Africa’s Venture Funding to Hit $7 Billion in 2022
This year, Africa continues to be an outlier in the global investment landscape. The continent closed the first half of 2022 at $3.5 billion, a 133% increase from the first half of the previous year. If the continent continues to defy the global harsh microeconomics till the end of this year, it might end up closing the year at $7 billion, reveals a report by the African Private Equity and Venture Capital Association (AVCA), a pan-African organisation that promotes and enables private investment in Africa.
Last year, Africa recorded $5.2 billion in funding across 650 deals. Now, to reach the projected $7 billion, AVCA expects the deal volume to close at 900 by year-end, more than a third higher than last year. Considering the current harsh macroeconomics environment which caught up to the continent in the year’s third quarter and led to a 53% drop in funding, one might call the prediction a tall order. What magic could happen in the fourth quarter, anyways? But newly-found goodwill and incentives by governments across the continent is expected to rekindle investors’ interest in the continent. At the moment, according to Africa: The Big Deal, African funding has crossed the $4 billion mark.
Source: TechCabal (link opens in a new window)