The hardest problems facing the world are unevenly felt, and often the entrepreneurs with the most context and most authenticity sit closest to the problems themselves. There is no shortage of talented people who aspire to solve them. However, people best positioned to solve these problems don't always go to the best schools, look or sound a certain way, or mingle with the right people. This often means that many of these ideas struggle to raise capital. Nowhere is this more acute than in Africa. There was never a shortage of compelling ideas and driven entrepreneurs, just an uneven distribution of resources and capital. Now that the barriers to resources have fallen, it’s time for capital to follow suit.
Why we are bullish about Africa
🧑🤝🧑 Current Demographics
With a median age of 19.7 in 2020, Africa’s population is already the youngest in the world (versus median age of 31 in LatAm , 32 in Asia, 39 in Northern America and 43 in Europe). Today, 60% of Africa’s population is younger than 25 years, and more than a third between 15-34 years old
👨👩👦👦 Future Demographics
In 25 years, Africa will be home to more than 2.5 billion people (~25% of the world’s population).
Currently, more than 50% of Africans live in urban areas. This figure is projected to increase to 75 percent by 2050, at a growing rate of 65 million urban dwellers annually. By 2100, 13 of the world’s 20 biggest urban areas will be in Africa — up from just two today — with Lagos becoming the largest city in the world with more than 80M inhabitants.
📲 Smartphone penetration
Technology has made it possible for billions of people globally to have access to a wide range of services using a $20 smartphone. Smartphone penetration is expected to increase to 75% by 2025.
Currently, 272 million Africans are now connected to the Internet on their phones (~ 26% of the population) and this is estimated to double by 2030. As internet penetration continues to increase, Africans will increasingly engage in the global technology revolution.