African tech ecosystem raises $6.5bn in 2022

The African tech ecosystem has grown by 8% in terms of venture capital funding in 2022, according to Partech Africa’s annual Africa Tech Venture Capital report. Despite a global decline in venture capital funding, debt funding in Africa doubled to $1.5 billion, accounting for nearly a quarter of total funding. Fintech remained the leading sector, with Nigeria retaining the top spot for investment destinations.

The report, which aims to provide a practical picture of the state of the African tech ecosystem, reveals that total funding invested into tech startups on the continent reached $6.5 billion, spread across 764 deals. Debt funding more than doubled in volume, reaching $1.55 billion through 71 deals, while equity rounds showed a slight decline, as 653 African tech startups raised $4.9 billion.

While the ecosystem was still accelerating during Q1 and Q2 of 2022, the global VC slowdown stifled growth in activity in Q3 and Q4. Nigeria, South Africa, Egypt, and Kenya remained the top investment destinations in Africa. Fintech remained the most funded sector, attracting 39% of total equity volume and 45% of total debt volume. Cleantech also made a strong comeback, with 18% of total equity funding and 39% of total debt funding.

To download the full 2022 Africa Tech Venture Capital report, click here.