Egypt overtakes Nigeria as Africa tech funding slows

Egypt is emerging as the tech powerhouse in Africa with new data showing it has dethroned Nigeria to emerge as the ecosystem that has secured the most funding from June 2022 to June 2023.

This is an indication that venture capitalists and private equity firms which have flocked to Africa in recent years to take positions, are beginning to apply the brakes on investments. Experts say this reflects a global response to high volatility and inflationary forces in many economies forcing investors to rethink their risk appetite, especially in the global tech ecosystem. In Africa, investors are demanding a lot more from founders and tech companies before committing to fund their ideas.

This is an indication that venture capitalists and private equity firms which have flocked to Africa in recent years to take positions, are beginning to apply the brakes on investments. Experts say this reflects a global response to high volatility and inflationary forces in many economies forcing investors to rethink their risk appetite, especially in the global tech ecosystem. In Africa, investors are demanding a lot more from founders and tech companies before committing to fund their ideas.