As 2023 concluded, numerous specialized companies and platforms are evaluating the capital invested in diverse ecosystems. This data holds crucial significance for the growth of the digital economy, particularly in the African tech ecosystem. 

African fintech startups raised $852 million in 2023, a 56% decline from the record $1.9 billion secured in 2022, according to the 2023 edition of Partech Africa's Africa Tech Venture Capital report, published in January 2024. The number of deals also dropped by 48%, falling from 217 in 2022 to 113 last year.

Despite the decrease, fintech remains the most attractive sector for investors in Africa, accounting for 37% of all equity financing on the continent in 2023 and 24% of all deals. This is attributed to the sector's strong track record and continued relevance in addressing under-banking and promoting financial inclusion. Of the eight unicorns on the continent, seven operate in the sector, with only Jumia being in the e-commerce sector. 

"Fintech plays a critical role in addressing infrastructural challenges in Africa. Beyond just being payment applications, these solutions are essential in enabling a wide range of ventures," the report said. "By establishing both local and cross-border solutions, and fostering key connections between individuals, businesses, and financial institutions, Fintech’s role remains integral to the ecosystem."

Despite the overall funding slowdown, the healthtech and agritech sectors saw growth in 2023. Healthtech funding rose 17% to $212 million, while agritech investments jumped 67% to $144 million compared to 2022.

Adoni Conrad Quenum