A report by pan-African tech publication Disrupt Africa has revealed that African tech startups raised $2.7bn in funding in the first 9 months of 2022. This is an increase of nearly 30% of the total amount raised in the whole of 2021.
The report quantifies data from 385 startups and the investments channelled so far indicate that this is so far the best year for companies in this space.
That African startups continue to shatter fundraising records at a time when the global venture capital industry is experiencing a downturn is a testament to the resilience of the tech sector on the continent and its status as a greenfield of opportunity,” said Disrupt Africa co-founder Tom Jackson. “Though we expect the overall rate of growth in 2022 to be slower than it was in 2021, the sector is still on a good trajectory.”
Nigeria still leads the pack as it has done previously, with 123 companies in the country raising a total of $858 million between January and September. There are all indications that startups in Nigeria will break last year’s record, which stood at a total of $903,680,000.
Egypt is the second as it was last, with 84 startups raising $621 million, a significant rise from last year’s $446 million.
Kenya comes in third with $489 million raised by 53 startups, a commendable rise from last year’s $292 million pumped into the country across 2021.
South Africa’s 44 startups have raised $297 million, which is slightly lower than the other top performers, but well on course to rise above last year’s total of $336,405,000.
As has been the trend, fintechs in Africa are attracting the most attention, with 137 fintech startups having raised a total of $1.27 billion funding so far, which is more than the $1 billion banked in 2021.