Representation of local African founders, and female founders, remains a challenge in the African startup funding space. While it is a positive sign that African companies are attracting international investors’ attention, only 20 percent of private investment into African startups and companies came from Africa-based investors during the last five years. Further, eight of the top 10 African startups that attracted the most capital in 2019 were led by foreigners.
These figures get more concerning when considering the number of women-led or co-founded startups in Africa. Although 25 percent of all sub-Saharan African women are engaged in early-stage entrepreneurial activity, women-led startups receive a fraction of the investments compared with their man-led counterparts. This year’s projected drop in funding for African startups is a perfect opportunity for the investment community to reflect on these trends and make changes for the coming surge of financing needed for the post-COVID recovery.
Read more: GreenBiz