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Nigerian Startups Secure 30% of $15 Billion Raised by African Startups in 5 Years

By Oluchukwu Ikemefuna

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Nigerian Startups received 30% of the total funding raised by African Startups in years. The amount, $15 billion, was raised on the continent in 5 years.

According to an analysis done by Africa The Big Deal, the Big Four, which includes Nigeria, attracted 84% of all the start-up funding in Africa since 2019. 

Nigerian Startups Investment

Nigerian Startup Investment In Continental Funding

The report highlighted that Nigeria contributed a total of $4.4 billion to the funding. This makes the West African country one of the largest investment destinations for technology startups on the continent. 

Kenya comes second, contributing $2.9 billion to total funding. South Africa is next, with startups raising $2.4 billion. Next comes Egypt with $2.3 billion 

These four countries are called the Big Four. They account for more than three-quarters (25 percent for Nigeria). of everything. companies that have raised $1 million or more in the last four years.

Other African Countries Not Part of The Big Four 

The report further explained that the two closest runner-ups are Senegal and Ghana. Although these countries have claimed almost 6 times less funding than Egypt since 2019 they might be neck and neck in absolute terms.

However, Ghana’s position feels stronger than Senegal’s as a potential Big Five contender in the long run, with nearly 3 times as many start-ups having raised $1m+.

Also includes 13 startups that have crossed the $10m mark in funding over the period, versus ‘only’ four in Senegal where 76% of all the start-up funding since 2019 has gone to Wave alone.

Other countries that have contributed more than 100 million dollars are Tanzania with 242 million dollars, and Algeria with 185 million dollars.

Also, Uganda contributed 180 million dollars, and Tunisia 171 million dollars.

Morocco contributed 156 million dollars, and the Republic Democratic Republic of the Congo with 113 million dollars.

Other countries such as Rwanda, Ivory Coast, Benin, Ethiopia, Zambia, Cameroon, Namibia, Zimbabwe, Mali, Togo, Sudan, and Sierra Leone have attracted between $10 and $100 million in funding.

Nigerian Startup Investment Low In 2023

Nigeria in previous years contributed more than it did in 2024. In 2022, the country contributed $ 1.2 billion, and in 2021, contributed $1.7 billion. In 2023, the country contributed $410 million.

This development reduced its share of funding from 85% in 2021 to 77% in 2022 ending at 68% in 2023. According to the Africa the Big Deal report, it was the lowest ever recorded for the Big Four.

The drastic changes stands as a call for the Western Country to invest more in financing its startups and encouraging its operators to do more. 

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Abdullahi Kafayat
Abdullahi Kafayat

Abdullahi Kafayat is an enthusiastic writer interested in the tech world. She's a graduate of Obafemi Awolowo University and has a BSc in Chemistry. You can reach her at Kafayatabdullahi17@gmail.com.

Articles: 275

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