Can Africa Teach the World a Thing or Two about Innovation?
How to Build a Rapid Response Healthcare Network (Part I)
Introduction
Could Africa's business models offer valuable lessons for the world, especially developed countries?
Has any African product or service achieved global adoption comparable to the widespread influence of Western technology in our markets?
Part II will focus on lessons from M-mama and the Tanzania Rural Health Movement.
While the modern concept of "startups" as fast-growing companies is relatively recent (emerging within the last 50 years), it's crucial to recognize the rich history of African innovation that extends far beyond this timeframe.
Examining the past, particularly the fire and stone age, reveals a different perspective: Africa as a net exporter of invention. This period witnessed remarkable leaps in key areas like math, farming, hunting, and cooking, all of which laid the foundation for modern civilization. This historical perspective challenges the narrative of Africa as a mere recipient of innovation. Instead, it highlights the continent’s potential to contribute to modern global progress. The only difference is that we will not be transferring agricultural, arithmetic, or smelting skills.
But what exactly went wrong?
The colonial era coincided with the daybreak of the First Industrial Revolution, leaving Africa largely excluded from the advancements that reshaped world economies and societies. Unlike other regions, like India, East Asia, and South America, which seemingly quickly recovered, Africa didn't. Colonization tragically halted the continent’s potential for intellectual and industrial development.
Other parts of the (then) developing world, namely India, East Asia, and South America, experienced relatively rapid economic growth after decolonization. Africa's trajectory diverged significantly. This divergence raises critical questions about the factors that contributed to Africa's unique post-colonial experience. (More on that in a separate essay.)
I've often shared with close friends the immense challenge and opportunity that lies before us: to harness the power of not just one but several industrial revolutions—the second, third, fourth, fifth, and even sixth—to propel Africa forward in a single, giant leap.
Solutions
I've shared with two friends the immense challenge and opportunity that lies before us: to harness the power of not just one but several industrial revolutions—the second, third, fourth, fifth, and even sixth—to propel Africa forward in a single, giant leap. This ambitious vision is precisely what the African Union has outlined in Agenda 2063, a blueprint for the continent's future. I encourage you to delve deeper into this document, as I believe it deserves a dedicated analysis and widespread discussion.
Back to the present, M-pesa is Africa's best chance of convincing the rest of the world to adopt its invention. I'm ignoring the fact that it wasn't founded by an African-origin company here because Africans led the effort and it worked first in Africa, so it counts as a net African invention.
Despite its success in Africa, mobile money faces significant structural challenges in Europe, North America, and Asia. It is difficult to replicate M-pesa’s impact in these regions.
Despite its success in Africa, the mobile money model faces significant challenges in gaining traction in most of Europe, North America, and Asia. This is not simply due to a lack of awareness or demand, but rather arises from fundamental structural differences in these markets. Why? Developed economies have well-established financial systems, including widespread credit cards and online payment platforms. This reduces the need for M-money as a primary financial tool.
There's an interesting paradox emerging: some technologies thrive only in Africa, while others work only elsewhere.
Hard software is key.
Global ambitions are natural for founders. However, Africa's unique context, currently undergoing its tech 2.0 revolution (after its "fire and stone" past), suggests that technology transfer may not always be a one-size-fits-all solution. The vast majority of the world is in a different technological era, leading me to believe that Africa's innovations might be best suited for its own development, at least for now.
Our distinctive challenges present a rare entrepreneurship opportunity in the 21st century. With limited competition from external players, African founders have the chance to develop solutions that address the specific needs of their communities. And capitalize! The most impactful ventures will be those that combine the power of software with the physical world. By "embedding atoms with bits," these interventions directly solve real-world issues and improve the lives of people on the continent. As a result, the hard software approach holds immense potential to create the Africa we want.
That business model is, in fact, the subject of the next article in this series.
Thank you for your time!