Nigeria Attracted The Largest Tech Startup Investments in Africa in 2022

Recent reports reveal that Nigeria attracted the largest tech startup investments in Africa in 2022.

In 2022, tech startup companies raised more money than ever, which saw them surpass $3 billion for the first time, with a total of $3.3 billion invested.

Nigeria’s Fintech sector raised a total of $967.146 million in startups within a year, accounting for 29.3 percent of Africa’s total investment in the ecosystem.

About 180 startups in the country raised a combined $976,146,000 (29.3% of the continent’s total), placing it far ahead of all other nations in both categories, also emerging as the best-funded nation in Africa for the second year in a row, outpacing all other nations.

Despite the global downturn in investment activity, these startups raised more than ever. Disrupt Africa co-founded Gabriella Mulligan said, “In spite of global pressures, 2022 was another outstanding year for the African tech space. Who knows what the future holds, and whether the sector will now enter a more fallow period, but for now the space can reflect on a very good 12 months’ work”.

With about $1.5 billion in the capital received in 2022 from all startup investments made across the African continent, the Fintech industry was once again the most alluring to investors. A total of 205 Fintech startups raise money, with Nigerian firms accounting for over 40% of startups and 46% of Fintech funding.

The record for the largest round ever raised by an African tech startup was again in 2022, with Nigerian Fintech giant and African unicorn Flutterwave surpassing its own 2021 record with a $250 million raised in February.

As regards funding, Nigeria, Kenya, Egypt, and South Africa continue to be the “big four” African nations with high investments, though they collectively received less money in 2022 compared to the year 2021.

Investors King understands that Nigeria is the most popular investment destination on the continent. Between January 2015 and August 2022, 383 tech startups raised a combined US $2,068,709,445, a higher total than any other African country.

The country has long been a pioneering startup ecosystem on the African continent, leading the way in various sectors and increasingly becoming a focus for investment.