With 29 of Africa’s 55 countries making up Francophone Africa, Africa is home to more French speakers than any other continent. In recent years, Francophone Africa is rapidly emerging as a vibrant hub for start-up innovation and entrepreneurship. Countries like Senegal, Côte d’Ivoire, Morocco, Tunisia, and Cameroon are witnessing a surge in tech-driven businesses that are transforming their local economies.

Tracking the Rise of Francophone Africa

Until 2020, Francophone Africa was often seen as lagging behind its Anglophone counterparts, particularly the NEKS countries –Nigeria, Egypt, Kenya, and South Africa — in attracting investment. However, the region is steadily catching up.

In 2023, while Africa saw a 30% decline in overall funding, Francophone Africa defied the trend with a 15% increase, totaling over 90 deals and accounting for 20% of the continent’s deals (Partech Report 2023). The region is also shifting towards predominantly equity deals, raising three times more in 2023 than five years prior. Notable startups like Senegal’s Wave, Tunisia’s InstaDeep, Morocco’s Chari, and Algeria’s Yassir are leading the charge and blazing the trail for the next generation of founders. This growth signals Francophone Africa’s rising prominence, despite the challenging investment landscape across the continent.

Key Drivers

This growing momentum is driven by a number of factors. First, mobile internet and smartphone proliferation have been crucial, with Francophone Africa now boasting some of the highest mobile phone penetration rates on the continent. Affordable smartphones, some priced as low as $70 USD, have democratized access to technology, creating a large customer base for tech-driven and tech-dependent companies.

Government support has also been integral to Francophone Africa’s boom. Countries have implemented a slew of policies to foster entrepreneurship and build out startup ecosystems. For example, Tunisia’s pivotal 2018 Startup Act offers tax incentives, grants, and regulatory support to startups. This act is part of a broader trend of a joint effort between the private and public sectors within Francophone Africa to establish tech hubs, innovation funds, and incubator programs, creating fertile grounds for startups to thrive.

The post-pandemic return of many members of Francophone Africa’s diaspora has further accelerated ecosystem development. Diaspora members are bringing valuable experience, capital, global connections, and additional language skills, which are crucial for scaling local startups and attracting international investment.

The Region’s Unique Characteristics (and Opportunities!)

6 out of the 7 fastest growing African economies are in Francophone Africa, highlighting the region’s dynamic economic growth potential. Although individual Francophone countries in Africa may be smaller than some of their Anglophone counterparts, collectively, Francophone Africa’s market is equivalent in size to that of Nigeria, Africa’s largest economy.

Despite being fragmented by state borders and certain regulatory discrepancies, Francophone Africa benefits from a significant advantage: the West African Economic and Monetary Union (WAEMU). This large, unified economic bloc comprises several Francophone countries that share a common currency, the CFA Franc, which is used in 14 countries and accounts for over 10% of Africa’s GDP. The CFA Franc is pegged to the Euro, providing a level of currency stability that is rare in the region, reducing exchange rate risks and making it an attractive environment for investors.

Notably, Fintech is by far the fastest growing sector in the region. Given the relatively sparse presence of large financial institutions within many parts of Francophone Africa, founders have had to come up with creative solutions to enable the region access to financial infrastructure. The bustling fintech space is a good omen for growth in other sectors — fintech tends to be the critical prerequisite for other tech verticals. Cleantech is also on the up in the region, largely driven by the presence of funds with sustainability or climate change mandates.

Continued Challenges

Despite its steady progress over the years, Francophone Africa still continues to face structural challenges.

Regulatory complexities remain a significant hurdle, as the region is not uniform in its approach to investment and business processes. While countries like Senegal, Tunisia, and Morocco have developed more advanced frameworks that facilitate foreign investment, others still struggle with bureaucratic inefficiencies and inconsistent regulations that can deter investors and complicate cross-border business operations.

The language barrier also presents substantial obstacles to business growth and fundraising. Many educational resources, funding opportunities, and networking events are conducted in English, which limits access for French-speaking founders. This language divide extends to crucial software and tools that are predominantly available in English, further restricting Francophone founders’ ability to engage with the tech ecosystem fully. Additionally, the lack of French-language modules can impede the sourcing and training of tech talent, exacerbating the gap in tech development.

The regional disparity is especially evident when comparing the lagging presence of incubators and accelerators in Francophone Africa to Anglophone Africa, where the startup ecosystems are well-structured and highly populated with incubators and accelerators. There is a pressing need for more local incubators to nurture rising local talent in Francophone Africa.

Cultural differences between Anglophone and Francophone Africa add another layer of complexity to the investment landscape. Investors and founders often find it challenging to navigate these differences, which can impact cross-regional market strategies and business operations. One notable cultural factor is that youth in Francophone Africa still tend to prefer the public sector over private sector jobs. While this trend is slowly changing, it does mean fewer young people pursuing entrepreneurial ventures.

Essentially, Francophone Africa would certainly benefit from a greater influx of both local and international VCs to support a wider range of startups across industries.

Our Interest in the Region

Out of our first and second fund, we’ve said yes to promising ventures driving innovation across sectors critical to the region’s growth.

Maad, a Senegal-based logistics startup digitizing informal retail in Francophone West Africa. With Maad, retailers get access to an app with relevant services (wallet, accounting, ordering) while suppliers get access to a SaaS platform facilitating the distribution, marketing and analytics of the products they sell.

Vite, a Mauritius-based ride-hailing platform enabling on-demand rides available in mid-sized cities in Africa. Their software solution is simplifying how people find and book local taxis and access delivery services.

Cauridor, a B2B focused fintech, building the payment rails in Africa by integrating mobile money companies and banks in one platform and leveraging blockchain technology to enable interoperable cross-border payments.

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Recently, our networking mixer in Abidjan, hosted with MStudio and Duplo, underscored the power of community and open dialogue in fueling innovation. It was great to see founders, operators and other key players from across Francophone Africa come together, share ideas, and envision the future of the region’s startup landscape.

As we deepen our involvement in Francophone Africa, we’re excited to connect with founders who are pushing boundaries and creating impactful solutions. If you’re working on something bold, we’d love to hear from you! Head over to our website to #PitchForAYes and be part of the journey towards the next big wave of innovation in the region.