Proposed Solutions
“It always seems impossible, until it is done.” - Nelson Mandela
The time to focus on improving scaling capabilities is now
This report constitutes our reflections on the key challenges facing scaling ventures in Africa today. A scan of the references will attest to the breadth and depth of our research scope. The factors included in this report are those that we felt are the most important at this evolutionary juncture, especially from a systems innovation perspective. Because systems innovation approaches allow us to work collectively to co-create and co-evolve an Afrocentric scaling ecosystem that serves all stakeholders, now and into the future.
We believe this is a highly pertinent time to ask whether we are placing resources, time, investment and effort in the wrong places and in mistaken ways. And whether we should imagine and devise better approaches towards achieving the wider socio-economic objectives that underpin our collective vision of African prosperity.
We strongly contend that public and private innovation needs to be at the epicentre of strategy. Both are capable of solving for the future, especially if combined and applied in functional ways. In uncertain and volatile contexts, where the path to a desired outcome is not known up front, a linear plan-and-execute approach is unlikely to work. This is especially the case with transformative change in complex systems. It is clear to us that more can be done to bring together knowledge, data sets, peer networks, and tracking of innovative approaches. This doesn’t happen enough - but it should.
Pathways forward, from words to actions
The proposals set forward in this report are a framework for systemic change and transformation. Episodic actions will only ever result in short and ephemeral change. Pockets of small investment lead to low impacts that are hard to sustain. Long-term systemic commitments will reap lasting rewards and a brighter future for Africans, but only if properly designed, managed, and measured.
We have developed a set of 20 market and systems innovation solutions that we intend to design and roadmap for the next phase of our work.
Solution 1:
Ensure that scale-ups are duly represented in pan-African and national research, innovation and industrial strategies.
Map and audit scale-up sectoral data, infrastructure (physical and digital) and projects/ activities within national frameworks of the larger, more established markets, and at the pan-African level.
Determine current gaps and potential future opportunities within these frameworks that can support scaling ventures.
Improve signposting so that scale-ups can access national resources and opportunities with reference guides.
In a participatory and ecosystem-led manner, develop a pan-African strategy, and national operational roadmaps for execution in the larger market territories.
Solution 2:
Develop a robust engagement platform for dynamic private sector engagement in pan-African and national socio-economic frameworks.
Assess and consolidate ecosystem efforts in order to align them and improve synergy, eliminate duplication and reduce resource wastage.
Evaluate the feasibility of industry-led virtual catapult networks (specialist, networked, innovation centres), focused on key verticals, such as fintech, agri, climate, energy, health, and education.
Solution 3:
Develop a holistic pan-African open innovation strategy that includes both commercial and public value lenses.
Review, evaluate and build on existing open innovation strategic efforts at pan-African, regional and/or national levels.
Include effective implementation partnerships across scaling ventures, research agencies, universities, hubs, network partners and governments.
Solution 4:
Design international ‘soft-landing’ exchange programmes for African scaling ventures in key developed and emerging market cities to facilitate sourcing of commercial opportunities.
Programme outcomes need to be measurable, commercial, and sustainable.
Cross-cultural exchanges are designed for reciprocity (not one-way displacement).
Recalibrate existing activities based on mutual partnership respect and sustained, long-term value creation.
Solution 5:
Conduct a feasibility assessment for a pan-African innovation leadership academy to improve public strategic innovation capacity.
Programme approaches include both design and systems innovation.
Ensure public sector innovation competencies are suitably upweighted and knowledge shared widely across relevant institutions.
Solution 6:
Lead a bottom-up initiative to design a collective ecosystem strategic plan for scaling ventures.
Develop a range of roadmapped and prioritised options, reflecting horizon 1 to 3 planning, for further investment and resourcing.
Identify a range of appropriate funding and implementation partners.
Solution 7:
Develop a pan-African mentorship strategy for scaling ventures.
Conduct diagnostics, and review and evaluate existing efforts.
Consider international and industry best practice, adapted for the African context.
Include peer-to-peer mentorship.
Design a small pilot to test and tweak the strategy.
Identify appropriate funding and implementation partners.
Solution 8:
Develop a MVP for an affordable online scale-up academy where transitioning startups can access scaling-related knowledge, training and mentorship.
Solution 9:
Develop a broad portfolio of scale-up case studies for broad dissemination amongst scaling ecosystem stakeholders.
Case studies to illustrate the range of pathways to scale, and lessons learnt on the ground.
In accordance with innovation principles, includes mechanics for black-box failure intelligence.
These should be made widely accessible and available, in different formats (and languages) for multiple audiences.
Shared widely across the ecosystem, ensuring appropriate involvement from innovation hubs, higher education and academic institutions.
Solution 10:
Conduct a feasibility assessment of African-appropriate tools, approaches and strategies that improve stakeholder coordination and data collaboration as regards scaling African ventures.
Lay out the groundwork, establish partnerships (including global experts), and evaluate a range of potential mission-based “challenge” options (i.e. what, where, how, who).
Develop a pilot for specific sectors to “test and learn” from proposed data collaboration approaches, with grant funding made available to early adopters.
Build out a longer-term collective vision of what could be achieved if there is open and reliable access to scaling data, insights and knowledge.
Solution 11:
Conduct a series of needs assessments to better understand the scale-up demand and supply gaps as regards data and knowledge.
Consider technology and pedagogy supply principles, instead of assuming certain supply expectations, with a view to improving scale-ups’ knowledge absorption.
Solution 12:
Design and develop the framework for an “Evidence Public Dialogue Series” for commercial scaling ventures.
Conduct a feasibility assessment, consulting broadly with key stakeholders including academic institutions and ecosystem support actors.
In addition to the overarching framework for the series, design in detail a sample intervention for illustrative purposes.
Solution 13:
Lead a participatory, bottom-up initiative to establish a pan-African ScaleUp Institute, or similar publicly-funded but privately-managed scale-up coalition or representative body.
Functions include developing a range of knowledge-sharing and syndication pathway opportunities for mutual gain, applying systems-led principles (openness, fair distribution, transparency, inclusivity etc).
Includes an advocacy function to ensure that scale-ups’ interests are promoted at national, regional and pan-African policy levels.
Performs an independent, objective ‘clearing house’ function.
Includes a non-traditional commercial scaling community of practice model which offers tangible value to a range of ecosystem actors and which reflects synergistic open collaboration principles.
Provide practical guidance on scaling diagnostics, metrics, enhanced reporting, management dashboards etc. to create greater awareness, improve attitudes, and change behaviours around best management practices.
Provides guidance to investors on ‘Capital Plus’ approaches to improve non-capital support to scale-ups.
Collates, shares and deploys intelligence and insights to help improve the skills and capability of leadership teams.
Potentially includes an African scale-up scenario planning and futures programme for key verticals (to be funded by new public/ private partnerships).
Solution 14:
Assess the feasibility of a disruptive and novel syndication network model for ecosystem collaboration
Encourages multiplier and network effects.
Our model has been designed for collective, cross-discipline, integrated, networked intelligence and expertise and presents a tiered range of transformation activities and opportunities.
Further information can be made available upon request.
Solution 15:
Research and conduct an analysis of corporate responsibility commitments and trends of African scale-ups.
Evaluate how (or if) they are advancing specific sustainability and impact agendas, and acting as good corporate citizens.
This would lead to a phase 2, a strategic plan, to deploy and diffuse knowledge and expertise to facilitate alignment to sustainable development goals.
Solution 16:
Develop a programme of support to promote and normalise mental health as a strategic business priority.
Provide practical and supportive guidance and tools for leadership teams to identify, then manage, mental health and wellbeing challenges on a consistent basis.
Pilot the guidance and tools in 5 diverse African scale-ups, and incorporate lessons learnt.
Identify potential funders, implementation partners and ecosystem leaders to operationalise the programme widely.
Solution 17:
Working with ecosystem partners, develop a pan-African talent strategy and roadmap.
In a consultative and collaborative manner, identify and evaluate the wide range of national and regional initiatives to address issues across the talent spectrum, from formal education to reskilling of existing employees. Highlight those that have high potential, and can be scaled.
Propose short-, medium- and long-term interventions at each level of the ecosystem, from pan-African to individual venture. Identify potential funding partners, such as international governments and investors, to fund wider implementation of the strategy by ecosystem partners.
Solution 18:
With buy-in from the top 10-20 African VC investors, create a subscription-based scale-up matching platform MVP.
Structure as a privately-funded and -operated business support startup.
Alternatively, this could be tasked for the proposed (non-profit) African ScaleUp Institute (see solution 13), with income earned used to fund the institute’s ongoing ecosystem support work.
Solution 19:
Design a platform on which investors can access and interrogate reliable scale-up ecosystem data and information to reduce information asymmetries.
Our view is that the platform should be market-led (and -designed), linked to a scaling database, with government(s) only providing financial support, rather than operational execution.
The proposed ScaleUp Institute is a potential home for this intervention.
Such an intervention should be funded by Government(s) or multilateral organisations, like AfDB.
As a parallel process, work also with impact investors to design a syndicated investment platform for investing in scale-ups in high impact verticals, such as climate or agritech.
Solution 20:
Design an innovation approach to reduce the gender financing gap across the African context.
Diagnose, roadmap and operationalise practical recommendations to be actioned by the investor community.
Construct a representative task and finish force to champion the initiative.