The technology sector is spearheading investment within South Africa’s start-up ecosystem, even amid challenging macroeconomic conditions.

This insight comes from the South African Venture Capital Association (SAVCA), which unveiled the findings of its 2023 Venture Capital Survey, which was published on Thursday, 18 July 2024.

The survey indicates that South African start-ups secured R3.3-billion in VC funding last year, with an additional R2.1-billion raised through co-investors.

In alignment with the global trend towards VC-type investments, the ICT sector-encompassing dynamic subsectors such as fintech, edtech, software, e-commerce, and online markets-continued to dominate investment activity across various sectors, according to a statement by SAVCA.

SAVCA noted that ICT as a primary sector nearly doubled in the number of investments compared to 2022, accounting for 87.6% of the total (up from 48.1% in 2022).