3 Risks African Startups Face Scaling Operations
- Funding for African startups has decreased by 50% to $1.1 billion in 2024, with high borrowing costs complicating cash flow management.
- Twiga Foods has effectively managed cash flow by negotiating supplier terms and adopting subscription-based revenue models.
- Operational challenges include technology system strains that can lead to service outages, necessitating proactive upgrades and redundancy measures.
While the challenges faced by African startups are significant, the potential for growth and innovation remains high. It is crucial for startups to leverage available resources, such as government support and technology solutions, to navigate these hurdles effectively. A focus on strategic planning and risk management will be essential for long-term success in the rapidly evolving African market.
