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Venture studio Adanian Labs fuels startup growth in Africa

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In February 2020, as the world was shutting down, and as businesses downsized on account of the COVID pandemic, John Kamara was busy establishing another new startup, Adanian Labs, in Nairobi, Kenya’s capital. It had taken him two years to finally make this dream a reality, and nothing — not even the pandemic — was going to derail him.

And so, swimming against the tides, he set up the venture studio in partnership with co-founders Irene Kiwia and Bendon Murgor.

“People thought we were crazy,” Kamara, who doubles up as Adanian Labs’ CEO, told TechCrunch.

It may have been a tough period to build a business, but they sailed through with their mission.

“We stay the course with startups and make sure they become successful businesses — we de-risk them from failure,” said Kiwia.

How Adanian Labs started

The idea to build Adanian Labs was conceived in 2018, when Kamara was living and working in Cape Town, South Africa, where he witnessed the fast growth of the startup ecosystem, and how, in most countries, accelerators were the default launch pads. He thought the continent was ready for better support, beyond the mentorship and training that most accelerators offered.

“The startup ecosystem was growing but I could not fail to notice the problem of accelerators. You know, startups come out of accelerators and most of them do not have a real opportunity to go to the next level,” said Kamara.

“I thought, there has to be a way I can build something that could empower African founders and provide a better support infrastructure to startups…and in a way retrofit it to also build a business.”

Compelled to offer more value to startups, the co-founders launched Adanian Labs in Kenya, joining other players, like Nailab, in the space.

Adanian Labs targets idea-phase tech startups, offering them all-round support, including capital, advisory and operational backing, building them from the ground up.

It makes equity investment of up to $120,000 in these startups.

By the end of the one-year venture building program, the startups should have launched a product, onboarded and have repeat customers, have a defined revenue model and have raised or are in the process of closing seed funding.

“We help these startups build their teams, iterate where needed, until we find a market fit product,” said Kamara.

“I’m not delusional that every startup has to succeed, but from the moment they become part of the Adanian Labs it means that they have the potential to succeed,” he said.

Venture studio Adanian Labs is accelerating the growth of startups in Africa

A team is captured brainstorming. Adanian Labs plans to help build 300 startups over the next five years. Image Credits: Adanian Labs

Africa-wide Growth

In a period of two years, Adanian Labs has grown beyond Kenya, by establishing a presence in Tanzania, Zambia, South Africa and Nigeria — some of the biggest startup and tech hubs in Africa.

It is eyeing a pan-African presence by 2025 as it races to help build 300 companies over the next five years. In the interim, the lab is planning on establishing a presence in Democratic Republic of Congo (DRC), Senegal and Ivory Coast, and considering a franchise model to help it fast-track its growth.

Having an Africa-wide reach means that startups under Adanian Labs are able to scale in other markets easily as they tap the venture studio’s existing infrastructure as a launchpad.

“Our presence in multiple countries means that our startups can launch in a second country or even five countries without thinking too hard about it. This means we are focusing on innovations that are applicable across all markets. Not just one,” said Kiwia.

“The speed at which our startups are able to scale to these markets is like 10 times because we have a presence, have local partners and we understand the terrain and the legal aspect of setting up,” said Kiwia.

Joy Mwangi, co-founder of Ada animation, a startup in the first cohort, confirmed this to TechCrunch, saying the lab’s wide network has also enabled them to tap talent from other major animation markets in the continent like South Africa and Nigeria.

While Adanian Labs takes in idea-stage startups, they also help investor-ready startups, with scalable products, fundraise. The venture studio is planning on building a fund that will target startups in the growth stage.

“We have encountered startups that are not young for us to incubate, they are doing very well but would never get the attention of VCs because they lack that visibility that we are bringing to these startups. So, we have a short program to help them raise,” said Kamara.

The venture studio is currently incubating its second cohort of 20 startups drawn from the five countries. The group succeeds the first cohort of 12 startups, which included eCoBbaPaylend and AfyaRekod, all three co-founded by Adanian Labs founders.

The eCoBba is a platform co-founded by Kiwia to digitize savings groups, tapping their data to extend their range of financial services. Paylend, which was co-founded by Murgor, helps small and medium businesses access credit, while AfyaRekod, co-founded by Kamara, is a patient-driven health tech startup that ensures patient data mobility. All these startups have raised on average $2 million each in seed funding over the last few months.

AI and Blockchain

Beyond the venture studio, the lab is allied to the Artificial Intelligence Center for Excellence (AICE) and Africa Blockchain Center (ABC), headed by Natasha Ochiel and Jeff Mkungusi respectively, which are independent training and consulting businesses. The AICE has trained 100 data scientists and AI engineers, while the ABC, which is backed by Asia-based blockchain and consultancy business Next Chymia Consulting, has skilled a similar number of blockchain engineers so far.

Adanian Labs said such investments ensure that there are enough skilled persons to build the next-generation startups.

“We’ve lost engineers to bigger companies. And we feel that we have a bigger responsibility to keep training the techies to keep up with the demand. And so, at Adanian Labs, we are not only building startups, we are building the next generation of African tech experts,” said Murgor, also head of the labs tech team.

Tech skills gap in Africa has become a thorny issue as multinationals like Visa, Microsoft, Google and East Africa’s biggest telco Safaricom snap up the few talents available in the market, forcing entities like Adanian Labs to come up with ways of bridging the gap. Besides, as multinationals look to Africa for tech talent, it has become important to increase the digital and tech skills locally.

“Many companies in Africa and beyond outsource the AI and blockchain expertise from India. And we want to change that, and that explains why our capacity building component is so critical, because that’s a lot of lost value. Also, for us to build 300 companies, we need the capacity to be local. The world is also shifting towards Africa, and we are preparing young people on the continent to be able to work in the tech space of the future,” said Kiwia.

And they seem to be living up to their promises as Adanian partnered with U.S. tech multinational Nvidia last year to collaborate on projects and train 4,000 AI engineers (through AICE) in Africa over the next few years.

Adanian Labs also recently partnered with LBank, a cryptocurrency exchange, to build a community of crypto and blockchain developers in Africa. Through ABC they will also run a crypto accelerator to help build next generation startups in the continent.

The venture studio, which is raising its Series A funding, also counts itself as one of the first partners of Emurgo Africa, also one of its first investors. Emurgo Africa is an arm of Emurgo, the official commercial division of the Cardano blockchain that is pushing to have “Cardano’s blockchain adopted as the technological platform standard in Africa for socially impactful solutions.”

Looking ahead, Adanian Labs hopes to overcome the current phase, where the global flow of deals is on a slow-down, and rise to power more startups and conquer more markets across the continent.

Reiterating this, Kamara said, “We built and made it work with the little resources we had. We did not stop then, and we do not plan to stop or scale down now. Adanian Labs has turned into an ecosystem, a place where people come to find value.”

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Africa

The Cameroonian migrants stranded on a strange island

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How did more than 600 Cameroonians come to find themselves stranded on a Caribbean island that many of them had never heard of? Journalist Gemma Handy reports from St John’s in Antigua.

Daniel fights to hold back the tears as he recounts the day his two younger brothers were shot dead by militia during a trip to the market in his native Cameroon.

They are among more than 6,000 people to have been killed amid a bitter secessionist war that has been raging for six years in the Central African country.

Hundreds of thousands more have been forced from their homes since violence broke out in 2017 between security forces and Anglophone separatists who say they face discrimination in the majority French-speaking nation.

Daniel’s despair intensifies as he explains how he faces life imprisonment or death should he return – and pleads with the authorities not to send him home.

A group of women walk through the the Bogo IDP camp during a field visit by Filippo Grandi, the United Nations High Commissioner for Refugees (UNHCR)in Maroua on April 28, 2022.
Thousands of Cameroonians have been forced from their homes by the violence

He was hoping to reach the United States, which last June offered temporary protected status to Cameroonians already in the country, and where he had planned to flee under the radar.

And neither is Daniel, whose name has been changed to protect his identity, alone.

He is one of more than 600 desperate Cameroonian migrants to have instead found himself stranded on a tiny island of 94,000 people in the Eastern Caribbean via what appears to have been an unscrupulous people-smuggling operation.

Some forked out as much as $6,000 (£5,000) on charter flights marketed on social media by bogus tour companies pledging to organise immigration logistics as part of the package.

Most of those who have unwittingly ended up in Antigua – an island some of them said they had never heard of before – say they had only expected to stay for a few days before being taken to South America, from where they had planned to make their way north to the US.

But when the transport failed to materialise, they were stuck in Antigua with no money left to fund their onward journey.

Hundreds of Cameroonians have arrived in Antigua in recent months
Some of the migrants looked lost after their charter flight had dropped them off in Antigua

The fiasco erupted in the wake of attempts by the government of Antigua and Barbuda to establish a direct air route between the twin isle nation and Central Africa.

Three centuries after Antiguans’ ancestors were first forced onto slave ships from Africa to work on brutal British-owned sugar plantations on the island, many welcomed new linkages with the motherland. The first charter flight touched down – fittingly – on Independence Day on 1 November with a water cannon salute.

Within weeks, however, at least three more charters operated by another carrier mirroring its operations arrived in the country bearing throngs of Cameroonians escaping persecution.

According to official figures, 637 Central Africans remain on the island, with depleted finances due to the hefty fees forked out for the December and January flights.

Many are staying in ramshackle homes with sparse utilities at very low rents or cheap guesthouses, while they try to scrabble together funds to continue their journey.

A view of one of the typical Antiguan village in which the migrants have been trying to find accommodation
Many have tried to find cheaper accommodation in small villages like this one

It has created a complicated situation for Antigua and Barbuda which is more used to welcoming tourists than refugees. What most residents are united on is sympathy; to what extent the situation should impact the local landscape with its limited resources less so.

“The government needs to resolve this matter both for the poor people of Cameroon and for the poor people of Antigua,” aviation entrepreneur Makeda Mikael tells the BBC. “Opening up the mid-Atlantic as a migrant route could ruin tourism in the Caribbean.”

The government previously declared its intention to repatriate the refugees. It has since announced a U-turn on humanitarian grounds.

Information Minister Melford Nicholas said a skills audit will be carried out on the migrants to “determine the benefits” of allowing them to stay.

“As the economy continues to expand, we’re going to need additional skills,” he told a press conference. “We will give them accommodation and find a way to give them legal status here.”

He added that the government hoped islanders would “embrace and have an open heart” to the Africans.

Downtown t John's
The information minister plans to carry out a skills audit

Some have done just that, assisting what they see as their ancestral brethren with food, money and a place to stay.

But the government’s stance has not been welcomed by all. Opposition politicians staged a demonstration on 7 February demanding an inquiry into how the situation arose and a consultation on what should happen next.

In the meantime, incoming charter flights from Central Africa have been suspended. Governor General Sir Rodney Williams recently reiterated the government’s pledge to help their African “brothers and sisters”.

He said the country was “committed to protecting all residents from exploitation and harsh treatment”, adding that “no foreign national, except for criminals, should fear deportation”.

Antigua and Barbuda is not the only Caribbean country affected by an influx of Cameroonian migrants.

A few hundred miles away in Trinidad, five Cameroonians awaiting repatriation were granted an 11th-hour court injunction on 16 February preventing the move after intervention by the UN Refugee Agency, UNHCR.

Precisely how they reached Trinidad remains unclear but they shared similar stories of arbitrary arrests, torture and death threats in their homeland.

What started as peaceful protests in October 2016 by professionals protesting about discrimination against English-speaking Cameroonians escalated into a bloody conflict when government military forces cracked down.

There are now several armed separatist groups across Cameroon’s two Anglophone regions burning down entire villages and targeting any institution that represents the state, including schools and hospitals, Amnesty International researcher Fabien Offner says.

“It’s definitely one of the worst human rights situations we are covering in the African continent,” Mr Offner tells the BBC.

“Everyone is running for their lives,” Daniel concurs. “Those who are very poor don’t know where to go, they don’t have money to fly away. If some of these children can run to Antigua they should let them.”

Edith Oladele is an Antiguan who used to live in Cameroon.

“Cameroonians are generally a very peace-loving people. They’re just trying to make a better life for their children and families,” she says.

“When we go over there we are welcomed with open arms as the descendants of slaves who’ve come back home. I am praying these people will be able to stay here.”

Texas Guardian News
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Africa

Nigeria starts U20 AFCON on a sad note, loses to Senegal

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Flying Eagles of Nigeria, seven times winners, has unfortunately started the 2023 U20 Africa Cup of Nations currently ongoing in Egypt on a sad note as the club lost 1-0 to junior Teranga Lions of Senegal on Sunday.

Souleymane Faye got the only goal of the match in the 40th minute to take his country top of the group. The slim win shows that Senegal is now leading in Group A after the host country, Egypt, was forced to a goalless draw by Mozambique.

The young Pharaohs worked very hard to win the match but was not so lucky as it was frustrated by the defensive sagacity of Mozambique which thwarted all efforts of the hosts.

Meanwhile, Flying Eagles put a lot of pressure on Senegal after going behind but the Junior Teranga Lions showed resilience and withstood the threats posed by their opponents, leading to the 1-0 loss.

From all indications the result might have come to Nigerians as a bit of a surprise after the seven times winners of the CAF U20 Cup of Nations prepared adequately with friendly games both within and outside the country with wins in almost all the test games played.

However, Nigeria still has a chance to make amends when it takes on the host nation in a game both countries need to brighten their chances of progression.

Texas Guardian News
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Senior Israeli diplomat ejected from AU summit as row escalates

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A senior Israeli diplomat on Saturday was removed from the African Union’s annual summit in Ethiopia, as a dispute over Israel’s accreditation to the bloc escalated.

Images posted online showed AU security personnel confronting the diplomat during the opening ceremony of the summit, before she left the auditorium.

“Israel looks harshly upon the incident in which the deputy director for Africa, Ambassador Sharon Bar-Li, was removed from the African Union hall despite her status as an accredited observer with entrance badges,” the foreign ministry said.

Ebba Kalondo, the spokesperson for the African Union’s commission chairman, said the diplomat had been removed because she was not the duly accredited Israeli ambassador to Ethiopia, the official who was expected.

But Israel blamed the incident on South Africa and Algeria, two key nations in the 55-country bloc, saying they were holding the AU hostage and were driven by “hate”.

Israel’s Foreign Ministry said the charge d’affaires at South Africa’s embassy would be summoned for a reprimand.

“The attempt to cancel Israel’s observer status has no basis in the organization’s laws,” the ministry said.

South Africa rejected the claim, saying Israel’s application for observer status at the AU has not been decided upon by the bloc.

“Until the AU takes a decision on whether to grant Israel observer status, you cannot have the country sitting and observing,” Clayson Monyela, head of public diplomacy in South Africa’s department of international relations, told Reuters.

“So, it’s not about South Africa or Algeria, it’s an issue of principle.”

South Africa’s ruling party has historically been a strong supporter of the Palestinian cause.

The Algerian delegation at the summit was not immediately available for a comment.

Texas Guardian News
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