Victor Daniyan nervously stands on a stage in Morocco, pitching his startup Nearpays to experienced judges and investors. The pressure is palpable as he waits for their feedback, hoping for that one elusive “yes” that could change everything.
Struggling for Funds in Nigeria
Building a contactless payment solution like Nearpays is no easy feat, especially when targeting marginalized users in Nigeria. Victor had bootstrapped his startup for two years with no returns until traction finally started picking up. However, even with progress, securing funding locally proved to be an uphill battle.
The Trust Barrier
Uzochukwu Mbamalu of Palremit reflects on the challenges African founders face when seeking trust and investment. He highlights how mentioning Nigeria often leads to skepticism from potential investors due to perceived risks associated with the region.
Foreign Investment Complexities
While foreign investors can provide much-needed capital, they sometimes come with complexities that impact startups’ operations. Many African startups register in Delaware to attract international investors, creating legal and financial burdens as they navigate unfamiliar territory.
Founder Exodus and Global Partnerships
Founders like Mbamalu have found success by relocating to places like Europe, where they can build stronger networks and secure funding more easily. Operating remotely has its challenges but also opens up opportunities for partnerships beyond local borders.
Navigating Growth Opportunities
Daniyan’s experience demonstrates the importance of understanding different markets firsthand. By splitting his time between Nigeria and Rwanda, he gains valuable insights into regional needs and explores expansion possibilities in East Africa.
As African founders strive to improve their global perception and attract investment, they must balance the pressures of scaling internationally with maintaining focus on their core markets. While foreign investments bring benefits, there are concerns about the long-term impact on local economies and market dynamics.
In a rapidly evolving ecosystem where trust, perception, and access to funding play pivotal roles, African founders continue their journey of growth and resilience amid global uncertainties.
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