Exploring the Startup and Venture Capital Landscape in Francophone Africa
Salut!
This is me, trying my hand at some French and giving you a sneak peek into my newfound interest.
It's been a while, and I'm thrilled to share my latest interest with you - the startup and venture capital ecosystem in Francophone Africa. Today, I'm excited to bring you some intriguing insights into what's happening in this dynamic and growing ecosystem.
Snapshot of the Landscape:
According to Partech’s 2022 Africa Tech Venture Capital report, startups in Francophone Africa accounted for just 11% of the $4.9 billion raised across the continent's ecosystem. The region, comprising 13 countries, secured $527 million in equity.
However, it's apparent that Francophone startups face challenges in fundraising compared to their Anglophone counterparts. Startups in the continent’s four main hubs (Nigeria, Egypt, Kenya, and South Africa) cumulatively attracted nearly half of the $4.9 billion in equity that was raised.
Image Source: Hope Mukami
Challenges Identified:
Having delved into Afridigest's analysis on “27 founders that raised over $1 million in Francophone West Africa in 2022” , some key challenges hindering fundraising for Francophone startups include:
Lack of investor familiarity with the Francophone ecosystem.
Language barriers, as most investors are English-speaking.
Smaller market sizes and a slightly less entrepreneurial culture.
Talent shortage within the region.
Contrasting Trends:
In 2023, according to Partech Africa’s 2023 venture capital report. Despite a 37% YoY decrease in funding to $335 million, Francophone Africa constituted 15% of the continent's total equity funding, showcasing a dynamic growth trajectory. Five Francophone countries, including Morocco, Congo, Rwanda, Tunisia, and Senegal, even secured spots in the top 10 of African tech funding! Emphasizing the region's rising appeal and potential.
Exciting News - I'm Here to Help:
Guess what? I'll be lending a hand to startups in Francophone Africa looking to raise funds. Currently, I'm on the lookout for startups ranging from pre-seed to series A within the region. If you know any founder in the region who is raising or has a groundbreaking idea or product, please share this form link with them.
Why Francophone Africa is Attractive:
Widespread use of CFA currency across 14 countries, accounting for 12% of Africa’s GDP.
Francophone countries are among the fastest-growing economies in sub-Saharan Africa according to IMF.
Increasing ecosystem support, including accelerators, incubators, and venture studios.
Enactment of Startup Acts in some countries like Tunisia and Senegal, providing favorable regulatory framework for foreign investors.
Some countries in Francophone Africa share similar regulations, streamlining the process of scaling a product across multiple regions.
Consumers in Francophone West Africa exhibit a lower level of price sensitivity compared to their Anglophone counterparts.
What I'm Looking For:
Idea stage: Unvalidated but sound hypotheses, solving a real problem.
Preseed, seed to seed +: MVP, evidence of traction towards product-market fit, positive unit economics, founders with domain expertise.
Join Me in This Journey:
If you are or know founders fitting these criteria, kindly fill out the form below.
Did I miss anything, or do you have something to share? I'd love to hear from you. Connect with me on LinkedIn or drop me an email.
Looking forward to exploring the world of Francophone startups together!
Very insightful article!