African start-ups reach global scales

As the landscape of entrepreneurship in Africa continues to evolve, there is a growing trend of African start-ups reaching global scales. Sneha Shah, a Board Member at the African Leadership Foundation and former Head of Thomson Reuters in Africa, recently sat down with CNBC Africa to discuss the exciting developments in the start-up ecosystem on the continent. Shah, who has spent 21 years in a corporate career, made the decision to dedicate more of her time and attention to working with entrepreneurs in Africa, helping them scale globally. One of the key points Shah emphasizes is the transformative power of entrepreneurship in Africa. She firmly believes that entrepreneurship is the answer to many of the continent's challenges. Shah has witnessed the impact of African start-ups first-hand and highlights the shift from focusing solely on solving African problems to addressing global issues as well. She points to the success of African start-ups like Go One, a South African e-learning platform that has expanded globally and is now a unicorn in the industry. Financial inclusion, particularly in the fintech space, is another area where African start-ups are making a significant impact. Shah highlights the Silicon Cape as an untold success story and emphasizes the importance of solutions like MarketForce in Kenya, which connect SMEs with inventory goods and payment platforms, enabling financial access for underserved communities. In addition, start-ups in Cape Town are working on various solutions, from logistics to healthcare access, contributing to economic growth and financial inclusion. The influx of funding into African start-ups is unprecedented, with record numbers being raised in recent years. Shah points out that in 2019, $1.4 billion was raised, increasing to $4.1 billion in 2021. The growth in start-up funding in Africa outpaces other emerging markets, with a 125% year-on-year increase in Q2 this year. However, she acknowledges that there are still challenges in fundraising, particularly for women founders who face significant disparities in funding compared to their male counterparts. The relationship between the US and Africa is also evolving, with a shift towards more collaborative and supportive investments. The Biden administration's focus on Africa and the presence of seasoned Africa experts in key positions are paving the way for increased US investment in African start-ups. Similarly, African companies are recognizing the global potential of their solutions and are looking to the US market for expansion opportunities. In conclusion, Shah's insights shed light on the dynamic and promising landscape of entrepreneurship in Africa. With a growing focus on global scalability, financial inclusion, and collaborative investments, African start-ups are poised to make a significant impact not only on the continent but also on a global scale. The future looks bright for African entrepreneurship, fueled by innovation, resilience, and a commitment to solving complex challenges.