The pent-up demand for locally created mobile applications has received a major boost today after Safaricom announced the launch of USD 1 million (Sh90 million) to help accelerate the development of innovative mobile applications and solutions for ICT startups.
The Safaricom Spark Venture Fund will be rolled out through equity investment to start ups who can also access the money in form of other debt instruments. Startups will be receive between US$ 75,000 and 250,000 to spur growth in the ICT sector which has been contributing over 60 per cent to Kenya’s GDP and is a key pillar towards actualization of Vision 2030.
“This is the catalyst needed to realize dreams of having a vibrant ICT economy in Kenya. The fund will provide the missing link between app developers and commercializing the apps as the techies will be able to enjoy other benefits from Safaricom,” noted Joe Ogutu, who is in charge of Strategy and Innovation at Safaricom.
International tech fund TBL Invest will oversee the funds’ administration and all applicants will undergo a serious scrutiny from the tech fund. A cross-functional committee will then give nods to the applicants.
“This journey started in 2009 and after a series of mistakes we are able to help techies actualize their dreams and turn them into cash cows,” remarked Nzioka Waita, Safaricom’s director of corporate affairs. “We encourage the youthful demographic and women to apply for these funds.”
To qualify for the Fund, startups must have a working product or service with an active user base that is capable of creating transformative solutions. The business should be based in Kenya and the committee, which is composed of Safaricom’s management, should be able to see the potential of the business with an identified market segment. Safaricom will be looking to bank on the success of these startups to drive their data business.
The communications company has partnered with the ICT Authority whereby the parastatal will provide data and government systems to spur app development, according to the Authority’s CEO Victor Kyalo. The developers will have free access to resources such as bulk SMSes, high speed broadband connectivity and airtime from Safaricom.
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