[TechCabal] Madica Ventures wants to bridge the financial gap in Africa’s technology ecosystem
By Muktar Oladunmade
Funding in Africa’s tech industry has its favourite destinations. The Big 4—Nigeria, South Africa, Egypt, and Kenya—accounted for more than 70% of the $5.2 billion raised by startups in Africa last year, according to Partech’s 2021 report. The remaining 50 countries on the continent raised $1.4 billion, a paltry sum, but still a 382% improvement from the previous year.
This year, the trend continued. By the second quarter of 2022, of the $1.26 billion that was raised on the continent, $660.93 million went to the Big 4, according to this TechCabal Insights report. But for Africa to continue on its current upward trajectory in technology, investment and opportunity need to be diversified to include more than just the Big 4.