#428
It’s Time For Africa!

As if the world needed more surprises, this week marked the (re)discovery of Ernest Shackleton’s ship off Antarctica, exactly 100 years to the day of Shakelton's death! What’s even more remarkable, despite being about 10,000 feet underwater, the Endurance was almost completely intact. In a heroic expedition marked by adversity and perseverance, this week's event is an epic last chapter.

Shackleton's story also reminds us of the difficulties - and incredible potential rewards - of pushing past well-known frontiers. Though quite the opposite from a climatic perspective, Africa's tech ecosystem is serving a similar reminder to the international investor community. The overwhelming talent, growth, and opportunity throughout the continent have left investors scrambling to better understand market dynamics and become involved as quickly as possible. This trend is evidenced by enormous increase in global investment volumes, as over $5b in venture capital funding entered the continent last year and seven new unicorns were born (joining the ranks of Jumia, Interswitch and Fawry). Before 2021, just eight African startups had raised $100m+ rounds; last year, the number nearly doubled.

The region remains fragmented and difficult to navigate. On top of that, interrupted engagement with certain external financial partners has recently brought to light the question of biases against operators on the continent. As understanding of the unique market dynamics improves and funding becomes better distributed (including from a gender perspective) companies will be better positioned to bring a variety of experiences and resources to further develop the tech ecosystem. Those companies that are able to succeed in these markets, especially in the fintech space, have the potential to both increase financial resilience among users and attract progressively more global venture funding.

This flurry of deal flow and investor attention is augmented by strong macro tailwinds. As the world’s fastest growing continent, Africa is estimated to account for 1/3rd of the global population by the end of the 21st century. Young, digitally native citizens that remain cash-constrained have created a wealth of opportunity for fintech connoisseurs. And speaking of dreaming, the big question remains for 2022...will an African nation finally be able to break Ghana’s 2010 curse and make it past the quarterfinals of the World Cup?