African tech attracts foreign investors thanks to a dynamic, creative, and resilient ecosystem. This sector is driven by a young population, a growing middle class, and the massive adoption of mobile technologies. Major tech hubs such as Lagos, Nairobi, and Johannesburg rival major global capitals, offering innovative solutions tailored to local and global needs.
The African venture capital market is growing rapidly
The African venture capital market is growing rapidly, with approximately 20 billion USD invested in ten years. 68% of which have occurred in the last three years, despite a global slowdown in 2023. Investors are attracted not only by the economic potential, but also by the societal impact, particularly in the financial inclusion, healthcare, and agri-food sectors.
The rapid rise in mobile internet users (expected to reach 438 million by 2030) and the increasing accessibility of smartphones create fertile ground for the large-scale deployment of digital services, strengthening the continent’s attractiveness. The rapid structuring of venture capital and the arrival of new players supporting startups over several years are strengthening the confidence of foreign investors.
African startups are preparing for internationalization
African startups are preparing for internationalization by structuring their development through incubation, acceleration, and soft-landing programs. This ecosystem facilitates their access to new markets and strategic partners in several African countries. They are also leveraging artificial intelligence and other innovative technologies to address local challenges while targeting global solutions. This is attracting the attention of investors and global tech giants.
Furthermore, companies rely on extensive innovation ecosystem networks (more than 400 hubs in 52 countries) to exchange ideas, train, and validate their business models before expanding. Preparation also involves a detailed analysis of target markets, rigorous budgeting of internationalization costs, and the use of specialized support programs (public and private) to maximize their chances of success.
Collaboration with local incubators and participation in open innovation programs strengthen their ability to adapt culturally and commercially to foreign markets.
Examples of African Startups That Have Successfully Internationalized
These startups have successfully expanded beyond their domestic markets through significant fundraising, strategic partnerships, and technological adaptation to local and international needs.
Nala (Tanzania): A fintech company specializing in cross-border payments, Nala raised USD 40 million in Series A funding and is collaborating with several governments to secure its transactions. This has enabled the company to establish itself in several African markets.
Elves (Egypt): A virtual assistant application powered by artificial intelligence, Elves has opened an office in Los Angeles and is expanding its services internationally.
FinChatBot (South Africa): Develops chatbots for the financial sector and is expanding into several African markets after raising significant funding.
Yola (South Africa): A platform facilitating the creation of websites for SMEs; Yola has 12 million users worldwide, with services available in six languages, including offices in Cape Town and San Francisco.
BitPesa (Kenya): A fintech company using blockchain for international money transfers, BitPesa operates in several African countries and targets developing markets.
Halan (Egypt/Sudan): A ridesharing and on-demand logistics startup, Halan has raised $5 million and operates in several North and East African countries.
