Technology Firms in Sub-saharan Africa recorded over $1.19 billion from a total of 454 deals last year, 2018. In a new report released by Digest Africa INDEX, the estimated figure could have been higher if details of all deals were made public.
According to the 2019 report, the financial details of 103 deals, which makes up 22.7 per cent of the total deals in 2018, were not disclosed by companies involved – listed among such companies are Jumia and M-Kopa.
Analysis of secured deals
Technology companies in Sub-saharan Africa raised $686.4 million in funding across 336 disclosed funding deals of the 415 recorded. The East African region recorded the highest deals with $303.9 million which translated into 44.2% of the total funding raised. Kenya firms lead the charge with 22.8% ($156.5M) of the total funding raised, while 92 deals representing $276.7 million went to the financial services sector which reportedly recorded the highest amount of funding raised on the continent.
The Digest Africa INDEX also reported that;
“The financial services sector contributed 40.3% to the total funding raised across the continent in 2018.
There were 39 M&A deals recorded in Africa’s technology space though only seven (7) of these were disclosed.
South Africa registered the highest number of deals with twenty-four (24) and six (6) of the deals whose amounts were disclosed also came from the country.
Compuscan, which Experian acquired for $263 million, and WeBuyCars that was acquired by Naspers for $94 million – through OLX Group – recorded the highest M&A deal values”. the report stated
Most Active and largest investment
The most active investor in funding in Sub-saharan Africa last year was the European Investment Bank (EIB). The company participated in five investments which involve Partech Africa Fund managed by Partech Ventures ($70M), Novastar II managed by Novastar Ventures ($72.5M), Tide Africa Fund managed by TLcom Capital ($40M), Sawari Ventures North Africa Fund I managed by Sawari Ventures ($35M) and Africa Tech Ventures ($10M).
While the largest fundraising and commitment recorded in the year under review involved Naspers’ $314 million South Africa-focused fund. Meanwhile, 69.8 per cent of the funds raised were early stage focused and 47.7 per cent of them were sector agnostic.
The purpose of the report
The Digest Africa Index focuses on funding, merger and acquisition (M&A) deals between companies and investors. The report also highlights key trends, opportunities, and challenges in Africa’s technology landscape.
Digest Africa Index profile
Digest Africa is a data and information media company that leverages on research, data analytics and technology to educate individuals about Africa’s emerging technology startup ecosystem. The Ugandan-based company was co-founded by Peter Kisadha Malinz who acts as the company CEO, Kenneth Legesi; Head Of Research, and Mugenyi Henry; CTO.