![Extra Value Is Upstream: Move Upstream And Win Your Market [video]](https://www.tekedia.com/wp-content/uploads/2025/08/acummulation-768x564.jpg "Extra Value Is Upstream: Move Upstream And Win Your Market [video]")
The accumulation of capability is a fundamental principle for companies to succeed and address market frictions. In our contemporary innovation-driven economy, the accumulation of capability has emerged as a central construct in driving business growth and national competitiveness.
Here, capability is not just about acquiring tools or infrastructure but about building deep, technical know-how, human capital, and organizational learning. Firms that progressively accumulate capabilities—especially upstream in the value chain—create greater leverage to capture extra value and dominate their industries.
This construct also informs strategic policymaking. Nations and companies that invest in upstream capabilities—such as research, design, and advanced manufacturing—tend to earn higher returns than those stuck in downstream activities like basic assembly or retailing. The Tekedia insights urge African businesses and leaders to rethink their positioning: true economic transformation will only come when we systematically move from consumption to production, and from importing knowledge to developing capabilities internally. Ultimately, value is not merely in participating, but in mastering and owning critical capabilities.
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Within the accumulation of capability construct, it is essential to prioritize playing in the upstream segment (think of MTN, Dangote Refinery) over the downstream (recharge card seller, fuel station) because that is where the highest value is created and captured. Upstream activities—such as product design, core technology development, and intellectual property creation—enable firms and nations to set standards, control pricing, and shape market dynamics.
In contrast, downstream operations like distribution and basic customer service often face commoditization and thin margins. As Tekedia emphasizes, those who dominate upstream define the rules for those downstream, making upstream participation not just strategic but necessary for sustainable competitive advantage and long-term wealth creation.
Move upstream and win in your market.
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