FEBRUARY 06, 2023
3 min Read
Investors update: February 6 2023
VC funding in Africa surged by 55% to $3.3bn in 2022
- Investment in Africa’s tech startup ecosystem passed the $3 billion mark for the first time in 2022, with the space withstanding global economic headwinds to post a record year.
- This is according to the annual African Tech Startups Funding Report released by startup news and research portal Disrupt Africa.
- Though Nigeria and the rest of the “big four” remain clear leaders, there is still plenty of activity elsewhere on the continent, with startups backed in 27 African countries.
Source: Disrupt Africa
While the $3 billion figure falls short of other estimates of 2022 VC funding in Africa, the Disrupt Africa report tells the same story—one of an impressive 2022 in which African startups raised more funding than ever before, in spite of a global downturn in investments, especially in riskier asset classes such as venture capital. Per the report, up to 633 startups raised a combined $3.3 billion in 2022, an incredible 55.1% annual growth, while the number of funded startups increased by 12.2% on 564 in 2021.
Nigerian equities exchange records 2.95% weekly gain
- The Nigerian equities market closed bullish during the week ended February 3rd, as the All-Share Index appreciated by 2.95%.
- The ASI appreciated from 52,657.88 points to close the week at 54,213.09 index points, while the market capitalization followed suit to close at around N30 trillion ($65 billion).
- That brought the month-to-date performance of the stock market to 1.83% and a year-to-date gain of 5.78%.
General sentiments regarding the Nigerian market are that the Exchange is being driven by investor interest to increase capital gains, on the back of low prices of stocks in the buildup to the 2023 general elections. In terms of top performers by sector last week, the five tier-1 Nigerian banks led by FBNH, otherwise known as FUGAZ, enjoyed positive market sentiments. Their market capitalization appreciated by 2.30% to close at N2.58 trillion, with investors gaining a total of N57.8 billion.
Oikocredit partners with MyCredit to fund SMEs in Kenya
- Social impact investor Oikocredit approved a loan facility of $2.6 million to MyCredit, a non-bank financial institution based in Nairobi, Kenya.
- Through this partnership, MyCredit plans to support businesses and local communities to achieve greater financial freedom through tailor-made loans to small and medium enterprises (SMEs), professionals, and civil servants.
- The secured funding will support MyCredit’s strategic plan to offer affordable and medium-term financing of up to three years to its SME customers in trading businesses.
Access to credit remains out of reach of many Africans and is a significant barrier to the growth of many small businesses. The continent has an estimated trade finance gap of $81 billion. It’s also a problem investors are particularly keen to address as they get attractive returns as evident in MyCredit’s fundraising. The startup claims to have disbursed 15,500 loans to customers across Kenya with a total value of KES 6.08 billion (~$48 million) in the last six years.