Africa, known for its fintech prowess, is facing a different challenge in the education sector. While fintech is thriving with innovative solutions capturing significant venture capital, the same cannot be said for education and educational technology (EdTech). The continent has long struggled with an underperforming education system, reflected in statistics showing that up to 90% of children leave primary school without basic reading skills.
In contrast, fintech ventures are booming, attracting 60% of all African venture capital due to their clear value proposition of providing faster, cheaper, and better services. Remittances alone reached $56 billion in 2024. Despite this success in fintech, the EdTech sector is not receiving adequate attention or investment. In fact, EdTech only receives less than 2% of venture capital inflows, despite being a massive $160+ billion market annually—nearly three times larger than remittances.
The issue seems to lie in the approach taken by many African EdTech companies. Instead of focusing on addressing real educational needs and engaging with actual users – students and teachers – some companies are overly fixated on incorporating flashy technologies without a clear understanding of their target customers.
The hype surrounding artificial intelligence (AI) poses a particular concern for the EdTech sector. Governments are increasingly embracing AI solutions in education, reminiscent of past initiatives like One Laptop Per Child (OLPC), which failed to deliver promised results due to implementation challenges and unsustainable business models.
“Nigeria recently announced plans to train 6,000 teachers in AI,”
highlighting a growing trend where countries are investing heavily in AI-driven educational solutions without ensuring proper alignment with practical needs and sustainable business models.
The allure of AI-powered personalized learning tools at low costs may seem appealing at first glance. However, as history has shown with initiatives like OLPC, simply introducing advanced technology without addressing fundamental issues such as teacher training and infrastructure can lead to failures down the line.
One key aspect that many African EdTech startups overlook is their target market. While some have managed to scale within niche segments such as elite private schools or middle-class families with internet access, the majority of learners do not have consistent internet connectivity or access to smartphones at home. This highlights the importance of designing inclusive business models that cater to the realities faced by most students and educators on the continent.
“Education is primarily government-funded in Africa,”
emphasizing that selling products solely to households may limit scalability and impact. To truly address the pressing educational challenges across Africa through innovative technologies like AI, it is essential for EdTech companies to engage governments as key stakeholders who account for a significant portion of education spending on the continent.
While substantial investments have been made in various educational programs leveraging technology such as Tusome in Kenya—with USAID investing nearly $100 million—the lack of sustainable business models and demand-driven approaches has often hindered long-term success and scalability.
As Karim Mohamed aptly puts it:
“Without a business model…even well-intentioned investments end up shelved.”
This underscores the critical need for rethinking how EdTech solutions are financed, deployed effectively on a large scale while ensuring genuine demand drives their adoption among key stakeholders—students, teachers…
In conclusion…
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