Last year, South Africa mobile startups raised Sh16.9bn (US$167.8mn) through 42 deals, according to the Global System for Mobile Communications Association (GSMA).
The GSMA revealed its findings in its mobile economy report, noting that South Africa accounted for one-third of the continents funding in mobile startups.
The continent raised Sh56.35bn ($559.5mn) through 124 startup firms in 2017, a 52.67% increase from the previous year’s Sh36.91bn ($366.5mn) from 77 companies.
Kenya ranked second with Nairobi representing 25% of Africa’s funding in the startups, solidifying its place as a mobile innovation hub.
The country raised Sh14.79bn ($146.8mn) in the review period through 27 deals, followed by Nigeria with 17 firms which raised Sh11,53bn ($114.6mn).
Rwanda raised Sh3.69bn ($36.6mn), Ghana raised Sh2.05bn ($20.4mn), Uganda raised Sh1.61bn ($16mn), and Senegal raised Sh1.08bn ($10.7mn).
“The range of tech start-ups funded and the growing size of deals reflect the accelerating development of the (mobile) ecosystem,” stated the GSMA.
“This underscores the increasing innovation and investor interest in solutions that address the region’s starkest social challenges, such as limited access to financial services, education and energy by large swathes of the population.”
African Business Chief