Startups in Kenya have emerged as the recipients of the highest equity funding from investors across Africa during the initial half of 2023, according to recent data unveiled by Briter Bridges.

The report highlights the top-ranking countries in terms of funding value, with Kenya securing a substantial $520 million, followed closely by Egypt with $510 million. South Africa holds the third spot with $400 million, and Rwanda comes in fourth with $280 million.

Nigeria, despite being a prominent player in the startup scene, takes the fifth position with a funding value of $280 million. However, Nigeria stands out for its remarkable number of deals, leading the continent with a total of 101 deals.

In contrast, Kenya has concluded over 80 deals, South Africa over 60, Ghana over 35, and Egypt over 15 during the first half of 2023.

H1 2023 Africa Investment Report by Briter Bridges

The report underscores the challenges that startups and investors have encountered while seeking funding during the first six months of 2023. The startup funding landscape in the continent has witnessed a decline, totalling $1 billion, in contrast to $1.5 billion in the second half of 2022 and $1.8 billion in the first half of 2022.

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According to the report, there has been a 26% reduction in funding volume from H2 2022 to H1 2023, primarily reflecting a shift in investor focus from growth-stage startups to early and late-stage ventures.

The report further highlights the impact of these challenges, leading to startup closures, fund difficulties in meeting closure targets, and instances of valuation write-downs, resulting in significant staff cuts. Despite the hurdles, the first half of 2023 has marked a significant milestone for Africa's startup ecosystem, surpassing $20 billion in total capital infusion over a span of 15 years.

The publishers of the report emphasize the importance of this achievement while acknowledging the prevailing uncertainty in the investment and innovation ecosystem, prompting discussions about the future of investing in Africa.