African entrepreneurs defy expectations during the pandemic, innovating while experts and assistance providers stay grounded in their home countries
This is an opinion piece; the views expressed are the author’s own. You can share your thoughts on this piece by sending them to Karma editors at hello@karmaimpact.com.
As the COVID-19 crisis unfolds around the globe, one concern frequently expressed is the potentially cataclysmic impact on African countries. Many have feared that the continent may not have the tools to cope , with technical assistance providers and other assorted experts grounded in their home countries.
African entrepreneurs, however, are telling a different story — one in which the stock of ventilators must not be confused with the capacity of the continent to innovate and respond.
In particular, the $1.27 billion in venture funding that went toward African companies last year seeded firms that are helping life continue somewhat as normal. While it is feared that funding may drop by as much as 40% this year, and while more can be done to ensure funded startups are more diverse , for now, innovations in financial, educational and healthcare technology are keeping African citizens connected to services in the midst of a global disruption.
The companies supporting everyday people through this pandemic will continue to shape the way business, education, and healthcare are practiced on the continent for years to come, and continue crafting that alternative narrative of African agency. Fintech has kept economies going while everyone stays inside
African fintech firms have long attracted attention by bringing banking to tens of millions of people. Fintech innovators have catapulted Africa to the top of the list of regions with the most mobile money users. COVID-19’s economic effects have brought these innovations, including mobile money and digital banking, to the forefront of people’s lives.
Millions of Africans were able to continue banking and buying from their phones despite brick and mortar banks and shops being closed by the pandemic. In fact, Central Bank of Kenya coordinated with Safaricom and M-Pesa — global leaders in this area — to encourage Kenyans to use mobile payments and avoid cash transactions. E-commerce has also provided an outlet for SMEs that COVID-19 restrictions forced close.
This initiative impacted the health and safety of Kenyans who were able to transact as usual without potentially exposing themselves to the virus. Fintech’s ability to innovate and serve African users across the continent will only […]