African indigenous companies are globally undervalued

Africa is home to many innovative and resilient companies that have been creating value and solving problems for their communities and beyond. However, these companies face challenges in accessing capital, markets, and talent, as well as unfair competition from foreign firms that enjoy more favorable conditions. As a result, African indigenous companies are globally undervalued and underrepresented.

I will explore some of the reasons why African indigenous companies are globally undervalued, and what can be done to change this situation. I will also highlight some of the success stories of African indigenous companies that have overcome the odds and achieved global recognition and impact.

One of the main reasons why African indigenous companies are globally undervalued is the lack of awareness and appreciation of their potential and achievements. Many investors, consumers, and media outlets tend to overlook or underestimate the value proposition and competitive advantage of African indigenous companies, and instead focus on the risks and challenges they face. This creates a negative perception and bias that affects the valuation and growth prospects of these companies.

Another reason why African indigenous companies are globally undervalued is the lack of adequate support and enabling environment for their development. Many African countries lack the infrastructure, policies, regulations, and institutions that can foster a conducive ecosystem for entrepreneurship and innovation.

For instance, African indigenous companies often face difficulties in accessing finance, registering their businesses, protecting their intellectual property rights, complying with tax laws, and accessing quality education and training. These factors limit their ability to scale up, expand their markets, and attract talent.

A third reason why African indigenous companies are globally undervalued is the unfair competition they face from foreign firms that have more resources, networks, and influence.

Many foreign firms operate in Africa with preferential treatment from governments, donors, and multilateral organizations, such as tax breaks, subsidies, contracts, and grants. These firms also benefit from their global brand recognition, customer loyalty, and economies of scale.

This creates an uneven playing field for African indigenous companies that have to compete with these firms on quality, price, and innovation.

There are several actions that can be taken to change the situation of African indigenous companies being globally undervalued. Some of these actions include:

Raising awareness and appreciation of the value and impact of African indigenous companies among investors, consumers, media outlets, policymakers, and other stakeholders. This can be done by showcasing the success stories of African indigenous companies that have created innovative solutions, generated employment, contributed to social development, and improved environmental sustainability.

This can also be done by promoting positive narratives and images of Africa as a continent of opportunities, creativity, and diversity.

Providing adequate support and enabling the environment for the development of African indigenous companies. This can be done by improving the infrastructure, policies, regulations, and institutions that can facilitate entrepreneurship and innovation in Africa.

For instance, this can be done by increasing access to finance, simplifying business registration processes, strengthening intellectual property rights protection systems, streamlining tax laws, and enhancing education and training quality and relevance.

Leveling the playing field for African indigenous companies to compete fairly with foreign firms. This can be done by ensuring that foreign firms operate in Africa with transparency, accountability, and social responsibility.

This can also be done by encouraging foreign firms to partner with African indigenous companies to share knowledge, skills, resources, and markets. This can also be done by advocating for fair trade practices and policies that protect the interests of African indigenous companies.

Despite the challenges they face, many African indigenous companies have proven their worth and potential in the global market. Here are some examples of such companies:

Safaricom: Safaricom is a leading telecommunications company in Kenya that offers mobile money services through its M-Pesa platform. M-Pesa has revolutionized financial inclusion in Kenya and other countries by enabling millions of people to send and receive money using their mobile phones. M-Pesa has also enabled the development of other digital services such as e-commerce, healthcare, education, agriculture, and energy.

Flutterwave: Flutterwave is a fintech company that provides payment solutions for businesses across Africa. Flutterwave enables businesses to accept payments from customers using various methods such as cards, mobile money, bank transfers, and cryptocurrencies.

Flutterwave also enables businesses to access global markets by integrating with platforms such as Shopify, Amazon, and PayPal. Flutterwave has processed over $9 billion in transactions across 33 African countries.

Jumia: Jumia is an e-commerce platform that connects buyers and sellers across Africa. Jumia offers a variety of products such as electronics, fashion, beauty, groceries, and books.

Jumia also offers services such as food delivery, travel booking, and classifieds. Jumia has over 6 million active customers across 14 African countries and is the first African startup to be listed on the New York Stock Exchange.

Zipline: Zipline is a drone delivery company that delivers medical supplies such as blood, vaccines, and medicines to remote and hard-to-reach areas in Africa. Zipline uses autonomous drones that can fly up to 100 km and carry up to 1.8 kg of cargo. Zipline has delivered over 100,000 medical supplies to health facilities in Rwanda and Ghana, saving lives and improving health outcomes.

Andela: Andela is a talent marketplace that connects software developers from Africa with global companies that need their skills. Andela provides training, mentorship, and support to developers and matches them with projects that suit their expertise and interests. Andela has over 1,500 developers from six African countries working with companies such as Microsoft, IBM, and Facebook.

African indigenous companies are globally undervalued, but they have the potential and capacity to create value and impact for their communities and the world. They need more awareness, appreciation, support, and fair competition to thrive and grow. They also need more recognition and celebration for their achievements and contributions. African indigenous companies are the future of Africa and the world.