The latest Southern Africa Venture Capital Industry Survey highlights the resilience of the ICT sector amidst economic challenges in the region. Despite a decrease in overall deal value in 2022 due to various socio-economic factors, the ICT sector, particularly in information and communication technology, remains a focal point for investor interest and confidence. The survey, conducted by The Southern African Venture Capital and Private Equity Association (SAVCA), underscores the vital role of venture capital (VC) in supporting high-growth businesses and addressing socio-economic issues.
Key findings reveal that the ICT sector accounted for the largest number of deals in 2022, representing 48.1% of total deals. Additionally, it held the highest number of active deals in investment portfolios, primarily in sub-sectors such as FinTech, Software, Telecoms, AgriTech, and Electronics. The survey also notes a growing presence of education technologies (EdTech) in investment portfolios, reflecting the region’s innovative entrepreneurial ecosystem.
The rise of FinTech, surpassing traditional sectors like Food and Beverage, demonstrates the sector’s ability to leverage technology for mass-market solutions and service delivery improvements. Beyond commercial viability, the ICT sector plays a significant role in social development, particularly in areas such as education, healthcare, and governance.
Panel discussions at the survey launch emphasize the importance of balancing financial returns with social impact, addressing issues like unemployment, financial inclusion, and sustainability. The survey forecasts optimism for early-stage investments in the coming year, driven by increased funding for new deals and follow-on investments in existing portfolios.
The SAVCA VC Conference further explores the future prospects of the VC sector in Southern Africa, bringing together industry stakeholders to discuss opportunities and challenges ahead. Overall, the survey and conference highlight the potential of the ICT sector to drive innovation, attract investment, and foster socio-economic development in the region.
