Besides the perception that opportunities for investment abound in Africa, African governments can be credited for efforts geared at “enabling entrepreneurship and investment to thrive,” AVCA says.

An example of such efforts is in Zanzibar where the government is setting up ‘Silicon Zanzibar’ with tax incentives and easier work visa requirements to attract tech companies. A similar low-tax initiative is underway in Zambia, with the aim of making it the “Estonia or Singapore of Africa” as one of those involved described it in April. Flutterwave, Chipper Cash, and Kuda Bank are among scores of startups looking to swoop in and take advantage.

The other ingredient supposedly attracting VC to Africa against the odds of global macroeconomic tailwinds is that the 3.7% growth predicted for sub-Saharan Africa for the second half of this year exceeds the figures for Latin America, Europe, and the global average (2.9%). Taken together, it would not then be surprising that at least 16 Africa-focused VC funds have either closed their raise or have reached a milestone along the process.

When these funds start deploying, AVCA expects their activity will “ensure the moderate short-term health of the industry.” The group expects VC deal volume to hit 900 by year-end, more than a third higher than 2021’s 650 deals.

It may be useful to temper that projection with some unfolding reality. In this year’s third quarter, VC funding for African startups reduced by 53% compared to last year, per The Big Deal, a newsletter that tracks fundraising in Africa. It ended six quarters of positive year-on-year quarterly growth and was the first quarter since Q3 2021 in which Africa did not raise $1 billion. That said, heightened activity in the last three months of this year may yet make up for the dip, producing the record year AVCA projects.

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