Many African founders will love to build global solutions, but too often, it feels like going global is in sharp contrast to building local solutions.
The question often posed is, "With all the problems in Africa, why bother building for the world?”
Maya Horgan Famodu, Founder and Managing Partner at Ingressive Capital, argues that African founders don’t have to choose between building for the world and building for Africa.
“This is actually a false dichotomy that needs to die. Building global doesn't mean abandoning Africa; it often means solving African problems better,” she says.
So how should founders think about building global solutions from Africa?
Why solve problems beyond Africa?
There are a lot of problems that can be potentially solved by African startups. From limited access to credit to improving healthcare delivery, Africa is hardly lacking in problems that should be solved.
As a result, many wonder if there’s any need to build solutions that are not primarily used by Africans. One argument in favour of building global startups is how it builds the muscles to solve African problems better.
Building solutions for the African market is challenging, but it isn’t uncommon to find startups skimping on quality. In contrast, with tighter regulations in most parts of the world, building global solutions forces African founders to aim for those lofty standards.
“When you build for global standards, you're forced to level up your game,” Famodu says.
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Building global solutions also provides vital capital that startups can reinvest into boosting their local operations. Startups can generate higher revenues using the same resources by simply changing their area of focus.
Famodu warns that founders that intend to build global solutions must ensure they do not get distracted in the process.
“It's about evolution, not transformation. The best companies maintain their core while adapting their go-to-market strategy,” she says.
What do you have to offer as an African?
If you think your solutions are not suitable for the African market, Famodu advises that you think again.
African founders, she says, have something that western founders may be missing — resilience, adaptability, and the ability to develop innovative solutions in challenging environments.
“African founders often bring fresh perspectives to old problems. They're not bound by ‘this is how it's always been done’ thinking. They're building solutions for the future, not maintaining legacy systems.” Maya notes.
Perfectly timing your global move
Timing is crucial, but Famodu points out that there is no perfect time to go global. For some, scaling globally could come early in the process, while it could take longer for others. But she argues that “the right time to go global is when you’ve nailed your core operations locally.”
Some startups often make the mistake of going after global usage without perfecting their systems locally. And many times, this affects their business and, in extreme cases, can spell the end.
A strong foundation in a challenging home market can make you agile, innovative, and ready to scale anywhere. And if you are building a startup in Africa, you have adequate experience in building in challenging markets.
For startups, especially those in B2B SaaS, Famodu notes that thinking global early on is often the right move.
“You might actually be leaving money on the table by not thinking global early,” she says, adding that portfolio companies taking this approach are already raising at 2.5x higher valuations.
How to successfully go global
Having addressed the timing, the why, and the offering, here’s what you need to expand into global markets successfully.
Tackle market differences
Market differences when expanding into new markets are a no-brainer. They can often be the toughest hurdles to cross. So, here are a few tips that can help you cross that hurdle.
- Market research: Before launching in new countries, spend some time understanding customer behaviours and preferences. According to Maya, “One of our fintech portfolio companies spent three months just studying payment preferences in each new market before launch.”
- Adapt communication, not standards: Your product standards and quality must remain the same across board, but how you communicate with customers might need a local spin.
Leverage partnerships
Don’t underestimate the power of partnerships when expanding internationally. Some of the best alliances fall into three categories:
- Technical partnerships: Think AWS credits and developer tools
- Market access partnerships: Distribution deals or collaborations with local players can significantly reduce expansion costs and risks.
- Knowledge partnerships: Accelerators and industry associations are great resources for mentorship and guidance as you enter new territories.
Don’t get drawn into chasing partnerships with big names. The most impactful partnerships are those where both sides bring something unique to the table.
Phase your expansion
Expanding at a rapid pace can undermine even the most promising startups. Moving into multiple markets too quickly can lead to excessive cash burn, divert attention from essential operations, and overextend the team.
Hence, plan your expansion in phases. “Start with one new market, nail it, then move to the next. We've seen companies succeed by focusing on one new market per year, ensuring they have the resources and focus to win in each one.”
