In August, GDP growth, bank interest rates and inflation across Egypt, Nigeria, Morocco, Kenya, and Ghana exhibited varying trends. Kenya had the highest GDP growth rate while Morocco had the lowest. Inflation remained highest in Nigeria and lowest in Morocco while MPC rate remained highest in Ghana and lowest in Morocco. Morocco had the highest unemployment rate while Ghana had the lowest.
August was a slow month for VC compared to July. Only 13 startups, compared to 20 in June and July, raised capital. Amount raised in August was 7 times lower than the previous two months. South Africa had the highest number of startups raising capital (4), but still way below Egypt’s performance in July (10).
There was more startup activity in the form of mergers, acquisitions, partnerships and rebrands in August compared to July. The most notable activity was that of Jumia completing the sale of secondary shares at a value of close to $100M.
Global geopolitical developments such as the current US presidential campaigns and the war in Gaza are expected to have an impact on African economies.
South Africa led in the number of startups that raised capital in August (4). South Africa also led in the amount of VC raised in August (32.25M). Fintech continues to have the highest number of startups (6) receiving VC funding.
In June and July, over $468M was invested in 20 tech startups all across Africa. That was 7 times higher than the amount raised in August.
