A research by a blockchain-based mobile network operator, World Mobile shows, has concluded that investment into tech startups in Africa would double by 2025 reaching $10bn.
The research, which used African business leaders as its respondents forecast a surge in spending on tech start-ups as foreign direct investment and improved internet connectivity is reshaping Africa into a tech superpower.
“More than half (54%) of African senior executives expect spending on tech start-ups on the continent to more than double by 2025 to $10 billion or over compared with the $4.9 billion raised last year. While around one in six (16%) believe more than $15 billion will be raised.”
While stating that around three-quarters (75%) believe the investment would come from western countries and 66 per cent banking on China as a major source of investment, six out of 10 (57%) agree that dramatic improvements in internet connectivity would be the main support for expansion as it drives education, healthcare and business.
“The research among senior executives at companies with average annual revenues of $70 million based in Tanzania, Angola, Botswana, Cameroon, Ethiopia, Ghana, Nigeria and South Africa found nearly half (45%) believe Africa will be a tech superpower within 10 years. They point to the development of Africa’s tech ecosystem – nearly 90% of those interviewed expect it to grow by at least half its current size in the next three years with 15% expecting it to double in size during that period.”
Speaking, the CEO of World Mobile, Micky Watkins, said Africa is seen as ripe for economic expansion by its own business leaders and technology will play a vital role in delivering the development and the potential is huge as currently Africa only accounts for 0.2 per cent of the global money invested in technology start-ups.
