The world’s second-largest continent is all set to become the next technology epicenter of the world. Here are five reasons why Technological startups are the next big thing in African entrepreneurship.
Here’s What You Need to Know
Mini Silicon Valley’s already present
Africa is home to modern metropolitan cities likes Europe and the United States. Tech hubs and incubators are springing up all across the continent in Cities like Lagos (Nigeria), Accra (Ghana), Johannesburg (South Africa), and Nairobi (Kenya).
The biggest of the Silicon Valley is based in Lagos, followed by Johannesburg. As Africa becomes more and more developed, it is producing IT specialists at an impressive rate.
Availability of Internet and Smartphones
The internet and Mobile Phones users are vastly present in most African countries. In modern countries like Nigeria, Morocco, South Africa, and Egypt, over 90% of the population have access to Mobile Phones and the Internet.
However, it is essential to note that there is low penetration of the internet and mobile phones in some regions, especially in Sub-Saharan Africa, but the scenario is radically changing. According to GSMA, 46% of the population in Sub-Saharan Africa has access to mobiles and the internet. Hence, the internet and mobile services available to a massive chunk of the people translate into a vastly untapped market that benefits from plenty of digital products.
Young Tech-Savvy Generation
Africa is home to more than a billion people. According to the United Nations (UN), Africa has the world’s youngest population, with more than 70% below thirty (30). This means that the continent has a vast potential to grow in terms of young and tech-savvy minds ready to revolutionize the continent.
Millions Of Untapped Opportunities
As mentioned earlier, Africa has a vast untapped market for digital services. African entrepreneurs need to explore services like online ride-hailing, online delivery services, most popularly known as Now Commerce.
Within increasing growing number of cities and hence businesses. Digital financial services (fintech) need to be explored in various parts of the continent as most of the transactions in the continent still occur in cash due to an underdeveloped financial system like banks. Perhaps African entrepreneurs’ most significant advantage is that digital services are already modeled and successfully working in developed countries. They need to replicate and modify the systems according to the needs of the locals.
Developers in Ghana created a messaging application for feature phones. That application widely relaced text messages in Africa as well as other parts of the world. According to Forbes, in 2014, the app was acquired by an American firm for a hefty amount.
Apple acquired another mobile navigation application called Hotstop for 1 billion US Dollars. The app was implemented in the American Giant’s own Apple Maps.
These stories are only the tip of the iceberg. With a sizeable tech-savvy population, highly competent developers, and a massive untapped market, it is inevitable for Tech to become the next big thing in African Entrepreneurship.