Investment experts have revealed why Nigeria have surpassed South Africa and Kenya in startup investments in 2018.
Nigeria has stepped up by two places to dislodged South Africa and Kenya to clinch the first position on startup investments deal in 2018 according to a 2018 Africa Venture capital report by Wee Tracker Research.
Wee Tracker is a global tech media platform with a marked focus on the African technology and startup ecosystem.
Wee Tracker report showed that Nigeria outscored these two nations with a total of 136 deals in 2018 while South Africa was second with 107 deals and followed by Kenya with 73 deals.
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One of the investment experts, Ayo Akinwunmi, head of research at FSDH Merchant who spoke with Businessday, explained that the changes experienced in the economic environment and the high exchange rate regime has created opportunities for few small companies and startup to pick up and then make some foreign products attractive in Nigeria again.
Bridge the gap
He said that many young innovators are catching up with the challenge to bridge the gap, noting that the growth of information communication technology solutions companies is also encouraging many entrepreneurs to develop applications and innovative products to solve problems which are attracting investors.
Wee Tracker report pointed out that the technology and innovative companies in the continent are fast becoming an attractive destination for investors as $725.6 million was invested across 458 deals, a 300 percent huge leap in total funding and over 127 percent increase in the number of deals as compared to 2017.
Another expert, Ibrahim Tajudeen, head of research at Chapel Hill Denham, said that Nigeria’s demography is what is really attracting such startups investments in the country.
He said that major problems of starting a business in Nigeria is funding especially if an entrepreneur lacks the required fund to start the business.