African Tech Startups: Top 5 Countries Driving Growth

Africa has seen a rise in technology with tech startups springing up in different parts of the continent with unique innovations. The growth of the African tech space has been promising and has attracted many investors from all over 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.

Here are the 5 countries leading the funding, driving growth, and advancing the tech space in Africa.

Nigeria (African Tech Startups)

Nigeria is home to 180 startups which is 28.4% of Africa’s funded ventures, raising a combined US$976,146,000 (29.3% of the continent’s total), Nigeria seats pretty at the top of the list for the best-funded country in Africa in 2022, according to the report.

Egypt

Egypt has enjoyed a meteoric rise in the funding stakes in the past couple of years, and in 2022 it held on to second position both in terms of the number of funded startups and the total amount secured. 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

The country saw 131 startups (20.7 per cent of Africa’s total) raise a combined US$811,945,000 (24.4 per cent of the continent’s total) – figures placing Egypt comfortably ahead of all other countries except Nigeria.

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Kenya (African Tech Startups)

Kenya had a strong year in 2022, placing it firmly in third position both for the number of funded startups and for the total amount of funding.

Ninety-one startups were backed in Kenya (14.4 per cent of Africa’s total) and combined they secured US$574,809,000 – 17.2 per cent of the continent’s funding.

South Africa

Despite a decline in funding in South Africa, the country is still one of the top markets leading the funding in Africa.

Seventy-eight startups secured backing in 2022 (12.3 per cent of Africa’s funded ventures), together raising US$329,707,000 (9.9 per cent of Africa’s total). These statistics see South Africa fall to the fourth position on both measures.

Ghana and Tunisia

Both Ghana and Tunisia had a record-breaking year of funding in 2022, but their overall share of funding is relatively small compared to the “big four” of Egypt, Kenya, Nigeria, and South Africa.

The reports showcased fintech as the driving 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 success of the fintech space doesn’t negate other sectors such as e-commerce, retail tech, and e-health which are well-established and growing at a fast rate. in the coming years, we can expect to see any of these sectors take the lead in the African continent.