Why do most Zambian tech startups struggle to scale up?

“There should be some policies that will compel and secure the investors, so that people who put money have the confidence that they can fund it and their investments are protected,” Mwila said.

He added that entrepreneurs also need opportunities to connect with experienced business people and investors who can provide both capital and guidance. According to Mwila, many entrepreneurs in Zambia continue to operate their businesses largely on their own, making it difficult for them to access the expertise and resources required to expand.

“Most of the entrepreneurs in Zambia, they are like solo entrepreneurs. They may have one partner, but the company is being operated like a solo entrepreneur,” he said.

Mwila says founders should therefore become more open to bringing in partners and investors who can contribute skills, capital and networks as their businesses grow.

He says allowing more people to invest in local companies, including through the eventual floating of shares, could also provide businesses with opportunities to raise capital and expand.

Mwila says Zambia should therefore focus not only on creating more start-ups, but also on building an ecosystem that allows promising businesses to survive, attract investment and scale.

“It’s a journey, and we need to support the local solutions, homegrown solutions,” he said.

Article by Karen Ngulube