Despite the global economy reeling for months from soaring inflation and the commodity and energy price shocks stemming from war in Ukraine, venture capital has continued to pour into Africa’s tech sector. From January to May this year, African start-ups received US$2.7 billion in funding — more than double the levels of the same period in 2021. The bulk of the money has come from US investors targeting firms in Egypt, Kenya, Nigeria, and South Africa, tech hubs in, respectively, the north, east, west, and south of the continent. Inflows to other African locations additionally grew by 382 percent year-on-year compared to 2021, a year in which African tech start-ups already raised a record US$5 billion — some 60 percent of that flowing toward fintechs.
Analysts suggest the pace of investment into the sector may slow if investor-originating countries like the United States dip into recession due to looming interest rate hikes meant to cool runaway inflation. However, the fundamental strengths and long-term viability of Africa’s fintech sector remain undeniable.
More attention is also being paid by investors to startups operating in other sectors such as logistics, blockchain, education, and green energy. Blockchain startups in Africa, for instance, raised $91 million in the first quarter of 2022, representing eleven times growth compared to the first quarter of 2021 according to a report by blockchain investment firm Crypto Valley Venture Capital (CV VC) and Standard Bank.
What is almost certain is that African startups’ share of global venture funding will continue to rise.
AUC project’s ecosystem consists of various digital financial platforms.
① Payment Gateway (E-PG)
③ Blockchain Identity and Qualification (E-DI)
④ Big Data Analysis (E-BA)
⑤ Digital Asset Exchange Development and Management (Digital Asset Exchange)
⑥ AUC Token
Our ecosystem is independently constructed, but each is organically connected and operates interconnected.
Currently, many global and African VCs are very interested in the AUC project. Let’s wait and see what happens in 2022.