TLDR:
The ICT sector in Southern Africa emerged as the top industry in the latest Venture Capital Industry Survey for the region. Despite a decrease in the overall value of VC deals in 2022, the ICT sector continued to attract investor interest and confidence.
Article Summary:
The Southern Africa Venture Capital Industry Survey highlighted key insights about the ICT sector in the region:
- Despite a 14.5% contraction in VC deals in 2022, the ICT sector maintained its position as a top performer.
- South Africa’s ICT sector represented the largest combined sector by number of deals in 2022, with a focus on sub-sectors like FinTech, Software, and Telecoms.
The survey results emphasized the role of venture capital in supporting high-growth, early-stage businesses in Southern Africa. The ICT sector, in particular, showcased potential for innovation, social development, and global competitiveness. Fund managers and institutional investors highlighted the sector’s ability to leverage technology for addressing societal challenges and driving economic growth.
Industry experts at the SAVCA VC Industry Survey launch event discussed the importance of balancing financial returns with social impact. They underscored the need to invest in local businesses for sustainable growth, mentorship, and community development. The survey findings also indicated a positive trend of follow-on funding into existing portfolios, signaling optimism for early-stage investments in the upcoming year.
Overall, the survey and subsequent conference highlighted the pivotal role of the ICT sector in shaping Southern Africa’s economic landscape, fostering innovation, and attracting investment opportunities.
