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Speaking to HumanIPO at the African Venture Capital Association (AVCA) Alpha conference today (Wednesday) about African tech investments, Stokoe said: “We don’t have enough venture capital to back up startup technology.”
Stokoe, associate director of transaction advisory services at the accounting firm, is of opinion the lack of venture capital at startup stage is the key gap hampering solid investments in Africa in the tech sector.
HumanIPO reported this morning technology investment exits lagging behind other capital attractive industries in Africa.
“Technology [interest] was probably better in the early 2000s,” he commented on the exit performance as revealed by colleague Sachin Date, private equity leader of Ernst & Young in Europe, Middle East, India and Africa (EMEIA), earlier today.
“I think [there was] a lot of focus on technology in the early 2000s, late 90s even,” he added.
Stokoe ascribed telecoms’ slight better performance of exits to its track record. “Telecom-wise… historically it has just been one of the sectors out there for general funds,” he said.
He mentioned MTN, France Telecoms and Airtel as companies faring well in this sphere.
“Telecoms are now dominated by network operators,” he explained.
According to the financial expert, the initiative to change the future of tech investment landscape has to come from home among entrepreneurs.
“It’s up to the entrepreneurs to make it get to a stage where it’s interesting for private investors.
“I think that is what is lacking in Africa, [which does] not exist with the likes of the United States or Israel, venture capital.”
He believes telecommunication investments will continue to grow with possible future potential in the tech industry too.
