Southeast Asia and Africa are both witnessing transformative growth in their startup ecosystems, driven by unique opportunities and challenges.

Southeast Asia’s digital economy is on a remarkable growth trajectory, with Gross Merchandise Value (GMV) projected to reach $263 billion in 2024, marking a robust 15% year-on-year increase. This momentum is expected to accelerate further, with GMV forecasted to surpass $360 billion by 2028. This growth is fueled by advancements in e-commerce—where video commerce now accounts for 20% of GMV—alongside innovations in digital financial services and artificial intelligence. The region’s high internet penetration of 75% in 2024, representing over 460 million users, serves as a cornerstone of this expansion, enabling deeper consumer engagement and wider access to digital services.

Profitability in the digital economy has surged 2.5 times in just two years, rising from $4 billion in 2022 to $11 billion in 2024. Furthermore, with $72 billion in tech funding over the past five years and over $30 billion invested in AI infrastructure in the first half of 2024 alone, Southeast Asia is cementing its position as a global leader in digital innovation and economic transformation.

Similarly in Africa, technology is driving its transformation, with the internet expected to contribute $180 billion (5% of GDP) by 2025 and $715 billion by 2050, showcasing the potential of Africa’s digital economy. With over 287 million people in Sub-Saharan Africa accessing mobile internet, data consumption has quadrupled, driven by a rise in the adoption of digital payments, e-commerce, and social media.

African founders are revolutionising how people live and do business, attracting over $23 billion in investments in the past decade. Venture capital in Africa has grown at a compounded rate of 27% annually, and innovations like mobile money highlight Africa’s leadership in technology. Emerging technologies like artificial intelligence are set to add $30 billion to the economy, addressing some of Africa’s biggest challenges from healthcare to agriculture.

Both the Southeast Asian and African ecosystems are young, vibrant and talented, powered by over half a billion people under the age of 25 in Africa and over 300 million in Southeast Asia.

We believe that the XA Network has built an amazing platform to empower the tech community in these two crucial regions. This mission shapes how we think about deploying capital and supporting the innovators who are working tirelessly on solving the challenges faced in their regions.



Sources: Southeast Asia: Resetting Expectations, Lightspeed, September 2024 & e-conomy report 2024, Google, Temasek and Bain & Company, e-Conomy Africa 2020, Google and IFC, 2023 Africa Tech Venture Capital Report, Partech Africa, Unlocking Digital Opportunity in Africa, Google, World Bank Open Data & Understanding the youth’s perspective, Afrobarometer.