Fintech. But not just.

While fintech continues to dominate, the number of sectors attracting at least $100m of funding in Africa is also on the rise

Yes, fintech was still by far the sector attracting the most funding in Africa in 2021: $2.3 billion in total, which was 2.7x the amount the sector had raised in 2020, and much more than the total raised by all start-ups on the continent that year ($1.6b+). Of the 12 African ‘mega deals’ ($100m+) in 2021, 9 were in fintech. Nigeria continues to lead - 37% of the fintech funding raised -, but with South Africa breathing down its neck (29%, driven by the Jumo, MFS Africa and Tymebank mega deals). Yet beyond fintech, there are more and more sectors attracting significant funding. As a matter of fact, only 3 sectors beyond fintech had raised $100m+ in 2019; there were 7 in 2021. ‘Energy’ and ‘Logistics & Transportation’ have been completing the top 3 with fintech since 2019. The performance of the ‘Education & Jobs’ sector is closely linked to Andela’s: its 2019 $100m Series D and 2021 $200m Series E represented respectively 83% and 72% of the yearly total raised by the sector. In 2020 though, ‘Education & Jobs’ had dropped off the map and attracted just $23m in funding. In 2020, ‘Healthcare’ and ‘Agri & Food’ claimed over $100m in funding, and continued to do so in 2021. In 2021, two new sectors also raised over $100m: ‘Retail (mainly eCommerce)’ and ‘DeepTech’ (dominated by Gro Intelligence’s $85m Series B, 82% of the total raised). Of all the main sectors, the one showing the strongest steady growth between 2019 and 2021 is ‘Healthcare’ (7x in amount raised during the period).

By the way, 2022 is off to a very, very strong start with almost half a billion dollars raised through 90+ funding rounds (above $100k), all included in our Africa: The Big Deal database. Also, if you’re new here, Welcome! Don’t hesitate to subscribe and check out our previous posts on gender, ecosystem growth, and more.