By Patricia Rinke, AfricInvest
Africa has unique advantages over other regions: a young and inexpensive wage base, an untapped consumer market, and agile and creative founders looking for solutions. Accustomed to macroeconomic risk, African companies have proven resilient in the face of the current global crises. However, the development of the tech ecosystem depends on the mobilization of VC capital, and Africa still lacks local funding and is therefore severely affected by a decline in international funding. In addition, regulation is only beginning to respond to the needs of startups to enable them to thrive in an enabling environment.
African startups have the opportunity to leverage developed technologies, learn from the challenges faced by companies in other emerging markets, and succeed in finding innovative solutions to local and international challenges
Today, venture capital investment in Africa represents just 1% of the global VC market. But while this may seem insignificant, it’s worth remembering that the first wave of VC in Africa began 10 years ago, and that the African tech ecosystem has seen strong growth since 2020. African startups have the opportunity to leverage developed technologies, learn from the challenges faced by companies in other emerging markets, and succeed in finding innovative solutions to local and international challenges.
African tech hubs have capitalized on this development, bringing together thriving networks of tech players and investors
Financial inclusion is at the root of all economic development. Companies operating in other sectors can sell their products and services thanks to the introduction of mobile money and digital financial solutions. African tech hubs have capitalized on this development, bringing together thriving networks of tech players and investors. Today, we are seeing a pipeline of startups that is more diverse in terms of regions and sectors. Many African countries have recognized the importance of public support for tech companies, which has led to the emergence of promising young startups.
