The African continent is of interest to numerous European scaleups due to its dynamism and rapid acceptance of innovative technologies. The Chapter54 accelerator, developed by KfW and Partech, aims to assist them in structuring their African expansion and achieving success. Be Energy and Kawarizmi make up the first group of French companies to benefit from the accelerator.
“The idea was originated by the German development bank, KfW, on behalf of the German Federal Ministry of Economic Cooperation and Growth, which thinks that entrepreneurship is one of the keys to the development of the African continent,” explains Chapter54’s Managing Director, Vincent Previ.
Vincent Previ is Chapter54’s Managing Director. Credits: Chapter54
The bank went to Partech, a fund with great expertise in European technology and good knowledge of the continent (in 2018, Partech founded Partech Africa), to develop this framework.
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Thus, the financial institution becomes a sponsor of the programme established and developed by Partech Shaker, the innovation programmes department of Partech.
Chapter54 seeks to assist businesses in identifying their own development plan in order to successfully promote their product in one or more African nations.
Vincent Previ confirms that the COVID-19 pandemic has hastened the growth of some models in Africa, particularly in B2C payment and e-commerce. This reinforces the palpable, five-year-old interest in European scaleups for the African continent.
“Fifteen percent of the top European IT firms are already active in Africa,” recalls Chapter54’s general manager. “Consider Bolt, whose mobility solutions are available in 10 African countries, or Babylon Health, which has established a presence in Rwanda. We also find that B2B players are positioned, either directly or through resellers.”
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“Africa seems to offer European entrepreneurs more opportunities than ever before. However, we must not forget that the African continent is comprised of over fifty countries with diverse characteristics. Sometimes, business cultures, market potential, demands, and rules vary greatly. This can soon make expanding a firm in one or more of these countries challenging. Typically, startups have their own approach for establishing themselves in a new country, comprised of important phases. It is highly probable that some processes do not function in Africa. Nonetheless, an organised strategy is required,” Vincent Preevi says.
Enters Chapter54
According to Preevi, Chapter54’s purpose is to assist firms plan their expansion in Africa by selecting the best means to do so (merger, acquisition, partnership, opening an office) and providing the appropriate resources to the appropriate projects (recruitment, training, etc.).
In contrast to other acceleration frameworks, Partech Shaker has opted to rely on a vast network of seasoned mentors.
“We have chosen to rely primarily on operational personnel who are already familiar with the African continent,” explains Vincent Previ. “They are primarily C-level or ex-C-level employees or former employees of IT players like Fawry, Jumia, Copia Global, Wasoko, as well as significant international corporations already operating in Africa like Uber, Glovo, and Galileo Global Education.”
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To their knowledge are added the networks of the various African hubs with which Chapter54 has partnered — such as AfricaWorks in Cape Town, Flat6Labs in Cairo and Tunis, Nairobi Garage in Kenya, or the Westerwelle Startup House in Kigali.
“Companies participating in the programme also have access to a catalogue of advantages to facilitate their entry into the market, whether it is Afriwise, an interactive platform for the African legal sector, Asoko Insights, or the Wester,” he says.
Previ states that Chapter54 has chosen an agnostic perspective that enables it to take an interest in and support startups in a wide range of industries, including energy, payments, and advertising.
He acknowledges in order to choose a participant, the company must already have had expertise with worldwide expansion in at least two or three countries.
The general manager also states that the focus is on the number of employees rather than the revenue.
“The Chapter54 programme is quite demanding, so participants must be prepared to handle the amount of work that participation in the programme implies,” Vincent Previ says.
SumUp, CellCube, CoachHub, and two French firms, Be Energy — battery, oil, and motor regeneration — and Kawarizmi — digital advertising and programmatic media buying — are part of the inaugural cohort.
The second cohort will be selected in the fourth quarter of 2022, with support beginning in early 2023.
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Chapter54 intends to have more applications in the health and education sectors in particular.
Chapter54 European startups Africa Chapter54 European startups Africa
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh