Nigeria, Egypt, South Africa are premier investment destinations in Africa

The vibrant African startup market is well-placed to become a cornerstone of the continent’s digital economy, supporting local innovation through relevant solutions to societal challenges.

According to research firm Africa: The Big Deal, funding for startups in Africa more than doubled to $3.14 billion in the first six months of 2022. Nigeria, Egypt, South Africa and Kenya are the premier investment destinations on the continent, though funding is also on the rise elsewhere, while Fintech remains the dominant sector.

These were the words of Startups Lead, Africa Transformation Office, Microsoft, Gerald Maithya, while speaking to media men.

According to him, investments into Africa’s startup ecosystem are growing at an exciting pace, adding that while the potential is massive for Africa to become a leader on the world stage, the African startup market represents less than one per cent of global venture funding.

He said: “At Microsoft, we firmly believe that one company on its own cannot create the impact needed – it takes a network of companies and organisations collaborating to build consumer and customer solutions appropriate for the market.”

According to him, startups need not only the technology to sustainably succeed, but the right operations, the right blueprint for their people’s requirements, and the right kind of business architecture.

He said the ecosystem must address these concerns holistically for startups to manage the growth phase of their business.