South African tech start-ups, especially those focused on Fintech, are recruiting 20% more experienced tech professionals, underlining the significance of Africa’s US$4-billion in capital raised during 2021 to support tech ventures.

This is according to market research released by Robert Walters Recruitment South Africa which stated: “Headcount growth within South African start-ups has grown by 20% in the past 12-months, with more predicted as 50% of South Africa’s most-experienced professionals vow to make their next move to a start-up.”

South Africa is among the top five destinations for the over US$4.3-billion venture financing inflows for 2021, alongside Egypt, Kenya and Nigeria.

Research shows that South African tech start-up Adumo has boosted its professional employee headcount to 500, while the likes of Jumo and Yoco have increased the count by 250. This is on the back of massive funding raises of R255-million, US$156-million and US$23-million respectively.

Other Fintech companies like Getbucks and Planet42 have also raised over US$20-million each, boosting headcounts to between 50 and 100.

Megan Prosser, Senior Manager,Robert Walters South Africa, said, “What is most interesting is how these relatively-new 10-30 person companies are managing to draw some of the region’s top talent away from established firms who typically offer much higher levels of job security.”

South African tech start-ups are able to offer compelling working environments given their relatively flat structures and hands-on founders and CEOs.

“By taking on several different responsibilities and working closely with senior members of the team, start-up environments enable you to prove your worth early on, given that any output typically has a direct impact on the business,” added Prosser.

Data from the Robert Walters study shows that about 33% of professionals in South Africa are leaving their corporate jobs in order to ‘try something new,’ with a further 15% looking to reskill.

“In fact, a third of professionals (34%) state that the reason they move to a start-up is for challenging and interesting work – with many stating that the skills they adopt in self-management and task prioritisation then crossover into their personal life.”