Recent research has shown that African startups have experienced their highest level of financial backing in recent times. Most African startups have not only successfully progressed beyond Series B VC funding but also mature into companies that have stood the test of time. Below are some of their impacts;
- Foreign investors; Due to the consistent rise of tech startups and innovative thinkers in Africa we have been able to draw the attention of foreign investors to Africa. Research shows that African startups raised over $4 billion across 355 funding deals in 2021 alone and is about to hit $7 billion or more this year.
- Employment; Due to the creation of tech startups in Africa job opportunities have also been created for Africans, thereby reducing the alarming rate of unemployment among its citizens. This also reduces the burden put on the government of such countries to create jobs for citizens.
- Urbanisation; Introduction of new tech products or tech solutions by these startups in Africa has led to urbanization in their societies or countries. For example, Flutterwave has made online transactions a lot easier and smoother in over 34 countries.
- Introduction of new technologies; Every startup brings a new technology product or innovation which the end result of it improves the African society as a whole. These new technologies also lead to development of skills.
