Nigeria Tops List as 53 African Startups Shut Down Between 2013 and 2024
Africa’s startup ecosystem has seen a remarkable surge in recent years, driven by innovation, the rise of digital technologies, and the growing demand for solutions tailored to the continent’s unique challenges. Countries like Nigeria, Kenya, South Africa, and Egypt have emerged as key hubs for entrepreneurial activity, attracting considerable attention from investors and stakeholders worldwide.
However, the environment remains harsh and unpredictable for many startups, leading to a high mortality rate among young businesses. Accroding to recent report, between 2013 and 2024, Africa witnessed the closure of 53 startups across seven countries, with Nigeria leading the pack in these unfortunate business outcomes. Of the total number, 25 startups that once showed promise in Nigeria have shut their doors, highlighting the significant challenges entrepreneurs face in the region.
The startups affected were involved in sectors like fintech, health, e-commerce, logistics, agriculture, transportation, and media among others. Experts have argued that underfunding may not really be the main reason for the closure of the startups as most of them were heavily funded in the past years. Nigeria is followed by Kenyan and South Africa, which saw a total of 12 and 7 startups shutdown respectively.
Checkout the list of African Startups that shutdown between 2013-2024
| Rank | Country | Closed Startups |
|---|---|---|
| 1 | Nigeria | 25 |
| 2 | Kenya | 12 |
| 3 | South Africa | 7 |
| 4 | Egypt | 4 |
| 5 | Ghana | 4 |
| 6 | Uganda | 2 |
| 7 | Tanzania | 1 |
The closure of these 53 startups across Africa underscores the broader challenges faced by entrepreneurs on the continent. While there is no shortage of innovative ideas and ambitious founders, the harsh realities of the business environment in many African countries make it difficult for startups to survive, let alone thrive. While the closure of these 53 startups is a sobering reminder of the difficulties faced by African entrepreneurs, it also presents an opportunity for stakeholders to address the systemic issues that contribute to high failure rates.
