The Partech Africa 2022 report on the African technology ecosystem has been published. Its main conclusions: resilience and attractiveness are confirmed.
By the editorial staff
The report provides a practical picture of the state of the African tech ecosystem. As Cyril Collon, General Partner at Partech, explains: “Much of our methodology has remained the same over the years, and we, therefore, can provide a snapshot of how the African continent has evolved over the years.” Without further ado, let’s jump into the key findings!
« More investors have doubled their commitment to the continent”
Amidst a tumultuous year for the VC ecosystem, with global funding down 35% from 2021, funding for the African sector nonetheless grew 8% to $6.5B.
« Our report revealed the African tech ecosystem showed great resilience, as more investors have doubled their commitment to the continent”, explained Tidjane Deme, General Partner at Partech.
The report compiles investment trends across the continent, looking at gender parity, sector breakdowns, and country by country comparisons.
« Nigeria, South Africa, Egypt and Kenya are still the hotspots for African VC investment »
In 2022, fundraising activity remained flat across all stages; however, the ticket sizes were the same in the early-stage startups [Seed+ at $1.4M; Series A, at $8.4M] and much smaller in later stages [Series B, at $18.9M; & Growth at $49.9M].
Despite seeing a -36% YoY decline in the total invested amount, Nigeria retained the #1 spot with $1.2B. Nigeria, South Africa, Egypt and Kenya are still the hotspots for African VC investment, with their contribution to the total volume remaining relatively flat at 72%.
« Fintech impacted but remains the most funded sector in Africa »
In light of the market downturn, Fintech is the most impacted by the slowdown in large rounds but remains the most funded sector in Africa, attracting 39% of the total volume [$1.9B] – decreased by -41% YoY.
Female-founder startups raised 22% of all rounds in 2022, up 2 percentage points from 20% in 2021.
Despite a slowdown in the growth rate of equity investors, Africa’s tech ecosystem attracted 1,149 unique investors for the first time [+29% YoY in 2021].
