Ask an Investor: Why is local capital important for Africa’s tech ecosystem?
- Marge Ntambi from Benue Capital emphasizes that local capital is not charity but risk arbitrage, showcasing how local investors can leverage their knowledge for better investment outcomes.
- Axel Peyriere stresses the importance of investing in sectors he understands, avoiding the pitfalls of applying Silicon Valley heuristics to African markets.
- Fisayo Durojaye highlights the significance of local domain mastery, which allowed him to identify promising startups like Shuttlers early on.
The emphasis on local capital and knowledge in the African startup ecosystem is crucial for sustainable growth. Investors who understand the local context can make more informed decisions and provide valuable support to startups, which is essential for overcoming the unique challenges faced in the region. This approach not only fosters innovation but also builds a more resilient investment landscape.
