In a space of four years, Benjamin*, a 28-year-old digital marketer living in Lagos, Nigeria, has been laid off not once but twice by the same tech startup. When he first got hired to join the firm’s marketing wing, things were looking up career-wise.
A handsome pay of around ₦500,000 ($1,000*), high-end tools to work with, stock options and of course, the opportunity to finally contribute to a business in the tech sector —nothing less than a dream come true for someone who started out as a copywriter. Less than a year later, he was laid off as the firm downsized to cut costs.
“After working at other non-tech companies in similar capacity for about 8 months, I was called to rejoin the team,” Benjamin narrated. “I had mixed feelings, but resigned from my then-current job with a positive mindset. A year later history repeated itself and I was back without a job”.
After the second layoff, he realized working in the tech sector, in these parts, is not as straightforward as one would expect. Job security is almost not a given, and one can wake up one fateful morning having to start from scratch with role applications and rounds of interviews.
Benjamin’s ordeal is not much unlike those of other employees in the African tech industry. In the last few years, headcount reductions have been the go-to cost-cutting measure for many of the continent’s burgeoning startups. In 2022, no less than 1,000 people were let go, according to a TechCabal report. In 2023, the count went up to 1,500, per a thecondia.com report.
This year, the trend has all but subsided. Flutterwave laid off 3% of its employees in June, and Gro Intelligence shuttered operations in May—effectively axing over 200 jobs. Copia reportedly could lay off 1,000+ employees as its shutdown looms and Spleet Africa has let go of some workers to minimise spend. Things being equal, 2024 could be the ecosystem’s busiest layoff year.
Major players like Meta and Twitter have scaled back their global operations, leading to job cuts that affect their African workforce. For many, the fear of sudden unemployment has become a stark reality, driving them to seek additional income streams.
With funding continually trickling down, tech workers find themselves quite uncertain of what’s to come.
Regardless of the daunting environment, there are yet opportunities. But many of them may not bring the same kind of job security obtainable in the previous tech boom cycle. Since startups are trying to stay afloat, there are fewer benefits, more grounded salaries and increased workloads, taking the market from an employees’ to employers.’
Taking side jobs more seriously
Given the precarious market, tech workers are increasingly turning to extraprofessional work, popularly called “side hustles,”as a survival mechanism. New income streams cease to be optional, becoming essential for staying busy and flush with cash while unavoidably out of work. Using some of their basic skills to land gigs, and foot bills, creates an avenue to contribute to projects.
For Benjamin, his experience with side hustles dates back to his third and fourth years in the university, when he had to take up odd jobs, writing gigs and do research work for different people to make the cash needed to survive school.
“As a professional, I’ve always had the opportunity to contribute to a project or work on a contract-based gig while having a full-time job. Having been a victim of layoffs, this experience and the connections enabling it have come in handy for finding my feet and getting over the challenges of unemployment,” he tells Bendada.com.
Ricky*, a software engineer in the Nigerian lifestyle and entertainment industry, having been affected by layoffs three times, shares a converse experience. For a couple of years, he has been working remotely and earning in dollars. To sidestep having to convert his full-time income to Naira whenever he gets a paycheck, he takes on freelance projects.
“This way, I can get paid in Naira and spend it in Nigeria while saving up on dollars. I took on these projects so as to not burn money unnecessarily. In this line of work, rainy days will always come and one would not want to be caught in a sudden storm,” Ricky tells Bendada.com.
However, his approach is multifaceted. He is also investing in stocks, which he considers a vital part of his future retirement plan. “Whenever I stop working, I can look back to my stocks and start spending from my dividends, maybe from some real estate I’ve acquired in the past,” he explains.
In addition to his stock investments, Ricky also invests in his friends’ businesses. This offers immediate returns and helps him build more portfolios and create additional streams of income. “I like the immediate returns as well as building more portfolios and creating more streams of income. That’s why I invest in my friends’ businesses,” he says.
Similarly, Faith*, a Nigerian software engineer based in Nairobi, has started teaching coding classes online. “The layoffs were a wake-up call,” she says. “I realised that I couldn’t rely solely on my day job. Teaching provides extra income and helps me stay current with industry trends.”
Sacrificing spare time to make extra cash is not sheerly a stopgap measure. For some, it has become integral to career strategies for many in the tech sector. They provide a buffer against economic instability and offer a sense of control in an unpredictable job market.
Currency devaluation has left many tech professionals grappling with fluctuating incomes. For instance, the fall of the Naira has led to surging inflation (33.69% in April 2024), driving up living costs. The IMF forecast Nigeria’s fall from its position as Africa’s largest economy to fourth place this year, resulting in price volatility, making it difficult for individuals to plan their finances effectively.
As things skyrocket, a single paycheck is often insufficient to cover monthly expenses. The cost of living has skyrocketed,” says Ada. “I had to find additional sources of income just to keep up with inflation and fluctuating currency rates.”
Dabbling into entrepreneurship
In lieu of hedging against winter, while some tech professionals have gone to work for smaller firms or going fully into freelance, the most innovative employees seize the opportunity to become entrepreneurs and start their own businesses. This trend corroborates a 2023 Clarify Capital survey that found that 63% of considered laid-off workers struck out on their own.
One tech worker, speaking to Bendada.com on the condition of anonymity to avoid undue attention, is currently a co-founder and head of product in the customer engagement and data analytics sector. According to him, being in the game is a huge advantage to navigating the treacherous waters of dis-employment.
“I have always had a knack for being an entrepreneur,” he said. “While in university, I started my first business, a restaurant serving students. Later, I launched another tech startup to enable university residents to move easier and more cost-effectively”.
Even after these early ventures, the need to balance multiple commitments persisted. While working at a YC-backed company as a product manager, he still engaged in side projects to increase income. The salary wasn’t enough, and Nigeria’s economy made it challenging to live comfortably.
At another point in his career, he was earning in dollars while living in Nigeria, which provided a comfortable lifestyle. However, a passion for solving problems led him to continue working on side projects, including the one that eventually became the job he currently gives undivided attention.
The importance of side hustles became even more apparent after experiencing a layoff from a fintech following an M&A. “Layoffs can happen abruptly and unexpectedly,” he explained. Afterwards, he decided to focus on his side project, which is now venture-backed and generating revenue.
Balancing a side hustle with a primary job depends on one’s commitments. “As a co-founder, I am expected to live and breathe my startup 24/7, leaving little time for side projects. However, in a 9-to-5 job, where the commitment is 8 hours a day, one can find time for side projects.”
Lancing in the free world
Workers are also diversifying through a variety, not excluding freelancing on platforms like Upwork and Fiverr, consulting, and teaching online courses. Balancing a full-time job with a side hustle requires significant time management and dedication, but the benefits often outweigh the challenges.
Take Jumoke*, a cybersecurity upstart based in Johannesburg. After a major international firm restructured operations, she was laid off alongside dozens of her colleagues. “It was a shock,” she recalls. “I had to think quickly about how to support my family. That’s when I started offering my skills on Upwork so I do not come back to Nigeria empty-handed.
While Africa’s tech industry is booming with innovation and talent, growth has not shielded the sector from economic turbulence. Rising inflation, fluctuating exchange rates, and broader economic instability make it difficult for workers to rely solely on their primary income. Despite the sector’s rapid expansion, wages have not kept pace with the cost of living.
Fred*, who co-founded one of Africa’s fast-rising startups, has found himself juggling multiple gigs to stay on top of his finances. “I work my regular job during the day,” he once wrote on his personal WhatsApp status, “but in the evenings, I consult for smaller companies via Fiverr. It’s exhausting, but necessary. It took a while before I completed my first order, but it was a necessary move for the future,” he said.
Freelancing platforms are indispensable for people seeking additional income. They offer opportunities to work with global clients, providing a financial cushion and exposure to international projects and practices. There are about 17.5 million online gig workers in Nigeria, Kenya, and South Africa, according to the World Bank.
The rise of remote work has further facilitated this trend, enabling tech professionals to tap into global markets from the comfort of their cubicles. This trend, accelerated by the COVID-19 pandemic, has proven double-edged: while it offers new opportunities, it also means that local job markets are more competitive, intensifying the need for side hustles.
For now, side hustles are not just a trend but a necessary strategy for many tech professionals. They represent both a response to economic pressures and an opportunity for personal and professional growth in an ever-changing industry.
Names have been changed to protect the identities of persons involved.
$1/₦500 in 2020
