BUSINESS

Top African Investment Deals Surpass 480 In 2021, $4.9bn In Value

 

Nigeria attained the number one spot on the list of African countries that had the highest number of deals across the continent as total investment deals – including undisclosed and unannounced deals – in the continent surpassed 480.

This is according to African Investment Report by Briter Bridges. South Africa emerged second on the list while Kenya and Egypt respectively followed in the third and fourth positions, with Egypt having one of the highest concentrations of African investors VS the ones overseas.

In value terms, the report found that the total estimated funding was $4.9 billion comprising $4.65 billion unannounced disclosed funding and $300 million undisclosed deals based on acclaimed data made available by investors.

Highlights of the report

Fintechs continue to account for the largest shares of funding on the continent, capturing almost two-thirds of the total funding in technology companies operating across Africa.
The report found that 62% of the total funding goes to fintechs while health & biotech and logistics were next in line with respective 8% and 7% coverage.

Y2021 saw 2 times growth in total volume since 2000 and 25% growth in announced deals recorded as top 20 deals worth $3 billion while 480 deals value $1.6 billion and 450 deals were valued at less than $1 billion.

Most funded products came from payments, solar home kits, assets financing, Point of Sales, banking amongst others while top trending products by volume cuts across payment, transfers, banking, medical delivery, B2B commerce, professional skill development amongst others.
The year also saw a spike in deals between $500 thousand and $5 million, indicating a strongly growing number of resources allocated to companies in stages equivalent to seed and series A; this, according to the report, may be linked to the renewed optimism since the start of covid-19 and the high early-stage activities of 2020.What you should know

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As the world learns to integrate Covid-19 into daily routines, work is retrieving and the interest in harnessing the business potential in Africa proves to be stronger and more intentional than it has been in the past.

After a gradual increase in the number of deals over the past few years, the year 2021 saw the highest number of single, non-M$A deals above $100 million. These investment sizes carry significant weight and act as a pull factor for several investors.

In 2021, there were newly available resources and increasing international investors shifting mandates to include Africa to support the promising entrepreneurs.

Despite capturing a relatively limited share of the overall economy, Africa’s startup ecosystem boasts of the ability to work as a catalyst for investment appetite whilst also attracting novel names.

 

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