The African style of entrepreneurship

They are mushrooming not only in this part of the world but also in African metropolises: innovation hubs, coworking spaces, collaboration labs. Catalysts for innovation and creativity, for solution-oriented thinking and entrepreneurial initiative. As digitization is spreading in Africa, the continent is fostering innovation at an incredible speed. Maryanne Akoth holds the position of Incubation Manager at TechBridge Invest. She scouts startups and talent for the incubator and collaborates with universities as well as student networks in both Mombasa and Nairobi. Amollo Ambole is the Strategy Lead at the University of Nairobi's Living Lab, which brings researchers and businesspeople together with the goal of solving societal problems. In cooperation with ecotec Austria and identifire, the Living Lab offers learning journeys to “Silicon Savannah” for investors and businesses from Austria.

Undoubtedly, overgeneralization occurs when one attempts to compare Africa and Europe. Ms. Akoth, you have studied and lived in Stockholm. What differences are there between East African countries and, say, Scandinavia as far as entrepreneurship is concerned?

Akoth: Yes, Africa is diverse. I used to work in telecommunications - Ericsson, Nokia, Siemens, Huawei and Alcatel made huge investments in Africa. As part of my job, I traveled to some 13 countries, including South Africa, Ghana, Congo, Tanzania, Rwanda, Mozambique and Sierra Leone. I gained first-hand experience of change through technology.

Akoth: And this is where leap frogging comes in: Stages of development have been skipped. The new technologies have taken entrepreneurship to a new level. As for a comparison of Kenya and Scandinavia: In Scandinavia, you have the traditional expert approach: The young study and become subject-matter experts. This is a luxury we do not have in Kenya. People in Kenya try out different things; their approach is interdisciplinary in nature. We certainly put greater emphasis on collaboration—you don't have to do everything by yourself. Of course, this is not something we have invented. We are looking to create value. More and more innovation hubs are emerging in Kenya, and the government is supporting innovation initiatives. Our services are in enormous demand. We all share a vision: If each and every individual is thriving, all of us are thriving.

Ambole: People expect to have very personal relationships, also with investors. They want to get to know them. Personal meetings are very important. Frequently, the person you know, the person who belongs to your tribe gets the job - your cousin, brother, aunt. Personal relationships and connections matter a lot in Kenya. We think in terms of tribes. As far as the new culture is concerned, we also need to create new kind of tribes where problems are solved - in collaboration with international partners and colleagues.

What methods do you use when it comes to fostering innovation? Are they similar to the European ones?

Akoth: Yes, we highlight what the market wants by means of lean methods, business model canvas and human-centered design thinking. Moreover, we use big data for growth hacking. Basically, our methods are the same as yours in Europe, but not every method works for every problem.

Ambole: We use design thinking a lot for our co-creation processes and brainstorming workshops.

What about the mindset as far as change is concerned? In Austria, the passion for change is not so much part of people's mentality, and in the context of dealing with change in corporate settings, you often have to overcome resistance. What is the situation like in Mombasa?

Akoth: I think many people do not actually know what to change - not least because the societal and ecological problems facing us are huge and numerous. Also, what many fail to realize is that change at the individual level can lead to change at the societal level. We have a strong political class in Kenya in which you should always be anchored. But we also have institutions that should be strengthened.

Ambole: In Africa, people feel the effects of global problems very much at the individual level. Climate change and global warming are everyday realities for them - they have no water, and there are droughts. Climate change will affect Africa far more than the rest of the world. People are already seeing it, and they simply have to do something about it. Therefore, you can much more quickly make them take action.

Akoth: At TechBridge, we have a very successful startup called “Sunami”. Placing great emphasis on sustainability, it offers solar solutions for households in rural regions - solar pumps to help farmers and generate electricity. Hence, farmers can achieve higher yield and, what is more, they can do so in an environmentally-friendly manner. We have more sunshine than we need. Such examples also encourage the young to put their business ideas into practice.

So, are these problems a catalyst for entrepreneurship?

Ambolle: We have no choice. We must start businesses because there are simply no jobs. Hence, people need to create them. The education system in Kenya used to prepare the young for working in the knowledge sector - that is changing. Nowadays, it fosters entrepreneurial thinking and the ability to find solutions to society's problems. Entrepreneurship has come to play a key role in our thinking. We have to become more innovative. I think this is also what European businesses want. We all need to change and learn from one another.

You can read more on what the two experts have to say about entrepreneurship in East Africa here.