The Truth About Scaling In A Country With Unreliable Infrastructure

infrastructure
8/31/2025

Hidden Truth For Growth

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Scaling a business is hard anywhere in the world

But in Africa, where power goes out mid-production, where ports delay goods for weeks, and where internet connections can collapse during a pitch meeting, the definition of “hard” takes on an entirely new meaning.

The challenge is not that African entrepreneurs lack ideas or resilience—we have plenty of that. The real test comes from operating in environments where the foundation for growth is fragile.

Infrastructure is the invisible engine that keeps businesses moving, and when it is unreliable, scaling becomes more of a gamble than a strategy.

Take electricity as an example. In Nigeria, businesses spend an estimated $29 billion annually on self-generated power. For a small startup trying to scale, that’s capital that should have gone into hiring talent, marketing, or technology. Instead, it gets swallowed by diesel. Compare this with Rwanda, where over 75% of the population has access to electricity, and where deliberate government investment in energy infrastructure has supported the growth of its tech ecosystem, making Kigali a hub for innovation.

Transport tells the same story. In Tanzania, the modernization of the Central Corridor railway has cut transport time for goods between Dar es Salaam and the hinterland by more than half. This has boosted trade and reduced logistics costs, helping agribusinesses scale across borders. In contrast, many West African countries still lose up to 40% of perishable goods due to poor roads and storage systems. Scaling a food processing company in such conditions isn’t about market demand—it’s about surviving broken supply chains.

The truth is, businesses don’t scale in isolation; they scale within systems. Where infrastructure is weak, businesses spend most of their energy patching holes instead of building bridges. That’s why despite Africa’s young population and rising middle class, the continent struggles to convert potential into sustained growth.

But here’s where opportunity lies. According to the World Bank, developing countries need to spend about 4.5% of GDP—$1.5 trillion annually—to meet infrastructure needs and align with the Sustainable Development Goals.

Governments alone cannot bear this burden, especially with growing debt and post-pandemic fiscal pressures. Private capital, partnerships, and innovative financing models must step in. In fiscal 2022, the World Bank committed $14.7 billion to infrastructure in developing countries, a 50% increase from the year before, with a focus on clean energy, smart transport, and digital ecosystems.

These numbers matter because they show a pathway forward: smart, inclusive infrastructure is not just about roads and power—it’s about enabling businesses to scale sustainably. Morocco’s investment in renewable energy has not only reduced its carbon footprint but also created an environment where manufacturing firms can compete globally. Kenya’s mobile money revolution, powered by digital infrastructure, has opened up financial access for millions, inspiring models in Uganda, Ghana, and beyond.

So, what does this mean for entrepreneurs scaling in Africa? It means you must be both realistic and strategic.

Build lean models that can survive unreliable systems, but position your business to ride the wave of infrastructure improvements when they come.

Engage policymakers, partner with investors who understand the local realities, and leverage technology to bypass old barriers where possible.

Scaling in Africa with unreliable infrastructure is not a myth—it’s a reality many of us navigate daily. But if we can align business innovation with infrastructure investment, then what today looks like a stumbling block can become tomorrow’s competitive advantage.

That’s the truth!