From Promising Technology to Market Success: The Critical Role of Entrepreneurship in Africa’s ESG Transition

A technology may be promising, but that alone does not guarantee its path to the market. Bridging the gap between a technical solution and a competitive product requires capital, risk-taking, and entrepreneurs capable of driving the project forward. This crucial intersection was highlighted by Birgit Lamm, Country Director for Tunisia and Libya at the Friedrich Naumann Foundation (FNF), during the launch of the 4th African ESG Summit on Thursday, October 8, in Tunis.

“We support entrepreneurship and the market economy because it is entrepreneurs who develop a society’s wealth,” Lamm stated.

Entrepreneurs take risks, seek investments, and create jobs. For the FNF representative, this dynamic remains vital in a period where companies must rethink parts of their business models in response to climate change.

Lamm’s perspective aligns with that of Sahar Mechri, Executive Director of Managers and founder of the African ESG Summit. “This year, I believe everyone has personally learned and felt that climate change is real,” Mechri noted. The issue is now embedded in value chains and production methods. Companies must adapt their operations and integrate sustainability more deeply into their economic decisions. According to Lamm, this evolution cannot be achieved by replicating old models.

“We cannot continue in the same way we have developed the economic system for years, or even centuries,” she argued.

However, new solutions must also be viable in the market. Lamm emphasized that an innovation cannot remain at the stage of a good idea or a technical feat. It must translate into a product, find customers, and maintain a price point that allows it to remain competitive. She cited renewable energy and the energy transition as prime examples. Engineers have already developed numerous technical solutions; the focus now shifts to their economic application and the creation of products capable of rivaling existing offerings.

“We must find economically feasible solutions, even in markets with competitive pricing, and we must also seek investment,” Lamm added.

This reality places startups at the forefront. They are uniquely positioned to test new solutions, take risks, and explore underdeveloped markets. Yet, even a solid idea will not go far without funding. Investors also play a critical role, particularly in supporting technologies or business models that are still in the development phase.

Lamm stressed the necessity of bringing entrepreneurs and investors closer together.

“We need startups. We need truly courageous entrepreneurs who also find investors who are equally creative and optimistic that we can truly develop these products for the future into the market,” Lamm declared.

The relationship between capital and innovation is particularly significant in sectors linked to the energy transition. While technical solutions exist, their development requires resources, market outlets, and the capacity to sustain long-term growth. The market remains an essential gateway.

Furthermore, this reasoning extends beyond Tunisia’s borders. Value chains have become global, and companies operate in increasingly interconnected markets. For Lamm, the solutions must follow the same trajectory.

“Climate change is not just here in Tunisia; value chains are global today. Therefore, we must also find global and regional solutions,” she affirmed.

This is what, according to Lamm, gives the African ESG Summit a particular significance. Bringing together stakeholders around ESG is not just about discussing the transition. It is also about circulating ideas, connecting solution providers with investors, and creating the conditions for these innovations to find their place in African economies.