On the global stage, Africa is positioning itself as an attractive continent for investment.
Recent years have shown that Africa can count on a rapidly growing network of startups. Although funding levels are not yet on par with other regions of the world, the continent's potential is real, boosted by the digitalization of various economic sectors.
Created by Cyril Collon and Tidjane Dème, Partech Africa is an investment fund dedicated to startups on the continent. Based in Dakar, this investment fund targets high-potential technology startups operating in sectors such as Fintech, online and mobile services, mobility, and the digitization of the informal economy.
In an annual report on the financing of African startups, venture capital fund Partech Africa praised the dynamism of the African continent and presented 2018 as a record year, revealing the growing appeal of African tech entrepreneurs and their ability to transform the continent.
However, according to its seventh annual report published on January 23, Partech Africa confirmed that 2023 had not been a good year for the African tech ecosystem. Indeed, the African continent appears to have been hit hard by a wave of recession, with only $3.5 billion raised, representing a 46% drop in funds compared to 2022. This was compounded by a 28% decline in transactions.
In the same report, Partech Africa notes the withdrawal of many foreign investors from the continent. How can this phenomenon be explained? In 2022, the world experienced a significant decline in venture capital investment, and Africa is facing this situation a year later.
Nevertheless, French-speaking Africa appears to be showing signs of dynamism, with an increase in the number of financing operations, driven by the presence of local investors who are more active than their American, European, and Asian counterparts.