Africa is expected to see further investment into their technology start-ups throughout 2014, but that’s mainly due to the fact that the entire world is seeing a bit of a boom in that regard. But Africa, despite having some great tech start-ups is lagging behind the rest of the world when it comes to funding. That’s because of the nature of their products.
Right now, most of the tech start-ups focus on regional, or even more local development focuses. They don’t have the broad global appeal to make them major world winners, and to draw more attention to that cause. That’s why what Africa really needs, is that one major global winner.
Something that the entire continent can have as an example of what the company can bring to the world, in terms of technology.
Another big aspect are the local banks holding them back. Finding funding is always difficult, but that’s made even worse by banks in Ghana, which feature a 28% interest rate on these types of business loans. That’s keeping plenty of companies out, that desperately need funds to continue their work.
Despite the fact that there are plenty of advantages in Africa, if some investors would notice those. Like the most cheaper cost of labor, so that you can stretch those investment funds much further. Plus the continent is on the same time zone as Europe, allowing for more easy integration into the global economy.
But a lot of Africa’s success needs to come from African entrepreneurs and their commitment to making their products appealing on a global scale. That means traveling to major technology hubs like Silicon Valley, and London, where they can showcase ideas and attract those world investors. That will help the benefits of investing in Africa shine through.