In 2022, funding for the African digital startup ecosystem crossed the US $3 billion threshold for the first time, and the industry overcame challenges from the global economy to have a record-breaking year.
This is supported by the eighth edition of the yearly African Tech Startups Funding Report, which was published by the startup news and research website Disrupt Africa. The report is freely accessible to all users as part of an open-sourcing initiative in collaboration with Flat6Labs, MarketForce, 4Di Capital, Mercy Corps Ventures, Newtown Partners, and InsiderPR.
The research describes a remarkable 2022, when more businesses raised more money than ever before despite a worldwide decline in investments, particularly in riskier asset types like venture capital. In all, 633 businesses raised $3,333,071,000 in total in 2022. This showed a tremendous increase. In 2021, there were 564 financed companies, a 12.2% rise, and the total amount of capital acquired climbed by 55.1% to US $2,148,517,500.
Nigeria, Egypt, South Africa, and Kenya continue to be the “big four” of Africa in terms of finance, although they each received a lesser portion of the continent’s overall capital than in 2021 when startups from more African nations than ever before received the money.
Even if Nigeria and the other “big four” countries continue to be the leaders, there is still a lot going on throughout the continent, with companies being supported in 27 African nations.
With more companies receiving money from the FinTech industry than any other sector and a combined amount that surpassed all others, the FinTech industry was once again the most alluring to investors in 2022. Funding for the industry totaled roughly US $1.5 million.
However, other industries such as e-commerce and retail tech, e-health, logistics, energy, agri-tech, and transport all had successful years.
