Investors are eyeing a new tier of less funded tech ecosystems in Africa that are steadily rising, especially in Ethiopia, Morocco, Senegal, Ghana and Uganda.
These countries are experiencing an increase in funding interest, stemming from a boost in business friendliness, together with young, tech-savvy populations.
Investors are moving away from the traditional ecosystems of South Africa, Kenya, Egypt and Nigeria, in what could significantly grow the size and value of the emerging market, according to a new report dubbed African Tech Ecosystems of the Future 2021/22.
The report, which analyzed 17 countries, used five parameters to determine its shortlist of potential tech ecosystems: economic potential, business friendliness, human capital and lifestyle, cost-effectiveness and connectivity.
Despite the relatively early stage of start-up ecosystems across Africa, more than $2 billion has been raised over the past two years.