This archive report was first published on 19 September 2019.
On September 17, 2019, Andela, a prominent African tech start-up, announced a major shift in its business model, laying off hundreds of its staff, primarily from Nigeria.
The company, which has received hundreds of millions of dollars in funding from investors including Facebook and tennis star Serena Williams, ended its entry-level training programs for tech developers in Nigeria, Uganda, and Kenya, citing a decrease in demand for junior talent.
According to Andela's co-founder and CEO, Jeremy Johnson, the company's initial strategy was to identify high-potential talent on the African continent and train them in software development. However, it has become clear that the majority of the demand is for more experienced talent.
Andela, which has over 1,500 engineers, trains talented developers in Africa and outsources them to some 200 tech companies in Silicon Valley and around the world. The company will now focus on training and hiring experienced staff.
Founded in 2014, Andela aimed to fill a shortage of skilled software developers and invest in Africa's best minds. The start-up has won mass plaudits across the continent and caught the attention of high-profile investors, including Mark Zuckerberg and former US Vice President Al Gore.