Nkafu Policy Institute Experts Lift Veil on Challenges Facing Startups.
February 29, 2024
By Boris Esono Nwenfor
Panelists recommend the establishment of the Startup Act to govern the sector
YAOUNDE, Cameroon – A few years ago, a group of young people in Buea banded together to solve a problem in the tech industry. They came out with a business plan, researched the problem further, and determined their target audience, and so on.
All was in place, and they were ready to kick off. There was, however, an admonition. Their plans were solid, and everything looked promising, but they ran into the same problem that nearly every startup in Cameroon and Africa faces, access to finance, erratic power supply, poor internet connection and speed, insufficient social amenities, bad roads, and other issues. among others.
In a bit to gather inputs that will leave the veil on the challenges facing startups in Cameroon, the Nkafu Policy Institute, a think tank of the Denis and Lenora Foretia Foundation organized a panel discussion on Thursday, February 29, in Yaounde, bringing together startup owners, public authorities, entrepreneurs among others.
The main objective of this event was to analyze the startup ecosystem in Cameroon and the remaining constraints to theory growth in the country. The experts also outlined the chances of success for a startup in Cameroon and the socio-economic impact of startups in Cameroon.
Need for Startup Act
The number of new technology startups in Cameroon has grown steadily over the past decades, with an estimated 101 plus technology startups currently operating in the country, 36 of which were created in 2019 and 2020. This number remains low in comparison with Nigeria, which alone has 1,697 tech startups in Lagos. The limited growth in the number of startups in Cameroon can be explained by a complex and ambiguous regulatory and administrative environment.
“Anu Brian Nkwetta, participant and operations Manager at ZGOO said: "The Startup Act is needed as it governs us; tells us who we are, where we are heading to. Without any law, we will be at the same point. It is late. We believe this law should have been put in place since 2016 as other African countries are benefiting because of this law."
“Finance helps businesses to get to the wider market and also to scale and also helps in the identification of team players who can help and replenish your idea. Having finance at the right moment will play a greater role when it comes to startup.”
“It is an extremely important law because startups in the world are contributing massively to the development and sustainability of many countries,” Emmanuel Asafor, CEO of Enchird Technologies said. "It is important that we have the right regulatory framework that can permit us to benefit from this wind of innovation that is causing through Africa and the world at large."
Capital, Oxygen in keeping businesses running
Capital is unquestionably the oxygen that keeps a business running. Obtaining capital as a startup is a completely different story, as it can be extremely difficult, particularly in Cameroon.
Dr Fuein Vera Kum, Research Fellow and Economic Policy Analyst at the Nkafu Policy Institute said: "We encourage our participants that the take-home message is not to be afraid but to take up the challenge of coming up with their startup. We are indulging our participants and the general public that what is mostly important is not only the financial aspect of it but being able to recruit workers that are passionate about your vision; workers who are ready to drive home your vision to its successful end."
“Startups should be passionate in whatever they do; be passionate in whatever skillset you have and try to develop you personally. We are indulging the general public for them to get into the digital platforms and learn one or two things that will help them and they will better understand what the startup ecosystem is all about.”
Foretia Foundation staff and participants pose for a picture after the conclusion of the panel discussion on the challenges facing startups in Cameroon
About the Foretia Foundation and Nkafu Policy Institute
The Denis & Lenora Foretia Foundation was established in 2012, to catalyze Africa's economic transformation by focusing on social entrepreneurship, science and technology, innovation, public health and progressive policies that create and expand economic opportunities for all.
The Nkafu Policy Institute is a think tank within the Foundation whose purpose is to produce independent analysis to inform public debate. Its mission is to advance public policies that help all Africans thrive in free, fair and democratic economies. The Institute has distinguished itself as a leading research centre in Cameroon, committed to promoting open debate that builds consensus towards a democratic future.
