By Daniel Essiet
International funding for tech startups in Nigeria and the rest of Africa rose to $1.4 billion between 2015 and 2019.
However, investment flow could dipped this year hit hard by the economic downturn caused by the coronavirus pandemic, projected to decline by up to 45per cent , according UNCTAD’s World Investment Report 2020.
The highest record of funding within the review period was last year of $491.6 million recorded by 311 companies across the African tech startup space.
Startup news and research portal Disrupt Africa, which tracks the total amount of funding raised by African tech startups each year, found the number of startups that secured investment increased by more than 50 per cent on 2018, while total funding grew 47 per cent.
Kenya and Nigeria were the lead markets in terms of total funding, securing $149 million and $122 million each in funding, though Egypt was the main market in terms of startup numbers, with 88 companies rising funding over the year.
In 2018, African tech startups smashed funding records as 210 startups secured $334.5 million worth of investment; with Nigeria emerging as the premier investment destination on the continent. A key finding of the report was the emergence of Nigeria as Africa’s startup funding hub, after years of playing second fiddle to South Africa. With 58 startups raising a total of $94,912,000 in investment, the country was clearly top dog; while South Africa fell behind with 40 businesses raising $59,971,000.
The Disrupt Africa Tech Startups Funding Report 2017 found that 159 startups in Africa secure funds more than $195billion. The growing rate increased to and the funds went up 51per cent on 2016 investments.
Also South Africa, Nigeria and Kenya remained the top three investment destinations for the third year running.
146 African tech startups rose funding in excess of $129 million in 2016, with the number of startups securing funding up by 16.8 per cent compared to the previous year. South Africa, Nigeria and Kenya remained the three most popular investment destinations on the continent, accounting for 80.3 per cent of funds secured.
In 2015, a total of 125 African tech startups attracted $185-million in funding, according to Disrupt Africa report.