Kenya has now had more capital from investors in Africa in the 1st and 2nd quarters of this year. Kenya got $520 million from investors. Egypt, South Africa, Rwanda and Nigeria got $510 million, $400 million dollars, $280 million and $280 million respectively making them the top five African nations.
However, Nigeria is ahead in Africa with regards to number of transactions totaling 101 despite the 5th position. Transactions from the other African nations are as follows: Kenya had about 80 deals, South Africa had 60 deals, Ghana had 35 deals, and Egypt with 15 deals in the first half of the year.
I has been difficult for many startups to get the required funding in the first half of 2023. This challenge was noticeable based on the fact the continent’s start capital was about $1.5 billion in the 3rd and 4th quarters of 2022 and about $1.8 billion in the 1st and 2nd quarters of 2022. Only $1 billion was the startup capital raised in the 1st and 2nd quarter of this year.
Some startups had to close down because capital raised could not achieve their set goals. Some had to be coerced into devaluing their business and reducing their staff strength. Additionally, funding in the continent’s startups exceeded a surprising milestone of the 20-billion-dollar mark in 15 years.