NAIROBI INNOVATIVE ENTREPRENEURIAL ECOSYSTEM: “SILICON SAVANNAH” OF AFRICA
According to the reports from Startup Blink in 2020, Nairobi ecosystem has jumped to second place in Africa, being ranked 86 tiers higher than 2017.

Located in East Africa, Nairobi is both the capital and the largest city of Kenya. Although it has been once identified to be one of the areas that fell behind in modern technology with slow Internet connecting ability, Nairobi's technology market has seen an outstanding growth, from $16 million in 2002 to $1 billion in 2017. By now, "Silicon Savannah" has become the new nickname of Nairobi - home of more than 200 innovative startup enterprises.

Located in East Africa, Nairobi is both the capital and the largest city of Kenya. Although it has been once identified to be one of the areas that fell behind in modern technology with slow Internet connecting ability, Nairobi's technology market has seen an outstanding growth, from $16 million in 2002 to $1 billion in 2017. By now, "Silicon Savannah" has become the new nickname of Nairobi - home of more than 200 innovative startup enterprises.

What makes Nairobi's innovative entrepreneurial ecosystem proliferate is the combination of several factors namely the explosion of primitive-generation startups, considerable assistance from the government and a diverse supporting facility system.

 

Startup: The pioneering “trendsetter” changing entrepreneurial ecosystem significantly

One of the most important milestones in the process of building an innovative entrepreneurial ecosystem is M - PESA – a mobile payment application released in 2007. Before the M-PESA was launched, people in Nairobi mostly had not approached or used technology applications in daily life. Therefore, the success of M – PESA, which created a technology explosion in  East Africa, Afghanistan, India, has inspired many startup generations and brought a belief that it is totally possible to create a new, breakthrough product for users who have never accessed to technology.

After the successful story of M – PESA, the number of start-ups in Nairobi has dramatically increased as they understand that internal difficulties of Nairobi can create a favourable environment for them to develop their products. A series of solutions from startups for the clean water problem, urban infrastructure or cultivation has been produced and popularised in many countries in Africa.

Government: The silent hero behind the development of the ecosystem

If required to describe the role of government in Nairobi's entrepreneurial ecosystem, the two most repeated words will be weakness and corruption. For example, the registration process to establish a business in Nairobi takes 5 days more than other countries in the region (23 days versus 18 days). The expense to complete the application for enterprise registration is also 25% more than the usual one.

However, if you delve into the history of the ecosystem's formation, the role of the Nairobi government in guiding is undeniable. In 2007, the government launched The East African Maritime Systems Initiative (TEAMS) to connect the country to the world through the undersea cable system. Thanks to TEAMS, the average speed of Internet access in Nairobi is considered to be faster than that in the US and at a price that is one-fourth of the cost of the average one in African countries. As it can be seen, TEAMS has initiated the technological development and become a catalyst for the proliferation of technology startups in Nairobi.

By 2010, reforming the state as well as replacing a new government have generated high motivations for the Nairobi ecosystem. Realizing the potential of startups, the government has cooperated with the Nailab incubator to develop a $ 1.6 million technology program to help startup entrepreneurs access the capital and useful resources.

Startup supporting organizations: "The godfather" accompanying the talented generation

2010 not only was the year that marked a change in the government, but also the one when iHub - Africa's first innovative and technological hub – was released. As its name suggests, iHub has created an open space that connects, incubates and launches dozens of startups, which were followed by a series of technology hubs opened on universities’ campus and connected with international partners. The most typical ones are 4DLab and Fablab linking with the partnership of Nairobi University and Massachusetts Institute of Technology (MIT). Other examples are iBiz and iLab Africa which also cooperate with Strathmore University. Along with young human resources nurtured from technology hubs, Nairobi also has a large number of “middle-aged” talents forged through working processes at large corporations such as Microsoft, Google, Oracle, IBM or Huawei.