West Africa’s Start-Up Funding Surge Since 2019: Nigeria’s Lead and the Region’s Evolving Dynamics

Since 2019, West Africa has secured $5.8 billion in start-up funding, representing 36% of the continent’s total and making it the region with the highest funding (excluding exits). Nigeria dominates this narrative, claiming $4.6 billion—or 80% of West Africa’s total and 29% of Africa’s overall start-up funding.

The country’s influence, alongside the broader region’s, underscores its pivotal role in Africa’s entrepreneurial ecosystem. However, dynamics have shifted since the funding surge peaked in mid-2022, as noted in our 2024 round-up. During the 2020 to mid-2022 “heatwave,” West Africa captured 41% of Africa’s start-up capital, nearly double East Africa’s 22%. Post-mid-2022, its share fell to 25%, with East Africa overtaking it at 30%.

Alongside this shift, West Africa has seen a rebalancing of investment distribution. The pre- and mid-heatwave dominance of a regional “Big Four” has softened, unlike in other parts of Africa where such concentration persists. In 2023 and 2024, Nigeria accounted for roughly 70% of West Africa’s funding, a drop from its peak dominance, compared to 84% in Egypt, 88% in Kenya, and 99% in South Africa within their respective regions.

Meanwhile, other West African markets are gaining ground. The region boasts four countries with $100 million or more in funding since 2019, more than any other African region. Ghana ($460 million, #5 continent-wide) and Senegal ($410 million, #6) are nearing the half-billion mark, followed by Benin ($133 million) and Côte d’Ivoire ($107 million). The rest of the region, however, accounts for just 1% of the total.

Where Did the Funding Go?

Across West Africa, over 700 start-ups have raised at least $100,000 since 2019. Yet, 55% of the region’s funding has flowed to just 15 companies, 13 of which are Nigerian. Fintechs lead the pack, with eight of the top 15 being in this sector, including seven Nigerian fintechs: Opay, Flutterwave, Interswitch, PalmPay, Moniepoint, Kuda, and Yellow Card. Nigeria also hosts the continent’s highest number of unicorns—start-ups valued at $1 billion or more—such as Interswitch, Flutterwave, Opay, Moniepoint, and tech talent platform Andela, based on their latest funding rounds.

Two non-Nigerian standouts in the top 15 are Senegal’s Wave Mobile Money, which raised nearly $300 million and accounts for 71% of Senegal’s total, and Benin’s Spiro, with over $100 million, driving 85% of its country’s funding. These outliers highlight the growing diversity within West Africa’s start-up scene, even as Nigeria’s heavyweights continue to shape the region’s trajectory.