Enabling ecosystem has been describec as the solution to the systematic impediments being experienced by startups on the African continents.
The Startups Lead of the Microsoft Africa Transformation Office (ATO), Gerald Maithya, made the disclosure in a paper tiled:’African Startups Need an Enabling Ecosystem to Succeed’ a copy of which was made available to the Nigerian Tribune.
This enabling environment, which he said must be inclusive and broad, will mean a network of companies and organisations collaborating to build consumer and customer solutions appropriate for the market.
The ecosystem, he noted, needs to holistically address the following concerns: the technology to sustainably succeed, the right operations, the right blueprint for their people requirements, and the right kind of business architecture.
“Recognising this need for holistic support, Microsoft launched the Founders Hub, a self-service hub that provides startups with a wide range of resources. Currently, more than 1,000 startups benefit through the platform.
“Artificial Intelligence (AI) technology is one sector with the potential to contribute significantly to the Middle East and North Africa economy by 2030.”
Maithya further noted that tech accelerators have an important role to play in providing an enabling environment that helps startups to identify and be very clear on what sectors they are targeting; what problems they are trying to solve as well as opportunities available within the particular sector.
The Startups Lead of Microsoft ATO hinted that understanding the pivotal role accelerators can play, has led Microsoft to signing partnership agreements with tech accelerators across the continent with the goal to work together on supporting startups through combined business and technical curriculum.
“Health-tech offers potential solutions to Africa’s challenge of a shortage of healthcare facilities and skills, particularly in remote areas.
“Governments and regulators have an important assisting role to play by creating business-friendly policies and regulations that are not overly burdensome for startup compliance.”
Citing a report by the Tony Blair Institute for Global Change, he stated that the cost of unclear and bureaucratic regulatory compliance across 54 countries is high for tech startups that want to scale.
Government, he said, can further develop a supporting ecosystem through creating and encouraging collaboration networks between large companies and startups, including private sector incubation programmes and joint ecosystem innovation such as the one championed by Microsoft through its Africa Transformation Office.
“When the ecosystem supports startups that serve SMEs, these micro-companies benefit from the startups who are creating unique solutions that address their challenges, whether it is AgriTech solutions, FinTech or other sectors. In developing solutions for the SME market, startups enable the SMEs to follow a growth trajectory of their own.
“There is no simple, one-size-fits-all silver bullet for supporting startups and preparing more of them for success. However, with key players and drivers within a supportive ecosystem, there is the opportunity to drive significant growth in Africa’s startup sector, which in turn will drive economic growth across the continent.”
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