Despite facing challenges in the global economy and witnessing a slowdown in funding across Africa, Nigerian startups have displayed resilience by securing $160 million in funding during the first quarter of this year.
This underscores Nigeria’s significant position within the continent’s thriving startup ecosystem and emphasizes the potential for continued growth and innovation in the Nigerian tech sector.
According to a new report by Africa: the Big Deal, Nigeria, along with Kenya, South Africa, and Egypt, collectively accounted for 87 percent of all startup investments in Africa during this period.
Among these four countries, Nigeria led the way with $160 million in funding, followed by Kenya with $108 million, South Africa with $72 million, and Egypt with $53 million.
This data reaffirms Nigeria’s dominance in attracting investment within the African startup landscape, solidifying its role as a hub for innovation and entrepreneurship on the continent.
The majority of investments were directed towards startups headquartered in these four countries, with Nigeria and Kenya receiving the largest share of funding.
Only a few other African nations secured more than $5 million in funding during the first quarter, underscoring the concentrated nature of startup investment activity in Africa.
Despite the challenges posed by the COVID-19 pandemic and economic uncertainties, African startups have continued to exhibit resilience and adaptability. Many entrepreneurs have innovated and developed new business models to navigate the changing landscape, driving growth and attracting investor interest.
Prashant Matta, SP of Panache Venture, acknowledged the decline in funding as a global issue exacerbated by economic challenges. However, he expressed confidence in Nigerian startups, citing significant deals like the $100 million investment into Nigerian mobility fintech startup Moove. These substantial investments from outside Africa demonstrate the confidence of international investors in the Nigerian tech ecosystem.
The report highlighted the logistics and transport sector as the top recipient of funding in the first quarter, totaling $151 million from 14 deals. Notably, Nigerian startup Moove secured a significant $110 million during this period.
Following closely behind, fintech attracted the second-highest funding with $105 million, followed by Agric and food with $50 million, energy with $49 million, and healthcare with $45 million. These sectors showcase the diverse range of opportunities and innovations driving growth in the Nigerian startup ecosystem.
