The number of jobs created by funded startups across the continent increased to 34,201 people in 2022 from 17,915 in 2021, a new report shows.
According to African Tech Startups Funding Report, 633 startups raised more than $3.3 billion in 2022, increasing by 10% from the previous year, yet the number of employees working at these startups almost doubled.
In comparison to 2021, the number of funded startups has risen by 12.2%. Additionally, the total secured funding for these startups has significantly increased by 55.1%, amounting to US$2,148,517,500, again in comparison to the previous year.
On average, a funded startup employs about 54 people going by the data from 2022, an increase from 32 in 2021.
Here are the stats:
- The biggest number of people employed by funded startups was in Egypt, where 131 such startups provided jobs for a total of 11,153 individuals
- Following in second place was Kenya, with 91 startups providing employment opportunities
- Nigeria, with the highest number of funded startups at 180, ranked third with 6,751 jobs created
- The number of jobs created by funded startups in South Africa, Tunisia, Ghana, and Morocco were 2,691, 993, 872, and 261 respectively, which were significantly lower than the top three countries
This news comes amid continued layoffs by tech companies and startups across the continent, just two months into 2023.
Chipper Cash is reportedly the latest addition to a growing list of Africa-focused companies and crypto companies that have laid off employees in 2023. According to reports, the company has let go of 100 employees, adding to some 50 more that were let go in late 2022.
Besides Chipper Cash, the list includes Jumia, which laid off 900 employees, South African payments startup Yoco, which reportedly laid off 15% of its workforce, and Luno, which laid off 35% of its employees.
In November 2022, Nigerian crypto exchange, Quidax, laid off 20 of its employees in response to what it termed difficult macro-economic conditions. That was the same month Web3 startup, Nestcoin, had to let 30 employees go after its funds were stuck in the bankrupt crypto exchange, FTX.
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