• Thursday, November 14, 2024
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Africa’s 8 largest funding destinations for startups

Nigeria startups, others hunt for $200,000 in world’s largest pitch competition

Nigerian startups received the lowest funding in 2023, a recent report, ‘Africa: The Big Deal’ reveals. Kenya, in East Africa got the most.

The ‘Big Four’ collectively garnered 87% of all startup funding in Africa, marking their highest share since 2019.

Kenya attracted $800 million to secured the top position, constituting 28% of the continent’s total funding. Egypt followed with $640 million, South Africa with $600 million, and Nigeria, the most populous nation, acquired the least funding at $410 million.

The report emphasized that startups from the Big Four, which received funding, accounted for 71% (357 out of 500) of the continent’s startups securing $100k or more in 2023.

BusinessDay reported a 39 percent year-on-year decline, a total of $2.9 billion in 2023 compared to the $4.8 billion raised in 2022.

According to Africa: The Big Deal’s Proprietary Database, here are Africa’s 8 largest funding destinations for startups in 2023.

Kenya – $800 million

Kenya stands tall as Africa’s leading funding destination for startups in 2023, securing an impressive $800 million in investments. The country’s strategic location, stable political environment, and tech-savvy population have contributed to its thriving startup ecosystem. Nairobi, Kenya’s capital, has become a hub for fintech and agritech startups, attracting global investors keen on tapping into the country’s dynamic market.

Egypt – $640 million

Egypt follows closely behind, securing $640 million in startup funding. The North African nation has experienced a surge in entrepreneurial activity, driven by a youthful population and a government committed to fostering innovation. Cairo, with its growing tech community, has become a focal point for investors seeking opportunities in sectors such as e-commerce, health tech, and renewable energy.

South Africa – $600 million

South Africa, a long-standing player in the continent’s economic landscape, maintains its position as a key startup funding destination with a total of $600 million in investments. Johannesburg and Cape Town, in particular, have witnessed significant growth in sectors like fintech, edtech, and health innovation. The country’s well-established infrastructure and financial institutions contribute to its appeal among investors.

Nigeria – $410 million

Nigeria, with its vibrant and diverse economy, secures the fourth spot with $410 million in startup funding. Lagos, the country’s commercial capital, is a bustling hub for tech startups, particularly in the fintech and logistics sectors. Despite challenges, Nigeria’s large market and entrepreneurial spirit continue to attract both local and international investors.

Benin Republic – $71 million

Surprising many, Benin Republic emerges as a noteworthy destination, securing $71 million in startup funding. The West African nation has made strides in creating a conducive environment for entrepreneurship, with a focus on sectors like agriculture, renewable energy, and e-commerce.

Startup funding by region

DR Congo – $62 million

The Democratic Republic of Congo (DR Congo) enters the spotlight with $62 million in startup funding. Despite facing socio-economic challenges, the country has seen a growing interest in tech-driven solutions, particularly in healthcare and sustainable development.

Ghana – $57 million

Ghana, known for its political stability and welcoming business environment, secures $57 million in startup funding. Accra, the capital city, has witnessed a surge in tech startups, attracting investments in areas such as mobile banking, agribusiness, and renewable energy.

Rwanda, Senegal – $44 million each

Rwanda and Senegal share the eighth position, each securing $44 million in startup funding. Both nations have actively pursued policies to promote innovation and entrepreneurship, leading to increased investor confidence in their respective markets.

Chisom Michael is a data analyst (audience engagement) and writer at BusinessDay, with diverse experience in the media industry. He holds a BSc in Industrial Physics from Imo State University and an MEng in Computer Science and Technology from Liaoning Univerisity of Technology China. He specialises in listicle writing, profiles and leveraging his skills in audience engagement analysis and data-driven insights to create compelling content that resonates with readers.

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