Africa

Austria, South Africa, Norway, Ireland and the Netherlands accounted for five of the 10 biggest transactions.

Non-African investors still participate in most deals in the region, but that share is falling.

Deal value for the sector surpassed last year’s halfway mark in just three months, rising almost 400% from the previous quarter.

About 70% of deal value in the region last year involved cross-border investment.

Capital invested in the region’s startups was up over 95% last year.

The market is reaching maturity as fund managers in the region become more established

Deals, exits and fundraising are set to drop in 2025, but policy changes like Ghana’s bold pension mandate signal a move towards supporting homegrown innovation.

VC dealmaking for African fintech startups has dropped significantly this year.

African venture capital activity has seen an improvement in the first three months of this year.

Market developments supported growth for PE activity in Middle East and Northern Africa.

VC dealmaking in the Middle East and Northern Africa region fell in 2023 from previous highs.

African private equity fundraising has been squeezed by global headwinds. But some smaller players are managing to break through.

Africa’s venture ecosystem has seen its second consecutive quarterly decline in deal count as the downturn arrives on the continent.

Despite defying the global venture downturn last year, the African VC market is expected to become more challenging as deal flow slows.

Investment in South Africa reached a peak in 2018. While dipping significantly in the following years, it has remained above $4 billion in annual deal value since. It hit $5.8 billion in 2021, according to PitchBook data.

As venture firms cast a wider net to find investment opportunities outside established markets, the burgeoning startup ecosystems in the Middle East and Africa are attracting great interest.

We spoke to investors operating in Europe, the Middle East and Northern Africa to get their 2023 market predictions.

African fintech is on track for another record year for VC investments, even as other markets struggle amid economic headwinds.