According to the World Economic Forum (WEF), South Africa is one of the top four start-up powerhouses leading Africa in successful technology investment.
The non-governmental global body stated that 92% of Africa’s investment in technology is won by Nigeria, who takes the lead, Egypt, Kenya and South Africa. These four countries account for about a third of the continent’s start-up incubators and accelerators.
The big four reportedly receive 80% foreign direct investment.
Since 2015, South Africa reportedly has successfully acquired more than 35 technological start-ups, accounting for a third of the acquisitions.
According to the report, South Africa saw a 66% growth in e-commerce in 2020, and further indications are that in order to compete and even scale, small and mid-size enterprises (SMEs) are in need of affordable access to the internet.
Currently, SMEs that have limited or no access to the internet are stunted in their ability to increase their market share and reach new and wider audiences.
Africa’s internet penetration is currently recorded at half the global average of 62,5%, and is being highlighted as one of the factors hampering the growth of aspiring tech-based entrepreneurs.
