GFA Opinion

Unlocking Africa’s Start-up Potential: Addressing the Data Deficit

Africa is a continent abundant with untapped potential and a thriving entrepreneurial spirit, making it an exceptional investment destination. In recent years, numerous start-ups have emerged across the continent, offering innovative solutions to local challenges and fueling economic growth. Nonetheless, a significant hurdle persists, impeding the progress of these start-ups: the scarcity of accessible and dependable data.

During the last GFA investor Hangout, one of the speakers, Tope Ajao, acknowledged the persistent challenges surrounding data accessibility and quality, addressing the difficulty of acquiring relevant data. He stated, “The data we need to do our business first is not easily accessible, it hard to get, and when you finally get it, it might not be quality enough due to some factors.” 

The dearth of data in Africa is not only impeding the growth of these ventures but also stifling the continent’s overall development.

As Stated by Tammy Goerge ” The shortage of experienced data analysts in Africa poses challenges for the region’s development and competitiveness in the global market. By addressing the factors contributing to this scarcity and implementing targeted strategies, such as strengthening educational programs, raising awareness, incentivizing talent retention, and fostering public-private partnerships, Africa can cultivate a skilled and diverse workforce capable of driving data-driven decision-making and contributing to sustainable economic growth.

Let us examine this issue and consider possible measures to empower African start-ups with the data they need to thrive. Come with me.

Understanding the Data Deficit

Africa’s data deficit is a complex challenge rooted in various factors. You might be wondering what factors these are. Here they are: Insufficient infrastructure, limited funding for research and development, and inadequate data collection and management systems all contribute to this problem. Furthermore, African data is often fragmented, incomplete, or outdated, making it difficult for start-ups to make informed decisions, understand market trends, and develop effective business strategies.

Impact on Start-up Growth

The lack of accessible data has placed severe consequences on African start-ups. First, it hampers market analysis and validation. Start-ups must rely on accurate and up-to-date data to identify market gaps, consumer needs, and preferences. Without this information, they face difficulties in tailoring their products or services to the target audience, resulting in inefficient allocation of resources.

Secondly, the absence of reliable data inhibits access to funding. Investors often rely on data-driven insights and projections to evaluate the viability and potential return on investment for start-ups. Without comprehensive data, investors may perceive higher risks, reducing funding opportunities for African entrepreneurs because data make a business attractive to investors.

As Louis Ogbeifun explained in the Investor hangout in regards to the data problem, “A lot of time especially in Africa, when are talking especially in Africa when we are talking about doing business, there is a lot of emphasis on money, and sometimes we are trying to get fuel when we have not gotten the car because we don’t ask if we are attractive enough for the fund if the fund is available, that is what technology will help do, it cleans up and organizes data to make a business attractive to investors.” 

Lastly, the lack of data exacerbates the challenges of scalability and sustainability. Start-ups require reliable data to assess growth opportunities, understand competitive landscapes, and develop robust expansion strategies. Without such information, start-ups face hurdles in attracting customers, forming strategic partnerships, and effectively scaling their operations.

Strategies for Addressing the Data Deficit:

a. Improved Data Collection: Governments, organisations, and institutions must invest in robust data collection mechanisms. This includes conducting regular surveys, enhancing data infrastructure, and establishing partnerships with technology companies to facilitate data gathering and analysis.

b. Open Data Initiatives: Encouraging open data initiatives can significantly contribute to addressing the data deficit. Governments and organisations should publicly make relevant and non-sensitive data available, fostering a culture of data sharing and collaboration among stakeholders.

c. Public-Private Partnerships: Collaboration between governments, private enterprises, and academia is crucial in overcoming the data deficit. Public-private partnerships can leverage resources, expertise, and technology to establish comprehensive data repositories, research facilities, and training programs to strengthen African data capabilities.

d. Data Literacy and Education: Investing in data literacy programs is essential to equip entrepreneurs, policymakers, and the workforce with the skills required to collect, analyse, and interpret data effectively. Educational institutions should incorporate data-related curricula and encourage research in data science and analytics.

e. International Cooperation: The international community should support African countries in addressing the data deficit. This includes providing technical assistance and knowledge transfer to strengthen data infrastructure, capacity-building efforts, and research collaborations.


Africa’s start-ups have immense potential to drive economic growth, solve pressing social challenges, and transform the continent. However, the lack of accessible and reliable data significantly hinders their success. By recognizing the importance of data and taking proactive measures to address the data deficit, we can unlock the full potential of African start-ups. Empowering entrepreneurs with the necessary data will enable them to make informed decisions, attract investment, scale their ventures, and contribute to sustainable development across the continent. It is time to priorities data.

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