“Big Exits” Key to Unlocking Growth in Africa’s Startup Scene

Africa’s startup scene is buzzing with potential, but experts say the ecosystem won’t truly take off until it sees more “big exits.” At a venture capital summit in Lagos, Shruti Chandrasekhar of the World Bank’s International Finance Corporation emphasized that high-profile exits, like Stripe’s $200M acquisition of Paystack in 2020, are essential to unlocking fresh capital and investor confidence. Chandrasekhar stated that while there have been some big exits across the continent in the last few years, there haven’t been enough to drive meaningful startup growth. According to experts, African startups have failed to deliver competitive returns over the past couple of years due to the wave of currency devaluations that have swept across the continent. Despite the challenges, the consensus is clear: exits drive reinvestment. Without a viable exit path, even great startups risk stagnation.

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