Expert Urges Startups to Explore Other African Markets for Expansion

Emma Okonji

Given the growing number of success stories recorded by Nigerian startups, they have been advised to explore other African markets for business growth and expansion. 

Founder, Summitech Computing Limited, Mr. Adekunle Kunle-Hassan, who gave the advise in a statement, said in order to address the challenges of expansion among Nigerian startups, founders should attempt to democratise their operations, taking advantage of a growing rate of digitisation in other African cities to expand their business. 

According to Kunle-Hassan, “For founders, after establishing answers to the question of the best city to site their startups, the next riddle is the location of branch offices. One of the factors which is critically considered, is maximizing startup costs to ensure the best value for available funds. A critical look at some African cities reveals great quality of life with low living costs, low taxes, sound government policies which equals competitive business costs. These thriving African cities face the same challenges of financial inclusion, access to healthcare, logistics among other sectors. Nigerian companies should, in spite of language and regulatory barriers, expand into these cities to gain a hold on the continent’s business before these opportunities are swept up by foreign companies,” Kunle-Hassan said. 

According to him, while start-up ecosystems across Africa are beginning to play pivotal roles in attracting global investment and brands, there are still challenges in attracting the needed funding required to reach target markets and increase profitability, a feat, an encouraging number of Nigerian startups have been able to achieve. 

He however said to maintain the momentum of growing Lagos ecosystem value and startup success, startups must need to take advantage of sector and sub-sector strengths in other African cities.