Africa’s Next Unicorns Could Come From Financial Inclusion and the Creative Economy, Investors Say
Africa’s next billion-dollar companies might not come from traditional fintech. Investors now see big opportunities in financial inclusion, the creative economy, sports, and small businesses as key areas for high-growth ventures.
This idea came up at the latest UBA Business Series, where investors, entrepreneurs, and business leaders talked about how African founders can build scalable companies by meeting local consumer needs rather than copying business models from other regions.
Held at the corporate headquarters of United Bank for Africa (UBA) Plc in Lagos, the event was themed “Building for Africa’s Realities: Turning Consumer Feedback into Technology-Driven Solutions.”
The discussion focused on how entrepreneurs can use customer behavior, data, and technology to identify opportunities and develop products that reflect the realities of African markets.
The next big opportunities may lie beyond fintech
While financial technology has produced some of Africa’s most prominent startups, speakers at the event argued that the continent’s next generation of billion-dollar businesses could come from a broader range of industries.
While financial inclusion remains one of the most significant opportunities, with millions of Africans still lacking access to affordable banking, credit and other financial services, investors and business leaders have also identified the creative economy, sports and the SME sector as industries with the potential to produce globally competitive companies.
This is as a result of the unmet needs across the continent. As venture funding becomes more selective, businesses that can identify significant local problems and solve them at scale may have a stronger advantage over companies built primarily around imported models.
Customer behavior can reveal the next business opportunity
A recurring theme during the discussion was the importance of paying attention to what customers actually do.
Media entrepreneur Adaora Mbelu, who moderated the panel, encouraged entrepreneurs to observe their environments closely rather than simply follow trends.
“Building is not reserved for the smartest person in the room. It is about being observant enough to understand people, behavior and context. The greatest opportunities often emerge from paying attention to what others overlook,” she said.
Femi Aluko, co-founder and chief executive officer of Chowdeck, offered the company’s development of Chowstore as an example of how customer behavior can reveal new commercial opportunities.
According to Aluko, purchasing patterns observed on Chowdeck’s platform helped the company identify an opportunity to expand into grocery delivery.
The example he shared highlights a broader lesson for African startups: the next product opportunity may already exist within the behavior of an existing customer base.
Rather than assuming what consumers need, businesses can use their interactions, purchasing decisions and recurring frustrations to identify where new products and services could create value.
M.I sees AI as an opportunity for African creatives
The creative economy also featured prominently in the discussion, with rapper and entrepreneur M.I Abaga arguing that artificial intelligence could create new opportunities for African creators.
Rather than viewing AI only as a threat to creative professionals, he described the technology as a tool that could help creators improve productivity, expand their reach and develop products for international markets.
“Technology has always been part of creativity. AI gives African creators the opportunity to compete globally, solve bigger problems and build businesses that serve international markets,” he said.
M.I also pointed to the changing relationship between creators and their audiences.
Digital platforms have enabled artists and other creative professionals to build more direct relationships with their communities. However, the growth of these relationships has also increased the need for stronger financial and business structures to help creators turn audience attention into sustainable enterprises.
As Africa’s creative economy evolves, it is becoming clearer that the solution will encompass building the businesses, platforms, and technology that help creators distribute, monetize, and scale, beyond producing more music, films, designs or other creative work.
Investors are looking for founders who understand the problem
From an investment perspective, Ashim Egunjobi, venture capitalist and co-founder of Octerra Capital, said the quality of a business cannot be judged by a polished pitch alone.
Investors, he said, are diverting more interest towards founders who understand the problems they are solving and can adapt as market conditions change. The era when a compelling idea and a large market opportunity could easily attract funding seems to be giving way to greater scrutiny around customer demand, business fundamentals and the ability to execute.
For founders, understanding the customer is therefore becoming part of the case for investment, more than a product development exercise.
Africa’s biggest companies may be built around overlooked problems
The discussion at the UBA Business Series hints at a significant shift in the African startup ecosystem.
The continent’s next major companies may not necessarily emerge from businesses trying to recreate Silicon Valley models for African consumers. They could come from founders who identify problems that are specific to African markets and build solutions around the way people actually live, work and spend.
The creative economy, sports and the millions of small and medium-sized businesses that continue to operate within fragmented systems across the continent are now taking greater spotlight than before. Still, it is wise to note that while technology can help these sectors scale, it is unlikely to be enough.
The companies most capable of becoming global businesses may be those that combine technology with a deep understanding of local behavior and recognize that some of Africa’s biggest opportunities are hidden in problems that have long been treated as too ordinary, too complex or too fragmented to solve.
As investors become more selective and competition for capital intensifies, customer insight may prove to be one of the most valuable assets a founder can possess.
