African tech ecosystem - Afrikan Heroes

African Tech Ecosystem Leaders Pledge to ‘Unleash Digital for a New Africa’

May 29, 2023

Leaders of the global and African tech ecosystem have pledged their commitment to advancing the continent’s bold digital transformation missions, as excitement builds ahead of the highly anticipated debut of GITEX Africa 2023 (www.GITEXAfrica.com) this week in Morocco.

Addressing media at an industry roundtable briefing were senior executives from key exhibiting partners of Africa’s largest tech and start-up show, which makes its grand debut from 31 May – 2 June 2023 in the Red City of Marrakech.

Among these was Orange Maroc, Morocco’s second largest telecom operator. Ms. Hind Lfal, General Secretary of Orange Maroc said the French-headquartered multinational is steadfast in serving as the catalyst for technological growth while supporting Africa’s digital transformation and inclusion initiatives.

“As a Diamond Sponsor of the 1st edition of GITEX Africa, Orange Maroc is committed to accelerate the digital transformation of all companies, to support the development of innovative Moroccan start-ups, and to contribute to making Morocco a technological Hub in Africa,” said Ms. Lfal. “Thus, Orange is investing heavily in the most advanced connectivity networks locally and internationally as well as in modern and secure infrastructures supporting its trusted cloud offering.

“Orange relies on the expertise of a leading group present in 26 countries to provide the best customer service in the industry. Our commitment to excellence has been acknowledged through numerous awards and accolades, demonstrating our unwavering dedication to customer satisfaction.”

Chinese technology giant Huawei was one of the first exhibitors to sign-on for the 1st edition of GITEX Africa upon the show’s announcement to the world in October 2022 at GITEX Global in Dubai, the world’s largest tech and start-up event.

The tech titan opened its first office in Morocco in 2002, and has since created 8,000 local jobs underlining its commitment to augment Morocco’s digital transformation by providing a range of technological solutions and services to the public and private sectors while also training local talent in the fields of big data, AI, and coding.

Mr. Chakib Achour, Chief Strategy Officer at Huawei Morocco, said: “Science and technology development has accelerated Africa’s digital transformation, with Huawei being deeply engaged in the African continent for 25 years.

“GITEX Africa is the perfect opportunity to put real effort to develop our programs in the African region, and help companies to grow. The African region will be able to explore industry digitalisation trends and how technologies like cloud, AI, and 5G unleash industry values,” added Achour. “That’s why we’re coming to GITEX Africa – to unleash Digital for a new Africa.”

Dell Technologies is another headline GITEX Africa exhibitor and has been for the last few decades a major enabler of organisations’ digital transformation in the region, providing technologies that empower efficiency, resilience, and progress.

“Dell Technologies, along with its partners, will showcase agile, secure, and future-ready IT infrastructure solutions at GITEX Africa 2023,” said Mr. Nawfal Saoud, General Manager, Morocco at Dell Technologies. “Innovation will fuel digital transformation projects, contributing to the realisation of the vision, at a time when the continent is embarking on ambitious plans to evolve African societies, generate inclusive economic growth, and stimulate job creation.

“We believe GITEX Africa presents a great opportunity to connect with organisations and stakeholders who are passionate about the digital transformation of Africa’s economy. We are looking forward to showcasing our end-to-end portfolio of solutions, which comprise multi-cloud, digital workplace, data, security, finance, client solutions and more.”

Other roundtable speakers addressing media about their GITEX Africa participation and aspirations towards advancing digital inclusion and sustainable economic development in the world’s second largest continent were Mr. Rachid Baarbi, Vice President of AUSIM; Mr. Ghassane Bouhia, Principal Advisor at EBRD; Mr. Imade Elbaraka, Morocco GM and Managing Partner at Deloitte Morocco Cyber Center; and Mr. Mohamed Ahazzam, Head of Presales – Francophone Africa at SAP North and West Africa.

“GITEX Africa is the ideal platform to catalyse digital transformation and innovation in the region,” said Mr. Bouhia. “By uniting key stakeholders, the event will generate the perfect momentum to empower start-up ecosystems and fuel Africa’s digital journey.”

Mr. Ahazzam added: “At GITEX Africa, SAP will showcase the latest innovations from solutions that embrace AI and Machine Learning, Blockchain, cloud and the Internet of Things (IoT). This showcase will allow the start-ups of the African region to accommodate the uplifting digital transformation.”

Mr. Baarbi of AUSIM, an association committed to the development of Morocco’s IT and digital sector, concluded: “We’re committed to continuing to promote discussions on the role of digitalisation in the transformation of Moroccan businesses, fostering national and international collaborations.

“AUSIM plays a crucial role in promoting the effective use of information and communication technologies across all sectors. Its objective during this major event is to foster the digital transformation of Moroccan businesses and support the development of the digital sector in the country.”

Uniting every community across Africa’s innovation ecosystem.

GITEX Africa 2023 will welcome 900 exhibiting companies and start-ups, 250 leading investors, 250 conference speakers and 30 government delegations from more than 100 countries, while attracting tens of thousands of attendees from across the continent.

The GITEX Africa Digital Summit will meanwhile lead ten conference tracks comprising 140-plus hours of mind-stretching content exploring the most pertinent transformational topics advancing Africa’s digital agenda, from generative AI and digital cities, or Fintech and agritech, to healthcare, energy, innovation, sustainable development goals, and a spotlight on the world’s most exciting start-up ecosystem.

GITEX Africa is held under the High Patronage of His Majesty King Mohammed VI, under the authority of the Moroccan Ministry of Digital Transition and Administration Reform and hosted by the Digital Development Agency (ADD). The three-day super connector event is organised by KAOUN International.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

African Tech Ecosystem Shows Resilience Still Growing With $6.5 Billion Raised in 2022

January 24, 2023

Amid the drastic pullback in global VC funding, the African tech ecosystem stands out with +8% growth from 2021. Debt funding doubled in volume to $1.5B, accounting for nearly a quarter of the total funding. Fintech, still leading, attracted 39% of the total equity volume; Nigeria retained the top spot with 23%.

Partech Africa, the VC fund dedicated to technology startups in Africa, has issued its annual report on Africa Tech Venture Capital. The report, which aims to provide a practical picture of the state of the ecosystem, revealed that despite the global VC downturn, the African tech ecosystem grew faster than all other markets globally.

Total funding invested into tech startups on the continent reached $6.5B, an increase of 8% vs 2021, spread across 764 deals – compared to 724 rounds in 2021. The report, consisting of disclosed and confidential deals, saw debt funding more than double in volume, reaching $1.55 billion through 71 deals [65% YoY growth]. In comparison, equity rounds showed a slight decline, as 653 African tech startups raised $4.9B [-6%] in 693 equity rounds [2% YoY growth].

Focusing on the equity funding, the report revealed the ecosystem was still accelerating during Q1 and Q2 of 2022 compared to 2021, with the YoY comparison showing Q1 and Q2 at +127% YoY and +83% YoY, respectively. However, the global VC slowdown stifled growth in activity in Q3 [-65% YoY] and Q4 [-35% YoY]. In 2022, fundraising activities remained flat across all stages. At $1.4M, Seed+ ticket sizes averaged higher in 2022 [+12% YoY], while Series A remained the same at $8.5M. Later stages reverted to 2019 levels, as Series B and Growth round sizes dropped by -23% and -50% YoY, respectively. In addition, 2022 witnessed a significant reduction in the number of megadeals [over 100M], with only seven deals compared to 14 in 2021.

Speaking on the launch of the annual report, Tidjane Deme, General Partner at Partech, said: “2022 was a particularly challenging year for the venture ecosystem worldwide, as venture and growth investors scaled back their investment by a third. However, by comparison, our report revealed the African tech ecosystem showed great resilience, as more investors have doubled their commitment to the continent by investing in local teams and funds dedicated to the market, which is proving to be the best way forward.”

Overall, Nigeria, South Africa, Egypt and Kenya remain the top investment destinations in Africa, with a share of total volume staying relatively steady at 72%. Nigeria retained the top rank, bringing in $1.2B in capital, despite a decline of 36% from 2021; South Africa, Egypt, and Kenya each attracted over $0.7B in funding, with Ghana completing the top 5 with just over $0.2B. Overall, 28 countries attracted equity funding in 2022, 13 of them in Francophone Africa.

In light of the market downturn, the report’s findings also revealed that Fintech, which has historically attracted sizable investments, was the most impacted by the slowdown in the number of large rounds. However, fintech remains the most funded sector in Africa, and this across all sources of capital, with 39% of the total equity volume [$1.9B] and 45% of the total debt volume [$691M]. Other sectors have experienced substantial growth and gained a meaningful share of the equity funding activity this year, most notably Cleantech, which made a big comeback with 18% of total equity funding at $863M [+347% YoY] but also 39% of the total debt funding at $605M.

The report’s findings also show:

Female-founded startups raised 22% of all equity rounds in 2022, up 2 percentage points from 20% in 2021. They also contributed $644 Million or 13% of the total equity funding, down 3 percentage points from 16% in 2021.

Outside of the top 4 countries, Ghana ($202 million), Algeria ($150 million), Tunisia ($117 million) and Senegal ($105 million) were the only other countries that broke the $100M funding mark.

Despite a slowdown in the growth rate of equity investors, Africa’s tech ecosystem attracted 1,149 unique investors for the first time [+29% YoY in 2021]. African tech has seen more investors committed, with 89 participating in 5 or more deals (compared to 65 investors in 2021).

The number of debt investors active on the continent is growing 2.5x YoY, with a good mix of local debt institutions, international lenders with emerging market vehicles and Development Finance Institutions.

Speaking, Cyril Collon, General Partner at Partech, noted that : “Much of our methodology has remained the same over the years, and we, therefore, can provide a snapshot of how the African continent has evolved over the years. Nigerian and the fintech vertical have remained at the top spot; however, in an environment where equity funding is more challenging, debt has proved to be a solid alternative source of African tech startups in 2022, which signals a maturity within each sector.”

Headquartered in Dakar, Partech Africa is the largest VC fund dedicated to technology startups in Africa. With a focus on Late Seed, Series A and B equity rounds in startups which are changing the way technology is used across multiple sectors, including education, mobility, finance and healthcare, the VC has, to date, invested in 17 African startups, such as Wave (http://bit.ly/3J9lGqy) and TradeDepot (http://bit.ly/3R2IgD9). Using the same methodology as previous years, the seventh Partech Africa annual report on African tech start-ups only includes equity rounds where the total amount is higher than US$200K.