What Defines An African Startup?

Back in Episode 3 of the African Tech Round-up we asked the question: “What is a startup?” A lively discussion ensued— inspired by an eloquent piece written by David Adamo Jr, a Nigerian Computer Science PhD student at the University of North Texas.

Since then Founder & CEO of Hotels.ng, Mark Essien, and Project Isizwe Founder & CEO, Alan Knott-Craig Jr, have both since penned articles (When Startups In Nigeria Suddenly Got Serious and Venture Capital In Africa Is Hard) which contribute to answering a more pointed question we’re asking in this week’s show:

“What defines an African startup?”

Can African tech startups be defined in the same terms as those currently being born and raised in Silicon Valley?

Are there certain universal standards (i.e. minimum levels of traction in the form user onboarding, cash flow, etc.) that must be met in order for a business owner to claim the coveted title of “startup founder”?

Tefo Mohapi and I’s discussion this week adds to a debate that we hope everyone in Africa’s tech eco-system will continue to jump in on.

Also, catch up on all the week’s biggest tech, digital and innovation news from across Africa:

• Safaricom poised to start charging banks for bank-to-M-Pesa transfers,
• Google Transit launches in Kenya and attempts to aid users of public transport,
• Nest VC establishes a presence in South Africa through a partnership with Cape Town Garage,
• Android One’s Infinix Hot 2 smartphone selling like hotcakes in Nigeria,
• Google announces that they have reached a 10 million user milestone in Nigeria,
• South African mobile network, Cell C, discontinues free WhatsApp promotion, and
• South African airline FlySafair server crash following slash price ticket campaign.

Does Africa Need More Cheap Smartphones?

For many recently married couples, the diamond engagement ring is one of their biggest assets— albeit an emotional asset, symbolising love and lifelong commitment. In financial terms it isn’t an asset at all, considering the fact that it loses at least 50% of it’s retail value the moment you leave the jewellery store. Rough, isn’t it?

And yet still we feel compelled to buy diamonds for our loved ones, and continue to fuel a global billion-dollar industry. One has to admire the ingenious marketing strategy drafted and executed by the N.W. Ayer ad agency in the early 1900s for their client, De Beers, which resulted in the world attaching value to a commodity that’s not nearly as rare (or as necessary) as we were led to believe.

In this week’s African Tech Round-up, Tefo Mohapi and I discuss the the implications of low-cost smartphone penetration on the continent. The increase in internet use via mobile devices has undoubtedly delivered certain advantages. But when you consider how issues like the prevalence of preventable diseases, hunger and limited access to basic education continue to be a daily reality faced by many Africans, the importance of whether or not you have a smartphone might be in question.

So, just how important and necessary is this so-called “mass exodus” from feature phones to smartphones, and could the Android-brigade (led by Google and its mobile device manufacturing homies) be stimulating the demand for the smartphone the way De Beers did for diamonds near the turn of the century?

Also in this week’s episode, all the biggest digital, tech and innovation news from across Africa:

• Vodacom South Africa rolls out voice-over-WiFi calling,
• The Nigerian Communications Commission poised to deactivate 10.7 million mobile lines over various networks,
• Kenyan banks are finally getting in on the mobile money craze in a big way,
• Uber Kenya sees their user numbers triple following the introduction of Uber Cash,
• The embattled Passenger Rail Agency of South Africa is reeling following a train crash,
• Thousands of South Africans reportedly implicated in the Ashley Madison data dump, and
• Google rolls out its Android One programme is Nigeria, Ghana, Ivory Coast, Kenya, Egypt, and Morocco.