Reports indicate that as global investors sought to tap into the growing job spaces in Africa, investments in the continent across different firms doubled in 2021.
According to a report by Briter Bridges, 500 African startups raised a combined $5 billion, reflecting a surge of investor confidence in the continent’s market despite the Covid-19 pandemic raving more opportunities in Africa than any continent.
Firms and businesses from Rwanda featured among the top recipients of investments, underlining the country’s goals to increase the ability of local firms.
Firms from Rwanda that hauled in more money are Ampersand, which is involved in electric motorcycles, and Zipline –which is involved in the delivery of medical supplies using drones and air transport.
Also, organizations that have a presence in Rwanda and received top funding include Zola Electric which is involved in renewable energy, Chipper Cash which is debuting in the fintech sector, Andela, and many more.
It has been established that Zipline raised $250 million for operation expansion, making the firm one of the few companies to cross the $100 million investment mark.
While Ampersand mobilized about $13 million from two rounds of investment to facilitate its expansion beyond Rwanda.
More departments with healthy investor responses included logistics, clean energy, innovative healthcare, agriculture, and e-commerce.
Factors such as the ability to grow fast, proven track record, and experience in respective operations also influenced investments.
The general view has been that African markets that attracted the largest investments were those that had vibrant and early-stage incubation systems as well as early-stage investment frameworks which leads start-ups to be attractive for high growth.