The Impact of Technology on African Startups
We all know that technology has become the catalyst for innovation in Africa. Because of technology, Africa is rapidly emerging as a global hotbed of innovation, entrepreneurship, and technology-driven solutions.
Our continent, once perceived in terms of problems can now be referred to as a home of innovative solutions. But so many Africans still don’t see this!
That’s why we wrote this article – to show you how technology has impacted African startup hubs and why it is vital to the continent’s entrepreneurial future.
The Rise of African Startups
First, I would have you know that over the last decade, African cities have been solidifying their roles as hubs for innovation, investments, and top talent. Yes! There has been a major rise in the presence of African startups.
We have the cities of Lagos, Nairobi, Cape Town, and Cairo, leading the drive. All these cities have been empowered through emerging technologies to support entrepreneurs across Africa.
Why this rise though? We cannot discuss reasons without mentioning the major catalyst behind this rise.
Ever since there was a blowup in the availability of mobile internet and affordable smartphones, Africa’s tartup hub has been growing massively.
In fact, according to GSMA, over 500 million people in sub-Saharan Africa are mobile subscribers, and this number sees rapid growth.
Mobile Technology and Financial Inclusion
It’s no news that some parts of Africa suffer from the poor nature of banking infrastructures. African Entrepreneurs quickly recognized an opportunity here – to improve the lives of Africans, while making massive profits for themselves.
So, we started to see founders develop mobile money platforms like Opay, Kuda, Carbon, among many others. How does this help? Well, because of these platforms, millions of unbanked people can have access to financial services. But that’s not all the benefits!
For African startups, this revolution means that previously unreachable markets are now we’ll within reach. With platforms like Flutterwave and Paystack, business owners are able to conduct transactions, offer services, and expand their customer base even beyond urban centers. Ultimately, the rise of financial inclusion exists to simplify life and equally help rewrite Africa’s economic story.
Internet Penetration in Empowering Startups
Another game – changer? If you haven’t already guessed, it’s the rapid rise in internet usage in Africa. This blast has changed things especially for newbies starting businesses in the e-commerce line. With the internet, African entrepreneurs can now expose themselves to local and global audiences. In other words, they are no longer hindered by traditional barriers.
Take Jumia for instance, often referred to as “Africa’s Amazon.” It has given thousands of small businesses the ability to reach more customers beyond their neighborhoods. The numbers have only increased since the adoption of smartphones and affordable data plans. Now, consumers cans shop online conveniently.
In addition, technology innovation hubs and co-working spaces are sprouting across significant cities; they provide high-speed internet access to startups, resources, and a collaborative environment. These innovation hubs are essential in fostering innovation and creating networks among entrepreneurs and investors.
Digital Skills and Innovation
Digital skills – a term the average African youth is familiar with. The rise of digital skills training across the continent has caused a ripple effect in innovation. Now, we have a rapidly growing pool of tech-savvy entrepreneurs, leading African startups in creating solutions for unique challenges.
Look at Andela, a program that trains a generation of software developers, data scientists, and digital marketers. Programs like this are so important because they empower entrepreneurs with the skills to start a tech startup or contribute to an existing one.
These talents have lately been employed by startups in developing solutions for agri-tech, edu-tech, and health tech, among other areas. The entrepreneurs use technology to drive change in life-elevating inventions, from precision farming to mobile health clinics.
Overcoming Challenges
And even as technology begins to lead this growth, serious challenges continue to beset African startups. Infrastructure-related problems vary from erratic electricity to slow Internet access in some regions. Furthermore, several older regulatory frameworks have a bearing on the viability of startups.
However, governments are just about waking up to the reality that startups in Africa are a potential key driver of economic growth. Governments across the continent are trying to create more enabling environments through infrastructural development and refreshing policies to spur technology innovation.
Technology has dramatically reshaped the face of African startup hubs as a force that enables entrepreneurship and reshapes economies. Indeed, the rise in mobile technology, increased internet penetration, and growing investments are opening up African startups to create jobs, solve problems, and significantly increase the continent’s economic growth.
African startups are positioning themselves as essential actors in the world economy to keep innovating. As technology continues to dent every aspect of life, the startup scene in Africa has just about gotten into the mainstream of global entrepreneurship.
Read inspiring success stories like Wasoko’s here
