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Findings on acquisitions in Africa come from a new report from the Africa-based digital economy consultancy. TechCabal Insight. According to reports, 32 acquisition deals 2021 across Africa. At the end of Q3 2022, there were approximately 43 acquisition deals on the continent.
The consultancy said the data showed trends in Africa’s consolidation, suggesting that the market is “mature.”
Venture capital investment has seen continued growth in Africa over the past two years, after which investment levels plateaued. Because of this trend, some African startups have had to cut costs in order to increase the number of months before they run out of money. This has meant that acquisition deals have become necessary for the survival of such companies, especially for start-ups operating in the same market.
The number of acquisitions among startups operating in the same market increased from 31% in Q2 2022 to 52% in Q3 2022.
Oranlewaju OdunowoHead of TechCabal Insights provided his take on the report. Odunowo commented:
Data without context can be disproportionate and misleading, leading to erroneous results. Rather than just calculating numbers, we gather solid insights drawn from primary interviews with industry-leading experts. I was.
The purpose of this report is to present easy-to-understand insights and data points that everyone, from founders to investors, will find valuable.
The story isn’t always bright for African startups, according to a TechCabal report, although investment growth is trending positively. Between 2015 and his 2021, his investment in African startups has increased 18-fold. Investments in Africa also grew twice as fast as his global growth rate between 2020 and 2021.
Rising funding aside, life doesn’t look smooth for startups in the region. TechCabal details how his Africa-focused private capital investor has made 22 full exits by the end of the first half of 2022. This statistic represents a 29% increase in exits compared to the number in the first half of 2021 (15).
Of the 35 startups contacted by TechCabal, 37% were involved in fintech. This statistic highlights the fact that fintech remains the fastest growing sector in Africa.
