African start-ups raised a record $5.3 billion last year, though that may be the high-water mark as a deepening slump in the technology industry reduces the funding pool.
While investment in 2022 exceeded the previous year by just $100,000, the number of deals jumped 20 per cent to 964, according to data from Briter Bridges, a market intelligence company.
“There are some red flags in that the mega-deals are largely driven by overseas, non-African-committed investors,” said Dario Giuliani, director at Briter Bridges.
“There is a risk that the pool for growth funding may be limited in 2023.”
Global funds such as Sequoia Capital, Tiger Global and the failed crypto company FTX led the largest investments in African start-ups over the past few years.
But with recession looming in many Western nations and job cuts accelerating across technology companies — Amazon is laying off more than 18,000 employees — private equity and venture capital firms may choose to conserve cash.
“Valuations of tech companies” are depressed, said William Sonneborn, International Finance's global director of disruptive technology and funds.
“Private businesses aren’t immune from how listed comparables are valued. I expect several high-profile downrounds on the continent this year.”
While more than a third of African start-up funding was for FinTechs last year, the trend is shifting, Mr Sonneborn said.
Health technology, climate and farming technology will attract funds this year, he added.
Investment has been concentrated in four of the continent’s more developed markets — Egypt, Nigeria, Kenya and South Africa — which are battling economic challenges from slowing growth to currency depreciation. That may hit financing opportunities, according to Briter Bridges’ Mr Giuliani.
The Egyptian pound is at a record low, while the Nigerian economy is reeling under rising debt and its currency is weakening.
Ghana and Kenya have also seen their currencies depreciate.
“While in 2021, companies were encouraged to grow at all costs, they now are focused on preserving cash, reducing burn and delaying their next round as long as possible,” Mr Sonneborn said.
Shares of African start-up Jumia Technologies, which trade in New York, have fallen about 68 per cent in the past 12 months and the company’s founders quit in November.
Chipper Cash and Wave were also affected by the collapse of Sam Bankman-Fried’s FTX, which had invested in both.
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UAE currency: the story behind the money in your pockets
Five films to watch
Castle in the Sky (1986)
Grave of the Fireflies (1988)
Only Yesterday (1991)
Pom Poki (1994)
The Tale of Princess Kaguya (2013)
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● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Ukraine
Capital: Kiev
Population: 44.13 million
Armed conflict in Donbass
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WWE Super ShowDown results
Seth Rollins beat Baron Corbin to retain his WWE Universal title
Finn Balor defeated Andrade to stay WWE Intercontinental Championship
Shane McMahon defeated Roman Reigns
Lars Sullivan won by disqualification against Lucha House Party
Randy Orton beats Triple H
Braun Strowman beats Bobby Lashley
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Mansoor Al Shehail won the 50-man Battle Royal
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Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Buy farm-fresh food
The UAE is stepping up its game when it comes to platforms for local farms to show off and sell their produce.
In Dubai, visit Emirati Farmers Souq at The Pointe every Saturday from 8am to 2pm, which has produce from Al Ammar Farm, Omar Al Katri Farm, Hikarivege Vegetables, Rashed Farms and Al Khaleej Honey Trading, among others.
In Sharjah, the Aljada residential community will launch a new outdoor farmers’ market every Friday starting this weekend. Manbat will be held from 3pm to 8pm, and will host 30 farmers, local home-grown entrepreneurs and food stalls from the teams behind Badia Farms; Emirates Hydroponics Farms; Modern Organic Farm; Revolution Real; Astraea Farms; and Al Khaleej Food.
In Abu Dhabi, order farm produce from Food Crowd, an online grocery platform that supplies fresh and organic ingredients directly from farms such as Emirates Bio Farm, TFC, Armela Farms and mother company Al Dahra.
Genesis G80 2020 5.0-litre Royal Specs
Engine: 5-litre V8
Gearbox: eight-speed automatic
Power: 420hp
Torque: 505Nm
Fuel economy, combined: 12.4L/100km
Price: Dh260,500
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Wales 20-19 France
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France: T: Vahaamahina, Ollivon, Vakatawa Cons: Ntamack (2)
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The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Mobile phone packages comparison
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
