The African Development Bank (AfDB) says Nigeria, South Africa and Egypt have dominated the continent’s portfolio investment market for the past decade.
It also states that the three countries including Kenya, made up about a third of incubators and accelerators and 80 percent of investment in Africa.
The bank divided this into a. with new report entitled “Entrepreneurship and Free Trade, Volume II – Towards a New Narrative for Building Resilience” published on Friday.
This report, a continuation of an earlier report entitled “Entrepreneurship and Free Trade: Africa’s Catalysts for a New Era of Economic Prosperity,” analyzed the state of African entrepreneurship in a global context.
It also shed light on developments and suggested future directions for entrepreneurship in Africa.
The report showed that Nigeria and three other countries dominate the market in terms of the number of incubators and accelerators alongside the percentage of investments.
“All regions and populations have different levels of entrepreneurship, and this is true in Africa as elsewhere. For example, Egypt, Kenya, Nigeria and South Africa account for around a third of the incubators and accelerators and 80 percent of the investments on the continent. “
“While this is not the only measure of entrepreneurship, there are reasons to explain why some countries are moving faster with startups, ecosystem development and commercialization. In the case of these four countries, their economies and populations are larger than those of most African countries, ”reads the report.
The report also found that Egypt, Nigeria and South Africa were among the top three countries on the continent in terms of FDI attraction over the past decade.
According to the report, Egypt attracted about $ 56.2 billion in FDI between 2011 and 2020, Nigeria followed with about $ 45.1 billion, and then South Africa with about $ 41.3 billion between 2011 and 2020.
“The four countries that have the largest investments in startups generally have higher FDI and are among the few countries that have access to the limited portfolio investments that are made in Africa.
“In fact, Egypt, Nigeria and South Africa have ranked as the top three countries on the continent in terms of FDI attraction over the past decade. They also tend to dominate the African portfolio investment market. “