Nigeria attracts highest venture capital of $109m in tech startups in Africa

Nigeria raised the highest Venture Capital (VC), funds for tech startups in 2016. Making the investment the highest in Africa.

According to a new report from Partech Ventures, Nigeria attracted the highest fund of $109 million which is 29.8 per cent of total investments in Africa last year.

South Africa followed with $96 million representing 26.4 per cent, while Kenya received $92 million representing 25.3 per cent, it said.

The VC funding raised by African tech startups in 2016 totalled $366.8 million, compared to $276.5 million in 2015, it adds

Added to the above, African tech investments keep growing very fast with a distributed growth and with regards to deals, South Africa saw the highest number of deals with 28 transactions (36.4 per cent of total transaction), followed by Kenya with 21 deals (27.3 per cent) and Nigeria 13 deals (16.9 per cent).

The report further said, the investment landscape is broadening with in particular Francophone countries getting traction.

Financial inclusion accounted for 52 per cent of the total investment with $206.3 million across 28 transactions, it also said.

The report notes that Online and Mobile Consumer Services accounted for 40.5 per cent with $148.5 million across three transactions, and tech adoption accounted for 3.3 per cent of the total investments.

By Pamela Ofori-Boateng