Redefining rise of digital entrepreneurship among youths in Africa

AFRICA: THE digital age is redefining entrepreneurship across the globe, and African youths are seizing the opportunities with creativity and innovation.

With access to technology, a keen awareness of market needs, and growing support systems, young Africans are building unique business ventures that are not only financially profitable but also socially impactful.

In many countries, however, this trend isn’t just about technology but about finding solutions to local challenges, generating employment, and contributing to community development.

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In Tanzania, Nigeria, Kenya, and South Africa, among other nations, a new generation of the young digital entrepreneurs is emerging, transforming Africa’s business landscape and its image on the global stage.

According to a recent report from the African Development Bank, Africa has the world’s largest youth population, with 60 per cent of its population under the age of 25.

This young demographic is rapidly embracing digital solutions to start and scale their businesses, often from a mobile device. Digital platforms such as Instagram, Facebook, WhatsApp, and TikTok have become accessible avenues for marketing, while mobile money and e-commerce sites like Jumia provide the logistical support these young entrepreneurs need to expand their customer base.

The ability to adapt and innovate is allowing many young people to create jobs for themselves and others, tackling the issue of high youth unemployment, which the International Labour Organization (ILO) estimates to be nearly double the global average in Africa.

One striking example is 29-year-old Tanzanian entrepreneur, Ms Lilian Obadia, who started a fashion line via Instagram.

“Initially, it was just for fun, but once I saw that there was a demand for stylish, affordable clothing among youth, I decided to pursue it seriously,” says Ms Obadia.

Today, her brand, ‘Lily stylish’, reaches customers across East Africa, and she employs five other young women.

Another area where youth are making a significant impact is social entrepreneurship, where the focus is on creating social value. A 27-year-old techpreneur, Albert Sumari is addressing waste management challenges through his startup, Recycle4Change.

Using an app, users can schedule waste collection, with the waste later sorted and recycled. “I wanted to address the waste problem in my community while creating job opportunities for other youth,” John shares.

While ambition and technology are key, mentorship and financial backing are crucial for sustainability and growth. Organizations like Tony Elumelu Foundation, YALI (Young African Leaders Initiative), and ‘Anzisha Prize’ have stepped up to provide support to these digital entrepreneurs.

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These programs offer more than just funding; they provide essential mentorship, business skills training, and networking opportunities.

Monitoring and Evaluation Specialist, Ms Lilian Shirima, emphasizes that these support systems are essential to bridge the gap between young entrepreneurs’ aspirations and their practical needs.

“Without mentorship, many young entrepreneurs struggle with scaling up their ideas. Access to capital is also a huge barrier,” Ms Shirima explains.

Despite the promise, young digital entrepreneurs in Africa still face numerous challenges, from inadequate infrastructure to limited access to funding and high taxation.

The AfDB estimates that up to 42per cent of African youth say financial access is the greatest barrier they face when trying to start or grow a business. Regulatory challenges and competition with larger companies also pose hurdles.

Still, the digital entrepreneurship space continues to grow. Through collaborations with banks, telecom companies, and international investors, young entrepreneurs are pushing for solutions that can allow for easier startup funding and a more nurturing environment for small enterprises.

The rise of digital entrepreneurship among African youth is a promising trend that signals a shift in the continent’s economic narrative. Driven by a passion for innovation, social impact, and economic independence, these young entrepreneurs are transforming challenges into opportunities. They are shaping the future of Africa by turning digital ideas into impactful businesses, bridging gaps in traditional industries, and paving the way for future generations.

As Tanzanian entrepreneur Lilian Obadia aptly puts it, “It’s not just about making money. It’s about building something meaningful that can impact lives.” With continued support and enabling policies, Africa’s youth will likely redefine digital entrepreneurship and unlock their full potential.