Africa's Start-Up Funding Landscape: Nigeria Tops with $4.6B in Capital Raised Since 2019
In the bustling landscape of African start-ups, some countries are bucking the trend, recording significant funding despite their relatively smaller economies or populations. Two such nations, Ghana and Senegal, have managed to "punch above their weight" in the start-up world.
Ghana, a country that ranks fifth in start-up funding, has raised an impressive $460 million since 2019. This puts it ahead of many countries with larger populations and nominal GDPs. Senegal, ranking sixth, has raised $148 million in the first half of 2025, a substantial amount for a country not traditionally associated with start-up success.
The reasons behind this unexpected success are multifaceted. One key factor is the focus on targeted ecosystem development and strategic government policies. For instance, Senegal's Plan Sénégal Émergent prioritizes renewable energy, infrastructure, and agricultural transformation, attracting impact investors seeking scalable sustainable projects.
Ghana, too, promotes entrepreneurship through public-private partnerships and funds like the Ghana Investment Fund for Entrepreneurs (GIFE). The country's vibrant start-up ecosystem and deal activity are also worth noting, with multiple deals above $100,000 recorded since 2019.
Another significant factor is the focus on impact and sector-specific investment. Fintech dominates African start-ups financing, with Ghana, Senegal, and other West African countries benefiting from sector-focused VC activity. For example, Senegal raised a large portion of its funding from a major fintech-related debt facility.
The rise of local investors, angel syndicates, diaspora funds, and pension-backed initiatives also plays a crucial role. This increasing investment from within and outside the countries fosters a more resilient and diversified funding base, helping sustain start-ups beyond their immediate local markets.
Lastly, the geographic diversification of African startup investments is a game-changer. While Nigeria, Kenya, South Africa, and Egypt traditionally dominate, investment has been spreading to other markets like Ghana and Senegal, reflecting broader regional growth and new opportunities in West Africa.
In conclusion, Ghana and Senegal's relatively strong startup funding rankings versus population or GDP result from strategic government frameworks, growing startup ecosystems, targeted impact investment, and increasing investor diversification focused on these emerging innovation hubs in West Africa.
Finance plays a significant role in Ghana and Senegal's startup success, as each country has attracted substantial investments in recent years. Ghana has raised $460 million since 2019, placing it fifth in startup funding, while Senegal has secured $148 million in the first half of 2025. This manageable yet prosperous continent is bucking the trend by strategically focusing on impact and sector-specific investments, like fintech, which has attracted substantial venture capital activity.
