A Comparative Study on Asia and Europe on Start-Up Led Innovations as a Vehicle for Development: Any Lesson for Africa Continental Free Trade Area
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Date
2022
Authors
Otieno, Victor
Muathe, Stephen
Journal Title
Journal ISSN
Volume Title
Publisher
CRIBFB, USA
Abstract
This study investigates opportunities that African governments can pursue in furthering their development
agenda by leveraging the market's affinity for mobile technology and the momentum built by fintech firms
in mobile-based innovation. The study reviews secondary data on innovation-led development initiatives
and compares strategies adopted by countries across Europe, Asia, and Africa. The results reveal that
Europe and Asia have inculcated structured use of Research and Development in start-up ecosystems to
ensure that innovation addresses specific development agendas. In contrast, Africa abounds with highvalue natural resources, yet the continent's manufacturing sector is regressing, with intra-Africa trade in
consumer goods stagnating at 13% for decades. The study's findings point out that African governments
recognize the role start-ups play in addressing unemployment and attendant poverty in Africa. Fintech
start-ups and innovators have been at the forefront of delivering financial services using mobile telephony
to communities hitherto financially excluded. The success of African mobile money innovations is widely
published, and fintech start-ups have attracted the interest of venture capitalists – where 62% of
investment funds flowing to start-ups are committed to the fintech sector. There is limited traction in using
innovation to address issues like access to potable water, clean energy, affordable healthcare, and quality
education.
Description
Article
Keywords
Africa Continental Free Trade Area Innovation, Start-up JEL Classification Codes: B17, F13
Citation
Otieno, V., & Muathe, S. (2022). A comparative study on Asia and Europe on start-up led innovations as a vehicle for development: any lesson for Africa continental free trade area. American International Journal of Social Science Research, 12(1), 14-22.