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Africa Startups Defy Funding Slump as Debt Financing Fuels Growth

African startups more than doubled the amount of debt they raised last year, a surge that may continue as an economic slowdown makes equity funding more expensive and unsustainable over the long term.

Companies on the continent raised $1.55 billion in 71 debt deals in 2022, suggesting it’s become a solid alternative source of capital for African technology startups, venture capital firm Partech Partners said in a report.

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