According to a recent report by Disrupt Africa, about 146 African tech startups raised funding in excess of US$129 million in 2016.
The number of startups securing funding was also up by 16.8 per cent compared to the previous year although the overall amount of funding had declined.
South Africa, Nigeria and Kenya were the most popular destinations for tech investors in 2016, both in terms of numbers of deals and total amount of funding on the continent, accounting for 80.3 per cent of funds secured. Meanwhile, Egypt experienced over 100 per cent growth in fundraising, making it the fourth ranked destination.
Of the nine sectors analysed in the report, the fintech sector received the most backing in 2016, with startups in this space raising a combined US$31.4 million, 24 per cent of the overall total.
“2016 was another great year for African tech startups and investors. Our ecosystem progressed in leaps and bounds over the course of the year, which is evidenced by strong growth in the number of startups raising funding, and an encouraging expansion of ecosystem activity across the continent.” said Gabriella Mulligan, co-founder of Disrupt Africa.
“The African tech space has not been immune to the economic pressures faced by other sectors, but it is proving extremely resilient. The fact more startups raised funding in 2016 than ever before demonstrates the vitality of this sector, and we expect investor interest to grow and grow over the course of 2017,” said Tom Jackson, co-founder of Disrupt Africa.