Try GOLD - Free
Building Africa's startup ecosystem requires grit, trust and corporate courage
The Star
|October 23, 2025
THE stories of startups in Silicon Valley often start in garages with founders backed by easy access to capital and forgiving safety nets. In Africa, the reality is very different.
-
Entrepreneurs on the continent aren't innovating from the top of Maslow’s hierarchy, but at the base, solving urgent, everyday challenges where failure can mean families go hungry. That makes African founders some of the most resilient in the world, but the capital environment rarely matches their ingenuity.
Over the past year, African startups have maintained growth and adaptability despite a global downturn in venture capital and economic challenges. According to the International Finance Corporation (IFC), African tech startups are still growing and adapting even with a 52% drop in capital between 2022 and 2024. Importantly, there were only 22 exits in 2024 compared with 20 in 2023 which reflects a growing market maturity. Founders are thriving despite a challenging ecosystem of limited funding and complex operating conditions and their success comes down to two things ~ grit and tenacity.
Startups that persist despite facing a market that has fewer opportunities, unfavourable market conditions and scarcity of funding stay focused on their vision and are determined to succeed with or without support.
And yet, support is critical. Increased funding and active investment are vital to ensuring startups remain innovative and geographically diverse.
The IFC has found that when startups have access to venture capital and wider financial support, they can digitise informal businesses, expand their services and increase their competitiveness, especially for microbusinesses.
As venture capital remains shallow across the continent and external investors are cautious, this is where corporate balance sheets and capabilities can change the narrative.
This story is from the October 23, 2025 edition of The Star.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM The Star
The Star
Race to the finish: Our racing driver's last round at Zwartkops
AND just like that it’s about to end.
2 mins
October 23, 2025

The Star
Young Bull Ludwig’s leadership earns praise
IT’S been a season of growth and quiet authority for Bulls lock Reinhardt Ludwig, one that now sees the 23-year-old emerge as a genuine leader within the squad.
1 mins
October 23, 2025

The Star
Land Cruiser FJ prototype brings off-road capability to a more affordable segment
THE all-new Land Cruiser FJ has been revealed, and it's set to make Toyota's iconic 4x4 nameplate more accessible to a wider audience.
2 mins
October 23, 2025
The Star
Dixon earns ‘surprise’ Bok recall
IT’S been a rather eventful 12 months for Springbok loose forward Ben-Jason Dixon - most of it off the field.
2 mins
October 23, 2025
The Star
Celebrating production of 500,000th Polo at SA‘s Kariega Plant
WITH the South African motor manufacturing industry under increasing pressure as a result of the influx of cars from China and India, tariff wars, the change to New Energy Vehicles and steel challenges, to name a few, it’s heartening to see that the Volkswagen plant in Kariega has announced that the 500 000th unit of the Polo has rolled off the assembly line.
1 mins
October 23, 2025
The Star
Murder of engineer linked to Transnet corruption
SLAIN engineer Armand Swarts was killed days after the company he worked for raised questions about a Transnet tender issued to SK Group, a company found to be inflating prices.
2 mins
October 23, 2025
The Star
Frustrated MPs accuse Mchunu of dishonesty
Grilled him on PKTT, SAPS and his alleged connections to Matlala
4 mins
October 23, 2025
The Star
US’ scheme to disrupt Beijing Time exposed
CHINAS national security agency revealed on Sunday that the United States National Security Agency has long plotted cyberattacks against the National Time Service Center, which is responsible for generating and maintaining standard Beijing Time.
2 mins
October 23, 2025
The Star
Mo Salah has to find his own mojo without Trent
ONE plus one makes 11. The proverb, of course, refers to when two individuals or entities work together, they create something greater than the sum of their parts.
2 mins
October 23, 2025

The Star
Beganovic wary of in-form Golden Arrows
TS GALAXY coach Adnan Beganovic says he will be wary of a dangerous Golden Arrows side, even though his team holds an impressive record against the KwaZulu-Natal outfit.
2 mins
October 23, 2025
Listen
Translate
Change font size