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In September, Tunisian startups secured $1.8 million in capital, a stark contrast to the $36 million raised by startups across the Middle East and North Africa (MENA) region. This places Tunisia in the 4th position regionally, following the UAE, Saudi Arabia, and Egypt. These statistics were disclosed on October 5, 2023, by Wamda, a prominent accelerator of entrepreneurship ecosystems.
During September, startups in the MENA region collectively raised $36 million through 36 deals, signifying a substantial 64% month-over-month drop in value and an 82% year-over-year decrease. This decline brings the total fundraising amount for the year to $1.8 billion, with $687 million sourced from debt financing. To put this into context, in the first nine months of 2022, startups in the region had raised a total of $2.7 billion, including $455,710,000 obtained through debt financing.
Investor hesitation
n terms of deal value, Saudi Arabia recorded $2.7 million raised across seven deals, whereas six Egyptian startups managed to secure $2.6 million. The most significant impact was seen in Saudi Arabia, experiencing a staggering 95% drop in transaction values month over month. Despite a prosperous year compared to the rest of the region, Saudi Arabia seems to have succumbed to the same investor hesitations observed elsewhere.
Examining specific sectors, fintech continued to attract the highest investments, totaling over $16 million across six deals, closely followed by cleantech and gaming. When considering business models, B2B startups received investments exceeding $25 million, while B2C startups garnered just over $10 million.
Zooming in on Q3 investments, there was a nearly 67% decrease in deal values compared to Q3 2022, coupled with a 44% drop in the number of deals, plummeting from 159 deals to a mere 89. Egypt bore the brunt of this decline with investments plummeting by 89%, whereas Saudi Arabia witnessed a 65% reduction, and the United Arab Emirates faced a 64% drop in investment levels.
The Tunisian ecosystem
The Tunisian startup ecosystem is rapidly evolving and stands as a leading force in the Maghreb region.
This remarkable progress can be largely attributed to the implementation of the “Startup Tunisia” program, launched as a pivotal component of the national strategic plan, “Tunisie Digitale 2016-2021.” The primary goal of this initiative is to generate high-value job opportunities for young graduates and boost the contribution of technological innovation to economic growth.
Renewed under the National Digital Transformation Strategy 2021-2025, the program now focuses on fostering the creation of 200 startups annually and aims to generate 10,000 jobs in the coming years.
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