Over the last few years, venture capitalists and investors have been increasingly interested in Africa – as shown by the rise in investments which passed the US$1 billion mark for the first time in 2019. Unfortunately, due to the effects of Covid 19, the continent’s growth slowed, but startups still saw record funding levels of around US$1.3 billion in 2020.
Despite the continuing pandemic, 2021 saw Africa’s potential being realized. The continent saw startups raising a staggering US$4.27 billion – more than the previous two years combined. Furthermore, the investments are paying off, with five unicorns minted in 2021 alone.
The rise of the African tech sector is being noticed by significant players in the industry. Sundar Pichai, Google’s CEO, recently announced the company would invest US$50 million in African startups, and would be financing US$1 billion in technology-led initiatives in the continent over the next five years.
Hiruy Amanuel is another who sees the vast potential of Africa. Amanuel is a well-known Silicon Valley venture capitalist, entrepreneur, and philanthropist who knows the continent well. He is also the managing director of Gullít, a fund that focuses on and develops early-stage tech startups in East and South Africa.