This week, the Global Entrepreneurship Network (GEN) published the 2023 Global Startup Ecosystem Report (GSER). Founded by J.F. Gauthier, founder and CEO of Startup Genome, the GSER embodies data-driven primary research on startup and ecosystem success factors. Innovators and policy leaders depend on objective data and specialist insights.
Some of the insights from GSER 2023 in Africa include:
- There were two African unicorns in 2022: Yassir from Algeria and Sun King from Nairobi
- Fintech startups in sub-Saharan Africa continue to thrive as payment solutions as they accounted for over 41% of series A deals
- Sub-Saharan Africa increased 227% in early-stage funding amount and 43.8% in early-stage deal count from 2018 to 2022, highlighting the rapid development of the region’s tech startup scene.
- Angolan Startups have a thing for bootstrapping
While some entrepreneurs in Angola have received funding from angel investors and venture capital firms, the majority have succeeded through bootstrapping.
However, support groups have been crucial in aiding entrepreneurs in generating income and growing their enterprises. Successful local startups offering traditional handmade goods from Angola include Soba store, Socia, and BayQi.
The report notes that while Angola’s startup environment is still developing, it has a lot of potential. The ecosystem is expanding, getting attention from around the world, and it has the potential to make a huge impact on the African tech sector.
According to the Global Startup Ecosystem Report, Ghana is currently one of the most alluring locations in Africa for foreign investors because of its robust, stable democracy. Several ministries and headquarters are located in Accra. Out of 16 West African nations, Ghana is the most appealing market for trade and investment, according to the Fitch Solution Operational Risk Index.
Accra is a magnet for digital nomads and one of West Africa’s fastest-growing tech hubs. With assistance from the World Bank, which has allocated $200 million to broaden access to technology and foster digital innovation, the government of Ghana will start the Ghan Digital Acceleration in 2023.
Lagos maintained its position in the Emerging Ecosystems ranking between positions 51 and 60. The largest deal in the area was OPay’s $400 million Series C in August 2021, while Flutterwave’s $250 million Series D in February 2022 increased its worth to almost $3 billion.
With the help of a 23% increase in ecosystem value, a 26% increase in the number of early-stage deals, and 22 new life sciences disciplines, Cape Town has made its maiden appearance among the top 100 emerging ecosystems in the 91-100 category.
Between 2018 and 2022, the number of early-stage deals and the amount of early-stage capital raised in Sub-Saharan Africa both climbed by 43.8% and 227%, respectively, underscoring the region’s burgeoning digital startup sector.
