Perception shift

Africa’s Growing Tech Economy Inspires Confidence Among Locals

By  |  August 10, 2022

Ever since venture capitalists from across the globe discovered some potential in the tech space of Africa, it has been one big move after the other. In search of more value in one of the world’s last frontier markets, these investors, alongside the entrepreneurs deploying tech, are bringing about a perception shift for the continent. 

According to a just-released report by Talking Drums Communications, a public relations and communications consultancy that works with African technology companies, and Survey54, an artificial intelligence-powered market research company, 4 out of 5 Africans say recent developments in African technology have changed how they view the continent. 

The Africa Innovation Impact report, which considered the opinions of 4,500 Africans from Kenya, Nigeria, and Ghana—relatively three of Africa’s busiest tech nodes—found that 84.6 percent of its participants are not only now positive of the continent’s future but also have more confidence in the size of its technological future. 

What’s more, 9 out of 10 (or 91.7 percent) of surveyed Africans are likely to rely on made-in-Africa tech solutions, and just about the same amount would describe the continent’s inhabitants as entrepreneurial and innovative. 

More importantly, 21.1 percent of these participants seem to believe that the region’s tech drive has had more impact on the education sector, especially in the past 2 years. 18.3  percent see more impact in financial services and 15.1 percent point to entertainment as the most impacted sector. 

By now, it is most likely not news that Africa is taking a center stage in the world’s tech startup industry. On the back of its huge young populace, immense smartphone adoption and penchant for digital-forward processes, the continent is receiving more venture capital than ever. 

Per Talking Drums’ report, investment into African startups grew 18x between 2015 and 2021 and grew 2x faster than global rates in the years between 2020 and 2021. While 29 percent of participants said they are more taken to funding stories, 28 percent are inclined towards reading narratives about expansion and 28 percent prefer expansion stories. 

“Based on the data we have gathered, the innovation coming out of Africa is not only changing the way people live and work, but it is also changing the way people think, how they view themselves as Africans and driving a demand for more innovation,” said Olugbeminiyi Idowu, Founder and Managing Director of Talking Drum Communications. 

He added: “There is a growing appetite for these innovations, both from African users and global investors, and there is much to be excited about what the future holds”. 

Lastly, 51 percent of the report’s participants said job creation is the biggest advantage of the region’s growing digital landscape. 29.3 percent pointed to exposure to tech on the part of the younger population, 12.4 percent sided with financial inclusion, and 7.1 percent see infrastructural developments as the most significant outcome. 

Featured Image: Insperity

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