Middle East and North Africa Tech Startups Secure $1 Billion in Venture Capital Despite Pandemic

More than $1 billion, this is the amount raised by technology companies in the Middle East and North Africa (Mena) region in the form of venture capital in 2020, according to a report by the information platform Magnitt. But, contrary to the increase in the amount raised, the number of deals signed in 2020 decreased by 13% to 496 transactions. "2020 has been a turning point for venture capital-backed startups in the Mena region. It was a difficult year in many ways and it is likely that the impact of the pandemic will continue to affect the population as well as the macroeconomic prospects of our region," said Philip Bahoshy, founder and CEO of Magnitt, reports Agence Ecofin.

Despite the difficult context marked by the spread of the coronavirus, investments have increased in the food, beverage and health sectors, the report notes, indicating the interest of local and foreign investors in African and Middle Eastern tech companies. These investors, encouraged by the productivity and captivating profits due to their investments, are counting more on agile companies, able to transform the challenges of the crisis into business opportunities and derive advantageous improvements, particularly in vital sectors for households and businesses.