Innovation on the continent

Fintechs are dominating the tech sector

South Africa, Kenya, Egypt and Nigeria are the premier tech investment destinations on the African continent, according to the latest report released by Disrupt Africa.

The African Tech Startups Funding Report 2022 showed that the number of startups which have secured funding has increased each year since Disrupt Africa began publishing its annual report. The number of African startups who have secured investment each year has increased by 406 percent since 2015.

The report says: “2021 was a landmark year for the African tech space, with unprecedented growth seeing the sector pass both the US$1 billion and US$2 billion marks for the first time. However, amidst a global downturn in investments, especially in riskier asset classes such as venture capital, one would have been forgiven for expecting some levels of stagnation in 2022. Far from it.”

The report also shows that the amount of total funding going to African tech startups also continues to increase, though the rate at which it is growing has decreased quite dramatically in 2022.

It showed that the fintech sector continues to power Africa’s startup funding revolution, posting another

The fintech sector continues to power Africa’s startup funding revolution, posting another record-breaking year

This year the e-health sector and the AI sector stood out in terms of the number of startups that have been backed, with fourteen (15.7%) in the former and eight (9%) in the latter. In terms of total funds, e-commerce and retail-tech were the only other noteworthy sectors, collecting US$97 750 000 (29.6%), while other investments were spread around sectors. record-breaking year, yet its share of total funding declined as other spaces saw serious advancements.

“In all, 205 fintech startups (32.4 percent of the total, representing an increase of 11.4 percent on 2021 figures), raised an extraordinary US$1,446,794,000 - 43.4 percent of the continental total. This latter figure was up 39.3 percent on US$1,038,456,500, which made up 48.3 percent of the 2021 total,” the report said.

However, the report noted the relentless growth of Africa’s fintech space should not, however, detract from positive developments elsewhere. “Indeed, even though total fintech funding increased, its overall share of investment fell. Non-fintech startups still raised the majority of the capital, with many sectors enjoying bumper years,” it said.

When it comes to gender parity in this sector, more needs to be done. “Only 128 (20.2%) of the 633 funded African tech startups have at least one woman on their founding team, which is up from 121 in 2021 but still represents a percentage decline from 21.5 percent,” the report said.

Other than in fintech, South Africa, particularly, has seen the funding spreading across a range of sectors.

AFRICA TECH WEEK:

Topco Media, in partnership with Sentech, provides a unique and diverse conference experience at Africa Tech Week. The conference offers attendees the opportunity to learn about the latest trends and innovations in the African tech industry while connecting with key players and exploring new business opportunities. Participants get to learn how tech is disrupting various industries in Africa including, among others, education telecommunications, infrastructure and financial services and banking.

Weighing in on the conference, Pamela Mkhize, Head of Africa Digital Solutions at Enel Group Power said, “Africa Tech Week in itself is a platform that seeks to recognise businesses that are providing Tech solutions in the continent. Businesses, by virtue of being part of the Africa Tech Week give themselves an opportunity to learn from their counterparts.”

Source: Disrupt Africa