Kenya gained much power technologically. This is attributed to mobile technology such as M-pesa powering the virtual money transfer all over. The hugely successful mobile money-transfer system, the Kenyan capital has gained a reputation for technological innovation—and with it an influx of no-strings development funding that has crowded out some of the private investment searching for tech startups to finance.
Now investors are looking to the other side of the African continent for results. Nigeria, with nearly 200 million people, a growing economy, and no shortage of local problems, stands out as an option. It’s slowly building up a tech sector of its own. The funding circuit is still small: probably no more than 10 companies investing money, says Kresten Buch, founder of the Nairobi tech accelerator 88mph (which has since expanded to South Africa).
The biggest difference between Nigeria and other major African economies is its sheer size. With roughly four times as many people as Kenya or South Africa, Nigeria is big enough to reward products and services that are domestic in nature.
This means that while these other countries such as Kenya and South Africa are far technologically, they’ve little population approximately even a third (1/3) of the total population in Nigeria. This in another way affects the number of customers that would embrace the technology hence many technology firms have decided to look for other markets where they are entitled to large custom base. This doesn’t count Nigeria at the top yet. It is not and it won’t be until it has done much in the technology sector. Until it has solved much issues within the country itself.
Another thing is the studying of moral and ethical issues that comes around with technology. Does it lead the society to a self-destruction unit or to a successful future led by technology in production.
Another reason why Nigeria might grow to be the hub is that majority of investors in countries such as Kenya and Nigeria have found it hard to find a business premise. The cities are overcrowded and this makes or rather gives them an option for moving to other markets. That would shift their focus to particularly Nigeria and it might gain much.
But should tech investors just be based in bigger cities or towns? No, they should find a way out, they should set their bases where people are lagged behind technologically and allow them embrace technology.