Start up; Africans show flexibility amidst global chaos

All around the globe, blockchain is shifting familiar structures in tangible ways even as Africans show resilience in startups amidst the chaos.

Technology-dominated startups on the continent will continue to attract investments, even at a slower pace, considering the venture capital attracted over the past years.

This sector has seen inflows of 2.7 billion dollars since January, more than double the 1.2 billion dollars in the first five months of last year, according to data collated by Future growth Asset Management.

In 2021, Nigeria and South Africa led the way as investments surged to 5.2 billion dollars, which oversaw 12 billion dollars across many asset classes.

The funding will likely slow in the months ahead as United State investors, who brought in most of the money last year, retreat because of the global market downturn.

Nigeria, with over 200 million in population, is a sizable market in and of itself. But, at the same time, Kenyan companies usually operate across a regional trade bloc of more than 170 million people before expanding further.

According to Future growth, Africa-focused startup funds such as Norsemen 22, Novastar Ventures, Partech Africa, and TLcom Capital Partners Ltd. are raising about 700 million dollars to expand their global investment.

Senegal and Ghana are on the startup map, while Nigeria and South Africa attracted the most funds last year, followed by Egypt and Kenya.

Senegal is growing quite a lot and has a fascinating new venture region that is bubbling: francophone Africa, which aids startups in Africa.

It’s a well-functioning trade bloc, common currency, similar cultures, sizable collective population and markets, and an ever-growing tech-savvy youth.”
In South Africa, where High-Growth Developmental Equity Fund invests in startups, the value of venture capital deals has grown nine-fold since 2016.

The relative depth of South Africa’s capital markets compared to other African nations will help shield it from a downside in interest from foreign funders.