Locals urged to build, maintain start-up ecosystems

Chrispen Gumunyu, Business Correspondent
LOCAL entrepreneurs should consider establishing a data base that documents all start-up companies in order to market themselves and attract local and international investors.

Africa: The Big Deal Co founders, Mr Max Cuvellier and senior venture builder for Catalyst Fund at Bankable Frontier Associates (BFA) Global, Mr Maxime Bayen, have stated in a latest report that it takes only seven weeks for start-up companies across Africa to raise US$1 billion in funding through more than 130 deals.

It took the ecosystem five months in 2021 and more than eight months in 2020 to reach the US$1 billion milestone, said the duo.

Commenting on this, Farm Hut Africa chief executive officer and founder, Mr Ryan Katayi, said key players in the start-up networks have to mobilize and compile data on start-ups and investors in order to play an active role in the African start-up ecosystem.

“For there to be a Zimbabwean start-up ecosystem there is need for start-up founders, investors, mentors and institutions to come together and form a data base that will have sufficient information on start-up companies and investors, which will result in a vibrant ecosystem,” he said.

“Constant communication and engagement will develop the ecosystem and attract both local and international investors.”

Africa: The Big Deal start-up deals database has revealed that there is only one investor from Zimbabwe who made one investment in January 2022 to a South African start-up company. The database also revealed that Zimbabwe raised less than US$1 million in funding through six deals in 2021.

As such Mr Katayi says the continued absence of a start-up ecosystem means that deals flowing through Zimbabwe may not grow. He adds that the rapid growth of start up funding in Africa was inevitable.

“It was bound to happen because Africa is ripe and under-invested whereas other markets in the Americas and Europe are now oversaturated.

“Africa has become the next best destination for those seeking investment opportunities and the next unicorn.

In 2021 the ecosystem raised US$4.4 billion and I project that this will double in 2022,” said Mr Katayi.

Most of the funding that raised the US$1 billion in seven weeks came from start-up companies that are headquartered in Nigeria, South Africa, Kenya and Egypt, which are the big 4 of start-up companies in Africa.