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Business News

Nigerian start-ups lead $334.5 million fund race in Africa

Nigerian start-ups lead other African businesses in investment attraction, Disrupt Africa revealed in a report that estimated 210 African start-ups secured $334.5 million worth of investments in 2018.

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Startup funding in Africa, Fintech, Disrupt Africa
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Nigerian start-ups led other African businesses in investment attraction, Disrupt Africa has revealed in a report that estimated 210 African start-ups secured $334.5 million worth of investments in 2018.

Disrupt Africa’s annual African Tech Startups Funding Report for 2018 disclosed that Nigeria was the most preferred choice for financial investment, as 58 local start-ups from various sectors raked in a combined $94,912,000 funding.

After years of playing second to South Africa, Nigeria emerged as Africa’s start-up funding hub.

Breakdown of Disrupt Africa Report

The report, which tracks the total amount of funding raised by African tech start-ups each year, found that 210 start-ups raised a total of $334,520,500 in 2018. This, according to the report, was a substantial leap from 2017.

The number of start-ups that raised funds grew by 32.1 per cent, and total funding jumped by an impressive 71.5 per cent. Behind Nigeria was South Africa, with 40 businesses raising $59,971,000. Kenya ranked third in terms of the number of start-ups that raised funds.

Investors seeking alternatives to Nigeria, others

But the influence of Nigeria, South Africa, and Kenya is gradually dwindling, with investors seeking fresh grounds to invest in. Other African countries outside the top three are now being considered a viable alternative in the start-up ecosystems.

This was shown in the drop in funding of Start-ups in Nigeria, South Africa, and Kenya. The report stated in 2015, South Africa, Nigeria and Kenya accounted for more than 80 per cent of total funding raised, in 2018 that fell to 61.8 per cent.

Much of this was attributable to the rise of Egypt as a destination for funding, with the country’s start-ups raising $58.9 million in 2018, clearly establishing Egypt as a leading start-up hub on the continent. Companies in 16 other African countries secured investment.

Most preferred sectors for funding

In the total funds raised by these start-up businesses, fintech accounted for 39.7 per cent of the fund, securing $132.75 million seed fund. While other sectors like edu-tech, e-commerce, e-health, transport, logistics and agri-tech startups also attracted funding from investors.

SSKOHN

Report analysis

The Co-founder of Disrupt Africa, Gabriella Mulligan analysed the tech report, stating it was an incredible year for tech entrepreneurs.

“It has been an incredible year for tech start-ups in Africa – and it’s a real pleasure to release this report and the impressive figures it contains. The continent’s entrepreneurs have grabbed the attention of investors, accelerators, and media both locally and globally this year with their innovative solutions and business models, and it’s great to be able to report on such strong results across our ecosystem.”

While another Co-founder, Disrupt Africa, Tom Jackson, said

“The African tech space continues on its upward trajectory, with more start-ups than ever before securing record levels of funding in 2018.”

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Business

Hyundai and Kia to set up an assembly plants in Ghana by 2022

The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.

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Hyundai to invest $87 billion into producing 44 new electric vehicles, Hyundai partners Kia to invest €100m in electric vehicles 
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Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.

Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.

READ: This is the New Tarrif Structure For Importing Tokunbo & Brand New Cars

Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.

The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”

READ: Toyota snubs Nigeria as it moves to establish assembly plants in Ghana, Ivory Coast 

Why this matters

More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.

Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.

SSKOHN

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Passports: Backlog of undelievered passports to be fixed before May 31st – Minister

The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.

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The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.

This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.

What the Minister said

“On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.

“But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.

READ: Canada invites 3,900 new PR candidates, introduces new programme to attract Nigerians

The new passport process

The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.

“When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.

What you should know 

  • Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
  • The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.

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