The report, titled \u201cThe Inflection Point: Africa\u2019s Digital Economy Is Poised To Take Off\u201d, reviewed key events in Africa\u2019s technology ecosystem from the last few years, identified patterns (especially in the context of other technology ecosystems across the world), and offers a roadmap to successfully navigate the opportunities that are emerging. According to the report, which drew on multiple sources, including analysis from McKinsey & Company, Africa\u2019s digital economy is approaching its S-curve, a period of rapid, significant growth that will positively impact the continent\u2019s GDP, job creation, and overall economic outlook.<\/p>\n
Africa\u2019s digital economy is large and growing, with an estimated market size of $115 billion \u2013 expected to reach $712 billion by 2050. By 2050, Africa will be home to a third of the world\u2019s young people and the continent is urbanizing faster than other regions. Additionally, 1 in 6 of the world\u2019s internet users will be in Africa in 2025. The COVID-19 pandemic is also driving digitisation on the continent, encouraging more Africans to engage in digital activity. As a result of these dynamics, more investors are paying attention to the potential of African technology. Between January 2020 and December 2021, funding for African digital startups grew two times faster than global rates. Proven exit paths are also emerging for early investors with the increase in mega-rounds, liquidity events, and unicorns.<\/p>\n
The combination of these events has primed Africa\u2019s technology landscape for success. However, there remains a \u2018white space\u2019 for investors to consider. Due to the quantum of deals in the 1-5mn USD range in the last year (600), relative to the 5-50mn USD range (~150), it is unlikely there will be sufficient supply in the market as companies from the 1-5mn USD range graduate to larger ticket sizes. With the right financial support, the current excess of innovation can be more effectively leveraged to drive even more development and prosperity on the continent.<\/p>\n
Commenting on the report, Tosin Faniro-Dada, CEO and Managing Director of Endeavor Nigeria, said, \u201cThe data gathered in this report is clear \u2013 Africa is the next digital growth frontier. The combination of our young and digitally savvy population, an emerging technology ecosystem, and the impact of the COVID-19 pandemic on behaviours is set to trigger an inflection point in our digitization journey. We have been excited by the increased levels of funding that our entrepreneurs are attracting but we want to make it even easier for more investors to bring out their cheque books to catalyse the growth that we believe is pending\u201d.<\/p>\n
Topsy Kola-Oyeneyin, Partner at McKinsey and Company, said, \u201cWe\u2019ve seen a few eye-catching funding rounds and acquisitions in Africa\u2019s technology ecosystem in recent years but the findings of this report suggest that we barely scratched the surface. A number of sectors across the continent are still underpinned by informality and fragmentation, limiting the availability and affordability of products and services. These opportunities for disruption abound across the continent and this report will make it easier for interested investors to adjust their business models effectively to capitalise on these opportunities\u201d.<\/p>\n
About Endeavor<\/p>\n
Endeavor is the world\u2019s leading community of high-impact entrepreneurs. Founded in 1997, Endeavor is a global organization with a mission to unlock the transformational power of entrepreneurship by selecting, supporting, and investing in the world\u2019s top founders. Today, Endeavor\u2019s network spans nearly 40 markets and supports more than 2,300 entrepreneurs, whose companies generate combined revenues of over $42 billion US, and have created more than 3.9 million jobs. Endeavor\u2019s unique entrepreneur-first model and network of trust provide a platform for founders to dream big, scale up, and pay it forward to the next generation of entrepreneurs.<\/p>\n
Endeavor launched its Nigeria office in 2018 to select and support the best founders of companies at the scale-up and growth stage, who recognise a responsibility to pay it forward and multiply their impact in Nigeria\u2019s entrepreneurship ecosystem. In Nigeria, Endeavor aims to select 4-6 companies a year and today there are 30 Endeavor Entrepreneurs leading 15 companies in their portfolio.<\/p>\n","protected":false},"excerpt":{"rendered":"
Anew report from Endeavor Nigeria, the leading community of high-impact entrepreneurs in Nigeria, has stated that Africa\u2019s technology ecosystem is set for a period of exponential growth, accelerated by strong market fundamentals and the impact of the COVID-19 pandemic.<\/p>\n","protected":false},"author":12963,"featured_media":9738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,21],"tags":[7,26,22],"class_list":{"0":"post-9741","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"category-technology","9":"tag-apie-project","10":"tag-news","11":"tag-technology"},"yoast_head":"\n