E-Business
African Tech Start-up Funding Passes US$700m in 2020
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2020 was a record year for investment into the African tech start-up ecosystem, with more start-ups raising more money, from more investors, than ever before.
This is according to the sixth edition of the annual African Tech Startups Funding Report 2020 released by start-up news and research portal Disrupt Africa, in partnership with Catalyst Fund, RTB House, Quona Capital, 4Di Capital, Villgro Africa, Lateral Capital, and Otundi Ventures.
The report finds that new funding records were set over the course of 2020, as 397 start-ups raised an impressive US$701.5-million in total funding. Both these figures are up substantially on the previous year, with the number of funded start-ups increasing 27.7% on 2019, and the funding total growing by 42.7%.
Though growth has slowed a little, the numbers represent impressive growth on 2019 in spite of the COVID-19 pandemic, and mean the African tech start-up ecosystem continues on its positive trajectory from a funding perspective.
This year’s edition of the report also counts at least 370 active investors, marking 42.8% growth on the previous year, when the data tracked 261 investors. This figure was in itself a 68.4% rise on the 155 investors found in 2018.
“Kenya, Nigeria, South Africa and Egypt remain emphatically Africa’s “big four” from a funding perspective, accounting for 77 per cent of funded start-ups and 89.2 per cent of total investment.
“Nigeria (85), Egypt (82) and South Africa (81) lead the way from a ventures perspective, but when it comes to total combined raised capital it is Kenya that is Africa’s leader, with start-ups from the East African country raising over US$190 million in funding in 2020,” according to Disrupt Africa.
Though these markets remain clear leaders, there are signs of growing activity elsewhere on the continent, with start-ups backed in 24 African countries, up from 19 in 2019, 20 in 2018, and 18 in 2017.
The financial technology sector was, yet again, the most attractive to investors in 2020, with more start-ups securing funding than any other sector and a combined total that dwarfed all others, research shows.
“In all, 99 Fintech start-ups raised investment over the course of the year, representing 24.9 percent of the overall total, while the combined amount raised by Fintech companies over the course of the year jumped 49.3 percent to US$160,319,065,” Disrupt Africa continues.
However, growth in Fintech investment is slowing to some extent, and other sectors also had impressive years – notably e-commerce and retail-tech, e-health, logistics, energy, recruitment and HR, transport, and agri-tech.
“The growth in funding seen across the continent’s tech ecosystems in 2020 is extremely strong, and all the more impressive given the circumstances of the year given COVID-19 and its many implications.
“As African startup funding passes the $700 million mark for the first time, and more investors pump more money into more markets than ever before, there are no signs of the sector slowing down,” said Gabriella Mulligan, co-founder of Disrupt Africa.
E-Business
South Korea Joins List of Countries Banning DeepSeek over Security Concerns
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South Korean authorities have temporarily blocked new downloads of the DeepSeek artificial intelligence (AI) app, citing concerns over the company’s handling of user data.
The country’s Personal Information Protection Commission (PIPC) announced the decision on Monday, saying that the Chinese AI startup had failed to fully comply with South Korea’s data protection laws.
According to PIPC, DeepSeek recently appointed legal representatives in South Korea and admitted to partially neglecting regulatory considerations regarding user privacy.
“The Chinese startup appointed legal representatives last week in South Korea and had acknowledged partially neglecting considerations of the country’s data protection law,” the PIPC said.
The commission added that the app’s service would resume once the company implements improvements in accordance with national privacy laws.
According to Reuters, when asked about South Korea’s move, a spokesperson for China’s foreign ministry said the Chinese government prioritises data privacy and security, ensuring compliance with legal standards.
The spokesperson also said China does not require companies or individuals to collect or store data in violation of laws.
The ban follows similar actions by other governments.
On February 4, Australia prohibited the use of DeepSeek on government devices due to security concerns.
Italy’s privacy regulator recently blocked the AI service, citing the company’s failure to address data policy issues.
Taiwan has also warned about potential risks related to cross-border data transmission and information leaks.
Also, regulators in Ireland and France have launched investigations into DeepSeek’s data-handling practices.
DeepSeek gained global adoption for its advanced human-like reasoning capabilities and open-source model.
In January, it surpassed OpenAI’s Chatgpt as the most downloaded free app on the Apple store.
E-Business
AU Endorses Nigeria as AfCFTA Digital Trade Champion
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The African Union (AU) has officially designated Nigeria as the Digital Trade Champion under the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol, citing the country’s leadership in digital enterprise and innovation.
The endorsement came at the 38th Ordinary Session of the Assembly of Heads of State and Government, which concluded on Sunday in Addis Ababa.
Nigeria’s proactive role in advancing the digital trade protocol, adopted in February 2024, was a key factor in the decision.
The AfCFTA Digital Trade Protocol encompasses eight annexes covering crucial areas such as rules of origin, digital identities, cross-border data transfers, online safety, and financial technology. The protocol is expected to provide a robust framework for Africa’s digital economy.
According to a statement issued on Monday by Special Adviser to the President on Information and Strategy, Bayo Onanuga, former President of Niger Republic and AU AfCFTA Champion, Mahamadou Issoufou, praised Nigeria’s leadership, particularly for convening the Digital Economy Roundtable in January.
“No organization, region, or continent has negotiated or adopted such a comprehensive legal instrument on digital trade, positioning the African continent to benefit from the digital economy for innovation and job creation,” Issoufou said in his progress report to the AU Assembly.
He also highlighted Africa’s growing influence in digital innovation, particularly in mobile banking and financial technology, and noted that the protocol would create an enabling environment for young African entrepreneurs.
“The AfCFTA Protocol on Digital Trade will establish a conducive environment for these young people to fully participate in Africa’s digital economy,” Issoufou added.
Reflecting on the roundtable in Abuja, he commended President Bola Tinubu and his administration for facilitating discussions with key stakeholders.
“The Roundtable was attended by young pioneers in Fintech, mobile banking and other areas of the digital economy. It was evident from the discussions that young people are eager to take advantage of Africa’s digital economy through the AfCFTA Protocol on Digital Trade”, he said.
Speaking at the AU summit, Nigeria’s Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, described the AU’s endorsement as a milestone in Africa’s economic development.
“Africa has demonstrated global leadership by pioneering the first-of-its-kind AfCFTA Protocol on Digital Trade—establishing a comprehensive regulatory framework,” Dr. Oduwole stated.
She emphasized that the protocol is a “game changer” for the continent, predicting that it would generate millions of jobs, contribute billions to Africa’s GDP, and attract significant investments in digital infrastructure.
E-Business
Schmidt, Ex Google Chief Says AI Risky in Terrorist Hands
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Eric Schmidt, former Google CEO has expressed concerns about the extreme risks posed by artificial intelligence (AI) falling into the hands of terrorists or rogue states.
![Schmidt, Ex Google Chief Says AI Risky in Terrorist Hands](https://i0.wp.com/www.nigeriacommunicationsweek.com.ng/wp-content/uploads/2025/02/Eric-Schmidt.jpg?resize=573%2C254&ssl=1)
Eric Schmidt, former Google CEO
He warned that nations such as North Korea, Iran, and Russia could adopt AI technologies to develop weapons capable of causing significant harm, including biological weapons.
Schmidt urged governments to oversee private tech companies, emphasising, “The real fears I have are not the ones most people discuss about AI, I talk about extreme risk.”
“I’m always worried about an ‘Osama Bin Laden’ scenario, where truly evil individuals take control of some aspect of modern life to harm innocent people,” he added.
With private companies driving AI advancements, he stressed the need for careful government monitoring and regulation. “It’s really important that governments understand what we’re doing and keep their eye on us,” he said.
His remarks followed a two-day AI summit in Paris, where the UK and the U.S. declined to sign a communiqué outlining the future direction of AI. The declaration on “inclusive and sustainable artificial intelligence for people and the planet” was endorsed by 57 countries, including India, China, the Vatican, the EU, and the African Union Commission.
The UK justified its decision, stating that the agreement lacked “practical clarity” on global AI governance and national security concerns.
Schmidt supports U.S. export controls restricting the sale of advanced AI microchips to certain countries, aiming to slow adversaries’ progress in AI research.
He also highlights the importance of international collaboration on AI safety, suggesting that cooperation with nations like China is essential to addressing global AI challenges.
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