How African Startups are Leveraging AI for Growth
On the African continent, a new wave of innovation is emerging as startups use AI to solve regional problems, spur long-term growth, and pave the way for others to follow. As of this year, there were reportedly over 2,400 companies in the continent that specialize in artificial intelligence (AI). The industry is growing quickly.
The International Data Corporation (IDC) projects that spending on AI innovation will grow at the fastest rate in the world in Africa and the Middle East, reaching $3 billion this year and over $6 billion by 2026. Driven by both domestic and global forces, this innovation manifests in indigenous AI-based startups throughout the continent. Furthermore, cooperative projects like Google’s first AI research center, which opened in Ghana in 2018, further highlight this trend.
Agriculture
Agrix Tech is a startup company based in Yaoundé, the capital city of Cameroon, that is dedicated to helping small-scale farmers combat pests and plant diseases. Agriculture is faced with a significant challenge from these threats, which are made worse by the ongoing climate crisis. The creative solution from Agrix Tech is a smartphone app that enables farmers to scan the leaves of their plants. The app uses AI to detect any illnesses and recommend the best course of action.
Agrix Tech is unique in that it is committed to inclusivity. For remote farmers, the fact that the app’s features are accessible regardless of location or internet connectivity is essential. According to founder and CEO Adamou Nchange Kouotou, “the app can work offline as the AI model is embedded into the mobile app,” This makes it possible for farmers to use it even without an internet connection. There are numerous regional African languages available for the app. Agrix Tech is expanding its crop and disease detection capabilities by making its AI library available to other developers.
There is another innovative company using AI in Nairobi, Kenya. SunCulture has come a long way in providing farmers with precision irrigation solutions since its founding in 2012.
The company began by offering pay-as-you-go financing and solar-powered irrigation. Since then, it has expanded from Kenya to include Ethiopia, Uganda, Zambia, and the Ivory Coast.
Rainfall provides irrigation for about 90% of smallholding farms in the continent. The timing of planting, fertilizing, and harvesting is therefore heavily reliant on weather forecasts, which are frequently too general or erroneous. SunCulture’s AgOptimized, a revolutionary combination of technologies, tackles this problem squarely. The app collects meteorological and soil data locally, combines it with satellite and meteorological data, and applies artificial intelligence to analyze it along with historical trends.
Language
An AI startup located in Johannesburg further south hopes to live up to its audacious tagline, “AI for Africans, By Africans, Solving African Problems.” Vulavula is an artificial intelligence (AI) language model-as-a-service developed by Lelapa.
The continent of Africa is characterized by its linguistic diversity, which is best exemplified in South Africa, which is home to 12 official languages. However, the digital realm frequently fails to meet this richness’s needs. In this regard, Vulavula fills a distinct void in the field of AI applications.
According to Jade Abbott, Director of Lelapa AI, “We address the challenges of language diversity through very careful data creation and curation with the help of sociolinguists who understand the nuances of dialects.” “What we envision for Vulavula is to be utilized in government, healthcare, and education
With the use of artificial intelligence (AI), Vulavula offers real-time translation and transcription services that let companies easily speak with their clients in their native tongue.
Health
An AI startup based in Nigeria called Ubenwa is making major progress in the field of neonatal health. Ubenwa, which takes its name from the Igbo phrase meaning “baby’s cry,” is an artificial intelligence system that interprets baby cries to identify neurological problems early on. It specifically examines frequency, pitch, and other important acoustic characteristics in a baby’s cry to target birth asphyxia, one of the main causes of infant mortality in sub-Saharan Africa. With its low cost and non-invasive diagnostic tool for early intervention, this AI-powered method has the potential to save many young lives.
Ubenwa is unique because of its dedication to accessibility. Their AI solution’s ability to function without internet access is a crucial component that guarantees its applicability in Africa’s remote regions. As a result of taking on this challenge head-on, Ubenwa is setting an example for other AI startups on how to use AI to address regionally specific healthcare issues.
Ubenwa emphasizes the revolutionary potential of AI in healthcare on a larger scale, especially in settings with constrained resources. Their creative strategy highlights the significant societal impact of locally sourced solutions to locally faced challenges and is a potent testament to the potential of AI in Africa.
Fintech
Fintech is another sector where AI is making a substantial impact. Startups are utilizing AI to enhance fraud detection, streamline customer service through chatbots, and provide personalized financial advice. Companies like Flutterwave and Paystack are leading the charge by integrating AI into their platforms to offer secure and efficient payment solutions.
American fintech startup Flutterwave offers a payment infrastructure to payment service providers and international retailers throughout the continent. The company, headquartered in San Francisco, California, operates in Nigeria, Kenya, Uganda, Ghana, South Africa, and seven other African countries.
2020 saw the $200 million acquisition of Paystack, a Nigerian financial technology company that provides businesses with payment processing services, by Irish-American financial services giant Stripe. Lagos, Nigeria is home to the company’s headquarters.
For more insights, read our post on How Fintech is Transforming Financial Services in Africa
Education
Companies like Kytabu uses AI-integrated digital content and collaboration tools to provide educators, schools, and students with dynamic resources for long-term learning and teaching motivation.
Education technology (EdTech) startups are also benefiting from AI. These startups are creating personalized learning experiences using AI algorithms that adapt to individual students’ needs and learning styles. This approach ensures that students receive tailored support, enhancing their learning outcomes and engagement.
For more insights, read our post on How African EdTech Startups are Transforming Education
There are difficulties with African startups’ use of AI. There are many obstacles, including concerns about data privacy, insufficient infrastructure, and the shortage of qualified personnel. However, many startups are coming up with creative ways to overcome these obstacles. Consequently, global tech companies collaborate, fund local talent development, and support legislative initiatives to create an environment favorable to AI-driven innovation.
Conclusion
Tech startups should invest in legal knowledge and compliance resources to successfully navigate the constantly changing regulatory environment. Proactively pursuing compliance and staying abreast of regulatory developments can aid startups in reducing risks and seizing new opportunities within Africa’s rapidly expanding technology sector.