“Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I did too, so I made the decision to significantly increase our investments. Unfortunately, this did not play out the way I expected.”
Africa has not been isolated from the global tech reality. Reduced funding, high global inflation, and the ongoing Russia-Ukraine war influencing economic responses have led to reduced funding to start-ups. This has led some start-ups like Kuda, Quidax, Swvl, Wave, and others to announce layoffs this year.
“It is likely to get worse towards the end of the year, although by next year it will start shaping up again. Between now and when things start getting better, start-ups without solid bases are at risk. A lot of this is already happening in the US. Start-ups are struggling and laying off staff, and when this is happening, it mirrors what might happen here too.”