African startups, a rising force in the global tech scene

African tech startups, between 2015 and 2020 received funding roughly six times faster than the global average, the World Economic Forum reported.

Over time, the funding obtained by Nigeria, Egypt, South Africa, and Kenya has steadily increased, rising from 79.4% in 2018 to 87.5% in 2019 and 89.2% in 2020 and as of 2022, Nigeria, Egypt, Kenya, and South Africa accounted for 92% of Africa's tech investment.

Egypt, with its diverse entrepreneurial ecosystem and supportive government initiatives, has emerged as a strong contender in total equity funding received in Africa.

According to Magnitt's 2021 Egypt Venture Investment Report, the Egyptian ecosystem saw a 168% year-on-year gain in capital investment to reach a new all-time high record of $491M after four years of growth in venture capitalist funding.

Between June 2022 and July 2023, Egyptian startups raised a significant $540 million in funding, the highest equity funding raised in Africa, the African Private Capital Association (AVCA) in 2023 reported.

This achievement has propelled Egypt to a prominent position alongside Nigeria as Africa's largest economy, each boasting a GDP of $477 billion.

Regions like North America and Europe tend to have more mature startup ecosystems due to their advanced economies, larger pools of venture capital, and higher levels of digital infrastructure.

However, in 2022, the global economic downturn in capital investment resulted in some of the world's major regions like North America and Europe recording significant decreases in deal volumes at -28% and -12% respectively, Africa recorded a 46% increase in deal volumes, AVCA reported.

Africa also recorded a 3% increase in deal value within the same period, the AVCA report shows. This rise in deal volumes and deal value in Africa, against the backdrop of a decrease in North America and Europe is an indication of the continent's rising force in the global tech scene.