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Understanding the Botswana startup ecosystem
- 2. INNOVATING BOTSWANA: BOTSWANA INNOVATION HUB AND THE EMERGING INNOVATION ECOSYSTEM: Budzanani Tacheba (PhD) Brussels, BELGIUM
- 3. Promote technology, entrepreneurship and commercialization of innovations on a purpose built Science and Technology Park (STP) WHAT WE DO
- 4. WHAT WE DO ATTRACT Innovative Entities & Investment in Science & Technology Ventures FOSTER Commercialisation of innovations and technology transfer CONTRIBUTE To the country’s competitiveness & national priorities DEVELOP & MANAGE Science & Technology Park
- 5. When You Change the World and No One Notices! Do you know what’s happening in this picture? Literally one of the most important events in human history.
- 6. GLOBAL COMPETITIVENESS INDEX Source: World Economic Forum Report 2014 - 2015 Botswana
- 7. Key policies/strategies at 50 years COMPETITIVENESS through INNOVATION Science Technology & Innovation Policy Policy (2012) Key Sectors identified for cluster development (2012) Maitlamo - ICT Policy (2004) Innovation Fund Order (2009) BIH Tax Incentive Incentive Order (2009) BIH Labour Dispensation (2009) Vision 2036 (new) V-2016 Prosperous Productive and Innovative nation
- 8. STP = Infrastructure + Programmes Technology Transfer Office BIOTECH ICT ENERGY MINING
- 9. 9 STRATEGY MAP 2017/18 DEVELOP & MANAGE SCIENCE & TECHNOLOGY PARK • Icon Building Completion • Icon Data Centre & ICT Services • Facilities Management • Icon Tenant Acquisition • Land Leasing FOSTER COMMERCIALISATION OF INNOVATIONS & TECH TRANSFER •Innovation Fund •Technology Entrepreneurship & Commercialisation Programme ATTRACT INNOVATIVE COMPANIES & INSTITUTIONSS •Strategic Partnership & Projects • BIH Services, Incentives & Processes • Branding, Marketing & Public Relations STRENGTHEN ORGANISATIONAL EFFECTIVENESS FINANCE Implement 3 year Business Plan • Increase Revenue Streams • Increase Investments in the Park • Manage OPEX GOVERNANCE & COMPLIANCE • Governance Structures • Business Strategy • Compliance PEOPLE Alignment of functional structure to strategy and change management • Employee Performance & Staff Welfare • Training CONTRIBUTE TOWARDS COMPETITIVENESS & NATIONAL PRIORITIES • Investments (Infrastructure & Innovation Partner Projects) • Availability of RSTI Infrastructure • Impactful Innovative Solutions (incl. Projects) • Build capacity to Innovate IMPACT
- 10. DEVELOP & MANAGE SCIENCE & TECHNOLOGY PARK GOV. INTEGRATED DATA CENTRE BOFINET TECH CENTRE AFRICAS DATA CENTRE CONCEROTEL SATELLITE HUB ICON BUILDING DATA CENTRE ICON BUILDING
- 11. ICON BUILDING Development 72% Completed (February 2016 Image) Target Completion September 2017 Tenancy 14000sqm Letable space 36% - Confirmed Preletting (Target 60% at Opening) 35% – Under Negotiation
- 12. Industry (manufacturing) Basic research Applied research Grant Loans Services Equity Product development Commercialization Technology Transfer Office National Research Fund Innovation Fund Production Start Ups Venture Capital & Angel Funding INNOVATION VALUE CHAIN
- 13. BIH Innovation initiatives Projects/Partnerships ICT TV Whitespace Microsoft partnership Energy & Environment Water Technologies ODIS Filtering Renewable Energy Solar Testing and Demo Sustainable Housing Better Shelter Tech entrepreneurship World Queues Product launch Modisar Product launch Innovation idea concept business model Feasibility Market Ready Product/Process Basic Research Proof of principle Late labscale demo Validation Prototype Prototype II Commercial Market Ready Basic Reserch Applied R&D Tech development and demonstration Application Dvelopment Commercial use Early lab scale demo FINANCING R&D Early stage Funding Gap funding to demostrate technology value Low Risk mature funding
- 14. WORLD QUEUE S INTELLIGENT Q-MANAGEMENT SYS @ DEPT. TRANSPORT BIH Register Q2-2016
- 16. Taking advantage of the Demographic Dividend Population and income
- 17. Changing trends and attitudes to employment
- 19. Start ups and failure rates 19
- 21. The new age of Communication 21
- 22. Social media 22
- 23. Opportunities for IP based Jobs 23
- 24. First Steps Venture Center is the flagship technology entrepreneurship development programme of the Botswana innovation Hub, developed as a hybrid business incubation/acceleration venture programme. FSVC seeks to support technology oriented startups within the Botswana Innovation Hub priority areas (i.e. Information Communication Technology (ICT), Biotechnology, Clean Technology and Mining Technology), that have the potential to grow into both the local and international markets as well as a knowledge sharing platform in which contribution to the broader development of technology entrepreneurship in Botswana can be made.
- 26. • Business idea – the business idea should be clear, original and practical • Leadership – Good leadership is paramount to give direction to the business • Team – Hiring the right people with the requisite skills and attitude for the company • Capital/seed funding – Fundamental to set up the business Planning – A clear plan on how the company is going to achieve set goals is required • Marketing – How the business is packaged and marketed is important
- 28. FSVC Space 512 square-metres Strategic location Access to key transport/logistics Value added services Current limitation in space affects onboarding Park development to afford maximum occupancy
- 29. Est. 2013 BIH Technology Entrepreneurship Development Program Incubator / Accelerator hybrid Coaching / Mentoring Shared Facilities Networking Business Development 19 clients and counting… • Pitch Sessions • FSVC Talks • Lion’s Den • Open Days • Investor Days • Development Workshops Mobility funding
- 33. 2013 - 2016 FINANCING Gap funding to demonstrate technology value Early stage Funding Low Risk mature funding Start Ups (19) idea concept business model feasibility launch Clean Tech 3 ICT 10 Biotechnology/IKS 1 Mining 2 KIBS 0
- 34. Enrolled Companies: • From 2013 - 2016 a total of 19 companies were enrolled into the FSVC program. Of the 19 companies: – 10 enrolled in 2013 – 4 enrolled in 2014 – 3 enrolled in 2015 – 2 enrolled in 2016 Companies launched: A total of 4 companies have been launched since 2013. Secured Customer/Proof of concept: • A total of 16 companies have managed to do either a proof of concept or secured a customer. The remaining 4 companies are still at product development stage. • 91 jobs created • 13 products/services launched in the market • ± BWP 2,000,000 in revenue generated by clients
- 35. Disruptive Innovations When You Change the World and No One Notices!
- 36. Modisar -2014 Orange Social Venture Prize Recipient of P100, 000 -2015 Seedstars Botswana Recipient Deaftronics -2014 Global Entrepreneurship Summit Recipient of Most Societal Impact Award $5, 000 BUA -2016 Seedstars Botswana Recipient
- 37. Scaling up -Scaling up products and services ( identify more clients) Merger/Acquisition -Exit and investing in new products/services (spin outs) -Merge with similar services offering partners Acceleration -Expanding to new markets (export)
- 38. • Modisar & World queues (1) - development of bespoke integrated applications for companies (Creative Insights, SELCOR, ASANTE GROUP, etc..) • Spachee (2) - development of Integrated services application for Courier company; Motshelo application • Kaelekae (1) - Nnollo (Brands) are able to use the platform to run effective SMS campaigns, track their followers/customers, improve engagement with followers, and access useful analytics both on mobile devices and on desktop) • All Green Holdings (1) – Leak less valves • Ditec(1) - Diapps ( applications store for locally developed apps)
- 39. FSVC client, These Hands, identified a need for a physical co-creation space in the form of a local Innovation Resource Centre in D’Kar. Support towards capacity building and product development
- 40. The Mining Technologies Entrepreneurship Centre (MTEC) programme • To develop and nurture citizen and local companies through a demand driven supplier entrepreneurship development programme • The Centre started operations on October 5th 2015, It enrolled 5 Clients in March 2016. • 10 clients were initially shortlisted for the program but the flowing 5 got contracts. UPDATE: Botswana Innovation Hub is negotiating with other mining houses in the country to continue examination of the mining value chain with a focus on exploration, mining, processing and export of the mined minerals from its current location in Selibe Phikwe. TerraCam Botswana Supplied Aerial geographical stats via drone Gole Solutions Calibration and Monitoring of Air Quality Stations and supply of equipment Pump Services Supplied BCL with pumps, valves and spares. JSI Rock Tools Supplied drilling equipment to carry out a Test Run in the BCL Selibe Shaft Lesaka Textiles supplied Polypropylene Jumbo Matte Bags
- 41. RISKS • Market Access • Partnerships/ IP • Technical capacity • Scaling up • Funding INTERVENTIONS • New markets facilitation • Capacity building • Links to pool of experts • Local support for pilots projects • Explore alternative funding models e.g. (stimulate venture capital and angel funding networks)
- 42. Challenges: • Innovation landscape not conducive – No framework for innovation procurement • Lack of Seed Funding – Other funding sources should be explored • Market Access – Difficulty in turning leads to paying customers • Culture – The people culture has to improve • Partnerships – Clearly defined to avoid misalignment of expectations • Lack of commitment
- 43. • Workspace restrictions • Access to targeted mentors • Space affordability (rentals) • Lack of affordable laboratory space – Biotech sector • Regulatory bottlenecks (e.g. Clean tech) – National land-use requirements e.g. EIA
- 44. • Market Access / Linkages (TV/RADIO/PRINT MEDIA) • Office Space (Internet, printing, boardroom etc...) • Network building events • Roadshows • Company/Product Launches & Media Coverage • Company structuring (onboarding new staff) • Office Access • Publicity • Mobility funding • Innovation support (competitions, technical assistance)
- 45. Innovation Chasm INPUTS WHAT BIH DOES PROJECTS: Water technologies, Sustainable Housing, IKS, NUTRITION Employment OUTPUTS Competitiveness HUMAN CAPITAL DEVELOPMENT: HRDC, SAIS, SANBIO, De Beers, START-UPS AND SPIN-OFFS World Queues Ditec Mobile ASANTE GROUP Research & Academic Institutions: BUAN, UB, BIUST, NFTRC, BAC, BOCODOL,,Private Institutions PARTNERSHIP: (ODIS, MICROSOFT, HYDROCON GREEN) PRODUCTS: Apps, pilot water unit, Prototypes, SERVICES: Online based Queue management systems FACILITATE: Commercialisation INNOVATORS: Students, Individuals, Companies CONNECTOR: (Networking, FSVC, SAIS, SANBio) FUNDING (All innovation related) Innovation and technology VETTING Enabling (Capacity building ) OUTCOMES SPECIALISED INFRASTRUCTURE: CO-CREATION SPACES, LABS
- 46. Budzanani Tacheba (PhD) Director, Cluster Development Plot 50664, Fairgrounds Gaborone Tel: +267 3913328 Fax: +267 3913289 Cell: +267 71399601 Email: budzanani.tacheba@bih.co.bw www.bih.co.bw Thank you | Dank uwel!
Editor's Notes
- But here’s the most amazing part of the story: Hardly anyone paid attention at the time. Wilbur and Orville Wright conquered flight on December 17th, 1903. Few inventions were as transformational over the next century. It took four days to travel from New York to Los Angeles in 1900, by train. By the 1930s it could be done in 17 hours, by air. By 1950, six hours. Unlike, say, mapping the genome, a lay person could instantly grasp the marvel of human flight. A guy sat in a box and turned into a bird. But days, months, even years after the Wright’s first flight, hardly anyone noticed. Here’s the front page of The New York Times the day after the first flight. Not a word about the Wrights: Several years went by before the public grasped what the Wrights were doing; people were so convinced that flying was impossible that most of those who saw them flying about Dayton [Ohio] in 1905 decided that what they had seen must be some trick without significance – somewhat as most people today would regard a demonstration of, say, telepathy. It was not until May, 1908 – nearly four and a half years after the Wright’s first flight – that experienced reporters were sent to observe what they were doing, experienced editors gave full credence to these reporters’ excited dispatches, and the world at last woke up to the fact that human flight had been successfully accomplished. The Wrights’ story shows something more common than we realize: There’s often a big gap between changing the world and convincing people that you changed the world. Jeff Bezos once said: Invention/innovation requires a long-term willingness to be misunderstood. You do something that you genuinely believe in, that you have conviction about, but for a long period of time, well-meaning people may criticize that effort … if you really have conviction that they’re not right, you need to have that long-term willingness to be misunderstood. It’s a key part of invention. However, it is also imperative that when there are local efforts towards “changing the world” we as the general public appreciate and play our part in bringing these to fruition, because only then will the world notice. It’s such an important message. Things that are instantly adored are usually just slight variations over existing products. We love them because they’re familiar. The most innovative products – the ones that truly change the world – are almost never understood at first, even by really smart people. It happened with the telephone. Alexander Graham Bell tried to sell his invention to Western Union, which quickly replied: This `telephone' has too many shortcomings to be seriously considered as a practical form of communication. The device is inherently of no value to us. What use could this company make of an electrical toy? It happened with the car. Twenty years before Henry Ford convinced the world he was onto something, Congress published a memo, warning: Horseless carriages propelled by gasoline might attain speeds of 14 or even 20 miles per hour. The menace to our people of vehicles of this type hurtling through our streets and along our roads and poisoning the atmosphere would call for prompt legislative action. The cost of producing gasoline is far beyond the financial capacity of private industry… In addition the development of this new power may displace the use of horses, which would wreck our agriculture.
- Global Competitiveness Index has 12 pillars Focusing on 2 that relate to the BIH mandate Botswana is in the transition stage of development from Factor Driven to Innovation Driven (Knowledge Economy)
- Various enabling policies and frameworks existing which support Competitiveness The key to success is that they are coordinated and work together to ensure Competitiveness Explain each policy and framework – One liners Diagnostic study on economy and employment identified key sectors for cluster development
- Sector Description Information and Communications Technology The objective of the Information and Communications Technology aspect of BIH is to enable the development of local applications, products and services that help Batswana using ICT. BIH has prioritised utilizing ICT to develop applications for Health, Education, Commerce and Transport. Biotechnology This sector is focused on catalyzing more commercial business in the areas of, testing and manufacturing, with special emphasis on addressing cross cutting issues of food security, Health and exploitation of a wide range of indigenous natural products. Mining Technologies The mining technologies sector focuses on facilitating joint commercial activities in mining and related technologies with a focus on technology providers as well as business development in exploration, geology, mining, ore processing and mineral beneficiation technologies. Clean Technologies This sector focuses mainly on catalyzing activities related to clean technologies, energy and environmental development and commercial activities within those areas. Its emphasis is on environmental protection in renewable energy, cleaner coal, water conservation and waste management. Indigenous Knowledge Systems (IKS) The sector explores creative ways in which IKS can be transformed into innovative products in partnership with key stakeholders.
- This two dimensional space places emphasis on the positioning of Botswana Innovation Hub as a Science and technology Park in the national system of Innovation of Botswana which is at a nascent stage. BIH in this case represents a networked environment of private companies, researchers, entrepreneurs, innovators, incubates/start-ups and the rest of the STP Community if services providers. Complimentary and core to the STP business model are Universities (e.g. BIUST, UB, and other international Universities under an agreed partnership model), Research Institutes (e.g. BITRI), Funding bodies and Industry linkages with a specific mandates that are related to BIH A strategic lever of BIH to these organizations is the National Technology Transfer Office which was developed in partnership with University of Botswana. The NTTO has an underlying policy framework that prescribes the commercialization of R&D and innovations in a STP . The Policy was developed with support from the World Intellectual Property Organization (WIPO). The enablers of Commercialization of R&D, Innovation and inventions are gap-funding instruments like Innovation Fund and Research funds (HRDC) Furthermore there is need to develop Venture capital and angel funding structures locally. The same goes for Investments on Infrastructure in the Park to promote R&D commercialization through commercial banks and related financing organizations. All IP including incoming or generated through the NTTO will have potential of being exploited or even exported through the STP in the form of licensing of technologies, patents, joint ventures SPV, spin-offs etc.… The exploitation of local IP (under the NTTO) has the potential to grow industry, empower start ups to create employment and produce new products and services going forward.
- According to the BIH register
- Graduate unemployment is a challenge that we have as a country
- There are opportunities for employment creation, looking at the demographics
- Employment landscape has changed over the years and continues to change Gone are the years when one had one job for the rest of their lives
- Develop partnerships that will see new innovations being fully localized
- A technology entrepreneurship development programme, to support an entrepreneurial and innovation culture through technology transfer. FSVC identifies, develops and nurtures viable technology oriented start-up businesses with a potential to grow locally and into international markets. To promote the development of technology & innovation at micro level. To promote technology entrepreneurship To provide a platform for commercialization of technology To close the innovation gap To expose local technology businesses to international markets and network