Microsft’s Awosika on how to sustain & scale up start-ups in Africa

In recent years, Africa has emerged as the next frontier for start-ups, with a surge in innovation and entrepreneurship driving economic growth and job creation, particularly among the youth. Despite the continent's potential, the African start-up market still represents less than 1% of total investments worldwide. However, Microsoft's Kunle Awosika, Director for Small and Medium Corporates in Emerging Markets, believes in the untapped opportunities that lie within the African start-up ecosystem. In a recent interview with CNBC Africa, Awosika discussed the challenges and strategies for sustaining and scaling up start-ups in Africa. According to Awosika, there is a growing trend of successful African start-ups, with unicorns like Flutterwave, Interswitch, and Opay making waves in sectors such as FinTech. The potential is evident, but only a fraction of the funding is currently directed towards African start-ups. In 2021, the continent received approximately $4.6 billion in start-up investments, highlighting the immense growth opportunities within the sector. Awosika emphasized the importance of addressing Africa's societal challenges through innovation and technology, particularly in sectors like FinTech, AgriTech, Biotech, and HealthTech. Microsoft acknowledges the need to engage with stakeholders and support the growth of the start-up ecosystem in Africa. One of the key challenges highlighted by Awosika is the lack of domestic investment in African start-ups. While foreign investors from the UK and the US have shown interest in funding African start-ups, local investors are yet to fully tap into the potential of the continent's start-up ecosystem. Awosika stressed the importance of showcasing the opportunities within the African market to attract more local investors. Microsoft aims to play a significant role in enabling the growth of African start-ups through its Africa Transformation Office. The company plans to create opportunities for 10,000 start-ups over the next five years, focusing on scalability and sustainability. Awosika outlined four key areas that need to be addressed to support the growth of African start-ups. Firstly, providing access to the right technology, particularly cloud technology, is crucial for scaling businesses across multiple markets. Secondly, facilitating market access for start-ups to expand beyond their local regions is essential for long-term success. Thirdly, addressing the funding gap and providing access to venture capital funding is critical for the growth of African start-ups. Finally, skill enablement through training and mentorship programs is key to building a talent pipeline and supporting the development of technical skills within the start-up ecosystem. Microsoft's commitment to unlocking innovation, providing technology benefits, and offering mentorship through programs like Microsoft for Startups Founders Hub demonstrates the company's dedication to supporting the growth of African start-ups. By addressing the challenges and implementing strategic initiatives, Microsoft aims to contribute to the sustainability and scalability of African start-ups, unlocking their full potential and driving economic growth across the continent.