Close Menu
Innovation Village | Technology, Product Reviews, Business
    Facebook X (Twitter) Instagram
    Friday, June 20
    • About us
      • Authors
    • Contact us
    • Privacy policy
    • Terms of use
    • Advertise
    • Newsletter
    • Post a Job
    • Partners
    Facebook X (Twitter) LinkedIn YouTube WhatsApp
    Innovation Village | Technology, Product Reviews, Business
    • Home
    • Innovation
      • Products
      • Technology
      • Internet of Things
    • Business
      • Agritech
      • Fintech
      • Healthtech
      • Investments
        • Cryptocurrency
      • People
      • Startups
      • Women In Tech
    • Media
      • Entertainment
      • Gaming
    • Reviews
      • Gadgets
      • Apps
      • How To
    • Giveaways
    • Jobs
    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Business»Scale Is Not a Straight Line: What African Founders Wish Investors Understood

    Scale Is Not a Straight Line: What African Founders Wish Investors Understood

    0
    By Smart Megwai on June 5, 2025 Business, Entrepreneurship, Funding, Investments, Startups, Tips

    It’s a funny thing — in most pitch meetings, “scale” is the sexiest word in the room. But for African founders, it’s also the most misunderstood. Because when an investor says “How fast can you scale?”, what they often mean is: “How fast can you replicate this across borders like a Western startup would?”

    Here’s the truth founders wish they could say out loud: We’re not just scaling a product. We’re fighting to build the systems it needs to survive.

    Growth Here Isn’t Just Hard — It’s Inherently Uneven

    One week, you’re onboarding 500 new users in Ibadan. The next, you’re stuck at the border because your servers are hosted in a country that just banned your API provider. There is no linear path. There’s barely a road at all.

    Scaling in Africa means building while dodging blackouts, bribing customs officers with airtime, adapting your product to five local dialects, and redoing your payment flow because mobile money works in Kenya, but not in Ghana, and absolutely not in Congo.

    Founders are playing chess in a storm. And yet investors keep asking, “Why aren’t you in three new markets yet?” Because sometimes, survival is scale.

    The Frictions No One Puts in a Slide Deck

    The friction points aren’t just operational — they’re existential.

    • Infrastructure: As of 2024, Sub-Saharan Africa continues to have the lowest electricity access rate globally, with only 48% of the population having access.
    • Payments: Over 57% of adults in Africa remain unbanked, according to the World Bank’s Global Findex 2024. This statistic is more than just a number — it represents a significant barrier to sales.
    • Logistics: Intra-African shipping costs are 60% to 70% higher than global averages due to poor connectivity and regulatory challenges.
    • Internet access: This remains below 30% in many regions of the continent. In such an environment, you don’t scale a SaaS tool — you localise, hustle, and pray.

    So What Does “Scale” Actually Mean Here?

    For African founders, scale doesn’t mean aggressive headcount or regional domination. It means:

    • Convincing a local bank to build an API, and then fixing their API when it breaks every Friday.
    • Hiring one person in each state to collect cash payments manually, because that’s what your customer trusts.
    • Building four different compliance systems — one for each regulatory zone you operate in.

    You’re not just expanding. You’re customising reality.

    Patient Capital With Range

    What most African founders want from their investors isn’t just money — it’s contextual intelligence. Understand that TAM on a pitch slide doesn’t capture how many different Africas we’re dealing with. Nigeria alone is 200 million people and 300 micro-economies. Add cultural nuance, regional fragmentation, and inconsistent regulation, and you start to see why scale here isn’t plug-and-play — it’s patch-and-pray. Founders don’t need pep talks about velocity. They need partners who fund stamina.

    Final Word: If You Want Exponential Growth, Fund the Chaos Whisperers

    There’s a generation of African founders doing something wildly underappreciated: Building startups in economies that haven’t finished building themselves. They’re shipping despite structural dysfunction. They’re growing despite friction. And they’re staying in the game when it would be easier — and maybe even smarter — to quit.

    If you’re an investor looking for quick scale, look elsewhere. But if you want the kind of returns that only come from deep resilience, deep localisation, and deep vision, then find the founders who can not only spot the chaos, but speak its language. Those are the ones turning friction into strategy. And that’s what real scale looks like here.

    Related

    Entrepreneurship in Africa Female Founders Funding Investments investors Startups Startups in Africa VC Funding
    Share. Facebook Twitter Pinterest LinkedIn Email
    Smart Megwai
    • Facebook
    • X (Twitter)
    • Instagram
    • LinkedIn

    Smart is a Tech Writer. His passion for educating people is what drives him to provide practical tech solutions which helps solve everyday tech-related issues.

    Related Posts

    iPhone 16e vs. Infinix GT 20 Pro: ₦1.2M or ₦500k—Which One Wins on Value?

    The Best Budget Tablets for Kids in 2025

    Best Laptops for Nigerian Students in 2025: Reliable Picks That Actually Get the Job Done

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Copyright ©, 2013-2024 Innovation-Village.com. All Rights Reserved

    Type above and press Enter to search. Press Esc to cancel.