Currently, in the African start-up ecosystem, Nigeria, Kenya and South Africa, appears to be leading the pack, as the three countries, offer diverse markets, for startups, especially, the ones in the tech space.
Weighing the three countries on the same scale, it appears that, startup CEOs, based in South Africa, enjoy the best compensation packages.
This report was based, on a survey, carried out by Timon Capital, an early-stage investor, in sub-Saharan Africa and think tank Briter Bridges.
The survey was carried out, on about 50 start-ups across Nigeria, Kenya, South Africa and Ghana.
According to the surveyors, the reports on these startups have their validation, based on the annual funding acquired, by tech startups of these three countries, from investors.
Tech startups, from these three countries, enjoy an aggregated hundreds of millions, in dollars annually, yet there appear to be quite some notable differences, in the compensation packages obtained, by the CEOs of these startups.
Startup employees in South Africa, earn more than what their counterparts get, in other leading African countries, in technology, especially, Nigeria and Kenya.
According to the report, the average annual compensation package for a South African startup CEO is $194, 285 while that of a Nigerian is $29,090
Do not be surprised that, startup CEOs in South Africa, get a high take-home pay. which is five times, more than what is obtainable in Nigeria and twice, the amount in Kenya.
Nigeria, also, appears to be the least lucrative, for software engineers, despite it, being Africa’s largest economy. Meanwhile, South Africa, also, ranks very high, for compensation packages, to software engineers.
A case of argument on this shows that the small economies and populations of South Africa and Kenya, actually, own a large market, with respect to potential clients, having a reasonable disposable income.
In Nigeria, the enormous population, serves as a potential market, for the start-up ecosystem, nevertheless, the population that is marketable, is small.
In recent times, Nigeria has witnessed brain drain, in the software engineering space, probably, due to local tech companies, not able to match up, to compensation packages.
The report also stated that senior software engineers in South Africa earn a total compensation package of $76,666 whereas a Nigerian in the same shoe gets $18, 636.
Admittedly, South Africa is, not basking only in the atmosphere of getting the highest pay in Africa, among the tech ecosystem, but, also, enjoys a significant investment culture and a flourishing financial market.
While this report appears to unfavorable on this part of the continent, it remains a task for Nigeria to position itself such that the millions of dollars obtained through startup funds are well invested and has a significant reflection on the economy.
Featured Image: businessinsider.co.za
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