United States venture capital firms have invested heavily in African tech startups with over 60 percent of venture capital funding in Nigeria.
Will Stevens, U.S. Consul General, highlighted this in his keynote address on Thursday, February 29, 2024 at the Omniverse Summit in Lagos.
In his keynote themed: ‘The Role of Technology in Fostering International Collaboration in an Interconnected World’, re-echoed President Biden’s message that the United States wants to be working together with the nations of the African continent in equal partnership, especially to combat the challenges that face the entire world as “…no nation can do it alone”.
“As Secretary Blinken said it so eloquently: Africa shaped our past, it’s shaping our present, and it will define our future.
“And, I might add, no nation is having a bigger impact on the evolving digital transformation than Nigeria. As Africa’s largest economy, largest democracy and number one destination for venture capital – Nigeria is driving innovation and creative solutions to the challenges that vex Nigerians, Africans and people across the world. These innovative creators are reinforcing my deeply held belief that African solutions and African voices are critical and central to resolving the problems of the 21st century and beyond.
“The world is changing at an unprecedented pace, fueled by the relentless innovation from an increasingly interconnected world. In the past decade, global internet traffic has grown by 700%, and mobile phone users have surpassed 6.6 billion. This increased connectivity creates boundless potential for cross-border collaboration – creating a global village where ideas can spark across oceans, and innovations can blossom through collective efforts.
“Imagine a world where researchers from across continents collaborate on groundbreaking medical discoveries, where engineers work together to tackle climate change, and where entrepreneurs share ideas and resources to build a more sustainable future.
“This is a present that we are already beginning to experience and a future that I am certain will mean a better world for our children and our children’s children. Together, we are using the latest technological innovations to address some of the world’s most pressing challenges in the areas of climate change, education, healthcare, agriculture, and other vital areas of development and economic growth.
“However, building these bridges requires more than just technological prowess. We must overcome challenges like cultural and linguistic barriers, unequal access to resources, and cybersecurity concerns. These challenges are not insurmountable.
“By embracing inclusivity, bringing capital to markets that need infrastructure investment, and developing robust cybersecurity measures, we can pave the way for fruitful international partnerships.
“Together, I see that some of these challenges are already being addressed. U.S. venture capital firms have invested heavily in African tech startups with over 60 and 40 percent of venture capital funding in Nigeria and Africa respectively coming from the United States. Up to 60 percent of African startups are incorporated in the United States – this figure is 80 percent when considering Nigeria alone.
Statistics show that, in 2021, African startups raised $4.8 billion, this translates to an average of over $1 million every 2 hours.
Despite the global downturn in VC funding, the United States still accounted for about 40 percent of the $3.4 billion raised by African startups last year.
Still on Stevens’ keynote at the Omniverse Summit, he said, “Four months ago, President Biden issued a landmark Executive Order on Safe, Secure and Trustworthy Development and Use of AI that emphasized collaboration with countries all over the world to develop and use artificial intelligence in a responsible manner.
“Before that, in 2022, the Biden-Harris Administration developed the Digital Transformation with Africa (DTA) initiative that aims to build partnerships with African countries to expand digital access, increase U.S.-Africa commercial relations, support increased digital literacy, and strengthen digital enabling environments across the continent. This initiative emphasizes “with” – Digital Transformation “with” Africa, not “for” Africa; as we believe that Africa on its own brings tremendous value to the global table.
He said that Nigeria remains Africa’s largest economy and is the United States’ second-largest trading partner in Africa with two-way trade exceeding $10.6 billion in 2022.
The United States is proud to be one of the largest foreign investors in Nigeria with FDI totaling $5.6 billion in 2022.
There are over 80 U.S. companies operating in Nigeria, in manufacturing, fast-moving consumer goods, pharmaceuticals, technology, etc.
These companies collectively pay billions of naira in taxes, create thousands of direct and indirect jobs, and directly support various socioeconomic programs that improve the lives of Nigerians.
Will Stevens congratulated Obi Asika, Olamiposi Ekuma and the entire Omniverse team for oranising the Omniverse Summit.
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