Beyond Funding: Why African Startups Need to Invest in Leaders

Africa’s tech ecosystem saw a significant rebound last year, with billions of dollars flowing into startups across the continent. While this is undoubtedly positive news, experts warn that something else is quietly hindering growth potential: leadership capacity.

The issue gained prominence when Moniepoint CEO Tosin Eniolorunda noted his company struggled to fill 500 vacancies because Nigerian candidates weren’t meeting global standards – a comment that sparked debate across the tech community. However, Marcia Ashong‑Sam of TheBoardroom Africa suggests this reflects a broader structural challenge rather than individual inadequacy.

“The real question is whether organizations are designed to cultivate leadership potential,” Ashong‑Sam explains. “Founders often prioritize immediate growth over long-term talent development, treating leadership training as a cost rather than a strategic investment.”

This focus on short-term gains is reinforced by investor expectations. The influx of capital over the past decade incentivized rapid market capture, with less emphasis on organizational maturity or leadership depth.

Building Leadership Capability

Ashong‑Sam highlights several key differences between high-performing and struggling organizations:

• Systematic talent compounding: Top companies view leadership development as an operational discipline rather than delegating it entirely to HR.
• Proactive succession planning: They identify and develop future leaders with the same intentionality they apply to product development.
• Cross-functional exposure: High-potential employees receive early opportunities to expand their skillset beyond technical expertise.

She emphasizes that leadership isn’t solely about technical competence – it requires emotional intelligence, strategic thinking, and the ability to navigate uncertainty.

Early Warning Signs of a Leadership Ceiling

Organizations reaching their leadership limit often exhibit these patterns:

• Decision slowdown: Simple decisions requiring multiple approvals or lengthy delays.
• High turnover among strong performers: Particularly when employees leave due to lack of growth opportunities rather than compensation.
• Disconnect between strategy and execution: A gap between what the company says it’s doing and how it actually operates day-to-day

“Boards need to track these leading indicators instead of solely focusing on lagging revenue metrics,” Ashong‑Sam advises. “The question they should be asking is: ‘Who runs this if we step away for six months?’”

The leadership challenge extends beyond individual skills – it requires organizations to create environments where talent can truly thrive, rather than simply filling positions with the most qualified candidates.