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Why African Tech Startups Fail and How to Mitigate Risk

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Tech Startups

By Otori Emmanuel

Technological start-ups in Africa are innovative about providing solutions to challenges that exist in Africa. However, with these solutions come several bottlenecks which eventually create a barrier to the survival and sustainability of the business.

There are several factors that contribute to the failure of start-ups in Africa and the ability to learn from these failures would support a new way of thinking to help mitigate these risks.

In this publication, I would be sharing risk factors from working with not less than 100 companies in the technological, FMCG, retail, agro, fashion, events, confectionary and manufacturing in providing consultancy services and some of the patterns I found led to the business failure.

  1. Huge Injection of Capital Without Traction

Generating and implementing an idea has to go through several stages of design thinking to ascertain the viability of such a product before it is released into the marketplace based on the feedback from prospective end users.

Due to the fact that some early-stage entrepreneurs have already built a name in the ecosystem can easily make them access funding even when an idea is still just an idea that has not been properly researched but because entrepreneurs sometimes are also very emotionally attached to an idea sometimes, they can make several assumptions without considering the facts and then begin to seek capital inflow to kick-start this idea.

Traction is important because it signifies growth and growth could be seen in the form of demand which eventually leads to cash flow. Investing in an idea is too risky and even riskier for an early-stage entrepreneur with limited experience and exposure.

In order to ensure an idea would scale, it is important to employ design thinking to limit assumptions.

  1. Not Working With the Right Team

Not Working with the right team has huge consequences in itself. A start-up should have one core, and it is in the ability to execute with the team. Because most start-ups bootstrap at their early stage, they tend to work with whoever is available and not necessarily the skilled and competent professionals who would hit the ground running and deliver the required expectations.

I remember working in a pharmaceutical start-up where mislabeling of medications occurred because the professional involved was not aware of the procedures as a pharmacist would. This could have been a huge mistake if it was unnoticed until it reached the retailer who did checks and found out.

The right time would limit the time a task is expected to be done. Start-ups should never play down on experience, proficiency and competence. In fact, it is necessary to develop specific in-house procedures for hiring that suits the company’s culture.

  1. Lack of Product-Market Fit

A product could be a fantastic one, but if the market is not ready, then its sustainability is questionable. A very innovative start-up that came with the idea of solving the challenges of travel is GoMyWay, this Start-up was launched in Nigeria but did not thrive.

Was the product fit for the market in terms of providing the needed solution to the already existing challenges, I would say yes, however, factors such as kidnapping, assault, killings have created trust in the mind of travellers and so this travelling application that was supposed to connect a traveller with a car with another traveller going in the same direction could not survive because the safety of travellers was in question.

  1. Government Regulations

Several administrations of government have worked tirelessly to make the business environment conducive, however, there are still gaps to ensure that the start-ups do not get gagged as their benefits are very key to economic development.

The recent move to create a start-up bill to ensure that the interest of start-ups can be protected is one to secure sustainability and increase interactions with regulators in such a way that regulations understand the peculiarities of these businesses and work around policies that would not see capital investments go down the ground with just a regulation.

I believe the start-up bill would create stakeholders in the overall value-chain and then ease how business is done.

There are other factors that contribute to business failure and the listed are some common ones that affect businesses based in Africa.

I however believe that as there is an ongoing conversation to create a roundtable for stakeholder’s interaction, there would soon exist synergy in the ecosystem.

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Fibre Cuts: Expert Blames Road Construction for 60% of Network Outages

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Fibre cuts

By Modupe Gbadeyanka

The chief executive of Dimensions Data Limited, Mr Gbenga Olabiyi, has blamed road construction for 60 per cent of network outages caused by fibre cuts.

Speaking recently at the National Dig-Once Policy Forum, which marked the 8th Policy Implementation Assisted Forum (PIAFo), he drew attention to the gap between the infrastructure Nigeria has and what it can actually deliver if a coordinated framework is adopted.

“Nigeria currently has about 35,000 kilometres of fibre in the ground, yet only 16 per cent of Nigerians are connected to it. Broadband penetration stands at 45 per cent. Lagos alone has a penetration rate of over 70 per cent,” Mr Olabiyi said.

He emphasised that the failure to address the missing fibre link over the years has led to saturation of connectivity in urban centres, while the hinterlands are left either unconnected or poorly served.

At the same programme, convened by Mr Omobayo Azeez, stakeholders in the telecommunications sector called for the adoption of the dig-once policy to lower the costs of fibre deployment, reduce infrastructure damage, improve safety, and shorten rollout timelines.

Quoting the Nigerian Communications Commission (NCC), it was noted that of the 50,000 fibre cut incidents recorded in a year, about 30,000, which represents 60 per cent, occurred during road construction and rehabilitation.

Stakeholders thus called for a review of existing road construction and building codes to accommodate the installation of fibre conduits in the original design standard of the infrastructure planning.

“What Dig-Once offers is an opportunity to correct this,” the president of the Association of Telecommunication Companies of Nigeria, Mr Tony Emoekpere, stated.

He added that even operators frequently damage one another’s cables during repeated digging, thus increasing repair costs and service disruptions.

The Deputy Director of Strategic Business Initiatives at ipNX Nigeria Limited, Mr Segun Okuneye, said under the dig-once policy, road contractors should install ducts during construction.

He said the repeated excavation of the road leads to incessant destruction of existing infrastructure and triggers service blackouts with operators bearing additional costs of repair of replacing the fibre.

Also, the chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Mr Gbenga Adebayo, said operators should focus not just on digging once but on eliminating unnecessary digging altogether by sharing existing infrastructure and jointly replacing legacy cables.

“Early fibres laid 15 to 20 years ago are now ageing, and the industry needs a plan to replace them without everyone digging the same routes again,” he said.

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How to Level Up Customer Support Automation Today

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Customer Support Automation

One of the most powerful ways to modernize a support team is by optimizing support operations with AI automation.

When implemented thoughtfully, automation doesn’t replace human agents—it elevates them.

Less duplicated work‚ resolving issues faster‚ and providing a consistent experience on different channels․

Since there are many content formats in the current content environment‚ the most effective formats for guidelines are those that are structured‚ practical‚ and focused on “what you can actually do,”‚ as opposed to abstract theory․

This article follows that same intent‚ and seeks to document the journey to better customer support automation‚ without mentioning brand names or links․

1. Automate first‑contact triage with smart workflows

One of the common entry points into support automation is to respond to end customers’ requests as soon as they are received‚ rather than making them wait for a human agent to pick up a chat channel or email, as is customary․

This is done through clever workflows that ask a few questions‚ qualify and classify the issue, and recommend a next best action․

This can mean transferring to a human agent‚ directing the user to a specific help article‚ or beginning a guided self-service flow right within the chat․

It reduces the friction to get started and shows customers they are being heard from the first message․

It reduces the burden on agents because they only see tickets that require human judgement․

In the best implementations‚ the bot feels like a helpful assistant and not a hindrance to the customer reaching a resolution․

2. Route tickets with intelligence, not just speed

Responsiveness is still important‚ but smart routing is what takes automation from simple ticketing to responsive‚ scalable support․

Instead of shuffling tickets to the agent available‚ the system can route based on the subject‚ difficulty‚ language‚ or even expected resolution

This way, billing problems are routed to billing experts‚ complaints about product setup are routed to technical experts‚ and routine status inquiries are routed to agents who can handle volume․

For example‚ clever routing could send high-touch or high-stakes tickets to a more senior agent or tickets that ask the same question repeatedly to agents specialized in a specific workflow․

It’s this kind of intelligence that allows teams to be faster and happier when they are thinking of routing-based automation beyond simple round robin distribution․

3. Turn FAQs into self‑service journeys

Another area the current content focuses on is changing the format of FAQs into more interactive self-service experiences that guide customers through flows‚ checklists, or conversational search‚ as opposed to serving them a long list of links‚ making it easier to discover a solution․

This reduces the need to create tickets in the first instance and reduces the support workload by focusing on more high-value ‚ complex interactions․

An organized help center can examine common patterns in failed searches and proactively suggest the most appropriate articles or troubleshooting steps․

It can also serve as the backbone for mini-chatbots that can guide the user through setup‚ configuration‚ or troubleshooting paths without opening a ticket․

When teams invest in AI automation to better support their operation‚ a self-service capability is often one of the first investments made․

4. Automate routine follow‑ups and escalations

In modern ticketing systems‚ the entire life cycle of the ticket from its creation can be automated․

Instead of relying on agents to remember to do a status update‚ a satisfaction survey‚ or an escalation‚ rules can be set up to automate these processes․

For example‚ if a ticket has been placed in the “pending customer reply” state for a specified period of time‚ a notification to the customer can be sent out to remind them‚ or if a complaint has not been resolved within any specified period‚ the ticket can be escalated to a manager․

The result is processes that are always followed‚ never missed SLAs‚ less manual work‚ and agents are freed up from the tedious tracking of time and sending reminders to focus on resolving problems․

A mix of automation and human intervention is often the optimal solution for a better experience for customers and agents alike․

5. Use AI to draft and summarize responses

AI-assisted writing has become the norm to scale support teams‚ with the tool helping staff draft an initial response‚ summarize long email threads‚ and suggest templated replies which agents personalize․

It is especially useful in high-volume or multi-language support environments‚ where replies to common questions must be timely and consistent

This type of automation doesn’t replace agents‚ but acts as a force multiplier for them‚ ensuring that baseline questions are answered correctly and on-brand‚ while still enabling subtlety and empathy in less obvious situations․

Some teams use AI to translate or simplify support communications for different audiences‚ enabling them to support global customers without needing to hire additional staff․

6. Automate onboarding and welcome communications

Automation can also play an important role in onboarding‚ by providing an automated welcome sequence for new customers to help them get set up‚ implement best practices‚ and learn about key features and resources․

These sequences can incorporate email‚ in-app messages‚ and chat prompts to create a cross-channel experience

To the support staff who deal with these customers‚ this reduces the number of “I don’t know where to start” help desk questions that pile up in the first few days after signing up․

Perhaps more considerably‚ walking users through the most important workflows has contributed to increased activation and retention rates

One of the most visible ways to use AI automation in support is by transitioning from firefighting to empowering customers and agents with self-service and insights․

7. Trigger proactive support with behavior signals

An even more advanced form of automation involves proactively reaching out to customers before they reach out to you by identifying usage trends or risk signals based on the way they are using the product․

For example‚ when a user repeats the same action‚ fails to complete a key workflow‚ or is beginning to disengage‚ a system could send a personalized message or offer assistance before the customer churns․

These models may be based on behavioral analytics and artificial intelligence models‚ which have tracked tens of thousands of data points‚ events‚ and user behaviors to identify signals that can be used in a support flow to prevent and surface issues before they arise to improve customer satisfaction․

As well‚ proactive messaging must be finely tuned so as not to be perceived as spam‚ and teams iterate based on feedback and response rates․

8. Automate feedback collection and analysis

Many teams capture this feedback automatically as part of their improvement processes‚ for example‚ automatically sending out a customer satisfaction survey once a ticket is closed or analyzing customer messages to understand the sentiment

This can also support testing‚ benchmarking‚ tracking performance versus targets‚ identifying trends and patterns to tackle, and prioritizing product or process changes․

For support leaders‚ this automation means raw interaction data is transformed into structured insights

Instead of manually reviewing tickets‚ they view dashboards containing information about common problems‚ emerging topics‚ agent performance‚ etc․

Another effective way to improve efficiency in support is through AI automation․

Every interaction can be a learning and improvement opportunity․

9. Integrate omnichannel experiences

Omnichannel integration is a common thread in customer support automation workflows

Customers do not care what channel they are in․

Customers expect the context to move with them as they continue the conversation via chat‚ email‚ phone‚ social media, or in an in-app message

Automation across channels offers the advantage that each interaction builds on prior interactions‚ instead of beginning with a blank slate․

For example‚ if a customer starts a chat conversation and later sends an email‚ we want to show the chat conversation in the history view for the email conversation‚ and vice versa‚ so that the agent doesn’t have to ask the customer for context each time․

This is a feature that differentiates fragmented support experiences from single-threaded experiences‚ and is a common area of focus for teams modernizing their support workflows․

10. Build a feedback‑driven automation roadmap

The best customer support automation is not a single project․

Top teams start by identifying manual activities that take the most time or happen most often‚ and then determine which of those can be fully or partially automated

They roll out gradual changes and analyze their effects in order to improve them based on real-world data․

This roadmap often includes:

  • Pinpointing the top 20% of support scenarios that consume the most time.
  • Designing workflows that combine bots, knowledge bases, and human agents.
  • Continuously monitoring metrics like resolution time, satisfaction scores, and agent workload.

By combining this with a full focus on AI automating support operations‚ your support function can be scaled better

There are options emerging like Ferndesk, which do seem to align with most of these points․

But the fundamental principle remains for any support teams the same: to automate support to be faster‚ smarter, and more human․

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Can Nigeria Build Enough Solar Panels? TechCartel Breaks Down the New Taxes on Imported Tech

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New Taxes on Imported Tech

There was a time when a solar panel on a Nigerian rooftop was a luxury, the kind of thing you saw at a hotel or a church with generous donors. That time has passed. Across the country, solar panels have become a defining feature of the skyline, appearing on rooftops and office blocks in nearly every neighborhood. Once viewed as a luxury, solar has transitioned into a fundamental necessity for millions of households and businesses. For many, it serves as the foundation of their daily power needs.

The Federal Government has now moved to change how those panels get into the country, and the implications are landing on an energy market that has quietly built its entire informal infrastructure around imported solar hardware.

According to a detailed breakdown published by TechCartel, one of Nigeria’s most closely watched tech publications for consumer technology, the government is not staging an overnight ban. What it is staging is a structured financial squeeze: higher import taxes on finished solar panels, lower duties on raw materials for local manufacturers, and a 2036 target for 100 percent local production.

The policy timeline started earlier than most people noticed. In March 2025, the Minister of State for Technology, Uche Nnaji, announced a Solar Import Phase-out Roadmap. The stated motivation was the import bill, which crossed ₦200 billion in a single year. By January 2026, the Rural Electrification Agency reported that local manufacturing capacity had grown from 120 MW to 300 MW. On April 1, 2026, the Minister of Finance signed the 2026 Fiscal Policy Measures, formally introducing Import Adjustment Taxes on finished solar goods. A Green Tax Surcharge follows on July 1, 2026.

For anyone who opened an import Form M before April 1, there is a 90-day window to clear goods at the old rate. After that, the new cost structure kicks in. The Secure Energy Project estimates a 15 to 25 percent rise in solar panel prices by late 2026.

New Taxes on Imported Tech

Can Nigerians Still Afford to Power Themselves?

To understand why this policy lands differently in Nigeria than it would elsewhere, you have to understand what the grid has done to Nigerian electricity habits. Years of erratic supply, multi-hour daily outages, and voltage fluctuations that destroy electronics did not produce a population waiting patiently for the government to fix things. It produced a population that fixed things itself.

First came generators, petrol then diesel then gas. Then came inverters with lead-acid batteries, then lithium batteries, and then solar panels added on top to charge them without spending on fuel. The 1 kWh solar generator, once considered a niche product, is now a completely ordinary fixture in small households and one-room businesses. Some call them power stations, and that name has started to feel accurate. Provisions shops, phone repair kiosks, tailoring studios, and barbing salons run on them every single day. They are small enough to sit on a balcony, affordable enough for a two-month savings plan, and powerful enough to run lights, DC fans, and a phone charger without touching a NEPA bill.

The scale goes well beyond individual homes. Petrol stations that once ran generators round the clock have converted their canopy roofs into solar arrays, running hybrid systems where solar handles daytime load and the generator only kicks in at night. Pharmacies, internet cafés, printing shops, and cold rooms powering perishables now run on solar. The solar transition in Nigeria has been market-driven and it has moved fast.

That context is what makes the arithmetic in TechCartel’s breakdown so pointed. Nigeria’s local solar manufacturing capacity stands at 300 MW as of April 2026. The country’s estimated demand for energy stability is 3.7 GW. The gap is over 3,400 MW. Local manufacturers currently price their panels about 16 percent above imported alternatives. As import taxes rise, that gap will narrow, but the timeline is vital. If local capacity grows faster than analysts expect, the transition could be orderly.

The government’s $425 million commitment to eight new manufacturing plants, and the 150 percent capacity growth achieved in a single year, suggest the industrial ambition is real. Nigerian-assembled panels are already being exported to Ghana and Burkina Faso, which signals a manufacturing base serious enough to serve regional demand. The 2036 target is a decade away, but the trajectory is being built now.

For Nigerians planning a solar installation in the coming months, the window is clear. The Form M grace period runs 90 days from April 1. The Green Tax Surcharge begins July 1. Any installation completed before that first wave of cost increases arrives will avoid the opening price shock. After that, the cost of running your own power in Nigeria, already a choice made out of necessity, gets a little harder to justify on a budget.

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