In the first two months of 2022 African tech startup funding surpasses $1 Billion

In the first two months of 2022, African tech companies raised more than $1 billion, more than half of what they raised in the full year of 2021.

Over the course of a record-breaking 2021, overall financing in the African digital startup ecosystem trebled, passing the $2 billion – and even the $1 billion – a milestone for the first time.

With five-sixths of the year yet to go, 110 companies 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 firms 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 just slightly less than 50%, indicating that other industries are playing a larger role.