2022: Another promising year for African tech
African tech in 2021 reached great heights, unseen before within the industry. We reached out to a few tech leads across Africa’s ecosystem to ask them what their thoughts were on 2021, as well as their predictions for the ecosystem in 2022
In 2021, Africa recorded its highest number of unicorns - a startup valued at over US$1 billion, in one year with five new unicorns (out of a total of seven), including Andela, Chipper Cash and Flutterwave. Investment into the ecosystem also reached a record high as a total of US$4 billion was invested into the ecosystem from both local and international investors. In 2022, we expect even more growth, building on the success of last year.
Reflecting on 2021, and predicting 2022, here's what Africa's tech leads had to say:
What’s the best thing that happened in African tech in 2021:
' The increased level of global exposure for African tech companies and entrepreneurs, driven by increased funding and more in-depth storytelling. We are seeing the beginnings of a shift in the narrative around African entrepreneurship and more spotlight on the people and innovation that are pushing the continent forward. There is still a long way to go the African tech entrepreneurship narrative is emerging on the global stage' - Olugbeminiyi (Bemi) Idowu, Talking Drum Communications, Founder/MD
'An increase in funding beyond fintech. An indication that investors are starting to understand that building a thesis in Africa needs to be a wider rather focused approach' - Sam Baddoo, Fleri, Founder
'2021 aka the rise of the unicorns - This year we've seen a rise in the number of African companies, mostly in fintech, hit the 1 billion valuation mark - from Andela, Flutterwave, OPay and most recently, Chipper Cash' - Maria Adediran, Wimbart, Account Director
'The budding energy and increasingly promising tech startups in Africa; a proof African youths can truly change the world' - Fela Akinse, SALUBATA, CEO and Co-founder
'For me, I think it was YC investing in so many African companies. Gives the ecosystem credibility' - Wunmi Akinsola, Fashtracker, Founder
'Flutterwave becoming a unicorn' - Moyosola Kara, Eze Technologies Inc, Director of Marketing & Communications
'$4 billion raised in Africa, more unicorns, increased employment in tech' - Joe Kinvi, HoaQ, Managing Partner
'Paystack's acquisition [by Stripe]' - Jessica Hope, Wimbart, CEO
'More access to funding for growth and diversification' - Charlotte Odunlade-Akeju DriveMe.Ng, Co-founder
'The emergence of several unicorns' - Tunji Andrews, AWABAH, CEO
'The rise of more unicorns, validating the maturity of fintech on the continent' - Alexander Onukwue, Quartz Media, West Africa correspondent
'Flutterwave becoming a unicorn' - Koromone Koroye, TechCabal, Managing Editor
'Flutterwave becoming a unicorn and the exponential growth of the African fintech industry' - Oghenevwoke Ighure, PressReader, Territory Manager-Africa
'Flutterwave unicorn status' - Adewale Yusuf, TalentQL, CEO
'A few more African unicorns' - Ayo Akindele, Kyshi, Co-founder
'Acquisitions' - Seun Runsewe, Chipper Cash, Senior Product Manager
What is your 2022 prediction for the African technology sector?
'It's the year of the underdog. I think more investments will go to startups with locally incubated founders with more local knowledge. I also see more rounds of financing to new tech industries like edtech, e-commerce, insurtech etc. My biggest prediction is this - since the purchasing power of the 35% of Africans is rising, new tech products for premium service will increase and a new demand for more premium services will emerge to take care of this market. Finally, more giants like Paystack, Fluttewave, Jumia, Paga etc will have to acquire more local startups to solidify their market and value offering. This acquisition might happen across conflicting verticals because of the immaturity of the African markets but that is almost the fastest way to consolidate. Hence, we might see Paga invest in companies like Bankly etc' - Eyitayo Ogunmola, Utiva, CEO
'My biggest prediction is the emergence of new sectors. Fintech has been the biggest draw in Africa for some time now but I anticipate that other sectors like e-commerce, agriculture and healthcare will become more prominent over the next 12 months. It is safe to say that African entrepreneurs have shown (and continue to show) the opportunity with fintech but as Africa's innovation story matures, investors, stakeholders and the general public want to see other opportunities and stories, and this will drive innovation and development in other sectors' - Olugbeminiyi (Bemi) Idowu, Talking Drum Communications, Founder/MD
'No doubt we will continue to see more unicorns in 2022 but I think we'll begin to see companies in other untapped regions raise more funds. Especially in Francophone Africa and potentially, Lusophone countries in Africa' - Maria Adediran, Wimbart, Account Director
'More female-founded startups will exist in 2022' - Moyosola Kara, Eze Technologies Inc, Director of Marketing & Communications
'$10 billion in funding raised, 4x unicorns compared to 2021, more African companies going global, increased mobility' - Joe Kinvi, HoaQ, Managing Partner
'Double down on fintech and refocus on health tech. Expect to see an IPO too, as well as more M&A activity' - Jessica Hope, Wimbart, CEO
'Stronger businesses and more invocations solving African problems' - Charlotte Odunlade-Akeju DriveMe.Ng, Co-founder
'That practitioners will seek more regulation to create standards' - Tunji Andrews, AWABAH, CEO
'I think super growth for a lot of companies, bigger rounds, more people utilizing tech services, and just generally more awareness from a user angle' - Wunmi Akinsola, Fashtracker, Founder
'An acquisition on the scale of Stripe's acquisition of Paystack but outside fintech, and for more money' - Alexander Onukwue, Quartz Media, West Africa correspondent
'More consolidation (more companies getting acquired)' - Seun Runsewe, Chipper Cash, Senior Product Manager
'We're going to see more tech-enabled platforms for digital creators and influencers' - Koromone Koroye, TechCabal, Managing Editor
'Healthtech and Insurtech will have its day' - Sam Baddoo, Fleri, Founder
'More African Tech unicorns in 2022' - Oghenevwoke Ighure, PressReader, Territory Manager-Africa
'Increased funding particularly in the digital sector' - Fela Akinse, SALUBATA, CEO and Co-founder
'More acquisitions and more unicorns' - Adewale Yusuf, TalentQL, CEO
'Double the number of unicorns and at least 5 acquisitions in tech' - Ayo Akindele, Kyshi, Co-founder
Just like us, a lot of our respondents were excited about the funding that was poured into the African tech ecosystem in 2021 which led to the largest number of unicorns in a single year. For 2022, most are not just hoping for even more funding and more unicorns, but also more mergers and acquisitions, IPO launches, a focus on sectors outside of fintech, and the emergence of more African female-founded and funded startups, amongst others.
It's the start of the year, and the ecosystem is well on its way to smashing all its previous records, we are here for it!
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About the author
Tosin Omowole is a Content Creator at AfriTech XYZ, working on key content assets to support the community. She is also a PR professional with vast experience working on African fashion, lifestyle and technology companies.
