Channeling capital key to impactful entrepreneurship in Africa

Africa is increasingly becoming a focal point for scalable innovation, attracting global interest due to its growing population, rapid urbanization, and increasing digital connectivity. The continent’s entrepreneurial ecosystem is being driven by strong demand for technology-driven solutions and a young, dynamic workforce. CNBC Africa spoke to Karnika Yadav, Director, Intellecap Advisory Services, on the key factors driving impactful entrepreneurship in Africa. By supporting or leveraging tech-enabled startups, SME development, and value chain optimization, young entrepreneurs can drive economic growth, enhance productivity, and create scalable solutions tailored to the unique challenges of Africa. However, entrepreneurs require access to capital and support such as skills training and policies critical for their growth. Yadav emphasized the importance of creating a supportive environment where young entrepreneurs can create scalable ventures that make a significant impact. In recent times, aside from fintech, sectors such as agri-tech, clean tech, job tech, e-mobility, and health tech have been attracting capital investment. These sectors are witnessing a surge in innovation driven by both supply and demand factors. For instance, agri-tech solutions are addressing challenges faced by small-scale farmers, while clean tech solutions are catering to the increasing waste management needs across the continent. With the continent's startup ecosystem flourishing, successful startups need key ingredients to scale and reach global levels. Entrepreneurs must focus on developing a product-market fit by understanding the needs of paying customers. Access to capital is also crucial, and businesses should identify the right type of capital based on their growth stage to scale effectively. Yadav highlighted the importance of women entrepreneurs in Africa's business landscape and the challenges they face due to caregiving responsibilities. The care economy is a critical aspect that needs attention to support women entrepreneurs. By creating inclusive care economy structures that expand access to childcare, elderly care, health care, and domestic care services, women entrepreneurs can build sustainable businesses while reducing the unpaid care burden. Investment in affordable and high-quality care infrastructures can help women entrepreneurs balance their business and caregiving responsibilities, leading to more growth opportunities in the entrepreneurial space in Africa.