“African Tech Companies Attracting International Investors, Says Norrsken22


Lexi Novitske, general partner at Norrsken22, a $205 million fund focused on Africa, emphasizes the growing allure of African technology companies and startups to international investors. She asserts that overlooking these opportunities constitutes both inappropriate and short-sighted decision-making.

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Novitske reveals that investors are increasingly contemplating substantial financial commitments to businesses across the continent, with this trend becoming particularly evident in the first quarter of the current year. She attributes this heightened interest to the perceived healthiness of many African companies compared to their counterparts in other markets.

Despite a sharp decline in venture capital inflows to African tech companies last year, with the figure dropping to $4.5 billion in 2023—a 31% decrease from 2022—Novitske remains optimistic about the future. She explains that the ongoing development of high-quality functional platforms by African companies, even amid challenging economic conditions, continues to excite international investors.

Novitske anticipates that the volume of financial investments in African firms will surpass pre-2020 levels soon, although she cautions that it may not reach the peak levels observed in 2021-2022. She predicts that investors will return to Africa with greater diligence, seeking more reasonable valuations and deeper involvement in company activities.

Norrsken22, established in 2022, has already invested in six African companies, including neobank Tyme Group, with three additional investments in progress. The fund aims to expand its portfolio to 20 firms by the end of 2025, focusing on companies offering lean technology solutions such as web platforms, software, and artificial intelligence.

With backing from 30 founders of unicorn companies, Norrsken22 targets investments in Egypt, Nigeria, Kenya, and South Africa. Novitske highlights the fund’s particular interest in digital payments and neobanks in Francophone West Africa, citing a regulatory shift that is expected to accelerate the adoption of digital technologies across the continent in the next five years.

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