Investing in Africa – the Gap is of Concern

According to the 2023 Edition of the Africa’s Dynamic Development Report Africa’s sustainable financing gap until 2030 is about $1.6 tn. It estimates that the continent needs additional financing of about $194bn annually to achieve the Sustainable Development Goals by 2030. It further shows that the annual sustainable financing gap is equivalent to 7% of Africa’s GDP and 34% of its investments in 2021. The report argues that when mobilising and allocating investments which are sustainable, African countries need to manage tensions between economic, social and environmental goals such as productive transformation, social inclusion and resilience to climate change.

On the other hand, tech and innovation on the continent are spreading rapidly. Over the years, many sectors have embraced technology to birth novel businesses or transform existing business models. According to Statista, the number of startups in Nigeria alone was estimated to have exceeded 3,360 in 2022. As these sectors prove that Africa is a hotbed for innovation, the conversations continue to revolve around the same subsectors, especially fintech, agritech, edtech, and health tech. From virtual try-on tools and AI-powered diagnostics to AR-enabled product demonstrations, beauty tech innovations are changing the way beauty brands sell, grow, and engage customers. One of the startups exploring gaming innovation in Africa are Kiro’o Games, a Cameroonian startup that develops video games inspired by African culture and mythology.