{"id":8665,"title":"Africa’s Exploding Tech Startup Ecosystem","publisher":"Share Talk","author":"sharetalk","published":"2017-04-05T16:25:46+00:00","modified":"2017-11-03T19:56:27+00:00","canonical_url":"https://www.share-talk.com/africas-exploding-tech-startup-ecosystem/","markdown_url":"https://www.share-talk.com/africas-exploding-tech-startup-ecosystem.md","json_url":"https://www.share-talk.com/africas-exploding-tech-startup-ecosystem.json","category":"Learning and Investing","categories":["Learning and Investing"],"tags":["Africa","AXA Group","global megacities","Goldman Sachs","infographic","JEFF DESJARDINS","Kinshasa","Lagos","Rocket Internet"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1","format":"news","language":"en-GB","content":" \n\nIn terms of economic potential and growth, Africa has never been more important on the world stage.\n\nAfrica is home to the [fastest growing cities](http://www.visualcapitalist.com/mapped-the-worlds-fastest-growing-cities/), and more than half of the world’s population growth will take place on the continent over the coming decades. By 2050, cities like Lagos and Kinshasa will be [global megacities](http://www.visualcapitalist.com/megacity-economy-7-types-global-cities/), each holding well over 30 million inhabitants.\n\nAfrica is also at the start of a technological renaissance. It was recently reported by [WeAreSocial](http://%3Ca%20href%3D/) that 7 of 10 of the world’s fastest growing internet populations are in Africa – the beginning of a trend that will likely re-shape entire economies as new companies leapfrog established technology, ideas, and infrastructure.\n\nThat said, much of that opportunity lies in the future. As of today, internet penetration is just 29% throughout Africa, meaning that the majority of growth and network effects are still to come.\n\n[!\\[\\](http://2oqz471sa19h3vbwa53m33yj.wpengine.netdna-cdn.com/wp-content/uploads/2017/04/africa-tech-startup-hubs.jpg)](http://www.visualcapitalist.com/africa-exploding-tech-startup-ecosystem/)\n\nCourtesy of: [Visual Capitalist](http://www.visualcapitalist.com)\n\n## A NEW STARTUP ECOSYSTEM EMERGES\n\nToday’s infographic from [GSMA](http://www.gsma.com/) shows the 300+ hubs that have emerged in the African tech startup ecosystem. Many of these plan to take advantage of the aforementioned growth potential, including the 360 million smartphone owners expected on the continent by 2025.\n\nInvestors are recognizing the potential as well. Last year, it was estimated that African startups raised a record-breaking total of [$366.8 million](http://www.africanbusinesscentral.com/2017/03/06/african-tech-startups-raise-record-breaking-370m-in-2016-partech-ventures-infographic/) in investment.\n\nHere’s that distribution sorted by country:\n\n![African startup investment by country](http://2oqz471sa19h3vbwa53m33yj.wpengine.netdna-cdn.com/wp-content/uploads/2017/04/investment-african-startups.jpg)\n\nIn what sectors did most of the action happen? According to a separate report by [Disrupt Africa](http://disrupt-africa.com/), the fintech sector received the most funding in 2016, but the agri-tech sector saw the biggest percentage growth as compared to the previous year.\n\nOther sectors that got substantial amounts of attention include solar, health, e-commerce, entertainment, and e-learning.\n\n## UNIQUE OPPORTUNITIES\n\nEvery startup ecosystem is different, and hubs in Africa are no exception.\n\nIn particular, the continent has a unique wrinkle that also presents a huge opportunity: according to the African Development Bank, about 55% of sub-Saharan Africa’s economic activity is informal.\n\n![](https://www.share-talk.com/wp-content/uploads/2017/04/x-300x131.jpg)\n\nLast year, Africa Internet Group became the [first unicorn](http://www.sramanamitra.com/2016/06/09/billion-dollar-unicorns-africa-internet-group-the-first-african-entry-to-the-club/) on the continent after receiving investments from Goldman Sachs, Rocket Internet, AXA Group, Orange, and others.\n\nIt’s also certain to be just one of many born on the African Savannah.\n\n[JEFF DESJARDINS](http://www.visualcapitalist.com/author/visualcapitali/)"}