If you are a start-up operating in Africa, the common perception would be that the global pandemic of the past three years would have been a disaster for your business. Investment throughout Africa in 2019 was just $ 20 million.

However, the pandemic has seen the adoption of online services by many customers. Those customers who previously would not have taken these options, now not only have considered applying them in their business strategy, but by choosing to evolve, they have risen dramatically. It is estimated that the lack of legacy issues in Africa has seen a quantum leap of up to 10 years in some sectors. Fintech, Regtech, Agritech, and consumer-focused services covering everything from online food delivery to transport on demand have soared, and investment has followed.

In the past two years, over $ 6 billion has flowed into African start-ups with $ 3 billion reported in 2021. The best part about these statistics is that the numbers keep growing. Single Investments of $ 100 million and above are commonplace, and several African businesses are now regarded as “Unicorns” with valuation of $ 1 billion and above.

Corruption, famine, and unrest are still common misconceptions about Africa. We need to acknowledge that these still represent a structural problem for Africa. We only have to look at the events in Ethiopia to understand how quickly a story of economic hope can unravel.

However, reported stories about the demographics of Africa are driving force for investments. The ability to target a growing, young population with legacy issues will continue to attract more investments throughout Africa.

● 77 % of Africa’s Population is under 35
● By 2025, 100 African cities will have 1 million residents
● By 2050, the urban population is expected to triple

The lack of legacy issues, especially in telecommunication has connected consumers throughout Africa to mobile networks and the ability to access products quickly.

Ghana has seen an increase in mobile wallet adoption grow from 350,000 to 14.7 million in just ten years. This trust by consumers in mobile technology has allowed businesses to scale rapidly, and penetrate new markets. Statistics also show that as of January 2022, 38.9 percent of the population aged 15 years and older had a mobile money account in Ghana.

2023 looks to be another record year for investment, as global businesses position themselves to take advantage of the many opportunities Africa has to offer.