TLDR:
- Africa is seeing a shift towards green investment with almost half of all venture-capital activity focusing on green deals
- Venture-capital funding in Africa has shown some resilience despite a global slowdown, with total deal value reaching $4.5bn in 2023
Over the past few years, Africa has experienced a slowdown in venture-capital funding globally, but has remained relatively resilient compared to other regions. Green deals now represent almost half of all venture-capital activity in the continent, signaling a move towards sustainable investment practices. Despite challenges such as steep currency devaluations and high inflation in some countries, the startup ecosystem in Africa is adapting to the changing environment.
Startup founders are being forced to make tough decisions to improve efficiency, such as consolidating with rivals and cutting costs to reach profitability targets faster. This agility has been reflected in recent figures for funds raised by startups, with July 2024 being the best month in over a year. While the environment remains challenging, there is optimism for the future of green investment in Africa.
