In the past, the perception of Africa by the rest of the world was always on the negative side. However, tech entrepreneurs are gradually becoming the face of the continent, with ground breaking success stories as well as solutions that not only address local problems but also meet international needs.
Unlike before, African tech startups are keen on proffering solutions designed with the local market in mind and not forgetting the bigger picture – the international market.
United States’ President Barack Obama in his recent visit to Kenya affirmed that Africa is one of the fastest growing regions in the world, praising the continent’s economic advancement.
Now the question, what’s the promise of African startups to local and foreign investors?
The large pool of educated young people with the inadequate formal employment opportunities has resulted in breeding both creativity and entrepreneurship on the continent.
Investors need not be told of the huge potential with respect to the population – over a billion with 4 countries having over 70 million each. Of course, there are the risks and challenges attached to doing business on the continent. However, the success stories in the industry within the last couple of years have proven the possibility of running a successful business irrespective of the challenges.
And this have given rise to Africa-centric initiatives like the FastForward Africa among others.
One major benefit of investing in startups is the immense potential for huge returns. Apparently, only savvy investors focus less on the risks in a bid to reap the enormous rewards of the continent’s unexploited startup investment market.
The investors who can lean on the investments opportunities in the African startup ecosystem will most likely smile to the bank.
While there are indications that investment for growing companies is still in the infant stage on the continent, Metro Africa Xpress (MAX) co-founder, Chinedu Azodoh is of the opinion that investors abound on the continent – startup founders just need to approach the right persons.
Some promising African startups have received startup capital and have made names for themselves, attributable to amazing success stories and tractions.
NEW EPISODE OUT! Built in Africa, a podcast by Techpoint Africa
NEW REPORT: Nigerian startups raised $28.35m in Q2 2020; only about 4.5% of that came from local investors. Find out more in the full report.