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. Driven by the digital boom, promising startups are multiplying and beginning to attract investors. From agriculture to e-health and education, the continent's entrepreneurial and technological news was very rich in 2018 and bodes well for 2019.
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According to a recent report published by Global Tech Media Weetracker (a tech media outlet dedicated to analyzing and reporting on the African startup ecosystem), startups on the continent raised $725.6 million in 2018.
A total of 458 startups benefited from investments on the continent, led by South Africa, Kenya, and Nigeria, which accounted for 80% of the total amount of funds raised in 2018. Fintech remains the sector most affected by these investments.
The vast potential of these rapidly developing startups is supported by numerous initiatives. Incubators, international events, investment funds… initiatives are multiplying despite the lack of funding, which remains the main obstacle to innovation.
In this spirit, the startup Andela, dedicated to training developers on the continent, announced that it had raised $100 million for its development. Based in Rwanda, Kenya, and Uganda, the startup is dedicated to training developers on the continent and connecting them with international companies. Andela thus aims to play a major role in the development of technological and digital ecosystems in Africa. The funds were raised from a consortium of investors. Thanks to this fundraising led by London-based private equity firm Generation Investment Management and a consortium of investors, the startup hopes to accelerate the development of its technology platform and expand its presence on the continent.
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Although Fintech remains the top sector in terms of investment in 2018, digital technology and startups are powerful levers in the healthcare field. Startups have entered the medical sector by introducing new practices into everyday use thanks to the development of new technologies. They are using digital technology as a weapon to combat medical deserts.
At the next VivaTech trade show, to be held May 16-18, the Sanofi group announced its intention to support creativity and innovation in healthcare by launching three challenges for participating African startups. These startups will compete to find innovative solutions to transform the healthcare ecosystem in African countries. The winners will then receive support from Sanofi to bring their projects to fruition. The call for projects is open to all, and the selected startups will be invited to present their projects at Afric@Tech, the pavilion dedicated to Africa at the Viva Technology trade show.
Read: Vivatech 2018: Africa at the heart of this third edition