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Since 2019, West Africa has emerged as a powerhouse in Africa’s start-up ecosystem, attracting $5.8 billion in funding—36% of the continent’s total, making it the most-funded region outside of exit deals. Nigeria leads this surge, securing $4.6 billion, which accounts for 80% of West Africa’s total and 29% of Africa’s overall start-up investments.
This dominance highlights Nigeria’s critical role in driving innovation across the continent. However, funding patterns have shifted since the mid-2022 peak. During the 2020 to mid-2022 funding boom, West Africa commanded 41% of Africa’s start-up capital, nearly double East Africa’s 22%. Post-mid-2022, its share dropped to 25%, while East Africa surged ahead with 30%.
Investment distribution across West Africa has also become more balanced. The once-dominant “Big Four” investment hubs in the region are seeing a diversification trend, in contrast to other African regions where funding remains concentrated. While Nigeria still leads with approximately 70% of West Africa’s start-up investments in 2023 and 2024, this marks a decline from its peak influence. By comparison, Egypt secured 84% of North Africa’s funding, Kenya dominated East Africa with 88%, and South Africa captured 99% within Southern Africa.
Despite Nigeria’s continued leadership, other West African markets are gaining momentum. The region now has four countries with over $100 million in funding since 2019—more than any other part of Africa. Ghana has raised $460 million (ranking #5 in Africa), followed by Senegal with $410 million (#6), Benin with $133 million, and Côte d’Ivoire with $107 million. However, the rest of the region collectively accounts for just 1% of total funding.
Where Is the Funding Flowing?
More than 700 West African start-ups have raised at least $100,000 since 2019, yet 55% of the region’s total funding is concentrated in just 15 companies—13 of which are Nigerian. Fintech dominates the scene, with eight of the top 15 start-ups operating in this sector. Seven of these are Nigerian fintech giants: Opay, Flutterwave, Interswitch, PalmPay, Moniepoint, Kuda, and Yellow Card. Nigeria also boasts the highest number of African unicorns—start-ups valued at over $1 billion—including Interswitch, Flutterwave, Opay, Moniepoint, and Andela, a tech talent platform.
However, Nigeria is not alone in producing high-growth start-ups. Senegal’s Wave Mobile Money has raised nearly $300 million, representing 71% of its country’s total start-up funding. Meanwhile, Benin’s Spiro has secured over $100 million, accounting for 85% of its national funding. These rising players highlight the growing diversity within West Africa’s entrepreneurial ecosystem, even as Nigeria continues to be the driving force behind the region’s investment landscape.
As West Africa’s start-up funding dynamics evolve, the region remains a critical hub for innovation, with fintech leading the charge and emerging markets gaining traction in the broader investment landscape.
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