Building Multi-Generational Tech Ventures in Africa
Eric Osiakwan and Yaw Owusu
When we look at established companies like General Electric, Coca Cola, and Colgate-Palmolive, we see businesses that have stood the test of time and remained competitive for over a century. In Africa, however, the story is quite different. Less than one percent of businesses founded on the continent outlive their founding generations. Why is this the case?
One of the main reasons is that African entrepreneurs often lack a long-term vision for building businesses that can last for generations and expand into multiple countries. Even when they do have this vision, they struggle with the planning and execution needed to achieve pan-African domination or global leadership in their niche markets.
However, there is hope on the horizon. The current crop of African tech founders is showing a different mindset. They are shifting from consuming technology from the West to creating technology that solves critical problems in Africa and can rival or surpass their Western counterparts. This paradigm shift is laying the foundation for a new trend in African tech entrepreneurship.
Another factor contributing to this shift is the development of technical skills and business acumen among the millennial generation in Africa. Many of these young entrepreneurs are starting businesses in industries they are new to, without the generational history of entrepreneurship or technical knowhow. Despite this, they are dreaming big and taking bold steps towards building multi-national tech ventures.
One inspiring example is Cellulant, founded by Ken Njoroge and Bolaji Akinboro in 2002. Their vision and determination to build a pan-African business that would outlast them have led to the success of Cellulant as a leading fintech company operating in 35 African countries. Today, there is a second generation of leaders running the business, a testament to their long-term vision.
With the African Continental Free Trade Area (AfCFTA) creating a common market in Africa and a growing middle class that is hungry for technology solutions, the conditions are ripe for African tech entrepreneurs to thrive. The projected growth in intra-African trade and consumer spending offers a promising environment for building multi-generational multi-national tech ventures in Africa.
