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Unlocking Africa's Full Tech Potential beyond "The big four"

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louis Buyisiwe

Feb 11, 2024

Charting New Territories: Africa's Tech Investment Expansion beyond kenya,South Africa,Nigeria and Egypt.


Africa's "big four" - Kenya, Egypt, South Africa, and Nigeria - captured 87% of the continent's startup funding in 2023. There's a push for venture capitalists to look beyond these hubs to the broader African tech ecosystem. Despite a dip in funding in 2023, Africa's tech sector remains resilient, outperforming other emerging markets. The decrease in funding is due to more cautious startup approaches and a significant drop in investor participation, with a 50% decrease from the previous year. Acquisitions are becoming more favored over IPOs due to a global downturn in the latter.


West Africa is leading in venture capital deals, with North and East Africa close behind, reflecting a continent-wide entrepreneurial zeal. Despite foreign investors dominating the African VC scene, the number of investors hit over a thousand for the first time, indicating a shift towards a more inclusive investment landscape.

Outside the "big four," investment is less, highlighting the need for broader investment distribution. Addressing tech talent shortages, particularly in data science and software development, is crucial for growth. Leveraging the African Continental Free Trade Area could make other regions more appealing to investors by easing investment barriers. African governments are encouraged to improve legal and regulatory frameworks to attract more investment and ensure inclusivity across the continent for African Business growth.



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