I like the metaphor of digital kiosks. it really drives the message home. I think the reason everyone seems to be solving the same problem and building fintechs is because that’s where the funding is. It feels more like an investor-driven need than a real customer need.
As a result, customer’s real need remain underserved because they don’t fit the typical short-term venture capital model.
On a second thought,
Maybe having so many not-so-differentiated digital kiosks isn’t entirely a bad thing. They attract investment into the country, create jobs, and help build local capacity in tech and finance. In many ways, they contribute to the broader ecosystem, encouraging young people to think entrepreneurially and experiment with digital tools. Even if many of these startups seem repetitive, they still represent movement, learning, and some level of progress.
Still, it makes me wonder about the trade-offs between investor-driven innovation and customer-driven innovation. When capital flow determines what gets built, real human problems can get sidelined in favor of what looks fundable. Yet, building truly customer-centered solutions without financial backing is also extremely difficult. It’s a tension that every ecosystem must navigate, balancing the need for sustainability with the need for relevance.
Your second thought is not a bad thing , yes it does create more opportunities for employment but the problem to ease living lingers.
Issues like transportation, the traffic in cities like Lagos has not been solved , security, agrotech there are so many problems to worry about that fintech is now the least of our worries
“Movement of money seamlessly” , please at least let us have the money to move first.
Great Article and you nailed one of Africa's biggest SME and MSME problems, cutting and pasting.
Here in Kenya, the street kiosk problem is very similar. Maybe in slight contract to Nigeria we have more bars, hair salons and butcheries (with nyama choma at the back), but the saturation and lack of imagination/differentiation is the same.
I saw an amazing interview Jeff Bezos gave on why the US has some many strartups and why despite the high failure rate large pools of venture of capital of up to USD50M on average nowadays are still available. He said the US was the only place in the world where this kind of money was available for "new" ideas and somehow these pools of funds where around knowing despite the high failure rates the ultimate risk reward ratio would end up finding that unicorn which would make the whole seemingly insane financial process worth it. The global success of this so called "insane" process is unquestionable. The US has more unicorns than the rest of the world combined. So, the question remains, how do we, in Africa, fund the innovations which we clearly need to solve our problems (and do we fundamentally know our problems, understand and acknowledge them)? How do we attract (and raise for ourselves) capital which is ready to take such high risks and undoubtedly heavy losses with the knowledge that the next big new things we build will change this continent?
As you wonderfully point out we have many unique problems in Africa which will require us to come up with unique solutions which are not similar to those in the West or Asia. Our entrepreneurs, financial capital and policies should focus on these. We need a deep and soulful look at what our problems are and commit to finding sustainable solutions to them. This is what will bring viable social and economic growth in all our sectors. Not concerted aping of industrialisation, digitisation and other so called economic growth strategies pushed many with hidden agendas.
On a lighter note, I am can think of many politicians in my country and indeed in Africa as whole who would oppose the widespread use of tech such as the one you highlighted, i.e. flock safety. Why, you ask? Because, they would say "there is no crime in my area". This is where the myth of the ostrich burying its head in the sand comes from. We in Africa know our problems we are just in some sort of hazy denial. Many are basic and we can build simple businesses around them using all the amazing tech now available. Lets begin there.
Thank you so much, you captured it perfectly. Until Africa builds the kind of patient, risk-tolerant capital that backs originality rather than imitation, we’ll keep recycling the same ideas instead of funding the ones that could truly change things.
The primary purpose of every business is to solve problems, not make money. Money is a byproduct is solving a problem (whether you are paid before solving the problem or after)
When peope start identifying problems in their immediate vicinity that need solving then we would starting having more diversified start ups
I agree. However, profit is essential for survival, but when it becomes the primary motive, it often kills the very curiosity and originality that drive true innovation.
I think that Nigerians do not open businesses to solve real problems, but simply to make money. As a result, many people simply look for what's working and replicate it for fast returns. In order for people to look for a solution beyond building digital kiosks, entrepreneurship has to come from a deep desire to solve a genuine issue while not serving as a mask for unemployment. At the end, true innovation needs time and risk, and many Nigerians are neither of those to a large extent.
This isn't just Nigeria / Nigerians, this is human. We have seen such bubbles for centuries. Economic historians emphasize the Dutch Tulip Bulb Market Bubble of 1637 as the first, well-documented example. This is not new: people are people. As Ajomole Kayode points out, however, fintech and AI is where the money is. While novel ideas are amazing, they are often very hard to fund and there just aren't enough sources of funding for all the Nigerian entrepreneurs out there. Nigeria has lots of startups like Sabi -- happy to introduce you to some -- that are working in non-fintech spaces and they have a hard time getting funding. Bootstrapping is the main game in town but not everyone can afford that, great idea or no, especially those who don't have access to "back[ing] by wealthier relatives or older children abroad". You are absolutely on the mark. Fortunately or unfortunately though, humans are human and we follow examples, leading to bubbles and group-think.
True. But what’s frustrating is how that herd behavior shapes what’s even possible here. When funding keeps orbiting the same sectors, originality doesn’t just struggle, it gets priced out of existence.
To do hard things over the long term, there is need of grit, plasticity and a flexibe source of capital, I bet there are many who want to do hard things but it's only easy to build wealth after one has become rich.
Didn't expect this take on the subject, and your observation about fintech's dominance truely makes me think about how capital flow might be bottlenecking other high-impact, potentially AI-driven, solutions beyond just payments.
As an outsider peeking in, I noticed the same thing. But the problem is, some of what you would need to solve those real difficult problems isn't available because of bigger seemingly unsurmountable problems that are interconnected with that base difficult problem you're trying to solve.
To really make lasting beneficial impact, I believe there is need to ask the pain points of our immediate community, state and nation. Having gathered the pain-points, strategise and then offer solutions to these pain-points. Then we are on a journey to being relevant in the ecosystem and not just jumping on the next most profiting line of income.
I like the metaphor of digital kiosks. it really drives the message home. I think the reason everyone seems to be solving the same problem and building fintechs is because that’s where the funding is. It feels more like an investor-driven need than a real customer need.
As a result, customer’s real need remain underserved because they don’t fit the typical short-term venture capital model.
On a second thought,
Maybe having so many not-so-differentiated digital kiosks isn’t entirely a bad thing. They attract investment into the country, create jobs, and help build local capacity in tech and finance. In many ways, they contribute to the broader ecosystem, encouraging young people to think entrepreneurially and experiment with digital tools. Even if many of these startups seem repetitive, they still represent movement, learning, and some level of progress.
Still, it makes me wonder about the trade-offs between investor-driven innovation and customer-driven innovation. When capital flow determines what gets built, real human problems can get sidelined in favor of what looks fundable. Yet, building truly customer-centered solutions without financial backing is also extremely difficult. It’s a tension that every ecosystem must navigate, balancing the need for sustainability with the need for relevance.
Your second thought is not a bad thing , yes it does create more opportunities for employment but the problem to ease living lingers.
Issues like transportation, the traffic in cities like Lagos has not been solved , security, agrotech there are so many problems to worry about that fintech is now the least of our worries
“Movement of money seamlessly” , please at least let us have the money to move first.
Great Article and you nailed one of Africa's biggest SME and MSME problems, cutting and pasting.
Here in Kenya, the street kiosk problem is very similar. Maybe in slight contract to Nigeria we have more bars, hair salons and butcheries (with nyama choma at the back), but the saturation and lack of imagination/differentiation is the same.
I saw an amazing interview Jeff Bezos gave on why the US has some many strartups and why despite the high failure rate large pools of venture of capital of up to USD50M on average nowadays are still available. He said the US was the only place in the world where this kind of money was available for "new" ideas and somehow these pools of funds where around knowing despite the high failure rates the ultimate risk reward ratio would end up finding that unicorn which would make the whole seemingly insane financial process worth it. The global success of this so called "insane" process is unquestionable. The US has more unicorns than the rest of the world combined. So, the question remains, how do we, in Africa, fund the innovations which we clearly need to solve our problems (and do we fundamentally know our problems, understand and acknowledge them)? How do we attract (and raise for ourselves) capital which is ready to take such high risks and undoubtedly heavy losses with the knowledge that the next big new things we build will change this continent?
As you wonderfully point out we have many unique problems in Africa which will require us to come up with unique solutions which are not similar to those in the West or Asia. Our entrepreneurs, financial capital and policies should focus on these. We need a deep and soulful look at what our problems are and commit to finding sustainable solutions to them. This is what will bring viable social and economic growth in all our sectors. Not concerted aping of industrialisation, digitisation and other so called economic growth strategies pushed many with hidden agendas.
On a lighter note, I am can think of many politicians in my country and indeed in Africa as whole who would oppose the widespread use of tech such as the one you highlighted, i.e. flock safety. Why, you ask? Because, they would say "there is no crime in my area". This is where the myth of the ostrich burying its head in the sand comes from. We in Africa know our problems we are just in some sort of hazy denial. Many are basic and we can build simple businesses around them using all the amazing tech now available. Lets begin there.
Keep up this inciteful writing ! All the Best
Thank you so much, you captured it perfectly. Until Africa builds the kind of patient, risk-tolerant capital that backs originality rather than imitation, we’ll keep recycling the same ideas instead of funding the ones that could truly change things.
Capital is a huge problem but so is collaboration. Nobody's trying to collaborate and if we are, we're scared of getting cheated or worse derailed
And on the ostrich thing, there is also the issue of investment returns.
You need money and idealism to undertake a project like that.
Too true. To add to this
The primary purpose of every business is to solve problems, not make money. Money is a byproduct is solving a problem (whether you are paid before solving the problem or after)
When peope start identifying problems in their immediate vicinity that need solving then we would starting having more diversified start ups
I agree. However, profit is essential for survival, but when it becomes the primary motive, it often kills the very curiosity and originality that drive true innovation.
*Goes back to the drawing board*
Enjoyed this! Last year I wrote an insight on why I think Nigeria is so fintech saturated. Asides the influx of investments to this sector, I also think government interest in it made it appealing: https://www.verivafrica.com/insights/why-the-nigerian-tech-industry-is-fintech-driven
Homogeneous goods and services
Wow! I finished it 🤭
This is amazing Aisha 👏💯
I think that Nigerians do not open businesses to solve real problems, but simply to make money. As a result, many people simply look for what's working and replicate it for fast returns. In order for people to look for a solution beyond building digital kiosks, entrepreneurship has to come from a deep desire to solve a genuine issue while not serving as a mask for unemployment. At the end, true innovation needs time and risk, and many Nigerians are neither of those to a large extent.
This isn't just Nigeria / Nigerians, this is human. We have seen such bubbles for centuries. Economic historians emphasize the Dutch Tulip Bulb Market Bubble of 1637 as the first, well-documented example. This is not new: people are people. As Ajomole Kayode points out, however, fintech and AI is where the money is. While novel ideas are amazing, they are often very hard to fund and there just aren't enough sources of funding for all the Nigerian entrepreneurs out there. Nigeria has lots of startups like Sabi -- happy to introduce you to some -- that are working in non-fintech spaces and they have a hard time getting funding. Bootstrapping is the main game in town but not everyone can afford that, great idea or no, especially those who don't have access to "back[ing] by wealthier relatives or older children abroad". You are absolutely on the mark. Fortunately or unfortunately though, humans are human and we follow examples, leading to bubbles and group-think.
True. But what’s frustrating is how that herd behavior shapes what’s even possible here. When funding keeps orbiting the same sectors, originality doesn’t just struggle, it gets priced out of existence.
Absolutely
To do hard things over the long term, there is need of grit, plasticity and a flexibe source of capital, I bet there are many who want to do hard things but it's only easy to build wealth after one has become rich.
Didn't expect this take on the subject, and your observation about fintech's dominance truely makes me think about how capital flow might be bottlenecking other high-impact, potentially AI-driven, solutions beyond just payments.
I used to think it was just fantasy, but now I see it was the future unfolding before me. Truly, I’m not alone.
Thank you!
As an outsider peeking in, I noticed the same thing. But the problem is, some of what you would need to solve those real difficult problems isn't available because of bigger seemingly unsurmountable problems that are interconnected with that base difficult problem you're trying to solve.
This is 💯 valid!
I hear you loud and clear Aisha
Thank you for a well articulated point.
To really make lasting beneficial impact, I believe there is need to ask the pain points of our immediate community, state and nation. Having gathered the pain-points, strategise and then offer solutions to these pain-points. Then we are on a journey to being relevant in the ecosystem and not just jumping on the next most profiting line of income.
Absolutely!