The New Trend in Africa as Startups Are Catching up with Well-established Companies in the Continent

Startups businesses have been the in-thing of late, at least around European nations, and in America. In general, it is an idea that has been embraced in almost all developed countries around the globe. The indications point to the possibility that this trend is here to stay. Africa is not left out either. The continent has had its fair share of success when it comes to startups businesses.

Although still in infant stages, startup business in Africa had a significant progress as many of such companies and businesses recorded financial boom in the last year of 2020. If compared to the amount of funding in 2019, more than 350 startup businesses in Africa were involved in an increased funding by 67%. In the same year, there were a myriad of transactions dealings which involved these enterprises – the transactions amounted up to $336 million, down to $153 million and then up again to $268 million.

This year, there are good number of startup businesses globally that have been pinpointed that would be the focal point in terms of financial growth, and funding. Coincidentally, these businesses have been configured to be using the newest of technological advancements in the world. Little wonder technologies are driving the continent crazy. That is also an added advantage, more so because of the prevailing Covid-19 situation and restrictions…

There have been clarion calls from all corners of the world that people keep a considerable distance. When now there are technological changes so that people can transact businesses without necessarily getting into contact with the second party, then that’d only be a step in the right direction.

A good example is mPharma. This is a tech-driven healthcare service provider, started in 2013. Due to its technological set up in nature, it has fared so well in this environment where technology is increasingly becoming the order of the day. mPharma’s presence in Africa has started to be felt. Already, it has subsidiaries in Kenya, Ghana among other countries.

There are actually more of startup businesses that deal with money transactions than any other startup business in the whole of Africa. These are businesses that would want to give Africa’s celebrated financial service a run for its money.

Some of these startup businesses were also listed by Business Insider as some of the startup businesses to watch come 2021. Sokowatch is one of them.

Founded in 2016 , Sokowatch got ‘Tajir of Africa’ nickname as its other name. The name can loosely be translated to mean ‘African Tycoon’. It has been offering analytics services as well as lending small finances to small women groups, to augment their enterprises back in Africa. It is poised to do well in this year after raising over $18 million.

Komaza is another one, as well as Chipper. All these are financial startups that are potential beneficiaries of funds this year. This means that the continent of Africa has not been left behind during this Covid-19 scourge.

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