African Startups Shift Focus From Funding Headlines to Cross-Border Trade and Economic Impact

African technology leaders are increasingly looking beyond the size of venture capital rounds as they assess the real impact of startups on the continent’s economy.

At a recent founders’ media briefing, executives from some of Africa’s leading technology companies argued that sustainable foreign direct investment, stronger cross-border payment systems and deeper regional trade integration are becoming more important measures of startup success than headline funding figures.

Google-Backed Startups Have Raised More Than $1.3 Billion

Folarin Aiyegbusi, Regional Lead for Startup Developer Ecosystem, Sub-Saharan Africa at Google, said companies supported through Google’s continental accelerator programmes and funding initiatives have collectively raised more than $1.3 billion.

However, he cautioned that the amount of capital raised does not, by itself, show how much value those companies are creating for African economies.

“A lot of times, the numbers go into abstract things,” Aiyegbusi said, stressing the need to connect investment figures with measurable economic outcomes such as employment, business growth and infrastructure development.

The discussion brought together technology companies including Termii, Bani, Lendsqr, E-doc Online, Scandium and Emergency Response Africa.

According to Aiyegbusi, venture investment in emerging African technology markets can play a wider economic role by supporting digital infrastructure and creating jobs beyond the startups receiving the funding.

A technology company that begins with a relatively small core workforce, for example, can generate additional opportunities through vendors, service providers, contractors and other businesses that depend on its operations.

Fragmented Payment Systems Continue to Slow African Trade

Cross-border payments emerged as one of the biggest challenges facing African businesses.

Rodney Jackson-Cole, co-founder and CEO of payments infrastructure company Bani, said African countries have made significant progress with domestic digital payment systems, but moving money between neighbouring countries remains unnecessarily complicated.

For businesses operating across markets such as Nigeria, Ghana and Senegal, the challenge is not simply accepting payments. Companies must also navigate different banking systems, regulatory requirements, settlement networks and mobile money platforms.

Jackson-Cole said the problem is particularly significant because many consumers across African markets rely heavily on mobile money and digital wallets rather than traditional bank cards.

Bani Builds Infrastructure for Cross-Border Payments

Bani is attempting to address the problem through a unified API architecture that connects different banking systems, payment schemes, regulatory environments and mobile money networks.

The company has already integrated its technology into enterprise and retail operations involving major international brands, including Levi’s, Nike and Adidas.

Its expansion plans also extend beyond Africa, with the company looking towards major manufacturing and export markets in Asia, particularly China.

Jackson-Cole also warned that building cross-border payment infrastructure involves much more than developing software.

Regulatory compliance, settlement arrangements and the operational requirements of moving money between different jurisdictions can create significant challenges even when the underlying technology is ready.

Despite those hurdles, Bani has set an ambitious long-term target of supporting up to 80 per cent of commercial trade flows across African markets within the next 15 years.

Termii Says Its Technology Powers Everyday Digital Transactions

The role of startup infrastructure in Nigerians’ daily digital lives was also highlighted during the discussion.

Olajuwon Abayomi, General Manager of Termii’s Nigerian operations, said the company provides communication infrastructure behind many of the transaction notifications and one-time passwords used by consumers and businesses.

He explained that when customers receive an OTP or a notification confirming that a transaction has gone through, Termii may be responsible for delivering that message.

Abayomi said Termii has spent the past nine years building the infrastructure that allows businesses to communicate with customers quickly and reliably.

The wider discussion reflects a growing shift in Africa’s technology sector. Rather than measuring startup progress solely through fundraising rounds, investors and founders are increasingly looking at how technology businesses solve practical problems, connect markets, create jobs and make it easier for businesses and consumers to participate in the digital economy.

For Africa’s fragmented markets, the ability to move money, communicate with customers and trade across borders could ultimately prove more important than another billion-dollar funding headline.