The report reveals a significant slowdown in the African technology sector in 2023, in line with the global slowdown in venture capital financing. African startups raised $2 billion in equity, a 43% decrease from the previous year, reflecting a mature ecosystem that prioritizes quality over quantity.
Traditional investment hubs such as Nigeria, Egypt, Kenya, and South Africa maintained their positions, while the DRC Congo surpassed Ghana as the fifth country, indicating the emergence of new hubs.
Emerging sectors
Despite the overall decrease in funding, the share of Fintech financing increased from 30% in 2022 to 50%, underscoring its growing importance in the financial landscape. Clean technology, mobility, and e-commerce sectors also attracted investor interest, while emerging sectors like AI show promising signs of future growth.
Profitability and economic strength have become crucial business parameters for startups, signaling a mature ecosystem focused on proven business models and solid execution.
