How startups are revolutionizing the African economy
The African business landscape is undergoing a significant transformation, fueled by the emergence of innovative startups in industries like healthcare, fintech, software, real estate, etc. These new enterprises are not only addressing unique local challenges for the continent. But are also driving economic growth, creating wealth, and jobs, and enhancing efficiency across various sectors.
In this summary, we revisit our friends on startup.list Africa to explore how startups are evolving African businesses. We’ll take as an example some ERP systems, real estate technology startups, and other tech innovations.
The Rise of ERP Systems in Africa
An ERP system has become the standard tool for enterprises or businesses aiming to streamline operations and enhance productivity. The African companies that rely on ERP solutions are increasing, aiming for more efficient resource management.
These systems integrate various business processes, like CRM, inventory, invoicing, HR management, property management, etc providing a unified platform for finance, supply chain, manufacturing, and human resources.
Key ERP Solutions in Africa
Let’s highlight some of the key players in the ERP space in Africa
- SAP Business One: Well known for its comprehensive functionalities, SAP Business One is helping small and medium-sized enterprises (SMEs) in Africa scale their operations efficiently, although it’s not suitable for small businesses.
- Odoo: An open-source ERP system is popular for its modular approach, allowing businesses to start small and expand their capabilities as needed.
- Microsoft Dynamics 365: Leveraging cloud technology, it offers a seamless integration with other Microsoft products, making it a preferred choice for businesses already using the Microsoft ecosystem.
Startups in seed phase
Startups like Devinstock are disrupting the old way ecosystem and participating in this transformation by offering the best business management solutions that incorporate advanced ERP capabilities with better experience and affordable cost.
The Morrocan startup CEO Dr. Abdellah El Abbous told us
“We want to build tools that cater specifically to the needs of African small and medium businesses, Devinstock aims to play a crucial role in enhancing our continent’s operational efficiency and driving growth.”
“This is why we took a unique approach within our Startup Studio to build the next generation of tools in this incredible era of AI and 100% digital”
Transforming real estate with technology
One of the other sectors that is experiencing a tech-driven revolution is real estate. Startups are introducing innovative solutions that simplify property management, enhance transparency, and improve access to real estate information. These technological advancements are making the real estate market more efficient and accessible to both property seekers and owners.
We can note the following trends
- Marketplace properties: Online marketplaces and mobile apps are providing users with comprehensive property listings, virtual tours, and digital transaction capabilities.
- Smart management: IoT-enabled homes and software solutions are optimizing property management for owners by automating tasks, security, usage and energy management.
The Broader impact of tech startups
One such startup making waves in the web/mobile development space sector is Devinweb. Specializing in web development and digital solutions. The tech company based in Morocco offers innovative tools that streamline business processes, from customer relationship management, education to POS systems, helping many companies worldwide to build solutions and deliver better services to clients.
Fintech, health care and logistics
Beyond ERPs and real estate, African tech startups are driving change across various sectors. From fintech to health tech, these startups are addressing critical issues and unlocking new opportunities for growth and development.
Startups in Kenya are leveraging technology and mobile to provide financial services to the unbanked population, facilitating digital payments, and offering microloans and insurance products.
Telemedicine platforms, mobile health apps, and digital diagnostics are improving access to healthcare services, particularly in remote areas.
A country like Senegal is providing robust financial support for tech startups and logistics companies and platforms to enhance infrastructure development and resource supply chains. This support is driven by a strategy to modernize Senegal economy, improve connectivity, and attract foreign investment, to position Senegal as a hub for innovation and efficiency in West Africa.
Why Africa is the future market for startups
There is a lot to say about Africa to convince you whether an entrepreneur or an investor to direct the energy to Africa. The continent is rapidly emerging as the future market for startups. Why?Lots of potential, emerging markets, youthful population, increasing internet and mobile penetration, and social and economic growth.
With over 60% of the continent’s population under the age of 25, there is a vast pool of young, tech-savvy individuals ready to embrace innovation . Internet penetration has surged, reaching approximately 50% in 2023 . Furthermore, Africa’s GDP growth is projected to increase over the next five years, creating a favorable economic environment for new businesses.
Here a list of promising startup markets
South Africa: total raised 10,5 B, total startups: 417 (src startuplist Africa)
Nigeria:total raised 7,1 B, total startups: 516
Kenya: total raised 4.8 B total startups: 308
Egypt: total raised 4,6 B, total startups: 656
Senegal: total raised 410 M, total startups: 23
Morocco: total raised 307 M, total startups: 64
A Catalyst for Business Transformation
Main investments are catalyzing sectors like: ecommerce, logistics and supply chain, finetech .. Startups will stand out as a key player in the African startup ecosystem, offering market solutions that cater to the unique needs of local people and worldwide. Startups solutions are particularly beneficial for distribution activities, hardware stores, and points of sale, highlighting their versatility and impact.
