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6 min read

Why Most African Startups Overpay for Cloud Infrastructure

A breakdown of the most common cloud cost traps — and the self-hosted alternatives that save 60–80% without sacrificing reliability.

Cloud infrastructure is eating African startup margins. AWS, GCP, and Azure are optimised for enterprises with procurement teams and reserved-instance commitments — not lean startups running on runway.

Here is what we see consistently across clients:

  • Elastic IPs and load balancers billing even when idle
  • Database instances sized for peak load that never comes
  • Egress fees that multiply every time the product finds traction

The alternative is not complicated. A Hetzner CX22 (2 vCPU, 4 GB RAM) costs €3.29/month. With Docker and nginx it runs a Django application serving tens of thousands of requests per day. The same workload on a comparable AWS EC2 instance costs $35–60/month.

The argument against self-hosting — "you need DevOps expertise" — is weaker than it was three years ago. Tools like Coolify and Railway bring one-click deploys to bare metal. You keep the economics of a VPS with something close to the developer experience of a managed platform.

This post is a free teaser. The full infrastructure guide (including our exact Hetzner + Cloudflare + Docker setup for production Django apps) is available to Insights members.