The Buzz, the Fuss and the Fugazzi : Maximizing technology investment in Africa
Recent years have seen a rise in the number of startups and capital investments in Africa's technology sector, reflecting the continent's increasingly dynamic business environment. While this expansion is encouraging, it's important to find a happy medium between basking in the glow of success and keeping an eye on the long game of sustainable growth. Let me however quickly give a shout-out to all the true builders out there who are digging it out everyday towards sustainable growth and impact.
The Allure of Quick and Easy Victory
Rapid expansion, abundant wealth, and widespread acclaim are common themes in the inspiring tales of entrepreneurial success. However, it is crucial to differentiate between actual development and merely apparent success. In an old article, I described two business owners who, after receiving a large investment, buying new vehicles and homes, and giving numerous speeches as ecosystem mentors, went out of business in a matter of months. Although it is appropriate for business owners to reap the benefits of their efforts, it is essential to keep the long-term health of the enterprise in mind.
Scaling with Purpose
The temptation to put short-term gains ahead of long-term sustainability is a major issue in Africa's tech ecosystem. Last year, I had the opportunity to mentor a startup's founder as part of a programme; during our time together, he expressed reluctance to aggressively scale his solution. His only goal was to find some financial backers, cash out and move on to another venture. This is a striking illustration of this way of thinking, career startupers. There is always some degree of uncertainty at the outset of a new business venture. Therefore, business owners must consciously work to increase the value of their investments.
Going Past the Background Noise
Making a fuss for the sake of it is becoming a thing of the past. Serious preparation and strategic implementation are requirements in today's technological environment. Entrepreneurs and investors alike need to put a premium on careful analysis, market research, and product-market fit rather than being swayed by trends or seeking quick wins. For Africa's tech industry to thrive even further, there must be a shift towards long-term, sustainable solutions that meet real needs.
Oluwaseun David ADEPOJU
www.davidadepoju.com