TechCabal Insights has unveiled the Q4 edition of its State of Tech in Africa Report, saying only four countries secured funding exceeding the $100 million threshold in 2023.
It noted that despite a 79 per cent dip in funding, fintech emerged as the most funded sector, showcasing its resilience in challenging times.
The report, which dissected the trials and triumphs of the past year, noted that 2024 looks good for the industry in most areas. It added that African startups faced harsh realities in 2023.
The report continued: “In stark contrast, eight nations achieved this feat in 2022. Venture Capital (VC) witnessed a substantial 40.2 per cent decline from 2022, prompting resilient entrepreneurs to explore alternative funding avenues. Despite a 79 per cent dip in funding, fintech emerged as the most funded sector, showcasing its resilience in challenging times.”
Additionally, the document explored growth and adaptation strategies, underscoring the pivotal role of mergers and acquisitions as a lifeline for startups, adding: “Notably, 2023 witnessed the largest acquisition deal in the history of African tech, with fintech leading the charge. Multimarket models and strategic pivots are dissected, offering valuable insights for investors seeking a strategic shift.”
Further, the report reviewed the regulatory framework shaping African tech, while navigating the delicate balance between innovation and compliance, examining digital identity, financial inclusion, cryptocurrency, open banking, anti-competition and data protection, it provides a nuanced understanding of the regulatory landscape.
Also, on Tech Layoffs and Founders’ Outlook, a two-part survey presents primary data on the impact of tech layoffs on the workforce and outlines founders’ outlook for 2024, providing real-time insights into the sentiments within the tech community.