Hi there,

Stealing wind? European energy producers are battling headwinds as new research shows the impact of the “wind theft” phenomenon. Basically, with so many wind farms popping up and each blade robbing a tiny bit of energy from the breeze, it’s reducing natural wind power in a wake that stretches almost 100km behind it, successively robbing about 10% of efficiency from every turbine in that wake. Wild!

In this Open Letter:

• Game changer: SA’s new AI marketplace putting SMEs on the AI map.

• SA’s record coding signups, mapping the moon & pricier iPhones.

• Growing with grants, scaling in Joburg & lekker brand naming tools.

• Using AR to teach new languages? The poll results are in.

• Lonely building your startup? Join The Open Collab and get support.

TRENDING NOW

Cutting Local SMEs a Slice of the $4 Trillion AI Pie

Where do SA companies get enterprise-grade AI solutions? And where do SA developers sell them? This new AI marketplace is looking to change SA’s AI game…

Does anyone even remember a world without AI…?

It’s a major market: The UK alone has seen a 600% increase in AI companies in the last decade, double that of any other European nation, but still nowhere near the US and China investment levels.

Here’s where the global AI cash is really flowing…

And why not? Predictions for the global AI market value are anywhere between $2.6–$4.4 trillion (McKinsey), $4.8 trillion (UN) and up to $15.7 trillion (PwC).

But, there’s a problem: Africa is falling behind. In 2024, the continent attracted less than 1% of the global AI venture funding. 

Weird, it seems like everyone’s using AI these days. So what gives?

The challenges of adopting AI…

Companies face a myriad of reasons why they can’t simply just incorporate AI into their business.

Everything from concerns around data accuracy or bias, insufficient proprietary data available to train and customise models, insufficient business case or a financial justification, and inadequate AI experience.

Not to mention the meaty price tag linked to building your own custom AI solution in-house. 

On the other hand, South Africa’s IT skills shortage means most larger local companies are importing AI skills, or simply going without it. But if the guys with deep pockets are finding it hard to access top AI talent pools, just imagine what it must be like for an SME that’s simply trying to get things done a little better.

The AI tools they need

For SA SMEs, we’re not even talking about massive custom AI tools and platforms to change the game and obliterate the competition (although that would be pretty cool), we’re talking basic things like AI-powered translators, chatbots, document extraction and validation, verification tools and things that can replace archaic, manual processes. 

How do we get every SA business AI-empowered? 

The local player getting the little guy into the AI game

Highwind is a local AI product marketplace that gives small businesses access to enterprise-level AI solutions at a fraction of the price, and without having to hire an AI team.

From solutions to help cut costs, automate workflows and use data to make smarter decisions, they’re trying to make it as easy as possible for SMEs to integrate and deploy AI tools that are vetted, verified and do what it says on the box (to protect the users and their customers). 

There are already several unique solutions on the Highwind marketplace, many already proven and in use by SA companies in finance, healthcare, legal, logistics, manufacturing, retail and technology. But companies looking for a unique solution can also make a request, and the Highwind team can help get it built. Lekker!  

Naturally, this creates two immediate opportunities for South Africans:

• SA companies, come get your AI tools here

• And, AI founders, here’s a place to build and launch products

We recently chatted to Highwind and Melio AI (the AI consulting firm behind Highwind) Co-Founder, Merelda Wu, and she shared how the hidden costs of trying to build and implement your own custom AI solution can reach eye-watering amounts, the kind that puts it out of reach for many organisations, never mind small to medium-sized ones.  

With platforms like Highwind making it more accessible for SMEs to integrate enterprise-grade AI solutions into their businesses, we’re watching this space…

CHECK THIS OUT

Is Your Business Global-Ready?

In March, the Isle of Man Indaba dropped a quiet warning into SA’s startup ecosystem — and almost immediately, US President Trump’s wave of tariffs rattled international markets, disrupted export-reliant sectors and reminded business owners everywhere that global politics can shift overnight. 

South Africa is hardly immune: Remember our massive tariffs and Trump’s X war with SA in Feb this year?

If you think this kind of thing only affects governments, think again.

• Automotive and agri-exports are in the firing line, threatening jobs and local manufacturers.

• Investor confidence is taking a hit as SA’s global alliances fray.

• Raising capital is harder when your home country is on diplomatic watchlists.

For South African founders with global ambitions, the message is clear: You can’t afford to assume the world will always be on your side. A 100% local structure exposes you to currency risk, tax shocks and regulatory dead ends. Not to mention how it could impact your ability to expand.

Our playbook to help SA founders remain global-ready

1. Protect your value early

Political shocks. Currency swings. Unfriendly regimes. A well-positioned international holding company (like in the Isle of Man) can act as a vault, keeping your core assets, especially IP, safe and accessible.

2. Give investors what they need

Capital is scarce, and investors don’t fund risk. They fund clarity. A clean, globally aligned structure makes due diligence easier, sets you up for exits, and signals professionalism.

3. Keep your growth gains

SA’s tax drag is real. The Isle of Man’s zero dividend tax, no capital gains, and pro-business climate give you more control over your profits and how they’re reinvested.

Bottom line: if you’re building something global, you can’t rely on local conditions to stay stable. It’s time to think internationally — before you’re forced to.

IN SHORT

Tech a few things with you…

🚀 Coding Rocketship. More than 217’000 learners have enrolled for the 2025 FNB App Academy, more than 12 times the number of participants in 2023, making it Africa’s biggest free digital skills program. The 9-week coding bootcamp covers hands-on coding, problem-solving, and UX design training at NQF 5 level. VERY nice.

🌕 Moon Maps. Just in case you were getting worried that you might get lost on the lunar surface, fear not. A Spanish tech company, in conjunction with the European Space Agency, is working on a GPS-like system for the moon called Lupin, testing new positioning, navigation and timing techniques. Phew. Katy Perry must be relieved.

🤕 iPhone Pain. Apple is planning on bumping up the prices on its range of iPhones coming out later this year, but instead of blaming Trump tariffs (these are on hold for 90 days, by the way), they’re linking it to new features and designs. Still, Ouch.

🛺 Catching Up? They might’ve been a tad late to the home delivery party, but Spar’s groceries-on-demand service Spar2U isn’t slowing down — having grown from just 87 sites in July 2022 to over 500 today. And with its KasiD and Delivery KA Speed collaboration, it might be worth keeping an eye on…

😎 The Stack. Founders need tools and suppliers they can trust. Check out our Founder’s Stack with easy-peasy business valuations with bizval, hardware, software, acceleration and funding for remarkable builds with Octoco and loads more vital startup tools & services.

FOUNDER’S CORNER

BUILDING TOGETHER

Happening over at The Open Collab

16 May 12:00 — The Path to Scale Masterclass, Pt. 2: The science of success: Discover the hidden pitfalls and proven growth tools for every stage with Jason Goldberg, Art of Scale author and co-founder of Edge Growth — join The Open Collab to attend.

22 May 18:00 — In-Person Event, Cape Town: Come meet everyone as we all get together at Innovation City for networking, refreshments and a fireside chat with two SA founders who raised over R1 billion each this year alone — get your tickets (use code OPENLETTER50 for a special reader discount). Open Collab members get in for free.

23 May 12:00 — Business AMA: Using business valuation as a strategic growth tool: The secrets to leveraging growth no one tells you, with Graham Stephan from Bizval — exclusive to Open Collab members.

Thinking about joining The Open Collab?

• Supercharge your network in the SA startup landscape — get that introduction, get that customer, or meet that partner.

• Get feedback on your products, services and/or offers from others who have built and are building their own products right now.

• Join all our online and in-person events for free!

• Exclusive 1-on-1 sessions with startup consultants.

SA’s only dedicated tech startup and scale-up founder network.

WHAT YOU SAID

Pumping iron…

Last Friday, we riddled you about an SA startup using AR for language learning, and quite a few recognised Ambani Africa...

🟨⬜️⬜️⬜️⬜️⬜️ 🧠 Thinki (12%)

🟨🟨🟨🟨⬜️⬜️ 🎓 TeachAR (38%)

🟩🟩🟩🟩🟩🟩 📚 Ambani Africa (50%)

⬜️⬜️⬜️⬜️⬜️⬜️ 👩‍🏫 linguileARn (0)

HOW DID WE DO?

BEFORE YOU GO