The number of venture capital deals in West Africa declined by 59 per cent Year-on-Year in Q3 compared to the same period in 2022, a new report has disclosed.
The report by the African Private Capital Association , revealed that the decrease in funding towards venture capital in the region, during the first nine months of 2023 led to a 50 per cent and 59 per cent decrease in the total deal volume and total deal value respectively over the same period in 2022.
In terms of the value of investments, the report showed that African-focused fund managers generated $1.2 billion in deal value during the third quarter of 2023, which was a 16 per cent drop from the same period last year. For instance, the company explained that Africa’s private debt deal value has decreased substantially, going from $580 million in Q3 2022 to $38 million in Q3 2023, further exhibiting the challenges faced by the asset class.