West Africa has secured $5.76 billion in startup funding since 2019, with Nigeria receiving over 80% of this total

Key takeaways:

  • Nigeria is the clear leader, securing over 80% of total startup funding in West Africa. Its ecosystem benefits from a strong fintech sector, a large market, and increased investor trust.
  • Ghana and Senegal are challengers, attracting $460M and $410M, respectively. These countries are proving they can compete but still have a long way to go to match Nigeria.
  • Nigeria’s startups raised over ten times more than Ghana, the second-highest country on the list. This highlights an imbalance in investor focus.
  • Benin ($133M) and Côte d'Ivoire ($107M) are rising players but remain in the shadows of the region’s top three. Their growing startup ecosystems could gain more traction with the right policies and investments.
  • Mali, Togo, and Sierra Leone struggle to attract major funding, receiving less than $30M each. This signals a need for stronger ecosystems and investor confidence in these markets.

Since 2019, West African startups have attracted a staggering $5.76 billion in funding, with Nigeria securing over $4.6 billion—more than 80% of the total. This places Nigeria as the undisputed leader in the region’s startup ecosystem, while Ghana and Senegal follow with $460 million and $410 million, respectively. The funding distribution highlights Nigeria’s position as the primary hub for innovation and investment in West Africa, reflecting its robust startup culture, growing fintech sector, and investor confidence.

Source:

The Big Deal

Period:

2019 - 2024
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Kenya accounts for 83.8% of the total startup funds secured in East Africa from 2019 to 2024
  • Kenya is the absolute leader in startup funding, with $3.3 billion raised in the past six years.
  • The rest of East Africa is way behind, with Tanzania ($286M), Uganda ($183M), and Rwanda ($91M) being the next in line. But collectively, they don’t even match 20% of the funding Kenya received.
  • The total funding raised across East Africa from 2019 to 2024 is $3.94 billion, which means Kenyan startups alone secured more than 8 out of every 10 dollars invested in the region.
  • Investor confidence is highly concentrated in Kenya, largely due to its well-developed venture capital ecosystem, startup accelerators, and government support for innovation.
Over the past six years, Kenya has secured an average of 81% of the total funding available in East Africa
  • Kenya dominates East Africa’s startup funding, securing over 83% of all funds raised between 2019 and 2024 — a clear indication of its position as the region’s startup capital.
  • Kenya’s startup funding share has remained consistently above 80% since 2020.
  • 2023 and 2024 saw Kenya secure nearly 89% of all funds, marking its strongest position.
  • Other East African countries combined have not received more than 30% of the funding in any year since 2019.
  • The lowest share of funding Kenya secured was in 2019 (69.81%).
Nigerian startups have secured an average of 79% of the total funding in West Africa each year over the past six years
  • A staggering 92.16% of all startup funding in West Africa flowed into Nigeria in 2019, showing the country’s lead in attracting investors.
  • Nigerian startups still led, but their share dropped to 68.03% in 2023 and 69.75% in 2024, indicating that other West African countries are starting to attract more investment.
  • Despite some shifts, no other West African country has come close to breaking Nigeria’s dominance. The remaining 20-30% of funding is spread across multiple nations, making it difficult for any single country to challenge Nigeria's position.
  • While Nigeria’s startup dominance is impressive, a more balanced regional investment landscape could lead to greater innovation and economic growth across multiple countries.
10 startups from Forbes' AI 50 startups secured $29.5 billion in funding in 2024
AI startups are growing in the innovation race in 2024, with ten companies from Forbes' AI 50 list collectively securing $29.5b in funding. OpenAI dominates the landscape with an impressive $11.3b, surpassing all other startups. Following OpenAI is Anthropic, which raised $7.7 billion, signalling significant investor confidence in companies driving large-scale AI advancements. These two companies alone account for over half of the total funding of all Forbes AI 50 firms. Databricks, a name synonymous with data infrastructure, comes in third with $4 billion in funding, emphasising the critical need for scalable data management systems in the age of AI. Meanwhile, Anduril, a defence technology innovator, secured $2.8 billion, showcasing how AI also shapes defence and national security sectors. Notably, the funding sharply drops after these four, with other companies raising less than $800m Note: Forbes’ AI 50, in partnership with Sequoia and Meritech Capital, highlights the top private startups advancing AI with the most promising business applications.
Only once have Nigerian fintech startups raised more than $1 billion in a single year
In the past five years, Nigerian Fintech startups have received the most funding in the startup space, with over $1.01b raised in 2021, the highest in 14 years. Funding for the sector has since reduced following the raise in 2021.
Debt financing accounts for 42% of Moove Africa's disclosed funding as of March 19, 2024
Moove Africa's total disclosed funding as of March 19, 2024, comprises 41.6% debt financing, 22.5% Series B, 19.8% Series A, 14.9% private equity, and 1.2% Seed round.
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