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purpose and urgency with them. The profits enterprises make and the capital gains at exit
validates the existence of an ecosystem
The Government and Impact Investors
The government and impact investors in the African ecosystem are usually either symbiotic
or parasitic hosts. Most times in Africa government officials become parasites themselves
colluding with opportunists draining funds from the ecosystem through corrupt practices
and depriving us of true innovation.
There are very few serious government partnerships that go beyond propaganda and
senseless proclamations to gain the youth vote. Rwanda is an example of a location where
the government is serious about the growth of the ecosystem because “they get it”. Most
governments don’t “get it”. They don’t because the politicians are usually from another era
and don’t really see value in tinkering with some bytes and pieces of hardware. The
governments however have no choice but to play a role in creating the enabling
environment and policies for the ecosystems to thrive.
Most impact investors in Africa put token investments in doubtful ventures out of “pity” or
because the founders have made enough “noise” to be able to give the investors some
bragging rights. They also believe that those “arms-length” “token investments” are enough
catalysts to stimulate growth in an ecosystem and get frustrated when they don’t get
results.
Others build true symbiotic relationships and stay long enough for the initiatives they have
invested in to reach scale. These hosts are also vital to the sustenance of the ecosystem as
they also help to provide some seed funding and policy to shape the environment for fragile
early stage ventures in a difficult terrain.
Local Investors, Local Seed Funds and Angel Investments
These local investors or funds should ideally have been local financial institutions but they
are very risk averse and instead focus on easy wins or funding highly profitable proven
private sector trade or deficits in inefficient public sector.