The African tech startup scene is flourishing with innovative ventures and promising growth, attracting more and more investors from around the world. According to recent data by Disrupt Africa, a total of 633 African tech startups raised funding in 2022, with Nigeria leading the way. In this article, we will look at the top 5 markets leading the funding in Africa and the sectors that are driving growth.
- Nigeria: With 180 startups (28.4% of Africa’s funded ventures) raising a combined US$976,146,000 (29.3% of the continent’s total), Nigeria remains the best-funded country in Africa in 2022, according to the report.
- Egypt: Egypt also had a strong year in 2022, with key rounds raised by MNT-Halan ($150 million), Paymob (US $50 million), and Khazna (US $38 million). The country has seen decent growth in the startup ecosystem, putting it in the top 5 markets leading the funding in Africa.
- Kenya: Kenya reported decent growth in the startup ecosystem in 2022, and the country is among the top 5 markets leading the funding in Africa.
- South Africa: Despite a decline in funding in South Africa compared to 2021, the country is still one of the top markets leading the funding in Africa.
- Ghana and Tunisia: Both Ghana and Tunisia had a record-breaking year of funding in 2022, but their overall share of funding is still small compared to the “big four” of Egypt, Kenya, Nigeria, and South Africa.
The report highlighted fintech as the most powerful force in African tech, with 205 fintech startups (32.4% of the total) raising an extraordinary US$1,446,794,000 – 43.4% of the continental total. However, the growth of the fintech space should not detract from positive developments in other sectors, such as e-commerce and retail-tech, and e-health, which are well-established in second and third place and growing at a faster rate than fintech. With funding snowballing more quickly than fintech in areas such as entertainment, marketing, transport, recruitment, agri-tech, e-commerce and health, we can expect to see fintech’s lead further cut in the coming years.