The Journey Of African Startups

The journey of African startups

Africa’s startup ecosystem has been experiencing significant growth and attracting increasing attention from investors around the world. There are a lot of investment opportunities in African startups and SMEs that have become increasingly attractive to investors due to various factors.

Firstly, Africa is a continent with a young, growing population, an increasingly tech-savvy population and a rising middle class. As a result, the growing demand for goods and services creates numerous investment opportunities. Additionally, many African countries have implemented reforms that make it easier to do business, such as reducing bureaucratic red tape, lowering tax rates, and providing incentives for foreign investors.

And the potential of African businesses goes beyond just the continent due to the rise of digital technology and globalisation.

Specific industries and sectors have proven particularly attractive to investors. These include the tech industry, which has seen significant growth in recent years, as well as agriculture and renewable energy. In 2023, the funding activity peaked at over $400 Million, according to Startuplist.africa, with over 1200 startups in FinTech and Financial Services, 380 E-Commerce businesses, and nearly 300 healthcare startups.

If you’re curious about African startups in the spotlight right now, below are three examples.

Bumpa is a Nigerian startup that provides a mobile-based platform for retailers to manage and grow their businesses. Founded in 2018, the company has since raised $4.2 million in funding from investors.

Fleri is an Africa-focused insurtech startup that aims to address the issue of healthcare accessibility for African migrants living abroad and their families back home. Insurtech is a growing field globally, and especially in Africa. It applies technology to improve and streamline the insurance industry, often using digital platforms and apps to reach consumers directly. This can reduce costs, increase efficiency, and improve accessibility, especially for underserved populations.

Chaka is a Nigerian fintech startup making it easier for African businesses and individuals to invest in global financial markets. Chaka has already raised over $1.5 million in funding from notable investors.