Nigeria’s population will be over 440m by 2050
Historically, fast growing African tech companies needing an immediate capital injection would have to reach out to foreign investors for this funding.
The need for investment, whether foreign or domestic, is crucial to both established an startup technology companies in Africa.
As most companies are unprofitable for a couple of years, capital is required to disrupt the current status.
The changing demographics in most African countries are helping consumer focused technology companies to reach better sales figures. A perfect storm of increasing smartphones penetration, improving disposable income and the rise of a highly connected younger generation is boosting this sector
There are almost 1bn Africans on the continent; millions are coming online each week, almost via the mobile, which is what’s driving demand. Soon, there will be more than 400m smartphones on the continent. The mobile is the most powerful communications and technology tool on the continent.
It is no surprise that many successful tech startups are based in Nigeria, Based on current projections, Nigeria’s population is forecast to grow to over 440m by 2050 and see a rapidly increasing middle-class population, with commerce spending in the country on track to total $8bn by 2025-
One thing is for sure – this is only the beginning of Africa’s tech boom.
Source: African Business, May 2015