A common sight in Yaba, Lagos, is young entrepreneurs huddled over laptops in shared workspaces. They are piecing together apps and platforms that could one day compete with Silicon Valley’s best.
The energy in Nigeria’s tech scene is strong. Over the last 10 years, a new generation of innovators has emerged across Africa, from Nairobi to Cape Town. They are building solutions for their own communities rather than for distant markets.
Yet the question remains: can Africa go beyond just using imported technologies and actually develop the next generation of homegrown solutions that can scale globally?
The signs are promising. Africa’s digital economy is projected to reach $180 billion by 2025 and as much as $712 billion by 2050. In just the first five months of 2025, startups across the continent raised more than $1 billion in funding, with Nigeria leading the pack.
But behind the headlines lies a deeper challenge: to ensure this growth is not just about foreign investors backing familiar fintech models, but about unleashing the continent’s full innovative potential.
Building for Local Realities
Imported solutions have long struggled to meet Africa’s unique needs and will continue to do so. A payment system designed for Europe’s smooth banking infrastructure, for instance, fails in areas where cash is dominant and internet access is unreliable. This gap, however, has opened the door for local innovation. M-Pesa in Kenya changed the game for mobile money, providing financial access to millions without bank accounts. In Nigeria, LifeBank has digitised blood supply chains, linking thousands of hospitals with vital resources.
These are not mere copies of existing models; they succeeded because they were designed for the specific realities of African societies.
They show that real change occurs when technology is tailored for the local context. At Quomodo Systems Africa, we have always believed that Africa’s strength is not in mimicking Silicon Valley but in tackling African issues with homegrown solutions. Whether in healthcare, agriculture, or logistics, successful entrepreneurs will be those who best understand their environment.
There is also a need for more strategic handshakes between entrepreneurs and the government in developing suitable policies that promote business growth. Nigeria’s Startup Act, enacted in 2022, marked a significant step forward, establishing a legal framework to help founders access funding, incentives, and clearer regulations.
Similar initiatives are appearing across the continent, showing that governments recognise technology as a key driver of growth.
However, policy frameworks are just the starting point. Implementation is more important. Too much funding still goes into fintech, leaving other important sectors lacking support. At the same time, infrastructure issues are severe: broadband access in Africa is only 37 percent, and in Nigeria, power outages can disrupt innovation just as much as inadequate investment. Without affordable internet, reliable electricity, and good logistics, even the brightest ideas can struggle.
We must find a way to keep our best talents within the shores of our country and also build a system that allows them to thrive. Nigeria, with an average age of just 16.9 years, has a lot of potential. Yet brain drain is a worry, as many talented individuals move abroad for better opportunities. The challenge lies not only in producing more skilled engineers but also in fostering an environment where they want to stay, build, and grow.
From Local to Global
If nurtured properly, Africa’s startup ecosystem could mirror the path India took with IT outsourcing. India’s industry, worth more than $245 billion today, grew out of deliberate investments in education, skills alignment, and export-oriented policies. Africa, with its demographic dividend, has the raw material for a similar transformation.
Nearly 70 percent of its population is under 30, compared to ageing populations in much of Europe and Asia.
Already, global tech giants are paying attention. Microsoft and Meta have invested heavily in African hubs, while European firms such as Telesoftas have set up operations in Lagos after successful talent partnerships.
For Africa, the goal should not just be to host foreign branches but to grow indigenous giants that can compete internationally.
The success of Nigerian unicorns like Flutterwave, Interswitch, and Andela proves this is possible. Each began by solving local problems but is now recognised on the global stage. The next wave must broaden beyond payments into health, education, green energy, and agriculture, sectors that define Africa’s development trajectory.
Reframing the Narrative
Perhaps one of the biggest challenges is perception. Too often, Africa is viewed as a recipient of aid rather than a producer of innovation. This narrative undermines investor confidence and obscures the remarkable successes already unfolding on the ground. Every startup that scales, every engineer who excels abroad, chips away at outdated stereotypes.
At Quomodo Systems Africa, we see part of our role as telling this story differently: championing African innovation, advocating for supportive policies, and helping local startups position themselves not just for survival but for global relevance.
Scaling Africa’s startup ecosystem will require collaboration across borders and sectors. Governments must commit to consistent, innovation-friendly policies.
Investors must show patience and an appetite for risk. Entrepreneurs must keep building with context at the core, not imitation. And the diaspora must remain engaged, bringing back skills, networks, and capital.
If these pieces come together, Africa could leap from being a fast-growing market to a global tech powerhouse. The stakes are not abstract. They are about jobs for millions of young people, better healthcare for families, more efficient agriculture for farmers, and a stronger, more resilient economy for the continent.
The shift from adoption to innovation is already underway. The question is whether we can scale it fast enough. The potential is undeniable. The opportunity is urgent. And the time to act is now.
*Oluwole Asalu is the Founder and CEO of Quomodo Systems Africa, a thought leader dedicated to advancing Nigeria’s ICT ecosystem and fostering innovation across the continent.
