure

• Some projects will achieve financial sustainability or make a profit, others need on-going support

Some Examples……

Factors We Believe Contribute Towards Successful Projects

• Run by passionate individuals• Use available and appropriate technology• Has a clear theory of change• Understand local needs and listen closely to beneficiaries• Takes into account tech capabilities, literacy and language• Project run by technologists and civil society• Two-way interactivity• Sustainable financial model or low operating costs• Takes into account marketing and training needs• Ideally replicable and/or scalable • Interoperable • Transparent and willing to communicate

Important Considerations• The tech hub space is very new-impact will take time

• Take into account local context

• Achieving financial sustainability remains a challenge

• Access to finance for projects remains a challenge

• Local capacity remains low in some countries-need for further training, incubation and other business support

• Data costs to end users of Apps are often prohibitively high

• Mobile operators and ISP providers could assist in reducing these costs if effective business models are ID’d

• More focus needs to be placed on the wider regulatory and policy environment in order to create a welcoming ecosystem

• There is a need for more hubs to spring up both in new African countries and within the same country

Thanks for ListeningAny Questions?

Dr Loren Treisman

http://indigotrust.wordpress.com/Twitter: @indigotrustLoren.treisman@sfct.org.uk