The experience of companies like Twiga Foods in Kenya highlights this reality. Despite raising significant capital to digitize and integrate the fresh produce value chain, the company faced operational challenges and had to adapt its model repeatedly, demonstrating that systemic weaknesses, not entrepreneurial ambition, can limit growth.
These dynamics are not limited to high-profile startups. Early-stage ventures and small and medium enterprises often struggle to secure investment because investors perceive them as “too risky.” Factors such as informal financial practices, limited collateral, and fragile local markets reinforce this perception. Meanwhile, funding for sectors like AgTech has declined sharply in recent years, and development aid is tightening, creating a “valley of death” for ventures that are too mature for small grants but not yet ready for larger investments.
Emerging research and practice suggest that addressing these structural gaps requires a systems-oriented approach: mapping entire value chains, identifying bottlenecks, and designing solutions that tackle underlying inefficiencies. By doing so, early-stage ventures can reduce risk, scale more sustainably, and contribute to stronger, more resilient ecosystems.
Read the full article on NextBillion to explore how a systemic perspective is reshaping African entrepreneurship.
