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African Tech Startups Have Record Investment Year In 2019

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African tech startups had the "best year yet" in investments in 2019, as 311 companies received $491.6 million in funding, according to the African Tech Startups Funding Report 2019.

Total funding grew 47% over 2018's figures, while the number of startups grew by more than 50%, according to the annual report by news and research portal Disrupt Africa.

Now in its fifth year, the report found that 2019 was "a record year for funding," as the number of investors increased by 61% to 261.

The fintech sector remained the most popular among investors, says Disrupt Africa co-founder Tom Jackson, with 77 fintech startups raising a $107 million. Interestingly, fintech’s share of total funding fell to 21.8% from 39.7% other sectors – notably logistics, transport, e-commerce, agri-tech and e-health – enjoyed bumper years.

Kenya and Nigeria remained the lead markets in terms of total funding, securing $149 million and $122 million respectively. Egypt, with 88 companies raising funds, was the had the most startups; pushing South Africa out of third spot for investment and startup numbers.

"With investors increasingly looking beyond the established hubs of South Africa, Nigeria and Kenya for opportunities, the continued development of the Egyptian tech space is a key trend, while Disrupt Africa also tracked investment in an additional 15 African countries," Jackson says.

“Investment in the African tech space continues to grow and grow, and at the current rate of development it won’t be too long before we are talking about it breaching the US$1 billion mark. Beyond the headline numbers, however, it is exciting to see the growth in particular markets and verticals as investors diversify and expand their interests on the continent,” he adds.

The African Tech Startups Funding Report shows the "ecosystem has developed in leaps and bounds," says Gabriella Mulligan, co-founder of Disrupt Africa. "Yet is still in the early stages of an incredible growth story powered by the innovation and tenacity of African entrepreneurs, and the confidence and support of the continent's investors."

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