Here’s How African Tech Startups raised USD129million funding in 2016

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African tech startups have continued to project that Africa remains a significant destination for investment in technology, raising a total of USD129 million in 2016.

Year 2016 was gloomy across Africa, with enough economic contractions, and other tell-tale signs to discourage any investor from wagering their dough on the continent. Ironically, the African tech scene enjoyed much fanfare during this period with Facebook’s Mark Zuckerberg’s visit to Nigeria and Kenya, causing many to tip the African tech scene as the key to the African future.

A recent revelation by the Disrupt Africa Tech Startup Funding Report of 2016 has reaffirmed this. According to the report, 146 startups from across Africa raised US$129,113,200 in funding over the course of 2016 with South Africa, Nigeria and Kenya being the three most popular investment destinations on the continent, accounting for 80.3 per cent of funds secured. Meanwhile, Egypt experienced over 100 per cent growth in fundraising, making it the fourth ranked destination.

This displays substantial growth in the number of startups to raise funding as compared to the previous year, although the overall total amount of funding recorded declined.

According to Tom Jackson, Co-founder of Disrupt Africa, “The general theme of 2016 has been more rounds, but with fewer standout tickets than in 2015. The African tech space has not been immune to the economic pressures faced by other sectors, but it is proving extremely resilient.”

Despite the decline in the total amount of funding, the fact more startups raised funding in 2016 than ever before demonstrates the vitality of this sector, and we expect investor interest to grow and grow over the course of 2017,” he said.

Of the nine sectors analysed in the report, the fintech sector received the most backing in 2016, with startups in this space raising a combined US$31.4 million. This further re-affirms that the payment processing scene remains a huge potential in the African tech scene. Not quite long ago, Nigerian payment processing platform, Pagatech revealed it has continued to make a 100% year-on-year growth since launching in 2009. In similar vein, Paystack, also a Nigerian payment processing platform raised $1.3 million seed funding in 2016.





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  1. Pingback: "Local investment is sparse in Africa because African investors want quick money"- Maya Horgan Famodu, founder of Ingressive - The website for African entrepreneurs

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