With a predominantly youthful population, Africans have resorted to tech -driven solutions to address some of its most urgent issues, and for the most part, this has been economically viable.
As a result, venture capitalists across the globe continue to flock to the continent for the next big tech idea.
African startups are harnessing the power of technology to address pressing challenges. From fintech to healthtech, tech solutions have become a go-to for young entrepreneurs.
This is because startups facilitating online transactions such as delivery services, and digital marketplaces are doing so on the heels of the continent’s growing internet penetration, shift in consumer behaviour and adoption of tech.
The rise of African startups is accompanied by a notable influx of investment. Both local and international investors are recognizing the continent’s potential and are actively supporting emerging businesses.
The investment landscape is diversifying, with venture capital, private equity, and impact investors playing pivotal roles in fueling the growth of these startups. It also shows how relevant these investments have been to the continent’s economy.
To varying degrees, African countries have benefitted massively from embracing tech. Investors looking to key into a market widely considered developing, have an additional rationale in the form of tech for investing in the continent.
However, when deciding to sink money into the African market, these investors have preferred destinations, destinations that have a history of generating substantial revenues.
Below are the African countries which have attracted the most startup funding from 2019 to 2023. This list is courtesy of a report from Africa: The Big Deal, a publication centered around African startups.
According to the report, “the domination of the Big Four, and of Nigeria in particular which has claimed more than a third of all funding since 2019 ($4.2b) and a staggering 300 $1m+ deals. Kenya, South Africa and Egypt are neck and neck, with around 200 $1m+ deals each, quite behind the Nigerian giant.”
Top 10 African countries with the largest tech funding
| Rank | Country | Funding amount since |
|---|---|---|
| 1. | Nigeria | $4.2 billion |
| 2. | Kenya | $2.5 billion |
| 3. | South Africa | $2.2 billion |
| 4. | Egypt | $2.1 billion |
| 5. | Senegal | $380 million |
| 6. | Ghana | $360 million |
| 7. | Algeria | $185 million |
| 8. | Tanzania | $180 million |
| 9. | Tunisia | $167 million |
| 10. | Uganda | $160 million |