Nigeria, Kenya and South Africa have attracted a total of 613 venture capital deals valued at $3.9 billion during the between period 2014 and 2019, media reports said. A new report was published by the Africa Private Equity and Venture Capital Association to drive venture capital investments on the continent.
VCA’s board Chair Tokunboh Ishmael, told the media, “Africa’s VC industry continues to grow from strength to strength and we expect 2020 to be another strong year despite global macroeconomic headwinds. The continent’s VC ecosystem showcases the best of African innovation and entrepreneurship, which has the potential to be a key source of solutions to Africa’s intractable problems and a gamechanger for the continent’s development trajectory. AVCA remains committed to supporting the VC industry by charting its growth and providing authoritative research on the asset’s fundraising, deal, and exit activities.”
It is reported that 21 percent of venture capital deals were achieved by African-owned companies established outside the continent. However, most of these companies have provided services to African consumers.
More specifically, fintech and information technology sectors have received a significant number of venture capital deals. This accounted for 19 percent of the total volume of venture capital deals. That said, consumer discretionary and industries accounted for 18 percent and 12 percent of the deals, while healthcare, communications and consumer staples collectively accounted for 19 percent of the deals in the last 6 years.