In Africa, “Digital Transformation (DX)” is rapidly evolving to transform businesses with digital technology. Startup companies that promote such DX are also expected to be key players in solving the challenges of Africa.
Starting from 2020, JICA has conducted “Project NINJA (Next Innovation with Japan),” a platform for entrepreneurship support to solve social issues as business and trigger the creation of high-quality jobs to assist nation-building in developing countries. As part of the project, “Startups in AFRICA – the grand final of the NINJA business plan competition (co-organized by JICA and Nikkei Inc.)” was held in February.
Contactless IC cards will solve a variety of issues
One of the most notable projects proposed at the event was a cashless payment service using contactless IC cards by TranSoniCa in Ghana.
Daniel Elliot Kwantwi, founder and CEO of TranSoniCa, studied at the University of Tokyo under JICA’s ABE Initiative (African Business Education Initiative for Youth). When Mr. Kwantwi first came to Japan and used the Suica transportation card, he thought, “I want to take this back to Africa!” This marked the beginning of this project.
In Africa, cash payments for transportation and shopping often take a long time, resulting in long waits and queues. In recent years, there has been a growing need for contactless payment services to prevent the spread of COVID-19. Stores are also facing issues with cash, such as theft and complicated sales management. TranSoniCa’s service solves all of these concerns. We would like to introduce the service in Ghana first, and then expand it to other African countries.
Japanese companies are eyeing business opportunities in Africa
This business contest was the final competition in which the 10 startups selected as finalists from 2713 applications across 19 African countries competed by giving presentations on their respective businesses plans. Japanese companies that participated in the judging also offered “special awards” for specific cooperation, such as investment, business partnerships, and the provision of mentoring services.
YAMANAKA Shotaro, senior manager of Rakuten Europe S.a.r.l., Africa division, who decided on the cooperation with TranSoniCa, said on the reason for selection, “We believe that providing a safe and secure means of payment through cashless cards is of great social value in Africa. As Rakuten Group is operating various fintech services, we would like to use our experience to support TranSoniCa.”