The Code Management Group (CMG), an investment firm in London, is opening offices in Nigeria and Ghana as part of efforts to bridge the knowledge and funding gap for African start-ups.
The group seeks to stir up the entrepreneurship ecosystem in the sub region to improve the fortunes of startups and the continent at large.
The CMG on March 5, 2022, will begin its inaugural four-month incubator in partnership with the China Europe International Business School in Accra, Ghana and then Lagos, Nigeria.
The incubator will focus on building start-ups into investment ready companies in efforts to generate global business opportunities for start-ups and international investors.
According to “The Better Africa” report, the failure rate for startups on the African continent from 2010 to 2018 was at 54.20 per cent on average, with Ghana 73.91 per cent, and Nigeria, 61.05 per cent with some of the highest failure rates.
The report acknowledged that there were multiple contributing factors to why businesses failed and recommended the need for more support to improve the fortunes of startups.
A 2021 white paper released by the African Development Bank recommended that “entrepreneurship must be at the heart of efforts to transform Africa’s economic prospects.”
According to the United Nations, by 2050, 25 per cent of the world’s population would be in Africa; a proof that local businesses would be a key part of the continent’s growth trajectory.
These reports underpinned CMG’s interest in establishing such an office and programmes to support entrepreneurial growth.
The CMG has also initiated a speakers-series event, which brings businesses in the diaspora to engage with their counterparts in Ghana and Nigeria.
Mr William Adoasi, CEO of Luxury Watch Brand, Vitae London, at one of the recent engagements organised by the group, urged African entrepreneurs to consider collaboration and intention while building their businesses.
He said start-ups needed to work together instead of working solo to better position themselves for business opportunities on the continent.
He encouraged African entrepreneurs to go to market to understand the environment, the customers and their desires.
“This process generates valuable data that can foster true business development,” he stressed.
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