Venture capital: Morocco ranked 6th in Africa in terms of transactions

While the global venture capital market has seen a significant decline in start-up funding, Africa’s venture capital ecosystem has seen 133% annual growth compared to last year’s H1. In the first half of the current year, the continent raised $3.5 billion from 300 companies. According to the 2022 report of the African Private Equity and Venture Capital Association, Morocco is ranked 7th in terms of fundraising and 6th in terms of transactions.

This drop in funding globally can be attributed to pronounced contractions in developed markets in Q2″, explains the authors of the report while detailing that “The United States recorded a -25% contraction in start-up funding compared to the second quarter of 2021, while Germany and France experienced contractions of -39% and -15%, respectively. Further east, the Asian venture capital market has also succumbed to this downward spiral in funding, albeit to a more moderate degree, with China registering a -3% contraction in Q2 2022 compared to the second quarter of 2022. ‘last year“.

The influx of venture capital into Africa shows a marked improvement and a new record for the sector. Egypt managed to position itself at the top of the list with a fundraising of 352 million dollars, followed by Kenya with 330 million and Nigeria with 285 million. In 4th position is the Seychelles with a collection of 164 million ahead of Ghana with 133 million, South Africa 131 million and finally Morocco, 7th in the list with a collection of 108 million.

In terms of deals, Nigeria ranks first with 101 deals closed in H1, ahead of Egypt (63), Kenya (54), South Africa (50), Ghana (21) and Morocco with 11 deals, followed by Tunisia and Uganda with 10 deals each. The financial services sector attracted the most venture capital investments, recording an amount of 1.54 billion dollars comprising 144 deals, while the information technology sector attracted 448 million dollars with 74 operations and 70 operations with a total of 430 million for Industry.

Separately, AVSA says economic growth forecasts for Sub-Saharan Africa in the second half of 2022 also point to a relatively positive outlook. These have experienced a slight increase over the past ten years with a recorded rate of 3.7%. However, these forecasts remain higher to the average growth forecast for Latin America and the Caribbean (2.5%), Europe and Central Asia (2.9%) and the global average of 2.9% in 2022.

However, the results of the last quarter of the current year remain unpredictable, but the recovery is considered promising for the continent especially after the COVID-19 crisis.

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