Information Systems Integration – Tony Messina

Can African Tech Startups Succeed with Google and Facebook Dominating the Industry?

In African markets, information and communication technology are facilitating and improving the process of socioeconomic developments. However, large companies like Google and Facebook are making it difficult for African startups to make a profit. For example, WhatsApp has made texting and calling free which has disrupted the local telecom businesses. Facebook beame the second largest e-commerce company after Jumia, the industry leader in Africa. Facebook has made it possible for merchants to reach millions of potential customers at no cost without having the typical marketplace subscriptions and this causes traditional e-commerce to diminish. With large companies controlling the industry, African startups continue to suffer.

Should these startups focus on niche areas like agriculture tech and waste management? Another option they could consider is relocating to the U.S, specifically Silicon Valley, where they would have better access to enabling infrastructures like finances, talent, and legal systems. What are the benefits of either of these options and what could some potential implications be?

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