This hype has led to a lot of unrealistic expectations and it is unfortunate. A few weeks ago, Naspers shut down its online business directory, Mocality in Nigeria and Kenya to much dismay. Many were shocked. They were shocked as well when mobile advertising company, InMobi shut down its Africa office. The truth is that they needn't be. Winning in tech in Africa and elsewhere has never and would never be an easy race. The situation is further compounded in Africa where weak systems and marginal digital advertising markets make it even more difficult to make money online. Anyone looking to make a quick buck will be sent scampering. Everyone else brave enough to wait things out has no choice but to enjoy the ride, for better or for worse.
Africa is young and growing - a market filled with boundless opportunities for long term investors. The length of time required for success is unknown but in the meantime, the ride would be bumpy. These are simply growing pains and nothing more. Ultimately, only the patient will survive.
Investors and entrepreneurs building tech companies are essentially banking on two things - exponential growth in the earning potential of the average African and massive increase in the availability of the internet to more and more Africans over the next decade.
Continue reading the full story on www.cp-africa.com.
