The Rise of African Unicorns: Gigmile and Insights from Endeavor’s Inflection Point Report
Africa’s digital economy is booming, with a growing number of businesses garnering funding from both domestic and international investors. According to Endeavor’s new research, “The Inflection Point: Africa’s Digital Economy is Poised to Take Off,” Africa’s tech industry is at an exciting juncture, with the potential to produce multiple billion-dollar businesses in the coming years.
The Endeavor report provides several valuable insights into the current state of Africa’s tech industry and the potential for future growth. The report indicates that the continent’s tech sector is on track to generate 3.5 million jobs and $180 billion in GDP by 2025. The World Bank’s research, which predicts that Africa’s digital economy might reach $180 billion by 2025 and $712 billion by 2050, lends support to this.
One interesting discovery mentioned in the report is that African tech startups are becoming increasingly sophisticated in terms of their business models and technology. This is reflected in the growing number of startups that are able to attract significant funding, and the increasing number of unicorn companies in the region. The report also highlights the importance of collaboration and knowledge sharing in driving innovation and growth in the tech industry. It notes that successful startups are often those that have been able to leverage the expertise of others, such as accelerators, incubators, and other startups.
Another key insight from the Endeavor report is the critical role of talent in the success of African tech startups. The report notes that talent is one of the most significant barriers facing African tech startups, and that many companies struggle to attract and retain quality talent. Gigmile is helping to address this challenge by providing businesses with access to a pool of quality freelancers or gig workers across Africa, enabling them to access the talent they need to succeed.
Gigmile is well-positioned to make the most of this growth opportunity; we are already playing a critical role in driving innovation, inclusion, and entrepreneurship on the continent. Gigmile is building the infrastructure to harness the potential of a borderless gig economy in Africa by delivering affordable, readily available, and relevant financial services to gig and informal workers who have historically been underserved and excluded from financial services.
The growth of Gigmile is reflected in the larger African tech economy, which has seen an uptick in funding in recent years. According to the Partech Africa report, African tech firms raised $1.43 billion in funding in 2019, an increase of 108% over the previous year. According to the research, Africa’s tech industry has only seen a rise in the number of startup funding deals since 2015.
According to the International Finance Corporation (IFC), Africa’s tech industry is expected to create $300 billion in value by 2025. This will be driven by increasing internet access and smartphone penetration, which is set to reach 475 million users by 2025, according to GSMA Intelligence. Clearly, Africa’s digital economy is on the verge of a significant transformation, with the potential to create millions of jobs and contribute billions to the continent’s GDP. At Gigmile, we are excited to be leading the charge for this! With the right support and investment, Africa’s tech industry has the potential to contribute to the overall development of the continent.
