The African continent encompasses two large parts, the anglophone and the francophone world, with the “big four” startup segment dominated by anglophone countries. Although the historically rooted role and weight of the anglophone markets in the African business environment, the francophone competitors are moving significant steps forward.
The “Big Four” African Powers
According to a recent market analysis, Anglophone startups in Africa continue to attract the most investments, raising $4.8 billion in funding in 2022. Nigeria led the “big four” team with over a hundred startups accounting for $1.2 billion. Kenya reached the second position after Nigeria with $1.1 billion, while Egypt raised $820 million in investments. Finally, South African firms attracted $550 million. Although Egypt isn’t predominantly anglophone, it became part of the “big four” thanks to its yearly fundraising results.
The other side of Africa encompasses three Francophone countries, Algeria with $151 million, Tunisia with $119 million, and Senegal receiving $112 million – a solid market enhancement over past years. The same market trend emerges from digital sectors, such as online gaming and betting. The growth of the French online casinos, poker sites, and bookmakers listed at https://www.jouerenlignefr.org/ witnesses an increasing interest from worldwide casino players towards online French gambling resources, a remarkable achievement paving the way for further success.
Why do Anglophone Markets Dominate Africa?
We should go back through recent history to spot why the Anglophone businesses have established a dominant behavior in Africa.
One of the most accredited reasons is that market size is a significant factor in business success: Nigeria, Kenya, Egypt, and South Africa boast a total population of over 430 million citizens. Thus, investment groups prefer to address their financial efforts in such markets. The population size is a well-promising element that determines the chances to sell more products and reach more buyers.
Another reason that explains the predominance of Anglophone markets in Africa is language. Many startup founders have their headquarters in the US and UK, being more likely to work with English speakers rather than with French partners.
North African Startups Bridging the Gap
Despite the role of Anglophone countries, North Africa is leading the Francophone rise with Tunisia-based AI startups, like InstaDeep, acquired by German biotech firm BioNTech SE in January 2023. New-generation high-tech innovations are paving the way for a profitable rise in the Northern side of the African Continent.
The transition to electricity-driven devices and technologies is towing the Francophone ecosystem to a new funding comfort zone, with new investors turning their eyes on this region’s companies and startups. Francophone companies embracing AI-based technologies seem to inspire new hope for investors, as the exit of InstaDeep demonstrates.
While InstaDeep testifies that even small countries can become home to successful startups, Francophone North Africa raised $1 billion in investments for the first time in history, a remarkable signal that balances are changing on the continent. Cote d’Ivoire raised alone $34 million in 2022 – an unthinkable result for a country that didn’t close a single deal in 2021 – while Togo reached its epic mark with $10 million raised.
To Put It in the Marketers’ Words
According to marketers, the population growth of the Northern region might explain this turnaround. The regional demographics expansion is the golden factor that determines the difference between life and death in every economic and financial ecosystem.
