Last year, a group of venture capitalists partnered to form the Venture Capital for Africa (VC4Africa). The group has recently announced their move to back a laboratory in Somaliland, effectively shifting the old tech entrepreneur markets from the typical areas of Nairobi, Accra, Lagos and Johannesburg. “We see ventures coming online in Congo, Gabon, Democratic Republic of Congo, Mali, Southern Sudan and Somaliland; it shows there is an entrepreneurial appetite on every corner of the continent,” said Ben White, VC4Africa founder. The group is supporting the first Somaliland software incubation and testing labs. VC$Africa helps the labs get in touch with other venture capitalists which could be interested in providing support. Entrepreneurs register their apps and businesses with VC4Africa in order to receive feedback and potential funding from venture capitalists within the organisation. Notable venture capitalists working with VC4Africa include the eVa Fund, Acumen Fund, Ashoka Change Makers, East Africa Capital Fund and In Return Capital. “The region is quite stable, energy and Internet provision are above average and you have a young and graduated workforce which is hungry to prove their skills,” said Saskia Reus, head of international partnerships at VC4Africa. The lab in Boorama, Somaliland, is being formed in partnership with ExtendedBits, a local software company. VC4Africa has already connected the company with RLabs in South Africa, to allow developers in the two companies to exchange ideas and improve on software and testing. “There is tech talent in Somaliland and graduates are quick to learn principles of software testing,” said Hassan Giire, founder of ExtendedBits. “Somaliland has one of the cheapest telecom rates and the infrastructure is good.” According to Giire, the company is ready to deliver high-quality testing as well as to improve their on-the-job training in the hopes of acquiring bigger outsourcing contracts in Europe. BM
