Nigeria lost the top position in terms of African startup funding to Kenya in 2023. Startups in the East African country attracted the largest amount of funding in the year, topping the table with about $800 million.
This is according to the analysis of the African startup funding in 2023 released by research outfit, ‘Africa: The Big Deal’. The analysis of the ‘Big Four’ in Africa comprising Nigeria, Kenya, Egypt, and South Africa, shows that Nigeria slipped from the 1st position it had occupied in 2021 and 2022 to 4th position as startups in the country raised the least amount compared with the other three.
The research organization described the fall in fortunes for Nigerian entrepreneurs in 2023 as significant, stating that Nigerian companies raised a total of $410 million, less than half of what they raised in 2022 and 2021.
The research organization added, highlighting the performance of the four largest startup countries in Africa over the last year, “Nigeria is the country where the most dramatic change occurred in 2023.”
While the country still had the biggest number of start-ups raising $100k or more (146, 29% of the continent), the amount raised was divided by three years (-67%) to reach $410 million, compared to $1.2 billion in 2022 and $1.7 billion in 2021. As a result, its share of Western African investment has continued to fall, reaching 68%.
Nigeria, Kenya, South Africa, and Egypt were home to 71% (357 out of 500) of the continent’s start-ups that raised $100,000 or more last YEAR. Kenya received the greatest funding, accounting for 28% of the continent’s total. In Egypt, 48 startups were reported to have funded $100,000 or more in 2023, the lowest number among the Big Four.
South Africa continues to get the most regional funding (97%). The 70 start-ups that raised $100,000 or more in the country raised $600 million in total capital, accounting for 21% of the continent’s total.
