African Tech Startup Funding to Double by 2025

World Mobile, a blockchain-based mobile network operator, new research shows that African tech startup funding will experience a surge.

During the research, African business leaders forecast an increase in funding for tech start-ups as foreign direct investment and improved internet connectivity has helped to position the continent as a global competition.

The independent digital research and marketing company, PureProfile, conducted the research.

They reportedly interviewed 100 senior executives at companies based in Angola, Botswana, Cameroon, Ethiopia, Ghana, Nigeria, South Africa, and Tanzania in April 2022, using an online survey methodology.

Findings on African Tech Startup Funding

The study focused on African business leaders from companies with total annual revenues of more than $6.75 billion has identified foreign direct investment and improving internet connectivity as the key drivers for the expansion of tech startups in Africa.

More than half (54%) of African senior executives predict that spending on tech start-ups on the continent will significantly double by 2025 to $10 billion or more.

This is compared with the $4.9 billion raised last year. Another 16% believe that more than $15 billion will be raised.

Around three-quarters (75%) of participants in the study believe the investment will come from Western countries while 66% believe China will be a major source of investment.

Six out of 10 (57%) believe dramatic improvements in internet connectivity will be the main support for expansion as it drives education, healthcare, and business.

Africa’s Race to Join Global Tech Giants

Research carried out among senior executives at companies with average annual revenues of $70 million based across Africa found nearly half (45%) think that Africa will be a tech superpower within 10 years.

This level of faith has all fingers pointing to the recent development of Africa’s tech ecosystem.

90% of those interviewed expect Africa’s tech ecosystem to grow by at least half its current size in the next three years with 15% expecting it to double in size during that period.

This will expand Africa’s role in supplying technology to the rest of the world. Most of the executives expect substantial growth in the next five years with one in 10 predicting dramatic expansion.

“Africa is seen as ripe for economic expansion by its own business leaders and technology will play a vital role in delivering the development,” says Micky Watkins, CEO of World Mobile.

“The potential is huge as currently Africa only accounts for 0.2% of the global money invested in technology start-ups so there is a capacity for growth and huge interest from Western and Chinese foreign direct investment.”

“Much of it hinges however on improving internet connectivity and particularly in areas which are hard to reach and ignored by traditional companies.

We are committed to playing our part in supporting the development of technology businesses throughout the continent,” Watkins adds.

Increased Internet Supply in Africa will Aid Growth

World Mobile is one of the many companies helping to revolutionize internet connectivity in sub-Saharan Africa.

The company is already working with the government in Zanzibar where it is launching a unique hybrid mobile network delivering connectivity supported by low-altitude platform balloons.

The mobile network balloons will be the first to officially launch in Africa for commercial use, offering a cheaper way to provide digital connection to people.

And it’s the first step in its mission to help bring nearly four billion people online before 2030 in line with the UN and World Bank’s SDGs.