Africa’s fast-growing tech landscape is attracting substantial investment, driven by dynamic start-ups that are reshaping industries and opening up new opportunities. Youth demographics and digital connectivity are driving this growth.
From fintech companies promoting financial inclusion to agri-tech companies improving food security, the impact of these startups is profound. Here’s a look at the ten most funded technology sectors:
1. Fintech (31.5%):
Continuing to dominate Africa’s market, fintech experiences robust growth due to increasing demand for digital financial services. Mobile money solutions, in particular, cater to millions of unbanked Africans by offering more accessible and portable financial services compared to traditional banking, which is often encumbered by paperwork and account maintenance requirements.
2. E-commerce and Retail Tech (11.3%):
E-commerce flourishes as internet penetration rises, with consumer behavior shifting online. Platforms like Jumia have paved the way for millions of consumers across the continent. Retail tech leverages social commerce, logistics optimization, and direct-to-consumer models to meet the rising demand for convenient shopping experiences.
3. E-health (10.1%):
Addressing inadequate healthcare infrastructure, e-health startups facilitate telehealth services, reducing barriers to medical advice. Platforms like Helium Health digitize patient records, while increased smartphone usage enables virtual care, enhancing healthcare accessibility even in remote areas.
4. Logistics (6.9%):
Innovating to streamline supply chains amid fragmented infrastructure, logistics startups like Kobo360 offer on-demand services, aiding efficient goods transportation. Drone deliveries gain traction in Rwanda and Ghana, showcasing innovative solutions to delivery challenges in challenging terrains.
5. Agri-tech (5.9%):
Crucial for enhancing productivity in a sector employing over 50% of Africa’s workforce, agri-tech startups like Twiga Foods connect farmers directly to markets through mobile apps. AI predicts crop diseases and optimizes farming practices, addressing food security challenges.
6. Ed-tech (5.7%):
Filling resource gaps in Africa’s education system, ed-tech platforms offer courses and vocational training. Eneza Education in Kenya provides curriculum-aligned learning via SMS, while other startups focus on expanding coding and technical skills training.
7. Energy (4.9%):
Off-grid and renewable energy solutions are imperative with only 43% of the population having reliable electricity access. Startups like M-KOPA offer pay-as-you-go solar home systems, while microgrids power communities, bridging the energy access gap sustainably.
8. Transport (3.9%):
Addressing traffic congestion in urban areas, transport startups provide mobility solutions. Ride-hailing services like Bolt are popular, and electric vehicle infrastructure development is underway to promote sustainable transportation.
9. Recruitment and HR (3%):
Streamlining talent searches, recruitment startups digitize hiring processes and leverage AI for candidate matching. Companies like Shortlist in Kenya enhance employer-candidate alignment, improving efficiency in talent acquisition.
10. AI (2%):
Although relatively small, the AI sector sees growth as startups leverage machine learning for various applications. DataProphet in South Africa optimizes manufacturing processes using AI, while natural language processing for African languages promises further transformation in agriculture, healthcare, and education.
Source: Techcabal