Episode 3 Impact – A story curated by Change Com
Episode 4 The Silicon Savannah - A story curated by Change Com
Kenya has rapidly emerged as a leading technology hub in Africa, often referred to as “The Silicon Savannah.” With a thriving startup ecosystem, a deep talent pool, and an expanding investment landscape, the country is setting the stage for innovation and high-growth enterprises. But what makes Kenya such a compelling destination for tech investments?
We sat down with Ian Lorenzen, Executive Director and Partner at GrowthAfrica, to explore Kenya’s startup ecosystem, the importance of strong business networks, and how investors can unlock high-growth opportunities in the region.
From funding challenges to long-term scalability, Ian shares valuable insights on what it takes to build successful businesses in Africa’s most dynamic tech hub. Read on to uncover what makes Kenya’s Silicon Savannah a top destination for innovation and investment.
IA: Can you express to us the importance of the ecosystems GrowthAfrica works with to grow sustainable businesses?
Ian: The term “ecosystem” is widely used, but at its core, it represents a structured collaboration between multiple stakeholders, each playing a critical role in supporting entrepreneurs. A strong ecosystem ensures entrepreneurs receive the right support at the right time, minimising overlaps and inefficiencies. GrowthAfrica actively engages with these ecosystems to drive sustainable business growth by fostering coordination between investors, accelerators, policy-makers, and entrepreneur support organisations.
Ecosystems matter because they shape how well entrepreneurs can access resources, scale their businesses, and ultimately, drive long-term impact across the economy. Without well-functioning ecosystems, entrepreneurs struggle to navigate fragmented support structures, making collaboration the key to sustainable business success.
IA: Kenya, also known as the Silicon Savannah, has taken a lead as a country raising capital for the startup ecosystem. Could you give us some insights into how you believe that has happened?
Ian: Kenya’s position as a leader in attracting startup capital is a result of both strategic advantages and fortunate timing. The early adoption of the Silicon Savannah brand helped place a global spotlight on Kenya, drawing attention from investors and ecosystem players. However, beyond branding, Kenya benefits from a first-mover advantage in attracting resources – not just for startups, but also for entrepreneur support organisations, which play a vital role in strengthening the ecosystem.
Nairobi, as a capital city, has long been a cosmopolitan hub, making it attractive for global talent, investors, and support institutions. The country has also developed a relatively mature entrepreneurial culture with a skilled workforce that can drive innovation. Additionally, Kenya’s regulatory and policy environment -though not without its challenges – has been more conducive to startup growth than in many other African markets. These combined factors have made Kenya a natural destination for investment, especially in the tech sector.
IA: How do ecosystems contribute to creating value in the long term?
Ian: Ecosystems are, by definition, long-term mechanisms. Their impact is not immediate but unfolds over time through sustained collaboration, learning, and refinement. A well-functioning ecosystem continuously improves itself, providing better support structures for entrepreneurs. However, challenges arise when different players operate in silos instead of working together.
A key lesson from GrowthAfrica’s experience is that the strength of an ecosystem depends on how well stakeholders coordinate. Investors, entrepreneur support organisations, policy-makers, and the private sector must recognise that their success is interconnected. For example, investors need well-prepared entrepreneurs who understand financial structures, and support organisations need investors willing to take risks on promising businesses. When these connections are weak, businesses struggle to access the financing and mentorship they need to grow. Strong ecosystems are those that foster seamless engagement between all stakeholders, ensuring that entrepreneurs receive the right kind of support to build sustainable businesses.
IA: As you are also helping companies to think Pan-African and regionally, can you kindly share a reflection on the importance of scalability of startups?
Ian: GrowthAfrica places a strong emphasis on businesses with high-growth potential—those that can scale beyond their domestic markets. While local businesses play a role in economic development, the real impact comes from startups that can expand regionally and across the continent. Scalability is crucial not just for financial growth but also for creating large-scale employment, driving innovation, and strengthening Africa’s economic resilience.
Many entrepreneurs in Africa start with a limited view of their market potential, often focusing only on their immediate surroundings. GrowthAfrica works to challenge and expand this mindset, encouraging entrepreneurs to think bigger – whether that means expanding across East Africa, the continent, or even globally. The ability to scale is a key factor in attracting investment, as investors look for businesses with growth potential that can deliver long-term returns. More importantly, Africa needs scalable businesses – companies that can employ thousands, provide widespread solutions, and contribute meaningfully to economic transformation.
IA: As GrowthAfrica provides a link or landing space for international companies in East Africa, how do you experience international investors’ perception when meeting them about investing in African startups?
Ian: International investors often approach Africa with a cautious, sometimes sceptical, outlook—largely shaped by outdated media narratives. However, their perceptions quickly shift when they visit and engage with the ecosystem firsthand. Across GrowthAfrica’s 23 years of experience, no investor has left Kenya without being positively surprised by the depth of talent, innovation, and opportunities available.
While Africa holds immense potential, it requires contextualised effort. Many investors initially assume that opportunities can be seized with the same approaches used in Western markets. However, Africa operates differently, requiring a nuanced understanding of business environments, regulatory landscapes, and partnership-building. Investors who succeed are those who take the time to understand these differences, build local relationships, and commit to long-term engagement rather than seeking quick wins.
IA: How do you believe investors can find the right prospects to invest in, in East Africa?
Ian: Finding the right investment opportunities in East Africa requires a combination of local knowledge, ecosystem engagement, and structured sourcing mechanisms. Investors can leverage multiple avenues, including:
- Peer investors with a local presence who understand the market dynamics.
- Investor networks and associations like EAVCA (East Africa Venture Capital Association), NaiBAN (Nairobi Business Angel Network) and VBAN (Viktoria Business Angels Network)
- Platforms like Kenya Dealroom, which GrowthAfrica has been involved in developing, providing ecosystem data and curated deal flow opportunities.
- Engagement with entrepreneur support organisations, which work closely with startups and can provide valuable insights into which businesses are truly investment-ready.
However, beyond sourcing deals, investors must also break down traditional silos. Greater collaboration between investors and entrepreneur support organisations will improve the pipeline of investable businesses, ensuring that more high-quality startups receive the financing they need to scale.
IA: What do you believe are the main criteria for an entrepreneur to achieve success in the Silicon Savannah?
IAN: Success in Kenya’s startup ecosystem is driven by a combination of persistence, network-building, and financial literacy. Entrepreneurs must develop the ability to:
- Leverage networks effectively: knowing who to ask for advice, funding, and strategic partnerships.
- Build trust and credibility: trust is not automatic in Kenya; it must be earned through consistent, reliable engagement.
- Understand financing: raising capital in Africa is different from other markets. Entrepreneurs must master the process of securing investment, whether from VCs, angel investors, or alternative funding sources.
- Think beyond survival: successful entrepreneurs don’t just aim to sustain their businesses; they aim to scale. Having a strong vision and leadership is critical for long-term success.
In addition, entrepreneurs must acknowledge that in Kenya, money is often seen as king. Understanding cash flow management and investor expectations is more important here than in many other parts of the world.
IA: What potential trends do you see on the African startup scene in East Africa going forward, and which developments are you most hoping for?
Ian: While fintech has been Kenya’s dominant sector, the next wave of growth is likely to be driven by climate tech, agricultural value addition, and deeper integration between research and business. However, the sustainability of these sectors will depend on whether they receive sufficient investment and ecosystem support.
A significant challenge remains talent acquisition—while Africa has an abundance of young, skilled talent, there is a shortage of experienced senior professionals who can drive business growth. Many startups struggle to afford top-tier leadership, which becomes a bottleneck in scaling.
Looking ahead, one of the most critical developments will be breaking down silos between investors and entrepreneur support organisations. More structured collaboration can ensure that businesses receive both funding and strategic guidance, improving their chances of long-term success. Additionally, there is a need to strengthen the connection between research institutions and businesses—if African research can be better commercialised, it could drive significant innovation and new economic opportunities.
Ultimately, the goal is to see more African startups creating local value, driving innovation, and generating employment at scale. The focus should be on building robust, sustainable businesses that contribute meaningfully to the continent’s economic development.
