African tech start-ups faced funding gaps as well as other market failures

Technology has the potential to transform Sub-Saharan Africa for the better. However, this requires a thriving entrepreneurial ecosystem. Frontier has examined the barriers faced by tech start-ups in Sub-Saharan Africa for the Africa Technology Business Network (ATBN).

Drawing on qualitative engagement and existing evidence the report concludes that:

  • Additional capital is needed to help overcome significant funding gaps faced by tech start-ups in the region. Current shortfalls are exacerbating other barriers such as broadband availability and recruitment of highly skilled employees.
  • Extra funding alone is not sufficient to ensure more successful tech start-ups emerge from Sub-Saharan Africa. Some less experienced entrepreneurs also require guidance in navigating unfamiliar markets. There is an opportunity for them to learn from other start-ups via a mentoring system.

The report was launched today at a round-table event hosted by Frontier and attended by representatives from the public sector, start-ups, funders and tech hubs.

A summary of key findings are available for download below.

Frontier regularly collaborates with charities and charitable organisations in the UK and all over the world.

For more information, please contact media@frontier-economics.com, or call +44 (0)20 7031 7000.

 

 

Early stage investment in sub-Saharan Africa's tech sector