Amid a funding slowdown, African startups are pursuing investment opportunities at the GITEX IMPACT tech show in Dubai, showcasing their diverse funding needs and technological vision.
Event Highlights:
- GITEX is the largest technology fair of 2023, attracting approximately 35,700 visitors from Africa, representing 21% of its total audience
- African startups are engaging with international investors, demonstrating their technological vision and need for capital
- The event provides a valuable platform for startups to connect with potential clients and investors, such as Blink, an Egypt-based mobility road assistance startup seeking to raise $1 million after already securing $270,000 in funding
Investment Opportunities:
The UAE represented the third-largest source of foreign capital for African startups in 2022, contributing 4%
Over 80 Middle Eastern investors have participated in African transactions since monitoring began.
The presence of Middle Eastern investors in African startups rose from 16 in 2019 to 50 last yearChallenges and Opportunities.
African startups face challenges in securing funding, with a significant majority (77%) of venture capital funds directed towards African startups originating from investors outside Africa.
The event highlights the growing connection between African startups, venture capitalists, and investors from or based in the Middle EastIn conclusion, the GITEX tech show in Dubai serves as a valuable platform for African startups to pursue investment opportunities and showcase their technological vision. As global investors pull back their investments, the event provides a crucial opportunity for African startups to explore new funding sources and strengthen their ties with international investors.
In the midst of a funding slowdown, African startups arrived at the GITEX technology fair in Dubai with a range of funding needs, spanning from ambitious multi-million dollar aspirations to more modest requirements for early-stage investments.
Sachin Hanwate, CEO of Agrosahas, an agro-processing company in Uganda, shared his experience, noting that the company is seeking approximately $3.5 million in Dubai to address its primary challenge of insufficient working capital. Agrosahas, founded in 2020, focuses on organic farming, specializing in corn, soybean, and sunflower products. With a goal to integrate technology, including artificial intelligence, to empower collaborating farmers, Hanwate aims to expand operations from the current 10,000 farmers in Uganda to half a million farmers across East Africa.
GITEX, recognized as the largest technology fair of 2023, provided a platform for African startups to engage with international investors, showcasing their technological advancements and capital needs. Last year, the fair saw approximately 35,700 visitors from Africa, constituting around 21% of the total audience, as per figures from the Dubai World Trade Centre.
While some startups, like Agrosahas, aim for substantial funding for expansion, others, like Blue Health Ethiopia, represented by Elias Tadesse, COO, seek more modest investments at the pre-seed stage. Blue Health Ethiopia, a health technology company offering a digital platform for ambulance connectivity in accidents, aims to raise around $270,000 in the pre-seed stage.
Entrepreneurs, armed with a mobile application provided by the Dubai World Trade Centre, have been actively engaging with registered potential investors through the GITEX platform. The entrepreneurs, predominantly from Asia, the Middle East, and Europe, attend numerous meetings and pitch their ideas, with the success of these endeavors expected to materialize in the coming months.
