Over the past four years, Africa's startup industry has attracted significant investors. The number of innovations developed is growing with beneficial impacts on the lives of millions of people. Several tech solutions developed by African startups have gained international recognition.  

African startups have developed a fantastic ecosystem, according to Arun Venkataraman, the U.S. Assistant Secretary of Commerce for Global Markets. Speaking during an exclusive interview, with Ecofin Agency, before the next US-Africa Leaders Summit, the official revealed his country’s admiration of the digital ecosystems developed by African countries. 

“The fantastic ecosystems developed by startups in countries like Nigeria and Kenya as well as the innovations that have come out of them” meet the expectations of the creative and forward-looking African youth, who are the core of the demographic dividend, he said.

"If this dynamic is carefully backed by the right policies, it can lead to great success and greater innovation that will benefit every one of us," he emphasized

Arun Venkataraman estimates that digital technology is one of the sectors where Africa and Africans can contribute a lot to their trade relationship with the U.S.  "The U.S is looking forward to the innovations and new ideas contributed by Africans. We see Africa not only as a consumption market for U.S. goods and services but also as a key provider of the goods and services the United States needs,” he told Ecofin Agency. 

Over the past four years, Africa's start-up industry has indeed undergone a profound transformation. The number of innovative companies created on the continent has increased. The volume of investments they attracted has gone up as well, following a sharp uptrend. According to Partech, African startups attracted US$1.16 billion in 2018. By 2021, that volume rose to US$5.2 billion. Investors committing funds to those innovative companies include American companies such as Bezos Expeditions, Visa, PayPal, Sequoia Capital, and LeapFrog.

For Arun Venkataraman, given the dynamism of its startup ecosystem, “Africa is much more than a commodity market. Even though we have to help it develop strong value-added sectors, we admire the successful ventures noticed because they add value to the U.S., but also the global market as a whole.”

Muriel Edjo