The General Manager, Microsoft Africa Transformation Office, Gerald Maithya, has said that, in spite of their huge potential, startups in Africa continue to face significant challenges, especially in the area of securing investment.
Gerald, in a paper tagged: ‘Fostering a thriving African Startup ecosystem through collaboration’, stated that, in Year 2024 alone, venture capital investments in Africa dropped by over 65 percent in the first half of that year, compared to the same period in 2023.
He, however, added that companies and startups needs gradually finding ways to overcome these hurdles, by adopting successful ecosystem partnerships.
The Microsoft boss described such collaborations as crucial in devising holistic strategies to the complex issues confronting startups.
He noted that, of late, the African continent has emerged as a vibrant hub of innovation, driven by a new generation of entrepreneurs, leveraging cutting-edge technologies to address some of the continent’s most pressing challenges.
He believed such development was made possible through a range of partnerships and collaborations, which bring together the resources and expertise of governments, private sector tech companies, and global technology leaders to support African startups.
The Microsoft boss noted that these collaborations not only foster a thriving startup ecosystem, but also paving the way for sustainable economic growth across the continent.
He identified Artificial Intelligence (AI) as one of the major drivers of startups, since it has been able to democratise access to advanced tools and resources that were once out of reach.
Gerald cited a recent Microsoft survey, which revealed the belief of 50 percent of small enterprises in AI as a game changer for their business.
“Starters across the continent are leveraging AI across sectors to innovate, enhance productivity and streamline operations, demonstrating the transformative potential of this technology,” he stated.
Describing collaborations and strategic alliances as crucial to solving the challenges confronting startups in the continent, Gerald noted that the FAST Accelerator Programme, launched by Flapmax and Microsoft, provides startups with súch growth opportunities.
He reiterated Microsoft’s commitment to ‘strategic enabling partnerships and collaborations, since, he noted, a single company cannot create the desired meaningful impact.
“As we look ahead, it is clear that these collaborative partnerships will continue to play a pivotal role in enabling African startups to thrive, driving economic growth, and shaping a brighter future for the continent,” he added.
READ ALSO: Microsoft, FG partner to boost digital transformation
and then