SING is building an ecosystem from scratch in Gabon | TechCabal
In Gabon, a group of independent businesses joined forces to establish an incubation center for budding startups. Since its establishment in 2018, this center has successfully fostered the growth of more than 140 startup ventures.
Gabon, a country in central Africa known for its abundant oil reserves, has all the ingredients for a thriving tech industry. With a youthful population, the third highest gross national income in Africa (a measure of a country's wealth), and internet access for 72% of its citizens, Gabon is well-positioned for digital innovation. Additionally, a significant advantage is that the majority of Gabon's population (91%) resides in urban areas. However, despite these favorable conditions, the tech ecosystem in Gabon is still in its early stages and has yet to fully realize its capabilities.
In order to enhance the potential of the country's ecosystem, a group of businesses and private investors made a decision to establish and finance Société d'Incubation Numérique du Gabon (SING), a startup incubator, in 2018. Yannick Ebibie Nze, the CEO of SING, mentioned to TechCabal, "Despite the presence of all this infrastructure, why hasn't Gabon emerged as a leader in the digital economy and startups? This is the problem we want to solve." In its efforts to promote the digital transformation of Gabon, the incubator offers access to funding, resources, expertise, and workspace for individuals who are building startups in Gabon. The only requirement is that the founding team of companies must include a Gabonese resident.
As per Nze, the incubator is supported by the ministry of the economy in Gabon and funded by the World Bank. Its purpose is to provide training opportunities for up to 750 individuals in Gabon and organize an exhibition program for 50 startups. "We were given a five-year timeframe to accomplish this task, and we have successfully done so," Nze stated. "To date, we have showcased over 140 startups and managed to secure nearly $1 million in funding for these startups. It is important to note that these figures need to be considered within the context of Gabon, which has a relatively small market size of only 2.3 million individuals."
SING’s strategy highlights the determination of the French-speaking tech community to bridge the gap with their Anglophone counterparts. Stakeholders and officials have joined forces in nations such as Tunisia, Senegal, Côte d’Ivoire, and various others to expedite the growth of their individual innovation landscapes. In Tunisia, the administration financially supports a scheme that provides startup companies with financial aid. Each of these countries has established legislation specifically dedicated to fostering the growth of startups.
When it comes to developing the Gabonese ecosystem, SING has taken a broad approach, without focusing on a specific sector. If you visit their website's startup page, you will find a variety of startups, ranging from fintechs to logistics companies, healthtech ventures, cybersecurity firms, and more. According to Nze, the founder of SING, they only accept startups led by founders who possess expertise in the problem they aim to address and have already developed a viable business model. Once the startup completes the 3-4 month incubation process and has a functional prototype, SING will acquire shares in the company.
Building Solutions Worldwide, Locally
According to Nze, the startups that come to SING have a different and original way of solving the problems faced by Gabon. He emphasizes on the importance of their business models in addressing the issues not just in Gabon but also in the neighboring countries. Nze desires for these startups to grow and venture into other parts of Africa, just like the Tunisian startups that have found success by exporting their solutions. He hopes that Gabonese startups can also achieve the same level of success and expand their reach to multiple countries.
"It is crucial that the solution is original and not simply a replication of what has already been resolved. If someone else has already addressed the issues more effectively than us, our aim is to bring them to Gabon and establish a market. This is how we derive value. However, if a startup from Gabon has a distinctive and exclusive solution, we will definitely promote and support them." Nze clarified that this approach fosters a cooperative atmosphere rather than a competitive one.
How Does SING Secure Funds?
SING currently generates income through four different channels. Nze, in an interview with TechCabal, explained that while studying incubators in Africa, SING identified a significant issue with funding. To address this problem, they decided to create services that could generate revenue when government funding or support from external donors was not available. According to Nze, one of the ways SING generates income is by renting out office space, which contributes to about 20% of their total revenue. Additionally, SING earns money through advisory services and receives funding from the government and Gabonese companies, amounting to $1 million annually. They also receive financial support from external donors like the European Union.
SING's Startup Incubation Process
SING operates two incubation programs. The initial one is a training program that spans four weeks and is designed for entrepreneurs. This program is based on the acclaimed "Traction" methodology created by Gina Whitman. Whitman's book, also titled "Traction", was a tremendous success, selling over a million copies and receiving numerous accolades. Nze, speaking to TechCabal, explained that upon completion of the program, startups are given the opportunity to connect with potential clients, partners, and investors at a special Demo Day event.
In addition to the initial program, there is another program available for startups that lasts for three months and focuses on accelerating their growth. This acceleration period includes a test that evaluates the level of maturity of each startup. Nze explained that they recognized that the age of a startup may not necessarily indicate its maturity. To address this, they developed an internal tool that assesses the maturity of startups based on factors such as the capability of the founders, the execution of their business model, and the potential of the market they are targeting. Once the maturity level is determined, SING establishes a plan of action and appoints a startup manager to oversee its implementation for a period of three months.
Once startups successfully complete the accelerator program, they have the choice to enter into an agreement if they achieve a specific threshold of commercial prosperity or achieve a "functional product." This agreement grants them access to a subsequent stage of acceleration, which spans from 1 to 3 years. During this period, our main focus is on advancing their commercial growth. We strive to assist our startups in gaining more market presence and expanding their network of associates and customers. The ultimate objective is for them to achieve commercial triumph or secure funding through venture capital.
