TLDR:
Key Points:
- ICT sector in Southern Africa remains attractive to investors despite economic challenges.
- 2023 Venture Capital Industry Survey by SAVCA highlights the resilience of the ICT sector.
The latest Southern Africa Venture Capital Industry Survey conducted by The Southern African Venture Capital and Private Equity Association (SAVCA) revealed that the information and communication technology (ICT) sector in South Africa remains a top performer despite a low-growth economy and high unemployment rates. The survey, led by SAVCA CEO, Tshepiso Kobile, emphasized that although there was a 14.5% decrease in the value of VC deals in 2022, the ICT sector continued to attract significant investor interest and confidence.
Kobile highlighted that the ICT sector accounted for the largest number of deals and active deals in portfolios in 2022, showcasing the sector’s dominance in the Southern African venture capital landscape. Major sub-sectors within ICT, such as FinTech, Software, and Telecoms, also saw notable investments, reflecting the industry’s adaptability and innovation.
The survey also pointed out the emergence of ICT EdTech investments, signaling a shift towards technology-driven solutions in education. Kobile stressed that the ICT sector not only presents commercial opportunities but also contributes to social development through initiatives like e-learning and information accessibility.
During the survey launch event and panel discussions, experts like Kabelo Themane from Edge Growth highlighted the importance of balancing financial returns with social impact in VC investments. The survey revealed a positive outlook for early-stage investments in the region, with a focus on new deals and follow-on funding into existing portfolios, indicating a growing interest and commitment to nurturing entrepreneurial growth in Southern Africa.
Overall, the survey underscored the pivotal role of the ICT sector in driving innovation, economic growth, and social impact in Southern Africa. As the region continues to navigate economic challenges, investments in technology-driven solutions are poised to play a significant role in shaping the future of the venture capital industry and the broader economy.
