Next Stop Southern Africa

Overview

The report titled "Next stop: South(ern) Africa!" is authored by Max Cuvellier Giacomelli and focuses on the startup funding landscape in Southern Africa, particularly South Africa. The report provides a comprehensive analysis of the funding raised by startups in the region since 2019, comparing it with other African regions. The author uses data to highlight the dominance of South Africa, which accounts for over 95% of the funding raised in the region. The report also discusses the growth of startup funding in South Africa over the past three years and the challenges faced by other countries in the region. This report is beneficial for those interested in the startup ecosystem in Africa, especially investors and entrepreneurs.

Key Figures

• Southern Africa represents 17% of all the funding raised by startups in Africa since 2019.
• South Africa has raised over $1.7 billion since 2019, representing over 95% of the funding raised by startups in Southern Africa.
• Funding raised by startups in South Africa has grown by 3.7 times between 2019 and 2020, and 3.1 times between 2020 and 2021.
• In the first half of 2022, South African startups raised nearly the same amount as in the first half of 2021 ($392m in H1 2022 vs $394m in H1 2021).
• The second country in terms of funding in the region is Zambia, with 46 times less funding raised ($37m) through 22 times fewer $100k+ deals (12 vs. 263+).

Key Takeaways

• South Africa dominates the startup funding landscape in Southern Africa, making it a key market for investors interested in the region.
• Despite the dominance of South Africa, there are opportunities in other countries like Zambia, though they are significantly smaller in scale.
• The steady growth in funding raised by South African startups indicates a robust and growing startup ecosystem.
• The data suggests that there is room for growth in other Southern African countries, but they face significant challenges in competing with South Africa.