Many tech companies in Africa experience difficulties in expanding from their homegrown markets due to poor capacity building and diminished capital sources.
- Challenges in upscaling have prompted the Two Rivers SEZ to collaborate with ONESPACE and Chanzo Capital to set up an innovation hub that would empower tech companies to rapidly expand across the continent.
- The Chanzo ONESPACE Startup and Scaleup Accelerator (COSSA) will integrate emerging tech companies with enterprises from countries to which they are interested in expanding.
- This not only enables them to adapt to the new markets, but also leverage on priceless opportunities that would promote instant growth.
“This Accelerator is vital for growth. What excites me about this initiative is not just the community, the capacity, and the capital, but also the offerings that Two Rivers SEZ offers, which includes tax reprieves. We can create 2,500 direct and dignified jobs in this economy due to this initiative,” said Co-founder of Checkups, Renee Ngamau.
The accelerator’s one-stop shop will be located at the Two Rivers SEZ, benefiting from the zone’s tax breaks and inexpensive executive office space, which will reduce costs for startups wishing to break into new markets. For emerging tech companies, every cent matters and significant cost reductions can go a long way in helping them optimize capital.
“The clear cut benefit for us is the aspect of enabling us to save costs for infrastructure and physical spaces and use that money to expand into other markets,” said startups’ innovator, Abdulaziz Omar.
Additionally, TRIFIC SEZ intends to consolidate its client base in the services sector, especially those enterprises that will attract significant FDI. Working with various startups will be an opportunity to achieve their goal of being one of Africa’s largest tech ecosystems.
Chanzo Capital has been instrumental in funding startup ventures in Kenya, Ivory Coast, Nigeria, Ghana, and South Africa. The Accelerator will rake in more startups from across the continent, broadening the company’s investment portfolio.
Market expansion for businesses not only guarantees a wider customer base, but also pulls in more investors and opportunities for strong mergers. Tech companies, especially, have been urged to think beyond local markets if they intend to become profitable.
“The challenge with many Kenyan businesses is thinking small. However, with support initiatives like COSSA, enterprises have a chance to think about exporting services that will bring in more money into our pockets and those of investors,” said Sam Wanjohi, Managing Partner at Thrive Capital.
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