Nigeria Leads Africa in Start-Up Funding with $4.6 Billion Raised in the Last Five Years
Nigeria has raised $4.6 billion in start-up funding over the last five years, making it the number one country in Africa in this regard. Despite being the most populous country on the continent, Nigeria ranks only 5th in terms of GDP.
Kenya follows in second place, having raised $3.4 billion since 2019. South Africa ranks third, while Egypt comes in fourth. These four countries are often referred to as “Africa’s Big Four” in terms of start-up funding, as they dominate the space and appear to have a significant advantage over other African nations.
However, there are some surprising trends in the rankings. Ghana (5th) and Senegal (6th) have secured spots in the top 10 for start-up funding, despite not being in the top 10 in GDP rankings. Similarly, Tanzania (7th) and Uganda (8th) outperform their GDP rankings when it comes to attracting start-up investment.
One particularly striking case is Algeria, which has the third-largest GDP in Africa but ranks only 9th in start-up funding. Conversely, some countries that have high population or economic rankings fail to break into the top 10 in funding.
A clear example of this is Ethiopia, which is 2nd in population and 4th in GDP but ranks only 16th in start-up funding. This highlights the differences between economic size and investment attractiveness in Africa’s start-up ecosystem.
Overall, Nigeria’s leadership in start-up funding stands out. At the same time, these rankings reveal the untapped potential of other African nations, indicating room for further growth and investment across the continent.