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.
The expansion dynamics of African startups
Ameya Upadhyay from Flourish Ventures states that expansion is often necessary for venture capital-backed startups due to limited local market sizes. Bunmi Akinyemiju advises founders to focus on winning their local market before considering expansion, suggesting that most should not expand.
10 Startups to Watch in 2025 in East Africa
East Africa's startup ecosystem attracted $725 million in venture capital in 2024, with climate tech surpassing fintech as the top-funded sector. Twiga Foods has streamlined food supply chains, reducing post-harvest losses from 30% to just 4% within its network.
East Africa’s Startup Funding Surge: Kenya’s Dominance and Regional Investment Trends
East Africa secured 31% of total investment in 2020, with a marginal lead over West Africa. Since mid-2022, East Africa has accounted for 30% of all funding, surpassing other regions.
Realising regional expansion for African startups
African continent has a combined GDP of $3.1 trillion and over 1.4 billion people. M-Pesa, Jumia, and Flutterwave are examples of successful pan-African expansions.
