Entrepreneurial Finance in Africa: An In Depth Look

It may seem surprising, but Africa is becoming a global focal point for entrepreneurial finance. The numbers, although small in scale, are staggering in terms of growth. Despite the pandemic, in 2021, African startups raised $5.2 billion in equity funding versus $1.43 billion in 2020—a 264% increase.

By 2025, venture capital investment in Africa is projected to exceed $10 billion. Why? Part of the increasing attractiveness of Africa as a destination for startup capital is the relative youth of its population and the consequent dynamism of its consumer markets. Investors are aware that the median age in Africa is only 19.7 versus 38.3 in America and 43.9 in Europe. The lifetime value of young populations is great as they are far more predisposed to buy the new products made by entrepreneurs.

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