This Week in Tech: Africa Tech Ecosystem Raised $6.5b in 2022; Nigeria Attracted $1.2b
Funding for the African sector grew +8% to US$6.5B
Hello!
This week Partech Partners - a global investment platform for tech and digital companies, released its 2022 Africa Tech Venture Capital report. In their own words;
“Funding for the African sector grew +8% to US$6.5B, through 764 rounds, with debt funding doubling in the year (+102% to US$1.5B in 71 rounds) to compensate for a slight decline in equity rounds (-6% to US$4.9B in 693 rounds). Clearly, the deep forces driving growth of the African Tech ecosystem have prevailed against the headwinds.”
I attempted to summarize after spending more than three hours reading through the report but found out that lots of tech and news platforms have done so already. I thought, “why bother re-inventing the wheel?”. This Week in Tech, it’s looking like a great year for African tech startups. And it’s a good thing.
Enjoy your week.
Factors that will continue to shape the Cameroonian remittance market in 2023
The shift is positively impacting the financial industry and improving the lives of millions of people in Sub-Saharan Africa. In the first half of 2022, remittance inflows in Cameroon, via WorldRemit, totalled £75 million GBP, boosted by the rapid need for digital remittances worldwide following the COVID-19 pandemic. In 2023, it is projected the remittance industry will continue to evolve with innovation in the fintech sector at a quick pace. This will take place amidst an increasingly challenging economic environment with a continued increase in the cost of living and inflation across the globe. Africa.com
[REPORT] Africa Tech Ecosystem Raised $6.5b in 2022; Nigeria Attracted $1.2b
Total funding invested into tech startups on the continent reached $6.5B, an increase of 8% vs 2021, spread across 764 deals – compared to 724 rounds in 2021. The report, consisting of disclosed and confidential deals, saw debt funding more than double in volume, reaching $1.55 billion through 71 deals [65% YoY growth]. In comparison, equity rounds showed a slight decline, as 653 African tech startups raised $4.9B [-6%] in 693 equity rounds [2% YoY growth]. Tech Economy
Can African fintech startups build global solutions?
Pertinent to this conversation is the question of where in the world Africa will be building fintech solutions for. Will a Lagos-based startup export its remittance solution to the United States, and compete against Google Pay, Apple Pay, Stripe, and Paypal? Or will a digital lender in Nairobi enter the race to “introduce digital services” to SMEs in Europe? These are unlikely, and may even sound sarcastic, considering Africa’s rear position in global technology and digital advancement. Tech Cabal
How a Zimbabwean startup -Tano Digital, is going regional
Already present in South Africa, the fully Zimbabwean-owned and managed digital solutions firm is finalizing acquisition deals in Namibia and Kenya. From five people in 2019 to a current staff of 100, the tech company currently realizes an annual turnover of 600 million rands ($35 million). Now it is set for even bigger growth, with the continent as its market. QZ
African leaders who dilute workers’ rights for Uber’s digital empire harm Africa
The expansion of digital labour platforms in Africa has been largely welcomed by governments desperate to tackle crises of unemployment and low growth. During a decade on the continent, Uber has often cut drivers’ pay and added little value to local economies. Governments should admit it is not economic progress but imperial exploitation. The Guardian
Astonishing rise in contactless payments in South Africa
More than 50% of First National Bank customers now tap to pay at the point of sale (POS), marking an extraordinary rise in contactless payments technology since the Covid pandemic struck in 2020. FNB said on Wednesday that the use of chip-and-Pin payments, where a customer inserts their bank card into a POS terminal, is declining rapidly. “On credit cards and Fusion accounts, card swipes account for less than 1%, while contactless is more than 60% of all transactions,” the bank said. Tech Central
Microsoft cloud outage hits users around the world
Microsoft (MSFT) on Wednesday said it had recovered all of its cloud services after a networking outage took down its cloud platform Azure along with services such as Teams and Outlook used by millions around the globe. Azure’s status page showed services were impacted in the Americas, Europe, Asia Pacific, the Middle East and Africa. Only services in China and its platform for governments were not hit. By late morning Azure said most customers should have seen services resume after a full recovery of the Microsoft Wide Area Network (WAN). CNN
Local Investors Drive Resilience of Africa’s Burgeoning Startup Scene
Unsurprisingly, the African FinTech sector, which continues to play a critical role in accelerating financial inclusion across the region, netted the most VC funding in 2022 across all sources of capital, claiming 39% of the total equity volume ($1.9 billion) and 45% of the total debt volume ($691 million), per the report. Pymnts
Global Ventures VC: Don't impose 'copycat' ideas on Mideast, Africa
As venture firms cast a wider net to find investment opportunities outside established markets, the burgeoning startup ecosystems in the Middle East and Africa are attracting great interest. Capital invested in African startups reached a record $3 billion last year, according to PitchBook data. The Middle East was down 4.2% to stand at $15.9 billion, but the region still fared relatively better than its more established counterparts like the US and Europe. Pitch Book
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