🗺 2022 Map series 🗺 Central Africa 🗺

Africa’s Sleeping Giant is yet to awaken

This week we’re continuing our series focused on start-up funding in Africa’s five regions in 2022. After Western, Eastern and Southern Africa, we are now headed to Central Africa.

In 2022, Central Africa has been by far the region where start-ups raised the least funding through deals $100k and over with a total of $51 million. While the region represented only 1.1% of the funding raised on the continent, YoY growth was commendable, as start-ups raised more than double the amount that had been raised in 2021 ($24m). The number of $100k+ deals also grew YoY - from 12 in 2021 to 14 in 2022 - and represented 1.4% of the continent’s total.

However, only two of the eight countries that make up Central Africa have seen at least one $100k+ deal last year: the DRC and Cameroon. The DRC recorded 5 $100k+ deals in 2022 (vs. 4 in 2021) and the total amount raised more than tripled, from $12m in 2021 to $39m last year. However, this impressive growth is almost fully attributable to Jambo, which raised a $7.5m Seed round in February, followed three months later by a $30m Series A round in May. As such, the start-up was responsible to a large extent for the region’s YoY growth in funding raised as these two deals alone represent 74% of all the funding raised in Central Africa last year. Funding raised in Cameroon was flat YoY ($12m) while one more $100k+ deal was recorded compared to 2021 (9 vs. 8). The largest transaction by far was Ejara’s $8m Series A. It means that outside of Jambo and Ejara - both in the ‘crypto space’ -, start-ups in the region raised a mere $5m in 2021.

Central Africa is punching much below its weight as its share of total funding raised in Africa (1.1%) is significantly lower than its share of the continent’s GDP (~5%), and even more so than its share of Africa’s population (12%). About $0.30 of start-up funding was raised per capita in 2022 in the region, barely a tenth of the continental average ($3.4pc).

This is not to say that there isn’t talent or potential in the DRC, Cameroon, and beyond. Behind these low numbers are missed/future opportunities for investors. We’ll publish the last map of the series - Northern Africa - soon. Though I’m also looking at some other interesting analysis at the moment which we might publish first, because we’re asked for it almost on a daily basis (here’s a hint…). And that’s your customary discount link to the database: you’ve earned it!