ABSTRACT
The internationalisation of high-technology family-owned start-ups is no less feat as these knowledge-intensive firms normally gain a foothold in foreign markets with vague knowledge and comprehension of the complex dynamics of the host economies. The African economic context presents an investment oxymoron for these born-global firms largely because, despite presenting an interesting amalgam of a booming youth market for technology goods, gender dividend in terms of purchasing power, and an abundance of natural resources for product development, hostile tax regimes, inordinate bureaucracy, disruptive corrupt tendencies, policy inconsistencies and volatile economic prospects are deeply implicated in the mechanics of internationalising of high-tech firms. Drawing on the Diffusion of Innovation Theory, a PESTEL (Political, Economic, Social, Technological, Environmental and Legal) framework and an extensive literature review covering African countries, the chapter articulates business and investment opportunities and complexities that undergird the internationalisation of high-technology family-owned start-ups on the African continent.
Evidence suggests that the African context supports the internationalisation of high-technology firms through the high innovation potential, youthful population, greater demand for consumer goods among the female population and rich cultural heritage which is receptive to entrepreneurship. However, the African continent is equally beset by an intolerant tax regime, excessive and encrypted rent-seeking behaviour, unsophisticated legal and policy regimes, economic policy inconsistencies and excessive dependence on foreign technology transfer.
We propose some theoretical and practical recommendations for tackling these challenges based on these techno-infrastructural, socio-economic and political affordances that the continent presents.
