Investors update: January 3 2023 - Private equity funding surged in Africa last year

Private equity funding surged in Africa last year

Highlights

• More than $7.2 billion was raised in private equity funding on the continent through the first three quarters of 2022, almost completely surpassing 2021’s numbers. 
• This is according to data from the African Private Equity and Venture Capital Association (AVCA). In the first six months of the year, the number of VC operations exploded, with a total of 338 deals against just 195 over the same period 12 months prior.
• Though 2022’s fourth quarter numbers have not yet been released, last year is likely to be one of the best in the history of African private equity.

Source: The Africa Report

Our Takeaway

Africa is a diverse investment destination with significant potential opportunities in private markets, real assets, and public markets and by the figures, investor interest skyrocketed in the former last year despite significant macroeconomic headwinds globally. Over the long term, these funds targeting investments into private African companies stand to benefit from the continent’s economic emergence, demographic changes, and the expansion of the private sector.

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Africa blockchain incubation program launches

Highlights

• The Africa blockchain incubation program, which aims to foster and support the continent’s upcoming generation of blockchain pioneers, has opened for applications.
• This four-month intensive program was created to assist participants in creating and launching blockchain projects.
• Selected participants will receive instruction, coaching, and tools to support the realization of their ideas as well as get access to a network of mentors and blockchain experts.

Source: Nairametrics

Our Takeaway

In Africa, the emerging blockchain technology is being used in many innovative ways and in essential industries from tech, agriculture, mining, and remittances to inclusion, identity, and property, to name a few. But there’s a huge gap in funding. Africa is the fastest-adopting crypto continent globally, yet it has only a 0.5% share of the total $25.2 billion global blockchain venture funding. As the continent catches up in terms of funding such technological projects, incubators can help to bridge this gap by providing crucial access to capital and mentorship to startups.

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Tunis startup Millesima Technologies secures $480,000

Highlights

• Millesima Technologies, a Tunisian startup specializing in data technology, streaming video, and video-on-demand (VOD) has announced a 1.5 million dinars ($480,000) fundraise.
• The funds, raised from BH Equity, the VC arm of BH BANK, and from a private company, will contribute to the launch of the MYVIOO platform.
• The platform will allow companies and organizations to have one or more VOD channels (videos on demand) and live streaming that is 100% customizable and private.

Source: Wamda

Our Takeaway

Video was estimated to account for more than 82% of all internet traffic worldwide in 2022 and Millesima is looking to tap into this booming market in the Middle East and North Africa (MENA) region. In addition, Africa is increasingly becoming an important growth area for streaming services. Digital TV Research, an analytics firm, estimates that the region’s video-on-demand subscribers will reach 15 million by 2026; that sets the tone for intense competition for viewership among streaming giants and other commercial firms.