A new report shows 238 Nigerian tech startups raised over $2b in seven years. According to the report by Disrupt Africa, the number exceeds what any other African country received within the same period. The report further stated that 107 Nigerian startups raised $747.9 million in the last eight months, which accounts for one-third of the continent’s funding so far.
According to the report, Nigeria is the most popular investment destination in Africa. Meanwhile, Lagos is the leading tech hub accounting for 88.4 percent of tech startups with fintech being the top sub-sector and 36 percent of the startups active. The report captures funding in the startup ecosystem from January 2015 to August 2022.
Market roundup
Below is the Weekly Economic roundup from Ventures Africa for the week ending Friday, 16th September 2022. This economic index gives you a glimpse into recent activities in the African economy and price changes that could affect it.
Stock markets
Here is how stocks performed in key African markets (Nigeria, Egypt, South Africa, and Kenya) at the end of the week ending Friday, 16th September 2022:
- Nigeria
The NGX All-Share Index dropped by -0.31% (311.53 points) at the end of the week to close at 49,475.42 basis points.
Top 5 gainers
NEM — +8.97%
Academy — +6.80%
Japaul gold— +3.70%
Cadbury — +3.00%
Wema bank— +1.76%
Top 5 decliners
NGX30Z2 — -10.00%
Regalins — -7.41%
Unity bank — -6.98%
Accesscorp —-5.14%
Cornerst — -4.76%
- Egypt
The EGX 30, Egypt’s benchmark index, closed the week with a -3.40% drop to 10,079.02 basis points.
Top 5 gainers
Qatar national bank Alahly — +7.00%
Egyptian Iron and steel — +4.92%
Cairo for investment and real estate development — +1.57%
Egyptian Kuwaiti holding — +0.73%
Oriental weavers — +0.45%
Top 5 decliners
Rights issue of natural gas and mining — -35.84%
Egyptians housing development and reconstruction — -18.17%
Arab co. for asset management and development — -17.25%
El Obour real estate investment — -16.23%
Belton financial holding — -16.15%
- South Africa
The JSE benchmark index (J203) dropped -4.56% over the week and closed trading at 66.584.34 basis points.
Top 5 gainers
Glo life interntional — +100.00%
Finbond group— +15.22%
Ellies Holdings — +14.29%
Afine investments — +11.75%
MTN Zakhele Futhi — +8.49%
Top 5 decliners
Ayo tech solutions — -19.17%
4sight holdings ltd. — -14.29%
Southern palladium ltd. — -13.04%
Deneb investments ltd. — -9.64%
Delta property fund ltd. — -9.25%
- Kenya
The NSE All-Share Index
dropped -5.34% over the week to close trading at 132.34 basis points.
Top 5 gainers
Total Kenya ltd — +6.99%
Trans century — +6.90%
Nairobi business ventures — +6.77%
East African cables — +3.48%
Car and general — +3.41%
Top 5 decliners
Limuru tea company — -8.10%
Umeme ltd— -7.66%
NCBA group — -7.41%
Flame tree group holdings — -6.77%
East African breweries — -6.15%
Currency market
Here is how Nigeria, Egypt, Kenya, and South Africa’s currencies performed against the US dollar this week.
- The naira traded at N429.05/$ on Monday and closed the week at N430.33/$ on the Investors and Exporters Window.
- The Egyptian pound started the week at E£19.37/$ and closed trading at E£19.44/$.
- The Kenyan shilling started the week at Ksh 120.43/$ and closed at Ksh 120.51/$.
- The South African rand started the week at R17.11/$ but closed at R17.65/$.
Oil prices
- Brent oil started the week at $91.7341/barrel and closed the week at $91.35.
- West Texas Intermediate (WTI) started the week at $85.36/barrel and closed the week at $85.11/barrel.
Crypto market
An image of bitcoin
The cryptocurrency markets started the week at $1.06trillion and stood at $965 billion as of report time, according to data from Coinmarketcap.
- Bitcoin (BTC) fell 7.97% to trade at $19,890.
- Ether (ETH) fell by 19.28% to trade at $1,429.
- Binance coin (BNB) fell 7.04% to trade at $275.
Tech funding
- Kenya-based insurtech, Turaco raised $10m Series A equity funding to further expand its insurance model to a pool of potential customers in its markets.
- Kippa, a Nigerian fintech has raised $8.4m in an oversubscribed seed round. The fund raised is to develop financial products that help SMEs grow their businesses and its team.
- Venture capital fund, Janngo capital startup fund, had its first close at $33.98m in capital commitments to invest 50% of its proceeds in companies founded, co-founded, or benefiting women.
- Bitmama, a Nigerian blockchain payment platform raised a pre-seed of $1.65m adding to the $350k it received last October, closing the round at $2m.
From the experts
According to Samson Akintaro, a tech analyst with Naira metrics, “For every innovation coming out of Africa and especially Nigeria, there is a huge market for it as long as it addresses problems faced by the people. Investors want to make returns on their investments. So, they look out for startups with innovative solutions and a market ready to use that solution. Right now, the African market and startups offer investors just that. That is why the startup ecosystem remains attractive to investors.”
