The curtains could have closed on 2023, however the African tech panorama continues to be adjusting to the aftershocks of a watershed 12 months that examined the resilience and adaptableness of startups throughout the continent. To make sense of all of it, TechCabal Insights has launched its retrospective State of Tech in Africa Report for This autumn. Its evaluation is complete and delves into the important points that formed the ecosystem whereas providing actionable insights for the journey forward.
Our report is split into 5 key sections. The funding winter unmasks the realities of doing enterprise in Africa. Merely put, 2023 was a troublesome 12 months for African startups, with solely 4 international locations elevating above $100 million in funding. By comparability, eight African international locations raised above that determine in 2022.
Enterprise Capital (VC) skilled a funding decline of 40.2% in comparison with 2022, forcing modern entrepreneurs to discover various avenues. Nevertheless, fintech stood sturdy, sustaining its standing as probably the most funded sector regardless of a 79% dip in funding.
Weathering the storm explores the methods for development and adaptation. One silver lining was the utility of mergers and acquisitions as a startup lifeline, which is able to stay a mainstay in 2024. For all of the challenges confronted, 2023 nonetheless recorded the only largest acquisition deal within the historical past of African tech, with fintech, as soon as once more, being the pacesetter. The report additionally examined multimarket fashions and pivots, highlighting notable examples that may function a compass for traders needing a strategic shift.
Regulation and coverage take a look at the regulatory framework shaping African tech as policymakers and innovators thread fastidiously between navigating the digital frontier and staying compliant, according to greatest practices. It covers regulation round digital identification, monetary inclusion, cryptocurrency, open banking, anti-competition and knowledge safety.
For our two-part survey, we collated main knowledge to offer a nuanced understanding of the impression of tech layoffs on the workforce and a founders’ outlook for 2024, providing a real-time pulse on the feelings inside the tech group.
Lastly, we offer an outlook for the longer term. What does the uncharted terrain appear to be? Can bootstrapping take the place of VC funding? What imperatives lie forward for founders, traders, and policymakers alike? Which traits from the previous can function a prognosis for 2024? What multipolar forces will outline Africa’s digital economic system sooner or later?
The solutions to those and extra might be present in our State of Tech Report This autumn. Click on this link to obtain it. We additionally worth your suggestions. Assist us fill this brief survey to tell us how our experiences can serve you higher.