Startups in Angola have played a crucial role in the economy, particularly in the communication technology sector, associated with delivery services, transportation, fleet, and route management (private taxis). These contributions have driven job creation and service innovation, economist and university professor Divava Ricardo highlighted in an interview with Jornal de Angola on Saturday. He noted that startups’ main responsibilities in the country include entrepreneurship and innovation in compliance with national laws, especially tax regulations and social security contributions for employees.
According to Divava Ricardo, of the 83,722 businesses in Angola, as per the 2019 Business and Establishments Census (REMPE-2019) by the National Statistics Institute (INE), 72,752 (approximately 86.9%) operate in urban areas, while 10,971 (13.1%) are located in rural areas.
The Angola Startups Summit-2024 featured over 150 startups, reflecting the national scale of these enterprises. REMPE-2019 data shows that 48.7% of the country’s businesses are concentrated in Luanda.
Ricardo emphasized that the digital economy’s expansion through improved payment systems and efficient distribution and transportation services is among the most significant contributions of startups to Angola’s economy.
Startups often disrupt traditional business models in specific sectors, bringing qualitative and quantitative improvements to goods and services. This innovation can lead to increased productivity, reduced operational costs, and enhanced quality of life for customers.
“Startups are primarily concentrated in the Communication and Information Technology (CIT) sector, developing apps and digital wallets to support commercial and transportation activities,” he said.
However, in agriculture, startups are more focused on research and development rather than streamlining bureaucratic processes or communication. Ricardo also noted that Angola’s agriculture sector, largely based on family farming, does not align well with the conditions required for the current startup models in the country.
Economic Impact
Globally, startups play a fundamental role in economic growth, job creation, and service innovation.
Startups contribute to the global economy in several ways, including job creation. According to a Kauffman Foundation study, startups are responsible for over 50% of global job creation.
In the realm of innovation, startups lead in adopting new technologies such as Artificial Intelligence (AI), Blockchain, and IoT. Additionally, they foster globalization by developing solutions that cater to diverse audiences worldwide.
Startups also influence corporate culture by promoting an entrepreneurial mindset that inspires progress and change. They address social and environmental challenges through innovative solutions.
The research indicates that startups are defined by their focus on innovation, accelerated growth, and high adaptability.
Engines of Growth
According to Paulo Sérgio Granato, a Brazilian expert in Information Technology, startups have emerged as engines of economic growth worldwide.
Granato’s research highlights startups’ adaptability to market changes and their critical role in driving innovation and wealth generation.
Startups often operate in high-tech sectors and emerging industries, creating highly skilled jobs. Moreover, their work culture fosters interdisciplinary approaches and continuous learning, contributing to workforce skill development.
Startups’ ability to identify market gaps and offer innovative solutions is a primary driver of economic growth. These companies tackle complex problems in new and efficient ways, resulting in technological advancements that benefit various industries.
Granato also noted growing investor interest in startups due to their potential for high returns.
“Countries that establish favorable ecosystems for startups attract foreign capital, further boosting economic growth. Successful startups are more likely to expand globally, enhancing the country’s international presence,” he concluded.
Source: Jornal de Angola
