10 African startups betting on local capital to solve big challenges

As global investment flows into Africa face pressure from economic uncertainty, rising insecurity and tighter financial conditions, a new generation of locally funded startups is stepping forward to address some of the continent’s most pressing challenges.

Across sectors including healthcare, finance, security, logistics and human resources, African entrepreneurs are building businesses designed to solve problems that affect millions of people daily. Rather than relying solely on foreign capital, many of these companies are drawing support from local investors and using local talent to create solutions tailored to African markets.

The rise of these startups reflects a broader shift in Africa’s innovation landscape. As access to international funding becomes more selective, local entrepreneurs and investors are increasingly taking responsibility for solving challenges that affect their communities.

Read also: Kenya overtakes Nigeria as Africa’s top startup investment destination

From healthcare financing and financial inclusion to security technology and cross-border payments, these companies are building solutions around local realities.

Their growth highlights how African startups are moving beyond identifying problems to creating systems that help people, businesses and institutions operate more effectively. As investment patterns continue to evolve, firms rooted in local markets may play an increasingly important role in shaping Africa’s economic future

The shift comes at a time when governments across the continent continue to face infrastructure gaps in healthcare delivery, financial inclusion, security and cross-border trade.

According to Bloomberg, here are the top 10 African startups attracting attention for their efforts to bridge those gaps

1. Terra Industries (Nigeria)

Nigeria-based Terra Industries is focused on addressing security challenges through technology. The company develops drones and surveillance systems designed to support security operations across West Africa.

The startup recently secured $34 million from private investors to expand its manufacturing operations beyond Nigeria into Ghana.

The expansion comes as security concerns remain a major issue across parts of West Africa. According to recent Global Terrorism Index rankings, Nigeria, Burkina Faso, Niger and Mali remain among the countries most affected by terrorism-related incidents.

2. Black Swan (Tanzania)

Access to credit remains a challenge for many small business owners in Tanzania who operate largely through cash transactions and mobile money platforms.

Black Swan seeks to address this problem through its artificial intelligence platform, Manka. The software analyses data such as mobile money activity and phone payment histories to create alternative credit profiles for users.

The system enables banks and lenders to assess borrowers who may not have conventional banking records, helping businesses gain access to financing more quickly.

3. 10mg Health (Nigeria)

Healthcare facilities often face cash flow challenges that can affect access to medicines and medical supplies.

10mg Health connects clinics, pharmacies and healthcare providers with lenders by using financial data to assess their funding needs and creditworthiness.

The company aims to improve access to working capital, helping healthcare providers maintain operations and continue serving patients.

4. Hub2 (Ivory Coast)

Cross-border payments remain a challenge across many countries in French-speaking West Africa due to fragmented financial systems.

Hub2 provides a digital payment infrastructure that links mobile money services and bank accounts through a single platform.

The company enables businesses to make regional payments more efficiently, supporting trade and commerce across multiple markets.

5. Remedial Health (Nigeria)

Counterfeit medicines continue to pose risks to public health across sub-Saharan Africa.

Remedial Health operates a digital marketplace that allows pharmacies to purchase verified medicines directly from approved suppliers. The platform currently serves more than 14,000 pharmacies.

In addition to medicine procurement, the company provides payment options that help pharmacies manage inventory and maintain stock levels.

6. Omnisient (South Africa)

Millions of Africans remain outside the formal banking system, limiting access to loans and financial services.

South Africa’s Omnisient works with financial institutions to analyse consumer behaviour and develop credit profiles for individuals without traditional banking histories.

The company says its technology has helped more than three million South Africans gain access to the formal financial sector.

7. Sycamore (Nigeria)

Small businesses often struggle to secure loans from traditional financial institutions.

Sycamore offers digital lending services aimed at businesses seeking quicker access to funding. Through its online platform, users can apply for loans and access other financial services.

The company is also expanding into products designed for Africans living abroad, particularly in the United Kingdom.

8. Nkwa (Cameroon)

In economies where cash remains dominant, saving money through formal financial channels can be difficult for many workers.

Cameroon-based Nkwa provides a mobile savings platform that allows users to create digital savings accounts for specific goals.

The app targets workers in the informal sector, helping them develop saving habits through mobile technology.

9. PawaPay (Pan-African)

Africa’s mobile money market includes numerous operators spread across different countries, creating complexity for businesses seeking regional payment solutions.

PawaPay addresses this challenge by connecting multiple mobile money networks through a single payment gateway.

The platform enables businesses to process transactions across several African markets without integrating with each operator separately.

10. WorkPay (Kenya)

Managing payroll and tax compliance across multiple countries can be challenging for growing businesses.

Kenya-based WorkPay offers a cloud-based platform that automates payroll processing, tax calculations and human resource management.

The system also allows employers to pay workers directly through mobile wallets, reflecting the growing role of digital payments in African labour markets.