The African tech ecosystem grew exponentially in recent years with capital investments hitting all-time highs. Africa’s young, digitally-literally population is fuelling this rapid technological development. The many successes of 2021 and host of fast-growing tech-companies across the continent is creating hope for more fantastic achievement in the coming years to come.
How Tech Startups are Shattering Funding Records, and Landing Mega-Deals
In terms of start-ups worldwide, and specifically in Africa, 2023 has a fantastic year. Venture capital funding on the continent increased by more than 2.5 times from 2022 levels. This came to a very amazing $4.77 billion.
Total Growth of the Startup Ecosystem
In 2023, venture capital funding in Africa hit a new high of $4.4 billion, up 35% from the previous year. There were over 7,000 active tech startups in Africa, a 20% increase. By 2027, the African digital startup scene is projected to generate 3.5 million employment.
Although foreign investors provided the majority of the investment, domestic investors are increasingly supporting African innovation. The increase in local venture capital participation will help African start-ups grow and expand. A $40 million investment fund was launched in 2021 by Ventures Platform, an early-stage venture capital firm with a focus on Africa.
Africa’s Tech Talent Resources, a Huge Opportunity for Innovation and Growth
The need for young, skilled workers has increased as a result of the expansion of the start-up industry worldwide. Africa is home to the fastest-growing developer population and is becoming a major source of talent for software engineering.
The Rise of Women in Technology
In Africa’s tech industry, women make up 30% of professionals, according to UNESCO. This is higher than the 28% global average. Coordination among African women and girls to encourage them to pursue careers in STEM and technology has led to this rise.
She Code Africa, The Digital Marketing Women Employability and Entrepreneurship Program, and Women in Tech Africa are just a few of the programmes that provide women and girls with chances and skills to help close the gender gap. 1,000 women received design scholarships as part of the “Women in Design” initiative.
Historically, start-ups led by women have raised significantly less money than their male rivals. Looking further into the investment data, we find that 7% of 2021 tech investments in Africa were made by female CEOs. Much lower numbers—4% and 2%—were recorded in 2019 and 2020.
African authorities need to speed up the implementation of progressive laws. In order to create an atmosphere where investors, entrepreneurs, and innovators can work, develop, and prosper, they must offer both fiscal and non-fiscal incentives.
