Homegrown African VCs emerge to fill in the gaps foreign investors cannot
- Accelerated activity in the African startup scene is reported in regions beyond the traditional markets of Egypt, Kenya, Nigeria, and South Africa.
- Foreign VC firms accounted for 77% of total funding in 2022, highlighting the need for more local fund managers.
- Entities such as Dream VC, the Obuntu Foundation, Proparco, and the Africa Venture Philanthropy Alliance are bridging the local VC gap through tailored programs to cultivate the next generation of fund managers in Africa.
The expansion of the African startup scene beyond the traditional markets is a positive development for the continent's economy. However, the reliance on foreign VC firms for funding poses risks, as demonstrated by the impact of tighter markets on foreign interest. The push for more local fund managers is crucial for long-term sustainability and to ensure that the African startup ecosystem can thrive independently.
