African tech startups raised $1 billion in just 7 weeks of 2022 up from taking over 5 months to hit the $1 billion mark the year before.
in 2021, Investment into the African tech startup ecosystem trebled with funding passing over US$2 billion – and indeed the US$1 billion – mark for the first time.
According to the seventh edition of Disrupt Africa’s annual African Tech Startups Funding Report, 564 startups raised a combined US$2,148,517,500 in 2021.
As of March 1, 110 startups have raised US$1,123,556,000 this year, a figure that is already more than half (52.3pc) last year’s total with five-sixths of the year still to go. Indeed, if funding carries on this way, new records could be set as soon as April.
This skyrocketing investment is being driven by Nigeria, Kenya, and South Africa for now. Nigeria is the leader, with 33 startups having banked a combined US$364,598,000 (32.5pc of the total). Twenty Kenyan startups have raised US$223,450,000 (19.9pc of the total), and 16 South African startups have secured US$219,930,000 (19.6pc of the total).
For now, Egypt, second last year for total investment, is having a relatively slow 2022 compared to the other major ecosystems, with 21 startups having raised a total of US$102,220,000 (9.1pc of the total) this year so far.
Once again, fintech is proving the main driver of investment in Africa, with 34 fintech startups having raised a total of US$434,296,000 in 2022 so far, or 38.7pc of the overall tally. Other sectors are playing a relatively bigger role, however, as fintech’s share of the 2021 total was only just shy of the 50pc mark.