How African Governments Can Support The Growth Of Tech Startups

Tech Startups - cfamedia

It has been argued, by some economists that, the role of the government, in this present time, is, not to create jobs, but to create enabling environment and formulate policies, through which, private individuals, are encouraged to create jobs.

Across the world, tech startups, are contributing, massively, to the growth of their country’s GDP and in Nigeria, an estimated 37 million SMEs have contributed, to the country’s economic growth too.

According to a report, it has been estimated that SMEs contribute about, 48% to Nigeria’s GDP.

Major tech startups funding in Africa has been, from angel investors and VC funding, with the government, playing a bit of role, in this space.

The African continent has been plagued, with a high rate of unemployment, especially, in the sub–Saharan region and governments across the continent, are finding it hard to, single-handedly, provide jobs to rectify it.

The advent of technological innovations in Africa is, slowly proffering solutions, to some lingering socio-economic problems, retarding the growth of the continent.

These problems, are gradually, being nipped in the bud.

Also read, 3 Ways Technology Can Drive Economic Growth Of SMEs In Africa

Funding has improved for startups in Africa, over the years.

With all these funding, being pumped into the tech start-up ecosystem, unemployment will, surely, be reduced, but the government has a huge role to play, for the tech startup ecosystem, to grow and fulfill its true potential.

In Nigeria, the government has tried to encourage start-ups, by initiating numerous programs, like Start-up Nigeria, USPF Hackathon, etc., as well as, collaborated with tech hubs, across the country, to incubate founders but this is not enough.

Below are 3 other ways, through which the governments, can support the growth of tech startups in Africa.

Provision Of Infrastructures

One factor that, has affected economic growth in Africa, has to do with poor infrastructures, ranging from bad road networks, unavailability of steady power supply, etc.

There is, so much that, technology can do, but will not fix roads and ensure power supply, by itself, as it is just an enabler.

Good road networks, well-equipped facilities and steady power supply, are all essential, for the growth of the tech start-up ecosystem, in Africa.

Good Policies And Support

Governments across the Africa continent, should create an enabling environment and formulating, compassing policies that, will ensure the growth of tech start-ups.

Tech startups cannot flourish, without the involvement of the government and the survival of a tech startup is, tied to policies, initiated by the governments.
Support and encouragement, are highly necessary.


There are, so many benefits, for the governments to derive, from the tech ecosystem, if only, they can invest more.

For the ecosystem to grow, funds need to be pumped, although governments in some African countries have, already, taken the initiative, to start investing in tech start-ups.

Nigeria initiated Start-up Nigeria, USPF Hackathon, etc., South Africa initiated the SA, SME Fund and the Project Development Partnership Fund, (PDP), Senegalese government injects $2 million, into 40 local tech start-ups in 2018, and Egypt is, set to launch a fintech fund.

Featured Image: Techgenez

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