Did you know that more than half the world’s middle class will be in Africa by 2020? It is expected that by this time, African customers will account for more than 40 percent of global middle-class consumption, 15 percent in Kenya.
The growth of the middle class presents businesses and investors with exciting opportunities. As a result, a significant number of startups are now focusing on setting up or expanding into Africa, Latin America, Asia and the Middle East, where population growth presents huge untapped market potential.
In 2017, a total of $167.7 million was invested in 201 startups in Africa, which was a growth of 28 percent year-on-year, with the number of startups being funded increasing from 153 in 2016. South African startups were the most funded, 74 of them, followed by Kenya where 46 startups were funded and Nigeria took the third spot with 34 startups funded.
As far as innovation in the technology world goes, Kenya stands among the giants, with acclaimed titles that have had a massive impact on the global economy.
Kenya’s 2017 overall GDP growth is projected at 6.4 percent with SMEs contributing 3 percent.
A recent National Economic Survey report by the Central Bank of Kenya (CBK) indicated that SMEs constitute 98 percent of all business in Kenya, create 30 percent of the jobs annually as well as contribute 3 percent of the GDP.
According to the 2014 survey, 80 percent of the 800,000 jobs created in the year came from the informal sector which is dominated by the SMEs.
Kenya is among the top countries in Africa to receive investments for startup businesses. She has a lot of potential for growth as more of her environs are being exploited in a myriad of industries
Over the last few years, we have seen a number of startups that have been started locally and in the region. Most of these startups have ended up rising and bringing about great opportunities not only to the Kenyan economy but to Africa and the world at large.
As 2018 kicked off, more startups were launched in Kenya while the existing ones sought out for more funding to expand their businesses. The table below gives a summary of top startups companies that have so far received the highest funding in the first half of 2018: