Q2 2023 has been another rough quarter in terms of fundraising for start-ups in Africa. Despite some sizeable announcements in May from M-Kopa, Sun King, and TymeBank, the level of funding raised by start-ups in Africa in Q2 2023 was 31% lower than a year earlier. VC funding in African start-ups drops 62% this year. The reason? Africa overall have a higher risk appetite, and therefore take a longer time to react to crises (in this case the Ukraine conflict and its global implications on inflation, energy prices etc.) than investors in other regions such as Europe, Americas, or Asia.
Source: Nanyang Tech University Singapore
