“Startups are building Africa’s middle class”

Entrepreneurship and innovation will create the dignified jobs of the future that had historically been the reserve of government or corporates. Despite the disruption by AI, tech-enabled business models in labour-intensive sectors will create the jobs of the future.

Shiela Birungi, you invest in companies that you call “job engines”. What does that mean?

A job engine is a system that creates jobs through its growth and scaling—but the real question is: what kind of jobs? Nairobi's Gikomba second-hand clothing market is one of the biggest: from sorters to sellers to Instagram entrepreneurs, one ecosystem creates thousands of jobs. In  the recent past, technology and digital channels have amplified job creation, but the advance of AI risks doing the opposite: anything that isn't hands-on or otherwise require human ingenuity and creativity is being replaced by technology.

Which sectors will be the biggest job creators going forward?

The digital and creative economy is a fast-growing job creating sector, especially among youth —content creators, virtual assistants, designers, and tech freelancers now work for global markets from African cities. The green and circular economy is also emerging, as investment flows into clean energy, waste recycling, and climate-smart agriculture.

African economies are still predominantly agricultural. Can you give an example that’s impressed you?

Twiga began by connecting farmers directly to the market, creating jobs at every level while improving farmers’ profitability — more farmhands at the supply end, logistics drivers in the middle, and vendors, food processors, and retailers at the endpoint. Today, they’ve expanded into managing their own satellite farms, employing agronomists and irrigation specialists.

Similarly, ventures like our portfolio company Irrihub are turning smallholder farmers into employers themselves, while also creating opportunities across their value chains — from sales agents and technicians to agronomists and input retailers. It’s a clear example of how technology and aggregation can make agriculture both productive and job-creating.

You have lived and worked in both Europe and Africa. What's the fundamental difference between jobs on those continents?

In Europe, a job typically guarantees a decent standard of living, benefits, and disposable income — it’s tied to stability and lifestyle. In much of Africa, a job is first and foremost a means of survival. Even earning a few dollars a day qualifies as employment, whereas in the West that would fall below legal or ethical thresholds.

The deeper difference is structural: in Europe, jobs are part of a mature, regulated economy; in Africa, work is often informal, unprotected, and created out of necessity. So while the word “job” is universal, its meaning — and the dignity it carries — is context-specific.

How do urban and rural job markets differ?

Rural jobs are mostly born out of self-employment and through informal sectors—buying a bag of potatoes and reselling at a margin—or agricultural work. Urban centres like Nairobi provide greater opportunities for more formal employment: corporate jobs, digital services, and skilled positions. But the real divide isn’t just geographic; it’s structural—between informal survival work and formal, scalable livelihoods.

What does a dignified job look like, and are you hopeful?

A dignified job pays enough to build savings, afford healthcare and education, and contribute to the wider economy—not just survive. I'm very hopeful because the private sector and startups - through entrepreneurship and innovation - is driving and catalysing job creation, whereas five years ago it existed in government, the UN, or big corporations. The middle class is growing because of entrepreneurship.

About

Shiela Birungi

Shiela Birungi

Shiela Birungi is Head of Ventures at Impacc and responsible for selecting and supporting African startups. She is a civil engineer and has over a decade of experience in the startup environment in the UK, Uganda, Zambia, and Kenya. Prior to joining Impacc, she managed incubators as well as venture building and financing programs.

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