As a product manager, I’ve observed that the African technology startup scene has been steadily making progress in recent years, with many successful companies emerging from the continent. These startups have managed to identify unique product opportunities that have enabled them to make a positive impact in their communities while creating thriving products. In this article, I will share insights on the step-by-step process of building a successful technology product in Africa and take a closer look at some of the successful African startups, such as Twiga Foods, Zipline, Sokowatch, SweepSouth, and Migo.
From a product manager’s perspective, here are the key steps to building a successful technology product in Africa:
Identify a Problem: As a product manager, my first task is to identify a problem that needs solving. This problem could relate to any aspect of life, including healthcare, education, agriculture, finance, or transportation. Identifying the problem is crucial in shaping the product’s direction.
Invest in User Research: User research is a critical aspect of product management. As product managers, we must focus on understanding our users’ needs and pain points. I believe the field of User Research will eventually become independent of product management roles, given its vast scope and importance.
Conduct Market Research: Upon identifying a problem, market research is necessary to determine the feasibility of building a product to solve that problem. This research should include an analysis of the target market/audience, competitors, and potential revenue streams.
Build a Team: A strong team of skilled professionals is essential for building a successful technology product. This team should include developers, designers, marketers, researchers, and business analysts.
Develop a Minimum Viable Product (MVP): The MVP is a basic version of the product that allows us to test the market and gather feedback from users. The MVP should include the product’s core features and be developed in a way that is scalable and flexible.
Test and Iterate: Once the MVP has been developed, it’s important to test it with users and iterate based on their feedback. As a product manager, I continuously work with designers, developers, and researchers to refine and improve the product based on user feedback and market research.
Launch and Scale: The final step in building a successful technology product is to launch it and scale it to reach a wider audience. This may involve developing new features, expanding into new markets, or raising additional funding.
Here are some notable African startups that have effectively implemented the step-by-step process and whose strategies I admire for achieving success:
Twiga Foods
Twiga Foods is a Kenyan startup that is using technology to connect small-scale farmers directly to informal retailers, bypassing the middlemen who often take a large share of the profits. The company has over 17,000 farmers and 8,000 vendors on its platform and delivers over 4,000 orders daily to vendors in Kenya. Twiga Foods raised $30M in a Series B funding round in 2019.
Zipline
Zipline is a California-based startup that has developed a drone delivery service for medical supplies in Africa. The company has delivered over 1 million medical products to health facilities across Rwanda and Ghana, and its drones have flown over 2 million kilometers in total to deliver medical supplies. Zipline raised $190M in funding from investors such as The Rise Fund, Baillie Gifford, and Katalyst Ventures in 2019.
Sokowatch
Sokowatch is a Kenyan startup that provides a platform for small retailers to order goods directly from manufacturers. The company has over 15,000 active retailers on its platform, and operates in five countries across Africa, including Kenya, Tanzania, and Rwanda. Sokowatch raised $14M in a Series A funding round led by Quona Capital in 2020.
SweepSouth
SweepSouth is a South African startup that provides an on-demand cleaning service. The company has over 15,000 registered cleaners on its platform, operates in South Africa, and recently expanded to Kenya. SweepSouth raised $5.6M in a Series A funding round led by Smollan and Identity Development Fund in 2019.
Overcoming Challenges in Africa’s Tech Landscape
In my experience as a product manager, creating a thriving tech product in Africa presents its own set of challenges. However, understanding and addressing these obstacles can help founders and product teams navigate the landscape more effectively. Key challenges include:
Infrastructure Constraints: Robust infrastructure is crucial for technology products to function optimally. In Africa, limitations in areas such as electricity, internet connectivity, and communication systems can hinder the scalability and adoption of tech products.
Restricted Funding Access: Compared to other regions, African entrepreneurs face greater challenges in securing capital and funding. Consequently, many African tech startups struggle to obtain the resources needed to scale and compete on a global level.
Smaller Addressable Market: Despite Africa’s growing population, the market for tech products remains relatively small compared to other regions. This can make it difficult to achieve substantial growth and revenue. While the continent’s population is expected to surpass China by 2050, the addressable market for tech products still has room for expansion.
Cultural Diversity: Africa’s rich cultural and linguistic diversity can pose challenges when developing products that cater to a broad range of backgrounds and languages.
Political and Regulatory Factors: Unstable and unpredictable political and regulatory environments in some African countries can impede tech startups’ operations and expansion efforts. The impact of such environments on payment systems and cryptocurrencies, for instance, has been evident in recent years.
From my experience developing products at Mecho Auto, one key ingredient for our success was having a ready market for our product. We set out to address a solve the massive problem of auto maintenance in Africa. We created a network of vetted mechanics, spare part vendors, and an app that enables easy booking, payment, and mechanic matching processes. This product shipped fast because the addressable market though small was willing to pay to access a pool of certified technicians and genuine spare parts. Furthermore, we incorporated a B2B model, offering services to large fleet owners, which ensured we had big-ticket customers who rely on us to meet the needs of different value chains in the automobile industry. For startups to diversify their revenue streams, it is imperative to continuously engage users to inspire new features and product lines.
In conclusion, the growth and success of African technology startups showcase the incredible potential and resilience of entrepreneurs on the continent. Despite facing unique challenges, such as infrastructure limitations, limited access to funding, and cultural barriers, these startups have demonstrated that it is possible to build successful technology products by following a step-by-step process that focuses on problem-solving, user research, market research, and continuous iteration. As more startups like Mecho Autotech, Twiga Foods, Zipline, Sokowatch, and SweepSouth emerge, it is vital for African governments, investors, and communities to provide the necessary support and resources to facilitate the growth and expansion of the tech ecosystem. By overcoming these challenges, African startups will continue to transform industries and positively impact the lives of millions of people, leading to a brighter future for the continent and its people.
Lawrence Otu is a Product Manager at Mecho Autotech Ltd. He can be reached by email at lawrenceotub@gmail.com
