Can Africa’s AI Ecosystem Thrive Without a Facebook or Google Equivalent? Is a Homegrown Giant Necessary for Growth?

Over the past few weeks, I've spent my spare time posting short tutorials about AI and startups on my WhatsApp status, mainly for my contacts. The goal is to encourage people to get involved in tech. However, it often feels like I'm selling a pipe dream, as most people here, don't have the luxury to pursue such projects. Many are focused on survival and immediate returns.

I've also heard many people tell African founders to focus on solving "African problems". While this sounds noble, I've had to ask myself: what exactly are African problems? I'm always fascinated by the work that people like Mark Zuckerberg, Elon Musk, and others are doing—building rockets to Mars, virtual reality, and all that cool stuff. That's not really tackling hunger now, is it? So it makes me wonder: why don't we have new breakthrough innovations coming from Africa?

To date, we haven't produced an equivalent to any of the world's biggest brands. We are still yet to see an African startup of Facebook, Google, or ChatGPT's magnitude. Not to say no one's trying. Of course, we've seen the creation of a few unicorns. So we definitely have plenty of people in the trenches, who are actively building, but most of it is reactionary. We are busy playing a game of catch-up. Trying to create Africa's version of Amazon, but not really leading the way in any new frontiers. We are conspicuously absent from the space race, semi-conductors, generative AI, self driving cars, neuroscience etc.

This poses a huge systemic problem, and this article explores the challenges and opportunities of building a homegrown tech giant and why it might be crucial for Africa's sustainable growth in AI.

The Challenge of Context and Reinvestment

One of the primary issues is that African tech startups often focus on local problems. For example, we have at least seven unicorns (I'm thinking Interswitch, Flutterwave, Opay, Digital Services, Wave Mobile Money, Andela, MNT-Halan, and Moniepoint- please forgive me if I didn't mention yours), and all except one have the same thing in common: they are fintech startups. What does that tell you?

While solving regional issues is important, it’s equally crucial to have tech companies that can drive global initiatives and values. For instance, out of more than 3000 African languages, only 12 are supported by Google. This lack of representation highlights the need for a homegrown tech giant that understands and prioritizes African contexts.

Additionally, tech giants like Google and Facebook reinvest in smaller companies, fueling a cycle of innovation and consolidation. This reinvestment is essential for the growth of a robust tech ecosystem. Without an equivalent in Africa, there is a gap in support and funding for smaller, innovative startups.

Plus it helps to have that one big giant that everyone's either trying to befriend or slay. It gives people something to aim for and emulate. Without it, a lot of things seem arbitrary... and maybe that's why our governments don't take 'this whole tech thing' seriously.

The Issue of Brain Drain and Proximity

Africa faces a significant brain drain, with many talented individuals leaving for Silicon Valley and other tech hubs. I've lost count of the number of people who have said to me, "Why don't you move to the US? Do you know how far you'd be if you were in the US?" The reasons for this are manifold, including better opportunities, access to venture capital, and proximity to global tech headquarters. This exodus not only depletes the continent of its brightest minds but also means a loss of potential future innovators who could have built groundbreaking companies in Africa.

Former employees of FAANG companies (Facebook, Apple, Amazon, Netflix, Google) have gone on to create new unicorns, thanks to their exposure to startup culture and cutting-edge technology. Africa lacks this spillover effect, which is vital for building a self-sustaining tech ecosystem.

The Need for a Homegrown Giant

While fintech unicorns are a step in the right direction, they primarily address financial transactions and services. Fintech is an easy sell for Africa- just throw numbers about mobile usage and a thriving informal economy. The true transformative power lies in building a holistic tech and AI platform, which has the potential to fundamentally reshape how people live and interact- and that requires some out-of-the-box thinking. Building a homegrown tech giant in AI could address this gap, providing a focal point for innovation, investment, and talent retention. Selling that vision is harder, more-so if you're in Africa.

The Role of "Building Africa’s Next Tech Unicorn"

All this had me thinking: if we have to wait for the world to build so that we can try to copy, we will always play second fiddle. I believe it's time we start reimagining the future. About three months ago, I started an initiative called "Building Africa’s Next Tech Unicorn," which aims to inspire the next generation of African leaders by giving a behind-the-scenes look at what it takes to build a startup. As I struggled to get my first 10 users, I remember thinking "this probably isn't my smartest idea". The vulnerability of building in public's scary but I believe you can always learn something- even from my failure. Right? So I'll take one for the team.

I started off the channel with a business/fintech focus, but I'll be shifting to AGI and, hopefully, it will inspire someone to think big and build the next Google or Facebook. By showcasing the significance of what we're trying to achieve, we hope to catalyze a shift in mindset. It’s not just about solving local problems; it’s about creating world-changing innovations right here in Africa.

Conclusion

Africa's AI ecosystem can indeed thrive, but the journey will be significantly accelerated with the presence of a homegrown tech giant. This giant would not only drive AI innovation but also create a ripple effect of growth, investment, and talent development. It’s time for Africa to step up and lead the next wave of the tech revolution.