By: Folajomi Adegbulugbe
The startup ecosystem in Africa is rising at an increasingly alarming rate. This can be attributed to the remarkable productivity of diverse young and skilled business owners across the continent. These entrepreneurs are consistently leveraging technology to solve everyday problems such as mobile banking, digital health services, and more for millions.
And today, several popular companies have proven the testament that Africa has what it takes to create billion-dollar businesses. Take for instance, Flutterwave, and Paystack – companies making waves in the financial sector in Africa. This is why for persistent and consistent growth in the startup ecosystem to happen, we have to pave the way for more local investments. Additionally, we also need to have committed startup incubators to keep supporting the next generation of innovators.
In other parts of the world, several startups focus on convenience, unlike Africa, where startups are usually focused on solving critical issues. These issues include agriculture, financial inclusion, and healthcare. This is why there are various mobile money platforms in Africa today. Take, for instance, M-Pesa. M-Pesa has not only revolutionized the banking industry but has also given millions access to financial services without needing to have a traditional bank account. Additionally, Agritech startups like Thrive Agric in Africa today are helping farmers to improve their productivity by utilizing better data and digital tools, while the e-commerce platforms are also connected to small businesses so that their customers beyond their local communities can benefit from it too.
This problem-solving approach is the major reason Africa’s startup ecosystem is growing so fast. The great part is that African entrepreneurs are not just building businesses, they are evolving the face of industries and transforming lives positively.
Even global investors have taken notice of the booming ecosystem on the continent and are pouring their billions into these startups. Technically, most of this money comes from outside Africa, which can create a challenge, especially when these international investors pull back, perhaps as a result of global economic shifts. When this happens, many startups might find it hard to stay afloat.
To ensure the existence of long-term growth in Africa, the continent will need more local investors. This is a great investment opportunity for wealthy individuals, banks, or pension funds. Governments also have a role to play by offering tax breaks and policies that can encourage local funding.
The efforts of incubators and accelerators in Africa’s startup ecosystem cannot be undermined as they are crucial in turning simple, great ideas into successful organizations. They are ready to provide mentorship, funding, and office space to help startups grow. Additionally, they help these startups dodge common pitfalls and teach them how to tackle challenges such as policy regulations and market expansion.
One example that stands out is “The Hive Incubator.” As an accelerator, it helps early-stage businesses refine their ideas to attract investors and, ultimately, scale up. Other similar hubs, such as MEST Africa, CcHub, and Startupbootcamp Africa, are creating environments where entrepreneurs can learn, work together, and get the support they need.
I believe that for the startup ecosystem to keep thriving in Africa, the following key things need to happen: We need more African investors to back our homegrown businesses. This will ensure that the ecosystem remains sustainable even if global funding slows down or ceases. Startups must aspire to scale beyond their home countries, tap into Africa’s vast market potential, and, if possible, plan to expand globally. Governments should focus more on education and training to equip young Africans with the skills they require to run and grow successful ventures.
Africa is on the edge of producing more billion-dollar companies, and I believe that with the right support, the startup ecosystem of the continent will not only survive but will also compete on the global stage.
About the Author
Folajomi Adegbulugbe is an accomplished entrepreneur and business leader with a proven track record of building and scaling ventures across various industries. As Director of Alles Charis Gas Limited, he grew the company to over 250 employees and 12 LPG retail outlets nationwide. He co-founded Pristin Capital, launched successful startups like Jo’s Buffet and Gasify, and now leads The Hive Incubator, supporting startups in Akure. Armed with dual Master’s degrees in International Business and Finance and currently pursuing an MBA at Imperial College London, Folajomi brings strategic insight and innovative thinking to business, investment, and mentorship. Passionate about teaching and collaboration, he is dedicated to helping others unlock their potential and drive meaningful impact.
For more information, check out their LinkedIn profile and Instagram.
