The scramble for Africa 2.0: An introduction
This article is part of a series entitled “The scramble for Africa 2.0”. In this series, I share my thoughts about the current startup landscape in Africa and the role of Western companies in shaping the growing startup ecosystem in the continent. I will also examine the causes for the success of African startups and why they have been able to raise millions of dollars in funding.
Disclaimer: The ideas expressed in the articles are merely my opinions formulated through research and my experience, as well as the experience of friends who are startup founders in Africa.
We have all heard about the anticipated economic boom in Africa as the continent races to catch up with the 21st-century technologies in the rest of the world. Today it is evident that Africa is, in fact, in its stage of exponential economic growth. The rise of technology startups is fueling this economic expansion. African technology startups are revolutionizing the technology landscape in the continent and creating jobs for thousands of young professionals. If you follow Techpoint Africa on Instagram, you know that week after week, there is a new post about an African startup that raised millions of dollars in capital investment. We can easily conclude that it’s a bright age for the motherland but is it?
The truth about Africa is that it’s not a poor continent; never been. So as you go through this article, you may need to flush out the stereotype of a poor Africa. Africa is a rich continent in minerals and natural resources, which are the drivers of economies worldwide. However, the sad tale of Africa is that it has never owned its wealth to enable its development and the enrichment of its people. The scramble for Africa, which started in the late 19th century, saw the West and Europe sending their sons and daughters to colonize Africa and take ownership of its wealth. Today colonialism has ended, but the continent is still suffering from the repercussions of the colonialist period in terms of poor political, social, and economic development. Corrupt leaders and irresponsible governments, bred by colonialism, continue to lead African countries under the mercy of the West.
The rise of technology startups is a welcome development and a key solution to Africa’s economic problems. However, it has led to a second scramble for Africa, which I like to call “The scramble for Africa 2.0”. The African startup ecosystem is attracting worldwide attention because of its potential to provide solutions to some of Africa’s most pressing problems. Like the first scramble for Africa that led to the continent’s colonization, this new scramble is a battle for control and ownership; this time, it’s about the right to technology and Africa’s market. The question remains: How can African-founded startups compete with well-funded startups by foreigners? Food for thought.
In the next article, I will explore the current reality for African startups with the competition from foreign startups in the continent.
