I had the opportunity to visit Nigeria and Kenya for the first time two years ago and was able to meet some exciting entrepreneurs and investors in the region. I was struck by the potential for growth and development in Africa and have become a firm believer in the future of the continent.
A report by the African Private Equity and Venture Capital Association (AVCA) states that Africa is expected to reach $7 billion in venture funding. While Africa has made significant progress in recent years, there are still challenges to address. One major issue is the lack of reliability and follow-through on commitments, which can make it difficult for businesses and investors to operate effectively. However, Africa is on a great path.
One of the most exciting aspects of Africa's current trajectory is that the drive for growth and development is coming from within the continent. Africa has a young and growing population that is highly educated and entrepreneurial. This bodes well for the future, as this population is hungry for change and is willing to take the necessary steps to bring it about.
The continent closed the first half of 2022 at $3.5 billion in funding — a 133% increase from the previous year. Africa only captures 1% of total VC investment globally, but unlike every other ecosystem, its resilience underscores the depth of opportunity and its growth potential.
Per sector, fintech attracted the most funding by volume (32%) and value (44%). Three sectors emerged into the mainstream: healthcare (50% growth), education (64% growth), and utilities (23% growth).
There is so much more to share about my time in Africa. I will definitely write more posts about Lagos and Nairobi.