TLDR:
- Africa attracted $5.4 billion in venture capital and debt in 2023.
- The global VC ecosystem saw a decline in deal value to $285 billion in 2023, compared to $690 billion in 2021.
AVCA – the African Private Capital Association released its 2023 Venture Capital in Africa Report, highlighting Africa’s increasing position as a region for venture capital activity. Despite global market headwinds, some trends in Africa’s VC ecosystem remained consistent, while others were disrupted.
The report noted that the number of VC deals in Africa decreased by 31% year-on-year to 545 in 2023, with investors prioritizing portfolio companies with an established track record over new ventures due to currency volatility and high inflation in the region.
It also highlighted the challenges faced by investors in a year of socio-political and economic upheaval, where the global VC market contracted significantly. The report provides essential insights into Africa’s innovative ecosystem, sub-regions, countries, and sectors attracting VC investments, showcasing the continent’s potential for growth and development.
