Did You Know?: Business Facts from Africa

Get the latest business facts straight from Africa. Curious about key trends and stats? We’ve got you covered. Stay in the know and boost your business smarts right here.

1. Venture Funding Rise: $621.8 Million in Q2 2023

Venture funding in African tech surged to $621.8 million during Q2 2023, marking a substantial YoY increase.

2. Mega Deals Boost May Funding: 42% YoY Increase

May 2023 witnessed a 42% YoY increase in funding, driven by two mega deals: M-Kopa secured $255 million and SunKing’s $130 million securitization deal.

3. Mixed Momentum: April and June Deals at $129.8 Million and $126.2 Million

In contrast to May’s surge, April and June 2023 recorded funding deals of $129.8 million and $126.2 million respectively.

4. Total Q2 2023 Funding: $877.8 Million across 220 Startups

In Q2 2023, a total of $877.8 million was raised by 220 startups, reflecting a 6.9% increase from Q1 2023.

5. Fintech’s Shift: Energy Sector Claims 53% of Funding

Energy-focused startups dominated Q2 2023 funding, raising $486.9 million, accounting for 53% of total funding.

6. Fintech Funding Reality: Limited Success in June 2023

Fintech startups in Q2 2023 faced funding challenges, with limited success in June compared to previous quarters.

7. Nigerian Funding Lead: $462.4 Million Raised

Nigeria secured the highest venture funding in Q2 2023 with $462.4 million, outpacing Kenya, South Africa, and Egypt.

8. Kenya’s Rise: $149.3 Million Funding

Kenya secured $149.3 million in Q2 2023, experiencing a notable rise in funding compared to previous quarters.

9. South Africa and Egypt: $214 Million and $6.1 Million Funding

South Africa and Egypt secured $214 million and $6.1 million respectively, with South Africa’s funding experiencing a decline.

10. Expansion Trend: Autochek’s Acquisition and Farmerline’s Launch

Q2 2023 witnessed expansions with Autochek’s acquisition of AutoTager and Farmerline launching in Ivory Coast.

11. Cybersecurity Concerns: Showmax and Nigerian Banks Targeted

Cyberattacks targeted MultiChoice’s Showmax and Nigerian banks, exposing vulnerabilities in digital platforms.

12. Shutdown Impact: Lazerpay and Copia Global

Lazerpay, a Nigerian crypto startup, and Kenyan e-commerce company Copia Global experienced shutdowns.

13. Layoffs Across Startups: Twiga, Eyowo, and Chipper Cash

Layoffs hit African startups, including Twiga, Eyowo, and Chipper Cash, due to various economic challenges.

14. Zimbabwe’s Digital Currency Launch: $39 Million Raised

Zimbabwe launched a digital currency, selling $39 million worth of gold-backed digital tokens.

15. Nigeria’s E-Naira: 98.5% Inactive Wallets

Nigeria’s e-naira faced challenges, with 98.5% of 14 million created wallets remaining inactive.

16. Regulatory Changes: License Revocations by Central Bank

The Central Bank of Nigeria revoked licenses for 179 microfinance banks, four primary mortgage banks, and three finance companies.

17. Economic Growth: Africa’s Projections

Africa’s economic growth is set to outperform global averages, with projected GDP growth averaging around 4% in 2023 and 2024.

18. SSA Growth Slows: 3.6% in 2022 from 4.8% in 2021

Sub-Saharan Africa’s growth slowed to 3.6% in 2022, a decrease from 4.8% in 2021 due to COVID-19 and other global factors.

19. Resilient Regions: Positive Growth Despite Challenges

Despite challenges, all five African regions exhibited positive growth in 2022, with projected stable outlooks for 2023-24.

20. Sub-Saharan Africa’s Debt Challenges: 22 Countries at High Risk of Debt Distress

Over the years, Sub-Saharan Africa’s public debt has tripled, with 22 countries facing a high risk of external debt distress or already in debt distress.

“Did you know?” is a regular business facts column in the Business Elites Africa Magazine.