How Africa’s Tech Sector Is Defying Odds and Scaling Fast
As connectivity, talent, and venture capital come together to empower a new generation of entrepreneurs, Africa’s tech sector is poised for a revolution.
Kevin Dillon, a co-founder of the Africa Bridge Fund, claims that now is the ideal moment to unleash the continent’s potential in artificial intelligence and technology innovation.
“Africa possesses all the necessary components for success: a burgeoning tech ecosystem, unparalleled entrepreneurial spirit, and innovative talent,” says Dillon.
Dillon has worked in some of the fastest-growing IT areas in the world for more than 40 years. He worked at Price Waterhouse and Microsoft in the 1980s and 1990s, when he saw firsthand the emergence of Silicon Valley. Later, as the company’s first CFO in Europe, he assisted Microsoft in establishing its presence in the continent.
“A smooth combination of risk-tolerant capital, top-notch universities, and a collaborative culture was what allowed Silicon Valley to flourish in its early years,” Dillon stated. “I discovered early on that a startup requires an ecosystem to succeed.”
Europe was experiencing a tech renaissance by the early 2000s. In his role as CFO of Microsoft’s European business, Dillon witnessed how the EU’s integrated market and policy support fueled talent mobility and cross-border investment, two things he claims are directly relevant to Africa’s current aspirations.
Using the knowledge gained, Dillon co-founded Atlantic Bridge, a growth-equity firm, in 2004. The company has made investments in 110 deep technology companies, facilitated 38 successful exits, including seven unicorns, and collaborated with top university innovation hubs to expand the pipeline and ecosystem throughout Europe.
“Building an ecosystem means more than backing individuals,” he said. “It’s about creating the right conditions – capital, connections, and mentorship – for startups to flourish.”
Although the African setting is distinct, Dillon observes the same trends emerging in the continent’s tech and venture startup landscape that he witnessed decades earlier in Silicon Valley and Europe. In response, he and managing partner Frank McCosker co-founded Africa Bridge Fund with the goal of concentrating on four essential elements that software businesses need to succeed: talent, co-investors, finance, and connectivity.
Syndicating investments can provide new businesses all the tools they need to be successful. Businesses will benefit from our assistance as they transition from startup to scale-up and exit. The flagships that establish the continent as a tech hub are these regional success stories.
‘We believe by investing in both the venture and technology ecosystems together, the foundations will be built to enable African entrepreneurs to thrive on the world stage,’ said McCosker.
According to Dillon, African tech ventures generally fall into one of three categories:
- Regional Solutions: Technologies designed to address local challenges, such as off-grid energy or water purification systems.
- Adaptations: Customising proven innovations from the US, Europe or Asia for local markets.
- Global Champions: Building breakthrough technologies in Africa that can compete on the world stage.
According to Dillon, “all models rely on robust partnerships and healthy capital flows, but each model requires different support structures.”
McCosker points out a potent confluence of elements that will make 2025 crucial for African technology.
“With the youngest population in the world, the continent’s demographic dividend encourages entrepreneurial creativity, and startups can achieve technical milestones on a tight budget thanks to lower development and operating costs,” he said.
Simultaneously, the latest generation of AI-based technologies is propelling innovation and growth at a never-before-seen pace, just like the cloud, mobile, and internet waves did. Over the previous ten years, the percentage of domestic African venture capital agreements has increased from 19% to 31% of overall inflows.
According to Dillon, “African startups are uniquely positioned to deliver both profit and purpose due to the global shift towards digitalization and sustainability.”
