Despite recent successes, African startups face scrutiny over their ability to solve local problems sustainably. The Innovate Africa Fund, launched in 2024, aims to support entrepreneurs tackling complex issues while ensuring financial viability. In an interview with Managing Partner Kristin Wilson, we explore what it takes to build scalable ventures in Africa.
Defining ‘Wicked Problems’
Wilson describes ‘wicked problems’ as complex, persistent issues that cause significant disruptions. Examples include traffic congestion in cities like Lagos. These problems are challenging because they require innovative, technology-driven solutions that address real pain points.
The Role of Technology
At Innovate Africa Fund, technology is seen as a key enabler for solving these complex problems. Wilson emphasizes that it’s not just about software, but technology in its broadest sense. The fund looks for startups that leverage technology to create innovative, scalable solutions.
Challenges for Tech Startups
While African startups have shown success, major infrastructure issues persist. Wilson argues that tech startups aren’t burdened by expectations to solve these problems alone. Instead, they have a privileged position that comes with significant potential impact. The key is identifying root problems rather than just addressing symptoms.
Evaluating Founders and Teams
Domain expertise and grit are crucial factors for founders. Wilson notes that understanding the depth of a problem is essential, and founders must be willing to iterate based on feedback. The fund prioritizes teams with relevant experience and the ability to adapt.
Common Traps for Startups
Wilson identifies two major traps for African startups:
- Failing to validate ideas with real users and buyers, getting caught up in investor validation instead
- The ‘competence trap’ – assuming the initial team can scale with the company
Structured Funding and Resilience
Wilson emphasizes that structured funding stages are critical for startup survival and growth. Capital is essential, but it comes at a cost. Founders must balance moving quickly with building lasting systems, focusing on validated customer demand rather than perfection.
Encouraging Government Innovation
To improve government efficiency through innovation, Wilson suggests that governments must be serious about problem-solving and create opportunities for local solutions. This includes calling for proposals and supporting local entrepreneurs to build relevant technologies.
The conversation with Kristin Wilson provides valuable insights into the challenges and opportunities for African startups, emphasizing the need for domain expertise, resilience, and structured funding to create lasting impact on the continent’s most pressing problems.
