The Economist's Perspective on Building Tech Companies in Africa

Wander the streets of any big African city and it soon becomes clear that a lack of enterprise is hardly the problem. In Nairobi’s biggest slum, Kibera, the narrow dirt streets bustle with businesses charging phones from generators; running tiny cinemas showing Premier League football on satellite TVs; and selling solar panels. What you won’t find are clean toilets, potable water or anyone earning much over a few dollars a day. The main leapfrogging that takes place is over the open sewers. That is not something you can fix with a mobile-phone app.

.

African tech types often think they can quickly copy rich-country products and sell them to the urban middle class. But then they discover that there is no getting around complex tax laws, a dearth of engineers and fragmented markets. The Western investors who back them have even less grasp of just how dysfunctional basic infrastructure can be, notes Ory Okolloh, a Kenyan investor and a political activist. All the evidence suggests that technology firms are no better at leapfrogging such hurdles than, say, a carmaker. The only part of the continent with a mature tech scene is South Africa: a country which also has good roads, reliable power and plenty of well-educated graduates.

2 Likes

Tell us something we don’t already know.

A revolution, they say, starts in the mind.

The paradox in that story is that in spite of the fact that many African countries have been beset by poor governance for several decades, the modern technology that can empower each individual in spite of the government’s failures is now cheap and ubiquitous but we are still unable to utilise it to free ourselves, hence the frustration conveyed by the Economist.

Regardless of the riches under its soil, unfortunately Nigeria is at its heart a very poor country where it matters most - self-awareness, big dreams, and critical thinking. The stuff that created the empires we flock to.

Having said that, and not to put too fine a point on it, you can’t reasonably expect a hungry man to think more than one meal ahead, or as a friend recently put it, “They have put us in a place whereby the youth are thinking of survival rather than political office”. A quote so powerless as it is heartbreaking.