PAPER

Venture Capital and Digital Entrepreneurship for Economic Resilience in Africa: A Call to Action

SUMMARY

Prior to 2016, when Jumia raised US$493 million to achieve a billion-dollar valuation, Africa had no recognized unicorns. Since then, the continent’s startup ecosystem has attracted growing levels of venture capital funding, leading to the emergence of several unicorns, including Interswitch, Flutterwave, Andela, and Chipper Cash. Despite this progress, venture capital investment in Africa remains negligible compared to established global tech hubs such as Silicon Valley, New York, London, and Hong Kong. Moreover, while countries like Nigeria, South Africa, Egypt, and Kenya account for approximately 80 percent of total capital inflows, vast opportunities exist to develop underrepresented digital ecosystems across the continent. Unlocking this potential requires making these markets more attractive to investors and venture capitalists. This paper explores the synergistic relationship between venture capital and digital entrepreneurship in advancing economic resilience in Africa. By highlighting systemic gaps in funding, infrastructure, and policy, this analysis unlocks strategic pathways for reform and intervention aimed at enhancing resource mobilization, strengthening digital capacity, and fostering enabling environments for African entrepreneurs and their investors.