THANK YOU FOR SUBSCRIBING
With a plethora of lagging and leading indicators indicating faster growth, Africa's rapidly developing tech ecosystem presents an exceptional opportunity for tech and non-tech enterprises to enter the region.
Fremont, CA: Investment monitoring website Africa: The Big Deal estimated that the African tech ecosystem will raise $7.2 billion in 2022 (per Partech data), making it the continent's best year ever for raising $5.2 billion (per Partech data). Fintech accounted for 63 percent of all startup investment in Africa last year, or $3 billion, making it no surprise that this sector prevailed. Fintech has raised $660 million of the 2.1 billion dollars raised by African entrepreneurs this year.
Industries experiencing growth in Africa’s digital ecosystem:
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
EdTech
After the pandemic disrupted education, the global community turned to edtech solutions to continue studying efficiently and effectively. As a result, many edtech companies worldwide benefited, but African edtech companies struggled to take advantage of this potential. In 2021, when the global edtech market raised $20 billion, African edtech firms raised less than $40 million. However, Africa has an education crisis, with over 100 million children across all educational levels not attending school. While there is not currently a financing boom in edtech in Africa, the market is enormous. African corporations have made remarkable attempts to solve the continent's educational difficulties.
CleanTech
Africa is home to 75 percent of the world's population that lacks access to power and renewable energy sources. Investors' increased investment in clean energy will help Africa close this gap. This has also made cleantech the industry closest to dethroning fintech this year, assuming the current pace continues. This year, a cleantech startup has received the most money on the continent, making it the second most funded industry thus far.
AgriTech
Africa is undergoing its biggest food crisis in ten years, with 27 million people suffering from extreme hunger in Nigeria, Chad, Mali, Burkina Faso, Ethiopia, Somalia, and Kenya; and it is feared that 11 million more people may become hungry in the next three months if nothing is done. This food crisis is aggravated by rising food prices, repeated droughts, continental conflicts, and the Ukraine-Russia conflict. Africa must become more self-sufficient in food production than ever before because, for the most part, it has relied on humanitarian aid to feed its inhabitants.
More in News