A recent report highlights Kenya’s prominent position in African start-up funding, leading the ‘Big Four’ nations – Nigeria, Egypt, and South Africa.
Released by Africa: The Big Deal on Monday, the report reveals that the ‘Big Four’ collectively attracted 87% of all start-up funding in Africa during 2023.
Kenya emerged as the frontrunner, securing nearly $800 million (Sh.126 billion), constituting 28% of the total funding across the continent.
The report illustrates Kenya’s dominance in Eastern Africa, with its share of funding increasing from 86% in 2022 to 91% in 2023.
Notably, 93 Kenyan start-ups successfully raised over $100,000 (Sh.15.8 million).
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Egyptian start-ups secured $640 million in 2023, with 48 ventures surpassing the $100,000 mark.
Despite experiencing a year-on-year decline of 20%, Egypt claimed the second spot among the ‘Big Four.’
South Africa received $600 million from 70 start-ups, representing 21% of the continent’s total funding.
Remarkably, South Africa was the only country among the ‘Big Four’ to witness an 8% year-on-year increase in total funding between 2022 and 2023.
Nigeria, although leading in the number of start-ups raising over $100,000 (146), faced a significant decrease of 67% year-on-year, totaling $410 million in 2023.
The report indicates that 2023 marked the highest funding share for the ‘Big Four’ since 2019.
However, it also acknowledges the challenging operating environment in the African tech ecosystem during the year.
Factors such as rising inflation, weakening currency, and unfavorable interest rates led to foreign investors redirecting capital away from emerging and frontier economies.
Kenya Tops African Start-Up Funding In 2023, Leading ‘Big Four’, Kenya Tops African Start-Up Funding In 2023, Leading ‘Big Four’
