Fintech investment surged to over $1.5bn in 2021 and 2022, with 85% of it flowing to companies in the B2C fintech segment, according to our estimates. This means that less than 15% of total investment went to traditional banks undergoing digital transformation and the start-ups building the infrastructure needed to sustain such widespread digitalisation.
Despite this disparity, the ongoing adoption of digital financial services and the increasing commitment of banks to embrace digital transformation presents a compelling opportunity for Africa’s overlooked banking infrastructure start-ups to emulate the success achieved by the B2C fintech segment.
With the shift towards renewables and net zero becoming ever more urgent, the solar manufacturing industry presents an invaluable opportunity for governments and private investors to participate in the energy transition and positively impact local economies by creating jobs and fostering climate tech hubs – all while realising attractive returns.
Our latest blog highlights that despite certain obstacles climate fintech has the potential to revolutionise the entire climate tech industry and accelerate the growth of climate tech initiatives by providing the necessary financial support, data analytics, and risk assessment tools.
The Gulf States are in a favorable position to capitalise on climate tech opportunities due to their increasing oil revenues and emphasis on diversification. Four of the world’s top ten Sovereign Funds are based in these countries, and they have been actively participating in private markets, establishing themselves as a top investment and commercial hub.
While the next-gen hydrogen (H2) economy is still in its infancy, it is attracting abundant interest from strategic and financial investors alike. The current H2 investment pipeline exceeds $240bn through 2030, an investment increase of 50% since November 2021.
Investors are exercising greater caution when it comes to committing significant amounts of capital to Africa, despite the existence of numerous African companies with considerable growth potential that require additional funding to expand. This has resulted in nearly all significant African growth companies compelled to consider potential M&A mergers or exits alongside their fundraising plans
Climate tech investment fell by 56% in Europe, similar to the global decline, with almost every sector attracting less capital and the number of funding rounds also decreased significantly in Q1 2023 compared to the same period last year.
Investing in Nigeria has become harder due to economic uncertainty, inflation, managed exchange rate concerns, and political uncertainty. However, our recent blog post explains that some macro factors are expected to improve gradually in 2023, offering hope for Nigeria’s tech businesses. We anticipate that the next $1bn of capital will fuel growth and expansion in certain key tech sectors.
The electric vehicle (EV) revolution is rapidly gaining momentum, with the number of EVs on the roads expected to skyrocket over the next 15 years. According to a joint report from Eurelectric and Ernst & Young, 130 million EVs will hit Europe’s roads by 2035
We expect the potential in commercial and industrial solar in Africa to be significant, with the World Bank estimating a required cumulative investment of $90bn by 2030 for solar mini grids for Africa, making it a significant opportunity for investors to support the development of renewable energy while generating attractive returns.
We can see Space Tech investment surpassing $7.5bn this year, despite the downturn across many other sectors in the market and the global space industry is expected to reach $1.4tn by 2030, and these current levels of investment will have to persist and accelerate to reach that goal.
Surviving & thriving after the Lagos State ride hailing ban
Solving Africa’s broken retail supply chain
Investing in Africa’s female founders
Transforming pharmacies into the ‘care co-ordination infrastructure’ for Africa
Tackling Africa’s $300bn logistics supply chain
Navigating Pan-African Growth
Dare Okoudjou talks about building a pan-African payments company
Last month, after a prolonged hiatus due to COVID-19, DAI Magister, in partnership with DAI Nigeria, held its first Development […]