If there is an industry in Africa that has gained global attention it is the tech industry and more so the tech startups. Tech start-ups have experienced considerable growth in the last decade with the changes controlled by investors, customers, and ease of market access. Private market investors and venture capitalists are more willing to invest in tech start-ups regardless of the high risk involved. Also, potential customers are easier to reach through various channels and are more open to patronizing the product and services of the tech-startups.

Even though the ecosystem of African tech start-ups is not as robust and advanced like some other parts of the world, it has advanced beyond what it was and holds so much potential.

Here, we are going to explore the many amazing facts of the African tech industry.

1. Funding for tech startups in African is growing six times faster than the global average: In 2021, funding for tech start-ups in Africa was $4.9 billion which more than tripled the number in one year. However, this figure for African startups account for just 0.2% of the $3.8 trillion funding value globally.
2. Of the 8 unicorns in Africa, 5 of them attained unicorn status in 2021: there are only 8 unicorns (startup company with a value of over $1 billion) in Africa and 5 of them attained that status in 2021. These companies include: Flutterwave, Andela, ChipperCash, Opay, and Wave.
3. The Tech industry has contributed considerably to the Gross Domestic Product (GDP) of certain African Countries: According to the Q4 2021 report by Nigerian Bureau of Statistics the ICT sector contributed 15.21% of the total GDP of Nigeria. The technology industry in Nigeria received $75 million from foreign investors in 2019 and according to data from the Central Bank of Nigeria, this is a 703% increase over the $9 million investors contributed in 2018. At the end of 2021, Kenya’s information and communications technology (ICT) sector contributed about 8% of the country’s GDP through IT-enabled services and creating 250,000 jobs.
4. African start-ups raised over $1.5 billion in Q1 2022: For the first quarter of 2022 according to TechCabal Insights, (TC Insights) African startups raised over $1.5 billion with the FinTechs accounting for about 30% ($450 million) of the amount raised. This is followed by e-commerce and logistics start-ups at $200 million and $142 million respectively.
5. More women are getting into the tech industry: According to UNESCO, women represent an average of 30% of the professionals in Africa’s tech sector and this is slightly higher than the global average that is at 28%. This growth is from coordinated action to involve women and girls in tech and STEM fields in the continent. Women-focused tech initiatives such as Women in Tech Africa, She Code Africa, and Africa Code Week are empowering women and girls with skills and opportunities aimed at bridging gender disparity.
6. In Q1 2022, growth stage start-ups received the most funding: As revealed by TC Insights, start-ups which have progressed beyond the take-off phase received funding of about $355 million in five deals. This is matched closely by series A round of funding that brought in $307 million.
7. Gradual development of an enabling environment for the tech industry within Africa: South Africa paved the way for the African tech ecosystem from a regulatory outlook by passing a new policy to make the nation a start-up nation. The Nigerian and Keyan governments are making steps to presenting and approving Start-ups bills for the country.
8. AI/AR start-ups and Buy Now Pay Later (BNPL) start-ups are fast becoming choice start-ups in Africa: The AI/AR and BNPL start-ups secured increased funding in Q1 2022, according to TC Insights. The increase in AI/AR was noted with Tunisia’s Instadeep that received $100 million in venture capital (VC) funding, together South Africa’s Carscan which raised $1.3M; this accounts for 6.7% of the total amount raised in Q1 This startup operates within the auto-insurance space utilising AI/AR technology. In Q1 2022, the BNPL start-ups raised over $102M in VC funding
9. The number of tech start-ups securing funding in Africa increased by 46% in 5 years: In 2015, only 55 tech start-ups secured funding, however, this has increased steadily over the years bringing to 359 companies who were able to secure funding in 2020.
10. Tech-startups in five African countries raised over $100 million in 2021: Tech start-ups in Nigeria, South Africa, Egypt, Kenya, and Senegal raised $1.41 billion, $838 million, $588 million, $375 million, and $222 million respectively. Africa’s big four remained Nigeria, South Africa, Egypt, and Kenya, accounting for 80% of all funding raised in 2021 (and 35% for Nigeria alone).
11. More female-led start-ups raised million-dollar rounds in 2021: An increase was noted in the number of female-led start-ups that raised million dollar funding. The female-led startups that raised a million dollars or more in 2021 include Shuttlers, Bankly, Lami, Okra, Klasha, Akiba Digital, Ejara, Kwara, Edukoya, Reelfruit and Jetstream.
12. In 2021 Nigeria became the unicorn capital in Africa: Among three fintech companies, Interswitch, OPay, and PalmPay in November 2019, a total of $360 million was raised from investors in the United States and China; and this announced Nigeria as the unofficial fintech capital in African and home to digital finance startups. Following this, in 2021, the three companies, including Andela, started working in Nigeria’s commercial hub, Lagos, earning it the status of Africa’s unicorn capital.
13. The foreign investments dominate the African tech industry, but local investors are increasing: According to Tech point, most investments for the African tech industry come from the United States and United Kingdom. However, in 2021 the activities of local investors increased and some of the local investors were Ventures Platform, Savannah Fund, FirstCheck Africa, LoftyInc Capital, and Flat6Labs.
14. South Africa, Nigeria and Kenya account for 65% of fintech companies in Africa: South Africa has 165 fintech companies, followed by 144 fintech companies in Nigeria and 93 in Kenya. Altogether, they account for 65% of all the fintech companies in Africa.
15. Investor optimisms reduces as global tech stock decreases by 11% in Q1 2022: At the end of Q1 2022, the NASDAQ-100 Technology Sector Index for tech stocks, declined by 11% which has reduced the optimism of investors.
16. South Africa gradually becomes an acquisition hub: According to TechCabal Insights, of the 14 acquisitions closed in Q1 2022, either the acquirer or the acquired startup came from South Africa or Egypt while the rest were split amongst Nigeria, Kenya, and Ghana. This trend is expected for South Africa as the country has noted multiple acquisitions in the last seven years. In 2020 and 2021, South Africa led the continent’s acquisition as it accounted for about 35.7% and 28.1% of the total acquisition deal count respectively.
17. In Q1 2022 four startups expanded their base to other African countries: four startups including Tendo, Boxconn, Gozem and Lamma expanded beyond their home base to other countries within Africa. Tendo with its local base as Ghana expanded to Nigeria; Boxconn. With its local base as Ghana expanded to Nigeria and Botswana; Gozem with its local base as Togo expanded to Cameroun; Lamma with its local base as Tunisia expanded to Morocco.

These facts show rapid increase in African tech unicorns and indicates the speed of, and prospects for, growth within the continent. It also emphasizes the gradual but steady maturation of the tech industry and an increase rate of investment being experienced nowhere else globally.