Over the past two decades, Africa has witnessed a remarkable growth in its technology industry, transforming it into a promising investment opportunity for emerging markets. This remarkable growth, coupled with an expanding, educated middle class that has gained widespread access to technology and the internet, has made Africa an increasingly attractive market for businesses seeking to expand their operations and boost their profits. The African continent is vast and highly diverse, comprising 54 countries, each with its unique characteristics and challenges.
This article explores five of Africa’s biggest and most influential tech ecosystems: Nigeria, Kenya, South Africa, Egypt, and Ghana. Nigeria, Kenya, Egypt, and South Africa—often referred to as the “Big Four” — have been at the forefront of the African tech scene since 2019. While Ghana may lag slightly behind the Big Four in terms of overall market dominance, it consistently ranks sixth in funding, just behind Morocco, and has emerged as one of the continent’s most robust and developed startup ecosystems.
This comprehensive article will provide a brief yet informative overview of each country, including detailed funding data, the presence of unicorns, the thriving startup landscape, and the various government initiatives and investments driving the growth of these dynamic tech hubs.
Nigeria
Despite a decline in overall African startup funding in 2024, Nigeria remained a top destination, securing $520 million in equity funding, representing an 11% increase compared to the previous year. The late-year funding boost was largely driven by the successful mega funding rounds of prominent startups like Moniepoint and TymeBank.
Nigeria’s tech ecosystem has firmly established itself as a leading force on the African continent, boasting an impressive five unicorns: Interswitch, Flutterwave, OPay, Andela, and Moniepoint. The country’s fintech sector has been particularly dominant, with Interswitch (payments, 2019), Flutterwave (payments, 2021), OPay (mobile payments, 2021), Andela (talent marketplace, 2021), and Moniepoint (fintech, 2024) all achieving coveted billion-dollar valuations.
Nigeria’s startup scene is characterized by its vibrant and diverse ecosystem. The fintech sector is particularly robust, with players like Flutterwave, Interswitch, OPay, Paystack, Kuda Bank, Carbon, Paga, Moniepoint, Okra, Mono, ZirooPay, and PalmPay leading the charge. The e-commerce landscape features prominent names such as Jumia and Konga, while the logistics sector is represented by innovative startups like MAX.ng and Kobo360. Additionally, other rapidly growing sectors include healthtech, agritech, edtech, and renewable energy.
The Nigerian government has demonstrated a strong commitment to supporting the country’s thriving tech industry. Through the introduction of the Startup Act in 2022, the government offers various tax incentives and has allocated a substantial 10 billion naira annual fund to fuel the growth of the sector. Furthermore, the government has plans to establish a $40 million fund in collaboration with JICA and NSIA, with the ambitious goal of attracting $5 billion in annual foreign direct investment (FDI) by 2027. The government’s support extends to investments in broadband infrastructure, as well as the provision of guidance and resources through agencies like NITDA.
Kenya
In 2024, Kenya emerged as the African continent’s leading destination for startup funding, securing $638 million, which represents approximately 29% of the total funding raised across the continent. Notably, a significant portion of this funding was directed towards climate tech ventures, with notable investments in companies like d. light, SunCulture, and BasiGo.
Kenya’s startup ecosystem boasts a diverse range of companies across various sectors. The fintech landscape is particularly vibrant, with players like M-KOPA, Cellulant, Pesapal, Pezesha, Workpay, Kwara, and Lipa Later making their mark. The e-commerce sector features prominent names such as Wasoko and Twiga Foods, while the logistics industry is represented by innovative startups like Zipline and Bolt. Additionally, Kenya’s tech ecosystem is witnessing rapid growth in sectors such as climate tech, healthtech, agritech, and edtech.
The Kenyan government has demonstrated a strong commitment to fostering the country’s tech ecosystem. It has established initiatives like Konza Technopolis and the Digital Kenya 2030 program to support the development of the sector. Furthermore, the Startup Bill offers various incentives and the KeNIA (Kenya National Innovation Agency) supports startups through programs like the R2C Accelerator and the Kenya Innovation Week. The University of Nairobi also plays a pivotal role in promoting AI education, further strengthening the country’s tech capabilities.
While Kenya currently lacks any unicorns, companies like M-Kopa and Wasoko are considered potential candidates to reach the billion-dollar valuation mark soon.
South Africa
In a significant milestone for the South African tech ecosystem, in December 2024, TymeBank achieved unicorn status with a remarkable US$1.5 billion valuation, following a US$250 million capital raise led by Nubank.
South Africa boasts of housing some of the biggest ICT companies on the African continent, with the largest operations including Amazon Web Services, Microsoft South Africa, Naspers/Prosus, Dimension Data, BCX, SAP South Africa, Vodacom, Entelect, Altron, and Digiata.
The country’s startup landscape is equally diverse, with a strong presence in the fintech sector. Notable fintech startups include TymeBank, Jumo, Onafriq, Yoco, Ozow, Peach Payments, and Entersekt. The e-commerce landscape is anchored by prominent platforms like Takealot and Zando, while the logistics sector features innovative startups such as Green Riders. South Africa’s tech ecosystem also encompasses thriving sectors like agritech, healthtech, enterprise software, and mining technology.
The South African government actively supports the growth of the country’s tech industry through initiatives like the Innovation Fund, managed by the Department of Science and Technology and Innovation (DSTI). The government’s Vision 2030 strategy places a strong emphasis on the development of digital technologies. Agencies such as the Small Enterprise Development Agency (SEDA) and the Department of Small Business Development (DSBD) provide valuable support to startups. Additionally, Microsoft has made significant investments in cloud and AI infrastructure within the country, and the government offers various tax incentives to further bolster the tech ecosystem.
Egypt
As the most populous country in North Africa, with a population of 110 million, Egypt has emerged as a dominant force in the region’s technology ecosystem. The country is home to one unicorn, MTN Halan, which achieved this status in 2023. While a shared shuttle services startup previously attained unicorn status in 2021, it has since lost this distinction.
Egypt’s fintech sector is particularly vibrant, with leading players such as MNT-Halan, Fawry, Paymob, and Thndr. The e-commerce landscape features the likes of MaxAB, which recently merged with the Kenyan startup Wasoko. The logistics sector in Egypt is characterized by the presence of innovative startups like mylerz, Flextock, ShipBlu, Fincart, and Bosta. Additionally, the country’s tech ecosystem is witnessing growth in the healthtech and transportation sectors.
The Egyptian government has demonstrated a strong commitment to supporting the country’s startup ecosystem. The government is in the process of finalizing a strategic charter specifically tailored for startups. Furthermore, it has set an ambitious goal of increasing startup investments to $5 billion. The government’s focus areas include the development of digital infrastructure and cybersecurity, and it has established a dedicated unit for entrepreneurship. To incentivize startups, the government has introduced various facilitated procedures and incentives.
Ghana
While Ghana may not be at the forefront of the “Big Four” African tech ecosystems, it is widely considered one of the most developed and robust tech startup hubs on the continent, trailing closely behind the leading markets. Ghana’s consumer market boasts significant spending power, a sophisticated entrepreneurial talent pool, and a strong corporate sector. Between 2023 and 2024, the country raised over $140 million in startup funding.
Ghana’s startup ecosystem is characterized by the emergence of promising ventures, particularly in the fintech sector. Notable fintech startups include Zeepay, Fido, OZÉ, Express Pay, and BezoMoney. The e-commerce landscape features the presence of Jumia, while the logistics sector is represented by startups like Swoove and Kadi. Additionally, Ghana’s tech ecosystem is witnessing growth in sectors such as healthtech, agritech, mobility, and edtech.
Closing notes
TechPR Africa has a deep understanding of the tech industry landscape across these African markets. The company has extensive experience in helping companies in these top African countries announce their presence and scale their operations through strategic brand announcements, media visibility, thought leadership content, and holistic brand communication strategies. Businesses interested in exploring opportunities for expansion into the African tech ecosystem can book a consultation session with TechPR Africa to discuss the customized solutions and support the firm can provide.
Image©:Akos Stiller/Bloomberg
