African fintech startup funding fell by one-third in an extremely difficult 2023, but the sector remains way out in front as the investor favourite within the wider African tech space. After bucking global trends in a record-breaking 2022, African tech saw a reset of sorts in 2023, as the global capital shortage began to bite. The number of funded ventures, and the total funding raised, declined for the first time since 2016, though not as dramatically as many had feared. Essentially, the fall in fintech funding mirrored that of the general market, meaning there were plenty of sectors that suffered more badly. Nine sectors saw larger percentage drops in total funding, including, in the case of e-commerce and retail-tech, its traditionally largest competitor, which saw the biggest decline of all at almost 80 per cent.

Source: The North Africa Journal February 19, 2024 06:19 UTC