Africa will soon be a continent of milk and unicorns, thanks to the seeds that have been sowed. We observe a substantial rise in investment into Africa every year.
In retrospect, African startups raised $400 million in 2015; contrast this with the $2 billion invested in the continent in 2019. Despite Covid-19, African startups raised over $1 billion in funding in 2020.
Interestingly, among the various sectors in the tech space, Fintech in Africa has proven to be a goldmine and has become a “juicy favorite” for investors across the continent, as evidenced by the sector’s impressive growth. Fintech investment soared to 18 percent in 2017, 34.9 percent in 2018, but fell to 32.8 percent in 2019. Despite the pandemic in 2020, the sector had a positive year and amazingly Nigeria has a 37% lead than other countries.
Africa’s economies have gotten more digital in recent years, presenting a possibility for more unicorn businesses to emerge, which would be a big success for the continent and the tech industry. Following the thread, headline funding has resulted in massive investment in fintech firms, resulting in the unicornization of African fintech as the sector continues to set records and demonstrate its potential to angel investors.
With investors spending heavily on fintech, Africa currently has six unicorns, with chipper cash being the most recent addition, compared to India’s 100 unicorns. While this figure may appear modest and unimportant, it properly reflects Africa’s rapid growth.
