In a significant shift, Y Combinator, the influential accelerator, has reduced its focus on developing markets, including Africa. This move has created an opportunity for local accelerators to fill the gap, with some backed by African YC alumni. The change in YC's strategy comes as it prioritizes big problems in areas like manufacturing, defense, and climate.

In Africa, startups rely heavily on programs like YC to connect with investors and find their footing. However, with YC's reduced focus, local accelerators are emerging to provide the necessary support. One such initiative is Accelerate Africa, launched by Iyinoluwa Aboyeji, co-founder of YC-backed Flutterwave. Aboyeji's ambition is to create "The YC of Africa," providing a pipeline of exceptional early-stage startups that can access local capital and partnerships.

Aboyeji's vision is to build a local capital base, rather than relying on external funding sources. He believes that Africa's startups have two paths forward: continue relying on foreign funding or take bold steps to build a local capital base. Accelerate Africa aims to forge partnerships between its portfolio companies and local banks, telcos, and others, providing mentorship, resources, and services to help companies reach $1 million in revenue.

The decline of foreign interest in African startups has had a direct impact on the amount invested in the continent. According to the African Private Capital Association, foreign funding, which includes VCs and development finance institutions, has typically made up around 77% of all venture funding in Africa over the last decade. The first half of 2024 saw the value of startup investments overall decline by a startling 65% compared to a year before.

Another accelerator, GoTime AI, based in Nigeria, is focused on developing AI products in Africa. The accelerator, founded by Olugbenga Agboola, another co-founder and CEO of Flutterwave, aims to build AI startups at a lower cost than in Western markets, making them more attractive to acquirers. GoTime AI plans to expand its program across Africa and scale to accept 15 to 20 startups per cohort.

The emergence of local accelerators in Africa is a significant shift in the startup ecosystem. It underscores a growing recognition that Africa needs its own solutions, tailored to its unique challenges and opportunities. As Aboyeji noted, "It starts with a pipeline of exceptional early-stage startups that the ecosystem and bigger companies have access to, and then it builds up from there."

The success of these local accelerators will depend on their ability to provide the necessary support and resources to African startups. With the decline of foreign interest, it is crucial for Africa to build its own capital base and create exit paths for startups. The emergence of local accelerators is a step in the right direction, and their success will have a significant impact on the future of Africa's startup ecosystem.