According to projections made at the seventh edition of Digital and Technology Week (DTW), formerly known as Social Media Week, in 2022, annual financing for Kenyan start-ups will reach Sh100 billion.
The Digital and Technology Week (DTW) four-day event gathered over 600 participants throughout Africa, including corporates, agencies, Government, Media, and Technology businesses both local and International.
“Such events bring life to the industry. As the government, we assure you of our support in creating an environment for startups to thrive. We are on the road to equipping more than 2 million young Kenyans with the necessary digital skills to help start-ups go to the next level, and we will continue to create supportive policies in a bid to increase investments in this area.” Maureen Mbaka, ICT’s Chief Administrative Secretary.
Kenyan startups raised Sh48 billion in venture capital in the first three months of 2022, which is more than they did in the entire year 2021 when they raised Sh41 billion.
With Nigeria leading the way with Sh 60 billion, Kenya is now one of Africa’s Big Four countries drawing significant funding.
Go Gaga Experiential Chief Executive Officer Norah Muthoni Mumo stated that start-ups dealing in payments and remittances will attract the biggest amount of investment during the opening ceremony of Digital and Technology Week in Nairobi.
How to pay and get paid affordably is a significant fundamental issue that is addressed by the payment and remittances sector. The space has huge companies with outstanding track records, and investors appreciate spaces that have proven their value and have already attracted big investors.
She credits the predicted development to investment from corporate Kenya in accelerators, incubators, and innovation programs as well as investments in innovation finance paired with a growing community of successful investors, and entrepreneurs.
“Kenya is a leading hub for entrepreneurship on the continent because of a growing number of engaging international investors, a huge population with access to technology, and a growing number of startup support organisations active in the ecosystem,” Ms. Mumo.
She noted that governments in Africa must make investments in this area by lowering the regulatory burden, incorporating incentives into the law, and funding the development of scientific and technology capabilities.