Experts in the tax industry have always reiterated that growing Nigeria’s tax base as lofty as it sounds, depends solely on other underlying factors that should be taken as important as the end goal of raking in more revenue from the non-oil sector. One of such factors is making the system attractive for investors to thrive.
Staying with making the system attractive for investors to thrive, it is pertinent to note that in a recent venture capital data compilation by Startuplist Africa – a data-driven platform that focuses on African start-ups shows that Kenya has deposed Nigeria to become the most attractive destination on the continent for start-ups venture capital investment deals in 2020.
This development shows that Kenya accounted for 25percent of the total start-up investments in Africa in 2020, while Nigeria, Africa’s biggest economy accounted for 23percent of the total. On the flip side, it shows Nigeria as less attractive for start-ups venture capital investment deals in the year under review.
Kenya topped the list of venture capital investment deals with a total of $266million, followed by Nigeria with $237million investments for the period.
South Africa, Africa’s most industrialised economy came in third with $198million investment deals, followed by Egypt and Ghana with $125million and $90million respectively.
Kenya, Nigeria, South Africa, and Egypt remain emphatically Africa’s big four from a funding perspective, accounting for 77 percent of funded start-ups and 89.2 percent of total investment during the period.
The new goldmine
The fin-tech sector was yet again, the most attractive to investors in 2020, with more start-ups securing funding than any other sector and a combined total that exceeded others.
Nigeria’s start-up ecosystem has been gaining lots of momentum in recent years. Lumos, Flutterwave, InfraCredit, Accelerex, and 54Gene topped Nigeria’s most funded start-ups for the period.
You should know that
Five-year data analysis of start-up investment in Africa’s entrepreneurship ecosystem shows that Nigeria has the most deals with a total of $1.74billion, followed by Kenya with $1.09billion.
Nigerian start-ups have continued to scale amid the pandemic as many are now re-strategizing their business model to survive the economic fallout of the pandemic.