In recent years, the Government has been working to promote and boost the growth of startups operating in the Angolan market, as well as encourage the emergence of others in the country by supporting several sector initiatives. Jornal de Angola interviewed several entrepreneurs and managers who discussed the future of startups in Angola.
For entrepreneur António da Silva, the startup ecosystem in Angola has shown remarkable growth, driven by innovation, technology, and a vibrant entrepreneurial spirit.
António da Silva believes that innovation and technology are the key pillars for the growth of startups in Angola. He suggests that they focus on innovative solutions that solve local problems and have scalability potential. “The adaptation of emerging technologies like artificial intelligence, blockchain, and fintech can transform traditional sectors and open new market opportunities,” he emphasized.
The entrepreneur considers a favorable regulatory environment and government support to be crucial.
He believes that the Government plays an essential role in creating an environment conducive to the growth of startups by offering tax incentives, simplifying bureaucratic processes, and promoting the training of young entrepreneurs. “There are examples of successful policies in other African countries that could serve as models for us,” he stated.
Training and Entrepreneurial Education
Another point highlighted by António da Silva is continuous education and training, which he considers “vital for the development of startups.” For the entrepreneur, it is essential to invest in entrepreneurial training programs in universities and technical schools, as well as create incubators and accelerators that offer mentorship and support to early-stage startups. “We need to invest in training our young people so that they can lead the next wave of innovation in Angola,” he appealed.
Financing and Investment
According to the interviewee, access to financing is one of the biggest challenges for Angolan startups. He highlights the need to develop a local investment culture, encouraging private investors and venture capital funds to support promising startups.
In addition, he believes that creating crowdfunding platforms and partnerships with financial institutions can facilitate access to venture capital.
Sustainability and Social Impact
António da Silva believes it is important for startups to incorporate sustainability and social impact into their business models. For the entrepreneur, startups have the opportunity to lead social and economic transformation in Angola by developing solutions that contribute to the country’s sustainable development.
“My vision for the future of startups in Angola is optimistic and pragmatic, emphasizing the importance of an integrated ecosystem where innovation, education, financing, and public policies converge to create a conducive environment for the growth and sustainability of new companies,” he concluded.
Partnerships and Collaboration
António da Silva believes that collaboration between startups, large companies, and research institutions is essential for the growth of the ecosystem. Strategic partnerships, he said, can accelerate the development of new technologies and market entry. He called on large companies to see startups as allies in innovation and seek mutually beneficial collaboration.
The National Institute for Supporting Micro, Small, and Medium Enterprises (INAPEM) has carried out two internal studies in recent years, which aimed, among other objectives, to diagnose the main inhibiting factors in the ecosystem to implement programs that effectively respond to the challenges identified, both in terms of entrepreneur training and access to financing/investment, following a progressive logic to make the ecosystem more suitable and receptive to the launch and survival of startups and entrepreneurial projects in this increasingly prominent sector.
“Angola Will Be a Stage for Great Talent and Startup Revolutions”
Nuno Gaieta, leader of GAIETA Inspira, a vocational education startup focused on impactful inspiration, training, personal and professional development, begins by explaining that a startup “is a business model based on an innovative, scalable idea that can gradually reach people in a society or worldwide. This type of company entails exponential growth and has to be different.”
Startups, he said, are always identified by their way of starting, without a business plan or fully defined product, but they have something valuable to show the market.
Nuno Gaieta believes that the emergence and growth of startups in Angola promises a positive and increasingly competitive evolution for those wishing to enter this ecosystem.
“If we invest, research, continue with this vision, and deepen it further, Angola will be a stage for great talent and startup revolutions with a vision of a promising future full of benefits for the growth of the national economy,” he emphasized.
Emergence
The first startups emerged in the United States (USA), specifically in Silicon Valley (California), in the 1950s, when Nobel Prize-winning physicist William Shockley recruited eight young scientists to open a technology company that would be based in that region.
Startups are early-stage companies with an innovative business proposal and significant growth potential. They can operate in any area or type of market and typically use technology as a foundation.
Startups stand out for three main factors: innovation, scalability, and flexibility. Angola has a favorable environment for startups.
The phenomenon of startups in Angola has been growing over the last decade, and given the country’s economy is still marked by a lack of many services and products, the effect of startups is more than welcome, according to Irina Ferreira, financial director of SOLEVO, a platform for distributing special chemicals for agriculture and industry.
“When we think of startups,” she said, “we quickly associate terms like innovation, flexibility, speed, dynamism, solution, and risk.”
Startups, she explained, are mostly characterized by offering a product or service that did not previously exist in that particular market. They are typically small structures and, therefore, flexible and quick to respond.
With a focus on economic diversification and increasing non-oil revenue, according to a source, there is a need to adopt new horizons and support new ideas.
“Angola still presents itself as a favorable environment for the implementation of these initiatives, due to existing shortages and its significantly young age pyramid,” she emphasized, pointing to factors such as job creation, promoting entrepreneurship, and attracting investment as gains from startups.
The existence of startups, she clarified, also fosters a culture more conducive to introducing innovations, promoting inclusion. “It’s important to highlight the potential that some startups have in attracting investment, although it remains a challenging aspect for many to get started,” she noted.
Driver of Innovation and Wealth Creation
Irina Ferreira defines startups as the seed for economic growth and a driver of innovation and wealth creation.
The manager notes that creating the right economic conditions for the proliferation of this phenomenon reduces the government’s responsibility to replace economic agents in attracting investment, whether foreign or domestic.
However, she warns that measures must be adopted to mitigate inhibiting economic factors such as currency devaluation, inflation, and the resulting decline in purchasing power.
Additionally, she adds, the continuous development of healthcare and education conditions is imperative, not overlooking the administrative and financial decentralization of municipalities and cities.
“We can frame startups in the national context and already foresee the previously mentioned benefits from a more focused perspective on job creation and fostering new solutions internally,” she emphasized, citing international examples that had humble beginnings but reached global levels, generating greater wealth and greatly impacting the economy, such as Microsoft, Spotify, and Uber.
“The opening and creation of economic conditions to foster startups can not only increase the domestic offering but also place Angola on the global map,” she concluded.
“Promising Scenario Indicates a Vibrant Future for Startups”
For Telson Kapassola, CEO of Ponorama, a multidisciplinary startup that aims to help people and companies extract the greatest benefit from data, information, and market intelligence, Angola is a country of entrepreneurs.
Citing the Global Entrepreneurship Monitor (GEM), a consortium of teams that conducts entrepreneurship research worldwide, he highlights that the country has the highest entrepreneurial activity rate in the world (53.4%, 2023).
“In this digital age, Angolan entrepreneurs are seizing the opportunities offered by technological transformation to innovate and create technological solutions that address the specific needs of our market,” he emphasized, adding, “This promising scenario indicates a vibrant future for startups in the country as they seek to expand and consolidate their operations.”
The growth of startups in Angola, he continued, has been driven by a combination of three main factors: increased access to the internet, growing adoption of digital technologies, and most importantly, the awakening of Angolan entrepreneurs to develop digital solutions to solve everyday problems.
“With the advent of mobile connectivity and the popularization of smartphones, local entrepreneurs now have the ability to launch and scale businesses at a lower cost and with greater reach. This digital environment facilitates the creation of e-commerce platforms, digital financial services, and solutions for sectors such as healthcare, education, agriculture, data, and others,” he stated.
According to the CEO of Ponorama, technological innovation is playing a crucial role in transforming traditional business models and democratizing access to services and products.
Additionally, he continued, as a complementary factor to the three mentioned above, the Startup Ecosystem composed of entrepreneurs and their startups, as well as supporting institutional bodies and initiatives such as acceleration, incubation, investment, networking, and awards, has naturally consolidated and been crucial for the development of startups in Angola.
“Incentive programs for entrepreneurship, such as incubators and accelerators, are gaining prominence, offering essential support for training, guidance, and financing of new companies,” he said, adding that these programs provide a more robust and collaborative ecosystem, facilitating the exchange of knowledge and the creation of contact networks, vital for the growth and sustainability of startups. In his view, strengthening these initiatives can further accelerate the maturation of the sector and increase the competitiveness of Angolan startups in the global market.
Challenges
Despite the progress, Telson Kapassola clarifies that startups in Angola still face significant challenges, such as difficulty accessing investment, team training in specific knowledge areas, and the current economic and market situation.
“The business environment can be complex and challenging, requiring entrepreneurs to be resilient and adaptable. There needs to be closer collaboration between the private sector, public sector, and educational institutions to overcome these obstacles and promote a culture of continuous innovation,” he appealed, acknowledging, however, that this promotion has already been taking place.
In addition to these challenges, the CEO of Ponorama notes that the economic situation and market difficulties also play an important role in the dynamics of startups in Angola.
Economic volatility and exchange rate fluctuations, he said, can create uncertainties that require companies to be flexible and innovative in their strategies. However, he emphasized, these conditions also offer opportunities for the development of creative solutions and adaptations that can strengthen the resilience and businesses of startups.
“Investing in processes and technologies that improve efficiency and exploring new partnerships may be ways to overcome these difficulties and seize emerging opportunities,” he said.
According to the CEO of Ponorama, investing in education and training is also essential to creating a qualified workforce that can drive the quality of human capital in startups, preventing them from needing to rely on foreign talent.
Future of Startups
For Telson Kapassola, the future of startups in Angola is promising, with significant potential to positively impact the economy and society.
“Today, we can see startups whose presence in the market is already a reference for the Angolan consumer. Some startups have already gained such brand recognition that we think these brands have always been present,” he emphasized.
As the business environment continues to evolve and technology advances, he said, startups will have increasing opportunities to innovate and create value.
Moreover, he added, the ability to adapt and the entrepreneurial vision will be crucial for these new businesses to thrive and contribute to the economic and social development of the country.
“Angola is on its way to establishing itself as a center of innovation in Africa, and continued and strategic support for the startup sector will be essential to turn this potential into reality,” he concluded.
Source: Jornal de Angola
