Egypt surpasses Nigeria in start-ups capital funding in Africa
Egypt is the continent’s new leader in the total equity funding raised by start-ups in Africa from June 2022 to June 2023, overtaking Nigeria, according to London-based African Private Equity and Venture Capital Association (AVCA).
Per AVCA data, startups in the North African country raised $540 from June 2022 to July 2023. The amounts represent a 25% decrease from the $710 million raised the previous year but stands as the least decline among the big four African countries. Egypt, also per the data, was the only country to climb over the half-billion mark within the period.
Funding to tech firms in Nigeria according to AVCA fell the most at 77% year on year to $470 million from $2 billion.
South Africa and Kenya, two other major destinations for funding for startups on the continent, lost respectively 53% and 69 per cent to their investments. Both landed during the period respectively $420 million and $300 million.
Egypt, Nigeria, South Africa and Kenya, all raised $4.6 billion between June 2021 and June 2022, a figure way higher than their cumulative funds raised this year, $1.7 billion, between June 2022 to July 2023, AVCA says in its report.
The financial sector, popularly known as fintech, continued to attract most equity funding, though at a slower pace, AVCA said. Funding, AVCA also notes, grew 15% in Côte d’Ivoire and 34% in Cameroon. The association also argues that the biggest jump by far was recorded in Algeria from $30m to $150m, attributable to a single deal – YASSIR’s investment in November 2022.