Across Africa, innovation hubs are helping entrepreneurs turn ideas into businesses. But as the ecosystem grows, an important question is emerging: how can the institutions supporting startups secure their own future?
A young entrepreneur walks into an innovation hub with a business idea, looking for guidance on how to get started. Over the next few months, they receive mentorship, attend training sessions, meet potential partners and begin developing their product.
Behind that experience is an institution providing workspace, skilled facilitators, business development support and access to networks. Keeping these services running requires people, infrastructure and consistent funding.
Now imagine the programme supporting those activities reaches its final month.
The training sessions have ended, the donor-funded project has been completed, and the hub must find new resources to retain its staff and continue supporting entrepreneurs.
For many innovation hubs, securing the next source of funding is an ongoing part of running the organisation.
It raises a question that deserves greater attention as Africa's innovation ecosystem expands: who supports the institutions that support entrepreneurs?
A growing ecosystem with a sustainability question
Innovation hubs have become an important part of Africa's entrepreneurial landscape, connecting founders to opportunities that might otherwise be difficult to access.
AfriLabs' 2025 Annual Report recorded a network of 528 innovation hubs operating across 232 cities in 53 African countries, with 336 hubs actively participating in programmes, learning opportunities and network activities during the year.
The growth reflects the increasing importance of these institutions in entrepreneurship development, skills training and innovation.
Yet sustaining their operations remains a challenge worth examining.
Research published in 2025 in the Journal of the Knowledge Economy examined the business models of African innovation hubs, drawing on earlier survey evidence from 39 hubs in 21 countries. The findings highlighted the important role of externally financed programmes, consulting services and grants in hub revenue.
Although the sample does not represent every African hub, it illustrates how closely institutional sustainability can be connected to funding arrangements beyond the services provided directly to entrepreneurs.
When funding is tied to specific projects, hubs must manage the challenge of maintaining their broader operations between programmes.
Building institutions that can stand the test of time
Across the continent, hub leaders are exploring ways to strengthen their financial foundations.
Some generate income through coworking spaces, business advisory services, corporate innovation programmes and specialised training. Others develop partnerships with universities, government institutions and private-sector organisations.
These approaches offer opportunities to diversify revenue while continuing to provide accessible support to entrepreneurs.
AfriLabs itself has placed institutional sustainability at the centre of its strategic direction.
Its 2025 Annual Report identifies sustainability as one of three priorities for 2026, including revenue diversification, stronger partnerships and the development of platforms such as AfriLabs Academy into more sustainable service models.
The challenge is to develop institutions with the financial resources, governance structures and partnerships needed to operate consistently, even as individual programmes begin and end.
Because when an innovation hub becomes more sustainable, the benefits extend to the entrepreneurs and communities depending on its services.
A conversation for Africa's hub leaders
As Africa's innovation ecosystem continues to grow, attention is increasingly turning towards the strength of the institutions behind that growth.
This will be a central conversation at the 11th AfriLabs Annual Gathering, taking place from 18 to 20 November 2026 in Cotonou, Benin.
The Hub Solution Track will explore institutional sustainability, governance, revenue diversification, ecosystem leadership and cross-border collaboration, with a focus on enabling innovation hubs to deliver long-term economic and social impact.
For hub managers, ecosystem builders, development partners and policymakers, the discussion presents an opportunity to exchange experiences and examine approaches to building stronger institutions.
After all, every successful entrepreneur has a story about the people and organisations that helped them along the way.
Ensuring those organisations are still there for the next generation of entrepreneurs may be one of the most important investments Africa can make in its innovation future.
Join the Hub Solution Track at AAG 2026.
18–20 November 2026 | Cotonou, Benin
Register: https://bit.ly/AAG2026
