Nigeria, long considered Africa’s startup funding powerhouse, is seeing its dominance wane as East Africa emerges as the continent’s most attractive region for investors, according to latest data from Africa: The Big Deal.
Between 2019 and mid-2022, West Africa—driven largely by Nigeria—secured 41 per cent of Africa’s total startup funding, nearly double the share of East Africa (22 per cent) during that period.
Nigeria alone attracted $4.6 billion, accounting for 29 per cent of the continent’s total. However, since mid-2022, West Africa’s share has dropped to 25 per cent, while East Africa has risen to claim 30 per cent of all startup investments.
The shift comes amid a broader cooling in venture capital activity, following a funding surge that peaked in 2021 and early 2022. Global economic uncertainties, tighter financial conditions, and investor caution have reshaped the African startup landscape, with capital now flowing more favorably toward East Africa’s markets.
Despite the decline, Nigeria remains a critical hub for innovation on the continent. The country’s fintech, e-commerce, and logistics sectors continue to attract interest, though startups now face a more competitive fundraising environment.
Analysts say the coming months will be key in determining whether Nigeria can reclaim its top position or if East Africa’s rise signals a long-term shift in Africa’s startup funding dynamics.
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