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NextFrontier Africa is a media platform spotlighting Africa’s emerging opportunities in technology, tourism, aviation, agriculture, health, logistics, real estate, trade, education, and e-commerce.

August 21.2025

2 Minutes Read

Why Founders Must Build for Africa: A Deep Dive into Investor Expectations

Surreal economic growth concept for 'build for Africa'.

Understanding the Call to 'Build for Africa'

The phrase 'build for Africa' has become a common refrain among investors engaging with startups on the continent. Founders like Dipo Ojo of Trippa underscore the significance of this sentiment, particularly as they navigate the complex landscape of fundraising. Investors expect more than just innovative ideas; they are looking for scalable and sustainable business models. However, the challenge lies in the diverse markets within Africa, where a uniform approach does not apply.

Scalability and Local Context: A Delicate Balance

Investors are increasingly insisting that startups demonstrate their ability to grow beyond their immediate environments. Yet, they also recognize that local context greatly influences company foundation and operations. Uwem Uwemakpan from Launch Africa articulates this duality by emphasizing that founders should solve essential problems adroitly tailored to their markets while retaining a global vision.

The Economic Realities of Building in Africa

For African startups, crafting a scalable business model entails a thorough understanding of both operational costs and the often limited infrastructure available. Samuel Frank from Sahara Impact Ventures highlights the requirement for operational efficiency amidst financial constraints. This operational reality can challenge startup viability and investor confidence when scrutinized under financial performance metrics.

Investor Perspectives: One Size Doesn’t Fit All

Not all investors share the same strategy for African startups. Some emphasize rapid market expansion, while others underline the importance of strengthening domestic markets before venturing outwards. Fisayo Durojaiye, a startup investor, warns against pursuing broader markets if the local demand is insufficient to warrant sustainable growth, reinforcing the complex interplay between local dominance and global ambition.

Early Revenue and Its Impact on Startup Growth

This push to cultivate immediate revenue streams has illuminated a funding gap for budding startups that may lack steady financial backing. With local consumer markets often characterized by price sensitivity, the pressure to generate immediate returns shapes investor criteria, overshadowing the potential of pre-revenue startups to innovate and disrupt markets in the long run.

The paradigm of 'building for Africa' is not merely a strategy; it is a call for nuanced approaches that recognize the continent’s diverse economic landscape. As startups evolve, so too must the strategies employed by investors—shaping a future that welcomes robust, adaptive businesses built on solid foundations.

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Why Founders Must Build for Africa: A Deep Dive into Investor Expectations

Understanding the Call to 'Build for Africa'

Scalability and Local Context: A Delicate Balance

The Economic Realities of Building in Africa

Investor Perspectives: One Size Doesn’t Fit All

Early Revenue and Its Impact on Startup Growth

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