Africa’s investment landscape is experiencing a period of remarkable growth and expansion, with four countries emerging as the dominant destinations for funding, according to a new report.
Kenya, Egypt, Nigeria, and South Africa collectively account for 68% of the continent’s total investment influx in 2023.
Kenya has taken the lead in terms of funding, attracting $806 million, followed by Egypt with $675 million, Nigeria at $575 million, and South Africa with $565 million.
These figures demonstrate the strong attractiveness of these countries for investors and their growing roles as regional hubs for international companies expanding across Africa.
The Africa Investment Report also highlights the increasing prominence of emerging markets in the African investment landscape.
Tunisia, Rwanda, and Ghana have emerged as hotspots for funding, with Tunisia securing over $460 million and Rwanda garnering $350 million.
This diversification of investment destinations reflects the continent’s growing attractiveness to investors seeking new opportunities.
Fintech remains the top sector attracting investment, accounting for 23% of total deals in 2023. Other burgeoning sectors such as health, education, and agriculture are also demonstrating significant growth, each with at least a 10% share of the investment pie.
Experts believe that African startups are increasingly focusing on B2B business models, particularly SaaS and commission-based models. They also anticipate that agritech and greentech startups will gain traction as they develop competitive and asset-light business models.
In addition, edtech startups offering upskilling and vocational retraining products, as well as startups in the creative industry, are expected to gain investor interest.
Nigeria leads in terms of deal volume, with over 250 deals recorded in 2023. Kenya follows closely behind with over 160 deals.
South Africa and Ghana, with 130 and 65 deals, respectively, also demonstrate a vibrant entrepreneurial environment, attracting investor interest.
While the ‘Big Four’ countries continue to dominate investment flows, the rise of emerging ecosystems suggests a future of balanced growth. Markets like Mauritius, Tanzania, and Uganda are carving their niches in the investment domain.
The Africa Investment Report 2023, published by Briter Bridges, provides a comprehensive overview of the African investment landscape.
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