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China-Africa Trade Information Service
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By GABRIELLA MULLIGAN
In recent years, with the vigorous development of the information age, mobile money, cargo drone and wifi hotspots become the represent of this generation, the same in Africa. It becomes the chance and challenges for both the Africa's innovators and international investor.
From mobile money to cargo drones and rugged portable wifi hotspots, Africa’s innovators are generating new technology to tackle consumer needs and development challenges.
Data comparison
New data charting investment activity flowing into Africa’s tech start-ups shows that international investors are taking notice. According to Disrupt Africa ( Disrupt Africa is a blog that provides readers information about startups and technology in Africa ), a portal for start-ups and accelerators across the region, tech start-ups on the continent raised more than $129m in 2016.
Overall, 146 start-ups raised investment, a 16.8 per cent rise in the number of funding rounds compared to 2015.
According to the research, fintech start-ups raised a combined total of more than $31m, or 24 per cent of all the fundraising recorded in the course of the year.
Reason to invest
According to Tom Jackson, Disrupt Africa’s co-founder, fintech appeals to investors because it checks two boxes. “Investing in fintech start-ups offers investors serious potential returns, given the size of the untapped markets these companies can reach,” he explains “There is also a strong impact angle in that new forms of financial service provision have the ability to empower and connect unserved Africans.”
In terms of location, South Africa – famed for the “Silicon Cape” tech scene centred in Cape Town – was the most popular investment destination in 2016, with 64 of its start-ups taking home more than $46m.
Clearly investors are tapping into Africa’s tech prospects, and looking more broadly at the opportunities on offer.