Chan Zuckerberg Initiative Leads $24M Funding Round for Tech Company Andela to Expand Operations in Africa

As employment opportunities in software development and programming continue to thrive in spite of the growing urgency of automation in the technology sphere, the training landscape for aspiring coders remains a hotbed for innovation and expansion. Numerous startups and established companies have recognized this and launched coding boot camps to empower individuals with the requisite skills to navigate this increasingly lucrative sector. Some of these training platforms are offered for free, especially those available online, while others, particularly the ones promising job placement upon completion of the course, require payment. Falling into the latter category, Andela has positioned itself as a major player in this space.

Andela is not your average coding boot camp—it’s an organization that not only provides training but also assists trainees to flourish by connecting them with potential clients. The company’s leap in demand was evident from the pilot program launched in Lagos last year, when over 16,000 applications were received. It also successfully raised $10M (equivalent to 3.4 billion Naira) in funding at that time, a clear demonstration of confidence from its investors.

Now, the Chan Zuckerberg Initiative (CZI), a venture philanthropy company leading the way in education and science, co-founded by Facebook’s Mark Zuckerberg and his spouse, Priscilla Chan, has announced funding for Andela to the tune of $24M (or 8 billion Naira). This funding acknowledges the impressive caliber of developers churned out by Andela every year. Meanwhile, Andela, which already operates offices in Lagos and Nairobi, is in the process of opening a third branch as part of its larger expansion strategy in Africa. This funding round also saw participation from GV (formerly Google Ventures), Spark Capital, the Omidyar Network, as well as the San Francisco-based Learn Capital, all of whom were part of the initial $10M funding wave. Andela seeks to make clear that it’s not a charity—it operates as a profit-driven organization.

Africa is home to approximately one billion individuals, with nearly 200 million of its inhabitants between 15 and 24 years of age, making it the continent with the youngest population globally. However, high unemployment rates persist across all the major African economies including Nigeria, the largest African economy by GDP. According to a United Nations report in 2013, youth unemployment in Africa is staggering at 60%.

The issue of unemployment is even more pronounced among young African females. The AfDB found that in most of the Sub-Saharan African countries, men find it easier to secure jobs than women with equivalent skills and experience. The International Labor Organization (ILO) further reports that up to 82% of African workers live in poverty due to underemployment and that over 70% of Africa’s youth live on less than the globally-defined poverty threshold of US$2 per day.

While some African nations have witnessed over 6% growth in the last decade, earning them emerging market status, these growth rates have not translated into significant decreases in the prevailing high unemployment rates. This is because most of this growth fails to prioritize local talents and services which are instead being outsourced or imported.

But Andela promises change. The company looks forward to a future where a portion of outsourced software and programming jobs from developed countries goes to Africa instead of traditional outsourcing destinations like India. This shift could generate employment opportunities and foster a new breed of entrepreneurs that the African continent desperately needs.

Andela—founded by Ian Carnevale, Jeremy Johnson, Iyinoluwa Aboyeji, and Christina Sass in May 2014—aims to continue its mission by contributing to the tech ecosystem and reducing unemployment rates across Africa through this unprecedented expansion.