Nigeria Leads African Countries in Startup Funding with $4.6 Billion Raised
According to a ranking published by Africa: The Big Deal, Nigeria has raised $4.6 billion in startup funding, making it the leading African country in this regard. Kenya comes in second, with its startups mobilizing $3.4 billion over the same period. This is a remarkable performance, considering that Nigeria accounts for 29% of African startup funding in 2024, despite representing only around 4% of the continent's nominal GDP and population.
South Africa takes third place, followed by Egypt, Ghana, Senegal, Tanzania, Morocco, Algeria, and Uganda. Tunisia, however, does not make it to the top 10, ranking 11th.
Examining the share of each major African country in terms of startup funding, relative to their weight in the continent's population and economy, reveals some interesting insights. The fact that some countries feature in the top 10 for startup funding despite not ranking high in demographic or economic terms suggests that others are being left behind. This is the case for Ethiopia, whose economy has opened up more recently than its peers. The Democratic Republic of Congo (DRC) is another example, being the fourth most populous country on the continent but not featuring in the top 10 for startup funding, despite its ranking being similar to its GDP.
One drawback of this analysis is that the percentages tend to become very low as the pie is shared among 54 countries. In our opinion, the most important criteria are the dynamics of the economy and the degree of digitalization of the financial system. It is particularly the latter dimension that has prevented Tunisia from securing a spot in the top 10.
