The African continent is living a digital and social renaissance and experiencing a decade of increasing economic growth, where the middle class population is also increasing and IT infrastructure is much more developed and available than what it used to be only five years ago. One of the biggest phenomena that is occurring is the technology startup boom that is showing a promising future for African entrepreneurs, as they keep receiving funds from international investments that are continuously showing interest for more. There is a speculation saying that Africa might be the next biggest startup hub, and this is something that is becoming more of a reality every day, with three industries that are leading the activity and trends, such as e-commerce, mobile and “Edtech” (education technology). The rapid evolution for startups in Africa is mostly attributed to the expansion of the mobile and internet market throughout the entire continent and this is something big that international companies, investors and universities are keeping an eye on.
One of the most interesting things about this rapid startup evolution in Africa is that ideas are becoming real solutions for real problems that are not limited to simple issues people may encounter, but to real issues that are essential to be eradicated such as poverty, lack of education or the access to it, lack of technology, power cuts, addressing and location difficulties. These are just some of the subjects the new entrepreneurs are attacking and investors are willing to help with, and that is why Africa will be facing a brighter future very soon.
Here are the 5 biggest reasons why Africa is in the scope of investors throughout the globe.
Population and workforce growth
Africa has a population of more than 1.2 billion people, which keeps growing more than 2% every year. This means the workforce will also be bigger and this is a very important resource for emerging economies. Africa´s young population gives the continent the chance to ensure a prosperity in the coming years, if the right education and skills are offered and developed among them. The world has 12 fast growing countries in terms of population. Six of those are part of the African continent. This means there is a lot to do there and to make the most out of it.
Infrastructure improvement has been the focus of countries like Kenya, Ethiopia and Uganda. Power generation and telecommunications are the first priorities and considered to be the basic resources for the development a country needs in terms of technology, education and economy. The social development will be therefore also empowered and these better life conditions will be responsible generating a better environment for people to grow, learn and prepare themselves for the new promising Africa.
In the same way population is growing, so is the consumer base in Africa. Middle class is increasing, which means the amount of possible consumers is also increasing. According to the African Development Bank, there are more than 123 million people in Africa that are considered having a stable middle class condition. This number is the 13% of the entire population, which is very interesting for new businesses and investors, because of the potential it represents for their present and future sales.
African countries are finally understanding the importance of education and what it represents for the future development of their economies. The level of education is improving and more people are getting secondary and tertiary education. There is more access to scholarships and access to superior education for those who are showing real entrepreneur and leader characteristics, which are needed for the business and the economy of the Africa of future generations.
Leadership is becoming a trend in young people
Due to the high and increasing amount of young people in Africa, the amount of young new leaders is also growing. Young generations are representing important business initiatives that are driving the economy. Only in Kenya, 60% of the population is 25 years old or younger. Young leaders are becoming great influencers in education as well as in the socio-political environment, and the most disruptive ideas for startups and new technology projects that are being developed and applied to society have also been created by young minds of Africa.