The SGB Sector in 2017

Investing: East Africa

Investment vehicles in East Africa are declining

Number of Investment Vehicles launched

Most investment vehicles focused on East Africa are regional vehicles

 
Ethiopia
Kenya
Rwanda
Tanzania
Uganda
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
 
12
43
25
27
32

The number of tech start-up deals remained consistent, while average deal-size varied dramatically

  • Deals
  • Average Deal Size

According to Disrupt Africa, 24 Kenyan tech start-ups raised US $32.8 million in 2017, accounting for 17 percent raised in Africa. This represents an 8 percent decrease in the number of deals from 2016, when 26 Kenyan ventures received investment. The average investment size has varied dramatically over the past 3 years, starting at US $2.6 million in 2015, decreasing 85 percent to US $400,000 in 2016, and increasing again by 250 percent to US $1.4 million in 2017. While the agritech sub-sector accounted for more money in 2017, more e-commerce ventures secured backing with five start-ups receiving investment, compared to three agritech ventures.

There were 9 Kenyan rounds over US $1 million in 2017. While these deals may include deals above of ANDE’s US $2 million SGB definition, the average deal sizes indicate that most of the deals would meet ANDE’s criteria.