Africa Holds 883 Scaleups With $24.7 Billion Raised

Africa counts 883 tech scaleups that have raised a combined $24.7 billion, according to data cited in a Crunchbase News report on the continent’s innovation landscape. The continent accounts for roughly 1% of global scaleup figures. Four primary hubs concentrate activity: South Africa, Egypt, Nigeria and Kenya.

Scaleup Ecosystem Growth

Africa now has four ecosystems at the startup stage and 40 at the standup stage. Ten years earlier the corresponding total stood at 25. Worldwide the number of scaleup ecosystems has more than doubled over the same period and is projected to triple. Nineteen mature ecosystems continue to dominate global innovation activity.

Cleantech Concentration

Cleantech represents 95 of Africa’s scaleups, or 11% of the total base. These companies have drawn approximately one-fifth of all capital deployed to African ventures. Cleantech accounts for around 20% of both scalers (more than $100 million raised) and super scalers ($1 billion-plus). Within cleantech, gridtech comprises 16 scaleups and two scalers and has attracted roughly 30% of cleantech funding. Kenya-based Sun King is Africa’s sole cleantech tech giant and operates in the gridtech vertical.

Infrastructure and Capital Constraints

Africa’s high-voltage grid remains concentrated in a few densely populated areas, leaving large regions disconnected. The continent accounts for only about 5% of global energy supply while holding 13% of global technical hydropower potential and around 60% of the world’s best solar resources. International investors represent approximately 69% of active capital in the market. Public investors are expected to account for up to about 80% of total gridtech investments by 2030. Blended public and private capital is required to address the small domestic venture capital market, which remains focused on early-stage deals.

according to Crunchbase News.