intelligent

He said start-ups on the continent are at a distinct advantage because they compete out of necessity . As a result , they can , and very often do , stand toe to toe with start-ups in the more established tech hubs of Palo Alto , Singapore , London and Tel Aviv . He added : “ African innovators face local challenges so pervasive ; they simply have no choice but to tackle them head on and become subject matter experts in finding solutions for real-world problems like food security , health , education , safety , financial services and logistics .”

Lessem said that African technology driven solutions borne out of necessity create efficiencies , new products and opportunities , and most importantly solve local challenges that resonate globally . Because of this , they have the inherent ability to leap across national boundaries and sidestep the usual rules of cultural friction . He added : “ With the world having quickly adjusted to the realities of the on-going global social and economic crisis as a result of the COVID-19 pandemic , solutions that solve real-world challenges are without a doubt the best opportunities for growth . People and businesses are craving solutions that make their day-to-day lives easier , better and less frictional , and the pace at which they are adopting technology to do this continues to accelerate .”

Ian Lessem , Managing Partner at HAVAÍC

Not only does HAVAÍC support promising start-ups , it also understands the power of unlocking the potential of venture capital ( VC ) as an investment class in Africa . Investing in African start-ups offers the opportunity to invest in real-world businesses solving real-world challenges , and the chance to invest in a sector that offers undeniable growth prospects . “ While it seems unlikely that the greatest contributions to and innovations in biotech or space travel will emerge from Africa , African founders are paving the way when it comes to creating commercial and innovative solutions to local challenges that also have global relevance ,” said Lessem .

In contrast to tech hubs in developed economies where there is an abundant supply of available capital for start-ups and entrepreneurs , Lessem said scarcity of financial resources in Africa does little to limit the potential , and indeed the success , of startups in South Africa , Kenya , Nigeria and Egypt . “ The hidden advantage in this scenario is that African entrepreneurs and start-ups self-fund and bootstrap for as long as possible . This translates to founders having a sharp focus on creating commercially successful business from the get-go . And because it ’ s their time and money at risk they have no choice but to make a success of it . Underpinned by commercially viable business models , African start-ups are tested in uniquely challenging conditions , become experts in their field and this breeds a unique resilience which gives them an edge as they seek to enter international markets .” �