REPORT | Francophone Africa Was the Only African Region to Demonstrate YoY Growth in Number of Deals and Investor Participation in 2023

Venture capital funding to Africa witnessed a significant downtrend in 2023 with a total of $3.5 billion raised in 547 deals representing a 46% decline compared to the previous year [2022].

However, according to ‘The 2023 Africa Tech Venture Capital Report‘ by Partech Africa, a global tech investment firm with offices in Dakar, Senegal, and Nairobi, Kenya, French-speaking countries in Africa are now emerging as key investment destinations, a trend that is observable over many years.

In 2023, funding in Francophone Africa amounted to $335 million, reflecting a 37% year-on-year decrease. Despite this decline, it constituted 15% of the continent’s total equity funding, a notable increase from 11% in 2022.

The region displayed resilience in terms of the number of deals, reaching a total of 93 deals and marking a 16% year-on-year (YoY) increase, whereas the continent experienced a significant 32% year-on-year drop. This now accounts for 20% of the continent’s total deals, up from 12% in 2022.


“In 2023, Francophone Africa distinguished itself as a dynamic and growing force in the tech sector, defying broader market trends, and being the only region to demonstrate year-over-year growth both in the number of deals and investor participation,” the report said.

In 2023, five Francophone countries:

• Morocco ($93M)
• Congo ($42M)
• Rwanda ($38M)
• Tunisia ($33M), and
• Senegal ($27M)

secured their spots in the top 10 of African tech funding, highlighting the growing appeal and potential of these markets in the tech sector.


According to Partech:

• A significant portion, 52%, of all African countries that registered a transaction were in Francophone Africa (14 out of 27), marking an increase from 46% in the previous year [2022]
• Additionally, 18 out of the 21 countries in Francophone Africa have secured equity funding since the inception of its tracking in 2014
• Francophone Africa represented 61% of all deals made outside the top four [Nigeria, Kenya, Egypt, South Africa], up from 49% in the previous year [2022]
• Francophone Africa saw a modest 3% YoY increase in investor participation involving 152 investors. This stability in Francophone Africa contrasts with the massive decline seen everywhere else on the continent, where investor participation dropped by 50% YoY. This data suggests that despite broader economic challenges, Francophone Africa has not only retained but also grown its appeal to investors
• As the investment environment matures, many VC firms have emerged with capital dedicated to the continent and some even with a Francophone Africa mandate to actively explore and capitalize on opportunities in these markets. This movement towards a broader range of investment sources marks a significant step towards a more inclusive and balanced investment ecosystem. It aptly reflects the continent’s varied economic potential, leading to a more vibrant startup ecosystem, fueled by a more equitable flow of funding


“When examining investm**ents outside of Africa’s ‘Big Four,’ there has been a drastic shift in investor focus towards Francophone countries. In 2023, these countries accounted for 68% of the Rest of Africa (ROA) equity funding volume, a substantial increase from 38% in 2022.”

– Partech

Additionally, Francophone Africa represented 61% of all deals made outside the top four, up from 49% in 2022.

The Francophone African region covers 21 countries where French is widely spoken and is home to 400 million individuals. Over the years, the region has grappled with unique challenges which have led to a late entry into the tech startup scene, including regulatory complexities, smaller market sizes, talent gaps and notably, the language barrier.

However, the region is now at a turning point. The IMF reports that six of the ten fastest-growing economies in emerging markets are in Francophone countries, signaling an upturn in economic conditions favorable for venture capital and technological progress.

Spotlighting Wave, the only unicorn outside of the Big Four, as a Francophone Africa success story, the report says:

“Wave, the Senegal-based mobile money service, exemplifies the region’s potential. The company was propelled into the billion-dollar valuation club following a $200M funding round in 2021 —a first for Senegal and for any startup outside Nigeria and Egypt. Wave’s strategy to offer better customer experience at a lower cost disrupted the market, particularly in a country with a population of just over 17 million. Though often considered an isolated phenomenon, Wave’s rise to success demonstrates that startups possess the ability to not only flourish within a Francophone market, but also to strategically expand their operations.

With economic zones like the West African Economic and Monetary Union (WAEMU), companies such as Wave can take on the advantage of operating within a collective of countries that share a common language, currency, and regulatory system, emphasizing the necessity for investors to see beyond language barriers and unfamiliarity, and to engage with a market that, in unity, spans a population of more than 400 million.”