African tech startup funding crosses the $1bn mark in first 2 months of 2022
Over the course of a record-breaking 2021, total funding in the African digital startup ecosystem trebled, passing the US$2 billion – and even the US$1 billion – threshold for the first time.
In 2021, 564 businesses raised a total of US$2,148,517,500, according to the seventh edition of Disrupt Africa’s annual African Tech Startups Funding Report, but that record is already being surpassed in 2022.
With five-sixths of the year still to go, 110 startups have raised US$1,123,556,000 this year, which is already more than half (52.3%) of last year’s total. Indeed, if cash continues to flow in this direction, new records may be established as early as April.
For the time being, Nigeria, Kenya, and South Africa are driving this burgeoning investment. Nigeria continues to be the leader in 2021, with 33 businesses having received a total of US$364,598,000 in funding (32.5 percent of the total). Twenty Kenyan businesses raised $223,450,000 (19.9% of the total), while 16 South African startups raised $219,930,000. (19.6 percent of the total).
For the time being, Egypt, which was second in overall investment last year, is having a sluggish 2022 compared to the other main ecosystems, with 21 companies raising a total of US$102,220,000 (9.1% of the total) so far this year.
Fintech is once again proving to be the key engine of investment on the continent, with 34 fintech startups raising a total of US$434,296,000 in 2022, accounting for 38.7% of the total. Fintech’s portion of the total in 2021 was only slightly less than 50%, indicating that other sectors are playing a larger role.
The African Tech Startups Funding Report 2021 can be downloaded here.
