New Telegraph

US Injected Over $2bn Into Nigeria, Others Startups In 2022

The United States of America accounted for over 40 percent of Africa’s venture capital in 2022 with over $2 billion injected into local startups U.S. Consul General Will Stevens has said. Stevens, who spoke at Global Tech Africa Conference On Friday disclosed that the U.S. private sector is playing a vital role in promoting technology in all sectors in Nigeria and other African countries. He said, “U.S. venture capital firms are investing heavily in African tech startups with over 60 and 40 percent of venture capital funding in Nigeria and Africa respectively coming from the United States.

Up to 60 per cent of African startups are incorporated in the United States – this figure is 80 percent when considering Nigeria alone.” According to him, in 2021, African startups raised $4.8 billion which translates to an average of over$1 million every 2 hours, say- ing the United States accounted for over 40 percent of Africa’s VC funding in 2022 with over $2 billion injected into local startups. Speaking on the theme: “Africa’s Development and the Future of Tech: The U.S. Role” Stevens said this year, while VC investments are globally on a decline, U.S. investors like Techstars, Y-Combinator, and 500 have closed over 100 major deals within the first 9 months of the year.

“By these numbers, it is indicative that we have a strong interest in supporting the growth of the digital economy of the continent and clearly, Nigeria is a key market,” he said. He said as a whole, the U.S.-Africa startup/venture capital scene continues to be an immensely important mutually-beneficial bilateral corridor. “At the Consulate here in Lagos, we work with numerous startups to facilitate their participation in incubator and accelerator programs, thereby connecting these Nigerian startups with global markets.

“Beyond these staggering investment figures, U.S. investments in African startups are having a positive impact on the continent. Startups are creating not only jobs – but careers, boosting economic growth, and advancing innovation. Despite all of these success- es, we believe it is still Day 1 in the African tech sector.” Stevens said that U.S. technology companies operating in Africa also play a crucial role in expanding the continent’s access to reliable and secure internet.

He added that Diaspora-led companies such as MainOne and other U.S. technology companies like Google and Meta, have invested millions and partnered with governments to land undersea cables to bring internet speeds of up to 180 terabits per second to Africa. He said; “Meta’s 2Africa cable – the largest subsea cable system in the world, with landings in Asia and Europe, is expected to land in 21 locations across 16 African countries including Nigeria in Lagos and Akwa Ibom.

Early this year, SpaceX launched Starlink in Africa. Today, 7 countries have received the low earth orbit satellite-based internet access service, with an additional 25 countries targeted by the end of 2024.” He disclosed that the U.S. Commerce Department works hand in hand with Nigerian companies to bring the latest U.S. technologies to Nigeria. The Commerce Department also brings Nigerian investors to the U.S. every year for the annual SelectUSA Investment Summit which includes special tracks, networks, and mentorship opportunities for tech and women- led tech startups who want to grow their business in the U.S.

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