Center for Development & Entrepreneurship
Non-Research
What’s Next for Africa: How Entrepreneurship and Innovation are Charting a New Narrative for the Continent
By
It is within this context that the transformative power of entrepreneurship emerges as an opportunity to reclaim Africa's authentic narrative as one of creativity, dynamism, openness, and abundance, steering Africa towards a future that is thriving, empowered, and self-reliant – a narrative that predates its modern colonial history.
As authors of this piece,
we believe that Africa is entering a new era where entrepreneurship and innovation are rewriting the Continent’s post-colonial narrative.
Africa witnessed an astonishing growth in venture funding from a mere $12 million in 2013 to $6.5 billion in 2022, with innovation-driven entrepreneurship on a rapid rise. Companies like Andela, Jumia, Onafrique, and MNT-Halan, have become the embodiment of Africa’s rekindled spirit of enterprise.
In venture funding in 2022, across 764 rounds since 2013.
With 22% of its population actively engaged in starting and running new businesses—one of the highest rates globally—African nations are navigating a path toward more sustainable and inclusive economic growth. This high entrepreneurial activity is fueled by a combination of factors: a vibrant youth population embracing innovation, a rapidly expanding digital infrastructure making tech-based entrepreneurship more accessible, and a spirit of resilience and agency, driving individuals to create opportunities in the face of limited formal employment options. This entrepreneurial surge is particularly pronounced among women, as cultural shifts, educational advancements, and supportive policies are increasingly enabling female entrepreneurs to overcome traditional barriers and lead businesses, reflecting a significant shift towards inclusivity in Africa's rapidly evolving entrepreneurial landscape.
As the world wrestles with challenges ranging from climate change to global health concerns, Africa's ability to innovate and adapt presents both lessons and opportunities. This working paper delves into this exciting transformation, exploring the multifaceted role of entrepreneurship and innovation in redefining and reclaiming Africa's narrative. From historical resilience to contemporary innovation, from the success stories of thriving ventures to the challenges that still need to be solved, and from local aspirations evolving to more global ones, this journey is a testament to the boundless potential of how innovation can help Africa leapfrog into a new era of prosperity.
By casting a spotlight on the true face of Africa's potential for innovation, this paper stands as a call to action for governments, investors, entrepreneurs, donors, and all stakeholders to foster a culture that nurtures entrepreneurial endeavors. It is a narrative of optimism and opportunity, encapsulating the dreams and ambitions of a continent ready to define the narrative for its future.