This is your first step in understanding the vibrant world of startups and entrepreneurship in Africa. Remember, Africa is not a single country, but a diverse continent of 54 unique nations, each with its own entrepreneurial ecosystem. Our aim is to give you an initial insight into the key hubs where innovation is thriving.
Let's dive in!
Africa's Big 4 for Startups
When we talk about the "Big 4" in Africa, we are referring to Nigeria, Egypt, Kenya and South Africa. These four countries are at the forefront of the continent's startup scene for a simple reason: they receive 92% of Africa's investment, particularly in technology.
The trend is promising. Last year, Nigeria led with the highest number of startups. However, in 2023, Kenya surpassed Nigeria, becoming another top spot for entrepreneurship. Nairobi, Kenya's dynamic capital, secured 91% of East Africa's funding in 2023, up from 86% in 2022. South Africa, often considered an ecosystem in its own right, has also shown significant growth. Over the past few years, it has developed a strong startup community and scene. South Africa saw an 8% year-on-year increase in total funding, reinforcing its position among Africa's Big 4.
These countries are pivotal in driving Africa's startup and entrepreneurial growth, each with unique contributions and thriving ecosystems.
Africa's Unicorns and Entrepreneurial Spirit
We usually like to look at the number of unicorns to get a first sense of how strong and successful an entrepreneurial ecosystem is. In our case, we do that. But it does not give the full picture. Here is why! If we just look at the sheer numbers of unicorns, we can see that in 2023:
At first glance, these numbers may seem small compared to the 700+ startups based in the US. But that's not all, there are about 8,000 startups in Africa in total, and Nigeria, with its capital Lagos, is the main hub with more than 3,360 startups! And the numbers are growing!
But more importantly, we cannot stop here. Because not every new business falls under the category of a startup. If we take a closer look at the general entrepreneurial spirit, about 22% of the working population in Africa is engaged in entrepreneurial activity.
This makes it the most entrepreneurial region in the world!
And if you know Africa a little better, you know what we are talking about: street vendors, side hustlers, creatives.
Cities like Nairobi, Lagos and Johannesburg are full of them. And you can feel that entrepreneurial spirit!
As vibrant and diverse as Africa is as a continent, so is its entrepreneurial ecosystem!
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