A new report has shed light on the alarming failure rates of African startups, with 58% collapsing due to financial struggles, 27% due to operational inefficiencies, and 17% due to regulatory challenges. The 2024 Startup Graveyard Report highlights poor governance as a recurring factor behind these failures, emphasizing the need for structured leadership and compliance measures.
Many startups neglect forming formal boards, viewing them as bureaucratic rather than strategic. This lack of oversight has led to mismanagement, depleted funding, and regulatory issues, as seen in the cases of fintech startups LazerPay and BuyCoins Pro. By contrast, companies like Flutterwave, Moniepoint, and Interswitch have thrived due to strong governance frameworks, financial discipline, and regulatory compliance.
The report warns that as funding becomes scarcer and regulations tighten, governance is no longer optional but essential for survival. Founders must embrace governance as a tool for sustainable growth rather than a hindrance.
Read the full report here.