How Much Does it Cost to Develop Software in Africa

Whether you are a startup wishing to build your MVP or an established business aiming to improve your software, you should understand the cost implications of your software development process.

This will help you plan ahead, dedicate an adequate budget to the development process, and ship your products to the market faster without financial setbacks.

However, you should note that the cost of software development varies depending on factors such as the location of the developers, the size of your project, its complexity, and developer requirements.

Factors Influencing Cost of Software Development

The Following Factors Determine the Cost of Developing Software All Around the World.

• Complexity of the Project : Projects that are easier to develop generally cost less than more complex projects.

The complexity may be due to the language or framework, certain features or functionalities added to the application, or some design elements accompanying the application.

For instance, a simple application that requires no complex backend functions and only incorporates existing systems like content management systems and a simple user interface may be simple and less expensive to build.

However, an application with complex backend processing, server-side applications, massive databases, and complex algorithms with an extensive user interface will be more complex and expensive to develop.

Also, products that require AI integration or machine learning cost more than simpler projects since they require high expertise and extensive coding and testing.

Basically, the more coding and testing required, the more expensive the project will be.

Size of the project: Software can be big, medium, or small. Smaller projects without many complexities cost less than bigger software. However, you should understand that small projects can also be complex, and big projects can also be simple. The software's functionalities affect the complexity.

Type of the Project: The kind of software you are developing affects the development cost. Projects related to Web3, Social media Apps, SaaS products, or massive applications that need to be built from scratch cost more than simple web applications or applications that require minor modifications.

Again, some products evolve from the MVP, which has only the basic functionalities and core features, to a full-fledged application with multiple functions. At the same time, some products stay virtually the same over their life cycle without major changes or integrations. These two products will not cost the same to build.

Products like analytics tools, social media platforms, and ride-hailing Apps are complex, evolve frequently, require a lot of time and expertise, and are expensive to build.

Selected Tech Stack/Software Requirements: The technology stack required for different types of products varies, as does the cost of developing them.

• Platform-Compatibility : If you build products that can interact with multiple platforms, you will spend more because you need to hire different developers with different skill sets to work on the various versions of your App.

However, if your product is platform-specific, you will spend less but may lose many potential customers and revenue figures.

Users of tech products do not want to be stuck in one platform; hence, cross-platform functionality is an important feature to add to your product. However, you must understand that it costs more to build.

For instance, a simple Social Media App built for one platform, say Android devices, may cost $10,000 (₦7.5 million). However, the same app built for Android, iOS, and the Web may cost well over $50,000 (₦37.5 million).

• External Systems and APIs : In many cases, building your software using Application Programming Interfaces (APIs) or incorporating external systems is a smart idea. However, these external systems and APIs require complex processing in the back-end, which is usually expensive to program.

For instance, applications that include geo-location features and maps get these data by fetching third-party APIs. These APIs may increase the cost of development.

• Team Size and Remuneration : The size of the software development team you hire for your project directly affects the development cost. When you hire a large team for a big project, you have to compensate each developer adequately to enable them to deliver high-quality software.

The project managers, the developers, the Quality Assurance Engineers, and the documentation experts you hire for your projects all command heavy compensation. This directly affects the cost of your software.

Also, the method of compensation can affect your cost. You may agree to pay your team members a fixed or hourly rate. These methods have different cost implications. You’re likely to spend more on hourly rates, and the fees may be unpredictably high, especially when the development takes longer than anticipated.

• Location of your Developers : The geographical location of your developers and other team members also affects the cost of software development. This is because labour laws and the cost of living differ from country to country, and if your developers work from countries with higher labour costs, you will definitely pay more for their services.

For instance, if you hire developers from the USA, Canada, or Western Europe, where developer compensation averages around $100 per hour, you will have to meet this wage demand.

Again, currency fluctuations may also impact the cost during conversions.

How Much Does it Cost to Develop Software in Africa

African countries have different currencies; hence, developers and firms from the region may bill you in their local currency or US Dollars.

In Nigeria, for instance, the cost of software development averages between ₦1.5M (($1,000) and ₦37,500,000 ($25,000).

Simple Web Apps cost between 1 million naira and 5 million naira. But suppose you want to develop a more complex app with more complex functionalities like in-app purchases and push notifications. You may spend between 6 million and 10 million in that case because they require more time and effort.

However, high-end apps with advanced capabilities, complex backend systems, real-time chat, video streaming, and many user interactions will likely cost anywhere between ₦20,000,000 ($15,000) and over ₦50,000,000 ($37,500).

Generally, the price depends on the abovementioned factors and your contract with the software developers.

How Much Does it Cost to Develop Software Outside of Africa

The Cost of software development outside the African continent differs greatly depending on the location, labour laws, and nature of the software you intend to build.

In places like the United States of America, you should expect to pay between $5,000 to $150,000, depending on the size and complexity of your project. Importantly, system configuration management can cost up to $300,000.

Based on rough estimates, a minimum viable product may cost between $5,000 to $20,000, a simple app goes for $20,000 to $60,000, while a more complex and full-scale App may cost anywhere from $60,000 to $150,000 and above.

How to Reduce the Cost of Software Development

Here are the ways you can reduce the cost of software development without compromising the quality of your product:

- Use APIs
Consider integrating APIs for some components instead of building customized software from scratch. However, only work with software that directly contributes to your project's core features. Avoid crowding your code base with too many third-party APIs.

- Work with Simpler AI Models
For applications that require AI, integrate simpler AI models for your MVP instead of large language models like Open AI’s ChatGPT.

- Use a simple and clean design for your projects
For your MVP, Use a minimalistic but user-friendly interface. You can always improve as your project grows bigger.

- Leverage open-source software and libraries
Open-source solutions often provide robust functionality, security, and community support without licensing fees. However, pay attention to licensing requirements and ensure compliance.

- Hire from Low-Cost Regions
Hire development teams from Africa or Eastern Europe, where you can get developers to build high-quality software at a cheaper rate.

- Consider Outsourcing Your Software Development to Software Development Firms
Outsourcing teams for your software development is a sure way of kickstarting your project and shipping as fast as possible.

Outsourcing is a great alternative if you need human resources to build your products but lack the knowledge to hire and retain them.

Tribesquare is a good example of a Team-as-a-Service firm you can hire for your complete software development and team management needs.

At Tribesquare, you hire highly skilled technical teams to handle your software development and maintenance needs without worrying about team management concerns.

Tribesquare offers outsourced teams to founders and growing businesses in need. Its developers have a track record of developing high-quality products and shipping them on time.

If you want to work with Tribesquare to develop and launch your project, visit our website or contact the team using our request form- Tribesquare.co