From driverless cars to the green energy revolution, integrated smart cities and new apps for funny selfies, all the innovations that are going to change our lives will use software as their foundation, their core and or their user interface.
Software is changing the world. Software is shaping the world.
In order to be SA’s Innovation Capital, the town or city needs to become the go-to place for African entrepreneurs to source or develop code and other inputs they need to launch their startups.
The ingredients necessary to become the innovation capital are:
- human capital,
- diversity of cultures, ideas and backgrounds,
- an environment conducive to creativity,
- fast bandwidth and accessible connectivity, and
- access to startup funding and finance.
Human Capital
Nelson Mandela Bay has NMMU and is within a short drive of Rhodes University. Up until recently, many graduates from these universities with world-class computing science departments were forced to go to Johannesburg or Cape Town to find work in software.
High costs of living, a quenched job market, crime and roads that can’t handle the number of cars during rush hours are driving people out of our capitals and back to the cheaper, safer and better lifestyle in the Eastern Cape.
All of a sudden Nelson Mandela Bay has a glut of smart software people looking to change the world. A few local development houses have started exporting code to elsewhere in South Africa, Europe and America.
Diversity of cultures, ideas and backgrounds
Diversity for creativity is something that is often overlooked in business. Real creativity comes from having people with different backgrounds and views of the world who are all working together.
Also, to be innovative, African startups should fight the urge to compete against Silicon Valley or European startups. Silicon Valley startups don’t know Africa and they struggle to relate to our problems and technical environment. As such, they struggle to compete here.
NMMU is one of the most diverse universities in the country. It attracts students from all over South Africa, Africa and the world.
Unlike other South African cities, Nelson Mandela Bay has an integrated society of students and residents with diverse background from all over Africa. This medley of cultures creates a melting pot of ideas and outlooks. Startups from the Bay can launch their companies in Africa for the untapped African tech market.
An environment conducive to creativity
In addition to having a diversity of people rubbing shoulders with each other, an innovation capital needs to be conducive to creativity.
It is hard to be creative when you’re sitting in traffic for two hours a day, surrounded by city noise, and unable to venture outside because of crime or weather.
Nelson Mandela Bay has accessible beaches and parks, and the weather is always moderate (and sometimes very windy).
Fast bandwidth and accessible connectivity
Connectivity is where the Bay currently falls short.
Telkom seems to have forgotten about Nelson Mandela Bay. In the business and residential areas the internet infrastructure is outdated, unreliable and slow.
In the townships and the outlying areas, very few people have access to connectivity. There is 3G coverage everywhere, but 3G is unaffordable to the poor, especially if the poor wants to use the internet to learn to code and communicate with potential clients, partners and funders elsewhere. How can you expect to build a business if you can’t afford to connect?
Access to startup funding and finance.
Nelson Mandela Bay’s trajectory to innovation capital has been rapid and recent. Investment hasn’t entirely caught up, yet.
As more businesses hire the services for NMB entrepreneurs and more companies move here to tap into the available and diverse human capital, the funders will follow.
What about Stellenbosch?
In a move of marketing brilliance, in 2012 the then mayor gave Stellenbosch the name “South Africa’s Innovation Capital” during the launch of the Stellenbosch Free WiFi project. Despite the failure of its WiFi initiative, the name stuck.
Stellenbosch has human capital and is also arguably the best market to raise startup funding in South Africa.
The problem with Stellenbosch, however, is that it is just a little too rich, too white, too expensive, too cliquey and exclusive, and too out of touch with the problems facing the rest of South Africa.
As a result, it would not be surprising if there are more offices with software developers trying to build tech for Africa in the surrounding Durbanville and Bellville.