African VCs and startups are eyeing the Middle East for new capital, but there’s a catch
- African startup funding has declined by over 50% compared to the previous year.
- The UAE has become a significant source of foreign capital for African startups, contributing 4% in 2022.
- Middle Eastern investors are increasingly interested in African ventures, with over 80 investors participating in African transactions.
The decline in African startup funding is concerning, especially considering the continent's reliance on external funding. The emergence of the UAE as a significant source of foreign capital is noteworthy, but it highlights the need for diversification in funding sources. Events like GITEX provide valuable opportunities for African founders to explore new options and forge relationships with Middle Eastern investors. However, building trust and meeting specific criteria remain crucial in securing investments.
