In a groundbreaking collaboration, Safaricom, M-PESA Africa, and Sumitomo Corporation, a Fortune 500 global trading and business investment giant, have unveiled the Spark Accelerator program. This initiative is designed to propel early-stage startups into growth and scalability, offering a unique blend of training, mentorship, funding, and market support.

The three-month accelerator program represents a strategic move by Safaricom, signaling its commitment to being a purpose-led technology company. CEO Peter Ndegwa emphasized that the revamped program goes beyond mere capital injection, aiming to address challenges that often hinder the growth of early-stage startups.

Focusing on Fintech and Content startups in its inaugural phase, the Spark Accelerator adopts an ecosystem-based approach. Leveraging expertise in market dynamics and emerging technology, a team of experts will guide and accelerate the selected startups, laying the foundation for continuous innovation.

Sumitomo Corporation, with its extensive business experience, joins the initiative to foster innovative businesses and contribute to the expansion of the startup ecosystem. Katsuya Kashiki, General Manager of the Smart Communications Platform Business Division, expressed the corporation’s commitment to supporting African economic development and human resource growth through the program.

Participating startups stand to benefit significantly, gaining access to technical support for developing mini-apps embedded into Safaricom’s M-PESA Super App. This opportunity opens doors to over 4 million customers using the app, as M-PESA already connects over 60 million customers and 5 million businesses across eight countries.

Sitoyo Lopokoiyit, Managing Director of M-PESA Africa, highlighted the potential for startups to create innovations that connect customers and businesses on M-PESA to more opportunities. The accelerator program aims to provide funding, technical expertise, resources, and mentorship to propel the next generation of tech startups in Africa.

Moreover, M-PESA Africa will offer expertise, market research, and insights, along with capacity support for startups seeking to expand beyond their borders. This support will extend beyond the initial three-month program, enabling startups to tap into the vast network of over 60 million customers and 5 million businesses across M-PESA’s eight markets.

The culmination of the accelerator program will be an investor demo day, providing startups with the opportunity to pitch for investment from Safaricom and partner venture capital firms. The implementation of the Spark Accelerator will be in collaboration with iHUB, a leading force in Kenya’s startup ecosystem and a subsidiary of Africa’s premier innovation hub, Co-Creation Hub (CcHUB).

Ojoma Ochai, Managing Director of CcHUB, expressed excitement about spearheading this collaborative effort. The Spark Accelerator, she noted, serves as a launchpad for forward-thinking founders to shape and scale their enterprises. Ochai encouraged startups with dynamic and impactful solutions to join the journey, emphasizing the collective effort to catalyze innovation and empower digital ecosystems.

The program has garnered support from additional partners, including Vodacom and AWS, further solidifying its potential to drive meaningful impact in the African tech startup landscape.

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.

In a strategic move to foster innovation and address the funding gap in Kenya’s burgeoning startup ecosystem, Safaricom, Kenya’s largest telecommunications carrier, has announced the launch of Spark Accelerator. This initiative, a collaboration between Safaricom, Sumitomo Corporation, and Vodafone, is specifically designed to accelerate startups in the fintech field, leveraging the strengths of the three companies to create a new digital economic zone in Africa.

Objectives of Spark Accelerator:

• Identifying and Supporting Startups: With over 1,000 startups emerging annually in Kenya, particularly in fintech, Spark Accelerator aims to discover and support promising ventures. The accelerator program focuses on creating a conducive environment for the growth of innovative fintech solutions that can address the challenges in Africa’s financial services landscape.

• Collaboration for Innovation: The program seeks to combine Safaricom’s extensive telecommunications network, Sumitomo Corporation’s business experience, and Vodafone’s global expertise to collaboratively create innovative businesses. The focus areas include e-commerce, insurance, education, and entertainment, with the goal of expanding digital financial services across Africa.

• Building a Digital Economic Zone: Through Spark Accelerator, the three companies envision the establishment of a new digital economic zone in Africa. The initiative aims to contribute to the overall development of the African economy, human resource development, and improving the quality of life for people.

Payment Situation in Africa:

The initiative recognizes the challenges in Africa’s financial landscape, including limited banking networks and low payment convenience. Through the use of fintech, particularly mobile money services like M-PESA, the program aims to provide access to financial services, including installment sales, and contribute to the economic growth of the region.

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Strategic Partnerships and Collaborations:

• Sumitomo Corporation and Vodafone Collaboration: The collaboration between Sumitomo Corporation and Vodafone, initiated in November 2020, has expanded into Africa, focusing on telecommunications and fintech. Notably, Safaricom Ethiopia and investments in companies like DABCO and M-KOPA highlight the commitment to advancing digital and financial solutions.

• Continued Collaboration: Spark Accelerator marks the third collaboration with Vodafone, emphasizing ongoing efforts to leverage business bases and knowledge in Europe and Africa. The goal is to address social issues and contribute to local community and economic development.

Venture Capital Firms and Safaricom’s Strategic Moves:

• Formation of Venture Capital Firms: Safaricom’s recent announcement of two venture capital firms signals a shift from its existing Spark Fund grant. The firms, focusing on both seed-stage and growth-stage startups, aim to address the funding shortage that has led to startup closures in Kenya.

• Financial Support for Startups: The incorporation of a company limited by guarantee for seed-stage startups and a private limited company for growth-stage startups demonstrates Safaricom’s commitment to supporting technology entrepreneurs. The proposed subsidiaries aim to generate financial returns, with profits being reinvested into Safaricom PLC.

Spark Accelerator, backed by Safaricom, Sumitomo Corporation, and Vodafone, presents a comprehensive approach to foster innovation in Africa’s fintech sector. The initiative not only aims to support startups but also envisions the creation of a new digital economic zone, contributing to the economic development and improved quality of life in the region. Additionally, Safaricom’s strategic moves with the formation of venture capital firms reflect a commitment to addressing the funding gap and nurturing the growth of technology startups in Kenya’s dynamic ecosystem.

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