Kenya, South Africa attract investors

No fewer than 27 Kenya’s firms attracted a
total $147 million from international investors in 2017, making the
country a frontline in sub-Saharan Africa.

 

The country was only surpassed by South Africa, which received $167.9 billion for its 42 start-ups.

 

The latest report on mobile economy in
sub-Saharan Africa by Groupe Spéciale Mobile Association (GSMA) said
there were 355 active tech hubs across sub-Saharan Africa and nearly
half of them are in four countries — South Africa,
Kenya, Ghana and Nigeria.

 

 “Kenya, Nigeria and South
Africa remained the most popular investment destinations, accounting for
76 per cent of total funds raised by start-ups in the region,” the
report stated.

 Kenya, South Africa attract investors

 

 

No fewer than 27 Kenya’s firms attracted a
total $147 million from international investors in 2017, making the
country a frontline in sub-Saharan Africa.

 

The country was only surpassed by South Africa, which received $167.9 billion for its 42 start-ups.

 

The latest report on mobile economy in
sub-Saharan Africa by Groupe Spéciale Mobile Association (GSMA) said
there were 355 active tech hubs across sub-Saharan Africa and nearly
half of them are in four countries — South Africa,
Kenya, Ghana and Nigeria.

 

 “Kenya, Nigeria and South
Africa remained the most popular investment destinations, accounting for
76 per cent of total funds raised by start-ups in the region,” the
report stated.

 

However, the report said there was a
downward trend in the combined share of investments for the three
markets, from more than 80 per cent in 2015 and 2016, which shows
growing investor appetite for other markets particularly
Ghana, Rwanda, Senegal and Uganda.

 

This year has already seen a number of
high-profile funding, including a Sh350 million ($3.5 million)
investment in a Nairobi-based customer feedback platform mSurvey to fund
its expansion into Nigeria and South Africa.

 

Also, local mobile solutions start-up
Africa’s Talking raised Sh860 million ($8.6 million) through a series A
funding, led by the International Finance Corporation (IFC), alongside
Orange Digital Ventures and Social Capital.

 

Last year, 124 tech start-ups across
Africa raised a total of $560 million (Sh56 billion), a 53 per cent
increase over the previous year.

 

Of this, sub-Saharan Africa accounted for about $515 million (Sh51.5 billion) in more than 100 deals.

 

The report said the range of tech
start-ups funded as well as the growing size of deals reflect the
accelerating development of the ecosystem.

 

However, the report said there was a
downward trend in the combined share of investments for the three
markets, from more than 80 per cent in 2015 and 2016, which shows
growing investor appetite for other markets particularly
Ghana, Rwanda, Senegal and Uganda.

 

This year has already seen a number of
high-profile funding, including a Sh350 million ($3.5 million)
investment in a Nairobi-based customer feedback platform mSurvey to fund
its expansion into Nigeria and South Africa.

 

Also, local mobile solutions start-up
Africa’s Talking raised Sh860 million ($8.6 million) through a series A
funding, led by the International Finance Corporation (IFC), alongside
Orange Digital Ventures and Social Capital.

 

Last year, 124 tech start-ups across
Africa raised a total of $560 million (Sh56 billion), a 53 per cent
increase over the previous year.

 

Of this, sub-Saharan Africa accounted for about $515 million (Sh51.5 billion) in more than 100 deals.

 

The report said the range of tech
start-ups funded as well as the growing size of deals reflect the
accelerating development of the ecosystem.