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Africa stands at a juncture in its journey toward sustainable development. Despite notable progress by many countries in Africa in areas such as poverty reduction and renewable energy adoption, progress on the Sustainable Development Goals (SDGs) in the region remains uneven. Against this backdrop, deep tech, grounded in science and technology breakthroughs, has the potential to address negative trends and accelerate progress on underperforming targets. Whether through driving sustainable energy transitions, tackling global water challenges, or advancing climate solutions, deep tech solutions could empower Africa to shape their future if harnessed effectively.
Africa’s deep tech landscape is emerging as a dynamic force, reflecting both local innovation and global trends. Between 2013 and mid-2023, deep tech startups in Africa raised $3 billion across 360 deals, accounting for 15% of the total funding received by all the startups on the continent. This growth is particularly evident in countries such as South Africa, Nigeria, Morocco, Egypt, and Kenya, where deep tech ecosystems are gaining traction. Between 2015 and 2023, deep tech funding in Africa surged by 130%, rising from $86 million in 2015 to $1.2 billion in 2023. This upward trajectory aligns with global investment patterns, where deep tech’s share of venture capital funding has held constant at approximately 20% since 2019. The increase aligns with trends in other regions such as Europe which saw a deep tech funding surge from $2.5 billion in 2015 to 15.3 billion in 2023. This represents a share of venture capital funding in deep tech increase of 17% to 32.9%.
Share of funding into deep tech in Africa.
Deep tech startups across Africa are driving sustainable development by applying advanced solutions to development challenges in various sectors including healthcare, agriculture, and industrial innovation. Their impact is evident through sector-specific advancements. In the biotechnology sector, a startup in South Africa uses advanced bacterial systems to significantly reduce extraction times and improve production efficiency – enabling the production of hard-to-obtain proteins through advanced biotech processes. In agriculture, a Moroccan startup trains advanced AI algorithms to augment crop monitoring with automatic plant disease classification, allowing farmers to minimise crop losses and optimise farming practices. In the healthcare domain, a startup based in Egypt advances diagnostics in Africa and the Middle East through sophisticated nucleic acid amplification and detection techniques. Through compact and reliable diagnostic equipment tailored to resource-limited settings, it provides affordable and effective testing solutions.
Deep tech startups across Africa are driving sustainable development by applying advanced solutions to development challenges.
Africa’s deep tech ecosystem thrives on the collaboration and contributions of diverse stakeholders, including governments, universities, corporates, and startup support organizations (SSOs). Governments across Africa are playing an increasingly pivotal role in supporting deep tech ecosystems. While general innovation strategies are in place, a deeper focus on research and development (R&D) and policies tailored specifically to deep tech remains essential. African governments have established various initiatives and frameworks to support deep tech. For instance, Tunisia’s Startup Act reform emphasizes fostering deep tech innovation, while institutions like South Africa’s Department of Science and Innovation (DSI) and Technology Innovation Agency (TIA) provide grants and funding programs to bolster R&D and early-stage technology development. These government-led initiatives provide a foundational support to the building of sustainable deep tech ecosystems.
UNDP supports Africa’s innovation ecosystems through Timbuktoo, a $1 billion pan-African initiative aimed at strengthening the innovation landscape. Universities serve as the backbone of deep tech innovation in Africa, with over a third of Africa’s deep tech entrepreneurs in more than 300 active deep tech startups holding degrees in engineering or computer science. Timbuktoo fosters innovation on a pan-African scale by establishing innovation hubs, venture funds, and university-based UniPods, which provide access to cutting-edge research, prototyping facilities, and commercialization support for student-led and early-stage startups including some deep tech ventures. These initiatives address critical challenges, including limited early-stage investment, high startup failure rates, and restricted market access, ultimately driving sustainable growth and economic transformation across Africa.
timbuktoo Hubs: Innovation on a Pan-African Scale
Hubs and accelerators are instrumental in supporting Africa's deep tech ecosystem by providing support to deep tech startups through incubation, mentorship, and access to capital. With 127 active hubs across Africa, South Africa leads with the highest concentration (22%), followed by Nigeria and Egypt (12% each). However, only 25% of these hubs are deep tech-focused, highlighting a gap in resources for early-stage ventures. Initiatives like Open Startup’s (OST) BRAIN program show the essential role of hubs in advancing deep tech. Programs such as these fosters collaboration, exemplified by events like the Uganda Deep Tech Summit in 2024, which strengthen international partnerships and help lay the foundation for deep tech development in the region. Additionally, the first edition of the Deep Tech Summit in Morocco in 2024 brought together international experts to chart the future of deep tech in the region.
Despite its potential, Africa’s deep tech ecosystem faces several systemic challenges that hinder its growth. These challenges, identified through OST’s experiences fostering deep tech innovation across the continent, fall under five pillars. Firstly, policy and regulation are a key barrier, with inconsistent regulatory frameworks and a lack of awareness about deep tech’s economic potential. Even in countries with progressive initiatives, gaps in implementation and underdeveloped policies such as Startup Acts and AI strategies restrict growth. Infrastructure challenges include limited access to intellectual property management, technology transfer services, and other essential support systems. In the area of human talent and education, a significant deep tech knowledge gap persists globally. Scientists often lack the entrepreneurial skills necessary for commercializing research, while limited opportunities for cross-disciplinary collaboration stifle innovation. Funding and capital are another hurdle both in Africa and globally, with deep tech startups struggling to secure adequate funding at both early and late stages. Public R&D investment is sparse, and venture capital interest remains limited, leaving startups unable to scale their operations effectively. Finally, international openness and mobility constraints make it difficult for African deep tech startups to access global markets tap into global expertise through partnerships and knowledge sharing.
To unlock the potential of Africa’s deep tech ecosystem, fostering knowledge sharing and collaboration between countries – particularly those with more advanced ecosystems and those just beginning their journeys – is essential. Countries with more developed ecosystems can share valuable lessons on policy design, funding strategies, and infrastructure development, helping others avoid common pitfalls and accelerate their growth. This exchange can take the form of regional partnerships, joint research initiatives, and cross-border investment platforms that enable startups to access broader markets and resources. Establishing networks for policymakers, researchers, and entrepreneurs to collaborate will encourage the exchange of best practices and technological expertise. By fostering such collaboration, countries at earlier stages can benefit from proven models for scaling startups, while more advanced ecosystems gain access to new markets and fresh innovation perspectives. Ultimately, this interconnected approach can drive collective progress and create a stronger, more inclusive deep tech landscape across the continent.
This is the eighth blog of the Deep Tech Series. Click here for the full list of blogs.