For more than a decade, Andrew Fassnidge, an IT specialist and investor, worked with innovators across Africa to develop digital solutions targeted at the continent’s mobile industry.
During this time, the techpreneur encountered some of the challenges innovators face in bringing their ideas into fruition, including access to funding needed to scale tech products.
Recognising the need for a platform that would connect African innovators to investors and funding institutions, Andrew founded the Africa Tech Summit (ATS) in 2016.
“We were entering an exciting era for African tech and the Africa Tech Summit would help to bring these different players together, helping them do business and establish partnerships,” said Andrew in an interview with Powering SMEs.
Many of the innovators he had worked with had brilliant ideas, but having had no experience in running companies, they would not be able to use the money effectively to scale their ideas.
“They did not need the money alone, they also needed advice on how to grow a business, so connecting them with experienced angel investors and entrepreneurs for this purpose would be key,” remarked Andrew.
Unlike more advanced markets in Europe, America and parts of Asia, Andrew says that Africa had unique regulatory challenges that also stood as a barrier to investment.
Due to the lack of startup acts in many African countries including Kenya for instance, investors would generally opt to invest more of their resources in alternative markets such as Singapore.
Understanding these challenges was crucial to unlocking the continent’s potential for successful investments.
“Due to its underdeveloped infrastructure and opaque markets, Africa demanded an investment approach that was distinct from other continents,” said Andrew.
By connecting innovators and investors with policy makers and regulatory bodies as well, ATS would help to champion for the enactment of startup acts and policies favourable for investment.
Since inception in 2016, the ATS team has hosted three editions in Nairobi and Kigali, during which they have connected more than 1,000 stakeholders in Africa’s startup ecosystem. The success of ATS has seen the team introduce new brands including the Africa Climate Tech Summit, Africa Money and DeFi Summit, that cater to emerging market segments in Africa.
These include climate change and sustainability, which investors are increasingly drawn to in place of sectors like fintech, which have traditionally taken up the bulk of venture funding.
“Many sectors and products have for a long time been overlooked in favour of fintech, which has dominated the headlines, but now, investors are searching for what’s next,” said Andrew.
He says that impact investing is gaining momentum, with startups addressing issues like climate change, sustainable agriculture, and inclusion receiving considerable funding.
Other areas such as artificial intelligence are also gaining prominence in Africa, attributed to the continent’s growing number of tech-savvy youth.
“Despite the challenges of AI adoption such as shortage of talent with expertise in AI, the future of AI startups in Africa is promising, with opportunities for growth across various sectors,” said Andrew.
According to Africa: The Big Deal, a firm tracking startup funding in Africa, African startups raised approximately $2.2 billion (Sh286 billion) in 2024, a 25 percent drop from the $2.9 billion (Sh377 billion) raised in 2023.
“2024 was another difficult year for African Startups with decreased funding and companies like Pivo, Zazzu, and Copia Global among many others shutting down their operations.”
Despite the challenges experienced in 2024, Andrew anticipates that funding activity could recover in 2025, fueled by factors including increased talent and burgeoning local angel investors.
“The thriving Kenyan startup ecosystem is experiencing a notable uptick in local early-stage investors, along with the emergence of supportive incubators and accelerators,” noted Andrew.
This dynamic landscape could be a major boon for startups, offering them a crucial avenue to secure essential funding and receive valuable support that would propel their ventures. The opportunities for startups also stem from the vast underserved populations who today are effectively non-consumers of goods and services that they actually need rather than want.
“We are seeing an increased formalisation of the informal sector, with startups transforming offline businesses into traceable digital businesses and extending the reach of digital services to underserved rural and peri-urban areas,” he explains.
However, he notes that addressing challenges such as regulatory barriers, through continued government and private sector collaboration, could be crucial to enhancing and sustaining the continent's startup ecosystem.
“Economic volatility, influenced by a sluggish global economy, could also impact future investment opportunities. Equity gaps also exist, particularly in reaching smaller startups led by women and marginalised communities.”
This year, between February 12 and 13, ATS will for the first time host awards to shine a spotlight on the most innovative and impactful tech solutions in Africa.
“The awards will recognise excellence across various sectors, from FinTech and HealthTech to Web3, Climate Tech, and beyond.”
