According to a report by Africa: The Big Deal, West Africa has attracted the most funding on the African continent since 2019, and is home to the most active markets in terms of fundraising in the period.
Since 2019, the region has secured an impressive $5.8 billion in startup funding, which accounts for 36% of all funding on the continent, over the past five years, underscoring the region’s strong position in Africa’s tech and innovation ecosystem.
Nigeria has been the undisputed leader, accounting for a significant 80% of that total. The country alone has claimed $4.6 billion, representing 29% of all African startup investments, highlighting its crucial role in the broader ecosystem.
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However, the funding landscape has evolved since the end of the funding boom in mid-2022. During the peak investment period from 2020 to mid-2022, West Africa commanded 41% of all startup funding on the continent, nearly doubling East Africa’s 22%. Since then, investment patterns have shifted, with East Africa overtaking West Africa by claiming 30% of funding compared to West Africa’s 25%.
Despite this shift, Nigeria remains the dominant player in West Africa’s startup ecosystem. In both 2023 and 2024, the country accounted for approximately 70% of the region’s startup funding, a lower concentration than in other leading African markets such as Egypt (84%), Kenya (88%), and South Africa (99%).
Historically, the “Big Four” countries, Nigeria, Kenya, South Africa, and Egypt have collectively accounted for a significant portion of Africa’s startup funding. Reports from Disrupt Africa and the African Development Bank indicate that these nations captured around 75-80% of total funding in years like 2021 and 2022, with Nigeria often taking the largest individual share.
For example, in 2022, Nigerian startups raised $976 million out of a continental total of $3.3 billion, equating to about 29%-far below 80%. Even in 2021, when Nigeria raised substantial sums, the Big Four together accounted for 92.1% of the $1.9 billion total, with Nigeria’s portion being significant but not dominant at that level.
At the same time, other West African nations have increased their share of investment. The region now boasts four countries that have each raised over $100 million since 2019, more than any other African region. Ghana ($460 million) and Senegal ($410 million) are nearing the half-billion-dollar mark, while Benin ($133 million) and Côte d’Ivoire ($107 million) complete the regional top five. Meanwhile, the remaining West African nations have collectively attracted only 1% of the region’s funding since 2019.
A closer look at the distribution of this funding reveals that a small group of startups has captured the majority of the investment. More than 700 West African startups have raised at least $100,000 since 2019, yet just 15 companies have secured 55% of all regional funding. Unsurprisingly, 13 of these are based in Nigeria, and 8 operate in the fintech sector.
Seven Nigerian fintech which includes, Opay, Flutterwave, Interswitch, PalmPay, Moniepoint, Kuda, and Yellow Card, have led the charge, solidifying Nigeria’s position as Africa’s fintech hub. Moreover, five Nigerian startups, Interswitch, Flutterwave, Opay, Moniepoint, and Andela have attained unicorn status with valuations exceeding $1 billion.
Beyond Nigeria, two standout companies have significantly impacted their respective markets. Senegal’s Wave Mobile Money has raised nearly $300 million, accounting for 71% of the country’s startup funding, while Benin’s Spiro, an electric mobility startup, has attracted over $100 million, representing 85% of its home country’s total funding.
While Nigeria continues to dominate West Africa’s startup funding landscape, the rise of emerging markets within the region signals a gradual diversification.
As investment flows shift, countries like Ghana, Senegal, Benin, and Côte d’Ivoire are carving out their own spaces in the African startup ecosystem, showcasing the growing depth of innovation and entrepreneurship across the region.