Egypt has emerged as Africa’s dominant force in the technology sector, surpassing Nigeria to secure the highest funding for tech startups from June 2022 to June 2023.

This shift in investment trends is indicative of venture capitalists and private equity firms applying caution due to global economic volatility and inflationary pressures. Investors are now demanding more from founders and tech companies before committing to funding their ideas.

Egyptian tech startups have raised a total of $540 million from June 2022 to July 2023, surpassing the $710 million raised in the previous year. Despite a decline of 25 percent in funding, Egypt remains the only country to achieve the $500 million mark during this period. The relatively smaller contraction demonstrates Egypt’s resilience and attractiveness to investors amidst the funding winter.

Nigeria, previously the leader in tech startup funding, experienced a significant decline. Funding contracted by 77 percent, with a decrease from $2 billion to $470 million year-on-year.

Source: Seo9ja