According to Startuplist Africa, Kenya was the most attractive startup investment destination in Africa in 2020

Startuplist Africa top 5 African ecosystems 2020

Startuplist Africa is a data-driven platform for discovering and gaining insights into the African startup ecosystem. The startup uses global industry standards in their methodology of analysing African startup deals. Their reports provide insights into African startups funding from data obtained from publicly verifiable sources.

According to a snippet from their soon-to-be-released comprehensive report on the African startup ecosystem in 2020, the top 5 investment destinations in Africa in 2020 ranking from 1st to 5th were Kenya, Nigeria, South Africa, Egypt and Ghana.

Top 5 investment destinations in Africa
Top African Countries for VC investments in 2020

Kenya had a quarter of the total funding that went to African startups in 2020. The share of the total funding among the remaining top five countries was: Nigeria (23 per cent), South Africa (19 per cent), Egypt (12 per cent) and Ghana (9 per cent).

What were the top industries?

No particular industry featured as a top industry in all of the top 5 African countries for VC investments in 2020. However, fintech was among the most funded industries in four ecosystems; followed by healthcare in three ecosystems; each of renewable energy, SaaS and logistics were among the industries that received the most investments in two ecosystems; agritech and edtech each were among the most attractive industries in one ecosystem.

Startup investments in the top 5 ecosystems in the past 5 years
Startup investments in the top 5 African startup ecosystems in the past 5 years

The impact of the coronavirus epidemic resulted in overall reduced spending on the continent, with investors backing only startups in essential sectors. However, the exception was Kenya, South Africa and Ghana, which all received increased funding in 2020 YoY.

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About Fortune Chuku 90 Articles
Fortune Chuku is a Researcher and Storyteller. His interests include startups, technology ecosystems and technology adoption in emerging markets.