Technology Technology Trends

Why a wave of technology giants will come from Africa

Ian Lessem, Managing Partner at HAVAÍC, investors in early-stage, high-growth technology businesses, notes a significant increase in investment demand for African technology startups.

He says startups on the continent are at a distinct advantage because they compete out of necessity. As a result, they can, and very often do stand toe to toe with startups in more the established tech hubs of Palo Alto, Singapore, London and Tel Aviv. “African innovators face local challenges so pervasive; they simply have no choice but to tackle them head on and become subject matter experts in finding solutions for real world problems like food security, health, education, safety, financial services and logistics.”

Lessem adds that African technology driven solutions borne out of necessity create efficiencies, new products and opportunities, and most importantly solve local challenges that resonate globally. Because of this they have the inherent ability to leap across national boundaries and sidestep the usual rules of cultural friction. “With the world having quickly adjusted to the realities of the ongoing global social and economic crisis as a result of the Covid-19 pandemic, solutions that solve real world challenges are without a doubt the best opportunities for growth. People and businesses are craving solutions that make their day to day lives easier, better and less frictional, and the pace at which they are adopting technology to do this continues to accelerate.”

Not only does HAVAÍC support promising startups, it also understands the power of unlocking the potential of Venture Capital (VC) as an investment class in Africa. Investing in African startups offers the opportunity to invest in real-world businesses solving real-world challenges, and the chance to invest in a sector that offers undeniable growth prospects. “While it seems unlikely that the greatest contributions to and innovations in biotech or space travel will emerge from Africa, African founders are paving the way when it comes to creating commercial and innovative solutions to local challenges that also have global relevance. And, crucially, when coupled with technology they can scale quickly on home ground and abroad,” says Lessem.

In contrast to tech hubs in developed economies where there is an abundant supply of available capital for startups and entrepreneurs, Lessem says scarcity of financial resources in Africa does little to limit the potential, and indeed the success, of startups in South Africa, Kenya, Nigeria, and Egypt. “The hidden advantage in this scenario is that African entrepreneurs and startups self-fund and bootstrap for as long as possible. This translates to founders having a sharp focus on creating commercially successful business from the get-go. And because it’s their time and money at risk they have no choice but to make a success of it. Underpinned by commercially viable business models, African startups are tested in uniquely challenging conditions, become experts in their field, and this breeds a unique resilience which gives them an edge as they seek to enter international markets.”

Says Lessem: “The mettle, know-how and ingenuity of African businesses is evident in cases like Flutterwave becoming the continent’s most recent tech unicorn, but also within HAVAÍC’s own portfolio of startups, including South Africa’s hearX which concluded a landmark distribution agreement in the United States to roll out their AI -powered hearing aid in 39,000 retail stores, or Tanda in East Africa, who with their cash technology solutions and distribution network in the informal sector literally tripled the number of “ATM’s” in Kenya overnight.”

With African businesses continuing to punch well above their weight, proving their ‘right to play’ and their potential to scale domestically and internationally, Lessem says it is an exciting time to be part of the African VC environment. “The attitude of supporting local while acting global also has the positive consequence of developing the early-stage ecosystem overall. By attracting foreign capital international partners, local entrepreneurs and their communities thrive, which is critical for Africa’s economic growth. With all this in mind, it is clear that the next startup wave is set to come from Africa.”

Leave a Comment

Your email address will not be published.

You may also like

Business Economy

The Art of Investment: The rise of African art (By Ngozi Akinyele)

post-image

By Ngozi Akinyele, Chief Marketing and Communications Officer, Coronation Group (www.Coronation.ng)

 

A diversified portfolio is one of the key metrics of investment success. The greater this diversity, the more likely it will outperform the market, and the savviest investors are often looking for new opportunities: the rising stars among new asset classes. Investment in art is certainly not a new concept, but what makes it unique is that it often has low correlation with other major asset classes, meaning lower overall price volatility (https://apo-opa.co/3UpJknE). It’s the sure bet, sometimes with incredible escalating value, especially for those opting to invest in blue-chip artists (https://apo-opa.co/3Uq6YQQ) renowned artists whose work demands high prices in the art market).

However, not all of us can afford to invest in the works of Picasso, Van Gogh, or Warhol, with many blue-chip pieces only accessible as…

Read More
Business Culture Economy

From Tech Addiction to Surviving Conflict: Global Conference in Doha Explores the Challenges Facing Arab and Global Families

post-image

Policies to protect families in countries affected by conflict, the global impact of population decline, and striking a balance between work and family life were placed in focus at the 30th Anniversary of the International Year of the Family Conference on Family and Contemporary Megatrends.

 

Organized by Qatar Foundations Doha International Family Institute (DIFI), in partnership with the Ministry of Social Development and Family, the Ministry of Foreign Affairs, and the United Nations Department of Economic and Social Affairs (UNDESA), the conference brought together more than 2,000 experts and policymakers from around the world to explore key trends affecting families, and policies and programs that strengthen the familys place at the heart of society.

 

The conference was attended by eminent figures from across the Arab world including Her Excellency Shanaz Ibrahim Ahmed, First Lady of Iraq; Her Excellency Maya Morsi, Minister of Social Solidarity, Egypt; Her Excellency Dr. Amthal Hadi Hayef Al…

Read More
Business Economy Education Government Investments Technology Technology Trends

Nigeria Secures N2.8 Billion Google Investment to Boost Digital Economy and AI Development

post-image

 

Dr. ‘Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, announced a significant N2.8 billion commitment from Google, aimed at accelerating Nigeria’s digital economy through strategic initiatives outlined in the ministry’s Strategic Blueprint. The announcement was made alongside Google’s President of EMEA Business & Operations, Matt Brittin, as the tech giant pledged to support Nigeria’s technological transformation.

Dr. Tijani highlighted four major initiatives that Google’s investment will fuel:No alternative text description for this image

  1. DeepTech Ready Upskilling Programme: Designed to enhance advanced technical skills, this program aligns with Nigeria’s 3MTT initiative, aiming to equip 20,000 Nigerians with expertise in Data Science and Artificial Intelligence (AI).
  2. Experience AI Programme: Targeting young learners aged 11-14, this initiative, co-developed with the Raspberry Pi Foundation and Google DeepMind, seeks to introduce AI fundamentals across Nigerian schools. Through this program, Google will train 25,000…
Read More
Business Culture Economy

Sanâa Kiadi Reflects on Participation in IOM Workshop on Migration Data in Rabat, Morocco

post-image

Sanâa Kiadi, a distinguished Global Strategist and International Executive, recently had the honor of representing the African Migration Observatory (AMO) at the Sub-Regional Workshop on Migration Data and Research, which took place on October 16th and 17th in Rabat, Morocco. This significant event was organized by the International Organization for Migration (IOM) in collaboration with the Government of Morocco, bringing together key stakeholders dedicated to advancing the understanding of migration dynamics in the region.

During her participation, Kiadi presented AMO’s mission, which is focused on enhancing migration data collection and analysis across Africa. Her presentation underscored the importance of establishing robust data systems that inform evidence-based migration policies. “Accurate and comprehensive migration data is essential for shaping policies that address…

Read More
Business Economy Energy Environment Government

Rivers State Governor Sim Fubara Shuts Down NNPC and Oil Companies, Proclaims “No Allocation for Rivers State, No Oil for Nigeria”

post-image

In a bold and unprecedented move, Rivers State Governor Sim Fubara has ordered the shutdown of the Nigerian National Petroleum Corporation (NNPC) and all oil companies operating in the state. His declaration, “No allocation for Rivers State, no oil for Nigeria,” reflects a deep frustration over what he perceives as the unfair distribution of oil revenues.

This decisive action has sent ripples through the nation, resulting in Nigeria’s global oil production ranking plummeting from 4th to 24th almost immediately. Governor Fubara’s stance not only puts the spotlight on the importance of Rivers State to Nigeria’s oil supply but also raises questions about the broader implications for the economy and energy sector.

In a heartfelt challenge to influential leaders, including Minister Nyesom…

Read More
Business Economy News Opinion

The business case for automating customer due diligence and FICA compliance

post-image

By Sameer Kumandan, MD of SearchWorks

 

Automation has been labelled as a way to tighten up the corners, without cutting them. An apt description, it’s all about using technologies to up productivity, boost efficiency, reduce errors and save businesses a lot of time without having to make any sacrifices when it comes to quality or performance.

 

Customer Due Diligence (CDD) plays a critical role in mitigating financial crime risks by helping businesses establish that their customers are not involved in illegal activities and that they are who they say they are. In addition, CDD is essential to ensure compliance with South Africa’s Financial Intelligence Centre Act (FICA). And it’s not a one-time activity. Ongoing monitoring is vital to keep close tabs on how a customer’s circumstances and activities change over time. This is important, because risks evolve over time and because of the rise of what

Read More
Business Culture Economy Health

The Heart of Moppet Foods: How Loyal Customers Like Marian Are Building a Nigerian Brand Together

post-image

 

When Roberta Edu launched Moppet Foods, a locally-produced baby food brand, she hoped parents across Nigeria would find value in a nutritious, homegrown option for their babies. But what she didn’t expect was the level of passion and loyalty she’d see from her customers—people who believe in her brand so deeply that they’ve become its unofficial guardians.

Recently, Edu shared a story about one of her most devoted customers, Marian, who lives in Akoka and buys Moppet baby food from the Justrite store in Bariga. Marian’s dedication goes far beyond simply picking up a carton of baby food; she’s become almost a part of the Moppet team. “The way she looks out for us—it’s something I can’t even describe,” Edu said.

Marian has taken it upon herself to monitor Moppet’s stock levels at the store, as if the brand were her own. Every time she’s at Justrite, she’ll check the shelves,…

Read More
Announcements Business Culture Economy

Umo Eno: Akwa Ibom Embarks on 18-Storey Ibom Towers Project in Lagos to Drive Economic Diversification

post-image

 

Akwa Ibom State has launched a notable development initiative outside its borders, breaking ground on an 18-story building, the Ibom Towers, in Lagos. The project has stirred discussions around its location, with some questioning why the state would invest in infrastructure outside Akwa Ibom. Governor Umo Eno clarified the motivation behind the decision, describing it as a strategic move aimed at diversifying Akwa Ibom’s economy and establishing new revenue sources.

Speaking at the groundbreaking event, Governor Eno stated, “Today, as part of our efforts to diversify Akwa Ibom’s economy, we marked the groundbreaking of the 18-story Ibom Towers in Lagos. This project, expected to be completed in 24 months, will drive substantial revenue growth and economic ties between Akwa Ibom and Lagos States.”

The governor extended gratitude to Lagos State Governor Babajide Sanwo-Olu, who led the ceremony, as well as to former Akwa Ibom Governors Udom Emmanuel, CON, and Obong Victor…

Read More