Even before the pandemic hit, the journey has never been easy for entrepreneurs. But there’s this thing called the “African Dream”. It speaks of a better future, and looking into the ecosystem new businesses amid the pandemic are working round the clock sourcing for funds to provide sophisticated services and delivery of products across the continent and overseas.
From 2020 to 2021, we’ve seen African startups diversifying, re-strategizing, and collaborating with local and international firms and investors to stay strong and add value in the market. Fintech companies across the continent are good example of effective collaborations that attracted foreign investments targeted to improve payment systems.
International Investors vs Local Investors
Getting capital isn’t a smooth ride for African startups and young entrepreneurs. It appears that a good number of African startups get funded by international investors from the U.S among others. The financial support is mostly external. Although, some local investors are doing well to support African startups providing much-needed funding in their early stage.
FirstCheck, which is an African firm funding startup, is one to mention as well as other capital firms such as Voltron Capital and LoftyInc Capital placing laser-focused eyes to grow startups on the continent. Successful fintech founders in Nigeria, the most populous country in Africa, are also investing in startups to show their support in springing up more innovators.
So, what does the future holds for African startups?
We can point out indicators of what the future may look like for young entrepreneurs and early-stage startups. With consistent support from both international and local investors, the ecosystem would likely continue to have a positive paradigm shift to create more rooms for investments and boost employment rate despite the wild global economy still suffering from the hit of the pandemic.