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.
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.
