African startups snag $2bn funding in a decade!

African startups have borrowed $2bn in debt financing over the past 10 years, according to a report by Briter Bridges. The report noted that the amount accounted for about 10% of the total funding raised in the period, with the majority going to the big four countries: Nigeria, Kenya, Egypt, and South Africa. The report highlighted the growth of debt financing in the African startup ecosystem over the past five years, as equity funding has declined. It also noted that most of the debt funding is flowing to asset-heavy businesses in sectors such as cleantech, mobility, agriculture, and logistics. Cleantech companies received nearly half of all disclosed debt funding, while around 20% went to fintechs. The report stated that debt funding has become an important alternative to equity funding in the African startup ecosystem, with innovations like convertible notes and revenue-based financing making it more accessible to entrepreneurs.