How Tunisia Is Driving Innovation Through Its Startup Ecosystem

Karim Koundi

According to Bloomberg, Tunisia is the most innovative country in Africa, occupying Africa’s first place for the quality of its entrepreneurial environment (Global Entrepreneurship Index) and having the best mobile internet connection on the continent (Speedtest Global Index) . 

The country’s ICT sector which represents 7.2% of its GDP has created over 100,000 jobs (with over 7,500 jobs created per year). It also has over 1,200 established ICT companies. Its universities produce around 10,000 engineers per year for a population of 11.6 million. France with a population of 67 million, trains about 32,000 engineers a year. 

Tunisia is also the first country to set up a framework to facilitate the launch and development of a Startup Act. 

Leading Africa’s Innovation?

According to Karim Koundi partner at Deloitte, Central Africa—and TMT Industry Leader Africa Francophone Advisory Services–Tunisia represents the best of the continent’s technological hub for many reasons. 

“Based on my own experience in the region, in other words, Francophone Africa,’’ he says, ‘‘I have noticed that Tunisia has many assets to play the role of an important hub for Africa’s startup ecosystem. First, Tunisia has the human human resources. Tunisia has a pool of technological and digital skills. Second, its geographical position not only allows it to be a hub, but also is a gateway to other continents for Africans. Third, Tunisia being a small country, has a market which is relatively small. The implication of this is that Tunisians are open to all other markets. This is a major asset.’’

The consequence of these factors is that if the Tunisian authorities commit the necessary resources for some considerable period of years Tunisia would perform wonders. 

“In terms of weakness,” Karim Koundi continues, “there is a lot to be done in terms of mobility and transport of products, services and people within the continent. Logistically, to move from Tunisia to the rest of the continent, you have to go through other continents or other countries, with flights of 24 hours … “

Koundi further notes that Tunisia’s national banking network does not support the country’s pan-African ambitions. 

“The Tunisian banking network must be more present on the continent,’’ he says

How Tunisian Startups Are Already Disrupting Industries 

More and more Tunisian startups are innovating and exporting local technological know-how to other continents such as Europe. 

For instance, startup Enova Robotics is pioneering the manufacture and export of mobile robots in Africa and the MENA region .

“I am originally a teacher — researcher of training,’’ says Anis Sahbeni, CEO and founder of Enova Robotics. ‘‘I taught at the Sorbonne, France since 2004. In 2014, I decided to change my cap and go back to Tunisia to create the first start-up in Africa and the Mena region, which manufactures its own brand of robot .’’ 

Enova Robotics’ robots are entirely made in Tunisia, from design to manufacturing, through Artificial Intelligence, with an integration rate, according to Sahbeni, that exceeds 70%.

Based in the area dedicated to the Tunisian Tech Innovation City in Sousse, the company, which has a subsidiary in Paris, is also specialized in the security sector. 

“Our goal is to go to the international market,’’ says Sahbeni. ‘‘We started with Europe. We work for Airbus, Michelin, Securitas … The goal is to gradually penetrate the security industry through this innovation. This is an ambition fostered by an ecosystem conducive to innovation.’’

Sahbeni says the Tunisian tech ecosystem is buzzing and encouraging more and more startups to take up innovation and the opportunities offered by globalisation. 

‘‘Through the Startup Act in particular, which lifts a series of barriers, particularly for export, and facilitates relations with the Tunisian government ,’’ he further notes, ‘‘the Tunisian ecosystem has become almost competitive with the European startup ecosystem. 

Sahbeni however concedes that there are still improvements to be made. 

“In Austria, for example, there are 250,000 startups, with an average employment rate of 2.5 per start-up. So 500,000 Austrian people work with startups. Today, it is in this sense that we have to go: innovation from Africa to the United States and elsewhere in the world, “he says. 

According to him, Africa as a market has more young people than any other continents, an advantage the continent could harness. 

“We initially targeted the European market, while waiting for America,’’ he says. ‘‘This is because the European market has the most mature market to absorb this type of technology. But Africa, with its growth, is a target market. By 2025, no later than 2030, Enova will be present on the African market. “

Video game, animation, 3D, virtual reality 

Anis Sahbeni is not the only one who is leading this disruption. Since the creation of Tunisia’s Startup Act, Tunisia is experiencing a 30% increase in startup creations. More and more of these startups are directly oriented towards the African market. 

Many young Tunisian entrepreneurs have increasingly shown their appetite for entrepreneurship in the area of Artificial Intelligence. 

“I think Tunisian expertise is multiple. We have this chance, for a small country, to have good universities and technological institutes, which cover the territory well and have a multisectoral approach, computer, mechatronics, robotics,’’ notes Dounia Ben Mohamed, a writer with Le Point, a magazine focused on the Francophone startup ecosystem. ‘‘But it is also clear that currently great efforts are made around the AI. The Tunisian Government has realized the importance of IA & Industry 4.0, and made it a priority. The AI industry can count on a high-performance startup ecosystem and its diaspora. Tunisia currently ranks 2nd in Africa in the Government AI Readiness Index (2019), which assesses the ability of governments to reap the benefits of AI.’’ 

‘‘There is a totally unknown sector that has emerged around the School 3D Netindo. It is an ecosystem linked to the creative digital cultural industry, that is to say the video game, the animation, the 3D , VR, special effects, which allows Tunisia to be with South Africa, Kenya and Nigeria in pole positions on this industry of the future. Tunisian expertise is beginning to be recognized in sub-Saharan Africa and is sought after,”he says 

Bizerte Smart City, an African laboratory

As the Tunisian technology hub continues to grow, both in terms of public and private initiatives, several smart city projects are also emerging. Notable among them are the Tunisian Smart City initiative and the association, Bizerte 2050, which was created in 2009 and operates for the development of the Bizerte region of Tunisia through innovative, inclusive and futuristic concepts. Benefiting from a partnership with the International Telecommunication Union, Bizerte Smart City is among the top four smart and sustainable cities in the world, alongside Dubai, Pully (Switzerland) and Singapore. The African Union has also included it in its 2063 agenda for the transformation of Africa. 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Tunisian Fashion Startup Dabchy Raises $300,000 seed For Its Peer-to-Peer Fashion Marketplace Expansion to Egypt

Tunisian startup Dabchy, a peer-to-peer (P2P) fashion marketplace has raised $300,000 in a seed round to further lead major expansion effort to Egypt and to build more on its team.

Here Is The Deal 

  • The investment was led by 500 Startups and joined by Flat6Labs, Saudi Venture Capital Company (SVC), Khobar-based Vision Ventures and Daal, and a group of angel investors.
  • Amani Mansouri, the co-founder and CEO of Dabchy said that they plan to use a part of these funds to expand to Egypt by the end of this year. 
  • The startup also plans to use the investment to accelerate its product development and expand its team.

“At Dabchy, we operate as a trusted third between buyers and sellers and have facilitated more than 100,000 transactions to-date. Our ambition is to become the number one fashion marketplace in the region and to empower a new generation of women to become microentrepreneurs by creating their own businesses online,” Amani Mansouri said in a statement. 

  • Dabchy was part of Flat6Labs Tunis’ first cohortand is currently taking part in the second class of Womentum, an accelerator program for female founders by Dubai-based Womena. 
  • According to the statement, it was also the first Tunisian and African startup to have joined European Fashion Tech Incubator last year.

Why The Investors Invested 

Hasan Haider, a partner with 500 Startups, commenting on the occasion, said:

 “We’re pleased to back the team behind Dabchy and make this our first investment into the Tunisian market. What the team have managed to achieve so far has been amazing, and we look forward to Dabchy continuing to lead the way for used fashion online in North Africa. There is a significant market need and demand for the product, and that has already been demonstrated by their traction so far.”

The investment is also the first for both Vision Ventures and Daal in a Tunisian startup.
Kais Al-Essa, Founding Partner and CEO of Vision Venture, said:

 “We’ve been eyeing the North African market beyond Egypt [for some time]. It is starting to boom and the population is young and tech-savvy. Dabchy has been able to prove that their product and business model is needed in the market with a limited investment. We expect that, under the leadership of talented Amani Mansouri, it will further dominate the market very soon.”

Read also: Tunisian Startups Can Now Benefit From World Bank $75m Fund For Startups 

What Dabchy Does 

Founded by Amani Mansouri, Ghazi Ketata and Oussama Mahjoub, Dabchy that had initially started as a Facebook Group now has a community of over 400,000 users in Tunisia, Morocco, and Algeria, who use its web and mobile-based platform to buy and sell new (unused lying in one’s wardrobe), self-made, pre-owned (used) clothes and accessories for women and kids. Dabchy’s Android app has been downloaded over 100,000 times.

In Tunisia where most of the Dabchy’s business comes from, it takes care of the entire buying and selling process including shipping and payments.
The startup claims to have doubled the catalog of items listed on its platform to 420,000 which (it says) makes it one of the largest online stores in Tunisia. The users, according to a statement by Dabchy, are adding more than 2,000 new items every day.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Outsiders Lead in Tunisia’s Elections

Preliminary results from the Tunisian general elections seem to favour outsiders in the lead as the first round of the presidential elections from the country’s 24 counties trickle in. The elections which hundreds of observers have declared as free and devoid of violence is coming at a time many Tunisians want to push forward with political reforms.

Prime Minister Youssef Chahed
Prime Minister Youssef Chahed

An election seen as a major test of the only democracy to emerge from the 2011 Arab spring has 26 candidates, many of whom are political heavy weights will be vying for presidency including  Prime Minister Youssef Chahed, Defence Minister Abdelkarim Zbidi, media mogul Nabil Karoui, and Abir Moussi, one of the two female candidates.

 According to the electoral authority, Kais Saied is leading with 19 percent of the votes cast. Also the jailed presidential candidate and media mogul, Nabil Karoui is said to be among the top contestants from the results so far released. Speaking on the preliminary results, Mr. Kais Said said that his party is waiting for the official results, “but from what has been an announced so far show that I am first and foremost. It is a huge responsibility to this country and this people”.

Similarly, supporters of Nabil Karoui who was imprisoned since last month say he has qualified for the second round of elections. His wife, Salwa Smaoui noted that “being in the top two of the presidential election, among 26 candidates, means that you were clear, insisting that “no to oppression, no to poverty and no to marginalization. You said yes to the rule of law”, she added. This was as the  Islamist party Ennahdha say they will wait till the results are officially released before commenting on the development.

“First, the only party responsible for announcing the official preliminary results is ISIE. We, at the head of Abdelfattah Mourou’s campaign, received the first results, whether from leaving the polling stations or from the results we receive as we go along, and we did not want to anticipate events,” said Samir Dilou, Abdelfattah Mourou’s campaign.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Tunisian Startups Can Now Benefit From World Bank $75m Fund For Startups 

Tunisian Startups

Tunisian startups now have a huge pool of funds to tap from to support their businesses. The World Bank Group has announced a new US$75 million fund to support the Tunisian government’s “Startup Tunisia” programme.

Tunisian Startups
 

A Look At The New Fund

The Startup Tunisia programme is led by the country’s Ministry of Communication Technologies and Digital Economy and aims to encourage the creation and growth of tech startups and digital small businesses.

The project is a seven-year Project which will provide a comprehensive package of financing, ecosystem and firm-level support, and project management and capacity building. It will run until 31 December 2026 and includes the provision of equity and quasi-equity investment in startups and small businesses.

“This project represents concrete support for a new generation of entrepreneurs in post-revolution Tunisia,” said Anouar Maarouf, Tunisia’s minister of communication technologies and digital economy. “It is a promise from the Tunisian government towards its young and innovative entrepreneurs to develop a stronger entrepreneurship ecosystem in which their ideas and businesses can thrive and grow.”

The project is led by World Bank senior financial specialist Fadwa Bennani and comprises three components, namely:

Component 1:

 Equity and Quasi-Equity Financing for Innovative Startups and SMEs (US$62 million).

 Under this component, the project will provide equity and quasi-equity financing through both Start-up Capital and Smart Capital. This component will finance the provision of the following equity investments:

(a) equity and quasi-equity financing through Startup Capital Fund (through “participating financial intermediaries” or PFIs, such as Tunisian banks) to eligible innovative startups; and;

(b) equity and quasi-equity financing through Smart Capital Fund to eligible innovative SMEs.

Component 2: 

Ecosystem and firm-level Support for Innovative Startups and SMEs (US$8 million): 

This component aims to strengthen the pipeline of innovative start-ups and SMEs, support the entrepreneurship ecosystem, as well as provide support for firm-level adoption of innovation and technology and investment readiness.

Component 3:

 Project Management and Capacity Building (US$5 million): 

This component will cover costs incurred by the CDC in its role as the implementing agency. Under this component, CDC will also provide needed support to Start-up Capital and Smart Capital to deliver activities under components 1 and 2 and additional outreach and capacity building activities.

Summary of Assessment of Environmental and Social Risks and Impacts 

The majority of the projects are expected to be Low Risk, specifically for investments in startups and SMEs at low ticket sizes (USD200,000 — USD500,000) and/or at low tenors (1–5 years). However, maybe a small number of investments at higher ticket sizes/tenors, as well as projects which could potentially have some negative environmental and social impacts, particularly in the SMEs.

Read Also: Mali Is Set To Have A Startup Act

Project Beneficiaries 

The final project beneficiaries will be innovative startups and SMEs.

The investment strategy and eligibility criteria, along with deal-flow activities, will ensure that funding is allocated to early-stage startups and high-growth technology-based SMEs.

In addition, particular focus will be made on increasing the participation of women-led startups and SMEs and on expanding project activities to lagging areas and the interior regions. 

Intermediate beneficiaries will include actors that provide risk capital and business development support to innovative startups and SMEs. These actors will include private financial intermediaries, such as PE/VC funds; entrepreneurship ecosystem intermediaries, such as incubators, accelerators, and other Business Development Service (BDS) providers; and academic and research institutions.

In May last year, Tunisia passed a startup act which includes 20 measures that aim to encourage entrepreneurship, make it easier to start a business, as well as access funding and international markets.

The US$75 million Tunisia Innovative Startups and SMEs project aims to catalyze the creation and growth of digital, innovative startups and SMEs, and boost economic and employment opportunities for Tunisian youth.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

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