If the report released by Africa Private Equity and Venture Capital Association (AVCA) is anything to go by, the nation’s economy seems to be on the path to greatness as Nigeria was named as number one in the venture capital investments in 2022.

AVCA’s annual report, titled “2022 AVCA Venture Capital in Africa Report”, reveals that Nigeria outperformed other countries that made the list to account for 22 percent. It reads, “By region, West Africa maintained the top spot for the second consecutive year, with Nigeria as the most active country both in the region and on the continent, adding that West Africa attracted the largest proportion of venture capital deal volume in Africa (30 percent), driven by Nigeria which was the most active country by volume at 22 percent.”

On the continent, dealmaking was concentrated in the financial sector, which assumed 31 percent of deal volume and 42 percent of deal value. Also, 77 percent of investors active in Africa’s venture landscape in 2022 were international investors while 23 percent were African investors. During 2022, Africa raised $5.2bn in venture capital across 786 deals, representing three per cent of the total volume and 1.2 per cent of the total value of global venture funding in 2022.

Also, the report reveals that although the volume and value of venture capital in Africa is relatively small compared to other regions such as North America and Asia, it has been growing steadily in recent years and shows potential for further growth in the future.

It is however imperative for the Federal Government to further enable more infrastructural developments in a manner that will reinvigorate business operations. Also, this will enable venture capital businesses to focus more on key economic growth indices like innovativeness, financial provision for the development of new products, access to adoption of new technologies, and ultimately enabling the ease of doing business in a bid to enhance Nigeria’s economic fortunes.

Meiza Nigeria