Africa’s investment landscape is shaping up to be a captivating story of growth and expansion, with Kenya, Egypt, Nigeria, and South Africa emerging as the top funding destinations.
According to the “Africa Investment Report 2023,” Kenya, Egypt, Nigeria, and South Africa would account for 68% of the continent’s total investment in 2023.
According to the research, these countries have continued to solidify their positions as the ‘Big Four’ destinations for funding in Africa.
This concentrated growth reflects these countries’ attraction to investors and their growing position as regional epicentres for foreign corporations aiming to expand across the continent.
The research provides a detailed geographical analysis of the investor influx, with Kenya leading at $806 million, Egypt at $675 million, Nigeria at $575 million, and South Africa following closely at $565 million.
Further analysis of the data revealed that emerging markets are also thriving, with Tunisia, Rwanda, and Ghana swiftly becoming fundraising hubs.
Tunisia, for example, received more than $460 million in finance, while Rwanda received $350 million, indicating a changing landscape that is enticing investors to new locations and opportunities.
Another intriguing finding from the report was that Fintech remains the largest sector, attracting significant investment and accounting for 23% of total transactions in 2023.
The report also highlighted other expanding industries, including health, education, and agriculture, which each received at least 10% of the investment pie.
Investment Analyst at Digital Africa, Yann Azandege, commented on the research, saying, “African entrepreneurs are increasingly focused on B2B business models, such as SaaS or commission-based models.
In terms of deal volume, Nigeria recorded over 250 transactions in 2023, exhibiting both quantity and variety of potential across many industries. Kenya recorded more than 160 deals, while South Africa and Ghana, with 130 and 65 deals respectively, mirror this view, demonstrating an environment brimming with entrepreneurial activity.
While the ‘Big Four’ continues to get a sizable portion of investment, the advent of developing ecosystems suggests a future of balanced growth. According to the survey, markets such as Mauritius, Tanzania, and Uganda are also carving out niches in the investment space.
A thorough summary of the African investment environment may be found in Briter Bridges’ Africa Investment Report 2023.
The continent’s vital industries have received cash infusions, paving the way for a new chapter in Africa’s economic climb, fueled by innovation, regional integration, and strategic collaborations.
