Unlocking Africa's trillion dollar potential through startups

While we hesitate, the rest of the world is moving ahead fast

- BUNTU MAJAJA

AFRICAS economic growth is too slow for its population boom. With GDP growing at just 3.5% annually while the population expands by 2.5%, the continent is barely inching forward at 1% per capita growth each year.

At this rate, it would take 140 years to reach India’s projected 2025 GDP per capita of $11 000 (R200 765.29), 200 years to match China, and 300 years to reach Germany's standard of living. Something isn’t working. This is not about talent - we have plenty. Its not about ambition for Africa is home to some of the most innovative entrepreneurs in the world.

The real issue is that we keep making the same trillion-dollar mistake. We treat startups like traditional businesses and by doing so, we are holding back the very companies that could transform Africa's economy. And while we hesitate, the rest of the world is moving ahead fast.

Artificial Intelligence isn't the future, it is already here, and is changing how industries operate, creating new global giants overnight. Agile companies that adapt quickly, like Amazon, OpenAI, and Alibaba, are keeping up and rewriting the rules of the global economy.

Apple, Google, and Samsung became dominant because they moved fast, while companies that hesitated became irrelevant. Africa is at a critical moment. If we keep treating startups like small ‘traditional’ businesses, applying the wrong policies and expectations, we will miss our biggest opportunity for exponential economic growth.

One of Africa’s biggest economic missteps is confusing startups with small and medium-sized enterprises (SMMESs). The two are fundamentally different. SMMEs grow steadily, meeting local demand. A restaurant, a logistics firm, and a retail shop are examples of this. Startups are designed to scale exponentially, disrupt industries, and create new markets. Think Uber, Paystack, Temu, and Shein.