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Venture capital deals in Africa declined by $1.4 billion in first 6 months of 2023

Published

1 year ago

August 8, 2023

A recent report by financial thinktank, African Private Capital Association (AVCA) revealed that the continent recorded a $1.4 billion decline in venture capital deals in the first six months of 2023.

Throughout the venture ecosystem of the continent, just 263 VC deals were completed, allocating a total of $2.1 billion in cash to 258 different companies. This demonstrates that every investment stage had severe reductions in both volume and value.

Comparing this to the $3.5 billion raised over the same time period last year, there has been a 40% decrease in both volume and value.

Venture capital (VC) is a sort of private equity and financing provided by investors to start-up enterprises and small businesses with the potential for long-term growth.

The research shows that investors are now taking a more prudent approach to investing in Africa. In addition, only five mega-deals generating slightly over $1 billion were made between January and June, suggesting that VC investors were wary of large fundraising rounds.

In contrast to the almost 50% loss experienced in all other regions, Southern Africa showed resiliency during the first half of 2023, weathering the storm with a relatively milder 9% decline in deal value.

On the other side, East Africa saw the greatest drop in deal value (76%) in H1 2023, a stark contrast to the outstanding results seen in H1 2022. Similar patterns were seen in West Africa as well, where the value of deals fell by 59%.

Related Topics:Africa Featured Venture Capital

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VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”