The document summarizes the growing African tech ecosystem, including: - Africa is experiencing strong economic and digital growth with large markets and young populations. - Venture capital funding to African startups has increased significantly in recent years, with over $366 million invested in 2016. - Key sectors attracting investment include fintech, e-commerce, off-grid energy, and education technology. Countries like Nigeria, Kenya, and South Africa capture the majority of funding and exits.

1. 1
THE RISE OF THE AFRICAN
TECH SCENE
Bilal Djelassi
@bilal_zindje
Associate
Sami Machta
@SamiMachta
Data Analyst

2. 2
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
The narrative on Africa is shifting

3. 3
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
Africa is living an economic, demographic and digital revolution…
6 out of 10
world fastest growing
economies
$678Bn
market size for
consumer spending
in 2020
1.2B
People
2016
200m
15-24 years-old
Youngest population
in the world
2.5B
People
2050
1Bn
Smartphones by 2025
63%
of active mobile
money users
worldwide
Mobile drives
innovation
59%
mobile
1%
Fixed line
x15
of mobile data traffic
from 2015 to 2021.
Internet connection is
mainly mobile in
Africa
The leapfrog
continent
Source: Word Bank, United Nations, EY’s attractiveness survey Africa 2015.
Source: GSMA 2016. ICT facts and figures 2015.

4. 4
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
…and Orange wants to leverage its major assets to foster the
African tech ecosystem
Comm-
unication
connectivity
fintech
e-commerce e-energy edtech
agritech
healthtech e-gouv
logistic cloud content
€50M
Orange Digital Ventures Africa
Dakar, Paris, London, San Francisco
dedicated to African startups
+35m customers
€24Bn transaction
volume in 2017
Orange in Africa
110M
customers
700k
Point of sales
22
countries
Investment scope

5. 5
The African Tech Ecosystem

6. 6
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
A well-structured African ecosystem is emerging
Financing
Connecting
Covering
Accelerating /
Incubating
http://bit.ly/2z8K9Ij
The African
Ecosystem
Tech
International investors

7. 7
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
85+ venture investors are backing the African tech scene
27+
41+
17+
Many investors participate accross different stages: 27 focused on Seed, 9 focused on Seed & Early Stage, 32 focused on Early Stage, 11 focused on Early stage & Growth stage, 7 focused
on Growth stage
Seed
Early Stage
Growth Stage
You can access to our database here http://bit.ly/2z8K9Ij

8. 8
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
1 out of 2 venture program was launched in the last 5 years
7
25
45
2003-2007 2008 - 2012 2013 - 2017
x6.4 venture investment program in 15 years
55%
of investor offices in Africa are located in South Africa,
Kenya and Nigeria

9. 9
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
Tech hubs – by GSMA
13%
of Tech hubs have partnerships
with mobile operators in Africa
50%
of Tech hubs are concentrated in 5 countries
South Africa, Kenya, Nigeria, Egypt and Morocco
70
170
314
Source: Afrilabs for 2012, BongoHive for 2014, GSMA for 2016
x4.5 Tech hubs in Africa between 2012-2016
2016
2014
2012
To find out more read the great study of GSMA here:
https://www.gsma.com/mobilefordevelopment/programme/ecosystem-accelerator/things-
learned-tech-hubs-africa-asia

10. 10
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
Key people to follow - by TLcom Capital
Financing
The entire list here: http://tiny.cc/AfricaTech_ViewTlcom Capital, Ido Sum 2017. “Show Me The Money” Africa Tech Open Data Base
Tidjane Deme
Cyril Collon
partechventures.com
Wale Ayeni
Ido Sum
Gregoire de Padirac
Marieme Ndeye Diop
digitalventures.orange.com
Maxime Bayern
Lexi Novistske
singularityinvest.com
tlcomcapital.com
Toro Orero
ddf.capital.com
Nnena Nkongho
digameinvestment.com
gsma.com
ifc.org
Covering
Accelerating / Incubating
Connecting
Ammin Youssouf
afrobytes.com
Andrew Fassnidge
appsafrica.com
jokkolabs.net
techstars.com/programs/barcl
ays-cape-town-program/
Kresten Buch
88mph.ac
Tapiwa Nyandoro
impacthub..net
Greg Rogers
Karim SY

11. 11
Investments and Exits

12. 12
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
African tech investment are booming – by Partech Ventures
276.6
366.92015 2016
x8.7 of VC funding in Africa from 2012 to 2016
Excluding mega-deals above $100M+ such as Jumia and debt/grant transactions
+33%
Funding growth
compared to 2015
+40%
2015: 55 deals
2016: 77 deals
18.4
65.2
55.7
37.531.7
89.9
77.7
165.7
Seed+ Series A Series B Growth
2015 2016
x4.4 in Growth funding
$0.8M
in
average
$3.7M
in
average
$11.1M
in
average
million dollars
million dollars
To find out more, read Cyril Collon’s article from Partech Ventures:
https://www.linkedin.com/pulse/vc-funding-raised-african-tech-startups-totals-record-cyril-collon/

13. 13
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
Off-grid tech
37%
Fintech 19%
InsurTech 1%
E/M
Commerce
16%
EdTech 8%
Shared Economy
8%
Entertainment 5%
HealthTech 2%
Personal Services
0.4%
Enterprise 2% Hi-Tech 1%
Connectivity 1%
0.8
1.0
6.5
8.7
9.2
12.9
13.0
16.0
92.7
96.8
109.4
Tunisia
Morocco
Senegal
Ghana
Egypt
Tanzania
Ivory Coast
Rwanda
Kenya
South Africa
Nigeria
79.4% of VC investments are in 3 countries72% of VC investments are in 3 sectors
African tech investment are booming – by Partech Ventures
To find out more, read Cyril Collon’s article, from Partech Ventures:
https://www.linkedin.com/pulse/vc-funding-raised-african-tech-startups-totals-record-cyril-collon/
million dollars

14. 14
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
Africa is on track to produce intercontinental champions
Nigeria
raised $702M
E-commerce
Kenya
raised $151.8M
Pay as you go Solar
electricity
Disclosure: Orange is an investor in Jumia and Afrimarket
Early Stage Growth Stage
Nigeria
raised $92M+
Payment processing
Source: Crunchbase
USA
raised $81M
Recruiting and training
of African developers
Tanzania
raised $118M
Pay as you go Solar electricity
Ghana
raised $11.6M
Drug benefits and inventory
manager for insurers
South Africa
raised $24.2M
Mobile money
France, West Africa
raised $15M
Cash-to-goods, E-commerce
Kenya
raised $11.2M
Mobile money
Kenya
raised $6M
SMS, voice, USSD
functionality across mobile
Kenya
raised $10M
Payment platform based on
blockchain
Nigeria
raised $13M
Mobile money

15. 15
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
The pace of exits has accelerated over the last few years,
offering more liquidity opportunities to entrepreneurs and investors
Mix Telematics is a global provider
of fleet and mobile asset
management solutions delivered as
software-as-a-service, or SaaS
South Africa
1 IPO in 2013
4 M&A realized by Naspers, one of the
most active african-based acquirer
South Africa
Naspers is a multinational media and
internet group with technology
investments and operations in more
than 130 markets
Source: CB insight and Orange Digital Ventures research *Data collection was stopped in mid-october 2017
*
+26.7% M&A from 2014 to 2017
30 28
35
38
2014 2015 2016 2017

16. 16
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
5%
6%
8%
9%
51%
Morocco
Egypt
Nigeria
Kenya
South Africa
Source: CB insight and Orange Digital Ventures research *Data collection was stopped in mid-october 2017
*
E-commerce
Fintech
Connectivity
Communication
21%
18% 17%
69% of exits in 3 countries over the last 4 years
…
M&A is concentrated in key sectors for the ecosystem
56% of exits in 3 sectors over the last 4 yearsThe split of acquisition by sectors is
quiet stable
7
4
7
9
3
6
7
9
4
7
5
7
2
3
5
3
6
3
2
1
2 1
4
5
4
1
1
2
1
1
1
2
2
1
1
1
1
2014 2015 2016 2017
E-education
E-health
E-energy
Jobbing/HR
Logistics
Cloud
Content
Marketing
Enterprise Solutions
Fintech
E/m-commerce
Connectivity/communication
Financial
inclusion
Access to goods
and services
Connecting
people

17. 17
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
Some notable exits
Exits
USA
Off-grid technology
2017
South Africa
eCommerce
South Africa
Fintech
2017
2015
2014
South Africa
Fintech
Kenya
Content
Kenya
Content
2014
2016
2016 2011
France
National Gas distribution
South Africa
Media and Technology
United Kingdom
Asset Management
United Kingdom
Utility Products and Services
Provider
Switzerland
Media
France
Media
USA
Semiconductors Manufacturing
Kenya
Connectivity
Rwanda
Fintech
Rwandan subsidiary
Telecommunication

18. 18
Appendix

19. 19
@Orange_DV ; @bilal_zindjedigitalventures.orange.com
Sources on African tech ecosystem
Tech hubs
GSMA, Victor Du Boucher, 2016. A few things we learned about tech hubs in Africa and Asia
https://www.gsma.com/mobilefordevelopment/programme/ecosystem-accelerator/things-learned-tech-hubs-africa-asia
Investment funding
Partech Ventures, Cyril Collon, 2017. VC funding raised by African tech startups totals record breaking US$ 366.8 million in 2016
https://www.linkedin.com/pulse/vc-funding-raised-african-tech-startups-totals-record-cyril-collon/
People to know
Tlcom Capital, Ido Sum 2017. “Show Me The Money” Africa Tech Open Data Base
https://docs.google.com/spreadsheets/d/15H6mSK-bkH-wFdjSx2shUwikCSCpZyukBjeC0-b8QOI/edit#gid=1457437020
Methodology for investor database and exits
Ecosystem database
We’re please to share our database of accelerators, incubators, investors and tech hubs via this link http://bit.ly/2z8K9Ij ; any feedback to update it
will be highly appreciated
Investors
 We have only retained venture program with reliable information such as a website, recent investments and team members
 We define a venture program as a fund or any organization with a strong focus on investing into African startups
 Private equity funds investing occasionnaly in technology companies were excluded to retain only the most active and focus on venture transaction
 We do not have the pretention to capture the entire ecosystem but we are willing to give the best overview, so feel free to reach us and help us to
update the database
Exits
 The database is built on CB insight information and our own research, the data collection period stopped in mid-october 2017
 We have only retained transaction related to companies operating in the technology space
 Unfortunately, most transaction amounts are not publicly available, making it complicated for us to compile relevant insights on deal values