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National Tribune

Flagging The Conscience Of Truth

The State of Marketing Among African Startups: A Professional Analysis

ByWeb Manager

Oct 16, 2022

By Olajumoke Adigun

Marketing is often misunderstood in many African startups. For some, it’s treated as a gamble, a necessary expense to “see what sticks.” For others, it’s perceived as magic, expected to conjure rapid results without clear strategy or investment. This mindset, pervasive in ecosystems like Nigeria, Rwanda, and Ghana, significantly impacts not just individual startups but the broader economy and tech industry.

In Nigeria, where the tech ecosystem raised over $1.2 billion in 2022, according to Partech Africa, many startups still prioritise engineering over marketing. The belief is that a great product will sell itself. While strong engineering is vital, neglecting marketing creates a fundamental disconnect between products and customers. 

A recent report by Briter Bridges revealed that only 30% of African startups consistently allocate more than 10% of their budgets to marketing. This lack of investment not only hinders growth but also limits a startup’s ability to scale effectively. For example, Nigeria’s Paystack succeeded not just because of its engineering prowess but also due to clear messaging and effective campaigns that resonated with SMEs. Without marketing, even the best innovations risk becoming well-kept secrets.

Rwanda, often lauded as a rising tech hub, presents a slightly different picture. The country’s ICT sector contributes 3% to GDP and employs over 16,000 people, according to the Rwanda Development Board. Yet, many startups in Kigali adopt a conservative approach to marketing, often limited to word-of-mouth or basic social media posts. 

While these methods have their place, they lack the strategic depth needed to build strong brand equity or reach broader audiences. The perception of marketing as a secondary function stifles the growth of startups and, by extension, the tech ecosystem. As one Rwandan entrepreneur aptly put it, “We are great at building solutions but poor at telling our stories.”

In Ghana, the situation is equally challenging. With Accra emerging as a vibrant tech hub, Ghanaian startups raised $212 million in 2022, per data from The Big Deal. However, marketing often remains an afterthought. A common misconception is that marketing is expensive and only necessary for large-scale operations. This attitude creates missed opportunities for startups to establish their presence early and build customer loyalty. Consider the fintech space in Ghana, where companies like Zeepay have thrived not just because of their innovative remittance solutions but because they invested in campaigns that built trust among users.

The impact of this marketing neglect extends beyond individual startups to the economy and industry at large. When startups fail to reach their potential due to inadequate marketing, the ripple effects are felt in job creation, investment, and consumer trust. According to the World Bank, 80% of African startups fail within their first five years, and one key reason is the inability to attract and retain customers; a direct consequence of weak marketing strategies. This stagnation limits the broader tech ecosystem’s ability to drive economic growth.

Moreover, marketing is essential for positioning African startups on the global stage. In an increasingly interconnected world, startups in Nigeria, Rwanda, and Ghana have the potential to compete with their counterparts in Silicon Valley or Southeast Asia. However, this requires more than innovative solutions; it demands narratives that resonate, brands that inspire trust, and campaigns that capture attention. Marketing isn’t just an expense; it’s an investment in visibility, relevance, and growth.

To change this perception, African startups need to rethink their approach to marketing. It starts with education; understanding that marketing is not about flashy ads or viral posts but about building meaningful connections with customers. Founders must see marketing as integral to their growth strategy, not an afterthought. In Rwanda, initiatives like Kigali Innovation City offer an excellent opportunity to integrate marketing mentorship into startup programs, ensuring founders understand its strategic importance. Similarly, in Ghana, collaborations with marketing professionals can help bridge the gap between product development and customer acquisition.

As we look to the future, the startups that will succeed in Africa are those that embrace marketing as a cornerstone of their strategy. These startups will tell compelling stories, build strong brands, and create lasting impacts; not just in their industries but in their economies. It’s time for African startups to stop seeing marketing as a gamble or magic and start recognising it as what it truly is: a powerful tool for growth, differentiation, and success.

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