The African tech startup scene is exploding with innovation and potential. But in the rush to secure funding, a crucial element can sometimes be forgotten: the customer. This blog post reviews that for African startups to achieve sustainable success, we need to prioritise building products and services that truly solve the needs of the target audience. 

ELEMENT ONE. Identifying Real Problems in Africa to Solve

‘Avoid solving hypothetical issues. Instead, address the actual issues.’- Aboyeji Iyinoluwa, the founder of Andela and co-founder of  flutterwave companies.

The capacity to recognize and address pressing issues is a critical component of African digital entrepreneurs’ success. There are many difficulties in Africa, from poor healthcare systems to restricted access to banking and educational opportunities. Businesses that tackle these problems head-on have a better chance of making a significant impression and succeeding in the long run.

How to recognize actual issues for Tech startup

1.  Adequate knowledge of the local environment. This entails interacting with the groups they hope to serve and carrying out in-depth study. Startups might discover hidden difficulties and possibilities by immersing themselves in local culture and getting firsthand knowledge. Along with helpful navigation of Africa’s complicated regulatory and cultural terrain, these relationships can offer insightful information and resources. 

2. Startups can better understand the issues they are trying to address and create solutions that work by collaborating with regional stakeholders. 

3. Through problem-solving and identification, businesses can develop products that significantly improve the lives of consumers in Africa. This not only helps to advance the continent’s social and economic growth, but it also positions companies for long-term success.

ELEMENT TWO. Building for Customer, Not Investor

In the rapidly evolving realm of technology startups, there is a strong temptation to prioritise impressing investors and obtaining cash. Although finance is unquestionably vital, African companies must change their perspective and put customers before investors when developing products. This is because a startup’s success ultimately depends on its ability to provide value to its target audience. Through comprehension of African consumers’ requirements and preferences, companies can establish robust customer relationships and win their commitment.

African customers possess distinct needs and expectations that frequently diverge from those found in other regions of the world. Tech firms have a better chance of success if they take the effort to comprehend these subtleties and modify their offerings accordingly. This entails developing solutions that are especially tailored to satisfy the needs of African clients rather than merely copying Western models.

Insight on how to build for customers 

1. comprehensive market analysis. This entails developing a thorough awareness of the target audience’s goals, problems, and desires. Surveys, interviews, and focus groups can help startups gather useful insights. By incorporating these insights into their product development process, companies may ensure that their offers are in line with their consumers’ needs.

2. Give user experience (UX) design top priority. This entails designing user interfaces that are simple to use, comprehend, and traverse. African consumers frequently have limited access to technology and may be unfamiliar with complicated interfaces. Startups can increase their product accessibility and appeal to a larger audience by investing in UX design.

3. Developing goods and services that appeal to African customers. Through a thorough grasp of their distinct requirements, inclinations, and limitations, businesses can create solutions that genuinely enhance their lives.

ELEMENT THREE: Recognizing the Value of Customer Stories

Customer stories are critical to establishing confidence, credibility, and insights when starting a successful digital firm in Africa. Startups can learn about the effects of their goods and services on their intended market by interacting with consumers and gathering firsthand accounts. On the basis of actual experiences, it also aids in the improvement and refinement of offerings.

Importance of customer stories

1. Customer stories provide startups with valuable feedback that can guide product development and marketing strategies. By listening to their customers’ experiences and understanding their pain points, startups can make informed decisions about how to enhance their offerings. This iterative process allows startups to continuously improve and meet the evolving needs of their customers.
2. Customer stories are a powerful marketing tool. Positive stories and testimonials from satisfied customers can build trust and credibility, attracting new customers and investors. African consumers often rely heavily on word-of-mouth recommendations and personal experiences when making purchasing decisions. By leveraging customer stories, startups can tap into this influential marketing channel and amplify their reach.
3. Customer stories humanise the startup and create an emotional connection with the audience. Sharing stories of how the startup’s products or services have positively impacted people’s lives can inspire trust and loyalty. This emotional connection goes beyond transactional relationships and fosters a sense of community and shared values.

 How to Gather and Leverage Customer Stories

Gathering and leveraging customer stories requires a proactive approach and a commitment to customer engagement. Here are some strategies that startups can implement:

• Actively seek customer feedback: Startups should create channels for customers to provide feedback and share their experiences. This can be done through online surveys, email campaigns, or social media engagement. By actively seeking feedback, startups can gain valuable insights and identify areas for improvement.
• Conduct customer interviews: In-depth interviews with customers can provide rich qualitative data and uncover valuable insights. Startups can ask open-ended questions and encourage customers to share their stories and experiences. These interviews can be conducted in person, over the phone, or through video calls, depending on the startup’s resources and the customers’ preferences.
• Encourage user-generated content: Startups can encourage customers to share their experiences on social media platforms, blogs, or review websites. This user-generated content serves as authentic testimonials and can have a significant impact on building trust and credibility. Startups can incentivize customers to share their stories by offering discounts, exclusive access, or other rewards.
• Utilise storytelling techniques: When leveraging customer stories, startups should focus on creating compelling narratives that resonate with their target audience. This involves highlighting the challenges faced by customers, the solutions provided by the startup, and the positive outcomes achieved. Startups can use different media formats such as written testimonials, videos, or podcasts to tell these stories effectively.

SOME EXAMPLES OF SUCCESSFUL TECH STARTUPS IN AFRICA.

Africa has witnessed the rise of numerous successful tech startups that have taken note of the unique challenges and opportunities in the continent. These startups have adopted innovative approaches to address pressing issues and have achieved remarkable success in the process. Let’s take a look at some notable examples:

1. Flutterwave: This Nigerian fintech startup, founded by Olugbenga Agboola and Aboyeji Iyinoluwa in 2016 has revolutionised the way payments are made and received in Africa. By providing a seamless and secure platform for online transactions, Flutterwave has facilitated e-commerce and digital payments across the continent. The startup has gained recognition for its customer-centric approach and has successfully raised significant funding to fuel its expansion.
   
2. M-KOPA Solar: M-KOPA Solar was founded by the trio; Nick Hughes, Chad Larson and Jesse Moore in Kenya, 2011. Since, access to electricity is a significant challenge in many parts of Africa. M-KOPA Solar, has tackled this problem by providing affordable and accessible solar energy solutions. Through a pay-as-you-go model, M-KOPA Solar has made clean energy accessible to millions of people, empowering them to improve their quality of life.

3. Twiga Foods: Twiga foods was founded by Peter Njonjo in 2014 with the aim of disrupting the traditional agricultural supply chain by connecting small-scale farmers directly with urban retailers. Twiga Foods leverages technology to streamline the distribution process, reducing post-harvest losses and ensuring fair prices for farmers. The startup has gained traction and has expanded its operations to other African countries.

4. Andela, a Nigerian tech company founded in 2014 by Iyinoluwa Aboyeji & co, with the goal of  connecting businesses with skilled remote software engineers in Africa and beyond. They originally trained junior developers but now recruit mid to senior levels too. They boast a focus on building strong talent-client matches and a commitment to “Excellent, Passionate, Integrity, Collaboration” (EPIC) values.

These examples highlight the importance of understanding local challenges and developing innovative solutions that address them. By taking note of successful startups like Flutterwave, M-KOPA Solar, Twiga Foods, and Andela, aspiring entrepreneurs can gain inspiration and insights into how to create impactful businesses in Africa.

Conclusion. To thrive in Africa’s tech scene, startups must prioritise customers, focus on solving real local problems through human-centred design, and leverage customer stories for feedback and marketing. 

By understanding user needs, tackling critical challenges, and building trust with customers, African startups can unlock the continent’s vast potential.

NOTE: All information provided in this blog post is based on the discussion of Aboyeji, the co-founded Andela and Flutterwave on Venture Valley, a Youtube platform.